In order to achieve the goals of sustainable development, it is important to set and adhere to binding ethical and governance standards worldwide. Therefore, as part of our compliance activities, we are committed to acting fairly and in accordance with applicable laws, regulations, standards and guidelines. Legally compliant business processes and adherence to anti-corruption laws play a central role, as does respect for human rights and the German Supply Chain Due Diligence Act (abbreviated LkSG in German).
Global procurement and sales markets present both opportunities and challenges at the same time. Festo is aware of its corporate obligation to exercise due diligence and is continuously working on awareness campaigns and improving its processes.
By signing our Policy Statement on Respect for Human Rights and Related Environmental Rights (PDF), the Management Board has committed to respecting internationally recognised human rights and the fundamental labour standards of the International Labour Organization (ILO) worldwide.
The following outlines Festo’s corporate due diligence activities in relation to the core elements of the Supply Chain Due Diligence Act.
With our Policy Statement (PDF), we publicly commit ourselves to protecting human rights and related environmental rights and to preventing violations of the law, both in our own business operations and in relation to our business partners (direct and indirect suppliers). This framework sets out the systematic approach to how we as a company fulfil 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 on 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 prioritise human rights and environmental risks. We will analyse 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 relate to our business purpose. To assess the country risk, we use sources such as the ITUC Global Labour 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 prioritised according to their severity and the degree of the company's responsibility.
As part of our systematic approach, social and environmental risks are analysed 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:
The potential human rights risk areas in the supply chain are:
In addition, system-based 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:
Occupational health and safety and environmental management
Occupational health and safety has always been a top priority at Festo. That is why working conditions are continuously reviewed and improved through audits. In addition, we always want to avoid negative environmental impacts. Festo has therefore introduced an environmental management system in accordance with ISO 14001 at all existing production and logistics sites. Together with our colleagues worldwide, we continuously exchange ideas and information to be able to make a fundamental contribution to sustainable development with suitable environmental measures.
Annual reporting on the results of the risk analysis and the preventive measures based on this were submitted to the Management Board and relevant authorities during the reporting period. As part of the Sustainability Report, we report annually on the core elements of the German Supply Chain Due Diligence Act (LkSG).
Festo offers three different ways in which a complaint or information about possible human rights violations can be submitted. As a general rule, whistle-blowers can expect not to suffer any personal consequences or consequences under employment law at Festo if they anonymously report wrongdoing.
As the criminal and irregular activities are being investigated and prosecuted, the interests
If there are sufficient initial grounds to suspect misconduct, adequate measures will be taken and carried out with the greatest possible confidentiality.