WE MEAN IT RESPONSIBLE BUILDING AND DESIGN - Hornbach Holding AG
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H O R N B A C H
S U S T A I N A B I L I T Y M A G A Z I N E
2 0 1 9
WE
MEAN IT
R E S P O N S I B L E B U I L D I N G
A N D D E S I G N
HORNBACH Sustainability Magazine 2019
EDITORIAL 3
DEAR
READERS,
D
o they mean it? Sustainability, CSR – whatever In recent years, we have seen ourselves that our cus-
they call it – isn’t that just another gimmicky eco- tomers are ever more interested in obtaining informa-
trend? Let’s be honest. Aren’t companies into tion about where the articles are from, how they were
greenwashing so they can feel good about making produced, what they contain, and how they can be
loads of money from customers? Production conditions, disposed of.
contents, disposal – so that’s what they care about? Give
me a break!”. That’s what the critics say. Retailers have to offer credible answers to consumers,
whether in the information they publish on the internet or
Yes, we have heard all that before. And the criticism with the competent specialist advice they provide at their
leveled against hard-nosed business interests is hardly a stores. More than anything, retailers have to keep enhanc-
product of consumers’ imaginations. But a company whose ing their business operations, and especially their pro-
sustainability commitments are revealed to be nothing duct ranges – not least to make them more sustainable.
but hot air can hardly reach low enough to find its repu-
tation. Consumers feel betrayed and the company loses Convincing people takes an effort, at least at the begin-
all credibility. ning. In the longer term – and we are in no doubt about
this – it all pays off. And that is what motivates us to
We take a stand here, and that is because we take our keep at it, whatever the skeptics might say. We mean it!
customers seriously. And because we really mean it with
our commitment to society and the environment. In this spirit, have an enjoyable read!
Anna Krall Axel Müller
Editor in Chief Head of Group Communications
& CSR Spokeswoman & Investor Relations
4 HORNBACH Sustainability Magazine 2019
CONTENTS 5
CONTENTS
EM P L OY E E M OBI L I T Y S P E C I A L P R O D U C T S VISIT TO A BUILDING SITE FU TU R E OF DI Y STORES
“I CAN REALLY A TYPICAL NO HALF A SECTOR IN
UNWIND ON MY BIKE” GERMAN SME! MEASURES TRANSFORMATION
The “Jobrad” program at HORNBACH: A visit to Südpfalzwerkstatt gGmbH in Offenbach Or: What does energy efficiency actually mean Finding the right concept for the
an interview with a cycling fan. and Lebenshilfe Bruchsal-Bretten. for a building refurbishment? next generation of customers.
06 22 40 52
I NNOVAT I ONS HERE’S TO PARTNERSHIP IN FO -CH ART O U T IN THE GREEN
IDEAS NOT ERRATIC, THE HORNBACH A PASSION
POWERHOUSE BUT PRETTY DEMANDING MAP FOR GARDENING
Three HORNBACH innovations that make life What construction materials manufacturer Baumit Facts and figures about Green and blooming:
easier for customers and colleagues. appreciates about its longstanding cooperation the HORNBACH Group. The urban gardening trend.
with HORNBACH.
12 28 46 56
FAMILY COMPA NY A S H O RT S T O RY WO MEN AT WO R K T H E L AT E S T F R O M H O R N B A C H
DUTY FIRST THE CUSTOMER PROSECCO SAWING GOOD NEWS
JOURNEY E-fuel stations, Christmas trees,
and a new logo for old appliance returns.
Clever tools and well-trained staff support
customers in every stage of their project.
32 64
I N V E S T I N G S U S TA IN A BLY
BEYOND
THE FIGURES
Company founder Otmar Hornbach always took a forward-looking, Sustainability is ever more relevant The chips start to fly at the “Women at Work”
principled, and humane approach. In a word: sustainable. for institutional investors as well project evening in Oberhausen.
18 36 48
HORNBACH Sustainability Magazine 2019
EMPLOYEE MOBILITY | Jobrad 7
E M P L O Y E E M O B I L I T Y
“I CAN REALLY UNWIND
ON MY BIKE”
Dirk Becker is head of the garden center department at HORNBACH’s store
in Datteln in North Rhine-Westphalia. He is one of more than 530 HORNBACH
employees who have drawn on the “Jobrad” program and cycle to work.
We talk to the cycling enthusiast. Tilman Sanner
D I R K , W H A T M A D E Y O U C H O O S E “J O B R A D ” ? HOW LONG IS YOUR JOURNEY TO WORK??
I do not have a driver’s license so I do all my private I spent ten years cycling around ten kilometers to
errands as well by bike. I thought that a good e-bike work and back every day. Since moving house recently,
would be a sensible addition to my normal bike. it is now only around two kilometers.
And the “Jobrad” program made that affordable.
DO YOU RIDE YOUR BIK E ALL YE AR ROUND,
A N D W H A T M O T I VA T E S Y O U T O C Y C L E ? WHATE VER THE WE ATHER?
I can really unwind, also from work. Not only that, Yes, in almost all kinds of weather. Wind and rain
you see far more of your surroundings than in the car. are no problem, but black ice is too risky for me.
Given all the roadworks, it is sometimes even faster
than driving. And I never have any problem finding a D I D Y O U E V E R H AV E A N Y P R O B L E M S ?
parking space. My front wheel broke once, but a friend soon drove
by to pick me up. I always have an emergency kit
D O Y O U A L S O H AV E S P O R T I N G A M B I T I O N S ? with me to deal with more minor problems.
I certainly do. When the season starts at the end of
March, I cycle around 30 kilometers a day in my free A N D W H A T D O Y O U R C O L L E A G U E S S AY A B O U T
time. At the weekend, I often ride 80 kilometers up- YOUR ENTHUSIASM FOR CYCLING?
wards. My vacations often involve traveling by rail They sometimes think I am nuts. But I did once invite
and bike. My longest trip so far was to the Baltic Sea. them all to come on a cycling trip. There were eleven
That was around 475 kilometers and took four days. of us and we managed around 40 kilometers.
8 HORNBACH Sustainability Magazine 2019
EMPLOYEE MOBILITY | Jobrad 9
“Jobrad” in action: Dirk Finding a parking space
Becker uses his e-bike to is no problem for Dirk.
come to work every day. He makes the two-kilo-
He is one of more than meter journey to work on
650 employees already two wheels in almost all
benefiting from the “Job- weathers – even when it
rad” program. is not such a sunny day
as for our photoshoot.
10 HORNBACH Sustainability Magazine 2019
EMPLOYEE MOBILITY | Jobrad 11
JOBRAD FACT BOX
A town bike for relaxed cycling trips, a mountain bike for trips salaries. When the lease contract expires, employees can buy
across rough terrain, or an e-bike so that uphill cycling is also the bikes or return them. “The leased bikes are worth around
fun: Whatever kind they prefer, all HORNBACH Baumarkt AG € 2,500 on average, but some would cost as much as € 7,000 if
employees have been able to lease a bicycle of their choice via bought new”, reports Holger Gebhardt. As head of compensation
the company since early 2017. Here is how it works: Choose a and retention instruments at HORNBACH, Holger played a key
bike at your favorite bike shop, submit an application to HORN- role in launching the “Jobrad” program. He also organizes the
BACH, and then get pedaling. Only children’s bikes, pedelecs, in-house mountain biking group, which has become very pop-
and mopeds are excluded from the campaign. The lease cont- ular since the program began. As of February 28, 2019 the pro-
ract is between HORNBACH and the employee, so the employee’s gram has already been used 658 times at HORNBACH. Holger
share of lease costs is deducted from their gross monthly is in no doubt: “Jobrad is an absolute success.”
HORNBACH Sustainability Magazine 2019
INNOVATIONS | Ideas Powerhouse 13
No 1
THE CUSTOMER’S CUT
Two employees at HORNBACH’s DIY store with a garden center in Leipzig
had a bright idea to speed up timber residue pricing and make it
more customer-friendly and transparent. But the real star of the story
is a simple wooden panel. Stefan Wolf
E
ven a wooden panel can be a great source of inno- “We brainstormed ways to calculate the surface more
vation – it all depends what you do with it. And in effectively, tried out various options, and wrote them off”,
this case the right idea came to Pierre Auf der Masch recalls Pierre Auf der Masch. “And then we had our Eureka
and Enrico Springer. The two employees in the timber moment.” They designed a multicolor wooden panel, 1x2
department at HORNBACH’s project DIY store in Leipzig meters, with measurement markings on the edges. The
were asked to think about how to price cutting residues, trick is that each color stands for a different price group.
i.e. what could HORNBACH do to sell timber residues Holding a piece of timber up to the panel shows you im-
remaining after cutting rather than just disposing of them? mediately how much it costs. All that remains to be done
This is more or less what happened previously: A customer is to stick on a suitable label with the EAN Code. After
would come to the store and have a wooden work surface that, the timber can be scanned directly at the checkout.
cut to her desired dimensions. If the remaining timber
was to be sold, it had to be measured and the surface The pilot project at trial stores went through the roof.
calculated, a process which was complicated and time- The simple but effective new method saves around two
consuming. The customer then went to the checkout, thirds of processing time in the cutting department and
where the price of the timber still had to be worked out. more than half the checkout time. It was soon clear that
Alternatively, the timber residue was sent directly to the the wooden panel was destined for group-wide rollout.
recycling waste box. “Throwing away sawn-off boards, For this, numerous employees from across many stores,
edges, and strips was really painful. That was not a good departments, and countries worked hand in hand. Today,
solution – either for us or for our customers”, explains all HORNBACH stores have the pricing panel for timber
Enrico Springer. His colleague Pierre Auf der Masch adds: residues.
I N N O VAT I O N S “The timber is perfectly good for use, but we didn’t know
how to calculate the price quickly and transparently for The success of their idea took Enrico Springer and
our customers.” Pierre Auf der Masch by surprise. “All we did was make
a slight improvement, so it is fantastic to see how this
Simplifying timber residue pricing had long been a topic is appreciated.”
IDEAS POWERHOUSE at HORNBACH. Employees at the Ansfelden store in
Austria already had an initial idea to help calculate the
dimensions of timber residues. For this, they stuck mea-
suring tapes to the wall and the floor. This way, they could
How to cut waiting times at the checkout, make it easier to manage speed up the process of finding out how high and wide
smart products, and calculate prices for timber residues faster? the sawn-off timber was. But the price still had to be
For all these topics, company employees have devised innovative solutions calculated and the timber residue still had to be labeled
to make life easier for customers and colleagues alike. at the checkout. For a single piece of timber, that does
Stefan Wolf, Anne Spies und Florian Preuß not take too long. For a whole consignment of boards, how-
Two great guys, one innovative idea: Enrico Springer
ever, it is a bothersome and time-consuming task. That is and Pierre Auf der Masch from the HORNBACH store in
where the staff in Leipzig came in. Leipzig. Behind them is the multicolor pricing panel.
14 HORNBACH Sustainability Magazine 2019
INNOVATIONS | Ideas Powerhouse 15
No 2
SMART PROBLEM SOLVING
HORNBACH is the first DIY store in Germany to develop its own smart home
platform enabling home and garden devices to be intelligently networked
and controlled via a central app. Anne Spies
L
amps, CCTV, heating, lawnmowers – ever more devices In an in-house pilot scheme conducted for trial purposes,
in consumers’ homes and gardens are linked up to more than 100 HORNBACH employees transformed their
the internet. Manufacturers promise ever greater con- homes into smart homes. This way, they contributed great-
venience, security and energy efficiency. According to a ly to further developing the system and getting it ready for
survey conducted by Bitkom, in 2018 one in four people market. By April 2018, everything was in place: “SMART
in Germany already had a smart home device. DIY stores HOME by hornbach” was sold for the first time via the
are also stocking ever greater numbers of smart products. German online store. Soon afterwards, the system began
There is now even an app for cordless screwdrivers. to be rolled out to HORNBACH’s stores. It is now also
available in Austria and Sweden, and further regions are
The problem here is that most manufacturers offer stand- set to follow. “One crucial aspect involved training our
alone solutions that only cover their own brands. That sales colleagues, who had to become smart home experts
means that anyone wishing to automate their entire home practically overnight”, recalls Schönmehl. “It is not much
can easily find themselves having to juggle a dozen or more good if we have a fantastic solution on the shelves, but
apps. “It just wasn’t an option for us to list the various nobody can explain what the benefits are. Offering high-
individual solutions and let customers sort out the com- quality advice on site is what sets us apart from other smart
patibility problem themselves”, explains Sven Schönmehl, home providers.” A challenging task for store employees
purchasing specialist for the Smart Home department. – after all, ongoing improvements to SMART HOME by
“Our customers should have the possibility of managing hornbach mean that new developments, such as new pro-
all the solutions relevant to their needs via a central app.” ducts, functions, or features, are added nearly every day.
To tackle this problem, HORNBACH decided to develop The Smart Home team receives a regular flow of valuable
its own platform, one that gradually integrates all relevant feedback from users via the stores, the online shop, and
devices in consumers’ homes and gardens regardless of the customer service center. Wireless standards no longer
the individual manufacturer. “Our aim was to provide a needed since the most recent update, for example, can be
system that was as easy as possible to get started with and deactivated and individual settings implemented for spe-
intuitive to use. By incorporating the latest future-proof cific scenarios using “expert rules” – these amendments
technologies, we also wanted to ensure that the investment both resulted from customer suggestions.
made by our customers would pay off in the long term”,
adds Christian Rapp, project manager in the Technology HORNBACH receives plenty inquiries from manufacturers
department. One key requirement was that the platform interested in being integrated into the platform. “The trick
should offer effective protection against data theft, hacker is selecting the product that offers the greatest added
attacks, and manipulation. This has now been confirmed value for our customers”, explains Schönmehl. “And addi-
by the German Association of Electrical Technology, Elec- tional features such as security-related services may also
Christian Rapp and Sven Schönmehl tronics and Information Technology (VDE), which has have a role to play in future.”
are the bright minds behind SMART HOME by hornbach. granted information security certification for the platform.
16 HORNBACH Sustainability Magazine 2019
INNOVATIONS | Ideas Powerhouse 17
No 3
AND SUDDENLY IT ALL WENT REALLY FAST…
Today, all HORNBACH customers have the option of waiting for
a traditional checkout or scanning and paying for their purchases
themselves. That is the result of painstaking development
followed by a rapid rollout. Florian Preuß
L
ong waiting times at checkouts are annoying. That is In early 2018, the revised self-service checkouts were
true anywhere and DIY stores and garden centers are then tested at one store in Sweden and several stores in
no different in that respect. But at DIY stores in par- Germany. The results were clear – the technical solution
ticular, it is not always possible to avoid long lines however involving handheld scanners, touchscreens, cash recyclers,
carefully the store managers plan their staff rosters. All it and card terminals worked correctly and smoothly. “Many
takes is a warm ray of sunshine in the spring and sudden- customers who were initially skeptical about this new
ly the store is overrun with customers impatient to tackle option were convinced as soon as they tried it out”, reports
their first home and garden projects. “In situations like Annekathrin Degen. Word of the successful new system
that in the past, when lines of customers with trolleys full quickly spread among employees at the trial stores,
to the brim suddenly formed at the checkouts, we basically managers, and visitors from central administration depart-
had to make a difficult choice”, explains Volker Guth, a ments. This way, the original plan of equipping up to 20
district director responsible for six HORNBACH stores in stores in Germany with the self-service checkouts in 2018
south-western Germany. “We could let our customers wait was drastically stepped up. The new target was to fit out
at the checkouts or withdraw specialist sales staff from more than 90 stores in Germany within just four months.
the departments and deploy them at the checkouts for “The fact we managed that mammoth task under our own
hours on end – knowing that they would then not be avail- steam, including training store employees and installing
able for the equally important task of advising customers.” all the checkouts, is a great example of the team spirit at
HORNBACH. All colleagues pulled together, whether they
Store managers no longer have to make this tortuous were at the stores or in the personnel, customer service,
decision. That is because HORNBACH has installed self- or other departments”, enthuses district director Volker
service checkouts in recent months at stores in Germany, Guth looking back. He adds: “The self-service checkouts
the Netherlands, and Sweden. Further HORNBACH regions absolutely proved their worth on the warm days around
are set to follow. The “self-checkout” was developed by Easter. Even though customer numbers reached new
an internal project team formed at the end of 2016. An record levels at many stores, we managed to avoid any
initial trial with existing checkouts and slightly amended congestion in the checkout area.”
checkout software programs was held at the store in
Ludwigshafen-Oggersheim. “We rapidly gained valuable
experience which we could then factor into our in-house
development work late in 2017”, explains Annekathrin
Degen from the project team. “We soon decided, for
example, to keep the number of digital masks and entry
options as low as possible. This way, our customers can
find their way around the system quickly and intuitively.”
Annekathrin Degen and her project team were the The option of using a signature system for card payments
driving force for the new self-service checkouts. has now also been integrated.
HORNBACH Sustainability Magazine 2019
FAMILY COMPANY | Duty First 19
“As regards the hall, all I need say is that it is “It is all about loyalty in return for loyalty.
intended to continue the tradition taken over HORNBACH is loyal to its employees and they
from the old Hornbach builders’ merchant have the feeling that this is the right place
business, i.e. trading cement, stones, bricks for them. They in turn are then loyal to the
and so forth, as practiced from generation to company.”
generation for around 90 years, albeit under
2010: Interview in company TV
very different conditions now. But the similari-
ties are enough for us to declare: ‘Grandpa’s
builders’ store is dead, long live grandpa’s
builders’ store!’” “Not a single mark has been unnecessarily
1968: Speech at topping-out ceremony for construction
siphoned off onto the private accounts of
of HORNBACH DIY superstore in Bornheim the owners, gold bars in Switzerland, invest-
ment properties, foreign property holdings,
or any other reinsurance or compensation
schemes. Our motto has always been: give
“Our aim is not just to sell things but to the company all you have.”
offer our customers all-round satisfaction.”
1974: Speech at company party
1980: Opening of Karlsruhe store
“We never took huge risks,
“The company would never have been publicly but advanced step by step.”
FA M I LY C O M PA N Y listed if that had involved the slightest risk
2004: In review
of the family no longer being able to implement
its ideas.”
DUTY
1988: Quotation from Börsen-Zeitung
“I would like to continue working in an open
working climate, one based on mutual respect
and trust.”
FIRST “It was our accolade, it is our Cross of Merit.
We all worked hard over the past 30 years
to deserve this. Without the efforts of every-
2010: Interview in company TV
one here, we would not have become a large,
Company founder Otmar Hornbach stood at the helm for more than three decades. respected company. But it will also help in “With a heavy heart, I managed to do the
Shaped by the virtues of the “honest merchant”, the DIY store pioneer obtaining high-level honorary appointments right thing. I certainly have the impression
where we can do things for society as
always took a forward-looking, principled, and humane approach. that my sons are prepared to cope without
a whole.”
Today, we would say he acted sustainably. outside help in future. I just happen to
Anna Krall and Stefan Wolf 1999: Awarding of Federal Cross of Merit, think that HORNBACH is the crème-de-la-
letter to employees
crème and ideally managed.”
2010: Interview in company TV
“It would be neither ethically appropriate nor
materially justifiable for the family to pre-
maturely or unnecessarily run away from its “HORNBACH is and will remain independent.”
responsibility.” 2010: Interview in company TV
1997: Ad-hoc-announcement following
takeover rumorsHORNBACH Sustainability Magazine 2019
RUBRIK COMPANY
FAMILY Thema | The Family Commitment 21
partnership with the British company King- by shares was the right way forward. This Left: Otmar Hornbach
in August 1967.
fisher plc. At the time Europe’s largest DIY provides the company with the ability to take
Concrete rings for the
player, Kingfisher acquired a qualified mino- up fresh capital without the family losing its sewage plants then pro-
rity stake of 25 percent plus one share. This controlling influence. duced by HORNACH
alliance made it possible to transfer compa- are provisionally stored
in the open air in front
ny ownership to the next two generations, Now that HORNBACH’s independence and
of the production hall,
securing HORNBACH’s independence for the the family’s influence have been secured on soon to be the site of
future as well. In parallel, Otmar and Albert a permanent basis, the company is free to the first DIY superstore.
Wilhelm Hornbach worked to establish a develop its operating business. As with the
Bottom: Dr. Wolfgang
Rupf (now Supervisory
Board Chairman of
» I looked deep into the eyes of each of the Hornbachs
who bore responsibility for the company at the time,
HORNBACH Manage-
ment AG), Otmar Horn-
bach, and Albert Wil-
helm Hornbach (left to
or was set to do so in future. I asked each of them right). Otmar Hornbach
whether or not they could, with a clean conscience, passed away at the age
stand by the statement that the family would remain of 84 in August 2014;
his 79-year-old cousin
loyal to the company for at least the next 30 years Albert Wilhelm Horn-
and communicate this to the outside world. Each one bach in February 2019.
withstood my gaze. From then on, we began our
»
intensive efforts to organize the succession and draft
interfamily contracts.
Otmar Hornbach
in a speech to store managers in 1998
THE FAMILY COMMITMENT family company in which decision-making
powers relating to the company would be
pooled across family boundaries. This led to
decisions taken in previous years, converting
the legal form has provided HORNBACH with
the reassuring certainty that it will remain a
Security, stability, influence: How the the foundation of the family trust – HORN- family-run company. This way, it cannot be
BACH Familien-Treuhandgesellschaft mbH – taken over by any investor or competitor.
Hornbach family charted the future for
to which all ordinary shares held by Otmar
HORNBACH the company.
and Albert Wilhelm Hornbach were contribut-
ed from August 2002. The trust now includes
around 60 family members from three genera-
tions and pools their shareholdings.
A
Today, family members still require majority
Takeover rumors arose for the first time in 1997. generation. In the absence of suitable preparations, the
approval from the other members if they
That was the moment for company founder Otmar next generation might have to sell shares in the company
wish to sell shares. When, in 2014, Kingfish-
Hornbach and his cousin Albert Wilhelm Horn- to pay the tax and thus risk losing majority control of
er offered to reverse its minority stake and
bach to provide a clear and public avowal of the HORNBACH. The two cousins weighed up various options
sell its shares back to the family, the family
family’s commitment to the company. The family would and ideas, discussed them and then discarded them.
did not hesitate. The founding family thus
not relinquish its controlling influence over the company
secured its influence on the future share-
either then or in the following generation. But what was Both cousins favored a strategic partnership in which a
holder structure. Together with the Board of
the best way to hand the company over to the next gen- partner would contribute capital and in return obtain
Management of HORNBACH Holding AG, it
eration in an orderly manner? The greatest obstacle was shares with voting rights. The opportunity arose in Novem-
decided that changing the legal form of the
inheritance tax, which would have to be paid by the next ber 2001: HORNBACH Holding AG entered into a strategic
holding company into a partnership limitedHORNBACH Sustainability Magazine 2019
SPECIAL PRODUCTS | A Typical German SME! 23
S P E C I A L P R O D U C T S
A TYPICAL GERMAN SME!
We visit Südpfalzwerkstatt gGmbH in Offenbach
and Lebenshilfe Bruchsal-Bretten.
„max4car“ and „Comebags“ are two popular brands in the HORNBACH universe.
Customers can find the first of the two in the form of ice scrapers and other products
on sale at the stores. New employees are welcomed with a bag from the second when
they start out at the company. The products offered under the two labels have one
thing in common – they are manufactured by people living with disabilities.
Ben Krischke, Tilman Sanner
A
s the road with colorful houses comes to an end, company performs metal work, packaging and assembly
the residential area gradually turns into a small activities for industrial and trade customers. On the other
industrial estate. Grey one-story buildings, nearly hand, the location is also home to the automotive accesso-
all with glass fronts, appear on both sides of the ries sold under the “max4car” brand, a private label of
road. We have hardly arrived in the reception at Südpfalz- Südpfalzwerkstatt.
werkstatt gGmbH when we are greeted by a young man,
30 or so, who comes along the corridor and smiles. He
A COMMUNITY OF SOLIDARITY
offers us a warm welcome and seems to be genuinely
interested in how we are. We get talking right away. He Heribert Boltz is head of the “max4car” division. The
tells us about his school days and about how the teacher master engineer with additional training in special needs
once accidentally locked him in the classroom. Fortu- education has worked at Südpfalzwerkstatt for more than
nately, the headmaster was still in the building and finally 30 years now. After our first friendly encounter with the
let him out. “Just imagine if he had already gone home, young employee, it is he who leads us along a narrow
the headmaster”, he adds and can hardly stop laughing. corridor. We pass large shelves with colorful ice scrapers
and snowbrushes. “We are always up to date with the
Outside, no overcoat is a match for the icy winter cold, latest color trends”, says Boltz. He smiles and hands me
but inside our first encounter is warm and friendly. The a light blue ice scraper.
first impression of Südpfalzwerkstatt is that of a typical
German medium-sized enterprise. Like at any other com- Südpfalzwerkstatt was founded in 1974 by parents looking
pany, workers are going about their activities. The only for a structured daily routine for their disabled children.
difference here is that the people are living with disabili- Unlike today, the company could not pay any wages, but
ties. This location in Offenbach an der Queich has two it forged initial contacts to companies in the region. No
main product and service lines. On the one hand, the later than the nineties, the model was an absolute success.24 HORNBACH Sustainability Magazine 2019
SPECIAL PRODUCTS | A Typical German SME! 25
Top and P. 22: Enjoyable
Südpfalzwerkstatt grew and the number of “2K, Blue” ice scraper costs Euro 2.49, while A trained graphic designer, Tschürtz produces brochures, summed up as a commercial agent and customer advisor.
work: Lebenshilfe Bruch-
sal-Bretten is building employees also rose consistently. The com- the “M, Blue” ice scraper with an integrated websites, and banner adverts. He now also works for Customers for the bags include well-known companies
on upcycling. Among pany now has more than 800 disabled people snowbrush costs Euro 6.49. The “max4car” Lebenshilfe which, among other products, manu- from a variety of sectors and the German Soccer Associa-
other products, the com- working at three locations. These are accom- private label currently accounts for the largest factures the bags for his “Comebags” brand. According tion (DFB) has already kitted itself out with “Comebags.
pany’s sewers make at-
panied by more than 200 support staff and share of revenues at Südpfalzwerkstatt. to Tschürtz, it all began with a “crazy idea”. Back in For HORNBACH, Lebenshilfe Bruchsal-Bretten has been
tractive bags out of old
advertising banners for administrative employees. The public sector 2012, he was chatting to a friend about banner adverts producing press folders and shoulder bags since 2013.
the “Comebags” brand. covers the costs of the support staff, as well and how they involved a costly design and production These are presented to new HORNBACH employees as a
UPCYCLING:
as factors such as transport services, food, process but were usually thrown away again after two welcome gift, but are only on sale at the DIY stores and
Right: Comebags for IN LINE WITH THE TIMES
HORNBACH: New em-
and heating, while the company pays the weeks. “I checked the internet to see if there were any garden centers in exceptional cases.
ployees receive the wages of its disabled employees, as well as “Lebenshilfe Bruchsal-Bretten” has its head- companies that would make bags for me out of my banner
recycled bags as a wel- the staff costs for special roles not involving quarters just over 45 minutes’ drive south- adverts but I could not find any”, he remembers. “The Between 40 and 50 Lebenshilfe employees now work
come present on their
support activities, such as marketing and east of Offenbach an der Queich. Founded in idea of recycling bags is not new, they are all over the only on “Comebags”. And the product range has long
first day at work.
logistics. 1963, this association now offers production internet. But until now, no company offered just the up- since expanded beyond shoulder bags. Aprons and tablet
and service jobs to more than 800 adults cycling part and sent the finished bags bag to the client.” cases are also part of the portfolio. Looking ahead – and
The company has to generate profits to cover living with disabilities. One product based on He spent six months turning the idea over in his mind here the difference to commercial companies is striking
the costs of its employees but is neverthe- upcycling, and thus on an idea that is abso- before hearing about the facility in Bruchsal from an – Tschürtz wants to make sure that “Comebags” do not
less organized as a community of solidarity. lutely in line with the times, has become well acquaintance in the textile industry. become too successful. “We do not want to get ahead of
Boltz explains: “Our official mandate is to of- established there recently. The basic idea is ourselves”, he explains. “The initial vague idea has already
fer a variety of work for employees with widely that an item that is no longer in use or wanted A while later, once all involved had been convinced, Bruch- become a fantastic project, one which benefits us all.
differing skills and abilities. Tasks range from should – by acting creatively – be turned into sal was the birthplace of the first “Comebags” bag. “I ex- We aim to keep it that way. It cannot get any better than
simply handing over items through to complex something new, usable, and unique. Thanks pected to produce maybe 100 bags a month. Today, we it already is.”
turn-milling activities. We are a team in which to people like Christian Tschürtz, that idea is are already at 1,500 a month, and we might achieve
everyone does their bit”. At HORNBACH, the certainly trending. even more”, reports Tschürtz, whose role can roughly be26
Top/right: Südpfalz- “IT DOES NOT HAVE TO BE ORGANIC Towards the end of visit, the head of the
werkstatt in Offenbach
TO BE SUSTAINABLE“ “max4car” division takes us to another part
supplies products and
of the building. There are cardboard boxes
services to industry and
trade companies. Its Back in Offenbach an der Queich, people are and palettes everywhere. In a square space
main revenue driver also giving thought to the future. According behind a glass cover there is a sign on the
is automotive acces-
to division head Heribert Boltz , the greatest wall which says “We do all that!” Beneath it,
sories sold under the
“max4car” label. This
challenge facing “max4car” is that of surviv- colorful “max4car” products hang together
own brand can also be ing on a permanent basis. After all, the brand like a collage. Half the two dozen plus work-
found on HORNBACH’s has to compete with commercial suppliers places are occupied by people busily assem-
shelves – ice scrapers
and imports from the Far East. “We are abso- bling and packaging products. It looks like
equipped with snow
brushes and available lutely in competition”, he explains. “The so- the workshop at any typical German medium-
in a variety of colors. cial aspect is not a strong enough argument. sized enterprise. But when we enter the room,
We also have to ensure the right quality, price, the welcome is warmer and friendlier than
and supply reliability”. He provides extra elsewhere. And so are the goodbyes.
arguments. “max4car” products are produced
in the region, avoiding the need for long and
costly freight routes. Not only that, they can
react to peaks in demand, such as a sudden
onset of wintry weather. “Our products are
high-quality products offering great durability
and correspondingly long useful lives. It does
not have to be organic to be sustainable”,
he adds.HORNBACH Sustainability Magazine 2019
HERE’S TO PARTNERSHIP | Not Erratic, but Pretty Demanding 29
H E R E ’ S T O
PA RT N E R S H I P
I
f you stop moving, you’re already out of the game”, specialist sales staff at various HORNBACH stores, advice
says Dirk Jähnichen, laughs, and quickly rolls up his from e-business colleagues, and the judgment of design
sleeves. The 46 year-old head of sales at Baumit professionals in the module development department.
GmbH in Germany is in his element today. He is not The full module, which at large stores is more than 18
sitting at his desk or behind the wheel. He is rather meters long and nearly four meters high, was first assem-
standing in the middle of a long and very dusty aisle in bled on a trial basis at HORNBACH’s development center.
the construction materials section of HORNBACH’s store That was followed by further optimization, reviews, and
in Neu-Ulm. He is watching two fitters who are in the documentation. Finally, the module was assembled for
process of shifting the middle level of an enormous heavy- real at four HORNBACH stores, with further improvements
duty shelving system by a few centimeters. To the left and during ongoing operations.
right of the shelves, new goods are waiting to be stocked
by Jähnichen and his four-man team. Getting things done, “Yes, that’s absolutely sound, planned right down to the
that is what he likes best. He is also a fan of pithy sayings, last detail”, says Dirk Jähnichen with a smirk and a hint
and gives us another: “Better is the enemy of good.” that this approach takes some getting used to for a hands-
on guy like himself. And it suits him fine that not every
In this case, the “good” is the old module in which Baumit HORNBACH store is identical, so there is a steady stream
successfully presented its products to customers at all of of minor hurdles to be overcome when installing the new
HORNBACH’s stores in Germany for seven years. Demand module. That calls for improvisation when one part of the
NOT ERRATIC, for the mortar, concrete, plaster, trowels, primers, and
many other items offered by the renowned brand manu-
shelving system has to be assembled and stocked slightly
differently than originally planned. That is the cherry on
BUT PRETTY DEMANDING
facturer with the red square in its logo has grown in each the cake and is what makes the assembly work more
of these seven years. “At the same time, the world has interesting for the men. “Having said that, there is no
moved on”, explains Sven Lüth, the HORNBACH purchaser doubt that this rollout is only going so smoothly and quickly
responsible for the construction materials product range because we did our homework together and prepared it
who always has one eye on what might be “better”. “We so thoroughly”, adds Jähnichen. And also because staff
have developed new products together, such as numerous at the store already made space and cleared everything
items promoting a healthy living environment. Then we away the day before. The Baumit team then has one day
gained some new insights into better customer manage- for the conversion work. Often, like today in Neu-Ulm,
ment. Finally, there is no doubt that the interaction with it only takes half a day.
HORNBACH works with several hundred suppliers.
our online store, with its wide variety of information and
Many of these business relationships have a long track record. guidance for customers, is also playing an ever more
Suppliers grow in parallel with the company. The construction WORKING TOGETHER TO PROMOTE
important role.”
materials manufacturer Baumit is a good example
HEALTH IN THE HOME
of how attractive but also challenging that can be. A few hundred kilometers south-eastwards, Georg Bursik
ABSOLUTELY SOUND MODULE DEVELOPMENT
Florian Preuß is standing in the middle of a settlement with a futuristic
The new product ranges and insights were factored into feel about it. Twelve similarly sized cuboid buildings,
the development of the latest module in 2018. Account painted white, have been built side by side in Wopfing in
was also taken of experience gained by longstanding Austria, all of them built in different ways and using30 HORNBACH Sustainability Magazine 2019
HERE’S TO PARTNERSHIP | Not Erratic, but Pretty Demanding 31
different construction materials. Since 2015, the Austrian were very interested in a business relationship. After all,
company Baumit GmbH has been conducting research HORNBACH had a reputation as a modern company with
here on the impact of construction materials on health in a really practical approach”, remembers Georg Bursik.
the home. Based on real-time comparisons and account- Based on the experience gained over the past 23 years,
ing for extreme weather conditions, a variety of parame- he adds: “What makes HORNBACH different from its com-
ters are measured at 33 points in each house. These petitors is its clear focus and the fact that it is not erratic.
include temperature, humidity, particulate matter concen- It is not interested in random results and does not need
tration, and energy consumption. The findings are interest- 27 different kinds of bricklaying mortar. Instead, it wants
ing, but not always groundbreaking. “We showed, for a strong core product range with very good products.”
example, that lime plaster makes the best contribution to
managing humidity”, explains Managing Director Georg
NEW FORMULAS FOR THE
Bursik. “People round here already knew that 200 years
HOME IMPROVEMENT TARGET GROUP
ago, but seem to have forgotten in the meantime.” Now
it is becoming widespread knowledge once again thanks Four years after first making contact in Austria, Baumit’s
to Baumit’s product range. The current module at the German sister also entered into a business relationship
HORNBACH stores will also help spread the news, with with HORNBACH. In this case, the partnership is highly
information panels clearly pointing out the positive exclusive. Since then, HORNBACH has been the only
characteristics of lime plaster. “Baumit was one of the player in the German DIY store sector to offer Baumit’s
first suppliers we worked with to tackle the forward-look- products. “Throughout our company’s history, stretching
ing topic of health in the home eight years ago”, explains back more than 100 years, we had mainly focused on
purchaser Sven Lüth. “Since then, we have worked to- professional customers: architects, builders’ firms, housing
gether to hold several information events for our custom- cooperatives, and so forth. Thanks to our cooperation with
ers. And we are naturally very interested in the latest HORNBACH, we then dealt more closely with the needs
developments at the research park.” of private customers and home improvement enthusiasts”,
relates Dirk Jähnichen. The company increasingly devel-
Austria is also where the cooperation between Baumit and oped formulas that facilitated easier and above all longer
HORNBACH first began. In 1995, when news seeped processing. Finally, the packaging sizes were also reduced. companies has been rising for years now, and Customers are also referred here to informa- Top: The new module
at HORNBACH’s store
through the industry that the DIY store chain, at the time Mortar sacks, for example, were only available in 40 kilo HORNBACH has done a really good job of tion available online, such as instructions and
in Neu-Ulm offers
only known in Germany, was preparing its market entry in packages right through to 2009. The two companies then addressing the needs of this target group with more details about quality and health-related customers a wealth
the Alpine republic, Baumit’s management got in touch. took the almost revolutionary step of downsizing five suitable products and services”, adds Dirk aspects. “The company is doing a fantastic of products and extra
“Back then, we mainly sold our products at specialist products to 25 kilos. Other players in the sector were Jähnichen. Pointing to a nearby shelf, he then job of bringing new product ranges to its information.
retailers and the former competitor Baumax – and we skeptical about that approach at first, but sales soon began indicates a further effect. The focus on the stores via online retail. If you look for a pro-
Left: Baumit sales ma-
to rise rapidly. Private customers in particular, who face needs of professional customers means that duct with a search engine, you mostly find nager Dirk Jähnichen
the laborious task of loading and unloading individual the product range on offer at the stores is also HORNBACH listed at or near the top”, adds likes getting involved
sacks, gratefully seized the benefits of the new weight. growing. For cladding design, for example, Dirk Jähnichen. The great tempo at which and demonstrates the
applications for indivi-
Ultimately, the new size also met with a warm reception the new module also includes colored plasters the company was developing also posed a
dual products.
from professional customers, whose trade associations from Baumit. “The product range is still highly challenge for suppliers: “When it comes to
had long been recommending them only to lift weights of focused, but already much more extensive e-commerce, we also work together success- P. 28: At the research
park, the team around
up to 25 kilograms to avoid damaging their health. than the old module”, explains Jähnichen. To fully with other retailers, but the vehemence
Managing Director
make space, a few bulky glass cases had to with which HORNBACH is promoting this Georg Bursik investi-
The growing range of professional brands on offer, such be removed. Even so, there is still not enough key distribution channel is unique among our gates the influence of
as Baumit, has made HORNBACH stores ever more attrac- room for the entire product range. business partners.” materials on health in
the home.
tive for professional customers in recent years. Each store
now has a special professional customer advisor who
AMBITIOUS TEMPO
performs tasks such as accepting orders and making the
goods available on site. When holding events for the pro- Fortunately, HORNBACH also has its online
fessionals, these advisors can also count on support store. The new module is full of references to
from Baumit’s experts. “The number of small-scale trade additional items available on this channel.32 HORNBACH Sustainability Magazine 2019
A SHORT STORY | The Customer Journey 33
A S H O RT S T O RY
THE CUSTOMER JOURNEY
Customers can now find more than 170,000 articles at HORNBACH. Never before was so much
information available for each individual article. Clever tools and well-trained employees support
customers along every step of their projects. Florian Preuß / drawings by Paul Grabowski34 HORNBACH Sustainability Magazine 2019
A SHORT STORY | The Customer Journey 3536 HORNBACH Nachhaltigkeitsmagazin 2019
INVESTING SUSTAINABLY | Beyond the Figures 37
And now there are numerous ESG rating shows that blacklisting companies with
agencies, such as Sustainalytics, MSCI ESG controversial business models is by far the
Research, and ISS-oekom, which evaluate most popular strategy. Alongside this, ESG
this data and aim to offer neutral, compara- criteria are also being included ever more
tive assessments of companies’ sustainability often in traditional financial analyses. Either
records – so far with widely varying results. that or investors select companies that score
particularly highly within their sectors. The
This being so, most investors now rely not Global Sustainable Investment Association
only on the evaluations published by rating (GSIA) estimates that sustainability criteria
agencies, but are also setting their own stand- are now factored into the investment decisions
ards (see interview). A study performed by for around 30% of the assets invested world-
the European Sustainable Investment Forum wide – and that figure is rising rapidly.
I N T E RV I E W
I N V E S T I N G S U S TA I N A B LY
“SOMETIMES COMMON SENSE
IS THE BEST GUIDE”
BEYOND THE FIGURES Shareholder Value Management AG (SVM) is responsible for the investment strategy
at Frankfurter Aktienfonds für Stiftungen, an equity fund for foundations,
which has held shares in HORNBACH Holding AG & Co. KGaA for many years
In assessing companies, ever more investors are not only now. Portfolio manager Ronny Ruchay explains the role played by ESG
looking at their key financials but also questioning their impact in selecting suitable companies.
on the environment and society. Anne Spies
W H E N D I D S V M S T A R T FA C T O R I N G E S T was to do justice to the fund’s specific target
A
C R I T E R I A I N T O I T S E Q U I T Y A N A LY S I S , groups and optimize its risk management. This
irbus, Philip Morris, Rio Tinto, Walmart – these There are many reasons for this. On the one hand, ever AND WHY? catalog now applies to all funds we advise.
companies have one thing in common: They are more studies have shown that investment risks are re- The underlying idea of investing capital not
all on the blacklist of Norway’s state pension fund, duced when ESG (environment, social, governance) cri- only with a view to returns, but also responsi- WHAT APPROACH DOES SV M TA K E
one of the world’s largest shareholders. The Nor- teria are accounted for. On the other hand, institutional bly, has been part of our investment policy T O A N A LY Z I N G C O M P A N I E S ?
wegians refuse to invest their cash in companies which and retail investors are increasingly on the lookout for since the very outset. Over time, there has In the first step, Sustainalytics reviews all
produce nuclear weapons or tobacco, ruin the environ- financial products that are consistent with their values been an ever greater need to structure invest- potential investments to check whether their
ment, or turn a blind eye to violations of human rights and convictions. One catalyst in Europe in particular is ment criteria and the underlying processes. business models collide with our criteria. Prob-
or labor law. ever stricter regulation requiring companies and investors Based on the “Guideline for Ethically-Sustain- lematic areas for us include manufacturers
alike to offer greater transparency in terms of the ESG able Investment of the Protestant Church of tobacco products, gambling, pornography,
And they are not alone. Ever more asset and fund manag- impact of their business activities and investment policies. in Germany”, in 2013 Shareholder Value Ma- nuclear energy, armaments and weapons,
ers are factoring environmental, social, and governance Among other requirements, these include the obligation nagement AG began by cooperating with the as well as highly alcoholic beverages. That
factors into their choice of stocks. What used to be the on companies across Europe to publish a so-called “non- research provider Sustainalytics to compile a automatically excludes some companies in
hallmark of foundations, churches, and charities has financial declaration”, which now forms part of the Annual catalog of exclusion criteria for the Frankfurt- advance. For the others, we then begin our
now become mainstream. Report at HORNBACH as well. er Aktienfonds für Stiftungen. The aim here own detailed in-house analysis.38 HORNBACH Nachhaltigkeitsmagazin 2019
INVESTING SUSTAINABLY | Beyond the Figures 39
ARE THERE ANY E XCLUSION CRITERIA appropriate – and certainly in the interests of AND HOW WOULD YOU ASSESS THE
WHICH ARE MORE OPEN TO DISCUS SION? value investors with a long-term perspective, INFORM ATION PROVIDED ABOUT ESG?
The guidelines issued by the Protestant as is the case for us. When it comes to multi- HAS THE LEGA L OBLIGATION TO
church provided the inspiration for our cata- channel, we see HORNBACH as one of Ger- PROVIDE SUS TAINABILIT Y REPORTING
log of criteria, but our catalog differs in two many’s best-positioned DIY chains and cer- (NON-FIN A NCIA L DECL A R ATION)
aspects. Firstly, we do not invest in nuclear tainly a European leader. At present, however, LED TO GRE ATER TR ANSPARENCY?
power, whereas the Protestant church does we think HORNBACH may have overshot the That ultimately depends on the individual
not exclude that. Secondly, we take a different mark in terms of its investments in digitaliz- company. Companies like Hornbach that are
view on genetically modified seeds. Given ing its business model. We also ask ourselves managed in an exemplary fashion are very
the difficulties in feeding the population in how well that approach sits together with sub- transparent. Extended reporting would actual-
many parts of the world, we see investments, stantial investments in retail properties whose ly not be necessary here. For the reasons out-
and thus support for companies that produce ongoing value is challenged by e-commerce. lined above, we in any case see topics such
these seeds, as legitimate and necessary. We discuss these topics openly and with due as employee management and development
frankness with the management. We also as belonging in the annual report. But there
W H A T E S G FA C T O R S D O Y O U S E E make no bones about our wish to see a simpli- are other companies where the legal obliga-
A S REL E VA N T T O HORNBACH? fied company structure. Here, we see our- tion to provide transparency marks an im-
Firstly, there is the “G” for governance: selves as a long-term partner and as a sparring provement and helps more negligent players
T H A T M E A N S Y O U D O N O T S O L E LY R E LY HORNBACH is a family company that comp- partner to the management and, by implica- to overcome their reservations. For us as
O N T H E D A T A F R O M S U S T A I N A LY T I C S ? rises two listed stock corporations. As the tion, the Hornbach family. A long-term mind- investors, however, that is less relevant, as
The advance selection is very important, but anchor shareholder, the Hornbach family set certainly has many merits, but we want our focus is on well-managed companies.
then we have to look into the specifics at exercises decisive influence over the operative and need to satisfy our investors by critically
each company. Here, we may find potential and strategic management of these compa- reviewing every euro – which at the end of the HOW OF TEN DO YOU R AISE ESG-REL ATED
economic risks that are not covered by the nies. For outside investors, who are always day belongs to our investors – to see whether T O P I C S I N Y O U R T A L K S W I T H T H E C O M P A N Y,
advance analysis. How do the companies treat de facto in a minority, it is therefore very it has been reinvested so to create value. That AND WHAT ASPECT S IN PARTICUL AR?
their employees? Are there any indications of important that decisions should be taken to means that sustainability and governance are The preliminary filter at Sustainalytics en-
unfair business practice? Sometimes common the benefit of all shareholders. In individual closely interrelated. ables us to filter out numerous potentially
sense is the best guide. If a company’s prices cases, that may led to conflicts. critical topics relating to “Environmental” and
fall short of a certain limit, for example, then W H A T O T H E R A S P E C T S P L AY A R O L E ? “Social” in advance already. In practice, there
that is already an indication that the business A L SO AT HORNBACH? Supply chain quality is also relevant. For its is then little need for discussion. It is a
model cannot be sustainable in economic As I see it, the owners have a great interest private labels, Hornbach procures some pro- different matter when it comes to “Govern-
terms. In our analysis, we also refer to the ten in handing over a strong company to the next ducts from a subsidiary based in Asia. As pri- ance” topics. Questions as to how the com-
principles of the “UN Global Compact”, which generation. Consistent with this desire, the vate labels account for more than 20 percent pany is managed, how ownership is struc-
is intended to prevent violations of human management pursues a long-term strategy, of sales, it is important for the company to tured, and whether the management has its
rights and labor law requirements, as well as and that with the approval of the Supervisory offer the right product quality and meet its own “skin in the game”, i.e. holds a substan-
environmental pollution and corruption. Board, which is decisively influenced by promise of offering the “best value for money tial stake in the company, cannot be answered
individuals from the Hornbach family. That in the market”. Compliance with environ- by the filters. In these cases, talks have to
H O W S T R I C T LY D O Y O U I M P L E M E N T way, they are willing to accept lower profits mental standards and fair working conditions be held with the management. Depending on
THESE CRITERIA? for a certain period if that is what it takes to at the suppliers is also relevant here, not the case in hand, these may then lead to
It is about finding the right balance. If, for make the company fit for the coming years only from a customer’s perspective, and is lively debate.
example, the controversial business fields at and decades. an important part of the product claim. Last
a given company account for less than ten but not least, employee management is also
percent of its revenues, then we do not auto- IS HORNBACH ON THE RIGHT COURSE relevant. A large share of the customers
matically exclude that company from invest- IN TERMS OF IT S S TR ATEGY? HORNBACH targets are professionals. The
ment. That does not apply, however, for HORNBACH is investing a great deal of cash company is therefore dependent on the com-
weapons banned under international law, such in building up its online business or, to be petencies of its employees, many of which
as land mines or cluster bombs. Here, the ban more precise, in interconnected retail. For previously worked in trades themselves. In
on investment automatically applies regard- long-term survival in a tough competitive view of this, effective employee management
less of the share of revenues. climate, those investments are necessary and and retention are correspondingly important.You can also read
