Ethics und Governance

With our Policy Statement (PDF), we have publicly committed ourselves to protecting human rights and related environmental rights, as well as preventing legal violations, both in our own business operations and toward our business partners (direct and indirect suppliers). This framework sets out the systematic approach to how we as a company fulfill our corporate responsibility.

Corporate due diligence is also set out in our Code of Conduct (PDF) and in the Code of Conduct for Business Partners (PDF). All suppliers must sign to confirm compliance with our Code of Conduct for Business Partners.

More information can be found on the Compliance page. You can download our codes of conduct further down this page.

An annual risk analysis is carried out both for the company's own business area and for direct suppliers in order to identify, assess and prioritize human rights and environmental risks. We will analyze internal and external data sources to identify potential risks for our business and our direct suppliers.

We will take into account both general risks, such as country and commodity group risks in purchasing, as well as specific risks that correspond to our business purpose. To assess the country risk, we use sources such as the ITUC Global Labor Rights Index and the Countries' Risk Classification of the Business Social Compliance Initiative (BSCI).

We also use internal information from on-site checks and other control measures to assess the risks related to human rights. The risks are prioritized according to their severity and the degree of the company's responsibility.

As part of our systematic approach, social and environmental risks are analyzed along the entire value chain in order to incorporate them appropriately into risk assessment and business decisions.

The main human rights issues in our own business area include:

• Fair employment and working conditions
• Health and safety in the workplace
• Fair remuneration
• Discrimination
• Freedom of association and assembly
  

The potential human rights risk areas in the supply chain are:

• Health and safety in the workplace
• Discrimination
• Wages and remuneration
• Freedom of association and assembly

In addition, systematic checks are carried out as part of export controls, including embargo, sanctions list and goods list checks as well as critical end-use checks.

Conducting business ethically and in compliance with the law and regulations at all our locations around the world is extremely important to us. That is why we have established a comprehensive governance structure that encompasses the areas of corporate risk management, compliance management, export control, environmental management, an internal control system and internal auditing.

In addition to the policy statement and the complaint procedure, many complementary prevention measures have been implemented. The following is an excerpt:

• Establishment of operational risk management to globally safeguard and guarantee human rights and environmental obligations along the value chain
• Raising awareness of company-wide complaints procedures
• LkSG as part of the ISO 14001 environmental management system
• Awareness-raising training on human rights for different stakeholders
• Global procurement awareness training: WE program
• Suppliers' day to present the LkSG
• Sustainability key note for the global purchasing organization
• Escalation process
• Update on construction contracts for international construction sites
• Training of site managers for new construction projects
• Updating tenders for non-production material
• Piloting the "on-site checks" concept
• Sustainability rating of Festo SE & Co. KG by EcoVadis, NQC-Supplier Assurance and Integrity Next

Occupational Health and Safety and Environmental Management

Occupational health and safety has always been a top priority at Festo. For this reason, working conditions are continuously reviewed and improved on the basis of audits that have been performed. In addition, we always want to avoid negative environmental impacts. For this reason, Festo has introduced an environmental management system in accordance with ISO 14001 at all existing production and logistics sites. Together with our global colleagues, we continuously exchange ideas and information in order to be able to make a fundamental contribution to sustainable development with suitable environmental measures.

• You can find more on the topic of occupational safety in our People at Festo action area
• You can find out more about our environmental management on the Climate protection and resource efficiency page

During the reporting period, annual reports were submitted to the Management Board and relevant authorities on the results of the risk analysis and the derived preventive measures. As part of the Sustainability Report, we report annually on the core elements of the German Supply Chain Due Diligence Act (LkSG).

• Find out more in our current Sustainability report

Any indication of misconduct and violations of our Code of Conduct or the applicable law can be submitted anonymously and securely via the globally accessible whistleblower portal of the Festo Group. Possible misconduct can be reported in various languages worldwide.

• Visit our whistleblower portal
  

• How do I submit a report?
• Frequently asked questions

In cases of human rights and environmental violations, anyone submitting a report can also send an e-mail directly to Corporate Sustainability .

The following steps show how the direct report to Corporate Sustainability is dealt with:

1. Receipt of the complaint or notification

• The Corporate Sustainability department will confirm and document receipt of a notification to the whistleblower within seven days.

2. Review of the complaint or notification and clarification of the circumstances

• The circumstances will be examined and evaluated by the human rights officer.
• Depending on the violation, the Human Rights Committee can be consulted.
• In the event of rejection, the whistleblower will receive feedback.

3. Working out a solution

• Depending on the violation, the Human Rights Committee will be consulted.
• If necessary, measures will be elaborated with the relevant department.
• If necessary, this must be approved by the Management Board.
• If the whistleblower and the person affected are the same person, the solution is coordinated before the measures are implemented.

4. Remedial measures

• Agreed remedial measures are implemented and followed up by the human rights officer.

5. Review and closing

• The whistleblower receives feedback on the result achieved.

6. Verification of effectiveness

• The effectiveness of the procedure is checked annually and as required.
• If necessary, adjustments are made to the procedure or remedial measures that have been taken.
• If necessary, inclusion of the human rights risk in the risk analysis.

If you would like to report misconduct or a possible violation of our Codes of Conduct directly to our Compliance Office, please contact the Compliance Office.

For more information on the compliance report, see Compliance