Social

Employer Attractiveness

In a rapidly changing world of work, a company’s attractiveness as an employer is more important than ever. With the emergence of new working models, changing values among the younger generation and increasing competition for qualified employees, employer attractiveness is at the center of Comet’s interest. Having strong appeal as an employer helps to attract talented and committed employees to Comet and retain them in the long term. This safeguards Comet’s future innovative ability and productivity.

By contrast, if Comet does not appear attractive in the eyes of potential and current employees, it may face a number of challenges. If we do not succeed in positioning ourselves as an attractive employer, we will be exposed to significant risks with regard to our workforce. These risks range from difficulties in recruiting talent, to high turnover rates and losses in productivity and innovation.

Comet focuses on attracting and retaining young talent. Networking with talented young people while they are still students and winning them for Comet, as well as identifying and fostering existing talent within the company, are top priorities. Ensuring an attractive, flexible and inclusive working environment is the basis for this. A corporate culture that appeals to and retains both current and future employees is crucial.

Last year this included, for example, the anniversary celebrations to mark Comet’s 75^th anniversary at all global locations as a thank you to our employees for their loyalty.

Comet took part in the five-day BAM.LIVE 2023 education fair in Bern to support young people in their career selection phase in technical occupations. In addition, numerous pupils were able to get to look into our professions as part of career orientation day. University students had the opportunity to find out more about Comet and the exciting careers its offers at ETH Zurich’s Polymesse job fair.

In the extremely challenging 2023 reporting year, Comet had no choice but to introduce short-time working for some of the employees at the Flamatt site. By making a compensating payment, Comet was able to ensure that the affected employees – mainly staff from manufacturing and related areas – did not suffer any loss of earnings.

Our trainees took part in the Horizon Hydrogen Grand Prix (H2GP), a global education project. The aim was to deepen their knowledge of sustainability and renewable energy. In a multidisciplinary team, they built their own remote-controlled hydrogen car on a scale of 1:10, with the aim of covering the longest distance. As a sponsor and employer, Comet supported this exciting learning project, which offers real scientific and technical challenges for the next generation.

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. To guide and support our recruiting of new talent, we conduct needs analyses, regularly review our policies and regulations and adapt them as appropriate.

We attach great importance to providing employees with good support beyond their working life at Comet. Here, the Human Resources team provides support during the transition to retirement as well as other departures from the company.

We regularly train our employees on subjects such as quality, continuous improvement, health and safety, products and sales, management and leadership, compliance and IT security. In 2023, we switched the majority of safety training courses to our online training tool. New employees are assigned courses when they join the company. In this way we ensure a global standard and raise awareness of occupational safety. Employees are asked to repeat the training courses at regular intervals and are informed of changes. In addition, twice a year we provide six-hour training courses on the subject of semiconductors to give staff solid insight into the semiconductor industry and our products and markets.

Disclosures in accordance with GRI 2-7

Disclosures in accordance with GRI 401-1

Comet was forced to downsize its staff as a result of the correction in the semiconductor cycle and the generally weaker economy. This had a significant impact on the number of employees. Comet primarily reduced the number of temporary employees. Due to the weak order situation in the Plasma Control Technologies division, production-related jobs were disproportionately affected by the reduction. In contrast, Comet slightly increased the number of employees in research and development in order not to jeopardize its long-term technology leadership and to be prepared for the next upswing with new products. While the turnover rate among colleagues who left Comet involuntarily increased significantly, it remained almost the same for employees who left voluntarily in the reporting year.

Employee Health and Safety

Protecting employees’ health and safety is a fundamental aspect of the working world that is essential both for the well-being of staff and the success of Comet. As part of the semiconductor value chain and thus of a high-tech industry, investing in effective health and safety measures is key for us. Our workforce is made up of highly qualified specialists, whether in production, sales, product management or research and development. Replacing these skilled people at short notice in the event of illness or absence due to (occupational) accidents is a major challenge. Comet experienced this during the pandemic. The rising number of sick colleagues coincided with full order books. It was therefore not easy for Comet to process the orders. In our cyclical industry, avoiding production downtime is vital. Taking a forward-looking approach to health and safety is both our responsibility to our employees, and an economic necessity for the long-term success of the company.

Our products and their manufacturing processes require appropriate attention and careful 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. It is essential to comply with local laws and regulations, such as Germany’s Occupational Health and Safety Act (“Arbeitsschutzgesetz”) and the rules of the German Social Accident Insurance system (“Deutsche Gesetzliche Unfallversicherung”), as well as, in Switzerland, the ten points of the Federal Coordination Commission for Occupational Safety (“Eidgenössische Koordinationskommission für Arbeitssicherheit”, or EKAS).

Ensuring the health and safety of our employees is a top priority. For this reason, we strive to prevent occupational and other accidents. The use of lasers and chemicals as well as the emission of ionizing radiation in our manufacturing processes require appropriate measures to protect our employees from exposure to these potential hazards. In addition to these legal requirements, we also have an ethical and moral obligation.

The well-being of employees and customers is important to Comet’s management. 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. In addition, 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 for us. Occupational health and safety are regularly addressed in training or development. Each employee should feel physically and mentally fit at work and in the work environment.

Comet USA organized this year’s health and wellness fair in San Jose with external partners from the healthcare sector. At the stands, employees had the opportunity to take part in personal health tests and find out how healthier habits can help to improve their well-being. In Switzerland, a workshop for line managers was held at the Flamatt site together with the Swiss National Accident Insurance Fund (SUVA) under the tag line “Occupational safety starts at the top”. Accidents can only be avoided reliably if the preventive measures are enforced. This is a matter for line managers, whose attendance at the workshop was high. As further measures to prevent accidents inside and outside the company, information and health tips are regularly posted on the social intranet, on subjects like sports, tripping, falls and – as the number setting for accidents – doing housework.

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 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 division country general managers.

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

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 are 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.

GRI33EHStable">

Occupational health and safety metrics	2023	2022	±
Injuries 1)	24	16	50%
Lost workdays due to work-related injuries	9	370	– 98%
Lost workdays due to illness	12,703	13,755	– 8%

1) Injury arising out of, or in the course of work. Definition of injury according to local labour law (if applicable), otherwise according to internal organizational provision: recordable injuries only.

The number of work-related injuries increased in the reporting year, but the number of working days lost as a result was lower. The number of working days lost due to sickness-related absences also fell.

Responsible Supplier Standards

We are committed to offering our customers the highest-quality supply chain that meets all established product performance standards and expectations. It is therefore important for Comet’s commercial success to find and maintain the right suppliers. Our purchasing department maintains these high standards by continuously evaluating new suppliers, and also by regularly assessing the performance of our established suppliers. This process is all the more important as the careful selection and maintenance of relationships with suppliers who adhere to ethical and sustainable practices contribute significantly to Comet’s business success. In this way, we reduce what we consider to be the limited risks – as described in detail in the statements on conflict minerals and child labor – associated with the selection of irresponsible suppliers, which are far-reaching and range from direct financial losses to legal difficulties and long-term reputational damage. This protects our own future viability and competitive strength and also makes a positive contribution to the development of the economy and society.

Comet’s Supplier Code of Conduct (Supplier CoC), which has been in force since January 1, 2021, is based on the Responsible Business Alliance (RBA) Code of Conduct and sets out the basic requirements for Comet’s 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, 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.

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 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.

The fact that our initiatives, from sustainable procurement practices to the promotion of a diverse and inclusive workplace, do not go unnoticed by the outside world is reflected in our winning an ESG award from one of our largest customers. It recognized Comet for our consistent focus on our corporate values and our commitment to environmental, social and governance principles.

Disclosures in accordance with GRI 405-1

Community Engagement

Our stakeholders expect Comet to go beyond its economic interests and make a positive contribution to society. Social engagement, whether through social projects, environmental protection initiatives or local partnerships, has become an important measure of Comet’s responsibility and integrity. The double materiality analysis showed that the topic of social commitment is considered important but not central by management and stakeholders. Nevertheless, we are exposed to certain risks if we fail to engage in social matters. Social engagement is an important factor for Comet’s long-term success, its legitimacy and thus for maintaining our social license to operate.

Our approach to direct engagement in society is twofold:

• At Group level, as a learning organization and a company with a long tradition of personnel training and development, we pave the way to success for dozens of trainees, interns and young skilled workers. In addition, we support institutions that have committed themselves locally or globally to a similar task in the area of technology and education. In the reporting year, we continued our financial sponsorship of the Technorama science center in Winterthur, Switzerland, and invited young people to experiment and get to know the world of science on Future Day at Comet in Flamatt, or in tinkering sessions in our company.
• At a local level, our regional teams and locations engage opportunistically in social causes. The impetus for this often comes from committed employees, who are encouraged and supported in their activities by the local management. Examples include active participation in the Applied Materials Silicon Valley Trot and the Lam Research Heart & Soles Run 2023, the proceeds from which go to several charitable organizations or educational institutions in the USA. Events for youths were also organized at the locations in Tokyo and Hamburg, where young people were introduced to our innovative technologies in a playful way.

We believe that technology can improve education. But conversely, we also believe that fair access to education improves the technology that ensures sustainable progress, safety and quality of life for us all. That is why we want to awaken enthusiasm for technology among the next generation. This is part of the basis of our commitment to socially and environmentally responsible action.