Governance and Compliance

Management Approach

Corporate governance and rigorous compliance are integral parts of our corporate strategy. In a complex and dynamic regulatory landscape, our governance and compliance culture serves as an essential control mechanism. Our objective is to keep our company free of corruption and bribery; we therefore strive to have zero court-confirmed cases within our operations or among business partners. This bolsters trust in our company and the integrity of our sustainable corporate management.

Opportunities stemming from our governance and compliance culture include greater trust in us as a partner, thus supporting sustainable business success. Moreover, our transparency in governance and compliance enables us to proactively anticipate regulatory changes, manage risks effectively, and further strengthen our credibility.

Risks resulting from non-compliance include legal and financial consequences as well as reputational damage. We continuously assess these risks and implement measures for their effective management.

Our management approach is underpinned by corporate governance and robust compliance as integral parts of our corporate strategy. This framework ensures environmental standards are met, human rights are respected, and responsible conduct is maintained with employees, suppliers, and customers throughout our business operations. These principles are firmly established in our Code of Conduct, which is binding for all employees. The Code of Conduct represents the highest level of our regulatory framework and is a key component of our Compliance Management System (CMS).

Our Compliance Management System (CMS) supports management in fulfilling its governance responsibilities and is designed to prevent and mitigate potential employee misconduct. Alongside the Code of Conduct, the CMS is supplemented by our whistleblower hotline—a web-based reporting tool. Violations of rules or laws can be reported online, in eight languages, and anonymously if required. The system is available to all employees, suppliers, customers, and other stakeholders. Its primary purpose is to identify risks early and provide a foundation for their effective management. Responsibility for the CMS lies with the Chief Executive Officer. Our approach helps drive sustainable growth, promote trust, and maintain our market position.

Compliance responsibilities are clearly defined: the Chief Compliance Officer heads the function and reports directly to the Chief Executive Officer. The Management Board is briefed on compliance matters at least quarterly, while the Supervisory Board receives detailed reports on compliance and data protection topics every six months.

The function is supported by a Compliance Committee, which includes the Chief Compliance Officer, Compliance Officers, the ombudsperson, and representatives from Internal Audit, Risk Management, Human Resources, the Works Council, and international subsidiaries. The Committee meets quarterly to ensure the CMS is updated and developed in line with current requirements. Executive Board and Supervisory Board Office coordinates collaboration between these governing bodies and ensures that decisions are implemented.

In addition, we have established a decentralized compliance structure in which local contacts in relevant business areas are trained to handle compliance-related topics.