06.02.2013

To our stakeholders:

I am pleased to confirm that Fabasoft 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 to share this information with our stakeholders using our primary channels of communication.
With regard to our stakeholders we are committed to long-term and sustainable economic responsibility. We underscore this approach by taking part in the United Nations Global Compact (UNGC), the world’s largest initiative for businesses that are committed to social awareness. We are bound by this participation to align our operations and strategies to ten universally accepted principles in the areas of human rights, labour, environment and anticorruption.
Sincerely yours,

Dipl.-Ing. Helmut Fallmann and Leopold Bauernfeind
Managing Board Fabasoft AG

Commitment to the ten principles of responsible practices
The Managing Board of Fabasoft committed itself to observing the ten core principles of responsible business practices in a letter to the UN General Secretary. These core principles are laid down in the UN Global Compact and cover basic principles of human rights, labour, the environment and anti-corruption. Companies which join this project are voluntarily obliged to observe these principles. These principles have always been an integral part of Fabasoft’s value system and feature in the Code of Conduct.

In the Fabasoft Academy all new employees learn about products, the company, the values, guidelines, processes and structures in a two-day training course in which they are also given information on anti-corruption policy and the Code of Conduct.

As part of a general obligation to provide warning and information, all identifiable irregularities, non-compliance with prevailing guidelines and processes, but also all risks to Fabasoft and Fabasoft projects, are to be reported to the respective management staff. In the case of a violation, Fabasoft reserves the right to take steps to initiate an investigation and clarify the situation. Disciplinary measures may also affect those who have instructed the carrying out of an infraction or sanctioned such an infraction, or who had knowledge of an infraction and did nothing to prevent it.

All employees at Fabasoft have regular employment contracts for office workers but various part-time models are also available to balance family, studies and work more effectively. These opportunities of flexible working time models call for trust and responsibility on the part of both the member of staff and Fabasoft.
In the period under review 12 % of all employees were employed on a part-time basis.

The internationality and variety of languages at Fabasoft is also reflected in the employee structure. Eighteen different nationalities work at the company. Fabasoft is committed to equal opportunities in its labour policy, regardless of sex, age, religion or personal circumstances.

For Fabasoft it is understood that all employees adhere to both the respective national and international legal stipulations and obligations unconditionally and without reservation, as well as conduct themselves according to the Code of Conduct and all Fabasoft guidelines and regulations. Of particular importance are the agreement according to Art. 15 of the Federal Act Concerning the Protection of Personal Data (DSG), the manual on quality and safety, and the internal control system.

In the Fabasoft Academy all new employees learn about products, the company, the values, guidelines, processes and structures in a two-day training course in which they are also given information on anti-corruption policy and the Code of Conduct.

Employees can perform to the best of their abilities and beyond only if they work in a good and healthy environment.
Besides the latest technologies Fabasoft provides employees with ergonomic workplaces, low-reflection monitors and optimum lighting for their daily work.
Furthermore, Fabasoft provides various incentives in rest areas to promote creativity, concentration, motivation and communication.

Fabasoft provides breakfast in all its locations where the Fabasoft team has the opportunity to exchange experiences and briefly discuss cross-team topics. Employees also meet at the various coffee corners or kitchenettes throughout the day.

The employee survey gives feedback on how satisfied people are at the company and is an opportunity to find potential improvements. All employees have the opportunity to express their opinions and make suggestions.
More than 80 % of the participants in survey on the fiscal year 2011/2012 was very satisfied or satisfied with their work at Fabasoft. This result was reached once again.

As part of a general obligation to provide warning and information, all identifiable irregularities, non-compliance with prevailing guidelines and processes, but also all risks to Fabasoft and Fabasoft projects, are to be reported to the respective management staff. In the case of a violation, Fabasoft reserves the right to take steps to initiate an investigation and clarify the situation. Disciplinary measures may also affect those who have instructed the carrying out of an infraction or sanctioned such an infraction, or who had knowledge of an infraction and did nothing to prevent it.

Both economic and ecological potential savings can be realised by using Fabasoft software products. Fabasoft tries to improve its own ecological balance sheet continuously through appropriate measures in the fields of green IT, ecological product benefits and mobility measures that are kind to the environment and resources.

New ways of protecting resources with Fabasoft products:
With its decision to offer its own software products such as Fabasoft Folio Cloud, Fabasoft takes a forward-thinking approach to the concept of sustainable software services. Fabasoft thus brings the idea of sustainability directly to the customer – especially in the sense of the careful treatment of resources. Cloud concepts give you flexibility, increase accessibility for the client and protect both internal and external resources at the same time. This is why Fabasoft has set itself the goal of maximising the number of cloud computing users to enable - besides the economic benefits – customers to be efficient and strengthen environmental awareness and customer orientation.

Green IT and server virtualisation:
As a company for software products Fabasoft attaches prime importance to the consumption of electricity from
an ecological point of view. The major part of the energy costs here is accounted for by the operation of business
computers, the data centres and air conditioning systems. To minimise electricity consumption at the workplaces
and at the data centres a project was launched and successfully completed to optimise energy efficiency and cooling requirements of the data centres (see Annual Report 2010/2011, page 47). Thanks to the successive virtualisation of the infrastructure at the Fabasoft data centres it has been possible to make more efficient use of system resources, thus also paving the way for savings in energy consumption. New investments take the basic principles of energy efficiency into consideration in every case. Warm and cold corridors created in the data centres enable the regulation of warm and cold air. This means that the servers can be cooled specifically, which also reduces cooling requirements.
Measuring devices have been fitted to the racks to be able to determine changes in electricity consumption and
pinpoint individual measures. Fabasoft app.telemetry is used to electricity monitor electricity at all times. In the fiscal year under review and despite the expansion of office space in Linz there was only a minor increase in electricity consumption thanks to the observance of green IT measures.

Reducing energy consumption through desktop virtualisation:
Fabasoft strictly observes the concept of desktop visualisation for engineering workplaces to save energy. Seven team members work in a Fabasoft developer’s office with up to 14 energy-efficient monitors and 7 desktop PCs at their disposal. The engineers work via so-called Virtual machines (VMs) and obtain the necessary processing performance from the data centre. It has been possible to reduce energy consumption through desktop virtualisation by over 60 %.
In addition to this, quieter equipment and reduced use of air conditioning due to less heat emitted at the local workplaces create optimum conditions inside the office.

Environment-friendly location policy:
The internationally active Fabasoft Group is represented by subsidiaries in Germany, Austria, Switzerland, Great Britain, Italy and the USA.
With this approach to location policy Fabasoft tries to be as close as possible not only to customers but also to employees. Thanks to this strategy customers can be served with high efficiency in terms of time, cost and resources. Fabasoft makes every effort to achieve a high proportion of local personnel in the respective countries.
This also applies to managerial positions. The offices at the various locations are central with good access to main transport connections. The office in Vienna, located directly next to the new main train station which is being built, and the Frankfurt office directly above the ICE train station at Frankfurt Airport are good examples of this.
Setting up the decentralised development office in Perg (Upper Austria) also adds to the attraction of Fabasoft as a regional employer and contributes to reducing CO2 emissions. The journey to work is under 50 km for 85 %

A specifit progress is the further reduction of the energy consumption at data centre and the creation.

Fabasoft has decided to compile the yearly section on sustainability of the annual report in future in accordance with the requirements of the guidelines of the Global Reporting Initiative (GRI G3). With regard to this report Fabasoft is aiming to reach Application Level C for the first time. It was confirmed by the GRI Application Level Check.

Create emissions balance sheet taking into account all sources of greenhouse gas emissions and potential emissions saved based on GHG Report (focus on business trips and energy consumption at data centres)

We advocate the support of charitable and collaborative services and activities, and support international and local courses of action against corruption and fraud. In our personnel guideline we point out how our employees have to deal with invitations and gift offers and the legal consequences.

In the Fabasoft Academy all new employees learn about products, the company, the values, guidelines, processes and structures in a two-day training course in which they are also given information on anti-corruption policy and the Code of Conduct. All employees are informed about our sustainability report, which is published within the Annual Report.

We plan to hold a special anti-corruption training for our employees.

As part of a general obligation to provide warning and information, all identifiable irregularities, non-compliance with prevailing guidelines and processes, but also all risks to Fabasoft and Fabasoft projects, are to be reported to the respective management staff. In the case of a violation, Fabasoft reserves the right to take steps to initiate an investigation and clarify the situation. Disciplinary measures may also affect those who have instructed the carrying out of an infraction or sanctioned such an infraction, or who had knowledge of an infraction and did nothing to prevent it.