IPG Photonics implements thoughtful and responsible initiatives to build a more sustainable world.
REDUCING INDUSTRIAL WASTE
As the leader in fiber laser technology, we have introduced innovations to make industrial lasers more power efficient. The energy efficiencies provided by IPG fiber lasers not only lowers our customer’s operating costs, but more importantly reduces their carbon footprint and reduces greenhouse emissions produced by industrial applications.
IPG LASERS CUT ENERGY REQUIREMENTS
Nd:YAG Incandescent Laser = 2% WPE
Equivalent to a traditional filament light bulb, the majority of input energy for this type of laser is lost as heat. More electricity is needed to attain required output power, necessitating powerful chillers to dissipate the significant heat which is effectively lost energy.
CO2 Fluorescent Laser = 7-8% WPE
While these types of lasers are 3-5x more efficient than Nd:YAG laser, more than 90% of CO2 input energy is lost as heat, much like a CFL bulb. Significant cooling is also required for most industrial applications, further increasing the energy usage of CO2 lasers.
IPG Photonics Fiber Laser = >45% WPE
IPG fiber lasers deliver wall plug efficiencies from 45 to more than 50%, dramatically reducing the input power needed to operate. Also, fiber’s high surface area to volume ratio combined with its efficiency greatly reduces heat output and corresponding cooling cost of a chiller.
Aside from the positive effect that the adoption of our efficient products provides, we are committed to reducing the environmental impact from our manufacturing and increasing the sustainability of our operations. Our new construction is built at a level higher than energy codes require. Our new facilities incorporate LED light fixtures, reducing electricity use by 75% compared to incandescent bulbs, and the most water conservative plumbing fixtures available. We implemented co-generation and heat recovery systems at some of our major facilities. We continue to identify new ways to divert materials and waste associated with our operations from landfills. We have developed a metal recovery program saving thousands of pounds of materials (such as aluminum, copper and steel). Since 2010, we have recycled over 2,300 tons of material.
IPG provides innovative solutions in nuclear decommissioning and other applications, where cutting of metal pipes, cylinders and other structures is done in a highly contaminated environment posing health and safety risks.
OUR PEOPLE AND COMMUNITIES
IPG’s mission is to make our fiber laser technology the tool of choice in manufacturing, transforming the way businesses operate. This choice enables manufacturers to positively impact our world by decreasing material waste and reducing their carbon footprint by using the most energy efficient fiber lasers available. To accomplish this mission, we attract and retain the brightest talent in our industry. Our people are empowered to build rewarding careers as a member of the IPG family in a safe and welcoming workplace where diversity is embraced.
Imperial College London
IPG sponsors Masters and Ph. D. physicists at the Imperial College London. We're also involved in Project Photon training local teachers in laser use.
The Optical Society
IPG is a co-founder of the Siegman International School on Lasers, created by the Optical Society of America to expand access to laser education.
Worcester Polytechnic Institute
We established the IPG Photonics Laboratory at Worcester Polytechnic Institute (WPI), supporting engineering opportunities for students with the donation of photonics equipment and other resources.
Society of Women Engineers
IPG Sponsors the Society of Women Engineers, promoting the advancement of women in the engineering field.
IPG is committed to conducting our business with integrity and in compliance with all laws and regulations for the locations where we operate. In all interactions, we are accountable to our employees, customers, suppliers and other key stakeholders. IPG provides ongoing training to employees and methods for individuals to confidentially report violations to help ensure compliance with our policies and laws.
DIVERSITY AND INCLUSION
IPG views diversity as an opportunity to foster multi-cultural differences as a means of providing a more inclusive and rich company culture. IPG strives to create an environment where differences are respected and employees can freely contribute and thrive. We champion diversity and focus on attracting and retaining top talent from diverse backgrounds and experiences. Further, we conduct audits within our businesses to monitor the consistency and fairness of our pay equity philosophy and practices.
Currently about 21% of our global leadership workforce consists of women and minorities, respectively, in key management roles. Moreover, IPG adopted Rooney Rule in 2021, and now, in 2022, 30% of the Board members are female directors compared to a single female director in 2020. Over the past four years, we have regularly met our goals of increasing the representation of women and minorities, through targeted hiring and key promotions focused on our technical staff including our Scientists and Engineers. To further support our mission, IPG has donated to multi-cultural scholarships, educational programs and fellowships in our industries and surrounding communities.
To this end, we actively recruit women and minorities into valued positions and invest in both professional and academic programs that develop and empower these significant contributors to grow both personally and professionally. Key partnerships include: the Society of Hispanic Professional Engineers, the Society of Women Engineers, National Society of Black Engineers, the Southeast Asian Coalition, and major universities that include a large population of women and minorities in STEM related curriculum, including participation in virtual career fairs during the global pandemic.
SAFETY IN THE WORKPLACE
IPG is focused on providing a safe and healthy working environment. IPG actively avoids any adverse impact to the environment and communities in which we operate. Environmental, health and safety (EHS) concerns are the responsibility of our executive leadership and all employees, regardless of function. We concentrate our EHS efforts in the areas with the greatest risks and invest in programs and technologies that keep our people safe.
IPG’s manufacturing employees undergo comprehensive training to reduce workplace hazards and accidents. For example, the incidence rates for recorded injuries for our US operations is substantially less than the industry average. In 2017-2020, our average total recordable injury rate was 0.7 compared to 2.7 on average for companies in the same industry.
Over the past three decades, IPG Photonics has partnered with academic institutions to advance the study of photonics and to allow for the optical laser industry to be a viable career path for students studying the technical sciences. As a global leader in fiber laser innovation, IPG Photonics has partnered with leading scientific and educational institutions. IPG invests in and promotes the education of our future leadership in order to foster continuous improvements in technology and talent development for our industry. IPG has targeted investments toward education, scholarships and fellowships in our industries and communities.
We sponsor Master degree programs and Ph.D. physicists at Imperial College in London and are involved in Project Photon, a laser-use training program for local teachers. In Germany, we are funding an endowed professorship for Optics at the Technische Hochschule Mittelhessen in Wetzlar. Moreover, we provide funding for lecturers, achievement awards and travel grants with the goal of fostering future research in the laser industry. IPG co-founded the Siegman International School on Lasers, created by the Optical Society of America, to expand access to laser education. The Siegman School is a week-long program that exposes students to in-depth learning of lasers and their applications. The Thomas F. Deutsch Fellowship in Biomedical Optics at Massachusetts General Hospital, affiliated with Harvard University, supports scientists pursuing careers in biomedical optics and is endowed through a generous donation from IPG Photonics. The first winner of the Fellowship was Yue Zhuo, who earned her Ph.D. in bioengineering.
IPG Photonics calls many countries its home and invests in the communities where we operate. We have a long history of supporting local non-profit organizations through a variety of in-kind, corporate and personal giving. Our charitable contributions target education, community welfare, civic and social service programs and arts and culture.
IPG Photonics and its employees are proud to champion local and global projects that are personally meaningful and that develop long-lasting relationships with these organizations. Donations are made through global initiatives, and the company's charitable contributions program, which includes disaster and humanitarian relief efforts in all our communities worldwide. Since 2018, IPG and its employees donated close to $2.8 million to various charitable and academic organizations. Some examples are: the American Cancer Society, the March of Dimes, the American Red Cross, the Boys & Girls Club, Girls Who Code, and local community food banks. In Germany, we are donating to the community via support to four local kindergardens and a hospice for children and young adults in Olpe – the first of its kind in Germany.
Our people actively volunteer their time and talent for causes that create positive impacts in the local communities where we work. IPG leadership encourages employees to participate in team volunteer initiatives that empower teamwork and engage with their communities thus creating a larger impact in and outside our organization.
Our strong and effective corporate governance procedures and structure are an important part of our corporate culture, contributing to informed and effective decision-making and appropriate risk monitoring
Board of Director Excellence
2/3 of our Board members are independent
Separate Chair & CEO
Majority voting standard for uncontested elections
Majority of Audit Committee members are “financial experts”
Progressive Stockholder Rights
Proxy access rights allowing up to 20 stockholders owning at least 3% of shares continuously for three years to nominate up to 20% of the Board
Single class of shares so all stockholders have an equal vote
Annual election of all directors so that director terms are not staggered
Long-Term Stockholder Alignment
Prohibition on hedging and limits on pledging by directors and officers
Robust stock ownership guidelines for directors and executive officers
Approximately 80% of independent director compensation was at risk, based upon stock price performance
Annual Board self-assessments
Independent directors meet in executive session at each regular meeting
Board regularly considers refreshment and succession planning to ensure boardroom skills are aligned with IPG’s long-term strategy
5 new directors added in the past 4 years
IPG Photonics is a leading voice in the laser industry. As a pioneer in the high-power laser field, IPG delivers technological innovations that allow more industries to take advantage of the power and efficiency of fiber laser technology. Members of our Research and Development team are frequently invited speakers at international conferences and events.
UPHOLDING HUMAN RIGHTS
Across the globe, IPG is committed to ensuring equal opportunities and abiding by local laws. IPG strongly believes in treating all employees fairly and with the utmost respect. At IPG, we offer fair compensation, superior benefits and safe working conditions. IPG strictly prohibits all forms of human trafficking, child labor, unfair compensation, discrimination and harassment. View IPG’s Human Rights Policy.
CONFLICT FREE SOURCING
IPG is committed to legal compliance with the Dodd-Frank Wall Street Reform Act, including the due diligence requirements relating to the responsible sourcing of tin, tantalum, tungsten, and gold (3TG).
Our team works diligently towards obtaining disclosures from its suppliers concerning whether any of IPG's 3TG originates from conflict regions or funds conflict there.
We require all suppliers to comply with legal requirements relating to responsible sourcing.
If any of our suppliers cannot demonstrate sufficient compliance with their due diligence and disclosure obligations, IPG will seek alternative sources of these 3TG metals.