SW Umwelttechnik subscribes to the Austrian Code of Corporate Governance, and believes that the increased transparency at which the Code aims will further strengthen investors' confidence in the Company and the equity market as a whole. These standards of good practice rest on voluntary self-regulation, but management bases its conduct on the principles embedded in them. This means that since 2004 SW Umwelttechnik has been voluntarily aiming to adhere to as many of the Code regulations as possible.

The Austrian Code is based on international standards and also considers the Austrian stock corporation law as well as the Austrian Stock Exchange Act. The code ecompasses 79 reulations of which 23 pertain to current and compulsory Austrian legal measures. A further 45 regulations include various parameters for explaining and justifying possible divergences (“comply or explain”). And finally there are a further 11 recommended regulations for which non-adherence does not require any explanations or justifications by the companies, such as SW Umwelttechnik,

The C-regulations (comply or explain) of the Austrian Code for Corporate Governance should be adhered to. If not, these divergences need to be explained and justified in order to reach conformity amongst Code users. SW Umwelttechnik currently diverges from the following C-regulations and gives an explanation for this in the following:

Rule 18
In the interests of efficiency, internal auditing is not performed by a separate staff unit, but by a unit within the Corporate Controlling Department.