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Corporate Social Responsibility (CSR) Assessment Report Company Assessed : ENDRESS UND HAUSER AG (GROUP) CSR engagement: Confirmed Size: Large Country (company headquarters): Switzerland Presence in Risk Countries: Yes Category/Industry: Manufacture of measuring, testing, navigating and control equipment; watches and clocks Overall Score: January 2015 52/100 Michael Sinz ©Copyright EcoVadis™ 06.01.2015 07:50:51 – All rights reserved www.ecovadis.com │ +33 (0) 1 82 28 88 88 [email protected] Ecovadis Assessment Report - January 2015 Page: 1/27
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Page 1: ENDRESS UND HAUSER AG (GROUP)...ENDRESS UND HAUSER AG (GROUP) has been identified as Silver regarding their approach to CSR management. To achieve this recognition, a company must

Corporate Social Responsibility (CSR) Assessment Report

Company Assessed : ENDRESS UND HAUSER AG (GROUP)

CSR engagement: Confirmed

Size: LargeCountry (company headquarters): SwitzerlandPresence in Risk Countries: YesCategory/Industry: Manufacture of measuring, testing, navigating and controlequipment; watches and clocks

Overall Score:January 2015

52/100

Michael Sinz ©Copyright EcoVadis™ 06.01.2015 07:50:51 – All rights reservedwww.ecovadis.com │ +33 (0) 1 82 28 88 88

[email protected]

Ecovadis Assessment Report - January 2015

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Page 2: ENDRESS UND HAUSER AG (GROUP)...ENDRESS UND HAUSER AG (GROUP) has been identified as Silver regarding their approach to CSR management. To achieve this recognition, a company must

TABLES OF CONTENTS

1. Score Overview

2. Supplier Scorecard Objectives

3. Assessment Process

4. Ecovadis Methodology

a. Four themes with 21 criterias

b. Seven management indicators

c. Scoring Scale

5. How to understand company Scorecard

a. Quantitative information: score & activated criteria

b. Qualitative information: Strengths & Improvement Areas

6. Theme: Environment

7. Theme: Labor Practices & Human Rights

8. Theme: Fair Business Practices

9. Theme: Sustainable Procurement

10. 360° ­ Stakeholder Information

11. Specific Comments

12. Contact us

ABOUT CORPORATE SOCIAL RESPONSIBILITY (CSR)

Corporate Social Responsibility (CSR) is the continuing commitment to behave responsibly by integrating social and environmental concernsinto business operations. CSR goes beyond regulatory compliance to focus on how companies manage their economic, social, andenvironmental impacts, as well as their relationships with stakeholders (e.g. employees, suppliers, government).

ABOUT THE ASSESSMENT

The EcoVadis methodology framework assesses the policies and measures put in place as well as the reporting published by companies withregards to environmental, labor practices & human rights, fair business practices and sustainable procurement issues. The assessmentconducted by CSR experts is made on the basis of the company answers to a survey which is dynamically adapted to their country, sectorand size, on the basis of supporting documentation, and on public and stakeholder (NGOs, trade unions, press) information.

ABOUT ECOVADIS

EcoVadis operates the 1st collaborative platform allowing companies to assess the environmental and social performance of their supplierson a global basis. EcoVadis combines technology and Corporate Social Responsibility (CSR) expertise to deliver simple and reliable supplierscorecards, covering 150 purchasing categories and 21 CSR criteria.

This document cannot be reproduced or distributed unless otherwise specified in EcoVadis contractually granted license right. No part of this document may be modified in wholeor in part and in any form prior express written permission of EcoVadis. EcoVadis does not warrant the accuracy, reliability, completeness of the information, content, text,

graphics provided on this document.

EcoVadis Assessment for ENDRESS UND HAUSER AG (GROUP) - January 2015

Michael Sinz ©Copyright EcoVadis™ 06.01.2015 07:50:51 – All rights reservedwww.ecovadis.com │ +33 (0) 1 82 28 88 88

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Page 3: ENDRESS UND HAUSER AG (GROUP)...ENDRESS UND HAUSER AG (GROUP) has been identified as Silver regarding their approach to CSR management. To achieve this recognition, a company must

CSR PERFORMANCE

Environment ENV 60

Labor Practices LAB 60

Fair Business Practices FBP 40

Sustainable Procurement SUP 40

BENCHMARK

Benchmark is done on all suppliers of the same businesscategory on the EcoVadis database

Corrective Action Plan in progress

1. Score Overview

The overall and theme scores summarize the CSR performance of ENDRESSUND HAUSER AG (GROUP) on a scale of 1 to 100.

Legend

Outstanding Advanced Confirmed Partial None

The grey bars on this graph represent the benchmarks. Benchmarks comparea company’s overall score and theme scores to other companies operatingwithin the same industry. Here the Benchmark on over 150 suppliers.NOTE:

The top and bottom 5% of performers are excluded to ensure statisticalrelevance.ENV : EnvironmentLAB : Labor Practices & Human RightsFBP : Fair Business PracticesSUP : Sustainable Procurement

This graph depicts the distribution of overall scores for several thousandcompanies on the EcoVadis platform. ENDRESS UND HAUSER AG (GROUP) hasan overall score of 52 and the company is ranked alongside 25% which haveConfirmed CSR engagement.

The red dot represents the average of all suppliersThe blue diamond refers to company position

ENDRESS UND HAUSER AG (GROUP) has been identified as Silver regardingtheir approach to CSR management. To achieve this recognition, a companymust have an overall score of [46-61].

The Corrective Action Plan (CAP) is an interactive tool shared betweensuppliers and buyers. It helps to develop Action Plans, a starting point for aneffective dialogue on actions taken by the supplier to improve their CSRperformance. ENDRESS UND HAUSER AG (GROUP) has a CAP in place and isworking on improving their CSR management system.

OVERALL SCORE 52/100

EcoVadis Assessment for ENDRESS UND HAUSER AG (GROUP) - January 2015

Michael Sinz ©Copyright EcoVadis™ 06.01.2015 07:50:51 – All rights reservedwww.ecovadis.com │ +33 (0) 1 82 28 88 88

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2. Supplier Scorecard Objectives

UNDERSTAND:

Get a clear picture of the company’s CSR performance. With a score on four CSR themes (environmental, labor practices &Human Rights, fair business practices and sustainable procurement), that highlight the company’s strengths and possible areas forimprovement.Know the company’s positioning compared to their industry sector peers. On which theme is this company better positionedthan their peers? How is this company positioned in comparison to their sector average?Identify sector specific initiatives. What are the main international CSR regulations and sector initiatives specific to the industrysector of the company?

COMMUNICATE:

Meet client needs. More and more companies raise questions about their supplier’s environmental and social performance. Thisassessment allows to demonstrate company commitment.Leverage a unique communication tool. Directly share the assessment results with all clients.

3. Assessment Process

EcoVadis Assessment for ENDRESS UND HAUSER AG (GROUP) - January 2015

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4. Ecovadis Methodology is based on

A. Four themes with 21 criteria

The EcoVadis methodology takes into account 21 CSR criteria which are contained under four themes: ENVIRONMENT, LABOR, FAIRBUSINESS PRACTICES, and SUSTAINABLE PROCUREMENT. The methodology and criteria are in line with international CSR standardsincluding the Global Reporting Initiative, United Nations Global Compact, and ISO 26000.

B. Seven management indicators

The EcoVadis assessment evaluates a company CSR management system by looking at seven management indicators. The four themesand their subsequent 21 CSR criteria are assessed on the basis of the following management indicators that a company has in place.

Policies (weight: 25%)

1. Policies: Mission statements, commitments, principles, objectives and/or policies issued by the company.2. Endorsement: Endorsement of CSR external initiatives, principles and/or active participation to international/sector CSR initiative.

Actions (weight: 35%)

3. Measures: Concrete actions put in place to support commitments, objectives and deployment of policies (e.g. training, manualprocedures).

4. Coverage: Level of deployment/dissemination of measures and concrete actions put in place throughout the company to supportcommitments and/or policies.

5. Certifications: Certifications received for the management system and/ or labels received for the products/ services delivered.

Results (weight: 40%)

6. Reporting/ KPI: Quality and level of reporting readily available to stakeholders7. 360°: Controversies, condemnations or positive developments reported by stakeholders (NGOs, Trade Unions, Press) having an

impact on the company's CSR performance.

EcoVadis Assessment for ENDRESS UND HAUSER AG (GROUP) - January 2015

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5. How to understand company Scorecard

The overall score can be better understood by looking at quantitative information - theme scores, activated criteria - and qualitativeinformation - strengths & improvement areas.

A. QUANTITATIVES INFORMATION: SCORES & ACTIVATED CRITERIA

THEME SCORES: Like the overall score, theme scores are on a scale of 1 to 100.

ACTIVATED CRITERIA: Each of the four themes - ENVIRONMENT, LABOR, FAIR BUSINESS PRACTICES, and SUSTAINABLEPROCUREMENT- have specific criteria associated to them. It is important to note that not all 21 criteria are activated for everycompany and some criteria have more weight than others in the overall assessment. The weights for the criteria are determinedbased on the CSR risks faced by the company according to their industry of operation and their country of operation(s). For moreinformation see Appendix: category profile.

Non ActivatedIf criteria are not activated, this means that the specific associatedissue is not relevant or has very low CSR risk for the company

Medium ImportanceMedium importance criteria are the issues where there is some CSRrisk, but it is not the most pressing criteria.

High ImportanceHigh-importance criteria are the issues where the company facesthe greatest CSR risk.

Only in Risk countriesCriteria classified as Only in Risk Countries are activated only if thecompany has significant operations in one or more risk country.

B. QUALITATIVE INFORMATION: STRENGTHS & IMPROVEMENT AREAS

Qualitative information provides more details and insights into the theme scores. For each theme the company is assigned Strengths (theelements of the CSR management system that are positive) and Improvement Areas (the elements of the CSR management system thatneed to be improved). The strengths & improvement areas are divided according to the 3 management indicators - Policies, Actions,Results – and are also classified by level of importance/priority (i.e. Priority.)

Green check marks indicate the Strengths Alert signs indicate the Improvement Areas

Improvement Areas are a focus point for improvement. The EcoVadis Corrective Action Plan Tool allows companies to improve their CSRperformance on specific improvement areas. It is an interactive tool shared between suppliers and buyers. It supports the development ofAction Plans, a starting point for an effective dialogue between buyers and suppliers on actions taken by a supplier to improve their CSRperformance.

Each improvement area is given a priority levelwhich can be used to set up corrective actionplans.

Priority Level

High

Medium

Low

EcoVadis Assessment for ENDRESS UND HAUSER AG (GROUP) - January 2015

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C. THE SCORING SCALE

EcoVadis Assessment for ENDRESS UND HAUSER AG (GROUP) - January 2015

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6. ENVIRONMENT

The environment theme takes into account both operational factors (e.g. energy consumption, waste management, etc.) and productstewardship (e.g. product end of life, customer health and safety issues).

ENVIRONMENT: SCORES

CSR PERFORMANCE

Environment ENV 60

Labor Practices LAB 60

Fair Business Practices FBP 40

Sustainable Procurement SUP 40

WEIGHT of the Theme ENV 3 out of 12 -> 25% of the global score

Themes are weighted according the CorporateSocial Responsibility (CSR) risks associated tothe company industry of operation and countryof operation(s). The theme weights influence theresulting overall score.

BENCHMARK

This benchmark shows the company overall score incomparison to the scores of industry sector peers on theEcoVadis platform. The top and bottom 5% of performersare excluded to ensure statistical relevance.

DETAILED SCORE BENCHMARK

The theme benchmark is a more detailed comparison ofthe company’s theme score in comparison to othercompanies operating within the same industry. NOTE:Benchmark is only activated when they are at least 3suppliers to compare with.

ENVIRONMENT: ACTIVATED CRITERIA

Non Activated Medium Importance High Importance Only in Risk countries

Note: Not all 21 criteria are activated for every company and some criteria have more weight than others in the overall assessment. Theweights for the criteria are determined based on the CSR risks faced by the company according to their industry of operation and theircountry of operation(s).

ENVIRONMENT: STRENGTH & WEAKNESSES

Note: The number of alert signs or checks next to a strength or weakness does not represent the performance of the company; ratherthey indicate the level of importance of each individual strength and/or weakness

This icon informs that the company has a Corrective Action Plan (CAP) in place associated to a particular weakness. The CAP is aninteractive tool shared between suppliers and buyers. It helps to develop Actions to improve the supplier’s CSR performance.

ENVIRONMENT:POLICIES

Priority Strength or Weakness Additional Definition CAP

Environmental quantitative objectives set on [ energy ]

Company policy on major environmental issues More Information • The company has issued a formal standard policy thatintegrates commitments and/or operational objectives on themain environmental issues it is confronted with.

• There are at least qualitative objectives/commitments withspecificities on the main environmental issues.

Guidance • The importance of environmental issues covered by the policymay vary according to the industry or sector. Such issues caninc lude energy consumpt ion & GHG emiss ions, watermanagement, biodiversity, materials, chemicals & wastemanagement, product stewardship (use/end of life), customerhealth & safety and/or promotion of sustainable developmenttopics.

• The policy might also incorporate some of the followingelements: scope of application, allocation of responsibilities,quantitative objectives (i.e. on energy consumption & GHGemissions and materials, chemicals & waste management), andreview mechanisms.

Official targets to meet RoHS

EcoVadis Assessment for ENDRESS UND HAUSER AG (GROUP) - January 2015

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ENVIRONMENT:ACTIONS

Priority Strength or Weakness Additional Definition CAP

Declares a percentage of sites ISO 14001 certified butcertificates or evidence provided are inconclusive [ 81%to 100% ]

More Information • The company declares a percentage of ISO 14001 certified sitesbut certificates or evidence (e.g. list of operational sites certified)provided are inconclusive.

Guidance •  The   i n fo rmat i on   f ound  p rov ided   i n   the   suppor t i ngdocumentation (e.g. company website, CSR reporting) does notallow to identify the percentage of ISO 14001 certified sites.

Declares environmental measures effectivelyimplemented across all operations but no supportingdocumentation available

More Information • The company declares that the environmental measuresimplemented cover 100% of their operations, but no informationwas found in the supporting documentation to verify this claim.

External/ 3rd party audit on environmental issues

Formal life cycle analysis performed on key products

Waste management measures

Declares measures on water management but nosupporting documentation available

More Information • The company declares it has implemented specific measuresand concrete actions regarding water management, such aswater treatment, recycling and reuse, reduction of wastewaterdischarge, measurement and control mechanisms for organicwater pollutant (BOD) or chemical oxygen demand (COD); but noinformation was found on this topic within the companysupporting documentation.

Company has performed a formal assessment of itsinflow material with regards to RoHSII requirements

More Information • The company has executed a formalized assessment of itsinflow material with the aim of verifying compliance with theRoHSII directive.

• RoHS is the Directive on the Restriction of HazardousSubstances (RoHS) in Electrical and Electronic Equipment2002/95/EC. It restricts the use of six hazardous materials(cadmium, lead, hexavalent chromium, mercury, PBB and PBDE)in the manufacture of various types of electronic and electricalequipments. RoHS was recast with the Directive 2011/65/EU(RoHS 2). The new directive extends the requirements to all EEE,restricts new substances and clarifies definitions.

ISO 50001 certified More Information • The company has provided a valid ISO 50001 certificate for atleast one of its operational sites.

• ISO 50001:2011 specifies requirements for establishing,implementing, maintaining and improving an energy managementsystem, whose purpose is to enable an organization to follow asystematic approach in achieving continual improvement ofenergy performance, including energy efficiency, energy use andconsumption. (Source: ISO)

• The ISO 50001 standard, previously known as DIN EN 16001,was launched in June 2011. It is fully aligned with ISO 14001.

Measures to reduce energy consumption

Reduction of energy consumption through innovativetechnologies

Work process or innovative technologies implementedto treat waste or facilitate clean disposal [ i.e. lead-freesoldering ]

EcoVadis Assessment for ENDRESS UND HAUSER AG (GROUP) - January 2015

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Page 10: ENDRESS UND HAUSER AG (GROUP)...ENDRESS UND HAUSER AG (GROUP) has been identified as Silver regarding their approach to CSR management. To achieve this recognition, a company must

ENVIRONMENT:RESULTS

Priority Strength or Weakness Additional Definition CAP

CSR reporting on environmental issues More Information • There is evidence of reporting implemented regarding themanagement and the mitigation of the company environmentalfootprint from its supporting documentation, including keyperformance indicators (KPIs), statistical figures or associatedconcrete actions.

Guidance • Reporting items are standard in terms of quality and quantity,do cover the main issues, are meaningful enough, and areregularly updated.

• KPIs can be sector­specific and include for instance directenergy consumption by primary energy source, total directgreenhouse gas emissions, total volume of water recycled andreused (Source: Global Reporting Initiative).

No alignment with GRI guidelines

No products are RoHSII compliant

Reporting of direct CO2 emissions

Reporting on electricity consumption

EcoVadis Assessment for ENDRESS UND HAUSER AG (GROUP) - January 2015

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7. LABOR PRACTICES & HUMAN RIGHTS (LAB)

The labor theme takes into account both Labor Practice issues (e.g. health and safety, working conditions, etc.) and Human Rightsissues (e.g. discrimination, child labor, etc.).

LABOR & HUMAN RIGHTS: SCORES

CSR PERFORMANCE

Environment ENV 60

Labor Practices LAB 60

Fair Business Practices FBP 40

Sustainable Procurement SUP 40

WEIGHT of the Theme LAB 4 out of 12 -> 33% of the global score

Themes are weighted according the CorporateSocial Responsibility (CSR) risks associated tothe company industry of operation and countryof operation(s). The theme weights influence theresulting overall score.

BENCHMARK

This benchmark shows the company overall score incomparison to the scores of industry sector peers on theEcoVadis platform. The top and bottom 5% of performersare excluded to ensure statistical relevance.

DETAILED SCORE BENCHMARK

The theme benchmark is a more detailed comparison ofthe company’s theme score in comparison to othercompanies operating within the same industry. NOTE:Benchmark is only activated when they are at least 3suppliers to compare with.

LABOR & HUMAN RIGHTS: ACTIVATED CRITERIA

Non Activated Medium Importance High Importance Only in Risk countries

Note: Not all 21 criteria are activated for every company and some criteria have more weight than others in the overall assessment. Theweights for the criteria are determined based on the CSR risks faced by the company according to their industry of operation and theircountry of operation(s).

LABOR & HUMAN RIGHTS: STRENGTH & WEAKNESSES

Note: The number of alert signs or checks next to a strength or weakness does not represent the performance of the company; ratherthey indicate the level of importance of each individual strength and/or weakness

This icon informs that the company has a Corrective Action Plan (CAP) in place associated to a particular weakness. The CAP is aninteractive tool shared between suppliers and buyers. It helps to develop Actions to improve the supplier’s CSR performance.

EcoVadis Assessment for ENDRESS UND HAUSER AG (GROUP) - January 2015

Michael Sinz ©Copyright EcoVadis™ 06.01.2015 07:50:51 – All rights reservedwww.ecovadis.com │ +33 (0) 1 82 28 88 88

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LABOR PRACTICES & HUMAN RIGHTS:POLICIES

Priority Strength or Weakness Additional Definition CAP

Policies on major labor and human rights issues More Information • The company has issued formal policies that integratecommitments and/or operational objectives on the main laborpractices and human rights issues it is confronted with.

• There are at least qualitative objectives/commitments withspecificities on the main issues.

Guidance • The importance of issues covered by the policies may varyaccording to the industry or sector. Such issues can includeemployee health & safety, working conditions, labor relations,career management & training, child & forced labor, anti-discrimination and other fundamental rights issues.

• The policies might also incorporate some of the followingelements: scope of application, allocation of responsibilities,quantitative objectives (i.e. on employee health & safety, careermanagement & training and anti-discrimination), and reviewmechanisms.

Company public commitment to promote and facilitatestructured social dialogue

Official targets to reduce occupational injury & illness More Information • The company has formally defined and communicatedquantitative objectives with regards to occupational health andsafety issues such as for instance targets on frequency orseverity rates.

EcoVadis Assessment for ENDRESS UND HAUSER AG (GROUP) - January 2015

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LABOR PRACTICES & HUMAN RIGHTS:ACTIONS

Priority Strength or Weakness Additional Definition CAP

OHSAS 18001 certified on more than 81% ofoperational sites

Implementation measures supporting labor practicespolicies effectively implemented on more than 80% ofemployees

Training of relevant employees on health & safety risksand best working practices

No information on whether monitoring system has beenimplemented to ensure conformity with local laws andILO requirements on maximum working hours

No information on implementation measures regardinghuman rights issues

More Information • No company declaration and no evidence within the supportingdocumentation on concrete actions implemented regardinghuman rights issues.

Guidance • Some examples of measures include a whistle blowingprocedure or disciplinary measures enforced on discrimination orharassment issues, external audits on human rights issues,training or awareness programs for managers, collaboration withpublic, local authorities or NGOs on human rights, etc.

No information on implementation measures regardingdiscrimination issues

More Information • No company declaration and no evidence within the supportingdocumentation on concrete actions implemented to avoid oreliminate discrimination.

Guidance • Discrimination is defined as different treatment given to peoplein hiring, remuneration, training, promotion, termination; basedon race, national origin, religion, disability, gender, sexualorientation, union membership, political affiliation or age (source:ISO 26000).

• Some potential examples of implementation measures couldinclude awareness/training of managers on discrimination,implementation of a whistle blowing procedure and/or disciplinarymeasures, also specific measures regarding disabled people,senior employees or women.

No information on implementation measures regardingchild or forced labor issues

External audits on health & safety issues

Official measures to promote work and life balance More Information • The company has implemented working practices thatacknowledge and aim to support the needs of staff in achieving abalance between their home and working lives. Examples of worklife-balance measures include: the possibility to work from home,to work part time, flexible-time schedules, childcare facilities atwork, in-house services.

Employee health & safety detailed risk assessment

Company wide promotion of employees' initiativesregarding working conditions

Regular assessment (at least once a year) of individualperformance

Company specific pension plan for employees

Provision of skills development training More Information • The company has implemented vocational training andinstruction, which include skills development training, educationpaid for in whole or in part by the company, with the goal toprovide opportunities for career advancement (Source: GlobalReporting Initiative G3).

EcoVadis Assessment for ENDRESS UND HAUSER AG (GROUP) - January 2015

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LABOR PRACTICES & HUMAN RIGHTS:RESULTS

Priority Strength or Weakness Additional Definition CAP

CSR reporting on labor practices and human rightsissues

More Information • There is evidence of reporting implemented regarding bothlabor and human rights issues from the company supportingdocumentation, including key performance indicators (KPIs),statistical figures or associated concrete actions.

Guidance • Reporting items are standard in terms of quality and quantity,do cover the main issues, are meaningful enough, and areregularly updated.

• KPIs can be sector­specific and include for instance the rates ofinjury, of lost days, the number of hours of training, the % ofemployees covered by collective bargaining agreements, thegender ratio etc. (Source: Global Reporting Initiative G3).

No alignment with GRI guidelines

Reporting on accident severity rate More Information • The company reports a severity rate of accidents among itsemployees during the last reporting year.

Guidance • The accident severity rate measures the time lost due tooccupational injuries in relation to the total amount of timeworked. It indicates how severe the accidents were and how longthe injured employees were out of work as a result of disablinginjuries.

Reporting on accident frequency rate More Information • The company reports a frequency rate of accidents among itsemployees during the last reporting year.

Guidance • The accident frequency rate measures the number of injurieswith lost time in relation to the total amount of time worked. Itindicates the extent to which injury incidents are repeated overtime and their number of occurrence.

No information on percentage of women in executive(e.g. senior or top management) positions

No information on percentage of disabled workers out oftotal workforce

Reporting on number of training hours per employee

EcoVadis Assessment for ENDRESS UND HAUSER AG (GROUP) - January 2015

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8. FAIR BUSINESS PRACTICES (FBP)

The fair business practice theme focuses primarily on corruption and bribery issues, but also takes into account anti-competition andresponsible marketing depending on the industry of operation.

FAIR BUSINESS PRACTICES: SCORES

CSR PERFORMANCE

Environment ENV 60

Labor Practices LAB 60

Fair Business Practices FBP 40

Sustainable Procurement SUP 40

WEIGHT of the Theme FB 3 out of 12 -> 25% of the global score

Themes are weighted according the CorporateSocial Responsibility (CSR) risks associated tothe company industry of operation and countryof operation(s). The theme weights influence theresulting overall score.

BENCHMARK

This benchmark shows the company overall score incomparison to the scores of industry sector peers on theEcoVadis platform. The top and bottom 5% of performersare excluded to ensure statistical relevance.

DETAILED SCORE BENCHMARK

The theme benchmark is a more detailed comparison ofthe company’s theme score in comparison to othercompanies operating within the same industry. NOTE:Benchmark is only activated when they are at least 3suppliers to compare with.

FAIR BUSINESS PRACTICES: ACTIVATED CRITERIA

Non Activated Medium Importance High Importance Only in Risk countries

Note: Not all 21 criteria are activated for every company and some criteria have more weight than others in the overall assessment. Theweights for the criteria are determined based on the CSR risks faced by the company according to their industry of operation and theircountry of operation(s).

FAIR BUSINESS PRACTICES: STRENGTH & WEAKNESSES

Note: The number of alert signs or checks next to a strength or weakness does not represent the performance of the company; ratherthey indicate the level of importance of each individual strength and/or weakness

This icon informs that the company has a Corrective Action Plan (CAP) in place associated to a particular weakness. The CAP is aninteractive tool shared between suppliers and buyers. It helps to develop Actions to improve the supplier’s CSR performance.

FAIR BUSINESS PRACTICES:POLICIES

Priority Strength or Weakness Additional Definition CAP

Endorsement of external initiative on business ethicsissues [ ZVEI code of conduct ]

Comprehensive policy on major business ethics issues(e.g. corruption issues)

More Information • The company has issued a comprehensive formalized policythat integrates commitments, operational and quantitativeobjectives on at least corruption & bribery issues and optionallyanti-competitive practices issues and consumer/client issues suchas responsible marketing & data protection, depending on theindustry or sector.

• The policy aims to prevent risks related to anti­corruption &bribery issues and optionally anti-competitive practices issuesand consumer/client issues.

• The policy incorporates some of the following elements: scopeof application, allocation of responsibilities, quantified objectives,and review mechanisms.

• The policy is contained in a dedicated policy document or in adedicated section of a larger purpose document.

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FAIR BUSINESS PRACTICES:ACTIONS

Priority Strength or Weakness Additional Definition CAP

Declares business ethics measures effectivelyimplemented for all employees but no supportingdocumentation available

Measures to prevent counterfeiting of other products More Information • The company has implemented measures to ensure it does notwillfully manufacture goods and sell them under a brand namewithout the brand owner’s authorization.

Guidance • Example of measures include the systematic inclusion ofintel lectual property clauses into purchasing contracts,t r a c e a b i l i t y m e c h a n i s m s t o t r a c k t h e o r i g i n o fproducts/components, verification of shipments either through asource inspection or a personal vendor check, audits andscreening of distributors.

Awareness & training program for managers on anti-competitive practices

Company specific awareness or training program oncorruption & bribery issues

FAIR BUSINESS PRACTICES:RESULTS

Priority Strength or Weakness Additional Definition CAP

No performance reporting on business ethics issues(e.g. number of breaches of code of ethics, ...)

More Information • The company declares no formal reporting regarding fairbusiness practices and there is no information within thecompany supporting documentation on key performanceindicators (KPIs), statistical figures and associated concreteactions.

Guidance • KPIs can be sector­specific and include for instance the % ofemployees trained on business ethics issues, number of breachesof the Code of Ethics, number of incidents reported through thewhistle blowing procedure.

No alignment with GRI guidelines

Reporting on percentage of employees trained in personon business ethics issues

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9. SUSTAINABLE PROCUREMENT (SUP)

The sustainable procurement theme focuses on both social and environmental issues within the company supply chain.

SUSTAINABLE PROCUREMENT: SCORES

CSR PERFORMANCE

Environment ENV 60

Labor Practices LAB 60

Fair Business Practices FBP 40

Sustainable Procurement SUP 40

WEIGHT of the Theme SUP 2 out of 12 -> 16% of the global score

Themes are weighted according the CorporateSocial Responsibility (CSR) risks associated tothe company industry of operation and countryof operation(s). The theme weights influence theresulting overall score.

BENCHMARK

This benchmark shows the company overall score incomparison to the scores of industry sector peers on theEcoVadis platform. The top and bottom 5% of performersare excluded to ensure statistical relevance.

DETAILED SCORE BENCHMARK

The theme benchmark is a more detailed comparison ofthe company’s theme score in comparison to othercompanies operating within the same industry. NOTE:Benchmark is only activated when they are at least 3suppliers to compare with.

SUSTAINABLE PROCUREMENT: ACTIVATED CRITERIA

Non Activated Medium Importance High Importance Only in Risk countries

Note: Not all 21 criteria are activated for every company and some criteria have more weight than others in the overall assessment. Theweights for the criteria are determined based on the CSR risks faced by the company according to their industry of operation and theircountry of operation(s).

SUSTAINABLE PROCUREMENT: STRENGTH & WEAKNESSES

Note: The number of alert signs or checks next to a strength or weakness does not represent the performance of the company; ratherthey indicate the level of importance of each individual strength and/or weakness

This icon informs that the company has a Corrective Action Plan (CAP) in place associated to a particular weakness. The CAP is aninteractive tool shared between suppliers and buyers. It helps to develop Actions to improve the supplier’s CSR performance.

SUSTAINABLE PROCUREMENT:POLICIES

Priority Strength or Weakness Additional Definition CAP

Basic sustainable procurement policy on bothenvironment and social factors

More Information • The company has issued value statements, commitments, andoperational objectives regarding the integration of environmentaland social factors within its supply chain, which lack specificity atissue level, or do not cover all the major sustainable procurementissues the company is confronted with, or lack organizationalelements (e.g. review process, dedicated responsibilities, scopeof application), or are not consolidated into a formal document.

Guidance • A standard sustainable procurement policy includes at leastCSR requirements for both supplier practices (environmental andsocial), and product/service characteristics (e.g. use ofindependently verified labeling schemes). It is contained in aformal policy document (i.e. CSR Procurement Guidelines) andusually includes organizational elements (e.g. review process,dedicated responsibilities, scope of application).

Claims a policy on conflict minerals but no supportingdocumentation available

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SUSTAINABLE PROCUREMENT:ACTIONS

Priority Strength or Weakness Additional Definition CAP

Claims that above 50% of suppliers are covered bysustainable procurement measures (assessments oraudits) but no supporting documentation available

More Information • The company declares that above 50% of suppliers (in actualnumber of suppliers, not spend volume) are covered bysustainable procurement measures (e.g. CSR assessments oraudits), but this claim could not be verified within the companysupporting documentation.

On-site audits of suppliers on environmental or socialissues

More Information • The company's supporting documentation demonstratesevidence of on-site supplier audits on environmental and/ orsocial issues through internal audits, audit reports or third partyaudit certificates.

• Evidence of internal/external on site audits is recent enough(i.e. less than 12 months).

•  Aud i t s   can  be  announced  o r  unannounced  and  a resystematically conducted at least for suppliers most exposed toCSR risks.

• External audits are carried out by credible third party auditorsand recognized environmental and/or social auditing standardsare utilized (e.g. SMETA, EICC).

• Audits are directly conducted via field visits, i.e. on thesuppliers' operational sites and/or business premises.

Regular supplier assessment (e.g. questionnaire) onenvironmental or social practices

More Information • The company demonstrates evidence of suppl ier CSRassessments (in-house, 3rd party, or self-assessments) throughchecklists or questionnaires to verify compliance with its own pre-defined set of CSR requirements.

• CSR assessment questionnaires can be in­house driven orsupported by a third-party organization, and include questionson environmental (including regulatory issues), social and ethicalissues.

• CSR assessment can also consist in checklists, online forms 

• Assessment can be conducted by the client, a reliable thirdparty, or by the supplier itself.

Claims 81-100% of suppliers for which conflict mineralsinformation is available (e.g. CFSI/EICC Reports) but nosupporting documentation

Claims formal assessment of suppliers progress withregards to REACH compliance program is inapplicable

More Information • The company declares the completion of a formal assessmentof its suppliers regarding their progression toward full compliancewith the REACH Directive is not applicable to their operations,however it is a measure that is normally considered relevant tothe company's activities.

• The REACH (Registration, Evaluation and Authorisation ofChemicals) Directive, is a regulation of the European Union thataddresses the production and use of chemical substances as wellas their potential impacts on both human and environmentalhealth. The regulation requires that all companies manufacturingor importing chemical substances into the European Union inquantities of one tonne or more per year to register thesesubstances to the European Chemicals Agency (ECHA).

Written communication sent to suppliers informing themof conflict minerals issues

Detailed conflict minerals risk analysis (per product orpurchasing category)

Choice of IT equipment on environmental or socialcriteria

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SUSTAINABLE PROCUREMENT:RESULTS

Priority Strength or Weakness Additional Definition CAP

Basic reporting on sustainable procurement issues More Information • There is evidence of formal reporting regarding the integrationof environmental and/or social factors within the company supplychain from the company supporting documentation including keyperformance indicators (KPIs), statistical figures or associatedconcrete actions, but reporting elements are limited in terms ofquality and quantity, do not cover the main issues, are notmeaningful enough, or are not regularly updated.

Guidance • It might also be the case that reporting does not exactly coverthe entity under evaluation (e.g. KPIs might be aggregated atparent company level only).

• KPIs can be sector­specific and include for instance % ofsuppliers assessed or audited on CSR issues, % of buyerstrained on sustainable procurement, % of raw materialspurchased that are recycled materials, % of products purchasedwith an ecolabel.

Basic reporting on conflict minerals issues

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10. The 360° WATCH: stakeholders' information

360º WATCH

01/2014 Endress+Hauser establishes two new sales centresEndress+Hauser has launched new sales centres based in the UAE and Algeria, strengthening its presence in the Middle Eastern andNorth Africa markets. http://arabianindustry.com/oil-gas/news/2014/jan/5/endresshauser-establishes-two-new-sales-centre...

The 360° is a web based tool to collect stakeholders insight on a company‘s CSR approach and impacts. A corporate stakeholder is a partythat can affect or be affected by the actions of the company and the achievement of its objectives (i.e. employees, clients, suppliers).

Note: If a strength or weakness is activated on the 360°, this is an indicator that the 360° has had an impact on the score.

Only legitimate stakeholder sources are selected:

Governmental organizations (i.e. government environmental protection administrations, anti-trust agencies, customers protectionagencies)CSR networks and initiativesTrade unions and employers’ organizationsInternational organizations (i.e. UN, ILO, UNEP, …)NGO’s (i.e. Greenpeace, Clean Clothes Campaign, Transparency international, UFC, …)Research institutes and reputable press (CSR Asia, Blacksmith Institute, …)

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11. SPECIFIC COMMENTS

Specific comments are key points which indicate some specific characteristics of the company CSR evaluation and will help to betterunderstand the company’s performance.

The company demonstrates a comprehensive management system on environmental issues. Since the last evaluation, the overall score has increased thanks to the implementation of additional policies. Since the last evaluation, the overall score has increased thanks to the implementation of additional measures. The company demonstrates a comprehensive management system on labor and human rights issues. The implementation coverage of CSR measures and actions throughout the company is unclear. Despite the company implementing measures regarding sustainable procurement issues, policies are not formalized or are only basic.

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MORE INFORMATION

For more information, please refer to our website (http://www.ecovadis.com) where you can also connect to the EcoVadis platform.

If you have any questions or problems, do not hesitate to contact us:

By email at: [email protected] phone : +33 (0) 1 82 28 88 88

Provided under contract for exclusive use of subscriber: Michael Sinz - 06/01/2015

This assessment is valid for 12 months only.

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APPENDIX : CATEGORY PROFILE

A Category Profile offers practical insights into the key sustainability issues which are applicable to the company industry of operation. Itprovides a link to major regulations, sector initiatives, and eco-labels.

The company industry of operation has been determined based on International Standard Industrial Classification of AllEconomic Activities (ISIC), which is a compilation of all global economic activities published by the United Nations StatisticalCommission.

The International Standard Industrial Classification of All Economic Activities (ISIC) main purpose is to provide a set ofactivity categories that can be utilized for the collection and reporting of statistics according to such activities.

International Standard Industrial Classification of All Economic Activities, Rev.4, United Nations, New York, 2008

It is possible that a company has operations in more than one category, but EcoVadis classifies companies based on their main area ofoperation.

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CRITERIA ACTIVATION BY THEME:

Each category faces specific CSR issues and risks based on their industry of operation. The below chart shows the criteria activated for thecompany category name : Manufacture of measuring, testing, navigating and control equipment; watches and clocks.

Environment

Energy Consumption & GHG

Water

Biodiversity

Local Pollution

Materials, Chemicals & Waste

Product Use

Product End-of-Life

Customers Health & Safety

Sustainable Consumption

Labor Practices

Employee Health & Safety

Working Conditions

Social Dialog

Career Management & Training

Child & Forced Labor

Discrimination

Fundamental Human Rights

Fair Business Practices

Corruption & Bribery

Anti-competitive Practices

Responsible Marketing

Sustainable Procurement

Suppliers & Environment

Suppliers & Social

Non Activated Medium Importance High Importance Only in Risk countries Noteworthy Practices

KEY CSR ISSUES

This section shows a qualitative explanation of the key CSR issues and risk pertaining to Manufacture of measuring, testing, navigatingand control equipment; watches and clocks.

Key CSR Issues ENVIRONMENT

Energy Consumption & GHG

Definition: Energy consumption (e.g. electricity, fuel, renewable energies) used during operations and transport.Greenhouse gases direct and indirect emissions including CO2, CH4, N2O, HFC, PFC and SF6. Also includesproduction of renewable energy by the company.

Sectorial issues: In Progress

Water

Definition: Water consumption during operations. Pollutants rejected into water.

Sectorial issues: In Progress

Materials, Chemicals & Waste

Definition: Consumption of all types of raw materials and chemicals. Non-hazardous and hazardous wastegenerated from operations. Also includes air emissions other than GHG (e.g. SOx, NOx).

Sectorial issues: In Progress

Product Use

Definition: Environmental impacts generated from the direct use of products. Can include energy, water,materials and chemicals use.

Sectorial issues: In Progress

Product End-of-Life

Definition: Direct Environmental impacts generated from the end-of-life of the products. These impacts caninclude hazardous, non-hazardous waste generated, emissions and accidental pollution.

Sectorial issues: In Progress

Customers Health & Safety

Definition: Negative health and safety impacts of products and services on customers or consumers.

Sectorial issues: In Progress

LABOR PRACTICES

Employee Health & Safety

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Definition: Deals with health and safety issues encountered by employees at work i.e. during operations andtransport. Includes both physiological and psychological issues arising from, among others, dangerousequipment, work practices and hazardous substance.

Sectorial issues: In Progress

Working Conditions

Definition: Deals with working hours, remunerations and social benefits granted to employees.

Sectorial issues: In Progress

Social Dialog

Definition: Deals with structured social dialogue i.e. social dialog deployed through recognized employeerepresentatives and collective bargaining.

Sectorial issues: In Progress

Career Management & Training

Definition: Deals with main career stages i.e. recruitment, evaluation, training and management of layoffs.

Sectorial issues: In Progress

Discrimination

Definition: Deals with discrimination issues at work. Discrimination is defined as different treatment given topeople in hiring, remuneration, training, promotion, termination; based on race, national origin, religion, disability,gender, sexual orientation, union membership, political affiliation or age.

Sectorial issues: In Progress

Fundamental Human Rights

Definition: Deals with fundamental human rights issues at work. This includes the respect of security, propertyrights, employees privacy rights, civil and political rights, rights to freedom of association and collective bargaining,social and cultural rights (including indigenous people) as well as the prevention of harassment, moral and physicalviolence and inhumane or degrading treatment.

Sectorial issues: In Progress

FAIR BUSINESS PRACTICES

Corruption & Bribery

Definition: Deals with all forms of corruption issues at work, including among other things extortion, bribery,conflict of interest, fraud, money laundering.

Sectorial issues: In Progress

Anti-competitive Practices

Definition: Deals with anti-competitive practices including among others: bid-rigging, price fixing, dumping,predatory, pricing, coercive monopoly, dividing territories, product tying, limit pricing, and the non respect ofintellectual property.

Sectorial issues: In Progress

SUSTAINABLE PROCUREMENT

Suppliers & Environment

Definition: Deals with environmental issues within the supply chain i.e. environmental impacts generated from thesuppliers and subcontractors own operations and products.

Sectorial issues: In Progress

Suppliers & Social

Definition: Deals with labor practices and human rights issues within the supply chain i.e. labor practices andhuman rights issues generated from the suppliers and subcontractors own operations or products.

Sectorial issues: In Progress

SOURCES

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Sources In Progress

MAIN REGULATIONS AND SECTORS INITIATIVES

This section provides a list of text references related to major CSR standards, regulations, labels or sector initiatives pertaining toManufacture of measuring, testing, navigating and control equipment; watches and clocks.

Main Regulations and Sectors Initiatives ( = Regulatory)

ENV : Décret no 2002­775 du 3 mai 2002 (France) 

Ce décret est relatif aux valeurs limites d'exposition du public aux champs électromagnétiques émis par les équipementsutilisés dans les réseaux de télécommunication ou par les installations radioélectriqueshttp://admi.net/jo/20020505/INDI0220135D.html

ENV : EU directive EuP (Energy using Products)

The directive 2005/32/EC became law in the European Union on August 2005. The EuP Directive focus on the designphase to improve energy efficiency of energy using products.http://ec.europa.eu/enterprise/eco_design/index_en.htm

ENV : EU directive RoHS (Restriction of Hazardous Substances)

The RoHS directive restricts the use of six hazardous materials in the manufacture of various types of electronic andelectrical equipment.http://www.rohs.eu/english/index.html

ENV : EU directive WEEE (waste electrical and electronic equipment)

The WEEE directive sets collection, recycling and recovery targets for all types of electrical goods. It imposes theresponsibility for the disposal of waste electrical and electronic equipment on the manufacturers of such equipment.http://ec.europa.eu/environment/waste/weee/legis_en.htm

ENV : EU regulation REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals)

The REACH European Community Regulation (18 December 2006) encourages manufacturers and importers of"Substances of Very High Concern" to pre-register them.http://ec.europa.eu/environment/chemicals/reach/reach_intro.htm

ENV : Standard ISO 14000 (International Standard Organisation)

The ISO 14000 family addresses various aspects of environmental managementhttp://www.iso.org/iso/iso_14000_essentials

LAB : Universal Declaration of Human Rights

The Universal Declaration of Human Rights (UDHR) is an advisory declaration adopted by the United Nations GeneralAssembly (10 December 1948 )http://www.un.org/Overview/rights.html

LAB : International Labor Organization's Fundamental Conventions

The Governing Body of the International Labour Office has identified eight Conventions as fundamental to the rights ofhuman beings at work. These rights are a precondition for 12 the others in that they provide a necessary framework fromwhich to strive freely for the improvement of individual and collective conditions of work.http://www.ilo.org/wcmsp5/groups/public/---ed_norm/---declara...

LAB : Standard OHSAS 18001 (Occupational Health and Safety Assessment Series)

OHSAS 18000 is an international occupational health and safety management system specification. http://www.ohsas-18001-occupational-health-and-safety.com/ind...

FBP : Foreign Corrupt Practices Act of 1977

The Foreign Corrupt Practices Act of 1977 (FCPA) prohibits payments, gifts, or Practices Act contributions to officials oremployees of any foreign government or government-owned business for the purpose of getting or retaining business.http://www.usdoj.gov/criminal/fraud/fcpa/

FBP : United Nations Convention against Corruption (UNCAC)

The UNCAC is the first leg12y binding international anti-corruption instrument. In its 8 Chapters and 71 Articles, theUNCAC obliges its States Parties to implement a wide and detailed range of anti-corruption measures affecting their laws,institutions and practices.http://www.unodc.org/unodc/en/treaties/CAC/index.html

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Supplier ENDRESS UND HAUSER AG (GROUP) KPIs

ALL : United Nations Global Compact (10 principles)

The Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of tenprinciples in the areas of human rights, labour standards, the environment, and anti-corruption:http://www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/in...

ALL : OECD guidelines for multinational enterprises

The Guidelines are recommendations addressed by governments to multinational enterprises operating in or fromadhering countries. They provide voluntary principles and standards for responsible business conduct in a variety of areasincluding employment and industrial relations, human rights, environment, information disclosure, combating bribery,consumer interests, science and technology, competition, and taxation.http://www.oecd.org/about/0,2337,en_2649_34889_1_1_1_1_1,00.html

ALL : Standard Global Reporting Initiative's (GRI)

The GRI is a network-based organization, that has set out the principles and indicators that organizations can use tomeasure and report their economic, environmental, and social performance.http://www.globalreporting.org/Home

ALL : Standard ISO 26000 (International Standard Organisation)

The future International Standard ISO 26000, Guidance on social responsibility, will provide harmonized, glob12y relevantguidance based on international consensus among expert representatives of the main stakeholder groups and soencourage the implementation of best practice in social responsibility worldwide.http://www.iso.org/iso/pressrelease.htm?refid=Ref972

ENV : Carbon disclosure project

CDP is an international, not-for-profit organization providing the only global system for companies and cities to measure,disclose, manage and share vital environmental information.https://www.cdp.net

ADDITIONAL CATEGORY STATISTICS

Critical Category Strength and Improvement areas (% Suppliers) In Progress...

Strengths and Improvement Areas

KPIsEcoVadisSuppliers

Active whistleblowing procedure in place 35%

Audit or assessment of suppliers on CSR issues 24%

Carbon disclosure project (CDP) respondent 7%

Formal code of business ethics 38%

Formal sustainable procurement policy 17%

Global Compact Signatory 14%

ISO 14001 certified (at least one operational site) 38%

OHSAS 18001 certification or equivalent (at least one operational site) 20%

Reporting on energy use or GHG emissions 71%

Reporting on health and safety indicators 78%

EcoVadis Assessment for ENDRESS UND HAUSER AG (GROUP) - January 2015

Michael Sinz ©Copyright EcoVadis™ 06.01.2015 07:50:51 – All rights reservedwww.ecovadis.com │ +33 (0) 1 82 28 88 88

[email protected]

Ecovadis Assessment Report - January 2015

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