Annual Report 2024

4 Combating corruption and safeguarding human rights

4.1 Responsible corporate governance

Our stakeholders expect us to maintain high ethical standards and integrity across our business activities. Responsible business, the governance pillar of our sustainability strategy framework, represents our approach to meeting these expectations and underpins our efforts to achieve our 2030 sustainability goals.

The main risks related to corruption and human rights issues include:

The companyʼs anti-corruption and human rights strategies and guidelines define goals and obligations as well as measures and responsibilities related to a range of such issues. The Executive Board oversees the initiatives to prevent corruption and to safeguard human rights and continuously reviews their effectiveness. Measures are taken to reduce any negative impacts.

The companyʼs ambitions on these matters include:

4.2 The fight against corruption

Policy

Bystronic fights corruption in all areas of its business activities. A number of policies and practices are in place to prevent and detect corruption. The companyʼs anti-corruption policy is set out in the Code of Conduct and in a dedicated Combating Corruption Policy. The policy prohibits all forms of bribery and other corrupt practices.

Due diligence

Bystronic carefully examines suppliers and business partners to ensure that they are not involved in corrupt practices. The company applies various practices to prevent corruption, including training of all employees on anti-corruption policies and procedures.

Training

Training covers topics such as recognizing and reporting corruption, whistleblowing procedures, ethical competition, and the consequences of corruption.

Monitoring

Bystronic also monitors its business activities and relationships with suppliers and business partners for signs of corruption. This includes reviewing transactions, conducting internal investigations, and receiving and investigating whistleblower complaints. Bystronic regularly reviews its policies and practices and makes adjustments where necessary.

Reporting

Bystronic investigates any suspicion of corruption. In 2024, four cases of potential non-compliance were reported through Bystronicʼs Business Ethics Hotline. None of them related to corruption.

4.3 Human rights and a sustainable supply chain

Policy

The company published a human rights policy in 2024 reinforcing our commitment to the highest human rights standards – with regard to non-discrimination and equality; freedom from forced labor and human trafficking; child labor prohibition; fair wages and working conditions; health, safety and well-being; respect for freedom of association and collective bargaining; womenʼs rights; supplier due diligence; access to a grievance mechanism and non-retaliation; continuous improvement and training.

Due diligence

Bystronic carefully examines suppliersʼ documentation, conducts audits and verifies supplier certifications. Relevant impacts, risks and opportunities are assessed on an ongoing basis, and measures are implemented. Bystronic recognized the need for a standardized risk management process in its supply chain. Consequently, in 2024 a Standard Operating Procedure (SOP) was established for conducting regular Human Rights Due Diligence (HRDD) risk analyses. This SOP, developed through workshops and industry experience, aims to provide guidance on steps, responsibilities, and internal controls for analyzing risks and addressing potential issues within the supplier base. Training workshops focused on HRDD legislation and implementation have been conducted. Furthermore, in 2023, an EiQanalysis was conducted covering 2,000+ suppliers for risks associated with conflict minerals, child labor and forced labor. The risk management process will continue to be implemented in 2025 to improve effective risk mitigation.

Supplier Code of Conduct

In 2023/2024, Bystronic implemented a comprehensive Supplier Code of Conduct requiring suppliers to adhere to strict standards regarding labor rights, environmental protection, and the fight against corruption. These standards are regularly monitored and enforced through audits and assessments.

The Supplier Code of Conduct outlines the expectations and requirements for our suppliers and their partners, as well as third parties, conducting business with Bystronic as a minimum standard. Suppliers are expected to comply with international human rights standards, labor regulations, environmental responsibilities, and fair business practices. Bystronic welcomes it if suppliers and business partners go beyond the minimum standards.

EcoVadis platform

Bystronic increased the number of suppliers represented in the EcoVadis platform in 2024. This tool provides a comprehensive assessment of suppliersʼ environmental, social and ethical practices.

Reporting

Reporting with regard to the Ordinance on Due Diligence and Transparency with respect to Minerals and Metals from Conflict-Affected Areas and Child Labor (DDoTr): Based on the detailed analysis conducted and the ordinanceʼs criteria, in 2024, Bystronic concluded that the company is exempt from due diligence and reporting obligations with regard to both conflict minerals and child labor. Bystronic has done a risk assessment in human rights: The last audit that looked for child labor or risk materials in the supply chain did not find any issues. As Bystronic sources components from many countries around the world, the company is working to develop a robust risk management system and to improve remediation and prevention processes.

  1. The LRQA EiQ platform enables a tailored, risk-based program aligned with the supply chains of each individual business and a range of audit results.

RESPONSIBLE BUSINESS

2024

 

2023

 

2022

 

2021

 

Purchase share of suppliers in EcoVadis platform

20%

 

10%

 

5%

 

 

 

EcoVadis OEM score (scale 1 to 100)

46

 

46

 

35

 

 

 

Number of incidents reported to Bystronic’s Business ethics hotline

4

 

4

 

-

 

 

 

Number of corruption incidents

-

 

-

 

-

 

 

 

Number of human right identified issues in supply chain

-

 

-

 

 

 

 

 

5 About this report 3 Social issues