Empowering society. Empowering our company.

To ensure future viability, sustainability is firmly embedded in the values of FUCHS. Taking social and ecological responsibility is part of FUCHS’ corporate identity. Therefore the three sustainability dimensions of economy, ecology and society are core elements of good corporate governance for FUCHS.

FUCHS considers economic responsibility to be the adoption of a long-term business orientation with the objective of continuously increasing company value, as well as creating shareholder value. Business activities are therefore based on the following principles:

• FUCHS bases its corporate decisions on realistic, economically sound and long-term objectives
• FUCHS pursues a dividend policy that is geared to providing continually increasing, or at the very least stable, dividend payouts

The central key performance indicator (KPI) for corporate management is the FUCHS Value Added (FVA). As economic profit, the FVA embodies a holistic approach that takes into account both earnings (EBIT) and capital employed. At FUCHS, the development of net operating working capital (NOWC) has a particular influence on the level of capital employed. The main components of NOWC are inventories and trade receivables.

We are continuously reducing our ecological footprint through targeted product and process-based measures. 

• FUCHS invests in modern and safe systems and process optimization. This helps reduce energy and water consumption, as well as production waste
• With lubricant products that are optimally matched to their respective applications, FUCHS increases the efficiency of its customers' production process and makes a contribution toward reducing emissions
• FUCHS invests in alternative raw material solutions that support the conservation of the environment and  resources
• FUCHS' R&D activities are keenly focused on the development of resource-saving and environmentally-friendly products

With these measures, FUCHS is making a valuable contribution toward reducing its environmental impact and resource consumption, and thereby also contributing to sustainability in the ecological sense.

Targeted transfer of knowledge at all levels in the FUCHS Group and consistent compliance with specified guidelines/directives, as well as continuous measurement of defined KPIs, allow us to critically analyze our commitment.

Of the non-renewable part of energy consumption 75% is attributable to natural gas, 12% to coal, 7% to oil and 3% to energy from nuclear power generation. The analysis was conducted using primary data from our sites and location based secondary data of local energy mixes.

For FUCHS, social sustainability means assuming responsibility both for its employees and for society at large.

We see our employees as the basis of our success and have permanently anchored this concept in our personnel policy.

• FUCHS is committed to compliance with human rights and labor standards, as well as to promoting health and safety at the workplace
• FUCHS ensures a balanced mix of specialists and all-rounders when filling key positions at the company
• Wherever possible, FUCHS also fills positions that become vacant with experienced employees from within the company
• FUCHS invests in training young people, as well as in the development and promotion of up-and-coming talents
• FUCHS offers its employees support in combining their career with a family

We are engaged in various corporate citizenship activities, as we also bear responsibility for our social environment.

• FUCHS supports cultural projects with the aim of securing a versatile and attractive cultural offering 
• FUCHS is committed to social projects and supports voluntary work, as well as social organizations and establishments
• FUCHS promotes scientific projects and socio-scientific exchange

FUCHS aims at continuously promoting transparency and sustainability along its supply chain in cooperation with suppliers. To this end, a binding Supplier Code of Conduct was developed, which is based on the principles of the UN Global Compact, among others, and clearly formulates FUCHS' expectations towards its suppliers. FUCHS wants its suppliers to recognize the Supplier Code of Conduct and to ensure compliance with it along their value chain. In addition, the Supplier Code of Conduct was enriched in 2023 and now stipulates important FUCHS requirements regarding compliance, the prohibition of child labor and discrimination as well as compliance with human rights, laws and recognized labor and environmental standards. 

In 2023, all raw material and packaging suppliers globally were assessed in their performance towards FUCHS’ sustainable requirements via a 3^rd party platform. 

Moreover, as part of active supplier management, FUCHS carries out an annual assessment of all global strategic raw material suppliers. A systematic and transparent assessment is carried out by various functions within FUCHS. For the first time in 2023, an assessment was carried out at regional level in the EMEA region. 

The importance and number of requirements within the strategic supplier evaluation regarding sustainability aspects are also gradually increasing. The supplier evaluation includes aspects such as reliability, quality, fulfillment of sustainability requirements, technical cooperation, etc.  

This evaluation helps Fuchs to reward business to best in class suppliers. On the other hand, in case of low performance, FUCHS will be taking actions such as triggering supplier audits. In the following years, the audit should include social and environmental aspects. In the case of not achieving an acceptable score in the audit, the process foresees different escalation steps that can eventually lead to disqualification of a supplier.  

All these measures enable our procurement organization to allocate businesses and projects towards suppliers performing best in class and will ensure FUCHS’ transformation to a more sustainable supply chain. 

*Multiple counts of SDGs per project possible.