{"html":"<div class=\"section chapter-overview has-background\">\t<div class=\"wrapper\">\t\t<h5>03<\/h5>\t\t\t\t<h1>E3: an integrated sustainability framework<\/h1>\t\t\t\t\t\t<div class=\"max-width\">\t\t\t<div class=\"module \" data-module-type=\"toc\" data-module-options='{\"onlyCurrentArticle\": true}'><\/div>\t\t<\/div>\t\t\t<\/div>\t\t<div class=\"module\" data-module-type=\"letter-line-drawing\" data-module-options='{\"file\": \"e3-e\", \"color\": \"#00477e\", \"delay\": 0.0}'><\/div>\t\t<div class=\"module\" data-module-type=\"letter-line-drawing\" data-module-options='{\"file\": \"e3-3\", \"color\": \"#00477e\", \"delay\": 0.5}'><\/div>\t\t<\/div><div class=\"section body\" id=\"our-sustainability-commitment\">\t<div class=\"wrapper\">\t\t\t\t\t\t\t\t\t\t<p class=\"section-number\">\t\t\t03.1 \t\t<\/p>\t\t\t\t<h2>Our sustainability commitment<\/h2>\t\t\t\t<p class=\"gri\">\t\t\tESRS 2 SBM-1 \u00a740 General disclosure \t\t<\/p>\t\t\t\t<p>\t\t\tSustainability is a shared journey \u2013 one that shapes every stage of our value chain, from sourcing to end-of-life. At Hager we are committed to advancing this journey together with our partners, customers and stakeholders, with our respect for people and the environment guiding each step. \t\t<\/p>\t\t\t\t<p>\t\t\tWe have embedded our belief in building a sustainable future through collaboration into the heart of our sustainability framework, E3, which focuses on Ethics, Employees and the Environment. \t\t<\/p>\t\t\t\t<p>\t\t\tE3 is our vision for upholding ethical business practices, creating an inclusive and healthy workplace, and delivering reliable, future-proof, low-carbon solutions in partnership with our suppliers, customers and other stakeholders. \t\t<\/p>\t\t\t\t<p>\t\t\tAs noted elsewhere in this report, our business is in a privileged position: we have the capacity to make positive change in people\u2019s lives, and in the life of the communities in which we operate. By placing sustainability at the heart of everything we ensure that we thrive, and so does the world around us. \t\t<\/p>\t\t\t\t<p>\t\t\tE3 forms an integral part of our overall Project 2030 strategy. Detailed reports on our interconnected activities around Ethics, Employees and the Environment follow this introductory section. A brief summary of each topic is included here. \t\t<\/p>\t\t\t\t<h6>Ethics<\/h6>\t\t\t\t<p>\t\t\tEthics is at the core of our approach to business, guiding responsible conduct across our operations and value chain. Our commitment is reflected through ongoing ethics training, a secure integrity alert system, and clear expectations for all stakeholders upstream and downstream. \t\t<\/p>\t\t\t\t<p>\t\t\tWe seek to uphold human rights, ensure fair and safe working conditions, and maintain transparent sourcing practices, reinforced by our adherence to international standards such as the UN Global Compact and OECD Due Diligence Guidance<sup>1<\/sup>. \t\t<\/p>\t\t\t\t<h6>Employees<\/h6>\t\t\t\t<p>\t\t\tEmployees are central to our long-term success and sustainability journey. Hager fosters an inclusive environment where everyone can fulfil their potential through lifelong learning and meaningful career development, supported by initiatives such as Early Careers and Eureka. The health, safety and well-being of our workforce are fundamental priorities, embedded in our policies and practices across all sites. \t\t<\/p>\t\t\t\t<p>\t\t\tWe strive to create a workplace that values diversity and equal opportunities, and encourages collaboration across generations. Our commitment is further reinforced by our Diversity Charter and ongoing investment in employee development, through which our aim is to cultivate an environment where individuals feel respected, supported and able to thrive. \t\t<\/p>\t\t\t\t<p>\t\t\tIn 2025 we are reinforcing this commitment with the launch of our Human Sustainability programme, which will advance our ambition in this pillar of the E3 framework. This programme builds on our existing efforts and provides a structured approach to support employees in a workplace that strives to be inclusive, empowering and responsive to future needs. \t\t<\/p>\t\t\t\t<h6>Environment<\/h6>\t\t\t\t<p>\t\t\tThe environment is a central pillar of Hager sustainability strategy, guiding our efforts to reduce GHG emissions and minimise the environmental impact of our operations. \t\t<\/p>\t\t\t\t<p>\t\t\tThrough our Blue Planet Commitment we implement robust action plans to minimise CO\u2082 emissions, reduce waste and advance circular economy practices across our value chain. We also prioritise eco-design, invest in innovative energy solutions, and leverage digital transformation to optimise resource use and operational efficiency. \t\t<\/p>\t\t\t\t<p>\t\t\tBy creating long-lasting products, by continuously improving their environmental performance, and by engaging partners and customers on this journey, we strive to enable low-carbon living and support the global climate targets set by the Paris Agreement. \t\t<\/p>\t\t\t\t<p>\t\t\tSince 2021 our efforts have been structured and accelerated through our Environmental Sustainability programme, the Blue Planet Commitment, which provides a comprehensive framework to drive progress in this pillar of our E3 approach. \t\t<\/p>\t\t\t\t<p>\t\t\tThis programme ensures alignment across major environmental initiatives, enabling us to scale impact, track performance and continuously improve. \t\t<\/p>\t\t\t\t\t<\/div><\/div><div class=\"section body\" id=\"e3-alignment-un-sdgs\">\t<div class=\"wrapper\">\t\t\t\t\t\t<p class=\"section-number\">\t\t\t03.2 \t\t<\/p>\t\t\t\t<h2>E3: alignment with UN SDGs and material topics<\/h2>\t\t\t\t<p>\t\t\tThe United Nations Sustainable Development Goals (UN SDGs) provide a universal framework for addressing the world\u2019s most urgent environmental, social and economic challenges by 2030. At Hager we recognise that contributing to these global goals is a matter of corporate responsibility, as well as a strategic imperative for long-term business success. \t\t<\/p>\t\t\t\t<p>\t\t\tOur E3 framework is deliberately structured to advance progress towards the SDGs most relevant to our business and stakeholders. Through regular updates to our yearly double materiality assessments we have identified the sustainability topics where our operations have the greatest impact and where we are most exposed to financial risks and opportunities. These material topics form the foundation of our E3 strategic priorities. \t\t<\/p>\t\t\t\t<p>\t\t\tBy mapping our E3 framework to the relevant SDGs and integrating the disclosure requirements of ESRS and GRI standards, we ensure a consistent and transparent approach to sustainability management and reporting. This alignment maximises the effectiveness of our actions, strengthens our contribution to shared global objectives, and supports compliance with the latest regulatory expectations under the CSRD. \t\t<\/p>\t\t\t\t<p>\t\t\tOur approach enables us to create value for our stakeholders, benchmark our progress against international standards, and drive continuous improvement in all areas of sustainability. \t\t<\/p>\t\t\t\t<div class=\"module inline-positioning\" data-module-type=\"letter-line-drawing\" data-module-options='{\"file\": \"chapter-intro-cup\", \"color\": \"#f1f1f1\", \"delay\": 1.0}'><\/div>\t\t\t\t\t\t<h3>Alignment of SDGs and our E3 framework<\/h3>\t\t\t\t<div class=\"module\" id=\"alignment-sdgs-e3\" data-module-type=\"contentrotator\" data-module-options='{\"slidesPerView\": \"1\", \"hasAdjacenceNavigation\": 1, \"breakpoints\": { \"680\": {\"slidesPerView\": \"2\"}, \"1100\": {\"slidesPerView\": \"3\"}}}'>\t\t\t\t\t\t<div class=\"slide\">\t\t\t\t<div class=\"info-box\">\t\t\t\t\t<div class=\"module\" data-module-type=\"icon-animation\" data-module-options='{\"icon\": \"leaf\", \"colorScheme\": \"yellow\"}'><\/div>\t\t\t\t\t\t\t\t\t\t<h4>Environment<\/h4>\t\t\t\t\t\t\t\t\t\t<div class=\"sdgs\">\t\t\t\t\t\t<div class=\"sdg-icon sdg-3\"><\/div>\t\t\t\t\t\t<div class=\"sdg-icon sdg-7\"><\/div>\t\t\t\t\t\t<div class=\"sdg-icon sdg-12\"><\/div>\t\t\t\t\t\t<div class=\"sdg-icon sdg-13\"><\/div>\t\t\t\t\t\t<div class=\"sdg-icon sdg-15\"><\/div>\t\t\t\t\t<\/div>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<h6>Relevant GRI Standards<\/h6>\t\t\t\t\t\t\t\t\t\t<ul>\t\t\t\t\t\t<li>\t\t\t\t\t\t\tGRI 204 \u2013 Procurement Practices\t\t\t\t\t\t<\/li>\t\t\t\t\t\t\t\t\t\t\t\t<li>\t\t\t\t\t\t\tGRI 301 \u2013 Materials\t\t\t\t\t\t<\/li>\t\t\t\t\t\t\t\t\t\t\t\t<li>\t\t\t\t\t\t\tGRI 302 \u2013 Energy\t\t\t\t\t\t<\/li>\t\t\t\t\t\t\t\t\t\t\t\t<li>\t\t\t\t\t\t\tGRI 305 \u2013 Emissions\t\t\t\t\t\t<\/li>\t\t\t\t\t\t\t\t\t\t\t\t<li>\t\t\t\t\t\t\tGRI 308 \u2013 Supplier Environmental Assessment\t\t\t\t\t\t<\/li>\t\t\t\t\t<\/ul>\t\t\t\t\t\t\t\t\t\t<h6>Relevant ESRS Topics and Sub-topics<\/h6>\t\t\t\t\t\t\t\t\t\t<ul>\t\t\t\t\t\t<li>\t\t\t\t\t\t\tESRS E1 \u2013 Climate Change (all topics)\t\t\t\t\t\t<\/li>\t\t\t\t\t\t\t\t\t\t\t\t<li>\t\t\t\t\t\t\tESRS E2 \u2013 Pollution\t\t\t\t\t\t<\/li>\t\t\t\t\t\t\t\t\t\t\t\t<li class=\"only-list-child\">\t\t\t\t\t\t\t<ul>\t\t\t\t\t\t\t\t<li>Substances of concern and very high concern<\/li>\t\t\t\t\t\t\t<\/ul>\t\t\t\t\t\t<\/li>\t\t\t\t\t\t\t\t\t\t\t\t<li>\t\t\t\t\t\t\tESRS E5 \u2013 Resource Use and Circular Economy\t\t\t\t\t\t<\/li>\t\t\t\t\t\t\t\t\t\t\t\t<li class=\"only-list-child\">\t\t\t\t\t\t\t<ul>\t\t\t\t\t\t\t\t<li>Resource inflows and outflows<\/li>\t\t\t\t\t\t\t<\/ul>\t\t\t\t\t\t<\/li>\t\t\t\t\t<\/ul>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\t\t\t<\/div>\t\t\t\t\t\t<div class=\"slide\">\t\t\t\t<div class=\"info-box\">\t\t\t\t\t\t\t\t\t\t<div class=\"module\" data-module-type=\"icon-animation\" data-module-options='{\"icon\": \"group\", \"colorScheme\": \"blue-yellow\"}'><\/div>\t\t\t\t\t\t\t\t\t\t<h4>Employees<\/h4>\t\t\t\t\t\t\t\t\t\t<div class=\"sdgs\">\t\t\t\t\t\t<div class=\"sdg-icon sdg-3\"><\/div>\t\t\t\t\t\t<div class=\"sdg-icon sdg-4\"><\/div>\t\t\t\t\t\t<div class=\"sdg-icon sdg-5\"><\/div>\t\t\t\t\t\t<div class=\"sdg-icon sdg-8\"><\/div>\t\t\t\t\t\t<div class=\"sdg-icon sdg-10\"><\/div>\t\t\t\t\t<\/div>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<h6>Relevant GRI Standards<\/h6>\t\t\t\t\t\t\t\t\t\t<ul>\t\t\t\t\t\t<li>\t\t\t\t\t\t\tGRI 401 \u2013 Employment\t\t\t\t\t\t<\/li>\t\t\t\t\t\t\t\t\t\t\t\t<li>\t\t\t\t\t\t\tGRI 403 \u2013 Occupational Health and Safety\t\t\t\t\t\t<\/li>\t\t\t\t\t\t\t\t\t\t\t\t<li>\t\t\t\t\t\t\tGRI 404 \u2013 Training and Education\t\t\t\t\t\t<\/li>\t\t\t\t\t\t\t\t\t\t\t\t<li>\t\t\t\t\t\t\tGRI 405 \u2013 Diversity and Equal Opportunity\t\t\t\t\t\t<\/li>\t\t\t\t\t<\/ul>\t\t\t\t\t\t\t\t\t\t<h6>Relevant ESRS Topics and Sub-topics<\/h6>\t\t\t\t\t\t\t\t\t\t<ul>\t\t\t\t\t\t<li>\t\t\t\t\t\t\tESRS S1 \u2013 Own Workforce (All topics)\t\t\t\t\t\t<\/li>\t\t\t\t\t<\/ul>\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\t\t\t<\/div>\t\t\t\t\t\t<div class=\"slide\">\t\t\t\t<div class=\"info-box\">\t\t\t\t\t<div class=\"module\" data-module-type=\"icon-animation\" data-module-options='{\"icon\": \"scale\", \"colorScheme\": \"blue-yellow\"}'><\/div>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<h4>Ethics<\/h4>\t\t\t\t\t\t\t\t\t\t<div class=\"sdgs\">\t\t\t\t\t\t<div class=\"sdg-icon sdg-16\"><\/div>\t\t\t\t\t<\/div>\t\t\t\t\t\t\t\t\t\t<h6>Relevant GRI Standards<\/h6>\t\t\t\t\t\t\t\t\t\t<ul>\t\t\t\t\t\t<li>\t\t\t\t\t\t\tGRI 205 \u2013 Anti-Corruption\t\t\t\t\t\t<\/li>\t\t\t\t\t\t\t\t\t\t\t\t<li>\t\t\t\t\t\t\tGRI 414 \u2013 Supplier Social Assessment\t\t\t\t\t\t<\/li>\t\t\t\t\t\t\t\t\t\t\t\t<li>\t\t\t\t\t\t\tGRI 416 \u2013 Customer Health and Safety\t\t\t\t\t\t<\/li>\t\t\t\t\t<\/ul>\t\t\t\t\t\t\t\t\t\t<h6>Relevant ESRS Topics and Sub-topics<\/h6>\t\t\t\t\t\t\t\t\t\t<ul>\t\t\t\t\t\t<li>\t\t\t\t\t\t\tESRS S4 \u2013 Consumers and End-Users\t\t\t\t\t\t<\/li>\t\t\t\t\t\t\t\t\t\t\t\t<li class=\"only-list-child\">\t\t\t\t\t\t\t<ul>\t\t\t\t\t\t\t\t<li>Personal safety of consumers and\/or end-users<\/li>\t\t\t\t\t\t\t<\/ul>\t\t\t\t\t\t<\/li>\t\t\t\t\t\t\t\t\t\t\t\t<li>\t\t\t\t\t\t\tESRS G1 \u2013 Business Conduct\t\t\t\t\t\t<\/li>\t\t\t\t\t\t\t\t\t\t\t\t<li class=\"only-list-child\">\t\t\t\t\t\t\t<ul>\t\t\t\t\t\t\t\t<li>Corruption and bribery<\/li>\t\t\t\t\t\t\t<\/ul>\t\t\t\t\t\t<\/li>\t\t\t\t\t<\/ul>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\t\t\t<\/div>\t\t\t\t\t\t\t\t<\/div>\t\t\t\t\t<\/div><\/div><div class=\"section body\" id=\"sustainability-governance\">\t<div class=\"wrapper\">\t\t\t\t\t\t\t\t\t\t<p class=\"section-number\">\t\t\t03.3 \t\t<\/p>\t\t\t\t<h2>Sustainability governance<\/h2>\t\t\t\t<p class=\"gri\">\t\t\tGRI 2-9, 2-13, 2-14 General disclosure <br>\t\t\tESRS 2 GOV-1 \u00a722 and <br>\t\t\t\u00a723 General disclosure \t\t<\/p>\t\t\t\t<p>\t\t\tHager is proud of its long history as a family enterprise. Over 70 years we have taken a flexible approach to the governance of our business, and this has enabled us to respond again and again to a changing world, swiftly and effectively. Adaptable governance structures are essential for success. \t\t<\/p>\t\t\t\t<p>\t\t\tChange is still with us, of course. Today\u2019s world is changing perhaps faster than at any point in the history of Hager. To ensure our business is future-ready and well-positioned to shape the electrical world of tomorrow we have established a governance model that ensures a clear and effective transition of strategy and action plans from senior leadership to every employee. \t\t<\/p>\t\t\t\t<p>\t\t\tOur E3 framework approach is embedded within this governance framework. This ensures that our decisions and actions consistently reflect our values, support responsible business conduct, empower our people, and promote environmental stewardship across our entire value chain. \t\t<\/p>\t\t\t\t\t\t\t\t<div class=\"static-graphic-wrapper\" id=\"sustainability-governance\">\t\t\t<div class=\"static-graphic sustainability-governance\">\t\t\t\t\t\t\t\t<div class=\"module\" data-module-type=\"panzoom-image\" data-module-options='{\"aspectRatio\": 1.2315270936, \"maxMediaquery\": 0}'>\t\t\t\t\t<img src=\"images\/articles\/graphics\/sustainability-governance.svg\">\t\t\t\t<\/div>\t\t\t<\/div>\t\t\t\t\t\t<p>\t\t\t\tThe sustainability governance framework here illustrates how responsibilities are structured at Hager Group. It shows the roles of our highest governance bodies, management bodies, functional departments, networks, and employees in steering, coordinating, and implementing sustainability across the organisation. This integrated approach strengthens accountability, fosters innovation, and ensures alignment with long-term Project 2030 strategy. \t\t\t<\/p>\t\t\t\t\t<\/div>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div id=\"sustainability-council\">\t\t\t\t\t\t\t\t\t<div class=\"module\" data-module-type=\"letter-line-drawing\" data-module-options='{\"file\": \"chapter-intro-split-horizontal-flipped\", \"color\": \"#f1f1f1\", \"delay\": 1.0}'><\/div>\t\t\t\t\t\t\t\t\t<p class=\"section-number\">\t\t\t\t03.3.1 \t\t\t<\/p>\t\t\t\t\t\t<h3>Sustainability Council: Bridging vision and action<\/h3>\t\t\t\t\t\t<p>\t\t\t\tTo navigate the complex transition towards sustainable development Hager has established a dedicated Sustainability Council as a central element of our governance architecture. The Council is chaired by the Chief Human Resources Officer (CHRO) and includes senior executives such as the Chief Technical Officer (CTO) and Chief Marketing Officer (CMO), alongside other key business leaders. \t\t\t<\/p>\t\t\t\t\t\t\t\t\t<div class=\"module tablet-right\" data-module-type=\"image\" data-module-options='{\"aspectRatio\": 1.25}'>\t\t\t\t<img src=\"images\/articles\/e3\/HG_VS_ME_154.jpg\">\t\t\t\t<div class=\"caption\">\t\t\t\t\tMike Elbers, Chief Marketing Officer and member of the sustainability council \t\t\t\t<\/div>\t\t\t<\/div>\t\t\t\t\t\t\t\t\t<div class=\"module tablet-right\" data-module-type=\"image\" data-module-options='{\"aspectRatio\": 1.25}'>\t\t\t\t<img src=\"images\/articles\/e3\/HG_VS_RF_147.jpg\">\t\t\t\t<div class=\"caption\">\t\t\t\t\tDr. Ralph F\u00fcrderer, Chief Technical Officer and member of the sustainability council \t\t\t\t<\/div>\t\t\t<\/div>\t\t\t\t\t\t\t\t\t<div class=\"module tablet-right\" data-module-type=\"image\" data-module-options='{\"aspectRatio\": 1.25}'>\t\t\t\t<img src=\"images\/articles\/e3\/HG_VS_FH_115.jpg\">\t\t\t\t<div class=\"caption\">\t\t\t\t\tFranck Houdebert, Chief Human Resources Officer and member of the sustainability council \t\t\t\t<\/div>\t\t\t<\/div>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<p>\t\t\t\tThis composition ensures comprehensive representation of the different aspects of our business: \t\t\t<\/p>\t\t\t\t\t\t<ul>\t\t\t\t<li>\t\t\t\t\tThe CHRO represents our people and culture, and social responsibility, ensuring that the human dimension of our operations remains the strategic lever it is today, and that broader value chain societal expectations are integrated into sustainability discussions.\t\t\t\t<\/li>\t\t\t\t\t\t\t\t<li>\t\t\t\t\tThe CTO offers a forward-looking perspective on operational efficiency and technology. He provides technical and engineering expertise, supporting the development of sustainable solutions and innovation across our products, operations and processes.\t\t\t\t<\/li>\t\t\t\t\t\t\t\t<li>\t\t\t\t\tThe CMO contributes a perspective grounded in market trends, customer-centricity and external stakeholder engagement, ensuring our sustainability strategy is relevant and competitive.\t\t\t\t<\/li>\t\t\t<\/ul>\t\t\t\t\t\t<p>\t\t\t\tThe primary mandate of the Sustainability Council is to identify material sustainability impacts, risks, opportunities and gaps that may impact our operations and broader value chain. Drawing on this diversity of expertise the Council sets strategic sustainability objectives aligned with our sectoral context and stakeholder expectations. It formulates and reviews key policies, such as the Sustainability Policy and the Blue Planet Commitment programme, ensuring these initiatives are both ambitious and actionable. \t\t\t<\/p>\t\t\t\t\t\t<p>\t\t\t\tA core function of the Council is to act as a governance bridge \u2013 translating board-level vision and requirements into operational priorities and measurable actions. Sustainability-related matters addressed by the Council are systematically integrated into board and committee deliberations, supporting informed decision-making at the highest levels. This two-way exchange ensures that sustainability performance, risks and emerging issues are regularly elevated to the Supervisory Board and Board of Directors for review and strategic alignment. \t\t\t<\/p>\t\t\t\t\t\t<p>\t\t\t\tFurthermore, the Council monitors the progress of sustainability initiatives across Hager, providing guidance, challenge and oversight to drive continuous improvement. In doing so the Sustainability Council fosters alignment between strategic intent and operational execution, reinforcing sustainability as a core business driver and a fundamental element of our long-term value creation. \t\t\t<\/p>\t\t\t\t\t\t\t\t<\/div>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<p class=\"section-number\">\t\t\t03.3.2 \t\t<\/p>\t\t\t\t<h3>Incentive policy<\/h3>\t\t\t\t<p class=\"gri\">\t\t\tESRS 2 GOV-3 \u00a729 General disclosure <br>\t\t\tGRI 2-19 General disclosure \t\t<\/p>\t\t\t\t<p>\t\t\tHager remuneration policy for our highest governance body and senior executives is composed of a fixed salary and variable pay. Our Hager Group Bonus Scheme is a lever for performance, aimed at enhancing both individual and collective performance to accelerate Hager development and growth. \t\t<\/p>\t\t\t\t<p>\t\t\tThe structure of the scheme is based on the belief that overall performance is a combination of individual performance (achieved through focused objectives, the demonstration of Hager values, and leadership behaviours), and group performance. \t\t<\/p>\t\t\t\t<p>\t\t\tThe remuneration framework incorporates key performance indicators (KPIs) linked to impact on group financial performance, the group annual business plan and individual objectives. Group objectives encompass three domains: business, customers and employees. \t\t<\/p>\t\t\t\t<p>\t\t\tAs part of our commitment to responsible growth, sustainability impact has also become a core component of our performance culture. Also, in 2024, 15% of the variable remuneration for the highest governance body and senior executives was directly tied to health and safety metrics in relation to employees and non-employees working at Hager sites. \t\t<\/p>\t\t\t\t<p>\t\t\tThis reflects our belief that long-term value creation must go hand-in-hand with environmental and social responsibility, aligning leadership incentives with the ambitions of our sustainability strategy. \t\t<\/p>\t\t\t\t<p>\t\t\tThis year we have updated our remuneration policy to align with our new People Frame framework (see the Employee section of this report for more information). \t\t<\/p>\t\t\t\t<p>\t\t\tIn evaluating individual performance we place equal importance on both outcomes and the manner in which they are achieved. As part of this approach, all managers are required to set at least one objective focused on behaviour, inspired by the People Frame, which will carry a weighting of 30% in the overall performance assessment. \t\t<\/p>\t\t\t\t\t\t<div class=\"module\" id=\"incentive-policy-table\" data-module-type=\"responsive-table\" data-module-options='{\"width\": 800}'>\t\t\t<table class=\"first-column-is-header\">\t\t\t\t\t\t\t\t<thead>\t\t\t\t\t<tr>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>Group objectives<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>KPIs to measure 2025 performance<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>Definition<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>Weight<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t<\/tr>\t\t\t\t<\/thead>\t\t\t\t<tbody>\t\t\t\t\t<tr>\t\t\t\t\t\t<td rowspan=\"5\">\t\t\t\t\t\t\t<p>Business<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>Turnover growth in % vs PY<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>Group turnover = External sales (w\/o Value Added Taxes) and before considering any bonuses or customer settlement discount<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>25%<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t<\/tr>\t\t\t\t\t<tr>\t\t\t\t\t\t<td class=\"rowspan\"> <\/td>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>EBIT % Net Sales (Earnings Before Interest and Taxes) <\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>EBIT = Gross margin \u2013 Commercial costs\/General expenses +\/- Extraordinary expenses\/Income in # of days<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>25%<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t<\/tr>\t\t\t\t\t<tr>\t\t\t\t\t\t<td class=\"rowspan\"> <\/td>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>YE DIO (Days Inventory Outstanding, Financial View, all-in) \u2013 Hager Group<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>Net inventories: Sum of gross stocks \u2013 stock depreciations<\/p>\t\t\t\t\t\t\t<p>Cost of sales: Sum of material consumption, direct labour and production overhead costs<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>20%<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t<\/tr>\t\t\t\t\t<tr>\t\t\t\t\t\t<td class=\"rowspan\"> <\/td>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>New product turnover<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t\t<td \/>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>15%<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t<\/tr>\t\t\t\t\t<tr>\t\t\t\t\t\t<td class=\"rowspan\"> <\/td>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>New product timing Mx Piro1<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t\t<td \/>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>15%<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t<\/tr>\t\t\t\t\t<tr>\t\t\t\t\t\t<td rowspan=\"2\">\t\t\t\t\t\t\t<p>Customers<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>Forecast accuracy (market demand)<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>Accuracy of demand for close co-ordination between Sales and Operations to reduce inventory and waste<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>15%<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t<\/tr>\t\t\t\t\t<tr>\t\t\t\t\t\t<td class=\"rowspan\"> <\/td>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>OTR (On-Time Received by the Customer) on yearly average performance<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>Number of order lines received on time or before time by our customers \/ Number of order lines requested for delivery by the customer during the period<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>20%<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t<\/tr>\t\t\t\t\t<tr>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>Employees<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>LTAR (Lost Time Accident Rate)<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>Number of Lost Time Accidents (LTAs) multiplied by 1.000.000 divided by real working hours<\/p>\t\t\t\t\t\t\t<p>LTA: All occupational accidents (without commuting accidents) with one calendar day loss or more<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t\t<td>\t\t\t\t\t\t\t<p>15%<\/p>\t\t\t\t\t\t<\/td>\t\t\t\t\t<\/tr>\t\t\t\t<\/tbody>\t\t\t<\/table>\t\t<\/div>\t\t\t\t\t\t\t<\/div><\/div><div class=\"section body\" id=\"embedding-sustainability-daily-operations\">\t<div class=\"wrapper\">\t\t\t\t\t\t<p class=\"section-number\">\t\t\t03.4 \t\t<\/p>\t\t\t\t<h2>Embedding sustainability in daily operations<\/h2>\t\t\t\t<p class=\"gri\">\t\t\tGRI 2-23 General disclosure <br>\t\t\tGRI 3-3 Material topics <br>\t\t\tESRS 2 SBM-1 \u00a740 General disclosure \t\t<\/p>\t\t\t\t<p>\t\t\tAt Hager we recognise that achieving meaningful and lasting sustainability impact requires more than ambition \u2013 it demands integration. That\u2019s why we are committed to formally embedding sustainability into our daily operations and across our entire value chain. This approach ensures that our sustainability goals are both aspirational and actionable. \t\t<\/p>\t\t\t\t\t\t\t\t<div class=\"module\" data-module-type=\"image\" data-module-options='{\"aspectRatio\": 1.5}'>\t\t\t<img src=\"images\/articles\/e3\/Hager_Next_427-SK-edit.jpg\">\t\t<\/div>\t\t\t\t\t\t<p>\t\t\tEqually important is our collaboration with external stakeholders \u2013 suppliers, partners and customers \u2013 who play a critical role in amplifying our impact. Through shared standards, transparent practices and mutual commitment we can drive systemic change and accelerate progress toward our collective goals. \t\t<\/p>\t\t\t\t<p>\t\t\tFor this purpose Hager has developed a comprehensive sustainability policy. This policy is grounded in the outcomes of our materiality assessment, which identifies the most relevant environmental, social and governance topics for our business and stakeholders. \t\t<\/p>\t\t\t\t<p>\t\t\tTo address these material topics in a structured and accountable way the policy is supported by a set of dedicated charters and declarations. Each document provides clear principles, commitments and guidelines tailored to specific areas of impact, ensuring consistency and alignment across the organisation and our value chain. The framework includes: \t\t<\/p>\t\t\t\t<ul>\t\t\t<li>\t\t\t\tEnvironment and Energy Charter\t\t\t<\/li>\t\t\t\t\t\t<li>\t\t\t\tEthics Charter\t\t\t<\/li>\t\t\t\t\t\t<li>\t\t\t\tDeclaration of Principles on Respect for Human Rights\t\t\t<\/li>\t\t\t\t\t\t<li>\t\t\t\tSustainable Sourcing Charter\t\t\t<\/li>\t\t\t\t\t\t<li>\t\t\t\tInternal Mobility Charter\t\t\t<\/li>\t\t\t\t\t\t<li>\t\t\t\tHuman Sustainability Charter\t\t\t<\/li>\t\t<\/ul>\t\t\t\t<p>\t\t\tThese policies are endorsed by our Board of Directors and apply to all entities within the scope of our sustainability reporting, and are communicated internally via the Hager Live! platform and document management system. \t\t<\/p>\t\t\t\t<p>\t\t\tFor suppliers and business partners, adherence to these principles is contractually required via the Supplier Code of Conduct. \t\t<\/p>\t\t\t\t<p>\t\t\tThese policy commitments (with the exception of our Mobility Charter) apply throughout our operations, value chain and supplier relationships, and are grounded in internationally recognised standards such as the Universal Declaration of Human Rights, ILO Conventions, the UN Guiding Principles on Business and Human Rights, and the OECD Due Diligence Guidance. \t\t<\/p>\t\t\t\t<p>\t\t\tWe mandate regular risk-based due diligence aligned with the German Supply Chain Due Diligence Act (LkSG), including supplier risk analysis, targeted conflict minerals reporting, preventative measures (like employee training and updated contracts), and formal grievance mechanisms. \t\t<\/p>\t\t\t\t<p>\t\t\tHager applies the precautionary principle through systematic risk assessments, standardised controls, and robust training to proactively prevent harm to people and the environment. \t\t<\/p>\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"static-graphic embedding-sustainability max-width\">\t\t\t\t\t\t\t\t\t<div class=\"module\" data-module-type=\"panzoom-image\" data-module-options='{\"aspectRatio\": 1.8508557457}'>\t\t\t\t<img src=\"images\/articles\/graphics\/embedding-sustainability.svg\">\t\t\t<\/div>\t\t<\/div>\t\t\t\t\t<\/div><\/div><div class=\"section body\" id=\"sustainable-sourcing\">\t<div class=\"wrapper\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"quote-portrait\">\t\t\t\t\t\t<div class=\"module tablet-right\" data-module-type=\"image\" data-module-options='{\"aspectRatio\": 0.8}'>\t\t\t\t<img src=\"images\/articles\/e3\/hg-employee-marylene-lombardi-fr-skranz-SKR_4761.jpg\">\t\t\t<\/div>\t\t\t\t\t\t<div class=\"module\" data-module-type=\"quote\" data-module-options='{}' >\t\t\t\t<p class=\"citation\">\t\t\t\t\tAt Hager, sustainable sourcing is a strategic lever for resilience, innovation, and long-term value creation.\t\t\t\t<\/p>\t\t\t\t<p class=\"small-citation\">\t\t\t\t\tWe are embedding sustainability into every link of our global supply chain, from supplier selection to end-of-life, in alignment with our climate goals and ethical standards. By fostering collaborative relationships and holding ourselves and our partners accountable we are building a supply ecosystem that supports both our business objectives and a better future for people and the planet.\t\t\t\t<\/p>\t\t\t\t\t\t\t\t<p class=\"author\">\t\t\t\t\tMaryl\u00e8ne Lombardi<br> Senior Director, Head of Direct Sourcing \t\t\t\t<\/p>\t\t\t<\/div>\t\t\t\t\t\t<div class=\"module\" data-module-type=\"letter-line-drawing\" data-module-options='{\"file\": \"zero-top-right\", \"color\": \"#f1f1f1\", \"delay\": 1.0}'><\/div>\t\t\t\t\t<\/div>\t\t\t\t\t\t\t\t\t\t\t\t<p class=\"section-number\">\t\t\t03.5 \t\t<\/p>\t\t\t\t<h2>Sustainable sourcing<\/h2>\t\t\t\t<p class=\"gri\">\t\t\tGRI 3-3 Material topics <br>\t\t\tGRI 308-1&amp;2 Supplier environmental assessment <br>\t\t\tGRI 414-1&amp;2 Supplier social assessment <br>\t\t\tESRS 2 BP-2 \u00a710 General disclosures <br>\t\t\tESRS G1-2 \u00a715 Business conduct \t\t<\/p>\t\t\t\t<p class=\"section-number\">\t\t\t03.5.1 \t\t<\/p>\t\t\t\t<h3>Our ambition<\/h3>\t\t\t\t<p>\t\t\tAs part of our long-term sustainability strategy, and in response to increasing regulations (eg CSDDD, LkSG), we aim to reduce supplier-related sourcing risks by 2030. This commitment supports responsible sourcing, supply chain resilience and sustainable growth. \t\t<\/p>\t\t\t\t<p>\t\t\tOur programme focuses on two levers: decarbonising the supply chain and upholding ethics and human rights. \t\t<\/p>\t\t\t\t<h6><em>Decarbonisation<\/em><\/h6>\t\t\t\t<ul>\t\t\t<li>\t\t\t\t<em>Target:<\/em> 25% reduction in Scope 3 emissions by 2030.\t\t\t<\/li>\t\t\t\t\t\t<li>\t\t\t\t<em>Action:<\/em> Request product\u2013level carbon footprints, track supply chain greenhouse gas (GHG) data, and use the results to steer sourcing decisions.\t\t\t<\/li>\t\t<\/ul>\t\t\t\t<h6><em>Ethics and human rights<\/em><\/h6>\t\t\t\t<ul>\t\t\t<li>\t\t\t\t<em>Target:<\/em> Every supplier must agree to our Supplier Code of Conduct: Purchasing Conduct, Ethics &amp; Sustainable Sourcing.\t\t\t<\/li>\t\t\t\t\t\t<li>\t\t\t\t<em>Action:<\/em> Digital due diligence tools to monitor compliance; issues or violations to be flagged and remedied quickly.\t\t\t<\/li>\t\t<\/ul>\t\t\t\t<p>\t\t\tThese measures reinforce responsible sourcing<sup>2<\/sup>, supply chain resilience and long-term growth while meeting the 1,5\u00b0C climate ambition articulated in the Paris Agreement. The scope of our risk-based approach for sustainable sourcing practices is direct sourcing operations with a gradual onboarding of the remaining purchasing functions. \t\t<\/p>\t\t\t\t\t\t\t\t<div class=\"module\" data-module-type=\"image\" data-module-options='{\"aspectRatio\": 1.5}'>\t\t\t<img src=\"images\/articles\/e3\/HG_VH_Tag01_119.jpg\">\t\t<\/div>\t\t\t\t\t\t<p class=\"section-number\">\t\t\t03.5.2 \t\t<\/p>\t\t\t\t<h3>Supplier Code of Conduct<\/h3>\t\t\t\t<p class=\"gri\">\t\t\tGRI 205-2 Anti-corruption \t\t<\/p>\t\t\t\t<p>\t\t\tAt the heart of our supplier relationships is our Supplier Code of Conduct: Purchasing Conduct, Ethics &amp; Sustainable Sourcing, which translates our E3 principles into clear and actionable requirements for all our partners. This code outlines our expectations for ethical behaviour, social responsibility and environmental care, and serves as the foundation for collaboration and mutual trust throughout our supply network. \t\t<\/p>\t\t\t\t<p>\t\t\tThe acceptance of our Supplier Code of Conduct is a mandatory step in the supplier onboarding process and is also embedded in our contractual agreements. In 2024, over\u00a075% of\u00a0215 targeted suppliers<sup>3<\/sup> have formally committed to our code of purchasing conduct. \t\t<\/p>\t\t\t\t\t\t\t\t\t\t<div class=\"module\" data-module-type=\"static\" data-id=\"steps-process-box\">\t\t\t\t\t\t<h5>Supplier Code of Conduct: Purchasing Conduct, Ethics &amp; Sustainable Sourcing<\/h5>\t\t\t\t\t\t\t\t\t<div class=\"steps-process\">\t\t\t\t<div class=\"step\">\t\t\t\t\t<div class=\"module\" data-module-type=\"icon-animation\" data-module-options='{\"icon\": \"document-check\", \"colorScheme\": \"blue-yellow\"}'><\/div>\t\t\t\t\t<p>\t\t\t\t\t\tAgreement of our Code of Conduct \t\t\t\t\t<\/p>\t\t\t\t<\/div>\t\t\t\t<div class=\"arrow\"><\/div>\t\t\t\t<div class=\"step\">\t\t\t\t\t<div class=\"module\" data-module-type=\"icon-animation\" data-module-options='{\"icon\": \"monitoring\", \"colorScheme\": \"blue-yellow\"}'><\/div>\t\t\t\t\t<p>\t\t\t\t\t\tMonitor risks in the supply chain \t\t\t\t\t<\/p>\t\t\t\t<\/div>\t\t\t\t<div class=\"arrow\"><\/div>\t\t\t\t<div class=\"step\">\t\t\t\t\t<div class=\"module\" data-module-type=\"icon-animation\" data-module-options='{\"icon\": \"green-supplier\", \"colorScheme\": \"blue-yellow\"}'><\/div>\t\t\t\t\t<p>\t\t\t\t\t\tSustainability assessment of selected high-risk suppliers \t\t\t\t\t<\/p>\t\t\t\t<\/div>\t\t\t\t<div class=\"arrow\"><\/div>\t\t\t\t<div class=\"step\">\t\t\t\t\t<div class=\"module\" data-module-type=\"icon-animation\" data-module-options='{\"icon\": \"audit\", \"colorScheme\": \"blue-yellow\"}'><\/div>\t\t\t\t\t<p>\t\t\t\t\t\tAudits (administrative) of selected suppliers \t\t\t\t\t<\/p>\t\t\t\t<\/div>\t\t\t\t<div class=\"arrow\"><\/div>\t\t\t\t<div class=\"step\">\t\t\t\t\t<div class=\"module\" data-module-type=\"icon-animation\" data-module-options='{\"icon\": \"group-table\", \"colorScheme\": \"blue-yellow\"}'><\/div>\t\t\t\t\t<p>\t\t\t\t\t\tSupplier dialogue and corrective actions \t\t\t\t\t<\/p>\t\t\t\t<\/div>\t\t\t<\/div>\t\t\t\t\t\t\t\t<\/div>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<p class=\"section-number\">\t\t\t03.5.3 \t\t<\/p>\t\t\t\t<h3>\t\t\tManaging supply chain risk: Leveraging AI for real-time ESG risk monitoring \t\t<\/h3>\t\t\t\t<p>\t\t\tEffective supply chain risk management is crucial for ensuring the integrity of our E3 frame. We use Sphera, an AI-powered ESG and compliance tool, to identify, assess and address human rights, labour and environmental violations within our sourcing activities. \t\t<\/p>\t\t\t\t<p>\t\t\tSphera monitors publicly available data to flag potential ESG risks linked to our tier-one suppliers, who represent more than 90% of our total procurement spend. \t\t<\/p>\t\t\t\t<p>\t\t\tWhen potential violations occur, we apply a structured four-step compliance process: \t\t<\/p>\t\t\t\t<ol>\t\t\t<li>\t\t\t\tIdentification of the violation\t\t\t<\/li>\t\t\t\t\t\t<li>\t\t\t\tRisk categorisation (low, medium, high)\t\t\t<\/li>\t\t\t\t\t\t<li>\t\t\t\tCorrective action planning\t\t\t<\/li>\t\t\t\t\t\t<li>\t\t\t\tMonitoring and closure\t\t\t<\/li>\t\t<\/ol>\t\t\t\t<p>\t\t\tThis approach ensures a timely response and continuous improvement across our supply chain. \t\t<\/p>\t\t\t\t<p>\t\t\tIn 2024 our tool monitored 2.075 active suppliers and flagged 61 potential violations. Of these, 56 cases were verified as legitimate, and corrective actions were initiated. \t\t<\/p>\t\t\t\t<p>\t\t\tAs of this report, 55 cases have been resolved, while one high-impact case remains under active remediation. \t\t<\/p>\t\t\t\t<p>\t\t\tNotably, three of the identified cases were classified as high severity. This risk monitoring process ensures timely intervention and reinforces our commitment to responsible sourcing. \t\t<\/p>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"static-graphic managing-supply-chain-risk\">\t\t\t\t\t\t\t\t\t<div class=\"module\" data-module-type=\"panzoom-image\" data-module-options='{\"aspectRatio\": 2.6541353383, \"maxMediaquery\": 0}'>\t\t\t\t<img src=\"images\/articles\/graphics\/managing-supply-chain-risk.svg\">\t\t\t<\/div>\t\t<\/div>\t\t\t\t\t\t\t\t\t\t<div class=\"quote-portrait\">\t\t\t\t\t\t<div class=\"module tablet-right\" data-module-type=\"image\" data-module-options='{\"aspectRatio\": 1.1}'>\t\t\t\t<img src=\"images\/articles\/e3\/Bernd-Kehl-HG_AR_BK_0151.jpg\">\t\t\t<\/div>\t\t\t\t\t\t<div class=\"module\" data-module-type=\"quote\" data-module-options='{}' >\t\t\t\t<p class=\"citation\">\t\t\t\t\tAs we continue to align our procurement practices with our sustainability goals, we are embedding EcoVadis criteria into the selection process for all major RFX activities.\t\t\t\t<\/p>\t\t\t\t<p class=\"small-citation\">\t\t\t\t\tThis ensures that environmental, social, and ethical performance becomes a core consideration. It is a meaningful step towards building a more responsible and resilient supply chain.\t\t\t\t<\/p>\t\t\t\t\t\t\t\t<p class=\"author\">\t\t\t\t\tBernd Kehl<br> Senior Director, Group Real Estate, Investments and Business Services (GRIBS) \t\t\t\t<\/p>\t\t\t<\/div>\t\t<\/div>\t\t\t\t\t\t<p class=\"section-number\">\t\t\t03.5.4 \t\t<\/p>\t\t\t\t<h3>Derisking our supply chain: Leveraging EcoVadis IQ Plus<\/h3>\t\t\t\t<p>\t\t\tTo boost supply chain resilience and uphold our E3 standards we are rolling out data driven tools and partnerships that will support our suppliers in achieving a higher level of ethical and environmental performance. \t\t<\/p>\t\t\t\t\t\t\t\t\t\t<p class=\"section-number\">\t\t\t03.5.4.1 \t\t<\/p>\t\t\t\t<h4>EcoVadis IQ Plus integration<\/h4>\t\t\t\t<ul>\t\t\t<li>\t\t\t\tStrengthens our abstract risk framework with a rigorous, CSDDD \u2013 and LkSG \u2013 aligned model.\t\t\t<\/li>\t\t\t\t\t\t<li>\t\t\t\tAssesses every supplier in two respects:\t\t\t\t<ol>\t\t\t\t\t\t\t\t\t\t<li>\t\t\t\t\t\tSustainability risk (environment, labour and human rights, ethics, sustainable procurement) adjusted for industry and country.\t\t\t\t\t<\/li>\t\t\t\t\t\t\t\t\t\t<li>\t\t\t\t\t\tProcurement risk (spend, criticality, other internal factors).\t\t\t\t\t<\/li>\t\t\t\t<\/ol>\t\t\t<\/li>\t\t\t\t\t\t\t\t\t<li>\t\t\t\tCombines external datasets, live risk scanning, and EcoVadis ratings to classify suppliers from very low to very high risk.\t\t\t<\/li>\t\t<\/ul>\t\t\t\t<h6>Coverage and results<\/h6>\t\t\t\t<ul>\t\t\t<li>\t\t\t\t8.600+ suppliers mapped across 54 countries.\t\t\t<\/li>\t\t\t\t\t\t<li>\t\t\t\t193 flagged as high risk, giving clear priorities for engagement and corrective action.\t\t\t<\/li>\t\t<\/ul>\t\t\t\t<h6>Scope of assessment<\/h6>\t\t\t\t<ul>\t\t\t<li>\t\t\t\tDirect sourcing: Raw materials, components, finished goods.\t\t\t<\/li>\t\t\t\t\t\t<li>\t\t\t\tIndirect sourcing\/GRIBS: Operational goods and services.\t\t\t<\/li>\t\t\t\t\t\t<li>\t\t\t\tLogistics: Transport, storage, distribution.\t\t\t<\/li>\t\t<\/ul>\t\t\t\t<p>\t\t\tThrough targeted follow ups, collaboration and continuous improvement we are turning these insights into concrete risk mitigation steps and more resilient, responsible supply chains. \t\t<\/p>\t\t\t\t<h6>Supplier engagement based on EcoVadis IQ Plus<\/h6>\t\t\t\t<p>\t\t\tWe apply a tiered, risk-based approach to engage suppliers effectively: \t\t<\/p>\t\t\t\t<ul>\t\t\t<li>\t\t\t\tHigh\/very high risk: Prioritised for corrective action plans; persistent non-compliance may lead to contract termination.\t\t\t<\/li>\t\t\t\t\t\t<li>\t\t\t\tMedium risk: Required to improve based on scorecard results, with ongoing monitoring.\t\t\t<\/li>\t\t\t\t\t\t<li>\t\t\t\tLow risk: Subject to routine checks and simplified scorecard sharing.\t\t\t<\/li>\t\t<\/ul>\t\t\t\t<p>\t\t\tThis structure helps us to focus our efforts where risks are highest, while maintaining efficient oversight for lower-risk suppliers.Following the risk mapping of 8.600+ suppliers and 193 high-risk identifications we launched a pilot to test engagement. \t\t<\/p>\t\t\t\t<p>\t\t\tBy June 2025: \t\t<\/p>\t\t\t\t<ul>\t\t\t<li>\t\t\t\t30 suppliers were invited to join the EcoVadis scorecard campaign.\t\t\t<\/li>\t\t\t\t\t\t<li>\t\t\t\tTen submitted scorecards (one included expert review, two had scope changes).\t\t\t<\/li>\t\t\t\t\t\t<li>\t\t\t\tEight are in progress.\t\t\t<\/li>\t\t\t\t\t\t<li>\t\t\t\tFour declined to participate.\t\t\t<\/li>\t\t<\/ul>\t\t\t\t<p>\t\t\tThis gives a 61% response rate, slightly above the industry average (46%). We are following up with the remaining eight suppliers to ensure progress. \t\t<\/p>\t\t\t\t<p>\t\t\tThe pilot highlighted the importance of clear early communication, tailored follow-up based on response status, and having a defined process for non-responders. Feedback from direct and indirect sourcing teams will guide future improvements. \t\t<\/p>\t\t\t\t\t\t\t\t<div class=\"module inline-positioning\" data-module-type=\"letter-line-drawing\" data-module-options='{\"file\": \"chapter-intro-split-horizontal\", \"color\": \"#f1f1f1\", \"delay\": 1.0}'><\/div>\t\t\t\t\t\t\t\t<div class=\"quote-portrait\">\t\t\t\t\t\t<div class=\"module tablet-right\" data-module-type=\"image\" data-module-options='{\"aspectRatio\": 0.9}'>\t\t\t\t<img src=\"images\/articles\/e3\/IMG_1805f-Kopie.jpg\">\t\t\t<\/div>\t\t\t\t\t\t<div class=\"module\" data-module-type=\"quote\" data-module-options='{}' >\t\t\t\t<p class=\"citation\">\t\t\t\t\tThrough advanced research and participation in EU and national projects we are contributing to the development of recycling solutions that align with future regulation.\t\t\t\t<\/p>\t\t\t\t<p class=\"small-citation\">\t\t\t\t\tOur partnership with Hager is a great example of how supplier collaboration can accelerate sustainable transformation and create shared value across the value chain.\t\t\t\t<\/p>\t\t\t\t\t\t\t\t<p class=\"author\">\t\t\t\t\tDr. Andreas Stephan<br> Sustainability Manager EU\/Asia, Westlake Vinnolit \t\t\t\t<\/p>\t\t\t<\/div>\t\t<\/div>\t\t\t\t\t\t<div id=\"success-stories\">\t\t\t\t\t\t\t\t\t<p class=\"section-number\">\t\t\t\t03.5.4.2 \t\t\t<\/p>\t\t\t\t\t\t<h4>Success stories<\/h4>\t\t\t\t\t\t<h5>Logistics:<\/h5>\t\t\t\t\t\t<h6>Werner Sch\u00f6ndorf<\/h6>\t\t\t\t\t\t<p>\t\t\t\tOur long-standing logistics partner engaged proactively in the EcoVadis process, showing how shared values can advance sustainability. \t\t\t<\/p>\t\t\t\t\t\t<h5>Decarbonisation:<\/h5>\t\t\t\t\t\t<h6>Westlake Vinnolit<\/h6>\t\t\t\t\t\t<p>\t\t\t\tIn 2024 we replaced conventional PVC with GreenVin (renewable electricity-based) in our Tehalit and Bocchiotti product lines, cutting CO\u2082 by 32% per kg. This has avoided over 5.397 tonnes of emissions, proving that sourcing can drive climate impact. \t\t\t<\/p>\t\t\t\t\t<\/div>\t\t\t\t\t\t\t\t\t\t\t\t<p class=\"section-number\">\t\t\t03.5.5 \t\t<\/p>\t\t\t\t<h3>Conflict minerals due diligence<\/h3>\t\t\t\t<p>\t\t\tTo uphold responsible sourcing we run a\u202frigorous conflict minerals due diligence programme for tin, tungsten, tantalum and gold (3TG). Working with Assent, we map the origin of 3TG in all relevant products and require identified suppliers to submit the\u202fResponsible Minerals Initiative Conflict Minerals Reporting Template (CMRT). \t\t<\/p>\t\t\t\t<p>\t\t\tThis structured approach \u2013 transparency, traceability, and joint risk mitigation \u2013 meets international due diligence standards, supports upcoming regulations, and strengthens our shared commitment with suppliers to keep conflict minerals out of our value chain. \t\t<\/p>\t\t\t\t<p class=\"section-number\">\t\t\t03.5.6 \t\t<\/p>\t\t\t\t<h3>Supporting local suppliers<\/h3>\t\t\t\t<p class=\"gri\">\t\t\tGRI 204 Procurement practices \t\t<\/p>\t\t\t\t<p>\t\t\tAt Hager, supporting local communities is deeply rooted in our identity as a company that has grown from modest beginnings. That\u2019s why we prioritise building strong partnerships with local suppliers in every country in which we operate. \t\t<\/p>\t\t\t\t<p>\t\t\tBy strengthening local relationships we promote inclusive economic growth, boost community resilience and reduce environmental impact through shorter supply chains. This approach not only enhances our organisational agility but also creates shared value for both society and the environment. \t\t<\/p>\t\t\t\t<p>\t\t\tIn 2024 approximately 80% of our procurement spend was directed to local suppliers across key markets such as France, Germany, India, China, the UK, Italy, Spain, Switzerland, and Poland. \t\t<\/p>\t\t\t\t\t\t\t\t\t\t<div class=\"module\" data-module-type=\"box\" id=\"supplier-campaign\">\t\t\t<div class=\"content\">\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"number-content-wrapper \">\t\t\t\t\t<p>\t\t\t\t\t\t2024 campaign \t\t\t\t\t<\/p>\t\t\t\t\t<div class=\"number-container\">\t\t\t\t\t\t<span class=\"module\" data-module-type=\"counter\" data-module-options='{\"decimalPlaces\": 0, \"leadingZeros\": false, \"duration\": 1000, \"delay\": 0}'><span class=\"prefix\"><\/span><span class=\"number\">309<\/span><span class=\"suffix\">\u00a0suppliers<\/span><\/span>\t\t\t\t\t<\/div>\t\t\t\t\t<p>\t\t\t\t\t\t\t\t\t\t\t\t(approximately\u202f95% of our spend in 3TG relevant categories) were asked to complete the CMRT. \t\t\t\t\t<\/p>\t\t\t\t<\/div>\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"number-content-wrapper \">\t\t\t\t\t<p>\t\t\t\t\t\tResponse rate \t\t\t\t\t<\/p>\t\t\t\t\t\t\t\t\t\t<div class=\"number-container\">\t\t\t\t\t\t<span class=\"module\" data-module-type=\"counter\" data-module-options='{\"decimalPlaces\": 0, \"leadingZeros\": false, \"duration\": 1000, \"delay\": 600}'><span class=\"prefix\"><\/span><span class=\"number\">79<\/span><span class=\"suffix\">%<\/span><\/span>\t\t\t\t\t<\/div>\t\t\t\t\t\t\t\t\t\t<ul>\t\t\t\t\t\t<li>\t\t\t\t\t\t\t127 suppliers confirmed that no 3TG is present in their parts.\t\t\t\t\t\t<\/li>\t\t\t\t\t\t\t\t\t\t\t\t<li>\t\t\t\t\t\t\t72 suppliers reported either zero 3TG use or sourcing exclusively from verified conflict free smelters.\t\t\t\t\t\t<\/li>\t\t\t\t\t<\/ul>\t\t\t\t<\/div>\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\t\t<\/div>\t\t\t\t\t<\/div><\/div><div class=\"section body\" id=\"empowering-energy-transition\">\t<div class=\"wrapper\">\t\t\t\t\t\t<div class=\"quote-portrait\">\t\t\t\t\t\t<div class=\"module tablet-right\" data-module-type=\"image\" data-module-options='{\"aspectRatio\": 1.0}'>\t\t\t\t<img src=\"images\/articles\/e3\/Martial-Witt-HG_AR_MW_0173.jpg\">\t\t\t<\/div>\t\t\t\t\t\t<div class=\"module\" data-module-type=\"quote\" data-module-options='{}' >\t\t\t\t<p class=\"citation\">\t\t\t\t\tBreakthroughs in sustainable energy happen when we move beyond silos and build real partnerships.\t\t\t\t<\/p>\t\t\t\t<p class=\"small-citation\">\t\t\t\t\tOur role is to connect the right people and technologies \u2013 from energy storage to smart systems \u2013 to deliver integrated solutions that meet today\u2019s needs and tomorrow\u2019s ambitions.\t\t\t\t<\/p>\t\t\t\t\t\t\t\t<p class=\"author\">\t\t\t\t\tMartial Witt<br> Systems and Solutions Director \t\t\t\t<\/p>\t\t\t<\/div>\t\t\t\t\t\t<div class=\"module\" data-module-type=\"letter-line-drawing\" data-module-options='{\"file\": \"zero-top-right\", \"color\": \"#f1f1f1\", \"delay\": 1.0}'><\/div>\t\t\t\t\t<\/div>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<p class=\"section-number\">\t\t\t03.6 \t\t<\/p>\t\t\t\t<h2>Empowering the energy transition through innovation and collaboration<\/h2>\t\t\t\t<p>\t\t\tAs part of our commitment to shaping the electrical world of tomorrow, Hager continues to innovate at the intersection of sustainability, technology and customer value. In parallel with our partnerships in sustainable sourcing, we are collaborating with important players in the energy transformation, piloting smart, decentralised systems that optimise the integration of systems that are vital for the energy transition. \t\t<\/p>\t\t\t\t<p>\t\t\tThis includes our collaboration with Audi AG, where we are jointly exploring bidirectional charging\u2014specifically Vehicle-to-Home (V2H) technology. Since 2020, Hager Group and Audi have been testing how electric vehicles like the Audi e-tron can serve as mobile energy storage units, enabling homeowners to store self-generated solar energy and feed it back into their homes when needed. This project leverages Hager\u2019s advanced charging infrastructure and E3\/DC\u2019s home power plant technology to improve grid stability, reduce electricity costs, and enhance energy independence. \t\t<\/p>\t\t\t\t\t\t<div class=\"module tablet-right\" data-module-type=\"image\" data-module-options='{\"aspectRatio\": 0.65}'>\t\t\t<img src=\"images\/articles\/e3\/hg-audi-bidi-project-closing-blieskastel-de-skranz-SKR_5851.jpg\">\t\t<\/div>\t\t\t\t<p>\t\t\tSimilarly, E3\/DC, a Hager Group brand, has partnered with Ford Motor Company to bring bidirectional DC charging to Ford\u2019s electric models such as the Explorer and Capri. These vehicles can now act as energy storage extensions for buildings equipped with E3\/DC\u2019s energy storage systems. The collaboration enables surplus solar energy to be stored in the vehicle and later returned to the home, supporting grid relief and increasing the use of renewable energy. \t\t<\/p>\t\t\t\t<p>\t\t\tThe Prosumer Pilot Project in Benfeld is another project, demonstrating how collaborative innovation can unlock cleaner, more resilient energy models for the future. \t\t<\/p>\t\t\t\t<p>\t\t\tIn 2024, Hager, in close collaboration with Socomec<sup>4<\/sup> and Sovec<sup>5<\/sup>, successfully implemented a pioneering Prosumer Pilot Project at Socomec Innovation Centre in Benfeld, France. This initiative demonstrates our commitment to advancing smart, decentralised energy systems that are both sustainable and resilient. \t\t<\/p>\t\t\t\t<p>\t\t\tThe Prosumer model, defined under IEC\u00a060364-8-82<sup>6<\/sup>, transforms commercial buildings into both producers and consumers of energy. By integrating solar generation, electric vehicle charging infrastructure and energy storage into a unified management system, this approach supports optimised self-consumption, peak shaving, energy independence and operational supply continuity. \t\t<\/p>\t\t\t\t\t\t\t\t<p>\t\t\tThe Benfeld project serves as a demonstrator for the practical benefits of this model. Throughout 2024 and 2025 the project progressed from installation and commissioning to live operation, testing use cases such as self-consumption, grid reinforcement, peak shaving, and islanding. The insights gained have helped us to better understand system interoperability, grid constraints and user needs, strengthening the readiness of the solution for broader adoption. \t\t<\/p>\t\t\t\t<p>\t\t\tThis initiative also reflects the strength of a collaborative value chain for sustainability. By aligning the complementary expertise of Hager, Socomec and Sovec we developed a synergistic ecosystem that delivers more than the sum of its parts. Hager contributed to energy management and EV charging solutions; Socomec delivered power storage and analytics capabilities; Sovec supported with electrical installation expertise. \t\t<\/p>\t\t\t\t<p>\t\t\tThis integrated approach accelerates innovation and ensures that sustainability is embedded across every stage of the value chain whenever possible from design and deployment to operation and optimisation. \t\t<\/p>\t\t\t\t<p>\t\t\tBeyond technical implementation, the project serves as a platform for innovation and customer engagement. Through site visits and value proposition testing we are actively shaping a scalable business model that empowers stakeholders, including facility managers, fleet operators and investors, to take an active role in the energy transition. \t\t<\/p>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div><\/div><div class=\"section footnotes\" id=\"footnotes\">\t<div class=\"wrapper\">\t\t\t\t<p class=\"footnote\" data-id=\"1\">\t\t\tOECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. \t\t<\/p>\t\t<p class=\"footnote\" data-id=\"2\">\t\t\tFollowing a risk-based approach, the current scope of the sustainable sourcing strategy focuses primarily on direct sourcing. An ambition for indirect sourcing will be phased in progressively. \t\t<\/p>\t\t<p class=\"footnote\" data-id=\"3\">\t\t\tSuppliers representing 80% of our annual turnover. \t\t<\/p>\t\t<p class=\"footnote\" data-id=\"4\">\t\t\tSocomec is an industrial partner founded in 1922, specialising in the design, manufacture and deployment of electrical equipment and energy performance solutions. <a href=\"https:\/\/www.socomec.com\" target=\"_blank\">www.socomec.com<\/a>\t\t<\/p>\t\t<p class=\"footnote\" data-id=\"5\">\t\t\tSovec is a service-oriented partner company specialising in energy efficiency, technical maintenance, and facility management solutions, operating primarily in the building and industrial sectors. <a href=\"https:\/\/www.sovec-entreprises.fr\/\" target=\"_blank\">www.sovec-entreprises.fr<\/a>\t\t<\/p>\t\t<p class=\"footnote\" data-id=\"6\">\t\t\tIEC 60364-8-82 is an international standard published by the International Electrotechnical Commission, providing guidelines for the energy efficiency of electrical installations within buildings, focusing on design principles, monitoring, and control strategies to optimise energy performance. <a href=\"https:\/\/www.iec.ch\/\" target=\"_blank\">www.iec.ch\/std\/60364-8-82<\/a>\t\t<\/p>\t\t\t<\/div><\/div>","css":"@charset \"UTF-8\";.article[data-slug=e3] .section.chapter-overview{background-image:url(https:\/\/report.hagergroup.com\/annual-sustainability-report\/2024-25\/images\/articles\/e3\/HG_VH_Tag02_0581-SK-edit.jpg);background-position:100% 50%}@media only screen and (min-width:748px){.article[data-slug=e3] .section.chapter-overview{background-image:url(https:\/\/report.hagergroup.com\/annual-sustainability-report\/2024-25\/images\/articles\/e3\/1600\/HG_VH_Tag02_0581-SK-edit.jpg)}}@media only screen and (min-width:1100px){.article[data-slug=e3] 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