a) Legal Name

Belimo Group, also referred to as Belimo or the Group, with the ultimate parent company BELIMO Holding AG. 

b) Nature of Ownership and Legal Form

The ultimate parent company, BELIMO Holding AG, is the only listed company within the Group. Its shares are publicly traded on the Swiss stock exchange SIX Swiss Exchange (ISIN CH1101098163).

c) Location of the Group‘s Headquarters

The Group has its headquarters in Hinwil (Switzerland).

d) Countries of Operation

BELIMO Holding AG held directly and indirectly the following subsidiaries: 

Europe, Middle East & Africa

Americas

Asia Pacific

a) Entities Included in the Sustainability Reporting

Generally, all entities that the Group controlled during the reporting period were included in its sustainability report. Consequently, the same group of entities was covered as in the consolidated financial report.

b) Differences to the Reporting Scope of the Financial Reporting

Due to materiality reasons, the Group decided to limit the reporting scope for some sustainability disclosures. In this case, the limited scope is indicated in the respective sustainability topic.

c) Approach Used for Consolidating the Information

The sustainability disclosures of Belimo show the aggregated figures reported by each legal entity. Effects of non-controlling interest were neglected due to the current structure of the Group and materiality reasons. Entities that are acquired or sold during the course of the year are included in the reporting, effecting from the date on which control commences and excluded from the date on which control is lost.

a) Reporting Period and Frequency of the Sustainability Reporting

The reporting period for BELIMO Holding AG and all of its subsidiaries is January 1, 2023, to December 31, 2023, for this sustainability report. The sustainability report is published once a year as an integrated part of the Annual Report.

b) Reporting Period and Frequency of the Financial Reporting

The reporting period for the financial reporting is the same as the reporting period of the sustainability reporting, covering the period January 1 to December 31 of a reporting year.

c) Publication Date of the Sustainability Report

This sustainability report is published on March 4, 2024.

d) Contact Point for Questions About the Report or Reported Information

The Group CFO is the designated contact person:

Dr. Markus Schürch, CFO
Brunnenbachstrasse 1
8340 Hinwil (Switzerland)
Phone +41 43 843 63 80
E-mail ir@belimo.ch

a) Restatements of Information from Previous Reporting Periods

The Group has not made material restatements of information disclosed in previous reporting periods. 

a) External Assurance Practice

There is no external review of the sustainability reporting in its entirety, but individual processes, results, and statements are inspected by external parties.

• The consolidated financial statements and their notes are audited by an independent, external auditor.
• The Remuneration Report is audited by an independent, external auditor.
• Belimo continues to gain certifications pursuant to the international environmental management standard ISO 14001, quality management standard ISO 9001, and occupational health and safety management system standard ISO 45001. All sites also undergo regular audits by the Swiss Association for Quality and Management Systems (SQS) and the China Quality Certification Center (CQC) in China. In the period under review, Mumbai was newly certified according to ISO 9001.

a) Sectors Belimo is Active in

Belimo is the global market leader in the development, production, and sales of field devices for the energy-efficient control of heating, ventilation, and air-conditioning systems. The focus of our core business is on damper actuators, control valves, sensors and meters.

According to the International Standard Industrial Classification of All Economic Activities (ISIC), our products belong to ISIC 265 – Manufacture of measuring, testing, navigating, and control equipment. 

b) Value Chain Description

Belimo views its suppliers as key partners and as the most critical element of its asset-light model. The main part of the production costs is incurred within a network of suppliers, with Belimo focusing on final assembly, testing, and customizing of products.

The main procurement region is Europe, and most of the suppliers are certified according to ISO 9001 and ISO 14001.

About 8.0 million actuators are shipped every year by the subsidiaries located worldwide. Sales information by market region and by applications as well as information on geographic regions is disclosed in the segment reporting of the consolidated financial statements.

c) Other Relevant Business Relationships

Belimo has no other relevant business relationships (joint ventures and other entities directly linked to the organization’s operations, products, or services) that are not described as part of its value chain under 2-6-b.

d) Significant Changes Compared to the Previous Reporting Period

There were no material changes in the activities, value chain, and other business relationships in the reporting year.

a) Number of Employees by Gender and by Region

b) Number of Employees by Contract Type, Employment Type, and by Region

Employees by contract type:

Employees by contract type and gender:

Employees by employment type:

Employees by employment type and gender:

c) Methodologies and Assumptions Used to Compile Employee Data

Employee data disclosed in this section correspond to full-time equivalents (FTE) as at the end of the reporting period. An employee is an individual who is in an employment relationship with the organization according to national law or practice.

The definitions of permanent, temporary, full-time, and part-time employees differ between countries. The Group has employees in more than one country. Therefore, the definitions as per the national laws of the countries where the employees are based were used to calculate country-level data. The country-level data then was added up to calculate total numbers, disregarding differences in national legal definitions.

d) Contextual Information

Temporary employees cover production peaks or are engaged for temporary projects. In some regions and functions, it is a standard practice to offer a temporary contract to new employees before an offer of permanent employment is made.

Belimo does not employ non-guaranteed hours employees.

e) Significant Fluctuations in the Number of Employees

During the reporting period, no significant fluctuation took place. 

a) Workers Who Are Not Employees

Belimo engages external workers to cover production peaks and closely collaborates with external engineers and consultants in research and development projects. Furthermore, the Group offers work opportunities for individuals with disabilities in several programs.

As at December 31, 2023, Belimo engaged 192 workers who are not employees. 

b) Methodologies and Assumptions Used to Compile Data on Workers Who Are Not Employees

Workers disclosed in this section correspond to headcounts as at the end of the reporting period. 

c) Significant Fluctuations in the Number of Workers Who Are Not Employees

There were no significant fluctuations in the number of workers who are not employees.

a) Governance Structure Description

The Board of Directors of BELIMO Holding AG is the highest Governance Body of the Group. It determines the strategic objectives and the general resources for achieving these.

b) Committees of the Highest Governance Body Responsible for Decision-Making

The Board of Directors has established three committees: The Audit Committee, the Remuneration and Nomination Committee, as well as the Strategy Committee.

c) Composition of the Highest Governance Body

The Board of Directors of BELIMO Holding AG comprised a total of seven non-executive members as at December 31, 2023 (2022: six members). 

Tenure, gender, competencies relevant to the impact on the organization, stakeholder representation of the board members as well as other significant positions and commitments, details about governance structure, the committees, and the composition of the highest governance body are disclosed in the Corporate Governance Report. 

For additional information, see GRI 405-1.

a) Nomination and Selection Processes for the Highest Governance Body

According to the Articles of Incorporation of BELIMO Holding AG, members of the Board of Directors are elected individually at the Annual General Meeting for a term of office of one year.

The Board of Directors constitutes itself, subject to legal and statutory provisions. The Chairman and the Deputy Chairman of the Board of Directors as well as the members of the Remuneration and Nomination Committee are elected individually at the Annual General Meeting for a term of office of one year, which ends with the next ordinary Annual General Meeting.

b) Criteria Used for Nominating and Selecting Highest Governance Body Members

The Group nominates new members of the Board of Directors in accordance with its Articles of Incorporation, the Swiss Code of Best Practice for Corporate Governance, published by economiesuisse, the regulation of the Swiss stock exchange, SIX Swiss Exchange, and the Swiss Code of Obligations.

Furthermore, the following main criteria are used:

• The candidate‘s qualifications, with consideration of the needs of the Company and the current members of the Board of Directors.
• Diversity, to ensure diverse professional and personal backgrounds on the Board of Directors.
• Personality, to nominate individuals of the highest character and integrity.
• Independence, to ensure that candidates shall be free of any conflict of interest.

a) Chair of the Highest Governance Body

The Board of Directors consists of non-executive members. This means that no member exercised an operational function for Belimo during the three financial years preceding the reporting period. The members of the Board of Directors and the companies they represent have no material business relationship with Belimo.

The Chairman of the Board of Directors, Patrick Burkhalter, is an independent, non-executive member of the Board of Directors, elected by the shareholders of BELIMO Holding AG.

b) Conflicts of Interest

The Group is not aware of any conflicts of interest.

a) Role of the Highest Governance Body and of Senior Executives in Developing, Approving, and Updating the Organization’s Purpose, Mission Statements, Strategies, and Policies

The non-transferable responsibilities of the Board of Directors pursuant to the Swiss Code of Obligations and the Articles of Incorporation are disclosed in the Corporate Governance Report of the Group. 

The Board of Directors determines the strategic objectives of the Group. It delegates operational business management to the Chief Executive Officer (CEO). The CEO draws up the strategic and financial planning and the budget with the Executive Committee. Before being approved, they are discussed with and challenged by the Board of Directors. 

The highest body responsible for the corporate strategy regarding environmental, social, and governance topics is the Board of Directors of BELIMO Holding AG. At the same time, the Board of Director’s Audit Committee is responsible for reporting and compliance with respect to environmental, social, and governance topics.

b) Role of the Highest Governance Body in Overseeing the Organization’s Due Diligence and Other Processes to Identify and Manage the Organization’s Impacts

At every board meeting, the CEO or CFO informs the Board of Directors about current business developments.

The Chairman of the Board of Directors maintains a close relationship with the CEO and is kept up to date by him on all transactions and issues that are of fundamental importance or that have wider implications.

c) Role of the Highest Governance Body in Reviewing the Effectiveness of the Organization’s Processes

The Board of Directors has implemented a comprehensive system for monitoring and controlling risks associated with business activities. A company-wide risk assessment is carried out annually, using a systematic risk management methodology. 

An independent audit firm has been proposed by the Audit Committee and assigned by Board of Directors to perform objective internal audit services in order to ensure compliance with applicable laws and internal directives and procedures.

a) How the Highest Governance Body Delegates Responsibility for Managing the Organization’s Impacts on the Economy, Environment, and People

The Board of Directors has assigned operational management to the Chief Executive Officer. The CEO is authorized to further delegate powers and responsibilities to specific members of the Executive Committee.

At the executive level, environmental, social, and governance topics are managed by the Executive Committee. They are supported by the Head of Group Division Logistics/Customization, the Global Head of Human Resources (both members of the Extended Executive Committee), the Head of Group Quality and Sustainability, and the Head of Sustainability. A Sustainability Program Team, comprised of representatives from all major departments at Belimo, assists them in operationalizing the respective initiatives.

b) Process and Frequency for Senior Executives or Other Employees to Report Back to the Highest Governance Body on the Management of the Organization’s Impacts

The Board of Directors is integrated in the management information system at Belimo and receives monthly financial key figures and quarterly financial statements with commentary. 

The Board of Directors holds at least six ordinary meetings per year. During each meeting, the Board of Directors receives an update regarding current business developments and major strategic initiatives, which also includes sustainability-related topics.

a) Role of the Highest Governance Body in Sustainability Reporting

The sustainability reporting is reviewed and approved by the Board of Directors as part of the annual report of Belimo.

b) Explanation, if the Highest Governance Body is not Responsible for Reviewing and Approving the Sustainability Reporting

Not applicable.

a) Processes for the Highest Governance Body to Ensure that Conflicts of Interest Are Prevented and Mitigated

The members of the Board of Directors are required to organize their personal and business affairs and take whatever mea­sures necessary to ensure that conflicts of interest are avoided to the greatest extent possible. Should a conflict of interest nevertheless arise, the member concerned must inform the Chairman of the Board of Directors immediately. Appropriate measures are being taken, which may reach as far as abstaining from a business discussion and decision.

The Board of Directors also complies with the Code of Conduct of Belimo, in which it is written that conflicts of interest are consciously avoided and that decision making is based on the well-being of the Company, not on personal interests.

b) Disclosure of Conflicts of Interest

We have not become aware of material conflicts of interest in either 2023 or the previous year.

a) Communication of Critical Concerns to the Highest Governance Body

The CEO reports regularly to the Board of Directors on the course of business as well as on risks and changes in personnel at the management level. In addition to periodic reporting, he is obliged to inform the Chairman of the Board of Directors immediately regarding business transactions of fundamental importance and critical concerns.

b) Total Number and Nature of Critical Concerns that Were Communicated to the Highest Governance Body during the Reporting Period

In the 2023, no critical concerns relating to the Company's affairs were communicated to the Board of Directors (2022: none). 

a) Measures Taken to Advance the Collective Knowledge, Skills, and Experience of the Highest Governance Body on Sustainable Development

The Sustainability Steering Committee provides the Board of Directors with information regarding matters pertinent to the expansion of its collective expertise in the area of sustainable development. 

The members of the Board of Directors cover a wide range of in-depth experience in sustainability. Amongst other efforts, two members of the board, Sandra Emme and Ines Pöschel, have completed in 2023 the ESG Designation Certificate for Board Members, a program designed by and for board members to achieve the highest standard of environmental, social, and governance (ESG) education.

a) Processes for Evaluating the Performance of the Highest Governance Body in Overseeing the Management of the Organization’s Impacts

The board continuously improves its effectiveness. In line with the recommendations in the Swiss Code of Best Practice for Corporate Governance published by economiesuisse, the Board of Directors conducts an annual self-evaluation of its work and that of its committees. The Board of Directors then discusses the results of the self-evaluation.

b) Frequency and Independence of the Evaluations

The self-evaluation is conducted once a year. 

c) Actions Taken in Response to the Evaluations

In 2023, the Board of Directors again conducted the self-evaluation, the results of which were discussed and findings are being implemented.

a) Remuneration Policies for Members of the Highest Governance Body and Senior Executives

Belimo publishes a detailed annual Remuneration Report that includes all relevant information concerning remuneration governance and policies,  in addition to specifying the remuneration awarded in the reporting year.

b) Relation Between the Remuneration Policies for Members of the Highest Governance Body and Senior Executives and Their Objectives and Performance

To guarantee independence in executing their supervisory duties, the members of the Board of Directors receive a fixed remuneration that does not contain performance-related component. For the Executive Committee, 40% of the variable remuneration is linked to non-financial business objectives, which are set at the beginning of the year. They are linked to the Belimo value-creation model and include objectives related to sustainability. 

a) Process for Designing the Remuneration Policies and for Determining Remuneration

The Remuneration and Nomination Committee oversees the process for determining remuneration and comprises at least two, currently four, non-executive, independent members of the Board of Directors.

The Remuneration and Nomination Committee is assigned the following duties in support of the Board of Directors:

• Determination of the remuneration policy of the Company at the highest corporate level in accordance with the Articles of Incorporation.
• Preparation of the motions to the Annual General Meeting related to the maximum amounts of remuneration of the governing bodies.
• Evaluation of the yearly target achievement of the Executive Committee members and determination of their remuneration within the limits approved by the Annual General Meeting.
• Submission of proposal for the amounts of remuneration for the members of the Board of Directors within the limits approved by the Annual General Meeting.
• Reviewal and submission of proposed Remuneration Report to the Board of Directors.
• Performance of success planning and selection of suitable candidates for the Board of Directors and the Executive Committee.

b) Results of Votes of Stakeholders (Including Shareholders) on Remuneration Policies and Proposals

The results of votes on remuneration policies and proposals during the Annual General Meeting 2023 of BELIMO Holding AG were as follows:

• The 2022 Remuneration Report has been adopted in a non-binding consultative vote by 94.89%.
• The fixed remuneration of the Board of Directors for the financial year 2023 has been approved by 98.46%.
• The fixed and variable remuneration of the Executive Committee for the financial year 2023 has been approved by 96.19%.

The election results of the members of the Remuneration and Nomination Committee were as follows:

• Sandra Emme (Lead) has been reelected by 91.65%.
• Urban Linsi has been reelected by 96.37%.
• Stefan Ranstrand has been elected by 98.10%.
• Ines Pöschel has been elected by 94.26%.

a) Annual Total Compensation Ratio

In 2023, the ratio of the annual compensation paid to the highest-paid employee to the median annual compensation of all employees (excluding the highest-paid employee) based on the average full-time equivalents (FTEs) was for the entire Belimo group 15.07. 

b) Annual Total Compensation Increase Ratio

As opposed to 2023, the annual compensation ratio has not been collected in 2022; therefore, the ratio of the percentage increase in annual total compensation cannot be determined.

c) Contextual Information

In 2023 and 2022, the highest remuneration paid was to Lars van der Haegen, CEO.

a) Statement From the Highest Governance Body on Sustainable Development 

Belimo firmly believes its entrepreneurial activity makes a meaningful contribution to society. Our ongoing commitment to supporting the UN Global Compact and its initiatives demonstrates this. With respect to their related principles in the four areas of human rights, labor, environment, and anticorruption, Belimo remains explicitly engaged in encouraging the development and diffusion of environmentally friendly technologies (Principal No. 9). The Communication of Progress for the financial year 2023 follows the Global Reporting Initiative (GRI) as presented in this report.

a) Policy Commitments for Responsible Business Conduct

Belimo is determined to manage its business in compliance with high ethical standards and applicable law. The Belimo Mission Statement has been supplemented by a Code of Conduct for the Belimo Group, on which all employees are required to attend a web-based training course.
Furthermore, all suppliers are expected to sign the Supplier‘s Declaration, agreeing to comply with the Code of Conduct of the Belimo Group and to demand conformity with it from their own sub-suppliers as well.

b) Policy Commitment to Respect Human Rights

The Belimo Way to Cover Human Rights

Belimo has been a member of the UN Global Compact (UNGC) since 2013 and is committed to environmental protection, responsible working practices, human rights, and protection against corruption. The UNGC is the largest international initiative for responsible company management. As a trusted partner around the world, Belimo is actively involved in associations that sponsor research and formulate codes and standards. The strategic ambition of Belimo is to uphold and promote respect for human rights within the Group and to enable people's basic rights and freedoms throughout its value chain. The Company’s culture is built on trust, integrity, competence, and responsibility. It supports personal commitment, the courage to take risks to inspire customers, teamwork, and cultural diversity. To achieve this cultural goal, the Company has zero tolerance for workplace violence and is committed to a work environment in which all individuals are treated with respect and dignity, free from all forms of unlawful discrimination, harassment, and retaliation. The Group ensures equal employment opportunity for all persons without discrimination based on ethnic background, religion, disability, skin color, race, nationality, sexual orientation, age, veteran status, gender, gender identity, gender expression, marital status, pregnancy, or any other basis prohibited under federal, state, or local law. Sexual harassment, or harassment based on any personal characteristic prohibited by law, has no place in the work environment, and is strictly prohibited.

For additional information, see 406-1 Incidents of Discrimination and Corrective Actions Taken  and www.unglobalcompact.org > BELIMO Holding AG.

Child Labor and Conflict Minerals

As the global market leader in the development, production, and sales of field devices for the energy-efficient control of HVAC systems, Belimo recognizes the importance of ensuring ethical business practices, upholding human rights, and maintaining environmental standards across its supply chain. Belimo (along with all of its affiliates) has been a member of the United Nations Global Compact since 2013 and has been active in the areas of environmental protection, sustainable working conditions, human rights protection, and the fight against corruption. Belimo is therefore committed to ensuring that its supply chain is free from conflict minerals and child labor. As a trusted business partner to Belimo, our suppliers and partners are expected to read, understand, and adhere to the Belimo Supplier Principles, agree to comply with numerous behavioral obligations, and to demand conformity from their own sub-suppliers. Belimo reserves the right to audit existing as well as newly selected suppliers, during which the Company verifies adherence to these principles. All measures implemented by Belimo in opposition to child labor and conflict minerals are described in the Belimo Supply Chain Policy.

In December 2021, the Swiss Federal Council enacted the legislative amendments of the indirect counterproposal to the Responsible Business Initiative (RBI). Large Swiss companies are legally required to report on the environmental, social, labor, human rights, and anti-corruption risks of their activities. Companies whose activities present risks in the sensitive areas of child labor and minerals from conflict-affected areas must comply with special and more extensive due-diligence obligations. Since 2021, Belimo has been tracking its risks related to child labor in accordance with Swiss due-diligence requirements and has not identified any incidents in 2023. Risks related to conflict minerals were assessed as part of the annual due-diligence process and Belimo did not consider them to be critical for 2023. The Group complied with the applicable due-diligence obligations. 

Anti-Corruption

Pursuing the Code of Conduct, Belimo is committed to maintaining the highest ethical standards and strongly enforces the integrity of its behavior wherever it operates. The Group’s reputation significantly affects all of its business relationships, including those with government agencies, customers, other third parties, and member associations. In addition to the Code of Conduct, an ”anti-bribery and anti-corruption policy” is mandatory for every employee and business partner. The policy is designed to ensure that directors, officers, and employees of Belimo, as well as third parties engaged in activities with or on behalf of Belimo, avoid corruption in all its possible forms, including, but not limited to, bribery of public officials, suppliers, and other third parties. Belimo has a clear set of competence regulations and the dual-control principle is applied in order to prevent corruption. Internal and external auditors also regularly check the books for any irregularities as part of the standard auditing process. The Code of Conduct and anti-bribery and anti-corruption policy are presented to every new joiner by the Executive Committee as part of the welcome events and training courses. Additionally, the anti-corruption guidelines are available to employees and are updated regularly. All employees are therefore provided with information as to what is permitted and what is not. Employees, suppliers, or third-party providers are encouraged to report any concerns using the Belimo Group’s independently operated whistleblowing line “Integrity Channel,” guaranteeing the anonymous and confidential reporting of incidents.

In the Company’s Code of Conduct, Belimo is committed to conducting its business with integrity and condemning practices such as bribery and corruption. Belimo is not aware of any case of corruption, violations of regulations relating to product information, and sanctions for non-compliance with environmental or social legislation.

c) Links to Policy Commitments

See Code of Conduct of the BELIMO Group, Belimo Supplier Principles, and anti-bribery and anti-corruption policies (internal).

d) Level at Which Each of the Policy Commitments Was Approved

All policy commitments were approved by the Board of Directors. 

e) Extent to Which the Policy Commitments Apply

All policy commitments apply to all of the Group's activities and business relationships equally. Belimo is fully committed to its Code of Conduct and will not tolerate any behavior contrary to its content.

f) Communication of Policy Commitments to Workers, Business Partners, and Other Relevant Parties

See a)

a) Embedding Policy Commitments

Compliance with the Code of Conduct of the Group is an integral part of the onboarding process. All employees are required to attend a training course. Those expected to interact with customers and suppliers are also required to participate in separate training on the Company‘s anti-bribery and anti-corruption policies.

a) Processes to Remediate Negative Impacts

Everybody has access to the globally accessible independent Belimo Integrity Channel, where grievances can be submitted anonymously. 

All information on negative impacts is escalated to the Head of Global Human Resources and the General Counsel.

b) Approach to Identify and Address Grievances

Each grievance is reviewed, internally investigated, and responded to.

c) Other Processes in the Remediation of Negative Impacts

None.

d) Stakeholders Involved in the Design, Review, Operation, and Improvement of These Mechanisms

The main stakeholders are the Global Head of Human Resources, the General Counsel, and the members of the Executive Committee and the Board of Directors.

e) Tracking the Effectiveness of the Grievance Mechanisms

Each grievance is tracked in the Belimo Integrity Channel and must be closed in the system once resolved.

a) Mechanisms for Seeking Advice and Raising Concerns on Implementing the Organization’s Policies

Seeking advice on implementing our policies and practices for responsible business conduct in the organization‘s operations and business relationships is part of all our ongoing stakeholder engagement.

Employees are encouraged to report violations of the Code of Conduct or breaches of applicable law or ethical standards through the globally accessible Belimo Integrity Channel, where grievances can be submitted anonymously. This mechanism is operated by an external provider and is available around the clock seven days a week, in German, English, and Chinese.

a) Number of Significant Instances of Non-Compliance With Laws During the Reporting Period

In 2023, Belimo is not aware of any instances of non-compliance with laws and regulations for which fines or non-monetary sanctions were incurred (2022: none). 

b) Total Number and Monetary Value of Fines for Instances of Non-Compliance With Laws

In 2023, Belimo is not aware of any fines for instances of non-compliance with laws and regulations (2022: none).

c) Significant Instances of Non-Compliance

In 2023, Belimo is not aware of any instances of non-compliance with laws and regulations (2022: none).

d) Determining Significant Instances of Non-Compliance

In 2023, Belimo is not aware of any instances of non-compliance with laws and regulations (2022: none).

a) Membership Associations

Belimo has been a member of the UN Global Compact (UNGC) since 2013 and is committed to environmental protection, responsible working practices, human rights, and protection against corruption. The UNGC is the largest international initiative for responsible company management. As a trusted partner around the world, Belimo is actively involved in associations that sponsor research in and formulate codes and standards. A list of our affiliated organizations can be found here.

a) Approach to Engaging with Stakeholders

The stakeholders listed  below have been identified by the Executive Committee as important stakeholders in that they fulfill the following two criteria: the stakeholder group exerts a strong influence on the economic, environmental, or social performance of Belimo and the stakeholder group is strongly affected by the economic, environmental, or social performance of the Company.

Sustainability at Belimo is geared toward several stakeholder groups and aims to create added value for all of these groups. Meeting the interests of a stakeholder group, such as customers, must not be at the expense of other stakeholders, such as employees or local interest groups. Customers appreciate reliable and innovative application solutions and high product quality. Further strengths include consulting and service expertise throughout all customer relationship phases and partnership interactions with suppliers and consultants.

Capital Market
The Group CFO and the Investor Relations Officer are the designated contact persons for the capital market (shareholders, portfolio managers, and analysts). They regularly attend investor meetings, calls, conferences, and roadshows. An Annual Report, including a Remuneration Report, and a Semi-Annual Report are published each year. The Company also organizes at least one Conference for Media and Financial Analysts, an Annual General Meeting, and a Capital Markets Day during the same period.

Customers
The Belimo sales organization consists of outside sales managers, application consultants, training managers, inside sales technicians, customer service representatives, and product management. It ensures excellent customer service while securing in-depth application know-how on the part of the Belimo organization. Digital customer experience is provided by the website with webshop, online training events, application apps, technical support, customer hotline, mailings, interviews, and, most importantly, personal consultations through Belimo sales managers. All customer interactions are managed through a Customer Relationship Management tool.

Employees and Vulnerable Groups
Belimo regularly conducts management training on its corporate mission and values as well as semi-annual performance reviews for all employees, new employee orientations, and social and team-building events. To assess employee engagement, a group-wide employee survey is conducted every three years.

Suppliers
Initial contact takes place within the scope of the assessment procedure and implementation of the Code of Conduct for Suppliers, close collaboration in joint development projects. Approximately 10% of the supplier base is audited each year.

Municipalities and Authorities
Regular exchanges on topics such as taxes, working permits, and the development of production sites are held with municipalities and authorities.

a) Percentage of Total Employees Covered by Collective Bargaining Agreements

In total, 7.5% (2022: 7.5%) of all employees are covered by collective bargaining agreements.

b) Determining Working Conditions for Employees Not Covered by Collective Bargaining Agreements

For employees not covered by collective bargaining agreements, the working conditions and terms of employment are determined by local labor law regulations.