Introduction
This statement is made by Wacker Neuson Ltd., Stafford ("Wacker Neuson UK") pursuant to Section 54 (1) of the Modern Slavery Act 2015 and sets out the steps the company is taking to minimize the risk of modern slavery and human trafficking taking place within its organization and supply chains. It has been approved by Wacker Neuson UK's board of directors on 20 May 2026
Wacker Neuson UK has a zero tolerance to any form of modern slavery. We are committed to integrity and honesty as well as the commitment to consistent compliance with legal and regulatory requirements. Both our employees as well as our suppliers are required to adhere to this standard. We also expect our suppliers to commit to respecting human rights, to establish appropriate due diligence processes and to pass this expectation on to their own suppliers.
Structure and Business
Wacker Neuson UK is part of Wacker Neuson Group, an international network of companies, employing around 5,800 people worldwide, including about 3,000 in Germany and 67 in the UK .. As a leading manufacturer of light and compact equipment, the Group offers its customers a broad portfolio of products, a wide range of services and an efficient spare parts service. The product brands Wacker Neuson, Kramer, Weidemann and ENAR belong to the Group. The headquarters are in Munich, Germany and it operates as a management holding company with a central management structure which is responsible for strategic Group governance functions.
There are approximately 140 sales and service locations worldwide and production facilities in Germany, Austria, USA, Serbia and China. Wacker Neuson UK operates as a sales and service affiliate of the Group. It distributes Wacker Neuson Groups· range of products and spare parts via a dealer network throughout the United Kingdom and Ireland. In addition to is facilities in Stafford, one of the Groups dedicated research and development centres is located at Wacker Neuson UK's Leicester facilities.
Supply Chain
Within the UK, Wacker Neuson UK maintains relationships with local suppliers on a smaller scale, while all products and spare parts, accounting for around 90% of procurement, are sourced from other Wacker Neuson Group companies. For the engineering and production of its machines and equipment, the Group sources pre-manufactured parts, components and raw materials for its production plants via a global network of suppliers.
Policies
We operate a number of group wide or local policies to ensure we are conducting our business in an ethical and transparent way. These include:
- Code of Conduct
All of our employees are required to comply with the company's code of conduct which sets out the principles of company ethics and the daily conduct expected in the workplace and also provides guidelines on preventing corruption.
Each employee of Wacker Neuson UK are required to sign a statement confirming that they have received, read and understood the Code of Conduct.
The most recent version of the Code of Conduct can be found online at https://wackerneusongroup.com/en/sustainability
- Supplier Code of Conduct
One of the key policies of the Wacker Neuson Group is the Supplier Code of Conduct, which is firmly embedded as a mandatory part of the contractual framework and the on boarding process. Additionally, there is the Code of Conduct for business partners, which is extended to all customer relationships to ensure high standards are maintained. Both sets of regulations are based on the Wacker Neuson Group's statement of principles on the respect of human rights, aligned with international principles such as the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the OECD Guidelines for Multinational Enterprises. These documents address fundamental issues such as the respect of human rights, labour rights, and environmental protection. The supplier Code of Conduct contains a clear ban on child labour, forced and compulsory slave labour. These apply along the upstream supply chain and also cover the lower tiers via cascading expectations.
The most recent version of the Supplier Code of Conduct can also be found online https://wackerneusongroup.com/en/sustainability
- Whistleblower System "Tell-it"
Via the external web-based whistleblower system ,,Tell-it" serious cases of violation or misconduct in connection with the Wacker Neuson Group such as human rights violations can be reported. The whistleblower system offers an additional line of communication, which is available both for the employees of the Wacker Neuson Group, as well as business partners, such as customers and suppliers. It can be accessed 24 hours a day from anywhere in the world and confidentially under the following link: www.bkms-system.net/wackerneuson
To ensure the protection of whistleblowers, the Wacker Neuson Group has implemented strategies aimed at preventing retaliation. This is covered within the Group's Speak-Up Policy. This policy defines all reporting channels, the responsible reporting office, the various types of reports, as well as the processes for handling the received reports. The prohibition of retaliation against whistleblowers is explicitly established. The Speak-Up Policy is also directed at external stakeholders and is publicly accessible on the company's website
- Policy Statement on Respect for Human Rights
The German Supply Chain Act places due diligence obligations on companies, including the publication of a Declaration of Principles on Respect for Human Rights. This provides information on the Company's human rights strategy, human rights and environmental risks and measures and responsibilities for implementing human rights due diligence in accordance with the German Supply Chain Due Diligence Act (LkSG). The current policy statement can be found at this link: https://wackerneusongroup.com/fileadmin/general/downloads-en/01_konzern/01 _ compliance/wng_declaration-of-principles-on-respect-for-human-rights.pdf
- Recruitment Policy and Practices
Wacker Neuson UK undertakes right to work checks for all employees recruited in the UK to ensure they have the a valid work visa if required and are of appropriate employment age. Wacker Neuson UK does not employ anyone below the legal school leaving age.
Risk Assessment
At Group level, Wacker Neuson's tool-based risk management system is designed to identify potential risks at an early stage, both in our own business operations and those of our suppliers.
Risk analyses are carried out initially and regularly on a semi-automated basis. Business partners are assessed in terms of their respective human rights and environmental risks and grouped into risk groups based on the resulting risk score in order to ensure prioritised processing of high-risk business partners. Consequently, measures are taken if a business partner presents a specific high risk, taking into account the level of influence. In addition to the recurring risk analysis, the software also maps the event-related risk analysis in relation to business partners.
Initially, remote measures are taken in an attempt to minimise the risk. If there is no adequate reduction in risk through the remote measures, on-site visits are made to the supplier. The aim is to enable the supplier to prevent a violation or, if one has already occurred, to end it or minimise its extent. If the agreed measures have not been implemented by the agreed deadline, an improvement in the current situation cannot be achieved, it is not possible to increase the ability to influence the supplier and no milder measures are available, the business relationship must be terminated in accordance with the Supply Chain Due Diligence Act (LkSG).
In parallel, the Wacker Neuson Group uses continuous media screening to detect potential violations of human rights in the supply chain at an early stage.
In the fiscal year 2025, Wacker Neuson Group became aware of 6 substantiated human rights incidents involving workers in the upstream supply chain. One involved the hiring of a security company, the remaining 5 involved unequal treatment in employment conditions. During the investigation it emerged that Wacker Neuson Group had a low level of influence over the perpetrator and no contribution to the cause in the security firm incident and one of the unequal treatment. The remaining 4 cases are still being investigated. The incidents all occurred at below Tier 1 level.
Due Diligence
The entire supply chain of Wacker Neuson Group is monitored using due diligence software from Osapiens. In order to ensure the effectiveness and appropriateness of human rights due diligence processes within the Wacker Neuson Group (WNG), the effectiveness of the processes and measures is evaluated regularly, at least once per calendar year, as well as on an ad hoc basis, in order to avoid or minimise adverse effects on the people who are directly affected by the WNG's business activities in terms of human rights. This review is carried out by the Manager Supply Chain Due Diligence, who is supported by the Wacker Neuson Supply Chain Due Diligence Committee.
The Wacker Neuson Group's tool-based due diligence system is designed to identify potential and actual negative impacts at an early stage, both within the company's own operations and among its suppliers. This is supplemented by media screening regarding actual negative impacts related to our supply chain.
We also conduct risk-based audits, follow up on all reports of potential human rights violations and review the effectiveness of training measures by means of comprehension questions during the training or by means of final tests. Where suppliers are shown to present a high or very high risk based on the risk analysis, audits are conducted within 3 months of the risk being highlighted. We review the effectiveness of the complaints procedure regularly, at least once a year, as well as on an ad hoc basis.
Where possible and appropriate, potentially affected parties or at least their representatives are involved in the design of the WNG's activities to ensure the adequacy and effectiveness of human rights due diligence processes. This approach ensures that the WNG continuously fulfils its responsibility with regard to human rights and environmental protection and actively contributes to promoting compliance with international standards.
The Group is committed to ensuring that it only selects suitable suppliers. As a result, the Group's supplier audits for direct production materials focus in particular on potential new suppliers. The Supplier Development department, which is part of Quality Management, is responsible for this task. The department works independently in the different production sites and uses globally defined methods and tools to carry out audits in high-risk countries.
Supplier audits for direct production materials, known as "Supplier Potential Assessments", are carried out on the basis of Group-wide uniform evaluation standards. A central component of these audits is the review of compliance with ESG criteria as well as the groupwide guidelines on human rights. A comprehensive KPI set for supply chain due diligence has been established, with quarterly reviews taking place. These include metrics for audits and complaints handling mechanisms, but do not yet explicitly consider stakeholder engagement. Vulnerable groups are currently recorded internally according to the processed cases in the control tool. A systematic identification and consideration of these groups are currently being further developed to better tailor future actions to their specific needs.
Raw material procurement is a critical area, as the materials needed for the production of machinery and construction vehicles come from various parts of the world. This means that the Group indirectly maintains business relationships with suppliers operating in countries with different environmental standards and working conditions. The selection of direct suppliers and the monitoring of compliance with sustainability criteria are therefore of increasing importance to ensure that raw material extraction and delivery do not have negative social or environmental impacts, as forced labour, child labour, or inadequate safety standards could occur, especially in high-risk regions. These risks are addressed through regular supplier audits, certification requirements, and long-term partnerships based on clear sustainability criteria.
The approach of the Wacker Neuson Group to consider the interests, views, rights, and expectations of affected employees in the value chain. In the future, there will be a stronger focus on structured collaboration with Tier-1 suppliers. This collaboration aims to gather information on working conditions, social standards, as well as health and safety in the value chain. Additionally, the Wacker Neuson Group is guided by best practices and international frameworks, particularly the requirements of the Supply Chain Act (LkSG), to create a solid foundation for considering these interests. Despite these efforts, there are gaps in data collection for employees in the downstream activities of the value chain. These areas are often difficult to access as they lie outside our direct sphere of influence and reliable data has not yet been adequately available. To bridge this gap, the Wacker Neuson Group plans further actions in the coming years, including an expansion of data collection and monitoring mechanisms to ensure better integration of the interests of the employees in the downstream areas. In the course of the 2025 it was determined that there were no material risks or impacts related to downstream employees. The targeted further development of data collection mechanisms will help to consider the perspectives of the employees in downstream activities more strongly in the future.
Within the UK, local procurement is carried out as defined at Group level. All decisions on whether to work with a UK based supplier are preceded by an appraisal of the suppliers with respect to their performance on factors like the environment, working conditions, and the protection of human rights. Local suppliers are made aware of Wacker Neu son UK's Modern Slavery Statement and of the Group Supplier Code of Conduct. The purchasing team within the UK are working on a UK Supplier Code of Conduct which is expected to be implemented with UK supplies during 2026 as well as embarking on supply chain mapping for our key suppliers and products to highlight any potential areas of risk.
In 2025, Wacker Neuson UK neither received complaints about violations of human rights or suspected violations of human rights in the organisation nor such complaints about suppliers with existing business relationships.
Training
In 2025, 97% of employees of the Wacker Neuson Group with an active role in the implementation of due diligence processes have completed designated training to strengthen their awareness of human rights risks.
The HR Officer in the UK and members of the spare parts procurement team have attended a series of online briefings and workshops provided by the Supply Chain Sustainability School (SCSC) focussing specifically on modern slavery within the construction industry and supply chain mapping to identify areas of risk.
A briefing document has been issued to all staff within the UK to raise awareness and ensure a better understanding of the issue. This includes information on the appropriate action to take if they encounter anything that raises concerns.
Stafford, on 20 May 2026
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Andy WILLIAMS
Managing Director
