At a Glance Responsible •Extended Supplier Recognition Model to additional business units • Started 昀椀rst initiative with business partner for technical plastics to reduce product carbon footprint Partner • Signi昀椀cantly reduced con昀氀ict and critical raw materials usage in cutting and drilling product lines SUPPLIER SUSTAINABILITY region and 7 percent in the Western Hemisphere protection. In terms of speci昀椀c human rights, our Our global supplier network contributes signi昀椀cantly to the added value, quality and innovative strength outside Europe. We procure more than 42 percent of suppliers commit, for example, to eschewing slave of our company as well as to its overall sustainability our direct purchase volume locally in the regions where labor, servitude, forced or compulsory labor and human performance along our value chain. Our relationships products will eventually be sold. traf昀椀cking, to pay minimum wages and not to make use with suppliers, while giving them signi昀椀cant in昀氀uence of child labor. on whether we achieve our sustainability goals, is also The principles of collaboration with our direct suppliers aimed at helping them become more sustainable. are regulated in our Code of Conduct for Suppliers, which The Hilti Code of Conduct, speci昀椀cally the sections must be contractually agreed to by all suppliers before on human rights and the environment, as well as the we embark on a business relationship. Alternatively, Prohibited Practices Policy, which includes the Management approach suppliers may have their own established principles Anti-Corruption, Anti-Money Laundering, Anti-Fraud or codes that meet our requirements. These include and Anti-Bribery Policies, must be observed when We work with roughly 650 core direct suppliers to principles against bribery, corruption and the violation sourcing decisions are taken. All Hilti team members purchase the material that is directly used in our of human rights, and in favor of humane working working in sourcing and in purchasing-related functions products. Approximately 65 percent of these suppliers conditions and minimum wages, as well as the correct are responsible for complying with the policy, the are based in Europe, 28 percent in the Asia/Paci昀椀c handling of hazardous substances and environmental Code of Conduct and any supplementary policies,