Social

Employer Attractiveness

People are our most important asset. In view of the shortage of skilled personnel in industry, particularly of research and development experts and engineers, we are expanding activities that support our visibility and attractiveness as an employer. Networking, attracting and retaining talented young people early on, during their studies, is therefore high on the agenda, along with identifying and developing diverse talents within the company and ensuring an attractive, flexible and inclusive work environment. We thus continued the relationship with the University of Illinois Urbana-Champaign initiated in 2021 to support students, invested in a workshop facility for training apprentices at the Swiss site in Flamatt and supported a research project at the Swiss Federal Institute of Technology (ETH) in Zurich. In addition, our US entity sponsored a workforce development initiative that resulted in identifying 34 candidates for internships and/or full-time positions. Since 2021, Comet also has a new program for the continuous and systematic identification and development of in-house talents. In Switzerland in summer 2021, Comet received the Fair-ON-Pay+ certificate for gender pay equity. The certificate is valid for four years. A brief maintenance test is carried out in year three to check whether the standard criteria are still met.

In terms of recognizing our employees’ engagement, we successfully rolled out our global Up & Beyond Award in 2022. The award recognizes employees who act as role models for Comet in how they collaborate, demonstrate our values, and contribute above and beyond the expectations for their daily jobs. In 2022, we gave out 175 Up & Beyond Awards to recipients in every Comet location and in every area of business. Some examples of specific reasons for being selected for the award are cross-functional and cross-divisional teamwork, betterment of the workplace, and overcoming unstable supply chains.

The retention and engagement of our employees and their loyalty to the company play just as important a role as hiring talented new people. We therefore periodically conduct market benchmarking and perform employee pulse surveys to monitor the level of satisfaction and engagement of our employees, and, when needed, initiate measures to strengthen it. In order to recruit new talent, we conduct needs analyses and regularly review policies and regulations, adjusting them as appropriate.

We also value the employee retirement experience. Our Human Resources team focuses on successful transitions, whether the employee is retiring or leaving the company voluntarily or involuntarily.

In 2019 and again in 2021, we conducted a worldwide engagement survey. This “pulse check” confirmed the good progress made toward becoming a higher-performing organization. The message from it was that we should continue on our chosen path and improve organizational development and, where necessary, improve organizational development and excellence in appropriate ways. For example, it was recommended to:

1. Continue to leverage go-to-market initiatives, such as a common Group framework for sales processes and the introduction of global sales training with one integrated, state-of-the-art training program
2. Focus on integrated talent management, improving talent acquisition in a very competitive market for top talents, developing and retaining our top talents and providing diverse career opportunities within the Group

To address the latter thrusts, we implemented initiatives to develop talent, train apprentices in our own apprentice workshops, and offer progressive social benefits as an important part of our culture. In 2022, we focused on understanding what makes Comet an attractive employer and what it is that we need to do in order to attract and retain talent in future. Based on internal surveys and market research, we determined that the best way for the Comet Group to differentiate itself in the employment market is through the company’s distinctive quality of curiosity. To attract and engage the best talent, it is our mindset of curiosity that will set us apart from competitors for talent. Curiosity to get to the bottom of things, or to break new ground. Curiosity as the key to innovation and thoughtful collaboration, to empowering employees to explore, and to better understanding our customers. In a word, curiosity enables the high performance we strive for.

With respect to training, we provide our employees at all levels with regular vocational training in subjects such as quality and excellence, health and safety, product and sales, management, and leadership. In 2022 all managers globally were trained on our new performance and planning approach, whereby employees are empowered to take responsibility for their goals and development needs, and leaders are encouraged to set team goals, to give regular feedback and coach their team members to achieve higher performance and learn from failure. We also successfully rolled out eLoomi, a global e-learning tool, which helps to raise awareness and train employees on global policies such as the Code of Conduct, Trade Compliance, Travel and Group Purchasing, as well as global HR processes like goal-setting and salary reviews. Employees also have access to content that is directly relevant to them – for example, how to work safely from home. We continued to implement development plans for employees who had been identified as key players in our talent review process. These development plans include mentoring (across regions and businesses), short-term cross-functional projects, international assignments, and coaching. In Flamatt we conducted training for all leaders on how to lead in a hybrid world; depending on the feedback, we plan to roll this training out globally.

Employee Health and Safety

Both our products and our manufacturing processes require appropriate attention and compliance with health and safety standards. The basic principles for this are set out in the Quality, Environmental and Health & Safety policy. Occupational safety is ensured, practiced and documented in our management system, which covers all employees, without exception, including external or temporary service providers, i.e., anyone working on our sites and in our buildings. Depending on the location, the organization of health and safety is tailored to the size of the unit and the potential hazards.

In all locations, the local laws and regulations are reflected in how we safeguard health and safety. In Germany, for example, these include the Occupational Safety and Health Act (“Arbeitsschutzgesetz”) and the rules and regulations of the Social Accident Insurance system (“Deutsche Gesetzliche Unfallversicherung”), while in Switzerland, key norms are the ten points of the Federal Coordination Commission for Accident Safety (“Eidgenössische Koordinationskommission für Arbeitssicherheit”, or EKAS).

Very importantly, besides these legal and regulatory requirements and the business continuity aspect, we also have an ethical and moral obligation to our employees. We have no higher priority than to protect the safety and health of those who work for us, and we strive to reduce the number of accidents to the absolute minimum possible. As notable examples, the use of lasers and chemicals as well as the emission of ionizing radiation in our production processes require corresponding measures to protect our employees from exposure to those potentially dangerous sources.

Our management cares about the well-being of our employees and customers. The organizational units of our company and all employees are responsible for safety and health at work. We are committed to complying with the appropriate laws and safety standards and conduct annual audits, depending on location and exposure. Beyond this, we report deficiencies or violations immediately so that they can be remedied as quickly as possible or avoided in the future, and we strive for improvements in safety at work.

Preventive measures are essential to us. Occupational health and safety are regularly addressed in training or development. Each employee should feel physically and mentally comfortable at work and in the work environment.

The achievement of and improvement in occupational health and safety objectives is ensured by continuous process monitoring and review of the effectiveness of these processes. Policies and guidelines are reviewed at regular intervals to ensure that the management system is up to date and effective. If necessary, they are amended. Such reviews are also and especially triggered by changes in customer requirements.

The responsibilities for health and safety are mapped in the Comet Group management system. Essentially, the division country general manager ensures and is accountable for compliance with the local health and safety standards and procedures. Their implementation is the responsibility of the country division general managers.

Reflecting the deeply entrenched awareness of occupational health and safety in our Group, we had no fatalities in our factories in the year under review.

Occupational health and safety management in practice

Identifying work-related hazards and assessing related risks is of the utmost importance in reducing the number of accidents. In Switzerland, for example, a risk assessment is carried out by occupational physicians and other occupational safety specialists (“ASA specialists”). The risks are then classified according to the risk portfolio. To ensure the quality of these processes, a systematic revision of the portfolio is performed, and new jobs are integrated. The results then feed into the EKAS ten-point system for occupational health and safety management.

Should a work-related hazard or a hazardous situation still arise, employees and workers can report it by means of the two-part “Safer card”. The first part is filled out by the employee or worker with his or her assessment, so that the hazard is immediately signposted. The second part is used by the manager to record a hazard report. The hazard must be eliminated within 24 hours. In addition, an employee may refuse to work if the situation is too dangerous for him or her, as Comet is committed to the safety charter of Suva, the Swiss Accident Insurance Agency (“Schweizerische Unfallversicherungsanstalt”).

If a work-related incident occurs, an investigation is carried out. When appropriate, a root cause analysis is performed with the involvement of external specialists.

Comet has issued and integrated into its management system a comprehensive portfolio of policies and guidelines for all types of hazards, notable examples being the Comet AG Safety Regulations, the policy for external companies/contractors, and the policy for dealing with non-ionizing radiation (NIR) and noise sources. Employees and workers are involved in the development, implementation and evaluation of the occupational health and safety management system through the application of element 8 of the ten-point EKAS, which deals with the inclusion of employees. The employees are included in the planning of measures, which is especially important when purchasing personal protective equipment. Upon joining the company, continual in-depth safety training is provided depending on the employee’s role. In addition, occupational health and safety is regularly addressed in training and development.

Responsible Supplier Standards

We are committed to providing our customers the highest quality supply chain that meets all established product performance standards and expectations. Our purchasing department maintains these high standards by continuously evaluating the performance of our established suppliers.

The Supplier Code of Conduct (Supplier CoC), which has been in force since January 1, 2021, is based on the Code of Conduct of the Responsible Business Alliance and sets out the basic principles and requirements for Comet suppliers and external service providers regarding their responsibility to their stakeholders and the environment. The Supplier CoC covers the following topics:

• Compliance with the law
• Prohibition of corruption and bribery
• Fair competition conditions, antitrust laws and intellectual property rights
• Conflicts of interest
• Respect for the fundamental human rights of workers
• Prohibition of child labor
• Health and safety of employees
• Environmental protection
• Supply chain
• Materials compliance

By signing the Supplier CoC, our suppliers agree to abide by the principles and requirements of this Code in addition to their obligations under other contracts with us. We reserve the right to amend the requirements of the Supplier CoC to reflect changes in our compliance policies.

In general, we do not operate in business sectors or regions that pose significant risks of social responsibility violations by suppliers, including risks related to child labor or to the respect for the fundamental human rights of employees. Concerning child labor, our suppliers certify that they do not hire workers who are less than 15 years of age (in accordance with ILO Convention 138) and that they comply with the domestic standards for the protection of children. Regarding forced or compulsory labor, our suppliers certify that they respect the fundamental human rights of workers, such as, among other aspects, by refusing to hire or allow someone to work against their will.

To minimize the risk of violations of the Supplier CoC, we strive for long-term partnerships with reliable suppliers. However, if a supplier has knowledge of abusive behavior by the supplier or one of our employees, or if the supplier suspects such behavior, the supplier must inform us immediately. In addition, suppliers agree that we, the Comet Group, including our subsidiaries or designated agents (which includes third parties), may verify compliance with the Supplier CoC, including through audits, on-site inspections of facilities or the review of books and records. In case of a nonconformance, we follow the procedure set out in the ISO 9001 standard. When appropriate, we work together with our suppliers to identify measures to resolve issues. However, we reserve the right to terminate the business relationship with suppliers (subject to applicable laws) if they fail to comply with the Supplier CoC. We also reserve the right to take legal action against them.

Other important elements of the Supplier CoC are social and environmental aspects. By signing the code, suppliers promise, for example, to:

• Promote equal opportunity and equal rights for employees regardless of color, ethnicity, national origin, social background, disabilities, sexual orientation, political or religious beliefs, gender or age
• Not tolerate any unacceptable treatment of workers, such as psychological violence, sexual harassment or discrimination, and
• Act in accordance with applicable legal requirements and international standards regarding environmental protection.

As part of its due diligence measures in the reporting year, Comet identified minor deviations from best practices with regard to conflict minerals regulations at a small number of suppliers. This was brought to the attention of the suppliers and the situation continues to be closely monitored.

Community Engagement

Our innovative power is one of our success factors. By entering into purposeful and meaningful collaborations, we let society share in our ideas, know-how and technological developments.

We believe that technology can improve education. But we also believe that, conversely, fair access to education improves technology, which provides sustainable progress, security and quality of life for all of us. This forms part of the basis of our commitment to acting in a socially and environmentally responsible manner.

Our approach to community engagement is twofold:

1. At the level of the Group: As a learning organization and a company with a long tradition of staff training and development, we pave the way to success for dozens of apprentices, interns and young professionals at any one time. Moreover, we support institutions that are committed to a similar mission in technology and education on a local and global basis. We also launch Group-wide initiatives such as our traditional fundraising before the New Year holiday season to support UNICEF in its educational program.
2. Our regional teams and sites involve themselves opportunistically at the local level in social issues. The impetus often comes from engaged employees, who are encouraged and supported in their activities by the local management.