Focus Topics – Respect for human rights
Upholding human rights
Impacts, risks, and opportunities
Impacts
At Zehnder Group, we recognise the importance of human rights in every aspect of our operations. Our commitment to upholding human rights positively impacts working conditions within both our operations and our supply chain. By promoting fair labour practices, ensuring safe working environments, and supporting workers’ rights to association and collective bargaining, we strive to foster a responsible and ethical work environment. Additionally, our products, particularly those that improve indoor air quality, contribute to the right to health, benefiting the well-being of our customers.
However, we are aware of the human rights risks within our supply chain, particularly in raw material extraction, where there is a potential risk of child labour. Similarly, concerns about forced labour, especially among vulnerable groups such as migrant workers, persist in sectors like mining and electronics manufacturing. Environmental degradation caused by pollution and climate change can further affect the rights to health, food, and water for communities located near our production sites. Workers in our supply chain may also face hazardous working conditions, including exposure to toxic substances or unsafe machinery, and there are ongoing risks of workplace discrimination and harassment, particularly in regions where legal protections for workers are weak.
Risks and opportunities
The global nature of our supply chain, especially in high-risk regions, presents significant challenges in ensuring that human rights are respected. These include the risks of forced labour, poor working conditions, and environmental harm. Failing to address these risks could result in reputational damage, legal challenges, and the loss of business opportunities.
Despite these risks, there are also important opportunities for Zehnder to improve responsible procurement by enhancing supplier screening and increasing audits to manage human rights risks more effectively. By engaging with stakeholders, including employees, suppliers, and local communities, we can gain valuable insights that help us better understand and tackle these concerns. There are also opportunities to innovate in our human rights practices, such as developing sustainable products and increasing transparency across our supply chain.
Management approach
Zehnder Group’s strategy involves a comprehensive Human Rights Due Diligence approach, focusing on the proactive assessment and management of human rights risks and impacts across our operations and supply chain. Our strategy is aligned with international standards such as the ILO Conventions, the ILO-IOE Child Labour Guidance Tool,1 and the UN Guiding Principles on Business and Human Rights.
Zehnder’s Human Rights Due Diligence framework
We have systematically assessed our performance across the six core elements of Human Rights Due Diligence and set clear goals and measures to enhance our commitment to human rights. In 2023, we introduced a standalone Human Rights Directive, setting clear goals and measures to enhance our commitment to human rights. This directive prioritises key risks within our value chain, such as workplace discrimination, living wage disparities, modern slavery, and OHS. Throughout 2025, Zehnder will focus on implementing targeted measures to address these risks, ensuring continuous improvement through regular tracking and public reporting of our Human Rights Due Diligence efforts. Furthermore, we are committed to increasing access to grievance mechanisms to maintain the highest ethical standards and transparency.
In addition to our Human Rights Due Diligence framework, Zehnder has integrated human rights considerations into several existing policies. These include the Anti-Harassment Directive and the Diversity, Equity, and Inclusion Directive, which promote fair treatment and inclusivity within our organisation. Our local OHS policies ensure safe and healthy working environments for our employees. Regarding our supply chain, the Zehnder Group Code of Conduct, the Supplier Code of Conduct, and our Modern Slavery Statement (UK only) are central to maintaining ethical practices.
Through comprehensive risk and impact assessments, Zehnder has identified several salient human rights issues, including child labour, modern slavery, forced labour, and the environmental impacts on human rights. These risks are particularly concentrated in areas like logistics and end-of-life treatment. Based on the severity and likelihood of these risks, Zehnder has established specific measures to address them. Over the next two years, we will prioritise the prevention of workplace discrimination, ensure living wages are met across our operations, address modern slavery risks, and enhance OHS standards.
To ensure that these measures are effectively implemented, Zehnder has integrated Human Rights Due Diligence responsibilities into its governance structure. Oversight is provided by the Steering Committee, the CEO, and the Chairman of the Board of Directors. Human rights considerations are embedded into the company’s strategies, policies, and processes across all departments to ensure that they are aligned with our sustainability goals. The Group Sustainability team, in coordination with the Group Executive Committee, manages these efforts alongside departments such as Legal and Compliance, HR, Procurement, and Logistics, ensuring that human rights are upheld consistently across all operations and the supply chain.
Child labour and conflict minerals
In line with Swiss regulations on due diligence obligations and transparency concerning minerals and metals from conflict areas,2 as well as child labour, we address these issues within the broader framework of our Human Rights Due Diligence.
With respect to child labour, as explained above we are following international standards and therefore comply with the equivalent provided by Swiss law3.
Regarding minerals from conflict-affected areas, we have conducted assessments in accordance with the Ordinance on Due Diligence and Transparency in relation to Minerals and Metals from Conflict-Affected Areas and Child Labour. While our total imports are below the threshold values, we remain committed to reducing the use of conflict minerals and ensuring that our materials are sourced responsibly, avoiding materials from conflict-affected regions whenever possible.
1The ILO-IOE Child Labour Guidance Tool is a resource developed by the ILO and the International Organisation of Employers (IOE) to help companies identify, prevent, and address child labour in their operations and supply chains.
2Tantalum, tin, tungsten, gold (3TG), as defined by regulation (EU) 2017/821
3As defined in CO Art. 964j Para 4 and Ordinance on Due Diligence Obligations and Transparency Regarding Minerals and Metals from Conflict Areas and Child Labour Art. 9 Para 1
Implementation and outlook
To implement the management approach and policies outlined above, we set an ambition supported by specific targets and tracked through defined KPIs.
Targets
Ambition: Apply a Human Rights Due Diligence approach and respect the UN Guiding Principles on Human Rights
Target: Set up a Human Rights Due Diligence risk management process and implement a roadmap based on the UN Guiding Principles on Business and Human Rights
- Status: Implementation of the Human Rights Due Diligence framework is underway, with several risk-based and process-oriented measures on track. These include the development of a human rights directive, a risk assessment framework, and employee training. The Anti-Harassment Directive has been fully implemented. Notably, 90% of suppliers, including subcontractors, have now signed the Supplier Code of Conduct, starting at 50% earlier this year, with a specific focus on smaller service providers, particularly in transport and logistics. Despite this progress, the planned in-depth risk assessment involving drivers in transport and logistics has not been conducted due to resource constraints.
- Outlook: In 2025, we will focus on further integrating Human Rights Due Diligence into existing processes and expanding training sessions, including through the Sustainability Ambassador Programme. Monitoring and adjustments will prioritise enhancing risk analysis mechanisms and grievance feedback systems to align with the UN Guiding Principles. The Living Wage programme for North America is scheduled for 2026, with preparatory activities expected to begin in 2025.
Ambition: Minimise the use of rare earth and conflict minerals consumption in our products and production processes
Target: Assess our main direct high-risk material supply chains by country of origin
- Status: Efforts to identify the sources of iron used in steel manufacturing have faced delays, with limited progress in 2024. Supplier engagement has continued throughout the year, but progress has been limited due to persistent challenges. Many suppliers are either unwilling or unable to provide detailed information on the origin of their raw steel, which has hindered the verification process. While Zehnder remains committed to discontinuing the sourcing of steel from conflict-affected and high-risk areas by 2025, no such cases have been identified to date.
- Outlook: Moving into 2025, the focus will remain on strengthening engagement efforts with suppliers to secure the necessary transparency around sourcing. Achieving full traceability and compliance will require ongoing dialogue and collaboration, with priority placed on identifying alternative suppliers if current partners cannot meet the requirements.