S2-Workers in the Value Chain

Not audited

We take our responsibility seriously and ensure compliance with human rights and environmental due diligence obligations throughout our supply chains. We place a special emphasis on our direct suppliers.

Management of impacts, risks and opportunities

An overview of the material impacts, risks and opportunities can be found in the chapter General information under Material impacts, risks and opportunities and disclosure requirements included in the Sustainability Statement (IRO-2).

Policies related to workers in the value chain (S2-1)

Human Rights Policy Statement

Our commitment to respecting human rights and related environmental standards along our global supply and value chains is set out in our Human Rights Policy Statement. Among other things, it describes how we fulfill our human rights due diligence obligations through a management system. The policy statement and the frameworks referenced therein are binding for all our senior executives, employees and business partners. It defines expectations regarding human rights and environmental standards in accordance with the German Supply Chain Due Diligence Act (LkSG) for the company’s workforce and our suppliers. Suppliers are required to implement these requirements in their own supply chains. The Human Rights Policy Statement is available to our employees via the employee app and our central document database. It is also publicly accessible on our website: www.blg-logistics.com/en/sustainability.

Supplier Code of Conduct

Our expectations for environmental and social responsibility as well as ethical business conduct are set out in the Supplier Code of Conduct. This applies to all business relationships between BLG LOGISTICS and our suppliers, insofar as it is relevant to the respective business activity. We require our suppliers and service providers along the supply chain to comply with the applicable legal framework and our Supplier Code of Conduct, as laid down in our General Terms and Conditions of Contract and Purchase: www.blg-logistics.com/en/general-terms-and-conditions.

The requirements set out in the Supplier Code of Conduct include, in particular, the prohibition of forced labor and child labor. Of course, all legal requirements regarding employees, occupational health and safety and environmental protection must be complied with at all times. In addition, we expect that potential or actual negative impacts on people and the environment will be prevented or mitigated through appropriate measures. Our suppliers are also obligated to inform any subcontractors about our requirements and to ensure that they comply with them. The Supplier Code of Conduct is regularly updated; most recently, in 2025, information on the newly established BLG Integrity Line whistle-blower system was added.

Policy on work for hire contracts

In 2025, we introduced a new policy on work for hire contracts. This policy ensures a standardized and legally compliant approach to the conclusion and execution of such contracts by BLG LOGISTICS. Among other things, it sets the objective of entering into work for hire contracts only with contractors who apply collective agreements with DGB unions. When such contractors are not available, companies offering at least a comparable level of remuneration may be used instead. Contractors must also confirm compliance with the German Minimum Wage Act (MiLoG). The policy applies to all governing bodies and employees of companies within the BLG Group, including BREMER LAGERHAUS-GESELLSCHAFT ‑Aktiengesellschaft von 1877‑, BLG LOGISTICS GROUP AG & Co. KG and all companies in which the latter directly or indirectly holds at least 50 percent of the shares and exercises management control.

Engagement with workers in the value chain, reporting channels and approaches to remedy (S2-2)

BLG LOGISTICS has established various processes to gain insight into the perspectives of workers in the upstream supply chain, both through direct and indirect engagement. This ensures that workers have the opportunity to raise concerns, complaints or objections regarding material risks and impacts in the upstream value chain, particularly those relating to human rights and labor standards.

We obtain such insights in particular from workers operating at our sites or interacting directly with BLG LOGISTICS employees. This allows for direct communication with drivers from subcontractors via our dispatch tool. This also applies to contractors, depending on the nature and scope of the contract. Employees of contractors are not managed by BLG LOGISTICS; instead, collaboration with the company’s own workforce takes place via defined interfaces, through which we gain relevant insights. Our policy on work for hire contracts stipulates that we work exclusively with contractors who apply collective agreements with DGB unions or provide at least a comparable level of remuneration, thereby strengthening recognized labor standards through union representation.

We are convinced that the challenges in logistics can only be addressed through industry-wide dialog that takes different perspectives into account. For this reason, we participate in BVL’s “Sustainable Design” working group, took part in Bremen’s “Round Table on Sustainable Supply Chains,” and continuously evaluate further opportunities for collaboration.

BLG explicitly encourages not only its own employees but also workers in the value chain to report any grievances or potential risks. Reports can be submitted to our compliance or human rights officers, via compliance@blg.de, through the BLG Integrity Line digital whistle-blower system at blg-logistics.integrityline.app/, or by scanning the QR code. Reports can also be submitted anonymously.

Reports may be submitted whenever violations of protected legal positions under the human rights and environmental risks defined in the German Supply Chain Due Diligence Act are observed, either at BLG LOGISTICS itself or at a direct or indirect supplier. A detailed description of the framework, the complaints process and the associated reporting is publicly available in the rules of procedure pursuant to Section 8 (2) LkSG.

We aim to continuously improve our grievance mechanism to ensure that it meets the highest standards and complies at all times with legal requirements. To this end, the process is subject to annual and ad hoc effectiveness reviews, assessing its performance against internal governance requirements and legal provisions.

In addition to the BLG Integrity Line and the associated processes, since 2025 we have also implemented an AI-supported tool for proactive monitoring that aggregates potentially relevant violations worldwide from media reports and other information sources.

If potential grievances at direct or indirect suppliers become known to us, we review them without delay and assess the adequacy and effectiveness of the existing action program. Where necessary, we adjust the program or define specific remediation actions in coordination with those affected or their representatives. Actions are selected on a case-by-case basis depending on the nature of the violation, with the objective of ending it immediately. Where this is not possible, we develop and implement a concept to end or minimize the violation.

Depending on the severity of the violation, legal consequences may include termination of the business relationship without notice, including all associated supply contracts.

Actions and resources related to workers in the value chain (S2-3)

BLG LOGISTICS has a Human Rights Officer appointed by the Board of Management, who is also Head of the Sustainability Corporate Department. They act as a point of contact for staff and suppliers regarding human rights risks and violations and liaise with the Board of Management. Their duties include continually optimizing preventative measures and remedies to minimize risks and prevent violations, and regular and ad-hoc reporting to the Board of Management. To fulfill due diligence obligations, the Human Rights Officer works closely with all relevant departments.

We identify and assess potential risks relating to human rights or the environment along the supply and activity chains using systematic risk analyses. These analyses serve as a basis for defining and prioritizing preventative measures and remedial measures. The Sustainability Corporate Department is responsible for carrying out risk analyses with regard to our direct suppliers. Risk classification is carried out in a two-stage process: an initial abstract assessment identifies sector- and country-specific risks based on supplier data. This is supported for the first time in the reporting year by data-driven software. Subsequently, suppliers identified as potentially high-risk are prioritized in a detailed assessment and examined in greater depth, for example based on the intensity of the business relationship, external certifications, self-assessments or audits.

After focusing on suppliers with potentially high risk in 2024, this approach was continued in 2025: suppliers with potentially medium risk were analyzed in detail and reclassified. Initially, two higher-risk sectors were identified, from which the suppliers with the highest revenue volumes were selected. These suppliers received a comprehensive questionnaire covering LkSG-relevant topics. This approach to improved risk assessment will be expanded in 2026.

We have been assessing suppliers and service providers in Central Purchasing in cooperation with the responsible sites according to a defined scheme since 2016. A comprehensive questionnaire covers classic purchasing criteria such as quality, price and delivery time, as well as environmental aspects. A particular focus is on energy efficiency, which plays a central role in the procurement of lighting or forklifts, for example. Face-to-face discussions and on-site visits are an integral part of our dialog with existing and new suppliers.

Employees in Central Purchasing are trained as a key interface between BLG LOGISTICS and value chain workers on topics such as the Supplier Code of Conduct, the associated requirements and the content of the LkSG. In order to raise staff awareness, a basic online training course on the LkSG and its implementation at BLG LOGISTICS was also set up. This has been mandatory since 2025, and was completed 1,749 times during the reporting year. Starting in 2026, training for all buyers will be supplemented by external sustainability training.

To mitigate material negative impacts and risks for workers in the value chain, compliance with our Supplier Code of Conduct is of fundamental importance. For this reason, a central survey was conducted in 2025 among all active staffing service providers. The aim was to ensure that the Code of Conduct is included as a binding annex in every contract. Particular attention was paid to ensuring that the current version is also applied to existing contracts through appropriate confirmation. The survey achieved a response rate of 100 percent.

At the beginning of 2025, truck drivers from Zimbabwe went on strike, alleging unpaid wages and poor working conditions. According to union reports, the drivers were employed by subsidiaries of a freight forwarding company based in Baden-Württemberg. BLG reviewed its business relationships with these subsidiaries and determined that some of these companies were registered with us. In addition, several transport orders had been awarded to these companies, and subcontracting could not be ruled out. As a result of this report and the subsequent investigation, the identified subsidiaries were placed on a blacklist in Q1 2025 and will no longer be commissioned.

In the reporting year, no human rights violations were reported in connection with workers in the upstream or downstream value chains.

Targets related to workers in the value chain (S2-4)

With regard to our own employees and temporary agency workers, we have defined the target that 100 percent are to be covered by collective agreements or at least benefit from a comparable level of remuneration (see chapter S1-Own Workforce). We apply the same standard to our work for hire contracts. In addition, our requirement is that applicable employee protection regulations are complied with for all workers. Accordingly, in the risk analyses conducted in 2024 and 2025, particular attention was paid to the working conditions of employees of contractors.