ESRS S1 Own workforce [S1] Own workforce

Our impacts, risks, and opportunities [S1 SBM-3] Material impacts, risks, and opportunities and their interaction with strategy and business model

During the materiality analysis, we identified significant impacts, risks, and opportunities (IROs) related to working conditions, equal treatment and opportunities, and other labor-related rights. These IROs are systemic and not related to individual incidents.

Own workforce includes both employees in an employment relationship with Fresenius and external labor. The Fresenius Group also employs various groups of workers or external workers. The identified actual or potential impacts, risks, and opportunities generally cover all groups. Additional explanations of significant impacts on employee groups are provided when they have been identified specifically for defined activities. The Fresenius Group has not identified any new groups among the company’s workforce that are more affected or could be more affected by negative impacts, risks or opportunities than the rest of the workforce in the context of the materiality analysis. Insofar as there are groups of people who, because of their vulnerability, are particularly in need of protection, e.g. through legal requirements to be met by the company, management approaches or guidelines have already been established prior to the materiality analysis.

Working conditions

With a variety of activities, guidelines, and initiatives, we want to create good working conditions for our own employees and promote their well-being, health, and safety at work. In addition to fair wages, depending on the business segment and individual market requirements, additional components or access to discounted offers, e.g. health programs, are offered, which can contribute to the financial stability and general well-being of our employees and their families. Social dialog plays a central role in this, as we most often incorporate the opinions of our employees into our decision-making processes. Freedom of association and co-determination can also reduce the power imbalance between Fresenius and its workforce and enable a fair dialog. All of this means that we can have an actual positive impact on our own workforce. At the same time, good working conditions are crucial to our ability to compete successfully for skilled workers in the industry. By setting high standards globally in our guidelines, we can not only increase the motivation and loyalty of our employees, but also have a positive influence on the respective working conditions at our locations.

For Fresenius itself as an employer, appropriate and fair working conditions present financial opportunities in the medium-term: They are the basis for long-term employment and the lowest possible absentee rates, which can influence general personnel costs in our favor. In addition, low fluctuation can lead to lower recruitment and induction costs for new hires. Positive public perception of our working conditions can also strengthen our employer brand. It also makes it easier to recruit qualified employees. Subsequently, appreciation and regular training for the continuous qualification of employees make an important contribution to maintaining or even improving the quality of the work performed. This can also support engagement and creativity, and thus contribute to Fresenius’ success.

Working conditions in healthcare facilities and production plants are different within the respective functional areas and also include shift work and weekend or public holiday work. Even if all legal obligations are observed and appropriate measures and initiatives are taken, there are potential short-term negative impacts on the health and safety of our employees, e.g. through accidents or (mental) illnesses as a result of high workloads. Furthermore, inadequate working conditions for our own employees in our operational entities may mean violations of applicable internal guidelines or external regulations, such as regulatory requirements or codes of conduct of business partners. We counter this by implementing suitable control and protective measures.

Poor working conditions can result in high sickness rates and high employee turnover, e.g. due to inadequate employee management and associated higher personnel costs. These can also lead to errors that may result in property damage, defective products, or inadequate services. This may result in short- to medium-term financial burdens for Fresenius. Indirectly, such grievances also entail the risk of a shortage of qualified personnel, which could also present a competitive disadvantage. If legal and compliance cases should arise regarding working conditions at Fresenius, this could also pose a reputational risk for business partners, causing them to refrain from working with us in the worst case. In addition, it is possible that work-related accidents and injuries could result in high costs, posing a short- to medium-term financial risk for Fresenius.

Equal treatment and opportunities for all

At Fresenius, we promote international and interdisciplinary collaboration as well as diversity and inclusion throughout the Group. Various actions are aimed at creating a healthy and discrimination-free working environment for all employees. We also keep minorities and other groups at risk of discrimination in mind. This is a result of the respective national legal requirements and is implemented by us, e.g. through representative bodies for severely disabled employees in Germany. The working environment we strive for should enable our employees to integrate well and thus pursue their personal professional ambitions. Equal treatment and respectful communication can create open and trusting dialogs; they form the foundation for a culture of further education and feedback from which everyone involved should benefit. We are thus seeing actual positive impacts in terms of equal treatment and equal opportunities for our employees.

Other work-related rights

As set out in our Code of Conduct, acting ethically and responsibly is part of our corporate responsibility. This includes respecting internationally recognized human rights, social standards, and ethical principles. We are guided by international standards and applicable legislation, taking into account local market criteria.

Based on a conducted risk analysis, violations of human rights, e.g. through discrimination, a lack of occupational health and safety measures, non-respect of working hours and rest breaks, or a failure to respect the freedom of association, have a significant impact on our employees and also pose considerable medium-term financial risks – for example if they lead to lawsuits and we incur high legal costs as a result. Furthermore, potential reputational damage can affect both business and capital market relations, putting Fresenius at a competitive disadvantage. This also includes potential cases of human rights violations, which we aim to avoid through our management approaches in the area of human resources and respect for human rights in the value chain. Based on our risk analyses carried out so far, child labor and forced labor are not relevant issues for our own businesses or workforce.

Our approach [S1-1] Policies related to own workforce

Global concept of human resources

As part of the ongoing #FutureFresenius transformation process, we established the new Group Human Resources function in the second half of 2024. This combines the Human Resources functions of Fresenius Corporate, Fresenius Kabi, and Fresenius Helios. A newly formed management team expands the previous competencies and now takes on the global management of important human resources issues. The roll-out of the respective changes in governance structure will be conducted step-wise starting in 2025.

The new organization is based on what is known as the Employee Journey, i.e. comprehensive support of employees from the recruiting and selection process, through further development, to the point at which they leave the company. We want to provide our employees with the best possible support in the various phases of their careers while also promoting their commitment and development. At the corporate level, global Centers of Excellence (CoE) have been formed to focus on key human resource topics such as Talent & Leadership or Total Rewards. Our HR (Human Resources) Business Partners work at the interface between the HR department and our business segments. They advise on HR matters and translate business strategy into HR needs at the global, national, and local level. Together, we strive to build an effective HR organization that focuses on innovation and collaboration.

Our working environment is characterized by regulatory changes in the industry, but also by increasing digitalization, cost pressure in healthcare, and the resulting need for greater process efficiency. By setting up a global HR function, we want to ensure that the future and identified impacts, risks, and opportunities under these circumstances are adequately addressed. We have initiated an organizational transformation, and the associated measures will be implemented from 2025. These are derived from the results of the employee survey, and the main HR metrics, as listed in this topical standard in the section Our actions. We have also incorporated current HR-related market trends into the development of our organizational transformation. We have announced the ongoing changes on the Group intranet and will continue to provide updates through internal communications.

Within the Management Board, the Sustainability Board is responsible for managing strategic Group-wide targets and projects in the area of human resources. The new central human resources organization described above has been in place since September 1, 2024. The Chief Human Resources Officer (CHRO) of the Fresenius Group reports directly to this Member of the Management Board. The existing reporting and control processes shall ensure that adequate reporting lines are or will be established to identify, monitor, manage, and oversee impacts, risks, and opportunities. Until then, the operational implementation will take place within the business segments or their divisions. The management concepts for the company’s own employees are the responsibility of the respective management functions and are anchored in the local organizations.

Responsibility for personnel issues is regulated, for example, by a business allocation plan. In the Group Human Resources Leadership Team of Fresenius, the personnel managers and responsible business segment functions and the Group Human Resources function discuss personnel issues on a monthly basis and make decisions on Group-wide projects and initiatives. The Sustainability Board member is regularly informed about this by the Group Human Resources function. We describe the cooperation between the Management Board, the Supervisory Board, and the employee representative bodies, e.g. the European Works Council, in the employee participation section of this topical standard.

Policies related to working conditions

The commitment of our nearly 180,000 employees worldwide forms the basis of our success. Their achievements, skills, and dedication help our business segments to hold leading positions in their respective markets.

The employees in the Fresenius Group have supported the changes that have occurred in recent years, partly due to the pandemic, in our production facilities, logistics and distribution centers, and, last but not least, in the hospitals. Whether it is recruitment, employee retention and development, or working models, the changes are also increasing due to the further digitalization of work steps and processes. Many of the innovations have proven to be so efficient and useful that we will retain them permanently. These include, for example, the virtual or hybrid implementation of training courses, programs, and team meetings. Initial interviews with applicants as part of the recruitment process are sometimes conducted virtually.

Internal communication on material sustainability aspects as described in this topical standard takes place continuously on the Group intranet and through appropriate communication to departments, groups of people, or all employees by email or other suitable communication channels. We provide employees with the most relevant guidelines and documents.

Group-wide guidelines and requirements

At Group level, the Code of Conduct, which we describe in topical standard G1 Business conduct, forms the basis for day-to-day activities. Further segment-specific guidelines are derived from it. Within the Fresenius Group, there are a large number of guidelines that determine the working environment and the scope of activities of our employees. The established guidelines serve to counter the existing and future impacts and risks, and promote opportunities, in an orderly manner. Measures derived from management concepts are based on them. The respective content is the responsibility of the business segments and specialist areas. Applicable collective bargaining agreements set further provisions regarding wage levels and other conditions in certain professional or tariff groups. Apprentices, student trainees, and interns generally work on the basis of employment contracts, i.e. training and internship contracts.

In 2023, we implemented a Group Policy on Social and Labor Standards. The guideline describes our global social and labor law minimum standards. We expect our employees and managers in all business segments of the Fresenius Group to comply with this guideline without exception. Lower standards are not acceptable. Should national laws or practices restrict or contradict the standards set out in this policy, we will nevertheless apply the policy to the extent permitted by local laws. In addition, we require third parties, such as contractors, consultants, suppliers, and intermediaries, as well as other business partners, to comply with this policy and to apply comparable social and labor standards for all employees in their own operations, including their supply chains.

Group Policy is based on internationally recognized human and labor rights, namely the Universal Declaration of Human Rights and the two most important human rights instruments derived from it: the International Covenant on Civil and Political Rights (ICCPR) and the International Covenant on Economic, Social and Cultural Rights (ICESCR), as well as the Declaration on Fundamental Principles and Rights at Work of the International Labour Organization (ILO).

For the content of the guideline, the participating functions Global HR, Labor Relations, and the Human Rights Office consulted with other relevant departments to help design the content of the policy. Furthermore, the requirements of various stakeholder groups, e.g. employee representatives, were considered in the development of the guideline.

Recruitment

In order to meet our future demand for qualified specialists, we use a variety of different tools to recruit staff. We monitor our working environment and competitive surroundings closely to identify potential. Furthermore, we use digital personnel marketing, organize our own recruitment events, and present the company at career fairs. In recent years, we have significantly broadened our range of personnel marketing activities. We also want to be perceived as a reliable employer that values integrity.

Temporary workers are deployed in the business segments to compensate for short-term staff shortages, particularly in the area of care, in medical services, or in the event of temporary fluctuations in capacity utilization in production. Temporary workers are also partially hired for temporary replacements such as parental leave or long-term illness, or for support in projects.

The search for employees focuses on the following fields of action: training of qualified personnel internally, advertising for skilled workers, and searching the international labor market. In part because the training situation in Germany has worsened, particularly in the care sector, we are focusing on training young talent and specialists, e.g. in our own training facilities. In the hospital segment, we use partnerships with universities and our own training centers to bring graduates into contact with our company at an early stage and build up a relationship with them.

Fresenius Helios plans to cover a large proportion of the nursing staff required through its own training or training cooperations. In Germany, the business segment has 35 of its own training centers, including 67 schools in the specialist healthcare professions. At the Helios Academy, the training centers, and other country-specific education and training courses offered by Fresenius Helios, employees can undergo basic, advanced, and further training – in both professional and personal skills.

Helios Germany, for example, takes part in official recruitment campaigns to find international employees. In addition, employees who have completed vocational training in the care sector abroad are supported, e.g. with applications or the search for language schools in Germany.

In Spain, trained nurses can specialize through a specific program – where they can choose between occupational health nursing, family and community health, obstetrics and gynecology, geriatrics, pediatrics, and mental health. Helios Spain has established partnerships with Spanish universities and offers training courses there or in hospitals in order to further develop the professional skills of nursing staff and recruit specialists. The company’s own nursing schools complement the offer by expanding their training portfolio and adapting it to new market requirements.

As part of its Vision 2026 business strategy, which is embedded into the Group’s transformation process under #FutureFresenius, Fresenius Kabi is further developing its HR organization as well as its talent retention and development strategies. By digitalizing tools for global recruitment and strengthening employee orientation, the company aims to increase its attractiveness as an employer with the goal of becoming an employer of choice.

In the reporting year 2024, Fresenius continued to face strong competition for personnel in the healthcare markets. Particularly in the hospital sector, it became apparent that positioning as an attractive employer, good working conditions, and flexible working models are essential in order to be perceived as an interesting company. The staff shortages continued, but were minimized by our focus on in-house training and development of our own employees, as explained in the following Employee development section. Human capital development programs should further support this progress.

Employee development

We offer our employees the opportunity to develop professionally in a dynamic international environment. To this end, we use different policies and actions for personnel development in our countries and regions – depending on their own customer and market structures. We constantly adapt our approaches to current trends and requirements and also take into account the feedback from employees. In addition to Group-wide mandatory training courses on the respective Codes of Conduct and on integrity, there are mandatory training courses on environmental management, occupational health and safety in the business segments, and, where appropriate, quality management. Digitalization is also playing an increasingly important role in the daily work done by our employees. Therefore, we integrate digital skills in alignment with the digitalization grade of the respective function. Segment-specific talent management and individual further training offerings for employees and managers are our other personnel development measures.

All employees who are directly involved in production, as well as employees who work in a supporting role (e.g. technical maintenance, IT) receive mandatory training in job-related good manufacturing, control, and distribution practice and in occupational health and safety and environmental protection. Further information can be found in the Training and skills development metrics section.

Succession Planning

The succession planning process was revised in 2024 and implemented in a structured manner throughout the Group. This year, the focus was on 42 key positions up to two levels below the Management Board. For these positions, both successors who can take on the corresponding roles in a timely manner in an emergency and potential successor candidates were defined.

In the reporting year 2024, there were changes in the Management Board and in the management and executive committees of the business segments. In the process, one position on the Management of Fresenius Kabi was filled externally.

Leadership development

We offer two cross-segment programs for our top management levels. Participation is based on qualification and is in line with applicable provisions.

In the reporting year, we conducted our fundamentally revised Top Executive Program Strategy × Finance × Leadership in collaboration with the Harvard Business School for the first time. A total of 31 executives participated, including 5 women (16%). A further implementation with 37 participants, including 8 women (22%), started in November of the reporting year.

Together with the Executive School of the University of St. Gallen, we offer the Strategy Execution, Change Management & Collaboration program, which is aimed at middle managers. A total of 54 people, 21 of whom are women (39%), participated in the two programs in 2024.

In addition, the operating companies offer their own development programs for their executives. The Corporate / Other segment and Fresenius Kabi, for example, offer two management programs aimed at both new and advanced executives – the New Leaders Program and the Advanced Leaders Program. In the reporting year, 49 executives took part. In our clinics in Spain, 424 employees participated in executive training programs, of which 72% were women.

In 2024, the segment Corporate / Other and Fresenius Kabi again conducted a joint learning program on Leadership for Women – Boost your Self-Positioning. The 133 female participants were able to strengthen their self-positioning using various topic modules and network across business segments by means of peer group coaching.

Fresenius Helios offers development programs for new managers at its clinics in Germany, such as trainee programs or start-up management. Furthermore, management development programs are offered and successfully implemented for experienced managers in specific professional groups and across professions.

Employee retention

Fresenius aims to offer employees at corporate and business segment level basic compensation that shall be in line with the market, transparent, and appropriate. This is defined, for example, on the basis of collective agreements or internal compensation guidelines. In addition, we offer various benefit components, for example employee benefit programs, profit-sharing bonuses, pension plans, compensatory time accounts, and tariff-based future payments. Not all elements are implemented equally within the Fresenius Group. However, they may be accompanied by local benefits depending on the market and employee requirements and regulatory provisions. When developing performance components, the focus is on ensuring that performance reflects the value of a position, as well as market trends for the respective career level and local requirements.

Due to the development of a global HR function and further reorganization measures within the Group, the management approaches to employee retention focus on creating structures that support the long-term success of the company. After successful implementation of the planned measures within the framework of #FutureFresenius, further employee retention activities can be implemented as needed. In addition, Fresenius is working intensively on positioning and strengthening its employer brand.

The employee participation program SHARE has been in place since 2023. Participants can purchase a discounted block of ordinary shares in Fresenius SE & Co. KGaA every year. The program also includes the distribution of an amount linked to the achievement of four specified targets. The first distribution took place in 2024, in line with the targets achieved in the 2023 fiscal year. In the reporting year, the new FlexBenefits budget was also introduced. Employees can choose between various benefits in the areas of health, mobility, or family and are thus supported with sustainable and customized benefits. Both offers are equally available to employees of the participating companies in the Corporate / Other segment, including Fresenius Digital Technology GmbH, as well as all German companies in the Fresenius Kabi business segment.

Flexible working models

The feasibility of flexible or mobile working models depends to a large extent on both operational requirements and local conditions. In recent years, part-time and flextime models, job sharing, and mobile working models, among other things, have been further made available for employees in administrative areas in particular.

Increasing digitalization of collaboration and work processes is supporting the implementation of more flexible working models. In order to acquire the necessary digital skills, employees receive training tailored to their needs. For more information on the digitalization of Fresenius’ products and services, please refer to the company-specific standard Digital transformation chapter.

At Fresenius Kabi in the United States, the extended paid family leave was continued in the reporting year. Eligible employees may take up to eight weeks of paid leave for qualifying family reasons. Qualifying reasons include time away after the birth or adoption of a child, including a child placed for foster care, or for the care of an immediate family member with a serious health condition.

The Fresenius Group also supports employees during career changes. Intra-Group transfers, including across national borders, are made possible by the internal publication of vacancies in the business segments. This is intended to retain employees within the Group. This is partly complemented by transition programs for people entering retirement, e.g. long-term accounts or reconciliation of interests negotiations in the event of terminations. The respective programs and measures are based on local requirements. There are individual agreements with employees or collective measures.

Policies related to occupational health and safety

As a healthcare Group, we not only bear responsibility for the well-being of our patients, but also for the health and safety of our employees. The Fresenius Code of Conduct stipulates that we take the necessary measures to protect our employees and prevent work-related accidents and illnesses. Creating a safe and healthy working environment is a priority for us. When it comes to health protection, prevention is our basic principle: We therefore provide our employees with comprehensive programs to promote their health and prevent work-related illnesses. The return of employees after an illness is regulated, for example, by the company integration management system.

We have introduced numerous management systems and measures throughout the Group and adapted them to the specific business models of the business segments. They focus on occupational health and safety in the production area as well as occupational health management for employees in healthcare facilities or in administration. All locations are also subject to the respective local regulations and laws. Compliance with these regulations is ensured at local level. In addition to statutory regulations, internal guidelines and directives such as management manuals and standard operating procedures also play a significant role in occupational health and safety. In addition to the Group-wide Fresenius Code of Conduct, the business segments have their own guidelines that regulate occupational health and safety, e.g. the Clinical Code of Conduct for the rehabilitation and nursing units and medical personnel in the healthcare services market segment.

The internal requirements are supplemented by corresponding internationally recognized standards for management systems such as ISO 45001 at some locations as well as other certifications in accordance with ISO or national standards. The overarching aim of the ISO 45001 management system is to continuously improve occupational health and safety management, align it with internationally recognized methods and ensure the effectiveness of existing procedures and systems. To drive this forward, we are consistently expanding the number of entities certified to this standard. We have the ambition to create a uniform occupational health and safety management system in all areas of the company in order to optimize occupational health and safety in a standardized manner.

The management systems as well as applicable occupational health and safety regulations and instructions for employees of the Fresenius Group also apply to individuals with temporary employment contracts. This ensures that people performing work on a company site or in our buildings are sufficiently protected.

Organization

Occupational health and safety at the Fresenius Group is organized on a decentralized and country-specific basis. The Management Board members responsible for the business segments are responsible for operational management. Responsibility and control for occupational health and safety lies with the respective Management bodies, committees, or management functions of the business segments and is anchored in the local organizations. They decide on the management approaches and regulate the responsibilities within the management, e.g. via a business allocation plan. The business allocation plan of the Management Board does not provide for a separate department for this purpose.

The occupational safety specialists in the business segments provide advice and support on all matters relating to occupational health and safety. This includes, for example, determining the need for risk assessments as well as their preparation, implementation, and effectiveness monitoring. At a local level, we work closely with the relevant accident insurance institutions and authorities in the interests of our employees and the temporary workers we employ.

Monitoring process

ISO 45001-certified sites as well as all clinics, subsidiaries, and service companies of Fresenius Helios in Germany have an occupational health and safety committee. In addition, national requirements are to be applied, which may include the provision to establish health and safety committees. At their regular, e.g. quarterly, meetings, these committees discuss identified risks and possible measures and review the effectiveness of the defined measures.

At clinic locations in Germany and Spain, local employee representatives have introduced similar committees.

Within the Fresenius Group, we use applications that help us to manage, evaluate, and control personnel data. The evaluations serve as information for various internal stakeholders, e.g. employee representatives. In this way, we create transparency with regard to the most important key figures. Furthermore, the key figures enable joint decision-making in the Human Resources Leadership Team, the derivation of measures where necessary, and an exchange of best practice examples in order to further develop HR management in our business segments. We also regularly record and report data on occupational health and safety – such as absenteeism, occupational illnesses, or accidents at work – e.g. monthly or quarterly, in order to identify deviations. If deviations occur, our specialists initiate a root cause analysis, evaluate the results, and implement corrective or preventative measures if necessary.

In addition, on-site coordination is primarily used to monitor the effectiveness of risk assessments and the effectiveness of local management approaches to occupational health and safety. In the healthcare services market segment, specialized occupational health and safety experts, occupational physicians and hygiene specialists check whether the requirements, e.g. for occupational medicine, occupational health and safety and their management, are being met in accordance with official regulations. In doing so, they continuously coordinate across business segments and develop improvement processes.

The Management Board is informed about occupational health and safety as part of risk reporting, i.e. about risks or incidents that could have a significant impact on rights holders and the operating business, reputation, or value chain of the Group and its market segments.

Risks and incidents are consolidated as part of the annual reporting at Group level. The Supervisory Board as a body is informed of the results at least once a year.

The commitment of some of our market segments’ to occupational health and safety is supported, monitored, or certified by external partners or supervisory authorities.

The local managers review our approach to occupational health and safety to ensure its continued suitability, appropriateness, and effectiveness and to identify potential for improvement, e.g. on an annual basis. Regular, in some cases annual, internal audits support the verification of data and management approaches for both ISO 45001-certified and non-certified entities. In this way, we ensure compliance with internal guidelines and regulatory provisions. The management system of our production facilities is audited and certified annually by TÜV Rheinland, for example. If other external institutions conduct audits, these are coordinated with local management.

Hazard assessments

An occupational health and safety (OHS) system includes processes for identifying hazards and deficiencies, assessing risks for potential incidents, and determining control, correction, or mitigation as well as prevention and improvement measures. These risk assessments are an important part of our occupational health and safety management.

Physical as well as mental or psychosocial health and safety risks are identified, analyzed, and evaluated at workplace level and reduced to an acceptable level through targeted measures, or even eliminated completely. The assessments include hazards that arise from work-related activities in the immediate vicinity of the workplace, as well as those that exist outside of the workplace but that may still affect workplace health and safety and health for employees. Risk assessments include all employees who perform or have access to routine and non-routine activities at workplaces. All current and planned workplaces, workflows, (OHS) processes, and tasks and their design are assessed – as are human factors such as individual behavior. The design of workplace infrastructure, equipment, and materials, whether provided by us or by third parties, is also included.

Corresponding risk assessments are carried out regularly – usually annually, but at least every three years – and in close consultation with the respective department heads and local experts responsible. In the production sector as well as in the hospital sector, employees are included in the risk assessment. Documentation is recorded in relevant safety and health protection documents. Key risk areas are identified, for example, via accident reports or employee input and undergo rigorous assessment. In addition, risk areas in clinics and in production are also examined preventively for potential hazards. Our assessments are implemented by the business segments in accordance with applicable legal requirements for risk assessments as well as the requirements for ISO 45001 certification and the implementation of necessary controls. In Spain, for example, sexual violence is part of the risk assessments as required by Spanish regulations.

In addition, processes are in place for dealing with particularly vulnerable employees. These include pregnant women, women who have recently given birth or are breastfeeding, employees with recognized impairments or disabilities, minors, and employees who are particularly susceptible (temporarily or permanently) to the risks associated with their work due to personal or socio-occupational characteristics or their physical constitution. The purpose is to take special preventive and protective measures through the health monitoring service tailored to their positions or activities – for example by adapting their workplace or transferring their activity to another one.

If an company uses biological agents, these substances are evaluated in accordance with applicable legal regulations. The corresponding internal risk assessment is recorded in a health and safety document. Preventive measures are established before the respective process is initiated. In addition, hazardous materials inventories are maintained in the clinical area.

Training

The Fresenius Group conducts regular occupational health and safety training to prevent incidents in its fields of operation. To prevent work-related injuries and occupational accidents, all new employees receive safety training at the very beginning of their employment, and standard training at least annually thereafter. For incident scenarios with high risks, training takes place more frequently. Helios Germany, for example, conducts quarterly drills on power failure scenarios, in different parts of the building each time.

In addition to the standardized approach to occupational health and safety, the business segments conduct training for specific workplace risks. In our clinics, employee health and safety training courses cover, besides general topics, specific areas such as hand hygiene, safely handling work equipment / medical instruments, protection against infections, as well as emergency prevention and response. Training provided at production sites focuses on, among other topics, safely handling work equipment and chemicals, and emergency prevention and response.

At Fresenius Kabi, the global OHS function checks not only compliance with applicable standards during internal audits, but also, for example, the training matrix and whether relevant training has been carried out. Any relevant deviations will be included into the local and global Corrective and Preventive Action (CAPA) list, to ensure any potential gaps are closed systematically. All sessions are available on the global EHS (Environment, Health, and Safety) and OHS intranet page.

Workplace reintegration management

In the countries in which we operate, laws, health and safety regulations, and collective agreements differ with regard to workplace reintegration, e.g. after a long illness. In general, the longer a sick employee is unable to participate in the work process, the more difficult it will be to reintegrate him or her. It is therefore important that an employee can return to work after sickness as quickly as possible, if necessary in the form of an adapted job or in a different role. Within the Group, various regulations are applicable, as the following examples show:

• At our locations in Germany, the statutory company integration management system applies. In Germany, employees who were unable to work for more than six weeks within a year (either one prolonged absence or multiple absences) are entitled to a reintegration procedure. In close cooperation with the person concerned, local site management coordinates with relevant employee representatives to assess the options for overcoming an employee’s inability to work and to provide preventive support. The aim is to make workplace reintegration flexible and as needs-oriented as possible, thereby ensuring that employees can return to work long-term. In a first step, affected employees are informed in writing about their options as well as about the structure and participants of an initial return-to-work conversation. Potential further measures resulting from this initial conversation can also involve additional groups and individuals – as agreed upon with the person concerned.
• In Austria, employees affected during their part-time employment receive a reintegration allowance from the competent social insurance institution in addition to the compensation to which they are entitled, which compensates for a large part of the financial losses.
• In Spain, a medical examination of the employees concerned is carried out by the Risk Prevention Service after longer periods of sick leave, to reassess the returning employee’s fitness for the workplace, which supports a quick return-to-work process. Furthermore, subsequent tailored measures to protect an employee’s health and well-being, provided by each respective local occupational health management unit, support the reintegration.
• In the United States, we provide a Short-Term Disability program for sick leaves. Eligible employees are granted up to 26 weeks’ leave of absence and receive between 60% and 100% of their normal wage. Upon their return, employees are retrained to facilitate their reintegration.
• In the Dominican Republic, our internal medical unit provides support to employees on long-term sick leave when needed in accordance with legal requirements. If employees are able to return to work, we offer them a position with the lowest possible health risk considering business needs and personal qualifications. In addition, affected employees are supported by the internal medical unit and labor relations for a certain period of time.

Patient safety

In addition to employee health and safety, patient and user safety at our facilities is also of great importance. For information on patient safety in the context of medical treatment, please refer to the topical standard S4 Consumers and end-users, section Health and safety. In the hospital sector, we have also implemented various measures to protect patients from hazardous situations outside of medical treatment. Such hazardous situations can be, for example, fires, power outages, or weather-related circumstances, such as ice on parking lots or hospital access ramps in winter. If such situations occur, appropriate emergency and fire protection plans are in place, for example to ensure the evacuation of patients. Hospital staff are prepared for such crisis situations through annual mandatory training. Business continuity plans for crisis situations complement existing safety measures.

Promoting health and well-being

Complementing our comprehensive occupational health and safety measures, we have developed further voluntary country-specific offers that promote employee health, well-being, and healthy lifestyles. These offers are organized on a decentralized basis so that they can be tailored to the needs of our employees as precisely as possible. On the one hand, our offers are aimed at promoting and maintaining physical health and include, for example, vaccination programs and preventive medical check-ups by our company doctors. On the other hand, there are contacts, hotlines, and information focusing on mental health issues. In Germany and Spain, Fresenius provides courses on nutrition and physical activity, as well as on emotional management. In addition, employees and their families receive external and anonymous psychological counseling if needed.

Policies related to Equal treatment and opportunities for all

At Fresenius, we promote international and interdisciplinary cooperation as well as equal opportunity and inclusion throughout the Group within the applicable provisions of the relevant jurisdictions in which we operate. The diversity of our markets and locations is also reflected in our workforce. In Germany alone, we have around 150 nationalities among our employees. We attach great importance to equal opportunities for all employees in the workplace as well as in the application, selection, and development procedures. In order to integrate equal opportunities into all processes and workflows and to overcome barriers or unconscious bias, the business segments develop concepts for equal treatment and opportunities for all that are adapted to the requirements of their respective business models and regions. In doing so, we comply with the relevant laws of the respective regions and, above all, we observe all anti-discrimination regulations. With this approach, we want to provide a framework that enables our employees to integrate into a workplace that supports them in pursuing their individual professional ambitions.

At Fresenius, we support equal opportunities for all and consciously oppose discrimination of any kind. The reasons for discrimination are far-reaching. This has led us to include a clear statement in our guidelines that we reject any form of discrimination. This includes all aspects required by the ESRS and applies equally to employees, business partners and their workforce, and patients.

Our dealings with each other are characterized by mutual respect: open, fair, and appreciative. We do not tolerate insults, humiliation, or harassment. This applies to both internal and external discrimination in everyday working life. Our managers have a special responsibility in this regard and serve as role models. These values and our commitment to diversity are set out in the Fresenius Code of Conduct, which is binding for all employees. It forms the foundation of our cooperation and corporate culture.

The elimination of discrimination is both a component of our Group-wide compliance programs and a key element of our Human Rights Program.

These concepts are supplemented by suitable controls, process documentation, training concepts, awareness-raising measures, and the use of whistleblower systems. In this way, we want to ensure that discrimination, including harassment, is prevented, contained, or combated in our operational business if we become aware of violations, risks, or impacts.

A key component of reporting is communication on the intranet and social media. These communication formats provide the Management Board with the opportunity to draw specific attention to initiatives for equal treatment and opportunities for all and to strengthen employee awareness of these issues. It is particularly important to include affected employee groups in this communication and to show them that we take their interests into account.

In addition, we also want to address potential new employees with our initiatives.

Internal and external requirements

In 2023, the Management Board signed the Diversity Charter for Fresenius. In doing so, the healthcare Group sent a visible signal of support for diversity and inclusion within its own company. The aim of the initiative is to promote the recognition, appreciation, and inclusion of diversity in the world of work in Germany.

At Group level, the requirements resulting from internal guidelines, e.g. the Code of Conduct, or external requirements, e.g. collective agreements, apply to the business segments. Collective agreements and works agreements also stipulate that all employees covered by them are entitled to defined benefits. Due to varying local legislation, these internal guidelines are important frameworks for enabling a tolerant and respectful working environment. In this way, we want to ensure that local laws are taken into account and that, as part of our business activities, we guarantee that people can work for us or be supplied with our products without fear of discrimination.

In addition to internal guidelines, all locations are subject to the respective local regulations and laws – in Germany, for example, the General Equal Treatment Act, the Pay Transparency Act, and the Works Constitution Act. Compliance with these regulations is ensured at local level. The relevant departments are responsible for communicating the requirements through specific training and checking their application through process documentation. In the area of recruitment, for example, incidents of discrimination can be prevented if experts who have previously successfully completed training on recognizing unconscious biases are involved in the processes. Further information on this topic is provided in the subsequent section Working environment.

At some locations, we are required by national law to draw up equality plans to promote equal opportunities, create pay transparency between men and women, and guarantee non-discrimination in the workplace. In 2024, around 70% of employees at Helios Spain were covered by equality plans.

Organization

On the Management Board, the Sustainability Board member is responsible for managing strategic Group-wide projects for equal treatment and opportunities for all. The Management Board members responsible for the business segments are responsible for operational management. The Management of the business segments shape their management approaches and regulate responsibility for equal treatment and opportunities for all, e.g. through an organizational chart. As part of our new global HR function, the Talent & Leadership department is responsible for equal treatment and opportunities among in human resources. In the Group Human Rights Leadership Team of the Fresenius Group, the HR managers and responsible functions of the business segments coordinate on HR topics on a monthly basis, decide on Group-wide projects and initiatives, and also exchange ideas on anti-discrimination issues.

In order to address existing and potential challenges in connection with equal treatment and opportunities for all in a context-specific manner, responsibilities have also been defined at regional level. Expert functions are responsible for implementing approaches and country-specific regulations.. Experts in the various departments develop training courses, communication materials, and programs in coordination with other Group functions.

Working environment

At Fresenius, the international and interdisciplinary work environment leads to intercultural teams coming together to drive improvements in patient care, optimize internal processes, and convince potential applicants of our corporate culture. An international and intercultural composition of teams – especially in our corporate functions – can facilitate cooperation. In many central functions, for example, there are employees who are responsible for different regions and are expected to provide the best possible support across different segments internationally.

In order to sustainably promote tolerance and appreciation within these teams in the long-term, it is not only necessary to have a corresponding culture that is exemplified by the management bodies; employees also receive training and further education on the topic of diversity.

Our aim is to increase employees’ awareness of equal treatment and opportunities for all, and value all people. In this way, we create a space for inclusion. To raise awareness of the issue of unconscious biases, we offer online training on this topic for employees and especially for managers in the Corporate / Other segment. This gives our employees the opportunity to learn how to question decisions and recognize unconscious thought patterns, stereotypes, and prejudices.

We want to support employees in all phases of life and in particular promote the compatibility of family and career – in the spirit of equality. We therefore offer them a wide range of opportunities for flexible working. The country- and location-specific offer depends on the applicable collective agreements and – if available – equality plans. Further information on flexible working models can be found in this topical standard in the section Policies related to working conditions.

Employee networks

Within the Fresenius Group, various employee groups have been formed. Employee groups are open to all employees regardless whether they are members of a targeted group. These networks are key, and support the Group’s aspiration to develop a work environment in which equal treatment and opportunities for all as well as appreciation go hand in hand. This aim is also reflected in the Diversity Charter.

Employees with disabilities

The Fresenius Group also employs people with impairments, some of which are severe disabilities – such as people who use wheelchairs, as well as those who survived cancer or, for example, live with diabetes, rheumatism, or depression. Collaborations, e.g. with sheltered workshops, also enable people with mental disabilities to work for us. Fresenius is committed to the inclusion of these people. We want to enable our employees to apply their knowledge and skills as fully as possible. In doing so, the respective local legal requirements must be implemented. As these differ significantly in some cases, management is decentralized and local.

In Germany, elections for representatives of the severely disabled are held every four years at Fresenius facilities where at least five severely disabled persons are employed on a more than temporary basis. All members of the company can stand for election to this office. We also have corresponding committees in our clinics in Spain.

Helios Germany has concluded an overall inclusion agreement with the division’s representative body for persons with severe disabilities. It strengthens the participation of (severely) disabled people and employees at risk of disability and promotes equal opportunities. Furthermore, it aims to prevent employees with (severe) disabilities from being discriminated against or socially excluded.

Helios Spain has dedicated programs for the recruitment, integration, and development of employees with disabilities. The business segment thus complies with the legal requirement in Spain for at least 2% of employees to be people with disabilities. Exceptions are possible and must be explained by the companies concerned before being accepted by the competent authority. Helios Spain has also signed an agreement with the representative foundation Fundación Integralia DKV to promote diversity in the division.

Monitoring process

The effectiveness of the measures addressing equal treatment and opportunities for all is discussed if risks have been identified or incidents have occurred that could have a significant impact on our employees, the operating business, reputation, or value chain of the Group and its business segments.

At Group level, HR-data on equal opportunity and inclusion is collected as needed, but at least annually, and communicated to internal stakeholders, e.g. employee representatives or the respective representatives of the severely disabled. In addition, the business segments have supplementary reporting processes, e.g. on a monthly or quarterly basis, to identify deviations from internal targets or objectives. If deviations from applicable provisions occur, the responsible persons initiate a root cause analysis, evaluate the results, and, if necessary, implement corrective or preventive measures to adhere to the respective legal provision in future.

Human Rights Statement and Human Rights Program

In our Human Rights Statement, we describe our commitment to respecting human rights and the associated environmental aspects in our own operation and in our value chain. Among other things, we are committed to providing a safe and respectful work environment, paying market-oriented, transparent and appropriate wages, and promoting equal treatment within our workforce and along our value chain. Further information on our Human Rights Statement and our Human Rights Program can be found in the topical standard S2 Workers in the value chain.

Dialog with own workforce and employee representatives [S1-2] Processes for engaging with own workforce and workers’ representatives about impacts

In recent years, we have established various dialog formats to strengthen communication between management and our employees – both at Group level and in the individual business segments. This allows the Management Board to provide employees with information on important issues personally. In addition, we promote our feedback culture and the constructive exchange of ideas. As explained in the section Our impacts, risks, and opportunities of this topical standard, we believe that a well established dialog with employees and employee representatives has a positive impact on good working conditions as well as equal treatment and equal opportunities. In the following, we explain various formats of involving employees, the concept, and, where applicable, their evaluation. Within the Management Board, the Sustainability Board member is responsible for the design of these formats.

Employee survey

Employees at the level of the corporate functions as well as our global locations have the opportunity to provide feedback and engage openly and directly with the company. In 2022, we introduced an annual Group-wide employee survey for this purpose. In this way, we regularly collect feedback from our employees on their working environment. We inquire about the strengths as well as about opportunities to improve. The aim is to obtain a picture of opinion and sentiment about working at Fresenius based on the survey results. Additionally, standardized questions on diversity, work-life balance, development, and compliance are asked across all business segments. In addition, the business segments can include their own questions, e.g. on teamwork, feedback culture, or appreciation.

The results of the survey enable us to identify potential for improvement at team, division, segment, and Group level (see section Employee engagement). The employee survey and the assessment of the Employee Engagement Index (EEI) are important tools for developing as an employer, attracting new talents, and retaining our employees in the long-term. Employee engagement is also related to relevant HR KPIs such as absenteeism, turnover, productivity, and customer care.

Exchange with employee representatives

Trust and cooperation between management, employees, and employee representatives is well established at Fresenius. It is an integral part of our corporate culture. Open and ongoing dialog between management and employee representatives, as well as trade unions, is important to us. At Group level, the Sustainability Board member is in exchange with the European Works Council (EWC) of Fresenius SE & Co. KGaA. At the regional or local level, the responsible specialist functions conduct the discussions with employee representatives as well as the trade unions.

Existing internal codes and guidelines include the commitment to respect international working and social standards. Fresenius respects the right to freedom of association and collective bargaining. This also includes the right of our employees to decide freely whether or not they wish to form an employee representative body or a trade union and / or be represented by such a body, in accordance with the law at the respective place of work. We are committed to an open and solution-oriented dialog between our employees and their representatives, and our management within the relevant legal and operational frameworks. This commitment is anchored in our Human Rights Statement. For more information, see the topical standard S2 Workers in the value chain starting, section Our approach.

Dialog at European level

In European countries, workplace representation bodies are organized according to national law. The business segments have overall responsibility for dealing with local employee representatives and trade unions at country or site level. Our discussions with these representatives focus on local and regional circumstances. Together with the employee representatives, we aim to find tailored solutions to the challenges in the different locations.

Fresenius has reached an agreement with the EWC, establishing a structured dialog with international trade union associations. On this basis, meetings are held once a year between representatives of the business segments, the employee representatives of the Supervisory Board, the EWC and the international trade union associations. In the reporting year, the meeting took place in November. The exchange was about activities relating to human rights due diligence, reorganization processes and their impacts on employees in the Group, as well as migration of skilled workers at Fresenius Helios.

The EWC represents all Fresenius employees in the EU and the EEA. It is responsible for their participation in cross-border measures, insofar as these have a significant impact on the interests of Fresenius personnel and affect at least two countries within its area of responsibility, such as the relocation or closure of companies or collective redundancies. The management informs and consults with the

EWC on the following topics, for example: the structure as well as the economic and financial situation of the Group, its anticipated growth, the employment situation, investments, organizational changes, and the introduction of new work and production processes. The EWC meets regularly once a year, while its executive committee convenes three times a year, partially in hybrid form. There was also one virtual extraordinary meeting of the Executive Committee in the reporting year and one on-site extraordinary meeting of the EWC. The European trade union federations IndustriALL and the European Federation of Public Service Unions (EPSU) attend the meetings at the invitation of the EWC.

The focus of the EWC in the past fiscal year was on the transformation process of #FutureFresenius and projects in the Group’s business segments for reorganization, e.g. measures in connection with the Vision 2026 strategy, the digital transformation, the Group-wide cost and efficiency program, and compliance matters relating to the Group’s human rights declaration, sustainability, and corporate social responsibility (CSR). The EWC also discussed the global engagement survey as well as international projects, such as those in logistics or the supply chain.

At its annual meeting, the EWC entered into dialog with the Management of Fresenius Kabi and Fresenius Vamed.

Regular training courses are held for the members of the EWC; in the reporting year, e.g., on the role of the European Union, European regulation as well as European elections. Through company visits, the members of the EWC regularly gain an impression of the various locations and interact with employer and employee representatives. In the reporting year, the EWC visited the European Central Bank. The Executive Committee was on-site at a Fresenius Kabi location in Verona.

The EWC elected six employee representatives to the Supervisory Board of Fresenius SE & Co. KGaA, including one representative of the trade unions.

Further dialog and feedback formats

To support dialog between management and employees, video messages from the CEO on relevant topics, for example, are published on the global intranet to encourage lively discussions. The other board members also communicate on new developments in their departments. Also, regular town halls are held in which members of the Management Board report on relevant developments in the Group. In addition, digital formats and on-site meetings foster the exchange between the CEO and top executives. Various dialog formats are used within the Group. We offer a standardized feedback discussion between supervisors and employees on performance, competencies, and development potential for our employees every year. It serves to strengthen the exchange on the individual development planning and promotion of the employees. In addition, it is intended to strengthen employee loyalty and reduce staff turnover. Furthermore, non-tariff employees agree their annual targets with their superiors as part of the appraisal interview. The superiors then evaluate the extent to which the targets have been achieved.

The various feedback and dialog formats are designed to ensure that the effectiveness of the collaboration between the company and its own employees is visible.

As explained in this topical standard, section Equal treatment and opportunities for all, there are groups of employees for whom additional representations have been established. Their perspectives are incorporated into the communication and are made accessible locally to those affected at a location through meetings held at least once a year, e.g. as part of a general meeting.

Reporting systems and impact management procedures [S1-3] Processes to remediate negative impacts and channels for own workforce to raise concerns

Reporting systems

In addition to the dialog formats described in section S1-2 Dialog with own workforce and employee representatives, we offer our employees various reporting systems for reporting violations of regulations with reference to employees, to the principles of the Fresenius Code of Conduct, our voluntary human rights commitment, and other possible misconduct. Our employees and external stakeholders, as well as external labor, can report information online and in various languages – anonymously, if necessary. Furthermore, as previously described, there is the possibility of informing the local employee representative body (works council), as far as they are established.

In addition, employees have the option of confiding in an ombudsperson in the event of conflicts or misconduct. At Helios Spain, incidents involving sexual and gender-based harassment can be recorded via a dedicated complaint protocol.

There are no Group-wide guidelines in the HR department on how procedures are to be carried out in order to implement remedial measures. We consider that such a framework must be very broadly defined in order to be able to reflect the respective individual criteria of the report. The basic principle for all procedures is that we must always ensure that all reports are followed up, especially if they indicate a possible significant negative impact on people in our workforce or circumstances that have contributed to such an impact. An assessment and subsequent evaluation of effectiveness is also carried out on an individual basis and is not conducted at segment or Group level.

We follow up on all reports quickly and carefully in order to put a stop to violations promptly and take measures – and to permanently eliminate abuses for the future. Further information on the processing of reports can be found in the topical standard G1 Business conduct, section Grievance and whistleblower mechanisms and on human rights incidents in the topical standard S2 Workers in the value chain, section S2-3 Due diligence procedures and reporting channels.

Reporting systems for occupational safety

We use notification systems or reporting processes for accidents at work to document and analyze all work-related accidents and incidents reported to us for our own employees and partly for temporary workers or other third parties working on our premises. Local management – at Fresenius Kabi, global OHS management – assesses these incident investigation reports. It decides whether technical improvements, additional working equipment, instructions, or further training are required to avoid reoccurrence in future and to improve occupational health and safety for employees. We also document relevant first aid cases and unsafe situations, including near misses. These are taken into account in the occupational health and safety analysis.

Work-related accidents are reported immediately in the respective systems as soon as they are known of and central functions are subsequently informed about accidents. Furthermore, we calculate the Lost Time Injury Frequency Rate (LTIFR) for internal reporting.

In accordance with legal requirements, all business segments document work-related fatal accidents in their respective internal risk management systems. They use locally defined reporting channels to inform the safety specialists directly responsible and, depending on process design and severity, regional or global OHS management functions as well. HR departments also immediately report serious and fatal accidents to the competent authorities and accident insurance organizations. Furthermore, as soon as work-related accidents with fatalities occur, we immediately review existing work processes and initiate a risk assessment.

In the hospital setting, the Critical Incident Reporting System (CIRS), which is described in topical standard S4 Consumers and end-users, section Health and safety, also applies for our employees.

Group-wide, our reporting systems enable the reporting of violations of internal guidelines on working conditions or occupational health and safety that could have a material impact on the company’s financial position or reputation.

Information on communication and accessibility of the whistleblower channels as well as our clear commitment to protecting whistleblowers from retaliation can be found in the topical standard G1 Business conduct.

Our actions [S1-4] Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions

In the 2024 reporting year, Fresenius examined in the area of safety whether central guidelines for measures in connection with resources should be adopted in relation to the identified impacts, risks, and opportunities. The company’s own business practices should not have or contribute to any material negative impact on the company’s workforce. The measures taken in the reporting year should also serve, among other things, to detect possible deviations from this ambition, e.g. by evaluating the results of the Employee Engagement Index.

Depending on the impacts, risks or opportunities, as described in the section Our impacts, risks, and opportunities, various procedures, e.g. status analyses, can be used to derive the necessary measures. For the planned Group-wide Safety Compliance Management System (Safety CMS), for example, an initial assessment of the current situation in the Group was carried out.

Safety Compliance Management System

Fresenius wants to improve the health and safety of its own employees and other people, such as patients, by introducing a Safety CMS. It is designed at Group, segment, and site level and is intended to cover other safety topics in addition to fire protection risks.

The elements of the planned safety CMS are based on the elements of a compliance management system in accordance with the audit standard for compliance management systems of the Institute of Public Auditors in Germany (IDW PS 980) and are documented in a Group-wide safety guideline. It is based on the following eight core areas:

• Objective
• Culture
• Risk assessment
• Program
• Organization
• Process
• Reporting
• Monitoring

The implementation of the Safety CMS should also begin with the introduction of the Safety Policy in 2025.

For the introduction of the Safety CMS, we sought external advice in the 2024 fiscal year and implemented initial measures for the organizational structure; the costs for this amounted to around €1 million. Further activities planned for 2025 are to be covered by internal resources. Possible necessary investments, e.g. in technical equipment, are not budgeted separately. The associated amounts (OpEx or CapEx) are part of the general expenses for maintenance or the planned investments in technical infrastructure.

Beyond these activities, Fresenius did not adopt any central requirements for measures in connection with resources for its identified impacts, risks, and opportunities in the 2024 reporting year. Where the business segments have implemented measures, examples are explained below.

Employee satisfaction

By quantitatively and qualitatively evaluating the results of our employee survey, we gain insights into the issues that are causing dissatisfaction among our employees, for example. However, the analysis also helps us to see the positive impact we have on our employees. Based on this, the business segments initiated or implemented their own measures in the reporting year. Fresenius Helios in Spain, for example, has set up committees for dialog between management and employee groups in order to incorporate their direct feedback into improvement measures. In addition, managers were trained in the areas of feedback and engagement, taking into account the results of the 2023 focus groups. The Corporate / Other segment has used insight groups to gather insights on the topics of manager support, communication, culture, and collaboration, and shared the results with the workforce.

To improve the EEI, the operating companies have implemented another action: From 2024, the EEI will be included in the target agreement for around 900 managers at Fresenius Kabi and also for managers at Fresenius Helios with a weighting of 10%. Each manager is also called upon to define and discuss measures with his or her team based on the results of the employee survey. In addition, Fresenius Kabi conducted global and regional workshops to address the findings and focus topics identified in the EEI results. The workshops also aimed to share best practices within the HR community. These actions were not managed centrally. Success will be measured by the individual results of the teams and functions and their overall contribution to the EEI next year. The process and the evaluation to derive this KPI is supported by an external provider.

Effectiveness of actions

There is a high degree of co-determination at Fresenius, both through employee representative bodies and through close cooperation with labor unions at the national and international level. Our goal is to avoid tensions between the company and the employee representatives by actively shaping co-determination. An intensive exchange with the employee representatives is also taking place as part of the ongoing transformation.

Fresenius reviews the effectiveness of measures or initiatives, e.g. by measuring employee satisfaction. Furthermore, the reports received through the whistleblower systems are a good indicator for initiating possible remedial actions, if necessary. For example, in the reporting year 2024, a guide to assessing the effectiveness of remedial actions was developed and worked out by the Group Human Rights functions. The guidance serves as a basis for evaluating any actions we take to remedy human rights violations. Information on actions related to human rights can be found in the topical standard S2 Workers in the value chain, section Our actions.

The actions described also serve to achieve the target for the EEI, among others. In addition, they also help to address impacts, risks, and opportunities presented. In 2025, no action item is planned that requires significant operational expenditure (OpEx) or capital expenditure (CapEx). If that changes, necessary resources are defined on a case-by-case basis.

Our goals and ambitions [S1-5] Targets related to managing material negative impacts, advancing positive impacts, and managing material risks, and opportunities

The Fresenius Group pursues segment-specific ambitions to improve the working conditions of its own employees. In doing so, we aim to consolidate the position of our business segments that focus on innovation in the healthcare sector. At the same time, we want to take account of the importance of the services they provide for society and attract new employees who contribute to the company’s success through their willingness to perform, their expertise, their experience, and their willingness to work together as a team.

Employee engagement

In the reporting year, another employee survey was conducted. As a Group-wide goal, we have integrated the EEI as an indicator in the short-term variable compensation of the Management Board and most members of the management of subsidiaries. A target is set annually. The stated goal for 2024 was to achieve an EEI of at least 4.33 for the Group. This value falls within a range of 1–6, with 6 being the highest. Progress is measured against the previous year’s figures. We do not measure the increase, but whether the target has been achieved, exceeded, or fallen short of. Once the survey is completed, a Group-wide Engagement Index is created from the three globally collected Employee Engagement questions. The index is the weighted average of engagement scores derived from a business segment’s entities included in the survey. The evaluation at the end of 2024 revealed an engagement index of 4.02¹ within the range of 1 (strongly disagree) to 6 (strongly agree). Thus, we did not achieve our target under the short-term variable Executive Board compensation.

The Supervisory Board of Fresenius Management SE, responsible for Management Board compensation, decides on the threshold for achieving the compensation targets. The decision is preceded by a discussion of the proposed target values in the Personnel Committee. The target value was developed by the former HR Steering Committee and presented to the Personnel Committee of the Supervisory Board of Fresenius Management SE. The target value of 4.33 was set as a realistic target value. For this, comparative values from the healthcare industry were consulted, for example. The proposal for setting the target value is made at the management level with the involvement of the responsible HR functions. The measures that are defined during the year to achieve the target are communicated annually in the Annual Report and during the year, as well as on the intranet and in the business segments as needed. In the reporting year, all active employees, for the first time in accordance with the ESRS definition of workforce, were included in the survey as of the reporting date June 30, 2024, and Group-wide exceptions (e.g., employees on long-termin absence) were defined. In addition, a uniform survery period was set and a common provider was selected to conduct the survey for all business segments. In this way, we aim to achieve the highest possible comparability between business segments.

Occupational health and safety – LTIFR

As part of our occupational health and safety activities, we report a Group-wide the Lost Time Injury Frequency Rate (LTIFR¹). Our fundamental goal is to avoid all accidents. We have also set a target LTIFR rate of less than 3.0 for Fresenius Kabi employees and contract workers.

We continuously monitor the progress made in achieving our goals and evaluate developments from year to year. The target value is based on the knowledge gained throughout the established internal reporting processes and the evaluation of the individual documented incidents.

LTIFR is discussed both within the Fresenius Kabi business segment and at the employee representative level. Serious accidents are communicated and discussed internally.

At Fresenius Kabi, occupational accidents are categorized according to their severity and reported to the responsible central OHS function and other relevant functions accordingly. This is how, for example, work-related accidents that result in at least one day of absence are reported to the central OHS function within two working days; other, less severe accidents without absence or with less than one day of absence are reported on a quarterly basis. Fresenius Kabi investigates accidents that lead to at least one calendar day of absence from work and documents the results in corresponding reports. We calculate the LTIFR from data collected on occupational accidents and their severity and use it as an indicator to measure performance. We also consider the lost time injury severity rate (LTISR²) in the analysis. Occupational health and safety reports are submitted to the Management and other relevant functions of Fresenius Kabi on a quarterly basis. Therefore, the LTIFR of Fresenius Kabi is an established key figure that is controlled, monitored, and collected by a central specialist function. If changes in the design of the management concept or findings from the ongoing assessment require a procedure for involving labor or employee representatives, this will be implemented in accordance with applicable legal and internal requirements. This was not the case in 2024. The calculation of the LTIFR and the target were not adjusted in the reporting year.

Fresenius Kabi and Fresenius Helios in Spain already use LTIFR as a performance indicator. Fresenius Helios in Germany collects LTIFR annually as part of defined key performance indicators that measure progress in the areas of environment, social, and governance (ESG KPI), but it is not applied for control purposes, e.g. in the context of remuneration.

The target of Fresenius Kabi was achieved. In the reporting year, the rate was 2.2.

¹ LTIFR: Number of work-related accidents resulting in at least one day of absence from work in relation to 1,000,000 working hours.

² LTISR: Number of days absent due to work-related accidents in relation to 1,000,000 working hours.

Equal treatment and opportunities for all

The Management Board welcomes the efforts within the business segments for more equal treatment and opportunities for all. It is our ambition to continuously develop our corporate culture and attract, promote, and retain talent. Different backgrounds, experiences, perspectives, and qualification can lead to better decision-making and outcomes and drive progress of an organization. In the business segments, we want to improve perception of equal treatment and opportunities for all, e.g. with training for employees and management. As part of the corporate culture, projects to strengthen these aspects are being developed and implemented.

By setting targets in line with applicable laws and reporting on them transparently, we aim to drive forward equal treatment and opportunities for all in our leadership positions. A clear goal also directs the focus to areas where action is needed. This enables us to implement effective measures.

Fresenius SE & Co. KGaA has developed d goals for the first and second management levels below the Management Board at the segment Corporate / Other in accordance with legal requirements in Germany: By 2025, the proportion of women there should be over 30%. In 2024, the proportion of women at the first management level was 26.3%, at the second management level 27.6%.

The key figures are collected annually and reported to the Management Board, including the trend over the last few years.

In November 2020, corresponding proposals were submitted to the Management Board. We took into account various German and European regulatory requirements. The Management Board approved the objective. Based on the employee data in the software we use to manage our HR data and processes, the responsible function within Group HR calculates the values achieved based on the criteria set by the Management Board. From these, we can deduce whether we have achieved or exceeded the target. The legally required targets are no strategic KPI for Fresenius. The company aims to ensure through equal treatment and opportunities for all, that individuals are valued, trained and developed based on their performance and competence.

Metrics

Characteristics of the employees [S1-6] Characteristics of the undertaking’s employees

At the end of the 2024 fiscal year, the Fresenius Group had 179,884 employees. From the 2024 reporting year, the number of employees (headcount) will be calculated in accordance with the definition of ESRS S1-6 and is therefore no longer comparable with the previous year. Additional functions or working contracts, e.g. internships, auxiliary staff, and working students, are also included. For metrics calculated by the headcount, all employees are counted as one, regardless of whether they have a full-time or part-time contract, including passive employees. We define employees as persons who work either full-time or part-time and have either a temporary or permanent direct contract with the company. The term employee does not include employment via third-party providers or temporary employment who do not have a direct employment contract.

In the 2024 reporting year, Germany and Spain will continue to be the two countries with a significant number of employees. Other countries each have less than 10% of employees as in Colombia, the Dominican Republic, and China.

The disclosure of the number of employees (headcount) in the annual financial statements differs in the 2024 reporting year from the disclosures in the Sustainability Statement, as the definition of employee groups is broader in accordance with ESRS S1 and includes other occupational groups that are not included in the annual financial statements.

Fresenius uses the following four gender categories for the gender breakdown of its employees: “female”, “male”, ”other”, and “undisclosed”. The breakdown by country only includes countries in which Fresenius has 50 or more employees representing at least 10% of its total number of employees.

In the market segment healthcare services, the proportion of temporary employees is over 15%. This is due to the need for compensating personnel shortages in nursing or among doctors by short-term employments. Often, we employe the same persons on a recurring base.

We categorize employees into three employment types: permanent, temporary, and on-call staff. Permanent employees have employment contracts for full-time or part-time work without a predetermined end date. Temporary employees work under time-limited contracts that expire either after a specific period or upon completing a defined task. Non-guaranteed-hours employees are engaged without a commitment to a minimum or fixed number of working hours.

Fresenius also reports specific KPIs by region. The regional groups defined are Germany, Europe (excl. Germany), North America, Asia Pacific, Latin America, and Africa.

Our efforts in employee development and retention should also lead to improved employee KPIs in the long-term. The fluctuation rate in the 2024 reporting year was 25.3%. This includes a high number of short-term, recurring employment contracts in Spain. In 2024, the proportion of employees who voluntarily left the company was 9.8%. This KPI was influenced by the transformation processes at Group and business segment level, positively by the need for qualified personnel while the stressful labor conditions in the healthcare sector impacted the development in voluntary turnover.

The employee turnover is defined as the total number of employees (headcount) who have left Fresenius during the reporting period and the rate of employee turnover in the reporting period due to dismissal, voluntary leave, termination agreement, end of contract, retirement, death, or other reasons. It is calculated by dividing the total number of terminations (headcount) during the reporting period by the total number of employees, multiplied by 100.

Characteristics of non-employees [S1-7] Characteristics of non-employees in the undertaking’s own workforce

In 2024, 4,933 people worked for us as temporary employees¹. In relation to the total number of employees, this figure is around 3%.

The figure includes in the business segment Fresenius Helios only the German entities. The KPI is voluntarily reported by Fresenius in 2024, as this is a phase-in KPI. The company aims to report the KPI in full scope going forward.

Non-employees in the workforce are self-employed people and people provided by undertakings primarily engaged in what are referred to as employment activities, i.e. people who do not have a direct employment contract with Fresenius, but do work under the direction of Fresenius. We count non-employees using the headcount as of December 31, no matter whether they are on a full- or part-time contract. If people working for Fresenius are not directly employed by Fresenius and under the direction of a third party, they are not reported as non-employees. We report them as value chain workers, e.g. canteen workers or office staff reporting directly to a third party vendor instead of Fresenius.

¹ Excluding Fresenius Helios Spain.

Collective bargaining coverage and social dialog [S1-8] Collective bargaining coverage and social dialog

In some European countries, Fresenius is subject to industry-related collective agreements, e.g. in France, which are binding by law due to the industry to which we are affiliated. Where this is not the case, country-specific collective bargaining agreements can be negotiated with local trade unions or comparable social partners. Employees are informed by trade unions (collective bargaining partners) or employee representatives about tariff agreements, tariff negotiations, and their results. This is regulated differently in the individual countries.

Fresenius Helios hospitals in Germany are subject to a Helios Group collective agreement, the collective agreement for public service (TVoD), or company-specific collective agreements. At Helios Germany, there are regular compensation negotiations within the framework of collective agreements that generally take place every two years. The locations in Germany are subject to the regulations of the applicable working time legislation, which in some cases provides for opening clauses for supplementary tariff regulations. The Works Constitution Act, which grants the works councils co-determination rights and control, also has a regulatory effect. The framework with regard to working hours for the individual companies is regularly agreed by the respective company parties on-site. In Germany, the majority of workers are represented by the trade union ver.di.

Further, the IGBCE is the sector trade union for mining, the chemical industry, and the energy sector. We have closed a collective bargaining agreement with this union in Germany. An update was signed in 2024 and is valid until 2026.

Employees in our Spanish clinics are covered by legally binding tariff agreements. Further, the trade unions Comisiones Obreras, Union General de Trabajadoras y Trabajadores (UGT), and the Sindicato de Enfermeria (SATSE) care workers’ union are predominantly represented in the works councils.

Fresenius Corporate and Fresenius Kabi are subject to the collective agreements of the chemical industry and the plastics processing industry (KVI). These are negotiated between the IGBCE and the Bundesarbeitgeberverband Chemie (BAVC). In 2024, a new collective agreement was reached in the chemical industry, which provides for a pay increase. In addition, trade union commitment is to be rewarded in future through paid time off. The KVI has planned a new collective agreement for 2025.

In 2024, around 74% of our global employees were covered by a collective bargaining agreement.

The collaboration with unions and works councils in various countries globally is explained in the Employee participation section.

In the 2024 reporting year, 81.2% of our employees in Germany and 100.0% of our employees in Spain were covered by a collective agreement. Furthermore, employee representation coverage for employees in Germany was 82.7% and 98.5% for employees in Spain.

Fresenius discloses the percentage of total employees in the European Economic Area (EEA) that are covered by collective bargaining agreements defined by the CSRD Annex II for each significant EEA country of Fresenius. Significant EEA countries are those where at least 50 people (headcount) are employed who make up at least 10% of the total number of employees of Fresenius. Fresenius discloses its percentage of employees outside the EEA covered by collective bargaining agreements, based on regions defined that are not inside the EEA. The percentage of employees covered by workers’ representatives, defined by CSRD Annex II, is reported for each significant EEA country of Fresenius.

Despite the non-tariff employment relationship, general conditions for non-tariff employees are based on the provisions of the applicable collective agreement or local regulations. Further, depending on the function, additional agreements can be part of the employment contract. For executives, regulations are agreed in the employment contract. Salary transparency in the different countries is granted according to legal requirements and tariff contracts.

If non-employees are covered by collective bargaining agreements, it must be ensured locally that the labor and employment conditions are aligned with these frameworks, provided that they are not already covered by valid global internal guidelines, e.g. the Human Rights Statement.

The EWC of Fresenius SE & Co. KGaA comprised 14 employee representatives from 9 countries as of December 31, 2024. These individuals come from the European Union (EU) and EEA (European Economic Area) member states in which Fresenius employs personnel. In total, the Fresenius Group employs 144,836 people in Europe, which corresponds to 80.5% of the total number of employees. Of the employees in Europe, Germany alone accounts for 59.4%.

Diversity metrics [S1-9] Diversity metrics

In the reporting year, the proportion of female employees in the Fresenius Group was 67.4%. The proportion of females in services or care is traditionally higher than in the area of production. This is reflected in the proportion of female employees in our business segments: Our business segment Fresenius Helios has the highest proportion of female employees within the Group, with 74.4%.

For the calculation of the gender distribution at the top management level, Fresenius defines its employees in top management as having the day-to-day tasks of managing the organization and being part of level 1 or level 2 below the Management Board. This includes only persons who actually hold a management position, thus secretarial positions or assistantships, for example, are not counted. Managerial activities contain minimum one of the following criteria: leadership responsibility and / or budget responsibility. For the distribution of employees by age group, we count the number of employees (headcount) under 30 years old, between 30 and 50 years old, and over 50 years old.

The majority (52.6%) of our employees are between 30 and 50 years of age. We aim to maintain a well-balanced age structure within our Group. The distribution again reflects the demand for a high proportion of skilled and experienced employees in our business segments. The resulting average age also corresponds to a stage in life marked by stability and professional growth. This circumstance encourages the development of internal talent and the professional career growth of people.

At the end of the reporting year, the majority of our employees were employed in Europe. We illustrate the diversity of our employees based on nationalities. We do not collect employee data split by ethnicity. The following data is based on about 75% of global employees. Our employees come from around 150 different nations. Around 54% of them have German citizenship, followed by Spanish citizenship (29%) and Colombian citizenship (6%).

Adequate wages [S1-10] Adequate wages

Global working conditions are defined on the basis of guidelines and regulations at Group level, as already explained. Within the business segments, there are internal guidelines for employees covered by collective agreements and non-tariff employees with regard to working hours, jobs, and benefits.

Remuneration is usually based on local market standards and should be market-oriented, transparent and appropriate. It is based on requirements set by law or, where applicable, specified by the salary structures negotiated with the respective trade unions. The Group compensates employees on both permanent and temporary employment contracts according to specific rates that meet or exceed local industry conditions, but at least match living wages. Any discrimination on the basis of gender or other criteria must be prevented. As an international healthcare Group, we create various incentives for employees, depending on the country and location. These include, for example, the chance to participate in the company’s success via variable and performance-based compensation models. Benefits for full-time employees of the organization are also provided proportionally to part-time employees. In Germany, benefits can be based on joint agreements between employer and works councils. Additional information on our variable compensation models can be found from page 387 onwards in the Notes.

All local compensation practices must comply with applicable minimum wage laws and regulations in the respective jurisdictions. Local HR teams are responsible for ensuring compliance through regular reviews and audits, especially in volatile market environments. The Global HR organization will actively and regularly monitor compliance using data from the global HR System of Record. Any identified risks or instances of non-compliance must be immediately escalated to the Global HR organization for resolution and oversight, following the established escalation protocols.

During 2024, one case was identified with three employees affected, that led to an immediate salary adjustment.

In order to prevent the potential risk of payment below the country-specific statutory minimum wage in the future, local HR is asked to review the local salary levels against the local statutory minimum wage twice a year in countries with high inflation dynamics (hyperinflation).

Fresenius states whether all of its employees receive appropriate remuneration. Based on this, the Group is of the opinion that we paid appropriate remuneration as of Dec. 31, 2024. Excluded from this information are interns, trainees, apprentices, FSJ students (voluntary social service), BufDis (federal voluntary service), clinical trainees, medical students in their practical year, students, pharmacists in training, and fellowships. We always refer to the applicable minimum wage. In countries within the EEA where there is no minimum wage, we use either 60% of the national median wage or 50% of the gross average wage. In this analysis, we always use the higher value. In countries outside the EEA where there is no minimum wage, we use an internationally recognized value for living wages. We obtain the comparative data from a global salary database, which provides the respective minimum wages per region (e.g. federal state).

Social protection [S1-11] Social protection

Social protection in the Group is not standardized and generally follows local legal requirements. These are supplemented, for example, by market-specific safeguards. Due to the different employment conditions, we assume that these conditions will not change fundamentally from one year to the next.

As part of our safeguarding reviews, we assess whether all of our employees are protected through public programs or through benefits offered by Fresenius against loss of earnings due to the following major life events: illness, unemployment, work-related injuries and disability, parental leave, and retirement. There must be protection against all of the measures mentioned. For each country in which not all employees are protected against all life events in accordance ESRS S1-11.75, we indicate the type of employees and specify which life events they are not protected against in each case.

In the following countries and based on the aforementioned circumstances, certain employees are not fully protected against the mentioned life events:

• Egypt: No cover against illness, unemployment and accidents, only women are entitled to parental leave
• China: No protection for interns in the event of any of the five life events
• Dominican Republic: Employees are not protected against unemployment
• India: Only women are entitled to parental leave and no protection against unemployment
• Indonesia: None of the employees are entitled to parental leave
• Japan: None of the employees are entitled to parental leave
• Colombia: Employees are not protected against unemployment
• Philippines: Employees are not protected against unemployment and are not entitled to parental leave
• Poland: no protection of on-call staff in the event of any of the five life events
• Puerto Rico: Only women are entitled to parental leave
• South Africa: No protection for fixed-term employees in the case of any of the five life events
• Czech Republic: No protection for fixed-term employees in case of any of the five life events.
• Tunisia: Interns are not protected with regard to sickness, unemployment, or pensions
• USA: Employees are not protected against unemployment

Employees with disabilities [S1-12] Persons with disabilities

Fresenius discloses the percentage and headcount of its employees with disabilities. The number of people with disabilities in the Group is surveyed globally in those countries in which this survey is legally permissible. Exceptions are, for example, countries that do not differentiate between people with and without disabilities in employment. A disability is an individual impairment of a person with regard to their physical function, mental ability, or mental health with a high probability of deviating from the condition typical for the person’s age for longer than six months. It limits a person’s movements, senses, or activities. Fresenius accounts for different legal definitions of persons with disabilities.

Training and skills development metrics [S1-13] Training and skills development metrics

In 2024, Fresenius set itself the target of increasing the average training rate by 20% by 2030 as part of its sustainability ambition. Measures to achieve this will be taken from the 2025 reporting year.

We report the average training hours per employee by gender. This is defined by the hours spent on training and skills development-related activities that have been offered to and completed by employees, within the context of continuous professional growth, to upgrade employees’ skills as well as knowledge and facilitate continued employability. They may include various methods, such as on-site and online training, internal and external training courses, as long as they are paid for by the employer, and internal congresses. Irrespective of how long a training session actually lasts or how much time the employee requires for it, we use the time specified in the training plan or curriculum for the calculation. If training hours are not systematically recorded, they are added to the recorded hours as an estimate based on the gender distribution of the recorded hours. This relates to the Fresenius Helios Germany segment and comprises around 20% of training hours. In the case of training courses that take place over the turn of the year, we use the end of the training course for the allocation of the training course and thus only count it for this year.  For the calculation of average female training hours, we divide the total training hours of female employees in the reporting period by the total headcount of female employees.

In addition, our employees took part in a range of training programs during the reporting year. In the area of production, mandatory trainings are conducted in addition to targeted training on communication and social skills for quality experts. The production area comprises the following employee groups: operation / manufacturing, quality control, quality assurance, maintenance / technical support, and warehouse.

Helios Germany’s training priorities included simulation and incident training for anesthesia, intensive care, obstetrics, emergency rooms, and pediatrics. In addition, all certified sites conduct occupational health and safety and environmental and energy management training. Further training supplements this and serves to support the introduction, further development, and improvement of the corresponding management systems and measures.

During 2024, in Spain, different projects were launched and continued with the aim to, among others:

• Boost training on Patient Safety to comply with the Joint Commission International standard.
• Improve nursing staff’s technical knowledge through specialization learning paths and postgraduate courses on management.
• Professionalize the activity of emergency personnel through specific training in time-dependent pathology.
• Help professionals improve their well-being through training sessions included in “Contigo Bienestar” Program.
• Continue with various top management trainings.

In the Corporate / Other segment, training and courses on topics such as project management, diversity and inclusion, and feedback were offered in addition to mandatory training courses such as occupational health and safety and data protection. There were also suitable courses for specific target groups (e.g. career starters, specialist managers).

Employees who do not have their own computer or laptop, or who do not have a quiet work environment, can take the training courses they need at specially set up learning locations. The platforms enable documentation of participation in training measures and success checks, for example through final tests.

Trainees and training ratio for Germany S1-Company-specific

In the reporting year, the number of trainees in Germany, including dual students, amounted to 6,798. The trainee ratio was 7.9%.

Health and safety metrics [S1-14] Health and safety metrics

Our own workforce is covered by the company’s health and safety management system based on legal requirements and / or recognized standards or guidelines.

Work-related accidents

The LTIFR of Fresenius Kabi is 2.2 in the reporting year, due to a lower number of minor lost-time cases compared to the previous year. In 2024, slip, trip, and fall accidents and cuts occurred most frequently. The improvement in the LTIFR is partly due to the expansion of OHS training and the optimized processing of accidents.

In the reporting year 2024, no work-related fatalities occurred among employees of Fresenius that were attributable to misconduct or inadequate occupational health and safety. In one case, there was an incident involving third-party fatalities.

Other work-related accidents and incidents

Fresenius measures the number and rate of work-related accidents per 1 million hours worked. Group-wide, this rate is around 15.

The data according to S1-14.88d (recordable work-related ill health) and the data according to S1-14.88e (days lost due to other work-related accidents and incidents) will both be reported from 2025.

We disclose the coverage of employees by the health and safety management system based on legal requirements and / or recognized standards or guidelines by headcount. Fresenius discloses the number of fatalities of employees as a result of work-related injuries and work-related ill health. Incidents occurring at work that are not connected with the work itself are not subject to this. We also include injuries and ill health occurring while traveling for work purposes, working from home, or due to mental illness if the cause of the injury or ill health is work-related.

The number of fatalities of value chain workers refers to work-related deaths of value chain workers occurring on Fresenius sites. Work-related injuries and ill health arise from workplace hazards, excluding incidents like heart attacks unrelated to work. Such injuries or illnesses are defined by severe outcomes, including death, work absence, job restrictions, medical treatment beyond first aid, or significant health diagnoses by healthcare professionals. A value chain worker is any individual performing work within Fresenius’ upstream and downstream operations, regardless of their contractual relationship, who can be materially impacted by the company’s activities. This encompasses workers on Fresenius sites, those in supply chain operations, distribution, joint ventures, and other related business activities. Thus, the value chain includes all workers who are not in the scope of the company’s own workforce. Work-related accidents of employees are incidents leading to employee injuries, with fatalities included in the calculation of recordable work-related injury rates. Work-related travel injuries occur when employees are engaged in employer-related activities, including customer interactions or employer-managed transportation. Home-based work injuries are considered work-related when directly connected to job performance. Hour calculations are based either on actual employee work hours or, where no direct collection is possible, on an estimate based on the degree of employment and the applicable standard working hours. This relates to the business segment Fresenius Helios in Spain and certain entities of Fresenius Kabi. The total number of hours includes both current and departed employees during the reporting period.

As reported in this topical standard under S1-1 Policies related to occupational health and safety, internal and external audits are carried out to verify our management approaches to occupational health and safety. In 2024, we conducted internal reviews to verify compliance with applicable requirements, consistently analyze existing procedures, validate processes, and effectively optimize occupational health and safety management. The number of health and safety audits depends on the size of the individual sites and the range of activities carried out there. Further certification audits were performed by external organizations.

Remuneration metrics [S1-16] Remuneration metrics (pay gap and total remuneration)

Fresenius calculated a gender pay gap for the first time for the 2024 reporting year. The key figure is marked by a high proportion of female employees in the Group of 67.4%, which is particularly strong in lower-paid occupational groups, while the proportion of women in occupational groups with higher remuneration is not on the same level as in the Group.

Appropriate remuneration is ensured globally, for example, by the high proportion of employees covered by collective agreements of around 74%. Within the professional groups covered by a collective agreement, basic remuneration is defined by the respective provisions.

The gender pay gap is defined as the difference in average pay levels between female and male employees, expressed as a percentage of the average pay level of male employees. Gross pay for the calculation of the gender pay gap comprises gross annual wage from payroll elements and from non-payroll elements, e.g. the value of the company car. Payroll elements include all employee payments like base salary, bonuses, overtime, commissions, allowances, and benefit payments, using a cash flow principle that reflects actual paid values rather than target amounts. We calculate the company car value using taxation rates or leasing rates. Pension provisions and insurance payments are excluded. We calculate the total hours based on actual hours worked, including overtime, with provisions to use standard contractual hours if actual hours cannot be directly determined. This applies to Fresenius Helios in Spain. Both actual and standard hour calculations account for paid leave periods such as vacations, sick leave, and public holidays. With the exception of Fresenius Kabi, we calculate the average gross hourly wage for each employee by dividing the gross annual salary by the number of hours actually worked by the employee. Fresenius Kabi adds up the gross annual salaries and the actual hours worked separately for each gender and then divides the salaries by the hours. The two approaches are to be standardized in the future.

The annual total compensation ratio is defined as the annual total compensation of the highest-paid individual in relation to the weighted median annual total compensation of all employees (excluding the highest-paid individual). We use the weighted median instead of the real median in the calculation. In this process, the medians of all companies are weighted with the respective number of persons in order to calculate a median at the Group level. The weighted median represents the salary point where 50% of employees earn less and 50% earn more, with each salary weighted by the number of employees at that specific salary level. Total remuneration encompasses gross annual wage from payroll and company car value as a non-payroll element. Gross annual wage includes all employee payments such as base salary, bonuses, overtime, commissions, and allowances, following a cash flow principle that uses actual paid values rather than target amounts in the reporting year. Excluded are pension provisions and insurance payments. Company car valuation uses the leasing rate or allowance if chosen.

Incidents, complaints, and severe human rights impacts [S1-17] Incidents, complaints, and severe human rights impacts

In the reporting year, the company received a total of 348 work-related reports. This includes incidents of discrimination or sexual harassment, as well as cases from the Health / Safety.

284 reports were documented, investigated and evaluated in the Compliance Case Management category HR / workplace in accordance with the applicable compliance regulations. In addition, reports outside of Compliance Case Management were documented, e.g. via HR functions. In the reporting year, these amounted to 44. Of the cases from the Compliance Case Management category Environment / Health / Safety, 20 cases were estimated to be reportable in relation to Health / Safety. The estimate is based on the fact that the category only permits a consolidated evaluation. As shown in the table on the next page, 38 of the total reports were deemed to be substantiated or confirmed. We also take reports that are not substantiated by the investigation as an opportunity to review existing structures and, if necessary, adjust measures as a precaution.

In the reporting year, for example, occupational health and safety concerns were reported for one plant. Following a thorough investigation, occupational and environmental health and safety audits and inspections, two cases of violation of occupational health and safety standards according to the German Act on Corporate Due Diligence Obligations in Supply Chains were identified. Accordingly, comprehensive remediation was initiated and the processes, instructions, and work environment have been adjusted to prevent future cases and to uphold our globally mandatory high occupational health and safety standards.

Further, cases of exceeding the permitted working hours were identified. A thorough internal investigation concluded that the overtime hours in question were paid in full. Extended analyses and, if necessary, adjustments to processes are being implemented. The effectiveness of the measures is subsequently reviewed in order to meet our global social and labor standards, which are set out, for example, in our Group-wide Social & Labor Standards Policy, see section Group-wide guidelines and requirements in this topical standard.

No further severe violations of internal policies in the area of employees or diversity and equal rights were reported whose impacts would have been material for the financial position or reputation of the company.

Fresenius discloses the total number of discrimination and harassment incidents in its own workforce as one part of human rights relevant incidents. An overview about human rights relevant incidents according to German Act on Due Diligence in Supply Chains (LkSG) can be found in topical standard S2 Workers in the value chain, section Metrics. Fresenius defines harassment as a form of discrimination involving unwanted physical or verbal behavior that offends, intimidates, threatens, or humiliates someone, manifesting in verbal, sexual, physical, and psychological forms. Discrimination refers to unfair treatment of individuals or groups based on specific characteristics defined by national laws. Discrimination can occur across various work-related activities, including employment access, job assignments, recruitment, remuneration, working conditions, training opportunities, career advancement, and employment termination. Complaints of discrimination or harassment are filed through channels for people in Fresenius’ own workforce to raise concerns (including grievance mechanisms) and, where applicable, to the National Contact Points for OECD Multinational Enterprises.

If it is currently under review, it is not yet confirmed as a discrimination / harassment incident.

Fines and penalties are monetary punishments enforced by legal authorities, while compensation is a sum paid to an individual in recognition of suffering. In cases of harassment or discrimination, compensation may include covering counseling expenses, providing paid time off, or reinstating used sick or vacation days. Remedial actions address both the harasser and the victim, potentially involving verbal or written warnings, mandatory counseling, training, suspension without pay, or more serious disciplinary measures for repeated offenses. These actions and financial consequences must be directly linked to a reviewed and recognized case of discrimination. The respective amounts are documented and consolidated at the end of the reporting year. In 2024, the value is 0 Euro.

Severe human rights incidents encompass lawsuits, formal complaints, and serious public allegations related to Fresenius’ own workforce, where the incidents are undisputed by the company. These incidents include child labor, forced labor, human trafficking, and incidents affecting numerous people or extensive areas. Fresenius may disclose the number of severe human rights incidents where the company contributed in securing remedy for those affected during the reporting period.

Employee Engagement Index S1-Company-specific

The EEI describes how strongly employees identify with their employer and how committed they are to their work. It is an important indicator of both employee loyalty and productivity.

Fresenius’ EEI for the reporting year was 4.02¹, the target value of 4.33 was not achieved. The results differ across the segments: The EEI of Corporate / Other increased, while it remained unchanged at Fresenius Kabi and decreased at Fresenius Helios. We plan to evaluate the different results in order to identify specific areas for action to improve the value across the Group.

The survey on well-being and the balance between work and private life yielded good results overall, but also revealed potential for improvement. The greatest need for improvement was in the further development supported by Fresenius, since, according to the feedback, only half of those surveyed feel actively supported.

We are currently evaluating the results and the information received via the comment field in detail. So far, we have found that the responses in the individual business areas are sometimes very different. Here, too, we want to get to the bottom of the causes. Based on these findings, we plan to develop and implement targeted initiatives at the global, regional, and local level in 2025 – right down to the locations and teams.

As described in the S1-2 Dialog with own workforce and employee representatives, we have been conducting the employee survey, which takes place in parallel in the business segments, annually since 2022. Participation in the employee survey was 63% in the reporting year. This is a significant increase compared to the previous year.

In 2024, there were nine Group-wide standard questions that were integrated into the surveys of all business segments. Three of these nine questions are included in the Employee Engagement Index, thus enabling a Group-wide comparison. These are rated on a scale of 1 to 6 and are:

• I tell others positive things about working at [company] when the opportunity arises.
• I rarely think about leaving [company] to work somewhere else.
• [Company] motivates me to give my best.

In addition, the business segments added specific questions that address their respective needs and priorities. This ensures that both a Group-wide view and the individual needs of the various units can be taken into account. For Fresenius Corporate, for example, there were 13 specific questions (including 2 open-ended questions) and additional questions on demographic information.

The following criteria are standardized across all business segments: the established provider, period, and data cut-off date for the employee population.

After the survey is completed, the EEI (a decimal number with two decimal places) is calculated from the three globally collected questions on employee engagement. We measure EEI at the individual segment, business segment, and Group level. The EEI of the Fresenius Group is weighted according to the number of employees in the business segments. Data is collected annually in all segments and reported for the aggregated KPI. In the reporting year, the survey took place from September 12 to October 9, 2024.

The group of participants included all Fresenius employees worldwide who had an active employment contract on June 30, 2024, including students, apprentices, and interns, depending on the local legal situations. Employees whose last day of work was on or before June 30 and those who were on long-term leave on June 30 were not surveyed. A few units were excluded or not considered. Reasons are, among others, the ongoing transformation processes or legal restrictions, for example: The public hospitals we operate in Spain, the units of Fresenius Vamed, and a small number of units that cannot be taken into account due to existing political conflicts / due to legal restrictions.

The employees of Fresenius SE & Co. KGaA received an email invitation with a personal participation link that led to the survey. In other business segments, individualized invitation links or individualized identification in the survey ensured that employees were able to participate in the survey.

The questionnaire was offered in several languages, including English, German, Chinese, Polish, Portuguese, and Spanish.