Enabling and motivating working environment

As a result of our commitment and corresponding efforts to be an employer of choice, four Lindt & Sprüngli subsidiaries were awarded internationally-renowned workplace certificates in 2024. Ghirardelli, as well as Lindt & Sprüngli USA, Canada, and UK, have been certified by Great Place to Work, a trusted certification of workplace culture and employee satisfaction. The organization additionally named Lindt & Sprüngli UK one of the country’s Best Workplaces in 2024. The Human Rights Campaign Foundation recognized Ghirardelli as a Leader in LGBTQ+ Workplace Inclusion and awarded it with the Equality 100 Award. The award focuses on corporate policies, practices, and benefits pertinent to lesbian, gay, bisexual, transgender, and queer employees.

Impact, risk, and opportunity management

We address our employment-related impacts, risks, and opportunities through our policies, our people strategy, and by taking actions to achieve the target in our Sustainability Plan.

Our material impacts, risks, and opportunities

According to our Double Materiality Assessment (DMA),“Employment and labor relations in own workforce”, “Equality, diversity, and inclusion in own workforce,” and “Employee satisfaction and development in own workforce” are material topics. We have identified material impacts, risks, and opportunities in our own operations in relation to these topics.

Good labor relations can positively impact workforce engagement and reduce employee turnover. Potential effects of the promotion of Diversity, Equity and Inclusion (DEI) in the workplace include fairness among the workforce, employee retention, and an increase in innovation and creative thinking, which may improve business performance. If employee satisfaction is high, productivity may increase and employee turnover decrease. Both of these impacts can contribute to a positive work experience for Lindt & Sprüngli employees.

If labor relations are poor and local laws are not complied with, employee wellbeing is threatened, and there is a risk of legal disputes. A lack of diversity and inclusion could result in discrimination claims and reputational damage. Low employee satisfaction could increase employee turnover and negatively affect productivity.

Strong labor relations, compliance with local laws, and investing in employees engagement with a focus on listening to employees present opportunities to increase employee satisfaction, loyalty, and performance.

Our related policies and documents

The Group implements global policies applicable to all subsidiaries. Local subsidiaries define and execute policies tailored to local conditions. Examples of global policies relevant to the employment and labor relations topic are the Business Code of Conduct, Human Rights Policy, and the Health and Safety Policy.

Wherever we operate, we remain committed to offering fair and equal working conditions and opportunities, meaningful career development, and competitive compensation and benefits. We believe that all people should be treated fairly, as laid out in our Business Code of Conduct. Our HR teams, therefore, focus on elements of our Business Code of Conduct, together with our global Credo. The Business Code of Conduct applies to all employees in Lindt & Sprüngli’s own workforce.

Our overarching approach to managing employee issues is based on our Global Guiding Principles framework. These principles outline Lindt & Sprüngli’s purpose, mission, and common values: Excellence, Innovation, Entrepreneurship, Responsibility, and Collaboration. The Responsibility pillar highlights our commitment to act with integrity and treat everyone with respect.

Our Global Employer Value Proposition is managed by our HR teams worldwide. The teams are supported by a number of tools and resources, adapted for local needs. These include a Group-wide framework that defines specific expectations and offers a list of “Dos and Don’ts” related to our values, our Business Code of Conduct, and our Lindt & Sprüngli Global Talent Management workbook. One focus of this workbook is the foundation of our work culture of respect, trust, non-discrimination, and fairness. It describes the values, competencies, and behaviors expected from all our employees. Periodic employee surveys and other forms of feedback and engagement are important tools to reflect, manage, and improve our overarching management approach (see Employee development and satisfaction within this chapter).

Our people strategy

Group HR developed a new people strategy which was approved by Group Management in 2024. The strategy is guided by a new Group people vision: “We thrive together to achieve our bold ambitions, powered by our purpose and unique culture. We are a responsible ‘employer of choice’ who provides an inspiring people experience.” To achieve this vision, we aim to strengthen our unique values-led culture with a strong entrepreneurial spirit and nurture our employee engagement by fostering a safe work environment where people thrive and belong. The strategy focuses on the overall Lindt & Sprüngli employee experience throughout their time with the company. We are providing people with development programs and relevant training. We will develop actions to enhance talent management and employee satisfaction. To better track our performance and enhance our reporting capabilities at Group level, we will implement a global HR data system covering all our subsidiaries.

The new people strategy will be rolled out globally in 2025 and translated into local action plans. We will implement the strategic actions by developing our people and scaling local best practices.

Diverse, equitable, and inclusive work environment

We do not tolerate any discrimination against employees or candidates based on gender, age, religion, political opinion, union affiliation, disability, national or social origin, sexual orientation, ethnicity, color, or other characteristics. Recruitment or promotion follows a selection process based on the following criteria: the skills, abilities, and professional competencies of the candidate; relevant experience, performance, and qualifications; and the specific work-related requirements of the job. Since implementing the Speak Up Line, our grievance mechanism, the handling of discrimination cases brought a higher awareness of the importance of the topic in the Group. Employees are made aware of our Speak Up Line and the Speak Up Policy through our intranet, the Business Code of Conduct, and other communication channels such as posters, e-mails, and town hall meetings (for more information, see Policy implementation and corporate culture in the Upholding business ethics and integrity chapter).

As described in the Speak Up Policy, Lindt & Sprüngli encourages employees to use the regular reporting chain when raising a work-related concern (line manager or local HR representative or Group Compliance). Serious work-related grievances that constitute victimization are protected disclosures and may be reported through the Speak Up Line. For more information, see Speak Up Line in the Upholding business ethics and integrity chapter.

In 2023, Group Management approved a DEI framework based on four pillars – Educate, Grow, Connect, and Celebrate (see graph below). The International HR team has developed several initiatives on all four pillars for 2024.

In 2024, targeted initiatives from the DEI framework were rolled out in all subsidiaries:

• Awareness training on unconscious bias and anti-harassment for all employees
• Launch of Lindt & Sprüngli’s Global Mentoring Program with more than 500 participants across the globe
• Global and local celebration of International Women’s Day in March 2024 and global and local recognition of Global Diversity Awareness Month in October 2024

Depending on the maturity level of the subsidiary, additional activities took place locally as a result of each subsidiary defining a local roll-out plan next to the global one.

In addition, most of our subsidiaries have conducted a gender pay equity analysis and will take appropriate actions at a local level where required and necessary. Furthermore, on January 1, 2025, we joined the LEAD Network, an organization that supports women in the consumer goods and retail sectors in Europe.

With a 39.5% representation of women in senior leadership roles, we are close to our 2025 target of 40%. Additionally, the Board of Directors reviewed progress made at Group Management level in the June Compensation & Nomination Committee Meeting. At Group Management level we increased female representation to 37.5% in 2024 from 25% in 2023.

In 2024, Group Management members had the target of achieving increased representation of women in senior leadership as part of their short-term incentive scorecard.

Global employee engagement

In the past, we conducted a global employee engagement survey every three years to get employees’ anonymous feedback. The questions it contained were reviewed and approved by Group Management.

Any actions and activities applicable to the Group deriving from the results of the survey were decided together with Group Management.

In 2024, we decided to move to a new survey system to redefine the future dialogue between employees and the company. We plan to pilot the first employee survey using the new system in two countries in 2026, and then roll it out globally. The future global survey will be conducted on a bi-annual basis.

The Chief Human Resources Officer holds operational responsibility for the initiation and execution of the global employee engagement survey. At subsidiary level, additional yearly pulse surveys may be conducted to monitor local trends.

Providing meaningful and equitable career opportunities

The Global Engagement Survey conducted in 2022 revealed a lack of employee development opportunities. In response, the Lindt Talent Program (LTP) was piloted in 2023. The LTP is an in-house leadership development program which targets 30 to 40 top talents in middle management from all functions and subsidiaries, who are recognized to have potential to become vice presidents. Participants spent a week at the Lindt & Sprüngli headquarters to learn more about enhancing the participants’ self-awareness, receiving essential leadership tools, and deepening business acumen.

Building on the great success and learnings of the pilot in 2023, the LTP ran again in September 2024 with 35 participants (17 female and 18 male participants) from 10 functions and 16 countries. We have honed the nomination criteria linked to potential and career outlook, reworked parts of the program, and better aligned it to our Senior Leadership Program that we run each year in partnership with the IMD Lausanne. We increased exposure to Group Management members and provided a mix of learning experience on strategic business topics, leadership topics, and individual reflections.

In addition, for over a decade, we have been running International Graduate Programs in marketing, finance, and operations. In 2024, two new departments developed their International Graduate Programs: D2C (direct-to-consumer) and packaging. The International Graduate Programs facilitate an accelerated career path across the Group.

To upgrade the skills of our employees, we offer internal training courses at subsidiary level on a range of subjects, including leadership skills, project management, and personal skills. We also provide specialized functional, in-house training, and support external education based on business and individual needs.

Besides meaningful learning experiences, we offer a wide variety of further career development opportunities, including:

• Prioritization of our internal workforce for openings and recruitment of most of our executive leadership positions through internal promotions;
• Encouragement of cross-departmental development, e.g., between marketing and sales;
• Career mentoring as part of our newly launched Global Mentoring Program.

At the majority of our larger locations, we offer employability and career management support such as outplacement, external coaching, and retirement workshops. Local HR teams are responsible for development programs specific to their markets.

In order to further improve the maturity level of our global and local learning experiences, career paths, leadership development, functional capabilities, and development opportunities we hired a Group Senior Organization Development Manager and a Head of Sales and Marketing Capabilities to facilitate global and local alignment of our programs in 2024.

Employment and labor relations

We remain committed to respecting our employees’ rights to freedom of association, to join trade unions, and to collective bargaining. Our primary measurement tool in this context is regular meetings with works councils. Lindt & Sprüngli Group Management engages regularly with the European Works Council, as per EU requirements, and our Group Chief Human Resources Officer leads this engagement. Any other local employment matters are dealt with locally. Our focus areas in conversation with works councils are financial compensation, working hours, non-discrimination, disciplinary practices related to harassment and abuse, freedom of association and collective bargaining, health and safety, and working conditions.

Employment and labor relations are closely linked to national and local legal frameworks. As such, subjects like bargaining agreements, union management, and governmental organization management (employment and social government departments or agencies) are mainly dealt with by the local HR teams.

Due to differing international legal requirements, Lindt & Sprüngli does not have Group-wide benefit guidelines. At all of our significant locations (production sites and locations with over 300 employees), our full-time employees do, however, receive benefits above the minimum legal requirements. Equally, at all of our significant operational locations in Europe, part-time employees have the same eligibility as full-time workers for employee benefits, such as disability and invalidity coverage, health care, life insurance, or retirement provisions exceeding legal requirements. In North America, two of our four subsidiaries considered as significant locations of operation provide retirement provisions exceeding legal requirements.

The compensation of the local CEOs or Country Managers and their direct reports are globally defined.

Metrics and targets

Diversity, equity, and inclusion

Regarding our goal to increase the percentage of women in senior leadership positions to 40% by 2025, we increased the proportion to 39.5% in 2024 (up from 35.1% in 2023). Furthermore, we have already succeeded in achieving gender balance (40–60%) in middle management, with 53.7% female, 46.1% male, and 0.1% other gender representation in 2024. At Group Management level, we increased female representation to 33.3% in 2024 from 25% in 2023. In 2024, over a third of our subsidiaries also offered local training opportunities dedicated to women, and most subsidiaries promoted key events on International Women’s Day.

Non-discrimination and equal opportunities

The current data collection regarding discrimination and harassment incidents includes cases reported via the Speak Up Line grievance mechanism and legal proceedings. All incidents reported have been reviewed by the organization. In total, 16 incidents were reported in 2024 (compared to 26 incidents in 2023):

1
Case is pending.

16
incidents were reported via the Speak Up Line and of these, 15 incidents were closed, of which 4 incidents were substantiated in 2024.

73.3%
(11 of the 15) of the incidents reported were unsubstantiated and closed in 2024.

We continue to build awareness and offer training opportunities on the Speak Up Line as a reporting channel. Remediation actions included warnings and/or dismissals where the reported concerns were substantiated. The remediation plans implemented included discussions with, and the involvement of, local and/or Group Management to decide the appropriate actions.

Employee development and satisfaction

The reported number of employee training hours provided across the Group for 2024 stands at 288,804, with ongoing initiatives to enhance data accuracy across the Group. We conduct annual talent management reviews and performance appraisals and we have a structured employee succession planning process in place. In 2024, an average of 74.7% of employees across the Lindt & Sprüngli Group received performance and career development reviews. Employees meet with their direct managers at least once a year to create individual development plans that apply our 70–20–10 learning model. This learning model is based on 70% from learning opportunities on the job, 20% from informal learning opportunities and interactions with others (e.g., through mentoring or interactions with other departments), and 10% from formal learning opportunities through courses and other formal learning opportunities.

In 2024, employee turnover reduced from 22.2% in 2023 to 19.4% in 2024. Temporary workers represented 18.8% of the total workforce, a slight increase compared to last year, mainly due to the opening of several new retail stores. Lindt & Sprüngli also relies on non-employees, i.e., workers whose work is controlled by Lindt & Sprüngli within the framework of other operating expenses. They include agency and self-employed workers who are mainly supporting our manufacturing, sales, retail, and administration departments. The number of non-employees amounted to 2,370 in 2024.

Collective bargaining

Currently, Lindt & Sprüngli employees are collectively organized in Austria, Benelux, Brazil, France, Germany, Italy, Spain, Switzerland, and the US (Ghirardelli), with a total of 48.2% of the workforce of our Group under collective agreements. The working conditions of employees not covered by such agreements are defined as equal to, or better than, the ones for employees covered by collective bargaining agreements.

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