Ethics and governance

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:

• 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, 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:

• Establishment of operational risk management to globally safeguard and guarantee human rights and fulfilment of environmental obligations along the value chain
• Raising awareness of company-wide complaints procedures
• LkSG (German Supply Chain Due Diligence Act) as part of the ISO 14001 environmental management system
• Awareness-raising training on human rights for different stakeholders
• Global purchasing awareness training: incoming goods program
• Suppliers' day to present the LkSG
• Sustainability key note for the global purchasing organisation
• Escalation process
• Update on construction contracts for international construction sites
• Training of site managers for new construction projects
• Updating tenders for non-production material
• Pilot test of 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. 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.

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

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).

• Find out more in our current sustainability report

The whistle-blower portal of the Festo Group, which is accessible worldwide, can be used to anonymously and securely submit any information on misconduct and violations of our Code of Conduct or applicable law. This is how any misconduct can be reported in different languages worldwide.

• Visit our Whistle-blower portal
  

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

In cases of human rights and environmental violations, any whistle-blower can also contact us directly by sending an email to Corporate Sustainability.

The following steps describe how to submit a report directly to Corporate Sustainability:

1. Receipt of the complaint or information

• The Corporate Sustainability department will document the information and confirm receipt of it within seven days.

2. Investigating the complaint and clarifying the facts of the case

• The facts of the case will be looked into and assessed by the Human Rights Officer.
• Depending on the violation, the Human Rights Committee may be consulted in an advisory capacity.
• The whistle-blower will receive feedback if the case is rejected.

3. Developing a solution

• Depending on the violation, the Human Rights Committee is consulted.
• If necessary, a measure is worked out with the relevant department.
• If required, this will be released by the Management Board.
• If the whistle-blower is the same as the person affected, the solution is agreed upon before the measure is implemented.

4. Remedial action

• The agreed remedial action is carried out and followed up by the Human Rights Officer.

5. Review and conclusion

• The whistle-blower receives feedback on the result achieved.

6. Reviewing the effectiveness

• The effectiveness of the procedure is reviewed annually and on an ad hoc basis.
• If necessary, the procedure is adapted or remedial action is taken.
• If applicable, the human rights risk is included in the risk analysis.

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

Further information on compliance reporting can be found at Compliance