Sustainability report / Non-financial report

The “Sustainability report / Non-financial report” is a voluntary submission that contains information pursuant to Sections 289b to 289e HGB (German Commercial Code) and Sections 315b and 315c HGB. In compliance with Section 317 (2) sentence 4 HGB, it is excluded from the audit.

Economic, environmental and social sustainability is an important component of the PCC Group strategy and all companies of the PCC Group are committed to implementing an ethically correct and sustainable approach in their business activities. The investment holding company PCC SE pursues sustainability in the economic sense primarily through its responsible and risk-conscious corporate governance and its predominantly long-term approach to the management of its investment portfolio. Our goal is to continuously and sustainably increase the value of this portfolio. This economic component of sustainability goes hand in hand with sustainability in the environmental and social senses. A holistic understanding of sustainable development that encompasses all three aspects is therefore also the basis of our Group-wide strategy for valuecreating growth.

Explanations of the terminology used for Scopes 1 and 2 can be found in the “Non-financial report” section that follows.

The Sustainability Report of the PCC Group is structured as follows:

PCC SE is a portfolio holding company focused on sustainable growth and the pursuit of a long-term investment strategy. We have a diversified portfolio of Group companies primarily active in the production of chemical feedstocks, specialty chemicals and silicon metal. We also have major interests in the field of container logistics. As a growth-led investor, PCC SE supports its affiliated companies in their entrepreneurial development and in the expansion of their various specific strengths.

The headquarters of PCC SE and the PCC Group is Duisburg, Germany. Waldemar Preussner, who is the sole shareholder and Chairman of the Supervisory Board of PCC SE, founded Petro Carbo Chem Rohstoffhandelsgesellschaft mbH in 1993, which – under the name PCC Trade & Services GmbH – is still the largest trading company in the PCC Group today. In the past fiscal year, the PCC Group with its more than 3,200 employees in 17 countries recorded consolidated sales of € 993.6 million. The majority of these revenues, around 67.8 %, were generated by the chemical-producing segments Polyols & Derivatives, Surfactants & Derivatives and Chlorine & Derivatives, primarily at their sites in Poland. In the same period, PCC realized consolidated earnings before interest/financial result, taxes, depreciation and amortization (EBITDA) of € 112.3 million. Capital expenditures in fiscal 2023 totaled € 142.5 million, an increase of 22.5 % year on year.

The Group strategy of PCC focuses on long-term corporate investment and sustainable business development aligned to generating and consistently growing enterprise value. We actively manage and continuously optimize our existing investment portfolio, firstly by constantly reviewing projects and acquisitions with the aim of diversifying into new market segments in line with our expertise, and secondly by occasionally opting to develop activities that are not part of our core
business up to a certain level of market maturity ready for selling on. Overall, our objective in adopting this approach is to create the basis for further sustainable growth going forward.

The largest site of the PCC Group is located in Poland, some 40 kilometers north-west of Wrocław in the small Polish town of Brzeg Dolny, the headquarters of our two largest chemical companies PCC Rokita SA and PCC Exol SA. There these entities produce chemicals such as polyols, surfactants, chlorine, chlorine co- and downstream products, phosphorus derivatives and other specialty chemicals. In the Silicon & Derivatives segment, we manage the silicon metal plant of our Group subsidiary PCC BakkiSilicon hf. in Iceland. The Trading & Services segment manages, among others, our founding company PCC Trade & Services GmbH, and in the Logistics segment our container logistics subsidiary PCC Intermodal S.A. connects European destinations, often via its own transshipment terminals. The Holding & Projects segment manages projects aligned to the future, a current example being a new production plant for specialty chemicals in Malaysia. The end of 2023 saw commencement of the commissioning phase for this plant, which is operated by PCG PCC Oxyalkylates Sdn. Bhd., a joint venture between PCC SE and PETRONAS Chemicals Group Berhad.

The specific contribution made by the PCC Group to sustainable business practices is reflected in our CSR (Corporate Social Responsibility), or in other words, the Group’s solid commitment to corporate citizenship. The basis for our CSR is provided by the Code of Ethics and Conduct of the PCC Group.  This is binding for all employees in the Group and stipulates, in particular, the high priority assigned to environmental protection and health and safety, as well as prescribing a culture
of trust, fairness and reliability in our dealings with colleagues and business partners.

Building on these rules of conduct, PCC SE has established – binding Group-wide – sustainability guidelines that define the framework for sustainable management and development within the PCC Group:

For PCC SE and the Group companies, CSR means in particular taking appropriate and responsible account of the concerns of all stakeholders at all our sites. As an international group of companies operating in many different markets, PCC maintains sometimes very close relationships with a wide variety of interest groups: In addition to our employees from diverse cultures, these include our customers, suppliers and other business partners, the local residents of our 41 sites in 17 countries, the private subscribers to our bonds, various institutional investors, banks and other financial institutions, as well as government and public institutions such as regulatory authorities and universities.

An important principle of our CSR is open and transparent communication with our stakeholders. For example, we present our quarterly and annual reports to our investors live in internet-based interactive investor conferences, in which we always include a Q&A session. And in late fall, PCC SE traditionally holds information evenings in several major German cities, these events having only been suspended for two years during the coronavirus pandemic for safety reasons. At these evening engagements, the members of the Executive Board of PCC SE provide investors, bondholders and other stakeholders with information covering the latest business developments, taking questions from the audience and making themselves available for personal discussions. The two Group companies listed on the Warsaw Stock Exchange, PCC Rokita SA and PCC Exol SA, also maintain direct communication with their stakeholders at various information events.

The extended principles of CSR within the PCC Group include, for example, the rejection of all forms of corruption and discrimination, unconditional respect for human rights, a commitment to fair working conditions, and compliance with high safety standards for all our employees, as well as fulfillment of all environmental requirements. We take ownership of socially accepted standards, thereby underpinning them further. We also commit to compliance with standards that go beyond general CSR norms, for example by having the PCC production companies participate in environmental protection initiatives such as the Carbon Disclosure Project, the United Nations Global Compact or the chemical industry’s Responsible Care® initiative.

The portfolio holding company PCC SE assumes responsibility for strategic positioning and guiding principles relating to Group-wide areas of importance, such as transparency in communication with our investors. Meanwhile, the individual PCC Group companies serve as the actual drivers of the dialog with diverse interest groups at our different sites. It is they who implement our sustainability strategy within the Group segments.

The Group companies operating in the chemicals production sector (assigned to the Polyols & Derivatives, Surfactants & Derivatives and Chlorine & Derivatives segments) are constantly strengthening their commitment to sustainability. They continue to improve the efficiency of their production facilities, protecting
the climate and the planet’s limited natural resources through the adoption of particularly energy-saving technologies and the increased use of renewable raw materials. A pioneer in CSR among our affiliates is PCC Exol SA, one of the most advanced surfactants manufacturers in Central and Eastern Europe. For example, PCC Exol SA is the first company in Poland to have implemented and registered the Good Manufacturing Practice (GMP) system certified by the European trade association EFfCI. The company also participates in the Carbon Disclosure Project (CDP), which involves reporting on its environmental impact. We are likewise establishing a sustainable supply of the raw material palm kernel oil in Ghana, West Africa, for the surfactants production of PCC Exol SA. The palm kernels required for our organic production there are not harvested on large plantations; rather, they are collected from small farmers by our subsidiary PCC Organic Oils Ltd. Ghana, Accra. Some 300 smallholders who regularly supply our company with palm kernel nuts are currently in the process of being re-certified by the Roundtable on Sustainable Palm Oil (RSPO). In addition, PCC Exol SA and PCC Consumer Products Kosmet Sp. z o.o. are RSPO-certified for the processing of sustainable palm oil.

PCC Rokita SA, the largest PCC company and one of the biggest chemical companies in Poland, is also increasingly focusing on sustainability and is steadily expanding its portfolio of environmentally and climate-friendly products. For example, chlorine supplied by PCC Rokita SA under the PCC Greenline® brand is exclusively manufactured using an environmentally friendly and resource-conserving membrane process, with this PCC subsidiary also ensuring that only energy from renewable sources is used for production of PCC Greenline® chlorine. Through substantial investment in the modernization and expansion of its production capacities, PCC has, since acquiring a majority stake in PCC Rokita SA in 2003, created a flourishing chemicals group that is now also an important factor for the region, for example as a major and multi-award-winning employer. In addition, PCC Rokita SA ’s modern power plant, a combined heat and power facility, supplies large parts of the nearby small town of Brzeg Dolny with district heat. In Poland, coal-fired residential heating still predominates, as was also the case in Brzeg Dolny prior to PCC Rokita SA commencing its supply operations.

The PCC chemical companies pursue sustainability not only through their modern and efficient production methods, but also through the products they manufacture. Our innovations render products and commodities that many people use in every-day life more durable, safer and more environmentally compatible. The innovative chemical substances produced by the portfolio companies of our chemicals business ensure, for example, that hydraulic oils need to be changed less frequently and homes can be insulated more effectively; they make cosmetics even more skin-friendly and facilitate the manufacture of high-convenience foams that are also virtually free of emissions of volatile organic compounds, as well as being exceptionally flame-retardant.

PCC’s chemical companies are underscoring this commitment with a new product portfolio of sustainable chemicals under the aforementioned brand name PCC Greenline®, a range comprised of around 180 products. BioROKAmina K30B, for example, is a high-purity amphoteric surfactant that we recommend as an environmentally friendly and compatible ingredient e.g. in natural cosmetic products. To manufacture this surfactant, PCC Exol SA uses, among other things, a palm kernel oil derivative that we obtain from oil palm kernels sustainably farmed by smallholders, i.e. not from large plantations. Another PCC Greenline® product is EXOcare®TE20 Flakes MB, based on renewable vegetable raw materials, a product used in hair cosmetics, for example, to give hair elasticity and suppleness. PCC Greenline® also includes CAMOLIN® liquid soap, which is 100 % vegan, i.e. has no animal-derived ingredients, and contains at least 98 % ingredients of natural origin.

The silicon metal plant of PCC BakkiSilicon hf. in Iceland utilizes the island’s rich geothermal resources. The plant’s energy supply is thus covered entirely by renewable energy sources (geothermal energy and also hydropower); moreover, the installation of state-of-the-art filters makes the plant virtually free of dust emissions. The plant’s CO2 footprint is therefore exceptionally low compared to other silicon plants worldwide and is set to be further improved through the increased use of renewable raw materials. See also the section on environmental issues in the “Non-financial report” section that follows.

The Group-internal service entities managed within this segment include, in particular, the Conventional Energies business unit, which primarily supplies the production facilities of PCC in Poland with steam and electricity. Here, dust emissions have been significantly reduced in recent years through the installation of modern electrostatic precipitators at the PCC cogeneration plant located at the Brzeg Dolny chemical site. The facility not only supplies energy for PCC’s chemical production at the Brzeg Dolny site, but also provides a large proportion of the households in the small town with district heating.

The mainstay of our Logistics segment is the intermodal container transshipment business. PCC Intermodal S.A. runs combined transport operations throughout Europe on the basis of five wholly owned container handling terminals in Poland and Germany, facilities that have been greatly expanded and modernized in recent years. It therefore efficiently combines environmentally friendly rail and flexible road transport, thus supporting the transfer of traffic from road to rail in line with demands expressed by the European Union.

In the Holding & Projects segment, we manage, in particular, the Renewable Energies business, which focuses on the construction and operation of small hydropower plants that are exceptionally environmentally friendly due to their relatively low impact on nature. Six of these power plants, five in North Macedonia and one in Bosnia and Herzegovina, have so far been connected to their respective national grids.

PCC affiliates are involved in a whole range of certification procedures and initiatives. For example, our chemical companies PCC Rokita SA, PCC Exol SA and PCC Synteza S.A. all participate in the chemical industry’s global Responsible Care® initiative. Our production companies have also received several awards for their sustainability and can point to high ratings and rankings in this domain. For example, PCC Synteza S.A. was awarded a platinum certificate in the renowned EcoVadis 2022 sustainability rating and is thus among the top 1 % of companies in the rating. Two of our companies have been awarded a Gold certificate: PCC Exol SA (2023) and PCC MCAA Sp. z o.o. (2022). PCC Rokita SA (2023) and PCC BakkiSilicon hf. (2023) achieved Silver status. The holding company PCC SE underscores its commitment to sustainability through its participation in the Renewable Carbon Initiative. The main certifications and initiatives are assigned to each of the five sustainability aspects of non-financial reporting, as described below.

In compliance with Germany’s CSR Directive Implementation Act (CSR-RUG) adopted on April 19, 2017, the PCC Group has published annually since fiscal 2017 a voluntary non-financial report pursuant to Sections 315b and 315c in conjunction with Sections 289c to 289e HGB (German Commercial Code). PCC SE presents its non-financial report as an integral part of the annual Group management report. Unless otherwise stated, the performance indicators relate to the companies included in the scope of consolidation. No adjustments are made in respect of the previous year to reflect changes to the scope of consolidation in the year under review.

This non-financial report is based on the requirements of the German Sustainability Code [DNK] and summarizes the key facts relating to the five aspects specified, namely environmental issues, employee issues, respect for human rights, social issues and the fight against bribery and corruption.

In addition, the general section of this non-financial report describes measures and initiatives of the PCC Group and individual companies that demonstrate our Group’s multifaceted commitment to our social responsibility as a corporate citizen.

In the following we provide a report on the guidelines, risks, measures and goals, as well as the key non-financial performance indicators for each of the five sustainability aspects mentioned. Our approach here is to present the PCC Group as a whole; hence we refrain from mentioning individual affiliates.

Environmental issues primarily affect the interests of the residents living near our sites and other local communities. In addition, entrepreneurial activities such as those of the PCC Group contribute to the tackling of global environmental concerns (such as the fight against climate change). We are committed to complying with all applicable regulations, provisions and standards with regard to environmental protection and to implementing all our investments using modern, environmentally friendly and efficient technologies, particularly energy-saving solutions. Aside from the safety of our employees and local residents, we regard the preservation of the environment as our top priority.

PCC’s business activities, and especially our chemical production operations, exert an effect on the environment. Significant environmental impacts include emissions of air pollutants, consumption of raw materials and feedstocks, handling of hazardous substances, consumption of water and energy, wastewater pollution, waste disposal, accidents and noise emissions.

Companies of the PCC Group continuously combat these impacts by analyzing all areas and activities from which adverse effects on the environment and on the efficient use of resources may emanate, and by taking mitigating measures where necessary – at the same time carefully taking into account the information provided by all interest groups, in particular local residents. This direct dialog with stakeholders at the local level is among the tasks and duties assigned to the
respective Group companies.

One example that demonstrates how PCC takes environmental concerns into account in its investment projects is the silicon metal production plant in Iceland. Silicon production is extraordinarily electricity-intensive, but the energy supply of the PCC plant is covered entirely by regenerative sources, primarily geothermal energy. The dust emissions generated during silicon production are almost completely removed from the ambient air in our plant by especially effective filter systems. The goal is also to operate the plant so that it is climate-neutral throughout. Due to the nature of the chemical reaction, known as reduction, CO2 will always be produced in the process, even with the exclusive use of renewable energy. In order to make these emissions climate-neutral, the reducing agent coal currently being used is increasingly being substituted in the process by sustainably produced charcoal. As a result, more and more biogenic CO2 is produced in the process instead of fossil CO2. This biogenic CO2 was previously removed from the atmosphere by the timber vegetation used – when it is emitted, it therefore does not contribute to an increase in the CO2 concentration. In addition, the CO2 produced is to be captured and used in a further process to produce green methanol, a climate-friendly fuel. This can contribute, in particular, to the decarbonization of shipping, which today still largely uses fossil fuels. We have started collaborating with the national Icelandic energy supplier with the aim of testing the production of green methanol. According to sustainability certifications of green methanol already available on the market, it can save up to 90 % of greenhouse gas emissions compared to fossil-based methanol, as indicated by calculations by the sustainability certification provider ISCC, for example. And the products of PCC BakkiSilicon hf. are also expected to contribute to sustainability and climate protection in the future. Silicon powder, for example, serves as the starting material for a novel anode material being developed by Group company PCC Thorion GmbH in collaboration with the Fraunhofer Institute for Solar Energy Systems ISE. The anode material is expected to improve the performance of lithium-ion batteries, a key component of climate-friendly electromobility.

The Logistics segment’s largest business area is that of intermodal container transport, a system that efficiently combines environmentally friendly long-haul rail transport and flexible short-haul road transport. Compared to road-only transport, our combined intermodal transport services enabled emissions savings of 391,561 tonnes (i.e. metric tons) of the greenhouse gas CO2 in 2023 (previous year: 402,000 tonnes of CO2) with a total productive output of 3,152.7 million tonne-kilometers (previous year: 3,237.0 million tonne-kilometers). These calculations are based on data from the European Environment Agency of November 5, 2015 for the reference year 2014.

In recent years, the Conventional Energies business unit has reduced dust emissions from the PCC combined heat and power plant at the Brzeg Dolny chemical site with the installation of modern electrostatic precipitators. Meanwhile, the Renewable Energies business focuses on the construction and operation of small hydropower plants, proven to be particularly environmentally compatible due to their relatively low impact on nature. Six of these power plants, five in North Macedonia and one in Bosnia and Herzegovina, have so far been connected to their respective national grids.

Scope 2 emissions are calculated using both the location-based method and the market-based method. The location-based approach uses average emission factors for a region (e.g. a country), which then are applied to local energy consumption for calculation purposes. The market-based approach, on the other hand, uses for calculation purposes certain emission factors that originate either from the energy supplier or from a specific electricity product. Using the market-based approach serves to increase the transparency of the company’s purchase of energy from renewable sources.

Numerous certifications, the signing of public agreements and membership of initiatives document the commitment of PCC’s affiliates to environmental issues.

The PCC Group determines the performance indicators relevant to its business activities on an annual basis. In addition to emissions of greenhouse gases (GHG) in the definition of Scope 1, these include both energy consumption and water usage as environmental issues. Scope 1 defines greenhouse gas emissions arising directly from our own assets or those controlled by PCC companies. In the case of energy consumption, all energy sources that are recorded individually, i.e. electricity, gas, heat, steam, fuel oil, gasoline and diesel, are added together without any distinction being made in the data record. The water consumption data relate to both water for the production process and wastewater. Similarly, we do not differentiate as to whether usage, consumption or emissions are due to the manufacture of a saleable end product or to internal further processing.

The electricity consumption of all companies of the PCC Group in 2023 was 804.8 GWh (previous year: 1,062.1 GWh). Of this, 339.0 GWh, or 42.1 %, was generated from renewable energy sources (previous year: 496.9 GWh, or 46.8 %). The main contributor to the share of renewable energy sources is our silicon metal plant in Iceland, which is supplied exclusively with green electricity (mainly from geothermal sources); however, throughout 2023 operations were conducted with just one of the two furnaces fired up – hence the decrease in the share year on year. The specific electricity consumption of our portfolio companies fell to 0.51 MWh per metric ton of product in 2023, from 0.61 MWh in the previous year. Specific electricity consumption in relation to sales remained almost unchanged at 810.0 MWh per million euros (previous year: 801.8 MWh per million euros).

1 Change in percentage points

The absolute gross emissions of greenhouse gases in Scope 1 fell by 47.1 % in 2023 compared to the previous year, to 257.6 thousand metric tons of CO2 equivalent (t CO2e) (previous year: 486.8 thousand metric tons of CO2e). The decrease is due in particular to the general decline in production last year, especially in the Silicon & Derivatives segment. As in previous years, carbon dioxide (CO2) accounted for the majority of greenhouse gas emissions. Adjusted for emissions from non-fossil, i.e. renewable, raw materials such as timber, Scope 1 emissions amounted to 229.2 thousand t CO2e (previous year: 459.8 thousand t CO2e). In specific terms, i.e. per metric ton produced or traded, gross emissions of Scope 1 greenhouse gases fell by 40.7 % to 0.16 t CO2e (previous year: 0.28 t CO2e). In relation to sales, gross emissions of greenhouse gases fell by 29.5 % to 259.3 t CO2e per million euros (previous year: 367.5 t CO2e per million euros).

Water consumption and the generation of wastewater at the affiliates of the PCC Group are mainly attributable to the manufacturing processes of our affiliates in the chemical-producing segments. Absolute water usage in 2023 decreased by 10.8 % to 5,938.5 thousand m3 (previous year: 6,654.5 thousand m3). In volume terms, specific consumption remained unchanged from the previous year at 3.8 m3. In relation to revenues, water consumption rose year on year to 6.0 thousand m3 per million euros (previous year: 5.0 thousand m3 per million euros).

1 Bezogen auf den gesamten Output aller Produkte und Zwischenprodukte

In our sustainability vision, PCC SE and the companies of the PCC Group acknowledge our ecological and social responsibility. The objective is to make a strong contribution to climate protection and sustainable development. Thus, the PCC Group is striving in the long term to reduce specific consumption and usage, particularly of water. Greenhouse gas emissions from PCC’s chemical production are to be halved by 2030 compared to 2020 (Scopes 1 and 2). By then, PCC’s energy generation is to be completely coal-free, with the share of energy supplied from renewable sources to be further increased. By 2050, the Group as a whole is to be net-climate-neutral.

PCC invests in technical safety and training so as to continuously improve occupational health and safety not only within the PCC companies but also along the value chain. We regularly review compliance with our safety, health and environmental standards. The occupational health and safety management systems of the largest production companies of the PCC Group, in particular PCC Rokita SA and PCC Exol SA, are certified to ISO 45001:2018. Continued investment in modern production facilities makes a significant contribution to occupational health and safety.

In addition, PCC specifically promotes the individual development of its employees. They are granted scope to work independently on a results-led basis and opportunities to take on responsibility. Employee initiative and creativity are specifically encouraged, with decision-making authority assigned within the scope of each individual’s potential. They are supported in their personal development through tailored preparation for new tasks with thorough on-the-job training. In its personnel management, PCC attaches great importance to diversity, both cultural and professional. Discrimination is not tolerated within the Group in any form whatsoever. And regulations promoting gender equity and equality are binding.

This includes the tenet that all employees have the right to fair, polite and respectful treatment. PCC does not tolerate any discrimination or harassment of employees. Specifically, discrimination or harassment on the grounds of descent, race, religion, origin, gender, disability, age, marital status, sexual orientation, political opinions or membership of trade unions or political parties is prohibited at PCC.

Together with protection of the environment, the safety and protection of our employees and of local residents are of the highest priority. PCC is therefore committed to ensuring safe working conditions at all times. For example, we implemented a highly comprehensive range of home office solutions at short notice during the coronavirus pandemic of recent years. In the event of an accident or malfunction, PCC takes the appropriate measures to avert, mitigate and repair the damage as quickly and effectively as possible and informs the relevant authorities.

The provisions on gender equality are binding. The equity imperative encompasses, in particular, areas such as task allocation, pay, training, professional development and promotion. All forms of sexual harassment in the workplace are prohibited. Sexual harassment is defined as any conduct with a sexual connotation which is undesirable to the person concerned and degrades their dignity.

Bullying as the deliberate exclusion and humiliation of employees is likewise not tolerated. Bullying is defined as systematic, persistent or repeated hostile behavior with the purpose of isolating a person at the workplace, within the workforce or even from the workplace.

PCC takes all reasonable measures to prevent discriminatory conduct and harassment. All employees are called upon to report any and all cases of discrimination or harassment in their working environment to their supervisor, the human resources department or the compliance officer.

Within the PCC Group, there are risks to employees with regard to occupational health and safety, particularly in the manufacturing PCC companies. PCC is actively working to create a safe environment for its people, continuously improving working conditions by using advanced technologies and investing
in modern production facilities.

PCC ensures that all employees enjoy equal opportunities in every dimension for their professional development, in relation to access to further training and in terms of their promotion opportunities. The companies of the PCC Group support their employees through flexible working-time models. The scope on offer ranges from working time accounts, parttime contracts and early retirement arrangements, to home office arrangements. PCC encourages open communication
between employees and, to the full extent possible, with our stakeholders.

PCC’s commitment to employee issues is evidenced by numerous certifications, the signing of public agreements and membership of initiatives:

The PCC Group is an internationally active conglomerate, as is reflected not only in the worldwide sale and distribution of products and services but also in the diversity of our employees. In 2023, the PCC affiliates around the world had in their employ people from a total of 30 nations (previous year: 28). The number of employees fell by 3.7 % to 3,265 as of December 31, 2023 (previous year: 3,391).

The proportion of women employed within the Group remained steady at 25.4 %, while the proportion of women in the first and second levels of management at PCC affiliates remained virtually unchanged at 21.7 % (previous year: 22.7 %).

1 Change in percentage points
2 First and second management levels

PCC respects the protection of international human rights in accordance with the UN Charter of Human Rights, recognizes them unreservedly and supports them within its sphere of influence. Violations of human rights are not tolerated and are duly sanctioned. In addition to this categorical requirement, respect for and protection of human rights are also important aspects of initiatives in which PCC companies participate. One example of this is PCC Exol SA’s membership of the UN Global Compact, the world’s largest and most important initiative for sustainable and responsible corporate governance.

Overall, it can be seen that the sites of the PCC companies are predominantly located in countries with a positive human rights record, particularly in Europe. Swapping these sites for those with a poorer human rights record and possibly lower production costs is not an option for PCC SE – neither for the Group as a whole, nor for the individual PCC companies.

Both PCC SE and the companies in its investment portfolio are actively committed to respecting human rights, especially in new regions in which the PCC Group has previously not been active. The same human rights standards apply throughout the PCC Group, i.e. irrespective of location – as documented, in particular, by our participation in a number of initiatives.

As in the previous year, no violations of human rights were reported in 2023, either in the companies of the PCC Group or in the holding company. Any potentially reported violation would be investigated by the Group management and sanctioned upon confirmation.

PCC is committed to fully prioritizing respect for human rights now and into the future. The respect for human rights enshrined in the Code of Ethics of the PCC Group is obligatory for all executive and supervisory bodies, managers and employees in all PCC companies. This applies in particular, but not exclusively, to new locations in regions in which PCC has not previously been commercially active. PCC believes that monitoring of compliance with human rights must be intensified at such places.

The companies of the PCC Group have a range of different stakeholders. The following value-added statement shows that the largest portion of the total operating output generated in the Group has flowed back to our most important stakeholders, namely our employees, albeit with other stakeholders also receiving a substantial share of this value added. We also take the interests of our stakeholders into account in other ways. The Group companies are members of international
organizations in the field of CSR and implement corresponding programs in this domain. PCC SE and its subsidiaries promote social initiatives and institutions; PCC also supports its employees in their voluntary social engagement and actively engages in dialog with local communities. In addition, PCC assumes social responsibility through partnerships with universities and other educational institutions, as well as through our involvement in the fields of sport and culture. Sponsorship funds are only granted on the legal basis applicable in each case. The approval of the Executive Board of PCC SE or the executive body or management of the respective Group companies is also required. Cash payments and other financial benefits to politicians, political parties or other political organizations are strictly prohibited.

PCC SE and its subsidiaries are directly involved in the local communities in which they operate. At the domicile of our Group headquarters, Duisburg, for example, PCC SE has been supporting the homeless charity “Gemeinsam gegen Kälte Duisburg e.V.” (“Joint Action Against the Cold”) for a number of years now. PCC also sponsors local and regional sports and cultural events. For example, the holding company is the name sponsor of the PCC Stadium in Duisburg-Homberg, located near the Group’s headquarters, and the main sponsor of VfB Homberg e.V., the regional soccer team based there. As of year-end 2023, the PCC Group was providing support to 69 projects (previous year: 86).

PCC has set itself the goal of continuing to drive value creation within the Group for the benefit of all stakeholders going forward. PCC strives to augment its commitment to its social responsibilities through ever greater participation of its Group companies in international organizations and initiatives in the field of CSR, and is implementing an increasing number of corresponding programs in pace with this effort. PCC also intends to further expand its social commitment, including its collaborations with universities and other educational institutions.

PCC does not tolerate any form of active or passive corruption, extortion or bribery. Our commitment in this regard is set out in the PCC Code of Ethics, which is binding on all employees of the PCC Group.

Business relations with suppliers and trading partners are to be conducted exclusively according to objective factual and commercial criteria. Personal interests have no role to play in such transactions. The prohibition on receiving or giving gifts applies not only to direct financial consideration but also to other benefits which could jeopardize the commercial independence of either party. Complementary to the relevant tax regulations and approval obligations, PCC has a strict policy in place governing the granting and acceptance of benefits, gifts or invitations.

In order to ensure compliance with statutory provisions and the objectives that exist in this domain, all related measures are only approved once all the bodies responsible have conducted their own thorough examinations. As in the previous year, the number of penalties and fines for non-compliance with laws and regulations was zero.

In the reporting year, one business relationship was rejected due to compliance violations (previous year: 0).

PCC will continue to take uncompromising action against bribery and corruption on the basis of its zero-tolerance policy. Our goal is to ensure that the Group remains untainted by cases of this nature.