Responsibility
As a family-owned, values-based technology group, success for Freudenberg is financial success as well as fulfilling the company’s responsibility for society. The two goals have been inextricably linked since the company’s founding.
Quicklinks
At Freudenberg, responsibility for society covers five areas: Sustainability, Health, Safety and Environmental Protection (HSE), Corporate Citizenship, Compliance and Human Rights & Labor. All 5 areas are firmly anchored in Freudenberg’s Values and Principles and closely linked to one another.
Facts and Figures
Key figure | 2017 | 2018 |
| Energy | ||
| Energy consumption | 2.3 million MWh | 2.4 million MWh |
| Energy cost | 154 million € | 163 million € |
| Energy cost / sales | 1.6% | 1.7% |
| Health and Safety | ||
| Total number of accidents with at least one day of work lost | 140 | 156 |
| LDI-FR | 1.4 | 1.5 |
| Occupational health & safety and environment protection | 26.4 million € | 28.8 million € |
| HSE management system | ||
| Plants with ISO 14001 | 85% | 88% |
| Plants with OHSAS/ISO 45001 | 65% | 74% |
| Sales, equity ratio and number of employees | ||
| Sales | 9,345 million € | 9,455.4 million € |
| Equity ratio | 47.4% | 51.9% |
| Number of employees | 47,653 | 49,137 |
Sustainability
We strive for solutions that improve living conditions around the world and support sustainable developments for the environment and society. Product and process sustainability have always been part of responsibility practiced at Freudenberg. Sustainability has two dimensions for us.
- Footprint: How can we design our processes and run our sites to save resources?
- Handprint: Which products and solutions can we develop so that our customers can produce more efficiently and sustainably or have their end products use fewer resources?
Sustainability at Freudenberg: Levitas. To reduce road traffic CO2 emissions, both engines and transmissions must work more efficiently. Freudenberg Sealing Technologies has developed a sealing ring for automatic transmissions that uses microstructures to produce an oil film that allows the seal to float, thereby reducing friction.
Health, Safety and Environmental Protection
The primary objective of our HSE (Health, Safety and Environment) principles is the prevention of all accidents, preventive health care, and the continuous reduction in the negative impact of business activities on the environment.
Management systems
The expansion of occupational health and safety management systems (OHSAS 180001) and switch to ISO 450001 and environmental protection systems (ISO 14001 or EMAS) continued in 2018. Numerous sites are implementing DIN EN ISO 50001-compliant management systems to reduce energy consumption and limit the environmental impact. Freudenberg Sealing Technologies, EagleBurgmann, Vibracoustic, Freudenberg Performance Materials, Freudenberg Filtration Technologies and Freudenberg Home and Cleaning Solutions have introduced the management systems at their German production sites. Other production sites at EagleBurgmann in Austria and Freudenberg Performance Materials in France have also followed this example. Currently the Group is checking which European sites require energy audits in accordance with DIN EN 16247-1.
Environmental Protection
Freudenberg believes environmental protection is an important responsibility and makes sure the company’s activity is as environmentally friendly as possible. The goal is to continuously reduce the negative impact along the entire value chain, by using resources more efficiently, reducing emissions, saving energy, water and other materials while improving transport processes. Freudenberg also includes ecological factors when redesigning and modernizing buildings.
Freudenberg uses many raw materials and processes in production. The materials and processes vary in their impact on occupational safety and the environment. Freudenberg has many ways to limit these risks. The goal is to continuously reduce the physical hazards on site and their impact on the environment.
Freudenberg actively searches for alternatives to hazardous materials or those with a pending REACh (European Regulation on Registration, Evaluation and Restriction of Chemicals) classification prior to the passage of any regulations. Assessments are carried out to prevent any negative impact on production from restrictions placed on a material. Many products are developed in phased processes to make sure a new product’s environmental impact is less than its predecessor.
Corporate citizenship
Corporate citizenship at Freudenberg extends beyond the value chain. Our goal is to be a good corporate citizen and good neighbor in all the countries, states and communities we call home. Thus, many companies, locations and employees are socially engaged and support a broad spectrum of projects - from small initiatives on site up to complex international programs.
Compliance
As early as 1887, founder Carl Johann Freudenberg drafted his first business principles to help his sons take over the business. The document is the basis for Freudenberg’s 10 Business Principles for partners and employees. One principle stipulates success must come from performance. Freudenberg shall not be involved in illegal or unethical business practices.
Business Principles and Guiding Principles
Freudenberg’s Business Principles were used to create Guiding Principles, which apply to all interactions with employees, business partners, stakeholders and third parties.
Compliance structure
The Business Groups at Freudenberg have general autonomy when making business decisions. The Business Groups are generally responsible for compliance with laws and regulations. At the holding level, and thus the duty of the Freudenberg Compliance Management Council, the focus is on the most important compliance issues relevant to the Group and those with international implications and which may especially pose a threat to Freudenberg’s reputation.
Code of Conduct
The Code of Conduct is derived from the Business Principles and Guiding Principles, with a close focus on Responsibility. The Code of Conduct is the same everywhere around the world and is designed to ensure that respect for the law and proper conduct remain a cornerstone of how Freudenberg conducts business.
Ethics Offices
The Ethics Offices are an important part of Freudenberg’s Compliance Management System. The offices are a contact for any employees who – for whatever reason – feel they cannot turn to their superiors, HR team or their union representatives. The opportunity to confidentially and proactively report compliance violations or impending violations in a confidential environment helps create a culture of trust and protects Freudenberg’s internal values and principles.
- Corporate Ethics Office in Weinheim for Europe: CorporateEthicsOffice(at)freudenberg-compliance.com
- Regional Ethics Office North America: EthicsOfficeNorthAmerica(at)freudenberg.compliance.com
- Regional Ethics Office South America: EhticsOfficeSouthAmerica(at)freudenberg.compliance.com
- Regional Ethics Office India: EthicsOfficeIndia(at)freudenberg.compliance.com
- Regional Ethics Office Asia: EthicsOfficeAsia(at)freudenberg.compliance.com
Risk management and Corporate Audit
Anti-corruption measures and evaluation of their effectiveness also remained a component of risk management and the work of the Corporate Audit team. The goal of the department is to uncover corrupt deals, evaluate the effectiveness of counter measures and improve as needed.
Internal audits examine compliance with the standards. Employees receive anti-corruption training in classroom sessions and e-learning programs. The Compliance Council, Corporate Audit and the Ethics Office work together to assess any incidents that may arise.
Human Rights & Labor
Guiding Principle People
As a family company, we are devoted to our employees’ well-being and personal development. We reject all forms of discrimination and harassment and show understanding and respect in our dealings with each other. We promote a multi-cultural environment where employees work together in worldwide teams to enrich our culture and capability. We believe in the value of enduring relationships with customers, suppliers and industrial partners.
Guiding Principle Responsibility
Our company and its family shareholders together are committed to protecting the environment and being responsible corporate citizens in all countries and communities in which we do business. We take all possible care to ensure the safety of the workplace and of our products. As a family company, we strive for the highest standards of personal behavior. Fairness and integrity guide our conduct amongst ourselves, towards our business partners and the general public.
Leadership Principles
The Freudenberg Group upholds a social commitment to all its employees. In this regard, it is impossible to define a uniform standard. The way this commitment is applied depends rather on the laws, practices, needs and opportunities in each respective country. Discrimination and exploitation of vulnerable people is explicitly prohibited anywhere in the Group.
Thinking beyond the value chain
Global Compact
The Freudenberg Group signed the United Nations Global Compact in January 2014. The Global Compact is a voluntary corporate responsibility initiative which currently has over 12,000 participants – including 8,000 businesses from more than 140 countries – who commit to aligning their operations to values and sustainability. The corporate commitment, signed by the CEO of the relevant company, is addressed to the United Nations Secretary General.
“Freudenberg has always aligned itself in accordance with values and sustainability. We signed the Global Compact, because it’s important to communicate our conduct towards our customers, neighbors, potential colleagues and institutions,” explained Dr. Mohsen Sohi, Speaker of the Freudenberg Group’s Board of Management.
The principles underlying the Global Compact are also anchored in the Freudenberg Group’s Guiding Principles. There are a total of ten principles in the four fields of Human Rights, Labor, Environment and Anti-Corruption.
Learn more about this topic in the current annual report starting on page 14.
