Code of Ethics
WEG’s Code of Ethics is a cross-cutting theme based on the UN’s human rights and on the company’s values and policies, ensuring the integrity of employees and stakeholders. All hierarchical levels of the company are involved, aiming at aggregating a broad and diversified vision. Additionally, WEG encourages its stakeholders to apply the guidelines of the Code of Ethics. The Code of Ethics Management Commission coordinates the process, and the Executive Board and Board of Directors approves it.
Duties of the Code of Ethics Management Commission
- Interpret the Code of Ethics in cases that are not clear in order to make its understanding uniform and avoid ambiguities in its application.
- Periodically analyze and revise, when necessary, the Code of Ethics in the light of ethical application and evolvement in the social field and within the company.
- Monitor the alignment of the application across the units of the group.
- Check and inform the direction about the application of the Code in the company.
- Deliberate on the necessary resources for the application of the Code.
WEG ethics channel
The Ethics Channel is one of the tools that reinforces the WEG Compliance Program, which represents the alignment of the company's conduct with values and principles, internal rules and what is established in society in terms of laws and customs. In a transparent and secure manner, the Ethics Channel establishes a way for direct, secure communication and treatment of information in absolute confidentiality. The channel is available to employees as well as WEG’s business partners, and it is open 24x7.
In this channel, you can:
- Clarify questions about any personal conduct or procedure in your area at the company.
- Report nonconformities.
- Check the status of the verification procedure and the final opinion on the report, complaint and suggestion made.
Investigation and disciplinary measures
All complaints and reports received are evaluated by a collegiate body appointed by the Board of Directors of WEG S.A., called the Complaint Analysis Group, which carries out the investigations under the coordination of WEG's Internal Audit Department, which has independence to carry out its activities.
For complaints involving labor relations, such as discrimination and harassment, disciplinary measures are applied, ranging from verbal warning to dismissal of the employee, depending on the severity of the occurrence.
For well-founded complaints involving other stakeholders, corrective actions are applied in accordance with the company's practices.
Periodically, senior management expresses its opinion on violations of the Code of Ethics, based on detailed reports presented by the Internal Audit with the indicators and actions taken.
WEG Integrity Program
WEG maintains constant control and monitoring activities in order to prevent and avoid illegal acts in its activities and business. Likewise, WEG has a predictive approach regarding compliance and compliance, with a permanent dissemination and training program on ethics and integrity issues.
Audit on ethics issues
WEG conducts audits on ethics issues, including anti-corruption, in all its operations, on a 3-year cycle.
Continuous qualification of employees
Training in the policy for preventing and combating corruption and other harmful acts for strategic areas
WEG provides regular training for all administrators, members of the Fiscal Council, managers and employees who can act on behalf of and authorized by WEG, who, at the end of the training, sign the acknowledgment of this policy. The training has global coverage, being conducted in Portuguese, English, Spanish, Mandarin and German.
Training of new employees in the code of ethics
Upon hiring, all new employees, including part-time staff, are trained on the topics covered in the WEG Code of Ethics. The Code of Ethics addresses issues related to ethical standards such as anti-corruption, human rights, the environment, among others. The system for controlling and monitoring ethics training provided to temporary and third-party workers is also being improved. The Code of Ethics is made available to employees, and online training is conducted, where their acknowledgment is recorded.
Competency assessment – Code of Ethics
The assessment is based on a standard document with predefined themes and questions that seek to bring impartiality to the assessment. Among other items, there are those related to the employee's responsibilities regarding compliance with standards, safety procedures and conducts directed by our Code of Ethics. The competency assessment is related to the variable remuneration of employees participating in the PWQP Program (WEG Quality and Productivity Program).
Leadership and employee development
Engagement and transparent communication
“Developing leaders and employees, strengthening skills for the business sustainability challenges.”
QPOP Program - Professional Qualification of Production Operators
The QPOP (Professional Qualification of Production Operators) program was created in 2002 with the objective of offering technical professional development opportunities to employees in production areas. This contributes to increasing the level of technical knowledge of employees who work in activities that directly affect product quality, as well as increasing employee awareness regarding the procedures that must be followed throughout the production chain.
In 2023 alone, 2,157 employees were impacted by the QPOP program.
QPSS Program - Professional Qualification Program in Six Sigma
The Six Sigma Methodology is a set of techniques and tools that aim to systematically improve processes and products, acting on compliance and reliability. Its approach is focused on customer satisfaction and the pursuit of Competitiveness, Quality, Sustainability and Technology. WEG's Six Sigma Program was launched in 2015 and is implemented across all of the company's divisions (Motors, Energy, Automation, Transformers, Paints and Digital & Systems). The Six Sigma program operates globally, with approximately 2,200 employees trained to apply the Six Sigma methodology in the Master Black Belt, Black Belt, Green Belt and Yellow Belt categories, in addition to having trained more than 1,000 managers in the Six Sigma Champion category. During this same period, more than 2,900 improvement projects were carried out, increasing the quality of products and processes, reducing waste and contributing to the sustainability of the company's business. This program has generated an accumulated revenue of approximately 38 million dollars. In addition to the financial result, the application of the methodology results in intangible gains, since it has helped to solve critical problems that impact customer satisfaction, the maintenance and increase of product sales and the acquisition of new customers. The program has scope in several WEG segments and on a global basis.
WEG Language Program
In 2023, the provision of a language course for all WEG employees was approved, with the aim of accelerating their mastery of English and Spanish in order to meet the needs of strategic and critical positions within the company. It is very important that our employees are prepared to meet the constant demand for internationalization of processes, as well as future opportunities, in line with the company's growth. This will provide professional development to employees, reduction of cultural and linguistic barriers, agility and more effective communication. This program covers all levels of the company, from managers to employees in the manufacturing areas.
WEG Leadership Academy
WEG Leadership Academy is a global platform adapted to the reality and demands of WEG leadership, with soft-skills courses and internal WEG courses, aiming to accelerate the development of WEG leaders globally through training and qualification. The WEG Leadership Academy was launched in 2023 and aims to offer a single communication channel for all WEG managers in four languages (English, Portuguese, Spanish and Mandarin) and expand training/qualification for managers in Brazil and abroad focusing on WEG culture and the reality of each operation. There are currently 2,150 connected leaders who carry out their activities at different times and environments, considering the best fit within their routines. It is understood that developed leaders impact the organization's results, through better negotiations, better planning, better team and business management, greater retention and attraction of qualified professionals.
Risk Management
WEG adopts a Risk Management Policy aimed at establishing the guidelines in order to ensure that the identification, analysis, evaluation, mitigation and monitoring of risks are carried out in accordance with the defined methodologies, assigning roles and responsibilities to the different levels of the Company, taking into account the strategic planning, processes, business models and external factors.
Risks are reviewed periodically through analysis and classification of risks into six categories: external, strategic, financial, people, compliance and governance, and operations.
The Board of Directors is aware of the mapped risks, as well as the action plans aimed at improving actions to mitigate the most relevant risks.
Climate Risk Analysis
WEG, committed to sustainability and the responsible management of its assets, conducts risk analyses based on climate scenarios to ensure business continuity. This strategic approach allows the company to develop robust adaptation plans, anticipate potential impacts, and outline actions that strengthen its resilience to climate change.
As part of this commitment, since 2024, WEG has conducted a global analysis of its locations, considering four distinct climate change scenarios, aligned with the projections of the Intergovernmental Panel on Climate Change (IPCC): SSP1-2.6, SSP2-4.5, SSP3-7.0, and SSP5-8.5. This detailed assessment allows the company to understand the physical risks associated with each scenario and make informed strategic decisions to mitigate impacts and ensure the long-term sustainability of its operations.
Information Security Management
Business Continuity Plans Related to Information Security
WEG adopts robust guidelines for the development and execution of Business Continuity Plans (BCPs), aiming to ensure the continuity of IT services that support the organization’s critical processes. This strategy encompasses the integrated implementation of technological solutions, well-defined processes, and structured organizational approaches.
Furthermore, WEG’s IT continuity plans are designed to mitigate operational risks, ensure operational resilience, and minimize impacts in disruption scenarios, such as system failures, cyberattacks, or natural disasters. The company conducts periodic testing and reviews of these strategies, aligning them with market best practices and the specific needs of its business. The entire process is conducted with a focus on information security, operational efficiency, and commitment to continuous value delivery to its clients and stakeholders.
WEG maintains constant control and monitoring activities to prevent and avoid illicit acts in its operations and business. Similarly, WEG takes a proactive approach regarding compliance, compliance, including a permanent program of dissemination and training on ethics and integrity topics.
Information Security Vulnerability Analysis
WEG implements a structured process for vulnerability management and patch application, covering systems, IT infrastructure, and microcomputer assets. This process is based on clear guidelines that direct risk analysis, define roles and responsibilities, and establish deadlines for vulnerability remediation and risk mitigation.
Additionally, WEG’s vulnerability management follows market best practices, including continuous assessments to identify potential threats and prioritization of corrective actions based on criticality and business impact. The process also involves:
- Proactive monitoring: Real-time identification of vulnerabilities using advanced security tools.
- Patch application: Regular and strategic updates to fix security flaws in systems and devices.
- Training and awareness: Capacity building for technical teams and users to reduce risks associated with human vulnerabilities.
- Audits and compliance: Ensuring alignment with regulatory standards and internal security policies.
Through this process, WEG reinforces its commitment to data protection, operational integrity, and resilience against cyber threats while preserving the reliability and efficiency of its IT systems.
Internal IT Infrastructure Audits
WEG establishes general guidelines for conducting internal audits in its controlled companies, whether directly or indirectly, ensuring compliance, transparency, and efficiency of organizational processes. Internal Audit, as a strategic corporate area, reports directly to the Board of Directors of WEG S.A., ensuring independence and impartiality in its activities.
Moreover, the internal audit process plays a crucial role in continuously assessing internal controls, including those related to IT systems and processes.
WEG’s Internal Audit also plays a key role in strengthening corporate governance, promoting an organizational culture based on ethics, transparency, and accountability. Through regular reports to the Board of Directors, the area contributes to more informed strategic decisions aligned with the company’s objectives.
Artificial Intelligence (AI) Policy
Through the Artificial Intelligence (AI) Policy, the WEG Group establishes clear guidelines to ensure the legal, ethical, and responsible use of technology.
With global coverage, the Policy:
• Emphasizes compliance with data protection laws such as LGPD, GDPR, and PIPL, prohibiting the input of personal data, private information, or confidential data into non-approved AI applications. The company ensures that sensitive data is not used to retrain AI models and maintains strict guidelines for the secure handling of user data.
• Addresses cybersecurity risks associated with AI usage, including the potential manipulation of large language models (LLMs). Implementation of security measures is mandatory, such as restricting unauthorized AI-related APIs, plugins, or software. The company conducts risk assessments for AI applications and protects systems against vulnerabilities.
• Mitigates biases in AI algorithms by ensuring training datasets are representative of diverse populations. Algorithms undergo regular reviews and audits to identify and correct biases, promoting fairness and inclusion. Ethical standards guide AI development and usage in alignment with WEG’s values of diversity, equity, and inclusion.
• Requires clear identification of AI-generated content in external communications. Content must include visible attribution, such as footnotes or labels, to ensure transparency for clients and stakeholders.
