5. Responsibility

Accountability within the company’s management with regard to sustainability is disclosed.

Our pursuit of sustainability is expedited by our owner with his unwavering orientation to the business strategy. The Sustainability Team, which is made up of 18 representatives from different expert areas, identifies reasonable sustainability goals and monitors the implementation of sustainability measures in our organization. The team meetings also function as information exchanges for new  projects that touch on sustainability topics. The goals defined within the sustainability team meetings are subject to agreement between the responsible party and the supervisor or management team member. The finalized goals are included in the annual Environmental Program and integrated in the annual Environmental Statement (requirements from EMAS) for the Mainz and Hallein sites. The Environmental Statements are validated by an external auditor and then released to the public on the Werner & Mertz Website.  

At an operational level, the degree to which the goals have been achieved is measured by the Key Performance Indicators (KPIs), which are monitored annually. The responsibility for measuring and monitoring the indicators and for reaching the goals lies with the respective expert area within the company. The expert areas report results at Sustainability Team meetings, where members agree to potential goal-achieving measures.  In the last step, the head of Sustainability Management reports the results to corporate management.

6. Rules and Processes

The company discloses how the sustainability strategy is implemented in the operational business by way of rules and processes.

Firmly anchored in the process organization at Werner & Mertz, sustainability is a core value for us in the context of process examination, analysis and optimization. The strategy is reflected in the major instruments used to ensure behavior that complies to the rules: our corporate culture, our understanding of the Learning Organization, the Codes of Conduct for employees and business partners, and our Compliance Guidelines.  

The Learning Organization – Our Development Instrument          
The Learning Organization is conceived as the central instrument we use to establish our corporate culture and related internal rules. We thereby reinforce the high value of sustainability within the company and in our daily work. The Learning Organization allows us to make appropriate adjustments in the processes of our company so we can meet continuously changing market demands. During our development into a Learning Organization, we conducted workshops and interviews in 2019 in which we analyzed our corporate culture (strengths, but also what we wanted to change) and, in cooperation with top management, developed it into our target culture, that is, the culture to which we aspire. The values of our target culture are described in the categories of Goal Orientation, Cooperation, Innovation and Improvement, Personal Development, Performance and Leadership. Our maxim of sustainability stands above all of them. On the way to turning our target culture into our new habits, all employees and their managers took part in workshops in 2019 and worked out ways to implement the new culture. Later on, all employees attended culture establishment workshops in which measures were devised that would embed the target culture in all areas of the company. To gauge the success of the new concept, we check employees' knowledge of corporate culture, which we defined as a measured variable and incorporated in our Sustainability Roadmap 2025. The feedback from our employees tells us to what extent the culture is accepted and practiced in everyday work.  

Codes of Conduct, Compliance Guidelines for Rule-compliant Behavior
Codes of Conduct for employees and business partners and new Compliance Guidelines are core sets of rules and standards for monitoring rule-compliant behavior within our organization. Our Code of Conduct for employees covers the principles of our sustainability mission and summarizes the most important compliance rules for legal and ethical business behavior. The Code of Conduct for business partners of the Werner & Mertz Group also contains principles, which are incorporated in the guiding principle "sustainability". Among those principles are respect for human rights, ensuring socially acceptable working conditions, ethical behavior in business life and observance of environmental standards.   Our Compliance Guidelines serve as an orientation aid for employees by setting rules for behavior that apply to all employees in their interaction with business partners and the general public. 

Integrated Management System and Audit as Control Instrument
An Integrated Management System (IMS) is a merger of separate management systems (e.g., Quality Management, Environmental Management, Energy Management) into an integrated all-in-one solution. Our practiced IMS helps the Werner &  Mertz  Group to implement requirements from norms and standards in a systematic and uniform way. In internal and external audits we put our organization and our processes to the test at regular intervals and diligently work on the continuous improvement of our Environmental, Energy and Quality Management systems.  For many years we have received certification in accordance with the following norms and standards:   

7. Control

The company states how and what performance indicators related to sustainability are used in its regular internal planning and control processes. It discloses how suitable processes ensure reliability, comparability and consistency of the data used for internal management and external communication.

Within the scope of a materiality analysis, the Werner & Mertz Group identified five areas of action (Integrity & Responsibility, Products & Customers, Production & Environment, Engagement & Society). They are described in detail, including information about the reliability, comparability and consistency of the data, in the sections on Criteria 1 to 3. Concrete goals were assigned to these action areas and are monitored by means of Key Performance Indicators (KPIs) and target dates.

Area of Action  Our Essential Sustainability Topics Concrete Goals Key Performance Indicators (KPI) Target Dates
Integrity & Responsibility 1. Supplier contracts with environmental and social criteria / Supplier Code of Conduct  - The extensive Supplier Code of Conduct recently developed by Werner & Mertz is a fixed component in all new and existing supplier contracts. It extends way beyond the previously expected voluntary commitment related to environmental protection, social responsibility, quality, etc. - Share (%) of A and B suppliers with a signed W&M  Supplier Code of Conduct 2025
2. Integrity Management with Code of Conduct - Deceptive acts are prevented by strengthening the integrity culture and sharpening requirements. To that end, 98% of all employees complete relevant training courses. - Share (%) of employees who have completed the W&M training program "Compliance in Everyday Work". (Length of service > six months and not production personnel) 2020 ­ 2021 (12 months from July 2020)
- Share (%) of employees with special job-related requirements (Sales, Purchasing, Marketing) who have completed additional selected training components.  (Length of service > 6 months)
Products & Customers 3. Sustainability Performance by means of Innovation Processes - Sustainability-Oriented  Innovations (SOI) result in the development of at least two new sustainable raw materials per year.  - Number of new sustainable raw materials from F&NT (research and new technologies)    Annual
4. Use of Native Plants   Continuous increase in the number of articles launched in the market that contain surfactants made from plants cultivated in Europe. - Number of new articles with European surfactants in the W&M product range Annual
Production & Environment 5. Recyclate Use in Packaging - 100% Post Consumer Recyclate (PCR) is used in all packaging. - Share of all converted packaging to 100% PCR     By
2025
Culture & Employees 6. Corporate Culture - The target culture at W&M  is experienced and practiced by all employees in their daily work. At least 90% of  prescribed competence development discussions are held, during which all cultural aspects are examined and assessed.
  
- As part of the onboarding process, all new employees take part in an information session with cultural content  
Ongoing
7. Training and Personal Development W&M offers attractive qualification and career opportunities to all employees.  


-
For that purpose, strategic personnel planning is developed and appropriate instruments are rolled out through the entire organization.
- Participation rate of employees at information sessions on defined roles at W&M

-  Instruments for strategic personnel planning and qualifications were installed in all departments and at all sites.
By
2025
Engagement & Society 8. Biodiversity and Species Protection - Conserve biological diversity in the vicinity of production sites in Mainz and Hallein by means of close cooperation with an environmental organization and joint projects.   


-  Protection and annual  CO2 compensation through reforestation support of the peatland rainforest Mawas Borneo



- Annual renewal of cooperation with NABU, for example, with project for the return of the tree frog to the Rhine wetlands

- CO2 compensation through cooperation with BOS of 13 tons of CO2/hectare per year.

- CO2 compensation of 132 t CO2 annually (at this time) by means of company forest maintained in cooperation with Treedom   
   
Ongoing
9. Industry initiatives (Recyclate) - In the European market, increase the use of plastic waste from post-consumer collections in high-quality packaging.


- W&M engages in political dialog regarding the legal and regulatory framework.  Our goal is to carry out at least two activities per year that attract the attention of the professional public.
- Number of activities in plastic recycling per year Ongoing
* Given the natural staff turnover, it is not possible to guarantee a training quota of 100% at a specified time.

Key Performance Indicators to criteria 5 to 7

Key Performance Indicator GRI SRS-102-16: Values
The reporting organization shall report the following information:

a. A description of the organization’s values, principles, standards, and norms of behavior.

Corporate Culture and Corporate Policy at Werner & Mertz  
Cooperation
Together we work reliably and respectfully with clearly defined responsibilities in the interests of the company's success. We orient ourselves to the needs of our internal customers and the effects on the entire process chain.     

Innovation and Improvement
We push for changes where they serve our company success, building on our values and strengths. We often do pioneering work and learn from our mistakes and failures.

Personal Development
We are always working on our development so that we will be able to respond to ever-changing market conditions and efficiently supply our consumers, end-customers and customers with innovative, high-quality products over the long term.  

Performance
We provide and value high performance. We know what is required to make our quality products successful in the market and we work with determination and efficiency to achieve our goals.  

Goal Orientation
We strive to build up lasting consumer and customer trust and thereby maximize success with our customers. We do that with our ecological, high-performance quality products, our sustainability initiatives and process orientation in line with the Continuous Improvement Process and a pull-based system.

Leadership
Our leaders define the framework and create a work environment in which employees can show initiative and contribute to the company's success. We make it happen with empathy and reliability. See Criterion 7 for details on the organization's values, principles, standards and norms of behavior.   

8. Incentive Systems

The company discloses how target agreements and remuneration schemes for executives and employees are also geared towards the achievement of sustainability goals and how they are aligned with long-term value creation. It discloses the extent to which the achievement of these goals forms part of the evaluation of the top managerial level (board/managing directors) conducted by the monitoring body (supervisory board/advisory board).

At Werner & Mertz our executives and employees participate in a goal-setting process in which they work out strategic issues and goals that are agreed to and monitored annually. Both corporate goals and individual goals are involved in the process. Special sustainability goals are not defined. Agreements are monitored with a focus on further development in the areas of responsibility for executives and employees.

A remuneration system that explicitly includes sustainability goals does not yet exist nor is one planned.

Key Performance Indicators to criteria 8

Key Performance Indicator GRI SRS-102-35: Renumeration policies
The reporting organization shall report the following information:

a. Remuneration policies for the highest governance body and senior executives for the following types of remuneration:
i. Fixed pay and variable pay, including performance-based pay, equity-based pay, bonuses, and deferred or vested shares;
ii. Sign-on bonuses or recruitment incentive payments;
iii. Termination payments;
iv. Clawbacks;
v. Retirement benefits, including the difference between benefit schemes and contribution rates for the highest governance body, senior executives, and all other employees.

b. How performance criteria in the remuneration policies relate to the highest governance body’s and senior executives’ objectives for economic, environmental, and social topics.

Quantitative Criteria Available Information
Fixed pay and variable pay (including performance-based pay, equity-based pay, bonuses and deferred or vested shares) Tariff in accordance with IG BCE
Sign-on bonuses or recruitment incentive payments   Because our employees are paid at least the IG BCE tariff, we believe reporting this criterion is immaterial.
Termination payments Individual
Clawbacks No information available.
Retirement benefits (including the difference between benefit schemes and contribution rates for the highest governance body, senior executives and all other employees) Company pension
Qualitative Criteria Available Information
How performance criteria in the remuneration policies relate to the highest governance body's and senior executives' objectives for economic, environmental and social topics No information available.

Key Performance Indicator GRI SRS-102-38: Annual total compensation ratio
The reporting organization shall report the following information:

a. Ratio of the annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median annual total compensation for all employees (excluding the highest-paid individual) in the same country.

Qualitative Criterion Available Information
Ratio of the annual total compensation for the organization's highest-paid individual to the median annual total compensation for all employees (excluding the highest-paid individual).   Because our employees are paid at least the IG BCE tariff, we believe reporting this criterion is immaterial.

9. Stakeholder Engagement

The company discloses how the socially and economically relevant stakeholders are identified and integrated into the sustainability process. It states whether and how an ongoing dialogue takes place with them and how the results are integrated into the sustainability process.

When we identify the key sustainability topics, we take into consideration the perspectives of our customers, business partners and other stakeholders.  In addition to informal dialogs and discussions, we carry out a structured materiality assessment at the group level to ascertain the perspectives of internal and external stakeholders. The examination of material aspects was last conducted in 2020.

The most important stakeholder groups for the business activities of the Werner & Mertz Group were determined at an internal workshop held during the reporting year. Together with our employees we identified external contacts and stakeholder groups and then systematically analyzed and clustered. The stakeholders ascertained in this process are:



Exchanges with our stakeholders are the basis of our shared understanding and society's acceptance of our business conduct. Our communication includes dialogs with consumers and employees and the cooperative efforts Werner & Mertz has undertaken in the past (Allianz Ressourcenschonung, NABU,  Deutsche  Tafel  and many others).  Other ways we exchange ideas and opinions with internal and external stakeholders are:



A detailed list of our dialog with our stakeholders and the topics that concern them most are in the performance indicators for Criterion 9.

Key Performance Indicators to criteria 9

Key Performance Indicator GRI SRS-102-44: Key topics and concerns
The reporting organization shall report the following information:

a. Key topics and concerns that have been raised through stakeholder engagement, including:
i. how the organization has responded to those key topics and concerns, including through its reporting;
ii. the stakeholder groups that raised each of the key topics and concerns.

Key Topics Measures
Internal Stakeholders
Management & Employees (including those represented by the Works Council)
Our internal stakeholders expect that we increase the value of the company and thereby create and maintain attractive jobs. High priority is given to  complying with laws, agreements and directives and adhering to norms and standards.  Another important issue is the further development of the organization and the employees with regard to their innovative capabilities and co-determination. The implementation of our integrally sustainable approach also is of great importance to our internal stakeholders.   We respond to the concerns of our internal stakeholders in many different ways, such as the introduction of the "Learning Organization" program, which covers strategic personal development and career planning, and the strategic development of our corporate culture.  We have provided extensive information about these and other employee-related subjects under Criteria 14, 15 and 16.  Compliance with laws and agreements is ensured by various means, including training and workshops. A detailed description of the Compliance area is in Criterion 20.  We continue our diligent pursuit of our integrally sustainable approach.  Our efforts in Product Development are described under Criterion 10.  With the help of the means described above and many other measures – like the use of new technologies or the development and launch of innovative new products – we make sure that Werner & Mertz will remain a competitive and successful company in the future.  
External Stakeholders
Suppliers, Service Providers & Partners
Our suppliers, service providers and partners put a high priority on planning reliability. Consequently, they also value adherence to agreements and payment conditions.   We ensure planning reliability for our partners by  means of contract reviews, keeping all contractual agreements and meeting all other obligations. We also work closely with special departments and suppliers and actively participate in working groups and networks.
Passing on their own innovations to product maturity also is very  important to these stakeholders.    
Customers & End-Consumers
The quality, safety and sustainability of our products are the main concerns of our customers. An attractive price also plays a role in their buying decisions. Customers also value transparency, for example, with regard to product information such as ingredients and labeling and a credible corporate philosophy. We respond to the needs of our customers in many ways, including our work in product development. Our measures include continuous development and innovations, such as the use of surfactants made from domestically cultivated plants or the use of recyclate in our packaging.  We take into account our customers' wishes in order to offer them credible sustainable alternatives over the long term. To assure quality and safety, we let independent external auditors certify our products and we too continuously test our products.  In addition, we use child-safety closures, label the ingredients of our products and offer consumer advice. More information about our products can be found under Criteria 4 and 10.  
General Public, Neighbors & Communities
The stakeholders – the general public, neighbors and communities – expect from us that we actively contribute to environmental and climate protection  through our sustainable product offerings. Beyond that, they require transparency  (in  our business processes and supply chain),  lawful conduct and regional, social and political engagement.   We respond to our stakeholders' requirements with our extensive activities in social and political circles, which we describe in more detail under Criteria 18 and 19.  In Criteria 11, 12 and 13 you will find our initiatives in sustainable production and business processes. We go into detail about our engagement for sustainable products and supply chains in Criterion 4. You'll find out how we guarantee lawful conduct in Criterion 20.
Legislatures & Public Authorities
Both legislatures and authorities expect from us legally compliant behavior, which is demonstrated in the submission and implementation of permits and in the proper and safe operation of buildings and plants.   We have devised clear internal structures and processes that ensure lawful conduct. Special mention should be made here of our legal registry which contains, among other things, our Compliance Management System and regular monitoring through internal and external audits.
Banks, Leasing Companies & Insurers
Banks, leasing companies and insurers expect from us creditworthiness and solvency, on-time interest payments, In taking into account the requirements from banks, leasing companies and insurers, we use extensive and legally compliant financial and bookkeeping processes plus personal contact with and confirmation from external auditors.
timely and transparent reporting and compliance with covenants in loan agreements.
Supervisory Board, Official Experts & Auditors
Our Supervisory Board, official experts and auditors expect from us compliance and lawful corporate management  with regard to shareholders, the compliance and adherence to the rules of procedure, regular reporting, lawful reporting, extensive risk management and legally compliant preparation of consolidated financial statements. We maintain close contact with our stakeholders with Supervisory Board sessions and internal revision, random sampling, subject matter and business area-related hearings and other meetings. We also pay strict attention to accurate financial and bookkeeping processes and sound risk management processes. More information about compliance at Werner & Mertz is under Criterion 20.
Associations, NGOs & Cooperation Partners
Important topics for associations, NGOs and cooperation partners include maintaining and expanding existing networks  and providing feedback on our sustainability activities.   We respond to the expectations of associations, NGOs and cooperation partners with a variety of activities in social and political areas, which we describe in detail under Criteria 18 and 19.   

10. Innovation and Product Management

The company discloses how innovations in products and services are enhanced through suitable processes which improve sustainability with respect to the company’s utilisation of resources and with regard to users. Likewise, a further statement is made with regard to if and how the current and future impact of the key products and services in the value chain and in the product life cycle are assessed.

Direct &indirect environmental impact of W&M business activities
To monitor and keep significant environmental aspects and their impact under control, we identify, analyze and assess the quantitative and qualitative direct and indirect impact of our business activities. The assessment provides information about the significance of environmental aspects at our sites and serves as the basis for defining environmental goals. In order to adjust to continuously changing conditions, we regularly update the assessment of environmental issues and always follow up with potential measures.     

Direct Environmental Impact
The most important data on the direct environmental impact at the Mainz site for the past four years can be found in the Input and Output Assessment in the  Environmental Statement 2020 (pp. 19­24). Details about the direct environmental impact at the Hallein site are provided in the Criteria 11 and 13 and in the Performance Indicators for Criteria 11, 12 and 13.  

Indirect Environmental Impact
In this assessment, the particularly significant topics for the indirect environmental impact of our services and products are energy consumption in our vehicular fleet, finished goods logistics, employee mobility, employee awareness of energy use and product-related effects. A more detailed list of the indirect environmental impact and measures to reduce it are in the  Environmental Statement for the Mainz site from the year 2020 (pp. 37­39). The following contains data on the indirect environmental impact  for our Hallein site:  

Topics Indirect Environmental Impact Measures
Employee mobility Possible emissions for employees' commutes by means of personally owned automobiles   Jobticket subsidy
Vehicular fleet Diesel fuel consumption of company fleet Regular ecological driver training    
Finished products logistics Emissions related to outsourcing logistics to  shipping companies Conduct an assessment of sustainability in finished products logistics with Fraunhofer Institute with the goal of reducing   GHG emissions
Information for employees and customers Low awareness of sustainability topics on the part of employees and customers Employees: Information on sustainability topics in employee newspaper and in training sessions
Customers: Educational work on sustainability topics with the campaign "Frosch for Clean Oceans" and Recyclate Initiative   
Product-related environmental impact Packaging materials Reduction of product-related environmental impact through use of recycled material

Innovation Leadership Ambitions
In the area of innovation we pursue the goal of becoming the European market and innovation leader in special care products. We want to be always one development generation ahead of the current ecological benchmarks. Werner & Mertz aspires to bring about change where it is conducive to our success – by building on our values and strengths. The company does pioneering work and learns from failures and mistakes.   

What all the products from Werner & Mertz have in common is their origin. All come from the company's own Research & Development area, which consists of several groups including Product Development, Packaging Development and Research & New Technologies. Here employees develop new and innovative products and optimize existing products and processes.

Tests are regularly conducted on the products' properties with regard to contents, manufacturing, packaging and use. The raw materials, formulas and packaging components are analyzed thoroughly to ensure that they can satisfy tough sustainability requirements.    

The goal is to develop the raw material portfolio by taking into account the entire life cycle of a material and sustainable recycling processes.  For that purpose, Werner & Mertz designed its own assessment system. It checks the ecological, ecotoxicological and toxicological criteria and evaluates the components according to their origin (preferably from regenerative resources), their properties in the usage phase (minimization of hazard potential) and their fate after use (degradability).     

Innovation beyond Product Development
Separated from the processes of standard product development, the Research & New Technologies group concentrates on innovative and novel raw material developments and technologies with the goal of mastering today the challenges of tomorrow. One major objective is reducing the use of synthetic raw materials. In sustainable raw material development, researchers work with raw material producers on adapting materials to satisfy stringent sustainability requirements. In the interest of sustainability, the ideas and experience gained in this area are integrated in the development of other company areas. They have largely shaped the sustainability guidelines and help to drive superordinate processes, such as the continuous development of the Environmental Management System in accordance with EMAS criteria.

In Idea Management or the company's suggestion program, every employee can contribute ideas and suggestions about how to optimize and improve work processes, occupational safety, environmental protection or product-related aspects. A committee checks the saving potential of the submitted ideas. We appreciate our employees' contributions and honor the implemented suggestions with 20 percent of the saved amount. All ideas chosen over the course of the year are eligible to participate in  year-end prize drawing.   

Detailed environmental aspects and impacts are covered in Criterion 12.  A brief description of the ecological sustainability aspects of our products is found under Criterion 4.

Key Performance Indicators to criteria 10

Key Performance Indicator G4-FS11
(report also in accordance with GRI SRS): Percentage of assets subject to positive and negative environmental or social screening.(Note: the indicator should also be reported when reporting to GRI SRS)

Criterion Missing Information
Percentage of assets subject to positive and negative environmental or social screening. We are not obliged to publish our business reports and therefore do not report financial figures.