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Governance


Good Corporate Governance

Within the scope of our activities, we observe the generally recognized principles of responsible corporate governance. For Bilfinger, good corporate governance most importantly means responsible behavior toward shareholders, employees, business partners, society and the environment. It also determines the actions of Bilfinger SE’s executives and management bodies in particular. It is generally understood to refer to the entire management and control system of a company, including its organization, its business management principles and guidelines as well as the internal and external monitoring and control mechanisms.

A comprehensive and transparent corporate governance ensures the responsible, value-oriented and sustainable management and control of the company. It forms the foundation for sustainable business success and fosters trust among our shareholders, employees, and customers as well as our business partners and the financial markets. At Bilfinger, we view good corporate governance as an all-encompassing topic that is inextricably linked to the other aspects of sustainability.

Never compromise on integrity 

 

 

Please contact the appropriate person or you may use our Confidential Reporting Line.

Code of Conduct

Statement of Principles on Human Rights

Confidential Reporting Line

Management committees and leadership

Management committees and leadership

Bilfinger SE, a European stock corporation headquartered in Germany, has a dual management and control structure consisting of the executive bodies Executive Board and Supervisory Board. While the Executive Board is responsible for managing the business of the company and the Group, the Supervisory Board supervises it and has personnel authority over the members of the Executive Board. The two committees work in close cooperation for the benefit and in the interest of the company. The third corporate body is the Annual General Meeting, which, in accordance with the law, is primarily responsible for fundamental decisions.

In the course of implementing corporate governance, Bilfinger follows the recognized standards of the German Corporate Governance Code (GCGC). The Executive Board and Supervisory Board of Bilfinger issue an annual declaration of compliance with regard to the application of the recommendations of the GCGC.

The declaration of compliance and the GCGC as well as further details on the duties and responsibilities of the boards of the company are provided in the Declaration of corporate governance and corporate governance report of the Annual Report.

 

 

Executive Board

The Executive Board conducts the business and manages Bilfinger SE and the Bilfinger Group in the interests of the company on its own responsibility. It also takes into account the sustainability aspects of environment, social and governance (ESG). The Executive Board has established specific committees to implement and ensure corporate governance in the company and the Group. This includes in particular the Group Executive Management, the Bilfinger Risk Committee, the Safety Council, the Compliance Review Board, the Independent Allegation Management Committee and SustaiNet.

 

Group Executive Management

Group Executive Management (GEM) is a committee that advises and supports the Executive Board on operational and strategic issues relating to the Group that it selects. The committee discusses and develops topics that it is presented with or assigned and, where relevant, prepares them for discussion and possible decision by the Executive Board. The objective of the GEM is, in particular, to reduce the number of administrative processes, strengthen the personal responsibility of managers and operating units and facilitate faster decision-making, whereby the GEM has no authority to issue instructions or make decisions of its own. In addition to the Executive Board, the GEM comprises the heads of the three segments (Engineering & Maintenance Europe, Engineering & Maintenance International, Technologies), the heads of the Group functions Products & Innovation, HR & HSEQ and Procurement. The GEM meets at least once a month.

Bilfinger Risk Committee

The Bilfinger Risk Committee (BRC) meets at least every six months at the behest of the Executive Board and advises it on issues related, among other things, to risk assessment. It consists of the members of the Executive Board and Chief Financial Officer (CFO), the Finance Directors (FDs) of the individual regions, and selected heads of Group functions. The BRC supports the design of an effective and pragmatic risk management system, the monitoring of general risk developments and promotes risk awareness and risk culture within the Group. The assessment of non-financial risks to society and the environment that could arise from Bilfinger’s activities is also carried out on at least an annual basis as part of the BRC. The BRC thus contributes to general quality assurance as well as to the identification, treatment and reporting of significant Group risks.

Safety Council

The Safety Council is the responsibility of the Executive Board member responsible for HSEQ and is the exploratory and decision-making body for Bilfinger HSEQ issues. The Executive Board member responsible for HSEQ chairs the Safety Council. Other members include the Head of Group HR & HSEQ as well as the Executive Presidents (EPs) of the individual regions. The Safety Council meets monthly and decides on all Group-wide HSEQ issues. In this regard, the Safety Council makes a significant contribution to the implementation of HSEQ objectives throughout the Group.

Compliance Review Board

The Compliance Review Board (CRB) manages and monitors the organization and implementation of our compliance management system. It is comprised of the full Executive Board as well as selected heads of the Group functions and convenes when necessary under the chairmanship of the Chief Compliance Officer (CCO). The CRB has a central role in ensuring the effectiveness of our compliance management system.

Independent Allegation Management Committee

The Independent Allegation Management Committee (IAMC) is composed of heads and representatives of Compliance, Legal & Insurance, Internal Audit & Investigations, Accounting, Controlling & Tax, and HR & HSEQ and meets as often as necessary, but at least once a month. Under the chairmanship of the Head of Investigations, the committee controls and monitors the conduct of internal investigations into possible serious violations of our Code of Conduct. The IAMC also advises on necessary responses to identified violations including process changes, control activities and disciplinary measures.

Disciplinary Committee

The Disciplinary Committee (DC) convenes on an ad-hoc basis – generally when a case has been presented by the Independent Allegation Management Committee – to decide on disciplinary measures for employees in connection with a violation of the Bilfinger Code of Conduct. The DC is chaired by the Head of Group HR & HSEQ. The committee also includes the General Counsel / CCO and the Head of Labor Law / Co-Determination as permanent members as well as the direct superior of the business unit in which the matter to be assessed took place and / or the heads of the relevant segment / region as alternating members.

SustaiNet

SustaiNet is a sustainability network responsible for coordinating and harmonizing sustainability management at Group level. It is coordinated by Group Treasury & Investor Relations in the area of responsibility of the member of the Executive Board and CFO. Members of SustaiNet are the Heads of the segments and selected Group functions and corporate functions whose areas of responsibility have relevant points of contact with sustainability matters.

SustaiNet meets at least twice a year; in addition, meetings are convened on an ad-hoc and project-related basis.

 

Supervisory Board

In accordance with Article 11 of the Articles of Incorporation, the Supervisory Board of Bilfinger SE consists of 12 members, including equal representation of the shareholders and the employees. It advises and monitors the Executive Board and is responsible for the appointment and dismissal of Executive Board members as well as their employment contracts and remuneration. Monitoring also covers the topics of sustainability environmental, social & governance (ESG) and the corresponding reporting.

 

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In addition to legal provisions and the Articles of Association, the Supervisory Board has adopted Rules of Procedure which set out, among other things, the tasks, items that require approval as well as other requirements for Supervisory Board members, together with the formalities for preparing, convening and holding meetings and adopting resolutions. This is reviewed regularly. The Rules of Procedure were last updated in the 2022 financial year and are available on the Bilfinger SE website. The Supervisory Board has established various committees in order to ensure more efficient operations. Details of the committees are explained in the Declaration of corporate governance and corporate governance report of the Annual Report. The Supervisory Board has, among other things, assigned the supervision and preparation of the topic of sustainability with regard to ESG to the committees responsible for the corresponding (financial) topic areas, with the overall and ultimate responsibility for this remaining unchanged with the Supervisory Board.

Fundamental structure the Bilfinger Group

The Bilfinger Group is hierarchically and decentrally organized. It is managed by Bilfinger SE as the parent company and headquarters.

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Headquarters – under the leadership of the Executive Board – is responsible for the fundamental structural and functional management as well as the administration of the Bilfinger Group. It is divided into Group functions, in some cases with corporate functions as subunits, and each of them is assigned to the responsibility of a member of the Executive Board. Operationally, the Group is structured into three segments (Engineering & Maintenance Europe, Engineering & Maintenance International, Technologies) at the first level below the Executive Board. The two Engineering & Maintenance segments are organized regionally (eight regions in total) and the Technologies segment is organized into three business lines, under which the individual Group companies are allocated. The segments, regions and business lines have a high degree of entrepreneurial and operational autonomy within the framework of the decentralized structure.

The entrepreneurial and operational responsibility in each segment lies with a Head (in future Segment President), who reports to the Chief Executive Officer (CEO) of Bilfinger SE. Responsibility in each region and at Technologies lies with an Executive President who is responsible for operating business and who reports to the CEO on the Executive Board, and a Finance Director, who is responsible for commercial matters and reports to the CFO.

There is also the Other Operations division, to which certain Group companies are allocated that are not part of the Group’s core business and for which a divestment is being considered in the medium term. The Other Operations division reports directly to the Executive Board member and CFO.

This Group organization enables short decision-making paths and lean administration. Governance at Bilfinger is closely aligned with this structure of the Bilfinger Group. The dual control principle generally applies to all actions and measures, especially those with a binding external effect.

Frameworks and regulations

Frameworks and regulations

Our frameworks and regulations for the implementation of governance in the Group go beyond statutory requirements for the management of German listed companies. We provide both guidelines and binding regulations for the actions of each individual, oriented on the needs of our business.

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In this context, Bilfinger governance is essentially defined and implemented through its various components, including the governance documents and the regulations they contain as well as how they relate to each other. Bilfinger employees are provided with all key governance documents in a combined and transparent form through a governance portal. Updates and changes are administered accordingly in the portal. This is designed to effectively help employees apply and implement Bilfinger governance in their daily work.

Mission Statement, Group Principles, Code of Conduct

Our Mission Statement, our corporate values together with our Statement of Principles on Human Rights and Code of Conduct, as well as the basic structure of the Group, form the framework for governance, with priority given to more general guidelines.

Our corporate values are set out in the Mission Statement, the Group Principles and the Statement of Principles on Human Rights. Integrity and security serve as the foundation and are of the utmost priority. The Mission Statement also describes our passion, values and competencies and illustrates the cornerstones of our corporate culture. On this basis, our Group Principles set out behavioral guidelines in abstract and brief form for all employees, in particular for the areas of HSEQ and risk-conscious behavior. Our Statement of Principles on Human Rights covers the human rights and environmental principles for employees and suppliers with the definition based on a risk analysis, the identified human rights and environmental risks and the procedure for how the Group meets the corresponding obligations (in particular from the German Supply Chain Due Diligence Act).

The principles of behavior laid out in the Code of Conduct serve as a further benchmark for our actions. The Bilfinger Code of Conduct applies Group-wide to activities throughout the world and has been translated into a total of 18 languages. It provides concrete guidance for responsible, compliant and ethical conduct in day-to-day business, in dealings with each other and with customers and other business partners and is mandatory for all managers and employees – regardless of where they work and what job they do. In addition to the general principles of behavior in the area of compliance, the Code of Conduct includes, among other things, rules related to integrity as well as the handling of conflicts of interest, and prohibits corruption and discrimination of any kind. The individual topics are specified by associated Group Policies and Group Standard Operating Procedures (Group SOPs). The Code of Conduct as well as the substantiated Group Policies and Group SOPs are regularly reviewed and adjusted for current needs and developments.

The components of Bilfinger governance provide specific guidelines for management and organization within the Group. These requirements can be divided into three pillars – content and process requirements (Group Policies and Group SOPs), requirements for the framework and scope of actions and measures (Rules of Procedure as well as approval and signature requirements) as well as further requirements for responsibility and organization (reporting lines and schedules of responsibility).

Rules of procedure and approval and signature requirements

In addition to the content of the Group Policies and Group SOPs, the actions of individual Bilfinger employees and managers in the Group are governed by rules of procedure and approval requirements. The heads of the regions and business lines as well as the managing directors or other board representatives of a Bilfinger company each have rules of procedure that contain, among other things, internal approval requirements for certain actions and measures. Approval requirements generally exist for each unit and level of the Group and the approval requirements within the regions and business lines are defined by the respective management in its scope of action. Furthermore, binding guidelines and limits exist for each Group unit regarding the signing or other execution or submission of business-relevant documents and declarations by Bilfinger employees. These elements ensure that a clear framework for action is in place for each individual Bilfinger employee and manager. Approval and signature requirements are regularly reviewed to ensure that they are up to date and adjusted as necessary.

Group Policies and SOPs 

In addition to the Group’s specific guidelines on the Code of Conduct, all other subject-related issues and processes classified as requiring regulation throughout the Group are also set out in Group Policies. Independent processes or special topics for a limited group of employees are regulated in Group SOPs, which in turn specify the Group Policies and are binding for all employees. In each case, local requirements must be taken into account. In individual cases, the Group Policies and Group SOPs permit more specific implementation regulations and, in exceptional cases, deviations are also possible with the appropriate approval. Responsibility for the governance of Group Policies and Group SOPs lies with the Group Functions and corporate functions at Group headquarters. Group policies and Group SOPs are regularly reviewed to ensure that they are up to date, and adjusted as necessary.

Schedules of responsibility and reporting lines 

The rules of procedure also contain the relevant reporting lines and procedural regulations, including the possible allocation of responsibilities and requirements relating to joint decisions in the relevant executive bodies of the Group company or the management of regions and business lines. Reporting lines also exist for each Bilfinger employee. The reporting line corresponds in principle to the disciplinary responsibility, but may also be split if there is a different functional allocation.

The provisions in the rules of procedure are supplemented by a mandatory schedule of responsibility, in which the responsibilities for each member of the executive body of a Group company or a region / business line manager are clearly allocated. The purpose of this approach is to ensure that there is clear accountability and organization for each respective manager.

The implementation of governance at Bilfinger as described serves as a basic structure and framework in the design of the corresponding material factors relating to sustainability, which are organized by the relevant Group functions and corporate functions. Where relevant, the concepts are described in more detail in the chapters that follow.

Counteracting corruption and bribery

Counteracting corruption and bribery   

Bilfinger is committed to the fight against corruption and bribery. Corrupt behavior is contrary to our values. We are also convinced that corruption undermines business relationships, distorts competition and exposes companies and individuals to unnecessary risks.

 

Bilfinger's Compliance Management System aims to avoid rule violations through preventive measures, to recognize any misconduct at an early stage and to react quickly and consistently. The Compliance Management Systemmainly consists of the following components:

  • Code of Conduct and Declaration of Principles on Respect for Human Rights for all Bilfinger employees worldwide
  • Guidelines for compliant behavior, for example when dealing with third parties, accepting or giving gifts and in the event of conflicts of interest
  • Training for employees and extensive advice and information on all compliance-related topics and processes, including anti-corruption and anti-trust issues
  • Monitoring and verifying sanctions lists, embargoes and export controls
  • Support with HR compliance, e.g. conflicts of interest, integrity screening of (potential) employees
  • Supplier Code of Conduct and compliance monitoring in purchasing
  • Regular risk analysis in the fields of anti-corruption/anti-bribery, competition law as well as sanctions list review, embargoes and export controls
  • Uniform Group-wide internal control system
  • Operational support of our regions and divisions from on-site compliance employees
  • Confidential whistleblower system for Bilfinger employees and external whistleblowers
  • Compliance Review Board consisting of Executive Board and department heads. This Board monitors and manages the organization and implementation of the Compliance Management System

Our Compliance Management System does not remain static. We continuously review and optimize its effectiveness and efficiency to meet changing regulatory requirements, market and business changes as well as the demands of our customers.

Our compliance training modules include on-site training and e-learning programs in which knowledge is conveyed and case studies are discussed. The total number of people in the target group of the individual trainings sometimes varies greatly from year to year as a result of a multi-year training concept.

Our concept - learn more

Responsibility for the anti-corruption and anti-bribery framework lies with Corporate Compliance at Group headquarters.

Bilfinger’s compliance management system covers all areas of the business and pursues the objective of preventing compliance violations through preventive measures, recognizing early any type of misconduct and, in the case of confirmed violations, reacting quickly and consistently punishing misconduct.

The Bilfinger compliance management system is also laid out in the Code of Conduct, which is binding for all those employed at Bilfinger worldwide. Bribery and corruption are prohibited for all employees. They may not hold out the prospect of or grant to our customers, suppliers or other business partners money or anything of value, either directly or indirectly, to influence their decisions or to gain any improper advantage. This principle also applies in reverse: No one acting for or on behalf of Bilfinger can allow him- or herself to be corrupted or bribed through the acceptance of unfair economic advantages from business partners. Small payments to secure or accelerate routine official acts (“acceleration payments”) are also prohibited for employees of the Bilfinger Group.

In our Code of Conduct, we also lay out principles in connection with donations, sponsoring activities, gifts, hospitality and entertainment events as well as dealings with public officials.

The Chief Compliance Officer of the Bilfinger Group reports directly to the Chairman of the Executive Board and has an additional reporting line to the Supervisory Board and its Audit Committee.

Managers have a special role to play in the implementation of the Code of Conduct and the compliance management system. They must live up to their functions as role models. The annual performance evaluation of managers therefore includes an individual integrity assessment that then forms part of the annual dialog on career development. In addition, the variable remuneration for managers includes an individual integrity and safety element. This factor is determined annually and takes into account the fulfilment of requirements and the operationalization of a culture of integrity and safety by the manager or by the organization for which the manager is responsible.

To manage and monitor the design and implementation of our compliance management system, the Executive Board has established a Compliance Review Board (CRB), whose tasks and composition are described in Chapter Good corporate governance.

Our subsidiaries are supported by compliance managers and compliance officers at regional level. In addition, each regional management, each executive management and each departmental management assume responsibility for the effectiveness of the compliance management system, including the internal control system (ICS).

The international network of Compliance Representatives ensures that employees in the Group’s business units have an additional local compliance contact person. The Compliance Representatives are specially trained experts who, in addition to their primary functions in the company, support their colleagues with compliance and integrity questions and thus strengthen the presence and visibility of the topic of compliance at their locations. The Compliance Representatives maintain a regular exchange of information with compliance managers and compliance officers and contribute experience and challenges of the individual locations to the further development of the respective compliance program.

To prevent future misconduct, we rely on measures such as practical advice from compliance managers and officers as well as the Compliance Help Desk, guidelines, supporting IT tools, training and communication measures.

Our compliance training modules include on-site training and e-learning programs in which knowledge is conveyed and case studies are discussed.

 

Performance indicators - learn more 

All Bilfinger employees also have access to a central Compliance Help Desk that offers support in all compliance-related questions. The Compliance Help Desk is an established point of contact within the Group for initial information on how to proceed in the event of any compliance-related issues. In the year under review, 266 (previous year: 441) Compliance Help Desk requests were documented.

In order to deliver our services to the market, we depend on cooperation with numerous business partners. Because the compliant behavior of our business partners is an indispensable prerequisite for us, we use a risk-based, IT-supported process to review our potential business partners before entering into a business relationship (so-called third-party due diligence). When carrying out such integrity audits, Bilfinger business units are supported by the Compliance department in the risk evaluation.

In addition to prevention, the rapid identification of any misconduct and an appropriate response to such misconduct are essential components of our compliance management system. There has been a whistleblower system in place to manage the receipt, documentation and processing of suspicious cases in connection with possible violations of our Code of Conduct. It is available to our employees as well as to outside individuals and entities. The contact details are available on the Bilfinger Group’s website as well as on the Group intranet. Indications of any misconduct can be given on a confidential basis with this system – anonymously if desired.

A department at Group headquarters specializing in internal investigations deals with all notifications related to suspicious cases from internal and external sources and, in cooperation with the compliance organization, conducts a preliminary review of the notifications received. If the suspicions of a violation are confirmed, an internal investigation is initiated. Particularly serious allegations are forwarded to the Independent Allegation Management Committee for assessment and for a decision on further action. The composition and duties of this body, which is appointed by the Executive Board, are described in the Good corporate governance.

In the event that an employee is found to have been involved in serious misconduct, the Disciplinary Committee headed by Group Human Resources at Group headquarters takes any decisions on disciplinary measures and sanctions that are to be initiated. These range from informal warnings through to immediate termination including negative financial consequences. If misconduct on the part of a business partner is identified, the Independent Allegation Management Committee decides on necessary measures. These measures can include, among other things, termination of the business relationship, assertion of civil claims or the filing of an official complaint.

Compliance is a key component of our company's business. We therefore use a variety of formats to train and raise awareness among employees. The Virtual Compliance Week is an excellent forum to reach many of our employees within a short period of time and in an efficient manner. "

Jürgen LiedlPresident Engineering & Maintenance Europe at Bilfinger

Number of notices of compliance violations

REPORTING VIOLATIONS OR CONCERNS

 

Are you aware of any violations or concerns about known or suspected violations of the Bilfinger Code of Conduct? Bilfinger applies a zero-tolerance policy to any violations of the Code of Conduct and as such, encourages employyes and other stakeholder to raise any concerns you may have.

In such a situation please contact your supervisor or colleagues from other departments such as the Human Resources, Corporate Comliance or any other person of trust within Bilfinger.

CONFIDENTIAL REPORTING LINE

 

If you are uncomfortable with any of these channels, or if you are not a Bilfinger employee, you may use our Confidential Reporting Line, consisting of an elextronic postbox and teleohone-hotline, 24 hours a day, 365 days a year, operating in multiple languages.

Confidential Reporting Line

The Confidential Reporting Line is managed by an idependent services provider.
 

00800 – B-I-L-F-I-N-G-E-R 
(00800 - 245 34 64 37)


If you cannot reach the hotline, please check here, wether a different number applies in your country. If this is not the case, please click on the link above to access our electronic postbox.

Human rights, labor rights and sustainable supply chain

Human rights, labor rights and sustainable supply chain

* The number of indications of human rights compliance violations is a partial quantity to the number of indications of compliance violations presented in Chapter Counteracting corruption and bribery.

In 2022, the Executive Board of Bilfinger SE adopted a Statement of Principles on Human Rights, which is binding throughout the Group. The statement governs the human rights-related principles applicable to all employees and suppliers at Bilfinger. It defines the human rights and environmental expectations of the Group’s employees and suppliers, describes the human rights and environmental risks that are a priority for the company and the procedures Bilfinger uses to fulfill its obligations under the German Act on Corporate Due Diligence to Prevent Human Rights Violations in Supply Chains (Supply Chain Due Diligence Act – LkSG). The Statement of Principles forms the basis of governance for risk management to ensure compliance with human rights and environmental due diligence obligations in accordance with Section 4 LkSG which is fully integrated into Bilfinger's compliance management system (CMS) and all relevant business processes through appropriate measures.

The issue of compliance in our supply chains is of fundamental importance to us at Bilfinger. In order to ensure the high quality of our services over the long term, our purchasing department is guided by a defined set of criteria when selecting new suppliers. Human rights, environmental and occupational safety standards play an important role in this context. Bilfinger has an important competitive advantage with these quality features. "

Christoph BäumerChief Procurement Officer at Bilfinger
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Bilfinger’s risk management for compliance with human rights and environmental due diligence obligations in its supply chains aims to prevent or minimize human rights or environmental risks or to end the violation of human rights or environmental obligations.

Bilfinger has integrated the measures with which the company upholds its human rights-related due diligence obligations into its compliance management system, which has been an established part of the company for many years. The system follows a risk-based approach and is based on the prevent-detect-respond model, which is recognized and proven in legal and Group practice, in its design and operationalization. The model is explained in detail in the Bilfinger Group’s Statement of Principles on Human Rights. It covers all areas of business activity and is designed in such a way that compliance violations are prevented through precautionary measures, misconduct of all kinds is recognized at an early stage and, in the case of confirmed violations, remedial measures are taken quickly and applied consistently.

The integration of risk management into the existing CMS is intended to ensure that Bilfinger has a complete overview of its own risk disposition. Corresponding measures are communicated to the Bilfinger Executive Board by means of regular Executive Board meetings, Group Executive Management meetings and Compliance Review Board Meetings. Through Executive Board resolutions, risk management is anchored through appropriate measures in all relevant business processes (e.g. in purchasing, human resources and the operating business units). Employees are empowered to recognize human rights and environmental risks through training, e-learning, workshops and global communications.

Respect for human rights is closely linked to the principles for acting with integrity that have been established at Bilfinger for many years and are set out in the Group’s Code of Conduct. The Code of Conduct defines principles of acting with integrity both toward other employees and toward external persons and organizations. It is aimed at all employees throughout the Group – regardless of where they work and what job they do. Our employees are obligated to adhere to the principles formulated in the Code of Conduct and to confirm receipt and acknowledgement of it in writing. The Code of Conduct is explained in detail in Chapter Counteracting bribery and corruption.

The Code of Conduct, together with the Statement of Principles on Human Rights, establishes a framework for exercising responsibility for society and the environment. Violations of the Code of Conduct or the Statement of Principles on Human Rights are not tolerated; the handling of indications or suspected cases and the sanctioning of potential violations are governed by the compliance management system that has been in place throughout the Group for many years.

Basic principles of human rights

In its Statement of Principles on Human Rights, Bilfinger commits itself to the Universal Declaration of Human Rights of the United Nations. Furthermore, the principles of the UN Global Compact initiative apply, which Bilfinger has committed to uphold as a member. Because human rights can also be impacted by environmental damage, Bilfinger clearly acknowledges its responsibility to protect the environment.

Bilfinger expects its employees and its suppliers in the supply chain to fully commit to the following core principles:

  • All people have the right to be treated with dignity, fairness and respect.
  • We respect the fundamental freedoms and human rights of our employees, business partners and the communities in which we live and work.
  • We do not tolerate any form of discrimination, harassment or physical violence, nor do we tolerate any form of child, forced or compulsory labor.
  • We provide an environment that promotes diversity and inclusion, and monitor and enforce compliance with human rights throughout the value chain.
  • We protect the environment by ensuring sustainable business practices.
  • We do not make any compromises when it comes to integrity, human rights or health and safety.
Expectations for all employees and suppliers in the supply chain

Bilfinger expects all employees and suppliers in the supply chain to assume responsibility for the values and measures listed below and to consistently align their actions with these measures:

Forced labor

  • No use of or contribution to slavery, servitude, forced or compulsory labor or human trafficking.

Child labor

  • No employment for workers under the age of 15.
  • For heavy labor in accordance with the ILO Agreement 182, no workers under the age of 18 may be employed.

Respect and non-discrimination

  • Promote equal opportunity and treatment of employees regardless of origin, religion, marital status, abilities and personality and education, skin color, nationality, ethnicity, political affiliation, social background, disability, sexual identity and orientation, marital status or age.
  • No tolerance for psychological abuse, sexual harassment or discrimination through gestures, language and physical contact that is sexual, coercive, threatening, abusive or exploitative.

Health and safety

  • Maintain safe working conditions.
  • Provide training on health and safety issues.
  • Conduct and document audits as part of occupational health and safety management systems.

Employee rights

  • For us, respect for employee rights is an important component of human rights. This position is based in particular on our commitment to Principles 3 to 6 of the UN Global Compact Initiative, which apply throughout the Group. They relate to employees’ rights to freedom of association and collective bargaining, the elimination of all forms of forced labor and child labor, and the elimination of discrimination with respect to employment and occupation.
  • Compliance with global working time regulations.
  • Compliance with all wage and compensation laws worldwide, meaning fair compensation for workers.
  • Act in accordance with applicable legal requirements when assigning personnel across borders, particularly with regard to minimum wages.

Freedom of association

  • The rights of employees to freedom of association and collective bargaining are expressed – depending on local laws – in the company’s employee representative bodies or the trade union.  These bodies endeavor to uphold employee rights, including through the conclusion of works agreements or collective bargaining agreements. Bilfinger’s management maintains a regular and constructive dialog with employee representatives.
  • Recognition of the right of workers to form or join trade unions and to bargain collectively.
  • No discrimination against or preferential treatment of members of employee representatives or trade unions.

Environmental protection

  • Put particular importance on climate protection and contribute to the reduction of greenhouse gases.
  • Strengthen environmentally sustainable economic activities.
  • Raise awareness of climate change and the need to accelerate the launch of global energy transition initiatives.

Grievance

  • Establish a protected procedure for reporting possible violations of human rights principles.
  • Identify and manage risks.
  • Provide a structured response to incidents with processes put in place to create remedies for violations.
Upholding human rights and environmental due diligence obligations

The institutional basis for upholding human rights and environmental due diligence obligations is the Group’s governance system, which is explained in detail in Chapter Good corporate governance.

To monitor compliance with the due diligence obligations of the company, its employees and its suppliers, as well as for the ongoing development of human rights risk management, Bilfinger also appointed the Group’s Chief Human Resources Officer as Human Rights Officer at the end of 2022. Together with a compliance officer as deputy, he is responsible for human rights risk management.Both report regularly to the Executive Board and to the Group Executive Management.

To effectively meet our due diligence obligations in the Group’s supply chain, we have set the goal of conducting supplier audits in accordance with defined standards beginning in financial year 2023.

Risk analysis

As part of Bilfinger’s risk management for compliance with due diligence obligations, Bilfinger carried out appropriate risk analyses in the reporting year in order to determine the human rights and environmental risks in its own business and in the business of its direct suppliers. While the risk analysis in Bilfinger’s own business is carried out both annually and on an ad-hoc basis due to a change in business activities, the risk analysis for Bilfinger’s direct suppliers is an ongoing process throughout the reporting year.

With regard to the regular risk analysis in our own business, the methodical approach calls for a multi-stage process, beginning with an abstract consideration of risks, in particular industry-specific and country-specific risks, in order to identify Bilfinger companies and locations with an increased risk disposition as well as those potentially affected by the risks, including particularly vulnerable groups of people. In the next step, the specific risk analysis, the results of the abstract risk analysis are subjected to a plausibility review. This involves an individual determination, weighting and prioritization of specific human rights and environmental risks in a specific context at Bilfinger companies and locations with an increased risk disposition. The following criteria are used for this purpose:

  • Nature and scope of business activities
  • Probability of occurrence
  • Severity of the injury by scope, number of people affected and irreversibility
  • Possibilities of influence
  • Bilfinger’s contribution to the cause of individual risks or risk areas

Both the abstract and the specific risk analysis are carried out transparently, comprehensibly and in accordance with the consistently applied system described in the company’s own software tool. The probability of occurrence and severity of the breach are assessed individually using a scale or a “heat map”. The risk analysis follows a bottom-up approach in which questionnaires are answered at regional level or for each Business Line. The Supply Chain Due Diligence Act (LkSG) risk analysis in our own business area contains a list of 19 questions for each region or Business Line which address the human rights and environmental risks in accordance with Section 2 (2) and (3) LkSG.

The risks identified in the specific risk assessment are systematically documented in the evaluation section of the tool in a risk inventory, with the risk description, the responsible parties and the relevant weighting. The evaluation process step also serves to prepare segment meetings in which, as a next step, the results of the risk analysis are assessed at segment level in order to define suitable preventive and corrective measures wherever necessary.

The following priority human rights and environmental risks and aggregated risk areas were identified in the course of the risk analysis in Bilfinger’s own business activities:

  • Section 2 (2) No. 5 b): Risk of non-compliance with the occupational health and safety obligations applicable under the law of the place of employment, if this results in the risk of accidents at work or work-related health hazards – in particular due to a lack of measures put in place to prevent excessive physical and mental fatigue, in particular due to unsuitable work organization with regard to working hours and rest breaks due to working hours in excess of the contractually agreed amount.
  • The weighting and prioritization of the identified risks in accordance with the appropriateness criteria in Section 3 (2) LkSG have shown that the typically expected severity of the violation Section 2 (2) No. 5b) is to be assessed as material. The risk is not, however, of a permanent or structural nature; rather, an increased workload due to working more hours than contractually agreed usually only occurs in exceptional cases in the project business – this is sometimes the case when deadlines have to be met. The type of causal contribution to the risk and the ability to influence those responsible for the risk can be strictly controlled and influenced by the relevant project managers and the local human resources departments.
  • As part of an incident-related risk analysis prior to the acquisition of Stork, Fluor’s industrial services business in the Netherlands and Belgium, no prioritized human rights or environmental risks or aggregated risk areas were identified.
  • Bilfinger regularly conducts risk analyses of direct suppliers in accordance with Section 5 (1) LkSG in cooperation with an external service provider. The risk analysis involves Bilfinger’s Purchasing department sharing supplier master data with the service provider, which is then supplemented with country codes and NACE codes (Statistical Classification of Economic Activities in the European Community) in preparation for an abstract risk analysis.

The overall results of the risk analyses in the company’s own business area and at direct suppliers are presented to the Bilfinger Executive Board.

Grievance

The global Bilfinger complaints procedure or whistleblower system (Confidential Reporting Line - CRL) was designed in accordance with Section 8 (1) LkSG in such a way that employees and third parties can report human rights and environmental risks as well as violations of due diligence obligations under the LkSG that have arisen as a result of Bilfinger’s business activities in its own business area or those of a direct supplier – anonymously if desired. The complaints procedure is accessible to potentially disadvantaged persons; the confidentiality of identity is maintained and it ensures effective protection against discrimination or punishment on the basis of a complaint.

Relevant information is documented and confirmed to the person providing the information.  As far as possible, the persons entrusted by Bilfinger with conducting the proceedings will discuss the facts of the case with the whistleblowers. The persons entrusted with conducting the proceedings act impartially. They act independently, are not bound by instructions and are obligated to maintain confidentiality. Information on how to access the complaints procedure is publicly available.

The effectiveness of the process is reviewed at least annually and on an ad-hoc basis if Bilfinger anticipates a significant change or significant increase in the risk situation in its own business or in the business of its direct suppliers.

Documentation and reporting

In addition to the reports required by law, Bilfinger regularly prepares internal reports as well as incident-related internal information and progress reports, in particular on cases that have been classified as serious. These reports are sent to the Executive Board and the Supervisory Board.

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