Own Workforce (S1)

Our employees are at the heart of advancing human progress. They tackle complex challenges and cultivate a culture of innovation and inclusion. We encourage our workforce to pursue careers that resonate with their individual aspirations, skills and interests. This will not only boost employee satisfaction but also unlock our collective potential across the Group.

Our Group Human Resources (HR) unit supports all business sectors and enabling functions as regards our human capital. We want to ensure that that we involve our employees in our workforce strategies in alignment with Group-wide HR guidelines. This commitment includes implementing attractive compensation models and benefits that reflect our dedication to nurturing talent and fostering a diverse and inclusive workplace.

The insights we gather from understanding workforce impacts are essential to our strategic planning and business model evolution. Our Chief Human Resources Officer leads the HR function, overseeing initiatives that create an environment where every employee feels valued and appreciated. This inclusive approach enhances overall performance and leads to positive outcomes for our customers, patients and partners.

To reinforce our commitment to Diversity, Equity, Inclusion, and Belonging (DEIB), we have established a centralized Diversity, Equity & Inclusion Council. Comprising high-ranking executives from across our sectors, this council ensures that inclusion initiatives are woven into our company-wide strategy. It champions equity and inclusion, sets strategic targets, and empowers managers to meet their responsibilities, aligning workforce dynamics with our business objectives.

Understanding and addressing workforce impacts is crucial for cultivating an inclusive culture that enhances employee engagement and drives our strategic direction. We continually adapt our business model to reflect the needs and aspirations of our workforce, and thereby, we position ourselves for sustainable growth and success.

Definition of our own workforce

Our own workforce consists of employees and non-employees. Employees include all persons who are employed on a full-time or part-time basis, have a permanent or fixed-term formal employment contract with one of our subsidiaries and are paid via the payroll of the respective business sectors.

Non-employees include apprentices, interns and working students. In the case of apprentices and interns, the purpose of their employment is to gain vocational training or an educational background; in the case of working students, their status as student outside of the company is taken into account. External employees or persons who do not have a formal employment relationship with a subsidiary of the Group also fall into the category of non-employees. These include contractors (self-employed persons) as well as people employed by a third party who are engaged in ‘employment activities’ (NACE Code N78) for us.

Workers in our upstream and downstream value chain who are or can be potentially impacted by activities connected to our own operations and value chain, including through our products or services, as well as through our business relationships do not count as non-employees. Our reporting regarding workers in our value chain can be found under S2.

Our material impacts, risks and opportunities related to our own workforce (S1 SBM-3)

As part of the materiality analysis, we assessed our impacts, risks and opportunities (IROs) in relation to our own workforce and identified material IROs in the areas of working conditions as well as equal treatment and opportunities for all. In this analysis, all people in our own workforce who could be materially impacted were in scope.

Our disclosures refer to the following material impacts and risks in relation to working conditions:

In the following tables, we show our identified material impacts regarding equal treatment and opportunities for all:

We perceive our identified material negative impacts regarding adequate wages, collective bargaining, secure employment, working time, work-life balance as well as gender equality and equal pay for work of equal value as widespread in the context in which we operate. However, we believe the material negative impact regarding employment and inclusion of persons with disabilities is related to potential individual incidents.

We did not identify any material impacts on our own workforce that may arise from transition plans for reducing negative impacts on the environment and achieving greener and climate-neutral operations.

The identified material risk of a pandemic (S1-R-01) arises from external factors and is not linked to any impacts or dependencies on our own workforce, nor does it arise from our strategy or business model. Beyond the risk of a pandemic, we have not identified any further material risks related to working conditions or equal treatment and opportunities for all. At this stage, we are actively working to gain insights into how individuals with specific characteristics may experience varying levels of risk.

Based on our human rights risk analysis, we have not identified any significant net risk in relation to incidents of forced and compulsory labor as well as child labor for our operations.

Our policies related to our own workforce (S1-1)

We aim to manage the identified material impacts and risks related to our own workforce with the following policies:

The policies related to our own workforce are regularly monitored and updated.

Our Human Rights Charter, the Social and Labor Standards Policy and our Human Rights Policy Statement all follow the principles of the UN Guiding Principles on Business and Human Rights as well as the International Labour Organization Declaration on Fundamental Principles and Rights at Work. In the policy statement, we additionally commit to the OECD Guidelines for Multinational Enterprises. Furthermore, all three documents explicitly address trafficking in human beings, forced labor and child labor.

The Human Rights Charter is our overarching company directive that articulates our overall commitment to upholding human rights, including labor rights. It interlinks and complements our existing rules and regulations pertaining to human rights. We expect our employees as well as our suppliers and all companies with which we have business ties to comply with the Charter.

As a signatory to the UN Global Compact since 2005, we endeavor to prevent the risk of human rights violations as far as possible across our own sites and our supply chain. That is why we integrate human rights due diligence into our business processes. Our approach to human rights due diligence encompasses six main components:

• Policy commitment: Human Rights Charter and Human Rights Policy Statement
• Identifying human rights risks and violations
• Addressing our impacts via defined responsibilities and management processes
• Training and capability building on human rights throughout the organization and beyond
• Reporting on human rights due diligence activities
• Ensuring effective grievance mechanisms are in place

We view our human rights due diligence approach as an ongoing process that requires continuous adaptation and improvement.

We are constantly expanding our internal communication and engagement to better embed our commitment to human rights across the Group. For example, the implementation of the Social and Labor Standards Policy includes open dialogue and cooperation between employees and management. Furthermore, our cross-sectoral human rights working group exchanges information on activities and the latest developments in the areas of business and human rights. As an active member of the Business & Human Rights Peer Learning Group within the UN Global Compact Network Germany, we discuss challenges, current issues, experiences, and successful approaches in exercising human rights due diligence with other companies.

We have a Group-wide complaints mechanism in place for reporting human rights and environmental concerns, enabling employees and external stakeholders to report their potential concerns anonymously and free of charge via telephone or a web app. If we identify a violation of human rights or environmental obligations at our own operations or in our supply chain, we aim to take immediate action. We address violations in our own operations directly, while for supply chain issues we collaborate with suppliers, potentially resulting in suspension or termination of relationships in severe cases.

Our commitment to equal opportunity and non-discrimination is set out in our Human Rights Charter, the Code of Conduct, the Social and Labor Standards Policy as well as the DEIB Policy. These documents form a framework that aims to eliminate discrimination, including harassment, and promote equal opportunities. The Social and Labor Standards Policy specifically covers the following grounds for discrimination: racial and ethnic origin, color, sex, sexual orientation, gender identity or expression, disability, age, religion, political opinion, social origin, or any other forms of discrimination prohibited by law.

Furthermore, with our DEIB Policy, we recognize the immeasurable value of diversity and embrace the rich mix of our people. We strive for equitable outcomes and work to identify and eliminate barriers that may hinder our employees’ contributions or ability to thrive, creating access to opportunity and advancement. We are committed to fostering a truly inclusive culture for all employees. Thereby, we are dedicated to nurturing an environment in which all employees have a strong sense of belonging, and fostering a culture where we care about one another, everyone feels welcome and everyone’s voices are heard. Based on this shared understanding, we pledge to our people, our partners, our patients and our industry to move the needle on our DEIB efforts, with robust aspirations in three focus areas: gender, culture and ethnicity as well as inclusion. Additionally, our position papers on DEIB affirm that our company is committed to the inclusion of people with disabilities and does not tolerate any form of discrimination, physical or verbal harassment, or intolerance.

We have established various reporting channels to ensure employees have a clear point of contact if they believe that they have experienced harassment or discrimination in the workplace or any other violations of our standards. Their first points of contact are their supervisors, HR or compliance teams, and they can also use the anonymous compliance hotline. All complaints are treated confidentially, and investigations are conducted by independent personnel. If violations are confirmed, we strive to implement appropriate preventive and remedial actions.

We are committed to going beyond EHS regulatory compliance by establishing a culture of continuous improvement and health and safety excellence. Our EHS Policy spells out our overall commitment to operating in a manner that reduces or eliminates risk to the environment, human health and safety. The complementary Safety Culture Excellence Standard describes our Group-wide approach to occupational health and safety including workplace accident prevention. Furthermore, we have a health and safety management system in place that covers the prevention of workplace accidents and is part of our globally integrated management system that comprehensively addresses quality, environmental, health, and safety aspects.

Our processes for engaging with our own workforce and employees’ representatives about impacts (S1-2)

We recognize that our workforce is a vital stakeholder in shaping our sustainability strategies and practices. To ensure that the perspectives of our employees are taken into account in our decisions as regards working conditions as well as equal treatment and opportunities for all, we have implemented the following processes:

Engagement surveys

We aim to increase employee engagement and promote individual accountability by creating regular opportunities for dialogue and participation within the company. In addition to topic-specific pulse surveys, our primary method is the annual global Employee Engagement Survey (EES), which serves as the central feedback channel for all our employees. The confidential survey allows employees to share their views on various aspects, such as employee satisfaction, leadership, workplace-related topics, (mental) health, and work-life balance. In some countries and markets, it also includes voluntary self-identification questions related to disabilities, LGBTQIA+ affiliation, and ethnic origin, helping us to foster a more inclusive environment for underrepresented groups. The EES results provide valuable data points for managers, employees and Human Resources to reassess past and ongoing efforts and develop new measures and initiatives that promote a culture of trust and collaboration in the workplace. By incorporating employee feedback, we aim to ensure that our decisions and activities align with the needs and perspectives of our workforce. The operational responsibility for the EES lies with our Chief Human Resources Officer.

Our Euroforum

The Euroforum serves as our key dialog platform to facilitate exchange between employer and employee representatives at a European level. It represents employees in all EU countries as well as Switzerland, Norway and the United Kingdom, although not all entitled countries send delegates. The members of the Group’s Euroforum represent employees in their respective countries and bring relevant topics to the Euroforum. For information and consultation, we maintain close contact with the Executive Committee, which represents our Euroforum. All delegates meet at least once a year during the forum’s annual meeting where they participate in internal consultations and social dialogue with senior management. The Euroforum thereby maintains direct access to top management, fostering transparency and trust through open communication with the Executive Board. It advocates for employees’ interests and facilitates knowledge sharing and best practices among European sites. The forum’s focus includes the current global economic situation, employment rates and significant changes within our company affecting multiple countries, holding regular exchanges and additional meetings as required.

The Chair and Co-Chair of the Euroforum are responsible for ensuring that engagement regarding transparency and trust is not only encouraged but also effectively implemented. Their leadership plays a crucial role in integrating the insights gained from these engagements into the company’s strategic approach.

FutURe project

We care for our employees throughout all life phases and want to ensure that different generations, with their different preferences and work styles, feel represented and included. Through the FutURe project in Europe, we aim to engage younger generations in shaping a future that prioritizes justice, equality and sustainable development. As part of the project, we engage an internal advocacy group of employees under 30 and conduct regular surveys among this target group. Thereby, we aim to capture the voices, desires, and priorities of young people and ensure that young people are actively involved in discussions that affect their future. Furthermore, quarterly roundtables and collaboration with senior leaders, including our CEO, serve to foster dialogue and influence organizational policies and practices to better align with the expectations of younger employees. This strategic approach is designed to enhance diversity, inclusion and representation, while positioning us as a pioneer in addressing the next generation's needs. This initiative is led by the Head of China & International, Healthcare.

Employee networks

We support multiple internal DEIB employee groups and networks, which focus on the following nine clusters: well-being, disability, international interests, generational issues, LGBTQIA+ rights, women, veterans, cultural and ethnic diversity, and further inclusion issues. These groups and networks foster a strong sense of belonging for all members and their allies, and their perspectives play a crucial role in informing our decisions and activities aimed at managing workforce impacts. By advocating for an inclusive and safe work environment, these networks contribute, for example, to promoting qualified women within the company and help propose solutions for attracting, retaining, and developing employees of color or other cultural and ethnic groups, or propose initiatives that support employees with disabilities. Engaging in regular discussions with the global DEIB team about their insights aims to ensure that our strategies align with the needs and experiences of our diverse workforce, ultimately enhancing our corporate culture and effectiveness. Our Chief Diversity, Equity and Inclusion Officer is responsible for our global DEIB strategy and for steering its related activities.

Learning needs analysis

We conduct an annual online survey to determine most important learning needs of our employees. The survey asks for feedback on required skills, knowledge, behaviors, and learning experiences, thereby giving us a comprehensive understanding of our employees’ perspectives. Group HR is responsible that this analysis occurs and that their results are taken into consideration to inform the development of learning catalogs at both global and regional levels, thus shaping our approach to learning and development. The current process, driven by HR, emphasizes HR-owned learning content and portfolios, such as soft skills and other cross-functional topics including change management and project management that support our High-Impact Culture.

Additionally, we request feedback from all participants regarding the quality of their training sessions. The insights gained from these feedback surveys are critical in managing relationships with training providers and trainers.

Our processes to remediate negative impacts and channels for our own workforce to raise concerns (S1-3)

We are committed to addressing and remediating potential material negative impacts on our employees. Therefore, we have established a general approach that involves multiple reporting channels to enable employees to raise any concern or to report any perceived violations of our standards. Their first points of contact are their supervisors, HR or compliance units, and they can also make anonymous calls to our compliance hotline. It can be reached via our website and is available in more than 40 languages. Information on reporting channels and investigation procedures as well as general information such as on protection of retaliation is available to all employees in the Whistleblowing and Investigations Standard. This standard was updated in 2023 and rolled out to all employees worldwide via a training request. Every new employee is also assigned this standard as mandatory training. More information can be found under “Corporate culture (G1)”.

Protecting complainants from potential retaliation following a complaint is a central concern for us, to which we dedicate ourselves with utmost care. We have a compliance case management procedure in place to systematically process the reports. This helps us to assess the effectiveness of the remedies provided while also aiming to address and resolve any substantiated complaint appropriately. All complaints are treated confidentially, and investigations are conducted by independent personnel. If violations are confirmed, we strive to implement appropriate preventive and remedial actions. Our grievance system is also designed with the aim of adhering to the established effectiveness criteria for non-judicial grievance mechanisms, as set out in the UN Guiding Principles on Business and Human Rights in order to be legitimate, accessible, predictable, fair, and transparent. Through our complaint mechanisms, we strive to create a supportive work environment where employees can raise concerns without fear of retaliation and where their needs are addressed effectively.

Additionally, we have further processes in place to address potential negative impacts on our employees:

Working time

We respect the right to rest and leisure and, in particular, to a reasonable limit on working hours and regular paid leave. As far as possible, we offer our employees various flexible working models to enable them to achieve a good work-life balance. We are guided by locally applicable regulations on working hours and believe that overtime should in principle be voluntary and not be demanded on a regular basis. Certain operational circumstances may, however, require overtime. Overtime may be requested to meet short-term business requirements and where permitted by national law and/or a relevant collective agreement. All employees receive at least one day off per seven-day period.

Work-life balance

We value the individuality of our employees and take their different life situations into consideration. We therefore support our employees worldwide with various offers ranging from parental leave and childcare to support in caring for relatives in need of care.

We want to provide the best possible support for our employees who perform care work. Our services range from daycare centers in Darmstadt and Mumbai to emergency childcare services in the United States and Germany as well as special networks and leave of absence opportunities for those who take on care duties for elderly or sick relatives. With our Colleagues Supporting Colleagues initiative, parents and carers can provide each other with valuable support. In addition to paid maternity leave of at least eight weeks worldwide, we offer further options for paid parental leave in many countries and markets for people who are directly involved in childcare in their environment.

Occupational safety training

Experience shows that most workplace accidents can be prevented through proper conduct. It is therefore crucial that our employees are qualified and trained in EHS issues. We not only inform them but also actively involve them, for example during inspections or when selecting personal protective equipment. In doing so, we aim to continuously improve occupational health and safety. Training as part of our BeSafe program, for example, is carried out at our locations worldwide in accordance with local regulations.

Equal pay for work of equal value

Gender equality is a fundamental aspect of our DEIB strategy. We are dedicated to ensuring equitable compensation for all employees. To achieve this, we have established a robust approach to pay equity that includes continuous monitoring of salary information and regular analyses to identify and address any pay disparities. When necessary, we implement individual salary adjustments to uphold equity.

We also prioritize training for our HR department as well as people managers on pay equity, empowering them to make informed and unbiased salary decisions. To assess the effectiveness of our initiatives, we evaluate the outcomes of our salary adjustments and monitor the adjusted global gender pay gap over time. This ongoing commitment enables us to drive meaningful improvements in pay equity across our organization.

Employment and inclusion of people with disabilities

We provide reasonable accommodations for individuals with disabilities to ensure their inclusion throughout the employee life cycle, including the application process, hiring, training, professional development and advancement, to their eventual exit, in accordance with local laws. This includes providing training and education for employees on the topic of disabilities. Furthermore, we offer networking and peer support opportunities with our I’M Able Employee Resource Group (ERG), our Colleagues Supporting Colleagues initiative, our local inclusion officers, and employee representatives in countries and markets where applicable. In 2024, we revised a toolkit that provides guidelines and practical examples for our site managers to make our sites more accessible. Our AID-IT4YOU initiative ensures accessibility as a key consideration in all our digital initiatives and products.

We are dedicated to further building our roadmap for disability inclusion, using the Disability Equality Index^®, and engaging in industry-wide initiatives such as the Inclusion Action Plan of the German Mining, Chemical, and Energy Industrial Union (IG BCE). As a signatory of the CEO Letter on Disability Inclusion, we support Disability:IN and have formalized our commitments in a new global position paper on the inclusion of people with disabilities.

Our actions related to our employees (S1-4)

We have implemented comprehensive processes to identify and address potential and actual negative impacts on our employees. These include regular impact assessments, stakeholder engagement initiatives and data analysis to monitor workforce well-being and job satisfaction. With our approach, we aim to develop and implement targeted action plans, such as enhanced health support programs and inclusion training, aimed at mitigating identified material impacts and risks. We continuously evaluate the effectiveness of these actions through feedback mechanisms and specific indicators, thereby aiming to ensure transparency and accountability in our reporting.

We prioritize the well-being of our workforce and are committed to ensuring that our practices do not cause or contribute to material negative impacts on our employees. We implement rigorous policies and procedures across all business functions, including procurement, sales and data use, to uphold high ethical standards and protect our workforce. Our procurement practices include thorough supplier assessments to ensure compliance with labor standards and human rights, while our sales strategies are guided by principles that prioritize employee welfare and customer integrity. In managing data, we aim to adhere to strict privacy and security protocols, safeguarding employee information and promoting responsible use of data.

In instances where tensions arise between the prevention or mitigation of material negative impacts and other business pressures, we adopt a balanced approach that emphasizes dialogue and collaboration. We engage relevant stakeholders to assess the situation, considering both the potential impacts on our workforce and the broader business objectives. This commitment to open communication enables us to make informed decisions that align with our values while maintaining operational effectiveness. Ultimately, we strive to maintain a work environment that not only meets business targets but also fosters a culture of respect, safety and well-being for all employees.

To date, we have not taken any measures to mitigate negative impacts on our workforce related to the transition to a greener, climate-neutral economy as we have not identified any such impacts. Since we understand the significance of addressing potential challenges related to a greener transition, we remain committed to monitoring external developments that may affect our workforce and plan to evaluate the need for future actions as the situation evolves.

In the following, we report on our actions that we use to manage our material impacts and risks with regard to our own workforce. Unless stated differently in the description of the individual actions, in 2024, no significant capital expenditures (CapEx) or operating expenditures (OpEx) were allocated to the following actions in relation to our own workforce. For 2025, we also do not intend to allocate any significant OpEx or CapEx.

Fertility Benefit Program

As part of our additional services, we continued the Group-wide roll-out of our Fertility Benefit Program in 2024, building on the policy we implemented in 2023. Through this program, we offer employees and their partners reimbursement for fertility treatments in addition to support through both internal and external sources The benefit program is now available in all countries and markets in which we operate. Key actions included introducing a payment process for fertility treatments in each country and market, providing access to knowledge and educational resources and publicizing the launch date in order to fully implement the benefit in each country and market. Furthermore, the benefit applies not only to all employees regardless of their marital status, gender identity, or sexual orientation, but also to their partners, subject to local legislation. This program forms part of our benefits strategy and approach to Diversity, Equity, Inclusion and Belonging.

BeHealthy Toolbox

As part of our global health employee strategy BeHealthy, we again offered various health promotion services in the reporting year, including training courses, self-tests, risk analyses, checklists, and advice on mental, physical and workplace-related health, for example on healthy shift work or ergonomics. Our Mindfulness Community comprises a group of employees, including the Mindfulness Ambassadors, who regularly exchange ideas on the topic of mindfulness, a stress management technique. We aim to anchor the topic in the workforce, and several mindfulness sessions are available globally to attend every week. We also held information campaigns and events on various health topics, such as mental health, movement and community engagement.

With the Employee Assistance Program (EAP), which HR offers as part of the BeHealthy Toolbox, we offer a confidential telephone counseling service, providing an independent and holistic support program for our employees. Employees can turn to the EAP for help with numerous issues. It offers short-term counseling and support for stress, anxiety, depression, relationship problems, or other personal or work-related problems.

Another core element of our health strategy is a mandatory training for managers to promote a health-oriented leadership culture. We aim to continuously improve the concepts and related materials we provide to managers for this purpose and plan to complete the rollout to 95% by the end of 2026.

We use the annual Employee Engagement Survey to calculate our healthiness index and track the effectiveness of our actions. This is intended to show the health status of our employees throughout the Group. We also measure the implementation progress of the BeHealthy strategy by the extent to which our employees use the BeHealthy Toolbox and participate in the Mindfulness Community.

Analysis of pay differences

In alignment with our company values of integrity and respect, we are committed to pay equity, a crucial aspect of our DEIB strategy. We started our journey toward a global gender pay equity analysis in 2021. In the first step, we analyzed ten of our largest countries and markets, covering approximately 80% of our total workforce. In 2023, we extended the analysis to all countries and markets globally except the US, which is subject to different legislation. In 2024, we conducted the analysis for the US.

Helping diverse talent flourish

To enhance diversity within our organization, we have established comprehensive programs aimed at supporting female talent, increased the number of women in management roles and undertaken a focused external search for potential female candidates. We also aim to attract international talent and individuals from underrepresented ethnic backgrounds, providing them with development opportunities. Our initiatives include training led by ERGs and setting standards for the executive recruitment team to encourage internal mobility and the hiring of managers from diverse backgrounds. In 2024, we launched campaigns focused on self-identification to help us gain deeper insights into our internal demographics. Additionally, we offer mentoring, sponsorship and talent development programs targeting individuals in STEM fields, such as through the McKinsey Connected Leaders Academy and the National Consortium for Graduate Degrees for Minorities in Engineering and Science, Inc (GEM) in the United States, PyGirls in Germany and Diverse Minds in Science in China. New hires also receive information about our ERGs during the onboarding process.

Daily commitment to inclusion

Our framework for education, tools and best practices sharing regarding diversity, equity, inclusion, and belonging, combined with empowerment. This supports intentional inclusion within our organization. To maximize our leaders’ effectiveness in building diverse and inclusive teams, we offer the Inclusive Leadership Workshop. The workshop combines global leadership interactions, peer coaching, continuous self-reflection, and leadership accountability. It is mandatory for all our leaders. Furthermore, psychological safety is a core topic of our leadership development programs. In addition, we offer numerous opportunities for all employees to learn how to be more inclusive colleagues, reduce unconscious bias at work and foster psychological safety. Employees in selected countries such as the United States and Canada have been required to complete Preventing Workplace Harassment training. Additionally, in 2024, we started to roll out a mandatory e-learning to our employees in all countries and markets, as permitted by law.

Individual development

In 2024, we introduced MyGrowth, an initiative for our development into a competency-oriented organization. Based on a growth mindset and our AI-driven platform, MyGrowth represents a commitment to development that enables employees to shape their own careers at our company. By providing access to tailored learning opportunities, mentorship programs and internal job prospects, MyGrowth promotes a continuous learning culture that aligns employee growth with the strategic needs of the company. In 2024, we allocated significant operating expenditures (OpEx) to our MyGrowth action plan. No capital expenditure (CapEx) was allocated. The OpEx amount is reported under G1 Corporate culture.

Continuous advancement of learning and development

Our global Learning & Development experts are currently revising our global learning and development landscape with the aim of improving our employees‘ learning experience. The objective is to develop a refined training standard, establishing well-defined roles and responsibilities for managing learning content, overseeing the portfolio, and coordinating the learning processes across all business sectors and enabling functions. We want to implement this strategic approach throughout the company over the next three to five years.

Roles and responsibilities

Group HR is responsible for advising all business sectors and Group functions on matters concerning personnel issues, for example topics related to recruiting, vocational training and advanced training. Across all our sites, HR employees work with leaders from various functions and business sectors to employ strategies that engage our people in line with Group-wide HR guidelines and requirements, including attractive compensation models and social benefits.

The Chair of the Executive Board and CEO is responsible for Group HR. Our Chief HR Officer, who leads the HR function and oversees all our HR activities, reports directly to the Chair of the Executive Board and CEO. Our Business Services unit oversees the operational tasks of HR work, such as drafting contracts and payroll accounting. The Chief Financial Officer is responsible for this unit. Our Chief Diversity, Equity and Inclusion Officer is responsible for our global DEIB strategy and for steering its related activities.

Our health and safety management system is the responsibility of Corporate Sustainability, Quality and Trade Compliance (SQ), which in turn reports to the Member of the Executive Board and CEO of Healthcare. SQ sets occupational safety objectives, oversees the respective initiatives globally and conducts internal EHS audits. Local EHS managers and their teams work towards ensuring that our individual sites comply with all occupational health and safety laws and regulations. The EHS managers also implement local projects, campaigns, and on-site programs.

Our targets related to our employees (S1-5)

We have set the following measurable outcome-oriented targets for our material sustainability matters related to our employees. The targets were developed in an internal interdisciplinary process.

We have not set measurable, outcome-oriented targets in accordance with ESRS requirements for the material sustainability matters of adequate wages, collective bargaining, secure employment, working time, work-life balance, or training and skills development. Nevertheless, we track the effectiveness of our policies and measures related to these sustainability matters through engagement processes (see S1-2) or by monitoring progress with specific indicators (see S1-6, S1-8, S1-10, S1-13).

Our metrics related to our employees

Unless otherwise stated, we report our employee-related figures in headcount and as of December 31, 2024. The actual number of employees is defined as the number of people (‘heads’) who work for us, considering only active employees based on their status. All active regular employees count as one person. Regular employees include those working either full-time or part-time and have either a limited or unlimited formal contract with one of our subsidiaries. Non-employees are not included.

For the employee breakdown by gender, we use the following three gender categories: ‘female’, ‘male’, and ‘other’ (including ‘not reported’). To determine the gender, we use information provided in accepted identification documents in the country of location of the employee. The country breakdown only consists of countries where we employ 50 or more employees representing at least 10% of our total number of employees.

The measurement of any employee-related metric has not been validated separately by an external body.

Characteristics of our employees (S1-6)

In the following table, we show the total number of employees, broken down by gender:

The following table displays the number of employees in each country where we have 50 or more employees representing at least 10% of our total number of employees. We determine the employee’s country allocation by the work location of the respective employee.

The most representative numbers in the financial statements that is related to the general characteristics of our employees can be found in the Notes to the Consolidated Financial Statements under (31) “Number of employees“ and under the (8) “Segment Reporting“.

In general, we aim to ensure the safe employment of our employees and to comply with legally prescribed country-specific exemptions. The following table presents the number of employees by contract type and broken down by gender in the reporting year:

The figures disclosed for permanent employees include all active employees who have an unlimited contract with one of our subsidiaries. The figures disclosed for temporary employees include all active employees who have a limited contract. We do not apply non-guaranteed hours employment contracts. Therefore, we do not report this category.

The total number of employees that have left the company during the reporting year amounted to 5,746. Thus, the employee turnover rate amounted to 9.2% in 2024.

The employee turnover rate is calculated by aggregating the total number of leavers (including voluntary as well as involuntary fluctuation) during the reporting period divided by the average employee headcount in the same period multiplied by 100. The turnover indicators exclude employees who pause due to parental leave or a long-term illness as well as employees who are transitioning to the non-working phase of partial retirement. Additionally, employees who leave the company due to a divestment are also excluded.

Our metrics related to working conditions

Collective bargaining coverage and social dialogue (S1-8)

The following table presents the overall collective bargaining coverage among our employees. For the first reporting year, we apply the phase-in option per ESRS 1 Appendix C and thus the figures only contain the total percentage across countries and markets where we operate and that are part of the European Economic Area (EEA). Within the EEA, we have multiple collective bargaining agreements:

Furthermore, the following table shows the percentage of our employees covered by collective bargaining agreements broken down by country for countries that are part (or not part) of the EEA. We only disclose the coverage for EEA countries where we employ at least 50 employees (by headcount) collectively representing at least 10% of our total number of employees. We cluster the countries according to their coverage rate. Applying the same approach, we also disclose the percentage of employees covered by workers’ representatives by EEA country:

In countries and markets where collective agreements do not apply due to different administrative, commercial and legal structures, we work closely with trade unions and/or workers’ representatives to implement operational decisions and coordinate relations between management and employees. The working conditions and terms of employment of employees in these countries are determined by legal requirements and our global guidelines.

Regarding employee representation, we have an agreement on the establishment of our Euroforum. More information on the Euroforum can be found under S1-2.

Adequate Wages (S1-10)

We are committed to the principle of “equal pay for equal work” and offer our employees competitive remuneration including additional benefits. The remuneration at least meets or exceeds the local remuneration conditions and guidelines and is intended to ensure a decent standard of living for our employees and their families. Our remuneration is based on the requirements of the respective position and the employee's performance. Our remuneration structures are benchmarked externally and updated based on prevailing local conditions. We empower our managers to decide on employees’ pay, based on local conditions and the requirements of the job, within the framework of the company’s compensation structures and philosophy. The managers are responsible for driving employees’ understanding of the pay structures and addressing concerns, if any. If there are further concerns, our Human Resources Business Partners may be contacted by the employees as well.

To calculate whether all our employees are paid an adequate wage, we record the local minimum wage requirements and the wage of the lowest-paid employee per country and compare the two. The cut-off date for the data collected was December 31, 2024.

We comply with local regulations for appropriate remuneration in all countries and markets in which we operate worldwide. In the reporting period, we paid all our employees an adequate wage, in line with the methodology described above.

Health and safety metrics (S1-14)

The following table shows the share of our own workforce who are covered by our occupational health and safety management system. The calculation is based on head count:

Our occupational health and safety (OHS) management system considers the key positions of the ISO 45001 and is established Group-wide as part of our globally integrated management system. This approach enables us to ensure, among other things, the occupational health and safety of all employees. Furthermore, as part of a Group certificate, our OHS management system is annually ISO 45001-certified at selected sites. The sites individually define the scope of their certification. For example, at the Darmstadt site, the ISO 45001 certificate covers employees in the production units as well as those working in infrastructure. For the coverage percentage disclosed above, we consider the coverage of our OHS management system and thus, the number includes exclusively our own employees. This also applies to employees who work at non-certified sites as well as those who are active at sites that are not included in the Group certificate, since our OHS management system is established at all our locations.

Work-related accidents

The following tables disclose figures regarding work-related accidents. A work-related accident is defined as an event that occurs during the course of work that results in injury or ill health. This encompasses sudden personal injuries that happen on site or during business trips, as long as they are connected to the employee's work and not caused by internal factors, such as heart attacks or epilepsy. Additionally, pre-existing damage to ligaments, joints, or back issues are typically not included. Injuries that occur while commuting or during company sports activities are also not counted in the figures below. Work-related ill health refers to any illness that can be attributed to the workplace and is verified by a company physician.

The number of fatalities as a result of work-related injuries of other workers working on our sites, such as contractors, amounted to 0 in the reporting year.

The rate of recordable work-related accidents represents the number of respective cases per one million hours worked without taking into account whether these cases resulted in missed days of work. Additionally, we report the lost time injury rate (LTIR) under S1-5 and ESRS 2 as it is one of our strategic sustainability key indicators used to gauge the success of our occupational safety efforts. The LTIR measures work-related injuries resulting in at least one day of missed work per one million hours worked (see S1-5 and ESRS 2).

Additionally, we use our Environment, Health and Safety Incident Rate (EHS IR) to track incidents. Under our EHS IR, we track and evaluate all major and minor accidents, environmental incidents as well as EHS non-compliances. It covers both our own employees as well as those of contractors. To calculate it, we state the number of incidents and the severity of the event in relation to the number of hours worked. The EHS IR represents an average value. The lower the EHS IR, the better the EHS performance of the site. In 2024, the ratio was 2.2. As one of our strategic key indicators, we also report the EHS IR under ESRS 2 (SBM-1).

Incidents, complaints and severe human rights impacts (S1-17)

The following table shows the number of work-related incidents and complaints concerning a violation of our Social and Labor Standards Policy within our own workforce. We distinguish between the number of reported violations filed through our existing grievance system as well as the number of confirmed violations of our Social and Labor Standards Policy during the reporting year. Confirmed violations comprise reported violations that were confirmed following investigations. Additionally, we disclose the number of reported and confirmed incidents of discrimination, including harassment as a specific form of discrimination.

The total number of confirmed violations of the Social and Labor Standards Policy is one of our strategic key indicators which we use to measure the progress of our sustainability strategy in the focus area of ‘Our people and communities; providing a diverse and inclusive environment’, see ESRS 2 (SBM-1).

In 2024, fines, penalties, and compensation for damages as result of incidents and complaints disclosed in the table above totaled € 0.

During the reporting period, no complaints in connection with our company and related to matters concerning our employees were filed to the National Contact Points for OECD Guidelines for Multinational Enterprises.

The following table discloses the number of severe human rights incidents connected to our own workforce. We consider incidents of forced labor, modern slavery, human trafficking, and child labor as severe human rights incidents.

In 2024, fines, penalties, and compensation for damages as a result of severe human rights incidents disclosed in the table above totaled € 0.

Our metrics related to equal treatment and opportunities for all

Diversity metrics (S1-9)

The following table shows the gender distribution at our top-management level:

We define top management level as all employees in senior management positions (Role 6+). We use a market-oriented system to rate positions within the company. To facilitate consistency across the organization, each position is assigned a specific role with an overarching job architecture classifying each role as one of 11 levels, 15 functions and a range of career types (Core Operations, Services & Support Groups; Experts; Managers; Project Managers).

The following table shows the total number of employees, broken down by age:

Based on birth year, we determine the age and allocate the individuals to their respective age group.

Persons with disabilities (S1-12)

In the following table, we disclose the percentage of employees with disabilities:

The indicator includes all employees with disabilities who voluntarily disclose their status, proven by an official document and only for countries where it is legally permitted to request such information. It is important to note that the legal definitions of 'persons with disabilities' vary across the countries and markets in which we operate. The actual percentage may be greater as the figures are based on voluntary submission of the disability status and reporting is limited to countries and markets where it is legally permitted to collect such information.

Training and skills development metrics (S1-13)

The following table shows the participation among our employees in regular performance and career development reviews, including a breakdown by gender:

The indicator is based on the number of performance reviews (year-end conversations) documented in our central HR system. Year-end conversations are positioned as valuable input for career and development conversations, encouraging line managers and employees to time their discussions accordingly. The comparatively low percentage of participation among the gender category “other” can be attributed to the fact that the majority of employees in this category belong to the newly acquired subsidiary Unity SC SAS (acquisition date: October 31, 2024). Employee data related to performance management is not yet fully integrated into our database. Therefore, the actual percentage of employees in the gender category “other” may be higher.

Remuneration metrics (pay gap and total remuneration) (S1-16)

Our remuneration is based on the requirements of the respective position on the one hand and the performance of the individual employee on the other hand. We make no distinctions based on gender or any other demographic characteristics. To ensure a competitive remuneration structure, we regularly review our salary policy using data analysis and industry benchmarks. Before we make changes, we thoroughly analyze current market conditions and practices and involve relevant stakeholders as well as important stakeholder groups, such as employee representatives where applicable.

In addition to individual performance, our annual and long-term incentive plans measure company performance on the basis of financial and non-financial indicators. The latter are intended to drive forward our High-Impact Culture and sustainability strategy. In addition to a competitive salary, we offer attractive additional and social benefits through our benefits programs, such as a company pension scheme, health insurance and other employee insurance as well as other local offers, such as bicycle leasing or discount programs.

The percentage gap in pay between female and male employees, expressed as a percentage of the average pay level of male employees, amounted to 8.8% in 2024 (unadjusted pay gap). For the calculation, we considered the difference in average pay levels between female and male employees. In previous years, we chose to report the adjusted gender pay gap as we understand that this metric provides a more accurate representation of pay disparities by controlling for various factors such as education, experience and job roles. The adjusted gender pay gap defines the difference in average pay levels between female and male employees after controlling for various factors that can influence pay. The ratio between the remuneration of our highest-paid individual and the median remuneration for our employees amounted to 97.3 in the reporting year.

The underlying calculations for both indicators are based on taxable employee compensation. They include annual base salary, short-term and long-term incentives, all other recurring payments (such as allowance and profit sharing), and all benefits in kind (taxable benefits). Various objective factors influence the pay gap as well as the total annual remuneration, including the type of work, the country/market and sector in which employees are employed as well as individual factors such as educational qualifications, length of service, age, performance, and work experience. To calculate the median annual total remuneration, we included all employees who worked for us the full reporting year, excluding the highest paid individual and employees on unpaid leave.