Governance and Ethics
|Sustainability at Wabtec|
|Innovating with Purpose|
|Empowering People & Communities|
|Governance and Ethics|
At Wabtec, we have a proud history of excellence and high ethical standards.
We act with integrity and treat every employee, customer and vendor with trust and respect. We have always believed that we are not only responsible for doing things right, but that we also have an obligation to do the right things.
Responsible Business Practices
Code of Business Conduct & Ethics
Our Code of Conduct is the cornerstone of how we do business. We encourage employees to report any compliance or integrity concerns immediately if they see or suspect unethical, illegal or unsafe conduct of any kind – or behavior that just doesn’t seem right. Employees are encouraged to raise concerns to their manager or supervisor, human resources, legal, compliance or internal audit. For anyone who is uncomfortable or wishes to remain anonymous, they may report anonymously by phone or electronically through Wabtec’s Speak Up Integrity Hotline. Regardless of reporting channel, all reported concerns are taken seriously and thoroughly investigated. We do not tolerate retaliation against any employee who reports wrongdoing.
Supplier Code of Conduct
The foundation of our approach to sustainable procurement is our Supplier Code of Conduct. Wabtec business units utilize standard terms and conditions for suppliers that incorporate Wabtec’s Supplier Code of Conduct and set specific expectations regarding suppliers’ compliance with laws and regulations related to environmental, health, safety, labor, human rights, security, and privacy. Wabtec uses a variety of assessment tools to evaluate supplier risk, based on several factors including geography and alignment with international standards for human rights, the environment, health, and safety.
Responsible Minerals Policy
Wabtec’s Responsible Minerals Policy outlines our commitment to avoiding and eliminating the use of minerals that directly or indirectly finance or benefit armed groups in the Democratic Republic of the Congo or adjoining countries. The Responsible Minerals Policy and accompanying set of guidelines, support the due diligence process related to eliminating the use of conflict minerals in our products and ongoing engagement with suppliers on this topic
Modern Slavery/Human Rights
Wabtec’s Human Rights Policy, issued in 2020, outlines our commitment to respecting human rights wherever we operate. The Human Rights Policy prohibits any form of forced, involuntary, or child labor in our operations. The Policy includes specific commitments to undertake ongoing due diligence to identify, prevent and mitigate any adverse impacts of our activities and provide access to remedies through effective reporting mechanisms.
Gender Equity at Wabtec
We are committed to fair pay and strive to be market competitive while ensuring internal equity across our organization. We regularly conduct global pay equity assessments and compensation reviews. We are actively working to hire, promote and retain women in the workplace, through mentoring, coaching, and training. We’re committed to increasing the number of women in all areas of our business and look carefully at all career opportunities.
Our sustainability governance framework starts with our Board of Directors, who oversee the execution of the company’s ESG strategy within their oversight of Wabtec’s overall business, risks, and opportunities. Our Board reviews ESG matters at least two times a year.
This framework is supported by our broader Enterprise Risk Management (ERM) process, which is our primary vehicle for assessing and managing operational, strategic, financial, and compliance risk. An ERM report, with the status of relevant mitigation measures, are reviewed with the Board twice a year.
Given Wabtec’s leading global position as a provider of equipment, systems, digital solutions, and value-added services for the freight and transit rail sectors, preparation and resilience are critical to how we do business. We routinely monitor risks, ensure swift response, and evaluate improvement areas for our risk management strategy.
Our Board of Directors, primarily led by the Audit Committee, is responsible for overseeing and monitoring the material risks facing the company. Our ERM process is central to our risk management process.
As global climate change impacts intensify, affecting diverse regions of the global economy, Wabtec recognizes the undeniable reality of climate physical and transition risks. To mitigate these risks, we commit to reducing GHG emissions as an urgent short and long-term priority, and we are taking meaningful and deliberate steps to support the transition to a clean energy economy within our operations and by supporting the adoption of low-carbon fuels and developing alternative propulsion technologies for the rail industry. We believe our efforts create a strong competitive differentiator for our business strategy. For more information about our climate risk mitigation activities, see Innovating with Purpose on page 19 and Commitment to Climate Action on page 32 of the 2023 Sustainability Report.