Sustainability Report 2021-2022

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TABLE OF CONTENTSSTRATEGYENVIRONMENTSOCIAL
GOVERNANCE

04 Letter from the CEO
06 Strategy
09 Environment09		Climate Change Mitigationand Energy
12 Social
12		Working Conditions –Own Workforce
16		Equal Treatment
and Opportunities for All –Own Workforce
20 Governance20		 Corporate Culture24		Responsible Supply Chains
27 KPI Table
31 GRI Content Index

03

DATA

TABLE OF CONTENTS

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LETTER FROM THE CEO
GRI 2-22
Dear readers,
The release of our 2021/2022 Sustainability Report marks a significant milestone for the Heraeus Group. As we navigate thecomplexities of the global business landscape, our commitment to sustainability and corporate responsibility remains at theforefront of our strategic vision.
Two years ago, in our 2020 Group Sustainability Report, we underscored the urgency of addressing carbon emissions and theimperative of fostering diversity within our ranks. Today, I am proud to share the significant progress we’ve made on thesefronts.
Environment: our commitment to the environment is not just about compliance; it’s about leadership. We have successfully set
up targets to align our own operations with the 1.5 °C global warming trajectory, echoing the ambitions of the Paris Agreement.
Our Group-level commitment to a 42% absolute decarbonization1 from 2021 to 2030 is not just a number; it’s a reflection of
our dedication. I am particularly proud that all our Operating Companies have embraced this vision with individual commitments.
Our transition to renewable energy sources, exemplified by our partnership to derive energy from regional photovoltaic plants orrooftop installations, is a testament to our proactive approach. We understand that the journey to carbon neutrality requires
both strategic investments and daily operational changes. From energy-saving measures at our facilities to responsible sourcing
practices, every step counts.
Furthermore, our ongoing project to measure Group-wide Scope 3 emissions underscores our holistic approach to environmental
stewardship. We have set the goal of having the Group’s full Scope 3 emissions measured by mid 2024.
Social: at Heraeus, the safety and well-being of our employees are paramount. We’ve set ambitious targets, aiming for an LTIRof less than 2 by 2025. Our commitment is evident in the early 2023 figures, which indicate a promising trend towards ourgoal. Furthermore, our aspiration for zero health-related incidents is supported by our endeavours to have 80% of our production sites fulfill our internal EHS management system requirements.
Our commitment to diversity, equity, and inclusion (DEI) has been unwavering. In 2022, we elevated DEI to a Group-overarching priority. The majority of our Operating Companies have not only set their own diversity targets but also instituted a­detailed reporting mechanism, updating the Group Management Committee every quarter. This level of accountability ensuresthat we remain true to our goals and values.
In the realm of talent management, we take immense pride in our approach to nurturing and developing our workforce. A testament to our effective talent management strategy is the fact that the majority of our leadership positions are filled fromwithin our talent pool. This not only underscores our belief in the potential of our employees, it also reinforces our commitment
to providing growth opportunities and fostering a culture of internal advancement.
This strategy’s effectiveness is evident, as more than 60% of vacant management positions were filled internally between
2019 and 2022.
In the reporting year, we began crafting our HR Ambition, a strategic foundation aimed at making Heraeus an “employer ofchoice” in an increasingly competitive labor market. This ambition is built on four key pillars: boosting our attractiveness for
top talent, nurturing leadership development, promoting a culture aligned with Heraeus values, and being a staunch ambassador for diversity, equity, and inclusion. Through centralized and decentralized training programs, we invest in the ongoingprofessional development of our managers and employees. Our digital learning platform ensures our workforce is equipped withthe skills and knowledge for the future.
Governance: we have significantly bolstered our sustainability management governance. The establishment of a robust Group
Sustainability Team, with the Head of Group Sustainability reporting directly to me, is a testament to the importance we placeon this domain. Additionally, the creation of the ESG Chapter, which convenes monthly, ensures swift decision-making andprovides Board oversight, including my personal involvement, on ESG topics.

1

Scope 1 & 2 GHG emissions

LETTER FROM THE CEO

05

Enjoy the reading.

Jan Rinnert
CEO and Chairman of the Board of Managing Directors of Heraeus GroupSTRATEGYENVIRONMENT

In conclusion, I invite you to delve into this report, to understand our initiatives, appreciate our achievements, and join us in
our ongoing journey towards a sustainable and inclusive future. Your trust and partnership are invaluable to us, and together, I
am confident that we can create a legacy of positive impact.

SOCIALTo our stakeholders, I want to extend my heartfelt gratitude. Your unwavering support and constructive feedback have been
­instrumental in shaping our sustainability journey. As we move forward, I personally commit to ensuring that the Heraeus Groupremains at the forefront of sustainability, setting benchmarks, and driving positive change.

GOVERNANCE

We are in the midst of identifying our Group material topics, signalling our intent to broaden our sustainability ambition. Thismeans that our next report will not only encompass a wider range of topics but will also be underpinned by even more robust
commitments.

DATA

Heraeus is also a significant player in the photovoltaic industry. Our silver metallization paste significantly enhances the efficiency of PV modules. Through recycling initiatives, like the recovery of the rare earth element neodymium, we not only ensure
resource security but also contribute to significant CO2 savings. These are but a few examples of how our products are leaving
a lasting, positive imprint on our planet.

TABLE OF CONTENTSAt Heraeus, we are immensely proud of the positive impact our products have on the environment, a concept we fondly term
as our “handprint.” Recycling precious metals, for instance, significantly reduces the CO2 footprint by approximately 98%
compared to primary materials. Our innovations in iridium catalysts pave the way for green hydrogen production, while our
precious metals catalysts play a pivotal role in reducing the harmful effects of nitrous oxide, a very potent greenhouse gas.

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STRATEGYGRI 2-1, -2, -6, 201-1

OUR STRATEGY AND BUSINESS MODEL
A Family-Owned Technology Group
Headquartered in Hanau, Germany, Heraeus is a world-­
leading technology group with operations worldwide. Incorporated in 1851, its roots can be traced back to a family
pharmacy founded in 1660. Today, the Heraeus Group is
an internationally active portfolio company with innovativetechnologies and solutions based on broad materials expertise and technology leadership.
As an internationally active family-owned organisation, theHeraeus Group maintains a broadly diversified portfolio that is
managed from Heraeus Holding GmbH (“Heraeus Holding”).
The Operating Companies being part of the portfolio determine
their respective business strategies while Heraeus Holding
determines the corporate portfolio strategy and reviews andchallenges the performance of the Operating Companies.
Under its umbrella, the Operating Companies operate morethan 100 sites in 40 countries. Heraeus Holding structures
its Operating Companies into four overarching Business Platforms, each comprising several Operating Companies:• Metals & Recycling
Materials and technologies related to metals,­especially precious metals, and circular economy• Healthcare
Materials and technologies related to medical­technology, orthopedics, and infection management• Semiconductor & Electronics
Materials and technologies for electronics, e-mobility,
semiconductors, optical fibers, and digital technologies• Industrials
Materials and technologies for industrial production
and processes
The Operating Companies are partly supported by the­Heraeus Service Platforms, which provide complementarybusiness-boosting offerings such as high-value services
and consultancy.
Heraeus’ Operating Companies are leading providers of
products on numerous global sales markets, including medical equipment, semiconductors, chemicals, steel, photovol­
taics, and automotive products. This wide range of markets
necessarily translates to a correspondingly wide range offramework conditions, market and national regulations, andmanufacturing materials and processes in addition to oppor­
tunities, risks, and areas of impact. Heraeus Group thus cultivates a shared understanding of operational independence
under a guiding strategic umbrella. The Operating Companies
act independently within their segment and according totheir respective business environments. Group strategy andgovern­ance are designed to provide both a binding framework of responsibility as well as the necessary scope for individualized realization.

Overview of Heraeus Group

Heraeus Holding
Operating Companies, arranged in Business Platforms
Metals &Recycling

Healthcare

Semiconductor& Electronics

Heraeus Medical

Heraeus Electronics

Heraeus Electro-Nite

Heraeus Amloy

Heraeus Medevio

Heraeus Epurio

Heraeus Photovoltaics

Heraeus Remloy

Norwood Medical

Heraeus Conamic

Heraeus Noblelightrevalyu

Mo-Sci

Heraeus Comvance

Heraeus Battery Technology

ETS

Heraeus Printed Electronics

Smart Steel Technologies3

Heraeus High Perf. Coatings

3

Industrials

Heraeus Precious Metals

22Service Platforms

Majority shareholding
Minority shareholding

Heraeus Business Solutions
Heraeus Consulting& IT Solutions
Heraeus Health& Education Services
Heraeus Site Operations

STRATEGY07

SUSTAINABILITY GOVERNANCE AT HERAEUS
Effective Structures to Operationalize Strategy andResponsibility
The Heraeus Board of Managing Directors is the Group’s
highest governing body. It comprises the Group Chief Executive Officer (CEO), Chief Financial Officer (CFO), and two
Chief Operating Officers (COO)4. Its perspective on the Portfolio is enriched via the Group Management Committee,
which is made up of the members of the Board of Managing
Directors and six other executives from Human Resources,
Legal, Investments, Portfolio Management and M&A. The
Board of Managing Directors bears responsibility for the topic
of sustainability from a portfolio perspective.
The Head of Group Sustainability provides the interface
between the Group sustainability framework and the sustainability strategies in the Operating Companies. The Head ofGroup Sustainability reports directly to the CEO and is tasked
with defining the sustainability framework for the Heraeus
Group, guiding sustainability development at the various Operating Companies, supporting them with implementation,

4

At year-end 2023, one of the COOs will leave Heraeus.

STRATEGYENVIRONMENTThis report has not been subjected to external review by anauditing company. We are currently focused on preparing
our organization to fully meet the requirements of both theEuropean Sustainability Reporting Standards (ESRS) andthe Corporate Sustainability Reporting Directive (CSRD). As
part of this process, we are in intensive contact with a number of consulting and auditing companies for relevant guidance on the above-named changes and frameworks. As thiswork is still ongoing, the decision was taken not to subject
this 2021/2022 report to a formal external assurance. Nevertheless, the preparation of a materiality assessment andselection of performance indicators is being carried out specifically with a view to ensuring future auditability of oursustainability reporting.

SOCIALThe reporting period for this 2021/2022 Sustainability­Report was January 1, 2021, to December 31, 2022. As thereport was prepared in late 2023 and published in December 2023, we have also included information on our progressin 2023 in certain areas. Up until now, Heraeus Holding
has published sustainability reports every two years. Goingforward, and in light of changes to the regulatory framework, we plan to report annually. Future sustainability reporting will prospectively be integrated with our annual financial
reporting by 2026.

External Assurance

and working towards ensuring adherence to Heraeus Holding’s
regulatory standards such as CSRD. In 2023, the Group’s
primary platform regarding the organization of topics arisingfrom responsibility – the Group Responsibility Committee –launched an ESG Chapter, which meets on a monthly basis.
The Group Sustainability Team reports to the ESG Chapter
on key sustainability-related topics. The ESG Chapter is madeup of the CEO, CFO, Group Human Resources Officer (GroupHR Officer), the Group General Counsel, and the Head ofGroup Sustainability. It is charged with discussing and deciding on ESG (environment, social, governance) topics, mea­sures, and targets from a portfolio perspective – and not operationally. Likewise from 2023, the Sustainability Network
has begun meeting on a monthly basis, comprising the Sustainability Heads of the Operating Companies and relevant
corporate functions, to exchange on general Group direction,
best practices, and learnings. These structures and processes ensure the Operating Companies are empowered to create
an own sustainability strategy, roadmaps, and targets as well
as Heraeus Holding’s adherence to regulatory standards and aminimum consistency among the Operating Companies.

GOVERNANCE

This Group Sustainability Report has been structured with aview to the guidance of the European Sustainability ReportingStandards (ESRS), which the Group is to comply with as of
the reporting year 2025. The scope of reporting comprises
all Group companies that are included in the consolidated
group of the relevant financial report. A small number of Operating Companies, such as Norwood Medical, Mo-Sci, ETS,
and SKO may partially diverge from the standard company
processes. In 2021, Heraeus Group purchased Norwood
Medical, a US-based healthcare company; this entity has
been included in the 2021/2022 reporting accordingly.

With regard to the collection of key performance data,changes were made during the reporting period to the Groupsoftware solution used. The improved system for collecting
data relevant to carbon accounting now allows us to gather
Scope 1 and Scope 2 data from all sites (previously only
production sites). Our reporting of emissions factors in CO2
equivalents has thus been updated Group-wide. Other related
processes for collecting and verifying data were also adjusted.
These improvements help ensure a higher level of accuracy
and quality of our carbon accounting data.

DATA

Report Content and Reporting Period

TABLE OF CONTENTSGRI 2-3, -4, -5, -9, -10, -12, -13, -14, -15, -17

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GRI 2-29

Ongoing Dialogue with Stakeholders Shapes Our
Development
With Operating Companies active in segments ranging fromelectronics and industrials to health and recycling technology
as well as its tradition as a family-owned company, Heraeus
has a correspondingly broad group of interested stakeholders.
Such stakeholders include, above all, our customers, ouremployees and employee representative bodies, our suppliers,
our shareholders, investors, financial institutions and othercapital market players as well as local communities, associations, social interest groups, and scientists. In addition, own
media and environment analyses are used to ensure we havea full picture of the most important expectations regarding
Heraeus Holding on the part of policymakers and the generalpublic.

The principle of ongoing open dialogue on activities, successes, and, naturally, areas for improvement is one we pursue with our stakeholders. The insights gained from such­dialogue regularly flow into the continued development of ourcorporate strategy and responsibility management, such as
into how we deal from a corporate portfolio perspective withcrucial risk topic areas. In formulating policies, we havetaken into account the valuable perspectives and interests ofkey stakeholders. Maintaining a lively exchange of feedback
and ideas allows us to identify key challenges facing our Groupat an early stage and to meet them successfully. By better
understanding stakeholders’ needs and expectations, we aim
to further strengthen their trust, as well as foster sustainability at Heraeus.

FOCUS OF REPORTING AND MATERIALITY
The primary aim of this report is to provide interested stakeholders with enhanced transparency on how Heraeus Holding is managing sustainability-related topics and taking onchallenges in this area. Topics for this report were guided by
the issues reported on in past sustainability reports, namely
environmental management, social responsibility, and governance and compliance. In the area of environmental management, the topics of climate change mitigation and energy
are the focus of our reporting; we see these areas as bothcarrying the greatest risks and offering the greatest opportunities for positive impact. In the area of social responsibility,
our focus areas are working conditions and equal treatment
and opportunities for our worldwide workforce. With respect
to compliance and governance, our overall business conduct,in particular with respect to supply chain management, andour corporate culture are the focus. As Heraeus Holding is stillin the process of adjusting its systems and processes to fully
CSRD-compliant sustainability reporting, this 2021/2022
Sustainability Report is not structured around the results ofa materiality assessment.
In order to comply with the sustainability reporting stan­dards coming into effect as well as to meet our stakeholders’expectations, a materiality assessment and corresponding
identification of material topics will in future provide the basis
for Heraeus Holding’s reporting. In 2023, Heraeus Holding
began a materiality assessment according to the ESRS principle of “double materiality,” i. e. such that an evaluationof materiality from two perspectives is achieved. The double
materiality assessment will consider both the inside-out
perspective (impact Heraeus has on a topic) and the outside-­in perspective (risks and opportunities a topic creates for
Heraeus). To kick off this process, Group Sustainability held
a number of workshops in 2022 with relevant Group functions and the support of external consultants. The workshops
focused on creating a knowledge foundation on the upcoming reporting requirements and determining the best approachto carrying out a corresponding materiality assessment by
Heraeus Holding with dual perspective.
Our objective in conducting the double materiality analysis is
to assess and understand the Group’s relevant and significant environmental, social, and governance-related risks andopportunities as well as impacts on society and our environment. In order to properly identify and prioritize the material
topics, with the support of a consultancy, all Operating Companies have provided their structured and exhaustive inputs
to the Group Sustainability Team. To validate this bottom-up
approach, we cross-challenged the input with the relatedGroup functions, engaged with relevant internal and external
stakeholders, and conducted a peer analysis. As of the timeof writing, we are finalizing a list of Group-wide material
topics. Going forward, we will be focusing on ensuring fulladherence to ESRS and CSRD reporting through improving
governance on these topics, improved KPI reporting, andtarget setting.

ENVIRONMENT

09

ENVIRONMENTCLIMATE CHANGE MITIGATION AND ENERGYGRI 2-23, -24, 201-2, 302-1, -2, 305-1, -2

POLICIES & RESPONSIBILITIESIn a first step towards making our operations as efficient,safe, and environmentally friendly as possible, Heraeus Holding has asked the Operating Companies to apply the stan­dards of the ISO 14001 (environmental management) andISO 45001 (occupational health and safety) frameworks andhas formalized these in its own EHS Development Path forGroup Operating Companies. The EHS Development Pathdefines milestones and a framework for tracking progress aswell as a corresponding assessment program (see also Our
Commitment to Safe Work). Implementing the standards ofISO 14001 is designed to help achieve reductions in companies’ environmental impact.

The energy we purchase is a significant lever for managing
impact. Energy and carbon accounting are included in thecorporate controlling handbook. The handbook is updated
once a year and contains relevant guidance on these topics.
The topic of climate change mitigation from a portfolio perspective is managed by Group Sustainability and relevant
decisions are made by the ESG Chapter. Operationally andstrategically, these topics are all managed within the Operating Companies. Regular exchange between the Operating
Companies’ Sustainability Leads regarding decarbonization
takes place in the monthly Sustainability Network meetings.

STRATEGYENVIRONMENT

We aim to lessen our portfolio’s overall impact through emissions reduction and lower total energy consumption. Our­efforts aim to dovetail measures at these two crucial levels.
We base our carbon accounting on the guidance of the Greenhouse Gas Protocol and are striving to principally align ouroperations with the framework of the Science Based Targets
initiative (SBTi).

SOCIALIn particular, the reality of a changing world climate is anarea of impact Heraeus views as very relevant. The imperative of mitigating climate change is a challenge we are tackling head on. We want to align our activities with the goal of
limiting global warming to 1.5 °C and have implemented aGroup-wide near-term target for Scope 1 and Scope 2 emissions. We aim to reduce our Scope 1 and 2 emissions by
42% until 2030, compared with the base year of 2021. As
we are aware that the majority of our emissions are Scope 3
emissions, we have set the goal of having the Group’s full
Scope 3 emissions measured by mid 2024.

GOVERNANCE

We feel a responsibility to protect the environment and conserve resources. In doing so, we are guided by the precautionary principle to proactively avoid or reduce any impact on
the environment. For this purpose, we apply a continuous
improvement process for our production facilities. Our goal is
to not only use energy more efficiently, but also to further
optimize all procedures and processes. An overarching ambition is to conserve natural resources and continually reduceor eliminate waste.

TABLE OF CONTENTSOUR COMMITMENT TO REDUCING ENVIRONMENTAL IMPACT

Emissions Data Consolidated and Decarbonization
Targets Aligned

enable data gathering and processing in accordance with theGreenhouse Gas Protocol as well as ensure auditability.

The topics of energy consumption, energy procurement, andemissions are a key area of action for reducing environmental
impact. As such, Heraeus Holding began collecting energy
consumption data for the Group in 2020 and has calculated
Scope 1 and Scope 2 greenhouse gas (GHG) emissions sincethen. All Operating Companies and the Service Platform wererequired by the Board of Managing Directors to measure their
Scope 1 and 2 emissions in an auditable way by the end of2022. To support the Operating Companies in implementing
this transformation, the Group switched in the reporting period
from an external software solution to an internal tool realized
and maintained centrally. The new tool has been designed to

In 2021 and 2022, two Operating Companies also mea­
sured their Scope 3 emissions and a further two have started
data collection for this. In order to enable all Operating
Companies to measure their Scope 3 emissions and aggregate emissions at Group level, a corresponding tool was
launched centrally in 2023 with the aim of ensuring consistent calculation of Scope 3 emissions Group-wide frommid 2024.
On the back of our current data foundation for reporting
years 2021 and 2022, the Board of Managing Directors has
stipulated that the Operating Companies define own Scope 1

DATA

ACTIONS & RESOURCES

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H E R A E U S | S U S T A I N A B I L I T Y R E P O R T 2 0 2 1-2 0 2 2and Scope 2 emissions targets principally aligned with therequirements of the Science Based Targets initiative. The
Board of Managing Directors understands “SBTi alignment”
to mean that the Operating Companies are to avoid introducing decarbonization targets that are not SBTi-compliant.
The exact targets chosen are determined individually by therespective Operating Companies.
In 2022, the Operating Companies began including de­carbonization as a topic in the Quarterly Review Meetings, a
performance dialogue platform between the Group Management Committee and the Operating Companies. In cases where
setting own targets in full alignment with the goal of limiting
global warming to 1.5 °C was not feasible, the Operating Company is required to provide an explanation (comply-­or-explain
principle).
The Operating Companies are presenting updates on theirprogress toward target achievement quarterly from 2023.

Site-Specific Reduction Measures to Achieve Optimal
EffectThe Heraeus Operating Companies are each charged with
implementing measures specific to their activities and theparameters in which they operate that will aid achievementof their respective emissions targets. These measures varyby Operating Company and site location.
The majority of the Operating Companies have, for instance,
implemented energy efficiency measures. The Heraeus Digital
Hub offers support to enable digital energy measuring andtaking smart conservation action. To this end, the in-house
consultancy Supply Chain Excellence has developed a“Decarbonization Walk” framework that guides on-site assessment of production facilities. Its checklist helps identify
impactful energy efficiency measures.
In addition to energy efficiency measures, the type of energy
consumed is a key lever for reducing emissions at the Operating Companies. A major step here is the procuring of energy
for our operations from renewable sources. To this end,
Heraeus Site Operations, Heraeus Precious Metals, and Next
Energy, a major solar park operator and provider of solar
power in the Rhine-Main region, have signed a 20-year powerpurchase agreement (PPA). On the basis of this agreement,
the German Heraeus sites will receive up to 40 GWh of renewable power annually from regional solar plants. The plants
are scheduled to be erected and commissioned in the courseof 2024 and will make a significant contribution to meeting
our electricity needs through green power.
Several Heraeus sites have invested in own renewable powersystems such as rooftop photovoltaic (PV) facilities or similar

near-/off-site installations. As of the end of 2022, a total ofseven Heraeus sites around the world already had own PV
systems in operation, and eight more have work in progress. In
2023, on-site PV installations at the Hanau headquarters
were started. Some of the smaller Heraeus sites can successfully cover 100% of their energy needs with solar energy.
Larger production sites with corresponding energy needs typically cover up to 20%.
In addition to energy efficiency measures, on-site PV facilities,
and long-term measures such as regional solar PPAs, energy
attribute certificates (EACs) have also been purchased by somesites as a measure to aid in achieving decarbonization targets in the short term.

Training Targets Decarbonization Capacity-Building
Communication on the topic of energy conservation as wellas concrete training on methodologies and tools were intensified at Heraeus in the 2021 and 2022 reporting years.
Several workshops for the Group Management Committee on
the topic of decarbonization were held in the period. These
workshops were organized by Group Sustainability, with support from an external consultancy, and covered corporatecarbon emissions reduction strategies and options. Workshops
and presentations on the topic of energy efficiency were
held as part of the 2022 Virtual Week – a platform to shareknowledge between employees – with the aim of sensitizing
staff and raising engagement. The Group also provided extensive training on practical aspects of carbon accounting(Scopes 1 & 2) for those concerned with the topic in a practical capacity.
In-house conferences with peers were organized for relevantinternal specialists and Group-wide talents in 2023, withthe aim of enhancing industry exchange and learning frombest practices. The Commercial Excellence in-house consultancy team has launched modules in 2021 that address
meeting customer needs with respect to decarbonization.

Low-Impact Materials Handling and Products
In addition to our efforts to reduce emissions, chemicals
safety is another important aspect of minimizing environmental impact. We diligently monitor the cutting edge ofscientific insight into critical chemical substances and constantly take relevant developments into consideration in­ongoing research and development (R&D) and engineering.
Where necessary, critical substances are phased out. Furthermore, in 2021, we launched an internal knowledge baseon chemicals safety to ensure that comprehensive information is accessible throughout the Group.

ENVIRONMENT

Heraeus Holding began measuring carbon emissions for theGroup in reporting year 2020. We are now able to publish
our Scope 1 and Scope 2 emissions for years 2021 and2022 and as of publication have set a corresponding Group

reduction target of 42% by 2030 (base year 2021). Certain
individual Operating Companies have also prepared own­reporting according to the requirements of the Carbon Disclosure Project (CDP).

TABLE OF CONTENTSSTRATEGYENVIRONMENTTARGETSSOCIAL

Heraeus maintains a comprehensive EHS management program oriented on internationally recognized best practices. It
is designed to ensure compliance of all sites with both ISO
14001 and ISO 45001 (work safety) and has been assessed

The Group conducts regular EHS Compliance Audits to eval­uate adherence to all applicable legal obligations. The audits
are based on the categories of the Enhesa database andcomprise site visits with appropriate follow-up processes on
all findings. The Enhesa legal register details the specific
EHS laws and regulations, applicability, and compliance status for each Heraeus site. The exact audit procedures andrequirements depend on the site, its location, and type ofoperation, and high-risk sites (e. g. activities involving hazardous chemicals) are given first priority within the internal
EHS Compliance Audit program. All sites with ISO 14001
environmental management certification are subject to regularcertification and surveillance audits, in addition to internal
audits of the internal Management System by Corporate EHS.

GOVERNANCE

Stringent EHS Management System

by multinational certification bodies like SGS, TÜV Rheinland, TÜV Süd, and DEKRA. It is reviewed on a continual
basis and adjusted where necessary.

DATA

We also maintain extensive communication with both ourstaff and our customers about the composition of our products and related product safety. Since 2022, we have managed our IMDS (International Material Data System) activities centrally for the Group. For our staff we hold regularinternal chemicals safety discussion and information sessions. Chemicals safety is a key component in Group EHS
management, and emergency response programs with corresponding training components are in place at all relevantsites (see also Our Commitment to Safe Work). An EHS news
platform on the Heraeus intranet provides up-to-date information on relevant chemicals topics.

11

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SOCIALWORKING CONDITIONS – OWN WORKFORCEGRI 2-23, -24, 403-1, -2, -3, -4, -5, -6, -7, -8, -9, -10

OUR COMMITMENT TO SAFE WORKOne of our greatest responsibilities as an enterprise is tocreate a healthy and safe working environment for our employees. At Heraeus we are thus committed to the precautionary
principle of sustainable operations as our guide to proactively
avoid or minimize negative impact on safety and health.
We have formally embedded this commitment in our Heraeus
Vision 2025, our Global EHS Policy, and in the Heraeus
Code of Conduct.
We view the task of promoting and preserving as far as reasonably possible the health of our employees as resting on
three main pillars of responsibility: compliance, culture, andcontinuous improvement. Compliance with all statutory andregulatory obligations creates a robust framework by which
our employees and value chain associates can rely on us asa trusted partner. In cases where compliance with all relevant requirements does not adequately mitigate risk and weview the upholding of our EHS values to be threatened, we
set higher standards.
The safety of our employees and protection against work-­
related accidents, injuries, and illnesses is a high priority that
we embed in operations through lived safety culture. Bothemployees and executives are expected to fully demonstrate
a commitment to occupational safety. To ensure comprehensive compliance and that risks are in view as much as possible, the Heraeus production facilities apply a process ofcontinual improvement. Review and further development ofsafety practice is carried out on an ongoing basis foundedon our vision of achieving a fully accident-free workplace.
The Heraeus mindset and effective EHS culture represent a
set of shared values that sustainably benefit our employees,
customers, suppliers, surroundings, and the environment.

POLICIES & RESPONSIBILITIES
Compliant and safe operations are the top priorities for all
Heraeus sites globally. To ensure EHS processes are implemented in a uniform and consistent manner at all sites
worldwide, Heraeus has implemented a structure with clearly
defined responsibilities at all hierarchy levels. Functionalguidelines set out concrete modes of action at all operational
steps, and relevant software is used to support process­accuracy and efficiency.
Overarching responsibility for EHS policy and decision-­making is held at Group level by the CEO and the CFO andis delegated to the Operating Companies’ Presidents. The
executive level defines the Heraeus Global EHS Policy andthe Heraeus Code of Conduct; these are binding for all operations globally where Heraeus has management control.
The highest priority of the Global EHS Policy is to create asafe and secure work environment for all Heraeus employees, contractors, and visitors. To ensure all locally relevant
factors are taken into account, the Operating Companies are
responsible for rolling out corresponding EHS management
systems at their locations. Their management team is crucial
in accelerating deployment of effective EHS management
processes throughout the organization and strengthening thecompliance mindset with the goal of at all times minimizing
the incident rate.

A Robust Framework of Clear Safety Communication
The Global EHS Policy is available to all Heraeus employees
digitally. The Heraeus Code of Conduct is provided to all

new employees; they must formally recognize their obligation to adhere to its stipulations by confirming and signing
the Code of Conduct. The Code is also available via the corporate intranet as well as publicly on the Heraeus website.
In formulating policies, we have taken into account the valuable perspectives and interests of key stakeholders. Our
Board of Managing Directors has expressed a strong will toenhance the role of ESG criteria in our corporate decisions(Vision 2025). Our employees, too, have a deep-rooted interest in maintaining a safe and secure work environment.
Moreover, our Global EHS Policy specifically embraces theinterests of legislators with a statement that we comply withstatutory obligations, even setting higher standards where
necessary.
Our EHS management system – the Heraeus EHS Development Path – is carefully designed to comply with international normative standards and at the same time to ensure
reliable processes throughout our value chain. The Heraeus
EHS Development Path consolidates EHS services, processes,
insurance contracts, legal requirements, and standards intoa single streamlined program. Specifically, our systems havebeen developed in accordance with the requirements ofboth ISO 14001 and ISO 45001. These frameworks enhance
management control as well as help to lessen environmental
impact (see also Our Commitment to Reducing Environmental Impact). This phased excellence initiative ensures that
global EHS best practices are implemented throughout theGroup’s operations.

Launched in 2020, the Heraeus EHS Development Pathprovides the foundation for systematically designing andimplementing health- and safety-related actions and processes throughout the Group. This framework defines threelevels of EHS compliance – Basic, Advanced, and Expert –with corresponding requirements for each level. All sites
where Heraeus Operating Companies have management
control are required to apply this framework. If a site has
actively implemented the requirements and tools of the
Basic and Advanced EHS levels, this corresponds to EHS
management in line with ISO 14001 and ISO 45001.
When a site reaches Expert status, their measures and continued EHS improvements are “best in class.”
The EHS Development Path is overseen at Group level by
Corporate EHS. Corporate EHS is responsible for setting andtracking milestones, defining and developing the Path, aswell as providing the relevant training materials, tools, andprocesses. Corporate EHS is also responsible for managing
the associated site assessment program and communicating
implementation status to Heraeus Holding management at
regular intervals. Dissemination of the Path within each Operating Company is allocated to an Operating Company EHS
Manager. They translate the overarching requirements of thePath into concrete targets for the Operating Company, lead
implementation of corresponding measures, track target
achievement, and communicate the status to Operating Company management. They are supported by Regional EHS­Coordinators, who liaise with the Site Managers of the production sites. At each production site, the Site Manager
and EHS Manager, with the assistance of additional EHS
experts where needed, ensure that the requirements ofthe EHS Development Path are implemented.

Expanding Competence through Training and Site
Assessments
Heraeus supports its vision of achieving best-in-class EHS
performance with a two-pronged development approachwithin the framework of its EHS Development Path. The firstcomponent is the Global EHS Assessment Program. It was

In the Global EHS Assessment Program each site carries out
a self-assessment with respect to the framework of the EHS
Development Path. An EHS assessment consists of a site
visit, interviews, and a document review, and the results of
the assessment are verified by a member of staff from a different site or by Corporate EHS. Assessments are organizedby the Regional EHS Coordinators. The staff who conduct
the EHS Assessments are also trained in the EHS Development Path and its ambition of continuous improvement.
Implementation can only succeed, however, if appropriatecompetence is fostered among all staff and a safety mindset
is actively cultivated. Training is thus a key component of
the Heraeus EHS ambition. Foundational safety competence
is ensured for both new and experienced employees via
compulsory health and safety training in line with statutory
requirements as well as the guidelines of the EHS Development Path. Training includes relevant practical sessions
where appropriate, for instance on the correct usage of personal protective equipment (PPE). New employees also
­receive training on our EHS software, and all training material
is available in recorded format for on-demand access. The
strategic approach of the system is led by Corporate EHS,
the operational part is aligned with the individual EHS departments of Operating Companies.
Global safety campaigns take place with a range of focus
topics. The 2021 global safety campaigns, four in total,­addressed ergonomics, safety awareness, hazardous substances, and life-critical work. 2022 saw a notable expansionof our global safety topics communication with 12 campaigns launched on topics including explosion protection, fire
protection, driver safety, electrical incidents, hand safety,
and hazardous materials.

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launched in 2021 and is designed to ensure up-to-date insight into the status quo at all sites and identify areas for
improvement on a continual basis. This is complemented bya range of training measures tailored to enhancing the relevant competences at all levels.

STRATEGY

A Global EHS Vision

ENVIRONMENTACTIONS & RESOURCES

SOCIALThe Heraeus EHS management system also undergoes continuous review. All Heraeus sites perform corresponding
self-assessments on a regular basis in addition to participating in a Group internal assessment managed by Corporate
EHS. On the basis of these assessments and Group review,

systems are further developed and adjusted accordingly
where necessary. All sites must meet the requirements ofthe Heraeus EHS management system. Sites are likewise­required to perform EHS risk assessments for each workplace
and activity as well as report and investigate any and all­accidents. Where accidents occur, appropriate preventive andcorrective actions must be implemented.

GOVERNANCE

Integrating Evolving Ambition

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DATA

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For our EHS community and interested employees, Heraeus
has a special program of short trainings on a monthly basis
called “Power Nuggets.”
In 2021, for instance, the Power Nugget addressed such
topics as machine safety, dangerous goods, risk assessment,
and incident investigation. Further targeted training sessions
on process safety, explosion protection, and chemical safety
and law were also held. The 2022 Power Nuggets took up
safe evacuation, lockout-tagout (LOTO), process safety management, physical-chemical hazards, and substitution ofchemicals as focus areas. A new EHS platform on the corporate intranet additionally provides a wide range of information about health and safety topics, best practices, and initiatives for the EHS community as well as other interested
persons.
Supplementary to input-oriented training, communicationand dialogue on safety topics are crucial for fostering a lived
safety culture. At a structural level, communication between
the various EHS steering bodies is ensured via regular meetings at each respective layer. On top of this, several Heraeus
Operating Companies launched EHS culture workshops during
the reporting period. We also conduct regular informationand discussion sessions on a topical basis, for instance regarding chemical safety. Moreover, a total of five global EHS
workshops were held in 2022 with the aim of further developing of our EHS strategy and policy, the EHS Development Path and Assessment Program, as well as our IncidentManagement System. Within the broader EHS community
beyond our own operations, experts from Heraeus participate
in relevant associations and panels such as the German­Industry Association (BDI), German Chemical Industry Association (VCI), German Electrical and Digital Industry Asso­
ciation (ZVEI), European Precious Metals Association (EPMF),
International Group of Experts on the Explosion Risks of

Unstable Substances (IGUS), and International Platinum
Association (IPA). Together with other industry specialists
we help to responsibly shape the framework conditions forour business.

Intensifying Compliance Audits
Due to the restrictions of the coronavirus pandemic, in theyears 2021 and 2022 a comparatively low number of sites
were audited under the Global EHS Legal Compliance Audit
program. In 2023, we conducted EHS Legal Compliance
Audits at 23 of our 89 production sites. As set out in the
EHS Development Path, EHS legal compliance status ofeach production site is to be audited by an internal or external party at least every three years.
Our efforts to increase safety awareness and competence
have continued in 2023 with 12 global safety campaigns
planned as well as continued enhancements to our global
training and focus program. The Power Nuggets topics for2023 related to ergonomic risk assessment, chemical safety
gloves, behavior-based safety, and cybersafety among
others.
In addition, a further four global EHS project groups were
held on our EHS Development Path, EHS Assessment Program, and our change management processes in 2023. The
regular meetings between Corporate EHS and the EHS Managers of Heraeus Operating Companies were augmented witha sounding process to ensure that changes to our global EHS
systems are aligned to operating needs. On top of this, welaunched a global EHS communication platform to facilitate
direct exchange between members of the Heraeus EHS community globally. Heraeus EHS experts have also made contributions to the work of the European Semiconductor Industry
Association (ESIA).

TARGETS
Targets have been set both for each Heraeus Operating Company and at Group level for Heraeus Holding. These targets
cover concrete reductions in accident figures and health-­
related impacts as well as the implementation of measuresand actions to achieve this.
The primary tracking metric Heraeus uses is lost-time incidents5 per one million hours worked (lost-time incident rate,
LTIR). For reporting years 2021 and 2022, the LTIR was 3.7
and 3.6, respectively. By the year 2025, we aim to achieve
an LTIR of less than 2. With early 2023 figures indicating afurther decrease, we consider ourselves on track to do so.

5With a view to our overall ambition of achieving an end
goal of zero health-related incidents, we set the additionaltarget of having 80% of our production sites fulfilling our­internal EHS management system requirements based
among other things on the ISO certifications 14001 and
45001. We also aim for these sites to be certified to ISO
45001/OHSAS 18001 and/or ISO 14001 by 2025. This
process was successfully launched in 2021 and as of late2023, some 57% of sites had ISO 45001 certification and
61% had certification to ISO 14001. Here as well progress
to date is in line with target achievement.

Lost-time incidents are defined as being occupational accidents resulting in at least one day of work time lost.

SOCIAL

GOVERNANCE

SOCIALENVIRONMENTSTRATEGY

TABLE OF CONTENTS

audit program are managed by Corporate EHS and determine
if the sites meet the requirements of the Heraeus EHS Management System and regulations. By continually identifying
risk and improving avoidance and mitigation, we hope to beable to make our ambition of zero-incident operations a reality.

DATA

In 2023, all Operating Companies continued completing EHS
Self-Assessments, EHS Assessments, and EHS Compliance
Audits according to a defined roadmap. These assessments
will enable potential health risks affecting employees tobe identified and targeted mitigation measures to be implemented. The EHS assessment program and the compliance

15

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EQUAL TREATMENT AND OPPORTUNITIES FOR ALL – OWN WORKFORCEGRI 2-7, -23, -24, 401-1, -2, -3, 404-1, -2, -3, 405-1, -2, 406-1, 407-1

OUR COMMITMENT TO EQUAL OPPORTUNITIES AND AN ATTRACTIVE PLACE TO WORK
We are responsible for our nearly 16,0006 employees, withwhom we aim to engage in an open dialogue and nurturea respectful, appreciative interaction as the foundation of
every good working relationship.
In addition to fostering strong leadership and cultivating­excellence, the area of diversity, equity, and inclusion (DEI)
is a value driver and key strategic topic for us. This topic
was anchored in our Heraeus Vision 2025 as part of ourprioritization of ESG issues and chosen as the human­resources (HR) focus area for 2023. As our aim is always tohelp unleash our teams’ full potential, we recognize that
DEI is a leadership topic, and creating an inclusive culture
lies at the heart of protecting and valuing diversity. We arecommitted to continuing to raise awareness and drive DEI
forward at Heraeus as we believe that a diverse workforce
helps us better understand our markets and customers, fuelinnovation, and foster growth.

POLICIES & RESPONSIBILITIESAligning Responsibilities and Vision for Success

Binding Protection of Our Values and Human Rights

The focus of our efforts during the reporting period was toprovide a robust basis for target-oriented development andreporting. Responsibility for strategic HR topics at Grouplevel is held by the Group HR Officer, who reports regularly
to the CEO.

The Heraeus Human Rights Policy – adopted in 2018 –­codifies our commitment to respecting universally recognizedhuman rights, such as the prohibition of child and forcedlabor, the prohibition of all forms of discrimination, and theobservance of maximum permissible working hours. The
Heraeus Human Rights Policy states that it is binding for
all employees of all legal entities of the Heraeus Group
worldwide.

Operational responsibility for HR functions as well as for
HR strategies lies with the respective Heraeus Operating Companies. Teams at each of the Operating Companies provide
tailored support depending on the company’s concrete needs.
This decentralized framework was further expanded in 2021
and 2022 as it ensures both a structured approach as well as
the scope to develop complementary solutions and benefits
for employees around the globe, e. g. with regard to retirement
planning or healthcare. Exchange of information and of bestpractice insights between the companies is supported throughthe Group’s Service Platforms.
In 2022, Corporate HR began crafting the HR Ambition – ourpeople agenda that provides the strategic foundation on ourjourney to becoming an “employer of choice.” In an increasingly challenging labor market, we want to attract, develop,
and retain the best talent.
Our 4 key building blocks for being an employer of choice:
1. Boost attractiveness for top internal and external talents
2. N urture leadership development to ensure great responsible (future) executives

The Heraeus Human Rights Operating Procedure implements
the Heraeus Human Rights Policy. It stipulates that internal
human rights risk assessments be carried out annually. Whererisks are identified, preventive or remedial measures must
be implemented.
The Heraeus Code of Conduct is the binding foundation onwhich all other guidance is based. It lays out employees’
personal responsibility for complying with laws and internal
rules. The Code of Conduct is further supplemented by the
Heraeus Human Rights Policy. Adopted in 2018, it codifies
our commitment to respecting human rights and labor andsocial standards. This includes prohibiting child labor, forcedlabor, and all forms of discrimination as well as ensuringsafety in the workplace, as laid out in the International Labour
Organization’s (ILO) five fundamental principles. The Human
Rights Policy sets Group-wide minimum standards, e. g. withregard to starting age and permissible working hours as well
as salary and social benefits. Working conditions in Germany
are largely regulated by the Group works agreement and­applicable union agreements; over 75% of Heraeus staff inGermany are covered by these agreements.

3. Promote identity and culture in line with Heraeus values
4. Be an ambassador for diversity, equity, and inclusion

6

As of year-end 2022, excluding temporary workers.

All staff with decision-making roles are required to adhere
to the stipulations of both the Code of Conduct and the­Human Rights Policy. In particular, they must also aim toensure that all external service providers comply with these

SOCIAL

The Heraeus People Days take place annually at every Operating Company and serve as a key forum for identifying­potential talents. In 2021 and 2022, a total of 187 talents
were identified during the People Days (see also Targets).

The four pillars of our leadership model are: leading thebusiness, leading the organization, leading people, andleading myself. With this holistic model, responsibility, performance, integrity, appreciation, and the willingness tochange are firmly anchored in our corporate culture.

Overall, our Global Talent Management strategy aims to create a robust talent pipeline that supports the long-term
growth and success of Heraeus. As a result, more than 60%
of vacant management positions could be filled internally
between 2019 and 2022.

Through both centralized and decentralized training programs, we invest in the ongoing professional developmentof our managers and employees as our human capital. Via
the Heraeus touch app, all employees have access to our
digital learning platform: myHR Learning. In 2022 addi­
tional training content from PINKTUM has been added toincrease access to a greater variety of content. These platforms offer continuous education and training opportunities
in more than 150 courses covering a wide range of learning
topics.

Training of Skilled Workers

All permanent employees also receive regular individual
feedback. For managerial positions worldwide, formal annual
performance reviews ensure ongoing mutual appraisal of aperson’s career development. In addition to reflections on our
corporate values and leadership excellence, development
potential is discussed and follow-up measures are defined.
Such measures may include individual project assignments,

To attract diverse talents and prepare them for future roles,
we operate several training programs globally. For our talent
recruitment initiatives we cooperate closely with educa­
tional institutions and identify suitable graduates in a targetedmanner. Where possible, we cover our need for qualified­employees with graduates from our own training programs.
Young people from a diverse range of backgrounds and educational biographies are given professional opportunities at
Heraeus. In Germany, we offer around 30 dual apprenticeships and dual study programs, with the spectrum ranging
from two-year commercial degrees to a Master of Science.
In the reporting period, a total of 203 graduates successfullycompleted their training or dual studies at Heraeus in Germany. They were given the opportunity to be hired on or –with appropriate qualifications – to continue their studies.

STRATEGY

The foundation of our development culture is the Heraeus
leadership model. It outlines our understanding of excellent
leadership and a culture that supports our path of sustain­
able growth and our goals.

A common digital platform – the Heraeus touch employee
app or intranet – keeps employees informed, promotes dialogue, offers learning opportunities, and simplifies processes
within the Group any time and on the go.

ENVIRONMENT

Employee and Leadership Development

Talent management is structured via a portfolio approach
whereby the Operating Companies spearhead talent development within their own company. This allows for greater scopein designing and rolling out site-specific initiatives andthereby enabling a more diverse group of employees worldwide to have access to talent development. The Global TalentManagement team provides a general framework and centralized support, enhances visibility of talent on a Group level,
and acts as a mediator to place talents in suitable new roles.

SOCIALThe Heraeus Global Talent Management strategy is designed
to cultivate a talent management culture that aligns with the
Heraeus leadership model. The primary objective is to identify, develop, and deploy talented individuals throughout theorganization in order to fill the majority of critical positions
from within our own ranks. This approach aims to attract
and retain high-potential employees who can contribute significantly to the organization’s success.

TABLE OF CONTENTS

Talent Management and Succession Planning

GOVERNANCE

Our corporate culture includes trusting cooperation between
employer and employee representatives. Dialogue in staff
meetings and employee appraisals is encouraged, and open
feedback is sought via employee engagement surveys (seebelow). In Germany, fundamental participation rights of ouremployees and employee representative bodies are also
­regulated by legislative frameworks such as the Works Constitution Act. Employee representative bodies are establishedat all German sites.

mentoring, or topical seminars. In the case of individuals withmanagerial roles, the leadership qualities set out in ourleadership model have a direct impact on bonus payments.

DATA

requirements as well (see also Responsible Value Chainpart). Every employee is encouraged and expected to report­violations of the Human Rights Policy or of the Code of­Conduct. In addition to the internal Compliance Management
contacts, an external ombudsperson is also available forthis purpose (see also Framework for Reporting Compliance
Violations).

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GRI 2-30
Overall, the company employed 268 apprentices and dual
students in Germany as of the end of 2022.
Heraeus also participates in a cooperative apprenticeshipprogram in Germany. As part of this program, Heraeus provides further-going training to apprentices from other enterprises in the region and thereby enhances opportunities andcommunity development within its sites’ regions. Currently,
Heraeus supports some 15 apprentices from ten different
companies.

Fair Compensation and Company Benefits
Heraeus pays attractive, competitive salaries that depend
not only on location factors but also on the job profile, qualifications, and experience. These are supplemented by company social benefits. Where possible, we establish a uniform
salary framework through local collective bargaining agreements. In Germany, over 75% of staff are covered by a collective bargaining agreement. In the non-tariff area or in theabsence of local collective agreements, we achieve performance- and market-oriented compensation by applying an
objective international job grading system.
Generally speaking, compensation at Heraeus includes
a base salary and often a variable bonus that allows employees to participate in the success of the business. Heraeus’
compensation practices are designed to attract and motivate
employees, reward performance, and support long-term­employee and talent retention. Via our International Assignment Guideline, we ensure throughout the Group that all
employees receive adequate support and compensation whenon assignment in another country. In addition to compen­
sation, employees at several Heraeus sites can also benefit
from other financial services, such as a contribution to­public transport costs, pension insurances, or additional days
off for caregivers.

Valuing Diversity and Fostering Inclusion
Promoting diversity and fostering inclusion are crucial in ourability to recruit and retain talented employees. A cultureof respect and active advocacy for DEI topics are thus focus
areas of the HR Ambition. Furthermore, we have been a­signatory of the German Diversity Charter (Charta der Vielfalt)
since 2007.
Our DEI journey takes different local conditions into account.
The Operating Companies are thus at varying stages of thisshared journey, with some having advanced considerably
and others just starting to set goals, work on their culture, or
create awareness. To pave the way for intensive work on thisfocus topic in 2023, all Operating Companies were asked in

72022 to set DEI targets. They are now providing updates on
their progress in our Quarterly Review Meetings; this ensures
Board oversight for the topic. To assist the Operating Companies in this area, Corporate HR launched a global DEI initiative and is developing additional support services like the
DEI Community of Practice.
The concrete measures and initiatives started locally varysignificantly as they are rooted in local cultures and frameworks. For companies in the US, for instance, a strong focus
is preventing discriminatory behavior. Special management
training on diversity and inclusion is provided in a targetedmanner. Additionally, each location has the option of selecting holidays individually to meet the regional circumstances
and individual needs of the employees.
We track gender-, region- and age-specific diversity metrics
at Group as well as at Operating Company level. As of yearend 2022, 35% of our employees are women. At upper
management level7, women made up 18% of executives. By
the time of publication, nearly all Operating Companies had
set gender diversity targets and the status of these will be
included in future reporting.

Supporting Gender Equality through Flexible Working
ModelsHeraeus wants all its employees to be able to achieve a balanced and integrative connection between the two most­important areas of their lives: the professional and the personal. We offer our employees a variety of options to support
them in this regard. In particular, we aim to offer a range ofworking models that improves equal participation in theworkforce for women and men. At the same time, we areaware that putting this ambition into practice will look different at each of our locations.
Wherever possible, we offer flexible shift models and working hours. A Group-wide works agreement regulates the possibility for mobile working and applies to all Operating
Companies in Germany. Local working agreements are also inplace. In Germany, 10.5% of our employees have decided
to work part-time, and parents who return to work after parental leave receive preferential job offers. Of the 109 employees currently on parental leave, 95.8% are returning to work.
One reason employees reduce working hours is to care forchildren or family members. We support our employees in theimportant matter of childcare in Hanau via our own Heraeus
Family Center with integrated kindergarten and after-schoolcare. At selected locations, we also offer support in finding
care close to home and advise employees with dependents inneed of care in our specially established care office.

Executive management includes the leadership teams of the Operating Companies as well as corporate function heads.

For reporting years 2021 and 2022, no targets for this area
had been set.

TABLE OF CONTENTSSTRATEGYTARGETSENVIRONMENT

For this reason, Heraeus conducts staff surveys to gather­insights into employee attitudes, motivation, and satisfaction levels. The survey form is always tailored to the focus

SOCIAL

Heraeus believes that a clear understanding of our workforce
and its needs is the foundation for attracting, retaining, training, rewarding, and supporting employees to be their best.

of information desired. Some Operating Companies haveincluded questions on diversity, equity, and inclusion, andin cases where this is not yet so, changes to this effect will
be implemented until 2025. In Germany, employee surveys
are conducted in close consultation with the works council.
In 2021 and 2022, approximately 50% of Heraeus Operating Companies conducted employee engagement surveys.
These were continued in 2023 as well and all Operating Companies will start the employee survey process by 2025.

GOVERNANCE

Gaining Insight: Staff Surveys at Heraeus Group

19

DATA

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GOVERNANCECORPORATE CULTURE
GRI 2-9, -23, -24, -27, 205-1, -2

OUR COMMITMENT TO A CULTURE OF COMPLIANCE
Upholding the law at all times are the non-negotiable tenetsof our business practice. This fundamental set of values on
which compliance at Heraeus rests is laid out in the Heraeus
Code of Conduct. The Code of Conduct underscores boththe importance of sustainable business practices as well as

the personal responsibility of each individual employee. Our
Group-wide compliance management creates the framework
for responsible business and underpins a comprehensive culture of conformity in fulfilling requirements.

POLICIES & RESPONSIBILITIESThe operational responsibility to act in compliance with applicable laws and regulations lies with each of the Heraeus
Operating Companies. However, in order to help to achievethis, Heraeus has a clearly defined system of requirements
and processes that is aimed to ensure compliance with legal
obligations and operational guidelines throughout the Group.
The Group Responsibility Office is the primary complianceoversight body at Group level, led by the Heraeus Compliance Officer, who is charged with overseeing the compliancemanagement system. The Group Responsibility Committee
is responsible for compliance and data protection structuresthat are the basis for robust governance processes. The
Committee comprises the CEO, the CFO, the Group GeneralCounsel, the Head of the Responsibility Office, and theheads of important Group functions. It is the platform where
the heads of Group functions report on new processes andstructures. Furthermore, statutory auditors take part in thesemeetings once annually, where they are informed of new
developments and might also give impulses for the Heraeus
Group.
Operational implementation of and adherence to Group compliance rules as well as those of the Operating Companies is
the responsibility of the respective Operating Companies’
Presidents; they are supported by Compliance Officers. All
management functions of the individual Heraeus Operating
Companies are briefed on certain and general new developments in the area of compliance annually. Compliance topics
are also part of the Quarterly Review Meetings between the
Heraeus Board of Managing Directors and the Operating
Companies.
The fundamental framework for compliance in our Group is
the Heraeus Code of Conduct. It lays out binding rules forour business conduct, covering topics such as prevention ofcorruption, money laundering, and antitrust violations aswell as dealing with conflicts of interest or accuracy of financial documentation, which are then, where appropriate,­expanded by topic-specific guidelines. All stipulations of theCode of Conduct and the supplementary guidelines are­stated as applying throughout the Group. The Heraeus Codeof Conduct is provided to all new employees; they must formally recognize their obligation to adhere to its stipulations byconfirming and signing the Code. The Code is also available
via the corporate intranet as well as publicly on the Heraeus
website.
The topical guidelines relate to the procurement of goods andservices, sustainable sourcing, avoidance of bribery (invitations and gifts), conclusion of consultancy contracts, prevention of money laundering, prevention of antitrust infringement, press relations, and use of the intranet. All complianceguidelines are approved by the Heraeus Holding Board ofManaging Directors and were updated in the reporting period.
Managers must confirm every two years in writing that theyknow the Heraeus Compliance Guidelines and comply withthem.
In particular the Guideline for the Prevention of Bribery(Entertainment and Gifts) and the Guideline for the Conclusion of Consultancy and Distribution Agreements are key­internal frameworks relating to purchasing, distribution, marketing, and sales activities. The Guideline for the Preventionof Bribery contains a definition of bribery as well as rules forthe granting of business courtesies and is addressed to all
employees of Heraeus, especially those with relevant functions. Heraeus strictly prohibits all forms of direct or indirect
bribery of business partners or public officers, including facilitation payments. The Guideline for the Conclusion of Consultancy and Distribution Agreements is likewise addressedto all employees of Heraeus and especially those who are
entrusted with relevant activities. It stipulates in particularthat the influence of consultants and distributors must not
be used to grant undue favors to business partners or public
officers.
The Heraeus Supply Chain Due Diligence Policy and the
Heraeus Human Rights Policy are further cornerstones ofour compliance structure to ensure responsible conduct
throughout our operations (see also Our Commitment to a
Responsible Value Chain – Policies & Responsibilities).

GOVERNANCE

21

Risk Management: Export BusinessFor all segments with cross-border operations, compliant
export activities and management of customs risk are crucial. Compliance management here is spearheaded by the
Heraeus tax experts. On behalf of the Operating Companiesand ­Heraeus Holding, they aim to ensure appropriate export/
customs controls that take each Operating Company’s specificrisks into account. They also aim to ensure compliance via
regular assessment questionnaires and interviews.
Risk Management: Business Interruptions & Emergencies
The Heraeus Business Continuity Management Policy­addresses risks that could jeopardize the existence of thevarious Operating Companies. This policy mandates the­Operating Companies to establish Emergency Response Programs & Crisis Plans outlining the implementation of appropriate protective measures, how to respond to business interruptions, prepare protocols for communicating with external
stakeholders, and how to achieve fastest possible return tonormal operations. The Emergency Response Programs &Crisis Plans further address managerial responsibility in caseof an emergency and mechanisms for stakeholders to report
emergencies. Its aim is to ensure the resilience of criticalbusiness processes.

We maintain wide-ranging, active dialogue on compliancewith our employees as well. Our mobile app Heraeus touch
is available to employees via company and personal smartphones. All posts can be commented on and discussed by
employees. We also provide information in the app on sustainability-related topics that can be helpful in discussions
with customers and other stakeholders, as well as support ahigh level of awareness among employees. The topics covered are: human rights, sustainable procurement, conflictminerals, and sustainability-relevant guidelines, audits, andreports.
In particular, our business platforms involved in the purchaseand sale of high-risk commodities such as precious metals
face a critical public. Non-governmental organizations (NGOs)
highlight problems for the environment and human rights.
We take their comments and opinions seriously. Some Operating Companies regularly undergo ranking and rating procedures such as those from EcoVadis, the ­Responsible Business
Alliance (RBA), and the Carbon Disclosure Project (CDP).
Assessments by external bodies provide our customers andthe public with transparent information about how we at
Heraeus operate sustainably and responsibly.
By better understanding stakeholders’ needs and expectations, we aim to further strengthen their trust in Heraeus. The
insights gained from such dialogue regularly flow into the

STRATEGYENVIRONMENT

Dialogue Process Ensures Highly Effective Compliance

SOCIAL

Risk assessment at Heraeus considers various compliance-­
related risks such as the risk of corruption, the risk of anticompetitive agreements, the risk of being misused for money laundering, as well as the compliance risks resulting fromconflicts of interest. The risk assessment process takes
place at regular intervals and across all levels of the Group.
The Heraeus Compliance Officer, the Group General Counsel, the Heraeus Risk Officer as well the General Counsels of
relevant regions are involved in the risk assessment process.
In regular intervals the Group Responsibility Office conducts
a formal compliance risk assessment of the Operating Companies in a structured process. The Presidents of the Oper­
ating Companies report on compliance-related risks in thescope of the Quarterly Review Meetings.

Risk Management: Cybersecurity
Cyberattacks represent a rapidly growing risk in our digitalized business world. Important measures for mitigating thisrisk at Heraeus include processes and guidelines for the­secure operation of IT systems, regular training and information for employees, and the use of technologies to detectand defend against cyberattacks. The Heraeus IT security
team – under the oversight of the Group CFO – monitors
IT systems, initiates countermeasures, and works to continuously improve measures. Audits and regular simulationsof cyberattacks are used to check the effectiveness of ourprocesses.

GOVERNANCE

Timely and comprehensive identification of risks is a crucialcomponent in achieving effective compliance. The various
Heraeus businesses include segments with a higher risk of
non-compliance (non-regulated) and a likelihood of greater
damage (precious metals) and other segments with a lower
risk of non-compliance (regulated, subject to regular third-­
party audits). In identifying compliance risks, Heraeus focuseson segments with higher risks of non-compliance and a like­lihood of greater damage.

Each Operating Company has a Business Continuity Manager(BCM) and an own emergency and crisis organization. Risks
that pose a threat to critical business processes are identified
and analyzed on an ongoing basis and mitigation measures
implemented. Emergency Response Programs & Crisis Plans
are tested and updated regularly. In 2023, these plans
will be expanded to include threats from cyberattacks, forinstance.

DATA

Regular Review and Evaluation of Risk Areas

TABLE OF CONTENTSACTIONS & RESOURCES

22

H E R A E U S | S U S T A I N A B I L I T Y R E P O R T 2 0 2 1-2 0 2 2

further development of our corporate strategy and respon­
sibility management, such as into how we deal with crucial
risk topic areas.

Interactive Training Approach Embeds Compliance
CultureTo foster a corporate culture of compliance that is lived andrespected throughout operations, Heraeus trains its employees extensively in compliance processes. A Group training
concept guides needs-based training of staff at all sites
worldwide. It aims at ensuring that the responsible employees are informed about certain new regulations and know
and understand the provisions of the Heraeus ComplianceManagement System. Compliance training is also a formalcomponent in the onboarding of new staff. Training uses a
combination of classroom, e-learning, and other measures,
depending on the topic.
To create awareness for the risks of cybercrime, all users ofIT systems receive comprehensive training via e-learning
sessions by Group IT. Participation is mandatory and must
be confirmed by a certificate of successful completion.
All users are additionally given simulations on the topic ofphishing and the handling of malicious content. Data pro­tection e-learning sessions were also held in the reporting
period for all relevant employees and managers in the EU;
the ramifications of the so-called “Schrems II” judgementby the Court of Justice of the European Union were a particular focus in the reporting period.
At more senior levels of the company, the ambition is to­ensure compliance culture is a fully embedded priority of ourcompany culture. Managers are regularly requested to confirm that they know the Heraeus compliance guidelines andact in accordance with them, and to participate in online
training if they are not sure that they know and understandthe guidelines well. Regular workshops are held with thesites’ Compliance Officers in Europe, the USA, and China topromote exchange on cross-divisional topics, challenges,
and best practices. In addition, expert panels regularly share
information on new developments under the leadership of
the respective corporate function. This enables learning fromchallenges and best practices to continually raise awarenessof responsibility issues throughout the Group.

Monitoring and Control
Completion of a formalized compliance questionnaire isrequired from all legal entities and every Operating Company
once per year. The Compliance Officer and the President of

the respective legal entity or Operating Company is requested
to collect compliance-relevant information and answer thequestions in the questionnaire. The Compliance Officer and
the President confirm that they are not aware of any compliance violations other than any mentioned in the questionnaire.
Since 2021, Group Internal Audit has been regularly monitoring certain business figures that may indicate risks ofcompliance violations. Compliance is also a topic evaluatedin internal audits. Internal audits are conducted by GroupInternal Audit, in collaboration with the Group Responsibility
Office, on an ad hoc basis if there are indicators of possible
non-compliance.

Framework for Reporting Compliance Violations &­Implementation of the Whistleblower Protection Act
Although full adherence to all compliance regulations is ourambition, the provision of a framework for reporting possible
violations at any time is an important component of compliance management at Heraeus. The Group makes a variety ofreporting channels available to both internal and external
stakeholders, including options which can be used anonymously where desired.
If a compliance violation is suspected, an employee canfirst and foremost contact their manager or the local Compliance Officer. In addition, it is possible to contact the
Heraeus Compliance Officer directly by telephone or email.
The Heraeus Compliance Officer is independent, not subject to instructions, and bound to secrecy. Furthermore, anexternal, independent ombudsperson has been appointed towhom hints and violations can be reported confidentially.
The identity of informants (whistleblowers) is not disclosed,
unless with the express written consent of the informant.
The Heraeus Code of Conduct strictly prohibits sanctioningor punishing whistleblowers who have reported a compliance violation in good faith, even if the report subsequently
turns out to be untenable.
These reporting channels are also made available to external
parties via published contact information on the Heraeus
website. In the event of suspected human rights violations,both Heraeus employees and external parties can make useof the above-named reporting modalities, including a telephone hotline. In 2023, the compliance reporting options
were expanded to include a Web-based grievance mechanism.
This improves accessibility by providing a safe communication platform that is available in several languages and whichguarantees the anonymity of the reporting person, if desired.

GOVERNANCE

23

TARGETS

GOVERNANCE

SOCIALENVIRONMENTSTRATEGY

TABLE OF CONTENTS

Current figures allow us to evaluate the effectiveness of ourcompliance management system. As coordination and alignment of compliance data within the Group progresses, thiswill allow us to set targets for this area accordingly.

DATA

By means of annual surveys, the compliance officers obtain
information on training conducted, invitations and gifts fromthird parties, and the continued implementation of compliance management on-site. Internal reporting is carried out
along the individual hierarchical levels of the management
system, up to and including corporate and Group management. Heraeus has set up a documented compliance management system based on the principles of IDW PS 980.

24

H E R A E U S | S U S T A I N A B I L I T Y R E P O R T 2 0 2 1-2 0 2 2

RESPONSIBLE SUPPLY CHAINSGRI 2-6, -23, -24, -26, 308-1, -2, 414-1, -2

OUR COMMITMENT TO A RESPONSIBLE VALUE CHAIN
Heraeus’ suppliers are important contributors to our business success. For this reason, Heraeus Operating Companies
generally strive for long-term business relationships. Since
joint commitment is required to sustainably align value creation, Heraeus includes suppliers in its strategy for sustainable action.

The Operating Companies of Heraeus pursue the goal of conducting their value chains sustainably. To this end, sup­pliers are expected to meet the requirements of the Heraeus
Group Supplier Code of Conduct. This includes compliancewith laws and international standards as well as ensuring fairand safe working conditions and operational environmental
protection.

POLICIES & RESPONSIBILITIESAll Heraeus suppliers must commit to observing humanrights and environmental standards. The Heraeus Supplier
Code of Conduct, which is based on the Heraeus Supply
Chain Due Diligence Policy, is binding for all suppliers of theGroup and acceptance must be formally confirmed. The
Supplier Code of Conduct additionally stipulates that suppliers’ sub-suppliers are to comply with the Heraeus humanrights and environmental standards as well.
Both supplier selection and supplier engagement at Heraeus
are based on a strict set of regulations that ensure compliance with current national and international legislation as
well as responsible action in the value chain. The Heraeus
Supply Chain Due Diligence Policy describes our principles
for the selection and monitoring of suppliers, especially suppliers of precious metal-containing materials or conflict minerals. When relationships with new business partners in the
precious metal business are initiated, the identification andassessment of compliance risks and human rights risks is
an integral part of the due diligence process. A formalized
questionnaire is the basis here.

The processes for the selection of distributors and consul­
tants are stipulated in the Heraeus Guideline for the Conclusion of Consultancy and Distributor Agreements, and application is required in all instances.
Together, these policies aim to translate all applicable legis­
lation into appropriate own regulations. In particular, Heraeus
follows the Organisation for Economic Co-operation and­Development’s (OECD) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected andHigh-Risk Areas and the requirements of the German Supply
Chain Due Diligence Act (LkSG). In 2022, the Group published on its website a Policy Statement on the Implementation of the German Supply Chain Due Diligence Act and­updated its Supply Chain Due Diligence Policy to align it with
the Act’s requirements. The Supply Chain Due Diligence
Policy is also published on the internet. In 2023, Heraeus
likewise updated its Human Rights Policy.

ACTIONS & RESOURCES
Selection and Control of High-Risk Business Partners
In our precious metal activities, there is not always a clear
allocation between suppliers and customers in the value chain.
For example, precious metal mines, though they are sourcesof precious metals, are customers to which Heraeus provides
various services such as trading and refining of precious
metal-containing materials. Of course, mines can also sometimes be selling us part of their production after refining.
The due diligence and “Know Your Customer” (KYC) process
on mining customers have for many years already been subjected to a selection and monitoring process that is always
evolving and becoming tighter, in order to better address
new challenges that the precious metals sector may be facing.

Heraeus Precious Metals (HPM) is the Operating Company
covering the full value chain of all eight precious metals
and is in contact with all relevant stakeholders in the precious metals value chain. This starts with customers, suchas mines and collectors as well as industry customers andrecycling partners – and extends to legislators on national,
supranational, and international level, NGOs and industry
associations. During on-site mine visits, HPM seeks theexchange with unions, communities, and local governments.
The findings and recommendations of organizations whose
objective is to promote the observance of human rights are
considered in order to build one of the strictest frameworks
and processes in the world for responsible precious metals
handling.

GOVERNANCE

Site audits (remote and on-site) for other high-risk suppliers
outside the precious metals business were also conducted in
2021 and 2022 to check compliance with the requirementsof the Heraeus Supplier Code of Conduct. These also include
compliance with human rights.
Site audits must consider the following social and environmental aspects:• Occupational safety

Compliance with laws, regulations, and Heraeus Group policies are rigorously integrated into HPM’s processes.

TABLE OF CONTENTSSTRATEGY

The Heraeus Operating Companies procure conflict minerals
only from sources that have been going through an enhanced
due diligence process in order to ensure that these are safe
sources of supply for conflict minerals and that they do notparticipate in conflict financing. For monitoring and reviewing suppliers of conflict minerals, Heraeus applies standardized templates called Conflict Minerals Reporting Templates(CMRTs). Uniform rules apply throughout the Group for evaluating CMRTs. The interfaces between procurement, theGroup Responsibility Office, and the Operating Companies
are precisely defined, and substantial information on the
topic of materials from conflict zones as well as the current
list of approved suppliers for such materials is available
centrally.

ENVIRONMENT

https://www.heraeus.com/en/hpm/responsibility/compliance_
hpm/compliance.html

SOCIAL

Human rights risk assessments (as one risk in the KYC process assessment) are conducted periodically for all business partners in the business areas of precious metals trading and recycling of precious metal-containing materials by
the HPM precious metal compliance experts. Where required,mitigation measures are taken to reduce the risk of humanrights violations and if violations are discovered in our supply
chain, we engage with the business partner to encouragecorrective actions. Where we face refusal and as a last resort,
we disengage from the business relationship. All new business partners in precious metals trading and recycling of precious metal-containing materials must commit to the requirements of the Heraeus Supplier Code of Conduct for Precious
Metal Suppliers.

https://www.heraeus.com/media/media/hpm/doc_hpm/­
sustainability/heraeus-precious-metals-sustainability-­
report-­2022.pdf

GOVERNANCE

HPM takes all reasonable steps to ensure that the precious
metals in their value chain originate from legal legitimate andethical sources. Therefore, it systematically adheres to thestrictest industry standards for all metals, regions, and business partners worldwide. These may go beyond regulatory
requirements. The core process of all measures is the periodical and rigorous KYC screening of all current and newcustomers delivering precious metal-containing material. This
process identifies risks (e. g. high-risk material, high-riskcountry, high-risk partner) and triggers enhanced due diligence measures such as audits.

For more details on precious metals-related activities, including compliance, you can review HPM’s Sustainability Report
and website:• Prohibition of child labor

HPM applies strict frameworks for responsible precious metals
sourcing through the Supplier Code of Conduct and Heraeus
Precious Metal Sourcing Guideline. These consider potential
impacts on our own employees as well as the environmentand communities along our supply chain and are applied to
all the precious metal business partners and their precious
metals sources.

• Prohibition of forced labor

HPM’s processes include precious metals compliance, security, accounting, and traceability technologies, supported by –among others – a global enterprise software system, a global
compliance management system, and approval processes.
The staff completes annual compliance and human rights
training.

• Compliance with environmental regulations• Granting of adequate wages (“living wages”)• Granting of freedom of association• Management of natural resources

DATA

Through HPM’s participation in the IPA (International Platinum Group Metals Association), EPMF (European Precious
Metals Federation) and FVEM (Fachvereinigung Edelmetalle)
it is in regular contact with other market participants as wellas national and international legislators such as the EU
Commission and the OECD. Furthermore, HPM engages in
responsible mining projects such as Fairmined, FairtradeGold or the Swiss Better Gold Initiative.

25

26

H E R A E U S | S U S T A I N A B I L I T Y R E P O R T 2 0 2 1-2 0 2 2Upholding Human Rights at Heraeus and throughout
the Value Chain
From 2023, human rights risk assessments are required ofall suppliers; these are the responsibility of the Operating
Companies’ procurement teams and are conducted once per
year. Human rights training is an integral part of the com­pliance training.
Heraeus furthermore maintains a variety of channels for thereporting of grievances (whistleblowing). The options andmodes of contact are listed publicly on the Heraeus website,
and reporting is available in several languages. In the eventof suspected human rights violations, both Heraeus employees and external parties, especially victims of human rights
violations, can report them via one of these reporting modalities (see also Our Commitment to Compliance Culture –Framework for Reporting Compliance Violations). From late2023, Heraeus offers a Web-based compliance and ethics
hotline to improve accessibility for Heraeus employees andexternal parties. The hotline is also accessible via email(using the Web platform) or telephone.

Further Alignment with Requirements of Supply Chain
Due Diligence Act
Heraeus has been working toward the implementation of
the German Supply Chain Due Diligence Act (LkSG) since2021. We have issued a formal Policy Statement on the­Implementation of the German Supply Chain Due Diligence

Act, which is available on the Heraeus website. Thanks to thereview and assessment procedures introduced in the past,essential requirements of the Act were already being fulfilled before the Act came into force. In late 2022, Heraeus
carried out a preliminary risk assessment of the Group’s
main suppliers. Where required, appropriate actions weretaken. In 2023, a project group designed and set up theprocesses and structures to fully implement the Act.
Risk assessment is based on the evaluation of country andindustry risks. When compiling a risk assessment, the respective Heraeus Operating Companies may also use information
which they have requested from their suppliers, researchedthemselves, or obtained from external sources. Dependingon the risk identified, measures can range from obtaining confirmations of compliance with the Heraeus Supplier Code of
Conduct to transmitting and evaluating questionnaires, collecting external data, supporting the supplier in improving
human rights standards, committing the supplier to certain
measures, or even on-site supplier audits. In severe cases,
the relevant Operating Company may even decide not to enter
into a business relationship or to terminate an existing business relationship.
Heraeus has set up several committees in 2023 to monitor
the implementation of the Act and to assess the efficacy ofthe processes and their implementation, including the effectiveness of the compliance and ethics hotline (see also
Upholding Human Rights at Heraeus and throughout the
Value Chain).

TARGETS
The tracking of performance and effectiveness data relating
to responsible supply chain management is currently under
expansion across the Operating Companies. Technicalcapabilities for gathering additional KPI-relevant data havebeen initiated, and target setting will be undertaken as thesedata become available.

KPI TABLE

27

Disclosure
Indicator

KPI Description

2020

2021

2022 Unit

Comments

Energy­consumption
and mix

a. Fuel consumption
from coal andcoal products

0.00

0.00

0.00 kWhThe scope of 2020 energy
data is production sites
only

b. T
 otal fuel consumption fromcrude oil and petroleum products-

882,412.42

983,612.15 kWh

2020: includes Nexensos
and does not include­Norwood, Mo-Sci, ETS,SKO

Gasoline-

85,552.76

0.00 kWh

Fuel oil-

398,840.19

378,088.49 kWh

26,590,940.00

28,450,314.65

32,583,216.36 kWhe. T otal consumptionof purchased or­acquired electri­
city, heat, steam,or cooling fromfossil sources

355,113,101.00

497,117,284.87

495,672,641.50 kWh

Electricity

340,817,201.00

405,513,320.10

425,291,163.00 kWh

Districtheating / steam

14,295,900.00

36,625,727.31

31,152,854.83 kWh-

54,978,237.45

39,228,623.69 kWh

Carbon Scope 1
emissions45,105.00

53,983.00

51,553.00 t of CO2-eq

Carbon Scope 2
emissions(market-based)-

176,388.00

188,726.00 t of CO2-eq

Carbon Scope 2
emissions(location-based)

161,798.00

163,591.00

164,853.00 t of CO2-eq

Thermal Heat
Gross Scopes
1 & 2 total
GHG
emissions

STRATEGYd. T
 otal fuelconsumption
from propane

ENVIRONMENT

177,630,086.40 kWh

In 2020, only production
sites, location-based CO2
emission factors, were in
the scope except for one
Operating Company. The
method has improved tofollow the GHGP as of
2021.
2020: includes Nexensos
and does not include
Norwood, Mo-Sci, ETS,
SKO
2021, 2022: excludes
Nexensos and includes
Norwood, Mo-Sci, ETS

Water
Resource
outflows

Water consumption

1,265,156.00

1,042,282.00

1,176,018.00 m3

Water discharge

742,237.00

721,141.00

566,670.00 m

Total amount ofwaste generated

42,604.00

40,503.00

36,663.00 t

Non-hazardous
waste

35,273.00

33,100.00

29,273.00 t

Hazardous
waste

7,331.00

7,403.00

7,390.00 t

3

Waste and water data arecollected currently only
from production sites andwith the exception of afew, typically recently purchased Operating Companies, like Mo-Sci, ETS,
Norwood.
Figures include Nexensos.

SOCIAL

596,523.66 kWh

199,789,955.20

GOVERNANCE

398,019.48

170,394,538.00

Diesel oil

DATA

-

c. Total fuelconsumption
from natural gas

2021, 2022: excludes
Nexensos and includes
Norwood, Mo-Sci, ETSTABLE OF CONTENTSKPI TABLEENVIRONMENT – CLIMATE CHANGE MITIGATION AND ENERGY28

H E R A E U S | S U S T A I N A B I L I T Y R E P O R T 2 0 2 1-2 0 2 2

SOCIAL – WORKING CONDITIONS
Disclosure Indicator KPI Description
Health and safety
metrics

Percentage of people inown workforce who arecovered by the undertaking’s health and safety management system

2020

2021
-

2022
82

76

Unit

Comments%

Aggregated for own workforce,­comprising of employees and non-­employees. Non-employees aredefined as persons who are not
employed by Heraeus but madeavailable to the site by anothercompany for a fee. Contractors are
not included.
The percentage provided is on an
FTE basis.
The decline in 2022 is due to theacquisition of multiple businesses.

Number of fatalities asa result of work-­related
injuries and work-related ill health
Own workforce

-

0

0

AmountOther workforce

1

1

0

Amount

1,454

1,209

1,575

Number ofdays

By non-employees

95

139

183

Number ofdays

Non-employees are defined as­persons who are not employed by­Heraeus but are made available tothe site by another company for afee. Contractors are not included.

Lost-time incident rate
(LTIR)

3.6

3.7

3.6

Number ofoccupational
incidents /million hours
workedThe LTIR represents an aggregatednumber including employees andnon-employees, defined as persons
who are not employed by Heraeus
but are made available to the site
by another company for a fee. Contractors are not included.

Total number of days lost
to work-related injuries
and fatalities fromwork-related accidents

The original KPI for 2020, reported
in the 2020 sustainability report,
was 3.5. The value later changed to
3.6 due to a correction of hours
worked data.

KPI TABLE

29

SOCIAL – EQUAL TREATMENT AND OPPORTUNITIES FOR ALL
2020

2021

2022 Unit

13,911

15,114

15,938

Men

66

66

65

%

Women

34

34

35

%

Germany

38

34

34

%

Rest of Europe

16

16

16

%

Comments

Number byhead countEmployees by region

Diversity metrics

Asia

28

25

24

%

Americas

17

24

25

%

Africa/Australia

1

1

1

%

Gender diversity at
executive level
Men

80

81

80

%

Women

20

19

20

%

Includes Operating Companies’
Leadership Teams and Corporate
Function Heads totaling about 100
peopleIn 2021 excl. SKO, AMS,
Mo-Sci, ETS
In 2022 excl. SKO, AMS,
Mo-Sci, Erbas

Employees by age

Training and skills development metrics

Additional KPIs training of skilled workers

Up to 30

14

14

15

%

30–39

30

29

29

%

40–49

27

27

27

%

50–59

23

23

22

%

60+

6

7

7

%

Men

-

125 (67)

Number (%)

Women

-

62 (33)

Number (%)

Total number ofparticipants-

187 (100)

Number (%)

Participants in talentadvancement programin 2021/2022

Number of apprenticeships and study
programs

30

30

30

NumberNumber of graduates

71

101

102

NumberNumber of dual
­students & apprentices
at year-end

327

297

268

Number

In 2021 excl. SKO, AMS,
Mo-Sci, ETS
In 2022 excl. SKO, AMS,
Mo-Sci, Erbas

STRATEGY

In 2022 excl. SKO, AMS,
Mo-Sci, Erbas

TABLE OF CONTENTS

In 2021 excl. SKO, AMS,
Mo-Sci, ETSENVIRONMENT

Employees by gender

SOCIAL

Total number of
employees at year-end

GOVERNANCE

Characteristics of theundertaking’s
employees

DATA

Disclosure Indicator KPI Description

30

H E R A E U S | S U S T A I N A B I L I T Y R E P O R T 2 0 2 1-2 0 2 2

GOVERNANCE – CORPORATE CULTURE
Disclosure Indicator KPI Description

2020

2021

2022 Unit

Business conduct
policies and corporate
cultureNumber of unique visitors accessing compliance guidelines via
intranet

-

1,003

1,605

NumberConfirmed incidentsof corruption orbribery

Number of convictions
and the amount of fines
for violation of anti-corruption and anti-bribery
laws

-

0

0

NumberTotal number and nature of confirmed incidents of corruption orbribery-00NumberComments

GRI CONTENT INDEX

31

GRI CONTENT INDEXStatement of Use:
Heraeus Holding has reported the information cited in this GRI content index for the period January 1, 2021,
to December 31, 2022, with reference to the GRI Standards (GRI 1: Foundation 2021).

2-4 Restatements of information

Our Strategy and Business Model: Report Content and Reporting Period

2-5 External assurance

Our Strategy and Business Model: External Assurance

2-6 Activities, value chain
and other business relationships

Our Strategy and Business Model: A Family-Owned Technology Group

2-7 Employees

Social: Our Commitment to Equal Opportunities
and an Attractive Place to Work

Governance: Our Commitment to a Responsible Value Chain

KPI Table
2-9 Governance structure and composition

Sustainability Governance at Heraeus: Effective Structures
to Operationalize Strategy and Responsibility

2-10 Nomination and selectionof the highest governance body

Sustainability Governance at Heraeus: Effective Structures
to Operationalize Strategy and Responsibility

2-12 R ole of the highest governance body inoverseeing the management of impacts

Sustainability Governance at Heraeus: Effective Structures
to Operationalize Strategy and Responsibility

2-13 Delegation of responsibility
for managing impacts

Sustainability Governance at Heraeus: Effective Structures
to Operationalize Strategy and Responsibility

2-14 Role of the highest governance bodyin sustainability reporting

Sustainability Governance at Heraeus: Effective Structures
to Operationalize Strategy and Responsibility

2-15 Conflicts of interest

Sustainability Governance at Heraeus: Effective Structures
to Operationalize Strategy and Responsibility

2-17 Collective knowledgeof the highest governance body

Sustainability Governance at Heraeus: Effective Structures
to Operationalize Strategy and Responsibility

2-22 Statement on sustainable
development strategy

Letter from the CEO

2-23 Policy commitments

Environment: Our Commitment to Reducing Environmental Impact

Governance: Our Commitment to a Culture of Compliance

STRATEGY

Our Strategy and Business Model: Report Content and Reporting Period

ENVIRONMENT

2-3 Reporting period, frequency
and contact point

SOCIAL

Our Strategy and Business Model: A Family-Owned Technology GroupTABLE OF CONTENTSLOCATION
Our Strategy and Business Model: A Family-Owned Technology Group

GOVERNANCEDISCLOSURE

GRI 2:
2-1 Organizational details
General Disclosures 2-2 E ntities included in the organization’s
2021
sustainability reporting

Social: Our Commitment to Safe WorkSocial: Our Commitment to Equal Opportunities
and an Attractive Place to Work
Governance: Our Commitment to a Culture of Compliance
Governance: Our Commitment to a Responsible Value Chain
2-24 Embedding policy commitments

Environment: Our Commitment to Reducing Environmental Impact:
Policies & Responsibilities
Social: Our Commitment to Safe Work: Policies & Responsibilities
Social: Our Commitment to Equal Opportunities
and an Attractive Place to Work: Policies & Responsibilities
Governance: Our Commitment to a Culture of Compliance:
Policies & Responsibilities
Governance: Our Commitment to a Responsible Value Chain:
Policies & Responsibilities

2-26 Mechanisms for seeking advice
and raising concerns

Governance: Our Commitment to a Resposible Value Chain

2-27 Compliance with laws and regulations

Governance: Our Commitment to a Culture of Compliance2-29 Approach to stakeholder engagement

Ongoing Dialogue with Stakeholders Shapes Our Development

2-30 Collective bargaining agreements

Fair Compensation and Company BenefitsDATA

GRI STANDARD

32

H E R A E U S | S U S T A I N A B I L I T Y R E P O R T 2 0 2 1-2 0 2 2

GRI STANDARDDISCLOSURE

LOCATION

GRI 201:
Economic
Performance 2016

201-1 Direct economic value generated
and distributed

Our Strategy and Business Model: A Family-Owned Technology GroupGRI 205:
Anti-corruption
2016

GRI 302:
Energy 2016

KPIs
Financial Report 2022

201-2 Financial implications
and other risks and opportunities
due to climate change

Environment: Our Commitment to Reducing Environmental Impact

205-1 Operations assessed
for risks related to corruption

Governance: Our Commitment to a Culture of Compliance

205-2 Communication and training
about anti-corruption policies
and procedures

Governance: Our Commitment to a Culture of Compliance

205-3 Confirmed incidents of corruption
and actions taken

KPI Table

302-1 Energy consumption
within the organization

Environment: Our Commitment to Reducing Environmental Impact

302-2 Energy consumption
outside of the organization

Environment: Our Commitment to Reducing Environmental Impact

KPI Table

GRI 303:303-5 Water consumption
Water and Effluents
2018

KPI Table

GRI 305:
Emissions 2016305-1 Direct (Scope 1)
GHG emissions

Environment: Our Commitment to Reducing Environmental Impact

305-2 Energy indirect (Scope 2)
GHG emissions

Environment: Our Commitment to Reducing Environmental Impact

306-1 Waste generation and significant
waste-related impacts

Environment: Our Commitment to Reducing Environmental Impact

306-2 Management of significant
waste-related impacts

Environment: Our Commitment to Reducing Environmental Impact

306-3 Waste generated

KPI Table

306-4 Waste diverted from disposal

KPI Table

306-5 Waste directed to disposal

KPI Table

GRI 308:
Supplier Environmental Assessment
2016308-1 New suppliers that were screenedusing environmental criteria

Governance: Our Commitment to a Resposible Value Chain

308-2 Negative environmental impacts inthe supply chain and actions taken

Governance: Our Commitment to a Resposible Value Chain

GRI 401:
Employment 2016

401-1 New employee hires
and employee turnoverSocial: Our Commitment to Equal Opportunities
and an Attractive Place to WorkGRI 306:
Waste 2020

KPI Table
KPI Table

KPI Table
401-2 Benefits provided to full-time
employees that are not provided totemporary or part-time employees

Social: Our Commitment to Equal Opportunities
and an Attractive Place to Work401-3 Parental leave

Social: Our Commitment to Equal Opportunities
and an Attractive Place to WorkSocial: Our Commitment to Safe Work403-2 Hazard identification, risk assessment, and incident investigation

Social: Our Commitment to Safe Work403-3 Occupational health services

Social: Our Commitment to Safe Work403-4 Worker participation, consultation,and communication on occupational
health and safety

Social: Our Commitment to Safe Work403-5 Worker training on occupational
health and safety

Social: Our Commitment to Safe Work403-6 Promotion of worker healthSocial: Our Commitment to Safe Work403-7 Prevention and mitigationof occupational health and safety
impacts directly linked by business
relationships

Social: Our Commitment to Safe Work403-8 Workers covered by an occupational
health and safety management
systemSocial: Our Commitment to Safe Work403-9 Work-related injuries

Social: Our Commitment to Safe WorkKPI Table

KPI Table
403-10 W ork-related ill healthSocial: Our Commitment to Safe WorkKPI Table

GRI 404:
Training and
Education 2016404-1 Average hours of training
per year per employee

Social: Our Commitment to Equal Opportunities
and an Attractive Place to Work404-2 Programs for upgrading employee
skills and transition assistanceprograms

Social: Our Commitment to Equal Opportunities
and an Attractive Place to Work404-3 Percentage of employees receiving
regular performance and careerdevelopment reviews

Social: Our Commitment to Equal Opportunities
and an Attractive Place to WorkGRI 405:
Diversity and Equal
Opportunity 2016405-1 Diversity of governance bodies
and employees

Social: Our Commitment to Equal Opportunities
and an Attractive Place to Work405-2 Ratio of basic salaryand remuneration of women to men

Social: Our Commitment to Equal Opportunities
and an Attractive Place to WorkGRI 406:
Non-discrimination
2016406-1 Incidents of discriminationand corrective actions taken

Social: Our Commitment to Equal Opportunities
and an Attractive Place to WorkGRI 407:
Freedom of Association and Collective
Bargaining 2016407-1 Operations and suppliers in which
the right to freedom of associationand collective bargaining may be
at risk

Social: Our Commitment to Equal Opportunities
and an Attractive Place to WorkGRI 414:
Supplier Social
Assessment 2016414-1 New suppliers that were screenedusing social criteria

Governance: Our Commitment to a Resposible Value Chain

414-2 Negative social impacts in the
supply chain and actions taken

Governance: Our Commitment to a Resposible Value Chain

KPI Table

TABLE OF CONTENTS

403-1 Occupational healthand safety management system

STRATEGYGRI 403:
Occupational
Health and Safety
2018

ENVIRONMENTLOCATION

SOCIALDISCLOSURE

GOVERNANCEGRI STANDARD

33

DATA

GRI CONTENT INDEXImprint
Published on December 15, 2023,
by Heraeus, Group Sustainability
Heraeusstraße 12–14
63450 Hanau, Germany+49 6181 35-5100
info@heraeus.com
www.heraeus.deContact for questions about this report:sustainability@heraeus.com
Concept, design and implementation:
Heraeus Business Solutions GmbH
Scholz & Friends Berlin GmbH
Reproduction, including excerpts, permitted only with­reference to the source.