GRI reporting on governance topics

Rieter reports on Anti-corruption (GRI-205), Anti-competitive Behavior (GRI-206) and Tax (GRI-207).

Rieter is committed to fighting corruption. As a global company, Rieter observes the laws and regulations of the countries in which it operates. The actions and practices of all Rieter companies and their employees are in accordance with the Universal Declaration of Human Rights of the United Nations, the fundamental conventions of the international labor organizations and the OECD guidelines for multinational companies.

The company's Code of Conduct defines what corruption is and what employees must do to prevent it. In addition, the company revised its Supplier Code of Conduct in 2022. In it, Rieter obliges its suppliers to comply with international anti-corruption standards.

Some of Rieter's locations are audited annually by Internal Audit. If indications of possible corruption arise in this context, they are investigated.

As part of the Internal Audit, 14 regular audits were conducted during the reporting year. No indications of corruption risks were identified in this context.

The Code of Conduct is part of every employee’s contract of employment. Employees take part in regular training on the topic of corruption prevention.

Compliance with the Code of Conduct is regularly verified in the context of internal audits and by additional audits. 14 audits were conducted in 2023.

No indications of possible cases of corruption were identified during the internal audits in 2023.

Rieter complies with the competition and anti-trust laws in all countries in which it operates and does not engage in any actions that restrict competition. In particular, Rieter will:

• not fix or discuss prices or other business terms with competitors;
• not make any arrangements with competitors on dividing markets;
• use business terms that ensure and respect the independence of its customers.

No legal proceedings were initiated against Rieter in the year under review for anti-competitive behavior or violations of antitrust and monopoly legislation. Nor are any proceedings against Rieter pending or concluded in which Rieter is a party.

Rieter recognizes that all taxes it pays and collects on behalf of governments are an integral part of its corporate social responsibility. As both a company and employer, Rieter complies, in good faith, with the applicable tax legislation and obligations in all countries in which the company operates. This applies to all direct and indirect taxes. Rieter also complies with international agreements and tax guidelines.

The tax strategy is designed to enable the company to achieve its business objectives and create added value for its stakeholders. The strategy is developed by the Head of Tax in close consultation with the CFO and the CEO and is incorporated into the company's strategic financial planning. This is approved annually by the Board of Directors. The key figures of the tax strategy appear in the monthly report on the balance sheet, cash flow and income statements, capital expenditure and projects, which the Group Executive Committee prepares for the Board of Directors.

Rieter is closely linked to its locations and knows that its tax payments are of great importance to local communities. The company maintains an adequate dialog with the tax authorities in all countries where it is subject to tax. The company provides a secure Integrity Line, operated by an external provider, to report suspected violations of laws and internal policies. Rieter also maintains a lively exchange with internal and external dialog groups. As a leading company in textile machinery technology, Rieter is an active member of the relevant industry associations, such as Swissmem.

In accordance with the Base Erosion and Profit Shifting (BEPS) campaigns of the OECD, Rieter prepares the Country-by-Country Report (CbCR) for the entire Rieter Group and makes it available to the responsible Swiss tax authorities. This authority shares the CbCR with the competent authorities in the countries that have signed the relevant agreements.