Environmental and social standards for suppliers Obligating and monitoring our suppliers to ensure they comply with social and environmental standards is part of our corporate responsibility. The supplier qualification process was further developed in 2023 so that every new supplier (100 percent) is assessed and audited according to environmental and social standards. GRI 308-1, GRI 414-1 All suppliers must sign to confirm compliance with our Code of Conduct for Business Partners. By signing this agreement, our suppliers also undertake to demand compliance with these agreements from their sources of supply. If these responses are unsatisfactory, appropriate action will be taken. Festo is careful not to accept any suppliers that pose a risk. GRI 308-1, GRI 407-1, GRI 408-1, GRI 409-1, GRI 414-1 Assessment according to environmental criteria All of our suppliers go through defined processes in which they are evaluated according to various criteria. A distinction is also made between technologies and manufacturing processes with a higher or average environmental impact. Suppliers with a higher environmental impact are required to be certified in accordance with ISO 14001 (or the Eco-Management and Audit Scheme, or EMAS for short). Alternatively, Festo carries out an environmental audit on the supplier’s premises. Following the suspension in the previous year due to the coronavirus pandemic, these were carried out again in 2023. In the case of dealers (distributors), the certification of the actual manufacturer is used. GRI 308-2 Evaluation according to social aspects In 2023, the supplier self-assessment of protected goods relevant to the German Supply Chain Act was expanded to include a questionnaire for an on-site inspection. The pilot phase of the on-site verification was successfully conducted with potentially risky suppliers in China. In addition to the preventive measures, a campaign was launched to raise awareness of social and environmental aspects within the global purchasing organization. Topics included a keynote on sustainability and a keynote speech from the WE Program. In addition, a training concept was developed for buyers, supplier developers, and supply chain experts. GRI 308-2, GRI 410-1, GRI 414-1 As part of the expansion of the risk analysis to include non-production material (NPM), a further 100 suppliers were identified who were given an extended supplier self-assessment. In addition, with the help of the supplier self-assessment, information on potential conflict materials was requested from all specified suppliers. 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 as part of our responsible business. By filling in the Conflict Minerals Reporting Template (CMRT), we help create the necessary transparency to continuously increase the proportion of certified smelts Festo is committed to the values of the United Nations International Charter of Human Rights and expects the same from its business partners. The Festo value chain. GRI 2-6 6.3 Human Rights in the Supply Chain Raw materials and materials Research and development Customers Didactic and/or factory and process automation Customers of customers Didactic and/or factory and process automation Recycling Production and logistics worldwide. Festo expects its business partners to comply with all applicable regulations on conflict minerals. Find out more at www.festo.com/compliance The Festo supply chain The supply chains for production at our plants are organized internationally and include a large number of direct and indirect suppliers. In 2023, this total amounted to around 2,300 suppliers for 68,000 parts delivered. GRI 2-6, GRI 304-2 Systematic approach to respecting human rights and related environmental rights The Festo Group meets its corporate duty of due diligence with operational risk management for the global protection and safeguarding of human rights and environmental obligations along the value chain. Responsibility for monitoring lies with the Human Rights Officer of the Festo Group. The Human Rights Committee was established in 2023. It is headed by the Human Rights Officer and consists of representatives from Strategic Purchasing, Corporate Compliance, Corporate Risk Management, Global Health and Safety, Human Resources, and Sustainability. The members are responsible for implementing the measures and for continuously improving the global systematic approach. GRI 2-23, GRI 414-1 110 111 1. Blue World 2. Strategy and Management 3. Climate Protection and Resource Efficiency 4. Technical Education 5. People at Festo 6. Ethics and Governance 7. GRI Index 8. Report Profile Festo SE & Co. KG Sustainability Report 2023 Festo SE & Co. KG Sustainability Report 2023
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