Processes for Engaging With Our Own Workforce and Workers’ Representatives About Impacts

Engaging with employees

To identify further potential for improvement, WACKER conducts a global employee survey on a regular basis, usually every three to five years. We also conduct ad-hoc situational, project-related surveys on specific topics. These surveys help us to gain valuable insight into the needs and expectations of our own workforce and the impacts of our implemented actions. When doing so, we ensure that all (affected) employees worldwide can participate in the surveys. The results are presented by managers in the respective departments and possible solutions are developed hand-in-hand with employees. The employee representatives are closely involved in the process. In our most recent global employee survey in 2023, we scored above average in terms of engagement and leadership culture. Potential for improvement was identified in the areas of safety, communication, cooperation, recognition and professional development.

We also carry out surveys as needed on issues such as sustainability and occupational safety. Internal department meetings provide a further opportunity for employees to express their views.

In line with our strategic priority “People & Culture”, we attach a great deal of importance to face-to-face dialogue that transcends hierarchical boundaries. The aim is to identify potential for improvement that can be applied to more than one department. New formats introduced in 2025 include the Safety Breakfast, dialogue sessions involving safety officers, and the DialogRAUM concept, which is designed for discussing WACKER’s corporate culture in practice. Discussions focused in particular on corporate values, occupational safety and intercultural aspects such as corporate ethics and integrity in internal and external collaboration.

We use external benchmarks as an indicator of our commitment. In its annual satisfaction survey of chemical-industry executives, the VAA (German Chemical Industry Association of Academic and Management Employees) ranked WACKER 4th (2024: 4th place) out of 21 companies with an overall score of 2.7, unchanged from the previous year. The average score was 3.0 (previous year: 3.2).

In addition, compliance with these standards is reviewed regularly in social audits (SMETA, TfS), which also include employee interviews. The auditors investigate issues such as working conditions, occupational health and safety, environmental management and corporate ethics. We make the results of SMETA audits available to registered customers in the Sedex database, and the results of TfS audits via the TfS platform OASIS. We reviewed our Kolkata, Léon, Nanjing, Jandira, Burghausen and Nünchritz sites in 2025 and identified discrepancies in occupational safety and human resources. Corrective and preventive action has been taken at the sites where deviations were identified. We will conduct further social audits in 2026. In the context of these audits, we firmly condemn any use of child labor or forced labor in particular. WACKER undertakes to organise social audits (SMETA, TfS), carried out by external certification companies, every three years at the sites specified by customers. Nine out of 27 production sites are currently being audited in this three-year cycle, representing around 70 percent of WACKER employees.

Expressing concerns

Human rights concerns can be directed and reported to the company via various channels. The table below shows the reported and actual incidents and complaints in relation to human rights.

16 (previous year: seven) reports relating to discrimination or harassment were received in the reporting year.

Compared to the previous year, the definition of the metrics for reported complaints relating to social factors or aspects has been clarified and, as required by the standard, now only includes reports on social aspects and not – as in the previous year – reports on other compliance-related aspects. The value for 2024 has been adjusted accordingly. This means that for both 2024 and 2025, no (zero) complaints regarding social factors or aspects were submitted via our formal reporting channels.

The reports were submitted both via WACKER’s confidential, accessible whistleblower system and via the Group Compliance group mailbox. Every report received is reviewed by Group Compliance or forwarded to the responsible department at WACKER. If responsibility lies with Compliance and the initial assessment is plausible, further internal clarification and investigation measures are carried out by Group Compliance or the corporate units concerned. Based on the findings of the investigations appropriate remedial action is initiated if necessary. The fundamental principles of confidentiality, anonymity and the ban on any form of retaliation apply. Reports relating to human rights issues can also be communicated directly to WACKER’s human rights officer. The latter then coordinates any necessary action with the involvement of the Human Rights Committee if necessary.

In none of the reported cases did the investigations result in fines, sanctions and/or penalties.

Furthermore, no serious human rights violations were identified in 2025. No fines, sanctions and/or compensation payments were imposed in this area either.

Please refer to the ESRS G1 – Business Conduct section for further information.