Aalberts

Sustainability governance

Reference: page 46, 47.

Aalberts operates a two-tier board structure comprising a Management Board and a Supervisory Board, supported by an Executive Team.

Roles and responsibilities:

• Given Aalberts' focus on sustainability, overall ownership of sustainability rests with the CEO.
• The Management Board and Executive Team establish and implement the sustainable entrepreneurship and people & culture strategy, and take impacts, risks and opportunities into account when overseeing strategy and risk management. These were taken into account in developing the updated 'thrive 2030' strategy.
• The director sustainable entrepreneurship (part of the Executive Team) and the chief people & culture officer drive the strategy day-to-day. Health & safety, sustainability and people & culture are monthly agenda items at Executive Team meetings.
• The Supervisory Board continuously supervises the long-term value creation strategy and its implementation. Its Audit Committee monitors the ESG reporting process and CSRD implementation; its NSR Committee monitors implementation of the sustainable entrepreneurship and people & culture strategy.

The Supervisory Board can leverage the expertise of the director sustainable entrepreneurship and chief people & culture officer.

Information flow on sustainability matters

Reference: page 46, 47.

The Management Board and Executive Team take impacts, risks and opportunities into consideration while overseeing strategy and risk management. These were taken into account in developing the updated 'thrive 2030' strategy, leading to updated action plans and targets on sustainability, health and safety, innovation and people & culture, and feed into long-term financial planning and scenario analysis.

Reporting cadence:

• ESG reporting is supervised by the director sustainable entrepreneurship, who is part of the Executive Team and discusses this at least quarterly with the Management Board.
• The HSRS (health & safety, risk and sustainability) network monitors performance and progress of improvement plans via quarterly HSRS network meetings, and more frequently where deemed necessary.
• The people & culture network meets quarterly; selected KPIs are measured quarterly. Long-term HSRS and P&C improvement plans and innovation roadmaps are discussed and challenged by the Management Board during annual strategy meetings with the business teams.
• The Supervisory Board's Audit Committee monitors the ESG reporting process and associated risks, internal controls and CSRD implementation.

Integration of sustainability-related performance in incentive schemes

Reference: page 46.

Aalberts discloses that in 2024, performance under the short-term incentive (STI) or the long-term incentive (LTI) is not being assessed against specific sustainability-targets and/or impacts.

Sustainable entrepreneurship, including Aalberts' commitments and objectives, is integrated in the 'thrive 2030' strategy and overseen by the Management Board, Executive Team and Supervisory Board, but sustainability metrics were not embedded as remuneration performance conditions in the reporting year.

Statement on due diligence

Reference: page 48.

Aalberts' diverse portfolio and presence in various value chains requires a robust, coordinated approach to due diligence. The company is working to align its due diligence on human and environmental risks with the Corporate Sustainability Due Diligence Directive (CSDDD), expected to apply by 2027; this process is ongoing.

2024 developments:

• Initiated the transition from a business team-level approach to a group-level framework for organising due diligence, laying the foundation for a structured, group-wide process (including automated software).
• Strengthened due diligence by working towards alignment with the UN Guiding Principles on Business and Human Rights (UNGP) and the OECD Guidelines for Multinational Enterprises, building on a 2023 third-party gap assessment.
• Integrated due diligence as a key topic in the governance network and all governance visits, with attention to salient risks (e.g. human rights topics reviewed during a governance visit to the Taiwan factory).
• Integrated human- and environmental-rights due diligence into supply chain management assessments; suppliers sign the Supplier Code of Conduct (referencing the UN Global Compact and OECD).

Aalberts reports it received no evidence of any human rights violations or abuses in 2024.

Risk management and internal controls over sustainability reporting

Reference: page 46.

For general risk and internal control processes, Aalberts refers to its risk and opportunity management section (page 103). In addition, a Double Materiality Assessment (DMA) was performed to identify material ESG topics and the corresponding impacts, risks and opportunities under the CSRD methodology. The link between material risks and opportunities from the DMA and overall risk and opportunity management is shown in the last column of the IRO table.

Controls over sustainability data:

• Sustainability data is obtained and validated by local business teams based on global definitions and control principles provided at group level.
• Data is reported periodically via the global consolidation and reporting system, then consolidated, reviewed and validated by the ESG reporting manager and the finance/group control team to support accurate and complete reporting.
• ESG reporting is supervised by the director sustainable entrepreneurship, who discusses it at least quarterly with the Management Board.
• The Supervisory Board's Audit Committee monitors the ESG reporting process and its risks, the internal control systems and CSRD implementation.

Strategy, business model and value chain

Reference: page 49, 50, 51.

Aalberts is a technology company with industrial manufacturing processes, engineering mission-critical technologies enabling a clean, smart and responsible future. Its sustainability ambitions are integrated in the updated 'thrive 2030' strategy.

Business model and end-markets: Aalberts serves industry (enabling customer decarbonisation through R&D and breakthrough technologies), semicon (subsystem integration, repair and reuse) and building (energy transition, integrated solutions, ease of installation). It achieved an innovation rate of 19%, using sustainability as a growth driver. The company emphasises the 'multiplier effect': enabling customers to reduce CO2 emissions across their lifecycle.

Own commitments: net zero carbon by 2050, efficient use of natural resources, and reduced water use.

Value chain:

• Upstream supplies essential inputs such as raw materials and energy used to manufacture products and perform heat and surface treatments.
• Own operations cover industrial manufacturing and treatment activities.
• Downstream sees Aalberts' technologies enable customers to make an impact in their respective end-markets.

Aalberts actively engages value chain partners on initiatives such as decarbonisation and circular economy.

Interests and views of stakeholders

Reference: page 48.

Aalberts believes long-term value creation requires a culture of transparency and trust, and engages with stakeholders to capture multiple perspectives and align strategy and decision-making with their needs, expectations and concerns.

Five main stakeholder groups (identified through stakeholder mapping by highest impact and/or influence):

• (i) Shareholders (investors, financial analysts and other financial stakeholders)
• (ii) Customers
• (iii) Employees
• (iv) Suppliers and partners
• (v) Society (regulatory bodies, governmental agencies, local communities and other organisations)

Aalberts engages stakeholders daily; the frequency, level and method of engagement is tailored to the goal of the dialogue and the relationship.

How results inform strategy: stakeholder engagement results are, as appropriate, (i) communicated to and discussed by the Management Board and Supervisory Board; (ii) used to identify possible impacts, risks and opportunities; (iii) used to determine the materiality of ESG topics; (iv) used to set ESG targets; and (v) used to conduct and improve sustainability due diligence.

Material impacts, risks and opportunities

Reference: page 51, 53, 56, 57, 66, 76.

The 2023 DMA (re-evaluated in 2024 with no changes) identified three material topical standards: E1 Climate Change, E5 Resource Use and Circular Economy, and S1 Own Workforce. Topics in the bottom-left of the materiality matrix (including water and biodiversity) did not reach the threshold and are not material but considered important.

Climate change (E1): Transition risks include global carbon taxation; Aalberts quantified scope 1 and 2 exposure using IEA NZE2050 carbon prices (EUR 75/tonne CO2e in 2025 rising to EUR 250 in 2050), estimating the impact well below 1% of revenues along the net-zero-by-2050 trajectory. Physical risk and vulnerability assessments were carried out for sites in 2024 using IPCC RCP scenarios across 2030, 2050 and 2100 horizons. A material dependency exists on the limited availability of low-carbon materials (e.g. green steel), framed as an innovation gap.

Resource use & circular economy (E5): Aalberts is reliant on raw material supply; it monitors resource inflows (raw materials) and outflows (waste) and has set targets to counter resource depletion.

Own workforce (S1): Health and safety is a priority IRO, managed via prevention measures, local reporting channels for unsafe situations and grievance mechanisms.

Material ESG risks from the DMA are linked to overall risk management via the IRO table.

Processes to identify and assess material IROs

Reference: page 51, 52.

Aalberts performed a DMA in 2023 in accordance with ESRS 1, re-evaluated in 2024 with no changes to the results. It was conducted at Aalberts (group) level to prepare a consolidated statement, identifying IROs for own operations and the upstream and downstream value chain from both an impact- and financial-materiality perspective.

Methodology: developed with reference to the draft ESRS (November 2022). The assessment focused on residual rather than inherent risks and opportunities, considering organisational context and existing controls.

Three key process steps:

1. Identify the baseline and topic list - built from internal, external and sector-development analysis, with each ESG topic linked to ESRS sub-topics.
2. Perform stakeholder engagement - stakeholder mapping plus online interviews and in-person workshops with customers, shareholders, employees and (first-tier) suppliers.
3. Plot results - impact materiality assessed on severity (scale, scope, remediability) and likelihood; financial materiality on financial magnitude and likelihood.

Threshold: each aspect scored 0-5; a topic was material at a total score of 2.5 or higher (the midpoint). Results were reviewed and validated by the Management Board. Dependencies were not formally assessed in the 2023 DMA (a noted learning); consultation with affected stakeholders was limited (mainly employees).

Disclosure requirements covered

Reference: page 54, 93-95.

Aalberts provides an overview of the disclosure requirements complied with in its sustainability statement in the general and topical disclosure-requirement tables on pages 93-95, which also indicate progress towards CSRD (advanced progress, moderate progress, internal work initiated).

ESRS 2 General disclosures reported: BP-1, BP-2 (page 45); GOV-1 and GOV-2 (pages 46-47); GOV-3 (page 46); GOV-4 (page 48); GOV-5 (page 46); SBM-1 (pages 50, 51, 83); SBM-2 (page 48); SBM-3 (pages 49, 50, 53, 56, 57, 59-61, 66-68, 76-82); IRO-1 (pages 51-54); IRO-2 (pages 54, 93-95).

Topical standards reported (resulting from the DMA): ESRS E1 Climate Change, ESRS E5 Resource Use and Circular Economy, and ESRS S1 Own Workforce. The statement also addresses environmental and social topics considered important but not material, such as water and biodiversity (page 73 referenced).

Reporting on the financial effects of material IROs is being phased in over the coming years. The financial-data consolidation scope equals the financial statements' consolidation scope.

Aalberts net zero carbon transition plan

Reference: page 56-65 (Climate change); page 59 (policies, transition plan); page 58 (targets).

Aalberts has a net zero carbon transition plan, a key pillar of its 'thrive 2030' strategy, consisting of group targets, actions and progress to reach net zero carbon by 2050 or earlier. The plan and the environmental policy were approved by the Management Board and the Executive Team and are reviewed annually.

Ambition and 1.5 degC alignment

• Net zero carbon by 2050 or earlier, consistent with limiting global temperature rise to 1.5 degC (IPCC Sixth Assessment Report / Paris Agreement).
• Risk quantification uses the IEA Net Zero Emissions by 2050 Scenario (NZE2050), assuming a carbon price of EUR 75/tCO2e in 2025 rising to EUR 250 in 2050; estimated carbon-tax impact stays well below 1% of revenue along the trajectory.

Targets (page 58)

• Scope 1 and 2 (market-based, combined): -50% CO2 intensity by 2030 and -40% absolute emissions by 2030, base year 2018.
• Scope 3 Category 1 (purchased goods and services, raw materials measured): -30% CO2 intensity by 2030, base year 2024.
• Targets calculated using SBTi tools/methodology and follow a net zero by 2050 trajectory (reference: -50% absolute by 2030). NOT externally validated; not included in EU Paris-aligned Benchmarks.

Decarbonisation levers (named, page 59-61)

Six levers: energy efficiency, increasing renewable energy use, electrification (own operations); smart product design, circular solutions, value chain collaboration (value chain). Expected CO2 reductions per lever visualised on page 62.

Investments / locked-in emissions

Named 2024 investments (salt battery, cleanroom ventilation, electric boilers saving ~140 tCO2, 1,121 solar panels in Hungary ~520 MWh). Aalberts acknowledges locked-in GHG emissions from long-lived gas-fired heat-treatment infrastructure. No quantified climate-transition CapEx disclosed; states it will give more insight on resource allocation in coming years.

Policies related to climate change mitigation and adaptation

Reference: page 59 (Climate change: policies).

The Aalberts environmental policy sets out the company's commitment to sustainable entrepreneurship across the themes of its sustainability agenda: SDGs, net zero carbon, circular economy and water use. The policy addresses the material impacts, risks and opportunities related to climate change mitigation in the value chain and presents the main actions taken on:

• energy efficiency
• renewable energy
• electrification
• product design
• circular solutions
• value chain collaboration

The approach to becoming net zero carbon by 2050 or earlier is further elaborated in the net zero carbon transition plan, which sits within the overall 'thrive 2030' strategy and contains group targets, actions and progress.

Governance: Both the net zero carbon transition plan and the environmental policy have been approved by the Management Board and the Executive Team and are reviewed annually. Progress is reviewed quarterly within the HSRS network.

Climate change adaptation policies (e.g., flood emergency plans) and climate adaptation measures are integrated into the business continuity plans of the business teams (page 57). The text inspected does not state whether the environmental policy is publicly available.

Actions and resources in relation to climate change policies

Reference: page 59-62 (Climate change: actions); page 70-72 (EU taxonomy).

Aalberts identified six decarbonisation levers applied in own operations and the supply chain. Named 2024 actions:

Own operations

• Energy efficiency: smart sensors to map energy flows; efficient machinery; waste-heat recovery; behavioural change. Flextherm Eco 6 salt battery cut gas use by 648 m3 over five months (NL); hyper-efficient cleanroom ventilation (7x more efficient). Aligned with ISO 14001 / ISO 50001 where applicable.
• Renewable energy: purchasing and self-generating renewable electricity; 41% of group electricity renewable; 1,121 solar panels in Hungary (~520 MWh); BREEAM/DGNB-certified buildings.
• Electrification: replaced gas boilers with electric boilers (NL, ~140 tCO2 saved); 17 EV charging stations powered by own solar.

Value chain

• Smart product design: LCAs, material/weight reduction (brass-to-composite fittings in Norway, -70% weight).
• Circular solutions: waste recovery (1,400 L oil saved, Hungary); drum crusher (US).
• Value chain collaboration: coating to extend product life (US); forging redesign saving ~19 t material and 117.2 tCO2 (US); semicon module reuse programme (~200 kg waste saved per module).

Resources / EU taxonomy (page 70-72)

Most activities non-eligible under EU Regulation 2020/852 (interpreted narrowly as enabling activities). Some products fit activity 3.5 (energy-efficiency equipment for buildings). 2024 eligibility: revenue CCM 1.9%, CapEx CCM 0.9%, OpEx CCM 1.2%. 0% taxonomy-aligned across all objectives, as minimum safeguards (value-chain human-rights due diligence) not yet met.

Targets related to climate change mitigation and adaptation

Reference: page 58 (Climate change: targets); page 64 (scope 3 methodology).

Aalberts is committed to net zero carbon by 2050 or earlier. Targets are based on business-team sustainability improvement plans, approved by the Executive Team, and reviewed quarterly in the HSRS network. They were updated in 2024 (the prior target, -30% scope 1 and 2 CO2 intensity by 2026, was reached in 2023).

Current targets

Methodology and validation

• Calculated with Science Based Targets initiative (SBTi) tools and methodology; targets follow a net zero by 2050 trajectory.
• The 1.5 degC trajectory (exponential decay) implies a reference of -50% absolute emissions by 2030.
• Targets have NOT been externally validated, and Aalberts is not included in the EU Paris-aligned Benchmarks.
• Expected CO2 reductions per decarbonisation lever visualised on page 62.

The scope 1 and 2 figures cover 100% of locations. No separate climate-adaptation targets are quantified.

Energy consumption and mix

Reference: page 62-63 (Climate change: energy consumption and mix).

Total energy consumption fell 8.5% versus 2023. Renewable plus self-generated electricity rose to 41% of total electricity consumption (2023: 36%). Energy is measured in TJ and reported in MWh using DEFRA conversion factors under the operational control approach; scope 1, 2 and energy use cover 100% of locations.

Energy consumption (reported in TJ)

• Energy intensity 2024: 1,125 GJ per EUR million revenue (internal KPI), down 3.4% vs 2023; revenue EUR 3,149 million.
• No split reported for nuclear or biomass (not available). Aalberts does not use NACE categories, so no high-climate-impact-sector energy split is disclosed.

Gross scopes 1, 2, 3 and total GHG emissions

Reference: page 63-65 (Climate change: scope 1, 2 and 3 CO2 emissions).

Emissions are calculated per the GHG Protocol using the operational control approach. Only CO2 is reported (CH4, N2O, HFCs, PFCs, SF6, NF3 assessed not material). Absolute scope 1 and 2 fell 12.3% vs 2023. Scope 1 and 2 cover 100% of locations; scope 3 was first disclosed in 2023 and expanded in 2024.

GHG emissions (tonnes CO2e)

CO2 intensity (tCO2 per EUR million revenue)

Scope 3 covers Cat 1, 3 and 5 only; Cat 1 coverage rose to 79% of revenue (2023: 50%); activity-based data share is 5.7%. EEIO/EcoInvent and DEFRA factors used. Carbon offset (1,738 tCO2 via Verra) is excluded from gross emissions.

Reference: page 67

Policies related to resource use and circular economy

Circular economy is a key topic in the Aalberts environmental policy. The policy supports the implementation of circularity and waste management across the business and presents the main impacts, risks and opportunities related to circular economy together with the key actions taken to mitigate those risks across the value chain.

Policy direction:

• Reducing the use of virgin resources and stimulating the use of renewable resources.
• Minimising the use of natural resources while maximising the value of resources used ("do more with the same or do the same with less").
• Driving circularity across the entire value chain through smart product design, circular solutions and collaboration with business partners.

Aalberts notes that circular economy is most material for business teams that manufacture products rather than provide services; the heat and surface treatment businesses provide services and do not source raw materials at large scale (page 66). Material impacts, risks and opportunities are derived from the DMA on page 53.

Reference: page 67

Actions related to resource use and circular economy

Aalberts employs a tailored approach to circularity shaped by three considerations: the intrinsic value of products and benefits of retrieval, the feasibility of retrieval based on where products are deployed, and the structure of the value chain. Where collaboration is feasible, Aalberts sets up take-back systems enabling return, reuse, refurbishment and repair (e.g. the semiconductor business working with OEM customers, page 61). Where products are embedded in long-term infrastructure (valves and fittings in buildings), the company exercises influence at the design phase, prioritising durability and recyclability.

Smart product design:

• LCAs performed per ISO 14040 and ISO 14044, resulting in Environmental Product Declarations (EPDs); used to substitute materials with recycled materials or green steel.
• Next-generation BROEN ballomax valve: material consumption cut by 40%, weight reduced by 30%, carbon footprint reduced by 45% via one-weld laser technology.
• 100% of cardboard packaging made from 100% recycled materials at the integrated piping systems plant in France.

Acting on circular solutions:

• Scrap (e.g. brass) separated and sent for recycling or melted in own foundries for reuse as raw material.
• Investing in closed-loop systems to recycle turning/milling emulsion internally.
• Recycling all scrap metal, paper and cardboard at the hydronic flow control facility in Fishers, United States; eliminating paper assembly manuals via QR/Matrix codes (page 68).

Reference: page 66

Targets related to resource use and circular economy

In alignment with the thrive 2030 strategy, Aalberts has established voluntarily committed targets on raw materials and waste, based on sustainability improvement plans approved by the Executive Team and reviewed quarterly in the HSRS network.

Raw materials target: Inflows are managed through scope 3 CO2 intensity because approximately 92% of the upstream scope 3 footprint relates to category 1 (purchased goods and services). Scope covers the entire Aalberts group; heat and surface treatment business measurements will be added in coming years (see page 58).

Waste target: "Waste disposed" is defined as waste incinerated with or without energy recovery, landfilled, or handled by other disposal operations, steering on the most harmful layer of the waste hierarchy. The targets cover all layers of the waste hierarchy. Business teams also set operational KPIs such as percentage of recycled resources purchased and carbon footprint of new product design.

Reference: page 68

Resource inflows

Resource inflows are measured by raw materials, defined as the volume of procured materials and semi-manufactured products. Raw materials are measured over eight material streams, identified with a third party as the most common procured materials in the group; non-common procured materials are not measured. 2024 is the first year locations report quarterly on raw materials.

Material streams named by Aalberts (virgin vs recycled split, spend-based unless noted):

Copper is reported separately on an activity-based approach, with absolute tonnage: virgin 5,767 tonnes (79.4%) and recycled 1,497 tonnes (20.6%).

Tonnage is quantitative only for copper (5,767 t virgin / 1,497 t recycled). All other streams (brass, aluminium, steel, plastic, wood packaging, composite, other) report only a virgin/recycled percentage split (spend-based), not tonnage. Recycled-content percentages are stated for every stream as shown above. Aalberts states it does not use biological materials. In 2024, approximately 2.4% of CO2 emissions related to raw materials was collected through activity-based data.

Reference: page 68

Resource outflows

Products and materials: Aalberts does not report on a consolidated basis on expected durability, reparability and rates of recyclable content per product group, due to the large number of different products across the group; this information exists for several products at business-team level. Example: the redesigned Flexon expansion vessel for building customers incorporates alternative materials and advanced manufacturing techniques, enhancing service life and reducing lifecycle CO2 emissions by approximately 66% versus competing products.

Waste: 2024 is the first year business teams report quarterly on waste (following a 2023 pilot). Primary data from waste handlers covers most locations; where unavailable, Aalberts measures waste itself. Waste measurements cover 100% of revenue in 2024.

Recovery vs disposal (2024):

• 75% of total waste generated was recovered; the main recovered category was metal scrap from turning and milling, recycled in most cases.
• 25% of total waste generated was disposed; the main disposed categories were chemical waste and emulsions, including unavoidable hazardous waste.

Action plans for reduction/elimination of hazardous substances (e.g. CMR substances) are in place, and alternatives are applied (e.g. IVD coatings substituting chrome and cadmium coatings, page 69). Detailed waste tonnages are captured under the Waste disclosure.

Reference: page 69

Waste

Resource outflows are measured by waste generated in operations during the reporting year, divided into categories (paper/cardboard, wood, plastic, electronic waste, metal scrap, chemical waste, emulsions and other), with a distinction between hazardous and non-hazardous waste. Waste management is split between recovery (preparation for reuse, recycling, other recovery) and disposal (incineration with/without energy recovery, landfilling, other disposal).

Waste table 2024 (tonnes; hazardous/non-hazardous split as % of each row):

Notes: waste is reported in tonnes; waste intensity (4,587) is calculated on gross revenue (page 131); no split into radioactive waste is available within hazardous waste; waste streams are not disclosed per sector or activity. Headline split: 75% recovered, 25% disposed; recovery is dominated by recycling (27,745 t) of metal scrap from turning/milling, while disposed waste is mainly chemical waste and emulsions.

Policies related to own workforce

Reference: page 77 (health & safety policy); page 80 (attraction/retention, human rights, DE&I, speak up!); pages 100-101 (business integrity); per DR table page 95 (S1-1 on pages 77, 80) and datapoints table page 97 (S1-1 datapoints 20, 21, 22, 23 on pages 48, 77, 80, 100, 101).

Health, safety and well-being policy (page 77)

Covers all employees; the foundation for preventing, mitigating and remediating health and safety impacts and risks. Approved by the Management Board and Executive Team and reviewed annually.

Human rights policy (page 80)

Ensures a safe working environment in compliance with the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the OECD Guidelines for Multinational Enterprises. Includes policies against child labour, forced labour and human trafficking. A Supplier Code of Conduct extends standards to suppliers.

Diversity, equity and inclusion policy (page 80)

Central to promoting a diverse workforce; focuses on succession planning and equal opportunities in recruitment and development programmes.

Global speak up! policy (page 80)

Lets employees voice concerns on human rights and business integrity; includes protection of individuals, including workers' representatives, from retaliation. All group policies apply to the complete Aalberts workforce, with accountability held by the Executive Team.

Processes for engaging with own workers and workers' representatives

Reference: page 80; also page 83 (engagement surveys); per DR table page 95 (S1-2 on pages 80, 83).

Aalberts prioritises engaging with its workforce and their representatives to address actual and potential impacts on employees. Locally, impacts are discussed and communicated through workers' councils and representatives. Globally, Aalberts engages directly with employees through biannual townhalls and an Aalberts employee social channel to promote share and learn.

The People & Culture (P&C) network is leveraged to facilitate indirect engagement where applicable. The chief people & culture officer is the most senior role with operational responsibility for this engagement, ensuring interactions are meaningful and that insights inform Aalberts' approach.

In 2024 multiple local engagement surveys were performed (page 83), resulting in corresponding local action plans (e.g. employee-driven engagement committees at production facilities of Aalberts integrated piping systems Americas). In 2025 Aalberts aims to develop a single One Aalberts engagement survey with a corresponding metric.

Processes to remediate negative impacts and channels to raise concerns

Reference: page 80; also page 76 (local channels for unsafe situations and near misses); per DR table page 95 (S1-3 on page 80) and datapoints table page 97 (S1-3 datapoint 32(c) on pages 80, 100).

Aalberts addresses material negative impacts on its workforce through both local and global mechanisms. Locally, internal and external confidentiality advisors and speak-up/whistleblower processes let employees raise concerns safely and confidentially. For business integrity issues, including human rights concerns, a global speak up! mechanism is in place; concerns better suited for local resolution are routed to the relevant local business segment.

Aalberts tracks and monitors all issues and the effectiveness of solutions through the corresponding reporting channels. For speak up! specifically, policies protect individuals, including workers' representatives, from retaliation. On health and safety (page 76), local channels are established to report unsafe situations and near misses, and local grievance mechanisms allow employees to flag safety issues not properly addressed by management.

Taking action on material impacts on own workforce

Reference: pages 77, 80-83; per DR table page 95 (S1-4 on pages 77, 80-83).

Health and safety actions (page 77)

Five-pillar approach (monitoring, awareness, organisation/lead by example, compliance, action). 2024 actions included a standardised "ONE Aalberts" LTI root-cause format with notification flow to the CEO, a Code of Conduct campaign led with safety, a health and safety day in the Netherlands, and health and safety visits in France, the Netherlands and Germany.

Attraction and retention actions (pages 80-82)

Global initiatives driven by the chief people & culture officer and the P&C network: creation of the chief people & culture officer role, succession planning, leadership development programmes, a restructured two-year traineeship (four assignments), an employer branding campaign, and collaboration with vocational colleges and universities.

Effectiveness and futureproofing (pages 81-82)

Succession planning completed for the top 30 leaders, with the aim to extend to the top 100 in 2025. The P&C network monitors initiative impact and convenes to determine actions if further negative impacts are identified.

Targets related to own workforce

Reference: pages 76, 79; per DR table page 95 (S1-5 on pages 76, 79).

Health and safety targets (page 76)

Multi-year LTIFR targets set per business team. In 2024 Aalberts reached its target of an LTIFR below 5 by 2026 and set a new target of an LTIFR below 1.5 by 2030, with the ambition of working towards zero accidents. Aalberts is committed to avoiding fatalities and drastically reducing serious accidents. Targets are set in business team improvement plans and reviewed through the HSRS network.

Workforce development and diversity targets (page 79)

Targets to develop 30% or more of the target group (production workers with management responsibilities and all office employees) in leadership programmes by 2026 (baseline 2018). Targets set with the P&C network and approved by the Executive Team; quarterly measured, consolidated and reviewed. A gender diversity target of a minimum 30% women at senior leadership level also applies (page 84). Aalberts plans a One Aalberts engagement survey and metric in 2025.

Characteristics of the undertaking's employees

Reference: page 83 (workforce by gender and contract type); page 84 (FTE by country); per DR table page 95 (S1-6 on page 83).

In 2024, 12,525 employees (FTE) worked at Aalberts, a decrease of 4.59% versus 2023. All figures are reported in FTE at the end of the reporting period. The most representative figure in the financial statements is 13,774, the 2024 average total workforce (employees and non-employees).

Employees by gender and contract type (FTE, end of 2024)

FTE by country (>10% of workforce, page 84)

Aalberts has activities in over 50 countries.

Collective bargaining coverage and social dialogue

Reference: page 85; per DR table page 95 (S1-8 on page 85).

Aalberts respects freedom of association and the right to collective bargaining as fundamental rights. Coverage is reported as the percentage of FTEs of the own workforce covered by a collective bargaining agreement, with countries within the EEA representing over 10% of total FTEs shown by country and non-EEA shown by region.

Collective bargaining coverage and social dialogue (page 85)

Note: Aalberts discloses coverage and representation by band rather than a single group-wide percentage.

Health and safety metrics

Reference: page 78; per DR table page 95 (S1-14 on page 78) and datapoints table page 97 (S1-14 datapoints 88(b), 88(c), 88(e) on page 78).

The health and safety performance and management system covers 100% of Aalberts' own employees. For the fourth consecutive year there were no fatalities. Aalberts employed 12,525 FTE in 2024. Health and safety measurements cover lost time injuries (work-related injuries causing absence of a day or longer); work-related ill health is not in scope, and metrics are not yet measured/disclosed for non-employees.

Health and safety metrics

LTIFR is measured as the number of lost time injuries per one million working hours. Aalberts notes its reporting on the number of lost days due to LTIs is currently insufficient and that it is committed to phase in this reporting in the coming year.

Remuneration metrics (pay gap and total remuneration)

Reference: page 126; per datapoints table page 97, S1-16 datapoint 97(b) (annual total remuneration ratio) is reported on page 126, while datapoint 97(a) (gender pay gap) is assessed as not material.

Aalberts discloses the components needed for the annual total remuneration ratio in its remuneration table. For 2024 the CEO (Stephane Simonetta) total remuneration was EUR 2,120 thousand (fixed 1,097; STI 488; LTI 535). The average remuneration on a full-time-equivalent basis of employees of the group was EUR 67.6 thousand in 2024 (2023: 62.7; 2022: 60.2). On these figures the ratio of CEO total remuneration to average employee remuneration is approximately 31:1 for 2024.

The gender pay gap (S1-16 datapoint 97a) is assessed as not material per the EU datapoints table (page 97).