SUSTAINABILITY REPORT
2019/20

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ZEISS GroupKey Figures from
Fiscal Year 2019/20(1 October 2019 to 30 September 2020)

More than

32,000126

employees in almost 50 countries

Revenue in fiscal year (FY)

new vocational trainees and students enrolled ina cooperative education program in Germany

6.3 billion euros
2018/19 6.4 billion euros
2019/20700More thanmanagers andoccupational health and safety (OHS) officers
were trained in the use of new OHS software

1

Almostmillion euros in funding from theCarl Zeiss Promotion Fund for around 107 projects
at the sites in Germany

91

percent of the strategically relevant suppliers
have confirmed their compliance with the RBA
Code of Conduct or a comparable code of conduct

51%

48%

31%

reduction in (relative)
energy consumption ascompared to FY 2009/10

reduction in (relative)
water consumption ascompared to FY 2009/10

reduction in (relative)
waste volume ascompared to FY 2009/10

50%

reduction in (relative)
CO2 emissions as comparedto FY 2009/10 (Scope 1 and 2)

2

Highlights from Fiscal Year 2019/20(1 October 2019 to 30 September 2020)

Discovering nature and technology virtually
In this time of social distancing, the importance of virtual visitor experiences is growing.
And in order to meet changing demands,
ZEISS has created its Digital Nature Hub: aplatform that enables interested parties todiscover binoculars and spotting scopes fromZEISS. Talks and videos explain how to usethem, enabling viewers to find out more about
the interplay between nature and technology.
The Digital Nature Hub was initiated as a new
virtual platform for the annual Birdfair trade
fair in the UK and can be visited online at any
time.

Technical support in times of crisis
During the contact and travel restrictions
imposed in response to the COVID-19
pandemic, ZEISS Remote Services proved its
worth as our customers' preferred option
for technical support. The ZEISS Service
team stepped in with expert remote maintenance to compen­sate for the temporarylack of in-person assistance in many regions.
Software installation, updates, and real-time
support were all possible without an on-site
appointment and helped keep ZEISS products
fully operational worldwide.

Energy-efficient night sky
The ZEISS ASTERION is a highly powerful, energy-efficient planetarium projector. Its design
features both optomechanical components
and a digital dome projection system thatrecreates the night sky in a way that is unmatched by projectors that work in a purely
digital way. Thanks to LED light sources, the220-watt projector is extremely efficient andbuilt to last – in fact, you'll never need toreplace the projector's bulbs. For customers,that means a reduction in power consumptionof more than 75 percent as compared to previous models and devices from competitors,
as well as annual savings of over 1,000 euros
due to the elimination of replacement bulbs.

New research partnerships
In spring 2020, ZEISS opened the ZEISSInnovation Hub on the campus of the Karls­
ruhe Institute of Technology (KIT) to enablehigh-tech and digital start-ups to settle there,
and to pursue its own innovation and new
business activities as well. KIT will offer newopportunities to join the experts at ZEISSin shaping the technologies of the future.
The most recent examples of ZEISS's close
links to the scientific community are adoctorate project involving machine learningand the Computer Vision Hackathons run incolla­boration with the Computer Vision for
Human-Computer Interaction Lab as thepartner from academia. At the hackathon in
September, ambitious and creative individuals
came face to face with real-life challenges.

For more information, visit:www.zeiss.com/newsroom

3

Contents2	Key Figures from
Fiscal Year 2019/20
3	Highlights from
Fiscal Year 2019/20
4

Contents

5

Foreword by the Executive Board

6

About the Report7	Company Profile andBusiness Model
9
The Four Segments and Their Products
11 Corporate Governance
12 Business Model

27
28
30
30
30

01

Integrity and compliance
Compliance
Anti-Corruption
Political Influence
Data Protection

02

32	Products and Value Chain
33 Product Safety and Product Development
36 Procurement and Supplier Management39	Implementing the German National
Action Plan for Business and Human
Rights (NAP)

41
42
44
46
47
48

51
52
56
58
60

03

Employees
Employee Involvement
Attracting and Developing Employees
Diversity and Equal Opportunities
Work-Life Balance
Occupational Health and Safety

05

61 Social Engagement
65 GRI Content Index
72 Legal Information

04

Environment
Efficient Use of Natural Resources
Climate Protection at ZEISSFocus on Climate Risks
Environmental Compliance

13 Strategy and Sustainability
15	Organizational Structure for
Sustainability
18 Results of the Materiality Analysis
19	Sustainability at ZEISS – Progress of
the Activity Fields
23	How ZEISS Contributes to the Global
Sustainable Development Goals

4

BACK TOCONTENTS

Foreword by the Executive Board
place their trust in us and support our successful collaborations. At the same time, I would also like to thank our over
32,000 employees for their exceptional discipline, tremendous
flexibility, and unwavering commitment.

Ladies and Gentlemen,
Dear Readers,
We can look back on an unusual fiscal year in which wehave felt the impact of the COVID-19 pandemic both as acompany and personally. Stamina and team spirit were – andstill are – required to overcome this crisis. The resilience program we were working on prior to the pandemic also helped
us to protect the company against any economic downturns.
We have been focusing on four goals since the beginningof the pandemic: to protect employee health, ensure business
continuity and support our customers, counter the econo­
mic impact of the pandemic as effectively as possible, andleverage the market opportunities resulting from the current
changes.
As a result, together we achieved a good result for fiscal year
2019/20. For this reason and on behalf of the entire ZEISSExecutive Board team, I would like to express my sincere
gratitude to our customers and partners for continuing to

The COVID-19 pandemic triggered dynamic change processes
in many areas. Our employees had to adapt to new work­
ing conditions quickly and flexibly. We expanded our digitallearning platform, ZEISS CurioZ, so that our employees could
emerge stronger from the pandemic, with additional com­
petencies and skills. We were able to convert around 40
percent of all in-person training sessions into virtual training
courses and blended learning formats.
During the lockdowns in particular, digital processes helped
us to maintain the quality of our collaboration with ourcustomers. Thanks to our Remote Services, we enabled software installations, updates, and real-time support for ZEISS
products without the need for an on-site appointment.
The pandemic also changed the meaning of virtual visitor
experiences. With our Digital Nature Hub, we establisheda platform that interested parties can use to discover ZEISS
binoculars and spotting scopes and experience the interplay
between nature and technology virtually. But this shift tothe digital world did not only meet the challenges of thespecial situation triggered by the pandemic. It also eliminatedthe CO2 that would have been emitted to transport products
and visitors to trade fairs.
It also helps us create sustainable value, make a global con­tribution to climate protection, and improve quality of life
with our products. With its measuring and testing solutions,ZEISS supports the expansion of e-mobility: from batteries andpower electronics to e-motors. Our innovations in ophthal­mol­ogy and medical technology raise the bar in healthcare,while our microscopy products help us drive progress inmedicine and biotechnology.
It is imperative that sustainable activities are incorporated into
the corporate strategy – and this is something we have continued to work on in the past fiscal year. With the newly createdposition of head of sustainability and the establishment of acentral Sustainability team, sustainability has been accorded
greater importance in the ZEISS Group's strategic orientation.
And on the division level, sustainability officers ensure that
our sustainability approach is reflected in the diversity of our
product portfolio. With this structure, we want to achieve ourgoals of embedding sustainability throughout the company,
rendering it measurable and developing it further. This Sustainability Report provides information on this and other pressing
topics in fiscal year 2019/20 and shows how ZEISS has taken
on responsibility along its value chain and positioned theGroup as sustainable – in order to face both the pandemic
and the challenges of the future.
Stay healthy!

Dr. Karl Lamprecht
President & CEO of the ZEISS Group5

BACK TOCONTENTS

About the Report (GRI 102-40, 102-45)
This Sustainability Report is intended for the ZEISS Group's
customers, business partners, employees and investors aswell as interested stakeholders from industry, science, politics
and society – and especially those who live near one of our
locations. The report illustrates how the company contributes
to sustainable development, what goals it has set for itself,
which structures have been put in place and what actions
it has taken. The report also addresses the company's legal
obligations in different areas.
This Sustainability Report references fiscal year 2019/20(1 October 2019 to 30 September 2020). All relevant depart­ments were involved in its preparation, and the report has
been approved by the Executive Board. Unless stated otherwise, the statements and performance indicators in the reportrefer to all ZEISS Group segments and sites worldwide.
The report was prepared as per the standards set forth by the
Global Reporting Initiative (GRI), the internationally recognizedframework for sustainability reporting. This report was createdin accordance with the Core option of the GRI Standards. The
report was made available to the GRI for review by the GRI
Materiality Disclosures Service. It has confirmed the correct
placement of the Materiality Disclosures (102-40 to 102-49) inthe report. The ZEISS Group publishes its Sustainability Reportannually.

6

BACK TOCONTENTSCOMPANY PROFILEAND BUSINESS MODEL

7

BACK TOCONTENTS

Company Profile
and Business ModelZEISS develops, produces and distributes highly
innovative solutions for industrial metrology andquality assurance, microscopy solutions for thelife sciences and materials research, and medical
technology solutions for diagnostics and treatment
in ophthalmology and microsurgery. The name
ZEISS is also synonymous with the world's leading
lithography optics, which are used by the chipindustry to manufacture semiconductor components. ZEISS branded products such as eyeglass
lenses, camera lenses and binoculars are popular,
trendsetting products around the globe.
ZEISS is represented by more than 32,000 employees in almost
50 countries working at around 60 sales and service subsidiaries,
30 production facilities and 27 research and development sitesaround the world. Founded in 1846 in Jena, the company is now
headquartered in Oberkochen, Germany. The Carl Zeiss Foundation, one of the largest German foundations committed to thepromotion of science, is the sole owner of Carl Zeiss AG. ZEISS
is divided into four segments: Semiconductor Manufacturing
Technology, Industrial Quality & Research, Medical Technology,
and Consumer Markets. The ZEISS Group encompasses a businessportfolio that is divided into nine strategic business units. The
strategic business units are assigned to the relevant segments. In
fiscal year 2019/20, the ZEISS Group generated revenues of 6.3
billion euros. The Annual Report 2019/20 provides informationon the general economic framework for the company's development and lists the Group's revenue by region in the Report on
Economic Position.

1
Integrity andCompliance

Strategy andSustainability

2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Approx.
Directly
represented
in almost

9,800
patents
worldwide

50

Over

32,000employees
worldwide

countries

13

Around100

percent ofrevenues
invested inresearch anddevelopment

sites
worldwide

Almost

1,000

3,910

new jobs
created520

employees in
Research and Developmenttrainees
worldwide

8

BACK TOCONTENTS

Company Profile
and Business Model

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

The Four Segments and Their Products
Semiconductor
Manufacturing Technology

Industrial Quality &Research• Semiconductor
Manufacturing Optics• Industrial
Quality Solutions• Semiconductor
Mask Solutions• Research
Microscopy Solutions• Process Control
Solutions

Medical technology

Consumer Markets• Ophthalmic Devices• Vision Care• Microsurgery• Consumer Products

Semiconductor Manufacturing Technology
With its product portfolio and globally leading know-how,the Semiconductor Manufacturing Technology segment
covers a variety of key processes in the production of micro­
chips. ZEISS develops and manufactures products using semiconductor manufacturing technology, including litho­graphy
optics, photomask systems and process control solutions,key technologies for manufacturing extremely fine circuit

path structures on silicon wafers – the material from which themicrochips are made. The technologies from ZEISS enable thecontinued miniaturization of semiconductor structures, resulting
in smaller microchips that are more powerful, energy-efficientand cost-effective. The electronic applications equipped with thistechnology enable global progress in a variety of disciplines, including technology, electronics, communication, entertainment,
mobility, energy and artificial intelligence.

Industrial Quality & Research
The products and solutions developed in the Industrial
Quality & Research segment are focused on quality assurance
in production, increasing productivity, and visualizing andmani­pulating the tiniest of structures in the areas of scienceand research. The portfolio of coordinate measuring machines, optical and multi-sensor systems, software solutions,comprehensive services and innovative technologies suchas 3D X-ray measurement in quality control is used by theautomotive, aerospace, mechanical engineering and plastic
industries, as well as in medical technology. In the areas ofscience and research, the segment covers the complete rangeof micro­scopy solutions with light, ion, electron and X-ray
microscopy systems. The products and solutions are used inbiomedical sciences and materials research, for training purposes and in clinical practice.
Medical Technology
The Medical Technology segment develops, manufactures,
markets and sells diagnostic and treatment systems, as wellas implants and consumables in the field of ophthalmology.
Its portfolio also includes visualization systems for neuro­
surgery, ENT surgery and spine surgery, and dentistry. Intraoperative radiotherapy solutions round off the product range.
The segment aims to drive progress in medicine and assist
doctors all over the world in improving their patients' qualityof life. Digital technologies, with which the segment wants
to shape the medical technology market, also come into play.
The segment's activities are pooled primarily in the listed
entity Carl Zeiss Meditec AG, in which Carl Zeiss AG holds a59.1 percent stake.

9

BACK TOCONTENTS

Company Profile
and Business Model

Consumer Markets
The Consumer Markets segment operates in the areas ofophthalmic optics, photography, cinematography, natureobservation and sports optics. ZEISS develops, manufacturesand distributes solutions for the entire ophthalmic optics value
chain. Alongside ZEISS precision eyeglass lenses, this includes
devices for eye examination and vision testing, digital consul­
tation and measurement applications and comprehensive
services for eye care professionals. ZEISS is one of the world's
largest manufacturers of eyeglass lenses and provides a combination of ophthalmic and optical expertise. With its camera andcine lenses, binoculars, spotting scopes and sports optics, ZEISS
offers high-end products and applications for the hobbies andprofessional needs of discerning customers.

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Consolidated revenue by segment
Revenue by segment

2019/20

2018/19

Change over prior year in %Adjusted for currency influences€ million€ million

Semiconductor Manufacturing Technology

1,833

1,634

12

12

Industrial Quality & Research

1,640

1,742

-6

-5

Medical Technology

1,647

1,760

-6

-6

Consumer Markets

1,099

1,211

-9

-8

Other
ZEISS Group

78

81

-4

-5

6,297

6,428

-2

-1

2019/20

2018/19

Change over prior year in %€ million€ million

Adjusted for currency influences

1,746

1,881

Consolidated revenue by region
Revenue by region
and cooperation partner

Europe, Middle East, Africa (EMEA)

Dealing with the COVID-19 pandemic
The COVID-19 pandemic also had an impact on the
ZEISS Group in the reporting period. In order to tackle its
influence and successfully sustain business operations,ZEISS made several adjustments to its operational proce­dures and work routines. In particular, the pandemic
impacted supply chain management and occupational
health and safety. Some scheduled audits that could not
be performed on-site due to travel restrictions wereconducted digitally, with the help of remote solutions.

-7-7» Germany

588

626

-6

-6

Americas

1,180

1,347

-12

-11

Asia/Pacific (APAC)

1,738

1,716

1

2

Cooperation partners

1,633

1,484

10

10

ZEISS Group

6,297

6,428

-2

-1

10

BACK TOCONTENTS

Company Profile
and Business Model

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Corporate GovernanceCarl Zeiss AG is the strategic management holding company
that manages the ZEISS Group. It develops the ZEISS Group'sbusiness activities and portfolio, and provides central management and service functions.
The Supervisory Board oversees the activities of the non-listed
corporation's six-member Executive Board. In accordancewith the provisions of the German Co-Determination Act(Mitbestimmungsgesetz), it is represented by equal numbers
and comprises 16 members. Half its members represent thesole shareholder – the Carl Zeiss Foundation – while the otherhalf represents the employees.
The Carl Zeiss Foundation's statutes govern the activities andaccounting of the foundation-owned companies, the dutiesof the Executive Board and the collaboration between the
Executive and Supervisory Boards. For example, when determining total compensation paid to the individual membersof the Executive Board, including any severance or pension payments, the Supervisory Board must ensure that the compen­
sation paid is commensurate with the duties and performanceof the board member and the company's financial position.
Further bodies of rules defining responsible and compliant
corporate governance at the company are the ZEISS Identity,
the company's Code of Conduct, governance and complianceguidelines, leadership principles and corporate directives.
The Carl Zeiss Foundation
The Carl Zeiss Foundation is the sole owner of Carl Zeiss AG.
The Carl Zeiss Foundation's statutes govern the activities andaccounting of the foundation-owned companies, the dutiesof the Executive Board and the collaboration between the
Executive and Supervisory Boards. This special ownership
structure ensures stability and enables the company to create
long-term perspectives. The Foundation statutes prohibit thesale of shares through an initial public offering, for example.
In 1889, physicist and entrepreneur Ernst Abbe founded
the Carl Zeiss Foundation to which both Carl Zeiss AG andSCHOTT AG belong. The objectives of the Foundation stipulated
by Abbe remain valid today:» Safeguarding the future and responsible management of thetwo foundation-owned companies» Meeting its special responsibility toward employees» Meeting its social responsibility through the commitment of
the foundation-owned companies to non-profit activities intheir surrounding regions» Promoting science

Carl Zeiss Foundation

Foundation acting as a shareholder
100%

100%

ZEISS GroupSCHOTT Group

Foundation-owned
company
Carl Zeiss AG
Oberkochen

Foundation-owned
company
SCHOTT AG
Mainz

Subsidiaries

Subsidiaries

With this unique corporate model, the Carl Zeiss Foundationand the two foundation-owned companies made industrial andsocial history in Germany. Since 2004, the Foundation hasreceived dividends of EUR 321 million from Carl Zeiss AG inorder to achieve its goals. The Foundation uses the dividends
from Carl Zeiss AG and SCHOTT AG to promote science –particularly the natural and engineering sciences, mathematics
and information technology – at universities in the German
federal states of Baden-Württemberg, Rhineland-Palatinate andThuringia. Today, the Carl Zeiss Foundation is one of Germany's
largest foundations focused on the promotion of science.
For more information, visit:www.carl-zeiss-stiftung.de/english

11

BACK TOCONTENTS

Company Profile
and Business Model

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Business ModelZEISS has a broad and balanced business portfolio focusedon attractive future-oriented markets for optics, precision
mechanics and optoelectronics. As a global technology enter­
prise, ZEISS plays an active part in advancing cutting-edge
technology and drives the world of optics and related fields
with its solutions. The aim of portfolio management is thesustainable business success of the ZEISS Group, which
demands a strategy that is focused on continuous valueenhancement. The ZEISS mission statement is: “As the pioneerof science in optics, we continue to challenge the limits ofimagination. With our passion for excellence, we create
value for our customers and inspire the world to see in
new ways.” That is why the ZEISS brand essence is "Seeing
beyond."The ZEISS Agenda 2020 charts a clear strategic course forthe development of the ZEISS Group until the end of fiscal
year 2019/20. It also pools the key elements of the portfolio
strategy and those of each segment. The four cornerstones of
the ZEISS Agenda 2020 – Customer, Competitive, Digital andTeam – summarize what is needed to execute the strategy
successfully. The aim is for ZEISS to focus more sharply on its
customers, pay more consistent attention to its competitiveness, and fully utilize the possibilities of digitalization and thepotential of the global ZEISS team. The new ZEISS Agenda
2025 has been gradually implemented throughout the company since October 2020.
Products and Value Chain
Optics and optoelectronics are two of the key technologiesof the future. The technological and scientific applications
will make ever more inroads into our lives and continue

to improve people's quality of life. When developing newtechnologies and solutions, ZEISS partners with renowned universities, research institutes, customers and experts throughglobal networks. Suppliers and business partners around theworld make a pivotal contribution to ZEISS' products andservices and thus strongly impact the company's sustainability
performance.
ZEISS develops the products and solutions itself. When it
comes to manufacturing, the segments of the ZEISS Group
collaborate with partners that supply either complete products
or key components. Purchasing organizations around theglobe source both production and non-production materials
from local and international suppliers. The most important
suppliers include those for glass, electronic elements and components, metals, mechanical components, plastics, soft­ware
and IT solutions. The ZEISS business units generate around50 percent of total purchasing volume via 510 major suppliers
located throughout EMEA, APAC and the Americas.
Depending on the business, market, and customer segment,
ZEISS relies on different distribution channels such as sales
and service companies (SSCs), direct sales and distributors toprovide all regions with access to ZEISS solutions.

ZEISS invests in innovations and solutions, and uses patents toretain its innovative edge. At the end of the reporting period,
ZEISS held around 9,800 patents worldwide (prior year: approximately 9,400). In the reporting period, the company applied
for new patents for approximately 580 inventions (prior year:
approximately 500).

ZEISS Partners with ResearchersZEISS invests 13 percent of its revenue in research anddevelopment work. ZEISS has a long tradition of highexpenditure on research and development. This also
represents our investment in the future. Robert Koch,
Christiane Nüsslein-Volhard, Eric Betzig, Stefan W. Helland William E. Moerner – for more than 100 years, over
35 Nobel laureates have advanced scientific progressusing ZEISS devices. For example, Robert Koch discovered
the cause of tuberculosis, establishing modern bacteriology in the process. Christiane Nüsslein-Volhard was honored for her studies on the genetic control of embryonicdevelopment. Eric Betzig, Stefan W. Hell and William E.
Moerner performed groundbreaking work in the deve­
lopment of high-resolution microscopy methods as thebasis for further progress in science and research.

Business Development
Positive business development makes it possible to invest
in infrastructure and innovations, pay a reliable dividend to
the Carl Zeiss Foundation and fairly compensate employees
around the world. By paying taxes where value is created,
ZEISS has a direct impact on the future-oriented development
of different regions and the people who live there.

12

BACK TOCONTENTSSTRATEGY AND SUSTAINABILITY

13

BACK TOCONTENTS

Company Profile
and Business Model

As a foundation-owned company, sustainability
and business success are inextricably linked at
ZEISS. Sustainable value added is an integral
component of the company's business activity,
which focuses on innovative solutions that contribute to positive development in society andenable long-term, profitable growth.
Responsible behavior contributes greatly to the enormous
trust that customers place in the ZEISS brand. This is also thereason why ZEISS actively funds research and training andhelps to reduce social and health problems.
In fiscal year 2019/20, the ZEISS Group implemented further
concrete steps to incorporate sustainability in the corporate
strategy even stronger. For example, by creating the positionof head of sustainability and a central Sustain­ability team at
Corporate Strategic Development.
Goals and values
As a foundation-owned company, social responsibility is
one of the most important goals shaping the ZEISS Group's
entrepreneurial behavior. Codified by the founder of theCarl Zeiss Foundation, the company's goals include profitable
growth, responsibility toward employees, a commitment tosociety and social issues and the advancement of science andeducation.
The company still upholds those ambitions today. With its
products, ZEISS makes a contribution to research and devel-

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

Seeing beyond
The ZEISS brand is a promise to our customers. As areliable partner, we keep that promise in the work we doevery day. This results in trust and appreciation, which
are the most important basis for any promise. It is theprerequisite for collaboration based on partnership. In
order to keep our promise and prove that we are worthyof your trust time and time again, we approach thefulfillment of demanding, complex customer needs withan enormous capacity for innovation, leading technologies
and sound application expertise. And with a very special
attitude that distinguishes both us as a company andevery ZEISS employee individually. This attitude is also
expressed in our brand identity: "Seeing beyond."

opment worldwide and improves many people's lives. That is
another aspect that sets ZEISS apart as a pioneer in the fieldof scientific optics: the profound belief that the com­pany's
fundamental mission goes far beyond simply generating profits.
The ZEISS Agenda 2020 set the strategic targets for corporate
development until the end of fiscal year 2019/20. Customers
are the focus of all activities because ZEISS always aspires to be
their "preferred partner." To live up to its targets, ZEISS mustmeet the highest quality and service standards and demonstrate that it behaves responsibly along the entire value chain.
Guidelines for entrepreneurial behavior
Compliance with laws and regulations is the foundation of

3
Employees

4
Environment

5SocialEngagement

sustainable corporate governance. The ZEISS Group's Codeof Conduct became effective in 2007 and was last updated
in 2020. It sets out binding principles for all of the company'ssites worldwide. They help guide employees and managers
as they carry out their daily activities in a responsible manner.
The Code of Conduct contains rules on how to behave when
dealing with employees and business partners, as well as on
product safety, environmental and occupational protection
and combating corruption. More detailed company directives are available for all the topics addressed in the Code of
Conduct.
Our sustainability concept
ZEISS understands that growth is only possible in an intact
environment that is open to innovation. Only companies that
respect the needs and motivations of others – particularly
customers, business partners, employees, and local communities – and cooperate with them on an ongoing basis canachieve long-term business success. At ZEISS, generating
acceptance for the company's own activities and assuming
responsibility for the environment, employees and society is
an integral part of the business philosophy. Behaving withintegrity and in a lawful manner is the basis upon which the
ZEISS business philosophy is built. ZEISS goes the extra mile
and achieves more in many areas.
The approach with which ZEISS addresses, implements andintegrates the requirements for responsible and sustainablebusiness practices in its day-to-day operations is divided
into five key areas of activity: Integrity and Compliance,
Products and the Value Chain, Environment, Employees andSocial Engagement.

14

Company Profile
and Business Model

BACK TOCONTENTS

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Organizational Structure
for Sustainability

nment
viro
En

Responsibility
at ZEISSgm rit yp li a nan dceFive Key Areas of Activity

em

e
Int o
C

en

t

Products
Value Ch andain

Employees

S o cia

l En

g
ga

Drivers of Innovation
With its innovations, ZEISS drives progress, efficiency andthe success of its customers as the basic requirement for its
own economic success. That is why ZEISS strives to proactively
shape markets through the evolution of existing products
and the development of new ones. As part of this process,innovation at ZEISS is always placed within the context ofsociety as a whole. The primary objective of all innovations is
to meet customers' requirements now and in the future. The
optical and optoelectronic technologies from ZEISS pave theway for new scientific findings and many innovations in otherindustries. Life sciences like bionics and medical technology
will become more and more vital for a modern society. And
the developments in semiconductor technology enable digitalization in industry and society. Intelligent sensor systems,
different types of robotics and artificial intelligence increasingly
shape how people live and work. In order to advance theecological sustainability of its own products, ZEISS is supplement­­ing its innovation man­agement practices with sustain­ability
themes such as circular economy and recycling.
Contribution to the global Sustainable Development Goals
ZEISS pledges its commitment to the global Sustainable
Development Goals (SDGs) that were adopted by the United
Nations in the fall of 2015. The 17 goals indicate the path tothe future to be achieved by 2030 and call on companies,
politicians and society to play their part. ZEISS wants to do its
part and gave due consideration to the global Sustainable
Development Goals and the role it was able to play in fiscal
year 2019/20, with a particular focus on SDG 13: Climate
Action (see page 26).

At ZEISS, responsibility for sustainability lies with the Executive Board of Carl Zeiss AG. Since fiscal year 2019/20, its
operational implementation has been the responsibility of
the head of sustainability, who regularly reports to the CEO
and is a member of the Corporate Strategic Development
management team. Together with the Sustainability team, thehead of sustainability is in charge of the ZEISS Group's central
sustainability program. This function collaborates with those
responsible for internal processes from the Environment andEnergy Management, Supply Chain Management, andCompliance departments, for example, to embed sustain­
ability topics throughout the ZEISS Group.
As a supplement to the central Sustainability team, therelevant management has appointed a person to look after
sustainability management for each segment and the Shared
Production Unit. Those in charge of sustainability posses
expertise specific to their departments and report directly totheir segment's management. They have been tasked withensuring that a sustainability strategy based on the central
approach is embedded and implemented in their segment,
while ensuring that the ZEISS Group's central sustainability
approach considers the specific requirements of the segment.
Those in charge of sustainability in the segments meet
regularly for the Sustainability Board organized by the headof sustainability and report on their segments' development.

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Company Profile
and Business Model

Dialogue with Stakeholders (GRI 102-42, 102-43, 102-44)
To ensure the company's continued business success, it isessential to incorporate the interests of stakeholders in strategic considerations and acquire stakeholders for collaborative
partnerships with ZEISS. The ZEISS Group implemented asystematic process to identify its key stakeholders. The com­pany concentrates on issues relevant to these stakeholders
when communicating with them. This was determined within
the scope of a materiality analysis.
ZEISS receives questions about sustainability through manydifferent channels. Stakeholders, including customers,
suppliers, interested members of the public and employees,
have the opportunity to ask questions and express theirconcerns via the ZEISS website. ZEISS has set up an email
address specifically for this purpose: responsibility@zeiss.com.
Questions are either answered by the Sustainability team orStrategy andSustainability

1Integrity andCompliance2
Products andValue Chainthey are forwarded to an internal expert. This is how ZEISS
ensures that requests are processed as quickly and accurately
as possible.
Transparency with regard to the ZEISS Group's sustainability
activities continues to be important for both internal andexternal stakeholders. The regular publication of a Sustainability Report and a Non-financial Report by the ZEISS Group is a
decisive step toward intensifying communication with them.
The publicly accessible reports quickly give a wide target

3
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4
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5SocialEngagement

audience easy access to information relevant to them. In
fiscal year 2019/20, there was considerable interest in climate
protection activities, product quality and sustainable corporate
leadership. Customers in particular wanted to find out about
the ZEISS Group's corporate environmental management, andespecially whether certification in accordance with ISO 14001
was in place. They also wanted to know what was being done
to reduce potentially hazardous materials. More and morecustomers used external platforms that systematically request
integrated sustainability information from companies andOverview of Roles and Responsibilities

Supervisory Board &Audit Committee

Executive Board & President and CEO
Prepares objectives anddecisions, reports on
progress

Decisions andobjectives

Reports on
progress

The Sustainability Team at ZEISSThe newly established Sustainability team at Corporate
Strategic Development aims to strategically integratesustainability within the entire organization and render itmeasurable. To achieve its goals, the team collaborates
closely with the different segments and their represen­tatives in order to live up to the diversity of the ZEISS
product portfolio and identify the levers that make thegreatest contribution to sustainable business practices.

Head of Sustainability& central Sustainability teamProvides guidance on
strategic topics and assists
with implementation

Reports on progressin segments and strategic
business units

Departments & committees
relevant for sustainability

Sustainability Board

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Company Profile
and Business Model

Memberships and Initiatives
As a global player, the ZEISS Group is active in manyindustry associations in Germany, participates inregional initiatives, and is involved in many associations that provide financial support and volunteer workfor colleges, universities, and scientific and cultural
institutions. Dr. Karl Lamprecht, the President & CEO of
the ZEISS Group, is Chairman of the Aalen University
Council and a member of the Baden-Württemberg
Board of Trustees of Stifterverband für die Deutsche
Wissenschaft - an innovation agency for the Germanscientific sector. In Germany, ZEISS is involved in theintercompany cooperation project titled Wissensfabrik(Knowledge Factory) and is a long­standing memberof the Max Planck Society. The company is also one of
the signatories of the Diversity Charter, an initiative topromote diversity in German companies. On the global
level, ZEISS is a member of the non-profit trade association The Vision Council. It is also committed to theinitiative run by the World Health Organization (WHO)and the International Agency for the Prevention of
Blindness (IAPB), VISION 2020: The Right to Sight,
which aims to prevent blindness and joins the global
fight against tuber­culosis with the initiative "Stop TB."
Metrology from ZEISS is also a Blue Competence
member of the German Engineering Federation(VDMA) to promote sustainability in mechanical andplant engineering and publicize the industry's sustain­
able solutions.

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

forward it to their users to ask their questions. Responsibility
along the supply chain also played an important role. In thatarea, there were questions about how conflict minerals arehandled and processes for ensuring human rights are upheld.
Employees often asked questions about the company's

3
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5SocialEngagement

internal approaches and goals in relation to climate change
and new mobility concepts. The Sustainability team also
received questions on funding opportunities and the useof internal company information for degree theses and otherprojects.

ZEISS Group stakeholders and communication formats (GRI 102-40, 102-43)
Stakeholder groups (sorted alphabetically)

Key communication formats

Carl Zeiss Foundation

Members of the Executive Board of Carl Zeiss AG sit on the Management Advisory Board of theFoundation, the Chairman of the Supervisory Board sits on the Foundation Council

Company committees/unions

Staff meetings, Works Council committees

Customers(business customers and private consumers)

Consultations, training, global customer satisfaction survey via Net Promoter Score, external
communication channels such as newsletters and social media

Employees and management

Internal communication channels, annual performance reviews, employee satisfaction surveys,
company meetings, Dialogue Tours

Financial institutions

Ongoing communication between ZEISS and financial institutions

Governments, including municipal and stateauthorities (Baden-Württemberg, Thuringia)

Financial reporting, compliance reports, dialogue with Foundation representatives (i.e. with the ministers
responsible for the scientific universities in the German federal states)

Investors

Personalized communication with the Investor Relations department, Annual Report, ZEISS website,
Sustainability Report, Non-Financial Report

Media

Press releases and conferences, trade shows and exhibitions, Annual Report, online presence

Research institutes and universities

Partnerships with universities; funding for professorships, PhD dissertations, bachelor and master theses,
lectures by managers at universities

Supervisory Board

Regular reporting in meetings of the Supervisory Board and its committees

Suppliers

Supplier meetings and audits, subject-specific dialogue, demand-driven supplier development,
seminars and training as part of development partnerships

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Company Profile
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Strategy andSustainability

Products
Value Ch and
ain

t
en

lic
ag h e sem
e nt

The analysis showed that the identified topics
continued to be material for the ZEISS Group. The
results also clearly emphasize that the topics ofwork-life balance and the occupational health andsafety of employees have become increasingly
relevant. The respondents' main reason for thiswas the challenges posed by dealing with
the COVID-19 pandemic.

Responsibility
at ZEISS

e
Int o
C

e
Int o
C

In fiscal year 2019/20, the importance of the
topics was verified in order to take the impact of
current development on the topics' materiality intocon­sideration. All relevant departments and theappointed representatives of the segments evaluated the current relevance of the material topics thatwere identified in the previous year. Respondents
were able to add topics that were missing.

nment
viro
En

welt
Um

e Issues
Material Sustainability(GRI 102-43, 102-44, 102-46)
All topics that are very important
for the different
Verantwortungstakeholder groups of the ZEISSGroup
bei ZEISS and whose
own business activities have a significant economic,
social and environmentalforg impact are materialtm rit ä taf ghc
ZEISS and are includedplin
thisSustainability
Report.
un
ll s
ia n n d
G ese ales Ecezi
In fiscal year 2018/19, a comprehensive
und so materiality
analysis was conducted. Information on thedetailed procedure is available in the 2018/19
Sustainability Report.

Produkteu
Wertschöpfun nd
gsk
et
t

2
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3
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4
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Employees

Mitarbeitergm rit yp li a n
an d
ce

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1
Integrity andComplianceS o cia

l En

ga

g

Integrity and Compliance» Business ethics, pp. 28-31» Legal compliance, pp. 28-31» Data Protection, p. 30-31

Results of the Materiality Analysis
Products and Value Chain» Product safety, pp. 33-35» Human rights in the supply chain, pp. 39-40» Procurement and supplier management,
pp. 36-38» Sustainable product development,
pp. 33-35

Environment» Efficient use of natural resources,
pp. 52-55» Climate protection, pp. 56-59» Environmental compliance, p. 60-61» Closed-loop waste management,
pp. 52-55 and pp. 33 et seq.

Employees» Occupational Health and Safety, pp. 48-50» Work-life balance , pp. 47» Employee development, training and further
education, pp. 44-45» L abor/management relations, pp. 42-43» Diversity, pp. 46-47

Social Engagement» Regional involvement, pp. 63-64» Promotion of scientific research andeducation, pp. 62 et seq.
» Healthcare promotion, pp. 62 et seq.

Results of the Materiality Analysis(GRI 102-49)
The material topics identified in fiscal year 2018/19 remained
the same for fiscal year 2019/20.

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Sustainability at ZEISS – Progress of the Activity Fields
Integrity and Compliance (GRI 102-47)
Material issues

Targets»»Legal compliance»»Business ethics»»Data protection»»Compliance with applicable law»»Increased value orientation and behaving with integrity inaccordance with the ZEISS Group Code of Conduct»»Protection of the ZEISS brandStatusSelected Measures in FY 2019/20»»Continuing the ZEISS Integrity Line for reporting open or anonymous information about possible compliance violations»»Revising the e-training on compliance»»Revising the ZEISS Code of Conduct»»Creating and communicating guidelines for dealing with customer incidents
correctly»»Regular compliance training for all employees

Products and Value Chain (GRI 102-47)
Material issues

Targets»»Product safety»»Sustainable product development»»Procurement and suppliermanagement»»Human rights in the supply
chain»»Improved sustainability performance of ZEISS products
and services»»Further development of logistics and shipping processes
to integrate sustainability aspects»»Raising supplier awareness of the ZEISS sustainability
requirements»»Expanding the use of the mandatory supplier portal

StatusSelected Measures in FY 2019/20»»Continuation of the cross-divisional team of specialists to focus on sustainableproduct and process development with the aim of integrating sustainability
aspects into development processes»»Increased use of marine and rail transport as compared to air freight»»Integrating industry risks, including human rights risks, into the supplier risk
analysis»»Carrying out the risk analysis for the 510 main suppliers»»Compiling an annual report to evaluate the supply chain as concerns the originof conflict minerals based on the Responsible Minerals Initiative standard»»Carrying out around 50 global supplier quality audits, considering occupational
health and safety and environmental aspects

On track
Target reached19

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Employees (GRI 102-47)
Material issues

Targets»»Labor/management
relations»»Employee development,
training and continuing
education»»Diversity»»Work-life balance»»Occupational healthand safety»»Further strengthening and expanding the relationshipbetween the company and its employees»»Acquiring new employees and ongoing employee
development»»Reinforcing collaboration and promoting diversity inthe company»»Encouraging a positive work-life balance»»Standardizing and ongoing improvement of internal
processes for occupational health and safety to reduce
accident frequency and severity»»Reducing the number of workplace accidents(KPI LTIFR) to below 2.25 by the end of 2023»»Rollout of an integrated software solution for theoccupational health and safety management system
in Germany by fiscal year 2020/21»»Worldwide rollout of the software solution for
global accident reporting by fiscal year 2020/21

StatusSelected Measures in FY 2019/20»»Carrying out the global Pulse Check for determining employee satisfaction
and initiating follow-up measures»»Launching a professional training or cooperative education program at ZEISSin Germany for 126 young people»»Mentoring program for women at Aalen University, Ernst Abbe University
in Jena and the University of Jena»»Continuing the cooperation network for international employees and theirfamily members»»Conferring of the Women‘s Award for outstanding students of IT,
business information systems and media information systems»»Expanding the flexible working hours and workplace models»»Expanding the collaboration network for childcare and caring for family
members at all sites in Germany»»Establishing an organizational structure and hygiene concept for ensuring
health protection during the COVID-19 pandemic»»Conducting 38 fire safety inspections and 82 occupational safety inspectionsin Germany»»Teaching more than 730 managers and occupational healthand safety officers how to use the software solution

On track
Target reached20

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Environment (GRI 102-47)

1

Material issues

Targets»»Efficient use
of natural resources»»Closed-loop waste
management»»Environmental protection»»Environmental compliance»»Using all natural resources sparingly, to protect
the environment»»40 percent reduction in water consumption1
by fiscal year 2019/20»»30 percent reduction in waste accumulation1
by fiscal year 2019/20»»50 percent reduction in energy use1 by fiscal year 2019/20»»50 percent reduction in CO2 emissions (Scope 1 and 2)1
by fiscal year 2019/20»»Switching to a carbon-neutral energy supply at the main
German production sites by fiscal year 2019/20»»Switching to a carbon-neutral energy supply at themain international sites by 2022»»Standardizing energy and emission data collectionin Europe by fiscal year 2021/2022»»Worldwide rollout of the energy data platformby fiscal year 2021/22

Reduction targets until fiscal year 2019/20 relative

to the company's value added (base year: FY 2009/10)

StatusSelected Measures in FY 2019/20»»Continuing several projects, initiatives and measures for conserving energy
and resources at ZEISS sites»»Continuing the company suggestion scheme for measures to saveresources at eight sites»»Revising the travel guidelines to support sustainable mobility»»Offsetting carbon emissions resulting from air travel and the use ofnatural gas»»Implementing a platform solution for collecting energy and emission
data worldwide»»Participation in CDP climate reporting»»Independent EH&S audits at major production facilities to review legal
compliance status

On track
Target reached21Company Profile
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Social Engagement (GRI 102-47)
Material issues

Targets»»Promotion of scientificresearch and education»»Regional involvement»»Commitment to health»»Promotion of scientific knowledge from preschool children
to doctoral students»»Improved quality of life for patients through solutions andnew standards in optometry and medical technology

StatusSelected Measures in FY 2019/20»»Sponsoring over 100 projects with almost one million euros from theZEISS Promotion Fund»»Opening the ZEISS Innovation Hub @ KIT on the campus of the Karlsruhe
Institute of Technology (KIT)»»Sociopolitical commitment at multiple schools throughout Germany tosupport the 16+ MINT initiative»»Maintaining existing programs to refurbish ZEISS products and donate themto disadvantaged regions without sufficient access to medical care»»Funding six ophthalmology training centers in Indonesia, Paraguay, Nigeria,
Sudan, Tanzania, India and Uganda»»Developing solutions for protecting medical personnel who are treating
COVID-19 patients

On track
Target reached22

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and Business Model

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3
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5SocialEngagement

How ZEISS Contributes to the Global Sustainable Development Goals
In the fall of 2015, the United Nations adopted globally applicable Sustainable Development
Goals (SDGs) to be achieved by 2030. To ensurethat the goals are achieved in the next ten years,
the private sector is also called upon to do its
part to ensure fair development worldwide thatcreates prosperity within the limits of what theplanet can sustain. ZEISS has pledged its support
for this agenda and wants to assist with its implementation.
ZEISS is aware that all sustainability goals are important andrequire support. In order to focus on the areas in which ZEISS
as a company is capable of having a particularly big impact, in
fiscal year 2018/19 an analysis of the 17 primary goals and 169
sub-goals was conducted. It is still valid for ZEISS today. In it, six
goals were identified where ZEISS can have the greatest impact
on people, the environment and society through its businessprocesses, product portfolio and services.
SDG 3 – Health and well-being
SDG 4 – Quality education
SDG 8 – Decent work and economic growth
SDG 9 – Industry, innovation and infrastructure
SDG 12 – Responsible consumption and production
SDG 13 – Climate protection measures

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4
Environment

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Quality education: Ensure inclusive and equitable quality education and promote lifelong
learning opportunities for all.

Health and well-being: Ensure healthy lives
for all people of all ages and promote theirwell-being.

Focus: Globally, 36 million people are blind and 217
million suffer from a visual impairment – 89 percent ofblind people live in developing countries.
ZEISS is raising the bar in healthcare with its solutions for ophthalmology and medical technology, and helps to drive medical
progress in ophthalmology and microsurgery with its products.
Its mission is to help improve the lives of patients everywhere.
ZEISS is determined to do its part for society in the fight against
preventable blindness and since 2005, has equipped six diagnosis, treatment and training centers with devices for eye care. Inline with the principle of “Helping people help themselves” thetraining centers aim to provide access to state-of-the-art medical
technology in developing and emerging countries. This creates
the necessary scope for teaching people how to use state-ofthe-art medical technology and use it for treatment purposes.
The centers are located in Nigeria, Indonesia, Tanzania, Paraguay, India and Sudan.

3
Employees

Focus: Over 50 percent of the world's population does
not have sufficient access to basic healthcare services.
The company makes in-kind donations in the form of ZEISS
products through a variety of different projects in order to give
people around the globe access to high-quality medical care.
ZEISS also uses its ZEISS VISUHEALTH platform to further its
mission. The platform addresses the challenges of rising patientnumbers in underserved regions. For instance, it links threeophthalmic centers in major cities in India to some 60 mobile
screening stations spread throughout the country. Patients canvisit a screening station to have photos taken of their retina,
which are then uploaded to the platform and examined by anophthalmologist at one of the major eye clinics. This gives patients living in remote regions access to professional eye examinations.

Focus: Germany needs more than 150,000 new science,technology, engineering and mathematics (STEM)
specialists.
ZEISS supports numerous educational programs to encourage
up-and-coming young scientists – from preschool children to
PhD students. In this way, ZEISS acts on the responsibilities set
forth in its foundation statutes, shares educational content
in an easily understandable way, and makes science easier tocomprehend. Examples include the company's involvement inschools and its microscope donations to various educational
initiatives and support for Germany's regional "Jugend forscht"
contest for young, talented achievers in the STEM fields.
In order to encourage young people to pursue a career inscience and research and get them thinking about the idea,
ZEISS has sponsored Jugend forscht, Germany's oldest andbest-known competition for young researchers, for 20 years.
And ZEISS offers young people a host of opportunities to enter the field at its sites in Germany. Its program encompasses
many different professions, as well as the option of pursuinga cooperative education degree. Further, both young talents
and seasoned professionals around the world have access toa wide range of continuing education programs through the
ZEISS CurioZ digital learning platform, which was expanded(see page 44-45).

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Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

Decent work and economic growth:
Promote sustained, inclusive and sustainableeconomic growth, full and productive employment and decent work for all.

Industry, Innovation and Infrastructure:
Creating a resilient infrastructure, promoting
broad-spectrum and sustainable industrialization and supporting innovation.

Focus: 190 million people worldwide are unemployed.
As a global technology company, ZEISS employs more than
32,000 people. They are offered a safe and motivating work environment, where hard work and dedication are acknowledged
and individual advancement is possible. A global survey of employees conducted on a regular basis identifies the state of thecorporate culture at ZEISS (see page 43).

Focus: Investments in scientific research and innovation in developing countries are well under the global
average.
ZEISS invests in upgrading its sites worldwide and supports
the company's development and innovative power by making
above-average investments in research and development. At
13 percent of revenue, research and development investment
has increased as compared to the previous year, testifying to
the ZEISS Group's continued strong focus on innovation. As
a result, ZEISS is able to offer its diverse customers the rightsolutions from its broad portfolio of products. They include
intelligent quality control systems for networked production,or the world's only semiconductor exposure systems. ZEISS lithography optics lay the foundation for progress in advancing
global digitalization and with it, the basis for modern infrastructures and communication and production structures. Revolutionary extreme ultraviolet (EUV) technology, for example,
enables microchips to steadily improve their performance andenergy efficiency. That protects the environment: chip manufacturers report 50 percent energy savings with EUV technol-

Focus: In more than 50 countries worldwide, humanrights are either under siege or egregiously violated.
When working with suppliers, ZEISS has pursued a centralized
approach for integrating sustainability aspects into the supply
chain since 2016. The approach focuses on compliance withenvironmental and social standards at suppliers' sites. To monitor this, demand-driven assessments and audits are conductedbased on risk. As a leading global technology enterprise, theZEISS Group is conscious of its responsibility to uphold humanrights. ZEISS is successively driving the implementation of the fivecore elements of the German government's National Action Planfor Business and Human Rights (NAP) (see page 39-40).

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ogy as compared to the current technology. In 2018, a crossdivisional team of specialists for sustainable product and processdevelopment set itself the goal of integrating sustainability
aspects into the development and improvement of products andproduction processes. The topics include aspects of closedloop waste management, eco design, alternative materials andways of increasing energy and resource efficiency in terms ofglobal value added and the related risks.

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Strategy andSustainability

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Products andValue Chain

Responsible consumption and production:
Ensuring sustainable consumption and production patterns.

Climate protection measures:
Implementing measures now to combat climatechange and its impact.

Focus: Humanity would require 1.6 Earths to sustain
the current global consumption of resources.
ZEISS continues to work on finding ways to use natural resources as efficiently as possible and prevent pollution. This is
made possible in part through investment in measures to boost
energy efficiency, consistently reduce waste and integrate environmental aspects into product development. 3D printing
technology, which ZEISS continuously expands, is one example
of a sustainable production process. The process is primarily used
to manufacture the tools required in production processes. The
new printed tools are made of artificial resin and have largely
replaced machined tools made of aluminum. The new process
avoids negative effects associated with aluminum production
such as very high energy consumption and limited recycling
ability (see page 34). In addition, refurbishment programs are inplace for several product groups, including electron microscopes
and measuring machines. Older, pre-owned products are completely overhauled in accordance with certified ZEISS standards,
equipped with new technology, and made available to customers again (see page 35).

Focus: The measures already taken by policy-makers andcompanies around the world have achieved just onethird of the emissions reductions needed.
SDG 13 calls upon states and governments to include effective measures for combating climate change in national policy. However, effective climate protection can only be achieved
through a concerted effort and if companies support it too.
ZEISS therefore believes it has a responsibility and makes a contribution to the global target set in the Paris Agreement of limiting global warming to less than 2°C. ZEISS has derived someambitious measures to help achieve these targets. In March
2018, specific targets were agreed with the Executive Board of
the ZEISS Group to reduce CO2 emissions by 50 percent by fiscal
year 2019/20. The target was achieved in the reporting period.

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As a further measure, the travel guidelines were revised witha special focus on climate protection, standardized in a global version, and rolled out. As of fiscal year 2019/20, where
possible, business trips are to be made using climate-conserving means of transportation. For the first time, ZEISS compensated for greenhouse gas emissions from unavoidable plane
trips and natural gas procurement in Germany in fiscal year
2019/20. With selected carbon offset projects, ZEISS is supporting the construction of biogas and water treatment plants
in Cambodia and Nepal, for example. In this way, emissions canbe lowered and the quality of life of the people in the region
improved.

ZEISS aims to have a 100 percent climate-neutral energy
supply by 2022. It has therefore switched to green power froma verified source and offsets its unavoidable emissions. Thiswas implemented at all ZEISS sites in Germany during thereporting period. To do so, 170,000 megawatt hours of green
power that meets rigorous quality criteria are procured fromrenewable energy sources.

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BACK TOCONTENTS01

INTEGRITY ANDCOMPLIANCE

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ComplianceBusiness activities in line with statutory
regulations and internal rules are an integral
part of the ZEISS corporate culture. The company's aspiration to act with integrity stems
from the values that were shaped by thehistory of the foundation-owned company
ZEISS.

IT solutions
and training

nd

1.
Pr

2. D
et

t
ec

t
en
ev

Early detectionof misconduct

esCoCore processesof the compliancemanagement system

po

4.
r re

Organizational
and procedural
improvements

ct

3.

R

Appropriate reaction
to individual casesof misconduct

For ZEISS, legality and the proper treatment of business
partners and employees are indispensable elements of successful business activity. This requires an open and respectful
corporate culture which, alongside an effective compliancemanagement system, ensures that any deficiencies at ZEISS
are detected, identified and corrected.
Compliance with all laws and regulations forms the basis forsustainable corporate governance. The management level's
behavior must set an example and it must be firmly embeddedin the corporate culture.
Guidelines, structures and processes
At ZEISS, the foundation for compliance management is theCode of Conduct, which was first published in 2007 and last
updated in July 2020. It describes the risks inherent in businessactivities and provides specific recommendations on how tobehave. As the basis for entrepreneurial activity, the Code of
Conduct is mandatory for all employees and managers of theZEISS Group worldwide. It contains rules on various issues,
including data protection, product safety, environmental pro­tection and combating corruption. More detailed company
directives are available for all the topics addressed in the Codeof Conduct.
At ZEISS, compliance is organized on three different levels.
On the Group level, there is the chief compliance officer who
reports to the Executive Board, and the Head of Corporate
Compliance, who is responsible for the compliance management system. This area of responsibility encompasses thedesign of the compliance management system and assists
with the identification and rectification of significant compli-

ance violations that might jeopardize the reputation of theentire ZEISS Group. Each strategic business unit has also
appointed its own Group compliance officer, who coordinatescompliance activities for a particular unit and its companies.
In addition, each individual company has its own local com­pliance officer who is the on-site contact for employees andmanagement for all compliance-related matters and canresolve any local compliance violations.
Ensuring that all ZEISS business activities conform with theprevailing rules is the collective responsibility of the Executive
Board and the heads of the ZEISS companies. This includes
observing data protection, customs and export provisions,laws pertaining to the environment as well as regulations on
occupational and product safety, and combating corruption.
Moreover, the periodic inquiry into compliance risks - e.g.
due to conflicts of interest, export control law, data protection
and corruption - at all ZEISS companies is an important partof Group-wide risk management. Regular internal audits andassessments, and an annual external audit, are conducted todetermine if all legal requirements are being met.
A compliance management system has been established
for all units in the ZEISS Group. It enables the systematicmanagement of all compliance measures and contains thefollowing modules.

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Leadership:
The management sets an example for the culture ofcompliance
Shared Commitment /Communication:
Managers and other internal stakeholders affirm the great
relevance of compliance through their behavior andcommunication

Strategy andSustainability

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The core processes in the compliance management system are:
1. Prevent
A clearly structured framework of policies and mandatory
training courses for all employees and compliance officers raiseawareness and prevent incidents.

Policies and Procedures:
Guidelines and processes that give structure to dealing withcompliance risks

2. Detect
Despite all preventive measures, violations of the law and casesof noncompliance can still occur within the company. To identify such cases, employees are called on to actively cooperateand should report any suspected violations. Different departments and experts, such as Corporate Security and Internal
Auditing, also support investigations of suspected complianceviolations. Depending on the case, the company can also rely
on external support.

Organization:
The module encompasses the provision of an effective
compliance organization

3. R espond
The company will take appropriate measures to immediately
remedy unlawful behavior.

Training:
Providing regular, suitable training for employees andcompliance officers

4. Correct
Depending on the type of misconduct, systemic or procedural measures may be necessary to prevent recurrence.

Oversight and Controls:
Monitoring and reaction processes have been defined forviolations of laws or regulations

Internal and external stakeholders alike have the opportunity
to use the ZEISS Integrity Line whistleblower system openly oranonymously to report any indicators on possible complianceviolations. The ZEISS Integrity Line is available in 22 languages
and can be found on the website at www.zeiss.com/responsibility/compliance and on the ZEISS intranet.

Risk Assessment:
Compliance risks are systematically evaluated and minimized
using established procedures

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Objectives and results
ZEISS' primary aim in terms of compliance is to act in line withstatutory regulations and internal rules. Compliance violations
not only endanger the company's reputation, but can also
involve consequences under criminal law or sales slumps. As aresult, every two years all employees - including the Executive
Board members - must complete a basic compliance training
course and pass a final test. The training program covers the
topics found in the ZEISS Code of Conduct. Employees who
work in areas where they are exposed to specific compliancerisks, such as in Purchasing, Sales and Marketing, and managers
as well, must complete additional training modules on topics
related to anti-corruption and fair competition. The majority of
ZEISS employees have access to online compliance training via
the ZEISS CurioZ internal learning platform. Training is currently
available in 13 languages. The learning management systemenables courses to be assigned to specific employees and thecentralized tracking of how many people have completed thecourses. Employees who could not access the online training
courses in fiscal year 2019/20 received in-person training.
However, ZEISS is still trying to find ways to enable such employees to access the ZEISS learning platform.
In fiscal year 2019/20, the Code of Conduct as the key
document for compliance management was revised andsupplemented. A policy on the proper way to deal with ZEISS
customer events was also compiled and communicated. A revision of the basic compliance training course and of the courses
on “Fair competition” and “Anti-corruption” is planned for the
next fiscal year.

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Strategy andSustainability

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Products andValue Chain

3
Employees

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Environment

5SocialEngagement

Anti-Corruption

Political Influence

Data ProtectionZEISS is successful in competitive markets because its products
and services offer customers excellent value for money. Since
it is aware that corruption impedes progress and innovation,
the company has issued clear rules to prevent and battle
corruption. The anti-corruption rules are a vital part of com­pliance management as described above.

Policy-makers create the framework for business activities.
Associations and interest groups help negotiate standards andcommon development goals. This is why ZEISS is a member ofacademic, industry, and employer associations. ZEISS explicitly
affirms the independence and integrity of parliaments, parties,
and governments as the cornerstones of basic democraticorder and, in the company's communication work, repeatedly
makes it clear that a free, democratic regulatory framework
is necessary for successful business activities in a globalized
world.

ZEISS is aware of how important it is to protect personal data
privacy in order to ensure an ethical, future-oriented businessmodel. The Group wants to do business in compliance withinternational guidelines and national law to remain a trustworthy partner for its customers, suppliers, business partners
and consumers.

To raise employee awareness of the topic, ZEISS has compiled
internal company policies on granting and receiving benefits
such as gifts or invitations. The guidelines are an importantcomponent of the "Anti-corruption" training module. A
checklist for employees provides specific examples to help
them assess whether or not particular benefits are permitted.
Moreover, there are also binding policies for auditing dis­tri­­bution partners. They are supported by a screening toolfrom an external provider. The goal is to determine whether
distribution partners have ever been suspected of corruption
or involvement in a cartel, export control, money launderingor similar crimes, or exhibit any other risk factors that could
damage ZEISS' reputation.

The ZEISS Group does not make financial donations or othercontributions to parties or political institutions because theCarl Zeiss Foundation statutes stipulate that all support must
be based on political and religious neutrality.

An increasing number of ZEISS segments handle highly sensitive
personal data such as health data, and evidence of dependable and appropriate data privacy practices are a requirement
for business relationships built on trust. Violations not only
damage a company's reputation, but can also incur heftyfines.
Guidelines, structures and processes
National and international regulations create a framework fordata protection and the ZEISS Group observes the data privacy
standards of the European Union in all markets in which it
operates. They are supplemented by an internal guideline forhandling personal data, which is binding worldwide. From anorganizational standpoint, data protection matters are handled
as a standalone division of Corporate Legal & Patents. The corporate data protection officer works with a five-person team
to define principles and rules governing the protection of
personal data privacy, supports and provides advice for theirimplementation, monitors compliance and reports to the Chief
Financial Officer.
Executive Board members and/or the heads of ZEISS companies
and the heads of business units are responsible for implementation and compliance. To support their efforts, Corporate
Data Protection operates a data privacy management system.

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Each individual company has a data privacy coordinator who
is responsible for training measures, acts as the local point ofcontact for all questions from employees and management
and remains in contact with the corporate data protection
officer.
Measures and results
ZEISS emphasizes the importance of a uniform level of dataprotection worldwide. Alongside the steeply rising challenges
posed by product digitalization, increasing global regulation
drives the further development of data protection processes
at ZEISS. The focus here is on extended rules and regulations
such as Trusted Information Security Assessment Exchange(TISAX) and the NIST Privacy Framework, national laws suchas those in Australia and Taiwan, and court decisions – inthe context of the validity of the EU-US Privacy Shield, forexample. On this basis, the data privacy protection processes
at ZEISS were further improved during the reporting period
and additional international requirements were integrated into
the existing SOPs for data protection. For example, toll-free
telephone hotlines were created as simplified access options
for data privacy complaints in California (USA) and standard
contract clauses regarding data transfer to "third countries"(USA, China, Russia, Mexico, etc.) were supplemented byancillary guarantees.
During the reporting period, 150 inquiries and complaints
regarding the guaranteed rights of the persons affected, suchas data deletion, retransfer, disagreement and correction,
were answered.

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02

PRODUCTS AND
VALUE CHAIN

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Product Safety and Product Development
With its solutions, ZEISS constantly advances
the world of optics and helps shape technological progress. Alongside high quality andproduct safety, ZEISS considers the responsible
shaping of the value chain an integral part ofits business.
ZEISS offers a wide variety of highly specialized productsthat are as diverse as its different customer groups andtheir particular requirements – from hospitals, medical
practices and eye care professionals to research laboratories,
technology companies, car manufacturers and consumers.
But for all of them, the name ZEISS is a promise of quality,
innovation, safety, reliability and responsibility – and for many,ZEISS also stands for better health and an improved quality oflife.

ZEISS products and solutions contribute to medical progressin ophthalmology and neuro/ENT surgery and support
physicians on every continent in the effort to improve theirpatients' quality of life. Eyeglass lenses from ZEISS help people
around the world enjoy better vision. And intelligent measuring systems from ZEISS increase efficiency and assure quality ina wide range of sectors, including the automotive and aerospace industries. For example, ZEISS provides comprehensive
measuring and testing solutions for e-mobility, from batteries
and power electronics to electric motors and transmissions.
For instance, state-of-the-art coordinate technology is used toinspect the fit accuracy of powertrain components in vehicles
to ensure low fuel consumption. In the aviation and windenergy industries, ZEISS measuring machines help increase theefficiency of wind turbines and aircraft engines.
At ZEISS, product safety begins in the development stage,accompanies the procurement and production process andremains an important aspect even later, when the product isbeing operated by the customer, or serviced. Digital product security and the applications related to them, secure
networking of products and the interdisciplinary topic ofSmart Production are playing an increasingly significant role.
However, at ZEISS product responsibility means more thanmaking products that are innovative, effective, and safe. It
also includes the responsible design of the value chain - fromthe raw material supplier to product recycling.

Guidelines and structures
ZEISS requires all applicable laws and standards governing
product safety to be consistently implemented - from customer-compatible design and reliable application to proper
recycling and disposal. After all, defective products may harmusers and can also damage the company's reputation. In
an effort to satisfy both legal requirements and customers'
product quality and safety needs, all ZEISS units use a quality
management system based on the requirements of the international standard ISO 9001. The systems and processes
at multiple sites have been certified by authorized external
and internal testing facilities. To meet the specific requirements regarding medical devices, various sites of theZEISS segments Medical Technology, Consumer Markets andIndustrial Quality & Research have implemented a quality
management system in accordance with ISO 13485. It is verified as part of an independent, external certification process.
And as part of a comprehensive risk assessment during productdevelopment and production, ZEISS ensures that, prior to a
product launch, all necessary measures have been taken toguarantee that customers and third parties can use the productsafely. Operating instructions, training sessions, security features
for digital products, as well as different kinds of support andopportunities for dialogue, help users operate ZEISS devices
safely. A set of guidelines applicable across all ZEISS units enables employees to deal with customer issues and complaints
in a structured way. In such cases, appropriate measures must
be implemented and monitored. ZEISS is thus able to implement potential improvements and, if necessary, quickly takecorrective measures.

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Responsibility for product safety and its importance for thecompany's success are enshrined in the ZEISS Group's Codeof Conduct. All the country-specific laws and directives
applicable for ZEISS' primary markets form the basis for
product development, design and sales – in accordance withthe applicable standards. Individual experts are involved intheir ongoing development through European and inter­national committees and standardization bodies, thereby
bringing fresh ideas to product development at ZEISS. The
trend toward digitalization, including the aspect of smart production, is also reflected in process standardization. Accordingly, a program consisting of a range of security measures,such as actively integrating the Security by Design and Privacy
by Design principles, aims to provide information security
throughout the product life cycle and, in particular, in the
production development process.
Within the ZEISS Group, specifications and monitoring ensurecompliance with laws, standards and guidelines. Responsibility
for product safety lies with the Executive Board or the headsof the individual companies, as well as with the employees
in charge of a particular product. They must provide the structures, resources and necessary skills for properly meeting all
legal and internal ZEISS requirements.
The key elements of ensuring product safety are:
» Observing product safety requirements during all stagesof the product life cycle» Using customer feedback as the basis for productimprovement

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain» Performing ongoing market surveillance for selected
product groups to ensure that products meet the highest
safety requirements» Independent organizations inspecting selected products toensure product safety
Processes
The Product and Solution Generation process is of fundamental importance. This guideline is binding for all ZEISS units. It
defines the minimum requirements for a modern development
process at the ZEISS Group and specifies mandatory minimum
content. A checklist outlines the mandatory minimum content.
The goal of this systematic focus on the development process
is to give customers the right products and solutions withrespect to customer expectations, customer benefit, quality,
reliability, time and costs, thereby achieving a significant
competitive edge. ZEISS products are only launched if therequirements defined for the development process weretaken into consideration.
The approvals required in order to sell several products are
obtained in accordance with the regulations. Relevant products
are certified by independent testing centers to ensure a highsafety standard. Certified products can be viewed on publicly
accessible databases like that of the CSA Group, an inter­national certification body.
In addition, ZEISS continuously strives to reduce the environ­mental impact of the product life cycle and therefore includes
fields of research from Circular Economy in its innovation management. ZEISS' goal is to extend the service

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Tools from 3D Printers
The ZEISS Consumer Products strategic business unit
has been using 3D printing since 2018 and continuously
expands its use. The process is primarily used to manufacture the tools required in production processes. The
new printed tools made of artificial resin have largely
replaced machined tools made of aluminum. The
new process avoids negative effects associated withaluminum production such as very a high demand ofenergy and limited recycling ability due to the use ofnumerous different alloys. At the same time, 3D printersconsume much less energy than cutting machines. In
terms of energy balance, the process impresses on
account of both the material used and its processing.
Alongside improved sustainability performance, thenew process has paid off, with ZEISS having achieved
annual savings in the 6-figure range.

life of its products through the respective service, repair, andrefurbishment programs. Thus, the mandatory checklists
contain two related categories that must be taken into accountduring development: the environmental performance of the
products and the evaluation of different sustainability requirements throughout the entire product life cycle. Based on thecom­pany's environmental principles, this approach to productintegrated environmental protection constitutes an obligation
to adhere to strict process management. This is how thecompany ensures that all ZEISS products meet the applicable

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and Business Modelenvironmental regulations and guidelines (see the chapter on
the environment, page 60). In particular, ZEISS ensures that:» The raw materials used are harmless to human health andthe environment» Manufacturing and using the products generate as few
effluents and emissions and as little waste as possible
Objectives and results
ZEISS set itself the goal of providing innovative solutions
that focus on customer needs, make technologies more
efficient, and increase quality of life. ZEISS aspires to always
manufacture safe and reliable products of high quality. A totalof 580 new patent applications during the reporting period
underscore the company's enormous capacity for innovation.
To ensure the safety and quality of its products, the ZEISSGroup relies on an effective management system that has
been certified accordingly at numerous sites. At the end of
fiscal year 2019/20 as in the previous year, a total of around100 business units had been certified in accordance with
ISO 9001 and 16 business units in accordance with ISO 13485.
In the current fiscal year, monitoring audits were conductedin line with requirements at all sites certified to ISO 13485
to ensure ongoing improvement. This serves to uphold aquality management system according to ISO 13485.

Strategy andSustainability

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are guaranteed for a period of five years. Since the program
was launched in 2015/16, around 125 electron microscopes
and 210 light microscopes have been refurbished, including
15 electron microscopes and 70 light microscopes in thereporting year. In addition to economic advantages for ourcustomers, the program reduces a system's ecological footprint because the raw materials used to produce it and thenecessary energy are spread out over a longer service life.

Resource Efficiency in Additive Manufacturing
Additive manufacturing – commonly known as 3D printing– is making serious headway in the manufacturing industry.
It makes significant opportunities available to ZEISS and
its customers in terms of in-house production and theconservation of resources. ZEISS 3D ManuFACT enables
the integrated quality control of additive manufacturing
and even encompasses "powder qualification." Powder isthe basic material of additive manufacturing. If its quality isinadequate or it is distributed unevenly during the printing
process, it may create hollows or result in material impurities. Quality checks before and during the 3D printing
process can prevent such defects, reduce the powder rejectrate and optimize the amount of powder used.

ZEISS continued pursuing its program for refurbishing microscopes in the reporting period. This involve pre-owned
systems being updated and then sold at a discounted price.
Customers receive a one-year warranty, and replacement parts

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Procurement and Supplier Management
Due to the significant amount of value created in the supply
chain, the procurement process is critical to ZEISS' long-term
success. Local purchasing organizations around the globe
source both production and non-production materials fromlocal and international suppliers. ZEISS business units generated around 50 percent of total purchasing volume with 510
suppliers who are the focus of a risk-based approach and arelocated in the following regions: 80 percent in EMEA (Europe,
Middle East, Africa), five percent in APAC (Asia/Pacific), and 15
percent in the Americas.
Guidelines and structures
The company works very closely with its global network ofsuppliers to reduce the negative effects of its business operations. To do this, ZEISS takes a risk-based approach to thesystematic management of suppliers with regard to sustainability. Environmental and social aspects play an increasingly
important role in the selection of and collaboration with
suppliers. In complex supply chains, environmental pollution,
inadequate occupational health and safety standards, humanrights violations and child or forced labor all represent potential risks that ZEISS wants to proactively address. Respect forhuman rights is becoming a particular focus due to increased
regulation, such as through the German National Action Plan
(NAP) for Business and Human Rights (see page 39-40). ZEISS
categorically rejects all forms of forced and child labor andactively works to ensure that environmental and social standards are met at its sites and along its supply chain.
The Supplier Sustainability team, which operates on the Grouplevel, pools different activities for integrating sustainability into
supply chain management, drives further development andsupports their implementation in all ZEISS business units. The

Supply Chain Expert Panel supervises the company's efforts
to integrate sustainability aspects into the supply chain.
The panel is composed of representatives from supplier management in the different strategic business units. The committee of heads of purchasing meets regularly to discuss approaches and progress. A working group with representa­tives
from the Supplier Sustainability team, the central Sustainability
team and local compliance officers develops mechanisms for
upholding human rights.
ZEISS suppliers must adhere to the provisions listed in theinternationally recognized Code of Conduct from the Responsible Business Alliance (RBA), which are minimum standards
for human rights, health and safety, environmental protection
and business ethics. The RBA Code of Conduct is based on
the UN Guiding Principles on Business and Human Rights andon international human rights standards such as those issued
by the International Labour Organization (ILO). ZEISS expects
all suppliers who have a direct business relationship with thecompany to meet the minimum standards in the Code of Conduct. Key strategic suppliers, who make up around 50 percentof the external purchasing volume, must recognize the RBA oran equivalent code of conduct, adhere to it and inform theirsub-suppliers of the standards. Supplier audits are conducted
on a risk-based approach to monitor compliance with the Codeof Conduct. ZEISS never enters into business relationships if
there is evidence of human rights violations.
Internal and external stakeholders can use the ZEISS Integrity
Line whistleblower system on the company's website toanonymously report any human rights violations within the
ZEISS supply chain (also see the chapter on Integrity andCompliance).

Processes
Within the scope of the risk-based approach at ZEISS, relevant
sustainability issues are also part of the supplier management
process.
» New suppliers are selected on the basis of a self-assessment
questionnaire that includes questions related to occupational safety, environmental protection, energy efficiency andthe acceptance of the RBA Code of Conduct or a similar
code. In addition, observing the RBA requirements also constitutes a key part of contractual agreements. Informationexchanges and agreements pertaining to services, quality
and various sustainability aspects are supported by the supplier portal that went live in fiscal year 2018/19.
» Suppliers who share in the value created by ZEISS to asigni­ficant extent must undergo an on-site supplier audit by
ZEISS Purchasing that includes a supplementary risk assessment. The goals are to become more familiar with existing
and future partners and to identify and eliminate weak
points in the supply chain.
» Major suppliers undergo an annual evaluation usinga software tool that includes occupational safety, environmental protection and energy management criteria. The
results are discussed with the suppliers in order to define
any necessary enhancement measures. Aspects such as occupational safety, fire prevention and environmental management have been a part of cross-divisional supplier quality
audits since 2012.
» In accordance with the established risk indices and theannual purchasing volume, major strategic suppliers are

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and Business Modelassessed to determine if there are any potential sustainability
risks depending on the context. The risk assessment is basedon the established Corruption Perceptions Index, Human
Development Index and Environmental Performance Index. In
the reporting period, it was expanded to include the industry
risks determined and evaluated as part of a study carried out
by ZEISS. In order to plan further activities, a list of priorities will be compiled in consultation with the ZEISS units
and action plans discussed. This makes it possible to define
next steps such as completing on-site sustainability audits atparticularly high-risk suppliers. In preparation for an on-sitesustainability audit, suppliers are asked to complete a Sustainability Supplier Self-Assessment Questionnaire to assess theirown sustainability performance.
If the results indicate inadequate compliance with ZEISS'
sustainability requirements, a corrective action plan will becompiled and ZEISS will verify and monitor its implementation.
Within the scope of its due diligence obligations, ZEISS has
also established a process for identifying and assessing risks inthe supply chain with regard to dealing with conflict minerals. Conflict minerals are mined in conflict or high-risk areas,
sometimes under illegal, inhumane conditions. ZEISS does
not directly purchase metals such tantalum, tungsten, tin orgold, but does demand that its direct suppliers do not use anyores from conflict areas. To support this effort, ZEISS collects
risk-based information. As part of its annual reporting, thecompany relies on the globally recognized standards of the
Responsible Minerals Initiative (formerly the Conflict-Free
Sourcing Initiative) in its communication with relevant suppliers. ZEISS uses the available means and information to verify

Strategy andSustainability

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Products andValue Chain

Remote Audits
ZEISS gained positive experience with remote audits in
the reporting year – as both an audited company andauditor. Remote audits to check quality management werecarried out with the help of a ZEISS software solution on
suppliers with whom ZEISS has a working relationship.
Since travel was prohibited, it was possible to save timeand costs. Savings on carbon emissions related to businesstravel was another positive side effect. Encouraged by
the positive experience, ZEISS plans to expand its remote
audits and continue using them when the COVID-19
pandemic is over. Piloting remote factory tours – includinginterviews with production workers – in loud environments and with weak Wi-Fi coverage are thus the nextchallenge.

data on these smelting works listed in order to identify possible risks and raise supplier awareness for this topic.
Objectives and results
Over the course of the COVID-19 pandemic, in fiscal year
2019/20 ZEISS compiled recommendations and directives toensure the continuity of its procurement and logistics process:for example, for prioritizing shipments or safeguarding theirreceipt. As a result, it was possible to avoid this having amajor impact on ZEISS customers and production processes.
ZEISS assumes that the adjustments in logistics made in response to the pandemic have led to a smaller carbon footprint

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5SocialEngagementfrom logistics processes. Above all, the conversion from air
freight to marine or rail transport was able to contribute toclimate-friendly logistics.
In fiscal year 2019/20 the sustainability risk of ZEISS' 510
major suppliers was assessed using established risk indices.
In order to systematically identify risks in the supply chain, in
the reporting year industry risks were integrated in the risk
analysis, including those related to human rights.
International sustainability audits were planned in the reporting period but could not be carried out due to the travel ban
in response to the COVID-19 pandemic. To continue monitoring the suppliers' sustainability performance in spite of
the limitations that the pandemic imposed on business travel
additional measures are planned, such as the integration of
the supplier self-assessment into the supplier portal.
To raise employee and supplier awareness for sustainability
issues and train them on how to meet requirements, ZEISS
is offering an e-learning course on the RBA Code of Conduct.
ZEISS will continue rolling the course out both internally andexternally. A central supplier portal ensures the effective
exchange of information. It requires suppliers to accept the
RBA or an equivalent code of conduct. Numerous suppliers
around the world have been required to use the supplierportal since 2019/20 and there are plans to expand the portal
in the future.
In fiscal year 2019/20, no violations or complaints relating
to human rights in the supply chain were reported via the
ZEISS Integrity Line.

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Key figures
A total of 91 percent (previous year: 85 percent) of the 510
strategically relevant suppliers have replied or confirmed via
the supplier portal that they will comply with the RBA Code of
Conduct or an equivalent code of conduct.
In fiscal year 2019/20, approximately 50 supplier audits were
performed worldwide, also covering aspects related to occupational health and safety and environmental management.

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Rail Transport
Today, many companies have shifted parts of their
supply chain to China. A key component is the logistics
between China and markets in Europe and other partsof the world. As a result, ZEISS increasingly transports its
products via rail. This has proven essential during thecurrent COVID-19 pandemic, since air freight costs arerising due to high demand and low availability. Further,
freight transport via rail lowers carbon emissions ascompared to air freight. Regardless of the COVID-19
pandemic, the Research Microscopy Solutions strategic
business unit plans to shift around 800 pallets from air
freight to the rails by summer 2021. That is equal toaround two-thirds of the total air freight volume. Thischange will reduce carbon emissions due to transport byaround 70 tons per year – around 95 percent.

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Implementing the German National Action Plan for Business and Human Rights (NAP)The German government expects companies
to begin integrating their due diligenceobligations with regard to human rights –as described in the National Action Plan for
Business and Human Rights (NAP) – into
their business processes by the end of 2020
at the latest.
Five core elements have been defined as part of the NAP andZEISS is successively driving their implementation. To thisend, a working group was formed with representatives fromthe Supplier Sustainability team, the central Sustainability
team, and some local compliance offices. Its mission is toinitiate ideas for implementing the core elements and harmonize them with other legal requirements like the British andAustralian Modern Slavery Act.

1.

2.

Policy statement on the respectof human rights: The ZEISS Codeof Conduct makes explicit reference
to the ILO's core labor standards
and recognizes the principles of the
RBA Code of Conduct. ZEISS uses
this public policy statement to emphasize that human rights – such as
the ban on forced labor or slavery,and human trafficking, the ban on
child labor and discrimination –apply to employees and business
partners alike. Further information
is available in the chapter "Integrity
and Compliance" starting on page
28.

Procedure for determining actual and potential negative
effects on human rights (riskanalysis): Considering ZEISS' business environment, the company
has developed approaches for determining cases of actual and potentially disadvantageous effects
on human rights. For the first timein fiscal year 2018/19, HR managers at different ZEISS sites took partin a standardized questionnaire to
determine whether Human Resources processes pose any humanrights risks. The results showed that
employees perceived a low risk ofhuman rights violations at ZEISS.
Nevertheless, to raise awareness forpotential risks, measures included a
new e-learning course for employees and suppliers.

As part of the annual risk analysis, potential risks relating to thehuman rights of main suppliers
are assessed using various indicesand additional criteria as definedby ZEISS (see processes, page 37).
In particular, violations of occupational health and safety regulations
are possible risks that could arise in
ZEISS supplier industries.

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3.

4.

5.

Measures for avoiding negative
effects on those concerned,
and evaluating measures: The
results of the risk analysis are usedin the further planning of systematic
measures. On this basis, ZEISS carries out sustainability audits on its
suppliers and supports their efforts
to compile appropriate corrective
action plans. Negative effects wereidentified in the form of deficiencies
in the areas of occupational safety
and transparency concerning working conditions.

Reporting: The ZEISS Group's existing reporting and communication
formats provide the appropriate
amount of information on the identified risks and measures. The Sustainability Report, the ZEISS website
and the Non-Financial Report are
the key reporting formats.

Complaints mechanism: Since
November 2018, the global ZEISS Integrity Line has been available to internal and external stakeholders for
submitting information on possible
human rights violations. In consultation with stakeholders such as theWorks Council, it is available in 22
languages on the ZEISS website, creating an anonymous, effective complaints mechanism to supplement
the existing processes for dealing
with suspected violations (see the"Compliance" chapter on page 28).

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EMPLOYEES41

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Employee Involvement
In the competition to attract new talent, ZEISS
positions itself as an attractive employer.
ZEISS benefits from its reputation as a global,
innovative foundation-owned company with astrong focus on values that are embedded in
the corporate culture.
Achieving precision, innovation and unparalleled quality
requires motivated and qualified employees. In light of demographic change and the increasing shortage of skilled workers,
the diversity and equal opportunities championed at thecompany will prove to be key competitive advantages. ZEISS
is proactively meeting the challenges with a global recruiting
strategy – fully in line with the corporate strategy. The goal is
to make the ZEISS Group even more customer-oriented, morecompetitive and more digital. Further important aspects of
ZEISS' responsibility toward its employees are co-determination within the company, promoting a work-life balance andemployee development.

In 2020, a major challenge faced by ZEISS employees was tomanage the impact of the global COVID-19 pandemic. ZEISS
was able to rely on existing plans drawn up by the Group's
crisis management team to ensure the occupational healthand safety of employees with suitable preventive measures.
These included digital tools for virtual collaboration and flexible working hours models that helped ensure business continuity. In response to the changes to the number of incoming
orders caused by the pandemic and the associated decline in
the capacity utilization of many employees, ZEISS deployed avariety of departmental- and site-specific instruments to safeguard jobs. These included loaning out employees to otherGroup companies, reducing overtime and, as a last resort, implementing the reduced working hours policy in Germany andsimilar programs abroad. The Semiconductor Manufacturing
Technology segment was an exception, as it did not record adecline in demand or incoming orders.
In Germany, the co-determination instrument, a basic con­dition for high employee satisfaction, ensured that employees
were actively integrated. But as a global player, ZEISS mustalso consider its employees outside Germany. To do so, ZEISS
regularly conducts a global employee survey to keep its finger
on the pulse of the general mood.
Guidelines, structures and processes (GRI 102-41, 102-43)
Corporate Human Resources works with HR managers anddivision representatives to define standards and proceduresfor strategic and overarching areas of activity and implements them within the scope of the department's functional
management worldwide. It is the Group Works Council's main
partner for dialogue and negotiation, and is the point ofcontact for the HR departments at all ZEISS units.

Operational co-determination is firmly established at ZEISS,
and the principles of the Foundation statutes are firmly
embedded at the sites in Germany. Statutory matters andissues regulated by collective wage agreements are nego­tiatedwith the respective employee representatives. In addition,
ZEISS regularly discusses planned changes within committees
made up of employee representatives, thus going above andbeyond the statutory requirements in Germany. In accordancewith the provisions of the German Co-Determination Act,
half the members of the Supervisory Board of Carl Zeiss AG
represent the sole shareholder – the Carl Zeiss Foundation –while the other half represents the employees. The Executive
Board regularly reports to the Supervisory Board on current
issues and planned operational changes. The European sites ofCarl Zeiss Vision International GmbH send employee representatives to the European Works Council.
With Pulse Check, a regular anonymous survey of employees
worldwide, ZEISS measures the status of the corporate culture
and the success of its strategy implementation. The results ofthe survey are a key indicator of the attractiveness of ZEISS
as an employer. Pulse Check addresses the prevalence of thevalues SERVE – EMPOWER – ACT – WIN in daily activities, andother current cultural issues within the context of the ZEISSAgenda 2020. The most recent Pulse Check was held at the
beginning of 2020 and almost three-fourths of employees
participated in the survey and provided their feedback.
Objectives and results
In order to meet our goal of becoming an attractive employer,
ZEISS emphasizes the importance of a good relationship to its
employees and takes various measures to maintain it on an
ongoing basis. And this has proven successful: Pulse Check

42

BACK TOCONTENTS

Company Profile
and Business Model2020 showed that more than 84 percent of all employees
enjoy working at ZEISS and 75 percent of employees would
recommend ZEISS as an employer. That means ZEISS has
further improved on the results from the last survey in 2018,
which were already very good. However, other focal points
were identified for future cultural work, such as the ability toaddress necessary changes quickly. These positive trends andpotential for improvement will continue to be addressed aspart of cultural development. Employees addressed the necessary changes in different formats, such as workshops andteam summits, examining aspects such as how to improveglobal collaboration and prepare the ZEISS Group for thedigital future. The results of the Pulse Check were discussedwith the Executive Board and subsequently communicated tothe employees – due to the pandemic, this was done primarily
through virtual means but also through a few in-person
events. The goal for the years ahead is to continue on thispositive trajectory to ensure employee satisfaction.

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Global employee structure

Total

2019/20

2018/192017/18

32,201

31,26029,309» Part-time employees

1,787

1,725

1,483

» Employees with fixed-term
contracts

1,512

1,511

1,354

Trainees and students in acooperative education program

520

517

464

Contract workers

967

952

967

Percentage of female employees

34%

34%

34%

Turnover rate* (Germany)

1.7%* T he turnover rate refers to all ZEISS employees in Germany except for those at
GOM GmbH and was published for the first time for FY 2019/20. The KPI does
not include resignations due to limited-term employment contracts, retirement,
early retirement, or death.

Employees by region
To enable employees to participate in ZEISS' successful
business development, eligible employees have received abonus in recent years. Due to the outbreak of the COVID-19
pandemic in fiscal year 2019/20, employees at ZEISS sites inGermany received a thank-you bonus of up to €1,500 (net) inplace of the usual bonus. This was done in recognition of theirachievements despite the difficult circumstances that prevailed
and was paid out in October 2020, at the end of the reporting year. Some ZEISS sites outside Germany have their own
country-specific rules that also allowed employees to share in
the success of fiscal year 2019/20.

Germany

2019/20

2018/192017/18

13,692

13,31012,067EMEA (without Germany)

4,628

4,589

4,522

Americas

7,010

6,950

6,683

APAC

6,871

6,411

6,037

43

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Company Profile
and Business Model

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Attracting and Developing Employees
ZEISS invests continually in the recruiting, promotion andprofessional development of its employees, positioning itself
as an attractive employer in the competition to gain talented
individuals and countering the shortage of skilled workers.
ZEISS also aspires to recruit many skilled workers and managers from its own ranks. This creates attractive opportunities
for professional development and keeps qualified, motivatedemployees loyal the company over the long term.
Structures, guidelines and processes
Corporate Human Resources is responsible for training, strategic personnel development and talent management. It works
closely with local HR departments within functional teams,
service areas, and projects. CurioZ is the ZEISS venture respon­sible for learning at ZEISS. Through the ZEISS CurioZ digitallearning platform, ZEISS contributes to the professional development of its employees. Innovative formats and programs
systematically promote the expansion of expertise, knowledge
and skills.
In order to attract young talents, ZEISS publishes target
group-specific content on global and local online channels
such as LinkedIn, YouTube, WeChat and ResearchGate.
Company representatives also attend career events and visit
universities to promote ZEISS as an international employer.
During the COVID-19 pandemic, ZEISS continuously expanded
its range of virtual informational events. The effectiveness ofthe measures is evident from the continually positive results
it enjoys in employer rankings such as the Trendence Rankingof Germany's most attractive employers for graduates andyoung professionals, and how it receives many applications
for vacant positions.

ZEISS offers plenty of training opportunities and works withvarious universities with cooperative study programs. In thereporting period, a total of 126 young people began a
vocational training program or a cooperative study programat the German sites in Göttingen, Jena, Oberkochen andWetzlar. The students are being trained in the fields of industrial
mechanics, precision optics, mechatronics and industrial
business management, or are completing a cooperative study
program in business information systems, international businessor data science. With its sophisticated cooperative study
offering, ZEISS is contributing to the development of society,especially at its German sites.
Both young and more seasoned professionals have the chance
to take part in a host of development programs and international networking events. Advanced training includes a focus
on the development of managers. In addition to a mandatory
program to prepare managers for their first leadership experience, ZEISS promotes job rotation for its employees – which
also includes assignments abroad.
Numerous programs for identifying and developing talents
support employees in their professional careers. They pay
special attention to individual skills and the further development of competencies in particular. This way, ZEISS not
only enables promising careers for managers, but also offers
attractive career paths for R&D and innovation specialists, andemployees in service and support.
Measures and results
At the end of the reporting period, ZEISS employed a total of
520 vocational trainees and students in a cooperative study

Digital Learning
To ensure that employees stay with the company anddevelop further in the future, ZEISS offers both in-person
training sessions and innovative learning formats. Currently almost 900 in-person and online courses, as well as
numerous e-books and audio books, are available on the
ZEISS CurioZ learning platform. During the COVID-19
pandemic, ZEISS CurioZ helped the company convert
some 40 percent of all in-person training sessions to virtual
training courses and blended learning formats. Further,
the range of relevant courses was expanded to include
the topics of virtual collaboration and further qualificationfor employees working reduced hours, for example. To dothis, ZEISS worked with an international training services
provider. Employees were enthusiastic about signingup for the courses, which demonstrated their interest in
developing their skills during the pandemic.

program in Germany (previous year: 517). To ensure thatyoung talents remain interested in ZEISS in the years ahead,the company stays in touch with approximately 10 percent
of its best interns through a retention program. In fiscal year
2019/20, around 500 young people completed a technicalor business-related internship at the company's German sites
or wrote their thesis at ZEISS. In addition, roughly 200 highschool students had the opportunity to explore their future
career options as part of a high school internship.

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BACK TOCONTENTS

Company Profile
and Business Model

Employees also seized the opportunity to work abroad for ZEISS
and develop their skills further there in fiscal year 2019/20 as
well. At present, 40 employees from Germany are working in
16 different countries worldwide. At the same time, 18 employees from abroad have been assigned to work in Germany.
Assignments in third countries, which see US-based employees
working in countries like China, are becoming increasingly
important. However, plans for further assignments abroad havebeen influenced by the COVID-19 pandemic and strict travel
restrictions in various countries, and some had to be postponed.

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

New Learning for the Digital Workplace
The digital future will require new expertise and skills,
which ZEISS is systematically integrating into the training
and continuing education of its employees. Learning onan iPad or in a fully networked Smart Factory are also partof the package, along with how to use a 3D printer andseminars on robotics. Since 2017, instructors at all sites
have taken the course “Training instructors in the digitalworld,” where they take a deep dive into learning new
digital teaching methods and content. The new continuing education course "Digital Production Expert" makes
Production employees fit for the digital workplace of tomorrow. Course participants learn how a modern, digitally networked production facility works and what related
skills employees will need in the years to come. They workon learning projects where they organize themselves asa cross-functional team and manage the processes
themselves. As they work through the modern learning
content, participants are supported by experienced
trainers based on training modules developed by ZEISS.
This allows participants to raise their knowledge to a
new level. It is through a pedagogic concept that teaches
both technical skills and self-learning competency while
encouraging teamwork among different occupationalgroups. The program increases the flexibility and usability of ZEISS employees in the production processes oftomorrow.

3
Employees

4
Environment

5SocialEngagement

Key figures
Figures on the use of ZEISS CurioZ learning platform in
FY 2019/20*» Number of active users worldwide who completed at least
one online course: 24,116 (13,155 in Germany alone)*» 200,110 online courses completed worldwide(78,486 in Germany)» Number of e-book downloads: 23,452

Figures on learning in Germany
2019/20

2018/192017/18

Total
Share of men
Share of women

91,23074%
26%61,74074%
26%43,739Total
Total no. ofparticipant days** Share of men
Share of women

30,56076%
24%

24,72276%
24%

22,402

Fiscal year (FY)
Total no.
of completed
courses*	The number of active users refers to ZEISS employees. Customers andsuppliers, who can also use the platform, are not included in the figures.
**	Based on the estimated length of the training course (one participant day
corresponds to 7.5 training hours) without travel or preparation time45

BACK TOCONTENTS

Company Profile
and Business Model

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Diversity and Equal Opportunities
With over 32,000 employees in almost 50 countries, diversity
is part and parcel of everyday life at ZEISS. ZEISS is shapedby a diverse array of skills, ways of thinking, leadership andwork styles, cultural backgrounds and lifestyles. This is a great
advantage because diverse teams are more creative and solution-oriented, which helps them innovate. Diversity strengthens the company's ability to innovate and plays a key role in
the implementation of the ZEISS company strategy.

Corporate Human Resources is responsible for managing
activities that promote diversity. It has the support of multiplecommittees and reports to the Executive Board. Executives
and managers are obliged to model integrity through theirown behavior, explain the rules to employees, monitor compliance with these rules and rectify any violations. Local HR
departments assist Corporate Human Resources with clarifying
and resolving any violations.

At the same time, diversity in all its forms is the key to theglobal success of an international company like ZEISS – because employees know the markets, understand customers'
different needs and know how to respond to business partners' cultural practices and customs. This plays a major role insecuring local acceptance and trust for the company.

When it comes to its strategy for promoting diversity, ZEISS
focuses on five aspects in particular:

Guidelines, structures and processes
Around the globe, ZEISS stands for diversity, tolerance andopenness, and categorically rejects all forms of violence.
Such values help to create a peaceful, prosperous and modern
world in which everyone is equal before the law. ZEISS rejects
all forms of intolerance, racism, violence and extremism.
The company's commitment is enshrined in the Foundation
statutes and in the ZEISS Code of Conduct, and prohibits all
forms of discrimination, whether due to "ethnic or social
origin, skin color, gender, age, marital status, disability, religion, nationality, sexual identity or any other features." ZEISS
strengthened its commitment to diversity by signing theDiversity Charter in July 2017. The goal of this businessinitiative under the patronage of German Chancellor Angela
Merkel is to promote the acceptance, appreciation andinclusion of diversity in the German workplace.

1. Professional background: Being open to different
professional careers and educational backgrounds.
2. Internationality: Employees from a wide variety of culturesand nationalities deserve to work in an atmosphere of mutual respect and esteem.
3. Generations: The work environment must be organized
so that different generations can work together successfully.
4. Gender: Everyone should have the same opportunities,
regardless of gender.

Objectives and results
ZEISS aims to ensure that all employees can collaborate
successfully and appreciate one another. To strengthen thediversity that ZEISS embraces, in fiscal year 2019/20 the
ZEISS Group and its employees in Germany continued topursue the following initiatives:» Cooperation network for international employees andtheir families» Women‘s Award for outstanding students of IT, businessinformatics and media informatics» Mentoring program for women at Aalen University, Ernst
Abbe University in Jena and the University of Jena to promoteequal opportunities» A network for new employees that transcends divisional anddepartmental boundaries to promote knowledge sharing
and improve onboarding at ZEISSMost further measures, such as events and programs related
to German Diversity Day, have been postponed due to the
COVID-19 pandemic.

5. Workplace culture: An open and flexible workplaceculture enables all employees to achieve the right work-lifebalance.

46Company Profile
and Business Model

BACK TOCONTENTS

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Work-Life Balance
Global age structure of the ZEISS Group in FY 2019/20
Age distribution

Male

FemaleTotal

Under 30

3,879

2,384

6,263

30 to 49

12,296

6,134

18,43050 and older

5,101

2,407

7,508

Strong Women in IT
At ZEISS, diversity means being open to differences
and promoting tolerance and equal opportunity. The
advancement of women plays a central role in achieving
diversity. Conferred for the 10th time in 2020, the Women's Awards are ZEISS' effort to focus on diverse career
opportunities for women working in computer science.
The award was available throughout Germany for the firsttime. Students of IT, business informatics, media informatics or a comparable degree program were invited toapply. A 10-member jury primarily composed of successful
women from the fields of science and business selected the winners in 2020: three strong young computerscience students who engage with social issues alongside
their studies and have personalities that make them
ideal role models.

The opportunity to balance work and family life at different
stages of one's personal life and career is a key part of
how ZEISS supports its employees. The goal is to increase
employee satisfaction and the company's appeal as an
employer. In fiscal year 2019/20, the topic became evenmore important due to the COVID-19 pandemic, e.g. as aresult of increased demand for flexible working hours or
telecommuting due to limited childcare options. As aresult, in this year's validation of the materiality analysis,
the relevance of striking a good work-life balance received
a much higher overall rating than it did last year.
Guidelines, structures and processes
In Germany, overall responsibility for promoting work life
balance lies with Corporate Human Resources. Discussions
with the Works Council, employees and represen­tatives ofthe different sites focus on evaluating employee requirements and implementing appropriate measures. In fiscal year
2019/20, the focus was on the need for greater transparency and better communication across Germany. By offeringGroup-wide agreements on the flexible design of workplaces
and working hours, ZEISS is helping its employees to combine
their work and family life in the best possible way. Agreements on working models are reached with the relevantWorks Council.

and the employees implemented measures that make it easier
to balance work and family life:» Expansion of the cooperation network for childcare andcaring for family members to all sites in Germany» Strengthening of the program with talks on caring forfamily members and scheduling consultations on caring forfamily members and children» Creation of a website to provide an overview of all programs for improving the work-life balance and regularly
communicating offers via a mailing list and the intranet
ZEISS' experience thus far with flexible work models has
played a key role in how the company faced the COVID-19
pandemic by quickly switching to virtual collaboration in the
non-production environment to ensure business continuity.
An internal survey of managers on virtual work and leadershiprevealed that the teams were able to quickly adapt to the
new conditions and continue with their work. The employees
and their families who were affected by the pandemic
received further support through consultations, and workrelated and other individual measures.

Objectives and results
In addition to expanding flexible working hours and workplace models, in fiscal year 2019/20 ZEISS, the Works Council

47

BACK TOCONTENTS

Company Profile
and Business Model

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Occupational Health and Safety
For ZEISS creating a safe, healthy workplace for its employees
is a fundamental obligation. This also applies to employees
from non-ZEISS companies acting on behalf of ZEISS. ZEISS
promotes its employees' health and performance throughcomprehensive safety measures and occupational healthexaminations. In doing so, the company reduces compliancerisks and ensures productivity.
Guidelines, structures and processes
Occupational safety and protecting the health of all employees are principles enshrined in both the Carl Zeiss Foundation
statutes and the ZEISS Code of Conduct. The Chief Financial
Officer is a member of the Executive Board and responsible
for occupational health and safety. The respective heads ofall ZEISS units are responsible for occupational safety andemployee health, and consequently for developing, implementing, auditing and continuously improving occupational
health and safety performance, as well as the implementationof Group-wide policies. The responsibilities of all ZEISS employees and managers with regard to occupational health andsafety are outlined in a corporate policy.
A central Coordinator for Occupational Health and Safety(OHS) with global responsibility has been appointed. All ZEISSGroup entities are obligated to appoint an OHS officer inwriting. The duties of the OHS officer can differ in line withlocal legislation, but always include advising management
and assessing workplace risks. Further, all ZEISS employees
are called on to actively promote occupational safety andreport risks to their supervisors or the respective OHS officer.
In addition to reporting near accidents and unsafe situations,the relevant line managers at German sites are obligated tocarry out a cause analysis and define and implement measures
if necessary. Occupational safety experts and/or company physicians can assist with defining these measures upon request.
The company units organize their own training programs on
occupational health and safety, and responsibility lies with therespective manager.
To ensure regular communication on occupational health andsafety topics, the Chief Financial Officer, Head of Corporate
Auditing, Risk and Quality Management and the global OHS
coordinator meet three times a year. The Chief Financial Officer
is informed about the frequency and severity of work-related
accidents at ZEISS. A globally uniform KPI has been introduced
for this purpose. The management's duties are set out in aninternal guideline. It is binding for all ZEISS unit and describes
the annual documentation that the management must provide
in an annual management review:» All relevant laws and stipulations related to occupational
health and safety have been complied with, fulfilled andmonitored» All employees have taken part in general training on occupational health and safety
In Germany, the head of occupational health and safety takes
on an advisory role for all locations pursuant to Germany's Act
on Occupational Physicians, Safety Engineers and Other Occupational Safety Specialists (Arbeitssicherheitsgesetz). To thisend, a set of rules has been compiled to regulate fundamental processes and procedures. All companies in Germany are
obligated to implement them and they have been integrated

into the ZEISS management system. Occupational health andsafety management at ZEISS sites in Germany encompasses all
sites and covers the non-ZEISS employees commissioned by
the sites. Therefore, contractors must consent to ZEISS' directive on external companies prior to accepting the commission.
Moreover, safety committees (ASA) subject to statutory control have been formed at German sites. They convene eachquarter to consult on issues related to occupational healthand safety and accident prevention. Company management
is responsible for organizing the ASA. This task falls to theMember of the Executive or Management Board responsible
for occupational safety, or the appointed Site Manager for
Occupational Health and Safety. The committees also include
members of the Works Council, a company physician, an
occupational health and safety expert, safety officers and, if
applicable, a representative for handicapped employees. Since
this includes at least one representative from the company
management team, the committees can also make decisions.
A total of 13 business units at three German sites and fourinternational ZEISS sites are certified in accordance with ISO
45001, the international standard for occupational health andsafety management systems. An occupational health andsafety management system based on the requirements stipulated in ISO 45001 has been implemented at all other ZEISS
sites in Germany.
Each month, 28 business units in Germany and 31 international production sites with a total of around 25,900 employees
supply statistics on the frequency and severity of work-related
accidents. The OHS coordinator reviews the statistics together

48

BACK TOCONTENTS

Company Profile
and Business Modelwith the head of the business unit and the employee respon­sible for submitting the figures. Monitoring plausibility
improves reporting quality and more firmly anchors the topic
of occupational health and safety within the company. The
frequency and severity of work-related accidents among
employees who primarily work in administration and sales
outside of Germany are currently not included in the data
because of their lower estimated risk potential.
ZEISS promotes occupational health management primarily inGermany, but individual initiatives are also run at sites worldwide. The broad program in the area of exercise, nutrition andmental health improves employee health and is also a key selling
point when it comes to recruiting young talent.
Objectives and results
The main objective of the ZEISS Group is to reduce the frequency and severity of work-related accidents. The Executive
Board aims to achieve a lost time injury frequency rate (LTIFR)*of less than 2.25 for all the ZEISS Group's production units by
the end of 2023. The interim target for fiscal year 2019/20
of less than 3.5 was achieved (LTIFR = 2.652), meaning that asignificant improvement was made compared to the previous
year (LTIFR = 3.82). There were no fatal work-related accidents
in the reporting year. The majority of accidents that occurred
within the ZEISS Group in Germany were caused by personal

2

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

conduct such as ignoring work instructions or not paying attention. ZEISS primarily responds to this challenge by organizing training for managers and running information campaigns
to raise employee awareness.
The ZEISS Group aims to increase the level of standardization in
its internal processes related to occupational health and safety.
That is why ZEISS is currently implementing an occupational
health and safety software with the goal of rolling it out at
all German business units by the end of fiscal year 2020/21.
Following implementation in Germany, the long-term goal is
to use the software to establish an accident reporting systemworldwide. This means work-related accidents, near accidents
and unsafe situations can all be reported and monitored. In
addition, the planning and documentation of safety trainings,
creation of risk assessments and documentation and fulltransparency of measures derived from health and safety andfire safety inspections will be simplified. The implementationof the new software presents a key challenge: ensuring widespread acceptance among its future users. In order to ensure
its smooth implementation, pilot projects were run at selectedsites and employees received thorough training in the software.
In fiscal year 2019/20, these measures were rolled out toeven more ZEISS Group units. More than 730 managers andofficers received health and safety training in the previous
fiscal year. Due to the COVID-19 pandemic, the training

3
Employees

4
Environment

5SocialEngagement

concept was successfully converted from classroom-based to
web-based training.
One of the biggest challenges in terms of occupational healthand safety in the past fiscal year was dealing with the impactof the COVID-19 pandemic. To do this, the company was able
to rely on existing Group-wide crisis management plans. The
task force's core team was expanded to include the Company
Medical Center and a team of experts, as well as a site manager team at the German sites. The majority of the procedures
adopted and decisions made were set forth as binding forthe entire Group in line with national and regional statutory requirements. The measures included compliance withsocial distancing and hygiene rules, mandatory masks, travel
guidelines and rules on the use of shared spaces. The definedmeasures were implemented by segment-specific task forces,
meaning the segments and countries were able to respondaccording to their particular situation as needed.

 owever, due to reporting cultures that vary from country to country, it can be assumed that some workplace accidents are not reported in the sameH
way as they are at the ZEISS locations in Germany. Such effects are not factored into the performance indicator of reported workplace accidents. In
fiscal year 2019/20, more sites were involved in data collection than in fiscal year 2018/19.

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Key figures» Lost time injury (LTI): A severe workplace injury that mustbe treated by a physician who is neither employed by nor
under contract with ZEISS, and which causes the person affected to be unable to work on the following day (absence
due to injury ≥ 1 calendar day).
» Lost time injury frequency rate (LTIFR): Workplace
accidents per one million target working hours (corresponds
to 500 full-time employees) in one fiscal year (frequency).
Commuting accidents are not included.

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Performance indicators for 2019/20
LTI

LTIFR

SVR

LCDR

Target hours

Germany

88

3.14

16.21

50.90

28.039.609

EMEA(without Germany)

17

3.67

19.88

72.88

4.637.927

Americas

24

1.91

10.08

19.28

12.554.412

APAC

5

0.92

43

39.78

5.405.658

Total

134

2.65

16.58

43.88

50.637.606

» Severity rate (SVR): Describes the average severity of allaccidents that occurred in a specific time period.
» Lost calendar day rate (LCDR): Describes the numberof lost calendar days (LCD) per one million target hours
worked (this corresponds to 500 full-time employees) withina specific time period.
» Target hours: Total number of target working hours.

50

BACK TOCONTENTS04

ENVIRONMENT

I run on solar power.
Helping provide climate-friendly logistics.

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and Business Model

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Efficient Use of Natural Resources
Effective environmental and climate protection
and the responsible use of resources are key
concerns of the ZEISS Group. ZEISS believes
that adhering to the highest standards holds
potential for both greater competitivenessand innovations that re­concile environmental
protection and economic efficiency.
As a responsible company, ZEISS acts in line with the Precautionary Principle, which means limiting its environmental
impact wherever possible. A key lever for environmental
protection and resource conservation is the efficient use ofmaterials and energy – from product development andmanufacturing to sales and customer use. Since every
reduction in resource and energy consumption also decreases
CO2 emissions, ZEISS is also doing something to protect theclimate.

Raw materials, semi-finished goods and preliminary products,
as well as energy and water, are all used to manufacture thecompany's various products. Emissions, effluents and waste
are generated that cannot subsequently be reused in the
manufacturing process. The use of natural resources comeswith certain challenges, including scarcity of the necessary
natural resources or a negative impact on the environ­ment
resulting from the extracting, processing and disposing ofmaterials. In addition, rising energy, material, or waste disposal
prices can adversely affect the company's competitiveness.
ZEISS therefore optimizes its business processes in line withenvironmental and economic aspects and organizes them sothat fewer and fewer resources are required. Environ­mental
aspects are also taken into account in product development inorder to make many end-of-pipe activities unnecessary(see page 33).
Guidelines, structures and processes
To ensure that the company continues to improve its environmental performance, ZEISS first drew up global environmental
principles back in 1998. To implement them, the company
uses an environmental management system in accordancewith the international ISO 14001:2015 standard. The environmental performance requirements are laid out in a standard
operating procedure on environmental protection that isbinding throughout the Group. The potential and actual
effects of different environmental aspects – including waste,soil and groundwater protection, and air quality maintenance– are evaluated using an analysis grid. Depending on the
result, measures to minimize the environmental impact may
be defined.

The Chief Financial Officer of Carl Zeiss AG bears overall
responsibility for the implementation of the ZEISS Group's
environmental management system. A Group-level environmental protection officer has also been appointed to workwith the site managers to help business units identify and implement suitable measures. At the end of the reporting period
on 30 September 2020, 32 business units at 15 of the ZEISSGroup's production sites were certified in accordance with
ISO 14001:2015. A company suggestion scheme is in place ateight ZEISS sites in countries like China, the US and Germany. The employees' submissions are assessed based on theirfeasibility, impact and efficiency. For example, ZEISS values
suggestions for conserving energy, improving energy
efficiency, reducing materials usage, finding substitutes forhazardous chemicals and increasing the efficiency of its
production processes. Ideas from employees which meet
ZEISS' stipulated criteria receive a small financial reward andoften recognition on a local level.
For many years, the Environmental Protection working groupof the ZEISS Group has successfully facilitated the exchange of
information and best practices between the sites in Germany. The working group meets at least once per year and has
held 28 meetings since it was established. These meetings areattended by officers for the integrated management system,
environmental protection officers, environmental coordinators, representatives from the Waste Management, Wastewater Technology and Utilities Management departments,
hazardous materials officers and specialists for environment,
health and safety (EHS). And as of fiscal year 2019/20, representatives of the newly established central Sustainability teamhave also been invited to the meeting.

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BACK TOCONTENTS

Company Profile
and Business ModelA cross-divisional team of experts also meets on a regularbasis. It focuses on the more thorough integration of sustain­
ability aspects such as energy and resource efficiency, andalternative materials into the development process. In fiscal
year 2019/20, the team of experts held two meetings at
which they shared valuable experiences among business units
and identified the developers' concrete information needs. For
example, more in-depth methods are needed to evaluate thesustainability profile of materials used and purchased products. Such information can be used to develop more sustainable products.
Water and effluents
Water primarily comes from the public drinking water supply
and is used for manufacturing and cleaning processes, forcooling and as sanitary water. Effluents resulting from production processes are treated in the company's own treatment
plants and subsequently drained into the municipal sewer
system. The quality standards at all sites are defined by local
laws and official requirements. The responsible supervisory
authorities are actively involved since the implementation of
measures for saving water – above all in conjunction withpermits for water treatment plants – is a clear, ongoingstatutory requirement. Regular internal inspections ensure
strict compliance with these standards. Appropriate measures
are implemented in the event of discrepancies. The topic ofwater scarcity is particularly relevant for ZEISS at the sites
located in regions where the climate is dry. Examples include
the Vision Care strategic business unit's eyeglass lens plant in
Tijuana (Mexico), the Medical Technology segment's assemblyplant in Dublin (California) and the Semiconductor Manu­
facturing Technology segment's assembly plant in Israel. At

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

those sites in particular, ZEISS implements measures to reducewater consumption. At the Tijuana site, for example, wastewater from rinsing processes is reused for processes with lower water quality requirements, yielding annual water savingsof around 32,000 m3.
Materials
When selecting and using raw materials, technologies andproduction processes, ZEISS considers their environmental
compatibility. As an optics and optoelectronics company, theZEISS Group primarily uses materials and production processes
that have a low environmental impact and are easy tomonitor. Wherever possible, potentially hazardous materials
are replaced with less problematic substances. Recyclability
is a key factor when selecting a material in order to create
closed-loop material cycles and ensure resource efficiency.
For example, measures for reducing the amount of residual oil
on metal chips are taken at the Oberkochen site. By treating
the metal chips, residual coolant is separated and the chips
are compacted. This enables the metal chips to be recycled at
higher value and the residual coolant can also be reprocessed.
ZEISS has also been able to reduce its consumption of solventsin production and the associated environmental impact inrecent years. This was achieved by sensitizing employees touse solvents sparingly, but also by making technical modifications such as using water-based cleaning technologies.
In order to advance new approaches to resource efficiency,
ZEISS has been supporting the Industrial Resource Efficiency
think tank at the Karlsruhe Institute of Technology (KIT) since2017. Climate protection in global value chains throughresource efficiency in the manufacturing sector is a key topic

3
Employees

4
Environment

5SocialEngagementthat is being tackled with a number of approaches, including
a partnership with a German university.
Waste
The ZEISS Group operates a waste management system
whereby waste is generally avoided, minimized or recycled.
This is taken into consideration during production and processplanning. All managers are urged to work towards thesegoals. If it is not possible to avoid or recycle waste, thecompany aspires to use it to produce energy. Waste that canneither be prevented nor recycled is disposed of properly.
ZEISS selects the most environmentally friendly disposal
method that is also economically viable.

Upcycling in La Rochelle
The ZEISS Medical Technology segment in La Rochelle,
France, is collaborating with an organization that takes
production waste and passes it along to other organizations. The waste material is used to manufacture a rangeof products. For example, transport pallets from the
La Rochelle site are used to produce chairs, tables andshelving, giving them a new lease on life.

Objectives and results
In 2018, specific reduction targets for water consumption andwaste accumulation to be achieved by fiscal year 2019/20
were agreed with the Executive Board of the ZEISS Group: a40 percent reduction in water consumption and a 30 percent

53

BACK TOCONTENTS

Company Profile
and Business Model

reduction in waste accumulation relative to the company's
own value added. The reference year for all targets is fiscal
year 2009/10 and the new reduction targets are applicable asof fiscal year 2020/21.
Between the reference year 2009/10 and fiscal year 2019/20,
ZEISS successfully reduced its water consumption relative tothe company's value added (as sum of EBITDA and personnel
expenses). However, due to the company's strong growth,
absolute water consumption rose during the same period. The
reduction in relative water consumption can be attributed toa number of causes, including the consistent reuse of waterin rinsing processes and the internal circulation of water inproduction, cleaning and cooling systems. At the Oberkochen
site, for example, a new cleaning plant has enabled an integrative closed-loop rinsing water system. It achieves monthly
savings of between 10 and 20 m3 in rinsing water.

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

All of the business units certified in accordance with ISO 14001
have set their own targets for improving their environmental
performance as part of their area-specific environmental
programs. The targets are derived from the respective business
unit's specific circumstances (such as products and processes).
The attainment of these targets is subject to an annual review
within the units.

Target by
FY 2019/20*

Reduction achieved
in FY 2019/20*

Reduction in (relative) water
consumption

40%

48%

Reduction in (relative) waste
volume30%

31%

Objectives* Relative change to reference year 2009/10

Since systematic waste prevention is a top priority at ZEISS –not least for financial reasons – and relevant measures havebeen implemented, it has been possible to reduce the volume
of waste in the last ten years.
In fiscal year 2019/20, the relative and absolute volume ofwaste increased, which was due in part to ongoing construction projects.

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Company Profile
and Business Model

Key figures
Key performance indicators for water
and waste are recorded and consolidated
globally at ZEISS. They include all of theZEISS Group's major production sites(67 sites varying in size and activities).
The following charts show the respective
values from the past fiscal years in relation to value added3 and the percentagechange since fiscal year 2009/10.

1
Integrity andCompliance

Strategy andSustainability

2
Products andValue Chain

8.25

2009/10

5.78

2017/18
2018/192019/202(-30 %)

5.43(-34 %)

5.72(-31%)

4

6

2019/20

Fiscal year (FY)8

2018/19956

595

2017/18
2018/192019/20100200(-38 %)

524(-45 %)

502(-48 %)

400

600

800

1,000

Water consumption [in m3]/€ m value added
Relative change to reference year 2009/10 in %2017/18

2009/10

Fiscal year (FY)2019/20

2018/192017/18

2009/10

12,975

Water consumption[in 1,000 m³]

1,777

1,901

1,783

1,503

Total value added
at ZEISS [€ m]

3,541

3,623

2,998

1,572

Water consumption[in 1,000 m3]/
€ m value added

502

525

595

956

Relative change
to reference year 2009/10[in %]

-48

-45

-38

0

Waste volume[in t]» Hazardous» Non-hazardous

20,266

19,684

17,327

3,616
16,6493,757
15,926

3,092
14,234

Total value added at ZEISS
[€ m]

3,541

3,623

2,998

1,572

Waste volume [in t] /€ m value added

5.72

5.43

5.78

8.25

Relative change toreference year 2009/10[in %]

-31

-34

-30

0

31

5
SocialEngagement

2009/10

Waste [in t]/€ m value added
Relative change to reference year 2009/10 in %At ZEISS, value added is defined as the sum of earnings
before interest, taxes, depreciation and amortization(EBITDA) and personnel expenses.

4
Environment

Water consumption

Waste volume

0

3

3
Employees

percent reduction in (relative) waste
volume in FY 2019/20 as compared
to 2009/10

48

percent reduction in (relative)
water consumption in FY 2019/20
as compared to 2009/10

55

BACK TOCONTENTS

Company Profile
and Business Model

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Climate Protection at ZEISSOne of today's most urgent tasks is to counter climatechange and its impact. ZEISS adheres to the global goal stipulated in the Paris Agreement of limiting global warming to
below 2°C and has taken its own measures in order to achievethis. In fiscal year 2018/19, the status quo was analyzed inorder to identify the key influencing factors for reducing CO2
emissions. And as part of risk management, the company
regularly assesses the potential effects and opportunities
associated with climate change.
Guidelines, structures and processes
ZEISS Energy Management is tasked with keeping energyrelated KPIs stable or improving them, even if production
quantities increase. All of the ZEISS Group's sites within theEuropean Union (EU) have been certified in accordance withISO 50001, the internationally applicable standard for energy
management. Each of the units has appointed an Energy
Manager who is responsible for continuously improving energyrelated performance. The focus is on all of the company's(production) processes, machines, systems and equipment,along with its buildings and infrastructure.
In order to continue improving the energy and emissions datacollection process, ZEISS is currently implementing a global
energy data platform. The platform is designed to collect dataon all ZEISS sites worldwide with significant energy consumption and connect them. The aim is to collect data on all major
European sites by the end of fiscal year 2020/21, and subsequently roll out the platform to include all sites worldwide.
Objectives and results
Based on the results of the carbon savings potential analysis

from fiscal year 2018/19, ZEISS decided to gradually have its
major sites convert their energy supply to carbon neutrality
by 2022. The following priority measures will be implemented
to achieve this:» Purchasing green power from certified providers» E nhancing company plants to generate renewable energy:
for example via photovoltaic and geothermal energy» Offsetting unavoidable emissions: for example, thosecaused by procuring natural gas
The company selects carbon offset projects that meet strict
quality criteria in line with the ZEISS sustainability approach,and only supports projects that satisfy the defined, internationally recognized standards. ZEISS also revised its travel
rules in fiscal year 2019/20. All employees are encouraged touse climate-friendly means of transportation, for example bysupplementing the guidelines for company cars and a bonus/
malus rule to promote the use of greener cars. Since October
2019, ZEISS has also fully offset the greenhouse gas emissions
produced by the flights taken by its business travelers in linewith defined criteria. The reduction targets agreed in 2018 –a 50 percent reduction in carbon emissions and a 50 percent
reduction in energy consumption relative to the company's
own value added (as sum of EBITDA and personnel expenses)
in relation to the base year 2009/10 – expired in fiscal year
2019/20. Both targets were attained. New targets will comeinto effect in fiscal year 2020/21.

system, thus achieving an energy savings potential of up to
40 percent. At the same time, the company identifies andachieves potential carbon savings at its sites. Examples include
energy management and increased efficiency in production
with the help of lean management methods. Despite anincreasing number of employees and growing revenues, ZEISS
has been able to keep energy consumption and carbon
emissions more or less constant and even significantly reducethem at certain facilities.

Target by
FY 2019/20*

Reduction achieved
in FY 2019/20*

Reduction in (relative) carbon
emissions(Scope 1 and 2)

50%

50%

Reduction in (relative) energy
consumption

50%

51%

Objectives* Relative change to reference year 2009/10

In fiscal year 2019/20, ZEISS once again participated in the
CDP (previously: Carbon Disclosure Project). For the 2020
CDP report, which also contains a financial assessment of risks
and opportunities, for the first time CDP gave ZEISS a ratingof "A-" based on a scale of A to D (2019: "B"). ZEISS aims tomaintain this high level in the future. The results have been
published at www.cdp.net.

The company is also able to contribute to climate protection
through its own products, such as the new ZEISS CONTURA
measuring machine that uses an optimized electronic control

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BACK TOCONTENTS

Company Profile
and Business Model

Key figures
The key performance indicators for energy
and carbon emissions are recorded andconsolidated globally at ZEISS. They include
all of the ZEISS Group's major production
sites (67 sites varying in size and activities). The carbon emissions are recordedin accordance with ISO 14064-1, whichtakes the Greenhouse Gas Protocol into
account.

Strategy andSustainability

 t ZEISS, value added is defined as the sum ofAearnings before interest, taxes, depreciation andamortization (EBITDA) and personnel expenses.

5

S ince fiscal year 2017/18, separate statements
have been published for Scope 1 and Scope 2
emissions. The emissions were calculated withcurrent emissions factors as per the VDA list
(updated Jan. 2018).

3
Employees

318

171

2017/18
2018/19

0

50

100

4
Environment

5SocialEngagement

Carbon emissions (Scope 1 and 2)5

2009/10(-52 %)

157(-51%)
200

250

300

134

2009/10(-46 %)

152

150

71

2017/18
2018/192019/20350

Energy consumption [in MWh]/€ m value added
Relative change as compared to reference year 2009/10 in %0(-47 %)

65(-52 %)

67(-50 %)

50

100

150

Carbon emissions [in t]/€ m value added
Relative change as compared to reference year 2009/10 [in %]2019/20

2018/192017/18

2009/10

Fiscal year (FY)2019/20

2018/192017/18

2009/10

Energy consumption[in GWh]» Electricity» Gas» Heating oil» District heating

555

549

514

500

236,043

234,791

213,308210,223

369
156
1
28

366
153
2
29

332
150
1
32

CO2 emissions[in t]» Scope 1» Scope 2

31,963204,080

31,386
203,405

30,524
182,784

3,541

3,623

2,998

1,572

Total value added
at ZEISS [in € m]

3,541

3,623

2,998

1,572

Total value added
at ZEISS [in € m]

67

65

71

134

Energy consumption[in MWh]/€ m value
added

157

152

171

318

Carbon emissions[in t]/€ mvalue added

-52

-47

0

-51

-52

-46

0

Relative change to refer­ence year 2009/10 [in %]-50

Relative change to refer­ence year 2009/10 [in %]Fiscal year (FY)42
Products andValue Chain

Energy consumption

2019/20

The following charts show the values
from past fiscal years in relation to value
added4 and the percentage change since
fiscal year 2009/10.

1
Integrity andCompliance

51

percent reduction in (relative)
energy consumption in FY 2019/20
as compared to 2009/10

50

percent reduction in (relative)
carbon emissions in FY 2019/20
as compared to 2009/10

57

BACK TOCONTENTS

Company Profile
and Business Model

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Focus on Climate Risks
ZEISS intends to encounter the risks and opportunities resulting from climate change in an integrated way. Based on
the recommendations of the Task Force on Climate-related
Financial Disclosure (TCFD) with its four pillars, ZEISS presents
excerpts of its management approaches and measures related
to climate risks and opportunities. The complete approach isavailable in the 2020 ZEISS CDP climate report.
1. Governance
The Executive Board's responsibility for climate-relatedrisks and opportunities
The Executive Board of Carl Zeiss AG is responsible for approv­
ing all climate policy measures and specifying and monitoring
their targets. It receives information as part of the annual
Sustainability Report and releases the relevant reports. The
head of sustainability staff function has been regularly reportingon the measures and their progress to the President & CEO
and the entire Executive Board since October 2019. Further,
central Risk Management discusses the company's entire risk
report and process – including climate risks – with the Executive
Board on a quarterly basis.
The role of the management
The head of sustainability is responsible for topics related
to sustainability and for recommending environment-related
targets for the ZEISS Group, such as those for emission
reduction. This is done in close coordination with the environmental protection officers of the ZEISS Group. Information
on climate-related risks and opportunities is also regularly
shared between the central Sustainability team and the central
Risk Management team.

2. Strategy
Climate-related risks and opportunities and theireffects on the business model
Climate-related risks may have an effect on ZEISS' business
operations. In the long term, ZEISS expects oil, gas, andcoal to become scarce – due to decreasing supplies andnew laws such as the German carbon tax effective 2021. In
addition, ZEISS expects extreme weather events to become
more frequent and possibly have an effect on ZEISS production
sites or the supply chain.
The increasing push from politics, industry and civil society to
reduce greenhouse gas emissions means both opportunities
and risks for ZEISS' operations. For example, the e-mobility
trend generates demand for measuring and testing solutions
but electric vehicles contain fewer components and therefore
require less measuring and testing technology. However, therequirements on precision rise significantly. ZEISS is taking
advantage of other opportunities including the advanced
development of microscopes that help to increase the reliabilityof energy systems and reduce their susceptibility to repairs. Intelligent measuring systems from ZEISS also enable increased
efficiency in sectors such as the automotive and aerospaceindustries. In its strategic planning, ZEISS always considers thecustomer expectations and regulatory requirements that arechanging in conjunction with climate change.
Preparation of climate scenarios
In a first step, ZEISS ran a small 2-degree climate scenario basedon its carbon and energy footprint for fiscal year 2017/18. The
underlying criteria and methods were based on those of the

Global Climate and Environmental ProtectionZEISS sites implemented global measures for effective
climate and environmental protection in the reportingyear. At the site in Varese, Italy, ZEISS has been meetingits energy needs from 100 percent renewable sources – a
mixture of photovoltaic power, water power, geothermalenergy and wind power – since December 2019. The
site now saves around 2,112 tons of carbon annually. In
India, meanwhile, ZEISS procures most of its power fromrenewable energy sources and saves more than 3,600
tons of carbon annually. With the help of a rainwater
system, ZEISS also collects around 4,320 m3 of water
there and uses it in production processes. In Spain, theZEISS sales and service company tapped its employees'
creativity to define local initiatives for effective environmental protection. For example, a travel planning matrix
was created based on the most popular local travel
routes to help employees to find the most environmen­tally friendly travel option. In a cross-site process,ZEISS Brazil collected ideas for reducing water con­sumption.

Science Based Targets (SBTi) initiative. In addition, ZEISS intends
to run an enhanced resiliency assessment in the coming years
as a means of enabling the potential effects of climate change
to become even more of a factor in the company's strategicorientation.

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3. Risk management
Assessment of climate-related risks
ZEISS systematically analyzes and assesses several risk groups
and includes climate risks in the analysis. Special emphasis isplaced on potential economic effects and their probability ofoccurrence. They include the potential impact of emissions
trading, plans to introduce a carbon tax, and other regulatory
developments. The company also monitors potential physicalphenomena such as extreme weather events as a consequence of climate change. ZEISS has added a due diligenceprocess on interim and physical climate risks to its M&A
processes in an effort to take aspects such as the risk of flooding at potential sites into consideration.
Management of climate-related risks and measures
for risk minimization
As part of the ZEISS risk management process, climate-relatedrisks are featured in quarterly reports. In so doing, climaterelated risks are identified and measures for their reduction
or control defined. The implementation status and effectiveness of the defined measures are regularly tracked by thecentral Risk Management team. In order to minimize thepossible effects of climate change such as extreme weather
events, ZEISS uses business continuity plans that are checked
and updated at regular intervals.

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

E-mobility Expansion at ZEISSZEISS is relying more and more on climate-friendly
e-mobility at its sites. Since 2020, a total of 14 charging
options for electric vehicles have been in operation at
the Oberkochen site and ZEISS Innovation Hub @ KIT in
Karlsruhe. By the end of 2021, around 100 charging
stations will be installed at the ZEISS sites in Germany.
This is ZEISS' response to the clear shift toward personal electric vehicles and it plays a part in expanding thecharging infrastructure. ZEISS is also using a pilot project
supervised by Aalen University to herald the use of electriccommercial vehicles in the company's logistics processes. As
part of a test phase, the MAN eTGM all-electric truck has
provided preliminary products to ZEISS production facility
three to four times a day since mid-2020. The electric truck
is charged while it is being loaded in the logistics center.
As much power as possible comes from the solar panels on
the roof of the logistics center. ZEISS is also breaking new
ground at its site in Bengaluru (India) and plans to equip
its field sales force with electric motorcycles to replace theones with combustion engines they have been using.

4. Targets and key performance indicators
The main key performance indicators and targets for climate
protection are listed under "Objectives and results" onpage 56-57.

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Company Profile
and Business Model

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Environmental Compliance
At ZEISS, strict compliance with all relevant laws worldwide,
as well as international and national standards and directives,is the foundation of daily business success. It is also a condition
for complying with the declared quality promise and is thus a
key obligation towards all stakeholders.
Guidelines, structures and processes
Environmental officers at the ZEISS sites are responsible for
ensuring compliance with laws, stipulations for official approvaland other rules related to the environment. They ensurethat the relevant regulations and guidelines are stored in the
management system. If action is required, the environmental
officers must make the necessary arrangements, such as issuingprocedural and work instructions for their specific site.
Regular internal and external audits and compliance checks
are carried out to determine if all legal requirements are being
met. If an audit reveals that there is room for improvement,
ZEISS will respond by defining concrete measures. It is often
a challenge to ensure the timely implementation of thesemeasures, one which the company masters by defining clear
responsibilities and deadlines. The implementation of themeasures is verified in regular follow-up audits. The results
also feature in the annual management reviews. ZEISS expects
its business partners (as suppliers or service providers) tohave a direct business relationship with the company and its
production facilities and to fully comply with environmental
laws and regulations and the internal guidelines. The company monitors whether such contractual agreements are being
implemented by conducting on-site audits, both planned andas a result of specific incidents.

Chemical management
Through effective chemical management, ZEISS ensuresthat hazardous substances and materials are handled safely
throughout the entire process chain and, in doing so,
protects employees and the environment. The respective
system operators are responsible for handling chemicals safely.
These employees are supported by the on-site occupationalsafety specialists and environmental protection officers. A
substance database and list of hazardous materials form thebasis of the Group-wide information system for hazardous
substances used at the company. This is how ZEISS ensuresthat only chemicals that are registered for the EU in accordance with REACH (Registration, Evaluation, Authorization, andRestriction of Chemicals) are used and are authorized for use.
In addition, considerable care is taken to only use substancesthat have not been identified as substances of very highconcern whenever possible.
Material safety data sheets provide users with information on
how to safely handle chemical products, helping to ensurethat chemicals are used in a manner that is both safe andenvironmentally sound. ZEISS obligates its suppliers to makethe most up-to-date material safety data sheets available.
Before introducing new hazardous substances, ZEISS ensuresthat suppliers observe the list of prohibited and declarable
substances listed in a factory standard and requests the corresponding certificates of conformity.
Substance restrictions
To implement the EU directive on the Restriction of Hazardous
Substances (RoHS), ZEISS implemented the legal regulations in2005 with the help of a software application to monitor the

relevant chemicals. This software is now used in all
ZEISS segments. Suppliers must confirm that the suppliedmaterials, substances and mixtures are compliant with theapplicable directives, laws and regulations. The suppliers are
asked to submit certificates of conformity for verification.
They are a requirement for product approvals as part of the
CE conformity assessment process. With the CE marking,the manufacturer or distributor declares that the productmeets the applicable requirements. Conformity requires thatcertificates of conformity are available for all items in the parts
list for a product. In case of doubt, ZEISS will conduct its own
chemical analysis of the supplied parts.
Disposal
Modern technologies consist of complex mixtures of materials
and components. When not disposed of properly, they cancause major environmental and health issues. In accordancewith the European Union's Waste Electrical and Electronic
Equipment (WEEE) Directive, which governs the collection,
recycling, and recovery of electric and electronic devices,
ZEISS has entered into an EU-wide agreement with a disposal
contractor to ensure legally compliant disposal. The company
is registered as a commercial distributor of electrical andelectronic devices in all EU countries.
Targets
The company's top priority is to operate its facilities in a legallycompliant manner. This is associated with the objectives of
preventive emergency management and preventive maintenance, which saves retrofitting costs.

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05

SOCIAL ENGAGEMENT

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Company Profile
and Business Model

Derived from its responsibility as a foundationowned company, ZEISS promotes scientific andtechnological progress in its four segments andadvocates for better living conditions worldwide.
More than 130 years ago, the Carl Zeiss Foundation statutes
established a clear course. In addition to business growth
and accepting responsibility for the company's employees,
they stipulate high standards for social engagement and thecontinued promotion of science and education as a corporate
responsibility. ZEISS thus has the express company missionof using its core business to improve the lives of people everywhere.
Tasked with this duty, ZEISS assumes an active role in society
and makes an important contribution to sustainable develop­
ment at its sites. ZEISS works with cooperation partners andmakes financial and in-kind donations to scientific, cultural,social and environmental causes. As a global technology
leader, ZEISS stands for innovation and the spirit of research– giving its customers and partners the ability to perform attheir peak to improve the lives of countless people.
Structures, processes and results
Clear policies governing the ZEISS Group's social engagement
are in place. Three different organizational levels provide
sponsorship support. As the sole owner of the companies
Carl Zeiss AG and SCHOTT AG, the Carl Zeiss Foundation carries
out non-profit activities. Its non-profit activity is defined by theFoundation statutes and financed by the dividend payments

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

from the two companies. Particular attention is paid to providing sustainable, balanced support.
The ZEISS Group provides sponsorship as part of a definedprocess. The guidelines are laid out in an internal policy thatapplies to the entire company. One vehicle for supporting
scientific research and education, healthcare, nature conservation and regional companies is the ZEISS Promotion Fund. In
honor of the 20th anniversary of the reunification of the two
ZEISS companies, the ZEISS Promotion Fund was established,initially as a Site Fund to promote the main sites in Oberkochen
and Jena. Since 2011, the company has been utilizing the ZEISS
Promotion Fund to sponsor newcomers in the natural sciences,from preschool children right up to PhD students, as well associal and cultural projects.
Fund managers oversee the funding budget and the applications for sponsorship. Together with the relevant colleagues
from the different corporate functions, they decide whichapplications for donations or sponsoring to accept in accordance with the budget, and consult with the Executive Boardof the ZEISS Group as needed.
The third level comprises initiatives that are launchedthrough global employee civic engagement. These activities
usually receive indirect support from ZEISS, and the company
and managers show their sincere appreciation to the employees
involved in the form of credited working hours and the opportunity to organize using the company's internal structures.
In fiscal year 2019/20, the ZEISS Promotion Fund invested
almost one million euros to sponsor around 107 projects

3
Employees

4
Environment

5SocialEngagement(previous year: 1.1 million euros for 150 projects). The dropin the number of projects and funding is due to the factthat fewer sponsorship requests were submitted during the
COVID-19 pandemic.
ZEISS' social engagement was honored by the GemeinwohlAtlas
study. In 2019, the company was included in the study on thegeneral population's perception of the public value of companies and organizations for the first time. ZEISS was ranked
number one among all companies.
Sponsorship areas
Social engagement at the ZEISS Group promotes research andeducation, healthcare, nature conservation and societal topics.

Eye Exams for Children with Albinism
People with albinism not only have less melanin in theirskin, but also often suffer from visual impairment, limited
spatial vision and are near- or far-sighted. This prompted
ZEISS to partner with the Ruta de la Luz Foundation to
improve eye care for children with albinism in Kabanga(Tanzania). For two years, optometrists have been examining such children free of charge and providing themwith eyeglasses to improve their vision and completely
protect their eyes against harmful UV radiation. Around
650 eye exams have already been performed, and glasses
with special filters supplied for light-sensitive eyes.

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Company Profile
and Business Model

Scientific research and education
ZEISS in Germany uses the Education and Science Fund established in 2012 under the umbrella of the ZEISS Promotion Fundto sponsor newcomers in the natural sciences. The spotlightis on education initiatives for young people – primarily highschool students who have not yet chosen a degree programand college graduates who have not yet entered the world ofwork – and on encouraging them to develop their scientificskills and take part in projects and initiatives at universities andresearch institutes. The focus is on the natural sciences andengineering, particularly optics and photonics.

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

The ZEISS Innovation Hub @ KIT, which opened on the campusof the Karlsruhe Institute of Technology (KIT) in spring 2020,
also helps shape technological progress. The Hub will attract
high-tech and digital start-ups and drive the development ofinnovation (see page 3).

up with non-governmental organizations, foundations andsmall local businesses to deliver basic eye care to remote partsof rural India. Thanks to these partnerships, user-friendly digitalplatforms and an optimized supply chain, the Aloka Vision
Program has made it possible to perform several thousand
eye exams a month and supply glasses or eye care to patientsas needed. In addition to setting up a basic infrastructure, itis essential to train small business owners and educate thepopulation. After all, eyeglasses for the correction of defective
vision are still often considered a luxury or even unnecessary.
In response to the COVID-19 pandemic and the lockdown inIndia, all of these activities were put on hold. NGOs and ZEISS
focused on the essentials: providing food to families who losttheir source of income due to the lockdown and simul­taneously
occurring natural disasters. But the Aloka Vision Program has
now adapted its processes to comply with the relevant hygiene
practices and ZEISS has resumed the initiative.

Healthcare
ZEISS is raising the bar in healthcare by offering solutions forophthalmology and medical technology and helps to drive
medical progress with microscopy products. Its mission is tohelp improve the lives of patients everywhere. Further, ZEISS
makes financial and in-kind donations in the form of ZEISS
products and solutions through a variety of different projects
in order to give people around the globe access to high-quality
medical care. One example of ZEISS' long-term commitment
to improving global health is the Back to Bush program that was
launched in 2007, which gives people living in disadvantaged
areas, particularly the outback regions of Australia and Oceania,
access to better surgical equipment. The Aloka Vision Program
pursues a similar cause. Since 2015, ZEISS has been teaming

Nature conservation
For ZEISS, protecting plant and animal species is particularly
important. Binoculars and spotting scopes from ZEISS have an
excellent reputation among nature lovers around the globe
and they enable people to get closer to nature. In collaboration with professional associations, the company supports
numerous nature conservation activities, educational programsfor children and adults, and research programs to protect
endangered animal species. ZEISS also sponsors BirdLife Inter­national's scientific work on the Red List of Birds. The partnership among multiple bird conservation organizations with a
total of 13 million members uses the list to record all endangered bird species, including their conservation status. The
figures are reported to the International Union for Conservation

3
Employees

4
Environment

5SocialEngagement

Training Centers in India and Uganda
In emerging countries, people often lack access to adequate medical care. One example is cataracts, which canbe treated but affect around one-third of blind people
worldwide. That is why in remote regions in particular, thetraining and continuing education of ophthalmologists
and medical personnel are a key aspect of the fight against
preventable blindness. Together with the Christoffel
Mission for the Blind (CBM) and a local partner, the Poona
Blind Men's Association, ZEISS opened a new training
center for treating cataracts in Pune, India, in 2019. The
center's mission is to train ophthalmologists and medical
personnel throughout the country in phacoemulsification,a modern surgical technique. Twenty doctors were alreadytrained in the new training center in 2019. In Kyamulibwa(Uganda), ZEISS and the Development Service for German
Eyecare Professionals (Entwicklungsdienst Deutscher Augenoptiker, EDA) have also opened a training center. Eight
local experts have been successfully trained there sinceAugust 2019.

of Nature and Natural Resources (IUCN) and used as the basis
for effective conservation efforts.
Regional involvement
ZEISS' strong position and a portfolio targeted to mega trends
have ensured stability during the COVID-19 pandemic andcontinue to lead to investment in innovations and digitaliza-

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Company Profile
and Business Model

Outstanding Protection of Animals
Since 2015, ZEISS has supported Rhino Conservation
Awards, which were also presented in four categories
on World Ranger Day in 2020. The focus was originallyon the conservation of endangered species and not juston protecting rhinos. Due to the COVID-19 pandemic,
the awards ceremony was held online and on various
social media channels. The awards have been presented
annually in South Africa since 2012 and aim to raiseawareness for conservation. They honor those who
actively campaign for the conservation of endangered
animal species. The winners in 2020 include SamuelLoware from the Uganda Wildlife Authority and Don
English from the South African National Parks.
Mr. Loware has used effective surveillance and data
capture to ensure that the giraffe and lion populations
in Kidepo Valley National Park grow and Mr. English
plays a leading role in the fight against rhino poachers
in the Kruger National Park.

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chaintion, and expansion of a modern infrastructure. This creates
new jobs and vocational training positions, and also generates
contracts for local suppliers in fields other than high technology.
The company's development and production services forcustom­ers in the individual regions therefore enable scientific,
technological, social, medical and environmental services togrow.
In Germany, the ZEISS Site Fund supports regional projects,
under the umbrella of the ZEISS Promotion Fund. The sponsorship program covers the company's German sites in Aalen,
Göttingen, Jena, Oberkochen and Wetzlar.

3
Employees

4
Environment

5SocialEngagement

Assisting with Intubation for COVID-19
Patients
Since the start of the pandemic, the ZEISS Medical
Technology segment has been working on solutions thatshield medical staff from infections. The ZEISS NURA
video laryngoscope, for example, enables healthcare professionals to maintain a greater distance between themselves and patients, thereby reducing the risk of infection.

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BACK TOCONTENTSGRI Content Index

The report was made available to the GRI for review by the GRI Materiality Disclosures Service.
The GRI Services Team has confirmed the correct placement of the Materiality Disclosures (102-40 to 102-49) in the report.

GRI Standard

Page Reference

Comments

GRI 101: Foundation 2016
GRI 102: General Disclosures 2016

Organizational Profile
GRI 102-1: Name of the organization

P. 8

GRI 102-2: Activities, brands, products, and services

PP. 8-10

GRI 102-3: Location of headquarters

P. 8

GRI 102-4: Location of operations

P. 8

GRI 102-5: Ownership and legal form

P. 8

GRI 102-6: Markets served

PP. 8, 10, 33

GRI 102-7: Scale of the organization

PP. 2, 8, 43; Annual Report 2019/20: P.48

GRI 102-8: Information on employees and other workers

P. 43

GRI 102-9: Supply chain

PP. 12, 36-38

GRI 102-10: Significant changes to the organization and its supply chain

No significant changes during the reporting year

GRI 102-11: Precautionary Principle or approach

PP. 28-30, 33, 34, 52; Annual Report 2019/20: P.37

GRI 102-12: External initiatives

PP. 15, 17, 23

GRI 102-13: Membership of associations

PP. 17, 30

Strategy
GRI 102-14: Statement from senior decision-makerP. 5

GRI 102-15: Key impacts, risks and opportunities

PP. 14-22, 58, 59

Ethics and Integrity
GRI 102-16: Values, principles, standards, and norms of behavior

PP. 14, 28, 29

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Governance
GRI 102-18: Governance structure

PP. 11, 39; Annual Report 2019/20: P. 17,18,20

GRI 102-19: Delegating authority

PP. 15, 16, 28, 30, 52, 53

Stakeholder Engagement
GRI 102-40: List of stakeholder groups

PP. 6, 17

GRI 102-41: Collective bargaining agreements

P. 42

GRI 102-42: Identifying and selecting stakeholders

PP. 16

GRI 102-43: Approach to stakeholder engagement

PP. 16-18, 42

GRI 102-44: Key topics and concerns raised

PP. 16, 18

Reporting PracticeGRI 102-45: Entities included in the consolidated financial statements

P. 6; Annual Report 2019/20: PP. 101-106

GRI 102-46: Defining report content and topic boundaries

PP. 18

GRI 102-47: List of material topics

PP. 19-22

GRI 102-48: Restatements of information

None

GRI 102-49: Changes in reporting
GRI 102-50: Reporting period

None
P. 6

GRI 102-51: Date of most recent report

January 2020

GRI 102-52: Reporting cycle

P. 6

GRI 102-53: Contact point for questions regarding the report

P. 72

GRI 102-54: Claims of reporting in accordance with the GRI Standards

P. 6

GRI 102-55: GRI content index

PP. 65-71

GRI 102-56: External assurance

None

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Material issues
GRI Standard

Page Reference

Comments

GRI 201 Economic Performance 2016
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 12, 14, 15, 62

GRI 201-1: Direct economic value generated and distributed

PP. 2, 8, 62; Annual Report 2019/20: P. 46

GRI 201-2: Financial implications and other risks and opportunities due to climatechangeP. 58, 59

GRI 203 Indirect Economic Impacts 2016
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 12, 14, 22, 24, 62-64

GRI 203-1: Infrastructure investments and services supported

PP. 25, 62-64

GRI 205 Anti-corruption 2016
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 19, 28-30

GRI 205-2: Communication and training about anti-corruption policies andprocedures

PP. 28-30

GRI 206 Anti-competitive behavior 2016
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 19, 28-30

GRI 206-1: Legal actions for anti-competitive behavior, anti-trust, and monopoly
practices

ZEISS does not report on legal actions for anti-competitive
behavior, anti-trust or monopoly practices as these disclosures are
subject to confidentiality agreements.

GRI 302 Energy 2016
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 21, 26, 34, 35, 52-54, 56, 57, 59

GRI 302-1: Energy consumption within the organization

P. 57

GRI 302-3: Energy intensity

P. 57

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GRI 303 Water and Effluents 2018
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 21, 34, 35, 52-55

GRI 303-1: Interactions with water as a shared resource

P. 53

GRI 303-2: Management of water discharge-related impacts

P. 53

GRI 303-5: Water consumption

P. 55

Currently, ZEISS does not report on water extraction or water
consumption broken down by source and regions of water
stress. It does not differentiate between fresh water and otherwater. This information is collected at individual sites but is
impossible to consolidate to yield worldwide statistics.

GRI 305 Emissions 2016
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 21, 26, 35, 38, 52, 56-59

GRI 305-1 Direct (Scope 1) GHG emissions

P. 57

GRI 305-2: Energy indirect (Scope 2) GHG emissions

P. 57

GRI 305-4: GHG emissions intensity

P. 57

GRI 306 Effluents and Waste 2016
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 21, 34, 35, 52-55

GRI 306-2: Management of significant waste-related impacts

P. 55

GRI 307 Environmental Compliance 2016
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 14, 15, 21, 60

GRI 307-1: Non-compliance with environmental laws and regulations

ZEISS was not informed of any relevant incidents during thereporting period.

GRI 308 Supplier Environmental Assessment 2016
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 19, 25, 36-38, 60

GRI 308-1: New suppliers that were screened using environmental criteria

P. 36

GRI 308-2: Negative environmental impacts in the supply chain and actions taken

PP. 36-38

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GRI 401 Employment 2016
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 20, 42-44

GRI 401-1: New employee hires and employee turnover

PP. 43Currently, ZEISS cannot report the turnover outside Germany as
this data is not available. The company has started collecting therelevant data. Thus far, ZEISS has not reported any data on newhires as the data was not collected in a consistent manner. In FY
2019/20, data collection was adjusted to allow ZEISS to reporton new hires as of FY 2020/21.

GRI 402 Labor/Management Relations 2016
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 20, 42, 43

GRI 402-1: Minimum notice periods regarding operational changes

P. 42

GRI 403 Occupational Health and Safety 2018
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 20, 48-50

GRI 403-1: Occupational health and safety management system

PP. 48, 49

GRI 403-2: Hazard identification, risk assessment, and incident investigation

PP. 48, 49

GRI 403-3: Occupational health services

P. 48

GRI 403-4: Worker participation, consultation, and communication on occupational
health and safety

P. 48

GRI 403-5: Worker training on occupational health and safety

PP. 48, 49

GRI 403-6: Promotion of worker healthPP. 48, 49

GRI 403-7: Prevention and mitigation of occupational health and safety impacts
directly linked by business relationships

P. 60

GRI 403-9: Work-related injuries

P. 49, 50

Since the LTIFR target applies until 2023 and is control-related,
ZEISS shall continue reporting this key figure in the interestsof comparability. At this time, no predictions can be made as
regards the collection and reporting of further data on workrelated injuries. Currently, ZEISS cannot report the numberof work-related accidents for non-ZEISS employees because
this data is not available. The data collection planned for FY
2019/20 was postponed due to the COVID-19 pandemic andwill now be launched in FY 2020/21.

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GRI 404 Training and Education 2016
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 20, 42, 44, 45

GRI 404-1: Average hours of training per year per employee

P. 45

GRI 405 Diversity and Equal Opportunities 2016
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 20, 42, 46, 47

GRI 405-1: Diversity of governance bodies and employees

PP. 39, 43, 47; Annual Report 2019/20: P. 4–5, 20

GRI 406 Non-discrimination 2016
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 20, 42, 46

GRI 406-1: Incidents of discrimination and corrective actions taken

ZEISS does not report on cases of discrimination and corrective
action taken as any disclosures on these matters are subject toconfidentiality agreements.

GRI 407 Freedom of Association and Collective Bargaining 2016
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 19, 20, 36, 39, 40, 42, 43

GRI 407-1: Operations and suppliers in which the right to freedom of association andcollective bargaining may be at risk

PP. 36-40, 42

GRI 408 Child Labor 2016
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 19, 36-40
During the reporting period, ZEISS was not informed of any
significant risks of child labor incidents at sites belonging to
ZEISS or its suppliers.

GRI 408-1: Operations and suppliers at significant risk for incidents of child labor

GRI 409 Forced or Compulsory Labor 2016
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)
GRI 409-1: Operations and suppliers at significant risk for incidents of forced orcompulsory labor

PP. 19, 36-40
During the reporting period, ZEISS was not informed of any
significant risks of forced or compulsory labor incidents at sites
belonging to ZEISS or its suppliers.

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GRI 413 Local Communities 2016
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 22, 24, 62-64

GRI 413-2: Operations with significant actual and potential negative impacts on local
communities

PP. 52, 60

GRI 414 Supplier Social Assessment 2016
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 19, 25, 36-40

GRI 414-1: New suppliers that were screened using social criteria

P. 36

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

PP. 36-40

GRI 415 Public Policy 2016
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 19, 30

GRI 415-1: Political contributions

P. 30

GRI 416 Customer Health and Safety 2016
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 19, 33-35

GRI 416-1: Assessment of the health and safety impacts of product and service
categories

PP. 33-35

GRI 416-2: Incidents of non-compliance concerning the health and safety impacts ofproducts and services

ZEISS was not informed of any relevant incidents during thereporting period.

GRI 418 Customer Data Privacy 2016
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 19, 28-31

GRI 418-1: Substantiated complaints concerning breaches of customer privacy andlosses of customer data

ZEISS was not informed of any relevant incidents during thereporting period.

GRI 419 Socioeconomic Compliance 2016
GRI 103: Management approach 2016 (including 103-1, 103-2, 103-3)

PP. 19, 28-31

GRI 419-1: Non-compliance with laws and regulations in the social and economic area

Annual Report 2019/20: PP. 39, 40

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BACK TOCONTENTS

Legal Information

DesignAndreas Hauber,
Corporate Brand & Communications

Disclaimer
This report contains certain forward-looking statements concerning the development of the ZEISS Group. At thepresent time, ZEISS assumes that theseforward-looking statements are realistic.
However, such forward-looking statements are based both on assumptions
and estimates that are subject to risks
and uncertainties, which may lead to theactual results differing significantly fromthe expected results. ZEISS therefore
assumes no liability for such deviations. There are no plans to update theforward-looking statements for events
that occur after the end of the reporting
period.

Concept and Text
akzente kommunikation undberatung GmbH

Mathematical rounding may lead toperceived calculation discrepancies in thisSustainability Report.

Carl Zeiss AG
73446 Oberkochen, Germany
Phone: +49 (0) 73 64 20-0
Fax: +49 (0) 73 64 20-68 08
E-mail: responsibility@zeiss.com
www.zeiss.com
Editor-in-Chief
Florian Proksch, Dr. Roya Akhavan,
Strategic Corporate Development
Melanie Kiefer,
Corporate Brand & Communications72