Social

Policies

ESRS 2 MDR-P; ESRS 2 SBM 3; G1-1; S1-1; S1-2

At HUBER+SUHNER, we are committed to managing material impacts on our workforce through a comprehensive range of policies. They are designed to identify, prevent, and mitigate potential risks and impacts, while also addressing potential opportunities for improvement. Each policy is owned and approved by the relevant functions.

Our Code of Conduct as well as Social and Human Resource Policy emphasise our commitment to fostering respectful interaction and preventing any misconduct in the workplace. We are also dedicated to upholding fundamental human and labour rights, guided by international standards such as the International Bill of Human Rights, the International Labour Organisation (ILO), Declaration on Fundamental Principles and Rights at Work, the UN Guiding Principles on Business and Human Rights, and the Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises. These commitments include freedom of association and collective bargaining, the elimination of forced and child labour, non-discrimination and equal opportunity, fair wages, and secure employment.

The Social and Human Resource Policy is reinforced through regular communication on our intranet and other channels. Our Code of Conduct is supported by training and regular internal and external communication to ensure all employees understand and adhere to our ethical standards and practices.

We are committed to ensuring the health and safety of all employees by adhering to international principles and local requirements, while continuously improving our occupational health and safety (OHS) management system. The company proactively identifies and mitigates workplace accidents and promotes safety both in and outside of the workplace. Our OHS system and policy adhere to the ISO 45001 standard, ensuring continuous improvement of our health and safety practices. The policy outlines a structured approach to hazard identification, risk assessment, and proactive management.

Our compliance system also includes a grievance mechanism via an independent and secure whistleblowing platform provided by a third party. The platform offers all employees worldwide a reporting channel to easily raise alleged violations or breaches of the Code of Conduct or our Social and Human Resource Policy by phone or in writing. For further information on grievance mechanism refer to G1-1.

Targets

ESRS 2 MDR-T; S1-5

Our strategy was developed with input from the Human Resources (HR) department, employee representatives, the EGM, and the the BoD. Where relevant, targets were discussed within the relevant sustainability communities that include representatives from various sites. Alongside our day-to-day activities, we prioritise three key management objectives aligned with the identified IROs, each

supported by specific targets. All our IROs positively impact our employees.

Ensuring a healthy and safe work environment: In 2021, we set a target to reduce our LTIR to ≤3 and remain committed to maintaining this goal annually going forward.

Fostering a skilled workforce with an agile mindset: In support of our commitment to employee development, we have set an annual target of ≥16 training hours per employee annually.

Maintaining a workforce with a balanced mix of internal and external career paths: We aim to fill 40–60% of management and expert roles through internal promotions each year, with the remainder recruited externally. This balanced approach supports the development of internal talent while adding new ideas and skills from outside the company.

Actions and resources

ESRS 2 MDR-A; ESRS 2 MDR-M; S1-4

Our policies and processes provide a clear framework for minimising risks and driving positive outcomes. To support our key management objectives, we not only set clear targets but also maintain a Group-level activity list, reviewed quarterly, to track progress and performance.

For these initiatives, we leverage various organisational resources such as HR and talent management, dedicated training, and OHS teams to create a positive work environment and attract and retain skilled employees. As these efforts are part of daily operations, they are classified as operating expenses (OpEx), not capital expenditures (CAPEX).

Fostering a healthy and safe work environment: We are dedicated to protecting our workforce by promoting a strong safety culture, enhancing hazard identification and risk management, and aligning globally with ISO 45001 standards. OHS training is embedded in onboarding and reinforced through regular training and awareness campaigns. We use a standardised process for hazard identification and implement site-specific action plans to mitigate risks. Continuous employee engagement and routine safety drills drive ongoing improvement across sites. Global knowledge sharing and adherence to local regulations support consistent and effective safety practices.

Fostering a skilled workforce with an agile mindset: To develop and maintain a skilled and agile workforce, we focus on effective onboarding, continuous training, career development, and retention initiatives. These include internal mobility opportunities and ongoing learning programmes that equip our employees with the core skills and knowledge needed for both current and future roles. We support new hires with structured onboarding, while our internships and apprenticeship programmes are designed to develop early-career talent.

A diverse, multi-stream training portfolio fosters a learning culture, combining technical, soft skills, and leadership development.

Among many other trainings, regular cybersecurity training helps employees stay informed on evolving threats, protecting both company and personal data. Programmes like GoLean! promote operational excellence and digital adoption.

Maintaining a workforce with a balanced mix of internal and external career paths: We are committed to creating a workplace where employees feel valued, supported, and empowered to grow. Our efforts focus on enhancing engagement and satisfaction while addressing the root causes of unwanted turnover.

Targeted retention strategies, informed by exit interview insights and regular salary benchmarking at our larger sites, help address turnover and strengthen employee engagement. Additionally, individual development paths and talent initiatives support both retention and employee growth. Regular employee surveys and open feedback channels guide improvements, while our corporate values and leadership principles shape a strong, inclusive culture. To support well-being and engagement, we offer competitive benefits and a platform for continuous improvement through employee-driven ideas, with a special focus on our production teams. Community engagement initiatives connect employees to a broader purpose.

Community engagement: We aim to ensure that our practices do not cause or contribute to significant negative impacts on our workforce and the communities where we operate. Local teams lead community initiatives tailored to regional needs, following our global framework. In 2025, 217 community projects were supported with 17 of HUBER+SUHNER Group companies participating. The projects were funded with CHF 521’000 from both the operating business and the HUBER+SUHNER Foundation.

Engagement

ESRS 2 MDR-A; S1-1; S1-2; S1-3

Engaging with our employees is a priority for HUBER+SUHNER. Engagement for us comes in various forms and taking into account different local operating conditions and regulations, we create and maintain trust with trade unions via collective bargaining and works council agreements. Employee representatives are engaged at local levels, with dedicated meetings represent interests of workers on workplace-related issues and negotiate with management. The CHRO, part of the EGM, oversees all engagement initiatives.

We value employee feedback and regularly gather insights through a biannual global survey. The results are analysed by the EGM, managers, and teams to identify strengths and areas for improvement. In addition, we have a sounding board comprising of employees from various levels across segments and corporate functions. This group meets at least once a year with the EGM to provide diverse perspectives and insights, helping to identify potential challenges and opportunities, and supporting informed decision-making.

As part of our continuous improvement efforts, employees in production are encouraged to submit ideas, which are reviewed by department heads and local idea management teams. Decisions are communicated transparently through idea boards, and effectiveness is monitored based on participation levels, implementation rates, and timelines. In particular, we promote strong health and safety practices by actively involving employees in consultation processes at all production and warehousing sites.

Metrics

We track effectiveness of our actions through KPIs such as training hours, management and expert-level positions filled by internal candidates, and LTIR. Quarterly sustainability community meetings review these outcomes, fostering transparency, accountability, and ongoing dialogue across the organisation.

Employee characteristics

ESRS 2 MDR-M; S1-6

The following section provides an overview of the characteristics of HUBER+SUHNER employees (headcount (HC)). For related information, refer to the Key Figures in the financial statements.

Table 9: Number of employees (HC) by country

The number of employees who left the company in 2025 was 595. Our employee turnover rate is 15%.

In 2025, we achieved our target by filling 52% of management and expert-level positions through internal promotions, in line with our objective of 40–60%.

Table 10: Employee (HC) by contract type and gender

Our workforce is to a large extent made up of permanent employees, which supports attracting and retaining a knowledgeable and experienced workforce. This structure enables us to consistently invest in employee development, ensuring continuity and operational efficiency.

Table 11: Employee (HC) by employment type and gender

Diversity

ESRS 2 MDR-M; S1-9

In 2025, women accounted for 43% of the workforce. Women held approximately 31% of managerial positions, with representation also above 30% at Board and top management levels.

Table 12: Employee gender distribution

Table 13: Employees (HC) by age groups

Social protection

ESRS 2 MDR-M; S1-11

Both employees and non-employees in our workforce are covered by social protection programmes or specific benefits for income loss from sickness, unemployment, injury, disability, parental leave, and retirement, with limited exceptions. In India, (11% of the workforce), no governmental unemployment and retirement coverage exists, and HUBER+SUHNER offers no alternative programme.

Working hours at all our sites comply with or are less than the legal work week or industry standards. HUBER+SUHNER has implemented flexible working hours in most production sites, determining working hours on an annual or multi-year basis.

Training and skill development

ESRS 2 MDR-M; S1-13

As part of our regular performance and career development process, we regularly assess each employee’s internal and external training needs.

Table 14: Participation in regular performance and career development review

In line with our 2025 goal of providing each employee with 16 hours of annual training, we delivered an average of 15 hours per employee and remain committed to meeting this target.

Table 15: Average number of training hours per employee

Non-employee characteristics

ESRS 2 MDR-M; S1-7

The total number of non-employees in the workforce at HUBER+SUHNER was 976. The total number of self-employed people was 14 and the number of temporary employees from an employment agency in the workforce was 962. The temporary agency workers, who are not part of the core workforce, primarily serve in production roles. They were engaged to support periods of increased workload or to cover for employee absences due to illness or vacation.

Health and safety

ESRS 2 MDR-M; S1-14

In 2025, an LTIR of 6 was recorded, exceeding the target of ≤3.0 and representing a significant increase compared with 2024, primarily attributable to two sites. The severity rate decreased to 60, indicating a general reduction in injury severity. We take this matter seriously and are reviewing the contributing factors and initiating targeted actions at the relevant sites.

In 2025, our entire workforce was covered by an OHS management system. Of these, 35% were covered by an externally certified system, with two additional sites having achieved certification in 2025.

Table 16: Occupational health and safety metrics

Methodologies and assumptions

ESRS 2 MDR-A; G1-1; S1-3; S1-6; S1-11; S1-13; S1-14

Headcount data – by country, gender, contract type, and employment type – is based on figures from our internal HR management system recorded in December of the reporting period. This number encompasses both permanent and temporary HUBER+SUHNER staff, including individuals who are currently on leave.  Temporary employees refer to those with a HUBER+SUHNER employment contract for a limited duration or to those working on project-based work, typically under 1’000 hours or one year. Unlike the Financial and Management Reports, we include temporary agency workers with a HUBER+SUHNER contract, but exclude apprentices from the employee count.

Countries where HUBER+SUHNER has at least 50 employees are listed separately in Table 10. The remaining employees are consolidated under the category “Other.”

Non-employee workers include internships, apprenticeships and persons provided by companies mainly engaged in employment activities. Headcount data for non-employees is equally recorded in our HR management system.

Managerial positions are roles where a person oversees the job functions of another person or a group of people.  Top Management refers to our Extended EGM, comprising the CEO, the three market segment Chief Operating Officers (COO)s, the CFO, Chief Human Resources Officer (CHRO), Chief Information Officer (CIO), Chief Communications Officer (CCO), and the Head of M&A and Group Strategy.

Turnover calculations are based on the December headcount of the reporting year. The annual employee turnover rate is calculated by dividing the number of employees who left the group during the reporting period by the average number of employees for the same period.

Participation in performance and career development reviews is tracked through our HR management system. Where complete data on training hours, especially for external programmes, is unavailable, estimates are derived from associated costs.

We report the total number of lost-time injuries (LTI) sustained by our employees during working hours. An LTI is defined as any injury sustained by an employee while on the job that prevents them from performing their duties for at least one full day or shift. The number of days lost to work-related injuries represents the total calendar days our workforce was absent due to injuries or fatalities resulting from work-related accidents. This includes both the first and last full days of absence. The LTIR is calculated by multiplying the number of LTIs during the reporting period by 1’000’000, then dividing by the total number of hours worked by production employees. The absence rate due to sickness is calculated by dividing the total number of hours absent due to sickness by the total planned working hours. Fatalities refer to the number of employees and other workers at our sites who have lost their lives due to work-related incidents or occupational illnesses. We are currently unable to reliably capture non‑lost‑time injuries globally and will continue improving our data quality. OHS data, particularly LTIs, are continuously monitored at the site level and reported to headquarters on a quarterly basis.