Sustainability Report Compact 2024
12 Climate Protection and Resource Efficiency 14 Corporate Carbon Footprint 18 SBTi-Targets 20 Sustainability at Our Locations 24 Material Use in Our Products and the Product Carbon Footprint 26 Use of the Products Sold 28 People at Festo 30 Employee Development 32 Festo as an Employer 34 Diversity 36 Education and Training 40 Technical Education 41 Sustainability and Artificial Intelligence in Technical Education and Training 42 Sustainable Practice Award 44 Occupational Safety and Comprehensive Health Promotion 48 Upholding Human Rights 52 Governance 54 Compliance Table of Contents Report Profile The Sustainability Report 2024 of the Festo Group is being published for the first time as a compact report. The intention is for this document to provide succinct information about progress on key sustainability issues. This format takes account of the fact that reporting at Festo is currently in transition. The preparations for the Corporate Sustainability Reporting Directive (CSRD) are under way and the company is attentively following the development of the EU Omnibus Directive in order to address and implement new regulatory requirements at pace and efficiently. At the same time, one focus is on restructuring the report in accordance with the topic areas of the CSRD – environment, social issues and governance (ESG). This compact report is already being drawn up on the basis of the new ESG structure. The topics have also been partially restructured. The report primarily presents the progress made during the reporting year, which results in a reduced scope compared to previous reports. The format of the compact report allows the preparations to be prioritized in the background for the comprehensive reporting required under the CSRD. The subject of the report however remains unchanged: The Festo Group with headquarters located in Esslingen. Unless otherwise stated, the reported figures and data refer to the global activities of the organization. The focus of the “People at Festo” section is on Festo SE & Co. KG. The indicators also follow the established system and thereby facilitate a multi-year comparison of performance. The Corporate Carbon Footprint reported in the relevant chapter takes into account key figures for the entire Festo Group (with the exception of the waste category). The other data in the chapter relate to the production and logistics sites of the Festo Group. Information on strategically relevant and current topics was also included – as were the Sustainable Development Goals (SDGs). The topic “Networks and Committee Work” is presented in the Festo Sustainability Report 2023 (page 40 f.). Reporting period and editorial deadline The document is available in German and English and mainly relates to the period from January 1, 2024, to December 31, 2024. All forward-looking statements in this report are based on the assumptions valid on the date of the editorial deadline. The submission deadline for this report was March 15, 2025. Contacts and project participants Numerous employees of the Festo Group contributed to this report. You can direct any questions you have to the address given below and as necessary they will be forwarded to the relevant departments: corporate.sustainability@festo.com 1 Environment 2 Social 3 Governance 2 Report Profile 4 Foreword 6 Festo at a glance 8 World of Motion 10 Sustainability Strategy Cover image The cover image is based on the Lorenz attractor – a mathematical model developed by Edward Lorenz in the 1960s. It is an example of chaotic behavior in dynamic systems and, in a figurative sense, reflects the challenges companies face in volatile markets – hence the graphic transfer to the industrial environment. Just as small changes in the initial conditions of the Lorenz attractor lead to completely different results, Festo's customers also have different starting points that require a flexible and adaptable approach as well as customized solutions. Festo offers exactly these customized automation solutions. With innovative and sustainable automation technology, Festo ensures that production can be efficient in all industries. In addition, Festo Didactic provides the appropriate technical basic and further training.
Dear Readers, In a world confronted by massive environmental, social and economic challenges, we at Festo take responsibility. Our goal is to make a contribution toward creating a more sustainable future through innovative technologies and efficient processes. Sustainability and economic success are mutually complementary in our family-owned company. Developing sustainable automation solutions empowers our customers to produce in a more resource-efficient manner and simultaneously gives them a greater competitive edge. Our Compact Report 2024 demonstrates how we are continuously improving our environmental footprint, taking social responsibility and running a sustainable business. We are committed to reducing our CO2e footprint along the entire value chain – from procurement, through production, to the use of Festo products by our customers. We are also investing in training for our employees, promoting diversity, and creating a secure working environment. In 2025, Festo celebrates its 100th company anniversary. We are launching our corporate citizenship initiative to salute the landmark occasion. A one-time donation will sponsor 100 projects across the world and from 2025, we will grant all our employees one working day of leave each year to support their volunteering efforts. A key element of the European Green Deal is mandatory, standardized sustainability reporting in compliance with the Corporate Sustainability Reporting Directive (CSRD). At the point in time when this report is being drawn up, the European Parliament is debating the far-reaching changes in relation to the scope and timing of the reporting requirements. Nevertheless, we are already making preparations for CSRD reporting. This compact report is therefore based on the ESG structure for the first time (environment, social issues, governance). We at Festo believe that sustainability is a collaborative process – we invite you to join us in shaping this journey. I would like to express my thanks to you for your trust in us and your interest in our company. Dipl.-Ing. (FH) Thomas Böck Chairman of the Management Board of Festo SE & Co. KG Dipl.-Ing. (FH) Thomas Böck, Chairman of the Management Board of Festo SE & Co. KG Festo SE & Co. KG Sustainability Report 2024 Festo SE & Co. KG Sustainability Report 2024 4 5
Total sales by region in percent 2022 2023 2024 Europe/Middle East 57 % 59 % 58 % Asia 25 % 23 % 23 % Americas 18 % 18 % 19 % Festo at a glance In the 2024 financial year, the Festo Group generated revenue of 3.45 billion euros with around 20,600 employees at 250 locations across the world. The company invested 8.8 percent of its sales in research and development. Vocational and advanced training measures account for 1.2 percent of turnover. The Festo Group is divided into the business divisions Automation and Didactic. Important industry segments include the automotive industry and its supply chain, food manufacturing and packaging, machine tools, intralogistics, electronics industry, biotech, pharmaceutical and cosmetics industries, chemical industry and water engineering, as well as the areas of medical technology and laboratory automation (Life Sciences), which are growing in importance, along with green hydrogen production. Festo also supports all automated process steps in the field of electromobility – from battery production to the production of electric vehicles. As a partner for industrial motion, Festo offers integrated and seamless pneumatic and electric automation solutions – including software and AI solutions as well as customized training concepts. The focus is always on finding the most efficient and productive solution for movement tasks in industrial production. Sustainability and climate-smart transformation of manufacturing are becoming the most important tasks along the entire value chain. Discover more about our “World of Motion” on the following double page. in research and development services employees worldwide Companies Production sites: 14 global production centers Delivery centers: 5 regional service centers Offices: over 250 worldwide Service worldwide: in 176 countries EUR 3.45 billion total revenue in 2024 EUR 304 million 60 20.596 The Automation division As an automation partner, our objective is to enable the production of nearly everything we use, move and consume in our everyday lives. The Automation division provides a wide range of solutions for factory and process automation. They encompass the development, manufacture, and sale of pneumatic and electric components, technical systems and services. Furthermore, this includes our consulting expertise for automation tasks. Energy and resource efficiency and the humanization of work are also becoming important competitive factors in all industrial segments. The Didactic division The Group’s activities in the Didactic division stand for technical education and training. As a global partner for educational and training institutions, governments, public institutions, and companies, Festo sets up and implements didactic training centers and laboratories, as well as learning systems and training programs covering all aspects of automation technology. They are designed to prepare people systematically for working in dynamic and complex environments. The learning opportunities are continuously adjusted to match the current requirements of industry and business, and includes topics such as digitalization, AI, and energy efficiency. Festo stands for clear values, top quality, and customer-oriented innovations. In industrial automation technology and technical education, we contribute to the sustainable development of the environment, the economy, and society. As a family-owned company, we think and act responsibly and with a focus on the future. Festo SE & Co. KG Sustainability Report 2024 Festo SE & Co. KG Sustainability Report 2024 6 7
We set the world in motion for our customers. By using innovations to simplify what is complex. Automation from Festo offers the right solutions for everything that ensures sustainable success, maximum productivity, and competitive advantages for our customers, from pneumatics and controlled pneumatics to electric automation and digitalization using AI. Compatible and with seamless connectivity. Our broad expertise allows us to offer you technology-neutral advice, thus opening the door to smart innovations and maximum CO2e savings. And training is just as important as technology. From pure power to smart control > Pneumatics from Festo for reliable and innovative automation solutions in all industries Pneumatics often offers the simplest and most efficient solution. Regardless of the challenge, customers benefit from pneumatic solutions that are based on application knowledge gained over a hundred years of automation experience. Our latest innovation, controlled pneumatics, provides intelligent solutions for more complex tasks. Together with comprehensive design software, digitized pneumatics opens up new possibilities, from precise positioning to fast and flexible control. From real-time tracking to looking into the future > Digitalization from Festo for monitoring and digital tools to AI solutions Festo is one of the pioneers of digitalization and a founding member of the Industry 4.0 platform. Based on our expertise in mechatronics, automation, and AI, we generate real added value. As a partner in industrial automation, we offer individual, comprehensive solutions and support our customers in increasing overall system efficiency with the right hardware and suitable software tools, from design to commissioning, as well as perfect AI apps. From comprehensive expertise to lifelong learning > Festo Didactic for learning solutions and developing technical skills As the global market leader in technical basic and further training, we create real added value for our customers on their journey to industrial transformation – and thus the basis for productivity, innovation, and sustainable growth. We systematically pass on our knowledge to the experts of tomorrow. Everything is from a single source, from simple software solutions and individual learning packages to digital learning platforms and comprehensive training centers. “Seamless automation allows us to combine the best of different technologies.” Frank Notz, Member of the Management Board Sales Together we move the world. Welcome to the World of Motion: www.festo.com/worldofmotion From maximum flexibility to highest precision > Electric automation from Festo for speed and efficiency with seamless connectivity From mechanical systems and controllers to the right cloud application: Thanks to having one of the most extensive portfolios on the market, we can implement almost any movement requirement for our customers using electric automation. Seamless connectivity gua- rantees perfect interaction between all technologies. From pioneering innovations to maximum productivity World of Motion Festo SE & Co. KG Sustainability Report 2024 Festo SE & Co. KG Sustainability Report 2024 8 9
As a strategic motion partner, we want to offer our customers certainty on their journey to a more sustainable way of doing business – using technology-independent consulting to achieve efficient solutions for their motion requirements. Our scientifically based climate targets enable us to contribute to the strategic goals of our customers. Marcus Stemler heads the Corporate Sustainability department and is responsible for sustainability management throughout the Group. The focus is on corporate responsibility and on positioning Festo as a long-term strategic partner for customers. The department is responsible for strategic planning and reporting, minimizes risks by coordinating sustainability compliance, and manages operational management systems globally. Marcus Stemler, Head of Corporate Sustainability at Festo As a family-owned company with a long-term perspective, taking responsibility for the present generation and future ones has always been a core part of our identity. Sustainability is an integral element of our corporate culture and strategy. Our sustainability strategy distinguishes between the areas of environment, social issues, and governance (ESG), and guides our actions in the focus areas of climate protection and resource efficiency, people at Festo, technical education, as well as ethics and governance. In 2024, we achieved important progress: – By joining the Science Based Targets initiative (SBTi), we have committed to science-based climate targets for our company in compliance with the Paris Agreement. These were submitted by us for review in 2024 and they were validated by the SBTi in 2025. Further information about our climate targets can be found in the “SBTi targets” section of this report. – A wide range of qualification programs enables us to provide our employees and customers with key qualifications and facilitates their continuous development. – We have continuously developed our compliance management system. This system is used to monitor and control measures for preventing corruption, fraud, and antitrust breaches, as well as to strengthen our management culture. It provides the foundation for conduct by our employees and business partners that is legally compliant and in conformity with regulations. – Our product portfolio spanning pneumatic and electric automation allows us to provide advice independent of technology, and to support our customers in achieving their sustainability goals. This enables us to make a contribution over the long term to reducing greenhouse gas emissions along our entire value chain. We are continuously adapting our sustainability strategy. A new strategy period was launched in 2025. Going forward, our strategic plan is intended to continue building on the existing focus areas. At the same time, we want to use this plan to respond more directly to changing market needs and regulatory developments, while defining company-specific priorities. Our objective is to make even better use of our ESG opportunities and to prepare our business operations for the upcoming challenges. Sustainability Strategy Sustainability is firmly anchored in our corporate strategy. The Management Board of Festo SE & Co. KG is committed to this. From left to right: Dr. Jaroslav Patka, Dr. Ansgar Kriwet, Dipl.-Ing. (FH) Thomas Böck, Dr. Sebastian Beck, Dipl.-Ing. Gerhard Borho, Dipl.-Ing. (FH) Frank Notz. Festo SE & Co. KG Sustainability Report 2024 Festo SE & Co. KG Sustainability Report 2024 10 11
Environment Climate Protection and Resource Efficiency Environment and climate protection, along with the economical use of energy and resources, are key tasks of our time. These topics are firmly anchored in our corporate strategy and in our sustainability strategy. Our focus is on reducing greenhouse gas emissions – for our customers and for ourselves. We have defined clear climate targets, which we submitted for the Science Based Targets initiative (SBTi) in 2024 and which were validated in 2025. On the one hand, we want to ensure that our goals align with climate research, and on the other hand, that we have defined the field in which we can have the greatest impact. A milestone has been achieved. Since 2024, the entire Festo Group has been CO2e-offset in terms of Scope 1 and CO2e-neutral in terms of Scope 2 – two years earlier than planned. Our AutomationCenter in Berkheim was awarded a Platinum Certificate as early as 2017 by the German Sustainable Building Council.
Festo SE & Co. KG Nachhaltigkeitsbericht 2022 52 3.7 Employee commuting Purchased electricity, steam, heating and cooling Vehicle fleet 3.14 Franchises ** 3.13 Leased property, plant and equipment ** 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 ** 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 Scope 1 13,238,347 13,536 * 387 4,905 77,000 25,692 20,660 340,420 19,201 26,441 0 21,751 * 3.9 is excluded ** 3,10, 3.13, 3.14 und 3.15 = not relevant Corporate Carbon Footprint (CCF) Since 2022, Festo has been calculating the Corporate Carbon Footprint (CCF) for Scopes 1 to 3 in accordance with the Greenhouse Gas (GHG) Protocol. The calculations are based on recognized methods and meet the requirements of the GHG Protocol. If emission values in this report differ from values published previously, without any explanation being provided in the following, this is due to validation of our climate goals by SBTI. A small number of methodological adjustments and corrections were necessary in the course of this process. The GHG emissions from the year 2024 are presented below. The figures from the two previous years can be found in the table on the next page. Overall, our CCF went up across the individual scopes and categories by 1.8 percent in the reporting year. Further explanations for the reasons are given in the next paragraph. We expect to be able to effectively steer our GHG emissions towards “Net Zero” in the future. To this end, we are pursuing a global transformation plan for our infrastructure. The aim is to gradually replace fossil technologies with renewable ones. Greenhouse gas emissions 2024 (Scope 1, Scope 2, and Scope 3) in line with the GHG Protocol (in t CO2e). A reduction plan for Scope 3 emissions is an element of the corporate strategy. In specific terms, we are currently developing GHG reduction plans for direct emissions from the combustion of fossil fuels (Scope 1), indirect emissions from the use of electricity and heat (Scope 2), and emissions caused by the production of purchased goods and services (Scope 3.1), emissions caused by procurement and internal logistics (Scope 3.4), and emissions resulting from the use of sold products (Scope 3.11). A role was also played by the introduction of an ISO 50001-compliant energy management system at our production and logistics sites and we also expect positive effects on Scope 1 emissions from this. The validation of our climate targets at the beginning of 2025 by the Science Based Target initiative confirmed the approach we have described. 1. Environment Festo SE & Co. KG Sustainability Report 2024 Festo SE & Co. KG Sustainability Report 2024 14 15
2022 2023 2024 Scope 1 30,762 25,820 26,441 Scope 2, marketbased 1) 38,688 8,087 0 3.1 Purchased goods and services 393,462 352,401 340,420 3.2 Capital goods 25,173 19,879 20,660 3.3 Fuel- and energy-related emissions 32,013 23,343 25,692 3.4 Transport and distribution 87,931 2) 83,243 2) 77,000 2) 3.5 Waste 3) 394 382 387 3.6 Business travel 18,620 19,683 21,751 3.7 Employee commuting 18,330 18,982 19,201 3.8 Rented or leased property, plant and equipment 2) 8,422 5,454 4,905 3.11 Use of products sold 13,363,775 12,972,026 13,238,347 3.12 Handling of products sold at the end of the product lifecycle 14,548 13,097 13,536 Summe 4) 14,032,118 13,542,397 13,788,340 Greenhouse gas emissions (Scope 1, Scope 2, and Scope 3) in accordance with the GHG Protocol (in t CO2e). 1) The location-based Scope 2 emissions amounted to 59,703 t CO2e in the reporting year. 2) Preliminary value, new calculation method. 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. The CCF of Festo comprises the majority of GHG emissions of the entire Festo Group, including all international sales subsidiaries. Limitations and methodological changes are explained below. In Scope 1, we posted an increase of 2.4 percent to 26,441 tons CO2e. The reasons for this include a higher attendance rate at our production and office facilities following contact restrictions during the pandemic. Another contributory factor was the easing of energy-saving measures implemented on the back of the energy crisis. categories and the elimination of double counting. We have therefore corrected the figures for 2022 and 2023 retrospectively in this report. Overall, Scopes 3.1 and 3.2 were virtually unchanged at 361,080 tons CO2e. Fuel- and energy-related emissions (Scope 3.3) increased by 10 percent to 25,692 tons CO2e. The most significant impact here was the change in the emission factors of the International Energy Agency (IEA). The global emission data for the procurement, intercompany and distribution logistics in the areas of transport with logistics service providers (Scope 3.4) directly commissioned by Festo have been consolidated on a serviceprovider platform since 2024. This entails a standardized CO2e calculation method and data structure for the upload of the logistics partners or direct calculation of CO2e figures. In contrast, we use a proprietary model developed in-house to calculate the emissions from supplier-contracted procurement logistics. In the reporting year, the summarized Scope 3.4 emissions amounted to 77,000 tons CO2e. The last time a calculation was undertaken, we calculated the logistics emissions on the basis of the transport volume using a model for the year 2021 that had been developed in-house. These emissions amounted to 121,174 tons CO2e. The exceptionally strong fall in emissions from 2021 to 2024 is primarily explained by the significant increase in airfreight volume during the pandemic and the global semiconductor shortage in 2021. The decline subsequently dropped from around 16,000 tons to approximately 10,000 tons each year in the following years. The impact on the emissions amounted to approximately 30,000 tons CO2e. Furthermore, smaller, targeted projects to switch transport volume from air freight to sea freight also contributed to this development (approx. 2,250 tons CO2e). We attribute the remaining difference of approx. 12,000 tons CO2e to the change in methods and calculation approach referred to above. The data for 2022 and 2023 are extrapolated from the current value to the past. In 2024, we are using the market-based method with a value of zero for reporting the Scope 2 emissions. The key factor for this was expansion of the purchase of certificates of origin for electricity from renewable energy sources at all locations. Within Scope 3, the categories 1 (purchased goods and services) and 2 (capital goods) are still calculated on the basis of the costs associated with emission factors based on expenditure. We carried out a review for the list of tasks in 2024. This led to shifts between the two GHG emissions caused by business travel (Scope 3.6) increased by 10 percent to 21,751 tons CO2e owing to catch-up effects following the pandemic years. The biggest proportion of GHG emissions continues to be generated during the usage phase (Scope 3.11). During the reporting year, this increased by 2 percent to 13,283,347 tons CO2e. As a result, the GHG emissions returned to the 2022 level, which is partly due to changes in the calculation logic parameters and the electricity mix in our sales markets. Offset with CO2e certificates and guarantees of origin If we are unable to avoid CO2e emissions in Scope 1 and the estimated heat-related emissions from rented properties (heat-related Scope 3.8) in the short or medium term, we will offset them with CO2e certificates from international climate protection projects. When selecting projects, we rely on certification systems such as “Gold Standard” and “Verra”. For the electricity consumption of properties owned by Festo, as well as the partially estimated electricity consumption in rented properties, we purchase guarantees of origin for electricity from renewable sources and retire them. This means we have achieved calculated carbon neutrality in Scopes 1, 2, and 3.8. Additional details on CO2e certificates and guarantees of origin are described in the Sustainability Report 2023. 1. Environment Festo SE & Co. KG Sustainability Report 2024 Festo SE & Co. KG Sustainability Report 2024 16 17
In 2024, Festo joined the Science Based Targets initiative (SBTi). In doing so, we commit to reducing our greenhouse gas emissions (Scopes 1 – 3) in line with the Paris Agreement. Festo’s ambitious climate targets were given validation as scientifically sound by the SBTi in 2025. SBTi-Targets Short-term targets by 2030 – Reduction of absolute greenhouse gas emissions in Scope 1 and 2 by 64.3 percent compared with the base year 2022 – Reduction of absolute greenhouse gas emissions in Scope 3 by 25 percent compared with the base year 2022 Long-term target by 2040 – Reduction of absolute greenhouse gas emissions in Scope 1 and 2 by 90 percent compared with the base year 2022 Long-term target by 2050 – Reduction of absolute greenhouse gas emissions in Scope 3 by 90 percent compared with the base year 2022 “Net Zero” target by 2050 – Net zero greenhouse gas emissions along the entire value chain We and the SBTi continuously review our progress toward our targets. Since 2024, the entire Festo Group has been CO2e offset in terms of Scope 1 and CO2e-neutral in terms of Scope 2 – two years earlier than planned. Fundamentally, we are striving for efficient use of resources throughout all departments in Operations. This aim has been explicitly expanded by significant aspects such as energy efficiency and CO2e reduction in order to minimize our footprint. I ensure that these factors are implemented consistently in decisions with strategic relevance. Dr. Florian Denz, Head of Sustainable Operations at Festo 1. Environment Festo SE & Co. KG Sustainability Report 2024 Festo SE & Co. KG Sustainability Report 2024 18 19
Direct greenhouse gas emissions (Scope 1, t CO2e) 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) 2022 2023 2024 2022 2023 2024 2022 2022 2023 2024 2023 2024 30 20 10 0 0 0 120 90 60 30 0 130,123 2022 2023 2024 2022 2023 2024 13,048 15 10 5 0 80 60 40 20 0 60 40 20 0 60.1 15 5 0 10 79,683 69,852 13,270 77,206 16,340 140,623 126,202 31,744 57.8 53.7 12.7 3.6 3.8 Sustainability at Our Locations Sustainable energy and resource management plays a key role at our locations across the world. We document and report on initiatives, measures, and key figures each year. Primary energy consumption and Scope 1 greenhouse gas emissions In 2024, primary energy demand amounted to 77,206 megawatt hours. This represented an increase of 10 percent compared to the previous year, due to several effects. When the contact restrictions introduced during the pandemic were lifted, and the energy measures taken during the energy crisis were relaxed, buildings in Germany and other European locations were once again subject to intensive use. This resulted in an increased requirement for heat. We also resumed in-house generation of electricity from gas. We present the energy consumption documented under primary energy consumption in chapter 3.2 of the Sustainability Report 2023. The Scope 1 emissions in the production and logistics network amounted to 13,048 metric tons of CO2e emissions in 2024. These emissions are taken account of by the measures for CO2e offset. Details of our offsetting measures are presented in the chapter Corporate Carbon Footprint. Energy consumption and derived Scope 2 emissions The final energy demand in 2024 amounted to 130,123 megawatt hours, which was 3 percent higher than in the previous year. The greater usage of buildings was also perceptible here. Festo obtains its final energy almost exclusively in the form of green electricity. Two locations are heated by district heating. This causes 322 metric tons of CO2e emissions. These emissions are also subject to CO2e offset and are therefore also set to zero. Further information on this is provided in the chapter Corporate Carbon Footprint. Total energy consumption and sales-related GHG emissions The total energy demand in relation to sales (primary and final energy) went up by almost 12 percent year-on-year to 60.1 megawatt hours per million euros. Scope 1 and 2 sales-related GHG emissions increased year-on-year by 4 percent to 3.8 metric tons of CO2e per million euros of sales. As a result, emissions have increased to a lesser extent than total energy demand. This is due to the purchase of green electricity and the expansion of inhouse power generation with photovoltaics. We reported on the certificates of origin for electricity procurement in the Sustainability Report 2023. 1. Environment Festo SE & Co. KG Sustainability Report 2024 Festo SE & Co. KG Sustainability Report 2024 20 21
According to disposal procedure 2022 2023 2024 Nonhazardous recycling 10,500 t 10,003 t 9,879 t Nonhazardous disposal 422 t 522 t 611 t Hazardous recycling 1,712 t 1,666 t 1,890 t Hazardous disposal 311 t 352 t 353 t Water discharge by quality and destination 2022 2023 2024 Production wastewater 75,329 m3 73,737 m3 80,336 m3 Sanitary wastewater 103,682 m3 82,846 m3 90,243 m3 Indoor air-conditioning 20,862 m3 19,277 m3 20,011 m3 Other 17,119 m3 18,182 m3 25,912 m3 Water withdrawal by source: public water supply and groundwater withdrawal Groundwater 6,946 m3 5,971 m3 6,916 m3 Public water withdrawal 301,624 m3 271,824 m3 296,663 m3 Nonhazardous and hazardous waste Water discharge and water withdrawal Expansion of in-house renewable power generation The Festo Group has been investing in generating its own electricity using photovoltaic (PV) systems since 2004. In 2024, photovoltaic systems were installed at a further five locations. The total PV capacity installed at Festo has thus been increased by a further 13 percent and now amounts to 15.6 megawatt peak. By the end of 2024, all PV installations worldwide generated 14,990 megawatthours of electricity. This avoids 7,452 metric tons of CO2e per year at the plants of the respective electricity suppliers. Own production was 11,399 megawatt-hours in the production and logistics network. Energy controlling and energy management With the exception of three smaller plants, our locations are equipped with energy-monitoring systems. They make it possible to monitor energy consumption, to identify causes for excessive consumption and initiate corrective measures at short notice. In 2024, we decided to introduce an energy management system in conformity with ISO 50001 at all production and logistics locations. The first implementation took place at our locations in Esslingen and was confirmed by the German Technical Inspectorate (TÜV). We are planning certification of additional German production sites and international rollout in 2025. Environmental compliance Festo did not commit any serious violations of environmental law in the reporting period. However, we cannot rule out the possibility of individual fines having been levied due to minor violations of regulations (e.g. in the transport of hazardous goods). Waste figures and transport of waste We strive to avoid waste at all our locations or to recycle materials. Over the past four years, our locations around the world generated an average of 12,824 metric tons of waste per year. By comparison with 2023, the volume of waste therefore increased by 1.26 percent in 2024. About 82 percent was nonhazardous and about 18 percent was hazardous waste. The recycling/reutilization rate across all waste categories is over 92 percent. This level was achieved by measures such as reusable packaging, low-waste manufacturing processes, and raising the awareness of the workforce. In order to be able to achieve further improvements, we introduced a global waste standard in 2024. The Sustainability Report 2023 contains comprehensive information on waste management. Water consumption and wastewater Festo is committed to effective water management in order to operate with maximally efficient use of resources. In 2024, the water consumption of Festo was 303,579 cubic meters – rather higher than in the previous year (277,794 m3), but below the consumption in 2022. The increase in consumption occurred in all areas, but was particularly evident in production (+12,769 m3). At around 30 percent, production and sanitary installations accounted for the biggest share of total water consumption. Cooling with evaporative cooling systems made up 19 percent, and the remainder was attributable to processes such as the irrigation of green areas and the operation of the canteen. We present a detailed account of our approach to water and wastewater management in the 2023 Sustainability Report. Sustainable packaging concept Our packaging concept has been designed for lower resource consumption and it was further optimized in 2024. Measures included the replacement of single-use pallets/cardboard containers with reusable shuttle boxes and a switch to thinner stretch film containing recycled material. The latter provided material savings of approximately 15 percent. Process-related reasons meant that the use of Euro Pool pallets announced in the previous year’s report could not yet be implemented and is still under review. We are continuing to work on achieving the highest possible proportion of packaging made from renewable materials such as wood, paper, cardboard, and corrugated board. In 2024, this amounted to more than 97 percent of the weight of all packaging materials at our largest distribution warehouse. We also aim to limit the amount of packaging we use in shipments. This was just under 23 percent in 2024 – also for Germany. Our Low Paper concept saves nearly 170 metric tons each year by placing user documentation online. Our future goal is to reuse transport packaging from previous shipments within Festo’s international logistics network. Calculations and pilot products are already running at our Asia hub in Shanghai (China). 1. Environment Festo SE & Co. KG Sustainability Report 2024 Festo SE & Co. KG Sustainability Report 2024 22 23
8.0 % steel 2.2 % zinc 2.1 % brass 49.7 % aluminium 23.7 % plastics 12.0 % stainless steel 10.7 % steel 1.7 % zinc 2.2 % brass Distribution of the purchase volume by material. 54.8 % aluminium 19.2 % plastics 13.7 % stainless steel 50.1 % aluminium 20.1 % plastics 12.0 % stainless steel 13.2 % steel 1.7 % zinc 2.9 % brass Material Use in Our Products and the Product Carbon Footprint (PCF) Material use and the Product Carbon Footprint The Product Carbon Footprint (PCF) shows how many greenhouse gas (GHG) emissions are generated over the entire lifecycle of a product. It also identifies potential for effective savings. PCF: from cradle to gate The PCF accounts for all GHG emissions that occur during the manufacturing phase for material, energy, and transport from cradle to gate. We evaluate the usage phase separately because these emissions can vary depending on the area of application of the product. For comprehensive information on the calculation method, see chapter 3.3 of the Sustainability Report 2023. Continuous further development enables us to show details of the PCF right through to the level of the part number. Our aim is to collect these data for our entire product portfolio. Festo CO2e: practical tool for our customers We have developed the Festo CO2e as an interim solution until detailed PCF data are available for our entire product portfolio. This covers all relevant GHG emissions from manufacture. Furthermore, our customers can use the Festo CO2e to estimate the proportion of the Festo components in the CO2e footprint of their machine. This is a practical tool supporting our customers in calculating their Corporate Carbon Footprint (CCF). In 2025, we will refine the calculation methods further. Sustainable product development Developing products to be maximally low emission right from the start is also part of our corporate strategy. On the basis of internal guidelines, we adhere to the following principles: – CO2e-saving product design. – Material-saving design and CO2e-saving material selection (e.g. recyclates). – Optimum lifetime through easy repairability and maintenance. – Integration of CO2e reduction targets in the product development process. – Avoidance of critical and environmentally harmful content. 2022 2023 2024 You can find more information at www.festo.com/material-compliance Sustainable procurement Alongside the product design, our supply chain is a key area where we have to take account of greenhouse gas emissions. Plastics, aluminum, and (stainless) steel are among the most important materials for our production. In 2024, Festo purchased a total of 26,136 metric tons of raw materials. But resources are finite and the GHG emissions from the extraction of raw materials exert a negative impact on the climate. It is therefore important to develop holistic concepts in order to reduce the consumption of materials and GHG emissions. A focus here is aluminum. Bauxite is the starting material for the production of aluminum and a critical raw material exerting substantial impacts on the environment. One approach is to increasingly replace primary aluminum with secondary aluminum. The procurement of secondary aluminum enables us to save a significant proportion of emissions that are attributable to the extraction of bauxite. When calculating the aluminum CO2e footprint, we take into account whether it is primary or secondary aluminum, the countries of origin, and supplier-specific information to the extent that this is available. Festo has currently attained a secondary aluminum share of 74.3 percent. We go one step further in Hungary. Aluminum waste is directly smelted there into the required raw materials, and consequently bypasses several intermediate steps. This enables us to continue reducing CO2e emissions. At present, we are testing an expansion of the technology to German sites. 1. Environment Festo SE & Co. KG Sustainability Report 2024 Festo SE & Co. KG Sustainability Report 2024 24 25
Use of the Products Sold At Festo, we are committed to climate protection and focus in particular on reducing our corporate carbon footprint (CCF). The biggest proportion of our CCF is made up by greenhouse gas (GHG) emissions, which are generated by customers when they use our products. In 2024, we continued to work on our solutions. These were directed toward making usage of Festo products in customer applications maximally energy efficient and thereby keeping their GHG emissions as low as possible. In focus: GHG emissions in the usage phase In 2024, the focus of our work was on analyzing and evaluating the measures designed to reduce the product carbon footprint (PCF) of our products in the manufacturing and usage phase. On the basis of the results, we received 2025 validation of the Science Based Target initiative (SBTi) for our target of reducing the Scope 3 emissions. The target also includes emissions during the usage phase. Information on the SBTi validation and our climate targets is provided in the chapter Sustainability Strategy and in the section SBTi goals. Energy-efficient automation We support our customers in designing their systems to be cost-effective and energy-efficient. A key factor for energy efficiency is selection of the correct drive technology. Depending on the application, pneumatic, electric or hybrid solutions can be the optimum choice. The correct dimensioning and the pressure level play a big role for pneumatic systems in particular. Advanced control technologies are also helpful in continuing to reduce energy consumption. Our goal is to find the most energy-efficient solution for each customer application. This is facilitated by our offer of innovative technologies and comprehensive consultancy offerings. In order to support sustainable decisionmaking, we provide our customers with digital tools to calculate and visualize energy savings and GHG emissions. These tools allow costs and environmental impacts to be compared over the entire product life cycle. Our support encompasses: Information offerings at the Festo Experience Centers for energy-efficient automation. – Training sessions and workshops for raising awareness of sustainable technologies from Festo Didactic. – Comparative calculations on total cost of ownership and GHG emissions for pneumatic and electric drive systems. – PCFs for the relevant customer application on request. – Energy-efficiency audits for analyzing and optimizing production plants with the Festo Energy Saving Services. Extract from our sustainable products for GHG reduction We offer products in three categories which reduce GHG emissions through their design and their functionality: – More sustainable in manufacture: Cylinders like ADN-S and DSNU-S save up to 50 percent material and CO2e in production. – More sustainable in operation: Intelligent technologies like the energy-efficiency module MSE6 and the vacuum generator OVEM reduce the energy consumption of compressed air by up to 90 percent compared with the previous state of the art, and they improve the cycle time. – More sustainable at the end of the usage phase: A resource-conserving method of construction and recycling concepts allow reuse and professional disposal. More information on our sustainable solutions is available here, www.festo.com/energyefficiency Optimization of compressed-air efficiency Our Festo Energy Saving Services support companies in energy-efficient optimization of compressed-air usage. Certified specialists perform compressed-air energyefficiency audits in conformity with DIN EN ISO 11011 and analyze the compressed-air generation, the supply network, and the final consumers. Any potential savings identified are documented and prioritized so that companies can implement measures in a targeted approach. Digital Energy Saving Services portal Festo offers customers a web-based portal for efficient support of energy-saving measures. Customers have access to digital management of their audit results and potential energy savings, they are able to document leakages and optimization measures, calculate CO2e savings, and monitor the status of their improvements in real time. Companies wishing to carry out their own inspections can acquire a license for the portal and efficiently manage their own audits. In addition, we also offer workshops where customers learn to identify and exploit potential energy savings in their systems. In Festo Experience Centers across the world, customers and Festo experts cooperate to create pioneering solutions with the latest technologies. 1. Environment Festo SE & Co. KG Sustainability Report 2024 Festo SE & Co. KG Sustainability Report 2024 26 27
Social People at Festo Festo is the work of many hands. Our international success is based on the passion, the commitment, and the innovative strength of the people who work for us. Continuous training of our employees for future assignments is therefore particularly important to us. Lifelong learning is a core element of our corporate culture. We put people at the center and create the foundations for a secure and trusting relationship. We offer our employees fair and performance-related pay, as well as flexible working models. We set high benchmarks for occupational health and safety. Moreover, we are committed to upholding human rights and we also require our business partners to comply with social and environmental standards.
Employees and management bodies by age and gender 2022 2023 2024 2022 2023 2024 Total number of employees 20,276 20,068 20,092 Total management bodies 1,190 1,171 1,172 Employees by gender Management bodies by gender Male 70 % 70 % 70 % Male 89 % 89 % 88 % Female 30 % 30 % 30 % Female 11 % 11 % 12 % Employees by age Governance bodies by age < 29 years 14 % 13 % 13 % < 29 years 0 % 0 % 0 % 30 – 49 years 57 % 57 % 57 % 30 – 49 years 48 % 48 % 47 % > 50 years 29 % 29 % 29 % > 50 years 52 % 52 % 53 % Employment relationships by gender and region 2022 2023 2024 2022 2023 2024 Permanent and temporary employees 20,276 20,068 20,092 Permanent by gender Temporary by gender Male 64 % 65 % 65 % Male 6 % 5 % 5 % Female 26 % 27 % 28 % Female 4 % 3 % 2 % Permanent by region Temporary by region Total 18,262 18,404 18,696 Total 2,014 1,658 1,396 Africa 104 99 106 Africa 0 0 0 Americas 2,383 2,344 2,356 Americas 2 6 8 Asia 2,451 2,627 2,865 Asia 1,109 1,116 999 Australia 73 73 74 Australia 6 5 2 Germany 7,820 7,768 7,694 Germany 435 287 249 Europe, excluding Germany 5,431 5,493 5,601 Europe, excluding Germany 462 244 138 New employees and staff turnover 2022 2023 2024 2022 2023 2024 Total hires 2,341 1,934 1,834 Total departures 2,678 2,342 1,950 New entries by gender Departures by gender Male 67 % 64 % 68 % Male 68 % 66 % 67 % Female 33 % 36 % 32 % Female 32 % 34 % 33 % New entries by age Departures by age < 29 years 51 % 44 % 46 % < 29 years 35 % 27 % 31 % 30 – 49 years 41 % 49 % 46 % 30 – 49 years 45 % 46 % 45 % > 50 years 8 % 7 % 8 % > 50 years 20 % 26 % 24 % New entries by region Departures by region Africa 0 % 1 % 1 % Africa 0 % 1 % 0 % Americas 16 % 15 % 15 % Americas 12 % 14 % 14 % Asia 20 % 25 % 22 % Asia 15 % 15 % 17 % Australia 1 % 1 % 1 % Australia 1 % 1 % 1 % Germany 28 % 19 % 22 % Germany 27 % 28 % 30 % Europe, excluding Germany 35 % 39 % 38 % Europe, excluding Germany 44 % 41 % 37 % Employees by region 2022 2023 2024 Total number of employees 20,817 20,545 20,596 Africa 109 104 114 Americas 2,407 2,376 2,386 Asia 3,570 3,762 3,900 Australia 79 78 76 Europe, excluding Germany 6,070 5,878 5,891 Germany 8,582 8,347 8,229 Employee Development Committed, qualified, and adaptable employees are one of the prerequisites for business success at Festo. That is why we strive to attract, retain, and develop the very best employees. In 2024, the Festo Group employed a total of 20,596 people worldwide. This figure covers the entire workforce including interns, students, and temporary staff. Permanent and temporary employment relationships The table below shows the total number of permanent and temporary employment relationships. In addition, there are activities carried out by trainees and students that are not covered by these two categories. There were 541 interns and students in 2022. The number fell to 477 in 2023 and rose to 504 in 2024. New employees and staff turnover Both the total number of new employees and the fluctuation by gender, age group, and region are shown below. Employee turnover increased in 2022 and fell again in 2023 and 2024. 2. Social Festo SE & Co. KG Sustainability Report 2024 Festo SE & Co. KG Sustainability Report 2024 30 31
Festo as an employer Our goal is to entice new talent and offer our existing employees an attractive working environment. Our corporate culture at Festo plays a key role here. It forms the foundation for respectful interaction, lifelong learning, and collaborative growth within the company. Our ongoing project is to continuously develop this culture by implementing targeted programs. Mobile working, a modern digital infrastructure, and innovative, collaborative room concepts empower our employees to organize their work individually with a high level of self-determination, and in consultation with their line managers. This approach allows us to respond to the needs of our employees in the different phases of their lives by offering flexible working hours, such as part-time working, parental leave, or care leave. These options extend beyond the models regulated by law in some countries. Our working model helps employees to reconcile work and private life, and it promotes a forward-looking work environment in the digital age. Remuneration and benefits In addition to fair overall remuneration, Festo offers all employees in Germany – regardless of whether they work full-time or part-time – attractive benefits. In 2024, we structured these benefits in the revised Festo Benefits Framework under the slogan “Be.Well Do.Well”. They comprise the following: Remuneration and benefits – Company pension scheme – Programs for permanent or temporary changes of job location within Festo global – Subsidized canteens or meal allowances at our branch offices – Discount on public transport in Esslingen – Bicycle leasing with an employer subsidy – Leasing of an (electric) company car for employees not covered by collective wage agreements – Price reductions for various discount portals and from regional partners Work-life balance – Self-determined and flexible working – Special leave (e.g. wedding, moving home, or birth of a child) – Social benefit fund for special financial burdens (“rainy day fund”) – Family services and social counseling from external consulting partners – Places in nurseries for children of employees – Holiday childcare for employees’ children Health – Workplace health promotion with a wide range of preventive services – Company sports clubs and leisure groups Lifelong learning – Training (in-person and online) and innovative learning opportunities – Development programs for management – Scholarship programs for students (e.g. IT scholarship, women pursuing technical master’s degree) – Student loyalty scheme for former interns Team culture – Comprehensive onboarding program – Networking events for employees (e.g. after work) – Creative spaces Festo as an Employer For the past 100 years, our employees have shaped the success of Festo. Our ideas, diversity, and innovative force are the driver – for sustainable solutions and a strong community. Martin Kimmich, Head of Global HR Center of Expertise at Festo Festo SE & Co. KG Sustainability Report 2024 Festo SE & Co. KG Sustainability Report 2024 2. Social 32 33
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