Since July 2022, EOS has been active on the Portuguese market with its own operating company. Luís Chaves was recruited as Managing Director, bringing with him many years of experience in receivables management. “What attracted me was the project,” says Chaves, “and the opportunity to work for a company I had come to know as a trustworthy player in the market.”
Annual and Sustainability Report
Read all about the development of the EOS Group. The section on financial year 2022/23 presents an overview of key figures and business highlights. The section entitled “Our responsibility” explains how the EOS Group meets its social and ecological responsibilities.
Changing finances for the better
The EOS Group is a leading investor in receivables and real estate portfolios and an expert in processing open receivables. Our more than 6,000 employees in 24 countries practice data-driven receivables management and provide intelligent services for the benefit of our customers, partners and consumers. For more than 45 years, we have secured the cash flow of companies so they can focus on their core business. GRI 2-6
The financial year at a glance
GRI 201-1
Our financial year 2022/23
In fiscal 2022/23, the EOS Group increased its earnings and investment volume.
Our result is the team’s achievement
The 2022/23 fiscal year was marked by uncertainty as war, inflation and the energy crisis dominated economic and social life. When the fiscal year began, it was not expected that the EOS Group would generate such extraordinary earnings, according to Marwin Ramcke, Chairman of the Board of Directors: “Our employees’ many years of expertise and their commitment made this development possible. We are more than 6,000 individuals with our own experience, abilities and cultural backgrounds. As a team, we can achieve a great deal.” Success is attributed to our focus on the purchase of receivables portfolios and the continuous development of digital tools that have improved our operational performance and promoted synergies between the EOS companies.
Details on the fiscal year:
Revenue and earnings compared with previous years
Extraordinary growth reported. Compared with the previous fiscal year, EOS Consolidated greatly increased its earnings (EBITDA) and revenue in 2022/23.
Consolidated revenue by region 2022/23
Development in the different regions
With a share of 42.4 percent, Eastern Europe remains the strongest performing region of EOS Consolidated. Compared with previous year, the Eastern European companies increased their revenue by nearly 50 percent. The Western European EOS companies generated 31.0 percent of total revenue in fiscal 2022/23. Here, too, revenue climbed significantly over the previous year. The lifting of restrictive pandemic-related measures contributed to the positive result. Germany’s share is 25.9 percent even though the competitive situation remains challenging. Revenue declined slightly, but EOS invested at a high level.
EOS News
New and familiar partners, newly established business locations and a clear increase in NPL purchases. Some particularly impressive developments in the past fiscal year:
Business performance in the 2022/23 fiscal year
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Revenue by region
In EUR thousandIn fiscal 2022/23, revenue of EUR 977.1 million was 21.4 percent higher than in the previous year (EUR 804.9 million). The companies in Eastern Europe recorded the steepest climb with an increase of 47.8 percent, followed by Western Europe with an increase of 34.1 percent. Revenue in Germany declined slightly, but remained high at EUR 253.0 million. The steep decline in revenue in North America is attributed to the divestment of the operating EOS companies at the end of 2021. The revenue generated after the divestment is based on receivables portfolios acquired in previous years which were retained by the EOS Group and processed by the buyer in a fiduciary capacity. GRI 201-1
2022/23 2021/22 Changes on the previous year in % Eastern Europe 414,125 280,148 +47.8 Western Europe 302,508 225,644 +34.1 Germany 252,953 274,809 -8.0 North America 7,525 24,276 -69.0 EOS Consolidated 977,110 804,877 +21.4 -
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Consolidated income statement (summary)
In EUR thousandIn fiscal 2022/23, EOS Consolidated generated Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) in the amount of EUR 445.9 million (previous year: EUR 282.5 million). Compared with the previous year, revenue climbed by 21.4 percent or EUR 172.2 million. The decline in revenue resulting from the sale of the North American companies at the end of the previous year was outweighed by the extraordinarily high level of investments. GRI 201-1
2022/23 2021/22 Revenue 977,110 804,877 Total operating income 991,251 815,215 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) 445,943 282,453 Earnings before tax (EBT) 380,072 228,544 Net income 297,270 201,236
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Assets situation
In EUR thousandTotal assets for EOS Consolidated increased by 26.9 percent to EUR 3.0 billion compared with the previous year. The rise is attributed to the Group’s higher total investments in receivables and real estate in fiscal 2022/23. Purchased portfolios account for 79.4 percent (previous year: 75.4 percent) and real estate in inventories for 8.7 percent (previous year: 7.8 percent) of total assets. GRI 201-1
*Financial presentation
2/28/2023 in % 2/28/2022 in % Fixed assets 200,620 6.6 209,498 8.8 Purchased receivables and real estate in inventories* 2,670,136 88.0 1,989,455 83.2 Receivables 40,181 1.3 29,949 1.3 Cash and cash equivalents 66,255 2.2 105,455 4.4 Other assets 55,608 1.8 56,457 2.4 Total assets 3,032,800 100 2,390,815 100
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Equity and financing
In EUR thousandIn the past fiscal year, total financing increased by EUR 642.0 million to EUR 3.0 billion compared with previous year. The increase is essentially due to the financing of the high investments made in the past fiscal year.
The company’s equity increased to EUR 1.1 billion, due in part to retained earnings from the previous year. Despite the high investments made in the past fiscal year, the equity-to-assets ratio declined only slightly to 36.6 percent (previous year: 37.5 percent), which, relatively speaking, constitutes a high level for a financial services provider.
The EOS Group’s refinancing needs are covered by loans from banks and the parent company. Most of that financing still has short-term maturity. Compared with the previous year, debt financing increased from 74 percent to 84 percent. GRI 201-1
For accounting reasons, tables and text may contain rounding differences.
2/28/2023 in % 2/28/2022 in % Equity 1,110,654 36.6 895,726 37.5 Provisions 58,452 1.9 84,218 3.5 Liabilities with banks 132,387 4.4 92,111 3.9 Liabilities with related parties and companies 1,482,754 48.9 1,102,833 46.1 Trade payables 47,247 1.6 41,962 1.8 Other liabilities 201,306 6.6 173,966 7.3 Total financing 3,032,800 100 2,390,815 100
Once again, the expertise of EOS in the NPL market paid off in 2022/23. The Group made several investments in large portfolios. Some highlights:
Investments in debt purchases and real estate in 2022/23
EOS Consolidated significantly increased its investment volume from EUR 668.6 million to EUR 1.2 billion. The increase related to unsecured and secured debt purchases. In Western Europe, the Group more than quadrupled its investment volume to a total of EUR 612.4 million. The lifting of the pandemic-related restrictions of the previous years had a positive effect on the Western European market. For example, the transaction volume of the selling banks returned to normal. In Eastern Europe, with EUR 392.6 million in investments, EOS continued the previous year’s high investment level, largely thanks to high investments in Greece, Poland, Croatia, and Bosnia. Even though the market in Germany remained challenging with high competitive pressure, EOS doubled its investments compared with the previous year.
For accounting reasons, tables and text may contain rounding differences.
Unsecured
Secured / Real estate
Purchased receivables in 2022/23
The carrying value of the portfolios recognized at the end of the financial year was EUR 2.7 billion. The amount constitutes an increase of 34 percent or some EUR 680 million compared with previous year. The value increase is a result of the EOS Group’s high investments in the 2022/23 fiscal year. While the portfolio of unsecured receivables was still twice as high as the value of secured portfolios and real estate in the previous fiscal year, the ratio between the two evened out in the course of the past fiscal year. The companies in Western Europe recorded the highest portfolio carrying value Group-wide, followed closely by Eastern Europe and Germany.
For accounting reasons, tables and text may contain rounding differences.
Unsecured
Secured / Real estate
Our responsibility
This chapter of our first combined annual and sustainability report shows how we act sustainably and responsibly.
Foreword from our CEO
Day by day, we work to change things for the better. We are successful in business because we embrace change and take responsibility for all we do. We change things for the better for our clients and employees, but also for consumers, our industry, and society.
Sustainability is an integral part of our corporate responsibility (CR). I am especially proud that we have turned our CR strategy into action and have expanded our reporting since the launch in 2020. We took another step in 2022 when we identified key CR topics by conducting a first materiality analysis. This year for the first time, this section of our combined Annual Report and Sustainability Report is based on the standards of the Global Reporting Initiative (GRI) and the United Nations Sustainable Development Goals (SDGs). Reporting our activities in the context of these standards and goals makes our contributions even more transparent.
As a financial services provider, we consider sustainability as more than just environmental protection. Our special concerns are divided into four fields of action within our CR strategy. In this section, we explain how we meet the standards in the fields of "Responsible Collection", "Joint Progress", "Environmental Protection" and "Financial Sustainability". These four fields of action also structure this section.
I thank all colleagues who contribute daily to making EOS an economically successful business with a firm commitment to sustainability. Always intent on becoming a little bit better.
Marwin Ramcke, Chairman of the Board of Directors
GRI 2-22
Receivables management means taking responsibility
Our responsibility extends to many different areas. As an international financial services provider, we focus on social responsibility and corporate governance. We want to change things for the better. In working toward our goal, we have defined four fields of action in our corporate responsibility strategy:
Materiality is the starting point of our sustainability strategy
In collaboration with internal and external experts, EOS further developed its CR strategy and created a materiality matrix in 2022. The matrix below shows the material topics from the EOS corporate perspective (x-axis) and from the viewpoint of our external stakeholders (y-axis). It constitutes the foundation for the future direction of the EOS sustainability strategy.
Materiality matrix
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In the sustainability section of our combined Annual- and Sustainability Report, we tell our stakeholders about our most important environmental, social and governance activities during fiscal year 2022/23. The report includes the fields of action and the most important topics identified in the first materiality analysis conducted by EOS Holding GmbH with headquarters in Hamburg. The sustainability report covers the entire EOS Group* during the period from 1 March 2022 until 28 February 2023** and refers to the standards of the Global Reporting Initiative (GRI). GRI 2-1, 2-2, 2-3
*Unless indicated otherwise.
**Excluding figures from a German subsidiary and HR figures from the French EOS companies.
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Responsible Collection
- Ethical Collections by Treating Customers Fairly
- Tech-Driven Transformation & Innovation
Joint Progress
- Societal Impact trough Financial Literacy
- Diversity, Equality & Inclusion
- Talent Attraction, Development and Retention
- Local Community Engagement & Participation
- Employee Satisfaction & Well-Being
Financial Sustainability
- Digital Responsibility & Cyber Security
- Business Ethics & Safeguard Compliance
- Responsible Acquisition of Portfolios & Partnerships
- Strengthening Liquidity of Clients
- Trustworthy Stakeholder Relations
- Industry Leadership & Best Practices
Environmental Protection
- Reduction of Environmental Footprint
GRI 3-2
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The definition of our material topics
To create a framework for our sustainability reporting, we identified the sustainability topics in our first materiality analysis that are most important (i.e., “material”) to EOS. We then compiled a long list of potential key topics from status quo and benchmark analyses and included relevant international reporting standards, rules and guidelines (e.g., GRI, DNK, SDGs, SASB, UNGC, ESRS*). In a workshop with internal and external experts, we narrowed down, summarized and prioritized our material topics. We rated them in terms of relevance for our external stakeholders (y-axis) and for EOS (x-axis). In assessing the material topics for EOS, we considered the inside-out and outside-in perspective, also known as “double materiality”. This is, how industry trends or CR factors affect a company’s decision making and how a company affects society and the environment. This is known as “double materiality”. GRI 2-29, 3-1
*In putting together the long list, we used the version of the ESRS Standards from April 2022.
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The EOS Group joined the United Nations Global Compact, the world’s largest pact for corporate responsibility, in 2021. As a member, we pledge our commitment to the compact’s 10 principles on human rights, labor, environment and anti-corruption.
Each new member first must derive its own goals from the 10 principles. We did so in the past year, identifying our goals from the UN’s 17 Sustainable Development Goals (SDGs) to which we can make the most effective contribution. The SDGs we selected, along with the associated key figures and goals are important benchmarks in our corporate responsibility strategy. As required by the Compact, we will report on our progress once a year in our “Communication on Progress” (COP). GRI 2-23
We focus on the following SDGs:Parts of individual initiatives and measures contribute to other SDGs as well and will be included in our reports where appropriate.
Responsible Collection
EOS stands for respectful and fair treatment of consumers and for solution-driven, sustained debt relief.
Ethical Collections by Treating Customers Fairly
EOS stands for fair debt relief for consumers. In keeping with our claim, “Changing finances for the better”, we support defaulting payers become debt-free. We develop fair payment plans that are economically feasible for everyone involved and also find solutions for consumers whose personal circumstances present special challenges.
Respectful communication is key to our approach. This summer we will roll out an international, Group-wide policy that standardizes our respectful and ethical treatment of defaulting consumers. The policy obliges us to use easy-to-understand language, to speak tactfully and to assume responsibility for our words and actions.
With technological innovations, we simplify the payment process for consumers. We provide service portals and chatbots that let consumers manage their payments independently, without having to contact us directly. However, consumers who prefer personal contact can turn to our qualified staff members for suitable debt relief options. To further improve the user experience, we offer consumers their personally preferred payment methods suggested by our data analysis. We continuously improve our services on the basis of feedback, which is collected through surveys, for example.
Fair debt collection in figures
Tech-driven Transformation & Innovation
Technological progress, an important driver for EOS, prepares us for the future. We use data analyses and artificial intelligence to change the finances of clients and of defaulting consumers for the better. Personalized payment plans and intelligent chatbots help in this process. Our goal is to offer clients and consumers Group-wide a fully digital process tailored to their needs.
In 2022 the Data & Analytics Hub (DAH) reorganized. It bundles the national and international analytics competence of EOS. “In the Data & Analytics Hub, our colleagues link data and AI support to make recommendations or decisions,” says DAH Director Jakob Spitzer. Defaulting consumers benefit, for instance, by being approached in the way best suited to them personally. So that analyses can be made on an even larger scale in the Cloud, the data pipelines that join the Kollecto+ debt collection software to the Hub are being expanded. Learn more about Kollecto+ here.
Joint Progress
We take on social responsibility within the EOS Group by promoting empowerment, diversity and inclusion, and in society through our own education initiatives.
Social Impact through Financial Literacy
It is our goal to strengthen financial literacy in society as a way to counteract excessive private debt.
The study “Europeans in Financial Trouble?” EOS Consumer Study 2023 clearly shows that young people between the ages of 18 and 34 would like to receive more financial education and instruction on how to deal with money properly. Nearly one in 10 in this age group is convinced that lack of financial knowledge is one reason people take on new debt.
As a way to teach future generations about finances, the finlit foundation was launched by staff members of the EOS Group in 2019. The non-profit organization shows children and adolescents how to handle money properly and thus helps them to avoid excessive personal debt. ManoMoneta, finlit’s first education initiative, targets children aged 9 to 13, is active now in schools in several European countries. “OhMoney”, a second initiative started recently in Germany is aimed at adolescents between 13 and 17 years of age. The idea is to provide students and their teachers with creative, engaging content on financial topics relevant to their everyday lives and to guide the students on their way to financial independence.
At the same time, e.g. EOS in Romania, Slovenia and Croatia became actively involved in other initiatives for adolescents and adults that include course offerings in schools, teaching videos and participation in the Winter Finance School for teenagers. GRI 413-1
Our financial education in figures
Diversity, Equality & Inclusion
As an international group, EOS promotes diversity in its ranks. We are pleased, therefore, when employees establish and become actively involved in communities. In the Diversity & Inclusion Board, we have a structural framework for coordinating initiatives and providing strategic direction for diversity.
We think it is important to convey knowledge about diversity and inclusion. In April 2023 we launched “Breaking Down Barriers & Unconscious Biases: A learning path on Diversity & Inclusion” for the EOS Group on the Masterplan online platform. It contains videos to teach employees the significance of diversity and inclusion in the workplace and to help them develop strategies for an integrative, welcoming and successful work environment. The course is open to all employees and is compulsory for managers and HR staff. Workshops will be added to the online offering shortly.
More inclusion through the Transidentity Guide
The community Queer@EOS has published a Transidentity Guide in collaboration with Otto’s queer network MORE*. It offers support to employees during and after their transition. For example, trans colleagues can change their name within the EOS group with little effort. The guide serves as a source of information for colleagues and managers looking for answers to trans gender-related questions.
Gender equality at EOS
Talent Attraction: Development and Retention
We want to position ourselves as an attractive employer, retain committed employees for the long term and offer them growth opportunities. To that end, the EOS Group launched numerous offerings and initiatives. One example is the international NXT talent management program in which 92 talented employees from 17 countries participate, receive targeted support and network within the group.
EOS is particularly interested in empowering employees and creating a positive and collaborative work environment for them. The Group-wide Masterplan learning platform gives employees access to a large selection of training material that they can put together according to their personal needs. Colleagues have convenient access to all offerings from home offices and can learn independently anywhere. GRI 404-2
Empowerment in figures
Financial Sustainability
EOS advocates strong, binding industry standards and responsibility guidelines. We apply strict criteria when we price portfolio purchases and make other investments.
Digital Responsibility & Cyber Security
Data usage is fundamental for the business of the EOS Group. We handle data responsibly and continuously improve our processes and systems in order to protect it. Some 90 employees Group-wide work in data protection and information security.
Monitoring tools allow us to detect attacks early and stop them. Right now, an even more extensive international protection system is being set up as part of the new Iron EOS program in which experts and tools ensure the safety of all national subsidiaries. “Iron EOS will put us in a position to react quickly throughout the Group,” says Gunnar Woitack, Chief Information Security Officer.
Data security in figures
Business Ethics & Safeguard Compliance
The EOS Group advocates strong, binding industry standards and responsible guidelines for the debt collection industry. To help define these standards, we are actively involved in several European debt collection associations and in numerous initiatives. Read more about our association work here. GRI 2-28
To emphasize that we take our corporate responsibility seriously, we joined the United Nations Global Compact, which encourages companies worldwide to pursue and support sustainable and responsible business practices. As a member, we support the 10 UN principles concerning human rights, labor, anti-corruption and the environment. GRI 2-23
To counteract violations or undesirable developments, the EOS Group operates a platform that offers whistleblowers a protected space and is integrated in the mechanism of the Otto Group. Here, employees, as well as suppliers, service providers or clients can report compliance violations at EOS and the Otto Group. The platform helps us make improvements and eliminate grievances. GRI 2-25, 2-26
Our Code of Conduct: Clear rules for fairness toward one other
With our Code of Conduct we create mandatory rules for our daily actions. The defined principles for responsible business conduct are a reliable guidepost for our employees, clients and partners, and are accessible to everyone on the websites of the EOS companies. The Code of Conduct is developed continuously. It is special because it is close to those for whom it was created. Starting in summer 2023, we will offer employees learning units that cover the Code of Conduct in greater depth. GRI 2-23, 2-24
Compliance in figures
Responsible Acquisition of Portfolios & Partnerships
The business with non-performing loans requires a large measure of responsibility. Therefore, EOS applies strict, defined criteria when making decisions about taking on partners and clients.
One example is our cooperation with the Worldbank subsidiary International Finance Corporation (IFC), the largest global development bank. Within three years in conjunction with the bank, EOS will invest more than EUR 100 million in non-performing loans and real estate in Eastern Europe in compliance with ESG (Environmental, Social and Governance) standards.
Additionally, we make sure our pricing is sustainable and satisfies the business concerns and ethical standards of all parties. As part of a family business, the Otto Group, we focus on the long term and carefully assess all risks.
We choose our business partners according to defined criteria too and use our industry blacklist for that purpose.
As standard practice, we check how our partners and companies deal with human rights and issues such as money laundering, corruption and other criminal acts. We also make sure they comply with all sanction lists. Moreover, we do not work with companies engaged in pornography or prostitution, online gambling, subscription scams or untrustworthy microlending.
To ensure fair dealings with and by suppliers, EOS is currently working on a Code of Conduct for Service Providers that contains SDGs and regulations from the Supply Chain Due Diligence Act. GRI 2-23
We are guided by high standards in our own actions and expect our partners in the cross-border business to uphold them as well. To this end we offer training right at the beginning of our collaboration and visit our partners on site during the onboarding process to get a clear picture of their operations.
Environmental Protection
As a strong part of the Otto Group, EOS supports the Group’s climate protection strategy that pursues the Paris Agreement goal of limiting global warming to 1.5-degree Celcius. Together we work on implementing targeted measures.
Reduction of Environmental Footprint
Science-based target
Together with the Otto Group, EOS is working on reducing emissions to net zero in the long run. The Otto Group is currently developing a science-based climate goal (based on the Science Based Targets Initiative, SBTi). The joint climate protection strategy is to fully comply with the 1.5-degree Celsius goal of the Paris Agreement. Our original goal of climate neutrality in our own core processes by 2030 is being considered in the development of the strategy and will be part of the future SBT.
Projects for the environment
In cooperation with the carbon offset provider atmosfair, EOS has offset its CO2 emissions arising from business trips since 2021. EOS thus supports the climate protection project “Small Biogas Plants in Nepal,” which supplies households in rural Nepal with eco-friendly energy. The project has been approved by the Clean Development Mechanism (CDM) of the United Nations Framework Convention on Climate Change (UNFCCC) and by the Gold Standard for the Global Goals of the Swiss Gold Standard Foundation.
As a contribution to climate protection, EOS planted trees in 2022. In a Group-wide campaign, employees were asked to report about their private engagement for sustainability. The EOS Group thanked them by planting 500 native species trees together with the Bergwaldprojekt e.V. Another tree planting campaign is being planned for the coming fiscal year.
In its own initiative “Planton des arbres,” EOS France plants trees every three months. One tree is planted for each new hire in the quarter and one for each year of service for employees celebrating anniversaries. Last year EOS France planted more than 200 trees.
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Sustainability is a top priority for EOS. We have set the goal of integrating sustainability management and implementing related measures throughout the company. Our CEO has overall responsibility for all sustainability matters in the EOS Group. The Corporate Development (CD) department assumes operational responsibility for implementation. Semi-annually, CD reports to the Board on all sustainability-related activities and progress toward our goals.
The CD team functions as an interface within the company and works closely with many departments (e.g., Corporate Compliance and Group HR) and national subsidiaries. Their joint efforts generated the first materiality analysis that we use as the framework for our sustainability strategy. With our aim to become better every day, we continuously develop strategically relevant Key Performance Indicators, initiatives and measures, which are then approved by our Board. GRI 2-12, 2-13, 2-17
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GRI Content Index Sustainability Report 2022/23
Statement of use
EOS has reported the information cited in this GRI content index for the period 1 March 2022 to 28 February 2023, with reference to the GRI Standards.GRI 1 used
GRI 1: Foundation 2021GRI
Content
2-1 Organizational details
EOS Holding GmbH is a 100% subsidiary of the Otto GmbH & Co. KG with headquarters in Hamburg, Germany.
More information: About this section
More information: Details on the fiscal year2-2 Entities included in the organization’s sustainability reporting
Please see: About this section
2-3 Reporting period, frequency and contact point
The combined Annual Report & Sustainability Report of the EOS Group covers the fiscal year 2022/23 from 1 March 2022 to 28 February 2023 and will be published annually from now on. The report was published in July 2023.
More information: About this section
More information: Changing finances for the betterFor contact details please see our Corporate Responsibility section on our company website.
2-6 Activities, value chain and other business relationships
Please see: Changing finances for the better
2-7 Employees
Please see: HR-Table in the sustainability section
The figures are presented in headcount and compiled as of the end of the business year (28 February) unless otherwise stated.
2-8 Workers who are not employees
Please see: HR-Table in the sustainability section
Common types of work performed by these workers include administrative tasks, IT support and marketing services.
The figure is presented in headcount and compiled as of the end of the business year (28 February).
2-9 Governance structures and composition
Please see: Interview with the EOS Board
2-12 Role of the highest governance body in overseeing the management of impacts
More information: Our sustainability management
2-13 Delegation of responsibility for managing impacts
More information: Our sustainability management
2-14 Role of the highest governance body in sustainability reporting
The Board of Directors has reviewed and approved the information in this report, including the material issues discovered in the materiality assessment.
2-15 Conflicts of interest
The issue of conflicts of interests is addressed in the Code of Conduct, which is publicly available on the company website and within this report.
More information: Our Code of Conduct
2-17 Collective knowledge of the highest governance body
Please see: Our sustainability management
2-22 Statement on sustainability development strategy
Please see: Foreword from our CEO
2-23 Policy commitments
At EOS we have multiple policies regarding responsible business conduct, including our Code of Conduct and our policy regarding Ethical Debtor Management, all of which are approved by our board of directors. EOS is a signatory to the UN Global Compact (UNGC). We follow the framework for implementation to monitor and enforce universal principles in the areas of human rights, labor, the environment, and anti-corruption as laid out in our public Code of Conduct. Our conduct is based on integrity and compliance with laws, regulations and the Universal Declaration of Human Rights. In following the tradition of our parent company, the Otto Group, we are committed to take action against any kind of human rights violations. This includes our self-imposed requirement to work only with partners and clients who pass our business partner checks and in places with no indications of human rights violations. Furthermore, we are committed to fair treatment of our stakeholders, especially defaulted payers.
In addition, please see: Our Code of Conduct: Clear rules for fairness toward one other
and Global responsibility: The UN Global Compact as well as Business Ethics & Safeguard Compliance and Responsible Acquisition of Portfolios & Partnerships2-24 Embedding policy commitments
In order to ensure coordinated and targeted action within the EOS Group, we have issued guidelines for all employees. The guidelines contain binding framework requirements for a defined scope. They are based on applicable laws, corporate principles and strategic objectives.
Group-wide guidelines are drawn up by departments with functional responsibility. Adherence to the guidelines and group requirements is monitored by the Compliance Department. Each group guideline must be approved and signed by the EOS Board. In addition, acknowledgement of all managing directors within the EOS Group must be obtained and documented. The group-wide compliance network communicates the policy throughout the organization and provides training on its application.
The group-wide guidelines of our parent company Otto Group also apply to the EOS Group. These guidelines are directly applicable and require only acknowledgement of the managing directors before they are communicated to the organization.
Please refer to Our Code of Conduct: Clear rules for fairness toward one other
2-25 Processes to remediate negative impacts
We at EOS have formulated a clear commitment in the Code of Conduct to ensure compliance and to address all grievances we receive through numerous channels, including our own group-wide whistleblowing hotline. We continuously work on the remediation of negative impacts by taking action wherever necessary. Therefore, we have development a structured process to handle grievances and any report received.
We take confidentiality seriously by treating the reports received and the identity of persons providing information with the highest discretion. In every case, we document the correct processing of all reports received.
Our whistleblowing portal is publicly available through every local company website. When submitting a report, the whistleblower can decide whether to provide their clear name and whether the report should be submitted to EOS and the Otto Group jointly or to the Otto Group only.
The whistleblower is able to set-up a PostBox on the platform so we can provide prompt feedback and interact with the person while ensuring anonymity. If no PostBox is set up, no feedback and inquiry can be made directly.
After receiving the report, we apply clear criteria (severity, complexity, functional level) and determine the compliance relevance on a case-by-case basis. Further, we decide whether a report can be processed by the local compliance organization and whether local clarification work must be carried out directly by the central compliance organization.
We ensure that compliant-relevant issues are handled carefully and result in the implementation of remediation plans as needed. In the case of serious allegations, an ad-hoc report is sent to the CEO and the EOS Group management member responsible for the national company and to the Otto Group. In the case of minor offenses, the cases are handled by the Compliance Organization. The Executive Board is informed as part of the consolidated regular reporting.In addition, please see Business Ethics & Safeguard Compliance
2-26 Mechanisms for seeking advice and raising concerns
It is in the interest of all of us to safeguard the reputation of EOS and to prevent compliance issues from arising. Therefore, we are committed to fair and responsible business conduct and have formulated overarching guidelines in our Code of Conduct. To ensure that individuals are able to raise concerns about our business conduct, we have published the access to our whistleblowing system on every company website and encourage not only employees, but also business partners and customers to report any violations of our business conduct.
We take reports about violations of compliance and business conduct seriously, investigate them and take appropriate measures - also beyond our company. Only if we know about infringements can we act to prevent future risks and to ensure the compliance with our standards.
Furthermore, we enable our business partners to implement our organizational policies and practices for responsible business conduct by publishing the Code of Conduct on our company website and providing additional guidance. By establishing business relations with EOS, our suppliers commit themselves to compliance with laws and our standards.In addition, please refer to Business Ethics & Safeguard Compliance
2-28 Membership associations
For the list of membership associations, please see the final version of the sustainability section Association work for high standards.
2-29 Approach to stakeholder engagement
Please see: Materiality analysis
2-30 Collective bargaining agreements
Share of employees covered by collective bargaining agreements as of 28 February 2022/23: 40%
The above-mentioned figure refers to agreements between employee representatives and EOS. For all other employees, there are individual agreements with the employer.
3-1 Process to determine material topics
Please see: Materiality analysis
3-2 List of material topics
Please see: Our material topics
201-1 Direct economic value generated and distributed
Please see: The financial year at a glance
205-1 Operations assessed for risks related to corruption
100% of EOS operations are assessed for risks related to corruption.
More information: Compliance in figures
205-2 Communication and training about anti-corruption policies and procedures
100% of employees had direct access to the Code of Conduct or Anti-Corruption policies during the reporting period 2022/23.
More information: Compliance in figures
205-3 Confirmed incidents of corruption and actions taken
Confirmed incidents of corruption: 2020/21: 0; 2021/22: 0; 2022/23: 0.
More information: Compliance in figures
401-1 New employee hires and employee turnover
Please see: HR-Table in the sustainability section
401-3 Parental leave
Please see: HR-Table in the sustainability section
Please note: The figure contains multiple entries for absences spanning more than one fiscal year.
404-1 Average hours of training per year per employee
Average hours of training per employee: 2020/21: 20.0; 2021/22: 25.5; 2022/23: 31.2.
More information: Empowerment in figures
404-2 Programs for upgrading employee skills and transition assistance programs
Please see: Empowerment in figures
405-1 Diversity of governance bodies and employees
Please see: HR-Table in the sustainability section
Please note: Gender as indicated by the employees themselves. In the reporting year, fewer than five (5) employees did not assign themselves to either of the two binary genders and therefore are not shown for data protection reasons.
Please note: Management is defined as staff with responsibility for leading people (including call center supervisors, team leaders, line managers, etc.)
413-1 Operations with local community engagement, impact assessments, and development programs
Please see: Social Impact through Financial Literacy
418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data
Requests received by data protection supervisory authorities following debtor complaints 2022/23: 82; of those substantiated: 0.
More information: Data security in figures
Reports as PDF for download
Download the summary PDFs here.
As of July 2023
Reporting period: March 1, 2022 to February 28, 2023