About this Report

07.1

Sustainability Performance

07.2

DNK-GRI Index

Environment

GRI SRS 301-1

Material used by weight or volumes

The reporting organisation shall report the following information:

1. Total weight or volume of materials that are used to produce and package the organisation’s primary products and services during the reporting period, by:
   1. non-renewable materials used
   2. renewable materials used

In this case, no distinction is made between renewable and non-renewable materials

Data differentiation management processes are necessary at sourcing level for future reporting purposes.

GRI SRS 302-1

Energy consumption within the organisation

The reporting organisation shall report the following information:

1. Total fuel consumption within the organisation from non-renewable sources, in joules or multiples, and including fuel types used.

   Energy used for facilities	Natural Gaz	103,300	GWh
   		Diesel/ Heating Oil	1	GWh
   Energy used for company vehicles	Diesel	19,776	GWh	1.977.632	l
   		Gasoline	0,343	GWh	39.197	l

2. Total fuel consumption within the organisation from renewable sources, in joules or multiples, and including fuel types used.

   Renewable Energy	Biomass	1	GWh
   		Solar PV	1,3	GWh

3. In joules, watt-hours or multiples, the total:
   1. electricity consumption:

      124.200 MWh

   2. heating consumption:

      105.300 MWh

   3. cooling consumption:

      -

   4. steam consumption:

      -
      Out of 22 production sites, 6 are ISO50001 certified in 2021, which means that the breakdown of energy consumption by function (cooling, heating,..) is not available for all sites.

4. In joules, watt-hours or multiples, the total:
   1. electricity sold
   2. heating sold
   3. cooling sold
   4. steam sold

   No energy is sold externally.

5. Total energy consumption within the organisation, in joules or multiples.

   250,920 GWh including company car fuels

6. Standards, methodologies, assumptions, and/or calculation tools used

   Energy is collected according to ISO50001 management systems and audited accordingly.

7. Source of the conversion factors used

   International Energy Agency Conversion factors and unit abbreviations²¹

GRI SRS 302-4

Reduction of energy consumption

The reporting organisation shall report the following information:

1. Amount of reductions in energy consumption achieved as a direct result of conservation and efficiency initiatives, in joules or multiples.

   Energy between 2021 and 2022 has been reduced by 12.700 MWh²².

2. Types of energy included in the reductions; whether fuel, electricity, heating, cooling, steam, or all.

   Reductions have been made in all these types of energies.

3. Basis for calculating reductions in energy consumption, such as base year or baseline, including the rationale for choosing it.

   Energy reduced has been calculated between 2021 and 2022.

4. Standards, methodologies, assumptions, and/or calculation tools used.

GRI SRS 303-3

Water withdrawal

The reporting organisation shall report the following information:

1. Total water withdrawal from all areas in megalitres, and a breakdown of this total by the following sources, if applicable:
   1. Surface water
   2. Groundwater
   3. Seawater
   4. Produced water
   5. Third-party water.

   Refer to Table 8 and Table 9.

2. Total water withdrawal from all areas with water stress in megalitres, and a breakdown of this total by the following sources, if applicable:
   1. Surface water
   2. Groundwater
   3. Seawater
   4. Produced water
   5. Third-party water, and a breakdown of this total by the withdrawal sources listed in i-iv.

   Refer to Table 8 and Table 9.

3. A breakdown of total water withdrawal from each of the sources listed in Disclosures 303-3-a and 303-3-b in megalitres by the following categories:
   1. Freshwater (≤1.000 mg/L Total Dissolved Solids);
   2. Other water (>1.000 mg/L Total Dissolved Solids).

   Refer to Table 8 and Table 9.

4. Any contextual information necessary to understand how data has been compiled, such as any standards, methodologies, and assumptions used.

   The WWF Water Risk Filter is a corporate and portfolio-level screening and prioritisation tool to enable companies and investors to assess and respond to their water risks both now and in the future. This tool is used to identify high water resources risks production sites at Hager Group in a scenario analysis approach.

Table 8: Water Withdrawal Quantities for all production sites in Megalitres (ML)

Table 9: Water Withdrawal Quantities in Megalitres (ML) from high water stress areas

GRI SRS 306-3

Waste by type and disposal method

The reporting organisation shall report the following information:

1. Total weight of waste generated in metric tons, and a breakdown of this total by composition of the waste.
2. Contextual information necessary to understand the data and it data has been compiled.

Table 10: Breakdown of the total waste production by Hager Group production sites by composition in Metric Tons

GRI SRS 305-1

Direct (Scope 1) GHG emissions

The reporting organisation shall report the following information:

1. Gross direct (Scope 1) GHG emissions in metric tons of CO₂ equivalent.

   26.646

2. Gases included in the calculation; whether CO₂, CH₄, N₂O, HFCs, PFCs, SF₆, NF₃, or all.

   All gases are included in the calculation.

3. Biogenic CO₂ emissions in metric tons of CO₂ equivalent.
4. Base year for the calculation, if applicable, including:
   1. the rationale for choosing it;

      The year was chosen because the reference year of the whole report is 2021. Data in terms of quality and availability was fitting.

   2. emissions in the base year;
   3. the context for any significant changes in emissions that triggered recalculations of base year emissions.
5. Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source.

   Sources of emission factors: the IEA and French Environment and Energy Management Agency (ADEME) databases.

6. Consolidation approach for emissions; whether equity share, financial control, or operational control.
7. Standards, methodologies, assumptions, and/or calculation tools used.

   The Greenhouse Gas Protocol²³ was followed as a methodology to calculate the three scopes of emissions.

GRI SRS 305-2

Energy indirect (Scope 2) GHG emissions

The reporting organisation shall report the following information:

1. Gross location-based energy indirect (Scope 2) GHG emissions in metric tons of CO₂equivalent.

   32.564

2. If applicable, gross market-based energy indirect (Scope 2) GHG emissions in metric tons of CO₂equivalent.
3. If available, the gases included in the calculation; whether CO₂, CH, N₂O, HFCs, PFCs, SF₆, NF₃, or all.

   All gases are included in the calculation.

4. Base year for the calculation, if applicable, including:
1. the rationale for choosing it;

   The year was chosen because the reference year of the whole report is 2021. Data in terms of quality and availability was fitting.

2. emissions in the base year;
3. the context for any significant changes in emissions that triggered recalculations of base year emissions.
5. Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source.

   Sources of emission factors: The IEA and French Environment and Energy Management Agency (ADEME) databases.

6. Consolidation approach for emissions; whether equity share, financial control, or operational control.
7. Standards, methodologies, assumptions, and/or calculation tools used

   The Greenhouse Gas Protocol was followed as a methodology to calculate the three scopes of emissions.

GRI SRS 305-3

Other indirect (Scope 3) GHG emissions

The reporting organisation shall report the following information:

1. Gross other indirect (Scope 3) GHG emissions in metric tons of CO₂equivalent.

   2.664.170

2. If available, the gases included in the calculation; whether CO₂, CH₄, N₂O, HFCs, PFCs, SF₆, NF₃, or all.
3. Biogenic CO₂emissions in metric tons of CO₂equivalent.

   All gases are included in the calculation.

4. Other indirect (Scope 3) GHG emissions categories and activities included in the calculation.
   • Purchased goods and services
   • Capital goods
   • Upstream energy
   • Upstream transportation & distribution
   • Waste generated in operations
   • Business travels
   • Employees commuting
   • Downstream transportation & distribution
   • Use of sold products
   • End-of-life of sold products
5. Base year for the calculation, if applicable, including:
1. the rationale for choosing it;

   Reduction is from 2021 to 2022. Data in terms of quality and availability is fitting starting 2021 as the base year.

2. emissions in the base year;
3. the context for any significant changes in emissions that triggered recalculations of base year emissions.
6. Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source.

   Sources of emission factors: the IEA and French Environment and Energy Management Agency (ADEME) databases.

7. Standards, methodologies, assumptions, and/or calculation tools used.

   The Greenhouse Gas Protocol was followed as a methodology to calculate the three scopes of emissions.

GRI SRS 305-5

Reduction of GHG emissions

The reporting organisation shall report the following information:

1. GHG emissions reduced as a direct result of reduction initiatives, in metric tons of CO₂equivalent.

   - 4.730 tCO₂e

2. Gases included in the calculation; whether CO₂, CH₄, N₂O, HFCs, PFCs, SF₆, NF₃, or all.

   All gases are included in the calculation.

3. Base year or baseline, including the rationale for choosing it.

   The year was chosen because the reference year of the whole report is 2021. Data in terms of quality and availability was fitting.

4. Scopes in which reductions took place; whether direct (Scope 1), energy indirect (Scope 2), and/or other indirect (Scope 3).

   Scope 1 & 2

5. Standards, methodologies, assumptions and/or calculation tools used.

   We have set science based reduction targets by 2030 compared to our baseline year 2021:

   • -50% on scopes 1 & 2 emissions
   • -25% on scope 3 emissions

Social

GRI SRS 201-1

Direct economic value generated and distributed

The reporting organisation shall report the following information:

1. Direct economic value generated and distributed (EVG&D) on an accruals basis, including the basic components for the organisation’s global operations as listed below. If data are presented on a cash basis, report the justification for this decision in addition to reporting the following basic components:
   1. Direct economic value generated: revenues;
   2. Economic value distributed: operating costs, employee wages and benefits, payments to providers of capital, payments to government by country, and community investments;
   3. Economic value retained: ‘direct economic value generated’ less ‘economic value distributed’.
2. Where significant, report EVG&D separately at country, regional, or market levels, and the criteria used for defining significance.

Table 13: Direct economic value generated and distributed

Table 14: Distribution of revenues per sector for the year 2021

Table 15: Distribution of revenues per Geographical Zone for the year 2021

GRI SRS 403-4

Worker participation, consultation, and communication on occupational health and safety

The reporting organisation shall report the following information for employees and for workers who are not employees but whose work and/or workplace is controlled by the organisation:

1. A description of the processes for worker participation and consultation in the development, implementation, and evaluation of the occupational health and safety management system, and for providing access to and communicating relevant information on occupational health and safety to workers.

   As part of the ISO 45001 Systems, at any moment employees can contac the Occupational Safety Specialist (FASI) or their direct manager should they have any questions. Employees at Hager Group indubitably constitute the organisation’s most significant interested party, whose needs and expectations are identified and addressed. The Occupational Health and Safety Committees seek out their views on health and safety concerns regarding work activities, products or services. They follow up on inquiries, requests, complaints or suggestions made by employees to learn more about their expectations. The Health and Safety Committee meetings are an excellent forum to gather and evaluate workers’ concerns. Regular employee satisfaction surveys are available for specific concerns and are recorded to develop plans to address them. An effective and immediate method for employee participation is Kaizen alerts cards, this method is implemented in factories where health and safety risks are the highest. These Kaizen cards are available on site for workers to fill in when they identify a near-miss or safety risk to report on for immediate and/or longer-term actions to address them.

2. Where formal joint management–worker health and safety committees exist, a description of their responsibilities, meeting frequency, decision-making authority, and whether and, if so, why any workers are not represented by these committees

   There are dedicated Occupational Safety Committees per subsidiary that meet regularly (typically quarterly but that could vary depending on the country). The committees typically²⁶ consist of the specialist for occupational safety (HS Manager) of the specific site, safety officers, company doctors, members of the work council, fire protection officer, the operations manager, an HR manager, and a representation from top management.

GRI SRS 403-9 (a + b)

Work-related injuries

The reporting organisation shall report the following information:

1. For all employees:
   1. The number and rate of fatalities as a result of work-related injury;

      0

   2. The number and rate of high-consequence work-related injuries (excluding fatalities);

      0

   3. The number and rate of recordable work-related injuries;

      Number of Accidents: 110

   Rate: 4,9

   4. The main types of work-related injury;

      Absence of normalised group defined categories – each site reports based on National Requirements

   5. The number of hours worked.

      22.128.720

2. For all workers who are not employees but whose work and/or workplace is controlled by the organisation:
   1. The number and rate of fatalities as a result of work-related injury;

      0

   2. The number and rate of high-consequence work-related injuries (excluding fatalities);

      0

   3. The number and rate of recordable work-related injuries;

      -

   4. The main types of work-related injury;

      -

   5. The number of hours worked.

      It is illegal to record worked hours by external workforce in France.

GRI SRS 403-10 (a + b)

Work-related ill health

The reporting organisation shall report the following information:

1. For all employees:
   1. The number of fatalities as a result of work-related ill health;
   2. The number of cases of recordable work-related ill health;
   3. The main types of work-related ill health.
2. For all workers who are not employees but whose work and/or workplace is controlled by the organisation:
   1. The number of fatalities as a result of work-related ill health;
   2. The number of cases of recordable work-related ill health;
   3. The main types of work-related ill health.

No global group level reporting on work-ill related indicators.

GRI SRS 404-1

Average hours of training per year per employee

The reporting organisation shall report the following information:

1. Average hours of training that the organisation’s employees have undertaken during the reporting period, by:
   1. gender;

      Gender	Total Hours	Number of people trained	Average hours by people trained
      Male	72.204	4.902	14,73
      Female	32.994	2.306	14,31
      TOTAL	105.199	7.208	14,59

   2. employee category.

      Function	Number of training hours	Percentage
      Manufacturing	42.826	41%
      Support function	7.214	7%
      Solution Development and Marketing	4.317	4%
      Engineering, Quality, Industrialisation, D&I	24.927	24%
      Supply Chain & Logistics	4.250	4%
      Sales	21.665	21%
      Total	105.199	100%

GRI SRS 405-1

Diversity of governance bodies and employees

The reporting organisation shall report the following information:

1. Percentage of individuals within the organisation’s governance bodies²⁷ in each of the following diversity categories:
   1. Gender;

      Female	15%
      Male	85%

   2. Age group in years: under 30, 30-50, over 50;

      60-64	15,35%
      55-59	34,62%
      50-54	38,46%
      45-49	7,69%
      40-44	3,85%

   3. Other indicators of diversity where relevant (such as minority or vulnerable groups).
2. Percentage of employees per employee category in each of the following diversity categories:
   1. Gender;

      Female	40%
      Male	60%

   2. Age group: under 30, 30-50, over 50;
   3. Other indicators of diversity where relevant (such as minority or vulnerable groups)

Governance

GRI SRS 102-16

Values, principles, standards, and norms of behaviour

As a family business, the company founders’ courageous entrepreneurial spirit, authenticity and integrity are values that shape the company’s identity and business ethical behaviour²⁴. This starts by compliance with all national and international industry standards and in many instances go above and beyond what is required. Since 2020, an Ethics Charter²⁵ developed by the Sustainable Development department and validated by the Executive Board serves as a reference framework to these values. The members of the Executive Board also maintain responsibility for chapters in the charter. Available in 17 languages, the charter aims at building up trust between all company stakeholders and ensures accountability regarding sustainable and ethical issues. The Ethics Charter is reviewed regularly and is signed by all Hager Group employees as a commitment to its importance and value. Training on ethics in business is given regularly to governance body members, workers performing the organisation’s activities, through two modules:

• Ethics in Business:
  Know your basics
• Ethics in Business:
  Wake-up your values

GRI SRS 414-1

New suppliers that were screened using social criteria

The reporting organisation shall report the following information:

1. Percentage of new suppliers that were screened using social criteria.

   All new suppliers of direct materials will be screened after their onboarding by the third-party software solutions using social criteria.

GRI SRS 414-2

Negative social impacts in the supply chain and actions taken

The reporting organisation shall report the following information:

1. Number of suppliers assessed for social impacts.
2. Number of suppliers identified as having significant actual and potential negative social impacts.
3. Significant actual and potential negative social impacts identified in the supply chain.
4. Percentage of suppliers identified as having significant actual and potential negative social impacts with which improvements were agreed upon as a result of assessment.
5. Percentage of suppliers identified as having significant actual and potential negative social impacts with which relationships were terminated as a result of assessment, and why.

In compliance with the German Supply Chain act, we have implemented a third-party software solution to assess and identify suppliers against environmental and social criteria as described. The software has been implemented in Q2 2022 for screening in 2023 in accordance to the effectiveness of the act.

GRI SRS 102-35

Remuneration policies

The reporting organization shall report the following information:

1. Remuneration policies for the highest governance body and senior executives for the following types of remuneration:
   1. Fixed pay and variable pay, including performance-based pay, equity-based pay, bonuses, and deferred or vested shares;.
   2. Sign-on bonuses or recruitment incentive payments;
   3. Termination payments;
   4. Clawbacks;
   5. Retirement benefits, including the difference between benefit schemes and contribution rates for the highest governance body, senior executives, and all other employees.

   Our employees are paid according to collective agreements in their respective countries, in Germany the following collective agreements are in place:

   • chemical collective agreement (State of Saarland): Hager Vertriebsgesellschaft mbH & Co.KG, Blieskastel
   • chemical collective agreement (State of Rhineland-Palatinate): Tehalit GmbH, Heltersberg
   • metal & electrical collective agreement (Area of Saarland): Hager Electro GmbH & Co.KG, Blieskastel
   • metal & electrical collective agreement (State of North-Rine Westphalia): Berker GmbH & Co.KG, Ottfingen
2. How performance criteria in the remuneration policies relate to the highest governance body’s and senior executives’ objectives for economic, environmental, and social topics.

   Our collective bonus scheme, including for top executives, is covering 4 dimensions: Business, customer, employees and sustainability: For each dimension we have measure with concrete KPI per year our performance.

GRI SRS 102-38

Annual total compensation ratio

The reporting organization shall report the following information:

1. Ratio of the annual total compensation for the organization’s highest-paid individual in each country of significant operations to the median annual total compensation for all employees (excluding the highest-paid individual) in the same country.

   Hager Group does not report on the annual compensation ratio of the highest-paid employee to the median level of total annual compensation for all employees.

GRI SRS 205-1

Operations assessed for risks related to corruption

The reporting organisation shall report the following information:

1. Total number and percentage of operations assessed for risks related to corruption.

   All our operations are assessed for risks related to corruption by our Global Risks Management team.

2. Significant risks related to corruption identified through the risk assessment

   In 2021, our assessment identified two corruption related risks that require vigilance: fraud.

GRI SRS 205-3

Confirmed incidents of corruption and actions taken

The reporting organisation shall report the following information:

1. Total number and nature of confirmed incidents of corruption.
2. Total number of confirmed incidents in which employees were dismissed or disciplined for corruption.
3. Total number of confirmed incidents where contracts with business partners were terminated or not renewed due to violations related to corruption.
4. Public legal cases regarding corruption brought against the organisation or its employees during the reporting period and the outcomes of such cases.

No cases for corruption have been identified in 2021 in Hager Group operations. Alerts received were found to be unfounded and did not lead to confirmed corruption cases.

GRI SRS 419-1

Non-compliance with laws and regulations in the social and economic area

The reporting organisation shall report the following information:

1. Significant fines and non-monetary sanctions for non-compliance with laws and/or regulations in the social and economic area in terms of:
   1. total monetary value of significant fines;
   2. total number of non-monetary sanctions;
   3. cases brought through dispute resolution mechanisms.
2. If the organisation has not identified any non-compliance with laws and/or regulations, a brief statement of this fact is sufficient.
3. The context against which significant fines and non-monetary sanctions were incurred.

In 2021 there were no fines or/and non-monetary sanctions imposed on Hager Group.

GRI SRS 412-1

Operations that have been subject to human rights reviews or impact assessments

The reporting organisation shall report the following information:

1. Total number and percentage of operations that have been subject to human rights reviews or human rights impact assessments, by country.

In all Hager Group operations (production sites and offices) worldwide, minimum requirements for human and employee rights are observed according to our ethics charter and respective national laws. No separate reviews are conducted.

GRI SRS 412-3

Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening

The reporting organisation shall report the following information:

1. Total number and percentage of significant investment agreements and contracts that include human rights clauses or that underwent human rights screening.

   In 2021, no significant investments took place. Our human rights clauses are included in our Legal Due Diligence process.

2. The definition used for ‘significant investment agreements’.

   All Merger & Acquisition operations are considered significant investment agreements.

Key World Energy Statistics 2020 Methodology

Energy reduction does not include evolution in fuel car consumptions.

The standard covers the accounting and reporting of seven greenhouse gases covered by the Kyoto Protocol – carbon dioxide (CO₂), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PCFs), sulfur hexafluoride (SF6) and nitrogen trifluoride (NF3). It was updated in 2015 with the Scope 2 Guidance, which allows companies to credibly measure and report emissions from purchased or acquired electricity, steam, heat and cooling.

Detailed description of Hager Group values are available on the company’s corporate website

Updated in 2018, the Ethics Charter text is available on the company’s corporate website

This can vary depending on the size and location of the site.

The governance body in this case is defined as the top Executives of the Group (including the board of executive directors).