3 Engaged people (social issues)

3.1 Own Workforce (ESRS S1)

3.1.1 Policies related to own workforce (S1–1)

• Code of Conduct: Defines expectations for ethical behavior, respect, inclusion, and human rights compliance across all operations.
• Health & safety policy: Commitment to zero harm through continuous safety improvement.
• Diversity & inclusion policy: Equal opportunity employment regardless of gender, ethnicity, age, or background. Gender balance targets for management positions. Zero tolerance for discrimination or harassment.
• Training & development policy: Support for continuous learning through technical, leadership, and digital skills programs. Career growth opportunities through internal mobility. Individual development plans for all employees.
• Compensation policy: Fair and competitive remuneration based on role, performance, market benchmarks, and equal pay for equal work principles.

3.1.2 Processes for engaging with own workers about impacts (S1–2)

Our 2025 global employee engagement survey, conducted across all operations with an 88% participation rate, provided key indicators on how employees experience their workplace through engagement, psychological safety, and culture dimensions.

• Safety committees: Established at all major sites with worker representation ensuring employee voice in safety decisions. Committees meet monthly to review incidents and improvement opportunities.
• Employee engagement surveys: Achieved an impressive 88% participation rate (2023: 90%). This score is a strong indication of employee commitment to shaping their workplace.
• Regular communication:
  • Quarterly CEO town halls provide company updates and strategic direction.
  • Local town halls organized by managing directors in German, Swiss and U.S. manufacturing plants provide updates on operational information.
  • Q&A sessions enable direct dialogue between leadership and employees.

• Recognition programs: Innovation awards celebrate creative problem-solving and continuous improvement.
• Development conversations: Individual development plans established for employees identifying career goals, skill development needs, and action plans.
• Employee engagement metrics: Overall, the survey results show areas of both strength and challenge.
  • Employee Net Promoter Score (eNPS): Dropped sharply to –20 (2023: +6) during CORE restructuring period.
  • Employee engagement score: Remains steady at 73 (2023: 77), which is still above the benchmark.
  • Psychological safety survey result: 79 (2023: 81)

3.1.3 Processes to remediate negative impacts for own workers to raise concerns (S1–3)

• Business Ethics Hotline: Three incidents reported to Bystronicʼs Business Ethics Hotline in 2025 (2024: four incidents) - all investigated and closed as unfounded.
• Speak-up culture: 77% of employees feel safe to speak up (2025).
• Grievance mechanisms: Established channels for employees to raise concerns confidentially and with non-retaliation protection.
• Equal pay audits: Audit conducted at Niederönz plant (Switzerland) in 2021 identified no significant gender pay gaps for comparable roles and experience levels. Audits to be repeated in 2026.
• Root cause analysis: Conducted for all recordable safety injuries with corrective actions implemented.

3.1.4 Taking action on material impacts on own workforce (S1–4)

3.1.4.1 Employee engagement

Based on the global employee survey analysis, Bystronic maintains strong fundamentals in engagement and culture, with employees generally feeling motivated, supported, and able to be themselves. Team spirit, collaboration within local teams, and trust in immediate managers remain key strengths, alongside a strong client focus and respectful leadership. These results confirm that most employees clearly understand expectations and feel empowered in their daily work, even if overall outcomes show a slight decline compared to previous years.

However, the survey, conducted after the companyʼs restructuring and reorganization, highlights opportunities to improve alignment and collaboration across the organization. Employees find it difficult to see how their daily work links to the broader company strategy, and cross-functional cooperation remains limited due to silos and unclear accountability. Core processes require simplification, and while managers encourage development, tangible growth opportunities are lacking. The results also suggest a need for more open dialogue to foster innovation and constructive discussions.

Bystronic takes this feedback seriously. The top management and senior leaders have already reviewed key measures in dedicated workshops and defined further actions. At the team level, all managers have conducted follow-up discussions with their teams to agree on concrete actions. Sustainable improvement will depend on everyoneʼs contribution – strengthening collaboration, transparency, and shared ownership across all levels of the company.

3.1.4.2 Health and safety actions

• ISO 45001 certification: Achieved at Bystronic Laser AG (Switzerland) and Bystronic Tianjin Laser Ltd. (China). Target: expand certification coverage.

• Machine safety upgrades: Existing equipment retrofitted with latest guarding and interlock systems.
• Unconscious bias training for managers: Addresses implicit biases in hiring, promotion, and performance evaluation decisions.
• Mentorship program: Pairs female high potentials with senior leaders for career guidance and sponsorship.
• Promotion policies: Explicitly prioritize female candidates when qualifications are equal.

3.1.4.3 Training and development actions

• Technical skills training:
  • CNC programming for press brake operations
  • Laser technology fundamentals and advanced applications
  • Automation systems integration and programming
  • Quality control and measurement techniques
• Leadership development programs:
  • Management fundamentals for new supervisors
  • Coaching and feedback skills for experienced managers
  • Change management during organizational transitions
  • Strategic thinking for senior leaders
• Foundational Leadership Onboarding Training (new program of seven modules):
  • Foundations of finance (e-learning)
  • Recruiting as a leader (e-learning)
  • Recruiting as a leader practical exercise (virtual instructor)
  • Principles of self-management (e-learning)
  • Principles of team-management (virtual instructor)
  • Message delivery (virtual instructor)
  • Performance management process (e-learning)
• Digital skills upskilling:
  • Data analytics and visualization
  • Industry 4.0 concepts and applications
  • AI and machine learning basics
  • Software tools for engineering and operations

• Apprenticeship programs: There were 66 apprentices across the Group in 2025 (2024: 81). Focus areas: mechatronics, industrial engineering, software development, business administration.
• Flexible working arrangements: Available where operationally feasible for office-based employees using hybrid working arrangements combining office and remote work.
• Health promotion initiatives:
  • Health screenings at major sites
  • Fitness program subsidies
  • Ergonomics assessments and workstation optimization
  • Mental health awareness campaigns
• Sustainable commuting:
  • EBuxi shuttle service renewed 2025 in Niederönz connecting public transport to facility
  • Bike programs at major sites with secure storage and shower facilities
  • Carpooling matching services

• Parental leave: 14 weeks paid leave for primary caregiver and two weeks for secondary caregiver in Switzerland, with country-specific policies meeting or exceeding local requirements in other locations.

3.1.4.4 Fair compensation actions

• Compensation philosophy: Fair and competitive pay based on role, performance, market benchmarks, and equal pay for equal work, supported by a globally implemented job architecture that ensures consistency, transparency, and comparability across the organization.
• Transparent salary bands: Provides clarity on compensation ranges for each role level.
• Annual market benchmarking: Ensures competitiveness with industry peers and regional labor markets.
• Performance-based compensation: Links individual performance to annual merit increases and bonuses.

3.1.5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities (S1–5)

3.1.5.1 Status 2025

Management diversity increased from 20% in 2023 to 26% in 2025, exceeding our 2030 target (>25%).

This development reflects several organizational changes. As part of Bystronicʼs restructuring, some administrative and part-time roles were phased out, and a hiring freeze affected recruitment into certain non-management positions. At the same time, the reorganization reduced hierarchies, leading to a redefinition of management scope. Management positions are now defined at the N‑2 level rather than N‑3, which has increased the proportion of women within the management population.

3.1.5.2 Outlook 2026

Hierarchical levels alone are not a fully meaningful metric, as they reflect organizational design rather than job responsibility or remuneration. To enable a more robust and comparable monitoring of diversity, we will introduce job grades as complementary metrics.

TRIR = total recordable injuries per 100 full-time employees (per 200,000 worked hours)

Analysis: TRI rate now at 1.15, showing positive effect of accelerated actions implemented to reach 2030 target of ≤0.8. Zero fatalities in 2025.

3.1.6 Characteristics of the companyʼs employees (S1–6)

Employment type

As part of the CORE restructuring, several administrative and temporary contracts were eliminated.

Full-time vs part-time

3.1.7 Characteristics of non-employee workers in the companyʼs own workforce (S1–7)

Focus areas: Mechatronics, industrial engineering, software development, business administration.

3.1.8 Collective bargaining coverage and social dialogue (S1–8)

3.1.9 Diversity metrics (S1–9)

The post-restructuring organization became flatter, requiring a redefinition of management scope. Management positions are now defined at the N–2 level rather than N–3, which resulted in the inclusion of a higher proportion of women in the management population.

Gender distribution – governance bodies

Extended Executive Committee (EEC) through 2024 and then Executive Committee (EC) in 2025:

Analysis: As part of a comprehensive restructuring in 2024, Bystronic replaced its regional structure with a divisional one and reduced the size of the Executive Committee to four members.

Employees reporting directly to EEC through 2024 and then Executive Committee in 2025:

• Age distribution – reports to EC:
  • < 30 years: 3%
  • 30–50 years: 54%
  • > 50 years: 43%

Gender distribution – management

Management positions up to N–3 until 2024 and up to N–2 in 2025:

Analysis: The post-restructuring organization became flatter, requiring a redefinition of management scope. Management positions are now defined at the N–2 level rather than N–3, which resulted in the inclusion of a higher proportion of women in the management population.

• Regional distribution – management N–2:
  • EMEA: 68%
  • Americas: 7%
  • APAC: 6%
  • China: 19%

• Age distribution – management N–2:
  • < 30 years: 3%
  • 30–50 years: 54%
  • > 50 years: 43%

3.1.10 Adequate wages (S1–10)

Compensation ratio:

• Adequate wage commitment: Fair and competitive remuneration based on role, performance, market benchmarks, and equal pay for equal work principles.
• Market benchmarking: Annual market benchmarking ensures competitiveness with industry peers and regional labor markets.

3.1.11 Social protection (S1–11)

• Parental leave policy:
  • Primary caregiver: 14 weeks paid leave (Switzerland)
  • Secondary caregiver: 2 weeks paid leave (Switzerland)
  • Country-specific policies meet or exceed local requirements.
• Health insurance/pension/social security:
  • Employees of Bystronic are covered by social protection systems, including social security, health care, accident insurance, and old-age and retirement benefits. In Switzerland, employees benefit from statutory social security programs covering old-age and survivorsʼ benefits, disability, unemployment, health and accident insurance, complemented by occupational pension arrangements with employer and employee contributions. Employees in other countries are covered by applicable local statutory social protection systems and, where relevant, employer-supported supplementary benefits.

3.1.12 Training and skills development metrics (S1–13)

Training hours

Analysis: Reduced number of trainings in the DNE business unit while the Systems division maintained its number of trainings. The gender gap in average training hours reflects the composition of training programs: a significant share of total training hours is allocated to technical service and maintenance roles, which are predominantly filled by males.

• Training programs
  • Technical skills: CNC programming, laser technology, automation systems, quality control
  • Leadership development: management fundamentals, coaching, change management, strategic thinking
  • Digital skills: data analytics, Industry 4.0, AI/ML basics, software tools

3.1.13 Health and safety metrics (S1–14)

3.1.13.1 Management system coverage

• Safety training: Annual safety training programs for manufacturing employees
• Safety committees: Active at all major sites with worker participation in monthly meetings

Incident metrics at manufacturing sites

TRIR = Total recordable injuries per 100 full-time employees (per 200,000 worked hours)

Analysis: Injury types – typical injuries associated with bending and automation machines include cuts and abrasions from sheet metal edges, pinching of fingers, bruises, and musculoskeletal strain related to manual handling or repetitive movements.

Number of injuries at manufacturing sites decreased in 2025. Important steps such as ISO 45001 in Niederönz had good results, however we acknowledge further progress is required to reach our target in 2030.

• Safety audits: At Bystronic Laser AG, we conduct a safety inspection every two weeks and an annual internal audit.

Psychological safety

3.1.14 Work-life balance (S1–15)

• Flexible working arrangements: available where operationally feasible for office-based employees using hybrid working arrangements combining office and remote work.

3.2 Workers in the Value Chain (ESRS S2)

3.2.1 Policies related to value chain workers (S2–1)

Bystronicʼs Supplier Code of Conduct, implemented in 2023–2024, prohibits forced labor, human trafficking, and child labor (minimum age 15), while requiring freedom of association, non-discrimination, fair wages that meet living wage minimums, reasonable working hours (maximum 60 hours per week), and safe working conditions. Coverage reaches 100% of new suppliers with active acknowledgment among existing suppliers. The Human Rights Policy published in 2024 establishes a commitment to international standards, due diligence processes, and remediation procedures consistent with UN Guiding Principles on Business and Human Rights.

3.2.2 Processes for engaging with value chain workers and workersʼ representatives about impacts (S2–2)

The Human Rights Due Diligence process screens over 2,000 suppliers for conflict minerals, child labor and forced labor risks. Suppliers flagged undergo a detailed assessment through questionnaires, documentation review, and audits. The EcoVadis platform coverage reached 20% of purchase volume in 2025, representing 120 suppliers assessed; targeting 30% by 2026.

3.2.3 Processes to remediate negative impacts and channels for value chain workers to raise concerns (S2–3)

The Business Ethics Hotline provides confidential 24/7 reporting in multiple languages with a zero-retaliation policy. Three incidents were reported in 2025. Suppliers with confirmed risks implement remediation plans with Bystronic support. Suppliers scoring below 45/100 on EcoVadis develop Corrective Action Plans with a 12-month reassessment.

3.2.4 Taking action on material impacts on value chain workers, and approaches to mitigating material risks and pursuing material opportunities (S2–4)

Analysis: Zero confirmed violations across 2,000+ suppliers indicate effective selection and management. Five total audits were conducted: China (3), Poland (1) and Italy (1). Resulted in zero critical findings. Average Labor & HR score improved to 54/100, above industry average of 48. Salient risks include excessive working hours and occupational health and safety (moderate risk). Child labor, forced labor, and discrimination assessed as low risk in Tier 1 and 2 suppliers.

3.2.5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities (S2–5)

3.3 Consumers and End-Users (ESRS S4)

3.3.1 Policies related to consumers and end-users (S4–1)

The Board-approved Product Safety and Quality Policies in each plant commit to compliance with all local safety regulations (like CE¹, UL² in EMEA, America), continuous safety improvement, clear documentation and support, and integration of safety throughout the product lifecycle. ISO 9001:2015 certification covers 78% of manufacturing sites with comprehensive quality controls and traceability systems. For connected equipment, GDPR compliance, data encryption, and security assessments protect customer data. The Product Eco-design Policy integrates energy efficiency, material selection, and recyclability into design, conducts lifecycle assessments, and provides sustainability data supporting customer reporting needs.

3.3.2 Processes for engaging with consumers and end-users about impacts (S4–2)

Demo centers in Switzerland, USA, China, Germany, UK, Sweden and Korea host approximately 500 customer visits annually. Technical training programs build operator and maintenance skills through classroom, on-site, and online training with thousands trained annually. The CRM system monitors feedback and safety incidents, processing over 100,000 customer requests in 2025.

3.3.3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns (S4–3)

Customers report safety concerns through the CRM customer portal (myBystronic), by direct contact, and through our service network. Root cause analysis is conducted for all significant incidents, followed by design improvements, field modifications, and customer communications. Our service network provides regional centers, certified technicians, remote diagnostics, and spare parts availability.

3.3.4 Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities (S4–4)

Products incorporate comprehensive safety features. Laser systems include protective cabins, safety interlocks, emergency stops, and exhaust systems. Press brakes feature two-hand controls, light curtains, and finger guards. Automation systems include safety fencing, presence detection, and safe stop functions. Our products support high safety standards and undergo CE, UL certification testing required in some regions (EMEA/Americas) before release.

Energy efficiency features include next-generation chillers targeting an over 30% improvement versus current generation. AI-powered process optimization reduces material waste. Modular architecture enables upgrades and component reuse. LCA data supports customer Scope 3 reporting including energy consumption, material composition, and end-of-life scenarios.

3.3.5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities (S4–5)

Analysis: Zero fatalities and zero recalls in 2025. Five customer injuries reported, requiring continued focus on training and safety features.