Corporate Responsibility

Increasing value, living values – for over 260 years, Haniel has combined entrepreneurial drive with a stable framework of values in line with this principle. Accordingly, Corporate Responsibility is firmly anchored in the Company’s DNA and is embodied in equal part by the owner family as well as by the management and the employees. The aim is to combine economic success with responsibility for employees, society and the environment, thereby creating value for generations. The shared understanding of values is expressed in Haniel’s Code of Conduct, which defines principles of conduct in business dealings at all levels. In its Code, Haniel commits among other things to environmental responsibility, fair and safe working conditions, combating corruption and to compliance with internationally recognised human rights. In addition, we adhere to the principles set out in the UN Global Compact. As a signatory to the United Nations initiative, Haniel has committed to uphold and spread the principles and ensure transparent reporting. The divisions are also members of the UN Global Compact or adhere to the principles underpinning it; they have also issued their own codes of conduct based on Haniel’s Code of Conduct.

The Haniel Holding Company is building a diversified portfolio. The objective of active portfolio management is to sustainably increase enterprise value. Haniel strives to achieve this economic goal in harmony with ecological and social goals. This approach is applied along the entire value chain – from the investment phase to portfolio management through to divestment. The Haniel Holding Company has established a variety of processes and tools for investment decisions and integrated CR into its existing principles. When looking into potential acquisition targets, social and ecological criteria are also examined using Haniel’s investment filter in order to enable it to assess the candidate’s CR profile. Only those business models that are able to make a positive contribution to sustainability in the future are considered. The Holding Company decides on the divisions’ investments and acquisition projects on the basis of the Capital Expenditure and Valuation Guidelines: These guidelines require all investments and acquisitions which are subject to the requisite approvals process be analysed in detail with respect to the positive and any negative implications for the CR strategy. The Holding Company’s decision-making process relating to investments in financial assets also takes CR aspects into account.

The Holding Company places its focus where it has the greatest leverage: in developing and managing the investments. Haniel lays down guidelines and principles for CR management. Rules of procedure which set out the framework for collaboration on the basis of statutory provisions stipulate that the Holding Company be involved in the development of the divisions’ CR strategies. This is because it has an interest in all equity investments prioritising those CR issues which are relevant to them on the basis of stakeholder expectations, developing on that basis an individual CR programme for each business model with objectives and measures, and implementing them by establishing a CR organisation. At the management and departmental levels, there are Corporate Responsibility officers and a regular CR dialogue between the Holding Company and the divisions. In addition, the Holding Company organises the Group CR Round Table, where CR experts exchange information and experience. Responsibility for coordinating CR activities at the Holding Company and within the Haniel Group lies with Strategic Investment Controlling.

The results of CR management are presented in a transparent, regular CR report. The Holding Company and the divisions prepare this report on the basis of the internationally recognised guidelines of the Global Reporting Initiative (GRI). The publication of the next GRI report for the Holding Company is planned for mid-2019. Haniel will present the results of a new stakeholder survey and materiality analysis which are currently being carried out. Haniel also meets the requirements set out in the European Union’s CSR Directive and the corresponding German implementing legislation, and publishes a separate report online for the non-financial statement at

www.haniel.de/en/responsibility/ nonfinancialstatement2018

BekaertDeslee is a globally leading specialist for the development and manufacturing of mattress textiles. Assuming sustainability means offering safe, high-quality products and ensuring that business activities are environmentally friendly and socially responsible. It is an essential part of BekaertDeslee’s basic values and deeply rooted in the corporate culture. BekaertDeslee defined its CR focus areas after conducting a stakeholder survey. At the conclusion of this process, the company’s activities were aligned accordingly and a roadmap was drawn up: Under the leadership of the management, an interdisciplinary team has since then prioritised and initiated sustainability projects along the entire value chain, and published a first CR report in mid-2018. More information at
www.bekaertdeslee.com/about/cr.

For CWS-boco, one of the leading international providers for hygiene and workwear solutions, reusability is part of the company’s corporate philosophy. The division is committed to sustainable business practices, to making efficient use of resources and respect for people and the environment. A systematic stakeholder management serves to ascertain the most important issues around sustainability. The results are evaluated from a strategic viewpoint and approved by management. In mid-2017, within the CWS-boco Group a joint venture with Rentokil Initial was formed, rendering it necessary to review and update the division’s CR strategy: In 2018, the division defined focus areas in the course of an international stakeholder survey, set corresponding action areas, derived appropriate KPIs and established an overarching governance structure. Information about CWS-boco’s commitment to sustainability can be found in the CR interim report at
www.cws.com/en-IE/sustainability .

For more than 50 years, ELG has been active in the recycling and global trading of raw materials – particularly in the market segments stainless steel and superalloys. This means that sustainability is naturally anchored in ELG’s business model and corporate philosophy. Promoting responsibility among employees, ethical business practices and strong partnerships with stakeholders are also a focal point of operations. ELG therefore carried out a stakeholder dialogue, which demonstrated which sustainability issues are of particular importance for the company and its stakeholders. The various topics were brought together under priority areas. Many of the measures carried out under these priority areas were initiated by local management, with CR officers in head office coordinating, monitoring progress and communicating developments. Find out more in the CR report at
www.elg.de/en/sustainability.html.

Optimar, the manufacturer of automated fish handling systems, has been a part of Haniel’s portfolio since December 2017. Fish handling with care – the company’s corporate philosophy expresses two focus areas: firstly animal welfare, secondly food safety of fish products. While automating fish processing activities, Optimar ensures appropriate handling and killing practice. A further advantage of robotisation lies in lower hygiene risks, since the number of touch points between seafood and people is reduced. At the same time, Optimar’s technological solutions provide full traceability of the individual processing steps, which is crucial for sustainable fishing. The company believes there is a strong correlation between long-term profitability and responsible business practices. This attitude is reflected in Optimar’s Environmental, Social and Governance (ESG) Standards. Find out more at
www.optimar.no.

Following its acquisition by Haniel in November 2017, premium manufacturer of packaging machinery and equipment ROVEMA identified its core sustainability issues under the leadership of the management and based on the company’s corporate strategy, which it summarised into four focal points: Save Energy, Safe Food, Sustainable Packaging and Supply Chain. The activities under these focal points are aimed at promoting the sparing use of resources and protecting the quality of food. Progress is monitored and communicated by a CR officer. Find out more at
www.rovema.com/en/engineering/sustainability .

At TAKKT sustainability and profitable growth go hand in hand. The B2B direct marketing specialist for office equipment’s SCORE ‘Sustainable Corporate Responsibility’ programme lays the foundation for coordinating sustainable business management activities across all segments and for implementing those measures in day-to-day operations. TAKKT has developed a sustainability strategy for the years to come: the core issues were identified in a stakeholder dialogue, assigned weightings and corresponding measures were initiated to implement them and achieve goals. Having an established system of indicators is an important instrument to ensure that progress is measurable and transparent. For more information in the sustainability report, go to
www.takkt.de/en/sustainability.

The CECONOMY and METRO financial investments continue to pursue their commitments independently from Haniel and each have their own CR organisation and strategy. CECONOMY facilitates life in the digital world. Its approach to sustainability focuses on strategic topics which are closely linked to the value chain of its largest investment, the MediaMarktSaturn Retail Group. Find out more at
www.ceconomy.de/en/sustainability.

METRO`s objective is to generate added value for its customers, while concurrently reducing negative impacts. At METRO, sustainability encompasses every individual aspect of behaviour and is firmly integrated into the corporate strategy. In order to live up to its objective the financial investment has embedded sustainability in its core business. The retail group describes its broad CR commitment along the value chain at
www.metroag.de/en/company/responsibility.

As a family-owned company, the Haniel Holding Company assumes responsibility for its employees and takes care to ensure that they are able to develop their skills and realise their potential. The Haniel Academy provides momentum for the further development of employees within the Group and serves as a platform where experience can be exchanged. Its role is to support the professionalisation, development and networking of the Group’s employees – for instance with the “Haniel Leadership Curriculum”. The tailored development programmes assist ambitious Haniel Group employees with potential along their path from their first leadership role through to top management, and prepare them for new entrepreneurial challenges. In addition, the “Haniel Management School” provides experienced executives with a format that examines not only current management methods and concepts but also issues of the future. The Haniel Academy’s curriculum is primarily designed for specialists and managers of the Group and addresses internal requirements and current management trends.

The ideas, abilities and commitment of employees are crucial to the Group’s success. Haniel maintains regular dialogue with employees, which is characterised by openness and mutual respect. The Group has established a variety of formats to that end. For instance, personal development interviews and continuous feedback between employees and their superiors ensure individualised, targeted continuing development. During the annual dialogue, the employee’s strengths and potential for development are identified and development measures, including participation in seminars and programmes at the Haniel Academy, are agreed. At Haniel, all employees are given the opportunity for professional and individual development – regardless of their gender, age or nationality.

The aim of company health management is to safeguard the health and productivity of employees. The Haniel Holding Company offers, among other things, a series of preventative check-ups and sport offerings such as fitness classes or back and spine exercise courses. In addition, the Haniel Academy offers seminars on health and stress management. In 2018, the focus was once again placed on the provision of healthcare for employees over 50. In addition, an online portal went live in May, where all employees can sign up for internal and external health, nutrition and sport classes – some of which are subsidised. More than half of the employees have signed up since then.

Haniel helps its employees to strike a balance between their professional and private lives, and gives them a high degree of flexibility. A variety of working time models enables employees to bring their professional activities into harmony with their respective life situations. These include flex-time and part-time models as well as partial early retirement models. Employees who work in an area where telecommuting is a possibility can work from their home office on an alternating schedule. In addition, they are granted paid leave to care for family members. Haniel has entered into a partnership with a family service that provides individual advice to employees to meet their diverse needs.

In keeping with Haniel’s values, the companies of the Haniel Group are actively committed to creating added value for society and the environment – in those areas where its competencies make this possible. The Holding Company sees itself as a “corporate citizen” and has traditionally provided not only financial but also material and conceptual support to promote education and culture, as well as a sense of responsibility for its hometown, Duisburg. Since April 2016, Haniel has been working with the KfW Foundation, the Prof. Otto Beisheim Foundation and Social Impact gGmbH to encourage innovation and a spirit of entrepreneurship in the region: The first centre for social innovation in North Rhine-Westphalia was founded at our headquarters in Ruhrort. At the end of the year, we took a different approach: In mid-December, the existing team formed the start-up incubator on Franz-Haniel-Platz under the name “Impact Factory”. The aim is to further professionalise the incubator for companies seeking to tackle urgent social challenges with their ideas.