GRI Content Index

Bertelsmann SE & Co. KGaA

Bertelsmann is a media, services, and education company that operates in about 50 countries around the world. It includes the entertainment group RTL Group, the trade book publisher Penguin Random House, the magazine publisher Gruner + Jahr¹⁾, the music company BMG, the service provider Arvato, the Bertelsmann Printing Group, the Bertelsmann Education Group, and Bertelsmann Investments, an international network of funds. The company has 145,000 employees and generated revenues of €18.7 billion in the 2021 financial year. Bertelsmann stands for creativity and entrepreneurship. This combination promotes first-class media content and innovative service solutions that inspire customers around the world.

Media: Bertelsmann’s media businesses are based on the production and acquisition of high-quality information and entertainment content – resulting in audiovisual formats, books, magazines, music products, or digital offerings. With the exception of books and music, these products contain aside from editorial content advertising – an additional source of revenue beyond the revenues from sales and distribution. All these products are distributed physically or digitally, directly or through service providers. Since media businesses live by the diversity of the content produced and distributed, good networks of creative talent and content producers are a key success factor.

Services: Companies from a wide variety of industries rely on the portfolio of solutions offered by Bertelsmann’s services business – from telecommunication providers and energy providers to banks and insurance companies, as well as e-commerce, IT, and Internet providers. The core of this business comprises services that Bertelsmann delivers to the end customers of its clients (“B2B2C services”). Typical service offerings include supply chain solutions (SCS), financial services, and IT services. These services combine a variety of resources: staff resources, technology, and the use of natural resources in the form of energy and materials. While hardware and standard software are sourced from third-party suppliers, software solutions for specialized applications are also developed in-house. The services business also includes the listed customer experience company Majorel. In its print business, Bertelsmann processes materials such as paper and ink to produce media and advertising products for business customers – typically advertising flyers, books, catalogs, magazines, and brochures – using gravure, offset, and digital printing presses by third-party manufacturers. The most important raw material used in the CD, DVD, and Blu-ray replication is polycarbonate. In addition, various digital marketing services are offered, such as data-driven multichannel marketing.

Education: With its digital learning and service offerings focusing on healthcare and university education, Bertelsmann is shaping contemporary, work-related learning. The business models in its education business are based primarily on the combined deployment of highly qualified employees and innovative technology.

Bertelsmann does not offer products or services that are prohibited by law.

More information on brands: see GRI 102-7  .

Corporate Profile 

Bertelsmann Annual Report 2021, pp. 5-6. 

1) As of January 1, 2022, Gruner + Jahr is no longer reported as an independent corporate division. Since then, the publishing activities are part of the RTL Group division. Gruner + Jahr’s remaining activities are assigned to the Bertelsmann Investments division. This does not affect the reported figures in the GRI Report 2021.

Gütersloh, Germany

Bertelsmann operates in the core business fields of media, services, and education in around 50 countries worldwide.

More information on the core markets: see GRI 102-6  .

Bertelsmann SE & Co. KGaA is a capital market-oriented but unlisted company limited by shares.

Shareholder Structure 

Bertelsmann Annual Report 2021, p. 6. 

The geographic core markets are Western Europe – in particular, Germany, France, the United Kingdom – and the United States. In addition, Bertelsmann is strengthening its involvement in growth markets such as Brazil, India, and China.

More information on the Group’s core business fields and customers: see GRI 102-2  .

The company has 145,000 employees and generated revenues of €18.7 billion in the 2021 financial year.

RTL Group is one of the leading European television groups in the broadcasting, content and digital business, with interests in 67 television channels, 10 streaming platforms, 39 radio stations, global content production companies, as well as digital video networks.

Penguin Random House is, based on revenue, the world’s largest trade book publisher, with more than 300 imprints across six continents. Each year, Penguin Random House publishes more than 16,000 new titles and sells more than 700 million print books, e-books, and audiobooks.

Gruner + Jahr¹⁾ is a premium magazine publisher whose portfolio includes established brands such as “Stern,” “Brigitte,” and “Geo”; digital products in all publishing segments; and products and licenses, such as the “Schöner Wohnen” collection.

BMG is an international music company with 19 offices in 12 core music markets, now representing more than three million titles and recordings.

Arvato is an international service provider that develops and implements custom-made solutions for all kinds of business processes, for customers in a wide range of sectors in more than 40 countries. These include supply chain solutions (SCS), financial services, and IT services. The services business also includes the listed customer experience company Majorel.

Bertelsmann Printing Group unites Bertelsmann’s printing activities. They include all the Group’s gravure, offset, and book printing companies in Germany, the United Kingdom, and the United States.

Bertelsmann Education Group comprises Bertelsmann’s education activities. The digital education and service offerings are primarily in the healthcare sector, in the field of in-company training and development, as well as university education.

Bertelsmann Investments comprises Bertelsmann’s global start-up investments. The activities are focused on the strategic growth markets of Brazil, China, India, and the United States.

Revenues by division, region, and revenue stream: see GRI 201-1  .

Bertelsmann’s Corporate Divisions 

Bertelsmann Annual Report 2021, pp. 5-6. 

1) As of January 1, 2022, Gruner + Jahr is no longer reported as an independent corporate division. Since then, the publishing activities are part of the RTL Group division. Gruner + Jahr’s remaining activities are assigned to the Bertelsmann Investments division. This does not affect the reported figures in the GRI Report 2021.

Employees by division

Basis: employee headcount on permanent and temporary contracts, excluding trainees, as of December 31.

Employees by region

Basis: employee headcount on permanent and temporary contracts, excluding trainees, as of December 31.

Employees by employment period

in percent

Basis: employee headcount on permanent and temporary contracts, excluding trainees, as of December 31.

Rounding differences may occur.

Employees by employment period and region

in percent

Basis: employee headcount on permanent and temporary contracts, excluding trainees, as of December 31.

Rounding differences may occur.

Full- and part-time employees in Germany

in percent

Basis: employee headcount on permanent and temporary contracts, excluding trainees, as of December 31.

Information on external employees: see GRI 401  .

Bertelsmann has widely ramified supply chains with only a few main suppliers, including paper and energy suppliers. Most of the services purchased are creative in nature or other services rendered by humans. Bertelsmann is aware that its responsibility for human rights also goes beyond its own business operations. Respect for human rights within supply chains is explicitly stipulated by the Bertelsmann Code of Conduct and the Supplier Code of Conduct. This includes, e.g., the reaffirmation of the right to freedom of association and collective bargaining, the prohibition of child labor, and forced or compulsory labor.

More information on value creation: see GRI 102-2  .

More information on paper procurement: see GRI 301  .

More information on respect for human rights: see GRI 407  , 408  , 409  .

RTL Group

RTL Group saw various adjustments to its portfolio. In April 2021, RTL Group sold the interest held in its subsidiary SpotX to the U.S. ad-tech company Magnite. In July 2021, RTL Deutschland acquired the remaining 50 percent of the shares in Super RTL (RTL Disney Fernsehen GmbH & Co. KG). RTL Group’s shareholding in Super RTL is now 100 percent. In August 2021, the takeover of Gruner + Jahr’s German magazine businesses and brands by RTL Deutschland was announced. The transaction closed on January 1, 2022. As of the beginning of the 2022 financial year, Gruner + Jahr is no longer reported as an independent corporate division. Since then, the publishing activities are part of the RTL Group division. Gruner + Jahr’s remaining activities are henceforth assigned to the Bertelsmann Investments division. This does not affect the reported figures in the GRI Report 2021. In September 2021, Fremantle, RTL Group’s production business, sold its stake in the mobile videogames company Ludia Inc. At the end of March 2022, the sale of RTL Belgium to the Belgian media companies DPG Media and Groupe Rossel was completed, and on June 1, 2022 the transaction to sell RTL Croatia to Central European Media Enterprises (CME) was closed. RTL Group also initiated further consolidation steps, which are still subject to approval by the relevant authorities. These include the announced mergers of Groupe TF1 and Groupe M6 in France and of RTL Nederland and Talpa Network in the Netherlands.

Gruner + Jahr

Effective May 31, 2021, Gruner + Jahr sold its interest held in its French subsidiary Prisma Media to the French media group Vivendi.

Bertelsmann Education Group

In early August 2021, Bertelsmann completed the acquisition of shares in the Brazilian education company Afya, thereby further expanding its global education business. In May 2022, Bertelsmann acquired a majority of the voting rights in Afya through an increase in its stake. The Nasdaq-listed education company has been fully consolidated since then and is assigned to the Bertelsmann Education Group division.

Arvato

In early September 2021, the global customer experience company Majorel announced its intention to enter the capital market through a private placement. The company’s shares were traded on Euronext Amsterdam for the first time on September 24, 2021. Following the private placement of some of its shares, Bertelsmann holds almost 40 percent of Majorel shares. At the end of June 2022, Majorel and Sitel Group and their major shareholders, including Bertelsmann, reached an agreement on non-binding key terms for a proposed merger of the two companies. It is still subject to regulatory approvals. Following the proposed merger of Majorel and Sitel Group, Bertelsmann will hold a stake of around 17 percent in the combined company and will accordingly no longer fully consolidate Majorel.

Penguin Random House

Penguin Random House’s acquisition of the book publisher Simon & Schuster from the media company Paramount Global (formerly ViacomCBS), which was announced in November 2020, is still pending approval by the antitrust authorities. On November 2, 2021, the Department of Justice filed a suit in the U.S. District Court in Washington D.C. to block the transaction, citing concerns about monopsony relating to the acquisition of author rights. Bertelsmann has assigned experienced trial lawyers and rejects the Department of Justice's grounds for prohibition as unfounded. No circumstances have occurred up to the end of the period covered by the half-year financial statements that would lead to a change in this assessment.

Bertelsmann Annual Report 2021, pp. 11-12. 

As a global company, Bertelsmann is exposed to a large number of risks, including legal and regulatory risks. The purpose of the Bertelsmann risk management system (RMS) is the early identification, evaluation of, as well as response to, internal and external risks. The internal control system (ICS), an integral component of the RMS, monitors the effectiveness of the risk response measures that have been implemented. The aim of the RMS is to identify, at an early stage, material risks to the Group so that risk response measures can be taken and controls implemented. Risks are possible future developments or events that could result in a negative deviation from the outlook or objectives for Bertelsmann. In addition, risks can negatively affect the achievement of the Group’s strategic, operational, reporting and compliance-related objectives, and its reputation.

The risk management process is based on the internationally accepted frameworks of the Committee of Sponsoring Organizations of the Treadway Commission (COSO Enterprise Risk Management – Integrated Framework and Internal Control – Integrated Framework, respectively) and is organized in the subprocesses of identification, assessment, response, control, communication, and monitoring. A major element of risk identification is a risk inventory that lists significant risks year by year, from the profit-center level upward. These risks are aggregated step by step at the division and Group levels. This ensures that risks are registered at the point of their impact. The risks are compared to risk response and control measures to determine the net risk position. Both one- and three-year risk assessment horizons are applied to enable the timely implementation of risk response measures. Risk assessment is the product of the estimated negative impact on Group free cash flow should the risk occur and the estimated probability of occurrence. Risk monitoring is conducted by the Group management on an ongoing basis. The RMS, along with its component ICS, is constantly undergoing further development and is integrated into ongoing reporting to the Bertelsmann Executive Board and Supervisory Board. Corporate Risk Management Committee meetings are convened at regular intervals to ensure compliance with statutory and internal requirements.

One of the ten principles of the United Nations (UN) Global Compact, which Bertelsmann has supported as a participant since 2008, is decisive action against corruption. By reporting in accordance with the GRI Standards, Bertelsmann also fulfills its obligation to state, in an annual Communication on Progress  , what anti-corruption measures were taken.

More information on Bertelsmann’s precautionary approach: see GRI 102-15  , 102-17  , 205  , 206  .

Bertelsmann Annual Report 2021, p. 32. 

At the Group level, Bertelsmann supports the following external initiatives and their principles. In addition, Bertelsmann companies are involved in other external initiatives at the local level.

• UN Global Compact: Bertelsmann has been a participant (signatory option) in the UN Global Compact since 2008.

• UN Sustainable Development Goals (SDGs): As a participant in the UN Global Compact, Bertelsmann supports the SDGs adopted by the United Nations in 2015.

• UN Guiding Principles on Business and Human Rights: Bertelsmann is committed to the Principles of the Universal Declaration of Human Rights and the Guiding Principles on Business and Human Rights of the United Nations.

• UN Standards of Conduct for Business on LGBTIQ+ (UN “Free & Equal”): Bertelsmann has been a supporter of the UN “Free & Equal” Standards since 2021. The standards are an initiative of the United Nations to protect the rights of the LGBTIQ+ community in the field of work.

• OECD Guidelines for Multinational Enterprises: Bertelsmann largely follows the OECD Guidelines for Multinational Enterprises.

• International Labor Organization (ILO): Bertelsmann complies with the ILO Core Labor Standards.

• Global Reporting Initiative (GRI): Since 2011, Bertelsmann has based its Corporate Responsibility reporting on the currently valid international reporting framework issued by the GRI. The Group has reported in accordance with the GRI Standards since 2017 (core option).

• Committee of Sponsoring Organizations of the Treadway Commission (COSO): The risk management process is based on the internationally accepted COSO frameworks.

• German Corporate Governance Code (“Code”): The recommendations and suggestions contained in the Code, as amended on December 16, 2019, that entered into force on March 20, 2020, serve as guidelines for Bertelsmann.

In addition, Bertelsmann participates in relevant CR ratings and rankings, in which its management of non-financial matters is evaluated by third parties. In 2021, the company achieved Gold status in the EcoVadis CR rating, and scored a B (“Above Sector Average”) in the CDP Climate Change rating.

CR Ratings and Rankings 

See Chairman's Foreword  .

The Bertelsmann Essentials  describe the company’s sense of purpose, common objectives, and core values. The values of creativity and entrepreneurship are an integral part of everyday action at Bertelsmann. Through their interaction, they reinforce each other and thus form the cornerstones of Bertelsmann’s corporate culture, which relies on participation and partnership. The Bertelsmann Essentials are a prerequisite for a corporate culture in which employees, management, and shareholders work together in a successful, respectful, and trusting manner. In the spirit of the Essentials, Bertelsmann is mindful of the impact it has on employees, society, the business environment, and the natural environment and seeks to make a positive difference.

The revised Bertelsmann Code of Conduct  communicated in 2021 is a globally binding guideline for all employees that defines standards for ethical and lawful conduct within the company and toward business partners and the public. Everyone in the company – employees, the Executive Board, and Supervisory Board – is obliged to adhere to the principles stipulated in it. The Code of Conduct is not only a guide to appropriate decision-making, but also provides information about the options for seeking advice in the company and for confidentially and securely expressing concerns about potential misconduct.

In addition, the Bertelsmann Supplier Code of Conduct  obligates business partners that work for, with, or on behalf of Bertelsmann to adhere to minimum compliance and ethics standards set out in the Bertelsmann Code of Conduct. Bertelsmann also requires its business partners to pass these minimum requirements along their own supply chains to any third parties (e.g., subcontractors) they may use to fulfill their contractual obligations with Bertelsmann. In the event of violations of the Supplier Code of Conduct, Bertelsmann reserves the right to make appropriate responses corresponding to the severity of the violation, which may include contract termination.

The pursuit of responsible corporate governance is part of the Bertelsmann identity and an important element of its corporate culture. Bertelsmann SE & Co. KGaA is a capital market-oriented but unlisted company. The corporate governance of Bertelsmann SE & Co. KGaA largely follows the recommendations and suggestions contained in the German Corporate Governance Code (“Code”). Due to Bertelsmann’s specific shareholder structure, the company essentially deviates from recommendations and suggestions of the Code that are primarily aimed at publicly traded companies with a larger group of shareholders. Bertelsmann is not required to issue a declaration pursuant to Section 161 of the German Stock Corporation Act (“Aktiengesetz,” AktG), stating that it complies with the recommendations of the Code.

Statutory bodies of the company

The statutory bodies of Bertelsmann SE & Co. KGaA are the General Meeting, the Supervisory Board, and Bertelsmann Management SE as the general partner. Bertelsmann SE & Co. KGaA and Bertelsmann Management SE each have their own Supervisory Boards.

Tasks and decision-making processes

The Supervisory Board of Bertelsmann SE & Co. KGaA oversees the management of the business by the Bertelsmann Management SE and uses its extensive information and control rights for this purpose. In addition, the Supervisory Boards advise the Executive Board on strategic matters and significant transactions. The Executive and Supervisory Boards work in close, trusting cooperation, and are able to reconcile the demands of effective corporate governance with the need for rapid decision-making processes. The members of the Executive and Supervisory Boards are obliged to serve the company’s best interests in their work. The Bertelsmann SE & Co. KGaA and Bertelsmann Management SE shareholders exercise their rights and vote at the respective General Meetings.

The Supervisory Board of Bertelsmann Management SE & Co. KGaA has formed an Audit and Finance Committee and a Working Group of Employee and Management Representatives. The tasks of the Supervisory Board of Bertelsmann Management SE complement the tasks of the Supervisory Board of Bertelsmann SE & Co. KGaA. In the former, a Personnel Committee and a Program Committee have been set up. The Audit and Finance Committee of the Supervisory Board of Bertelsmann SE & Co. KGaA addresses, among other things, the financial reporting and the financial reporting process and monitors the effectiveness of the risk management system, the internal control system, and the internal auditing system. Compliance within the Group and non-financial reporting are other important topics. One focus of the work is the review of the annual financial statements and consolidated financial statements.

Bertelsmann Annual Report 2021, pp. 151-159  .

The advisory body responsible for the management and strategic development of Corporate Responsibility (CR) at Bertelsmann is the CR Council. The CR Council consists of executives from the corporate divisions and the Chief Human Resources Officer of Bertelsmann, who chairs the advisory body.

It focuses on the further development of the Group-wide CR priorities in line with the corporate strategy, further anchoring of Corporate Responsibility in the corporate divisions, and the cross-divisional coordination of CR activities. At the Group level, the Corporate Responsibility department, a central staff function of the HR executive portfolio, coordinates and supports the work of the CR Council in close cooperation with other Group functions, such as Financial Reporting, Risk Management, Investor Relations, Human Resources and Employee Representations, Controlling & Strategy, Corporate Communications, Legal, and Integrity & Compliance. It is also responsible for Group-wide Corporate Responsibility reporting, the processing of ratings and rankings in this field, and coordinates the Group’s stakeholder dialog as well as internal networks and consulting projects on a wide range of CR topics. Bertelsmann's environmental and climate management also falls within the scope of CR accountability, as does the Group-wide development of Diversity, Equity & Inclusion and Health & Well-being.

Rooted in the company structure that has evolved at Bertelsmann over the decades, the principle of delegating responsibility applies for the implementation of Corporate Responsibility across the Group. Since Bertelsmann’s local management teams know their businesses and the social and ecological environment they operate in best, specific CR measures and projects are locally implemented. The corporate divisions and companies have their own structures and processes in place for this, in accordance with local requirements.

Responsibilities at Executive Board level are also presented in the respective management approaches.

CR Organization 

In the 2021 financial year, women comprised 31 percent (previous year: 23 percent) of the Supervisory Board. The average age of Supervisory Board members was 60 (previous year: 59). 69 percent (previous year: 77 percent) of the Supervisory Board members were German, while 31 percent (previous year: 23 percent) were of international origin.

Bertelsmann Annual Report 2021, pp. 160-163  .

Bertelsmann interacts with a variety of internal and external stakeholders: with potential employees, employee representatives, business partners, consumers, investors, bankers, journalists, creative talent, content producers, as well as policymakers and representatives of government agencies, associations, and non-governmental organizations.

The Code of Conduct and the Supplier Code of Conduct (see GRI 102-16  ) reaffirm the right to freedom of association and the right to engage in collective bargaining, in accordance with applicable laws and regulations, for all employees of Bertelsmann companies as well as those of business partners.

On the one hand, Bertelsmann is in dialog with stakeholders who have a strong influence on the company’s business, social or environmental performance, or on the regulatory framework that governs its activities. On the other hand, Bertelsmann seeks exchange with stakeholders who are significantly affected by its economic, social, or environmental contributions and impacts.

In its day-to-day business, Bertelsmann is in close contact with journalists, investors, bankers, and customers through its press offices, Investor Relations department, and service centers. In addition to the daily press work and the events organized by Bertelsmann and its corporate divisions, which will continue to be primarily digital in 2021 given the coronavirus pandemic, the Annual Press Conference on year-end results, the communication accompanying the publication of the Interim Report, as well as quarterly figures represent proven formats for contact with journalists, investors, bankers, and the media. Because capital market financing is a major element in the Group’s financing strategy, transparency vis-à-vis the capital market is of great importance for the company’s financial security and independence.

With the Combined Non-Financial Statement in the Bertelsmann Annual Report 2021 (pp. 44-52)  matters related to Corporate Responsibility (CR) are reported in the Combined Management Report. As part of so-called CR relevance analyses, Bertelsmann regularly determines which CR topics should be primarily focused on. Inside the company, selected top executives and experts from the corporate divisions are surveyed; externally, the analysis covers, e.g., business partners, potential employees, investors, bankers, CR experts, journalists, and policymakers.

For more information on Bertelsmann’s stakeholders: see GRI 102-40  .

More information on the various dialog formats the company maintains to promote regular exchange with employees and their representatives: see GRI 402  .

All fully consolidated Group companies were included in this report. Deviations from the scope of consolidation are indicated in the text. The full list of shareholdings of the Bertelsmann Group according to Section § 313 (2) and § 285 No. 11 German Commercial Code (“Handelsgesetzbuch,” HGB) for Bertelsmann SE & Co. KGaA as of December 31, 2021, can be found in the attachments of the individual financial statement of Bertelsmann SE & Co. KGaA, as of December 31, 2021.

Individual Financial Statements and Combined Management Report 2021, pp. 28-49 

Bertelsmann regularly performs Corporate Responsibility (CR) relevance analyses to identify CR priorities. A total of 632 people took part in the most recent stakeholder survey; they were surveyed on 19 selected CR topics. External stakeholders assessed how Bertelsmann’s business activities impact these CR topics, while internal stakeholders evaluated their relevance for the business. All external participants were surveyed by means of an anonymized online survey. The Corporate Responsibility department summarized the results in a CR Relevance Matrix  .The eight CR priorities identified in this way were adopted by the Bertelsmann Executive Board in January 2021. The Bertelsmann CR Program (2021–2023), adopted on this basis in November 2021, contains individual work programs for the priority CR topics. Their content and relevance for the 2021 financial year is explained elsewhere in this GRI Report.

Information on the eight CR priorities: see GRI 102-44  , 102-47  .

Further information on this is available on the Bertelsmann Website  .

1) Basis: GRI Standards 2018

2) Basis: GRI Standards 2020

If, in individual cases, a new presentation, calculation method, or optimized data collection leads to different results, this is noted in the respective places with a footnote.

Due to the new eight CR priorities adopted by the Bertelsmann Executive Board in January 2021, there were changes in the list of material CR topics compared with previous years: see GRI 102-44  , 102-47  .

The reporting period covers the 2021 financial year.

The last Bertelsmann CR Report was published in June 2021. In addition, CR information is continuously updated on the Bertelsmann Website  .

Annual.

Bertelsmann SE & Co. KGaA

Corporate Responsibility

Marie-Luise Kühn von Burgsdorff

Senior Vice President Corporate Responsibility

Tel.: +49 (0) 5241-80-75021

Send email

This report has been prepared in accordance with the GRI Standards: Core option.

This GRI report includes the GRI content index (GRI 102  , GRI 200  , GRI 300  , GRI 400  ).