andenergyefficiency Climateprotection Technical basic and People at Festo efficiency Resource andmaterial Festofootprint Impact onour customersandsociety further trainingandCER Ethics and governance construction Environment, energyand 1. Strategy and sustainability management 1. Strategy and sustainability management 2020+ sustainability strategy Our 2020+ sustainability strategy was adopted by the Management Board of Festo SE & Co. KG in March 2020 and is now subject to regular updating. Parts of the sustainability strategy are now part of the corporate strategy. People at Festo Within this area of action, we will continue to work on the longterm issues relating to the qualification and further development of our employees, the expansion of occupational health promotion and safety, and equality and diversity. Since 2020, the focus has been, and is, on measures to protect employees from Covid-19.  Chapter 3 Ethics and governance One focus of the field of action ethics and governance is our global compliance management system. In addition, the integration of corporate due diligence obligations for human rights will be an essential component.  Chapter 4 Environment, energy and construction In accordance with a resolution passed by the Management Board in December 2021, Festo will neutralise the direct (scope 1) and indirect (scope 2) CO2 emissions associated with energy procurement in its global production network, headquarters and German sales company by the end of 2023. The other national Festo companies and Festo Didactic are to follow by the end of 2025. We are guided by the scientifically defined target of limiting global warming to 1.5°C. We will achieve this by procuring CO2-neutral green electricity as well as through measures to increase energy efficiency and expand our own renewable energy generation facilities at our sites, supplemented by the temporary participation in compensation projects. Data management and the expansion of the balance sheet framework will be a focus in 2022.  Chapter 5 As part of our ISO 14001-certified international environmental management system, we will also work to improve our environmental performance with regard to other environmental aspects such as water use and waste reduction. Resource and material efficiency Our measures focus on the entire value creation process. Projects to save materials in our products lead to a more careful use of resources in our procurement. Increasing the environmental compatibility of our packaging concept leads to lower environmental impact from the point of purchase to the customer. Increasing the efficiency of resources and materials is a priority at our plants. The continuous reduction in the number of defective goods and the consistent fluid management in metalworking are just a couple of examples.  Chapter 6 Climate protection and energy efficiency Delivering our products to our customers for their use on-site results in significantly higher CO2 emissions compared to our manufacturing processes. That is why we will continue to expand our Energy Saving Services which will help our customers to reduce their energy consumption-related CO2 footprint significantly in the next few years. This service is supplemented by advice on the energy-efficient planning and designing of our products.  Chapter 7 The development of energy-efficient and smart products and solutions is another important element in our efforts to help our customers increase their climate-friendly production. We also want to optimise our delivery processes with regard to the associated CO2 emissions. Measures include the procurement and manufacture of our products centred around the sales market and the reduction of air freight by transferring it to rail or ship transport. We will report on the results of the individual projects. Technical basic and further training and CER Along with climate protection, technical basic and further training is the most important pillar in our efforts to become sustainable.  Chapter 8 Examples of our activities are: • Learning solutions as the key to environmentally friendly innovations • Making high-quality learning content accessible to as many people as possible with the Festo LX digital learning portal • Getting young people excited about technical topics with Bionics4Education • Promoting learning through competitions with numerous activities Our activities relating to the areas of action in the reporting period of 2021 and their effects on procurement, our customers and society are explained in the following chapters with the help of corresponding GRI indicators. 14 15 Festo SE & Co. KG Sustainability Report 2021 Festo SE & Co. KG Sustainability Report 2021