S2 – Workers in the Value Chain

Policies related to value chain workers

Crayon has established policies and practices to address labor and human rights in our value chain as part of our ESG strategy.

Value Chain Human Rights Focus

As part of our Social pillar with vision "To serve and develop people inside and outside our organization," we have identified labor and human rights in the value chain as a specific focus area under our five-year ESG strategy (2025-2030).

Due Diligence Approach

Credit Risk and Supplier Management

• Subsidiaries are responsible for performing credit check and control with suppliers and partners
• Group Treasury oversight of credit risk on a centralized level
• Systematic evaluation of counterparties and business partners

Supplier Relationship Management

• Engagement in dialogue with both end users and software vendors to agree on balanced solutions
• Compliance management with vendor terms and conditions
• Risk assessment of business relationships throughout the value chain

Partnership Standards

Global Software Vendor Relationships

Crayon maintains strategic relationships with major global software vendors including:

• Microsoft (recognized as global winner Microsoft Scale Solutions LSP Partner of the Year)
• AWS (appointed as Authorized Distributor for European Economic Area)
• Broadcom (authorized Cloud Commerce Manager for VCSP partners)
• Google, Adobe, and other major technology providers

These partnerships involve alignment with vendor ethical standards and responsible business practices.

Compliance Framework

Anti-Corruption and Integrity

• ISO 37001 Global certification for our anti-bribery and corruption management system
• Crayon Integrity Handbook outlining expected behaviors for business relationships
• Zero tolerance approach to corruption and unethical business practices

Business Ethics Integration

• Business ethics and integrity identified as a focus area under our Governance pillar
• Corporate governance standards applied to value chain relationships
• Enterprise risk management including value chain risk assessment

United Nations Global Compact Commitment

As a signatory to the United Nations Global Compact since 2020, we embrace its 10 principles which span:

• Labor rights including freedom of association and elimination of forced labor
• Human rights including support and respect for internationally proclaimed human rights
• Environment and anti-corruption principles

These principles guide our approach to value chain worker rights and conditions.

Implementation Across Global Operations

Geographic Scope

• Policies apply across operations in 46 countries
• Local adaptation while maintaining global standards
• Cultural sensitivity in implementation across diverse markets

Industry-Specific Considerations

As an IT consultancy, our value chain primarily involves:

• Software vendors and technology partners
• Professional service providers
• Technology infrastructure suppliers
• Local business service providers

Future Development

With labor and human rights in the value chain as a specific focus area in our ESG strategy, we will:

• Enhance due diligence processes for value chain partners
• Strengthen monitoring of worker conditions in our supply chain
• Develop more detailed policies and procedures for value chain human rights
• Improve transparency and reporting on value chain worker impacts

This represents our commitment to responsible business practices throughout our global value chain and ensuring respect for worker rights beyond our direct employment relationships.

Policies related to value chain workers

Supplier standards and requirements We demand high standards from all our suppliers and business partners. Not only in relation to the goods and services they provide, but also in relation to how they demonstrate social responsibility and treat their employees.

Human rights requirements Our suppliers must respect fundamental human rights, including the prohibition on the use of child labour and of forced labour or the exploitation of involuntary labour.

Ethical guidelines in contracts Ethical guidelines have been incorporated into our supplier contracts, which demand that suppliers meet occupational health and safety standards, maintain proper pay and working conditions and respect fundamental human rights, to mention just a few requirements.

Scope of application These requirements apply to all suppliers and business partners in DSB's value chain.

Our fundamental codes – the Code of Conduct and the Supplier Code of Conduct – are derived from the company's corporate vision. These documents apply without exception to all workers and service providers along the value chain. Their purpose is to ensure compliance with laws, standards and policies throughout the company in order to foster a working environment characterised by integrity, respect and fair and responsible conduct.

Supplier Code of Conduct

Subject matter and objectives: General standards under our corporate vision of »Solutions beyond tomorrow« as part of our sustainable corporate strategy – expectations regarding the ethical, social and environmental responsibility of business partners

Environmental, Social and Governance aspects:

• Environmental protection and climate change mitigation
• Respect for human rights including human trafficking, prohibition of forced labour and child labour, anti-discrimination, diversity and inclusion
• Anti-corruption, Fraud prevention, Conflicts of interest, Competition, Confidentiality, Privacy

Scope: Suppliers

Responsibility: Corporate Governance, Executive Board

Third-party standards and initiatives:

• Guiding Principles on Business and Human Rights
• International Bill of Human Rights
• UK Modern Slavery Act

Communication: Corporate website; internal communication channels such as: SharePoint, Intranet, Executive Board

supplemented by the Supplier Handbook, including ESG requirements

Human Rights Statement

Subject matter and objectives: Human rights strategy – Why human rights due diligence and Krones belong together

Topics:

• Governance and players
• Due diligence obligations
• Risk management
• Preventive measures
• Reporting system
• Reporting and effectiveness control

Scope: Own workforce, suppliers and customers; No specific groups – entire workforce

Responsibility: Corporate Sustainability, Executive Board

Third-party standards and initiatives:

• Sustainable Development Goals
• UNGC principles
• OECD guidelines for Multinational Enterprises
• ILO core labour standards
• ETI Base Code
• German Supply Chain Due Diligence Act (LkSG)
• Guiding Principles on Business and Human Rights
• International Bill of Human Rights
• UK Modern Slavery Act

Communication: Corporate website; internal communication channels such as: SharePoint, Intranet, Executive Board

Value Chain Worker Policies

Supplier management: The model provides for the responsible management of the supply chain, through the qualification, selection and management of suppliers, as well as the adoption of a risk analysis tool within the scope of due diligence audits.

Supply chain training: 198 key suppliers received training on sustainability issues in 2024, with a target of ≥ 500 by 2027.

ESG integration: 20% (in value) of major new tenders awarded include ESG criteria/requirements, with a target of >70% by 2028.

Supplier engagement: Leonardo has been pursuing its policy of strengthening and improving the supply chain for some years, leveraging a transparent and sustainable partnership relationship with the excellences in its Supply Chain, to give rise to a more innovative, integrated and resilient industrial eco-system.

We require all our suppliers and business partners to comply with applicable laws and expect them to follow equivalent ethical business standards, as outlined in our Supplier Code of Conduct.

Neste Supplier Code of Conduct outlines the basic requirements Neste expects its suppliers and their first tier suppliers, contractors and business partners to adhere to and implement throughout their businesses. The Code covers five key elements: Compliance with laws and regulations; Business conduct; Environmental impact and climate change; Human and labor rights; Occupational health, safety and security.

All Neste´s renewable raw material suppliers are subject to rigorous sustainability due diligence, as stated in Neste's Supplier Sustainability Approval Principle.

Policies related to value chain workers

Third Party Code

Our external partner risk management (EPRM) framework is supported by our Third Party Code, which sets out the standards we oblige external partners to comply with, including human rights and environmental sustainability. Our Third Party Code is consistent with the Pharmaceutical Supply Chain Initiative (PSCI) principles for responsible supply-chain management. It is also in line with the UNGPs, as well as the OECD due diligence guidance for responsible business conduct.

Human rights commitment

Novartis is committed to upholding and respecting human rights. In our Code of Ethics, we commit to "conduct our business in a manner that respects the rights and dignity of all people." This is reflected in our Human Rights Commitment Statement, which establishes our foundational commitment to the International Bill of Human Rights, the International Labour Organization's core labor conventions and the United Nations Guiding Principles on Business and Human Rights (UNGPs).

Supply chain due diligence

External partners are regularly assessed and monitored against the labor and human rights provisions set out in our Third Party Code. We have a monitoring system in place that tracks remediation actions regarding human and labor rights at external partner sites, and their successful resolution through time-bound corrective action plans.

Supplier requirements

Bribery and corruption risks in our supply chain are addressed by our Anti-Bribery Third Party Guideline and Third Party Code. The Code is an integral part of every supplier contract. Our suppliers are regularly surveyed through audits that we commission from external companies, applying a risk-based approach.

Sustainable supply chain

Acquisition of Catalent by Novo Holdings and the related acquisition by Novo Nordisk of three manufacturing sites from Novo Holdings completed.

Key decarbonisation measures include switching to low-carbon materials and feedstock across our production network, shifting our distribution model to low-emissions transportation and supporting our suppliers in transitioning to renewable energy. To date, more than 1,800 suppliers have already committed to make the switch.

Our Code of Conduct was updated to align with our Strategy 2030 and new regulatory requirements, such as supply chain due diligence and sustainability management best practices. We strengthened our existing commitments, particularly related to climate change and human rights, and introduced new ones to address emerging material topics like biodiversity, ecosystems, and the rights and welfare of workers in our value chain. These commitments are fundamental to our operations and continued success.

Value Chain Workers Policies

Supplier Code of Conduct: We communicate our expectations to suppliers through the Roche Supplier Code of Conduct. This includes requirements for suppliers to provide equal pay for work of equal value and to provide a workplace free of harsh treatment, harassment and discrimination.

Human Rights in Value Chain: In a globalised world, business value chains often span across international borders, giving millions of people an opportunity to participate in the global economy; however, this also brings challenges to ensuring workers' human rights. Roche upholds human rights principles across our own operations and our value chain.

Working Conditions Requirements: Suppliers failing to provide equal pay for work of equal value contribute to gender inequality due to e.g. lack of awareness and lack of communication of necessary requirements. We address this risk through our Supplier Code of Conduct and supplier engagement processes.

Anti-Discrimination Measures: Suppliers failing to provide a workplace free of harsh treatment, harassment and discrimination (e.g. particularly towards migrant workers, but also regarding ethnicity, social origin, religion or political beliefs, age, gender, sexual identity or orientation, disability or HIV status) lead to decreased trust for Roche due to legal and regulatory non-compliance issues.

Risk Management Approach: We have policies in place as well as a risk management approach to prevent, detect and mitigate risk of potential infringement on human rights and its adverse impacts, including throughout our supply chain.

Policies related to value chain workers

Supply chain responsibility commitment TKH is committed to ensuring responsible labor practices throughout our value chain. We expect our suppliers to meet high standards for worker welfare, safety, and rights.

Supply chain labor standards

• Assessment of child/forced labor risks in our value chain
• Implementation of policies prohibiting child and forced labor in supplier operations
• Regular evaluation of working conditions and work-related rights in the value chain
• Integration of labor standards requirements in supplier contracts and agreements

Supplier sustainability requirements

• Comprehensive supplier audits to assess sustainability-related risks including labor conditions
• 78.2% of copper suppliers assessed with 2024 risk management assessment
• Active dialogue with strategic suppliers to improve labor practices
• Requirements for suppliers to demonstrate compliance with labor standards

Due diligence processes

• Systematic assessment of labor-related risks in supplier operations
• Regular supplier audits focusing on working conditions and worker welfare
• Monitoring of supplier compliance with labor standards and regulations
• Risk-based approach to supplier assessment and management

Worker health and safety in value chain

• Requirements for suppliers to maintain safe working conditions
• Assessment of health and safety practices in supplier operations
• Support for suppliers in improving workplace safety standards
• Integration of health and safety considerations in supplier selection

Value chain worker engagement

• Processes for addressing worker concerns in the supply chain
• Channels for reporting labor-related issues and violations
• Support for suppliers in establishing worker grievance mechanisms
• Collaboration with suppliers on worker engagement best practices

Remediation and improvement

• Corrective action plans for identified labor-related issues in supply chain
• Support for suppliers in addressing labor practice deficiencies
• Continuous improvement programs for value chain labor standards
• Regular monitoring of remediation progress and effectiveness

Industry collaboration

• Participation in industry initiatives for responsible supply chain management
• Collaboration with certification programs like The Copper Mark
• Sharing of best practices for value chain worker welfare
• Support for industry-wide improvements in labor standards

Transparency and reporting

• Regular monitoring and reporting of value chain labor performance
• External verification of supply chain sustainability practices
• Transparency in supplier assessment and improvement activities
• Integration of value chain worker considerations in sustainability reporting

The Group has implemented policies related to value chain workers including a selection process for suppliers based on criteria in line with the Duty of Care and Sapin 2 laws as well as environmental criteria. The Group maintains a responsible supply chain approach.

Engagement with Value Chain Workers

Supplier development programs: In addition to the programmes already in place or completed (LEAP, ELITE Leonardo Lounge), the Company has defined a set of principles and rules for the assessment of key suppliers, specifically oriented towards the development and growth of the Supply Chain with a view to long-term sustainability (Leonardo Assessment and Development for Sustainability).

Training and collaboration: The cluster aims to engage suppliers to expand Leonardo's commitment to sustainability throughout the value chain. It encapsulates the collaboration, development and training initiatives of suppliers - mostly SMEs - on digital transformation, cyber security, and social and environmental responsibility.

Science-based targets engagement: In 2024, internal training activities were started to engage suppliers in defining their science-based decarbonisation goals, which is among Leonardo's SBTi-validated objectives.

In 2024, we conducted capacity building training for our renewable raw material suppliers in Asia, Oceania, the Americas and EMEA. The focus last year was on health and safety, as the majority of the findings of the renewable raw material supplier audits in 2023 were related to safety practices. In addition, capacity building training was held on the topics of environmental management and human rights.

Neste invited all its active suppliers and encouraged its main suppliers to invite their suppliers to the training. More than 80 raw material suppliers joined these different capacity building training sessions with over 120 participants globally.

We use worker voice technology to enable direct and anonymous engagement with workers on mobile devices. In 2024, we conducted 501 anonymous worker surveys in our supply chains across Asia and North America.

Processes for engaging with value chain workers about impacts

Direct worker engagement

We concluded a pilot project aimed at engaging directly with workers in our supply chain. This involved a comprehensive survey on working conditions. To address the survey's findings, we are actively providing ongoing capability-building support to strengthen our external partners' ability to implement effective solutions.

Supplier engagement and assessment

All suppliers are subject to risk assessments when we engage with them and at a regular frequency thereafter. Suppliers flagged for high risk are subject to an onsite audit by our integrated assurance team.

PSCI collaboration

We collaborate with industry partners such as the Pharmaceutical Supply Chain Initiative (PSCI) on topic-specific supply-chain projects.

Supplier capability building

In January 2024, we introduced a redesigned and largely automated process to risk assessments to gain speed, improve quality and cover additional risk areas (e.g., business continuity management and human rights risks related to certain raw materials).

We are actively providing ongoing capability-building support to strengthen our external partners' ability to implement effective solutions based on survey findings from direct worker engagement.

Our SpeakUp Channel, which we launched in October 2024, offers our employees and our value chain workers a safe, anonymous way to report work-related grievances through our OMV Integrity Platform.

Processes for engaging with value chain workers about impacts

Supplier engagement framework TKH engages with value chain workers through comprehensive supplier management processes and direct collaboration with our supply chain partners.

Supplier assessment and dialogue

• Regular supplier audits to assess working conditions and labor practices
• 78.2% of copper suppliers assessed with 2024 risk management assessment
• Active dialogue with strategic suppliers to improve labor practices and worker welfare
• Systematic engagement on sustainability-related risks including worker impacts

Worker welfare monitoring

• Assessment of child/forced labor risks and working conditions in supply chain
• Evaluation of health and safety practices in supplier operations
• Monitoring of worker rights and labor standards compliance
• Regular review of supplier labor practices and worker treatment

Collaborative improvement programs

• Support for suppliers in establishing worker engagement mechanisms
• Collaboration on best practices for worker welfare and safety
• Joint initiatives to improve working conditions in the supply chain
• Knowledge sharing on effective worker engagement approaches

Grievance and feedback mechanisms

• Support for suppliers in establishing worker grievance procedures
• Channels for reporting labor-related concerns in the supply chain
• Processes for addressing worker complaints and issues
• Follow-up on reported concerns and remediation efforts

Certification and standards programs

• Engagement through certification programs like The Copper Mark
• 59.0% of Tier-1 copper suppliers certified by The Copper Mark (target > 80%)
• Support for suppliers in achieving labor standards certifications
• Participation in industry initiatives for worker welfare improvement

Direct engagement activities

• Site visits and inspections to assess worker conditions
• Direct communication with worker representatives where appropriate
• Participation in supplier worker engagement activities
• Support for supplier worker training and development programs

Continuous improvement process

• Regular review of supplier engagement effectiveness
• Enhancement of engagement processes based on outcomes and feedback
• Integration of worker engagement results into supplier management
• Long-term partnership development focused on worker welfare improvement

Transparency and accountability

• Regular reporting on supply chain worker engagement activities
• External verification of engagement processes and outcomes
• Public disclosure of supply chain labor performance and improvements
• Integration of worker engagement in sustainability reporting

We assess human rights risks when planning to enter new sourcing regions for our renewable raw materials. Our sustainability screening for raw material suppliers and our sustainability audits have a strong human rights focus and prioritize the assessment of impacts on people.

In 2024, we conducted a total of 141 sustainability audits: 66 on renewable and recycled raw materials; 38 on terminals; and 37 contractor audits. Of these, 66 audits were carried out for renewable raw material suppliers.

We have established site-level complaints channels for workers in our value chain and support various reporting mechanisms for addressing concerns.

Processes to remediate negative impacts and channels for value chain workers

External grievance mechanism

Our SpeakUp grievance mechanism is also open to external parties, including value chain workers. Grievances can be filed via webform or telephone with an independent external service, which is available 24/7.

Remediation monitoring system

We have a monitoring system in place that tracks remediation actions regarding human and labor rights at external partner sites, and their successful resolution through time-bound corrective action plans.

2024 remediation activities

Overall, we identified 2,615 remediation actions with our suppliers. Of these, 302 were associated with human and labor rights. The increase of remediation actions in 2024 was mainly driven by new assessment categories added by the Pharmaceutical Supply Chain Initiative (PSCI), as well as the finalization of legacy supplier assessments.

Capability building support

To address survey findings from direct worker engagement, we are actively providing ongoing capability-building support to strengthen our external partners' ability to implement effective solutions.

Third-party audits

We carry out risk assessments and selected audits among external partners in various risk areas including human rights; health, safety and environment; labor rights; information security; anti-bribery and corruption, and; business continuity management.

Our SpeakUp Channel, which we launched in October 2024, offers our employees and our value chain workers a safe, anonymous way to report work-related grievances through our OMV Integrity Platform. Through this, we aim to identify and rectify work-related misconduct, fostering a culture of transparency, accountability and trust.

See page 137 for processes to remediate negative impacts and channels for value chain workers to raise concerns.

Processes to remediate negative impacts and channels for value chain workers to raise concerns

Remediation framework for value chain workers TKH has established comprehensive processes to address negative impacts on value chain workers and provide channels for raising concerns about working conditions and labor practices.

Grievance and reporting mechanisms

• Support for suppliers in establishing worker grievance procedures
• Channels for value chain workers to report labor-related concerns and violations
• Anonymous reporting options where workers prefer confidentiality
• Clear procedures for escalating serious labor violations to TKH management

Supplier audit and investigation processes

• Regular supplier audits to identify potential negative impacts on workers
• 78.2% of copper suppliers assessed with comprehensive risk management processes
• Systematic investigation of reported labor-related concerns
• On-site inspections to verify working conditions and labor practices

Corrective action and remediation

• Development of corrective action plans for identified labor violations
• Support for suppliers in addressing labor practice deficiencies
• Timeline-based remediation requirements for serious violations
• Regular monitoring of remediation progress and effectiveness

Child and forced labor prevention

• Specific assessment and remediation processes for child/forced labor risks
• Immediate action requirements for any identified child or forced labor
• Support for affected workers and families in remediation efforts
• Prevention measures to avoid recurrence of child/forced labor violations

Health and safety remediation

• Immediate action requirements for serious health and safety violations
• Support for suppliers in improving workplace safety conditions
• Worker safety training and awareness programs
• Investment in safety equipment and workplace improvements where needed

Non-retaliation protection

• Clear policies protecting workers from retaliation for raising concerns
• Monitoring for retaliation against workers who report violations
• Support for workers facing retaliation for exercising their rights
• Training for suppliers on appropriate response to worker concerns

Continuous monitoring and improvement

• Regular follow-up assessments to verify effectiveness of remediation
• Ongoing monitoring of previously identified and remediated issues
• Continuous improvement in remediation processes and outcomes
• Integration of lessons learned into supplier management practices

Industry collaboration on remediation

• Participation in industry initiatives for supply chain labor remediation
• Collaboration with certification bodies like The Copper Mark on remediation standards
• Sharing of best practices for effective remediation processes
• Support for industry-wide improvements in worker protection and remediation

Value Chain Worker Impact Management

Due diligence processes: The Group systematically carries out due diligence activities before and after the completion of partnerships and joint ventures. A due diligence is performed before dealing with a third party under an offset agreement, which is conducted according to the relevant international best practices.

Risk assessment: The Company has defined a set of principles and rules for the assessment of key suppliers, specifically oriented towards the development and growth of the Supply Chain with a view to long-term sustainability (Leonardo Assessment and Development for Sustainability).

Supply chain resilience: Third-party acquisitions of suppliers relevant to the Group could change the terms and conditions of contract renewals, with costs or timing being less convenient for the Company. Leonardo manages this through transparent and sustainable partnership relationships with excellences in its Supply Chain.

In 2024, we continued to develop our sustainability due diligence practices by focusing our audits on suppliers with the highest risks and most significant strategic importance. In 2025, we plan to further strengthen our supplier due diligence in accordance with upcoming regulation such as the EU's Corporate Sustainability Due Diligence Directive (CSDDD).

We are committed to advancing responsible recruitment in our operations and value chains, including:

• Adding no-recruitment-fee clauses to contracts with recruitment agencies
• Strictly enforcing Neste Supplier Code of Conduct no-recruitment-fee policy in sustainability audits
• Monitoring implementation of corrective actions from audits of migrant worker recruitment agencies

Audit findings by category (renewable raw material suppliers, %):

• Health & Safety: 46%
• Environment: 37%
• Human and Labor Rights: 10%
• Ethical Business Practices: 8%

Taking action on material impacts on value chain workers

Enhanced due diligence framework

In alignment with the evolving regulatory landscape on value chain due diligence, we also enhanced our external partner labor rights due diligence and risk assessment framework.

Risk-based approach

The due diligence efforts are applied in proportion to the level of identified risk, which is determined by the probability and severity of potential adverse impacts. We carry out risk assessments and selected audits among external partners in various risk areas including human rights; health, safety and environment; labor rights; information security; anti-bribery and corruption, and; business continuity management.

Supplier risk assessment

All suppliers are subject to risk assessments when we engage with them and at a regular frequency thereafter. Suppliers flagged for high risk are subject to an onsite audit by our integrated assurance team.

High-risk market support

In 2024, we continued to develop human rights due diligence tools and processes to further support our operations in high risk and conflict-affected markets. These markets present unique challenges that require businesses to adapt their strategies to navigate and operate effectively.

Automated assessment process

In January 2024, we introduced a redesigned and largely automated process to risk assessments to gain speed, improve quality and cover additional risk areas (e.g., business continuity management and human rights risks related to certain raw materials).

Industry collaboration

We collaborate with industry partners such as the Pharmaceutical Supply Chain Initiative (PSCI) on topic-specific supply-chain projects.

Taking Action on Value Chain Workers

Supplier Code Implementation: We communicate our expectations to suppliers through the Roche Supplier Code of Conduct. This serves as our primary mechanism for addressing working conditions in our value chain, including equal pay requirements and anti-discrimination measures.

Due Diligence Process: We conduct due diligence to ensure these risks are mitigated and managed throughout our supply chain. This includes assessment of whether there are reasonable grounds to suspect child labour in our value chain.

Risk Mitigation: We manage risks related to suppliers failing to provide equal pay for work of equal value and suppliers failing to provide a workplace free of harsh treatment, harassment and discrimination through our comprehensive supplier management and monitoring processes.

Human Rights Implementation: Roche upholds human rights principles across our value chain through policies and risk management approaches to prevent, detect and mitigate risk of potential infringement on human rights and its adverse impacts.

Monitoring and Assessment: We assess suppliers' compliance with our expectations regarding working conditions, equal treatment opportunities, and human rights protections as part of our ongoing supplier management processes.

Workers in the value chain

Schiphol is taking proactive measures to safeguard working conditions across the value chain. We want our employees to feel welcome, comfortable, valued, inspired and proud to work for Schiphol Group. We prioritise employee well-being and career growth by offering fair pay, work-life balance, career progression and a safe, secure and private work environment.

Quality of work in tenders

In 2024, Schiphol was actively integrating quality of work-related minimum requirements and award criteria in tenders for labour-intensive services at the airport, such as cleaning, security and taxi services. Examples of requirements and criteria are attractive and adequate income, predictable work schedules, and working conditions that contribute to safe, healthy and attractive work. Service companies commit to these principles and are assessed in part on quality of work, with the purpose of increasing the attractiveness of working at Schiphol.

In order to improve the quality of work offered by cleaning companies in the terminal and baggage basement, Schiphol in 2024 announced that it would secure new, long-term contracts with GOM, Hago Airport Services and Victoria. Schiphol will work more closely with the cleaning companies and their employees. Quality of work for the staff, in addition to having a cleaner terminal, is a top priority.

The tendering processes for security work at the airport and the concession for baggage handling that started in 2024 also include requirements and award criteria aimed at the quality of work for the employees involved.

Social dialogues

In 2024, Schiphol organised a number of social dialogues with the unions, their executives and companies in security, cleaning, cargo and the temporary employment sector. As part of these dialogues, participants discussed progress as a result of the Social Agreements of 2022 and 2023. For separate sectors (i.e., security, cleaning, cargo), Schiphol, unions, executives and companies conducted a social dialogue on relevant topics related to quality of work.

These social dialogues provide a platform for critical voices to express what needs to be improved in terms of quality of work. It also gives discussion partners the opportunity to jointly seek solutions and improvements. The social dialogues ensure continuous attention for initiatives that improve the quality of work and contribute to stable employment relationships and an attractive place to work.

Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions

Strategic approach to value chain worker management TKH takes comprehensive action to address material impacts on value chain workers while managing related risks and pursuing opportunities for improvement.

Supply chain assessment and risk management

• Effectiveness: 78.2% of copper suppliers assessed with 2024 risk management assessment
• Progress: 59.0% of Tier-1 copper suppliers certified by The Copper Mark (target > 80%)
• Systematic assessment of child/forced labor risks across the supply chain
• Regular evaluation of working conditions and work-related rights in value chain
• Risk-based approach to supplier selection and ongoing management

Supplier certification and standards implementation

• Active promotion of The Copper Mark certification among copper suppliers
• Support for suppliers in achieving and maintaining labor standards certifications
• Integration of certification requirements in supplier contracts and agreements
• Regular monitoring of certified suppliers to ensure continued compliance

Active supplier engagement and improvement

• Comprehensive supplier audit programs focusing on labor practices
• Active dialogue with strategic suppliers to improve sustainability practices
• Joint initiatives with suppliers to enhance worker welfare and safety
• Technical assistance and support for supplier capability development

Child and forced labor prevention

• Implementation of zero-tolerance policies for child and forced labor
• Specific risk assessment processes for child and forced labor in supply chain
• Immediate remediation requirements for any identified violations
• Prevention programs and supplier training on child and forced labor risks

Health and safety improvement initiatives

• Requirements for suppliers to maintain safe working conditions
• Support for suppliers in implementing health and safety management systems
• Regular assessment of workplace safety practices in supplier operations
• Investment in supplier safety training and capability building

Remediation and corrective action effectiveness

• Systematic corrective action plans for identified labor-related violations
• Regular monitoring of remediation progress and outcomes
• Support for suppliers in addressing labor practice deficiencies
• Continuous improvement in remediation processes and effectiveness

Industry collaboration and leadership

• Participation in industry initiatives for responsible supply chain management
• Collaboration with certification programs and standards organizations
• Sharing of best practices and lessons learned with industry peers
• Advocacy for improved labor standards across industry supply chains

Performance monitoring and continuous improvement

• Regular tracking of supply chain labor performance indicators
• External verification of supply chain sustainability practices
• Continuous enhancement of supplier management and worker protection programs
• Integration of value chain worker considerations in strategic decision-making

Challenges and opportunities

• Challenge: Achieving 80% certification target for Tier-1 copper suppliers
• Opportunity: Leading industry transformation in supply chain labor practices
• Risk management: Proactive identification and mitigation of labor-related risks
• Value creation: Building sustainable and responsible supply chain partnerships

We are working to further increase sustainability in our supply chains. Our previous target was to have 80% of suppliers improve their sustainability performance upon reevaluation. Moving forward, we are concentrating on suppliers that generated inadequate results in evaluations. For the time frame up to 2030, we are working toward ensuring that, annually, 80% of suppliers who underwent a sustainability evaluation during the reporting period, and who had inadequate results in a prior comparable evaluation, improve their sustainability performance. In 2024, the figure was 76%.

446 BASF suppliers screened as part of Together for Sustainability

Value Chain Targets

Supply chain sustainability engagement: Internal training activities were started to engage suppliers in defining their science-based decarbonisation goals, which is among Leonardo's SBTi-validated objectives.

We are working toward specific targets related to workers in our value chain as part of our Human Rights ambition 2030:

• Responsible recruitment: We commit to and promote the Employer Pays Principle, with implementation in high risk areas by 2030, to ensure that no worker pays for a job and the costs of recruitment are paid for by the employer, not the worker.

• Living wages: Require strategic contractors and suppliers to pay their employees a living wage by 2030.

In 2024, we assessed the living wage practices of 11 renewable raw material suppliers to gain understanding of supplier wage practices and raise awareness on this topic.

Targets related to managing material negative impacts on value chain workers

Remediation targets and progress

Continuous improvement commitment

We are committed to reducing the percentage of overdue human and labor rights remediation actions and strengthening our external partners' ability to implement effective solutions.

Enhanced assessment coverage

The increase of remediation actions in 2024 was mainly driven by new assessment categories added by the Pharmaceutical Supply Chain Initiative (PSCI), as well as the finalization of legacy supplier assessments, demonstrating expanded coverage of value chain worker risks.

Capability building objectives

We are actively providing ongoing capability-building support to strengthen our external partners' ability to implement effective solutions based on findings from direct worker engagement surveys.

Integration with sustainability criteria

Contracts that include environmental sustainability criteria now cover 76% of Scope 3 emissions, which represents an increase of 19 ppts versus the previous year, demonstrating integration of sustainability requirements into supplier relationships.

See page 137 for targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities.

Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities

Supply chain worker welfare targets

Child and forced labor prevention targets

Working conditions improvement targets

Supplier engagement and certification targets

Long-term value chain worker targets

By 2030 and ongoing:

• Achieve > 80% of Tier-1 copper suppliers certified by The Copper Mark
• Maintain 100% assessment coverage of high-risk suppliers
• Eliminate child and forced labor from entire supply chain
• Ensure all suppliers meet minimum working condition standards
• Establish effective worker grievance mechanisms across supply chain

Risk management and opportunity targets

• Continuous improvement in supply chain labor risk identification and mitigation
• Enhancement of supplier capability and performance in worker welfare
• Industry leadership in responsible supply chain management practices
• Integration of value chain worker considerations in all supplier decisions

Remediation and improvement targets

• 100% remediation of identified labor-related violations within agreed timelines
• Continuous enhancement of supplier labor practices and worker welfare
• Zero tolerance for serious labor violations with immediate corrective action
• Regular monitoring and verification of remediation effectiveness

Performance monitoring targets

• Annual assessment and reporting of value chain worker performance
• External verification of supply chain labor practices and improvements
• Benchmarking against industry best practices and standards
• Transparency in supply chain labor performance and challenges