Flender/Flender Gear Units/Bevel-helical speed reducer B4
ularly evaluate supplier performance and conduct ESG audits in order to work together on greater sustainability. Our long-term goal is

to have 1% ofour key suppliers ESG audited by 2. The ESG audits are based on the VDA 6.3 standard

andinclude specific assessment of compliance withthe Code of Conduct and EHS risks. In 2, we evaluated 1 suppliers with regard

to compliance with our Code of Conduct and EHS risks, 1ofwhich were also ESG audited according to VDA 6.3. Inaddition,

an external sustainability assessment was carried out for five suppliers by theElectronic Security Association (ESA). In addition, all suppliers supplying material used in our products (direct material) must pass the audit before they can supply. In fiscal year 2, we did not identify any suppliers with significant risk of child, forced or compulsory labor and did not have to ban suppliers due to environmental pollution. 7.5 RESPONSIBLE SUPPLY CHAIN CONTINUED 3-2a Number of suppliers assessed for environmental impacts YEARSUPPLIER ASSESSED FOR CODE OF CONDUCT COMPLIANCE AND EHS SITUATIONSUPPLIERS ASSESSED DURING VDA 6.3 AUDIT FOR EHS AND CODE OF CONDUCT COMPLIANCESUPPLIERS ASSESSED FOR SUSTAINABILITY BYTHIRD PARTY (EXTERNAL SUSTAINABILITY ASSESSMENT ESA INTERTEK)NEW ONBOARDED SUPPLIERS THAT SIGNED COMPLIANCE WITH CODE OF CONDUCT 2 8 4 5 4 2 5 3 4 3 2 1 9 1,1 2 1 1 5 7 SUSTAINABILITY REPORT 2GOVERNANCE & COMPLIANCE7 7.5 RESPONSIBLE SUPPLY CHAIN CONTINUED Constant dialogue ensures sustainability GRI 3-2, 4-1 | SDG 5.2, 8.7 constant and close dialogue with our suppliers especially our key suppliers is part of our identity and the basis for future viability. Together we work onsolutions for sustainable future and make contribution to our economic success and that of our suppliers. At the same time, we increase the positive impact on the environment and society. We work constantly to support supplier learning and capability development. In India, for example, we are working clos