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Corporate Social Responsibility

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Sustainability and innovations are key business drivers for the Pfeiffer Vacuum Group. At Pfeiffer Vacuum, we aim at taking a leading role to enable a sustainable future. We do this by creating and delivering innovative and energy-efficient vacuum technology solutions to our clients in multiple industries. The Group's sustainability strategy is primarily based on three pillars: Employees, responsible operations and innovation, and is intended to provide solutions to optimize the impact on ecological, economic and social aspects.


Message from the
Management Board

Wolfgang Ehrk, CEO & COO and Thilo Rau, CIO

Together, we can make a difference

Dear Ladies and Gentlemen,

As a manufacturing company, we know that by consciously using natural resources and climate-friendly means of transport as well as saving energy we can reduce our environmental impact. By assuring compliance with human rights, laws and regulations and creating a safe working environment for our employees, we can make a contribution. This is why we have conducted an analysis of all CSR relevant data and derived corresponding sustainability targets as well as the necessary measures to reach them. Thereby, we follow an holistic approach and cover all different areas comprised by CSR such as Corporate Governance and Compliance, occupational health and safety, diversity, environmental awareness and the promotion of sustainable innovations in our product portfolio.

As a commercial enterprise, it is the duty of Pfeiffer Vacuum to act responsibly.Therefore, fair business practices, the promotion of diversity within our workforce, compliance with human rights and labor standards as well as social responsibility are guidelines of our corporate management. We have also reflected all of these in our Code of Conduct.

As an employer, occupational health and safety is of greatest importance to us – especially during the Corona pandemic. About 3900 employees work at Pfeiffer Vacuum worldwide. For all of them, we have a responsibility to protect their health in the best possible way during their time at work. That is why we have implemented strict occupational health and safety measures at our sites that all employees must adhere to.

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To further strengthen our efforts to protect the environment, we are implementing measures at group level to bring our energy and water consumption at our sites to a minimum and thus reduce not only operating cost, but also harmful CO2 emissions. In 2022 we joined the Science Based Targets Initiative (SBTi). With this step, we publicly committed ourselves to support the goals of the Paris Climate Agreement through concrete actions. We will work closely with SBTi to implement its science-based emission reduction before 2050. We aim to reduce our Scope 1 and Scope 2 CO2 emissions by 2030 to such an extent that our production will have net zero emissions from then on. In addition, we will continue to analyze the causes of the Scope 3 CO2 emissions for which we are jointly responsible so that we can move ever closer to net zero CO2 emissions, with our entire value chain if possible, following a similar path to that of the SBTi transformation.

All of our employees can contribute to ensuring that resource conservation, efficiency and sustainable management are implemented everywhere at Pfeiffer Vacuum. Their everyday attitude and behavior make a difference and we will include them in our efforts.

As a technology company, we also have direct influence on promoting sustainability in society: The products are used in the development and promotion of renewable energies, they are necessary for the production of electric cars, for the analysis of drinking water quality and in research on alternative propulsion concepts for aircraft – just to name a few examples. Sustainability is a major factor that must be considered when developing new products and innovations in our R&D departments.

As you can see, the topic of sustainability and corporate social responsibility (CSR) are core to all areas of our company. Our global CSR organization is working in a worldwide network to make sure that we comply with all legal regulations and, furthermore, continue to work on all of our CSR targets.

Further making Pfeiffer Vacuum more sustainable

Sustainability is a crucial success factor for the future of our company – and for us all as human beings. Only if we act responsibly and sustainably, we can be a reliable partner for our customers and serve them in the long-term. Therefore, we are determined to making our company more sustainable and implementing the ten principles of the UN Global Compact.

Because we want Pfeiffer Vacuum to be the most sustainable and fastest growing market player in our industry to drive technology for a sustainable future and contribute to a better world for coming generations.

Best regards,

Wolfgang Ehrk & Thilo Rau

Management Board Pfeiffer Vacuum Technology AG

Endorser-Logo

Pfeiffer Vacuum is a signatory of the world's largest sustainability initiative, the United Nations Global Compact. With this accession, we commit to sustainable corporate governance in accordance with the ten principles of the Global Compact on human rights, labor standards, environmental protection and the fight against corruption. We are also clearly committed to assuming social and ecological responsibility and aligning our economic activities accordingly.

The aim of the United Nations is to secure peace, social standards, food as well as water supply, to promote clean energy, fair educational opportunities, and to stabilize the global climate.

To create globally sustainable structures, United Nations member states have set 17 goals by 2030, which are outlined in the 2030 Agenda for Sustainable Development: The UN Sustainable Development Goals, or SDGs.

These principles and SDGs are consistent with the core values of our company. Because it is clear to us that sustainability concerns us all and is a decisive factor for our economic success!

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1 No Poverty
2 Zero Hunger
3 Good Health and Well-being
4 Quality Education
5 Gender Equality
6 Clean Water and Sanitation
7 Affordable and Clean Energy
8 Decent Work and Economic Growth
9 Industry, Innovation and Infrastructure
10 Reduced Inequalities
11 Sustainable Cities and Communities
12 Responsible Consumption and Production
13 Climate Action
14 Life Below Water
15 Life on Land
16 Peace, Justice and Strong Institutions
17 Partnerships for the Goals
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Occupational Health and Safety
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Frequency of Accidents and Fatalities

Investing in people

Pfeiffer Vacuum’s employees are its most valuable resource. Their competence, motivation and enthusiasm make it possible for us to remain successful in the market and to grow steadily. Our corporate culture focuses on the individual, and enables people to develop their potential in an appreciative working environment that ensures equal opportunities. Through systematic human resource management, we retain our existing employees and also try to attract the best employees and the most talented people on the market.

At the end of 2022, Pfeiffer Vacuum had more than 3900 employees worldwide at its various production sites, sales subsidiaries and service offices. Our workforce, which is primarily engaged in engineering and engineering-related activities, comprises approximately 700 women and 3200 men.

Further information on Pfeiffer Vacuum's responsibilities as an employer can be found in our Annual Report in the "Sustainability Report".

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Qualifications, Education and Training

Pfeiffer Vacuum places importance on good training for its workforce and on the willingness of its employees to develop further through continuous training as well as to adapt to new market conditions.

We help our employees to develop their specialist knowledge, skills and qualifications on a needs-oriented and individual basis. A wide range of training courses and further training measures ensure the good performance of both new and experienced employees with regard to their current and future activities. In this way, we also address developments such as the demographic change, the declining number of people in employment and the changing world of work.

Further information on training and further education at Pfeiffer Vacuum can be found in our Annual Report in the “Sustainability Report”.

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Diversity

Pfeiffer Vacuum operates worldwide and thus brings together a large number of people of different origins under one umbrella brand. We promote diversity and equal treatment regardless of the ethnic or social origin, gender, skin color, religion, sexual orientation, disability or age of our employees.

The successful cooperation of different cultures and nationalities is important to us. For many years now, we have been part of the “Charta der Vielfalt” (German Diversity Charter), which is an initiative of the German federal government. This represents a fundamental commitment to fairness and respect towards people in companies and institutions.

Further information on diversity at Pfeiffer Vacuum can be found in our Code of Conduct.

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Occupational Health and Safety

For Pfeiffer Vacuum, safety at work and the physical health and safety of its employees are a top priority. As a responsible employer, we want to reduce the number of accidents and the frequency of sick days as far as possible. We comply with all legal requirements at local, national and international level. In addition to this, the topic of occupational health and safety is addressed in our group-wide preventive policy on occupational health and safety. This makes it possible to identify sources of danger, analyze suggestions for improvement and agree on concrete measures.

Further information on occupational health and safety at Pfeiffer Vacuum can be found in our Annual Report in the “Sustainability Report”.

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Employee Satisfaction and Work-life Balance

At Pfeiffer Vacuum, the employees are the key factors in value creation. This is why we attach great importance to fair working conditions, a good working atmosphere, respectful interactions with one another and a culture of open communication. We offer our employees flexible working hours and mobile working to ensure a good work-life balance. Childcare provision also helps to reconcile family and career. The topics of employee development, leadership and work-life balance will be of major strategic importance in the coming years.

Further information on the working conditions at Pfeiffer Vacuum can be found here.

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Energy Consumption and CO2 Emissions
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CO<sub>2</sub> Emissions

Operating Responsibility

Pfeiffer Vacuum promotes the efficient and responsible use of natural resources and is committed to complying with social standards in all of its value-added processes. Ensuring that our actions are environmentally friendly and socially responsible is both an ethical and a corporate duty for us: whether in the supply chain, in our own production, sales and administration processes, or later during the service life of our products at the customer’s site.

We are constantly working to save energy and reduce CO2 emissions and thus make a positive contribution to global climate goals. We also want to continuously improve operational environmental protection at our sites worldwide, to use resources and materials efficiently, and to unconditionally require good occupational health and safety. In accordance with sustainable recycling principles, we make sure that we produce as little waste as possible and that we take the durability and recyclability of our products into account right from the start, during initial development.

Further information on responsible action at Pfeiffer Vacuum can be found in our Annual Report in the "Sustainability Report".

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Certification

Pfeiffer Vacuum has implemented management systems for quality, environmental protection, energy, and occupational health and safety at its production sites. Some sites, for example, are already certified in accordance with ISO 14001, the internationally recognized standard for environmental management systems, in order to systematically reduce negative environmental impacts and continuously improve environmental performance. We plan to certify further production sites according to relevant management standards in the future.

Further information about ISO certification at Pfeiffer Vacuum can be found here.

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Energy Consumption and CO2 Emissions

Pfeiffer Vacuum is committed to reducing its energy consumption and the associated CO2 emissions. In order to make our production processes as energy efficient and resource friendly as possible, we are continuously introducing energy efficiency measures.

To give visibility to our contributions in the important field of action against global warming, we joined the Science Based Targets Initiative (SBTi) in 2022. With this step, we publicly committed ourselves to support the goals of the Paris Climate Agreement through concrete actions. We will work closely with SBTi to implement its science-based emission reduction before 2050. We aim to reduce our Scope 1 and Scope 2 CO2 emissions by 2030 to such an extent that our production will have net zero emissions from then on. In addition, we will continue to analyze the causes of the Scope 3 CO2 emissions for which we are jointly responsible so that we can move ever closer to net zero CO2 emissions, with our entire value chain if possible, following a similar path to that of the SBTi transformation.

We are increasingly committed to the Group-wide use of renewable energy and are promoting photovoltaic systems, combined heat and power plants, and heat recovery systems. Some of our facilities already have energy management systems that are certified to ISO 50001.

Energy officers at the sites coordinate all the measures and obligations to comply with the local legal requirements. Regular energy audits make it possible to comprehensively analyze and review the measures. We also use a complex process to record CO2 consumption balances, which include direct emissions from the operation of the plant and buildings as well as indirect emissions from purchased energy.

Further information on energy consumption and CO2 emissions at Pfeiffer Vacuum can be found in our Annual Report in the “Sustainability Report”.

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Material Efficiency and Waste

Pfeiffer Vacuum aims to improve material efficiency and the environmentally-friendly use of all production materials. In the production phase, it is predominantly the choice of materials during product development and the use of materials in the production process that have the greatest effect on the environment. Important elements in the development process include testing the environmental compatibility of the materials we use, reducing the quantities of raw materials used, and employing methods that reduce waste and avoid hazardous substances. One example is our development of products that allow materials and resources to be conserved thanks to a design that reduces the dimensions of the product and uses modern drives.

Further information on material efficiency at Pfeiffer Vacuum can be found in our Annual Report in the “Sustainability Report”.

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Suppliers and Raw Materials

Pfeiffer Vacuum is committed to respecting universal human rights along its entire supply and value-added chain. As a company that is growing worldwide, we consider respect for human rights to be one of the fundamental preconditions for our business activities. This is in line with our corporate goal of contributing to a sustainable society. For this reason, we reject all forms of child labor, forced and compulsory labor, modern slavery and human trafficking. Within the framework of a voluntary commitment, we strictly ensure when purchasing electronic components and other products that they are “conflict-free”, i.e. do not contain any conflict minerals.

We procure our preliminary products from a large number of suppliers and we evaluate these suppliers by carrying out risk analyses that also include sustainability aspects. Along our entire supply chain, we endeavor to work with companies who comply with environmental legislation and social standards. Sustainable and safe supply chains can be guaranteed only if compliance with the mandatory requirements is checked on a regular basis. Our production sites address this task by carrying out quality audits regarding environmental and social standards at the individual suppliers’ premises.

Further information on sustainable supply chain management at Pfeiffer Vacuum can be found in our Annual Report in the “Sustainability Report”.

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Supply Chain Due Diligence

We consider the protection of human rights to be one of the central elements of our corporate responsibility. As part of the Busch Group, Pfeiffer-Vacuum implements the German Supply Chain Act through a series of measures aimed at transparency, human rights and sustainable business practices.

One of the most important measures is the introduction of a comprehensive Supplier Code of Conduct, which must be followed by all suppliers of the Busch Group. This Code sets out clear expectations regarding ethical business practices, environmental protection and social responsibility (Supplier Code of Conduct).

In addition, the Busch Group has introduced a human rights policy that ensures compliance with international human rights standards. This policy conveys companies’ commitment to respecting and promoting human rights in all business areas and along the entire supply chain (Human Rights Policy Statement).

To ensure that violations can be reported and addressed, there is a formal complaints procedure. This procedure provides employees, suppliers and other stakeholders with a secure and confidential way to raise concerns (Complaints Mechanism, Complaints Procedure).

Through these measures, Busch Vacuum Solutions and Pfeiffer Vacuum not only contribute to compliance with the Supply Chain Act, but also promote sustainable and socially responsible business operations that aim for long-term success and positive impacts on society.

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Promoting Sustainable Innovation

Sustainability, innovation and technological leadership are important factors at Pfeiffer Vacuum for ensuring the company’s success. We take a leading role in order to pave the way to a sustainable future. We do this by developing and delivering innovative and energy-efficient vacuum technology for our customers in numerous industries.

In addition to pursuing our own research and development (R&D), we work closely with customers and suppliers on projects to jointly move new technologies and innovative sustainability solutions forward to market maturity at an early stage. We also have a well-established network that includes various national and international universities and research institutes.

Further information on research and development at Pfeiffer Vacuum can be found in our Annual Report in the "Sustainability Report".

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Environmental Friendliness and Energy Efficiency of Products

Pfeiffer Vacuum aims to improve the environmental friendliness and efficiency of its products in terms of use of materials and the consumption of energy. In the production phase, it is predominantly the choice of materials during product development and the use of materials in the production process that have the greatest effect on the environment. Once the product is in service, on the other hand, its power consumption efficiency, noise emissions and material properties in its specific type of application are the decisive factors.

Depending on the application and manufacturing process, our products are subject to different requirements with regard to resource conservation and environmental protection, such as the requirement to increase energy efficiency, for example.

Further information on the environmental friendliness and energy efficiency of Pfeiffer Vacuum products can be found in our Annual Report in the “Sustainability Report”.

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Product Benefits for Sustainable Development

Pfeiffer Vacuum’s products and solutions are used in important future markets. There are already many innovative processes, such as in nanotechnology, in the production of LEDs, or in research, that would be unthinkable without the use of our vacuum technology. The technological progress resulting from our research and development activities in these fields of technology leads to new, energy-efficient products and sustainable manufacturing processes.

Further information on Pfeiffer Vacuum’s sustainable product range can be found here.

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