S2 Workers in the value chain

Strategy

In particular, negative impacts can arise for employees in the upstream value chain, e.g., during the extraction and processing of raw materials, since some of these activities take place in less regulated developing countries. The following raw materials are particularly important to Zeppelin for manufacturing its products and services.

Due to Zeppelin's business activities in highly regulated countries, employees in the downstream value chain are considered to be at lower risk of experiencing negative working conditions. This applies particularly to employees of logistics companies that transport machines and devices, as well as recycling and reprocessing companies that dismantle and reuse machines and devices.²

² Employees who work at company sites but are not part of the company's workforce, as well as employees who work in the operations of a joint venture or special purpose entity, are not relevant. Neither are employees who are particularly vulnerable due to their characteristics or circumstances.

Management of impacts, risks and opportunities

Policies

The Zeppelin Group is committed to protecting and promoting human and environmental rights throughout its supply chain. This includes prohibiting forced labor, child labor, and discrimination. Central labor regulations apply throughout the Group and are based on the International Bill of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the UN Global Compact principles, to which Zeppelin has been a signatory since 2016. These regulations include the Declaration of Principles on Respect for Human and Environmental Rights, the Code of Conduct for Business Ethics and Compliance, the Code of Conduct for Suppliers, and the Group guidelines "Compliance," "Human Rights Due Diligence," "Whistleblower Protection," and "Implementation of the Supply Chain Due Diligence Act" (see also ESRS 2).

Actions

As part of the annual risk-oriented audits and regular double materiality analyses, the value chain is analyzed in detail. Potential risks are identified, and preventive and corrective measures are assigned.

A significant portion of our purchasing volume is attributed to merchandise procured from our long-standing business partner, Caterpillar. Caterpillar was identified as an important stakeholder through the dual materiality analysis. We also regularly exchange information directly with Caterpillar and other suppliers. Employees throughout the value chain can contact Zeppelin anonymously via the Zeppelin TrustLine online whistleblower system to express concerns or communicate needs. Further information can be found in the Governance Information section. The Supplier Code of Conduct contains specific requirements for cooperation with suppliers. Suppliers are obligated to adhere to the minimum requirements for human rights due diligence and environmental standards. They must also inform Zeppelin of any violations identified in their business area, e.g., via the Zeppelin TrustLine. This includes violations of the Code of Conduct and the measures taken as a result; criminal offenses; violations in the supply chain; and reasonable suspicion that Zeppelin employees, partners, or other third parties are seriously violating the basic principles, Zeppelin values, compliance rules, or applicable law.

In our own business operations, preventive measures include implementing the declaration of principles, using risk-mitigating procurement strategies and practices, providing training in relevant areas, and establishing risk-based control mechanisms. With regard to direct suppliers, preventive measures include questionnaires, selection according to defined minimum standards, contractual agreements on compliance with these standards, and training and further education, as well as contractual agreements on control mechanisms. If a violation of human rights or environmental obligations occurs or is imminent in Zeppelin's business area or among direct suppliers, remedial measures are taken immediately to prevent, end, or minimize the extent of the violation. If serious breaches of duty occur, remedial measures are ineffective, or mitigating measures are unavailable, a business relationship may be suspended or terminated.

Progress 2024

During the reporting period, the Zeppelin Group introduced a comprehensive software solution that enables the efficient management, tracking, and implementation of its sustainability requirements in the supply chain. This is the first time sustainability management in the upstream value chain has been automated and digitized. As implementation continues, data analysis and supplier evaluation will be integrated into processes to promote responsible management throughout the value chain.

Targets and metrics

Our goal is to continuously optimize the sustainability of our business activities, products, and services. The Zeppelin Group expects its partners – i.e., suppliers, service providers, and subcontractors – to contribute to this goal through a holistic approach. Therefore, Zeppelin agrees to a joint code of conduct with its suppliers as the basis for the business relationship. The issue of labor in the value chain was identified as material for the first time in the 2024 double materiality analysis. The Zeppelin Group has not yet defined any targets in this area, nor have any metrics been collected.