Annual Report 2024

Annual Report 2024

ESRS S2 – Workers in the Value Chain

  • Workers in the Value Chain

Material Impacts, Risks and Opportunities

As part of our materiality assessment, we identified negative impacts on workers in our upstream value chain. To make our products available to customers worldwide, our business model relies on a globally structured supplier network as well as the workforce of our business partners. In this context, negative impacts can occur in the areas of working conditions (working time, adequate wage, freedom of association, collective bargaining) and in the area of equal treatment and opportunities for all (measures against violence and harassment in the workplace). Particularly for workers in the upstream value chain engaged in agricultural raw material extraction and in labor-intensive services, violations of other work-related rights (child labor or forced labor) can constitute potential negative impacts.

A detailed overview of all identified impacts, risks and opportunities and the methodology applied for the double materiality assessment can be found in the chapter “ESRS 2 — General Disclosures.”

We see it as our responsibility to collaborate in our procurement strategy with business partners who share and demonstrably adhere to our corporate governance principles. Our goal is to minimize material negative impacts — this applies to our own sites and employees worldwide, as well as to workers throughout the value chain. For this purpose, the guidelines, processes, measures, complaint channels and targets explained in this chapter are developed and pursued.

In view of our global procurement of materials and services, the following groups of workers in particular may be subject to material impacts:

  • Workers of subcontractors who perform activities at Beiersdorf production sites without being directly employed by Beiersdorf;
  • Workers of direct business partners in manufacturing industries (such as the packaging industry) or in service industries;
  • Workers engaged in labor-intensive service activities such as Value Added Services (VAS), i.e. services which go beyond mere product delivery and enhance brand presence;
  • Workers in the upstream supply chain involved in raw material extraction, such as the palm oil or natural rubber industries.

Beiersdorf recognizes that negative impacts on workers in the value chain can be both systemic and isolated incidents. Systemic impacts primarily arise from the procurement of goods or services in countries and industries with poor legal human rights standards. However, isolated incidents are also possible, and often result from the misconduct of individuals or decision-makers at direct or indirect business partners.

We identify business-specific risks and potential impacts by means of an annual risk analysis. In this process, the countries with which Beiersdorf has business relationships are assessed against internationally recognized indices and information sources. This approach links country-specific risks to our existing supplier base.

Additionally, risk profiling is conducted at the level of individual business partners. To achieve this, we use external  “EcoVadis IQ” software to generate a risk categorization for all procurement-relevant business partners. In the Consumer Business Segment, this process is applied to all business partners with an annual business volume exceeding €50,000. tesa applies a risk profiling approach independently of business volume, evaluating all active suppliers from the past two years. “EcoVadis IQ” uses specifically defined industry and sector risks, combined with information from a global sustainability performance database. We further expand this analysis with our own procurement data. Based on this risk categorization, we establish a prioritization as the foundation for designing our measures.

In the procurement categories of renewable materials, the Consumer Business Segment conducted a risk analysis in collaboration with an external consultancy firm in 2020. This analysis identified critical product groups that require special attention. Details are provided in the chapter “ESRS S3 — Affected Communities.”

Policies Related to Workers in the Value Chain

We define responsible sourcing as a supply chain in which all relevant laws are adhered to, human rights are respected, natural ecosystems are protected, climate effects are mitigated, and positive developments are promoted in the countries of origin of our materials and services. Fair working conditions and respect for the human rights of workers in our value chain are of particular importance in this context.

To achieve this, we have established corporate policies aimed at ensuring compliance with legal requirements and internationally recognized standards. These policies incorporate not only relevant legislation but also frameworks such as the United Nations’ “Universal Declaration of Human Rights,” the conventions of the International Labour Organization (ILO), the “Guidelines for Multinational Enterprises” of the Organisation for Economic Co-operation and Development (OECD), the ten principles of the UN Global Compact (UNGC), and the United Nations’ “2030 Agenda for Sustainable Development.” We also comply with country-specific regulations and official governmental requirements.

The following sections outline the policies that address the main identified impacts on workers in our value chain.

Consumer

Consumer

Code of Conduct for Business Partners

Our “Code of Conduct for Business Partners” (CoC) addresses the material negative impacts we have identified on workers in our value chain. The CoC focuses on four critical areas:

  1. Human rights and labor standards
  2. Workplace health and safety
  3. Corporate integrity
  4. Environmental protection

The CoC obliges our business partners to prohibit practices such as child labor, forced labor, human trafficking, discrimination, restrictions on freedom of association, and violations of environmental and occupational safety regulations. It also mandates the provision of grievance mechanisms. The CoC was last updated in 2023.

Signing the CoC is mandatory for direct business partners with an annual business volume exceeding €50,000. The document also requires business partners to communicate the CoC’s content to upstream partners, irrespective of industry or region. This also means ensuring that workers in precarious procurement situations, such as subcontracting, are protected by the same guidelines.

The CoC includes a foreword from the Vice President (VP) Corporate Sustainability, who also serves as our internal Human Rights Officer, and the VP Procurement. These roles are responsible for overseeing progress monitoring.

Declaration of Principles on Upholding Human Rights

Our “Declaration of Principles on Upholding Human Rights,” which applies to Beiersdorf employees and business partners, emphasizes responsible sourcing strategies to ensure worker safety and health, as well as environmental protection across the value chain. The document explicitly prohibits child labor, forced labor, and human trafficking. It details our approach to human rights protection, covering such areas as:

  • Setting up risk management,
  • Annual risk analysis,
  • Establishing preventative measures in our own operations, at direct and (where applicable) indirect suppliers, including evaluations of their effectiveness,
  • Remediation measures in our own operations, at direct and, where applicable, indirect suppliers,
  • Description of identified, prioritized risks, and
  • Description of expectations on employees and suppliers concerning human and environmental rights.

The provision of a grievance mechanism is also addressed in this declaration of principles to systematically prevent violations and to provide workers with the opportunity to raise their voices. The declaration was most recently updated in December 2024.

Beiersdorf makes the “Declaration of Principles on Upholding Human Rights” available to the public and business partners, regardless of region or procurement category, via the download center on the company’s website. Downstream business partners, such as retailers, can also receive the current statement upon request, along with an explanation of measures Beiersdorf has undertaken to fulfil its due diligence obligations under the German Supply Chain Due Diligence Act.

The VP Corporate Sustainability (who is also the Human Rights Officer) is the signatory of this statement. The Sustainability function is therefore responsible for ensuring that the content is up to date and that business partners comply with it.

Responsible Sourcing Policy

The “Responsible Sourcing Policy” of the Consumer Business Segment, described in detail in the chapter “ESRS S3 – Affected Communities,” also requires compliance with international, national, and local human rights legislation and regulations.

tesa

tesa

Code of Conduct for Suppliers

The “Code of Conduct for Suppliers” (CoCS) of the tesa Business Segment similarly addresses material negative impacts on workers in our value chain. The CoCS primarily focuses on the following five critical areas:

  1. Corporate integrity
  2. Human rights and labor standards
  3. Occupational safety
  4. Environmental protection
  5. Grievance mechanisms

The CoCS requires all tesa suppliers, regardless of the business volume, to support and respect international human rights and adhere to relevant guidelines and standards. Child labor, forced labor, discrimination, restrictions on freedom of association, violations of working time and wage regulations, and violations of environmental and occupational safety regulations are not tolerated. The topic of human trafficking is not covered. Suppliers are required to pass on the CoCS specifications to their own suppliers. In this way, workers in potentially precarious procurement situations, such as subcontracting, should be protected by the same directive.

At tesa, the Chief Sustainability Officer (also Human Rights Officer) and the VP Global Procurement support the implementation of the CoCS. Both functions are responsible for monitoring and controlling progress.

Human Rights Policy Statement

Through tesa’s “Human Rights Policy Statement,” the company commits to strengthening human rights and preventing human rights violations both within its own operations and in its dealings with business partners. The statement outlines our approach to protecting human rights and adhering to environmental standards. It also addresses the provision of a grievance mechanism.

The tesa “Human Rights Policy Statement” is available online to the public and business partners, regardless of region or procurement category. The entire tesa Executive Board has signed the statement, making it collectively responsible for its implementation and compliance.

Responsible Sourcing Policy

The development of a corresponding policy for the tesa Business Segment is planned for 2025. This policy will form part of a broader “Sustainable Procurement Strategy,” which is currently under development.

Processes for Engaging with Workers in the Value Chain

Beiersdorf aligns its measures to protect workers in the value chain with input from various civil society organizations (including NGOs and “Responsible Sourcing” initiatives in which Beiersdorf is an active member). This approach ensures that the interests of the affected workers are considered in our due diligence processes as effectively as possible through these intermediaries. The VP Sustainability is responsible for this consideration. The frequency of such consultations varies and usually takes place during the planning or continuation phases of field projects or after an audit has been conducted:

  • Field projects conducted in the palm oil supply chain with local smallholders were planned and implemented in collaboration with NGOs such as the “World Wildlife Fund” (WWF), a strategic partner of Beiersdorf. These projects aim to counteract the material impacts such as child and forced labor in the palm oil supply chain. Details are provided in the chapter “ESRS S3 — Affected Communities.”
  • Our field project in the shea butter supply chain was planned and implemented in collaboration with the “Global Shea Alliance” (GSA) and our direct business partner AAK. Over five years, the project aims to support 10,000 shea collectors in Ghana and Burkina Faso. Women traditionally manage the harvesting and production of shea butter, securing their livelihoods and social status. This initiative seeks to reduce the material impact of discrimination and promote women’s rights in the shea butter supply chain. Our collaboration with the GSA and AAK ensures the project is tailored to the specific conditions and needs of the target group.
  • These projects include on-site training and promotion of local community development (e.g., improved access to education), and support for smallholders in adopting sustainable agricultural practices, such as reducing pesticide use, conserving water, and improving soil health. Collaboration with NGOs ensures that local knowledge, particularly regarding vulnerable groups or those working under precarious conditions in the upstream supply chain, is incorporated into decision-making.
  • In 2020, Beiersdorf worked with a “Responsible Sourcing” consultancy firm to enable informed decision making on prioritizing critical procurement categories of renewable materials according to sustainability criteria. The consultancy process incorporated the perspectives of particularly vulnerable groups into the risk analysis, thereby identifying impacts and defining priorities accordingly.
  • Beiersdorf requires written confirmation of compliance with its “Code of Conduct for Business Partners” (see section “Policies related to Workers in the Value Chain”) from its direct business partners. At the same time, we want to work closely with business partners to understand their challenges and provide targeted support. This includes practical, free training on human rights and environmental due diligence, to particularly support small or medium-sized business partners. Completing the training helps prevent negative impacts on workers and emphasizes the importance of whistleblowing mechanisms, enabling workers to raise their voices and contribute views or suggestions for improvement.
  • As a member of the UN Global Compact, we are part of a broad network of government bodies, investors, research representatives and civil society organizations in which the private sector can take concrete measures to operate responsibly, protect human rights and fulfil obligations to society. The organizations also participating in the network, particularly from civil society, represent the perspectives of workers.

Compliance with these commitments is monitored through sustainability assessments and social audits. Audits conducted according to the standardized 4-pillar principle of the “Sedex Members Ethical Trade Audit” (SMETA) include evaluations of the supplier management of direct business partners, as well as interviews with their workers and those employed by subcontractors. This ensures that workers in the value chain are aware of their rights, that freedom of association is not suppressed, and that there is a framework in place for reporting violations within a protected environment. Where irregularities are identified, corrective actions are agreed to improve working conditions.

To provide additional avenues for workers in the value chain to raise concerns or report suspected violations, Beiersdorf offers additional anonymous reporting channels, which are discussed in the following section.

Channels for Workers in the Value Chain to Raise Concerns

Beiersdorf offers various channels for both internal and external individuals to report compliance violations and concerns, including human rights violations. The procedure for handling such reports is also described in the chapter “ESRS G1 – Business Conduct.” Reports can be made regardless of whether the violations occurred within the company’s own operations or within its direct or indirect value chains.

The available channels include the BKMS®-based whistleblowing system, “Speak up. We care.” for the Consumer Business Segment and “Your voice. Our bond.” for the tesa Business Segment. Employees and workers along the value chain have access to a protected, secure, and – where legally permissible – anonymous reporting system. In the Consumer Business Segment, the Human Rights Officer and the Head of Sustainability Strategy & Reporting are responsible for receiving and handling complaints related to risks and violations in the areas of human rights and environmental protection. At tesa, the Compliance Manager in Legal Affairs and the Head of Sustainable Procurement are responsible for receiving and handling complaints related to risks and violations in the areas of human rights and environmental protection.

In the reporting year, the following case of human rights violations relating to workers in the value chain was reported at one of our service providers via the  “Speak up. We care.” whistleblower system: An allegation relating to discrimination and the unlawful termination of an employment contract. The allegation was investigated internally and externally. The investigation did not uphold of the allegation.

Additionally, we provide an email address for reporting concerns: incidents_cases@beiersdorf.com. Both this email address and the whistleblowing platform are communicated through the “Code of Conduct for Business Partners” along the value chain. Business partners are required to confirm, by signing the Code of Conduct, that they either promote Beiersdorf’s reporting channels within their own organizations or prefer to provide their own reporting channels. Moreover, the free training offered to business partners, as mentioned earlier, emphasizes the importance of whistleblowing mechanisms for workers, enabling them to raise their voices and share views or suggestions for improvement. Beiersdorf’s internal contact points can also be identified and contacted via the Beiersdorf website: Organizational Structure & Contact on Beiersdorf Sustainability Website.

Finally, for complex risk supply chains, such as those involving palm oil, we work closely with direct raw material suppliers and other stakeholders. Through multi-stakeholder initiatives like the “Roundtable on Sustainable Palm Oil” (RSPO) and the “Action for Sustainable Derivatives” (ASD) (see chapter “ESRS S3 —Affected Communities”), we collectively investigate reported concerns, verify their validity, and collaboratively establish appropriate measures. No effectiveness check is carried out for the remedial measures taken.

Actions Related to Workers in the Value Chain

Beiersdorf has various processes and actions in place to prevent negative impacts on workers in the value chain. The measures address the following material topics: working conditions (working time, adequate wages, freedom of association, collective bargaining), equal treatment and opportunities for all (measures against violence and harassment in the workplace) as well as other work-related rights (child and forces labor). The foundation for these measures is formed by our “Code of Conduct for Business Partners” (Consumer) and “Code of Conduct for Suppliers” (tesa) (see section “Policies related to Workers in the Value Chain”) as well as the previously mentioned “EcoVadis IQ”-based risk assessment process.

For direct business partners, Beiersdorf also undertook the following measures during the reporting year:

SMETA on-site audits for immediate business partners with high-risk profiles

Description: If business partners are classified as high-risk, the implementation of an on-site audit according to the “SMETA” 4-Pillar Protocol should be demonstrated. This measure aids in identifying actual negative impacts on workers in the value chain. The “SMETA” standard is a widely used social audit covering four core areas: working conditions, health and safety for employees, environmental performance, and business ethics. To ensure impartial evaluation, audits are conducted by independent auditors. “Sedex,” the online platform managing completed audits and the administrator of the “SMETA” standard, collaborates with a list of globally operating and accredited auditing companies that must undergo certification for “SMETA” 4-Pillar Audits.

Scope: Global

Time horizon: Ongoing

Expected outcome: Irregularities are discussed with the responsible personnel at production sites, and corresponding corrective actions, including a timeline for implementation, are determined. Finally, these measures are verified by the original auditors. Once the measures are confirmed, the process concludes. If auditors reject the measures, business partners must revise their actions. This continuous improvement process ensures that irregularities are progressively identified, documented, and resolved.

“EcoVadis” assessments for immediate business partners with medium-risk profiles

Description: Business partners classified as medium-risk are required to undergo a sustainability assessment via the online platform “EcoVadis.” This assessment provides insight into the likelihood of negative impacts occurring. The “EcoVadis” evaluations, which are already in use, focus on 21 sustainability criteria divided into four thematic areas: environment, labor and human rights, ethics, and sustainable procurement. The criteria are based on international sustainability standards such as the ten principles of the UN Global Compact, ILO conventions, Global Reporting Initiative (GRI) standards, ISO 26000, the CERES Roadmap, and the UN Guiding Principles on Business and Human Rights. To ensure high data quality, the responses provided by business partners are evaluated by specially trained “EcoVadis” analysts and converted into a scorecard.

Scope: Global. To standardize the rollout of sustainability assessments via “EcoVadis,” Beiersdorf established a global “Procurement Support Center” in 2023. At tesa, this is covered by the Sustainable Procurement department.

Time horizon: Ongoing

Expected outcome: If the overall result falls below a certain threshold, we engage with the business partner to implement the prioritized improvement measures identified by the system.

To monitor progress on both measures, the Procurement function has defined internal performance indicators with a multi-year scaling system. These metrics are tracked monthly.

Consumer

Consumer

The following measures are in place within the Consumer Business Segment to promote responsible supplier management in our operations and prevent negative impacts on workers in the value chain:

Supplier assessment based on sustainability criteria

Description: Social and environmental sustainability criteria are already part of the annual supplier assessment for strategic suppliers and form an integral part of the supplier management cycle.

Scope: Global, strategic suppliers

Time horizon: Annually

Expected outcome: Increased internal awareness and the establishment of ongoing dialogue about social and environmental sustainability with strategic suppliers.

Training on human rights due diligence for procurement staff

Description: In 2023, our procurement staff were trained on the requirements for fulfilling human rights due diligence obligations.

Scope: The training was delivered as live digital sessions for all procurement teams and was made available as a recording for later review.

Time horizon: 2023

Expected outcome: Enhanced understanding of due diligence processes in supplier management.

E-learning on human rights

Description: A mandatory e-learning course on human rights was launched during the reporting year.

Scope: Global

Time horizon: Ongoing

Expected outcome: Training employees on fundamental due diligence processes and emphasizing the importance of the “Code of Conduct for Business Partners.”

Free training for business partners

Description: Support for small or smaller business partners in establishing human rights and environmental due diligence obligations through free training provided on the Beiersdorf website.

Time horizon: Ongoing

Expected outcome: Guidance as an optional offering for business partners.

Measures beyond direct business partners

The following initiatives go beyond direct business partners and aim to protect additional workers in the value chain:

Sustainable palm oil procurement

Sustainability criteria are integrated into the procurement of palm oil-based raw materials, guided by the requirements of international initiatives like RSPO certifications. Additional details on this and on community engagement in these supply chains, such as smallholder projects or financial support for local NGOs, are provided in the chapters “ESRS S3 — Affected Communities” and “ESRS E4 — Biodiversity and Ecosystems.”

AI-based risk screening with “Sphera”

Description: To be informed early about potential negative impacts in our value chain, Beiersdorf continuously utilizes AI-based risk screening by “Sphera.” This tool maps Beiersdorf’s supply networks and monitors them by scanning various data sources and news outlets. If an identified risk affects a business partner, one of their subsidiaries, or a third company known in the supply network, Beiersdorf receives an alert via a customized dashboard.

Scope: Global

Time horizon: Ongoing

Expected outcome: Awareness of incidents within monitored supply chains.

All described measures require close cross-functional coordination, where responsibilities are distributed, but the content is largely developed collaboratively. If a business partner repeatedly exhibits non-compliance, fails to cooperate on corrective actions, or is involved in severe violations such as child or forced labor, the business relationship may be questioned and, if necessary, terminated.

The overarching responsibility for implementing Beiersdorf’s human rights program lies with the Human Rights Officer, appointed by the CEO. Best practices from industry associations such as “AIM-Progress” are integrated into these efforts. This initiative unites Beiersdorf with over 40 leading manufacturers in the “FMCG” industry to collaboratively advance sustainable procurement across the sector.

Additionally, the strategic partnership with WWF supports Beiersdorf’s holistic sustainability approach. This collaboration helps incorporate ecological and, above all, social aspects into strategy evaluations, ensuring that the interests of affected groups are considered as effectively as possible in due diligence processes. Direct dialogue with companies of comparable size or position also plays an important role in assessing whether our measures are appropriate and effective.

tesa

tesa

New Sustainable Procurement division

Description: In late 2023, tesa established the “Sustainable Procurement” division within “Global Procurement” and expanded it with additional staff throughout 2024. The “Procurement Service Hub” also supports the implementation of these processes and measures. Furthermore, “Global Procurement” has taken on the role of an ESG expert for the supply chain.

The “Sustainable Procurement” department, embedded within the procurement function, was specifically created to develop and implement a responsible and supply chain-compliant purchasing strategy. In close collaboration with other involved departments, it ensures that all strategic decisions align with tesa’s sustainability objectives.

Scope: Global

Time horizon: Ongoing

Expected outcome: The implementation of a responsible and supply chain-compliant purchasing strategy and that all strategic purchasing decisions are made in accordance with our sustainability strategy and its goals. Business partners have implemented sustainable practices in their own business practices.

Consumer und tesa

Review and further development of these actions

The review of our measures is particularly important when tensions arise between business pressures and potential negative impacts. Strategic decisions regarding future business directions, such as mergers and acquisitions, can affect workers in our value chains. Similarly, changes to our product portfolio, such as reformulating product formulas, may exclude high-risk raw materials and replace them with alternative ingredients. At the same time, the transition to a higher proportion of renewable materials could increase our dependence on agriculturally produced inputs, potentially impacting workers along the supply chain for these materials. Beiersdorf is aware of these trade-offs and incorporates them into the design of its measures.

Overall, our actions with regard to workers in the supply chain are effective, as only two instances of human rights violations were investigated through our risk screening in the reporting year, which were expected to have potential negative impacts on workers in our upstream and downstream value chain:

  • One case of forced labor was identified in the cultivation of agricultural raw materials. The incident was investigated and improvement measures were implemented on site.
  • A business partner was accused of not observing statutory rest breaks and failing to announce shift schedules in a timely manner. However, the investigation did not find any confirmation of the allegation.

No incidents were reported in the tesa business segment in the reporting year. Beiersdorf provides appropriate means and resources to deal with identified incidents with highest priority. The functions responsible for implementing all of the aforementioned measures, such as the sustainability department or purchasing, were supported at an operational level by additional employees and other resources in the reporting year. These include, for example, participation in external webinars and other training measures. Additional financial and advisory resources were made available for digitalization projects to develop and implement relevant processes.

Management further underscores the importance of these topics through regular updates and communication with the executive board and oversight committees.

Targets Related to Workers in the Value Chain

Beiersdorf has established targets aimed at managing significant risks and impacts on workers in the value chain to prevent such impacts from occurring. These goals do not address positive impacts on workers.

Consumer

Consumer

The Consumer Business Segment has set the following targets for each reporting year:

Coverage of 90% of all expenditures with signed “Code of Conduct for Business Partners”

Description: Over 90% of Beiersdorf’s global expenditures should be with suppliers who have signed our “Code of Conduct for Business Partners.” This goal applies regardless of the version of the Code of Conduct, including the updated 2023 version. In 2024, the rate was achieved.

Scope: Global, excluding Chantecaille and La Prairie

Assumption: Business partners who sign our Code of Conduct are made aware of our environmental and human rights requirements, committing to respect these standards and avoiding negative impacts on workers.

Time horizon: Ongoing

Target monitoring: Progress against the metrics is continuously collected and shared monthly at a global level with the Vice Presidents Procurement and Sustainability. In addition, relevant members of the Executive Board are informed quarterly. Relevant data derives from internal master data and contract management systems.

Target achievement: 91%

Involvement of stakeholders in target setting: The perspectives of workers in the value chain or their legitimate representatives were not included in the target setting.

Coverage of 100% of all business partners with a business volume exceeding €50,000 through risk screening

Description: All Beiersdorf business partners globally with an annual business volume exceeding €50,000 should have a risk profile generated through the external platform “EcoVadis IQ” during the reporting year. Business partners falling below this threshold were excluded from this goal. In 2024, the target was achieved.

Scope: Global, excluding Chantecaille and La Prairie

Assumption: Supplier risk profiles enable prioritization and focused enactment of the measures described above.

Time horizon: Ongoing

Target monitoring: Progress against the metrics is continuously collected and shared monthly at a global level with the Vice Presidents Procurement and Sustainability. In addition, relevant members of the Executive Board are informed quarterly. Relevant data derives from internal master data systems and the aforementioned external platform “EcoVadis IQ.”

Target achievement: 100%

Involvement of stakeholders in target setting: The perspectives of workers in the value chain or their legitimate representatives were not included in setting the target.

The target setting process follows a multi-stage approach. Operational teams from Procurement and Sustainability propose a target, which is reviewed with the Head of Sustainability Strategy & Reporting and the Director of Procurement Excellence. The proposal is then presented to the Vice President Sustainability and the Vice President Procurement for finalization and approval.

tesa

tesa

The tesa Business Segment has set the following targets:

Sustainability rating for all suppliers of 45+

Description: By 2030, at least 80% of the total procurement volume will be with suppliers who achieve an EcoVadis score of 45 or higher and meet our standards for responsible supply chains.

Scope: Global

Assumption: Business partners who participate in EcoVadis disclose the extent to which sustainability management is integrated into their business activities and processes and whether they meet our requirements for a responsible supply chain.

Time horizon: Ongoing

Target monitoring: Progress against the metrics is continuously collected and shared monthly with the Vice President Global Procurement.

Target achievement: 56%

Involvement of stakeholders in target setting: The perspectives of workers in the value chain or their legitimate representatives were not included in the target setting.

Signing of Code of Conduct for Suppliers

Description: By 2030, 100% of global expenditures will be with suppliers who have signed the “Code of Conduct for Suppliers.”

Scope: Global

Assumption: Business partners who sign our CoC are familiarized with our environmental and human rights requirements and sign that these will be respected and that there will be no negative impact on workers.

Time horizon: Ongoing

Target monitoring: Progress against the metrics is continuously collected and shared monthly with the Vice President Global Procurement.

Target achievement: 74%

Involvement of stakeholders in target setting: The perspectives of workers in the value chain or their legitimate representatives were not included in the target setting.

At tesa, the Chief Sustainability Officer, who also serves as the internal Human Rights Officer, and the Vice President Global Procurement are responsible for setting these goals.

ESG
ESG stands for Environmental, Social, and Governance, referring to criteria used to assess companies' sustainability and social responsibility, as well as their management and governance practices.
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