3.2 Human rights The Business Conduct Guidelines them responsibly to the extent that they can be influenced Our commitment to respecting human rights is anchored in our by the company. Siemens Business Conduct Guidelines (BCGs) COMPLIANCE AND ETHICS. They set out the fundamental principles and rules Actions and results that apply to our actions relating to human rights in our company and with our customers, external partners, and the Human rights in our own workforce public. The BCGs are binding for all employees worldwide. In The BCGs are an integral element of all employment con- addition, the Siemens Group Code of Conduct for Suppliers tracts. BUSINESS CONDUCT GUIDELINES. Siemens does not tolerate and Third-Party Intermediaries (Supplier Code of Conduct), discrimination, sexual harassment, or any other form of which is mainly focused on rules of conduct relating to personal attack on individuals or groups. In addition, the human rights, applies to the company’s suppliers, third-party principles of equal opportunity and equal treatment apply intermediaries, and business partners. without restriction. We foster diversity, equal opportunity, and inclusion in the interest of creating an open and Beyond that, Siemens has reaffirmed its commitment to welcoming work environment. DIVERSITY, EQUITY & INCLUSION workers’ fundamental labor rights in an International Frame- work Agreement signed with trade unions and employee Human rights in the supply chain representatives in 2012. This specifically includes the right One of our guiding principles is to maintain sustainable to collective bargaining and freedom of association. supply chains. Siemens’ suppliers commit to upholding the Supplier Code of Conduct, which affirms the fundamental Targets human rights of our suppliers’ employees. In fiscal 2023, we Our DEGREE sustainability framework consists of a number modified the Supplier Code of Conduct to include additional of fields of actions that address the multifaceted issue of requirements from new regulations and prepared its rollout human rights in the areas of G (Governance), E (Ethics), readiness for fiscal 2024. E (Employability), and E (Equity).1 The Code encompasses but is not limited to the following Regarding our approach to respecting human rights, we have human rights topics: established measures that encompass our own operations, our supply chain, and customer-related business activities. → Fair work conditions (pay, work hours, vacations) → Right to freedom of association Continuous improvement measures → Responsibility for health and safety standards We view fulfilling our responsibility to human rights as a → Prohibition of discrimination continuous improvement journey. In fiscal 2023, Siemens → Prohibition of forced labor and child labor modified its policies, processes, and methods to align with → Provision of anonymous grievance mechanisms regulatory requirements like the LkSG. We have established a cross-functional Committee with the aim of ensuring gov- Siemens takes a risk-based approach to identifying potential ernance oversight and decision-making on future measures risks in its supply chain. This includes Corporate Responsibility related to the LkSG. Self-Assessments (CRSAs) by suppliers and external sustain- ability audits. When deviations from the Supplier Code of In consideration of future regulatory developments and Conduct and violations of the human rights principles are - increased stakeholder expectations, we strive to continu identified, we work with suppliers to clarify how lasting ously modify the company’s risk management programs and corrective actions can be taken within a reasonable time- procedures across our value chain. frame. SUSTAINABLE SUPPLY CHAIN PRACTICES We aim to systematically identify and assess the risk of In the case of severe violations, we reserve the right to human rights violations at an early stage and to mitigate terminate the supplier relationship. MATERIAL HUMAN RIGHTS RISK ISSUES IN OUR VALUE CHAIN 1 Siemens without SHS. SIEMENS SUSTAINABILITY REPORT 2023 41