1 2 4 3 Risk analysis Reporting Complaint mechanism Declaration of principles The chart shows the systematic approach to respecting human rights and related environmental rights. Measures and effectiveness monitoring 1. Declaration of principles and voluntary commitment to ensure the protection of human rights and the asso- ciated environmental rights in our own business operations and at our direct and indirect suppliers and to prevent legal violations. The declaration contains, among other things, our commitment to the United Nations Universal Declaration of Human Rights. It was updated in 2025. 2. Annual risk analysis of human rights and environmental aspects in our value chain. Based on our process in 2025, we identified a total of 193 suppliers in countries with high and medium risk for potential violations of human rights, and assessed them accordingly. 3. Complaints mechanism based on a whistleblower portal for anonymous reports as well as the Sustainability area and the Compliance Office for directly communicated reports. Of a total of 84 reports received in 2025, none was assigned to the category of human rights. 4. Annual reporting on risk analysis and the resultant preventive measures. This report is addressed to the Management Board and the relevant authorities. In this Sustainability Report, we also provide information on our activities to apply the German Supply Chain Due Diligence Act (LkSG). Risk-based management of supply chains Festo takes a risk-based approach to managing its global supply chains in order to minimize human rights, labor and environmental risks and to meet the requirements of the LkSG. In 2025, around 2,700 suppliers were analyzed; approximately 800 had to complete an LkSG- oriented self-disclosure form. By evaluating this self- disclosure form, a well-founded risk and compliance assessment can be made for around 98 percent of the purchasing volume. Due diligence processes: methods and measures – The following criteria and activities form the core of our risk-based due diligence processes. Some of the aspects are examined in greater detail in the section below. Annual risk analysis (country-, sector- and supplier-related risks) and risk classification to prioritize testing and prevention measures. – Standardized self-disclosure forms record protected legal positions, social and environmental practices, and country-specific risks. – Contractual obligation of all business partners to comply with the Festo Code of Conduct for Business Partners. – Multidimensional catalog of criteria for the continuous qualification and evaluation of suppliers. – Risk-based sustainability audits (remote and on-site) to review, provide feedback, and adopt measures. – Extensive training for procurement staff and suppliers on the LkSG and environmentally relevant protected resources; the training formats are also used for remedial measures, if necessary. We are currently revising our risk analysis and changing the method to a new, tool-based approach. The changeover is planned for 2026. The new method is intended to make the risk assessment data-driven, more efficient, and more transparent. Responsibilities, escalation model means, and reporting obligations are embedded in the compliance and purchasing organization. If we identify violations, we gradually introduce corrective measures and follow up on whether they are effective. Our systematic and global approach to respecting human rights Our global approach to due diligence with regard to human rights is based on operational risk management. The person responsible for this topic at the Fest Group is the Human Rights Officer. This officer also chairs our Human Rights Committee, which meets quarterly and consists of experts from the areas of Strategic Purchasing, Corporate Compliance, Internal Control Systems and Risk Management, Global Health and Safety, Human Resources, and Sustainability. The committee monitors the application and continuous improvement of our approach, which consists of four basic points: Further details can be found on our company website: www.festo.com/valuechainworkers Human Rights in the Supply Chain 2. Social Festo SE & Co. KG Sustainability Report 2025 Festo SE & Co. KG Sustainability Report 2025 44 45
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