KraussMaffei:
Declaration of Principles on Human Rights

Declaration of principles on human rights

KraussMaffei1 is one of the world's leading manufacturers of machines and systems for the production and processing of plastics and rubber. 1 Our range of products and services covers all technologies in injection molding, extrusion and reaction process machinery. This is a unique selling point in the industry. We serve customers in the automotive, packaging, medical and construction industries, among others and employ around 4,700 people.2

This policy statement on human rights supplements the KraussMaffei Code of Compliance and Ethics and our Supplier Code of Conduct. These form the basis for all the regulations and guidelines that ensure responsible, ethically correct conduct within the company. This is our self-evident claim.

THE 10 PRINCIPLES OF THE UN GLOBAL COMPACT

HUMAN RIGHTS - BUSINESSES SHOULD

Prinzip 1:

support and respect the protection of internationally proclaimed human rights.

Prinzip 2:

ensure that they are not complicit in human rights abuses.

WORKING STANDARDS - BUSINESSES SHOULD UPHOLD

Prinzip 3:

the freedom of association and the effective recognition of the right to collective bargaining.

Prinzip 4:

the elimination of all forms of forced and compulsory labor.

Prinzip 5:

the elimination of child labor.

Prinzip 6:

the elimination of discrimination in respect of employment and occupation.

ENVIRONMENT - BUSINESSES SHOULD

Prinzip 7:

apply the precautionary principle in dealing with environmental problems.

Prinzip 8:

undertake initiatives to promote greater environmental awareness.

Prinzip 9:

accelerate the development and diffusion of environmentally friendly technologies.

CORRUPTION PREVENTION

Prinzip 10:

Businesses should work against corruption in all its forms, including extortion and bribery.

1 Our commitment

Respect for human rights is a fundamental value at KraussMaffei. We are committed to respecting all internationally recognized human rights – especially those relevant to our operations – and base our Statement of Principles on Human Rights: ✔ Ten principles of the UN Global Compact

✔ Universal Declaration of Human Rights

✔ Five fundamental principles and rights at work of the International Labor Organization (ILO)

✔ OECD Guidelines for Multinational Enterprises

✔ UN Guiding Principles on Business and Human Rights

✔ Sustainable Development Goals of the United Nations.

We believe that these rights are inherent for all human beings and are interconnected, interdependent and indivisible. States have a duty to protect human rights and, as a company, we recognize that we have the same responsibility.

We take responsibility for our employees and take seriously our duty to minimize our business's impact on the environment. Other essential components of our work are social responsibility and responsible procurement. The principles defining these approaches are laid out in the KraussMaffei Compliance and Ethics Code and Supplier Code of Conduct. This enables us to grow reliably, and sustainably long term, thus securing jobs worldwide.

Our guiding principle is to always comply with applicable legal requirements in all regions and countries in which we operate. If national laws and international human rights standards differ, we ensure that we comply with national laws as a minimum standard. We then work with our operations and partners to find ways to comply with human rights standards as far as possible.

2 Scope

This policy statement applies to our employees in all business units worldwide. With these standards, we commit all employees to behaving appropriately and lawfully – toward colleagues, partners and communities.

We expect our partners to pass on our commitment to respecting human rights to their business partners.

International Labour Organization

The fundamental principles and rights at work established by the ILO are:

  1. Freedom of association and the effective recognition of the right to collective bargaining
  2. The elimination of all forms of forced or compulsory labor
  3. The effective abolition of child labor
  4. The elimination of discrimination in employment and occupation
  5. A safe and healthy working environment

The four Sustainable Development Goals on which KraussMaffei focuses:

  • SDG 5: Achieve gender equality and empower all women and girls
  • SDG 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
  • SDG 12: Ensure sustainable consumption and production patterns
  • SDG 13: Take urgent action to combat climate change and its impacts

3 Basic and primary human rights

The following human rights and employee rights are of particular importance in the context of our business activities:

a. Child labor

We reject all forms of child labor as defined by the relevant ILO core labor standards.3

This applies in particular to the worst forms of child labor, such as hazardous work, which may be harmful to children's health, safety or morals. In accordance with the relevant ILO core labor standards, we comply with the minimum age for employment, and all our employer practices shall at a minimum be aligned with the aforementioned ILO standards.

b. Forced labor

We reject any form of forced or compulsory labor. Likewise, we reject any form of debt bondage, military labor, modern slavery, and human trafficking. Work must always be voluntary. In accordance with the relevant ILO core labor standards,4 we do not tolerate the use of forced or unlawful compulsory labor in our business activities.

c. Diversity and inclusion

We promote a work environment that enables inclusion and values our employees' diversity. We are committed to equal opportunities and reject any form of discrimination or harassment, such as on the basis of gender, skin color, ethnic origin, nationality, social origin, religion, world view, age, disability, sexual orientation and identity, health status, political or other beliefs, or other legally protected characteristics.5

The basis for selecting and promoting employees at KraussMaffei is qualification, performance, individual skills and experience.

d. Freedom of association and collective bargaining

We recognize and respect our employees' right to form and join employee representative bodies and trade unions, to engage in collective bargaining to regulate working conditions and, depending on applicable law, to strike.6 Employees will not be discriminated against or favored in any way on the basis of their membership or non-membership of an employee representative body or trade union, or on the basis of the fact that they act as employee representatives.

e. Remuneration

With our compensation and benefits, we want to enable our employees and their families to enjoy an appropriate standard of living. We are therefore committed to an appropriate wage that at least reaches the minimum wage set by applicable law. Otherwise, this is determined by the law applicable at the place of employment. In accordance with the relevant ILO core labor standards,7 we are also committed to the principle of equal pay for work of equal value without regard to gender or other discriminatory distinctions. We pay our employees promptly and clearly communicate the basis on which employees are paid.

f. Working time

At a minimum, we comply with all applicable local laws regarding working hours, including overtime, rest breaks ­and paid vacations. In addition, we are committed to ensuring, to the extent permitted by applicable law, that work breaks, reasonable limits on working hours and regular paid rest leave are provided.

g. Occupational health and safety

Our employees' safety, health and well-being are of utmost importance to us. We comply with the respective applicable occupational health and safety laws as a minimum standard and are committed to further-reaching standards of our own for the continuous improvement of occupational safety to create a safe and health-promoting working environment, to preserve employees' health, to protect third parties, and to ­prevent accidents, injuries, and ­work-related illness.8

h. Data protection

We respect all individuals' privacy and the confidentiality of any personal data we have about them. Our data protection policy provides appropriate safeguards for transferring personal data belonging to employees, customers and suppliers within KraussMaffei. KraussMaffei's data protection management works to ensure compliance with relevant data protection regulations in each case and to minimize the impact on privacy.

i. Use of security forces

When deploying internal and external security forces to protect our business activities, we ensure that they are committed to respecting internationally recognized human rights.

j. Environment

We are committed to protecting the environment. We are aware that our business activities impact the environment and climate. We regularly check whether our business activities comply with legal regulations for the protection of the environment and climate, such as the use, collection, storage, recycling and disposal of hazardous substances and waste.9 Furthermore, we have introduced further measures and special programs to avoid or at least minimize negative impacts on the environment and climate.

k. Local communities and indigenous peoples

We recognize that our business activities may have an impact on local communities and indigenous peoples. We respect their rights and strive to minimize impacts on local people and their livelihoods.

4 Due diligence

Our commitment to respecting human rights is also reflected in KraussMaffei's policies, e.g., in our Compliance and Ethics Code, Supplier Code of Conduct and in our operations. To comply with international human rights standards, national laws and KraussMaffei policies, we conduct appropriate due diligence on human rights and environmental risks to identify, assess and address potential and actual negative impacts in our business activities and supply chain.

To review the impact of our actions on human rights, a human rights risk analysis was carried out in 2022. The aim was to analyze potential human rights risk issues and prioritize where particular risks were identified.

From this we want to derive measures to avert potential risks, align our management processes accordingly and raise awareness of these issues among employees, business partners and suppliers. This will be integrated into KraussMaffei's existing risk management processes.

Based on the aforementioned frameworks, the following nine human rights topics were identified for this purpose, which could potentially be relevant along our value chain:

1. Prohibition of discrimination, right to equal opportunities and equal treatment10

2. Prohibition of slavery and forced labor11

3. Prohibition of child labor, protection of minors12

4. Freedom of thought, expression and religion

5. Freedom of assembly and association13

6. The right to sphere of freedom and self-determination

7. The right to work, fair wages, safe working conditions and social security14

8. The right to health, welfare and safety at work15

9. The right to education, further education, training

5 Complaint mechanism

We encourage our employees, business partners and other external third parties to report suspected human rights violations or violations of this Policy Statement to our internal or external Compliance Officers via existing reporting procedures.1 Our employees can also contact their supervisors, local management, and the relevant HR and legal departments.

6 Notice mechanism and handling of violations

Upon receipt of a tip, a risk-based review of the reported activity is conducted. If it is determined that there is a risk that our business activities or business activities within our supply chain are causing or contributing to negative impacts on human rights or the environment, we have procedures in place to assess, modify, stop and/or correct our activity. We will also take appropriate measures aiming to prevent or stop the risk from materializing within our supply chain, if possible, or minimize the impact. If the human rights violation or breach of this policy statement is due to the behavior of individual employees, this may result in labor law measures. In the event of a legal violation, we also reserve the right to refer the matter to the relevant authorities for further action in accordance with local legislation.

7 Implementation

Responsibility for implementing this policy statement is managed by KraussMaffei CEO Michael Ruf. This ensures that each area of our company is aware of its own responsibility for respecting human rights and implementing them on a day-to-day basis.

8 Communication and training

KraussMaffei will communicate this policy statement to employees in an appropriate manner. We also offer our employees specific training on human rights and environmental topics.

9 Stakeholder engagement and evaluation

We recognize that we are an integral part of the communities in which we operate. We seek constant dialogue with stakeholders to better understand and take into account their views and expectations regarding human rights.

We also regularly review and evaluate how we can best optimize and strengthen our approach to human rights and environmental protection within our sphere of influence.

10 Reporting and monitoring

KraussMaffei will report annually on the measures taken to implement due diligence in the supply chain, in particular on the results of risk analyses and on evaluations of measures taken to mitigate risks. Furthermore, KraussMaffei communicates in its annual or sustainability report in accordance with this policy statement regarding commitments, declarations and activities on human rights and environmental protection. Progress on implementing this declaration of principles is regularly reviewed by KraussMaffei.

11 Final clause

This KraussMaffei policy statement on human rights comes into force on January 1, 2023; it does not have any retroactive effect. No rights or claims of individuals or third parties can be derived from this policy statement. Only the German version of this policy statement is binding.

The Management Board of KraussMaffei Group GmbH: Michael Ruf (CEO) and Jörg Bremer (CFO)

If you have any questions about the Human Rights Policy Statement, please contact sustainability@kraussmaffei.com

  1. KraussMaffei comprises KraussMaffei Group GmbH and all Group companies controlled by it.
  2. If, for reasons of linguistic simplification, only the masculine form is used for natural persons, the content always refers to persons of all gender identities. The term "employees" also includes executives at all levels and members of the management.
  3. ILO Conventions No. 138 and No. 182
  4. ILO Convention No. 29, No. 105 and Protocol of June 11, 2014 to ILO Convention No. 29.
  5. ILO Conventions No. 100 and No. 111
  6. ILO Conventions No. 87 and No. 98
  7. ILO Conventions No. 100 and No. 111
  8. ILO Conventions No. 155 and No. 187
  9. For example, the Minamata Convention on Mercury of October 10, 2013, the Stockholm Convention on Persistent Organic Pollutants of May 23, 2001, and the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal of March 22, 1989, each as amended.
  10. See ILO Conventions No. 100 and No. 111.
  11. Cf. ILO Convention No. 29, No. 105 and Protocol of June 11, 2014 to ILO Convention No. 29.
  12. Cf. ILO Conventions No. 138 and No. 182
  13. Cf. ILO Conventions No. 87 and No. 98
  14. Cf. ILO Conventions No. 155 and No. 187
  15. See ILO Conventions No. 155 and No. 187.
  16. Current contact information is available on the KraussMaffei website at “Declaration of Principles on Human Right”