Solar takes its responsibility for people and the environment seriously. We have joined the UN’s Global Compact programme and wish to send a clear signal that we support the programme. We consider our involvement in the programme an asset in relation to our customers and suppliers, and a definite advantage in relation to attracting and retaining employees. In addition to this, we have a need and a wish to constantly be a company in which Danish and foreign investors can safely invest – also seen from an ethical perspective.

I am pleased to confirm that Solar A/S reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit ourselves to sharing this information with our stakeholders using our primary channels of communication.

Flemming H. Tomdrup,
CEO

Respecting the human rights principles is naturally incorporated into everything we do in Solar, where we have a long-standing tradition of treating each other with respect and in observance of the internal human rights. We use the framework of the UN Global Compact as a road map in our daily decision making, and we always strive to support and encourage the commitment to the international human rights in both our close and remote spheres of influence.

We strongly believe that by creating a safe, respectful and trusting work environment, our employees are enabled to take responsibility for and contribute to our work with sustainability and with the UN Global Compact principles, and hereby secure the future success of our company. This way we aim to be the best workplace in our industry.

- we have developed and implemented a Code of Conduct for the entire Solar Group which addresses the different aspects of ethical and responsible business, and what is expected from our employees.
- we set clear requirements to our suppliers and expect that their businesses do not violate the 10 principles of the Global Compact.
- we work to promote diversity in our teams and we enforce zero tolerance towards discriminatory behaviour towards for example sex, sexual preferences, age, ethnicity or religious standpoints. We show all employees respect and make an active effort to ensure a good working environment characterised by equality and diversity.

In the year to come we will:
- implement a whistle blower setup within the whole group
- make sure the Code of conduct is communicated to all new employees
- engage in a mentor programme set up by the UN Global Compact Nordic Office to learn from more experienced companies
- continue developing our leaders through Solar's Business Academy's group leadership programme with primary focus on Solar's 5 primary leadership competences: driver, involver, communicator, developer and partner.

In 2010, Solar once again carried out the employee survey Solar Navigator, which measures the ability of the employees and the organisation to create value for the customers. Thus, in connection with the strategy ”#1 in Technical Wholesale”, Solar has set up a number of strategic goals to be reached. The so-called ”value creation index”, which shows the ability to create value for the customers, must be above 680 in the period 2010-2012 and in the autumn it was measured at 707. At the same time, the ”leadership index”, which shows the ability to lead, must be above 67 in the period mentioned and in the autumn it was measured at 70.

During 2010, 252 leaders have enrolled in the group leadership programme.

Solar is committed to respecting the freedom of association and follow local laws on labour rights. We have a long-standing good relationship with all unions. All employees are free to join trade unions of their own choice, and we respect the right to collective bargaining.

We take responsibility for our employees in creating a healthy working environment both physically, psychologically and ethically.

- our employees are covered by health insurance and extensive pension schemes.
- we measure work related injuries, sickness absence and geographical distribution among our employees.
- we work actively to prevent accidents at work, stress, sickness and bullying among colleagues. We offer flexible working hours in respect of work/life balance and encourage people to mobility.
- on a regular basis, we conduct an employee survey, Solar Navigator, where we measure e.g. work environment, job satisfaction, motivation and stress among our employees. The employees are also given the opportunity to rate their manager's leadership abilities.

In the year to come we will:
- implement a whistle blower set up within the whole group
- make sure the Code of conduct is communicated to all new employees
- engage in a mentor programme set up by the UN Global Compact Nordic Office to learn from more experienced companies.
- continue developing our leaders through Solar's Business Academy's group leadership programme with primary focus on Solar's 5 primary leadership competences: driver, involver, communicator, developer and partner.

During 2010, 12 different nationalities were represented in our staff at the corporate headquarters in Kolding, Denmark.
In 2010, Solar once again carried out the employee survey Solar Navigator, which measures the ability of the employees and the organisation to create value for the customers. Thus, in connection with the strategy ”#1 in Technical Wholesale”, Solar has set up a number of strategic goals to be reached. The so-called ”value creation index”, which shows the ability to create value for the customers, must be above 680 in the period 2010-2012 and in the autumn it was measured at 707. At the same time, the ”leadership index”, which shows the ability to lead, must be above 67 in the period mentioned and in the autumn it was measured at 70.

During 2010, 252 leaders have enrolled in the group leadership programme.

The wholesale industry has a big effect on the environment. This is highly reflected in our responsibility towards the environment, and thus naturally in our activities. Being placed in the Western and Northern part of Europe, we are committed to follow the legal obligations of the countries in which we operate. In addition, we use the framework of Global Compact as a road map in our daily decision making.

- we invest in solutions and technology that will be cost-effective in short and long term.
- we have high focus on the environment and have e.g. built a so-called green data centre in Vejen, Denmark. Furthermore, we have installed a TelePresence system throughout the company which provides the opportunity for our employees to meet via video conferences instead of physical meetings. This will reduce both travel costs and CO2 emissions at the same time.
- Solar has built a new reporting system relating to CO2 consumption. The system has been rolled out in all the group’s subsidiaries, and the first measurements related to CO2 emissions have been made. One of the first areas to be measured is the general CO2 emission from direct burning of fossil fuels, i.e. fuel consumption related to e.g. company cars and lorries.

Another area which is measured is CO2 emission from purchased electricity.

In the year to come we will:

- further develop the measuring of CO2 emission in connection with business travels and distribution of goods
- engage in a mentor programme set up by the UN Global Compact Nordic Office to learn from more experienced companies.

We are not yet able to present specific results of these measurements.

Solar is a strong advocate of the anti-corruption principles and has zero tolerance on bribery. We do not accept that our employees offer, demand or receive money, presents or other services in order to achieve personal or commercial preferential treatment. Employees are only allowed to accept invitations, travels or participate in supplier or business partner events if there is a clear business reason.

We always operate within the 10 principles of the Global Compact and expect our business partners to do the same.

- we have developed and implemented a Code of Conduct which addresses the different aspects of ethical and responsible business, and what is expected from our employees.
- we set clear demands to our suppliers and expect that their businesses do not violate the 10 principles of the Global Compact.

In the year to come we will:
- an external whistleblower setup will be established in 2011. It will be an information system providing employees, board members and others with the opportunity to report illegalities or suspicion of illegalities confidentially.

We are not yet able to measure the results of our efforts.