Environmental and social standards for suppliers The commitment and monitoring of our suppliers for compliance with social and environmental standards is part of our corporate responsibility. At Festo, every new supplier (100 per cent) is therefore evaluated and checked with regard to environmental and social criteria. GRI 308-1, GRI 414-1 All suppliers must confirm compliance with our CoC BP with their signature. By signing this document, our suppliers undertake to demand compliance with these agreements from their suppliers as well. If the responses are not satisfactory, appropriate action is taken. Festo is careful not to accept any supplier with a risk. GRI 308-1, GRI 414-1 Evaluation according to environmental criteria All our suppliers go through defined processes in which they are evaluated according to various criteria. A distinction is also made for technologies and production processes with higher or average environmental impacts. For suppliers with a higher environmental impact, certification according to ISO 14001 (or the Eco-Management and Audit Scheme – EMAS) is required. Alternatively, Festo will conduct an environmental audit at the supplier’s premises. Due to Covid-19, no environmental audits of suppliers could be carried out in 2022. For dealers (distributors), the certification of the actual manufacturer is used. GRI 308-2 Evaluation according to social aspects The existing supplier self-assessment was supplemented in 2022 by the requirements of the Act on Corporate Due Diligence in Supply Chains (LkSG), which entered into force on 1 January 2023. GRI 308-2, GRI 414-1 This way, environmental and social standards receive a higher weighting when selecting suppliers. Both the updated supplier self-assessment and the new weighting have led to the replacement of the previous sustainability audit with on-site inspections focusing on human rights and associated environmental rights. At the end of 2022, the self-disclosure form was sent to 850 suppliers for review of the social criteria. GRI 414-1, GRI 414-2 Dealing with conflict minerals In order to support the sustainable use of conflict minerals, we disclose the smelters from which the raw materials for our products come within the framework of the Responsible Business Alliance. By filling out the Conflict Minerals Reporting Template (CMRT), we are helping to create the necessary transparency to continuously increase the proportion of certified smelters worldwide. Festo expects its business partners to comply with all applicable regulations regarding conflict minerals. For more information, go to: www.festo.com/compliance 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. 7.3 Human rights in the supply chain The Festo value chain The Festo supply chain The supply chains for production at our plants are organised internationally and include a large number of direct suppliers and subcontractors. In 2022, the total was 2,500 suppliers for 70,000 parts delivered. GRI 2-6, GRI 304-2 Preparations for the Act on Corporate Due Diligence in Supply Chains Respect for human rights and related environmental legislation throughout our supply chain has been our mission for years. In 2022, the systematic approach to respect human rights and related environmental rights, including clear responsibilities, was established. This is how Festo complies with the company’s due diligence. The interdisciplinary working group ‘Human Rights@ Festo’ derived relevant guidelines, preventive measures and processes from the requirements of the Act on Corporate Due Diligence in Supply Chains and developed a risk-based approach to determining the human rights risk. From 2023, the members of the working group will meet quarterly as part of a human rights committee. Raw materials and supplies Research and development Customers Didactics and/or factory and process automation Customers of customers Didactics and/ or factory and process automation Further processing Production and logistics 110 111 Festo SE & Co. KG Sustainability Report 2022 Festo SE & Co. KG Sustainability Report 2022 1. BLUE WORLD 2. STRATEGY AND MANAGEMENT 3. CO2 REDUCTION AND ENERGY EFFICIENCY 4. TECHNICAL EDUCATION 5. ENVIRONMENT, RESOURCE AND MATERIAL EFFICIENCY 6. PEOPLE AT FESTO 7. ETHICS AND GOVERNANCE 8. GRI-INDEX 9. REPORT PROFILE
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