Thinking andacting sustainably

Sustainability Report 2021/22
ZEISS GroupKPIs fromfiscal year 2021/22(1 October 2021 until 30 September 2022)

210

new vocational trainees and dual students
enrolled in Germany

296

More thanmanagers andoccupational health and safety (OHS) officers
were trained in the use of new OHS software

1.7 million euros in funding from

Carl Zeiss AG and the Carl Zeiss Promotion Fundfor around 113 projects at the sites in Germany

Results70%

reduction in CO₂ emissions
compared to the 2018/19 fiscal year

More than

38,000employees in almost 50 countries

Revenue in fiscal year

8.8 billion euros
2020/21 7.5 billion euros
2021/22

14%

reduction in energy use
relative to value added comparedto the 2018/19 fiscal year

25%

reduction in water consumption
relative to value added comparedto the 2018/19 fiscal year

29%

Waste reduction(relative to value added) comparedto the 2018/19 fiscal year2Contents

2	KPIs fromfiscal year 2021/22
3

Contents

4

Foreword by the Executive Board

5

Sustainability Insights

6

About the Report7	Company Profile andBusiness Model
8
ZEISS at a Glance
9
The Four Segments and Their Products
11 Business Model
12 Corporate Governance
14 Strategy and Sustainability
15 Focus Topics and Strategy
16	Organizational Structure for Sustainability
19 Results of the Materiality Analysis
20	Sustainability at ZEISS –Progress of the Activity Fields
25	How ZEISS Contributes to the Global
Sustainable Development Goals

30
31
33
33
33
34
35

01

Integrity and Compliance
Compliance
Anti-Corruption
Political Influence
Data Privacy
Information Security
Tax

0236	Products and Value Chain
37 Product Development
38 Product Safety
40 Procurement and Supplier Management
43	Focusing on Human Rights Due
Diligence43	Implementation and Preparation for
the Requirements of the German
Supply Chain Act

03

45 Employees
46 Success through Employees
46 Employee Involvement
48 Attracting and Developing Employees
50 Diversity and Equal Opportunities
53 Work-life Balance
54	Occupational Healthand Safety

57
58
62
65
67

68
69

05

Social engagement
Social and Societal Engagement73

GRI Content Index

85

Legal Information

04

Environment
Efficient Use of Natural Resources
Climate Protection at ZEISSFocus on Climate Risks
Environmental Compliance3

BACK TOCONTENTS

Foreword by the Executive Board
would not have been possible to get throughthis period successfully.

Dr. Karl Lamprecht

Ladies and Gentlemen,dear Readers,Last year was not easy for many reasons.
The geopolitical situation was economicallychallenging and is also felt in the personalenvironment.
Nevertheless, we the ZEISS Group, can lookback on another successful fiscal year: ourannual revenue of around 8.8 billion euros ishigher than it has ever been in our long history. My thanks go to our more than 38,000
employees for their high degree of flexibility,
considerable achievements, and high levelof personal commitment. Without that, it

We can be satisfied with both the development of our business and the major steps wetook toward sustainable management in
the past fiscal year. A commitment to thecommon good and to finding solutions forkey societal issues are part and parcel ofthe company’s ethos. Our goal is to embedsustainability ever more firmly in our culture
at ZEISS and in the everyday lives of ouremployees.
Both economic success and sustainability
are founded upon the same factor: our innovative strength. With the will to always break
new ground, we support our customers inresearching, helping people or developing
pioneering products. The question as towhy innovation is our driving force to sucha high degree can be answered simply: as afoundation company, we take responsibility
for the world in which we live. That is also
why sustainability is a central component ofour corporate strategy, the #agenda25. The
focus here is on the three topics of climate
action, circular economy and value forsociety.
Our work over the last few years is alreadyshowing very gratifying results already today.

In fiscal year 2021/22, for example, we madegood progress toward our goal of becoming carbon-neutral in our own operations
worldwide by 2025. A major contribution tothis was made by the global procurement ofgreen electricity, which enabled us to almost
cover the energy requirements of our sites.
The amount of self-generated renewableenergy has also increased, helping make us
more resilient to upcoming challenges.
Our segments' product development processes were fine-tuned in terms of sustainability in the reporting year. For example,
the assessment of various sustainability
requirements along the product life cycle,
such as durability, recyclability and emissions
reduction, became increasingly important.
In order to further successfully align the company's development and accelerate the transformation of the digital infrastructure of theZEISS Group, the Supervisory Board of Carl
Zeiss AG resolved to expand the Executive
Board to include the function of Chief
Transformation Officer (CTO) and to appoint
Susan-Stefanie Breitkopf to the Executive
Board for this purpose effective 1 July 2022.
Among other things, she is responsible foraccelerating the transformation of the ZEISSGroup's digital infrastructure, which, inturn, affects our sustainability performancethrough more efficient operating processes
for example.
Sustainable actions and business activities
are to be measured by their ability to create
value for society. Our "A Heart for Science"
initiative for the future, which we launched in
the year of our 175th anniversary, is a shining
example of this, as the initiative is helping toawaken enthusiasm for STEM subjects among
young people aged between 12 and 18. In
our future lives, these young people will be
indispensable in developing
innovations to benefit humanity. With initiatives like this, we are helping to shape afuture that we look forward to with optimism.
Yours,
Karl Lamprecht

Dr. Karl Lamprecht
President and CEO of Carl Zeiss AG

4

BACK TOCONTENTS

Sustainability Insights
How innovative solutions help to make thefuture more sustainable.
The new Sustainability Insights booklet introduces promisingprojects and the people behind them. They show, fromvarious perspectives, how ZEISS products and solutions playtheir part in a sustainable future and how ZEISS puts diversity
and cooperation into practice. This makes it tangible thatat ZEISS, business success and sustainable management
and practices are inextricably linked. Our people live this
responsibility, which is made possible by collaboration bothwithin and outside ZEISS.
This is reflected in a large number of projects that aim forenergy and water reduction or to use more recycled raw
materials: a 3D printer for ceramic components operates with
40% less energy - thanks to a partnership between ZEISS andone of its suppliers. In India, 95% of the water used in the
production of eyeglass lenses is recycled. And by making
product bags from recycled PET bottles, over 16,000 bottles
were recycled in 2021 alone.

More information in the ZEISS Sustainability Booklet

5

BACK TOCONTENTS

About the Report
This Sustainability Report is intended for the ZEISS Group’s
customers, business partners, employees and investors. We
also want to address interested stakeholders from business,science, politics and society, and especially the people livingin the vicinity of the sites. The report illustrates how thecompany contributes to sustainable development, which goals
it has set for itself, which structures have been put in place
and what actions it has taken. The report also addresses thecompany's legal obligations in different areas.
This Sustainability Report references fiscal year 2021/22(1 October 2021 to 30 September 2022). All relevant departments were involved in its preparation, and the report has
been approved by the Executive Board. Unless stated otherwise, this report applies to the entire ZEISS Group as per
the bases of consolidation for financial reporting, see theAnnual Report 2021/22 p. 54.
The report was prepared to comply with the standards set
out by the Global Reporting Initiative (GRI), the internationallyrecognized framework for sustainability reporting. The ZEISSGroup publishes its Sustainability Report annually. This report
was published on 7 February 2023.

6

BACK TOCONTENTSCOMPANY PROFILE AND
BUSINESS MODEL

7

BACK TOCONTENTS

Company Profile
and Business Model

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

ZEISS at a Glance
ZEISS 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 chip industry to manufacture semiconductor
components, and for its internationally renowned
ZEISS branded products, including eyeglass lenses, camera lenses and binoculars.
With over 38,000 employees, ZEISS operates in almost 50
countries worldwide with around 60 sales and service companies, 30 production sites and 30 research and development
facilities. 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 the promotion 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 abusiness portfolio that is divided into nine strategic business
units. The strategic business units are assigned to the relevant
segments. In fiscal year 2021/22, the ZEISS Group generated
revenues of 8.8 billion euros (in 2020/21: 7.5 billion euros).
The Annual Report 2021/22 provides information on the economic framework for the company's development and lists theGroup's revenue by region in the Report on Economic Position.

More than100

sites worldwide

13

Over

5,200

percent ofrevenues
invested inresearch anddevelopment

employees in
research and development
Around10,500patents 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

MedicalTechnology

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

Semiconductor Manufacturing Technology
With its product portfolio and globally leading expertise, theSemiconductor Manufacturing Technology segment covers avariety of key processes in the production of microchips. ZEISSdevelops and manufactures products using semiconductor
manufacturing technology, including lithography optics, photomask systems, and process control solutions, key technologies
for the manufacture of extremely fine circuit path structureson silicon wafers – the material from which the microchips
are made. ZEISS technologies enable the continued miniaturi­
zation of semiconductor structures, resulting in smaller
microchips that are more powerful and more energy-efficient.
These applications foster global advancement in a variety of
disciplines, including technology, electronics, communications,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
and manipulating the tiniest of structures in the areas ofscience and research. The range of coordinate measuringmachines, optical and multi-sensory systems, software
solutions, comprehensive service offerings and innovativetechnologies such as 3D X-ray measurement in quality
assurance, are used in the automobile industry, aircraft
construction and mechanical engineering as well as in theplastics industry and medical technology. In the areas ofscience and research, the segment covers the complete
range of microscopy solutions with light, ion, electron and
X-ray microscopy systems. The products and solutions areused in biomedical sciences and materials research, as wellas in workflows in the electronics and pharmaceuticals
industries.
Medical Technology
The Medical Technology segment develops, manufactures,
markets and sells diagnostic and treatment systems, aswell as implants and consumables for ophthalmology. Its
portfolio also includes visualization systems for neurosugery,
ENT surgery and spine surgery, and dentistry. Solutions for
intraoperative radiotherapy supplement the product offering. The segment aims to drive progress in medicine andassist doctors all over the world in improving their patients'
quality of life. Digital technologies with which the segment
wants to shape the market for medical technology also
play a role here.

9BACK TOCONTENTS

Company Profile
and Business Model

Consumer Markets
The Consumer Markets segment operates in the areas of visioncare, photography, cinematography, nature observation andsports optics. ZEISS develops, produces and sells solutions forthe entire eyeglass value chain. Alongside ZEISS precision
eyeglass lenses, this includes devices for eye examination andvision testing, digital consultation and measurement applications and comprehensive services for eye care professionals.
ZEISS is one of the world's largest manufacturers of eyeglass
lenses and offers a combined competence in eye and visioncare. With its camera and cine lenses, Smartphone photography
technology, binoculars, spotting scopes and sports optics,
ZEISS offers discerning customers high-end products andapplications for their hobbies and professional needs.

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Consolidated revenue by segment
Revenue by segment

2021/222020/21

Change compared to prior year as a %Adjusted for currency influences€ million€ million

Semiconductor Manufacturing Technology

2,757

2,298

20

19

Industrial Quality & Research

2,066

1,801

15

10

Medical Technology

2,251

1,951

15

9

Consumer Markets

1,569

1,394

13

7

Other
ZEISS Group

111

85

31

32

8,754

7,529

16

12

2021/222020/21

Change compared to prior year as a %€ million€ million

Adjusted for currency influences

2,090

1,953

7

7

Consolidated revenue by region
Revenue by regions
and cooperation partners

Europe, Middle East, Africa (EMEA)

661

602

10

10

Americas» of which Germany

1,679

1,416

19

9

Asia/Pacific (APAC)

2,467

2,020

22

15

Cooperations

2,518

2,140

18

18

ZEISS Group

8,754

7,529

16

12

10

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. The objective of portfolio
management is to ensure the sustainable business success of
the ZEISS Group. In keeping with this, the corporate strategy
is aligned with ongoing value increases. The ZEISS mission
statement is: "As the pioneer of science in optics, we continue to challenge the limits of our imagination. With our
passion for excellence, we create value for our customers
and inspire the world to see in new ways."
In fiscal year 2020/21, the new ZEISS Agenda defined
new focal points: #agenda25 uses the Focus Fields shapemarkets, build networks and create impact to gain specificimpetus for the strategic advancement of the ZEISS Group.
It brings together the key elements of the portfolio strategy
and those of each segment. The ZEISS Agenda underscores
ZEISS' aspiration to be a global technology leader and a market shaper. The global Team ZEISS can use these Focus Fields
to help shape its customers' success.
Products and solutions
Optics and optoelectronics are two of the key technologies of the future. Technological and scientific applications
will make ever more inroads into our lives and continue toimprove people's quality of life. When developing new technologies and solutions, ZEISS partners with renowned universities, research institutes, customers and experts throughglobal networks. Suppliers and business partners around theworld play a pivotal role in ZEISS’ products and services andthus strongly impact the company’s sustainability performance. ZEISS develops the products and solutions itself.

When it comes to manufacturing, the ZEISS Group segments
collaborate with partners that supply either complete products or key components. Depending on the business, market, and customer segment, ZEISS uses different distribution
channels including around 60 sales and service companies(SSCs) on all continents, direct sales and distributors to provide all regions with access to ZEISS solutions. ZEISS relies onlong-standing partnerships with customers worldwide andoffers customer segment-dependent business models suchas project orders or end-to-end processes through to various
maintenance and service options. More information about
added value and the supply chain can be found on
pages 36-44.
Business development and investments
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,the company has a direct impact on the future-oriented
development of different regions and the people who live
there (see page 72). ZEISS invests 13 percent of its revenue(2020/2021:13) in research and development, and uses
patents to retain its innovative edge. At the end of the reporting period, ZEISS held around 10,500 patents worldwide(prior year: approximately 10,900). In the reporting period,
the company applied for new patents for approximately 638
inventions (prior year: approximately 500).
Drivers of innovation
Through its research and development work, and the innovations this spawns, ZEISS helps its customers be efficient andsuccessful. These innovations are however placed within thecontext of society as a whole. The optical and optoelectronic
technologies from ZEISS pave the way for new scientific findings and many innovations in other industries. Life sciences
like bionics and medical technology will become more andmore vital for a modern society. The advancing 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. To promote its products'
environmental sustainability, in its approach to sustainable
governance and in its sustainability strategy ZEISS is focusing
on aspects such as ensuring greater resource efficiency andincreased deployment of closed-loop waste management as
part of the product development process. Further information is available in the chapter titled "Products and Value
Chain" on page 36.

ZEISS Partners with ResearchersZEISS has a long tradition of high expenditure on researchand development. This is our investment in the future.
Robert Koch, Christiane Nüsslein-Volhard, Eric Betzig, Stefan
W. Hell and 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.

11

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 seven-member Executive Board of the unlisted
Carl Zeiss AG manages the company and the Executive Board
members divide their tasks along the departmental allocation
plan. A new role, Chief Transformation Officer (CTO), wascreated for the Executive Board of Carl Zeiss AG in July 2022.
The Executive Board is appointed and overseen by the Supervisory Board. In accordance with the provisions of the German
Co-Determination Act (Mitbestimmungsgesetz), it subject toequal representation and currently comprises 16 people. Half
its members represent the sole shareholder – the Carl Zeiss
Foundation – while the other half represents the employees.
Six of the employee representatives are elected by the employees and two are appointed by the unions. The selection
process for the Executive Board and Supervisory Board ensuresthat members have the knowledge, skills and professional
experience required to properly perform their duties.
The special ownership structure with the Carl Zeiss Foundation as the sole shareholder ensures stability and enables thecompany to create long-term perspectives, as the Foundation
statutes prohibit the sale of shares through an initial public
offering, for example. More about the background of theFoundation can be found in the next but one section.
The Foundation’s statutes govern the activities and accounting of its subsidiaries as well as the duties of the Executive
Board and the collaboration between the Executive andSupervisory Boards. For example, when determining total
remuneration paid to the individual members of the Executive
Board, including any severance or pension payments, theSupervisory Board must ensure that the compensation paid iscommensurate with the duties and performance of the board
member and the company’s financial position. The procedure
for evaluating the performance of the Executive Board isbased on the economic success of ZEISS.
The framework for defining responsible and compliant corporate governance at the company is set by the ZEISS Identity,
Code of Conduct, governance and compliance guidelines,
leadership principles and corporate directives.
Committees of the Supervisory Board
The Supervisory Board's Audit Committee met three times
as scheduled in the reporting year. It evaluated the efficacyof risk management and discussed the topics compliance,internal auditing, the internal control system, accounting andthe key issues of the annual audit, as well as the annual andconsolidated financial statements. The Chairman’s Committee
convened four times. The achievement of targets and Executive
Board remuneration were subject to regular review. The
Mediation Committee did not convene during the reportingyear. On 1 September 2022, the Supervisory Board formed a
Digital Committee which met for the first time on 20 October2022.
In the past fiscal year, the Supervisory Board oversaw andadvised the Executive Board in accordance with the duties entrusted to supervisory boards by law, the articles of association
and rules of internal procedure. The Supervisory Board was

involved in all decisions of importance and passed the resolutions required by law, the articles of association and rules ofinternal procedure. The decisions of the Supervisory Board werebased on the reports and decisions proposed by the Executive
Board, which the Supervisory Board subjected to in-depth
scrutiny.
The Carl Zeiss Foundation
The Carl Zeiss Foundation is the sole owner of Carl Zeiss AG.
This special ownership structure ensures stability and enables
the company to create long-term perspectives. The Foundation
statutes prohibit the sale of shares through an initial public
offering, for example. In 1889, physicist and entrepreneur Ernst
Abbe created the Carl Zeiss Foundation to which both Carl Zeiss
AG and SCHOTT AG belong. The objectives of the Foundation
remain valid to this very day:» Safeguarding the future and responsible management of
the two Foundation companies» Fulfilling its special responsibility toward employees» Meeting its responsibility toward society through the commitment of its member companies to non-profit activities in theirsurrounding regions» Promoting science
With this unique corporate model, the Foundation and its
two member companies made industrial and social history inGermany. Since 2004, the Foundation has received dividendsof 429 million euros from Carl Zeiss AG. The Foundation
uses the dividends generated by Carl Zeiss AG and SCHOTT
AG to promote science – particularly the natural and engineering sciences, mathematics and information technology – at

12

BACK TOCONTENTS

Company Profile
and Business Model

universities in the German federal states of Baden-Württemberg,
Rhineland-Palatinate and Thuringia. Today, the Carl Zeiss
Foundation is one of Germany's largest foundations focusedon the promotion of science. Since the end of 2021, theFoundation has also been specifically promoting the technicalside of sustainability with the focus topic "Resource Efficiency".
Currently, 34 research projects with an invested funding budgetof 58 million euros are running on the topics of "Fair raw
materials for new technologies", "Sustainable material innovations", "Resource-conserving digitalization" and "Energy
systems of the future". The focus of the Foundation's work is
on promoting interdisciplinarity and transdisciplinarity, putting
knowledge into practice, and anchoring resource efficiency
and sustainable development in teaching.
Further information:www.carl-zeiss-stiftung.de/english

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Foundation acting as a shareholder
Heidenheim an der Brenz and Jena
100%

100%

Foundation-owned
company

Foundation-owned
company

Carl Zeiss AG
Oberkochen

SCHOTT AG
Mainz

Subsidiaries

Subsidiaries

13

BACK TOCONTENTSSTRATEGY ANDSUSTAINABILITY

14

BACK TOCONTENTS

Company Profile
and Business Model

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Focus Topics and Strategy
As a foundation-owned company, sustainability
and business success are inextricably linked at
ZEISS. ZEISS aims to anchor sustainable value
creation as an integral part of its businessactivities, which focus on innovative solutions
that contribute to positive development insociety and enable long-term, profitable
growth. This approach contributes greatly tothe trust that customers place in the ZEISS
brand. This is also the reason why ZEISS actively
funds research and teaching and helps addresssocial and health problems.

Sustainability in the corporate strategy
ZEISS' commitment to sustainability is firmly anchored in its
strategy. The strategy also aims to improve the company'ssocial and environmental impact, view sustainability as a value
driver and leverage sustainability challenges as opportunities.
ZEISS will focus on three strategic topics:
Climate ActionZEISS aims to operate in a carbon-neutral way in
its own activities by 2025. Furthermore, ZEISS
will be looking at the emissions in its upstream value chains.
The company also intends to use energy as efficiently as possible. Here, too, ZEISS has set specific targets to be met
by 2025.
Circular Economy
ZEISS strives for a circular use of resources with aview to reducing the impact on the environment.
To achieve this, more renewables and recycled materials will
be deployed and loops closed. Water consumption and theamount of waste are set to be further reduced.
Value for SocietyWith its products and solutions, ZEISS also wants
to generate added value for a more sustainable
society. This includes providing as many people as possible
with access to high-quality healthcare. ZEISS will therefore
continue its existing activities and sponsorships, such as ineducation and research, human rights and diversity.
To work on these strategic focus topics and on the further integration of sustainability in key processes, a Group-wide sustainability program was created as part of the ZEISS Agenda. Two

Executive Board members are responsible for the program,which is coordinated by the central sustainability department.
Five topic-specific working groups were formed as part ofthe program. They work on the following topics:» Sustainable energy supply and energy-efficient infrastructure» Sustainable product development» Implementation of new environmentally sustainablebusiness models» Sustainability in procurement and logistics» Strengthening social engagement and social businessmodels.
Approach to sustainable corporate governance
ZEISS believes the basis for the focus topics and the aims of
the working groups can be summarized as follows: growthis only possible in an intact environment that is open to
innovation. At ZEISS, generating acceptance for the company's
own activities and assuming responsibility for the environment,
employees and society is thus an integral part of its businessphilosophy. As part of sustainable corporate governance,
ZEISS is pursuing a long-term holistic approach that will define
day-to-day operations. This approach is split into five fieldsof action: employees, the environment, social and societal
engagement, integrity and compliance, as well as products
and the value chain.
Aims, values and guidelines for entrepreneurial behavior
In its day-to-day operations, ZEISS pursues aims and values
that were set out by the creator of the Carl Zeiss Foundation.
These include profitable growth, responsibilities toward
employees, social and societal engagement, and the promotion of science and education. This attitude thus also means

15

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

Sustainability
at ZEISSgm ri t yp li a n
an dce

The five fields of action of theZEISS approach to sustainablecorporate governance

em

e
Int o
C

en

t

Products
Value Ch andain

Employeesthat the basis of ZEISS' own sustainable corporate governancemust be strict compliance with laws and regulations. The
ZEISS Group's Code of Conduct became effective in 2007 andwas last updated in 2020. It sets out binding principles for allof the company's sites. They help guide employees and managers as they carry out their activities in a responsible manner.
The Code of Conduct contains rules on how to deal with
employees and business partners fairly, on product safety, theenvironment and occupational and environmental protection
as well as on combating corruption. More detailed company
directives are available for all the topics addressed in the Codeof Conduct.

S o cia

l En

g
ga

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 what needs
to be achieved by 2030 and call on companies, politicians,
and society to play their part. ZEISS wants to play its partand has given due consideration to the global Sustainable
Development Goals and the role it can play. Read more about
ZEISS' contribution to the SDGs on pages 25-29.

At ZEISS, responsibility for sustainability ultimately lies with
the Executive Board of Carl Zeiss AG. The CEO reviews
and approves the Sustainability Report and ensures that allmaterial topics are addressed. Its strategic and operational
implementation is the responsibility of the Head of Sustainability, who regularly reports to the CEO and the entire
Executive Board and is a member of the Corporate Strategic
Development management team. Along with the Sustainability team, the Head of Sustainability is responsible for thecentral and cross-divisional sustainability program of theZEISS Group and recommends environment-related targets,for example to reduce emissions. She also collaborates
with those responsible for internal processes, e.g. from theEnvironment and Energy Management, Supply Chain Management, and Compliance departments, to embed sustainability
topics throughout the ZEISS Group. The sustainability programis overseen and managed by two members of the Executive
Board.
The Sustainability team at Corporate Strategic Development
aims to strategically integrate sustainability within the entire
organization and render it measurable. To do this, the teamcollaborates closely with the different ZEISS units in order todo justice to the diversity of the ZEISS product portfolio andidentify the levers that make the greatest contribution tosustainable business practices. Moreover, in fiscal year 2020/21
ZEISS formed topic-specific working groups to implement the
new ZEISS Agenda (see chapter on Strategy and Sustainability
p. 15).
As a supplement to the central Sustainability team, officers
were appointed to look after sustainability management at

16

Company Profile
and Business Model

BACK TOCONTENTS

each segment and at the Shared Production Unit. They report
directly to their segment's Management Board. They ensurethat a segment-specific sustainability strategy based on thecentral approach is embedded and implemented, while
ensuring that the ZEISS Group's central sustainability approachconsiders the specific requirements of the units. The sustain­
ability officers at the units regularly meet with the Headof Sustainability to report on progress at the units and on

Strategy andSustainability

1Integrity andComplianceongoing initiatives. As part of the ZEISS sustainability program,
there are also quarterly committee meetings with the two
members responsible from the Executive Board.
Dialog with the stakeholders
To ensure the company's continued business success, it isessential to incorporate the interests of stakeholders in strategic considerations and acquire stakeholders for collaborative

Overview of Roles and Responsibilities

President and CEO
Target setting anddecision-making preparations,progress report

Decisions& Objectives

2
Products andValue Chain

Head of Sustainability& central sustainability teamStrategic guidance and support
during implementation

Report on progress
at segments and departments

Departments and committees
related to sustainability

Sustainability officers at thebusiness units

Supervisory Board &Audit Committee
Reports
on progress3
Employees

4
Environment

5SocialEngagement

partnerships with ZEISS. The ZEISS Group has implemented asystematic process to identify its key stakeholders and focuses
on issues relevant to these stakeholders when communicatingwith them. This was determined during a materiality analysis.
ZEISS receives questions about sustainability via different
channels. Stakeholders including customers, suppliers,
interested members of the public and employees, have theopportunity to ask questions and express their concerns via
the ZEISS website. ZEISS has set up a dedicated email address
for this purpose: responsibility@zeiss.com. Questions areeither answered by the Sustainability team or are forwarded
to an internal expert.
Internal and external stakeholders attach great importance tothe transparency of the ZEISS Group's sustainability activities.
The Sustainability Reports of the ZEISS Group and the NonFinancial Report of the Carl Zeiss Meditec Group, which has
been published for the first time, are instrumental in thisregard. In fiscal year 2021/22, there was great deal of interest
in ZEISS' climate protection activities, sustainable corporate
governance and its implementation of the German Supply
Chain Act (LkSG) and the EU Taxonomy Regulation Customers
were particularly interested in product carbon footprints and
ZEISS' efforts to reduce potentially hazardous materials. Moreand more customers are using external platforms that systematically request and evaluate integrated sustainability informationfrom companies. Responsibility throughout the supply chain,especially with regard to processes for upholding human rights,
also played an important role. Employees often asked questions
about the company's internal approaches and goals in relation
to climate protection and environmental measures.

17

BACK TOCONTENTS

Company Profile
and Business Model

Memberships and Initiatives
As a global player, the ZEISS Group is active in manyindustry associations in Germany, participates in regional
initiatives, and is involved in many associations that provide
financial support for colleges, universities, and scientific andcultural institutions. Dr. Karl Lamprecht, President & CEOof the ZEISS Group, is Chairman of the Aalen University
Council and a member of the Baden-Württemberg Boardof Trustees of Stifterverband für die Deutsche Wissenschaft,an innovation agency for the German scientific sector. In
Germany, ZEISS is involved in the Wissensfabrik (Knowledge
Factory) intercompany cooperation project and is a longstanding member of the Max Planck Society. The company
is a signatory to the German Diversity Charter, an initiative
to promote greater diversity at German companies. On the
global level, ZEISS is a member of the non-profit trade association The Vision Council. It is also committed to the initiative run by the World Health Organization (WHO) and theInternational Agency for the Prevention of Blindness (IAPB),VISION 2020: The Right to Sight, which aims to prevent
blindness and has joined the global fight against tuberculosis with the Stop TB initiative. ZEISS Industrial Metrology isalso a Blue Competence member of the German Mechanical Engineering Industry Association (VDMA) that promotes
sustainability in mechanical and plant engineering andpublicizes the industry's sustainable solutions. In addition,
the company is a member of the Unternehmensnetzwerk
Klimaschutz (corporate network for climate protection andeconsense), the sustainability network of German industry.

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

ZEISS Group Stakeholders and Communication Formats
Stakeholder groups

Key communication formats

Supervisory Board

Regular reporting at meetings of the Supervisory Board and its committees

Banks

Ongoing communication between ZEISS and banks

Company committees/unions

Staff meetings, works council committees

Carl Zeiss Foundation

Executive Board members of the Carl Zeiss AG sit on the Management Advisory Board of the Foundation, andthe Chairman of the Supervisory Board sits on the Foundation Council, exchange of ideas on specialist topics

Research institutes and universities

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

Investors

Personalized communications with the Investor Relations department, Annual Report, ZEISS website,
Sustainability Report, Non-Financial Report of Carl Zeiss Meditec AG

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

Suppliers

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

Media

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

Employees and managers

Internal communication channels, annual performance reviews, satisfaction surveys, company meetingsand dialog tours

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

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

18

t

en

g
m ri t yp li a n
an d
ce

em

lic
ag h e sem
ent

Produkteu
Wertschöpfun nd
gsk
et
t

Sustainability
at ZEISS

e
Int o
C

e
Int o
C

Results of the materiality analysis
The material topics identified in fiscal year 2018/19
remained the same for fiscal year 2021/22.

2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Employees

nment
viro
En

welt
Um

beitende
Material sustainability
Mitarissues
All topics that aree very important for the different
stakeholder groups of the ZEISS Group and whose own
business activities have a significant economic, socialand environmental
impact are material for ZEISS and are
Nachhaltigkeit
included in this Sustainability Report. A comprehensive
bei ZEISS
materiality analysis was carried out in fiscal year 2018/19,
in which the impact of the individual topics was a keygassessment criterion.
Details on the procedurearetm rit ä t
af g
ch Report.
nslia und Sustainabilitylavailable in the prelevantInfiscallEen ce
G es aleszi
year 2021/22, the topics defined
und soin 2018/19 wereverified in order to take the impact of new developments
into consideration. All relevant departments and theappointed unit representatives evaluated the relevanceof the material topics that were identified in the prioryear. Respondents were able to add any topics that were
missing.

Strategy andSustainability

Products
Value Ch andainCompany Profile
and Business Model

BACK TOCONTENTS

1
Integrity andCompliancelE
S o ciang

ag

Results of the Materiality Analysis
Employees» Employer-employee relationship» Employee development, training
and further education» Diversity» Work-life balance» Occupational health and safety

Environment» Efficient use of natural resources» Circular economy» Climate protection» Environmental compliance

Social engagement» Promotion of scientific researchand education» Healthcare promotion» Regional involvement

Integrity and compliance» Business ethics» Legal compliance» Data privacy» Taxes

Products and Value Chain» Product development» Product safety» Procurement and suppliermanagement» Human rights in the supply chain

19Company Profile
and Business Model

BACK TOCONTENTS

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Sustainability at ZEISS – Progress of the Activity Fields
Integrity and Compliance
Material issues

Aims» Legal compliance» Business ethics» Data privacy» Tax» 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 2021/22» Continuing the ZEISS Integrity Line for reporting open or anonymous
information about possible compliance violations» Revising and publishing the existing model contracts for distribution
partners – such as dealers, sales agents or sales representatives» Revising and publishing the proper conduct in competition policy» Aligning the ZEISS Compliance Management System with the new
DIN ISO 3730
» Successfully completing an external readiness assessment of the current
state data privacy organization with a focus on corporate governance(based on the requirements of the international standard ISO/IEC 27701
as a basis for assessment)» Implementating new requirements from additional local data privacy
laws, such as in Brazil and China» Establishing new full-time data privacy positions (data privacy area
coordinators) to further professionalize the data privacy organization» Mandatory data privacy training for all employees as well as various
campaigns on International Data Protection Day to increase awareness» All employees take part in compliance basic training every two years

On Track
Achieved

20

Company Profile
and Business Model

BACK TOCONTENTS

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Products and Value Chain
Material issues

Aims» Product safety» Sustainable productdevelopment» Procurement and suppliermanagement» Human rights in the supply
chain» Improved sustainability performance of ZEISS products andservices» Systematic anchoring of sustainability in productdevelopment process» Further development of logistics and shipping processes
to integrate sustainability aspects» Raising supplier awareness of the ZEISS sustainability
requirements» Organizational and strategic expansion of sustainability into
purchasing and supplier management

StatusSelected measures in FY 2021/22» Creating a plan for the introduction of software to calculate
product carbon footprints» Implementing pilot projects to evaluate sustainability aspects in the
ZEISS segments, taking into account the adapted product development process» Continuing a cross-divisional working group to strategically establish suppliermanagement incorporating different sustainability aspects and deriving targets
for the supply chain» Adopting a policy for sustainability in purchasing and in supplier management(ZEISS Sustainable Procurement Policy)» Making initial adjustments to existing ZEISS processes to meet the requirementsof the German Supply Chain Act, evaluation of the scope of application for
ZEISS, and development of an action plan
» Carrying out a risk analysis for 661 strategically relevant suppliers» Compiling an annual report to evaluate the supply chain as concerns the originof conflict minerals based on the Responsible Minerals Initiative standard» Establishing guidelines to prioritize marine and rail transportation over air
freight

On Track
Achieved

21

Company Profile
and Business Model

BACK TOCONTENTS

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Employees
Material issues

Aims» Employer-employee
relationship» Employee development,
training and further
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 at thecompany» Encouraging a positive work-life balance» Standardization and ongoing improvement of internal
processes for occupational health and safety to reduce
accident frequency and severity» Reducing the number of work-related accidents acrossthe Group (KPI LTIFR) to below 2.25 by the end of 2023
» Rolling out the software solution worldwide for global
accident reporting by fiscal year 2021/22

StatusSelected measures in FY 2021/22» Ongoing advancement of the Cultural Journey – Walk the Talk to improve
collaboration and personal development opportunities for employees» Further transformation of HR organization and processes» Launching a training or cooperative education program at ZEISS in Germany
for 210 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 andtheir family members» Continuing existing employee networks and establishing further
networks, e.g. Proud@ZEISS or Women@ZEISS» Conferring of the ZEISS Women Award for outstanding students of IT,
business information systems and media information systems» Expanding the flexible working hours and workplace models» Concluding a partnership for free preventive healthcare measures» Conducting 82 fire safety inspections and 119 occupational safety
inspections in Germany» Training of 2,216 managers and occupational health and safety officers in theuse of the OHS software since introduction» Introducing the first all-electric employee shuttle bus in Oberkochen

On Track
Achieved

22

Company Profile
and Business Model

BACK TOCONTENTS

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Environment
Material issues

Aims» Efficient use
of natural resources» Circular economy» Climate action» Environmental compliance» Efficient use of all natural resources to protect theenvironment» 20% reduction in relative energy use1 by fiscal year 2024/25» 15% reduction in relative water consumption1
by fiscal year 2024/25» 10% reduction in relative waste accumulation1
by fiscal year 2024/25» Carbon neutrality in Scope 1 and 2 by fiscal year 2024/25» Switching to a carbon-neutral energy supply at the main sites
worldwide by fiscal year 2021/22» Standardizing energy and emissions data collection in
Europe via a platform solution by fiscal year 2020/21» Consolidating the capture of global environmental
performance indicators by expanding the platform solution
by fiscal year 2022/23

Reduction targets by fiscal year 2024/25 relative to thecompany's own value creation (reference year: fiscal year
2018/19)1

StatusSelected measures in FY 2021/22» Continuing several projects, initiatives and measures for conserving energy
and resources at ZEISS sites» Converting electricity procurement to green electricity at all majorinternational ZEISS sites» Procuring renewable energies from wind turbines in Germany as part of
direct power purchasing agreements (PPAs) and from a solar field with power
supply starting in 2023
» Rolling out the platform solution for the collection of energy and emissions
data as well as expanding it to include water consumption, waste generationand other environmental indicators worldwide» Continuing the company suggestion scheme for measures to conserve
resources at eight sites» Offsetting carbon emissions resulting from air travel and the use of natural
gas and district heating» Participating in climate reporting and first-time participation in the Carbon
Disclosure Project (CDP) water reporting» Independent EH&S audits at major production facilities to review legal
compliance status» First external verification of ZEISS greenhouse gas balance according toGreenhouse Protocol in FY 21/22

On Track
Achieved

23

Company Profile
and Business Model

BACK TOCONTENTS

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Social Engagement
Material issues

Aims» Promotion of scientificresearch and education» Regional involvement» Health promotion» Promotion of scientific knowledge from preschool children to
doctoral students» Improved patient quality of life through solutions and new
standards in optometry and medical technology

StatusSelected measures in FY 2021/22» Carl Zeiss AG sponsors over 110 projects with 1.7 million euros» A Heart for Science initiative already has more than 150 volunteers» Funding six ophthalmology training centers in Indonesia, Paraguay, Nigeria,
Sudan, Tanzania, India and Uganda» Supporting Birdability, to support inclusion in birdwatching» Implementation of local measures to protect biodiversity with theparticipation of employees (e.g. construction of insect hotels, waste collection
campaigns)

On Track
Achieved

24

BACK TOCONTENTS

Company Profile
and Business Model

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

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. There are
only seven years left. That's why private companies are being called on to play their part. It is
the only way to ensure fair development worldwide that creates prosperity within the limits ofwhat the planet 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 was conducted of the 17
primary goals and 169 sub-goals. It is still valid for ZEISS today.
In the process, six goals were identified where ZEISS can havethe greatest impact on people, the environment and society
through its business processes, product portfolio and services:
SDG 3 – Good 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

25

BACK TOCONTENTS

Company Profile
and Business Model

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

4
Environment

5SocialEngagement

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.

The focus is on around 43 million people worldwide
who are blind and 295 million who suffer from a severe
visual impairment. Roughly 90% of those affected livein the world's poorest countries.
ZEISS is raising the bar in healthcare with its solutions for optometry and medical technology, and helps to drive medical progressin ophthalmology and microsurgery with its products. The aim isto help improve the lives of patients everywhere. ZEISS is determined to do its part for society in the fight against preventableblindness and, since 2005, has equipped diagnosis, treatment
and training centers with devices for eye care. In line with theprinciple of "Helping people help themselves", training centers
are being made accessible in remote regions of the world. This
creates the necessary scope for teaching people how to operatestate-of-the-art medical technology and use it for treatment purposes. The centers are located in Nigeria, Indonesia, Tanzania,
Paraguay and Sudan. In order to specifically enhance cataract
surgery, ZEISS also supports phaco training centers in Paraguay
and India.

3
Employees

Focus: around half of the world's population does nothave sufficient access to basic healthcare.
Carl Zeiss Meditec Group would like to provide as many people
as possible with access to modern healthcare in regions thatlack adequate facilities. Good medical training forms the basisof good healthcare. ZEISS supports the Fellowship Program of
the International Ophthalmological Fellowship Foundation e.V.
(IOFF, formerly ICO Fellowship Program) to promote educationand training. The scholarship program enables young doctors
from developing and emerging countries to spend several
months in a clinical internship in Europe. Furthermore, ZEISS
has been committed to providing ophthalmic optical services in
unserved, rural regions of India and Nepal since 2015 as part of
the Aloka Vision Program.

Focus: Germany needs around 320,000 STEM employees.
ZEISS fosters aspiring young scientists – from kindergarten kids
right up to doctoral candidates – through numerous educational programs. In this way, ZEISS acts on the responsibilities set
forth in its Foundation statutes, sharing educational content
in an easily understandable way, and making science easier tocomprehend. Examples include the company's involvement inschools and its microscope donations to various educational
initiatives, as well as its support for Germany's regional "Jugend
forscht" contest for young, talented achievers in the STEM fields.
With the goal of bringing young people closer to science andresearch, ZEISS has been sponsoring Jugend forscht, Germany’soldest and best-known competition for young researchers, formore than 20 years.
On the occasion of the company's 175th anniversary, ZEISS
launched A Heart for Science - an international initiative run by
ZEISS that aims to get young people aged 12 to 18 interested in
STEM. What is special about it is that any of our employees canimpart their knowledge to the explorers of tomorrow. Throughthe initiative, ZEISS is enhancing its commitment to encouraging children and young people to get into science and research.
Corporate volunteering is a key part of this. Colleagues acrossthe world can get involved in this by giving talks to kids' unis,
organizing workshops at schools or STEM events.

26

BACK TOCONTENTS

Company Profile
and Business Model

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

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

Focus: Over 200 million people worldwide are unemployed.
As a global tech company, ZEISS employs more than 38,000
people. They are offered a safe and motivating work environment, where hard work and dedication are acknowledged
and individual advancement is possible. Worldwide, ZEISS
consistently trains several hundred vocational trainees andstudents pursuing combined study programs. This prepares
them to enter the job market. ZEISS also conducts a regularglobal employee survey to determine how people think it ishelping to shape its own corporate culture (see page 47).

Focus: in more than 60 countries worldwide, humanrights are either under siege or egregiously violated.
The ZEISS Group is conscious of its responsibility to upholdhuman rights. When working with suppliers, ZEISS has therefore been pursuing a centralized approach to integrating sustainability aspects in the supply chain since 2016, which iscontinuously enhanced by the Sustainability in Procurementand Logistics working group as part of the ZEISS Agenda.
The approach focuses on compliance with environmental and social standards at suppliers' sites. To monitor this,demand-driven assessments and audits are conducted basedon risk. In recent years, ZEISS has been driving the implementation of the five core elements of the German government's
National Action Plan for Business and Human Rights (NAP).
Based on this ZEISS has already taken the first steps towards
complying with the German Supply Chain Act. In the reporting year, ZEISS prepared for the law and is now successivelytransferring these legal requirements into the processes for
the ZEISS business units concerned. More information is available on pages 43-44.

27

BACK TOCONTENTS

Company Profile
and Business Model

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

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

Focus: innovation is one of the cornerstones of thetransformation toward a circular and decarbonizedeconomy.
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% of revenue (2020/21:13%), research and development investment has remained at a constantly high level as comparedto the prior year, testifying to the ZEISS Group's continued
strong focus on innovation.
The Product and Solution Generation Process (PSGP) is of fundamental importance in this context. It is the responsibility of
the Corporate Research and Technology department. The rules
associated with the PSGP are binding for all ZEISS units, define
the minimum requirements for a modern development process
at the ZEISS Group and requirements for the durability andenvironmental performance of products.

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 infrastructuresand communication and production structures. Revolutionary
extreme ultraviolet (EUV) technology, for example, enables the
production of microchips that are ever higher-performing andenergy-efficient. That protects the environment: chip manufacturers report 50% energy savings with EUV technology ascompared to the current technology.

28

BACK TOCONTENTS

Company Profile
and Business Model

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

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

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

Focus: Humanity would require 1.7 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. A cross-divisional working group for sustainable product development aims tosystematically integrate products and solutions into the development process. Aspects including circular economy, alternative
materials and ways of increasing energy and resource efficiency during product manufacturing and use are all taken into account. This is being done through investment in measures toboost energy efficiency, consistently reduce waste and integratesustainability aspects into product development. Against thisbackground, the systematic evaluation and use of alternativeand more resource-efficient technologies is gaining in importance and is considered both centrally and in the business units.
In addition, refurbishment programs are in place for several
product groups, including electron microscopes and measuringmachines. Pre-owned products are overhauled in accordancewith certified ZEISS standards, equipped with new technology,
and made available to customers again (page 64).

In focus: with the emission reduction pledges made so
far by the parties to the Paris Climate Agreement, theworld is set to heat up by at least 2.5 °C by the end of
the century.
SDG 13 calls upon states and governments to include effective
measures for combating climate change in their national policy.
However, effective climate action can only be achieved througha concerted effort and if companies support it too. ZEISS believes
it has a responsibility and makes a contribution to the global
target set in the Paris Agreement of limiting global warming to
below 2°C. Until fiscal year 2021/22 it was the goal to make theuse of electrical energy (Scope 2) at the major production sites
CO₂-neutral. This goal has been achieved. By fiscal year 2024/25,
the energy consumption of all other locations as well as the
direct emissions from combustion processes in the company's
own facilities or vehicles (Scope 1) are to follow (see also page62).

3
Employees

4
Environment

5SocialEngagement

ZEISS is focusing on reducing energy consumption in a bid tolower emissions. Moreover, ZEISS avoids emissions by using renewable energies and purchasing green power through powerpurchasing agreements or from suppliers with certificates of origin. ZEISS also wants to expand its own generation of renewableenergy. ZEISS compensates for unavoidable emissions or thosethat cannot be reduced by supporting selected projects. To manage the emissions produced by the upstream value chain, ZEISS
assessed its Scope 3 emissions for the first time in fiscal year
2020/21. A reduction target will be set on this basis.

29

BACK TOCONTENTS01

INTEGRITY ANDCOMPLIANCE

30

BACK TOCONTENTS

Company Profile
and Business Model

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Compliance"Compliance is a central element of sustainablecorporate success at ZEISS. Our aim is toensure that business activities always comply
with the law and our internal standards. We
therefore promote a corporate culture in which
compliance is lived as a matter of course from the Executive Board and executives to all
employees."
Sina Schneller, Head of Corporate Compliance, Carl Zeiss AG

Operating in line with statutory regulations and internal
rules is an integral part of the ZEISS corporate culture. The
company's aspiration to act with integrity stems from thevalues that were shaped by its history as a foundation-owned
company. For this reason, legality, and the fair treatment ofbusiness partners and employees are indispensable elementsof successful business operations. Equally important is an
open and respectful corporate culture, which is anchored at
the company and championed by the management. To thisend, the ZEISS Compliance Management System ensuresadequate handling of potential compliance violations. ZEISS
also addresses the challenges associated with rising regulatory requirements, as well as the specific requirements of ourbusiness partners.
Compliance management has a positive impact on relations
with ZEISS' business partners because it brings the Group's
convictions and values to our daily dealings with each other.
Last but not least, compliance management prevents negative
consequences for business partners and for society in general,such as consequences that could result from non-compliancewith laws.
Guidelines, structures and processes
At ZEISS, the foundation for compliance management is the
ZEISS Code of Conduct, which was first published in 2007
and last updated in July 2020. It describes the risks inherent
in business activities, provides specific recommendations on
how to behave and is binding on all ZEISS managers andemployees worldwide. The ZEISS Code of Conduct contains
rules on various issues, including data privacy, product safety,
environmental protection and combating corruption.

More detailed company directives are available for all the
topics addressed in the ZEISS Code of Conduct. These include
guidelines on evaluating distribution partners, granting andaccepting benefits such as gifts or invitations, and the proper
conduct in competition policy.
At ZEISS, compliance is organized on three different levels: at
Group level, the Chief Compliance Officer, who reports to the
Executive Board, and the Head of Corporate Compliance areresponsible for the compliance management system. This areaof responsibility encompasses the design and implementationof the Compliance Management System. All strategic business
units have also appointed Group Compliance Officers who
coordinate the compliance activities in their particular area andits associated companies. In addition, all individual companies
have their own Compliance Officers, who are responsiblefor implementing training measures on-site and resolving
possible local compliance violations. The Compliance Officers
are the contact persons for employees and managers alike oncompliance topics.
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. These include
compliance with data privacy, customs and export control
provisions, environmental regulations as well as regulations on
occupational and product safety, and combating corruption.
As part of the Group-wide risk management process, compliance risks, for example due to export control law, data
privacy and corruption, or environmental protection, are also
queried at all companies. Assessments every two years,

31Company Profile
and Business Model

BACK TOCONTENTS

as well as internal and external audits, are regularly conducted
to evaluate compliance with the legal requirements.

1.
Pr

t
en
ev

Core processesof the ComplianceManagement System

3. Respond
In order to respond adequately to individual misconduct,
the company takes appropriate measures.

po

Early detectionof misconduct

ct

es

Co
Organizational
and procedural
improvements

2. Detect
In spite of all the preventive measures, legal violations
and cases of non-compliance can still occur within thecompany. To identify such cases, employees are called on
to actively cooperate and should report any suspectedviolations. Relevant departments and experts, such as
Corporate Security and Internal Auditing, also support
investigations of suspected compliance violations.
Depending on the case, the company can also rely on
external support.

2. D
et

4.
r re

1. Prevent
A clearly structured framework of policies and manda­tory
training courses for all employees raise awareness andprevent incidents.

nd

IT solutions
and training

2
Products andValue Chaintec

A Compliance Management System has been established
for all units in the ZEISS Group. It enables the systematicmanage­ment of all compliance measures and encompasses
these core processes.

Strategy andSustainability

1Integrity andCompliance3.

R

Appropriate reaction
to individual casesof misconduct

4. Correct
Depending on the type of misconduct, systemic orprocedural measures may need to be taken to prevent
recurrence.
All employees and Executive Board members must completea basic compliance training module on the ZEISS Code of
Conduct at least every two years, including a final test.
Employees who work in areas where they may be highly
exposed to compliance risks, such as in Purchasing, Sales andMarketing, as well as managers, must complete additional
training modules on anti-corruption and fair competition.

3
Employees

4
Environment

5SocialEngagement

The majority of ZEISS employees have access to online
compliance training via the ZEISS CurioZ learning platform.
The training modules are currently available in 13 languages.
Employees who could not access the online training courses
in the 2021/22 fiscal year received in-person training. However, ZEISS is continuously working on ways to provide these
employees access to ZEISS CurioZ.
Internal and external stakeholders alike basically have theopportunity to use the ZEISS Integrity Line whistleblower
system openly or anonymously to report any indications ofpossible compliance violations. The ZEISS Integrity Line isavailable in 23 languages and can be found on the website
www.zeiss.com/compliance/en/home.html and on the ZEISS
intranet TEAM ZEISS. ZEISS employees can also contact theirsupervisor, the responsible specialist department, the works
council or the responsible compliance officer at the respective
location.
Objectives, measures and results
ZEISS' primary aim in terms of compliance is to act in linewith statutory regulations and internal rules. Complianceviolations not only endanger the company's reputation,
but can also involve consequences under criminal law or sales
slumps. A continuously updated training program is essential.
In fiscal year 2021/22, the proper conduct in competition
policy was revised. In addition, the existing model contracts
for distribution partners - such as dealers, sales agents orsales representatives – were updated. Furthermore, the internal alignment of the ZEISS Compliance Management Systemwith the new DIN ISO 37301 was commenced.

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Company Profile
and Business Model

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Anti-Corruption

Political Influence

Data Privacy

Being aware that corruption impedes progress and innovation,
ZEISS has issued clear rules to prevent and fight corruption.
The internal anti-corruption rules are a vital part of the ZEISS
Compliance Management System described above. To raise
employee awareness of the topic, internal company policies
on granting and accepting benefits such as gifts or invitations
are part of the basic compliance training as well as the "Anti-Corruption" training module for specific groups of employees. A checklist provides specific examples to help employees
to assess whether or not particular benefits are permitted.
Moreover, there are internal policies for screening distribution
partners. This is supported by a screening tool supplied by an
external provider. The goal is to determine whether distribution partners show any abnormalities in regards to corruption
or cartel deals, export control, money laundering or similar
crimes, or exhibit any other risk factors that could damageZEISS' reputation.

The government lays key foundations and creates rules forbusiness activities. Associations and interest groups help
negotiate standards and common development goals in thiscontext. This is the reason why ZEISS is a member of academic, industry, and employer associations. The company explicitly
affirms the independence and integrity of parliaments, parties,
and governments as the cornerstones of basic democraticorder and repeatedly makes it clear that a free, democraticframework is necessary for successful business activities in a
globalized world.

ZEISS is aware of the importance of protecting personal data
to ensure the integrity of our business model both today and in
the future. More and more ZEISS units are handling highly sensitive personal data like healthcare information Avoiding potential
negative effects due to failure to fully protect such information
is a priority at ZEISS. For this reason, being able to demonstrate
legally compliant and reliable data privacy is essential for us toremain a reliable partner for customers, suppliers, partners andconsumers. It also prevents both damage to the company's
reputation and high fines.

The ZEISS Group does not make financial donations or othercontributions to parties or political institutions. And there's agood reason for that: the Carl Zeiss Foundation statutes stipulate that all support must be based on political and religious
neutrality.

Guidelines, structures and processes
National and international regulations create the frameworkfor data privacy – and the European Union's data privacy
standards are particularly relevant. These are supplemented bya mandatory internal guideline at ZEISS for handling personaldata, which is applicable worldwide. The guideline was updated
in the reporting year. In addition, legally binding contracts wereconcluded within the Group with all ZEISS entities for compliance with data privacy standards. From an organiza­tional standpoint, data privacy matters are handled as a standalone divisionof Corporate Legal & Patents. The Corporate Data Protection
Officer works with a ten-person team to define principles andrules governing the protection of personal data, support andprovide advice for their implementation, and monitor compliance. They report to the Chief Financial Officer.
Executive Board members and/or the managing directors of
ZEISS companies and the heads of business units are responsiblefor implementation and compliance. To support these efforts,
the Corporate Data Protection department utilizes a privacy
management system. Each individual company has a data pro-33

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Environment

5SocialEngagement

Information Security
tection coordinator who is responsible for training measures, isthe local contact person for all employees' and managers' questions and maintains contact with Corporate Data Protection.
Measures and results
ZEISS emphasizes the importance of globally consistent data
privacy standards. Alongside the steeply rising challenges
posed by product digitalization, increasing global regulation
drives the further development of data privacy processes
at ZEISS. The focus is on aspects like extended rules andregulations such as the Data Security Law of the People’s
Republic of China (DSL), the EU's updated rules on crossborder personal data transfer to countries outside the EU,
and further national laws such as the Personal Information
Protection Law in China, specific state-level laws in the US
or court decisions, e.g. in connection with the validity of the
EU-US Privacy Shield. In the reporting year, ZEISS thus assessedover 3,000 internal and external cross-border data transfers
and adapted its internal processes to the new conditions. The
switch to the new EU standard contractual clauses as the valid
legal basis is currently being implemented. What is more, theZEISS Group defined binding corporate rules for internal datatransfer based on consistent standard contract clauses. These
rules are still being assessed under the certification process of
the European supervisory bodies. During the reporting period,
more than 120 inquiries and complaints were answered regarding guaranteed data subject rights, such as data deletion,
retransfer, objection and correction. Data privacy incidents
were reported to the responsible supervisory authority and/or
the affected parties, depending on their severity. In the reporting period, no reports to the supervisory authorities resulted in
an in-depth review or sanction.

The security of the information systems used at ZEISS is ofgreat importance for business operations and the successof digital products and services. The triad of confidentiality,
integrity and availability of information and systems describes
the overarching goals of the ZEISS Information Security
Management System (ISMS). The ISMS is the responsibility of
ZEISS Information Security, which has now been organizationally merged into Corporate IT, and sets the framework for all
information processing in the ZEISS Group. Since late 2021,
the ISMS has been certified to ISO 27001 for the centrally
provided services related to information technology andinformation security equipment, mechanisms and processes.
It is guided by the rules enshrined in international rules,
regulations and standards (e.g. China's Cyber Security Law,
NIST Cyber Security Framework, VDA ISA/TISAX). This way,
ZEISS ensures an appropriate security posture that is in linewith the requirements of ZEISS' customers.

required. The requests were handled by Regional Information
Security Officers, who liaise between ZEISS Information
Security and the regions.

In the last few years, ZEISS has established a Security Operation Center at its site in Bangalore, India, in order to monitor
the ZEISS IT systems around the clock for security issues,intervene in the event of discrepancies and thus minimize any
potential damage. In addition, the company has a networkof security engineers to address security in a rapidly evolving
environment of agile software and product development. They
can be software developers who are trained in a multi-stage
training program according to the principles of "security bydesign" and "security by default", among others.
In the period under review, ZEISS received over 20 requests
from partners and customers in relation to its information
security measures where proof of established safeguards was

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Strategy andSustainability

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Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Tax
Taxes are very important for ensuring a functioning welfare
state, its future and its people. As a foundation-owned
company that actively takes responsibility for society, ZEISS isaware that it needs play its part in funding the public good.
This also means paying taxes where value is created andensuring consistent compliance with the applicable nationallaws. In Germany, companies of the ZEISS Group pay significant
amounts of local trade tax which makes them important partners for the maintenance and improvement of local infra­structures in the communities that are home to the individual
ZEISS sites. At the same time, breaches of the relevant laws
and regulations would damage confidence in ZEISS.
Guidelines, structures and processes
At ZEISS, the guidelines for handling taxes are defined by
the Group-wide tax strategy. It stipulates that tax-relatedOECD rules like the arm's-length principle are applied
during internal and external transactions and that the local
transfer pricing rules and guidelines are complied with. The
tax strategy is evaluated on an event-driven basis rather
than at regular intervals. The Corporate Tax department
ensures that the tax strategy is compliant with the regulations
and is always involved in decisions of considerable importance. This includes acquisitions of companies, other acquisitions, arrangements related to existing parts of companies,
or the establishment of transfer pricing policies. Ultimate
responsibility for complying with the tax strategy lies with
the Chief Financial Officer.
For specific transactions ZEISS relies on process guidelinesthat define duties and responsibilities in greater detail.
Employees working in the Tax department are trained throughexternal formats and internal knowledge sharing on specialist

subjects and in line with their needs. At ZEISS, tax-relatedrisks are monitored as part of the Group-wide risk management process. Risk field controls are defined annually and theiroperating effectiveness is assessed. In addition, potential tax
risks – such as those relating to acquisitions or new regulatory
requirements like country-by-country or DAC6 reporting –are identified using a general tax compliance system. The
risks are consistently monitored in a quarterly risk report and,
where necessary, measures are passed and implemented toreduce the risks.
Internal and external stakeholders can use the ZEISS Integrity
Line whistleblower system to report possible complianceviolations openly or anonymously.
The information about the tax burden published in the ZEISSGroup's Annual Report is assessed and verified by audit
firms.
ZEISS is a partner that attaches importance to transparency,
fairness, trust, reliability and respect. This applies in particular toits collaboration with tax authorities. ZEISS represents its own
interests in relation to tax legislation through its memberships
in the finance and tax committee of the Ostwürttemberg Chamber of Industry and Commerce and the German Association of
Chambers of Industry and Commerce (DIHK), Berlin, in specialist
tax groups and other panels.
Key results
For the reporting period, ZEISS reported tax expenses in
the amount of 407 million euros (prior year 2020/21: 395
million euros). The Group's global effective tax rate stood at
26% in fiscal year 2021/22 (2020/21: 27%).

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02

PRODUCTS AND
VALUE CHAIN

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5SocialEngagement

Product Development"ZEISS stands first and foremost for inno­
vative solutions that help our customers be
successful. We filed 638 new patents in thereporting year alone. Precision, reliability
and exceptional quality form the basis forour success. But that's not all: for years
sustainability has been growing in importanceand it is now one of the key parameterswhen it comes to product development andmanaging the supply chain."Dr. Ulrich Simon, Head of Corporate Research andTechnology, Carl Zeiss AG

ZEISS offers a wide variety of highly specialized productsthat are as diverse as its different customer groups and their
particular requirements. These groups range from hospitals,
doctor's offices and eye care specialists to research labs, techcompanies, car manufacturers and end consumers. For allof them, the name ZEISS is a promise of quality, innovation,
safety, reliability and responsibility – and for many, ZEISS also
stands for better health and improved quality of life. In order
to live up to this promise and meet the needs of these different customers both today and in the future, ZEISS has been
conducting its own comprehensive research and development
activities right from the start.
Its collaborations with partners such as universities and thework of diverse teams make a tremendous contribution to its
success. The greatest effect product development can haveis on the potential impact of a product. Accordingly, awareness of potential environmental impacts and the pursuit ofa far-reaching circular economy are increasingly shaping theprocess of product development. The goal is to increase thepositive impact of ZEISS products through factors such as easeof use, greater energy efficiency, longevity and, in the future,
more circularity.
Guidelines, structures and processes
The Product and Solution Generation Process (PSGP) is of fundamental importance. It is the responsibility of the Corporate
Research and Technology department. The rules associatedwith the PSGP are binding for all ZEISS units, define the minimum requirements for a modern development process at theZEISS Group and specify mandatory minimum content in the
shape of a checklist, The aim is to provide customers with the
products and solutions they require - in terms of expectations,benefits, quality and reliability, as well as time and costs.
ZEISS products are only marketed if the requirements definedfor the development process have been implemented.
ZEISS strives to reduce the environmental impact, such as
through resource consumption or waste, of the entire productlife cycle and also leverages fields of research from the circular
economy in its innovation management. Increasing the longevity of products through service, repair and refurbishment
programs is a key requirement in this context.
Thus, the mandatory checklists contain two related categories
that must be taken into account during development: theenvironmental performance of the products and the evaluationof different sustainability requirements throughout the entire
product life cycle. Based on the company’s environmental
principles, this approach to product-integrated environmental
protection is founded on a commitment to rigorous process
management. The checklists were expanded in the reportingyear. This means that sustainability plans are now mandatory
for ZEISS business units when developing new products andmust be supported by a product carbon footprint analysis, forexample. This process ensures that all ZEISS products meet
the applicable environmental regulations and guidelines(see the chapter on the environment, page 58). In particular,
ZEISS ensures that:» The raw materials used are harmless to human healthand the environment» The manufacture and use of products generate as few
effluents and emissions and as little waste as possible

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Product Safety
Objectives and results
ZEISS has set itself the goal of providing innovative solutions
that focus on customer needs, make technologies more
efficient and increase quality of life. In doing so, ZEISS aspires
to always manufacture safe and reliable products of highquality. 638 new patent applications were filed during thereporting period. This underscores the company's enormous
capacity for innovation.
As part of the new ZEISS Agenda and the associated strategic
focus on sustainability, a working group was formed tomore systematically anchor sustainability in product development. This is the only way ZEISS can reduce the negative
impact of resource and energy usage. The aim is to specificallyevaluate energy efficiency, suitability for closed-loop material
flows or alternative materials when developing new products.
Based on the adjusted PSGP, the development process was
realigned in the business units in the reporting year in orderto ensure that various sustainability aspects are evaluatedmore systematically. The new pilot projects are supposed toestablish the new procedures. This includes, for example,
the preparation of CO₂ balances, evaluation of recycling
potential or the use of alternative materials and technologies.

Hope in the Fight against Breast Cancer
A breast cancer diagnosis is frightening and stressful, as is
the treatment and its side effects. Intraoperative irradiation with INTRABEAM® from ZEISS offers an alternative toconventional, external irradiation. Irradiation is administered in a single dose lasting approximately 30 minutes
directly after surgical removal of the tumor and while
the operation is still in progress. This means that conventional post-operative radiation treatment, which usuallytakes around six weeks, can be shortened or eliminatedaltogether. Surrounding healthy tissue and skin can also
be spared. The result is the same effect and shorter
radiation duration with less radiation exposure.1 Over45,000 people have already been treated with the TARGIT
method.2 In addition to the significantly shorter durationof irradiation and the low level of radiation-related pain
for those treated, using INTRABEAM® can save 1,200 tonsof CO₂ emissions annually in the UK alone.3
More about INTRABEAM® in the ZEISS Sustainability Booklet
starting on page 11

Other outputs of the working group were the creation oftraining plans for employees involved in product development to teach them the basics of product carbon footprint
calculations, as well as an action plan for the implementationof a software solution for conducting corresponding lifecycle
assessments.

https://www.zeiss.com/meditec-ag/media-news/press-releases-hcp/2020/targit-a-breast-cancer-study.html
https://doi.org/10.1038/s41416-020-01233-5
3
Per year, based on nationwide use, for UK only https://pubmed.ncbi.nlm.nih.gov/27160842/

A multitude of legal stipulations relating to the development,
production, approval and sale of products serve to guarantee their safety. It is imperative that these rules are adhered
to as defective products may cause damage or harm users.
In addition, the company's reputation could suffer. The goalof product safety management at ZEISS is to avoid any suchnegative effects.
For ZEISS, the challenges come from both increasing
regulatory requirements on product safety and ever greater product and application complexity. Digitalization plays
a particularly important role in this context. So at ZEISS,
product safety begins in the development stage, continues through the procurement and production process andremains an important aspect when the product is being
serviced, or being operated by the customer.
Guidelines, structures and processes
ZEISS requires all applicable laws governing product safety
to be implemented consistently. Responsibility for productsafety and its importance for the company's success are
therefore enshrined in the ZEISS Group’s Code of Conduct.
Within the ZEISS Group, specifications and monitoring ensure compliance with laws, standards and guidelines.
Responsibility for product safety lies with the Executive Boardor the heads of the individual companies, as well as with theemployees in charge of a particular product. They must makethe structures, resources and necessary skills available toproperly meet all legal and internal ZEISS requirements. ZEISS
requires all applicable laws governing product safety to be
implemented consistently. Responsibility for product safety
and its importance for the company's success are therefore

1
2

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Company Profile
and Business Modelenshrined in the ZEISS Group’s Code of Conduct. Within
the ZEISS Group, specifications and monitoring ensurecompliance with laws, standards and guidelines. Responsibility for product safety lies with the Executive Board or
the heads of the individual companies, as well as with theemployees in charge of a particular product. They must makethe structures, resources and necessary skills available toproperly meet all legal and internal ZEISS requirements.
An important tool for ensuring product safety is the quality
management system. It is based on the international standard
ISO 9001 and covers all ZEISS units. Multiple sites have theirsystems and processes certified by authorized testing centers.
To meet the specific requirements for medical devices, various
sites of the ZEISS Medical Technology segment have implemented a quality management system certified to ISO 13485.
This system is also verified as part of an independent, external
certification process.
As part of a comprehensive risk assessment during productdevelopment and production ZEISS ensures that, prior to a
product launch, all measures have been taken to guaranteethat all those involved can use the product safely. Operating
instructions, training sessions, security features for products,
as well as different kinds of support and dialog options, help
users operate ZEISS devices safely. Some products requireapprovals before they can be deployed. Certification by independent testing centers ensures a high safety standard.

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

can thus quickly identify potential for product improvements
and take the requisite corrective measures without delay.
In recent years, information security has become a key
product safety aspect due to the increasing digitalization of
ZEISS' product portfolio. That's because ZEISS products andservices result in rising amounts of sensitive data. This includes
patient-health information, confidential research findings
and even secret draft designs of electronic devices or motor
vehicles. To protect this information, ZEISS relies on the triadof data confidentiality, integrity and availability. The crosssegment Digital Product Security Expert Group (DPSEG),
now part of Corporate IT, plays a key role in this context,
promoting discussion among developers on security issues
and defining guidelines on the security of digital products
and services. It thus drives the appropriate integration of theprinciples of security by design and privacy by design indigital product development in order to ensure information
security across the entire product life cycle.

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Producing ceramic components using
a 3D printerPlastic has been able to be processed in 3D printers forsome time, which offers significant advantages in development and manufacturing. Together with its partner Schunk
Ingenieurkeramik, ZEISS has developed a process in recent
years that can also be used to produce very large ceramic
structural components using 3D printing. This process not
only creates new possibilities in production, but also saves
resources, using only half of the raw material previously
consumed. What is more, the entire process uses 40% lessenergy.
More about ceramic 3D printing in the ZEISS Sustainability
Booklet on page 8

Objectives and results
To ensure the safety and quality of its products, the ZEISSGroup relies on an effective management system that has beencertified accordingly at numerous sites. At the end of fiscal
year 2021/22, a total of around 100 business units had beencertified to ISO 9001 and 17 business units to ISO 13485.
Conformity with the requirements is regularly verified at all
certified sites by independent monitoring surveillance audits.

One set of guidelines applicable across all ZEISS units enables
employees to deal with customer issues and complaints. In
these cases, the guidelines provide for suitable action. ZEISS39

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Procurement and Supplier Management
Due to the significant amount of value created along the
supply chain, the procurement process is critical to the ZEISSGroup’s long-term success. Purchasing organizations aroundthe globe source both production and non-production
materials from local and international suppliers. ZEISS
business units generated around 34% (prior year: 45%) of
the total purchasing volume was from 661 (prior year: 652)
strategically relevant suppliers, which are the focus of therisk-based approach and are distributed geographically as
follows: EMEA (Europe, Middle East, and Africa) 75% (prioryear: 90%), APAC (Asia/Pacific) 13% (prior year: 3%) andAmericas 12% (prior year: 6%).
Guidelines and structures
The company works very closely with its global networkof suppliers to reduce the negative effects of its business
operations. To do this, ZEISS takes a risk-based approachto the systematic management of suppliers with regard
to sustainability. As such, environmental and social aspects
play an increasingly important role in the selection of andcollaboration with suppliers. In complex supply chains,environmental pollution, inadequate occupational healthand safety standards, human rights violations and childor forced labor all represent risks that ZEISS wants toproactively address. Non-compliance with environmental
and social standards can have a negative impact on
people and the environment along the supply chain andsubsequently also harm ZEISS itself. On the other hand,fair and long-term business relationships can create jobs
and positively influence environmental and social standards
along the supply chain.

In recent years ZEISS has been driving the implementationof the five core elements of the German government's
National Action Plan for Business and Human Rights (NAP).
As such, ZEISS has already taken steps toward adhering to theassociated German Supply Chain Act (LkSG) (see page 43).
Since the beginning of the reporting year, a newly formed
project group has been dealing with the requirements of the
LkSG. The procedure was adapted and expanded, particularly
with regard to the annual risk analysis. In addition, processes
were developed for preventive and remedial measures suchas contract extensions or training. In particular, internal responsibilities and necessary adjustments in risk and complaint
management have been and will be worked out in the
future.
The Supplier Sustainability Team, which operates at Grouplevel within the Supplier Quality department, pools different
activities for the operational implementation of sustainability
aspects in supply chain management, thus supporting theZEISS units. This applies especially to the achievement andfulfillment of objectives and requirements of the LkSG. Decisions on targets and approaches for anchoring sustainability
aspects in procurement are made in the steering committeeof purchasing managers. Steering by the Executive Board on
sustainability aspects in the supply chain takes place at thesteering committee of the central sustainability program.
Moreover, a variety of working groups have been formed
to drive the integration of selected sustainability topics in
ZEISS' supply chain. For example, a cross-divisional working
group is enhancing supplier management with regard to various sustainability aspects - from risk management topackaging reduction and supplier development. Anotherworking group is focusing on conformity with different
international laws related to human rights. These include
the British and the Australian Modern Slavery Acts. GroupManagement is informed and involved through corresponding
reporting lines.
ZEISS categorically rejects all forms of forced and child laborand works to ensure that environmental and social standards
are met at its sites and in its supply chain. ZEISS suppliersmust adhere to the provisions listed in the internationallyrecognized Code of Conduct from the Responsible Business
Alliance (RBA). These serve as minimum standards for humanrights, health and safety, environmental protection andbusiness ethics. The Code of Conduct is based on the UN
Guiding Principles on Business and Human Rights. Added
to that are international human rights standards like those of
the ILO.
Processes
Within the scope of the risk-based approach at ZEISS, relevant
sustainability issues are also a part of the supplier management process. Likewise, processes are needed in order to raiseawareness of sustainability requirements in the supply chain
both internally and externally and to identify and pursue any
violations of these requirements.
» New suppliers are selected on the basis of a self-assessment
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Company Profile
and Business Model

recognize the RBA or a similar code of conduct and adhere
to it. They are also obligated to share the standards with
their sub-suppliers and contractors. ZEISS does not enter
into any business relationship with any suppliers who violate
human rights. Information sharing and agreements pertaining to services, quality and various sustainability aspects aresupported by the Supplier Portal.
» In accordance with the established risk indices and theannual purchasing volume, strategic suppliers are assessed
to determine if there are any potential sustainability risks.
This risk assessment is based on the established Corruption
Perceptions Index, the Human Development Index, theEnvironmental Performance Index and on industry risks. In
order to plan further activities, a list of priorities is compiledin consultation with the ZEISS units and action plans are discussed. This makes it possible to define further action suchas conducting on-site sustainability audits at suppliers whoare particularly high-risk. During these audits compliancewith the RBA Code of Conduct is assessed. In preparation
for an on-site sustainability audit, suppliers are asked tocomplete a sustainability supplier self-assessment questionnaire to assess their own sustainability performance. The
sustainability survey on the ZEISS Supplier Portal is part ofthe supplier self-assessment.
» Strategically relevant suppliers undergo an annual evaluation
using a software tool that includes occupational health andsafety, environmental protection and energy management
criteria. Aspects such as occupational health and safety, fire
prevention and environmental management have been partof cross-divisional supplier quality audits since 2012.

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain» In the event of insufficient compliance with ZEISS' sustainability requirements, an action plan is agreed upon, with thecompany monitoring and overseeing its implementation.
Requirements must be made known so that they can be met.
To this end, and to raise employee and supplier awareness ofsustainability, ZEISS offers an e-learning course on the RBA
Code of Conduct. One focus is on upholding human rights.
Internal and external stakeholders can use the ZEISS Integrity Line whistleblower system on the company's website toreport any human rights violations within the ZEISS supply
chain (see also the chapter on Integrity and Compliance on
page 32).
Conflict Minerals Reporting
Within the scope of its due diligence obligations, ZEISS has
also established a process for identifying and assessing risks
in the 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 notdirectly purchase metals such as tantalum, tungsten, tin orgold, but does insist 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 applies the globally recognized standards of
the Responsible Minerals Initiative (formerly known as
the Conflict-Free Sourcing Initiative) in its communications
with relevant suppliers. ZEISS uses the available means
and information to verify data on the specified smelting works
in order to identify possible risks and raise supplier awarenessof this topic.

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Objectives and results
Since the establishment of the cross-divisional sustainability
program at the end of 2020, an international working grouphas been addressing the systematic anchoring of socialand environmental sustainability in the supply chain. It hascreated a program, defined specific targets for supplier management and suggested additional measures that can create
an impact in the supply chain as part of the ZEISS Agenda.
These targets and measures for the supply chain are alignedwith the focus topics of the ZEISS Sustainability Strategy:
climate action, circular economy and value for society.
In order to firmly anchor sustainability within the procurement
processes, an internal Sustainable Procurement Policy was
adopted in the reporting year. It includes a description of thesocial and environmental objectives for the supply chain andtheir implementation in supplier management. The policy
serves as a general basis for sustainability standards and responsibilities in purchasing and further internal guidelines for
implementing the ZEISS sustainability goals.
In order to provide internal training, especially for the supplierfacing functions, on the background and the objectives of theZEISS Group, a web-based training on the focus topics wasdeveloped and rolled out. In addition, initial supplier meetings
were held in the reporting year to inform them about thesteps being taken as part of the ZEISS sustainability goals forthe supply chain and to raise awareness of the measures.
By the end of fiscal year 2021/22, 73% (prior year: 72%) of the661 (prior year: 652) strategically relevant suppliers had repliedor confirmed via the supplier portal that they will comply with41

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the RBA Code of Conduct or an equivalent code of conduct.
ZEISS assessed the sustainability risks posed by the strategically
relevant suppliers using the aforementioned risk assessment.
In order to take into consideration new and changing requirements, ZEISS is currently working on adapting the sustainability
risk assessment for suppliers. Approximately 70 supplier audits
were performed worldwide, covering aspects related to occupational health and safety and environmental management.
International sustainability audits could not be performed dueto the pandemic. Going forward, ZEISS aims to take additional
needs-based measures.
No violations or complaints pertaining to human rights in the
supply chain or at its own sites were reported via the ZEISSIntegrity Line.

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Focusing on Human Rights
Due Diligence
In June 2021, the German Parliament passed
the German Supply Chain Act (LkSG). This
resulted in affected companies, including ZEISS,
having to integrate due diligence into theircorporate processes by 2023 to safeguard
human rights. ZEISS has already taken action
toward ensuring this.
The LkSG is closely based on the five core elements of theGerman National Action Plan for Business and Human Rights(NAP) from 2016 that aims to uphold human rights in the supply
chain and in a company's own processes. In recent years, ZEISS
has been working on implementing the NAP's core elements,
so the first steps toward compliance with the LkSG have alreadybeen taken. In order to fully meet the requirements of the LkSG,
ZEISS set up an interdisciplinary project group in fiscal year
2020/21. The project group is responsible for comparing therequirements with the existing processes, drafting a roadmap for
implementation of the requirements and making suggestions tointegrate necessary measures – in ZEISS' own business area aswell as in the supplier management of its direct suppliers. The
preparations and adjustments to the processes are taking place
successively. The project group also holds discussions with internal stakeholders who keep an eye on other legal requirements
like the British and the Australian Modern Slavery Acts.

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Implementation and Preparation for theRequirements of the German Supply Chain Act

1.

2.

Declaration of Principles on
Respect for Human Rights: theZEISS Code of Conduct makes clear
the importance of human rights inour own company and in the supply
chain and fully complies with the requirements of the RBA Code of Conduct. ZEISS does this to emphasizethat upholding human rights – suchas the ban on forced labor or slavery, and human trafficking, the ban
on child labor and discrimination –applies to employees and business
partners alike. Further information isavailable in the "Integrity and Compliance" chapter starting on page
30. A separate policy statement interms of the German Supply Chain
Act will be published in the coming
fiscal year.

Process for determining the actual and potentially negative
impact on human rights (riskanalysis). Considering ZEISS’ business environment, the company
has developed ways of informing
people about actual and potentiallydisadvantageous impacts on humanrights. For the first time in fiscal year
2018/19, HR staff were asked abouthuman rights risks. It was found that
employees believe there is a low riskof human rights violations at ZEISS.
Nevertheless, to raise awareness ofpotential risks, measures included a
new e-learning course for employees
and suppliers. As part of the annual
risk analysis, potential risks relating
to the human rights of strategically
relevant suppliers are assessed using
various indices and additional criteria
as defined by ZEISS (see Processes,
page 40). This process was evaluated in accordance with LkSG require-ments and adapted for the risk analysis for direct suppliers. In our own
business area, there is an establishedrisk management system as well asprocesses within the framework ofoccupational safety management andenvironmental management systems
to identify and manage risks. In the
future, the central risk management
team will expand the established risk
management process to include therequirements of the LkSG in order toensure that risks are also identified inrelation to the company's own business area. In addition, LkSG-relevantrisks that may be addressed as part ofexisting compliance processes are taken into account.

43

BACK TOCONTENTS

Company Profile
and Business Model

Strategy andSustainability

3.
Measures for avoiding negative
effects on those concerned, andevaluating measures: The resultsof the risk analysis are used in thefurther planning of systematic measures. If required, ZEISS carries out
sustainability audits on its suppliers
and supports their efforts to create appropriate plans for corrective
measures. In the future, an extensive
catalog of measures will be added, including, for example, training
for employees and suppliers. In thepast, shortcomings were identified in
the field of occupational health andsafety and transparency with regard
to working conditions. In its own
business area, ZEISS builds on theestablished processes and measuresfrom risk, compliance and occupational and environmental protection
management. The measures definedon this basis need to be adapted asnecessary in relation to the LkSG andincluded, for example, during internal audits (see chapters Compliance,
page 30, Environment, page 57, andEmployees, page 45).

1
Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

4.

5.

6.

Remedial measures are initiatedat suppliers and in the company's
own business area and their implementation is monitored when risks
or deviations become known, forexample through audits, inspections or complaints management.
The associated processes and measures are being successively expanded in accordance with therequirements of the LkSG, in particular to cover those risks that may becaused by ZEISS business activities.

Complaints procedure: sinceNovember 2018, the whistleblower system ZEISS Integrity Line has
been available to both internal andexternal stakeholders to report possible compliance violations, such as
non-compliance with human rights.
In consultation with stakeholders
such as the Works Council, it is available in 23 languages on the ZEISS
website, creating an anonymous,effective complaints mechanism tosupplement the existing processes
for dealing with suspected violations (see the "Compliance" chapter
on page 32). This procedure is slightly adjusted according to the requirements of the LkSG.

Documentation and reporting:
the ZEISS Sustainability Report,
the ZEISS website and the NonFinancial Report 2021/22 of theCarl Zeiss Meditec Group, in particular, publicize identified risks andthe corresponding measures in thecompany. ZEISS will take the legal
requirements into account for theseformats and will provide the reports
for the affected business units forthe first year of application.

44

BACK TOCONTENTS

03

EMPLOYEES45

BACK TOCONTENTS

Company Profile
and Business Model

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Success through Employees Employee Involvement"For us, culture means empowerment:
encouraging each other and trusting each other.
At ZEISS, culture goes hand in hand with rolemodels: we are all role models for reflective
and responsible action. And culture only exists
through diverse teams. We have internalized
these values and are constantly developing
them further because attitude, community anda shared vision are the foundations for oursustainable business success."

Precision, innovation, and unparalleled quality can only beachieved with motivated and qualified employees. In light ofdemographic change and the increasing shortage of skilledworkers, diversity and equal opportunities are key competitive
advantages. ZEISS is facing these challenges through clear
approaches to personnel and cultural development and by
pursuing a global recruitment strategy. This is set to make theZEISS Group even more customer-oriented, more competitiveand more digital. Important focal points in this regard areco-determination within the company and the promotion ofwork-life balance.

Georg von Erffa, Head of Corporate Human Resources,
Carl Zeiss AG

The activities and training courses offered at ZEISS directly
benefit employees and in addition have a positive impact onsociety because they strengthen the innovative power andfuture viability of an important employer and thus also secure
jobs. At the same time, employees are challenged by theincreasing demands of the changing world of work, for example through digitalization and more complex task profiles.
In the reporting year, the COVID-19 pandemic remained achallenge for ZEISS employees. ZEISS was able to make use ofexisting plans for Group-wide crisis management and draw
on the experiences and tools established in the prior year.
Digital tools for virtual collaboration, flexible working timemodels, and other measures such as an adapted procedure forshift changes in production helped keep business operations
running smoothly.

The more involved employees feel at the company, the more
motivated they will be. In Germany, co-determination is one
tool for involving employees. As a globally operating company, ZEISS also takes into account the different agreementson co-determination concluded around the world. Moreover,ZEISS regularly conducts a global employee survey to keep its
finger on the pulse of the general mood.
Guidelines, structures and processes
More than 38,000 people in almost 50 countries work for
ZEISS. Corporate Human Resources is the main partner for
dialog and negotiation for employee representatives and thepoint of contact for the HR departments at all ZEISS units.
It works with HR managers and department representatives
to define standards and procedures for strategic and overarching areas of activity and implements them within the scopeof its functional management worldwide.
Operational co-determination is firmly established at ZEISS in
Germany. Alongside the principles contained in the Foundation
statutes, it is one of the basic conditions for ensuring a highlevel of employee satisfaction. ZEISS negotiates with theemployee representatives on those issues regulated by legal
stipulations or collective wage agreements. Around 90% of
employees in Germany are covered by a collective agreement.
For employees not covered by a collective agreement, comparable working conditions are created in many places. In addition,
ZEISS regularly discusses planned changes within committees
made up of employee representatives, thus going above andbeyond the statutory requirements in Germany. The European
sites of Carl Zeiss Vision International GmbH send employee
representatives to the European Works Council (EWC).

46

BACK TOCONTENTS

Company Profile
and Business ModelZEISS also employs temporary workers to a small extent inorder to manage peaks in the operating schedule. ZEISS
offers them fair wages and working conditions comparable
to those of permanent employees, and provides companies
that hire out personnel with all legally required and necessary
information.
Objectives and results
ZEISS aims to further strengthen and expand the relationshipbetween the company and its employees. Every two years,
ZEISS uses a global and anonymous employee survey – Pulse
Check – to measure the development of the corporate culture
and the implementation of its associated strategy. The survey
is also a key indicator of ZEISS' attractiveness as an employer
and it reflects the prevalence of the values SERVE – EMPOWER– ACT – WIN in day-to-day operations. The most recent Pulse
Check survey in 2022 showed that 84 percent of people
enjoy working at ZEISS and that 75 percent of them would
recommend ZEISS as an employer.
In the past, ZEISS has paid out a bonus to all employees,
allowing them to share in the company's successful businessdevelopment. In fiscal year 2021/22, a profit participation bonus was again approved for eligible employees at the Germansites in accordance with the rules. This bonus was paid after theend of the reporting year in December 2022. Some ZEISS sites
outside Germany have their own country-specific rules that also
allowed employees to participate in the success of fiscal year
2021/22.

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

Global employee structure1

Total

2021/222020/212019/20

38,77035,37532,201» Part-time employees

2,023

1,863

1,787

» Employees with fixed-term contracts

1,402

1,698

1,512

Vocational trainees and students in a
combined study program

570

552

520

Contract workers

1,385

1,103

967

New hires

9,229

5,025

Percentage of female employees

33%

34%

34%

Turnover rate (Germany)

2.1%

2.6%

1.7%

2

3

» Part-time employees» Employees with fixed-term contracts
EMEA (excluding Germany)

2021/222020/212019/20

17,058

14,848

13,692

1,631

1,483

1,367

878

999

687

5,041

4,818

4,628

» P art-time employees

344

342

321

» Employees with fixed-term contracts

125

85

55

7,620

7,913

7,010

16

10

71

Americas» Part-time employees» Employees with fixed-term contracts

373

586

732

9,051

7,796

6,871

» P art-time employees

32

28

28

» Employees with fixed-term contracts

26

28

38

APAC

5
SocialEngagement

First ZEISS Sustainability Week
Creating awareness of sustainability and promoting
commitment – that was the goal of the first ever ZEISS
Sustainability Week. Various activities were held locallyin each case, while virtual events also brought employees
together and stimulated discussion across departmental
and divisional boundaries In addition to very practicalactions to help protect the environment, the program included formats such as panel discussions, a keynote speech
by a futurologist and videos from the individual ZEISS
business units on their sustainability program. Whether asingle tree was planted or an entire reforestation project
was supported was not the key factor. What was important was employees at ZEISS doing something together tomake the world a little bit more sustainable – whether bycollecting trash or switching from cars to bicycles. Suchinitiatives and many more were consciously implemented
by the employees during that week.

Employees by region/employee structure by region

Germany

4
Environment

1

Data query cut-off date: 30 September 2022. Data collection in headcount.
The term new hires refers to ZEISS employees worldwide, excluding GOM
GmbH and Carl Zeiss Vision Portugal. The indicator was reported for the firsttime for fiscal year 2020/21 and takes into account permanent and fixed-term
employees.

2The term turnover rate refers to all ZEISS employees in Germany excluding
those at GOM GmbH and was first published in FY 2019/20. The KPI does
not include exits due to fixed-term employment contracts, retirement, early
retirement, or death.

3

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BACK TOCONTENTS

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 recruitment, promotion
and professional development of its employees, showcasing
itself as an attractive employer in the battle to gain talented
individuals and counter the shortage of skilled workers. It
always aims to recruit many skilled workers and managers
from its own ranks. This creates attractive opportunities for
professional development and helps qualified, motivatedemployees stay loyal to 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 on projects. CurioZ is the ZEISS
venture that focuses on learning at ZEISS. Through the
CurioZ digital learning platform, ZEISS contributes to theprofessional development of its employees. Using a variety
of formats and offerings – ranging from in-person and online
courses to blended learning – CurioZ specifically promotes
the expansion of expertise, knowledge and skills.
In order to attract new employees, the company is also
leveraging target group-oriented global and local online
channels like LinkedIn, YouTube, WeChat and Research­Gate.
It is also taking part in careers events and giving presen­tations at universities to elevate its reputation as an international employer. The measures' efficacy can be seen in
the consistently positive results the company achieves in
employer rankings. These include the Trendence list ofGermany's most attractive employers for graduates andyoung professionals, and the certifications "Great place
to work" in India and "Top Employer“ in China.

ZEISS offers plenty of training opportunities and works
offering various universities with cooperative education
programs. In 2022 a total of 210 trainees and students
began a vocational training program or a combined
degree-and-vocational-training program at the Germansites Göttingen, Jena, Oberkochen and Wetzlar. Students
are being trained in areas such as industrial mechanics,
precision optics, mechatronics and industrial business
management, or completing a cooperative study programin business information systems, international business ordata science. New additions include vocational training
in fields such as data and systems analysis, digitalization
management as well as new courses of study such as civilengineering, electrical engineering, and information systems
with a focus on data science or cyber security. With its
combined study offering, ZEISS is contributing to the development of society, especially at its German sites.
Numerous programs also support up-and-coming scientists
and seasoned professionals in their careers. They pay
special attention to individual skills and the further devel­
opment of competencies. One focus is on the developmentof managers. In addition to a mandatory program that
prepares managers for their first leadership challenges,
ZEISS also offers individual training and development
opportunities for managers, such as coaching. In addition,
ZEISS also attaches great importance to job-related development measures such as rotation, including foreign assignments. In research and development, innovation, and service
and support, ZEISS also offers attractive career paths fortechnical experts that are also geared to the individual
needs of employees.

Measures and results
At the end of the reporting period, ZEISS employed a totalof 570 vocational trainees and students enrolled in acooperative study program worldwide (2020/21: 522). In
fiscal year 2021/22 around 415 (2020/21: 490) young
people completed a technical or business-related internshipat the company's German sites or wrote their thesis at
ZEISS. In addition, roughly 400 (20120/21:188) high school
students had the opportunity to explore their future career
options as part of a high school internship.
Employees also took the opportunity to work abroad for
ZEISS to further develop their skills in fiscal year 2021/22.
At present, 61 employees from Germany are working in
16 countries worldwide. At the same time, 17 employees
from abroad have been assigned to work in Germany (asof October 2022). Assignments in third countries, which
see US-based employees working in places like China or
being posted from India to Mexico and Japan, are becoming
increasingly important.
In the reporting year, ZEISS CurioZ enhanced and expanded
the learning platform of the same name and the portfolio oflearning content. This applies to the "Future Learning Paths"
that teach interdisciplinary knowledge and skills that are particularly relevant for the future. In addition, CurioZ concluded
a contract in the reporting year with the learning provider
LinkedIn Learning, which is set to become a long-term partner
for learning at ZEISS due to its offerings that are particularly
well aligned with the ZEISS strategy. Employees now havepermanent access to more than 16,000 video courses on
business topics.

48

BACK TOCONTENTS

Company Profile
and Business Model

Digital participation for employees in production and operational areas is also important to ZEISS. In fiscal year 2021/22, thefoundations were laid to offer all these employees in Germany
an electronic account to access their digital ZEISS workstation
application via a variety of devices. The project was completed
successfully in fiscal year 2021/22.

Strategy andSustainability» Number of active users worldwide who completed at least
one online course: 31,389 (17,311 in Germany)1» 260,605 online courses completed worldwide(110,188 in Germany)» Number of downloads from the ZEISS e-library: 14,044(of which 12,014 e-book downloads and 2,030 audio bookand MicroTalks downloads)

2
Products andValue Chain

Figures on learning in Germany
Fiscal year (FY)2021/222020/212019/20

Total no.
of completed
courses

Total
Share of men
Share of women

136,19672%
28%

94,73573%
27%

91,23074%
26%

Total number ofparticipant days2

Total
Share of men
Share of women

46,42672%
28%

34,92275%
25%

30,56076%
24%

Figures on learning – worldwide
Figures on the use of the ZEISS CurioZ learning platform infiscal year 2021/22

1
Integrity andCompliance1	The number of active users refers to ZEISS employees. Customers andsuppliers, who can also use the platform, are not included in the figures.

2	Based on the estimated length of the training course (one participant day
corresponds to 7.5 training hours) without travel or preparation time

3
Employees

4
Environment

5SocialEngagement

New Learning for the Digital Workplace
The Digital Transformation @ ZEISS Future Learning Path
offers customized content on the topic of digitalization
to different target groups within the ZEISS Group. To
date, three learning programs have been implemented,
reaching over 5,500 participants in total and each offering specific features. The learning program for managers
and experts uses a variety of current learning formats –including group challenges, live sessions, and interactive
content - and was awarded the internationally recognized
Brandon Hall Excellence Award in Gold in 2022. The
learning program for customer-facing employees offers aparticularly innovative format: the ZEISS Late Night Show
combines information with entertainment and music. The
learning program for Chinese employees is complemented by a digital conference held every six months which
provides insights into current digitalization trends innumerous presentations and demo sessions.

49

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 38,000 employees in almost 50 countries, diversity
is part and parcel of everyday life at ZEISS. The company isshaped by a diverse array of skills, mentalities, leadershipand work styles, cultural backgrounds and lifestyles. This is agreat advantage because diverse teams are more creative andsolution-oriented, which helps them innovate. That is why thecompany is continuing to focus on equal opportunities while
actively promoting diversity among its workforce. By creatinga working environment in which all people feel safe andwelcome regardless of their origin, gender, religion, sexual
identity or other characteristics, ZEISS is making a positive
contribution to pushing back discrimination and violence insociety and setting a good example.
At the same time, diversity is another key to the global successof an international company like ZEISS. That's because employees
know the markets, understand customers’ different needs
and can respond to business partners’ cultural practices andcustoms. This plays a major role in securing local acceptanceand trust for the company.
Guidelines, structures and processes
Around the globe, ZEISS stands for diversity, tolerance andopenness, and rejects all forms of violence. These values help
to create a peaceful, prosperous and modern world in which
everyone is equal before the law. The company rejects intolerance, racism, violence and extremism. This commitment isanchored in the Foundation statutes and in the ZEISS Code of
Conduct. It 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 othercharacteristics". The ZEISS Integrity Line was created to assist

in the event of violations of the Code of Conduct. It can also
be used to provide information anonymously. Further information can be found in the "Compliance" chapter on page 31.
ZEISS further bolstered its commitment to diversity by signing
the Diversity Charter in July 2017. This business initiative aims
to promote recognition, appreciation and the inclusion ofdiversity in the German workplace. In order to actively promote
the advancement of women at management levels, ZEISS alsojoined "Initiative Chefsache" in March 2022. This is a network
for the promotion of gender balance in leadership positions.
Getting more women into management positions is seen as agreat opportunity at ZEISS. ZEISS has also joined the Employers for Equality program to benefit from the cross-company
exchange of experience and to offer training and skill-building
workshops to network managers within the company.
Corporate Human Resources is responsible for managing
activities that promote culture (Cultural Journey) and diversity.
It has the support of multiple committees and reports to the
Executive Board. It has the support of several committees andreports to the Executive Board. Management and executives
are encouraged to exemplify the ZEISS' values, educate employees about rules, monitor compliance, follow up on violations
and set a good example when it comes to acting with integrity.
Managers should ensure an open feedback culture, tolerance
and respectful behavior in their teams. This reflects the objective of the Cultural Journey, which is divided into the guiding
themes of role modeling, empowerment, diverse teams andfeedback and thus also supports the strategic goals of #agenda25, the strategic agenda of the ZEISS Group. In this context,
ZEISS provides its managers with a communication kit contain-

ing material on #agenda25 communication as well as a toolbox
with templates for team workshops on the key topics.
The local HR departments and the network of cultural ambassadors support the Human Resources corporate function indesigning and implementing cultural development activities.
Furthermore, the first training sessions on the topic of "unconscious bias" were started at top management level.

Establishment of an LGBT*IQ network
at ZEISSIn the reporting period, the new international LGBT*IQ
network "Proud@ZEISS" was founded on the initiativeof an employee in cooperation with Corporate Human
Resources. The Network is intended to make LGBT*IQ
people at ZEISS more visible, let their voices be heard andtheir points of view considered in further development of
ZEISS' corporate culture. The call to all LGBT*IQ people
and straight allies has already been taken up by morethan 80 employees with hubs in Germany and the USA
and brought to life with an international kick-off session.
There is an active exchange with LGBT*IQ networks ofother companies in order to support each other in thedevelopment process of the respective networks.

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BACK TOCONTENTS

Company Profile
and Business Model

When it comes to its strategy for promoting diversity,
ZEISS focuses on five aspects in particular:
Gender: accepting and seeing the potential of every individual is our priority. Everyone has the same opportunities regardless of their gender identity and sexual orientation.
We strive for equal treatment when it comes to filling
top management positions and remuneration.
Generations: five different generations work together at
ZEISS and we see this generational diversity as a great oppor­
tunity. We therefore promote effective collaboration by
securing experience and knowledge in the workforce throughknowledge management and lifelong learning.
Physical and mental abilities: people with physical ormental disabilities are part of our ZEISS team and contribute toour joint performance with their talents. We optimize our work
processes accordingly by providing opportunity for training
and employment as well as individual solutions. We also raiseawareness among managers of the need to adapt jobs to therespective capabilities of employees at different stages of theirlives.
Internationality: ZEISS brings people from all cultural
backgrounds together. We see ourselves as one team –regardless of language, ethnicity, religion, skin color orculture. We see diversity as an opportunity and the key to
new markets because our openness enables us to attract
new customers and talent worldwide. We therefore specifically promote dialog among our employees across borders.

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

Work culture, ways of working and social background:ZEISS offers modern working time models to all employees
in different life situations. This sets us apart from the competition and makes us an attractive employer for all employees. It is also our responsibility as an employer to create anenvironment in which the potential of every employee canbe unlocked, regardless of social background and personal
experience.
Objectives and results
ZEISS aims to ensure that all employees can collaborate
successfully and respectfully with one another – regardlessof their professional background, age, gender, origin andworking culture. To strengthen the diversity that ZEISS
embraces, in fiscal year 2020/21 the company and its em­
ployees in Germany continued to pursue or set up thefollowing initiatives across the globe:» International ClubThe International Club (INC) is a cooperation network for
all people who work at ZEISS worldwide and their families.
The club currently has employees from over 50 countries
among its members. Smaller groups of between 10 and
30 participants come together for meetings organized by
the International Club on the Ostalb. But the INC has many
more members. Through the meetings, INC members
get to know like-minded people and build a private andprofessional network.

3
Employees

4
Environment

5SocialEngagement» Young ZEISSThe Young ZEISS network promotes a valuable exchange
between the generations and connects employees acrosssegments, sites and business units. The members' different
professional and personal backgrounds enrich the discussions and enable diverse approaches to work-related issues.
» Different women's networks
The MentoringWomen@SMT network supports female
managers in their professional and personal development
and encourages them to network among themselves. Another example is the newly estab­lished Women@ZEISS network
for women, which is designed to serve as a platform forsharing experiences and provide new ideas for professional
and personal development. The network with more than
400 members is committed to creating a working environment in which women can develop their potential evenbetter, take on leadership roles more frequently and thus
contribute even more to the success of ZEISS.
» ZEISS Women Award
The ZEISS Women Award honors outstanding students of IT,
business information systems and media information
systems to increase the visibility of women in IT professions
and create role models. The winners are selected by a jury
composed of successful women from the worlds of scienceand business. The three ZEISS Women Award winners
received staggered cash prizes.

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BACK TOCONTENTS

Company Profile
and Business Model» New in North America: the Including You initiative
The aim of the initiative is to encourage employees to set
up and run additional networks adressing various issues
relating to diversity. ZEISS supports the leaders with training
and assists with networking, communication and financingof the activities. In addition to Proud@ZEISS, other networks
established include the Parents@ZEISS, disABILITY@ZEISS,Women@ZEISS and Veterans@ZEISS.

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

Culture Ambassadors: Creating
understanding
In order for ZEISS to successfully implement its goals, italso needs to continue to develop its corporate culture
accordingly across the globe. This is why we have cultureambassadors. The culture ambassadors support thecontinuous development of the ZEISS corporate culture
and carry out local activities at their sites. They help theirfellow employees understand the implications of the threeculture guiding themes – empowerment, role modeling,
and diverse teams. These employees come from acrossthe ZEISS world and organize their work on individual thematic focus topics independently in overarching teams.

3
Employees

4
Environment

5SocialEngagement

Global age structure of the ZEISS Group in FY 2021/22
Age distribution

Male

FemaleDiverse

Total

Under 30

4,978

2,688

3

7,669

30 to 49

15,2397,423

322,66550 and older

5,706

2,728

2

8,436

More about the ZEISS Cultural Journey in the
ZEISS Sustainability Booklet starting on page 24

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BACK TOCONTENTS

Company Profile
and Business Model

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Work-life Balance
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.
Balancing work and personal life has become an important
issue, not least of all due to the COVID-19 pandemic. Thereremains, for example, an increased need for flexible working hours and remote working as childcare options remain
limited in many instances.
By providing individualized offers for balancing work andfamily life, ZEISS has a positive impact on the private lives of
its employees and the needs of their relatives, for example
with regard to childcare or nursing care. Not providing suchflexible solutions could potentially have a negative impact on
the workforce.
Guidelines, structures and processes
Overall responsibility for promoting a work-life balancelies with Corporate Human Resources. Needs are generally
assessed and relevant measures taken locally at the regional
companies. In Germany, Corporate Human Resources
engages with the works council, the employees and representatives from the different German sites. In fiscal year
2021/22, remote working was prioritized for example.

Objectives and results
In addition to expanding flexible working hours and workplace models, ZEISS, the Works Council and employees
implemented further measures in fiscal year 2021/22 to makeit easier to balance work and family life:» Adoption of the group works agreement for Germany that
regulates remote working in a way that is fit for the future» Launch of a digital childcare offering for all employees andincrease in the number of available daycare places» Reduced prices for children's vacation programs» Expansion of the consultation offering for employees caring
for family members and continuation of consultation
offerings on childcare
Employees and their families affected by the COVID-19
pandemic received consultations and could take advantage offurther work-related and individual measures.

By offering Group-wide agreements on flexible workplacedesign 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 therelevant works council.

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and Business Model

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Occupational Healthand Safety
ZEISS considers guaranteeing a healthy work environment
and a safe workplace a fundamental obligation toward its
employees. This commitment also applies to employeesof third-party 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. Possible negative effects
for employees such as accidents at work need to be minimized.
One of the biggest challenges in terms of occupational
health and safety in the reporting year was dealing with the
COVID-19 pandemic. The structures and processes createdin the prior year continued to be used for this purpose. In
addition to managing the consequences of the pandemic,
the main focus last year was on getting back to normal.
Aside from implementing central requirements, site-specificmeasures were also taken. One key component was thedevelopment of plans for the hybrid use of workplaces,
among other things.
Measures from the prior year such as social distancing andhygiene rules, mandatory masks, travel guidelines andrules on the use of shared spaces were either retained or
adapted to the current pandemic situation. The definedmeasures were implemented by segment-specific task forces,
meaning the segments and countries were able to respondaccording to their particular situation as needed.

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. At Executive Board
level, the Chief Financial Officer is responsible for this topic.
The respective heads of all ZEISS business units are responsible
for the continuous improvement of occupational health andsafety performance as well as the implementation of Groupwide policies. Group-wide guidelines set out the obligations
and state that the management must provide evidence at theannual management review that:» 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 order to further strengthen the topics of occupational
health and safety and occupational health management
within the ZEISS Group, the Executive Board initiated the
Health&Safety@ZEISS project in the past year. During the
project phase, analyses were carried out worldwide on
existing health services at ZEISS and a common vision of
how the topic of health should be addressed at ZEISSin the future was developed. As a first measure, the areas
were assigned to the existing Corporate Security function
where occupational health and safety issues will be con­solidated in the future. The goal is to establish a global
Health and Safety structure, which specifically continues totake into account the regional aspects of the ZEISS units.

The operational responsibilities of all ZEISS employees andmanagers with regard to occupational health and safety are
outlined in a corporate policy. A central coordinator is globally
responsible for the topic of occupational health and safety(OHS). All ZEISS Group entities are required to appoint an OHS
officer in writing. The duties of an OHS Officer can vary in linewith local legislation. However, they always include advising
management and assessing occupational health and safety
risks. Appropriate training is organized by each company unit.
Furthermore, all ZEISS employees are called on to actively promote occupational safety and report risks to their supervisorsor the respective OHS officer. In addition to reporting near
accidents and unsafe situations, the relevant line managers
at German sites are required to carry out a cause analysis anddefine and implement measures if necessary. Occupationalsafety experts and/or company physicians can assist withdefining these measures where necessary.
To ensure ongoing communication on occupational healthand safety topics, the Chief Financial Officer, Head ofCorporate Auditing, Risk and Quality Management and theglobal OHS coordinator meet at regular intervals. The Chief
Financial Officer is informed about the frequency and severityof work-related accidents at ZEISS. A globally standardized
KPI is used for this purpose.
In Germany, the Head of Occupational Health and Safety
takes on an advisory role for all sites pursuant to Germany’s
Act on Occupational Physicians, Safety Engineers and Other
Occupational Safety Specialists (Arbeitssicherheitsgesetz). To
this end, a set of rules has been compiled to regulate processes and procedures. All companies in Germany are obligated54

BACK TOCONTENTS

Company Profile
and Business Modelto implement them and they have been integrated into the
ZEISS management system. This set of rules is certified to theglobally recognized ISO 45001. The occupational health andsafety management system at ZEISS in Germany covers all
sites including non-ZEISS employees. Therefore, contractors
must consent to ZEISS' policy for external companies prior toaccepting the commission.
As per the German Act on Occupational Physicians, Safety
Engineers and Other Occupational Safety Specialists, ZEISS
must form safety committees (OSCs) at each business unit.
They are to meet every quarter to discuss topics related tooccupational health and safety and accident prevention. Since
at least one representative from each company management
team belongs to an OSC, it is not only an advisory committee, but also a decision-making body. The committees also
include members of the Works Council, company physicians,
occupational health and safety experts, safety officers and, if
applicable, a representative for severely disabled employees.
A total of 19 strategic business units at three German sites
and ten international sites are certified to ISO 45001, theinternational standard for occupational health and safety
management systems (prior year: 19 strategic business units).
An occupational health and safety management system basedon the requirements stipulated in ISO 45001 has been implemented at all other ZEISS sites in Germany.
Each month, 27 business units in Germany and 30 international production sites with a total of around 30,000 employees
supply statistics on the frequency and severity of work-related
accidents. The OHS Coordinator reviews the statistics together

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chainwith the head of the business unit and the employee who
submitted the figures. Monitoring plausibility improves thereporting 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.
Occupational Health Management (BGM) in Germany was
managed by Corporate Human Resources until 30 June 2022.
Since 1 July 2022, Occupational Health Management andOccupational Medical Services Germany have been included
in Corporate Security – as a result, Occupational Health and
Safety, Occupational Medical Services and Health Management have now been combined into one corporate function.
Initiatives are also being run at sites worldwide. At the start of2021, ZEISS in Germany forged a partnership with health insurer BARMER, offering employees preventive health measures
free of charge. These include tailored measures for different
groups of employees, such as employees in production, shifts
or field service. Corporate Human Resources ensures that theoffers are available to all employees in Germany.

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Since summer 2021, the working groups in Germany comprising healthcare professionals, Works Council members,
representatives for severely disabled employees, Occupational
Health and Safety, the Occupational Medical Services and HR
departments have had access to a toolbox. It can be used
to select preventive health measures for employees, such as
prevention courses, modules for health days or offers for
specific target groups on exercise, nutrition and mental
health. Corporate Human Resources and since 1 July 2022
Corporate Security support and monitor the work with thetoolbox.

Due to the COVID-19 pandemic, thus far the focus has beenon virtual offerings. This included, for example, access to an
online gym and webinars on topics such as good nutrition or
healthy sleep. For some time now, face-to-face offerings havealso been expanded.
In September 2022, the ZEISS Health Days began at many sites
throughout Germany. More in-person offerings will follow.

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Objectives and results
The ZEISS Group's main objective is to reduce the frequency
and severity of workplace 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 goal for fiscal year 2021/22 toachieve a value of less than 2.75 has been met (LTIFR = 2.55).
The accident figures are thus stable compared to the prioryear (LTIFR = 2.32), despite a slight upward movement. At
the same time, it is clear that additional measures are needed
to further reduce the number of accidents, and that thesemeasures must be aimed above all at developing a culture ofsafety and health protection.
There were no fatal work-related accidents in the reportingyear. The majority of accidents that occurred within the ZEISSGroup in Germany were caused by personal conduct suchas ignoring work instructions or not paying attention. ZEISS
primarily responds to this challenge by organizing trainings for
managers and running information campaigns to raise employee awareness. The COVID-19 pandemic and the working
model adjustments it gave rise to, e.g. telecommuting, did
not have a major impact on the accident figures in fiscal year
2021/22, as evidenced by the data.
The ZEISS Group aims to increase the level of standardizationin its internal processes related to occupational health andsafety. In this context, global accident reporting via theQuentic occupational health and safety management software
was initiated in fiscal year 2021/22 and fully implemented
in Quentic at the end of fiscal year (1 October 2022). Thus,

Strategy andSustainability

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Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Performance Indicators for Occupational Health and Safety in Fiscal Year 2021/22
LTI

LTIFR

SVR

LCDR

Working hours

Germany

90

2.74

18.1

49.64

32,836,474

EMEA (excluding
Germany)

19

3.64

20.2

73.52

5,222,973

Americas

31

2.51

65.7

165.02

12,344,011

APAC

8

1.06

41.9

44.36

7,551,717

Total

148

2.55

29.6

75.68

57,955,175

starting in fiscal year 2022/23, OHS officers at manufacturing sites globally will report their accident figures in a moredetailed manner in Quentic. This software allows work-related
accidents, near misses and critical situations to be reported
and monitored. It also simplifies the planning and documentation of safety training, the preparation of risk assessments
and documentation and creates a high level of transparency
in terms of occupational health and safety measures and fire
safety inspections. Last but not least, it creates great trans­parency with regard to the measures from occupational healthand safety and fire safety inspections. Overall, 2,216 managers and occupational health and safety officers have been
trained to use the new software since it was introduced.

» Lost Time Injury Frequency Rate (LTIFR): work-related
accidents per one million target working hours (corresponds
to 500 full-time employees) in one fiscal year (frequency).
Commuting accidents are not included.
» 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.

» 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).

* However, due to reporting cultures that vary from country to country, it can be assumed that some work-related accidents are notreported in the same way as they are at the ZEISS sites in Germany. Such effects are not factored into the performance indicator ofreported work-related accidents.

56

BACK TOCONTENTS04

ENVIRONMENT57

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Environment

5SocialEngagement

Efficient Use of Natural Resources"ZEISS aims to achieve carbon neutrality in its
own activities worldwide by 2025. In this way,
ZEISS is making a contribution to the global
targets set in the Paris Agreement of limiting
global warming to well below 2°C. In fiscal
year 2021/22, we succeeded in supplying
almost all of our ZEISS sites worldwide withgreen electricity."
Dr. Nicole Ziegler, Head of Sustainability, Carl Zeiss AG

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. ZEISS' corporate activities also require
the use of natural resources and therefore contribute to thegrowing scarcity of required raw materials and to negativeenvironmental impacts due to the mining, processing and disposal of materials. The results can be – or already are – rising
prices for energy, raw materials, materials and waste disposal,
which in turn affect competitiveness.
That is why ZEISS also optimises its business processes in termsof ecological and economic aspects and designs them in a
way that requires as few resources as possible. ZEISS also takes
environmental aspects into account, from product development
through to deployment at customer sites in order to render
many end-of-pipe activities superfluous (see the chapter on
Products and Value Chain, page 37).
Guidelines, structures and processes
In order to reduce its impact on the environment and climate,
ZEISS works continuously toward reducing its consumption
and emissions. In this context, the company set itself new environmental targets with regard to water, waste, energy andCO₂ emissions that it aims to achieve by fiscal year 2024/25.
ZEISS embarked on the path of making more efficient useof resources early on. Already in 1998, the company set out
globally applicable environmental principles. To implement
them, the company uses an environmental management
system in accordance with the international ISO 14001
standard. The environmental performance requirements arelaid out in a standard operating procedure on environmental
protection that is binding throughout the Group.
The Chief Financial Officer of Carl Zeiss AG bears overall
responsibility for the implementation of the ZEISS Group's
environmental management system. An environmental officer
appointed at Group level assists the ZEISS business units with
the implementation and helps them identify suitable measures. Additional officers are appointed at each site. At theend of the reporting period on 30 September 2022, 33 business units at 15 of the ZEISS Group's production sites werecertified to ISO 14001:2015.
A company suggestion scheme has been established at allsites in Germany in which employees can participate - thesame applies to the Minneapolis (USA) - ZEISS Industrial Quality Solutions – and Shanghai (China) sites. The submissions areassessed based on their feasibility, impact and efficiency. In
the past, suggestions were submitted, for example, on how to
improve energy efficiency, conserve water and chemicals, andreduce the amount of waste. Employees can use an internal
website to find out how to submit their suggestions andview the latest statistics on the ideas submitted. Ideas from
employees which meet ZEISS' stipulated criteria receive a small
financial reward and often recognition at local level.
For many years, the Environmental Protection working groupof the ZEISS Group has successfully facilitated the sharing of
information and best practices between the sites in Germany. The annual meetings and are attended by officers forthe integrated management system, environmental officers,
environmental coordinators, representatives from the Waste

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BACK TOCONTENTS

Company Profile
and Business ModelManagement, Wastewater Technology and Utilities Management departments, hazardous materials officers and environment, health and safety specialists (EHS), and representatives
from the central Sustainability team.
Water and effluents
Water is a valuable resource that is becoming increasingly
scarce in many parts of the world due to climate change. It
is therefore a top priority to use it responsibly. ZEISS procureswater primarily from the public drinking water supply and uses
it for manufacturing and cleaning processes, and as coolingand sanitary water. Effluents resulting from production processes are treated in the company's own treatment plants andsubsequently drained into the municipal sewer system. The
responsible supervisory authorities are actively involved since
the implementation of measures for saving water – above allin conjunction with permits for water treatment plants – is aclear, ongoing statutory requirement. Regular internal inspections ensure strict compliance with these standards.
ZEISS supports measures to save water at all its sites, especiallyin regions characterized by a dry climate. These include ZEISSVision Care sites in Mexico, India, China and California, USA.
At the site in India, water scarcity in hot summers is a major
problem. For this reason, ZEISS has installed a rainwater collection system on the roof of its production facility in Bangalore.
During the monsoon season water is collected, stored andtreated so that it can be used for the industrial production processes. Water that has already been used is recycled through awater recycling system. As a result, roughly 95 percent of thewater initially used for eyeglass lens production can be reused.
This has saved more than 6.8 million liters of water over theStrategy andSustainability

1Integrity andCompliance2
Products andValue Chain

past three years. Further information on the water-saving measures can be found at in the ZEISS Sustainability Booklet.
Material
When selecting and using raw materials, technologies andproduction processes, ZEISS considers their environmental compatibility. This applies in particular to product development (seethe chapter on Products and Value Chain, page 37).
However, ZEISS is also constantly looking for more environmentally friendly alternatives and processes in production. As an
optics and optoelectronics company, the ZEISS Group primarily
uses materials and production processes that have a low environmental impact and are easy to monitor. Wherever possible,
potentially hazardous materials are replaced withless problematic substances.
Moreover, recyclability is a key criterion when selecting a material. The aim is to close material cycles. 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 quality and the residual
coolant can also be reused.
In fiscal year 2018, the digital signature was rolled out worldwide at ZEISS. This means that documents no longer have tobe printed, signed and scanned or sent by post. In fiscal year
2021/22, a total of around 28,300 documents with a total ofaround 177,000 pages were signed electronically. This equates
to not printing 531,000 pages of paper (assuming an averageof three printed copies), and approximate savings of about
2.6 tonnes of paper and 2.6 tonnes of CO₂.

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Reduce, reuse, recycle and repair
Reduce, reuse, recycle and repair are known terms
used to describe a circular economy. For ZEISS, this also
includes product quality: the longer a product lasts,
the less often it has to be reproduced. ZEISS has been
known for the longevity of its products for many years.
Just how much commitment is invested in long-lastingproducts is well illustrated by the ZEISS DTI 3 thermal
imaging camera, which was subjected to extreme
temperatures and shock loads during development,
exposed to UV light and covered in salt spray and dust.
This has resulted in a long-lived device that functions
even under extreme conditions. The possibility of repair
also contributes to the long durability of products. ZEISS
has been known for decades for its excellent service,
which provides spare parts for many discontinued products. This service extends the life of the products andthus also the materials used. Last but not least, ZEISS
has long attached importance to ensuring that the proportion of recycled materials continues to increase. A
recent example is the product bags made from recycled
PET bottles for newly launched ZEISS products from the
Hunting and Nature Observation business unit. In 2021
alone, over 16,000 bottles were recycled in this way.
On average, around two and a half bottles are processed in each bag.
More on recycling and repairs in the ZEISS Sustainability
Booklet starting from page 21

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Company Profile
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Waste
Circular economy is a key part of using resources responsibly.
The production and the complete life cycle of the productmust always be considered. This way, particularly durable
products are a major way to avoid waste in the downstream
supply chain.
In keeping with this, ZEISS runs service, repair and refurbishment programs for its products in order to increase theirservice life. Further information is available in the chapter
titled "Products and Value Chain" on page 37.

Kanban: Applying Efficient Methods to
Reduce Plastic and Cardboard Waste
The Kanban production process control method has
been used at ZEISS for around ten years and drives thecircular economy in the area of production logistics.
This avoids unnecessary packaging waste as well as transport-related product damage. In figures, Kanban saves
between 2.4 and 2.8 tons of cardboard waste and between 1.4 and 1.8 tons of plastic waste per year at ZEISSIndustrial Quality Solutions and its suppliers in Europe.
This means that around 60-70% of the work­load can be
reduced on delivery.
More about Kanban in the ZEISS Sustainability Booklet
starting page 32

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

To manage the waste produced at its sites, the ZEISS Group
operates a waste management system whereby waste is
generally avoided, minimized or recycled. This is taken into
consideration during production and process planning. All
managers are urged to work toward these goals. If it is notpossible to avoid or reuse waste, it should be recycled forenergy as far as possible. Waste that can neither be prevented
nor recycled is disposed of properly. ZEISS selects the mostenvironmentally friendly disposal method that is also economically viable.
Objectives and results
In fiscal year 2020/21, ZEISS set itself new reduction targets
related to water consumption and waste. The Executive Board
approved these in October 2021. By fiscal year 2024/25,
water consumption is set to fall by 15 percent relative to thecompany's value added, defined as the sum of EBITDA andpersonnel expenses. During the same period, the amount ofwaste generated is to be reduced by 10 percent relative to thecompany's own value added. The reference year for all targets
is the 2018/19 fiscal year.
In the reporting year, ZEISS has achieved the target value for
reducing water consumption by fiscal year 2024/25: as com­pared to reference year 2018/19, it was possible to reduce
relative water consumption by 25 percent. Here, the aim
is to sustain or build on this improvement in the coming years.
In the same period, absolute water consumption increasedslightly due to the company's growth.

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circulation of water, e.g. in production and cleaning systems
among other things. In fiscal year 2021/22, the very highvalue added also played a major role: with just a slightincrease in absolute water consumption, ZEISS was able toachieve signi­ficantly more value added as compared to thereference year.
In the reporting year, ZEISS was able to reduce the relative
amount of waste by 29 percent as compared to the reference
year 2018/19. Thus, ZEISS has achieved the target value for
reducing waste by fiscal year 2024/25. Here, too, the aim is tosustain or build on this improvement in the coming years. In
the same period, the absolute amount of waste slightly
decreased.
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).
Moreover, all of the business units certified to ISO 14001
set their own targets for improving their environmental
performance as part of their area-specific environmental
programs. One goal, for example, is to ensure that the solvent
consumption does not exceed a defined total annual quantity
or a certain amount per manufactured product.

The reduction in relative water consumption can be attributed
to the reuse of water in rinsing processes and the internal

60Company Profile
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Strategy andSustainability

Water consumption1

Waste volume

2018/192018/192019/20

2019/20

2020/212020/212021/222021/222024/25
100

200

300

400

500

600

Water consumption [in m3 / €m value added]
Target set for 2024/25...

2020/21

1958

1,905

115
10
1,833

125
16
1,763

4,947

4,399

3,623

Water consumption[in m3 / €m value added]

396

433

525

Relative change to reference
year 2018/19 [in %]

-25

-17

0

Total water consumption[in 1,000 m³]» of which groundwater» of which surface water» of which third-party water
Total value added at ZEISS
[€m]

2

3
Employees

4
Environment

5SocialEngagement(-10 %)
0

1

2

3

4

5

6

Waste [in t / €m value added]
Target set for 2024/25

2021/22

Fiscal year (FY)2
Products andValue Chain

2024/25(-15%)
0

1
Integrity andCompliance2018/19
1,901...

2021/222020/21

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

19,146
4,811
14,336

20,624
4,611
16,013

19,684
3,757
15,926

Total value added at ZEISS
[€m]

4,947

4,399

3,623

Waste volume [in t /€m value added]

3.87

4.69

5.43

Relative change to reference
year 2018/19 [in %]

-29

-14

0

Fiscal year (FY)2018/19ZEISS collected water consumption data by source for the first timein fiscal year 2020/21.

1

At ZEISS, value added is defined as the sum of earnings before
interest, taxes, depreciation and amortization (EBITDA) andpersonnel expenses.

2

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Climate Protection at ZEISSOne of the most pressing tasks at present is to reduce theimpact of climate change. ZEISS acknowledges the global goal
formulated in the Paris Agreement of limiting global warming to below 2°C and has accordingly derived its own targets
and measures. In this context, ZEISS has set itself the goal ofachieving carbon neutrality in its Scope 1 and Scope 2 emissions
by 2025. In addition, the company is striving to decarbonize
the upstream supply chain. Scope 3 emissions were calculated
for the first time in fiscal year 2020/21. Scope 3 emissions were
calculated for the first time in fiscal year 2020/21. A renewed
analysis was initiated at the beginning of the new fiscal year
2022/23.
Guidelines, structures and processes
When it comes to reducing its emissions, ZEISS takes a threepronged approach that involves prevention, reduction and –if there are no other options or if not economically viable –compensation. As a first step, ZEISS puts its focus on
Scope -1 and Scope -2 emissions.
The best way to reduce emissions is to not produce them inthe first place. To this end, ZEISS has given top priority toenergy-saving measures. ZEISS Energy Management is tasked
with keeping energy-related KPIs stable or improving them,even if production quantities increase. 100 companies in the
ZEISS Group in the European Union and the UK have beencertified to ISO 50001 international standard for energy
management standard. Each of the units has appointed anenergy manager who is responsible for continuously improving
energy-related performance. The focus is on all of the operational processes, machines, appliances and equipment, alongwith its buildings and infrastructure.

Reliable and consistent energy and emissions data form thebasis for managing consumption. ZEISS set up a global energy
data platform in order to further improvie the data collection
process. It is designed to collect data on all ZEISS sites worldwide with significant energy consumption. By the end of fiscal
year 2021/22, around 151 sites had already been includedin the program. The platform will now be rolled out at theremaining sites.
ZEISS aims to procure any energy that cannot be saved fromrenewable sources. The company is doing this in two ways:
through its own production process and by purchasing green
power. To produce its own energy, the company is expanding
its photovoltaic and geothermal systems.
In Germany, green power can be sourced from wind energy
via power purchase agreements (PPAs). In this case, green
power is purchased straight from the source as part of longterm agreements. Green power is thus purchased from certified
providers. ZEISS has defined strict quality criteria for this. ZEISS
only sources green power that has been listed in official
registers and rejects green power from nuclear power or largehydroelectric power stations. ZEISS also bases its selection
criteria on the age and technology of the systems, regions oforigin and additional aspects. For instance green power, whichis generated through solar and wind energy from systems
that are no more than five years old and which has the"OK-Power" or "EcoEnergy" label, is preferred. This conversion
is supported and strategically driven by the "Green Infra­
structure" working group which is part of the Group-wide
sustainability program of the ZEISS Agenda. It has set itself
the goal of ensuring the worldwide conversion to green power

at all main sites and increasing the volume of green power
generated on site.
ZEISS compensates for certain emissions that are either unavoidable or very hard to avoid for economic reasons, such as
the sourcing of gas and district heating, by supporting selected
projects. ZEISS only supports compensation projects that meetinternationally recognized standards: the CER Gold Standard,
the VER Gold Standard, the Verified Carbon Standard (VCS)
in connection with the Climate, Community & Biodiversity (CCB)
standards, and the VCS in connection with the Social Carbon
Standard. In the reporting year ZEISS focused more closely on its
Scope 3 emissions and developed an action plan to specificallyengage with more emissions-intensive suppliers. These emissions are produced in the supply chains, e.g., through the mining of raw materials, the production of primary products or theirtransport to ZEISS. This also includes waste disposal, commuting
and business trips. To gain a better under­standing of the Scope
3 emissions and to reduce them in a targeted way, they wereanalyzed for the first time in fiscal year 2020/21 with respect tothe upstream value chain. ZEISS has been compensating for a
portion of the Scope 3 emissions, namely CO₂ emissions createdthrough business flights, since October 2019.
Objectives and results
ZEISS aims to achieve carbon neutrality in its Scope 1 and Scope
2 emissions by fiscal year 2024/25. Until fiscal year 2021/22
it was the goal to make the use of electrical energy (Scope 2)
at the major production sites CO₂-neutral. This goal has beenachieved. By fiscal year 2024/25, the energy consumption of allother locations as well as the direct emissions from combustion
processes in the company's own facilities or vehicles (Scope 1)

62

The performance indicators for energy and CO₂ emissions arerecorded and consolidated globally at ZEISS. They include all of
the ZEISS Group's major production sites (67 sites varying insize and activities). The CO₂ emissions are recorded as per
ISO 14064-1, which takes the Greenhouse Gas Protocol into
account.
As part of energy procurement, the company continued
to purchase green power in the reporting period. After all
German sites have been supplied with green power already3
Employees

200,000
150,000
100,000
50,000CO₂ Emissions [in t CO₂-eq]» Scope 1
Gas
Heating oil
Fuels 4Volatile gases 5» Scope 2District heating
Electricity

62,25556,08934,469584
16,549
4,487
6,165
6,083
82

37,962
31,416
31,075
341
n/a
n/a
6,545
4,763
1,782

209,406
31,68631,038648
n/an/a
177,720
6,975
170,745

Total value added at ZEISS1 [€m]

4,947

4,399

3,623

13

9

58

40,50031,583

0

24

/2

5

2018/19

20

2
/2
21
20

20

/2

1

0
20

19

/2

9

...

2020/21

CO₂ compensation [in t CO₂-eq]

Compensation: ZEISS aims to achieve CO₂ neutrality in its Scope 1 and2 emissions by fiscal year 2024/25. Since ZEISS cannot avoid all GHG
emissions, it will compensate for the remaining GHG emissions. The GHG
emissions presented here for fiscal year 2024/25 and the respective
compensations are based on estimates.

1

 t ZEISS, value added is defined as the sum of earnings before interest, taxes,A
depreciation and amortization (EBITDA) and personnel expenses.

2


Since
fiscal year 2018/19 ZEISS has been collecting data on Scope 1 and Scope
2 emissions on specific markets and sites. Market-based emissions arecalculated using specific emission factors relating to the energy providers. The
site-based survey uses emission factors from the respective federal state whereenergy is consumed. For this purpose, ZEISS uses the latest emission factors as
per the VDA list (updated January 2018). The market-based emissions havebeen reported since fiscal year 2020/21. The site-specific Scope 1 and Scope 2
emissions for 2020/21 came to 243,538 t CO₂-eq, 265,737 t CO₂-eq,
237,308 t CO₂-eq and 236,052 t CO₂-eq in fiscal years 2021/22GJ 2019/20
and 2018/19 respectively.

3


ZEISS
pursues the goal of continuously improving the methodology of datacollection and calculation of emissions. For this reason, the calculation methodin this report was based even more closely on the guidelines of the Greenhouse
Gas (GHG) Protocol. Emissions data is stated in t CO₂-eq from fiscal year
2021/2022 on. Previous figures have been retroactively converted to t CO₂-eq
for comparability up to and including FY 2018/2019.

4

Combustion of fuels by vehicle fleet

5

Refrigerant cooling/solvent losses

Net emissions refer to the difference between the GHG emissions thatZEISS produces and the GHG emissions that have been compensatedfor. The figure refers only to Scope 1 and Scope 2 emissions.
Carbon emissions

CO₂ Emissions in t CO₂-eq 2021/22 (Scopes 1 and 2)

Gas
Heating oil
Fuels
Volatile gases
District heating
Electricity

5SocialEngagement

2021/22CO₂ emissions[in t / € m value added]

0
50,000

4
Environment

Fiscal year (FY)

250,000

20

In the reporting year, ZEISS was able to reduce its relative
energy consumption by 14 percent as compared to the reference year 2018/19 – this is due especially to the significantly
higher value added. Absolute energy consumption increased
by around 1.7% in the same period and was largely due tothe company's tremendous growth. The reported greenhousegas emissions from Scope 1 were expanded in the reporting
year to include emissions from mobility and from fugitive
gases, which means that the figure is not directly compar­
able with the prior year. ZEISS was able to further reduce CO₂
emissions in Scope 2 compared to fiscal year 2020/21. Around
40,500 tons of CO₂ equivalents were offset in the reporting
period to compensate for emissions from the use of gas anddistrict heating.

2
Products andValue Chain

CO₂ Emissions in t CO₂-eq (Scope 1 und 2)2, 3/1

are to follow. In the context of CO₂ reductions, ZEISS also set a
new target in fiscal year 2020/21 for reducing its relative energy
consumption, which was approved by the Executive Board:
Energy consumption is to fall by 20% by fiscal year 2024/25
relative to the company's own value added1. The reference year
is fiscal year 2018/19.

Strategy andSustainability

18

Company Profile
and Business Model

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1
Integrity andCompliance63Company Profile
and Business Model

BACK TOCONTENTS

Strategy andSustainability

Energy consumption

2019/20
2020/212021/22(-20%)
0

20

40

60

80

100

120

140

160

180

Energy consumption [in MWh / €m value added]
Target for 2024/25
Fiscal year (FY)
Energy consumption[in GWh]» Electricity» Gas 2» Heating oil» District heating
Total value added at ZEISS1 [€m]...

2
Products andValue Chain

in 2019/20, energy procurement was expanded to ZEISS'
sites worldwide in fiscal year 2020/21. To meet its energy
requirements, calculated on the basis of consumption dataand projections, the company is procuring green energy – tothe greatest possible extent – via a global tender. Certificatesof origin and power purchase agreements (PPAs) were used to
do this. For the reporting year, a total of around 470 GWh of
green electricity was purchased for for the major production
sites and sales and service sites, which fully covered the ascertained total electricity consumption of the ZEISS Group.

2018/192024/25

1
Integrity andCompliance

2021/222020/21

644

633

555

440
169
2
33

426
171
1
35

366
153
2
29

2018/19

4,947

4,399

3,623

Energy consumption[in MWh/€ m value added]

130

144

152

Relative change to reference year
2018/19 [in %]

-14

-5

0

1

 t ZEISS, value added is defined as the sum of earnings before interest, taxes,A
depreciation and amortization (EBITDA) and personnel expenses.

2

 espite the slight decrease in gas consumption, emissions from the use of gas
Dincreased in the reporting year. This is due to the fact that bio-methane was partly
purchased in the previous year, which had a positive effect on the total emissions.

In Germany, ZEISS has been sourcing renewable energy fromwind power through PPAs since 2021, i.e., via suppliers
who have signed a direct and individual agreement with thecompany. These installations produce energy directly for ZEISS.
In terms of the supply with its own energy from photovoltaic
or geothermal systems, the biggest ZEISS-built photovoltaic
system yet became operational on the roof of the parking
garage at the South Factory in Oberkochen during the fiscal
year 2020/21. The new system will generate some 680,000
kilowatt hours of power every year. This is equal to the average annual power consumption of around 200 family homes.
As part of the first-ever collection of data on Scope 3 emissions in fiscal year 2020/21, ZEISS defined key categories forthe upstream value chain. An external partner helped thecompany perform a multi-regional, environmentally expanded input/output analysis. Purchasing data from fiscal year
2019/20 from the merchandise management system was used
to do this. The result: a total of 830,470 tons of Scope 3 emissions were emitted. The two largest contributors were theitems "Purchased goods and services" (693,165 t) and "Capital3
Employees

4
Environment

5SocialEngagement

goods" (98,241 t). ZEISS has set itself the goal of improving
the data collection process, identifying ways to reduce Scope
3 emissions, and when engaging with suppliers of seeking
reduction potential and defining joint approaches.
With its products, ZEISS also ensures that energy is saved,
thus reducing downstream Scope 3 emissions. This applies tothe ZEISS CONTURA measuring machine that enables energy
savings of up to 40 percent, or the retrofitting of old ZEISS
portal measuring machines through Retrofit packages. Moreinformation is available in the chapter on Products and Value
Chain on page 36. ZEISS also continued pursuing its programfor refurbishing microscopes in the reporting year. This
involved pre-owned systems being upgraded and then soldat a discounted price. Customers receive a one-year warranty,
and replacement parts are guaranteed for a period of five
years. ln the reporting year, 12 electron microscopes and 23
light microscopes were refurbished. In addition to economic
advantages for our customers, the program reduces a system's
carbon footprint because the raw materials used to produce
it and the necessary energy are spread out over a longer
service life.
In fiscal year 2021/22, ZEISS once again participated in the
CDP (previously: Carbon Disclosure Project). In addition to thereport on climate protection, the report on water safety was also
prepared for the first time in the year under review. For the2022 CDP report, which also contains a financial assessmentof risks and opportunities, the CDP gave ZEISS a rating of "A-",based on a scale of A to D (2021: B). For the 2022 CDP reporton water safety, CDP rated ZEISS a "B" on a scale of A to D. ZEISS
aims to maintain or build on this high level. The results have been
published at www.cdp.net.

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Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Focus on Climate Risks
ZEISS intends to address the risks and opportunities resulting
from climate change in a holistic way. Based on the recommendations of the Task Force on Climate-related Financial
Disclosure (TCFD) with its four pillars, the company presents
excerpts of its management approaches and measures related
to climate risks and opportunities. The complete approach –with corresponding examples of climate-related opportunities
and risks as well as the results of the climate scenario analyses– can be found in the ZEISS CDP Report 2022.

1. Governance
The Executive Board's responsibility for climate-relatedrisks and opportunities
The Executive Board of Carl Zeiss AG is responsible for approving 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 regularly reports on these measures andprogress to the President & CEO and the full Executive Board.
Enterprise Risk Management also prepares the comprehensive
quarterly risk report for the Executive Board. This also includes
climate-related risks and is assessed by the Executive Board,and further measures are derived as required.
The role of management in assessing and handlingclimate-related risks and opportunities
Responsibility for defining the sustainability strategy, including
the climate strategy, lies with the Head of Sustainability.
She is responsible for proposing environment-related targets
for the ZEISS Group - for example with regard to emission reductions. This is done in close coordination with the environmental protection officers of the ZEISS Group. The status of
implementation of sustainability targets is discussed every six
months by the Chief Financial Officer and Head of Corporate
Audit, Risk Management and Quality Management. These
discussions also focus on how to manage climate-related risks
and opportunities. Information on these risks and opportunities is also regularly shared between the central Sustainability
team and the central Risk Management team. The implementation of climate-related issues at the ZEISS sites themselvesis the responsibility of the Group Environmental Officer, whoreports directly to the Chief Financial Officer.

2. Risk management
Assessing and managing climate-related risks
The central risk management system at ZEISS stipulates uniform rules and processes to detect, assess and manage risks
at an early stage. The main objective is to exploit business
opportunities and manage the associated risks, as well as to
identify at an early stage any developments that could jeopardize the company's continued existence.
Risk management coordinators implement the central policies
and procedures in the relevant business areas. The management of the segments and strategic business units detects,
manages and reports on operating and strategic risks. Overall
responsibility lies with the Executive Board,
ZEISS systematically analyzes and evaluates risks. These include
climate risks. Risks are viewed as short-term if the respective
impact is to occur within one year. Medium-term risks arethose that will have an impact in one to three years. Longterm risks are those that will have an impact in more than
three years' time and possibly even in ten years' time or later.
When it comes to the risk analysis and assessment, special
emphasis is placed on potential economic effects and how
likely they are to occur. The quantified and classified risks areassessed on their risk-bearing capacity. The greater the
potential financial impact or probability of occurrence, thehigher ZEISS prioritizes the management of the risk. The
central Sustainability team and the central Risk Management
team jointly decide how to manage the risks. Depending on
the individual case, risks are accepted, regularly monitored,transferred or measures are taken to reduce them. Moreover,65

BACK TOCONTENTS

Company Profile
and Business ModelZEISS has added a due diligence process on transitory andphysical climate risks to its M&A processes which, for example, take into account the risk of flooding at potential sites.
In order to minimize the possible effects of climate changesuch as extreme weather events, ZEISS uses business
continuity plans that are checked and updated at regularintervals.
3. Strategy
Climate-related risks and opportunities and theireffects on the business model
Both physical and transitory climate-related risks can have an
impact on ZEISS' business model. The former are a direct orindirect result of climate change. The latter are caused by thetransformation toward a decarbonized economy. Potential
physical risks for ZEISS include increasing extreme weather
events such as persistent heat, floods or forest fires, which
may also affect ZEISS production sites or supply chains.
Permanently increased temperatures, for example, can havea negative impact on the productivity and health of employees
as well as on manufacturing processes and building air conditioning requirements. Permanently increased temperatures, forexample, can have a negative impact on the productivity andhealth of employees as well as on manufacturing processes
and building air conditioning requirements.
ZEISS also monitors transitory risks such as emissions trading,
the CO₂ tax policy and other regulatory developments. In thelong term, ZEISS expects oil, gas and coal to become very
scarce. The reasons for this lie in decreasing supply and newlaws. One example of this is the new German carbon tax. For

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

the risk assessment, ZEISS calculated the effects of various
carbon prices on the company's earnings.
In fiscal year 2021/22, climate scenarios were determined forthe first time for ten plant sites worldwide, which together
cover 90% of Group-wide energy consumption and are also
the most relevant to the business. A time horizon of 20 years
was used and the three risks of heat stress, floods and forest
fires were examined. The findings show that the greatest
risks are borne by two sites located in North America andSouth America, and that all ten sites studied are exposed toheat stress risks without exception. In addition, one southern
European site and one central European site have a very highforest fire risk. The two South American sites have a high heatstress risk and a medium flood risk, but no forest fire risk.
The least vulnerable sites in terms of climate risks are twoother Central European sites, which have no flood risk, noforest fire risk, but a medium heat stress risk. The two SouthAmerican sites have a high heat stress risk and a medium
flood risk, but no forest fire risk. The least vulnerable sites interms of climate risks are two other Central European sites,
which have no flood risk, no forest fire risk, but a medium
heat stress risk.

3
Employees

4
Environment

5SocialEngagement

Intelligent measuring systems from ZEISS also enable increased efficiency in sectors such as the automobile and aerospace industries, thus helping to conserve natural resources.
ZEISS always factors the changing expectations of customers
due to climate change and regulatory requirements into its
strategic planning. ZEISS expects aspects of sustainability andproduct carbon footprints to become increasingly important inpurchasing decisions. Climate protection is therefore a central
part of the Group-wide sustainability program, which has been
strategically driving sustainability at various levels (particularly
in product development) since fiscal year 2020/21 as part of
the new ZEISS Agenda. The aim is to use adapted products
and business models to support customers in implementing
their climate goals.
4. Targets and key performance indicators
The main key performance indicators and targets for climate
protection are on pages 62-64.

The increasing push from politics, industry and civil society
to reduce greenhouse gas emissions also offers opportunities
for ZEISS' operations. For example, the e-mobility trend
generates demand for measuring and testing solutions.
ZEISS is taking advantage of other opportunities such as thefurther development of microscopes that help to increase
the reliability of energy systems and reduce the need for
repairs.

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Strategy andSustainability

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Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Environmental Compliance
Strict compliance with all relevant laws worldwide as well asinternational and national standards and directives form thebasis of daily business at ZEISS. It is also a prerequisite forliving up to our quality promise and is thus a fundamental
obligation toward all stakeholders.
Guidelines, structures and processes
One major challenge of environmental protection – particularly with regard to waste, chemicals, water and effluents – iscomplying with laws, stipulations for official approval andother rules related to the environment. Environmental officers
at the sites ensure that the relevant rules and regulations arelogged in the management system and that all processes arein compliance with the law. If action is required, the environmental officers must make the necessary arrangements. Thismay be done by issuing a site-specific procedural or work
instruction. Regular internal and external audits, as well ascompliance checks ensure compliance with the legal and internal requirements. If this results in opportunities to optimize
processes and actions, ZEISS defines specific measures. The
implementation is assessed through regular follow-up audits
and their results are included in the annual management
reviews.
ZEISS expects its suppliers and other service providers to
fully comply with environmental laws and regulations andwith its internal guidelines. The company monitors whether
such contractual agreements are being put into practice byconducting on-site audits, both planned and event-driven.
More information is available in the chapter on Products andValue Chain on page 40.

Chemical management
Through its chemicals management activities, 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 occupational healthand safety specialists and environmental protection officers.

Substance restrictions
ZEISS meets the requirements of the EU directive on the
Restriction of Hazardous Substances (RoHS) with the help ofa software application to monitor the relevant chemicals. This
software is now used across all of ZEISS' segments. Suppliersmust confirm in writing that the materials, substances andmixtures they supply are compliant with the applicabledirectives, laws and regulations.

A substance database and list of hazardous materials form
the basis of the Group-wide information system for hazardous
substances used at the company. This is how ZEISS ensuresthat only chemicals that are authorized for the EU in accordance with REACH (registration, evaluation, authorization, andrestriction of chemicals) are used. In addition, considerable
care is taken to only use substances that have not been identified as substances of very high concern whenever possible.

Disposal
Modern technologies consist of many materials and components. If not disposed of properly, hazardous substances may
not be detected due to their composition and could cause
environmental and health problems. In accordance withthe requirements of European Union's Waste Electrical andElectronic Equipment (WEEE) Directive, which governs thecollection, recycling, and recovery of electric and electronic
devices, ZEISS has entered into an EU-wide agreement with adisposal contractor to ensure legally compliant disposal. The
company is registered in all EU countries as a distributor ofelectrical and electronic devices.

Safety data sheets provide users with information on how tosafely handle chemical products, helping to ensure that chemicals are used in a manner that is both safe and environmentallysound. ZEISS requires its suppliers to provide the most up-todate safety data sheets. Before introducing new hazardous
substances, ZEISS ensures that suppliers observe the list of prohibited and declarable substances listed in a factory standard
and requests the corresponding certificates of conformity.

Aims
The company's top priority is to operate its facilities in a legally compliant manner. This is associated with the objectives of
preventive emergency management and preventive maintenance, which saves retrofitting costs.

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05

SOCIALENGAGEMENT

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Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

Social and Societal Engagement“Sustainability has always been a fundamental
principle for ZEISS. A commitment to thecommon good and to finding solutions forkey societal issues are part and parcel of thecompany’s ethos.”Dr. Karl Lamprecht, President and CEO, Carl Zeiss AG

Since 1889, the Carl Zeiss Foundation statutes have established a clear course. In addition to business growth andaccepting responsibility for the company's employees, they
stipulate social engagement and the continued promotion ofscience and education as a corporate responsibility. ZEISS
thus has the express company mission of using its corebusiness to improve the lives of people everywhere. ZEISS
raises the bar in healthcare, for example, by offering solutions
for ophthalmology and medical technology and helps drive
medical progress by supplying microscopy products. ZEISS
also helps to train tomorrow's scientists by supplying microscopes to education facilities.
Armed with this brief, ZEISS assumes an active role insociety and makes a contribution to sustainable develop­ment at its sites. The company supports various projects
financially and with donations in kind, initiates its own
programs and engages with partners directly on the groundto give more people around the world access to opticaland medical care.
Structures and Processes
The ZEISS Group's social responsibility follows clearly definedguidelines: activities are sponsored on three different organi­zational levels.
The Carl Zeiss Foundation, as the sole shareholder ofCarl Zeiss AG and SCHOTT AG, carries out funding activities.
Its funding activities are defined by the Foundation statutes
and financed by the dividend payments from the twocompanies. Particular attention is paid to providing sustainable, balanced support.

The ZEISS Group provides funding as part of a definedprocess. The guidelines are laid out in an internal policy thatapplies across the entire company. One vehicle for supporting scientific research and education, healthcare, nature
conservation and regional companies in Germany is the
ZEISS Promotion Fund. ZEISS uses it to encourage people toget involved in the natural sciences, from preschool children right up to PhD students, as well as to fund social andcultural projects. Fund managers oversee the funding budget
and the applications for sponsorship. Working with the
responsible employees from the different corporate functions,they apply fixed criteria to decide which funding requests
for donations or sponsoring to accept within the budget,and consult with the Executive Board of the ZEISS Group as
needed.
Clear framework conditions have been defined for thecommitment of the divisions, strategic business units andinternational sites of ZEISS. The focus is on activities that create
added value for local communities, future generations or
disadvantaged social groups. Measures should have a longterm impact, funds should always be used in a targeted manner, and the impact achieved should subsequently beevaluated.
The third level comprises initiatives such as donation campaigns that are made possible by the direct commitmentof employees worldwide. ZEISS sponsors these activities
indirectly. Employees receive great recognition for theircommitment from the company and their managers and are
given the opportunity to organize themselves acrossthe company's structures.

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Sponsorship areas
Corporate social responsibility at the ZEISS Group aims topromote research and education, healthcare, conservation
and regional society.
In fiscal year 2021/22, Carl Zeiss AG invested a total of
1.7 million euros in 113 projects (prior year: 1.6 million
euros in 106 projects). 90 of these projects (prior year: 98
projects) received sponsorship of more than 600,000 euros
from the ZEISS Promotion Fund (prior year: 800,000 euros).
To mark its 175th anniversary, ZEISS donated five million
euros to the future initiative for modernizing the Deutsches Museum in Munich in fiscal year 2020/21. In the years
ahead, 500,000 euros will be donated annually to makea total of five million euros.
A sponsorship amount at the same level as in previous
years has been earmarked for fiscal year 2022/23. Morethan 50% of the funding is set to be put toward the STEM
subjects for kids and students.
Scientific research and education
Alongside business growth and accepting responsibility
for the company's employees, the Carl Zeiss Foundation
statutes stipulate high standards for social responsibility.
ZEISS in Germany uses the Education and Science Fundestablished in 2012 under the umbrella of the ZEISS Promotion Fund to sponsor newcomers in the natural sciences.
At the heart of the ZEISS Promotion Fund are initiatives topromote the education of young people. The spotlight is on
students who are choosing their field of study and college
graduates who have not yet entered the world of work, as

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

well as projects and initiatives at universities and research
institutes. The focus is on the natural sciences and engineering, particularly optics and photonics.
The ZEISS Innovation Hubs in Karlsruhe and Dresden are
also helping to shape technological progress. The Innovation
Hubs cooperate closely with partners from research andindustry. For instance, the first research project focusing onorganoid models has already been launched in collaboration
with Dresden Technical University, the Dresden University
Hospital, the Leibniz Institute and the Max Planck Institute.
Organoid models are artificially produced organ-like microstructures that open up whole new opportunities in areas
like medication development.
In Karlsruhe, the Innovation Hub team is not only working
on the future fields of miniaturized sensor technology,
photonics and medical robotics, but also on various projects
related to the circular economy. New optical solutions thatenable the recycling of materials are being investigated.
Since their establishment in 2020 and 2021, the numberof hub employees has grown to 25 today. Another missionof the hubs is to promote education. Accordingly, numerous
students and doctoral candidates are employed and thehubs are actively involved in the teaching activities of therespective universities.
Healthcare
ZEISS raises the bar in healthcare by offering solutions forophthalmology and medical technology and helps to drive
medical progress by supplying microscopy products. The aim

3
Employees

4
Environment

5SocialEngagement

is to help improve the lives of patients everywhere.
The training and continuing education of ophthalmologists
is a key feature of the battle against preventable blindness –especially in remote regions. In keeping with motto of helping people to help themselves, the Carl Zeiss Meditec Grouphas been providing medical care to people in underprivileged
regions since 2005 through five diagnoses, treatment, andtraining centers for eyecare In order to specifically enhancecataract surgery, ZEISS also supports phaco training centers

A Heart for Science
One important measure to bring the requirements ofthe statute to life is "A Heart for Science" – an international STEM promotion initiative for young people between
the ages of 12 and 18 – which was founded in the 2021
anniversary year. The focus is on a company volunteer
program in which employees worldwide participate, forexample by giving talks at children's universities, leading
workshops at schools or organizing STEM events. Thereare currently more than 150 ZEISS employees from elevencountries actively volunteering. Their diverse projects
range from STEM support for young people in remoteschools in Australia to a student club in Germany wherechildren can gain their first experience in programmingwith the help of a robot, and a mentoring program incooperation with the local school authority at the newly
founded ZEISS Innovation Center in California.

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Company Profile
and Business Modelin Paraguay and India. At these special training centers, ophthalmologists and medical professionals are trained in theuse of the state-of-the-art phacoemulsification technique.
In addition, ZEISS is supporting the Development Service ofGerman Opticians in Kyamulibwa in Uganda with the establishment and operation of a training and vocational school
center, where local experts and opticians are successfully
trained.
Good medical training forms the basis of good healthcare.
As a partner of the International Council of Ophthalmol­ogy (ICO), ZEISS has supported the ICO Fellowship Program
between 2012 and 2020. Since 2020, ZEISS supports theFellowship Programme of the International Ophthalmological
Fellowship Foundation (IOFF) e. V. The Scholarship Program
enables young doctors from resource-limited and underserved regions to spend time in clinics in Europe. During
placements lasting several months scholarship holders canimprove their skills in ophthalmology and later harness theknowledge gained for their work in their home countries.
The Carl Zeiss Meditec Group supported ten fellows in
the period from 2012 to 2020. Over the past two years,
the company has facilitated a stay of several months forone scholarship holder and also co-financed two one-year
scholarships. ZEISS will continue to support this fellowship
program.
Furthermore, ZEISS has been committed to providing
ophthalmic optical services in unserved, rural regions ofIndia and Nepal since 2015 as part of the Aloka Vision Program. With the Aloka Vision Programme, ZEISS together
with its partners, particularly non-governmental organiza-

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

tions and eye clinics, is working on establishing a primarycare service.
The focus is on quality, affordability and availability of both
optical and ophthalmic care. In fiscal year 2021/22, morethan 335,000 patients were reached (prior year: 145,000).
The significant increase in impact is thanks in particular to
the expansion of partnerships, for example with the Optometry Council of India and optometry colleges, and with theLions Club in programs for disadvantaged children. ZEISS
also provides the equipment needed to perform the eye
screenings, covers treatment costs, and is active on site withspecialist staff and ensures the supply of glasses. Anotherexample of this collaboration is the Lifeline Express in India,
a hospital train that makes stops in remote parts of thecountry to provide treatment to those in need completely
free of charge. ZEISS is a committed partner offering eye
exams and eyeglasses throughout India.

3
Employees

4
Environment

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members uses the list to record all endangered bird species,
including their conservation status. The figures are reported
to the International Union for Conservation of Nature andNatural Resources (IUCN) and used as the basis for effective
conservation efforts such as habitat conservation and for
educating the local population.
In addition, employees of ZEISS Consumer Products set up
several so-called arks for wild bees as part of a team eventin the summer of 2022 on the grounds of the main plant inOberkochen. 40 percent of the 560 species established inGermany are threatened in their existence or already extinct.
In the arks, the wild bees which breed in the ground findPractical species protection on the ground

Nature conservation
For ZEISS, protecting plant and animal species is particularly
important. Binoculars and spotting scopes from ZEISS havean excellent reputation among nature lovers around theglobe and they enable people to get closer to nature. In
collaboration with professional associations, the company
supports numerous nature conservation activities, educational programs for children and adults, and research programs
to protect endangered animal species.

Biodiversity has declined sharply in many ecosystems due tohuman influence. The reasons for this are numerous. ZEISS
therefore supports the work of the non-profit association
Jordsand which was founded in 1907 and is one of theoldest nature conservation organizations in Germany. The
main purpose of the association is to protect the habitat of
migratory and breeding birds on the North Sea and Baltic
Sea. Since the beginning of 2022, ZEISS has been supporting this project both financially and by providing optics.

ZEISS sponsors BirdLife International's scientific work on
the Red List of Birds. The partnership among multiple birdconservation organizations with more than 10 million

More about the cooperation with Jordsand in the
ZEISS Sustainability Booklet starting on page 971

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Company Profile
and Business Model

Strategy andSustainability

1Integrity andCompliance2
Products andValue Chain

3
Employees

4
Environment

5SocialEngagement

optimal conditions for their nests. A nature conservation
expert was accompanied by the Green Team of the Samariter
Stiftung Behindertenhilfe Ostalb, in whose workshops thearks were made. You can find out more about the commitment to wild bees here.
Regional involvement
ZEISS' strong position and a portfolio tailored to megatrends
lead to investments in innovations and digitalization, andin the expansion of a modern infrastructure. This creates
new jobs and vocational training positions, and also generates contracts for local suppliers in fields other than hightechnology. The company's development and production
services for customers in the individual regions therefore
enable scientific, technological, social, medical and environmental services to grow. In Germany, the ZEISS Site Fundsupports regional projects, under the umbrella of theZEISS Promotion Fund. The sponsorship program covers
the company's German sites in Aalen, Göttingen, Jena,
Oberkochen and Wetzlar.

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BACK TOCONTENTSGRI Content Index

Statement of use

The Carl Zeiss AG has reported in accordance with the GRI Standards for the period 1 October 2021
to 30 September 2022.

GRI 1 used

GRI 1: Foundation 2021

Applicable GRI Sector Standard(s)None

GRI 2: General Disclosures 2021
GRI Standard

Page(s)

Note/exclusion justification

The organization and its reporting practices
GRI 2-1: Organizational details

p. 8

GRI 2-2: Entities included in the organization’s sustainability reportingp. 6

GRI 2-3: Reporting period, frequency and contact point

p. 6, 80

See also Annual Report 2021/22, p. 107-112

GRI 2-4: Restatements of information

The reporting of CO₂ emissions was retroactively changed to CO₂ equivalents of all greenhouse gases, see p.
63. In the Sustainability Report 2020/21, the values for groundwater and surface water were reversed in thetable on water consumption. Groundwater consumption was about 125,000 m3, surface water consumption was about 16,000 m3.

GRI 2-5: External assurance

None

Activities and workers
GRI 2-6: Activities, value chain and other business relationships

p. 2, 8-10, 11, 40-42, 43-44 and 47

GRI 2-7: Employees

p. 47

GRI 2-8: Workers who are not employees

p. 47

See also Annual Report 2021/22, p. 28

Governance
GRI 2-9: Governance structure and compositionp. 12-13, 15-17 and 43

GRI 2-10: Nomination and selection of the highest governance bodyp. 12-13

GRI 2-11: Chair of the highest governance body

p. 12

GRI 2-12: Role of the highest governance body in overseeing the management of
impacts

p. 12-13, 16-19, 31-32

GRI 2-13: Delegation of responsibilities for managing impacts

p. 15-17, 31, 33, 41, 58, 59, 64, 66

GRI 2-14: Role of the highest governance body in sustainability reportingp. 16

GRI 2-15: Conflicts of interests

p. 31-33

GRI 2-16: Communication of critical concernsp. 31-32

GRI 2-17: Collective knowledge of the highest governance bodyp. 12-13

There is no overlap between the Supervisory Board and the Executive Board.

See also Annual Report 2021/22, p. 104-105

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GRI Standard

Page(s)GRI 2-18: Evaluation of the performance of the highest governance bodyp. 12-13

GRI 2-19: Remuneration policies
GRI 2-20: Process to determine remuneration

Note/exclusion justification

See also Annual Report 2021/22, p. 106, as well as Corporate Governance Statement of Carl Zeiss Meditec AG
p. 12-13

GRI 2-21: Annual total compensation ratio

See Annual Report 2021/22, p. 20
For reasons of confidentiality, ZEISS does not disclose information on the salaries of its employees.

Strategy, policies and practices
GRI 2-22: Statement on sustainable development strategy

p. 4

GRI 2-23: Policy commitments

p. 16, 31, 40-42

GRI 2-24: Embedding policy commitments

p. 16, 31, 33, 34, 39, 41, 43, 55,
58-59, 64 and 66

GRI 2-25: Processes to remediate negative impacts

p. 31, 32 and 40

GRI 2-26: Mechanisms for seeking advice and raising concernsp. 31-32

GRI 2-27: Compliance with laws and regulations

p. 31-35

GRI 2-28: Membership associations

p. 18, and 33

ZEISS does not report on legal proceedings, as this information is subject to confidentiality.

Stakeholder engagement
GRI 2-29: Approach to stakeholder engagement

p. 6, 17, 18, 19 and 46

GRI 2-30: Collective bargaining agreements

p. 46

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GRI 3: Material Topics in 2021
GRI Standard

Page(s)

Note/exclusion justification

Details on main issues
GRI 3-1: Process to determine material topics

p. 19

GRI 3-2: List of material topics

p. 20-24

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Integrity and Compliance
GRI Standard

Page(s)

Note/exclusion justification

Business ethics
GRI 3-3: Management of material topics

p. 20 and 33

GRI 415: Public Policy 2016
GRI 415­-1: Political contributions

p. 33

Legal compliance
GRI 3-3: Management of material topics

p. 20, 31, 32 and 33

GRI 205: Anti-corruption 2016
GRI 205-2: Communication and training about anti-corruption policies andprocedures

p. 33

GRI 206: Anti-Competitive Behavior 2016
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 asthese disclosures are subject to confidentiality agreements.

Data Privacy
GRI 3-3: Management of material topics

p. 20, 34 and 40

GRI 418: Customer Privacy 2016
GRI 418-1: Substantiated complaints concerning breaches of customer privacy andlosses of customer data

ZEISS was not informed of any relevant incidents during the reporting period.

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Integrity and Compliance
GRI Standard

Page(s)

Note/exclusion justification

Tax
GRI 3-3: Management of material topics

p. 11, 20 and 35

GRI 207: Tax 2019
GRI 207-1: Approach to tax

p. 11 and 35

GRI 207-2: Tax Governance, control, and risk management

p. 35

GRI 207-3: Stakeholder engagement and management of concerns related to tax

p. 35

GRI 207-4: Country-by-country reporting

There is no detailed country-by-country report as revealing this data would expose competitor-relevant
information. All legally required about corporate income taxes is provided in the ZEISS Group management
report and and consolidated financial statements. All required information is communicated to the relevant
tax authority.

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Products and Value Chain
GRI Standard

Page(s)

Note/exclusion justification

Product development
GRI 3-3: Management of material topics

p. 21, 37-38

Product safety
GRI 3-3: Management of material topics

p. 21, 38-39 and 68

GRI 416: Customer Health and Safety 2016
GRI 416-1: Assessment of the health and safety impacts of product and service
categories

p. 38-39

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 the reporting period.

Procurement and supplier management
GRI 3-3: Management of material topics

p. 15, 21, 40-44 and 66

GRI 308: Supplier Environmental Assessment 2016
GRI 308-1: New suppliers that were screened using environmental criteria
GRI 308-2: Negative environmental impacts in the supply chain and actions taken

p. 40-42
p. 41-42, 44

GRI 414: Supplier Social Assessment 2016
GRI 414-­1: New suppliers that were screened using social criteria

p. 40-42

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

p. 41-42, 44

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Products and Value Chain
GRI Standard

Page(s)

Note/exclusion justification

Human rights in the supply chain
GRI 3-3: Management of material topics

p. 15, 21, 40-44 and 46

GRI 407: Freedom of Association and Collective Bargaining 2016
GRI 407-1: Operations and suppliers in which the right to freedom of association andcollective bargaining may be at risk

p. 40-42 and 46

GRI 408: Child Labor 2016

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

During the reporting period, ZEISS did not become aware of any significant risks of child labor incidents atsites belonging to ZEISS or its suppliers.

GRI 409: Forced or Compulsory Labor 2016
GRI 409-1: Operations and suppliers at significant risk for incidents of forced orcompulsory labor

During the reporting period, ZEISS did not become aware of any significant risks of forced or compulsory
labor incidents at sites belonging to ZEISS or its suppliers.

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Employees
GRI Standard

Page(s)

Note/exclusion justification

Employer-employee relationship
GRI 3-3: Management of material topics

p. 22, 46-47 and 53

GRI 402: Labor/Management Relations 2016
GRI 402-1: Minimum notice periods regarding operational changes

p. 46-47

Employee development, training and further education
GRI 3-3: Management of material topics

p. 22, 46 and 48-52

GRI 401: Employment 2016
GRI 401-1: New employee hires and employee turnover

p. 47

Currently, ZEISS cannot report the turnover outside Germany as this data is not available. The company has
started collecting the relevant data.

GRI 404: Training and Education 2016
GRI 404-1: Average hours of training per year per employee

p. 47

Diversity
GRI 3-3: Management of material topics

p. 22, 46, 50-52

GRI 405: Diversity and Equal Opportunities 2016
GRI 405-1: Diversity of governance bodies and employees

p. 47 and 53

See also Annual Report 2021/22, p. 4, 5 and 22

GRI 406: Non-discrimination 2016
GRI 406-1: Incidents of discrimination and corrective actions taken

ZEISS does not report on cases of discrimination and corrective actions taken as any disclosures on thesematters are subject to confidentiality agreements.

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Employees
GRI Standard

Page(s)

Note/exclusion justification

Work-life balance
GRI 3-3: Management of material topics

p. 22 and 53

Occupational health and safety
GRI 3-3: Management of material topics

p. 22, 54 and 56

GRI 403: Occupational Health and Safety 2018
GRI 403-1: Occupational health and safety management system

p. 54 and 56

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

p. 54-56

GRI 403-3: Occupational health services

p. 54 and 55

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

p. 54 and 55

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

p. 54-56

GRI 403-6: Promotion of Worker healthp. 54 and 55

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

p. 66

GRI 403-9: Work-related injuries

p. 55 and 56

Since the LTIFR target applies until 2023 and is control-related, ZEISS will continue reporting this key figure in theinterests of comparability. Further performance indicators on occupational health and safety will be introduced
for fiscal year 2022/23. Currently, ZEISS cannot report the number of work-related accidents for non-ZEISS
employees because this data is not available. The data collection was postponed due to the COVID-19 pandemic
and will commence in FY 2022/23.

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Environment
GRI Standard

Page(s)

Note/exclusion justification

Efficient use of natural resources
GRI 3-3: Management of material topics

p. 23, 58-60

GRI 303: Water and Effluents 2018
GRI 303-1: Interactions with water as a shared resource

p. 59

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

p. 59

GRI 303-3: Water withdrawal

p. 59, 61Currently, ZEISS does not report on water extraction or water consumption broken down by source andregions of water stress. It does not differentiate between freshwater and other water. This information iscollected at individual sites and worldwide consolidation is not possible.

Circular Economy
GRI 3-3: Management of material topics

p. 15, 21, 23, 37-39, 58-60, 65 and 70

GRI 306: Waste 2020
GRI 306-1: Waste generation and significant waste-related impacts

p. 59-61 and 66

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

p. 59, 60 and 66

GRI 306-3: Waste generatedp. 61

Climate action
GRI 3-3: Management of material topics

p. 11, 15, 16, 17, 21, 23, 29, 37-39, 58-62, and 69

GRI 201: Economic Performance 2016
GRI 201-2: Financial implications and other risks and opportunities due to climatechangep. 65, 66

GRI 302: Energy 2016
GRI 302-1: Energy consumption within the organization

p. 64

GRI 302-3: Energy intensity

p. 64

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Environment
GRI Standard

Page(s)

Note/exclusion justification

GRI 305: Emissions 2016
GRI 305-1: Direct (Scope 1) GHG emissions

p. 63

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

p. 63

GRI 305-3: Other indirect (Scope 3) GHG emissions

p. 63

GRI 305-4: GHG emissions intensity

p. 63

Environmental compliance
GRI 3-3: Management of material topics

p. 23 and 65

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Social and Societal Engagement
GRI Standard

Page(s)

Note/exclusion justification

Promotion of scientific research and education
GRI 3-3: Management of material topics

p. 11, 15, 16, 24, 26-29, 68-72

GRI 203: Indirect Economic Impacts 2016
GRI 203-1: Infrastructure investments and services supported

p. 28, 68-72

Healthcare promotion
GRI 3-3: Management of material topics

p. 26, 69-70

Regional society
GRI 3-3: Management of material topics

p. 12, 13, 26, 27, 68-72

GRI 201: Economic Performance 2016
GRI 201-1: Direct economic value generated and distributed

p. 8, 10 and 69

See also Annual Report 2021/22, p. 50-53

GRI 413: Local Communities 2016
GRI 413-2: Operations with significant actual and potential negative impacts on local
communities

p. 58 and 66

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Legal Information
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
Silke Hauber, Judith Walter,
Corporate Brand & Communications
DesignAndreas Hauber,
Corporate Brand & Communications
Concept and Text
Accenture GmbH

Disclaimer
This report contains certain forwardlooking statements concerning thedevelopment 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.
Apparent addition discrepancies may
arise throughout this Sustainability Reportdue to mathematical rounding.

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