14. Employment Rights

The company reports on how it complies with nationally and internationally recognised standards relating to employee rights as well as on how it fosters staff involvement in the company and in sustainability management, what goals it has set itself in this regard, what results it has achieved thus far and where it sees risks.

Of course, cosnova complies with the legislation on employee rights, such as the German constitution (Grundgesetz) and labor law. We expect our national and international business partners and their subcontractors to comply with all applicable laws and official regulations. This includes health and safety regulations, labor law, anti-discrimination, environmental protection, trade, tax and anti-corruption laws. We have documented these expectations in the form of a Code of Conduct which is based on the International Core Labor Standards of the ILO. This applies to cosnova itself as well as to our national and international business activities. Despite the introduction of our Code of Conduct, we see potential risks with regard to employee rights violations particularly along our international value chain. For this reason, cosnova is currently developing a supplier monitoring program which, in addition to the existing EcoVadis assessment, envisages an on-site inspection of our suppliers.  At cosnova, we maintain an open communication culture. The culture of our family-run company, short decision-making paths and a flat hierarchy provide the basis for personal collaboration and the space to contribute your own ideas. In regular board meetings, the Executive Management informs about the latest developments in the company and offers the opportunity to ask questions and make suggestions. Of course, this also includes sustainability topics. In addition, annual action days are organized, such as the "Neo-Ecology" day, which provide a framework for gathering practical experience on sustainability and expanding the knowledge base.

15. Equal Opportunities

The company discloses in what way it has implemented national and international processes and what goals it has for the promotion of equal opportunities and diversity, occupational health and safety, participation rights, the integration of migrants and people with disabilities, fair pay as well as a work-life balance and how it will achieve these.

With our corporate values of passion, courage, trust, reliability, openness, responsibility and loyalty, we stand for a modern and tolerant company in which discrimination of any kind has no place. We value the contribution of our employees to the success of our company and attach great importance to equal opportunities. Our corporate culture is characterized by the great diversity of our employees in terms of nationality, gender, age and work experience. When filling vacancies, we focus exclusively on the competence, performance and potential of the applicants. Our goal is to ensure fair and performance-related compensation for all employees. We have developed internal salary bands for this purpose and review salaries at least once a year to avoid differences in remuneration between employees. In addition to the monthly salary, our employees also participate in the company's success in the form of a bonus system. In 2019, we will develop and publish specific promotion criteria with the aim of presenting a transparent and comparable depiction of internal development opportunities. 
As an employer, cosnova takes its responsibility and duty of care towards its employees very seriously and therefore finances a comprehensive pension program for its permanent employees, such as subsidized company pension schemes or capital-forming benefits. Health care is an important topic, and a wide variety of free measures are offered here as well. These range from preventative check-ups and vaccinations to the provision of an in-house fitness studio including endurance and strength equipment as well as a wide range of fitness courses. In addition, a private accident insurance policy and a basic care plan paid for by cosnova in the event of occupational disability round off the range of additional benefits we offer. Due to our employee structure, it is our goal to constantly improve the compatibility of work and family. Here we offer a variety of supporting measures, such as flexible working hours, mobile working, the payment of a day-care subsidy, a supportive family service (PME), paid childhood illness days and one-week of holiday activities for employees’ children, which will be offered for the first time starting in 2019.

16. Qualifications

The company discloses what goals it has set and what measures it has taken to promote the employability of all employees, i.e. the ability of all employees to participate in the working and professional world, and in view of adapting to demographic change, and where risks are seen.

Our industry is characterized by high dynamics and an environment that is subject to constant change. This also has an impact on our company. Our employees must be able to react to these new challenges, which requires constant further development. Through our continuing education program, we offer our employees the opportunity to further strengthen their skills, encourage them to try new things, learn from mistakes and take initiative. Based on our employee development mission: "We empower our employees to achieve the best business results by equipping them with the right tools to develop their skills and knowledge in line with cosnova's culture and values", we offer a wide range of training opportunities for all employees. The objectives of the employee development in 2018 were: In view of demographic change and the future shortage of skilled workers, both the recruitment and motivation of new talent as well as the vocational training of young people are an important part of our personnel policy.

Key Performance Indicators to criteria 14 to 16

Key Performance Indicator GRI SRS-403-9: Work-related injuries
The reporting organization shall report the following information:

a. For all employees:
i. The number and rate of fatalities as a result of work-related injury;
ii. The number and rate of high-consequence work-related injuries (excluding fatalities);
iii. The number and rate of recordable work-related injuries;
iv. The main types of work-related injury;
v. The number of hours worked.

b. For all workers who are not employees but whose work and/or workplace is controlled by the organization:
i. The number and rate of fatalities as a result of work-related injury;
ii. The number and rate of high-consequence work-related injuries (excluding fatalities);
iii. The number and rate of recordable work-related injuries;
iv. The main types of work-related injury;
v. The number of hours worked.

You will find the remaining numbers c-g of the indicator SRS 403-9 in the GRI standard and may additionally report them here.


Key Performance Indicator GRI SRS-403-10: Work-related ill health
The reporting organization shall report the following information:

a. For all employees:
i. The number of fatalities as a result of work-related ill health;
ii. The number of cases of recordable work-related ill health;
iii. The main types of work-related ill health.
b. For all workers who are not employees but whose work and/or workplace is controlled by the organization:
i. The number of fatalities as a result of work-related ill health;
ii. The number of cases of recordable work-related ill health;
iii. The main types of work-related ill health.

You will find the remaining numbers c-e of the indicator SRS 403-10 in the GRI standard and may additionally report them here.

Work-related accidents 2018: 0  
   
Average number of lost days of work per year:
2018: 9.0  

Key Performance Indicator GRI SRS-403-4: Worker participation on occupational health and safety
The reporting organization shall report the following information for employees and for workers who are not employees but whose work and/or workplace is controlled by the organization:

a. A description of the processes for worker participation and consultation in the development, implementation, and evaluation of the occupational health and safety management system, and for providing access to and communicating relevant information on occupational health and safety to workers.

b. Where formal joint management–worker health and safety committees exist, a description of their responsibilities, meeting frequency, decision-making authority, and whether and, if so, why any workers are not represented by these committees.

There are no agreements with trade unions.

Key Performance Indicator GRI SRS-404-1: Average hours of training
The reporting organization shall report the following information:

a. Average hours of training that the organization’s employees have undertaken during the reporting period, by:
i. gender;
ii. employee category.

Average annual number of hours of training and further development per employee 2018
female with leadership responsibility 20.4 hours/year
female without leadership responsibility 32.5 hours/year
male with leadership responsibility 27.8 hours/year
male without leadership responsibility 34.6 hours/year

Key Performance Indicator GRI SRS-405-1: Diversity
The reporting organization shall report the following information:

a. Percentage of individuals within the organization’s governance bodies in each of the following diversity categories:
i. Gender;
ii. Age group: under 30 years old, 30-50 years old, over 50 years old;
iii. Other indicators of diversity where relevant (such as minority or vulnerable groups).

b. Percentage of employees per employee category in each of the following diversity categories:
i. Gender;
ii. Age group: under 30 years old, 30-50 years old, over 50 years old;
iii. Other indicators of diversity where relevant (such as minority or vulnerable groups).

 Employees Age group 20–29 years old 30–39 years old 40–49 years old 50–59 years old 60 years and older
of which are female 51 175 62 23 0
of which are male 11 39 22 10 0

Composition of supervisory bodies   of which are female of which are male
Executive Management 5 1 4
Directors 20 14 6
Employees with leadership responsibility 51 44 7

Key Performance Indicator GRI SRS-406-1: Incidents of discrimination
The reporting organization shall report the following information:

a. Total number of incidents of discrimination during the reporting period.

b. Status of the incidents and actions taken with reference to the following:
i. Incident reviewed by the organization;
ii. Remediation plans being implemented;
iii. Remediation plans that have been implemented, with results reviewed through routine internal management review processes;
iv. Incident no longer subject to action.

 No incidents of discrimination are known.

17. Human Rights

The company discloses what measures it takes, strategies it pursues and targets it sets for itself and for the supply chain for ensuring that human rights are respected globally and that forced and child labour as well as all forms of exploitation are prevented. Information should also be provided on the results of the measures and on any relevant risks.

In the company: The respect and observance of human rights in our business activities are addressed by standards and measures at various stages of the supply chain. We consider our corporate values to provide the basis for all our actions. As an owner-managed family business that has been successfully developing cosmetic products for more than 15 years, we stand for our corporate values of passion, courage, trust, reliability, openness and responsibility. We also stand for loyalty – to our employees, to our business partners and to our locations. We assume responsibility and are committed to a high standard of ethics, fairness and transparency. In addition, compliance with human rights is ensured through our adherence to legal standards such as the German constitution (Grundgesetz) and labor law. 

At the supplier: The cooperation with our suppliers is based on long-standing, close and trusting business relationships. We expect our partners to also act responsibly and work according to our standards. In order to build this basis for our business relationships on a common, defined foundation, a Code of Conduct for business partners was introduced in 2017. The Code of Conduct must be recognized and signed by all suppliers and partners and is based on the ILO Core Labor Standards and, of course, compliance with stipulated and local laws. Compliance with the Code of Conduct and our quality standards at our suppliers is checked by external audits. In addition, a new process is currently being developed for this purpose that specifically checks compliance with social standards. A further means of monitoring compliance with human rights in our supply chain is the sustainability assessment by EcoVadis, which also checks for fair working practices and fair business practices. 

In our supply chain  A major challenge of our business model is the extensive supply chain up to TIER 4/5. In order to follow the national action plan for human rights, we have carried out an analysis of our raw materials portfolio. Strategically important raw materials were identified, subjected to a supply chain assessment and a risk analysis was carried out.

The raw material mica has been identified as a high risk material for potential negative human rights impacts. As a first measure, a continuous Mica Supply Chain Mapping was introduced with the aim of achieving 100% transparency of the mica supply chain in our value chain in the long term. The willingness of our suppliers to participate in this Supply Chain Mapping was defined as a prerequisite for our business relationships, with the consequence that we voluntarily forgo suppliers who do not wish to disclose their mica supply chain. Currently, Supply Chain Mapping only applies to natural mica with India as the country of origin, as this is where the greatest risk of negative human rights impacts exists worldwide. In the long term, however, all other countries of origin of natural mica must also be included in the Supply Chain Mapping. In 2017, we joined the RMI (Responsible Mica Initiative) to find joint solutions to the problems in the mica supply chain and to implement our goals. The transparency of our mica supply chain is continuously measured and recorded as one of our key performance indicators. Our goal is to achieve full transparency of the mica supply chain by 2023.  

Status 2017: 61 percent transparency
Status 2018: 62 percent transparency and/or 88 percent transparency if RMI members are classified as completely transparent.   

Raw materials based on palm oil and palm kernel oil were identified as another human rights risk factor in our supply chain. In order to reduce the negative effects of palm oil cultivation on humans and nature and to stop them in the long term, sustainable cultivation is one of the most important "adjustment screws". For this reason, we became a member of the RSPO (Roundtable on Sustainable Palm Oil) in 2018. The higher the demand for sustainable palm oil is, the stronger are the incentives for producers to work in a sustainable manner. Every participant in the supply chain has the opportunity to promote and support sustainable palm oil. Some of our products contain palm oil and/or palm oil derivatives, although the proportion of palm oil in our product portfolio is relatively low compared to skin care products. According to our calculations, less than 15 percent of our raw materials contain palm oil, while the proportion of pure palm oil/palm kernel oil is less than 0.1 percent. Nevertheless, we are committed to meeting our responsibility as a player in the palm oil supply chain. As part of our sustainability strategy. we have therefore decided to purchase RSPO Credits from January 2018 to fully compensate the quantities of palm oil derivatives we use and thus promote the sustainable cultivation of palm oil. In addition, we compensate our quantities of pure palm oil and pure palm kernel oil by purchasing special RSPO credits that directly benefit small palm oil farmers. Quantities of credits purchased in 2018:
Total credits purchased:     440
         
Purchasing details 2018:      
CSPO (Certified Sustainable Palm Oil)     364 Credits
CSPKO (Certified Sustainable Palm Kernel Oil)   73 Credits
IS-CSPO (Smallholder – Certified Sustainable Palm Oil)   1 Credit
IS-CSPKO (Smallholder – Certified Sustainable Palm Kernel Oil)   2 Credits
         

Future topics: In 2018, we joined the RBI (Responsible Beauty Initiative) to address further and future issues related to negative human rights impacts in the raw material supply chain. Here, too, we would like to work together with other industry representatives on solutions and goals for a transparent and sustainable supply chain.

Key Performance Indicators to criteria 17

Key Performance Indicator GRI SRS-412-3: Investment agreements subject to human rights screenings
The reporting organization shall report the following information:

a. Total number and percentage of significant investment agreements and contracts that include human rights clauses or that underwent human rights screening.

b. The definition used for ‘significant investment agreements’.

 Performance indicator of signed Codes of Conduct. Status December 2018:  
Status December 2018  
Full Service Suppliers 83 %
Trade Marketing Suppliers 21 %
Packaging Suppliers 81 %
Limited Edition Suppliers 40 %

Key Performance Indicator GRI SRS-412-1: Operations subject to human rights reviews
The reporting organization shall report the following information:

a. Total number and percentage of operations that have been subject to human rights reviews or human rights impact assessments, by country.

No business locations have been reviewed with regard to human rights or human rights implications.

Key Performance Indicator GRI SRS-414-1: New suppliers subject to social screening
The reporting organization shall report the following information:

a. Percentage of new suppliers that were screened using social criteria.

We are not yet in a position to make a statement about the percentage of new suppliers that have been reviewed according to social requirements, as the Social Auditing process is still being established.

Key Performance Indicator GRI SRS-414-2: Social impacts in the supply chain
The reporting organization shall report the following information:

a. Number of suppliers assessed for social impacts.

b. Number of suppliers identified as having significant actual and potential negative social impacts.

c. Significant actual and potential negative social impacts identified in the supply chain.

d. Percentage of suppliers identified as having significant actual and potential negative social impacts with which improvements were agreed upon as a result of assessment.

e. Percentage of suppliers identified as having significant actual and potential negative social impacts with which relationships were terminated as a result of assessment, and why.

The transparency of our mica supply chain with India as the country of origin is continuously measured and recorded as one of our key performance indicators. All contract manufacturers who use mica in our products must disclose their supply chain. This is mandatory in the sustainability guidelines and the correctness of the data is confirmed by the contract manufacturer's signature. The transparency status of the mica supply chain is reviewed once a year. New mica suppliers are checked for transparency before they supply us for the first time and the mica may only be used in our products after they have been approved.
Status 2017: 18 mica suppliers were reviewed: 61 percent transparency 
Status 2018: 19 mica suppliers were reviewed: 62 percent transparency and/or 88 percent transparency if RMI members are classified as completely transparent.  

In the reporting year 2018, a potential new mica supplier was blocked due to missing and conflicting information regarding his supply chain.

Our goal is to achieve full transparency of the mica supply chain by 2023.

18. Corporate Citizenship

The company discloses how it contributes to corporate citizenship in the regions in which it conducts its core business activities.

Our corporate mission provides the origins of our social activities. The mission is focused worldwide on supporting women and children in their education and self-esteem. On the basis of this mission, we support selected projects both locally, regionally and internationally and thus contribute to social development. Our social commitment comprises four pillars: 

Financial support (donations): Employee donations: another form of financial support for projects that benefit women and children. These are proposed by the employees themselves. Employees can submit their own heart-felt project for a cosnova donation of up to 5,000 Euros if the proposed project meets specific criteria. 
   
Product donations Corporate volunteering The company’s own projects include, for example: Corporate citizenship We see ourselves as a "good neighbor" in the Main-Taunus District and like to support social projects in the immediate vicinity of our headquarters in Sulzbach/Taunus. Examples of our regional commitment are:

Key Performance Indicators to criteria 18

Key Performance Indicator GRI SRS-201-1: Direct economic value generated and distributed
The reporting organization shall report the following information:

a. Direct economic value generated and distributed (EVG&D) on an accruals basis, including the basic components for the organization’s global operations as listed below. If data are presented on a cash basis, report the justification for this decision in addition to reporting the following basic components:
i. Direct economic value generated: revenues;
ii. Economic value distributed: operating costs, employee wages and benefits, payments to providers of capital, payments to government by country, and community investments;
iii. Economic value retained: ‘direct economic value generated’ less ‘economic value distributed’.

b. Where significant, report EVG&D separately at country, regional, or market levels, and the criteria used for defining significance.

These data are collected but not published due to competitive reasons.

19. Political Influence

All significant input relating to legislative procedures, all entries in lobby lists, all significant payments of membership fees, all contributions to governments as well as all donations to political parties and politicians should be disclosed by country in a differentiated way.

cosnova has no influence on legislative procedures and would like to maintain a neutral position. For this reason, its influence is limited solely to its membership in various organizations, associations and, in particular, initiatives that support sustainable management. These memberships are listed below: Compliance with the applicable national and international legislation as well as compliance with specific legal regulations resulting from the business activities of cosnova GmbH, such as the Cosmetics Ordinance or the Packaging Act, are handled by the company's internal legal department. 

Key Performance Indicators to criteria 19

Key Performance Indicator GRI SRS-415-1: Political contributions
The reporting organization shall report the following information:

a. Total monetary value of financial and in-kind political contributions made directly and indirectly by the organization by country and recipient/beneficiary.

b. If applicable, how the monetary value of in-kind contributions was estimated.

 No donations were made to political parties or politicians.

20. Conduct that Complies with the Law and Policy

The company discloses which measures, standards, systems and processes are in place to prevent unlawful conduct and, in particular, corruption, how they are verified, which results have been achieved to date and where it sees there to be risks. The company depicts how corruption and other contraventions in the company are prevented and exposed and what sanctions are imposed.

We see our corporate values as the basis of all our actions. As an owner-managed family business that has been successfully developing cosmetic products for more than 15 years, we stand for our corporate values of passion, courage, trust, reliability, openness and responsibility. We also stand for loyalty - to our employees, to our business partners and to our locations. We assume responsibility and are committed to a high standard of ethics, fairness and transparency. These standards have been written down in our Code of Conduct and apply to cosnova GmbH and its locations as well as to all business partners. 
No specific risks arise from our business activities. On the one hand, our products are subject to strict regulations regarding product safety in accordance with the German Cosmetic Products Regulation (VO 1223/2009). On the other hand, our products, unlike pharmaceuticals, are in principle freely marketable. There are no specific risks, such as bribery of regulatory authorities. Our products are FMCG (fast moving consumer goods) in the entry-level price range. They are primarily sold at discount prices. The low margins in this segment offer little room for corruption. In contrast to the possible situation in the luxury cosmetics segment, there is no evidence that our products themselves are used for bribery; the brand image and low pricing rule this out. To date, there has been no additional compliance guideline to the Code of Conduct in the company, but we started developing one in 2018. In addition to the Compliance Guideline, a Compliance Box is planned that will allow employees to confidentially report violations of the Compliance Guideline. For compliance issues in general, the company's internal legal department is the point of contact. Internal communications and an online training platform can be used to raise awareness among employees at all management levels. Concrete goals or planned target achievement have not yet been defined in this area.

Key Performance Indicators to criteria 20

Key Performance Indicator GRI SRS-205-1: Operations assesed for risks related to corruption
The reporting organization shall report the following information:

a. Total number and percentage of operations assessed for risks related to corruption.

b. Significant risks related to corruption identified through the risk assessment.

No data is available on this as no assessment of corruption risks has taken place.

Key Performance Indicator GRI SRS-205-3: Incidents of corruption
Die berichtende Organisation muss über folgende Informationen berichten:

a. Total number and nature of confirmed incidents of corruption.

b. Total number of confirmed incidents in which employees were dismissed or disciplined for corruption.

c. Total number of confirmed incidents when contracts with business partners were terminated or not renewed due to violations related to corruption.

d. Public legal cases regarding corruption brought against the organization or its employees during the reporting period and the outcomes of such cases.

No cases of corruption have occurred. 

Key Performance Indicator GRI SRS-419-1: Non-compliance with laws and regulations
The reporting organization shall report the following information:

a. Significant fines and non-monetary sanctions for non-compliance with laws and/or regulations in the social and economic area in terms of:
i. total monetary value of significant fines;
ii. total number of non-monetary sanctions;
iii. cases brought through dispute resolution mechanisms.

b. If the organization has not identified any non-compliance with laws and/or regulations, a brief statement of this fact is sufficient.

c. The context against which significant fines and non-monetary sanctions were incurred.

There were no fines or non-monetary sanctions as no cases of non-compliance with laws or regulations were identified.