UK Modern Slavery Act

UK Modern Slavery Act 2015, declaration of the principles and guidelines of the company for the business year 2025

This Declaration of Principles is made in accordance with § 54 part 6 of the UK Modern Slavery Act 2015 and describes the measures implemented by the Krones Group to ensure that our business operations support neither slavery nor human trafficking. In the UK, the Krones Group is represented by its subsidiaries Krones UK Ltd., System Ltd. and Netstal UK Ltd.

Business model and markets

Krones provides machinery and systems for filling and packaging and for beverage production. Process technology, recycling technologies, advanced moulding technologies and innovative digitalization and intralogistics solutions round out our portfolio. Krones’ capabilities include the design, manufacture, assembly, commissioning and testing of machines and lines. Important components of our value chain include the procurement of high-quality materials and components, as well as close collaboration with suppliers and logistics partners. In sales, we work closely with our customers to offer tailored solutions that meet their specific requirements. Krones has service centres and offices around the world and our supply chain spans the entire globe.

Rules and guidelines

The Krones Code of Conduct applies to all employees worldwide. Based on our vision, it sets group-wide requirements for compliance with laws, standards and guidelines and promotes a working environment built on integrity, respect, fairness and responsible conduct. All employees in the Krones Group have committed to complying with this Code of Conduct. Consequently, all employees support the same basic principles in relation to human rights, fair working conditions, environmental protection and the fight against corruption. Krones expects its employees to follow the Code of Conduct. This obligation also is enshrined in our employment contracts.

Krones expects all business partners, without exception, to comply with these principles, which are set out in the Krones Group Supplier Code of Conduct. The Supplier Code of Conduct requires suppliers to comply with applicable international standards, including:

• the principles of the United Nations Global Compact (UN),
• the core labour standards of the International Labour Organization (ILO),
• the OECD Guidelines for Multinational Enterprises (Organisation for Economic Co-operation and Development),
• the basic principles of the ETI Base Code (Ethical Trading Initiative),

and the UK Modern Slavery Act 2015. Furthermore, the Supplier Code of Conduct of the Krones Group also defines the standards that must be complied with by suppliers in relation to child labour, forced labour and abuses, which also correspond to the UK Modern Slavery Act 2015. Business partners are expected to agree to following the Supplier Code of Conduct. For this reason, at regular intervals they are expected to monitor compliance with the standards defined in the code, engage in dialogue with their relevant business partners and permit Krones to carry out company audits on this matter. In the event of non-compliance, Krones reserves the right to respond accordingly.

Krones will not knowingly engage in business activities with business partners or support them if they are involved in slavery or human trafficking. Any breach of the principles and requirements set out in the Supplier Code of Conduct will be considered a material impairment of the contractual relationship on the part of the business partner. Krones will further have the right to terminate some or all contractual relations with business partners without notice if the business partners demonstrably fail to fulfil the Supplier Code of Conduct or do not instigate and implement improvement measures having been set a reasonable period of time by Krones in which to do so.

Risks and due diligence

Due to the global nature of the business, there is an inherent risk of child and forced labour in Krones’ value chain – particularly in countries and sectors where child and forced labour is widespread. For enhanced transparency, we therefore carry out a data-supported human rights and environmental risk assessments at least once annually as part of our human rights strategy. The analysis takes into account procurement volume, countries of origin and production, and the type of products or services provided. The supplier risk profiles resulting from this abstract risk analysis are gradually added to sustainability assessments and audits as an integral component of the ongoing evaluation process. Human rights risk analyses enable Krones to better appraise susceptibility to potential human rights violations and to already take preventive measures in advance. 

These risk analyses are supplemented with findings from the compliance due diligence checks, which can also yield information about potential human rights violations in the value chain. As part of the procedures integrated in the regular due diligence process, customers, agents, brokers, suppliers, third-party payers, new managing directors/CEOs and new members at top management level are vetted using publicly accessible data to check for red flags.

The findings from the risk analyses and the due diligence checks feed into the regular group-wide risk management reporting process and are integrated into existing personnel, purchasing and audit processes.

Training and audits

As part of our compliance management, all employees in the Krones Group are required to successfully complete compliance training. The managing directors of the entities must ensure that their employees are informed about the Code of Conduct and that they lead by good example themselves within their own leadership structure. All employees of the Krones Group are kept informed about changes to the Code of Conduct. Matters relating to human rights and labour topics are additionally covered by mandatory human rights training for employees who regularly interact with third parties. Also, key aspects of occupational safety are covered in both basic training and site-specific training courses. 

Product and system audits are carried out by Supplier Quality Management at our suppliers and cover the areas of Environmental Management, Occupational Health & Safety, Quality Management, Compliance and Human Rights. As well as looking at weaknesses, risks and potential areas for improvement in the corresponding management systems, this also reviews compliance with the Krones Code of Conduct and the Krones Supplier Code.

Whistleblowing system and reporting

Reports of suspected non-compliance in connection with activities of Krones and its business partners, including activities that harbour a risk of slavery, bondage, forced or compulsory labour or human trafficking, can be forwarded via various reporting channels, including direct contact with regional contact persons and the digital Krones Integrity System, which can be publicly accessed via the Corporate Website. This can be done either anonymously, or the person(s) reporting the violation can also state their own name. Information about human rights violations can be clearly marked as such on the portal, allowing targeted processing of the information. Incoming reports are reviewed by the responsible areas. If it is found that a violation has indeed occurred, appropriate remediation steps are taken.

As part of the annual non-financial reporting, the Krones Group publishes information about progress made in relation to compliance with due diligence in connection with human rights. All process and project-related measures are communicated transparently in the non-financial report for the relevant business year.

Krones Group Annual Report 2025(Non-financial statement)

Neutraubling, July 2026	Neutraubling, July 2026
Thomas Ricker Chief Executive Officer Krones AG	Uta Anders Chief Financial Officer Krones AG