Basler: Basler : Sustainability Report 2024

Combined Non-financial Report for 2024 Our Values and Responsibility For today and the future Content Foreword by the Chairperson of the Supervisory Board Basler Sustainability Highlights 2024 Executive Summary 1. General Disclosures (ESRS 2) 1.1 Preliminary remarks and basis for preparation of the combined non-financial report 1.2 Governance 1.3 Strategy 1.4 Material sustainability impacts and risks of the business model 1.5 The Group sustainability strategy 1.6 Management of impacts, risks and opportunities 2. Climate change (ESRS E1) 2.1 Material impacts, risks and opportunities 2.2 Strategies and actions 2.3 Metrics and targets 2.4 Disclosures pursuant to Regulation (EU) 2020/852 ('EU Taxonomy') 3. Environmental pollution (ESRS E2 3.1 Material impacts, risks and opportunities 3.2 Strategies and actions 3.3 Substances of very high concern 3.4 Targets 4. Resource use and the circular economy (ESRS E5) 4.1 Material impacts, risks and opportunities 4.2 Strategies and actions 4.3 Targets and metrics 5. Own workforce (ESRS S1) 5.1 Material impacts, risks and opportunities 5.2 Strategies and actions 5.3 Targets and metrics 6. Own workforce (ESRS S1) 6.1 Material impacts, risks and opportunities 6.2 Strategies and actions 6.3 Targets 7. Consumers and end users (ESRS S4) 7.1 Material impacts, risks and opportunities 7.2 Strategies and actions 7.3 Targets and metrics 8. Business Conduct (ESRS G1) 8.1 Governance 8.2 Strategies, actions and metrics 9. Glossary 10. Appendices 11. Overview of figures 12. Reproduction of the Independent Auditor's Report Foreword by the Chairperson of the Supervisory Board Dear Reader, as a listed company, we are keenly aware of our responsibility in the areas of profit (economy), people (social issues) and planet (ecology) - the three pillars of sustainability management - as well as good corporate governance. The issue of sustainable management is close to our hearts. We are willing, possess the expertise and have already started to invest in a sustainable world. In doing so, we exploit opportunities and seek to increase economic success. At a time when sustainability is of paramount importance, we are aligning our strategies with new regulations, comprehensive analyses and forward-looking plans to ensure our long-term resilience and success. Navigating the EU-CSRD The European Union's Corporate Sustainability Reporting Directive (EU-CSRD) is an important milestone on our path to greater transparency and accountability. This directive extends the scope of reporting to include a broader set of sustainability matters and comes with strict disclosure obligations. At Basler Aktiengesellschaft (in the following referred to as 'Company' ), we view the EU-CSRD as an opportunity to improve our sustainability practices and offer our stakeholders a clear and thorough impression of our ESG performance. By adhering to these standards, we want to contribute to a more sustainable and fair future and at the same time position ourselves at the frontline of responsible business practices. Double materiality analysis: A comprehensive approach Our sustainability strategy is based on a double materiality analysis, which we use to assess the impact of our activities on the environment and society as well as the financial impact of sustainability issues on our business. This approach ensures that not only do we minimise risks we also exploit opportunities that emerge from a highly dynamic global environment. Integration of double materiality into our decision-making processes enables us to better anticipate and respond to the needs of our stakeholders. Focus of the ESG agenda: Climate change and a conflict-free supply chain Climate change and a conflict-free supply chain are at the heart of our ESG agenda. Climate change is among the most serious challenges of our time, and we are determined to contribute to confronting this immense task. A pivotal component of our sustainability agenda is our climate transition plan, which describes our journey to achieving net-zero emissions and building climate resilience. Included in this plan are initiatives such as using renewable energy sources, improving energy efficiency and developing sustainable products. We also attach great importance to a conflict-free supply chain and do so by promoting ethical procurement practices and consistently endeavouring to ensure that all materials and products are sourced and produced under fair conditions. Foreword by the Chairperson of the Supervisory Board In conclusion, it would be reasonable to say that the path to sustainability is continuous and constantly changing. At Basler, we are proud of the progress we have made and determined to move forward, driven by our core values and the expectations of our stakeholders. This report is a testimony to our ongoing efforts and a roadmap for our future endeavours. We invite you to join us on this path as we work to create a better and more sustainable world. Here at Basler, the Executive Board and Supervisory Board are responsible for sustain-ability and for defining its strategy and objectives. This responsibility is an integral part of our value system and the Basler culture. Wishing you a delightful reading experience! Yours, Improving quality of life with computer vision "Improving the quality of life with computer vision is far more than a marketing slogan here at Basler - it is at the heart of what we do and embody. Computer vision presents revolutionary opportunities to make the world more sustainable: our products optimise processes, support the production and operation of future-oriented, sustainable technologies and encourage transition to a functioning circular economy. At the heart of this commitment is Basler's core expertise: innovation. We can only shape a world in which economic progress is in harmony with social and ecological responsibility by embracing visionary approaches and continuous development - for a liveable present and future." Hardy Mehl, CCO/COO Basler Sustainability Highlights 2024 189t CO 2 e 42 % 0.05 % 37 % Reduction in GHG emissions (Scopes 1&2) see page 42 Confirmed conflict-free supply chain see page 107 Gender pay gap (adjusted) see page 98 Share of taxonomy-eligible capital expenditure see page 55 4 +800 % 7.5 €13.7m Accidents at work see page 97 Whistleblower reports compared to 2023 see page 125 Training hours per employee see page 95 Taxonomy-eligible sales see page 57 Executive Summary The Company and its subsidiaries (in the following referred to as 'Group') have made significant progress with regard to the transparency, scope and completeness of the combined non-financial report for the 2024 financial year. It has also made considerable headway in the setting of targets for key sustainability matters and in the implementation of sustainability actions. Double Materiality Assessment Direct involvement of various internal and external stakeholder groups in the assessment of material sustainability issues enables a thorough identification of impacts, risks and opportunities both in the context of sustainability and for the Group's business model. The Group is expanding its reporting to include three additional subject areas as a direct consequence. Until now, the statement has addressed the issues of climate, the circular economy, the company's own workforce and business conduct. The topics of environmental pollution, workers in the value chain and consumers and end-users are added from 2024 onwards. Expansion of the scope of consolidation This sustainability statement covers the Group, hence all the Group locations worldwide. This provides a complete view of the company's business activities and expands the dataset for reporting to all ten Group companies. In previous sustainability reports, the scope of consolidation has been limited to seven Group companies. Executive Summary Targets & Actions Since 2024, the Group has pursued two targets for the most important sustainability issues, namely climate neutrality and conflict-free supply chains. The Group is committed to achieving net-zero greenhouse gas emissions from its own business activities (Scope 1&2) by 2030 in order to reduce its own impact on climate change. Here, we already achieved a reduction of 9% (compared to 2022) in the 2024 financial year. We accomplished this, among other things, through initial, smaller investments of around €100,000 as part of our climate transition plan. These invest-ments were tailored to reflect the economic situation. In order to achieve the climate target, increasing investments are planned for the years ahead up to a potential total volume of €8m by 2030. Within the context of conflict-free supply chains, the Group has defined the goal of being able to confirm that at least 75% of its purchasing volume is 'conflict - free' by the end of 2028. At the end of the 2024 financial year, 42% of the supply chain was con- firmed as conflict-free. This represents significant progress compared to the previous year (0% in 2023). A revision of the supply chain target is planned for 2025. We plan to evaluate ecologi-cal and social standards as part of a more comprehensive target, as the absence of conflict is just one aspect of sustainable supply chains. Climate assessment For the first time, a complete inventory of Scope 3 greenhouse gas emissions was performed for this statement. It was conducted to add to the current GHG inventory resulting from the Group's own business activities (Scopes 1&2). Scope 3 emissions are caused in the upstream and downstream value chain. Expanding the GHG inventory will enable the Group to extend its climate targets and implement targeted mitigation actions - right at the source of emissions. Using this new, more comprehensive approach, it becomes evident that 96% of the Group's emissions are generated outside its own business activities - in particular during the use of Basler products by end customers and through emissions caused i