Automation for a world in motion. Sustainability Report Compact 2025
Table of Contents Report Profile The Sustainability Report 2025 from the Festo Group is, as the issue from the previous year, published as a compact report. This concise report will provide you with an overview of the progress Festo has made on key sustainability issues. This format is the company’s response to the current transition in reporting. The Festo Group is currently preparing for the requirements of the Corporate Sustainability Reporting Directive (CSRD) and is already voluntarily following the first draft of the European Sustainability Reporting Standards (ESRS) as a framework for sustainability reporting. The company continues to closely monitor developments related to the EU Omnibus Regulation to identify regulatory changes at an early stage and implement them efficiently. To increase transparency and comparability, this compact report is divided into the ESRS topic areas: Environmental, Social and Governance (ESG). The focus is on the progress made in the reporting year 2025. The Festo Group, headquartered in Esslingen, Germany, is, as before, the subject of this report. Unless otherwise stated, the information in this report relates to the Group’s global activities. Reporting period and editorial deadline The document relates to the period from January 1, 2025, to December 31, 2025, and is available in German and English. All future-oriented statements are based on assumptions valid at the time of going to press. The editorial deadline was March 31, 2026. Contact person and project participants Numerous employees of the Festo Group contributed to this report. If you have any questions, please contact the local Festo Support in your country. Your enquiry will be forwarded to the responsible specialist departments within Festo. 10 Climate Protection and Resource Efficiency 12 Corporate Carbon Footprint 16 SBTi-Targets 18 Sustainability at Our Locations 22 Material Use in Our Products and the Product Carbon Footprint 24 Use of the Products Sold 26 Resources 28 People at Festo 30 Employee Development 32 Festo as an Employer 34 Diversity 36 Basic and Further Training 40 Occupational Safety and Comprehensive Health Promotion 44 Human Rights in the Supply Chain 48 Governance 50 Compliance 1 Environment 2 Social 3 Governance 2 Report Profile 4 Foreword 6 Festo at Glance 8 Sustainability Strategy
Dipl.-Ing. (FH) Thomas Böck, Chairman of the Management Board of Festo SE & Co. KG Dear Reader, 2025 was a special year for Festo as we celebrated our 100th anniversary. That is something we are proud of. Time and again, Festo has proven itself to be fit for the future, even in turbulent times. Thanks to our long-term commitment, responsible business practices, and the trusting cooperation of our customers, partners and employees, we have grown into an internationally recognized innovation partner for industry since our foundation in 1925. This role comes with great responsibility, because innovations from Festo help to shape the future. In 2025, our anniversary year, we continued to support our customers in reducing the greenhouse gas emissions of their production facilities with the help of our products and services, while at the same time increasing their competitiveness. We also contribute to this goal by providing training for people to use technologies to further boost climate and resource efficiency. And this innovation potential is not just used for our customers, but also for our own processes. The overarching goal is clearly defined: Net zero by 2050. In February 2025 we reached an important milestone: Our ambitious, science-based climate targets were officially validated by the Science Based Targets initiative (SBTi). In addition to environmental considerations, we attached great importance to social responsibility in 2025 as a family business. At Festo, everyone should have the same opportunities. We remain committed to issues such as diversity, the advancement of women, and flexible working hours. Occupational health and safety, respect for human rights in the supply chain and mental health are part of our understanding of sustainability, too, and are firmly embedded in our sustainability strategy. In 2025, we also continued to focus on a central guiding principle of the company. At Festo, we see ourselves as a community that takes responsibility for social issues. To consolidate this approach, in 2025 we introduced the option for all employees to use some working hours for volunteering projects. Several thousand employees took up the offer in the very first year. I was delighted to find out how many people were involved in campaigns to protect the environment or provide food for the needy, and how they used their expertise to set up lessons to teach young people technology. My heartfelt thanks go to our employees for their commitment! Dear Readers, I invite you to explore the following pages to find out how we practiced sustainability in 2025, and how we continued to work on further reducing our own environmental footprint as well as that of our customers. In the coming years, digitalization, artificial intelligence, biologization, and the circular economy will open up new opportunities for more sustainable automation technology. We are determined to play a key role in driving these developments forward. Wishing you an inspiring read. Dipl.-Ing. (FH) Thomas Böck Chairman of the Management Board Festo SE & Co. KG Festo SE & Co. KG Sustainability Report 2025 5
Total sales by region in percent 2023 2024 2025 Europe/Middle East 59 % 58 % 58 % Asia 23 % 23 % 23 % Americas 18 % 19 % 19 % Festo at a glance In the 2025 financial year, the Festo Group achieved sales revenues of 3.33 billion euros and employed around 20,600 people. The company is represented by sales offices and distribution partners in a total of 176 countries worldwide. Festo invested 9.5 percent of its sales revenue in research and development. The Festo Group is divided into the Automation and Didactic business divisions. Important industry segments include the automotive and tier-1 supplier industry, food processing and packaging, machine tools, intralogistics, the electronics industry, biotech, the pharmaceutical industry and cosmetics, the chemical industry and water technology as well as the increasingly important medical technology and laboratory automation (life science) and green hydrogen production. Festo also supports all automated process steps in the electromobility sector, from battery manufacturing to the production of electric vehicles and battery recycling. As a partner for industrial motion, Festo offers pneumatic and electric automation that is fully integrated and networked, including suitable software and AI solutions as well as the appropriate training concepts. We call this “Seamless Automation.” The focus is always on the most efficient and productive solution for motion tasks in industrial production. Our extensive expertise allows us to offer technology-neutral advice, thus opening the door to smart innovations and maximum CO2 savings. And training is just as important as technology. Sustainability and the climate-friendly transformation of production are becoming the most important tasks along the entire value chain. employees worldwide Companies Production sites: 14 global production centers Sales offices and distribution partners: in 176 countries 60 20,608 The Automation business division As an automation partner, it is our aspiration to enable the production of almost everything that we operate, move, and consume in our everyday lives. The Automation business division offers a wide range of solutions for factory and process automation. It comprises the development, manufacture, and sale of pneumatic and electric components, technical systems, and services. It also includes consulting expertise for automation tasks. Energy and resource efficiency along with the humanization of work are additional important competitive factors in all industry segments. The Didactic business division The activities of the Didactic division focus on technical basic and further training. As an international partner to training institutions, governments, government agencies, and businesses, we design and create Festo Didactic training centers and labs, as well as training systems and training programs addressing all aspects of automation technology worldwide. These systematically prepare people for working in dynamic and complex environments. Festo Didactic celebrated its 60th anniversary in 2025. The range of courses is continuously adapted to the current requirements of industry and business and includes topics such as digitalization, AI, and energy efficiency. Festo stands for clear values, the highest quality, and customer-oriented innovations. We make a contribution to sustainable environmental, economic and social development through industrial automation technology and technical training. As a family-owned company, we think and act responsibly and with a long-term perspective. in research and development services EUR 316 million EUR 3.33 billion total revenue in 2025 Festo SE & Co. KG Sustainability Report 2025 Festo SE & Co. KG Sustainability Report 2025 6 7
The CSRD allows us to align our sustainability strategy with a clear framework that enables us to measure our progress. This makes sustainability in industrial environments a driver of our company’s development. Marcus Stemler and his Corporate Sustainability division are responsible for sustainability management for the Festo Group. The focus is on both corporate responsibility and positioning Festo as a long-term strategic partner for customers. The division is responsible for strategic planning and reporting, it minimizes risks by coordinating sustainability compliance, and oversees the operational management systems worldwide. Marcus Stemler, Head of Corporate Sustainability at Festo As a family business focused on the long term, taking responsibility for current and future generations has been part of our identity from the very beginning. For us, sustainability includes environmental, social and corporate governance (ESG) and is a prerequisite for long-term economic success. 2025 was the start of a new strategic period for our corporate strategy. We have also set two specific sustainability targets for this strategy: First, by 2030 we want to reduce our Scope 3 emissions from the upstream value chain and the use of our products by 25 percent compared to 2022. This target has already been validated by the Science Based Targets initiative (SBTi) in 2025. Second, we want to further promote diversity within Festo and, in particular, increase the proportion of women in management positions. By integrating these specific sustainability goals into our corporate strategy, we want to make it clear both internally and externally that sustainability is an integral part of our corporate strategy. In addition to the corporate strategy, Festo has its own sustainability strategy. We fundamentally revised this sustainability strategy in 2025. The starting point was our CSRD-compliant materiality analysis, which we used to formulate five ESG strategy areas. We then defined specific targets for each strategic area, which were adopted at the end of 2025. The new sustainability strategy will be implemented company-wide from 2026 onward. Sustainability Strategy In 2025, Festo revised its sustainability strategy. Festo SE & Co. KG Sustainability Report 2025 Festo SE & Co. KG Sustainability Report 2025 8 9
Environment Climate Protection and Resource Efficiency Environmental and climate protection, as well as the efficient use of energy and resources, are central tasks of our time. These topics are a fundamental part of our corporate and sustainability strategies. Our focus is on reducing greenhouse gas (GHG) emissions, both for our customers and for ourselves. To achieve this goal, we have set ourselves clear climate targets, which were validated by the Science Based Targets initiative (SBTi) in 2025. The validation confirms that our goals are in line with climate research and shows in which areas we can make the greatest impact. Our Corporate Carbon Footprint – the GHG emissions across all scopes – decreased by 1.7 percent in 2025 compared to the previous year. By 2050, we want to further reduce our GHG emissions towards “net zero.” In doing so, we are consistently following our route towards SBTi-compliant reduction and focusing on our own measurable emission reductions. We deliberately refrain from voluntary compensation.
Festo SE & Co. KG Nachhaltigkeitsbericht 2022 52 3.7 Employee commuting Purchased electricity, steam, heating and cooling Vehicle fleet 3.14 Franchises 2) 3.13 Leased property, plant and equipment 2) 3.1 Purchased goods and services 3.2 Capital goods 3.3 Fuel- and energyrelated emissions 3.4 Transport and distribution 3.5 Waste 3.6 Business travel 3.8 Rented or leased property, plant and equipment Company facilities 3.15 Investments 2) 3.12 Handling of products sold at the end of the product lifecycle 3.11 Use of the products sold 3.10 Processing of the products sold ** 3.9 Transport and distribution Downstream activities Upstream activities Festo Scope 3 Scope 3 Scope 2 323,869 19,440 24,322 523 20,095 375 5,986 67,279 19,167 31,404 1) Scope 1 13,022,399 14,272 1) 3.9 is excluded 2) 3,10, 3.13, 3.14 and 3.15 = not relevant Corporate Carbon Footprint (CCF) Since 2022, Festo has been compiling a Corporate Carbon Footprint (CCF) as a greenhouse gas inventory for Scopes 1 to 3 according to the Greenhouse Gas (GHG) Protocol. The calculation is performed according to recognized methods and meets the requirements of the GHG Protocol. The CCF covers the majority of the greenhouse gas (GHG) emissions of the entire Festo Group, including all international sales companies. Our GHG emissions from 2025 and the two preceding years can be found below. Overall, our CCF across all scopes and categories decreased by 1.7 percent in the reporting year compared to the previous year. In the future, we expect to be able to effectively reduce our GHG emissions towards “net zero.” We intend to achieve by creating a global transition plan for our infrastructure, among other things. We are also already taking an internal CO2 price into account when making certain decisions and are currently developing a concept for a more comprehensive, systematic control system. The transition plan for GHG emissions is a key part of our sustainability strategy. In 2025, we began implementing the plans that had been prepared in previous years with the aim to reduce GHG for direct and indirect emissions (Scope 1 and 2). Greenhouse gas emissions 2025 (Scope 1, Scope 2 and Scope 3) in accordance with the GHG Protocol (in tons of CO2e). . The introduction of an energy management system according to ISO 50001 at our production and logistics sites played an important role in this implementation. For Scope 3 emissions, we are focusing our activities on the emissions that are generated through the use of the products sold (Scope 3.11). They account for more than 95 percent of our total GHG emissions. Furthermore, we will concentrate on other indirect emissions that are generation during the production of purchased goods and services (Scope 3.1), as well as procurement logistics and internal logistics (Scope 3.4). The SBTi has validated our climate targets, thus also confirming our approach. Below, we explain the reasons for the development of the key figures, as well as changes made to the calculation methods and any limitations. For Scope 1, we recorded a decrease of 8 percent to 24,322 tons of CO2e in 2025 (2024: 26,441 t). This is thanks to, among other things, lower emissions from the vehicle fleet. 1. Environment Festo SE & Co. KG Sustainability Report 2025 Festo SE & Co. KG Sustainability Report 2025 12 13
2023 2024 2025 Scope 1 1) 25,820 26,441 24,322 Scope 2, location-based n.a. n.a. 59,448 Scope 2, market-based 1) 8,087 442 2) 523 3.1 Purchased goods and services 352,401 340,420 323,869 3.2 Capital goods 19,879 20,660 31,404 3.3 Fuel- and energy-related emissions 23,343 25,692 19,167 3.4 Transport and distribution 83,243 2) 77,9531 2) 67,279 3.5 Waste 3) 382 387 375 3.6 Business travel 19,683 21,751 20,095 3.7 Employee commuting 18,982 19,201 19,440 3.8 Rented or leased property, plant and equipment 2) 5,454 4,905 5,986 3.11 Use of products sold 12,972,026 13,238,347 13,022,399 3.12 Handling of products sold at the end of the product lifecycle 13,097 13,536 14,272 Total 4) 13,542,397 13,788,340 13,549,131 Greenhouse gas emissions (Scope 1, Scope 2, and Scope 3) in accordance with the GHG Protocol (in t CO2e). 1) Time Period 10/2024 – 09/2025 2) Adjusted compared to 2024 due to a revised calculation approach. 3) Waste from headquarters and production locations is included. Waste from national subsidiaries (sales offices, etc.) is not included. 4) 3.9 = excluded, 3.10, 3.13, 3.14 und 3.15 not relevant Scope 2 emissions are reported using the market-based as well as the location-based method. The significant decline in recent years can be explained in the main by our decision to have all locations obtain certificates of origin for electricity from renewable energies. The remaining GHG emissions in Scope 2 are the result of purchasing district heating at several international sites. Within Scope 3, categories 3.1 (purchased goods and services) and 3.2 (capital goods) are partially calculated based on the associated costs using expenditure-related emission factors. Scopes 3.1 and 3.2 together account for 355,273 tonnes of CO2e and showed a slight downward trend (2024: 361,080 t). Fuel and energy-related emissions (Scope 3.3) decreased by approximately 25 percent to 19,167 tons of CO2e (2024: 25,692 t). This development is the result of lower emission factors compared to the previous year, especially the reduced emission factors of the International Energy Agency (IEA). Since 2024, global emissions data for services directly requested by Festo in procurement, intercompany and distribution logistics in the area of transport with logistics service providers (Scope 3.4) have been consolidated on a service provider platform. The data uploaded by the logistics partners is based on a uniformly defined CO2e standard calculation method and data structure. Where this is not the case, the CO2e data is calculated directly. The emissions generated by the procurement logistics requested by our suppliers, on the other hand, are determined using our own model, which we further developed in 2025. As a result, the value for 2024 was retrospectively corrected upwards by 953 tons of CO2e. The combined Scope 3.4 emissions amounted to 67,279 tons of CO2e in the reporting year (2024: 77,953 t). The decrease of around 14 percent was due to a reduced air freight volume and the overall reduced transport volume brought about by the economic situation. GHG emissions generated by business travel (Scope 3.6) decreased by about 8 percent to 20,095 tons of CO2e due to travel restrictions (2024: 21,751 t). The vast majority of GHG emissions are still generated during the use phase of our products (Scope 3.11). This figure fell by around 2 percent in the reporting year compared to the previous year. We noticed opposite effects: Lower average emission factors reduced emission levels, which partially offset unit growth in countries with generally higher emission factors. Measures for the use phase of our products We are implementing practical measures that are designed to reduce energy and resource consumption in automation. We are continuously improving the sizing of pneumatics, and adapting tubing, cylinders and valves to the actual requirements in order to minimize compressed air losses and to reduce compressor requirements and operating costs. In addition, Festo offers precise, easy-to-control electric automation. It is the application that determines the choice of the most efficient drive technology. With “Controlled Pneumatics,” intelligent controllers adjust the compressed air consumption in line with the situation and reduce wear. Air-saving circuits in vacuum- based applications reduce the requirements for air using specific valve sequences and air storage strategies. Another important contributing factor is the use of electricity from renewable energy sources by our customers. Customers who can demonstrate that they only use electricity from renewable sources are excluded from the calculation of our GHG balance. Reforming global electricity procurement and the compensation approach Festo obtains certificates of origin that have been issued for electricity from wind and hydropower plants in the different electricity grid networks. By doing this, it is possible to take the environmental characteristics of the electricity generated (free of emissions) into consideration without the electricity physically coming from the same power plants. The certificates of origin meet the requirements of the European green electricity label EKOenergy or those of the American green electricity label green-E. Since 2025, we have stopped acquiring voluntary compensation certificates and instead invest in real emission reductions in line with the SBTi-Targets 1. Environment Festo SE & Co. KG Sustainability Report 2025 Festo SE & Co. KG Sustainability Report 2025 14 15
For Festo, climate protection is not a short-term project, but part of our corporate responsibility and our aspiration to act by focusing on the long term and the future. We rely on scientific principles to reduce our greenhouse gas (GHG) emissions. Festo joined the “Science Based Targets initiative” (SBTi) in 2024. This means we have committed to reducing our GHG emissions in Scopes 1, 2 and 3 in line with the Paris Agreement. The ambitious climate targets of Festo were scientifically validated by the SBTi in 2025. We regularly review our progress towards these goals, both internally and externally, as part of the SBTi. SBTi-Targets Festo helps its customers achieve their CO2e targets through its Energy Saving Services — the Compressed Air Energy Efficiency Audit and the Pneumatics Sustainability Check. Science-based climate protection targets are the key component of our climate protection strategy in order to decisively meet the challenges posed by climate change. The SBTi target path forms the basis for practical measures for systematically preventing and reducing our greenhouse gas emissions. Markus Gaukel, Corporate Sustainability Development at Festo Short-term goals until 2030 – Reducing absolute GHG emissions in Scope 1 and 2 by 64.3 percent compared to the base year of 2022 – Reducing absolute GHG emissions in Scope 3 by 25 percent compared to the base year of 2022 Long-term goal until 2040 – Reducing absolute GHG emissions in Scope 1 and 2 by 90 percent compared to the base year of 2022 Long-term goal until 2050 – Reducing absolute GHG emissions in Scope 3 by 90 percent compared to the base year of 2022 “Net Zero” target by 2050 – Net-zero GHG emissions along the entire value chain 1. Environment Festo SE & Co. KG Sustainability Report 2025 Festo SE & Co. KG Sustainability Report 2025 16 17
600 400 200 0 402 0 2023 2024 2025 1) 0 Final energy (electricity, district heating, MWh) Energy consumption in relation to sales (MWh/million €) Indirect energy-related greenhouse gas emissions (Scope 2, t CO2e) Greenhouse gas emissions (Scope 1 und Scope 2), in relation to sales (t CO2e/million €) Primary energy (heating oil, diesel, gas, MWh) 2023 2024 2025 1) 80 60 40 20 0 69,852 77,206 62,320 2023 2024 2025 1) 13,278 15 10 5 0 13,048 13,270 Direct greenhouse gas emissions (Scope 1, t CO2e) 160 120 80 40 0 147,571 2023 2024 2025 1,2) 126,202 130,123 2023 2024 2025 1) 60 40 20 0 62.3 53.7 60.1 2023 2024 2025 1,3) 15 5 0 10 3.6 3.8 4.1 1 ) Time Period 10/2024 – 09/2025 2 ) From 2025, including self-generated electricity from PV from the sites of the production and logistics network. 3 ) Due to the emissions caused by district heating consumption that are no longer compensated. Sustainability at Our Locations Energy and resource management plays a central role at all our locations worldwide. We document and report our methods, measures and key figures every year. Since October 2025 we have been using an adapted data collection method in preparation for the publication obligation under the Corporate Sustainability Reporting Directive (CSRD). The key figures presented below therefore apply to the period from October 2024 to September 2025. Unless otherwise stated, they refer to our production and logistics network, including corporate head office in Esslingen (Festo certification network). Fossil fuel consumption and Scope 1 emissions Energy consumption in the form of natural gas, heating oil, diesel and gasoline amounted to 62,320 megawatt hours in 2025 (2024: 77,206 MWh). According to the method adapted for 2025, greenhouse gas (GHG) emissions in Scope 1 amounted to 13,278 tonnes of CO2e during the period under review. Electricity and district heating consumption, as well as Scope 2 emissions We source our electricity exclusively from renewable sources. During the calculation period, the electricity demand covered by the supply networks amounted to 132,815 MWh. This amount was about 2 percent higher than in the previous year (2024: 130,123 MWh). This increase is the result of including another location in the certification network and the expansion of existing locations. Two locations are heated using with district heating, In 2025, this resulted in GHG emissions of 402 tons of CO2e. Further information on electricity procurement can also be found in the chapter Corporate Carbon Footprint. Expansion of renewable on-site power generation Festo has been investing in generating its own electricity using photovoltaic (PV) systems since 2004. We commissioned new PV systems at three international locations in 2025. The total installed PV capacity of Festo was thus increased by 18 percent compared to the previous year; it totaled 18.4 megawatt peak in the calculation period (2024: 15.6 MWp). In 2025, all our PV systems globally generated a total of 20,300 megawatt hours of electricity. In-house generation for the production and logistics network as well as corporate head office amounted to 14,756 megawatt hours in 2025. Total energy demand and sales-related GHG emissions The total energy demand related to sales, including renewable in-house generated electricity was 62.3 megawatt hours per million euros (2024: 60.1 MWh/ million EUR), an increase of 3.7 percent compared to the previous year. Sales-related GHG emissions for Scopes 1 and 2 increased by 7.4 percent year-on-year to 4.1 tons of CO2e per million euros in revenue (2024: 3.8 t CO2e/million EUR in revenue). This can be attributed, among other things, to the decision not to issue voluntary compensation certificates. 1. Environment Festo SE & Co. KG Sustainability Report 2025 Festo SE & Co. KG Sustainability Report 2025 18 19
According to disposal procedure 2023 2024 2025 1) Nonhazardous recycling 10,003 t 9,879 t 9,751 t Nonhazardous disposal 522 t 611 t 596 t Hazardous recycling 1,666 t 1,890 t 1,702 t Hazardous disposal 352 t 353 t 295 t Total 12,543 t 12,733 t 12,344 t Water discharge by quality and destination 2023 2024 2025 1 ) Production wastewater 73,737 m3 80,336 m3 82,185 m3 Sanitary wastewater 82,846 m3 90,243 m3 100,386 m3 Cooling generation, including air conditioning 19,277 m3 20,011 m3 21,480 m3 Other 18,182 m3 25,912 m3 27,650 m3 Total 194,042 m3 216,502 m3 231,701 m3 Water withdrawal by source: public water supply and groundwater withdrawal Groundwater 5,971 m3 6,916 m3 15,233 m3 Public water withdrawal 271,824 m3 296,663 m3 300,397 m3 Total 277,795 m3 303,579 m3 315,630 m3 Nonhazardous and hazardous waste Water discharge and water withdrawal Controlling and managing energy All our sites, with the exception of three smaller factories, and our corporate head office are equipped with energy monitoring systems. They allow us to monitor energy consumption, identify the causes of excessive consumption, and to quickly identify corrective measures. Since 2024, we have been implementing an energy management system according to ISO 50001 at all production and logistics sites. Our German factories have been ISO 50001 certified since 2025. The international rollout of the energy management processes proceeded as planned in the reporting year. Environmental compliance Festo did not commit any serious violations of environmental law during the reporting period. However, we cannot rule out the possibility that individual fines were imposed for minor violations of regulations (e.g., for the transport of dangerous goods). Waste KPIs and transport of waste We aim to avoid creating waste or we recycle it at all sites. Between October 2024 and September 2025 the amount of waste decreased by 3.1 percent to 12,344 compared to the previous year (2024: 12,733 t). Approximately 84 percent of the total amount was non-hazardous waste, and around 16 percent was hazardous waste. The recycling/recovery rate for all waste categories is nearly 93 percent. Optimized packaging concept We also optimized our packaging concept in 2025 so that it consumes fewer resources. For example, we replaced disposable pallets/cardboard containers with reusable transport boxes. In delivery logistics, Festo uses stretch film with a lower material thickness and a recycled content of 35 percent (post-consumer recycled material made from processed household plastic waste). 1) Time Period 10/2024 – 09/2025 We are continuing to work on increasing the proportion of packaging made from renewable materials such as wood, paper, cardboard and corrugated cardboard. In addition, Festo intends to use only packaging with good material properties and that can be recycled to a high degree. During 2025, the proportion of packaging made from renewable materials in our largest distribution warehouse was over 97 percent of the weight of all packaging materials. It is also our goal to limit the amount of packaging used for our shipping volume. For Germany, this figure was slightly more than 20 percent during the period under review. And by providing user documents online instead of in print, we can save over 170 tons of paper annually. Water consumption and wastewater Festo relies on effective water management to ensure its operations are as resource-efficient as possible. Between October 2024 and September 2025, the total water consumption at Festo was 315,630 cubic meters — slightly higher than in 2024 (303,579 m3). Groundwater extraction has increased, mainly due to the opening of a new factory in India, which covers a large part of its water needs from groundwater. The largest shares of total water consumption were for production (30.0 %) and sanitary facilities (33.4 %). Refrigeration using evaporative cooling systems accounted for 19.4 percent, the remainder was attributable to processes such as irrigation and canteen operations. Being sustainable together: suggestions from employees Festo directly involves its employees in the further development of the company. Every year they can submit proposals for the internal “Continuous Improvement World Cup,” for example, on sustainability issues that are relevant for their locations. An internal, global panel of judges consisting of factory managers and experts determines the best ideas. So far, the sustainability- related initiatives have mainly focused on suggestions for improving energy and resource efficiency. These have ranged from reusable garbage bags and reducing the use of packaging film to recycling aluminum ash from our die-casting furnaces. 1) Time Period 10/2024 – 09/2025 1. Environment Festo SE & Co. KG Sustainability Report 2025 Festo SE & Co. KG Sustainability Report 2025 20 21
Material use in Our Products and the Product Carbon Footprint (PCF) Further information can be found at: www.festo.com/material-compliance The reprocessing of aluminium briquettes offers great savings potential. Material use and the Product Carbon Footprint The Product Carbon Footprint (PCF) indicates how many greenhouse gas (GHG) emissions are produced throughout the entire life cycle of a product and where effective savings potential lies. PCF: From cradle to grate The PCF accounts for all GHG emissions generated during the manufacturing phase for materials, energy and transport from cradle to grate. We assess the use phase separately, as the emissions generated during this phase can vary depending on the product’s area of application. The PCF calculation method is currently being further developed. By using a more precise calculation method to represent the PCF in detail, down to the level of the part number, we want to provide our customers with greater data quality. Our goal is to gather this data for our entire product portfolio. Festo CO2e: A practical tool for our customers We initially developed Festo CO2e as a temporary solution with a simplified calculation method. This figure represents all the GHG emissions that are generated during the production process of a product. With the Festo CO2e, our customers can estimate what the share of Festo components in the CO2e footprint of their machines is. This practical tool can therefore help customers calculate their Corporate Carbon Footprint (CCF). Sustainable product development Developing products right from the start with the lowest possible emissions is also part of our corporate strategy. Based on internal guidelines, we adhere to the following principles: – Product designs that save CO2e – Designs that save materials and selecting materials to save CO2e (e.g., recycled materials) – Maximum service life thanks to ease of repair and maintenance – Integrating CO2e reduction targets in the product development process – Avoiding critical and environmentally harmful ingredients 1. Environment Festo SE & Co. KG Sustainability Report 2025 Festo SE & Co. KG Sustainability Report 2025 22 23
Use of the Products Sold At Festo Experience Centres around the world, customers and Festo experts are breaking new ground by developing joint innovative solutions using the latest technologies. When it comes to climate protection, we at Festo focus in particular on reducing our Corporate Carbon Footprint (CCF). The largest share of the CCF is attributable to greenhouse gas (GHG) emissions generated by customers when using our products. In 2025, we continued to work on making Festo products as energy-efficiently to operate as possible in customer applications, thus keeping their GHG emissions as low as possible. Focus: GHG emissions during the use phase In 2024, we primarily analyzed and evaluated our measures to reduce the Product Carbon Footprint (PCF) of our products in the manufacturing and use phases. Based on the results, in 2025 the Science Based Targets initiative (SBTi) validated our target to reduce Scope 3 emissions. The target also includes emissions generated during the use phase. Information about the SBTi validation and our climate targets can be found in the chapter “Sustainability Strategy” and in the section SBTi-Targets. Energy-efficient automation We support our customers in designing their systems to be economical and energy efficient. To achieve this, we offer various technologies and consulting services. A key factor for energy efficiency is the choice of drive technology. Depending on the application, pneumatic, electric or hybrid solutions may be best. Correctly sized components and pressure settings play a major role, especially in pneumatic systems. In addition, modern control technologies can help to further reduce energy consumption. We also provide our customers with digital tools that help them calculate and visualize energy savings and GHG emissions. That enables them to compare costs and environmental impacts across the entire product life cycle. Our support includes: – Information sources in the Festo Experience Centers on energy-efficient automation – Training courses and workshops from Festo Didactic to raise awareness of sustainable technologies – Comparative calculations of the total cost of owner- ship and GHG emissions for pneumatic and electric drive systems – PCFs for the relevant customer application on request – Energy efficiency audits to analyze and optimize pro- duction facilities with Festo Energy Saving Services Excerpt of our products for reducing GHG The products we offer fall into three categories depending on how their design and functionality help reduce GHG emissions: – More sustainable in production: Cylinders like ADN-S, DSNU-S and DGRC save up to 60 percent on materials and CO2e in production. – More sustainable in operation: Intelligent technolo- gies such as the energy efficiency module MSE6 and the vacuum generator OVEM reduce the compressed air consumption by up to 90 percent compared to previous technologies and also improve cycle times. The new solution Smart Switching Lite saves energy. Thanks to a novel valve for our valve manifold VTUX, the supply air is already switched off during the movement. This results in air savings of 60 percent while simultaneously improving cycle times by 40 percent. – More sustainable at the end of the use phase: Resource-efficient build methods as well as repair and recycling concepts allow products to be reused and disposed of correctly. Optimizing compressed air efficiency Our Festo Energy Saving Services help companies improve their compressed air usage. Certified experts conduct compressed air energy efficiency audits according to DIN EN ISO 11011 by analyzing compressed air generation, the pipeline network, and the end consumers. Potential savings are documented and prioritized, enabling companies to implement specific measures. Energy Saving Services Portal Festo offers customers a web-based portal to support the efficient implementation of energy-saving measures. Customers can digitally manage their audit results and savings potential on this platform, as well as document leakages and optimization measures, calculate CO2e savings and monitor the status of their improvements in real time. Companies that wish to carry out their own inspections can purchase a license for the portal and manage their own audits. In addition, we offer workshops in which we show customers how they can identify and utilize energy-saving potential in their own systems. You can find more information about our sustainable solutions at: www.festo.com/energyefficiency 1. Environment Festo SE & Co. KG Sustainability Report 2025 Festo SE & Co. KG Sustainability Report 2025 24 25
2023 2024 2025 23 % Asia 7 % Americas 70 % Europe 72 % local 28 % non-local Regional distribution of the direct and indirect purchasing volume of the Festo Group. 2025 €1.519 bn 2025 €1.519 bn 23 % Asia 24 % Asia 8 % Americas 8 % Americas 69 % Europe 68 % Europe 72 % local 73 % local 28 % non-local 27 % non-local 2023 €1.558 bn 2023 €1.558 bn 2024 €1.536 bn 2024 €1.536 bn The number of local suppliers fell slightly in 2025, compared to the previous year. We continued to pursue the “local for local” strategy in 2025 in order to reduce, among other things, delivery times and improve flexibility throughout the supply chain and transportation routes. The objective is to continue to increase procurement of goods in those countries and regions where production also takes place. The graphs below show the regional distribution of the direct and indirect purchasing volume of the Festo Group as well as the proportion of local and non-local suppliers. Resources Regional distribution of the purchasing volume The direct and indirect purchasing volume (production materials and non-production materials) of Festo continued to decline slightly from EUR 1.536 billion (2024) to EUR 1.519 billion (2025). This is partly due to the economic situation. The non-production materials apply to all production sites (Festo Global Production Centers, GPCs for short) and the sales companies. The production materials are relevant for all production sites. Festo is constantly expanding its global supplier network, consisting of both local and non-local suppliers. By “local” we mean procurement within the region of a particular Festo national company. 45.7 % aluminium 25.0 % plastics 11.7 % stainless steel 14.6 % steel 1.5 % zinc 1.5 % brass Distribution of the purchase volume by material. 50.1 % aluminium 20.1 % plastics 12.0 % stainless steel 13.2 % steel 1.7 % zinc 2.9 % brass 49.7 % aluminium 23.7 % plastics 12.0 % stainless steel 10.7 % steel 1.7 % zinc 2.2 % brass At Festo, regional procurement and processes aligned with the circular economy form the core of our resource management. The goal is to use materials as efficiently as possible and to maintain stable, future-proof supply chains. Circular economy-oriented procurement For our company and our impact on the environment and people, it is crucial where we source our manufacturing materials from and with what specific material properties. In 2025, Festo purchased a total of 26,672 tons of raw materials. Plastics, aluminum and (stainless) steel are some of the most important materials in our production. Since resources are finite and their extraction pollutes the environment, it is important to develop comprehensive concepts to reduce material consumption. That is why we rely on, for example, methods based on the circular economy. One main focal point is aluminum. Because bauxite, the raw material for aluminum production, is a critical raw material that has significant environmental impacts. One approach is to increasingly replace primary aluminum with secondary aluminum. Festo achieved a secondary aluminum content of 78.1 percent in 2025. In Hungary, we go one step further. There, aluminum waste is melted down directly to produce the raw materials needed, thus bypassing various intermediate steps. We are currently testing the feasibility of using this technology at German sites. 1. Environment Festo SE & Co. KG Sustainability Report 2025 Festo SE & Co. KG Sustainability Report 2025 26 27
Social People at Festo Festo is the work of many hands. We owe our international success to the dedication and innovative strength of the people who work for us. The working environment we offer is characterized by positive, safe, and non-discriminatory collaboration based on trust and diversity. A core part of our corporate culture is lifelong learning, focused in particular on artificial intelligence and digital technologies, to ensure that employees are well qualified for future tasks. We also offer employees flexible working hours to help them achieve a good work-life balance. The standards we set for occupational health and safety are high, with an emphasis on early prevention. Last but not least, we are committed to protecting human rights and thus also oblige our business partners to comply with social and environmental standards.
Employees and management bodies by age and gender 2023 2024 2025 2023 2024 2025 Total number of employees 20,068 20,092 20,032 Total management bodies 1,171 1,172 1,170 Employees by gender Management bodies by gender Male 70 % 70 % 70 % Male 89 % 88 % 88 % Female 30 % 30 % 30 % Female 11 % 12 % 12 % Employees by age Governance bodies by age < 29 years 13 % 13 % 13 % < 29 years 0 % 0 % 0 % 30 – 49 years 57 % 57 % 58 % 30 – 49 years 48 % 47 % 47 % > 50 years 29 % 29 % 30 % > 50 years 52 % 53 % 53 % Employment relationships by gender and region 2023 2024 2025 2023 2024 2025 Permanent and temporary employees 20,068 20,092 20,032 Permanent by gender Temporary by gender Male 65 % 65 % 66 % Male 5 % 5 % 4 % Female 27 % 28 % 28 % Female 3 % 2 % 2 % Permanent by region Temporary by region Total 18,404 18,696 18,749 Total 1,658 1,396 1,283 Africa 99 106 100 Africa 0 0 0 Americas 2,344 2,356 2,309 Americas 6 8 10 Asia 2,627 2,865 3,037 Asia 1,116 999 914 Australia 73 74 74 Australia 5 2 1 Germany 7,768 7,694 7,678 Germany 287 249 214 Europe, excluding Germany 5,493 5,601 5,551 Europe, excluding Germany 244 138 144 New employees and staff turnover 2023 2024 2025 2023 2024 2025 Total hires 1,934 1,834 1,469 Total departures 2,342 1,950 1,608 New entries by gender Departures by gender Male 64 % 68 % 69 % Male 66 % 67 % 68 % Female 36 % 32 % 30 % Female 34 % 33 % 32 % Other 0 % 0 % 1 % Other 0 % 0 % 0 % New entries by age Departures by age < 29 years 44 % 46 % 44 % < 29 years 27 % 31 % 27 % 30 – 49 years 49 % 46 % 49 % 30 – 49 years 46 % 45 % 44 % > 50 years 7 % 8 % 7 % > 50 years 26 % 24 % 28 % New entries by region Departures by region Africa 1 % 1 % 0 % Africa 1 % 0 % 0 % Americas 15 % 15 % 14 % Americas 14 % 14 % 15 % Asia 25 % 22 % 22 % Asia 15 % 17 % 19 % Australia 1 % 1 % 0 % Australia 1 % 1 % 0 % Germany 19 % 22 % 22 % Germany 28 % 30 % 26 % Europe, excluding Germany 39 % 38 % 41 % Europe, excluding Germany 41 % 37 % 40 % Employees by region 2023 2024 2025 Total number of employees 20,545 20,596 20,608 Africa 104 114 108 Americas 2,376 2,386 2,332 Asia 3,762 3,900 3,985 Australia 78 76 75 Europe, excluding Germany 5,878 5,891 5,920 Germany 8,347 8,229 8,188 The percentages are rounding values. Employee Development Having dedicated, qualified, and adaptable employees is one of the prerequisites for Festo to ensure its business success. That is why we strive to attract, retain, and develop the best employees. In 2025, the Festo Group had a total of 20,608 employees worldwide. This figure includes the total workforce including trainees, interns, students, and temporary employees. Permanent and temporary employment relationships The total number of permanent and temporary employment relationships can be found in the table below. In addition, there are activities that were carried out by trainees, interns, and students that do not fall under either of these two categories. The number of these people has been rising since 2024 and totaled 576 in 2025. New employees and staff turnover Both the total number of new employees and the staff turnover by gender, age group, and region are shown below. Staff turnover has been falling since 2023. 2. Social Festo SE & Co. KG Sustainability Report 2025 Festo SE & Co. KG Sustainability Report 2025 30 31
Festo employees with a bionics learning kit at the “Aldeas Infantiles SOS México” charity’s Technology Day in Mexico City. The people at Festo have been shaping technological progress for over 100 years. We not only want to be an attractive employer for our employees, but also a reliable partner for their professional and personal development. That is why we have created an environment in which diversity is practiced and joint action is promoted. Eva Maria Nagel, Head of HR Operations and Systems at Festo Festo as an employer Our aim is to attract new talent and offer existing employees an attractive working environment. Our corporate culture at Festo is central to this goal: it lays the foundation for respectful cooperation, lifelong learning, and growth for all within the company. We are continuously developing this culture using specific measures and programs. Mobile working, a modern digital infrastructure, and innovative collaborative space concepts give our employees the opportunity to organize their work individually and independently. We take into account the needs in different phases of life and offer flexible working hours such as part-time work, parental leave or carer’s leave, which in some countries goes beyond legal requirements. This is how we support the work/life balance and promote a future-oriented and modern way of working. Remuneration and benefits In addition to fair overall remuneration, Festo offers attractive benefits to all employees in Germany, whether they are in full-time or part-time employment. The offer ranges from the company pension scheme, company health promotion and various training courses to after-work activities for everyone. The benefits are an expression of our appreciation and are a key part of our corporate culture. We have grouped them in the Festo Benefits Framework under the motto “Be.Well Do.Well.” This framework is intended to provide greater transparency and further boost our attractiveness as an employer. You can find an overview of our offer on page 33 in the Sustainability Report 2024. Corporate Citizenship Taking responsibility for each other, for the environment, for future generations is how community has been interpreted at Festo for many years. The Corporate Citizenship Program demonstrates our commitment worldwide. On the occasion of the 100th anniversary of Festo in 2025, we supported 100 global organizations with donations for projects in the areas of education, environmental and climate protection, and support in difficult life situations. We also give all employees worldwide the opportunity to get involved in social or environmental projects. Festo therefore gives employees time off during working hours and promotes personal responsibility, personal commit- ment and team building. In 2025, several thousand employees worldwide were involved in projects relating to the United Nations Sustainable Development Goals, for example, in waste collection campaigns, distributing food, or giving lessons in technology to young people. Festo as an Employer 2. Social Festo SE & Co. KG Sustainability Report 2025 Festo SE & Co. KG Sustainability Report 2025 32 33
Diversity Diversity as a success factor At Festo, people from 98 nations work together, with different backgrounds and perspectives. We see this diversity as an important success factor for innovation. It helps us overcome barriers, gain new perspectives and develop innovative solutions together. When collabo- rating in transnational teams, we value different working and communication styles, and we create an inclusive working environment that promotes employee satisfaction and attracts and retains talent worldwide. To underline our commitment to diversity, equal opportunities and inclusion, we included measures to promote “Diversity, Equity & Inclusion” (DE&I) in our corporate strategy at the beginning of 2025. Countering discrimination Festo is committed to a non-discriminatory environment. All employees should be given fair opportunities, regardless of age, ethnic origin and nationality, gender and on a campaign day. On the International Day of People with Disabilities, the representative body for severely disabled employees also organized an obstacle course at two Esslingen sites to further raise awareness of inclusion among the workforce and create a greater understanding of disabilities. Women at Festo We continued our “Female Empowerment Program” in 2025. It supports female managers and women with great potential with a structured development process, coaching, and an alumni network. The regional mentoring program launched in 2024 also continued in the reporting year. The initiative was launched by four companies in the vicinity of our headquarters in Esslingen and is aimed at women in middle management positions. In 2025, Festo also joined a nationwide, cross-company mentoring program that has the same goal. In addition to these programs, Festo is working on further improving the general conditions for female employees, for example, with flexible working time models and additional mento- ring opportunities. Creating awareness Knowledge is an important catalyst for unlocking the potential of diversity. We have carried out the following activities, among others: – In various workshops for managers and all employees, we discussed how gender-cultural differences – i.e., those resulting from gender roles and cultural expectations – shape the way we work together. – To mark Diversity Day, we published a video in Germany that provides a clear explanation of DE&I. – As part of our Global Learning Week, we organized a panel discussion to highlight the benefits of diverse perspectives and interviewed managers who lead particularly diverse teams. gender identity, physical and mental abilities, religion, beliefs and worldview, sexual orientation and social background. We encourage our employees to address and report discrimination at an early stage. In Germany, for example, they have access to a dedicated complaints office, while internationally employees can use our whistleblower portal. In 2025, two violations of the General Equal Treatment Act (AGG) were reported, investigated and concluded in Germany. Promoting inclusion For us, the inclusion of people with severe disabilities and people treated as such is not only a legal obligation, but also a social responsibility. We want to promote physical and digital accessibility and provide an environment that takes individual needs into account. This claim is reflected in the Code of Conduct of the Festo Group. In the reporting year, we conducted a survey among employees with disabilities and published key messages Benefiting from diversity DE&I is an important part of being an attractive employer for Festo. In the reporting year, we continued to develop our HR recruitment processes, talent management and employer branding in order to make diversity even more visible and further promote equal opportunities for individual growth. A new “Female Landing Page” highlights our actions aimed at promoting women; one example being a scholarship for women studying for a Master’s degree in engineering. We have also introduced the “Moment of Diversity” as part of our Talent Management program, with talent conferences during which nominated talents are discussed and confirmed. The “Moment of Diversity” is intended to help prevent people from being unconsciously excluded from talent nominations (due to aspects such as language, pregnancy, age, gender or part-time work), thus making it possible for them to be nominated subsequently. We have increasingly advertised part-time positions during the recruitment process in order to appeal to more people. In addition, a survey of our national companies has given us a comprehensive insight into global diversity activities. We now want to share best practices internationally. The first meeting of the Festo global diversity community took place at the end of 2025. Employee networks: promoting exchange There are various networks available for employees to exchange ideas. These include the LGBTQIA+ network (Lesbian, Gay, Bisexual, Transsexual/Transgender, Queer, Intersexual and Asexual) and Proud@Festo, where LGBTQIA+ people and employees can network and support the visibility of diverse people and lifestyles, and advocate a tolerant coexistence. There is also a network of women for women, Women@Festo. One of its aims is to promote professional and interdisciplinary exchange and allow potential talents to be more visible. You can find more information on DE&I at Festo under Diversity on our website. The “Female Empowerment Program” supports women at Festo with their career planning. 2. Social Festo SE & Co. KG Sustainability Report 2025 Festo SE & Co. KG Sustainability Report 2025 34 35
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