Protecting human rights from abuses ... • by third parties (including companies) • through appropriate policies, regulation and jurisprudence (Guiding Principles 1–10) Responsibility ... • to act with due care • to not infringe upon the rights of others • to eliminate adverse impacts in which they are involved (Guiding Principles 11–24) Responsibility of the state and the economy ... • to provide better access to the victims • to provide effective remedy, both judicial and extrajudicial (Guiding Principles 25–31) 1. The state duty to protect human rights 2. The corporate responsibility to respect human rights 3. Access to remedy “ United Nations Guiding Principles on Business and Human Rights 1. Policy statement 2. Risk analysis (Procedure for identifying impacts) 4. Reporting 3. Complaint mechanism Measures and effectiveness monitoring Chart based on the ‘protection, respect and remedy’ analytical framework 4. Ethics and governance Current measures to implement the Act on Corporate Due Diligence in Supply Chains (LkSG). 1. Policy statement Festo is committed to respecting human rights. The corporate duty of care for this is laid down in the Code of Conduct and the Code of Conduct for Business Partners. 2. Risk analysis Since 2020, we have been working on a methodology to systematically assess human rights risks in the value chain. The aim is to identify risk countries in purchasing in order to take appropriate further steps. In 2021, selected business partners were systematically reviewed to check they meet regulatory requirements. This ensures that we enter into ethically sound business relationships. A human rights impact assessment as part of the Act on Corporate Due Diligence in Supply Chains has not yet been carried out at the Festo Group’s business locations. GRI 412-1 Measures and effectiveness monitoring Since 2010, Festo has systematically addressed the issues of human rights and child labour with its direct suppliers in the international production network. Compliance with human rights and the prohibition of child labour are firmly agreed via the Code of Conduct, the Code of Conduct for Business Partners and as part of supplier audits. The existing supplier self-assessment was expanded in 2021 with regard to evaluation according to social aspects, resources and material efficiency and the use of conflict minerals. 3. Complaint mechanism A whistle-blower portal has been an integral part of the Festo compliance management system since 2015. Complaints or information about human rights violations can be reported anonymously. The next step would be a systematic processing of the complaint. See Compliance, page 40 4. Reporting As part of the sustainability report, the core elements of the Act on Corporate Due Diligence in Supply Chains are reported on annually. The GRI Index explains the corresponding key performance indicators (KPI) on the topic of human rights. GRI 407-1, GRI 408-1, GRI 409-1, GRI 414-1, GRI 414-2 page 20 GRI 412-1 page 42 GRI 410-1, 411-1, 413-2 page 92–93 4.2 Human rights Festo is fully committed to the values set out in the United Nations International Bill of Human Rights and expects the same from its business partners. This covers all 30 articles of the Universal Declaration of Human Rights, the SA 8000 standard of Social Accountability International together with the eight core labour standards and the Declaration on Fundamental Principles of the International Labour Organization (ILO) – namely the freedom of association and the right to collect- ive bargaining, the elimination of all forms of forced labour, the abolition of child labour and the elimination of discrimination in respect of employment and occupation. On 16 June 2011, the UN Human Rights Council adopted its Guiding Principles on Business and Human Rights. These refer to all states as well as transnational and other business enterprises – regardless of their size, sector, location, ownership or structure. To realise human rights, all actors depicted must fulfil their responsibilities. The primary duty rests with states to protect and implement human rights. Businesses should ensure that they respect human rights in all their activities. With the help of complaint mechanisms, both states and companies must ensure that human rights violations can be identified and that those affected are guaranteed remedial measures in the event of harm. The chart on the right expands on our current measures to implement the Act on Corporate Due Diligence in Supply Chains (LkSG). In addition, we conduct system-based audits (embargo, sanctions list and goods list audits as well as a critical end-use audit) as part of our export control. SustaiNet business network We have been part of the SustaiNet business network since July 2021. There, together with seven other companies and the sustainability consultancy Sustainable Thinking, we are working in four teams to develop practical solutions in line with the LkSG and to build sustainable supply chains. In this way, we can continue to integrate sustainable action into our daily business. 4. Ethics and governance 42 43 Festo SE & Co. KG Sustainability Report 2021 Festo SE & Co. KG Sustainability Report 2021
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