S1 Zeppelin workforce

Strategy

The identified impacts, risks, and opportunities relate to all employees, regardless of their gender, position, activity, or group affiliation. The analysis considered the company's employees but not temporary workers, freelancers, or self-employed individuals working on behalf of Zeppelin. Work-related accidents in the area of "health and safety" were identified as a significant negative impact for Zeppelin's employees.

Zeppelin's HR strategy considers internal and external challenges and is part of the global group strategy. The HR strategy focuses on three areas: Attract, Develop, and Retain. These areas are supported by a wide range of initiatives and programs. The HR organization is divided into independent HR departments. Depending on the company's size, there is also an HR development department in addition to operational HR management. Group HR Development is responsible for creating and developing the HR strategy, as well as overarching topics related to leadership and management development. These measures are supplemented by company-specific personnel development processes. The CHRO function in the Group Management Board is responsible for overall leadership of the HR areas, including employee engagement, HR development, compliance and data privacy, diversity, equal opportunities and inclusion, and IT and digitalization.

Management of impacts, risks and opportunities

Group management is in constant dialogue with the workforce. The goal is to promote continuous improvement through feedback, discussions, and collaboration across countries, companies, and departments. To obtain feedback from employees on topics impacting employee retention, satisfaction, and motivation, Zeppelin piloted the anonymous and voluntary Z VOICE Pulse employee survey in 2024. This modern, short survey format, known as Pulse Checks, is an improvement on the previous Z VOICE employee survey. The goal is to gauge employee sentiment every six months to promptly implement improvements. The surveys are supported by a follow-up process involving centralized and decentralized measures, including training and exchange formats for various target groups. Z VOICE Pulse will continue and be rolled out globally in 2025.

In addition to regular employee surveys, 360° feedback for managers supplements Zeppelin's survey landscape. This development tool enables managers to receive individual feedback from colleagues, superiors, and direct reports based on Zeppelin's management principles. Additionally, employees who leave the company voluntarily are asked to participate in an anonymous survey about their time at Zeppelin and their reasons for leaving. The aim is to identify areas where the company can improve and develop targeted strategies to strengthen employee loyalty.

In Germany and Austria, the Works Council is involved early on in matters requiring co-determination to ensure constructive and transparent collaboration. At the group level, the Group Works Council regularly discusses personnel issues to develop joint solutions that best represent the interests of employees. Close cooperation with the respective Works Councils at the locations also contributes significantly to the success of HR measures. In countries without formal employee representation, employee participation is promoted through regular surveys, feedback meetings, and open communication formats to integrate employee concerns into decision-making processes.

The online whistleblowing system, Trust Line, is available to all employees and external parties to submit anonymous information, complaints, and reports of possible violations of laws, regulations, and guidelines. More information can be found in the Governance Information section.

Zeppelin implements applicable laws and regulations, respects internationally recognized standards, and works to prevent human rights and environmental risks and violations in its business activities. Zeppelin also provides affected parties with access to remedies and grievance channels. These principles are reflected in the central policies described under ESRS 2. Noteworthy are the Code of Conduct for Business Ethics and Compliance and the Declaration of Principles on Respect for Human and Environmental Rights. These documents express responsibility in the context of global business activities and apply to the entire value and supply chain, as well as to all employees worldwide. During the reporting period, the Zeppelin Group was not aware of any cases or activities involving a significant risk of child, forced, or compulsory labor at its sites.

Additionally, several Group guidelines and work agreements, established between the Zeppelin GmbH management and the Zeppelin GmbH Group Works Council, apply to all Zeppelin GmbH employees and those of its majority-owned domestic subsidiaries and sub-subsidiaries. These include the group work agreements "Mobile Working," "Introduction of the Workday Modules Performance, Potential Identification, Talent, Succession, and Learning," "Subsidy for Preschool Childcare," and "LinkedIn Learning," which can be accessed in the internal guidelines center.

Policies and actions: Secure employment

Zeppelin benefits from stable employee tenure. Therefore, we pursue a long-term employment strategy and avoid short-term employment as much as possible. We promote long-term career development through various programs, such as the Z Academy for prospective and experienced managers, as well as Z Compass and Z Talent, which identify employees' potential. Additionally, every new hire is carefully considered, and employees are generally offered permanent contracts. We prioritize a positive employer image to attract new talent and retain existing employees. Various employer seals and certifications confirm Zeppelin's status as an excellent employer: "Fair Company" (Handelsblatt), "Employer of the Future" (German Innovation Institute for Sustainability and Digitalization), "Top Company 2024" (Kununu), and "Germany's Most Coveted Employer" (F.A.Z. Institute).

Policies and actions: Work-life balance

In order to reconcile work and private life, Zeppelin relies, among other things, on flexible working time models such as part-time or partial retirement, which can be individually adapted to the needs of employees. The Group company agreement "Mobile Working" contributes to the promotion of work-life balance and increases the flexibility and modernity of the company, promotes a better work-life balance and contributes to greater employee satisfaction. The "audit berufundfamilie", according to which Zeppelin has been certified since 2018, also provides an important framework.¹ Zeppelin offers various support programs to help employees in different life situations in the best possible way. Employees of the German companies have access to the famPLUS service offering for childcare and parental advice, care advice and mental health. The German-language Z PARENTS program provides targeted support for parents before, during and after parental leave.

¹ The certification applies to Zeppelin GmbH, the German companies of the strategic business units Construction Equipment Germany & Austria, Rental and Power Systems.

Policies and actions: Training and skills development

The Zeppelin Group promotes the development of its employees' skills and lifelong learning. Group-wide talent management programs support identifying individual career opportunities in management and expert roles, as well as ensuring internal succession planning. The Z COMPASS process is a development center that identifies and develops high-potential employees. Additionally, Z TALENT is a global process that identifies high performers and high potentials, as well as engages in strategic succession planning for key positions at the senior and middle management levels, and for select expert roles. Alongside the group's development programs for employees and managers, which are based on management principles, the SBUs offer a portfolio of specialized training courses. These courses cover professional and personal skills and are tailored to the needs of the working environment and employees. Zeppelin has launched the Z NEXT trainee program for those starting an academic career. We also retain young talent through our dual study program and certified training program. Information is provided to all employees in connection with transition plans for key topics, and training and further education measures are carried out as required. Examples include training on new products, such as e-excavators and high-voltage systems.

Policies and actions: Diversity

Zeppelin takes a holistic approach to promoting diversity, equal opportunities, and inclusion (DEI). The company is developing a corporate culture that fosters tolerance, mutual respect, and equal opportunities. Zeppelin has a zero-tolerance policy toward any form of discrimination. The company explicitly encourages and promotes different experiences and views based on age, nationality/ethnic origin, gender, sexual orientation, disability, religion/belief, life plans, and other characteristics to create authenticity and initiate new developments. These values are anchored in both Zeppelin's Code of Conduct and the management's declaration for diversity, equal opportunities, and inclusion. Zeppelin is a member of the Diversity Charter, a German employer initiative that promotes diversity in companies. The Zeppelin Group is also a founding partner of "Employers for Equality," a PANDA GmbH program promoting "gender, equality, and diversity" in companies. As a member company, Zeppelin is committed to equality and aims to drive progress in business and society. Zeppelin also supports the "Top Women BW" project, which aims to increase the number of women in management positions in Baden-Württemberg companies. Zeppelin founded the Z COLOURFUL initiative in 2020. It includes measures that focus on diversity, equal opportunities, and inclusion. The initiative supports adapting to a constantly changing world of work and promotes awareness of diversity as a critical success factor. To this end, Zeppelin holds events and campaigns in German and English to raise awareness of diversity, equal opportunities, and inclusion. Examples include events held on Diversity Day and training sessions throughout the year. Additionally, various employee networks provide a platform for employees to exchange ideas (e.g., the LGBTQI+ network PROUD@Zeppelin and the women's network Z NOW).

Policies and actions: Health and safety

The Zeppelin Group's declared goal is to prevent all work-related accidents and work-related illnesses (Vision Zero). The following basic principles, which are anchored in the Group guideline "Corporate Policy Integrated Management System," apply:

• Management and executives bear primary responsibility and serve as role models for safe and healthy work practices at Zeppelin. They implement measures to maintain and improve the long-term health and performance of all employees. All necessary resources (time, money, materials, and training) are made available for developing the work-related health and safety organization and its resulting measures;
•  All employees are obligated to prevent accidents, illnesses, and hazards at work for themselves and others through their behavior. They actively and consciously contribute to this goal in their daily actions. This means observing applicable work-related health and safety regulations at all times, wearing prescribed personal protective equipment, and using machines, devices, and work equipment as intended;
• All employees are encouraged to report faults and deficiencies, as well as submit potential improvements for a safe and healthy workplace. The goal is to continuously improve working conditions and steadily reduce accidents and work-related illnesses.

Zeppelin uses the ISO 45001-certified work-related health and safety management system to control its focus and achievement of goals, as well as to monitor and document progress. This management system covers around 61 percent of all Zeppelin Group employees in Germany in the reporting year. To ensure that Zeppelin's high standards are met abroad as well, the internal regulations are based on the existing management system. Procedural instructions regulate the processes and specifications for behavior in the event of work-related accidents, as well as their notification and reporting. In Germany, at each site with more than 20 employees, developments are documented and monitored in quarterly meetings of the work-related health and safety committee. Safety experts and company doctors are involved in this process. A risk assessment is conducted for each activity to identify potential hazards. In addition, inspections are carried out in all areas to identify risks and implement solutions. Internal auditors who undergo regular training reduce the risk of hazards through internal audits and site inspections. External service providers carry out audits and certifications of the sites. All employees take part in an annual training course to ensure they have the necessary knowledge and skills relating to health and safety at work. The respective managers are responsible for this. Effective work-related health and safety training can prevent workplace accidents, protect employees' health, and increase productivity by minimizing potential risks. Zeppelin offers two Germany-wide work-related health and safety training courses that cover job-specific topics. Zeppelin considers the safety of contractors and external personnel to be just as important as the safety of its own employees, so they are instructed before starting work. In addition to mandatory examinations, Zeppelin offers other voluntary work-related health services.

The Z FIT health initiative is a key component of the Zeppelin Group's workplace health promotion program, as well as those of other German companies. It includes various measures to maintain and improve employee health and well-being, such as presentations, check-ups, workshops, and activity sessions. The initiative aims to ensure a safe working environment, identify risks early on, and promote the long-term physical and mental health of our employees.

The following action plan presents relevant measures that can indirectly contribute to achieving objectives. These measures are based on best practices, scientific findings, and workforce feedback. The effectiveness of the listed measures and initiatives is tracked and evaluated through regular internal and external audits and employee surveys. Please note that the metrics on which the targets are based, such as length of service, resignation rate, health rate, and proportion of women, can only be directly influenced by overarching measures to a limited extent. Rather, these metrics are largely linked to factors in the immediate working environment, such as cooperation with the manager, team atmosphere, and perceived development opportunities. Personal circumstances can also significantly impact motivation, commitment, health, and a sense of belonging.

Progress 2024

Z VOICE Pulse: Regular inclusion of employee feedback

In October 2024, the short survey format Z VOICE Pulse was piloted with 3,300 Zeppelin employees. It is an evolution of the global employee survey, Z VOICE, and aims to obtain regular feedback from employees. This allows trends and patterns to be identified, enabling the continuous improvement of the employee experience. Pulse Checks focus particularly on topics related to employee engagement. Employee engagement describes their commitment and enthusiasm for their work and the company. Aspects such as corporate culture, the working environment, relationships with colleagues, and perceived development opportunities influence this. Seventy-six percent of Zeppelin employees who were invited participated in the survey. In the follow-up process, the results were analyzed at the group, company, and team levels, and measures were derived. Managers received support in the form of training courses and, if necessary, from the local HR department. Plans are in place to conduct the biannual survey in 2025 and extend it to other Zeppelin Group companies.

Developments in leadership and employee development

Zeppelin's key focus area is the qualification and further development of managers, as leadership quality significantly influences employee motivation, loyalty, and satisfaction. In 2024, the Leadership Gyms were introduced — an interactive format designed to promote and maintain a positive leadership culture in the long term. A total of three events were held, with nearly 160 managers from all SBUs in attendance. Additionally, 360° management feedback, incorporating the perspectives of managers, direct reports, and colleagues, was further implemented and firmly anchored in management development programs. In the area of further development and talent management, the "Ready to Rise" management development program for high-potential employees was modernized and successfully piloted with 25 participants. In the coming year, management development programs and career opportunities for experts will be optimized. Additionally, open training courses for all managers will be revised and offered in English. In 2024, a cross-SBU talent conference was piloted in HR for the first time. Building on this success, the first general, cross-professional Z TALENT conference will be held with all SBUs in 2025 to promote transparency and visibility of key positions and talent within the group.

Z FIT measures and actions 2024

As part of the Z FIT health initiative, there was a special focus on promoting mental health in 2024 because it is crucial for well-being, motivation, and resilience in everyday work life. Mental Health First Aid (MHFA) providers were trained to offer support during crises. A health week with presentations and activities raised awareness of the topic and was accompanied by a communication campaign featuring interviews with management and staff. JobRad was introduced as a new provider of company bike leasing in Germany. Additionally, regular offerings included the "Moving Break" and yoga for employees.

Z COLOURFUL actions in 2024

As part of the Z COLOURFUL initiative, various events and campaigns were held in 2024 to raise awareness of diversity, equal opportunities, inclusion, and work-life balance. For instance, these topics were integrated into the onboarding process through Z WELCOME events and an automatic e-learning course for new employees. To celebrate Diversity Day, a hybrid global event was held with the motto "Commonalities Connect — Differences Make Us Strong." The event featured a presentation and a panel discussion on diversity and inclusion. Companies followed up with additional activities. Additionally, four keynote speeches were held as part of the "Lunch & Learn" series, addressing neurodiversity, age diversity, reconciliation strategies for fathers, and financial independence. Zeppelin's management also published a statement on the Group website in the reporting year to express its clear stance against discrimination and in favor of diversity, equal opportunities, and inclusion. The networks were active in 2024 as well: Z NOW organized campaigns for International Women's Day, as well as a trade fair stand and presentations by Zeppelin employees at herCareer. Z PROUD participated in Munich's Christopher Street Day. Additionally, Z PARENTS initiated a network for (expectant) fathers, offering space for exchange, lectures, and suggestions for fathers. The sum of these work-life balance measures ultimately led to a successful re-audit of the "berufundfamilie" certification. Beyond the mentioned measures and campaigns, employees are regularly made aware of diversity, equal opportunities, and inclusion. The content is incorporated into management training and e-learning courses via Workday, and regular lectures from external partners are available to all employees.

Work-related health and safety: Raising awareness

Within the scope of the work-related health and safety management system, an in-house roadshow was launched throughout Germany in the reporting year on the topic of "Employer Duties and Managerial Responsibilities." The goal was to raise awareness among managers and identify areas for improvement in work-related health and safety. The work-related health and safety e-learning course achieved a 92 percent participation rate in the reporting year. Overall, the number of workplace accidents decreased compared to the previous year.

Targets and metrics

The definition of targets and the establishment of target values are based on external studies, historical company data, industry benchmarks, and anticipated developments related to labor market trends. These targets were established in collaboration with the Group Management Board and in accordance with Group guidelines. The metrics are reported annually to assess progress and are submitted to the Group Management Board. The selected targets address key issues such as diversity, work-life balance, training, and skills development.

The number of employees stated in the release does not include apprentices, employees on long-term sick leave, interns/trainees, dual students, or employees on unpaid leave, partial retirement during the release phase, or parental leave. Temporary workers and freelancers are also excluded. However, employees on maternity leave, leave of absence, or an employment ban are included. Unless otherwise stated, the reporting date is December 31 of the reporting year. The number of employees is stated in either heads (number of persons) or FTE (full-time equivalent). Information on external employees in accordance with S1-7 is not yet included in the report. To ensure a uniform approach and harmonized reporting, this consolidated sustainability statement uses the same calculation method for the number of employees as the management report.

Secure employment

Zeppelin aims to promote secure employment, establish long-term employment relationships, and foster a stable working environment.

Employee satisfaction

Zeppelin prioritizes long-term employee retention and satisfaction. Indicators of long-term loyalty and satisfaction include a high average length of service and a low self-termination rate.

In principle, all employees have the right to take maternity, paternity, parental, and carers’ leave according to the relevant national legislation.

Proportion of women

For Zeppelin, providing equal opportunities for women and men is not only a matter of course, but also an important driver of success. The focus is on maximizing the potential of each woman and supporting her long-term career development. The table below breaks down the percentage share by gender and age structure of the total number of employees per SBU.

The first management level consists of individuals who report directly to the Group Management Board. This level includes the management and executive boards of the companies, among others.

Health and safety

Zeppelin is committed to providing all employees with a safe and healthy workplace. In close coordination and cooperation with internal experts from the work-related health and safety committee, the works council, and the respective management, Zeppelin has set targets for continuous improvement. The target path is defined by taking relevant internal and external factors into account (e.g., investment planning) and is always "SMART" (specific, measurable, appropriate, realistic, and time-based). There were no significant changes to the target value or associated metrics during the reporting period.

The rate of work-related accidents and days lost are determined using an internal reporting system. Every accident and resulting lost days must be reported. These reports are then consolidated at the company level on an annual basis (reporting period from January 1 to December 31 of the respective year). Reported metrics are checked and corrected, if necessary, during spot and validity checks. These metrics are not validated or checked externally. No significant assumptions were made when determining the metrics.

Serious infectious diseases are recorded in the case of work-related illnesses, as this may result in damage to third parties. All other work-related illnesses fall under Article 9. 9, para. 1 of the GDPR and are treated as sensitive personal data accordingly.