Declaration of Conformity with the German Sustainability Code

Overview of the materiality analysis process in accordance with the CSRD

The first step was to divide the GIZ value chain into three areas: procurement, operations and project work. A long list of potentially material sustainability issues was then compiled. Potentially material topics were identified based on the concept of double materiality. In this way, the possible impacts in the three areas of the value chain and the possible financial risks and opportunities for GIZ were identified using document-based research that was supplemented, validated and finally evaluated with the involvement of internal stakeholders. Additionally, partners in selected GIZ offices outside Germany were included in the analysis through a partner survey.

Material impacts, risks and opportunities of GIZ (inside-out and outside-in perspectives)

The table below shows the material impacts , risks and opportunities for GIZ in the areas of procurement, operations and project work. As a provider of services for sustainable development, GIZ’s corporate purpose is to achieve positive results in project work (see Criterion 10: Innovation and product management). There are thus positive impacts for all of the topics considered in the CSRD-compliant materiality analysis, which is why they are not listed again here.

Relationship between centralised and decentralised contracting

GIZ differentiates between contracts awarded centrally by GIZ Head Office and contracts awarded locally (local procurement in countries of assignment). In 2024, GIZ awarded contracts worth a total of some EUR 1,878 million to sub-contractors and recipients of financing. The volume of contracts awarded by Head Office was approximately EUR 1,495 million, which corresponds to around 80 per cent of the overall volume of contracts awarded in 2024. The volume of contracts awarded locally was approximately EUR 383 million, which corresponds to around 20 per cent of the overall volume of contracts awarded.

Sustainability architecture

Our sustainability architecture ensures that all measures and rules relevant to sustainability are dovetailed and can be monitored.

Sustainability is embedded in GIZ’s Corporate Strategy as a guiding principle and is subject to ongoing monitoring using indicators to measure results and progress. This basic guidance is supplemented by additional strategic documents, policies and recommendations, and detailed information on specific aspects of sustainability, for example in our internal regulations.

To help us continuously improve our operational sustainability, GIZ has its own Sustainability Programme and also uses management systems such as the Eco-Management and Audit Scheme (EMAS) and the Corporate Sustainability Handprint (CSH).

Our main tool for ensuring compliance with our sustainability standards in project implementation is our own Safeguards+Gender management system (S+G). Compliance with our S+G requirements is mandatory for all GIZ projects and programmes and is subject to a separate audit and monitoring procedure.

GIZ is currently introducing process management throughout the company and devising a management process for sustainability. The aim is to systematically mainstream sustainability within our business processes.

Risk management

GIZ’s risk management system ensures compliance with both statutory provisions and the requirements of different clients and commissioning parties. GIZ receives funding from the German national budget, international organisations and other international donors, including the EU. Risk management is designed to identify potential risks at an early stage and to manage them where they arise. The system thus helps GIZ make efficient use of funds, deliver optimum services and achieve its corporate objectives. Risk management is an integral part of the company’s internal rules and as such is mandatory for all managers. They are required to assess the probability of a risk becoming reality and the potential impacts this would have, so that appropriate mitigation measures can be taken at an early stage.

GIZ classifies risks in the following categories: compliance, IT/information security, commercial risks, personnel risks, political/other frameworks and security risks. Damage could potentially arise in the following impact categories: financial impacts, reputational impacts, impacts to service delivery and achievement of objectives, impacts to life and limb and impacts to sustainability.

Twice a year, new risks are identified company-wide and existing risks assessed to determine if they have changed. The staff reporting the risks document any mitigation measures taken. Additionally, GIZ organisational units may report ad hoc risks at any time. The findings of the six-monthly risk survey are discussed by the Risk and Compliance Sub-Committee (at mid-management level) and the Risk and Compliance Committee (senior management and one managing director). On this basis, mitigation measures are established for risks with corporate-policy relevance.

The Safeguards+Gender management system

When preparing and implementing international cooperation projects, we endeavour to ensure that the desired improvements in one area do not result in any unintentional deterioration in other areas. Impacts of this sort are termed unintended adverse impacts. In line with the precautionary principle, the projects of all clients and commissioning parties that are planned within the framework of the Safeguards+Gender management system are screened at the preparatory stage for possible unintended adverse impacts with respect to the environment, climate (reduction of greenhouse gas emissions and adaptation to climate change), conflict and context sensitivity, human rights and gender equality. This allows us to detect risks at an early stage, identify appropriate management approaches, and integrate these into the project strategy. In the area of gender, the potential for promoting gender equality is also explored.

Any risks of unintended adverse impacts identified by the Safeguards+Gender management system are handled by risk management at project level. With the help of this system, a total of about 250 projects were examined in 2024, and risk-mitigating modifications identified. 22 projects were deemed to be in the top risk category, resulting in a regular reappraisal of the way risks are developing and any modifications undertaken in the course of project implementation. These projects also receive more support from GIZ’s own safeguards specialists. Safeguards+Gender management is thus part of GIZ’s system for managing risks, quality and sustainability.

Evolving risk management

GIZ is continually honing its risk management system to ensure its operability and to meet internal and external requirements. In 2023, GIZ deployed the MIRAI (management of information security, risks, audits and incidents) software. The risk management module is a key tool for reporting relevant risks for the company. It simplifies the recording and management of risks. The software also provides for more comprehensive analyses that support risk monitoring and reporting.

In 2024, the company transferred responsibility for company-wide risk management to the renamed Governance, Risk, Compliance Unit.

Performance indicator GRI SRS-102-38: Annual total compensation ratio

The ratio of the annual total compensation for the organisation’s highest-paid individual in each country of significant operations to the median annual total compensation for all employees in the same country has not been published for 2024. This is not reported in detail due to confidentiality requirements and because of potential adverse impacts on the individual security of field staff.

Decentralised quality management

Our quality management and the underlying procedures and requirements are embedded at decentralised level, and responsibility for them lies with the relevant organisational units. The main actors responsible for the quality of service delivery in our projects are the commission and implementation managers, along with their line managers. They have a particular duty to ensure the quality of our work. Guidance is provided by our internal quality standards on effectiveness, cost-efficiency, partner orientation, and accountability and compliance, as well as the mandatory annual quality dialogue within the scope of quality assurance in line management.

External quality control

GIZ also undergoes an annual external quality control audit by the German Federal Ministry for Economic Cooperation and Development (BMZ). BMZ randomly selects 50 GIZ projects and audits their quality in terms of compliance with BMZ project planning and implementation requirements. The audit criteria are:

• Compliance with development-policy requirements
• Objectives system
• Offer and reporting
• Plausibility of the use of instruments
• Value for money

Quality control by BMZ is important as it allows auditors from outside the company to evaluate our projects from a different vantage point. GIZ and BMZ analyse the results and agree on any action that may prove necessary. This ensures a shared understanding of our cooperation arrangements and helps us to continually improve the quality of our work.

Learning and innovation

All of our projects and activities are developed, implemented and evaluated with a view to their effectiveness in terms of achieving the SDGs. Adverse impacts, caused for instance by necessary travel, is also factored into this assessment and evaluated in relation to the positive results achieved. We have a wide spectrum of operations in 53 sectors in 120 countries, in the environmental sphere (e.g. in the water and agricultural sectors), on social matters relating to sustainability (e.g. education and support measures for integrated and returning experts working for local employers in partner countries), and in the economic sphere (e.g. enhancing the business environment for small and medium-sized enterprises).

Innovations are managed and driven forward at various places inside GIZ. Central to this is the development of innovative approaches and solutions in projects as well as processes in the operational departments (including innovation workshops). Over and above this, activities in the Sectoral Department (such as the GIZ Data Lab) and various business development projects offer scope for further innovations. GIZ has long enjoyed a corporate culture that fosters innovation. This has been further expanded as part of the company’s digital transformation and has strengthened the presence of methodological skills needed for innovation and sustainability.

GIZ’s strategic innovation management is currently being honed with a view to making even better use of available resources and devising transformative approaches to achieve sustainability goals. As set out in the Corporate Strategy, innovation management is linked to the further development of a systematic product and services portfolio. The new management model rests on two main pillars:

1. Transform the Future: Management proactively selects areas of excellence, while transformative innovations in these areas are the focus of development and steering efforts.

2. Strengthen the Core: Functioning innovations already in place are more effectively identified in the GIZ portfolio and honed.

Strategic partnerships are the basis of successful innovation work on both pillars, along with cross-departmental cooperation and the ongoing development and expansion of the capacities of GIZ staff members. The aim is to steer innovations using innovation portfolio management, underpinning their long-term pro-development impacts. This will ensure the systematic promotion and scaling of innovations, thus making resource use more sustainable.

Achievements of our work around the world

Due to the availability of data during the preparation of the Sustainability Code declaration, the report on the Sustainability Code website contains results data for 2023.

Our work produces results. The data that we collect on a regular basis confirms this. It tells us what we have been able to change together with our commissioning parties and partners on site: in individual projects, but also across projects and countries.

We collect data on standard cross-project indicators from different projects using the same methods and uniform units of measurement and over an identical period of time. This allows us to collate data from a large number of projects. Around 1,300 projects provided data for 2024.

230,000 people completed a vocational training measure.

Skilled workers are one of the cornerstones of a country’s viable economic development. GIZ supports partner countries and their economies around the world in developing strategies for vocational education and training and creating prospects for local people. Last year, 230,000 people benefited from this directly and completed a vocational training measure. In Senegal, for example, we are committed to comprehensive training for skilled workers – to the benefit of local people, Senegal as a whole and Germany.

15.1 million people gained first-time or improved access to a modern energy supply.

Our world needs to become climate neutral. The global energy transition is an essential driver of development that should benefit everyone. Facilitating access to a modern energy supply opens up new green economic opportunities for local people. In 2024, 124 megawatts of capacity were created through the installation of additional renewable energy sources for electricity generation as part of our work with partners.

Over 22.5 million people were given potential access to digital administrative services.

Digital innovations can accelerate development progress. Better access to administrative services via digital tools can remove obstacles and pave the way for sustainable structural change. In 2024, together with our partners, we enabled potentially as many as 22,513,000 people to gain access to digital services.

2.5 million people around the world have increased their income as a result of projects implemented jointly with our partners. At least 1.2 million of them are women.

Decent work is needed to protect the livelihoods of working people. In 2023, 241 million people were living in extreme poverty despite being in work. Together with partners, we strengthen development of the private sector and mobilise private and public investment in the green economy.

Energy – the essentials

The total energy consumption and the energy mix varies widely between GIZ in Germany and our operations outside Germany. In Germany, our energy consumption is primarily accounted for by electricity and heating/cooling energy. Heating and cooling alone accounts for just over half of consumption. Outside Germany fuel for company vehicles and generators accounts for a large percentage of the total. The supply situation remains precarious in many of our partner countries, making (emergency) generators indispensable.

Water – the essentials

In many of our partner countries, water is a scarce and precious good. This makes it extremely important to use water economically. Collecting data on water consumption at GIZ’s country and project offices is particularly complex and our figures are still incomplete – sometimes because water meters are non-existent, defective or imprecise in their measurements. GIZ also only gathers data on consumption of tap water. Drinking water from other sources is only included in the figures where water canisters replace tap water. In African countries in particular (e.g. Ghana and Nigeria), wells are also used as a source of water. The consumption of well water cannot be quantified.

Waste – the essentials

GIZ aims to generate as little waste as possible and seeks to maximise re-use and recycling rates. The waste produced in Germany is mainly commercial waste similar to household waste, such as paper, packaging, organic waste and residual waste. The Corporate Sustainability Handprint® (CSH) does not record waste, so no quantitative data is available from outside Germany. Systematic waste separation is by no means the norm worldwide. Nevertheless, we also implement sustainability measures in this area. In several countries, for instance, we have drawn up waste management strategies dealing with electric and electronic waste, and partnerships have been established with local non-governmental organisations (NGOs).

Paper – the essentials

Paper is an essential resource that we use every day in the office. While it is not always possible to dispense with paper entirely, we have significantly reduced paper consumption worldwide since 2019 and are constantly working to reduce it further, especially outside Germany.

You will find a detailed list of our resource consumption under the performance indicators for Criteria 11 and 12.

Environmental management system inside Germany based on EMAS

In Germany, GIZ uses the Eco-Management and Audit Scheme (EMAS), which is an extension of the ISO 14001 environmental management standard. EMAS is the world’s most exacting certification system for corporate environmental management and requires companies to make continuous, annually verified improvements in their environmental performance. The overriding priority is to steadily reduce GIZ’s environmental impacts and provide evidence of this reduction. We draw up an annual environmental audit that sets out progress made towards achieving our environmental goals. This is presented to the responsible Chamber of Commerce and Industry (IHK) in the form of a declaration, having undergone a prior external audit by EMAS environmental auditors. By participating in the EMAS scheme, GIZ undertakes to steadily improve its environmental performance and comply with all applicable environmental regulations at locations covered by the EMAS.

The Chair of the GIZ Management Board is the company’s EMAS environmental management representative. Our Environmental Management Officer is based in GIZ’s Sustainability Office. The Officer launches and monitors all necessary steps within the company that are relevant for the EMAS system and coordinates implementation of environment-related measures laid out in the Sustainability Programme in close consultation with other units. Our registered offices in Bonn and Eschborn and our representation in Berlin first gained EMAS certification in 2013. Other buildings in Berlin, Bonn and Feldafing were included in the scheme over subsequent years.

Environmental management in partner countries: the Corporate Sustainability Handprint^®

The Corporate Sustainability Handprint® (CSH) is used to record progress achieved in the field of sustainability in the countries in which GIZ operates. It provides a uniform framework for corporate sustainability. GIZ has used the CSH to collect climate and environmental data every year in partner countries and country offices since 2018. Although the quality and availability of data are still not comparable with Germany, the situation is improving steadily. When we record environmental data, we distinguish between an ‘environmental footprint’ and an ‘environmental handprint’. While an environmental footprint measures things such as water consumption and CO2 emissions, the handprint documents active contributions towards sustainability, such as installing solar panels rather than generators, or arranging carpools for commutes. The ‘handprint’ also covers raising awareness about health issues, diversity and human rights, and ensuring sustainable procurement. GIZ encourages its local teams to optimise their sustainability performance.

Resource efficiency targets

GIZ’s environmental and climate targets are set out in the Sustainability Programme 2021–2025 (see also Criterion 3: Objectives). A few examples are given below.

Energy:

• GIZ intends to reduce the energy it consumes by 20 per cent per staff member in Germany and by 10 per cent per staff member outside Germany by 2025, taking 2019 as the base year. This is to be achieved by campaigns raising awareness of the need to save energy at the workplace and by further developing modern working models, putting in place energy saving measures and analysing energy consumption.
• To promote sustainable development, GIZ also intends to make more use of renewable energy. The aim is to raise the installed capacity of our photovoltaic plants inside Germany to 150 kWp and outside Germany to 400 kWp by 2025.
• Mobility: Wherever possible, business travel is to be replaced by online meetings or reduced by grouping appointments. These approaches worked well during the COVID-19 pandemic.
• Coolants: By 2025, the use of coolants with a particularly high global warming potential (GWP) is to be reduced by 10 per cent outside Germany and by 20 per cent inside Germany. The implementation plan sets out the identification of all coolants used as a first step. After the refitting plans are drawn up, modern plants using climate-friendly coolants will be the main thrust in achieving the target.

Resources

• The carbon footprint of our digital operations will be continuously reduced by using IT equipment for longer, by carrying out repairs as required and finally by recycling equipment. To this end, equipment inside Germany is to be better repaired and defective equipment is to be recycled. Outside Germany too, the foundations are to be laid for recycling infrastructure.
• Paper: By 2025, the volume of paper used for printing in Germany is to be cut by 65 per cent, while a target of 40 per cent has been set for outside Germany. The main measures involve training staff, making more use of software applications and providing information internally to raise awareness of digital storage options.

Measures

Energy

Electric power: Almost all the power used at GIZ locations in Germany is green electricity. In 2023, some 93 per cent of the power used was generated from renewables. The consumption of conventional electricity stems from the use of spaces shared with other tenants, such as reception areas, underground car parking facilities and lifts in leased properties. Wherever possible, we are replacing conventional light bulbs with LEDs at all locations. We are also optimising ventilation systems to save power.

As a general rule, GIZ measures electricity consumption at all locations where GIZ staff work in our partner countries. Since most countries do not yet generate enough on-grid electricity from renewables, we cannot achieve the same percentage of green electricity supplied to our offices outside Germany as we do in Germany. However, GIZ offices in partner countries are always looking at where and how it makes economic and environmental sense to use PV systems in our locations abroad.

The number of country and project offices installing or planning to install PV systems has been steadily increasing. Energy efficiency measures are an important factor in the equation. The lower the basic electric power demand, the better the chances of meeting demand in the event of power outages with appropriately dimensioned PV systems and of reducing the use of diesel generators for peak loads. This also means greater energy security for GIZ locations in fragile contexts. Measures in the fields of energy efficiency and renewable energy thus complement each other.

New PV systems were installed at several locations outside Germany in 2023, including the Democratic Republic of the Congo, Mexico and Albania.

Heating and cooling: Many locations inside Germany have gradually shifted to using biomethane for heating purposes. In 2023, another of our Eschborn buildings took this step. Geothermal systems are used in Bonn, Röttgen and Eschborn. Additionally, new PV systems and heat pumps also began operating at Kottenforst Campus in 2023. There are also plans to expand the use of renewables at some locations, for example by installing PV systems. This goes hand in hand with energy-efficient refurbishments such as better insulation.

Wherever possible, particularly energy-efficient and environmentally friendly air conditioning systems (green cooling) have been procured, but these are not readily available outside Germany.

Mobility: The COVID-19 pandemic has led to a significant decrease in fuel consumption for cars outside Germany since 2020. In order to keep fuel consumption low in the future, options for establishing context-specific vehicle pooling systems are being explored. The cross-project procurement and use of motor vehicles are also to become standard practice. In Germany, we are prioritising the transition to electromobility. In 2023, two new electric minibuses were put into operation to replace older diesel-powered vehicles. Over half of our modest company fleet, which consists of 11 vehicles, is therefore now fully electric.

Outside Germany too more electric vehicles have been purchased and events held to raise staff awareness on issues such as sustainable mobility and energy and resource consumption.Progress is described under performance indicator GRI SRS-302-4: Reduction of energy consumption.

Progress is described under performance indicator GRI SRS-302-4: Reduction of energy consumption.

Water

In almost all of our buildings in Germany, we have lowered the water pressure in the kitchen areas and toilets and installed water-saving fittings, aerators on taps and low-flush buttons on toilets. However, for some time now it has been mandatory under the Drinking Water Regulation to flush water pipes at regular intervals. This reduces the impact of these measures. At some locations, rainwater is used to flush toilets and for the outside areas. The grounds have been landscaped such that they require little or no watering, with the exception of newly planted trees or during long, hot spells.

Progress is described under performance indicator GRI SRS-303-3: Water withdrawal.

Waste

Since 2020, GIZ has had a waste strategy for its main locations in Germany that simplifies and centralises the clear separation of waste. It focuses on easy separation of waste from reusable materials, reducing the use of plastic, and efficient cleaning. The entire waste management process is documented and waste is disposed of by certified specialist companies. During the procurement process too, GIZ ensures that product packaging generates as little waste as possible, which is why we prefer reusable packaging. Sustainability criteria have also been agreed for the office supplies we use.

Progress is described under performance indicator GRI SRS-306-3 (2020): Waste generated.

Paper

GIZ is particularly committed to gradually digitalising document processing. Since October 2021, documents for internal use – apart from exceptions required by law – have been handled and stored only in electronic form. All of the paper GIZ uses in Germany is recycled paper with the Blue Angel seal of approval. We also use low-energy printers. Our service provider uses our empty ink and toner cartridges to manufacture new ones.

Progress is described under performance indicator GRI SRS-301-1: Materials used.

Identification of risks

Within the scope of the materiality analysis in preparation for the CSRD (see Criterion 2), two main environmental risks were identified:

• Topic area E1: Climate change mitigation and energy: Rising carbon pricing and stricter regulatory requirements for buildings increase GIZ’s structural costs.
• Topic area E1: Adaptation to climate change: Longer-term changes in climate patterns with rising sea levels and chronic heatwaves jeopardise the security of GIZ’s locations and cause financial damage.

As part of the EMAS environmental management scheme too, environmentally relevant opportunities and risks are analysed at least once a year and spotlighted.

Paper consumption in Germany fell from 11.9 million to 3.6 million sheets of paper in 2023, which is 70 per cent lower than in 2019. The 65 per cent reduction target set out in the Sustainability Programme was therefore achieved. Further reductions in consumption figures are expected as work processes are digitalised, the eProcurement system is introduced and the number of paperless events grows. Paper consumption has been slashed by more than 300,000 sheets a year in connection with the annual staff assessment and development talks and manager-staff dialogues alone.

Paper consumption outside Germany fell from 73.6 million to around 37 million sheets of paper, which is a reduction of approximately 50 per cent against 2019. Recycled paper accounted for 24 per cent of all paper used at GIZ locations abroad in 2023, an increase of 9 per cent compared with 2019. In partner countries, it is not always possible to use recycled paper, as it is often difficult or even impossible to source locally. Nevertheless, GIZ has switched to 100 per cent recycled paper in eleven countries in Africa, Asia and Europe.

Performance indicator GRI SRS-302-1: Energy consumption

1 These figures deviate in part from previously published data due to improvements in data quality.

¹These figures deviate in part from previously published data due to improvements in data quality.

Performance indicator GRI SRS-302-4: Reduction of energy consumption

Total energy consumption in Germany is about 1 per cent up on the previous year. Outside Germany, it fell by about 6 per cent year-on-year, taking it to about 11 per cent below the pre-COVID 19 pandemic level. Total energy consumption per employee fell by 3 per cent in Germany and by 5 per cent outside Germany.

The installed capacity of PV plants in GIZ’s locations abroad rose by 120 per cent between 2022 and 2023. The installed capacity of 550 kWp means that the target of 400 kWp set out in the Sustainability Programme was achieved. Compared with 2022, energy consumption increased by 4 per cent in Germany and by 6 per cent abroad. Our worldwide electricity consumption in 2023 was about 7 per cent below the 2019 level.

Our locations in Germany and abroad vary enormously in terms of heating/cooling energy consumption. Overall consumption of heating and cooling energy in 2023 was at a similar level to 2022. Consumption per employee in Germany was 1,775 kWh in 2023, which represents a drop of around 5 per cent. Outside Germany, where heating systems are used in only a few countries or are partly based on electricity, the consumption figures are lower. However, 2023 also saw a slight increase of 12 per cent over the previous year, taking the figure to 219 kWh per employee.

The share of renewable energy inside Germany is 71 per cent, which marks an increase of 14 per cent on the previous year, as another building in Eschborn converted to the use of biomethane. 93 per cent of electricity used is green electricity.

Mobility: GIZ’s fleet of 11 vehicles consumed fuel equivalent to 60,018 kWh in 2023. The direct energy consumption resulting from vehicle fuel at GIZ locations in Germany is thus of only tangential importance. GIZ’s core business, implementing projects, takes place at its locations abroad, where the company maintained a fleet of 2,697 motor vehicles in 2023. Their fuel consumption totalled 38,866,303 kWh. This represents a reduction of over 500 vehicles in the field structure compared with 2022, while energy consumption was down by about 5,000,000 kWh over the same period. GIZ is also working steadily to raise the percentage of its vehicle fleet accounted for by electric vehicles.

In 2023, the energy consumption of motor vehicles fell by about 16 per cent in absolute terms compared with the 2019 base year.

Generators: Compared with 2022, the fuel consumption of generators outside Germany was about 11 per cent lower in 2023. This is due to fluctuations in grid stability in partner countries.

Performance indicator GRI SRS-303-3: Water withdrawal

GIZ’s water consumption in Germany in 2023 was 4 per cent lower than in the previous year. Per capita consumption was also down, by around 7 per cent, falling to 4,065 litres per employee in 2023. Water consumption was about 48 per cent down on 2019. In 2023, water consumption outside Germany was 8 per cent lower than in the previous year. The trend in per capita consumption was similar, falling by 7 per cent to 18,301 litres per employee.

Performance indicator GRI SRS-306-3 (2020): Waste generated

The total volume of non-hazardous waste generated by GIZ in Germany was 807 metric tonnes in 2023, putting it at the same level as the previous year. The volume of hazardous waste generated is comparatively low, amounting to around 13 tonnes. This includes defective battery-powered electronic devices, batteries and light bulbs.

It is not currently possible to record waste generated outside Germany in any standardised form because waste separation and disposal standards vary so widely around the world, and because the data is not always available.

Principles

GIZ is firmly committed to the Paris Agreement’s 1.5-degree target. The climate crisis is one of the greatest challenges of our time, and climate action is a key concern for GIZ. GIZ is supporting partners in countries of assignment in implementing climate change mitigation and adaptation measures. At the same time, we are setting ourselves goals to improve our own carbon footprint, in line with the most rigorous science-based, transparent standards and benchmarks. For GIZ’s climate management, prevention takes priority over reduction, while offsetting of unavoidable emissions is a last resort.

GIZ bases its climate management on the findings of climate research. In 2021, we were the first development cooperation company to join the global Science Based Targets initiative (SBTi). GIZ is thus pursuing ambitious emission reduction targets that are broken down into different scopes, or groups of emission sources, in line with international standards.

Targets

Climate change mitigation is at the heart of GIZ’s Sustainability Programme 2021–2025, and reducing GHG emissions at GIZ locations worldwide is our top priority.

We have pledged to reduce our direct and indirect emissions – Scope 1 and 2 – by 30 per cent of the 2019 figure by 2025. GIZ has also committed to reducing absolute Scope 3 greenhouse gas emissions from purchased goods and services, fuel and energy-related activities, business travel and staff commuting by 10 per cent between 2019 and 2025. The data is updated annually and, if new information becomes available, results from previous years are corrected.

Taking 2019 as a benchmark, GIZ intends to cut GHG emissions resulting from air travel inside and outside Germany by 25 per cent by 2025. Over the same period, the GHG emissions arising from fuel used by GIZ vehicles outside Germany are to be cut by 14 per cent. GHG emissions generated by staff commuting inside Germany are to be reduced by 35 per cent by 2025.

Step by step, GIZ is improving its monitoring system, enabling it to record other key emissions more accurately, and to reduce these wherever possible. Collecting data on Scope 3 emissions is challenging because the availability and accessibility of the data vary widely. This means that only certain emission sources – such as business trips – can be accurately accounted for, while for others – such as purchased goods and services – only estimates are available.

Offsetting

To offset unavoidable emissions, GIZ acquires certificates from climate change mitigation projects which meet not only environmental but also social sustainability criteria. They comply with the Gold Standard requirements, one of the most rigorous international quality standards, and are verified by the United Nations Clean Development Mechanism (CDM). They also meet the requirements set out in Article 6(4) of the Paris Agreement regarding the crediting mechanism.

Emissions in Germany have been offset since 2013 and emissions abroad since 2020. GIZ offsets all direct Scope 1 GHG emissions. It also offsets some indirect Scope 2 and Scope 3 GHG emissions that can be effectively measured. For 2023, these are emissions from commuting in Germany and from business trips in Germany and abroad, from events in Germany and from fuels and energy-related emissions in Germany and abroad. Other emission sources are outside GIZ’s control and can be mapped only in part using rough estimates. They are not offset.

The measures set out under Criterion 12: Resource management to improve resource efficiency also help reduce Scope 1, Scope 2 and Scope 3 GHG emissions.

Performance indicator GRI SRS-305-2: Energy indirect (Scope 2) GHG emissions

These figures deviate in part from previously published data due to improvements in data quality.
Emissions from electricity were calculated in Germany using the market-based method.

Performance indicator GRI SRS-305-3: Other indirect (Scope 3) GHG emissions

[1] Estimate based on financial data. These emissions are solely from purchased services because these are material for GIZ.
[2] These figures deviate in part from previously published data due to improvements in data quality. An estimate was made for international operations for 2019 and 2020.
[3] Commuter travel abroad was roughly estimated for 2019 using flat-rate values. Starting in 2020, these figures are calculated using an extrapolation based on the results of an internal survey of selected sites outside Germany.

Performance indicator GRI SRS-305-5: Reduction of GHG emissions

Below are the climate management results and measures from the 2023 reporting year:

• In 2023 a reduction of 15 per cent was achieved in Scope 1 and Scope 2. Savings in direct emissions from Scope 1 occurred mainly in Germany as a result of the switch to biomethane and energy-saving drives. Emissions outside Germany also fell slightly. While emissions from motor vehicles and generators fell, emissions arising from heating and coolants rose. Indirect energy-related emissions from Scope 2 continued to rise in 2023. This is primarily due to increased electricity consumption at locations abroad.
• Scope 3 emissions are again at the 2019 level. In previous years, emissions had fallen in the wake of the COVID-19 pandemic, but they rose again in 2023. Emissions from purchased services have risen as the procurement volume has increased again. By contrast, emissions from business travel have fallen and are below the 2019 level.

Direct and indirect GHG emissions from buildings and vehicles are down by about 15 per cent compared to 2019. Indirect emissions from the upstream and downstream value chain remained at the same level.

Measures to raise the awareness of our service providers, including online training and standardised information about climate-friendly travel in our contractual documents can also reduce GHG emissions in the value chain. Unfortunately, the effects of these measures cannot be quantified at present because GIZ – like many other companies – estimates GHG emissions from procurement based solely on financial procurement volume and relatively imprecise emission factors. The emission volumes stated here thus only vary in line with the volume of our purchasing of services, and cannot reflect the impact of action taken to date.

Achievement of SBTi target [1]

[1] The totals deviate in part from previously communicated figures because data quality has improved thanks to more accurate recalculations.

Employment rights outside Germany

GIZ’s services are delivered jointly by national staff members and seconded staff. The corporate policy principles apply equally to seconded and national staff. A company-wide policy is in place for national staff members. It sets out standards and professional HR processes to ensure standardised corporate policy, while the principles and guiderails enshrined in the policy ensure a common direction in HR work for this group of the workforce. Equally, it provides the flexibility required to take account of national legislation and specific regional and cultural factors.

Compliance with employment rights is already firmly established at GIZ, which is why we do not currently have any quantitative or time-bound objectives in this area.

Identification of risks

Assignments in our partner countries entail security risks. In many places, the threat of natural disasters, terrorist attacks and violent crime is higher than in Germany. The standards of infrastructure and medical care are often lower than in Germany. Increasingly, staff are being assigned in fragile contexts. This creates special challenges for GIZ in terms of the duty of care towards its staff members. The safety and security of our staff is always our top priority. At GIZ, the Management Board bears overall responsibility for the safety and security of staff. The Corporate Security Unit reports directly to the Management Board. It was established in 2016 and is responsible for staff worldwide. Responsibility for the personal safety of staff undertaking assignments in partner countries is vested in the relevant country director, who is responsible for security risk management and crisis management in the country of assignment. The HR Department’s crisis management team supports country directors and affected managers and staff. It was put in place in 2021 and offers advice on all personnel management implications during crises.

Additionally, GIZ offers all staff members a psychosocial counselling service, COPE (Cooperation with Personnel in Stress, Conflict and Crisis). All staff members and their families worldwide can make use of the confidential counselling services to help them come to terms with professional or private crises. In particularly challenging countries, COPE also conducts studies to identify mental health risks and, on this basis, devises specific staff care programmes. Staff care services aim to retain the ability of staff to work in the long term and to protect them against mental and physical health risks resulting from their work.

Within the scope of the materiality analysis that is part of the preparations for the CSRD, two main financial risks have been identified in the field of employment rights in addition to the risks set out above.

• Professional cyberattacks could lead to the loss of employee data and result in financial damage to GIZ.
• Data protection contraventions could result in claims for damages from affected data subjects, to the data protection regulators banning GIZ from processing data, or to an outflow of knowledge from compromised employee accounts, and could cause GIZ financial damage.

Key opportunities and risks are listed under Criterion 2: Materiality. At project level, the Safeguards+Gender management system assesses potential risks. More information on this can be found under Criterion 6: Rules and processes.

Involving staff in GIZ sustainability management

GIZ maintains an ongoing dialogue with its staff on the topic of engagement and takes account of any criticism and suggestions. In 2019, it produced an orientation on employee involvement in sustainability management.

The Sustainability Fund and the Sustainability Contest built on these guidelines, offering two different ways for staff to engage. In 2024, they evolved into the joint Sustainability Challenge, a competition that is held every two years. Additionally, employees have the option of agreeing on staff goals for their sustainability engagement in consultation with their line manager. These goals are relevant in terms of variable financial remuneration (See also Criterion 8: Incentives systems).

The annual German Sustainability Action Days also raise staff awareness of sustainability factors and draw their attention to activities they could become involved in to translate sustainability into practice. Within the scope of the Action Days, GIZ colleagues regularly organise a large number of activities in Germany and in their countries of assignment. In 2024, the focus was once again on activities in the field of environmental and social sustainability. Apart from the Action Days, however, more staff members are engaging regularly to promote sustainability within the company, as evidenced by the rising number of requests to join our networking spaces.

The dimensions of diversity

Our diversity management looks at overlaps in the seven dimensions of diversity set out in the German Diversity Charter:

1. Age
2. Ethnic origin and nationality
3. Gender and gender identity
4. Physical and mental abilities
5. Religion and belief
6. Sexual orientation
7. Social background

GIZ has set itself ambitious goals in the field of equal opportunities. In our GIZ Sustainability Programme, we have undertaken to enhance the ability of GIZ staff and managers to appreciate and harness diversity within the company, and to contribute to a non-discriminatory corporate culture by 2025. Moreover, GIZ has an Inclusion Plan and (in line with German labour law) an Equal Opportunities Plan 2024-2027, covering all employees with a German employment contract. It serves as an HR development and planning instrument. Since 2006, GIZ has been certified as a family-friendly employer under the ‘audit berufundfamilie’ certification scheme. As part of the regular cycle, GIZ was recertified in 2023, as a result of which we are currently implementing the programme of action emerging from recertification. We have also pledged to take steps to implement the pay equality check.

In this reporting year, we also drove forward measures to address specific dimensions of diversity – both as a company as a whole and individually in the different divisions and countries.

Inclusion at GIZ

In December 2022, GIZ joined the Valuable 500, a global initiative committed to inclusion of people with disabilities. Specifically, we are committed to recruiting more people with disabilities, working continuously to raise staff awareness of inclusion, and to becoming even more inclusive and barrier-free as an employer. We use what we call action plans to achieve this. We have, for instance, produced an Action Plan on Digital Accessibility with the aim of making all our websites, mobile applications and other digital tools as accessible as possible to all staff members.

Women in leadership

The measures in our Equal Opportunities Plan are designed to improve gender equality. One particular focus is on women in leadership positions, which we promote through activities such as awareness training for managers and mentoring programmes for women within Germany and around the world.

Gender equality – an important driver of sustainable development

As a leading international cooperation organisation, we aim to develop solutions that work. Since gender equality impacts significantly on society as a whole, it is an integral part of our high-quality services. And it is part of our values system, as well as being firmly anchored in Germany’s constitution, the Basic Law for the Federal Republic of Germany.

Current political upheaval has also lent the issue a new urgency. We would like to ensure transformative changes leading to more inclusive societies. We aim to further expand the already high level of ambition in our work, especially in the fields of energy, digitalisation and climate.

During the 2024 reporting period, the new Gender Strategy 2025-2029 was adopted by the Management Board. It sets the course for fostering gender equality and equal opportunities at GIZ and in our service delivery. To make our projects more effective and bring about lasting change, we focus on structural, underlying causes of gender-specific discrimination, on cooperation with change agents from the state sector and civil society, and on enhancing the capacities of our organisation to achieve greater gender equality. In line with their respective mandates and responsibilities, every GIZ organisational unit will be involved in breathing life into the new strategy over the next five years.

National staff members

National staff members are particularly important to GIZ because they are familiar with local structures and office holders, and understand the social and cultural context. By employing national staff and supporting their professional development, GIZ ensures the excellence of its service provision, while at the same time upholding the basic understanding that development policy promotes expertise in each partner country sustainably and over the long term.

To attract and retain national staff members, transparency in its remuneration systems is given high priority by GIZ. During the reporting period the focus was thus on elaborating measures to be implemented in 2025/26 to enhance the transparency of the remuneration system for national staff members while also ensuring the eligibility of costs for invoicing.

Performance indicator GRI SRS-403-4: Worker participation on occupational health and safety

Performance indicator GRI SRS-404-1 (See G4-LA9): Average hours of training per year per employee

Figures broken down by participants in Germany, participants in the field and non-GIZ participants:

Figures broken down by employee category:

Figures broken down by gender:

Performance indicator GRI SRS-405-1: Diversity

As at 31 December 2024, the GIZ Supervisory Board had a total of 20 members. Women and men each accounted for 50 per cent of members.

As at 31 December 2024, women accounted for 60.3 per cent of GIZ’s 8,309 employees with a German employment contract. The share of women in leadership positions was 47.1 per cent, which represents a further increase of 0.9 percentage points compared with the previous year. While 51.3 per cent of leadership positions in Germany were held by women, women accounted for just 44.5 per cent of staff with a German employment contract seconded abroad. As at 31 December 2024, the average age of staff with a German employment contract was 43, putting it slightly above the 2023 figure (42.5). Among women, the average age was 42.3 years, making them around two years younger on average than their male colleagues, whose average age was 44.1.

Employees with a German employment contract represent a total of 124 nations, the majority of them being German or EU citizens.

Following the introduction of the Inclusion Agreement in 2020, GIZ focused in particular on the long-term inclusion of staff with disabilities. As at 31 December 2024, GIZ employed 319 individuals classed as having a degree of disability of 50 per cent or more, or a recognised equivalent. In line with the German Social Code (SGB) the official rate of disabled staff members was equivalent to 4.46 per cent of the workforce in 2024.

Performance indicator GRI SRS-406-1: Incidents of discrimination

Protection against discrimination, particularly on grounds of ethnic origin, gender, religion, disability, age, sexual identity and sexual orientation is enshrined in the GIZ Code of Ethics. It applies equally to all staff members worldwide.

Every individual affected by discrimination within the company can contact the Compliance and Integrity Unit for advice or with a grievance; the complaints committee required under the German General Act on Equal Treatment (AGG) is part of this unit. Additionally, staff can turn to members of the staff representation, the Gender Equality Officer, the representatives for young people and trainees, people with disabilities and LGBTIQ+ employees for advice. It is always possible to obtain advice on an anonymous basis. For this reason, no statistics are kept on enquiries of this sort.

Identification of risks

To identify risks in its business environment, GIZ conducted its second extensive risk analysis in 2024. In contrast with the previous year, the analysis was fully IT-assisted and a digital evaluation was possible. No high risks were identified in the course of the analysis. To identify potential risks posed by services and materials and equipment along the value chain, GIZ has, since 2022, also conducted annual risk assessments for product categories as well as with additional risk analyses of priority suppliers. Products and services for which there is a high risk of wrongdoings during production, use or disposal, are identified and listed on an ongoing basis. For these products and services, GIZ draws up additional sustainability criteria and guidance for sustainable procurement in order to avoid and mitigate these risks as far as possible. The Chair of the Management Board is informed annually about the findings of risk analyses by the units responsible.

GIZ reviews its key due diligence processes annually to ensure they are effective. For this purpose, mechanisms have been developed that are continually being honed and optimised. Senior management seeks information about the work of the human rights officer once a year. To this end, it invites the human rights officer to report to the relevant body, presided over by the Chair of the Management Board.

GIZ’s Safeguards+Gender Management system allows GIZ to identify risks in advance and respond appropriately at project level, while helping GIZ prevent any unintended adverse impacts on human rights. The GIZ whistleblower system is designed to detect contraventions or any suspected human rights violations as well as any infringements of legislation, internal regulations or voluntary commitments. Incidents can be reported anonymously using the GIZ whistleblower portal. The human rights grievance mechanism is channelled through the GIZ whistleblower system and is open to everybody.

The GIZ Sustainability Programme 2021–2025, which sets out detailed objectives and measures on human rights and sustainable procurement, was adapted in 2023 to take account of the provisions of the new German Supply Chain Act (Lieferkettensorgfaltspflichtengesetz, LkSG). The annual risk analyses of GIZ’s own business area and of direct suppliers have been incorporated, along with the annual review of due diligence processes to ensure their effectiveness. GIZ has also set itself the twin goals of ensuring internal training materials are up-to-date and devising additional training options. Human rights issues, for instance, have now been integrated into the onboarding of all staff members.

To prevent human rights violations in the supply chain, GIZ had itself certified by the German Association for Supply Chain Management, Procurement and Logistics (BME) as a ‘sustainable procurement organisation’ in 2023. A follow-up audit was conducted in 2024 and the certification confirmed.

To ensure low-threshold access to the GIZ whistleblower system, GIZ has drawn up minimum standards for reporting in its country offices. The roll-out was continued in 2024.

All groups that form part of GIZ’s workforce have access to information and training on human rights due diligence.

Performance indicator GRI SRS-412-1: Operations subject to human rights reviews

Within the scope of its risk analysis pursuant to the German Supply Chain Act, GIZ has conducted an abstract analysis for all countries in which it operates. All country offices in the 20 high-risk countries identified in 2024 were then required to fill in a questionnaire to explore in more depth the situation at all GIZ locations in the country. Compared with the previous year, the number of high-risk countries is lower because GIZ expressly intended to use its first extensive risk analysis under the Supply Chain Act to analyse more countries in depth and obtain a better overview. The focus in 2024 was more on in-depth investigations in the countries where the risks were found to be highest.

Performance indicator GRI SRS-414-1: New suppliers subject to social screening

The General Terms and Conditions of Contract (AVB) and the General Purchase Conditions (AEB), which were revised in 2023, as well as the Code of Conduct for Contractors, require all suppliers and service providers without exception to comply with environmental and social sustainability criteria, including due diligence obligations in the supply chain.

Performance indicator GRI SRS-414-2: Social impacts in the supply chain

GIZ has identified categories of goods that involve a risk in terms of human rights and other sustainability criteria and draws up product-specific guidance for the sustainable procurement of these goods. This can mitigate risks. Additionally, an annual mapping process has identified and prioritised some 2,000 suppliers and service providers who supply these high-risk categories of goods or these services, and where adverse impacts could conceivably occur. On the basis of these abstract risk analyses and given our global business activities, particularly in fragile contexts, GIZ sees the following as focal areas that we have identified as being particularly crucial for the company: protection of vulnerable groups; fair working conditions; occupational safety; freedom from discrimination; no economic or social exploitation of children; prevention of forced or compulsory labour; and protection against sexual assault at the workplace.

In 2024, the in-depth assessments of suppliers were continued and additional sustainability dialogues conducted with these key suppliers. The main goal was to identify risks and strengthen the sustainability performance of suppliers, thus mitigating risks. In this spirit, over 800 companies identified as belonging to the highest risk category were contacted, and concrete risk analyses conducted using plausibility checks and information provided by the companies themselves.

Networks and cooperation arrangements

GIZ works in a targeted fashion to build strategic alliances and cooperation arrangements with other development cooperation organisations, civil society and private-sector stakeholders. Additionally, we are involved in networks in Germany and worldwide, and are a member of numerous relevant organisations. We maintain an intensive dialogue on sustainability issues at global, national, regional and local level. One example is the events held in our Berlin Representation on various aspects of international cooperation and our participation in dialogue and discussion events staged by institutions in Berlin.

Promotion at local level

GIZ supports communities at its locations by offering a wide range of training services, a full spectrum of activities to foster young talent and support for regional sporting events. GIZ offers a wide spectrum of training courses. Every year some 15 places are available for students pursuing what is termed a ‘dual degree’, under which they split their time between a higher education institution and a company. Here, GIZ cooperates with Baden-Württemberg Cooperative State University (DHBW) Mannheim, FOM University of Applied Sciences Frankfurt, Trier University of Applied Sciences and Alanus University of Arts and Social Sciences in Alfter to offer dual university degrees. Every year, GIZ also trains about 25 people in various occupations at its offices in Eschborn, Berlin and Bonn. Over and above this, between 900 and 1,000 students a year undertake internships with GIZ, both in Germany and abroad.

Within the framework of a special project, some seven young refugees a year undertake initial training in preparation for in-company training.

As part of career guidance activities, GIZ takes part in Boys’ and Girls’ Day, with the Eschborn and Bonn offices alternating in providing secondary school children with an insight into the company. We also offer internships for this group. Furthermore, GIZ trainees act as training ambassadors for the Chambers of Commerce and Industry. The Development Cooperation Trainee Programme is a training programme for young professionals offered by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by GIZ. The Trainee Programme for Financial Management outside Germany focuses on opportunities to enter into commercial occupations. GIZ’s annual intake for the trainee programmes is between 40 and 60 young people.

Corporate Health Management (CHM) is part of the HR Department’s Health Services Division. CHM pays the start-up fees for one event per company sports group per year at the offices in Berlin, Bonn and Eschborn and in every country with a country office. This sponsorship is conditional on the purpose of the event being consistent with GIZ guidelines and corporate values.

Identification of risks

Corporate Health Management (CHM) enables GIZ to fulfil its social responsibility and legal obligation towards its staff in terms of ensuring occupational health and safety in a strategic, systematic and targeted manner, as well as its obligation to use public funds in an impact-oriented manner.

GIZ is required to ensure occupational health and safety. It does so voluntarily through internal guidelines and regulations and also complies with mandatory state provisions set out in the German Occupational Safety and Health Act(ArbSchG). The need for health-promoting measures at GIZ is enshrined in GIZ’s Corporate Principles, the Corporate Health Management policy on maintaining the performance of staff members and in the National Staff Policy. In this context, CHM plays an important part in implementing the HR Strategy 2023+ and helps to ensure GIZ’s delivery capability since companies depend on healthy and productive staff in order to remain competitive and deliver effective services in the long term. The promotion of health in the workplace is enshrined in law in the German Occupational Safety and Health Act, i.e. the protection of members of the workforce against damage to their health which may be caused or aggravated by certain occupational activities. This explicitly includes psychological stress at work (see section 5 (3.6), ArbSchG). In addition, the Joint German Occupational Health and Safety Strategy (GDA) is a permanent platform initiated by the German Government, the federal states and the accident insurance institutions and enshrined in the Occupational Health and Safety Act and Volume VII of the German Social Code (SGB VII). Its mandate is to help enhance health and safety at the workplace. Furthermore, the Workplaces Ordinance (Arbeitsstättenverordnung, ArbStättV) contains concrete measures for the health and safety of workforce members in workplaces and sets out requirements for the humane organisation of work. In addition to this, in 2015 the German Parliament passed the Prevention Act (German Act on Strengthening Health Promotion and Prevention (Präventionsgesetz, PrävG) I:1368) with the aim of improving the coordination of the actors involved (mainly health insurance funds) and making preventive health and health promotion more effective. The primary shared goal is to prevent illnesses before they occur. The aim is for prevention and health promotion to take effect in all areas of life – wherever people live, learn and work. This act incorporates the requirements regarding primary prevention and occupational health promotion to be provided by health insurance funds as set out in sections 20, 20a, 20b and 20c of Volume V of the German Social Code (section 20a SGB V and section 20b SGB V). These include exercise programmes, nutrition, stress management and addiction prevention. The exact criteria can be found in the Guidelines on Prevention published by the German National Association of Statutory Health Insurance Funds.

CHM is necessary within the company to raise the motivation of staff by strengthening their identification with the company, to help maintain the performance capacity of staff and GIZ’s ability to deliver, to lower costs by reducing sick leave and production downtime, to raise productivity and quality, and to enhance the image of the company. CHM is therefore a positive factor in GIZ establishing itself as an attractive employer at a time when there is a scarcity of skilled professionals.

GIZ fosters young talent as a key component in meeting its needs for commercial and IT professionals. This is reflected in the fact that over 80 per cent of young people undertaking training at GIZ are retained by the company after qualifying. To meet its needs for young professionals, GIZ also focuses on inclusion in training, while its entry-level programme for refugees enables people access to in-company training who would otherwise fail to meet the entrance qualifications.

Helping ensure a continued supply of skilled workers in general and providing training for young people at its respective locations also reflects the way GIZ sees itself and its role as a public-benefit enterprise.

Additional information

Key opportunities and risks for GIZ are listed under Criterion 2: Materiality. At project level, the Safeguards+Gender management system assesses potential risks. More information on this can be found under Criterion 6: Rules and processes.

Business volume 2024

GIZ’s business volume is made up of income from the public-benefit business area and the total operating performance of the company’s GIZ International Services business area, which is taxable. The majority of our work in the public-benefit business area is commissioned by the German Development Ministry (BMZ) and other German public sector clients. This business area generated income of EUR 3.7 billion in 2024, a level consistent with the 2023 figure.

International Services (InS), our taxable business area, grew again in 2024. Its total operating performance was EUR 265 million – an increase of 7 per cent compared with the previous year (2023: EUR 247 million). Within this business area, GIZ is authorised by the German Federal Government to receive commissions directly from international clients and to tender for contracts.

Anti-corruption at GIZ

Corruption is multi-faceted. At GIZ, we define it as the abuse or misuse, for personal gain, of the power conferred by public office or through private sector authorisations. This includes giving and accepting bribes, embezzlement, nepotism, fraud or kickback payments, i.e. the payment of commissions between the parties involved in a transaction. Certain conflicts of interest can also constitute a form of corruption.

At GIZ, we have an anti-corruption management system that enables us to proactively tackle the problem. The aim is to promote a corporate culture of anti-corruption that consistently raises awareness of corrupt activities and encourages all workforce members to take steps to prevent actions of this sort.

Our Code of Ethics, which sets out GIZ’s key ethical principles, clearly bans all forms of corruption. Additionally, specific rules for dealing with conflicts of interest and preventing corruption can be found in our Code of Conduct. In signing their employment contract, all members of our workforce commit to comply with the Code of Ethics and the Code of Conduct. The anti-corruption policy reflects GIZ’s policy of zero tolerance towards cases of corruption.

Our anti-corruption management is part of a work programme. Within this context, in 2024 GIZ modified and operationalised regulations ensuring a regular rotation of staff and responsibilities in areas particularly vulnerable to corruption. Our policy on dealing with conflicts of interests is also being refined in order to clearly regulate how to handle potential institutional conflicts of interest.

Analysis is conducted on an ongoing basis to determine whether we need to modify our anti-corruption management to meet the requirements of our clients and commissioning parties. Equally, the ongoing analysis looks at which requirements GIZ needs to pass on to its business partners. All contracts with service providers and consultants are subject to strict rules with a view to minimising corruption risks.

For the projects that we implement on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), we are guided by the quality criteria strategy on Anti-corruption and Integrity. We are also a corporate member of Transparency International.

Compliance management system and internal control system

Anti-corruption management is a key component of GIZ’s compliance management system, which we are expanding to ensure compliance, integrity and anti-corruption. The responsible Governance, Risk, Compliance Unit coordinates and manages the system in collaboration with all the relevant specialist units. The Unit reports annually to the Management Board and the Supervisory Board on progress made in compliance management and with the internal control system. The Risk and Compliance committee, consisting of one managing director and several departmental directors general and directors of corporate units, works to resolve overarching integrity and compliance issues and makes fundamental policy decisions.

The continuous recording of compliance, integrity and corruption risks is integrated into the standard company-wide risk management process and also includes the field structure. By analysing and assessing existing and potential risks, the need for action in this area is systematically identified and addressed as part of a risk-based compliance programme. GIZ follows up on any tip-offs about risks and where necessary adapts its internal Processes and Rules. It puts measures in place to prevent, investigate and respond to issues.

Situated below the Management Board level, GIZ’s internal control system is based on the Three Lines Model in accordance with international standards:

• First line (operational): Processes and Rules (P+R) for operational management with application of the cross-check principle and the separation of functions, monitoring by line management, internal controls
• Second line (governance): Internal control system, compliance management, risk management, controlling, corporate security, IT security, information security management, data protection management, etc.
• Third line: Auditing Unit.

The aim of the internal control system is to ensure the correct and proper use of public funds and implementation of business processes, clear and reliable financial reporting and compliance with pertinent laws, ordinances and regulations.

The compliance management system and the internal control system are designed to prevent risks, detect problematic issues at an early stage and respond appropriately to rule violations and unavoidable risks.

The correct use of financial resources is a top priority for GIZ. Procurement processes are therefore always carried out by at least two people from different organisational units. In addition, our rotation principle requires that staff in functions with a high corruption risk must change roles at least every six years. Any deviation from this rule must be justified, documented and, if relevant, risk-mitigation measures must be put in place.

Our IT systems ensure transparency, as contracts are systematically recorded and also evaluated with regard to individual contractors. We also document the approval and publication requirements. This allows us to report systematically on all procurement processes around the world. GIZ’s projects and internal systems are also subject to comprehensive external audits.

Embedded globally at all GIZ offices

GIZ has established a systematic compliance management system across its entire field structure. Special compliance teams organise and manage compliance processes in countries with a potentially increased compliance risk. Responsibility for implementing these processes rests with each country director. In order to minimise identified risks, appropriate countermeasures are introduced and their effectiveness is reviewed on a regular basis.

Raising awareness and recognising violations

Corruption is rarely recognisable at first glance. The Code of Conduct is designed to support employees in identifying and avoiding corruption risks and conflicts of interest. New members of GIZ’s workforce are sensitised from the outset to recognise situations in which there is high risk of corruption. They must successfully complete the basic online compliance training module, while there is also a compulsory module specifically for managers. All GIZ staff are required to repeat this mandatory training every three years.

Staff members, project partners, clients, commissioning parties and the general public can report potential violations of regulations or laws relating to GIZ’s work in confidence and anonymously to the compliance officers or an external ombudsperson. Alternatively, this can be done via the multilingual online whistleblower portal which is accessible worldwide. Furthermore, channels for low-threshold access to the whistleblower system are put in place by GIZ in all country offices. This access is tailored to the respective cultural and social context in an effort to reduce obstacles and make it easier to report concerns, in particular for people who do not speak any of GIZ’s official languages, who are illiterate or have no internet access. As far as possible, GIZ ensures that any justified suspicions do not have any adverse impacts on the individual lodging the report (whistleblower protection).

Performance indicator GRI SRS-205-3: Incidents of corruption

a. One confirmed incident of corruption was recorded in 2024..

b. In one incident, the perpetrator was dismissed or resigned.

c. There are no incidents in which contracts with business partners were terminated or not renewed due to violations related to corruption.

d. No public legal cases regarding corruption were brought against GIZ or its employees.

Performance indicator GRI SRS-419-1: Non-compliance with laws and regulations

No cases of non-compliance with laws and/or regulations were identified during the 2024 reporting period.