Introduction

Introduction

Dear esteemed readers,

As 2024 comes to an end, we reflect on a year marked by both progress achieved, and challenges met along our sustainability journey. Striking a balance between our sustainability goals, cost considerations, and ensuring appropriate profitability has been a central priority.

A major milestone in 2024 was the submission of our Science-Based Targets for validation by the Science Based Targets initiative (SBTi), where we identified key levers to achieve impactful CO₂e reductions across Scope 1, 2, and 3 emissions. We also took important steps to refine our Double Materiality Assessment, ensuring it aligns more closely with our strategic priorities, and updated our Supplier Code of Conduct to reflect these insights. Social sustainability advanced as well, with our procurement teams receiving dedicated training on human rights and social risks in the supply chain.

We are also proud of the strides made in fostering diversity within our leadership team, with the share of women in senior management continuing to grow. Employee well-being remains a priority, supported by targeted training initiatives, and our progress on occupational health and safety (OHS) certifications keeps us firmly on track to achieve our objectives.

Despite these achievements, 2024 also brought challenges. We faced a 7% decline in Group revenue compared to the previous year. This reduction influenced certain performance metrics, such as energy use and waste, which are closely tied to production volumes. While the improvement in these key performance indicators (KPIs) is visible, it also reflects lower production activity rather than direct sustainability initiatives.

Looking ahead to 2025, we remain focused on driving sustainability and innovation. Key priorities include the full implementation of our revised Supplier Code of Conduct and further advancing circular economy initiatives.

As we pursue our long-term vision of achieving net-zero emissions by 2050, we remain dedicated to fostering a culture of transparency, responsibility, and continuous improvement. The road ahead is challenging, but with the support of our employees, partners, and stakeholders, we are confident in our ability to build a more sustainable future.

Thank you for your continued trust and partnership.

With kind regards,

Dr. Hans-Peter Zehnder

Chairman of the Board of Directors

Matthias Huenerwadel

Chairman of the Group Executive Committee, CEO