Barco

The role of the administrative, management and supervisory bodies

Board of Directors Composition

Barco's governance structure is one-tier, operating pursuant to the company's articles of association and corporate governance charter. The Board of Directors meets the gender diversity requirement laid down in article 7:86 of the Code of Companies and Associations. Moreover, a majority of directors is independent.

Situation on 7 February 2025:

*date on which the term of office expires: end of the annual meeting

Board Composition Metrics:

• Total directors: 5 independent directors out of 7 total
• Directors with 5+ years of seniority: 5
• Female members: 3
• All directors hold or have held senior positions in leading international companies or organizations

Changes to the Board of Directors in 2024

The General Meeting of 25 April 2024 re-appointed Mrs. Hilde Laga and Mrs. Lieve Creten as independent directors as referred to in article 7:87 Code of Companies and Associations. The Board of Directors has subsequently reconfirmed their mandates as member of the Audit Committee and the Remuneration and Nomination Committee.

On 25 June 2024, Mr. Charles Beauduin resigned as co-CEO. The Board of Directors has appointed Mr. Charles Beauduin as its Chair succeeding to Mr. Frank Donck as of 1 September 2024. Mrs. An Steegen became the company's sole CEO.

Since Mr. Charles Beauduin was co-CEO of the company, the Board of Directors duly considered the implications of his appointment pursuant to article 5.8 of Belgian Code on Corporate Governance.

Since 1 January 2015, Mr. Charles Beauduin was the chairman of the company's Board of Directors. Mr. Charles Beauduin and Mrs. An Steegen became the company's CEO's on 1 September 2021 and 1 October 2021 respectively. Since, Mr. Charles Beauduin and Mrs. An Steegen have assumed the executive leadership of the company in close tandem. They redesigned the company's organizational structure to empower the business units and create more customer and market responsiveness, implemented the focused factories strategy, including the construction of two new manufacturing plants in China, and accelerated the R&D roadmap leading to increased new product introductions from 2024 on. After 3 years of successful collaboration, Mr. Charles Beauduin has assumed again his previous role of chairman of the Board of Directors, while Mrs. An Steegen will continue to build on the path paved during the previous years. Considering Mr. Charles Beauduin's previous chairmanship, his leadership style, his ability to act as a sounding board, and his other professional duties outside the company, the directors opine that the re-appointment of Mr. Charles Beauduin will not hamper the CEO's autonomy. Moreover, the Audit Committee and the Remuneration and Nomination Committee will ascertain at regular intervals that the CEO's autonomy is preserved. Individual members of these committees have agreed to make themselves available as sounding board as well to the CEO if need be.

Board Committees with Sustainability Oversight

Audit Committee

The Audit Committee is composed of four members. Mrs. Lieve Creten, who acts as Chair, Mr. Frank Donck, Mrs. Hilde Laga and Lord Sassoon. All members are independent directors. The Audit Committee's members have relevant expertise in financial, accounting and legal matters as shown in the biographies on Barco's corporate website.

The Audit Committee met five times during 2024. All Audit Committee members were present during all the meetings.

The Audit Committee reported the outcome of each meeting to the Board of Directors. The minutes of each Audit Committee meeting were submitted to the Board of Directors.

The CFO and the VP Corporate Finance attended all regular meetings. The CEO An Steegen was present at all meetings and former co-CEO Charles Beauduin attended all meetings until his step-down as co-CEO as of 1 September. The Group's internal auditor was present in two meetings and the Group's external auditor PwC Bedrijfsrevisoren BV was present in 3 meetings. The Group's data protection officer was invited to one audit committee meeting.

Key Sustainability-Related Activities:

• The Committee also assessed in its quarterly meetings the adequacy and appropriateness of internal control policies and internal audit programs and their findings
• Matters relating to accounting policies, financial risks and compliance with accounting standards. Compliance with statutory and legal requirements and regulations, particularly in the financial domain, was also reviewed
• Review of critical accounting judgements and uncertainties, including impact of the macro-economic environment
• Review of the Group's key overall risk areas, risk management process and control (including risk assessment, IT risks and ESG process)
• Review of the external audit plan and the auditor's review of the double materiality analysis, the gap analysis done on the implementation of CSRD, the related action plan and the Company's readiness to comply with the CSRD requirements for the year 2024
• Review of the report provided by the Group's compliance officer on the application of Corporate Governance and the Code of Conduct. Regular updates on GDPR were provided by the Group's data protection officer

Remuneration and Nomination Committee

The Remuneration & Nomination Committee fulfils the mission imposed on it by law and meets at least three times per year, as well as whenever the Committee needs to address imminent topics within the scope of its responsibilities. The CEO is invited to meetings, except for matters that concern her personally. The meetings are prepared by the Chief HR Officer, who attends the meetings.

In 2024, the Remuneration and Nomination Committee met four times.

Key Sustainability-Related Activities in 2024:

• Performance review of CLT members, 2023 bonus results validation, 2024 bonus objective setting, 2024 merit budget approval, 2024 Stock Options grant and 2024 engagement survey
• Proposed transition of Belgian based CLT members to self-employment status and their contractual arrangements
• Focusing on Barco's Performance Management approach as from 2025
• Focusing on Barco's Diversity & Inclusion strategy execution
• Focusing on the Barco Bonus Plan design as from 2025
• Focusing on the shift from two CEOs to one sole CEO, as well as on the composition of the Barco Core Leadership Team

Technology Committee

The Technology Committee is an advisory body to the Board of Directors. The Committee is composed of three members: Mr. Charles Beauduin (Chair), Mr. Ashok Jain and Mrs. An Steegen.

The Technology Committee assists the Board of Directors in fulfilling its oversight responsibilities by preparing technology related matters that could influence Barco's strategy, such as the identification of, and investments in, future technologies through internal resources or technology acquisitions, technology roadmap strategy, operational performance and technology trends that may affect portfolio performance.

The Technology Committee reviews incubators and seed projects, and major technology investments. These investments might also include technology acquisitions.

In 2024, the Technology Committee met twice. The Committee organized specific working sessions by division, thus ensuring appropriate depth and focus for each of Barco's divisions. The Committee also performed the annual general review of foundational technologies as included in its strategic plan update presented to the Board.

Board Meeting Attendance in 2024

Average total attendance rate: 99%

Board Activities Related to Sustainability

At every meeting, the Board of Directors reviewed and discussed the financial results as well as the short to mid-term financial forecast of the company. At the beginning of the year, upon recommendation by the Audit Committee, the Board approved the financial results of 2024 and proposed the dividend for approval by the shareholders.

The Board, in close concert with the Core Leadership Team, reflected on each of the divisions and business units' strategies for the short to mid-term, discussed and decided upon the organic growth initiatives, considered several inorganic growth opportunities and approved the 2025 financial budget.

The Board closely monitored the impact of the macro-economic developments in the regions wherein the company is present, in particular China and the USA, as well as geopolitical conflicts and resulting trade sanctions on the company's operations and financial results.

Intermediate meetings are held via teleconference call if need be. All the Board of Directors meetings took place at Barco's headquarters in Belgium with some directors occasionally attending via videoconferencing.

One meeting was closed with a dinner attended by several members of the Core Leadership Team to foster closer interaction between the directors and the executive managers of the company.

Board Evaluation

Regularly assessing the size, composition, functioning and performance of the Board of Directors and its Committees as well as the interaction with the executive management is an essential element of corporate governance.

The principle of Board assessment is laid down in the Corporate Governance Code as well as Title 1 (1.5) of the company's Corporate Governance Charter.

The Board of Directors carries out self-assessments under the supervision of the Chair with the aim to evaluate its functioning and that of its Committees.

Following the (re-)appointment of (new) directors, the different Committees' composition has been reviewed to facilitate interactions as efficiently as possible between the Board of Directors and its Committees.

Executive Management - Core Leadership Team

Barco NV is managed by a Core Leadership Team ('CLT') which comprises key officers from business units and functions. The CLT operates under the chairmanship of the Chief Executive Officer and shares responsibility for the deployment of Barco's strategy and policies, and the achievement of its objectives and results.

Core Leadership Team Composition (as of 2024):

• 13 CLT members total
• 10 male, 2 female (plus CEO)
• 15% female representation in CLT (2 heads)
• 4 non-Belgian CLT members

CLT Members (situation 2024):

• An Steegen - CEO - Barco nv (BE)
• Gerwin Damberg - EVP Cinema - MTT Innovation Inc. (CA)
• Ann Desender - CFO - Barco nv (BE)
• Dirk Feyants - EVP Diagnostics - Barco nv (BE)
• Johan Fornier - EVP Surgical & Modality - Barco nv (BE)
• Ta Loong Gan - EVP Immersive Experience - Barco Singapore Pte Ltd (SG)
• Stijn Henderickx - EVP Meeting Experience - Barco nv (BE) [left CLT: 7 April 2024]
• Anthony Huyghebaert - CHRO - Barco nv (BE)
• Rob Jonckheere - EVP Global Operations - Barco nv (BE)
• Tom Sys - EVP Barco Control Rooms - Barco nv (BE)
• Jan van Houtte - EVP Meeting Experience - Barco nv (BE) [joined CLT: 1 April 2024]
• Kurt Verheggen - General Counsel - Barco nv (BE)
• Philippe Verlinde - CDIO - Barco nv (BE)
• Kenneth Wang - MD Barco China - Barco Visual Electronics Co., Ltd. (CN)

With strategic long-term succession planning being a core element in the organizational development strategy, Barco was able to strengthen its Core Leadership Team with one internal promotion.

Sustainability Governance

Sustainability at Barco is managed by a permanent Executive sustainability steering committee, which consists of our CEO, the Chief HR officer, CFO, Executive Vice President Operations and the group Sustainability Office. Depending on the topic, other executive members are invited (e.g., business unit heads). Under the leadership of the group Sustainability Office, a network of sustainability leads and managers across Barco divisions prepare the meeting topics based upon the local execution of the sustainability plans. The committee met five times in 2024.

Besides overseeing impacts, risks and opportunities linked to material topics, the Executive sustainability steering committee is actively involved in setting and monitoring the targets related to these, and annually presents these to the Committee for prevention and protection at work (CPBW). In the course of 2024, BU Sustainability leads were assigned to steer BU specific sustainability roadmap. In this way, targets related to impacts, risks and opportunities were even more integrated in the strategic management & financial plan of every business unit.

As part of our Sustainability efforts, the Board of Directors and the Audit Committee supervise the sustainability focus areas (materiality) and the progress made towards the sustainability targets and our sustainability reporting. The Audit Committee also advises on sustainability priorities, targets and progress and was actively involved in the update of our sustainability strategy in 2024. Board oversight is established to ensure reporting is in line with sustainability directives and to evaluate whether the company, supported by its external sustainability experts, has sufficient sustainability expertise. Representation of employees and other workers on administrative, management and supervisory bodies is facilitated through our social dialogue & employee representation policies.

Sustainability is integrated in Barco's corporate risk management procedures and firmly embedded into our processes, at all levels. For every key management, assurance and supporting process, Barco has developed and implemented a systematic risk management approach, consisting out of five steps: identification, analysis, evaluation, response and monitoring. Managing impacts, evaluating opportunities and mitigating risks are a core task of the executive management and all employees with managerial responsibilities. The Executive sustainability steerco regularly updates the Board of Directors on the progress and performance of Barco's sustainability initiatives. These updates ensure transparency and accountability, and support decision making on actions or investments related to material impacts, risks and opportunities, implementation of due diligence, and results and effectiveness of policies, actions, metrics and targets.

A more detailed description of our sustainability governance is available in our Sustainability chapter and on Barco's corporate website.

Integration of sustainability-related performance in incentive schemes

Reference to Corporate Governance Report

Barco discloses the integration of sustainability-related performance in incentive schemes in its Corporate Governance report (CG page 10), as indicated in the ESRS cross-reference table (page 51).

Governance and Monitoring

The decarbonization roadmap and targets are defined and validated by both the Executive Sustainability Steerco and the Board of Directors. Progress vis-à-vis the 2025 carbon emission reduction target is monitored at the Executive Sustainability Steerco meetings in the presence of the CEO, CFO, CHRO, COO and business unit EVPs.

More details on the incentive schemes related to climate change can be found in Barco's Corporate Governance report.

Sustainability KPIs Linked to Credit Facilities

Barco NV has 75 million euro of bilateral committed credit facilities linked to Barco's sustainability KPIs with a selected group of commercial banks.

Note: Full details on which roles are covered, specific sustainability KPIs tied to remuneration (e.g., GHG reduction, safety, diversity targets), weighting percentages, performance periods, threshold/target/maximum performance definitions, and actual payout disclosure are referenced to the Corporate Governance report which was not included in the provided excerpts.

Strategy, business model and value chain

Description of products/services and key markets

Barco's organization is set up in three divisions serving different markets:

Healthcare Division (29% of sales)

• Diagnostic Imaging: radiology displays, home reading displays, OneLook mammography display systems, pathology displays
• Surgical & Modality: surgical displays, digital operating room portfolio (video-over-IP technology), custom medical displays for modality imaging, support services

Enterprise Division (27% of sales)

• ClickShare: wireless presentation and collaboration systems including ClickShare Video Bar for small meeting rooms
• Control room solutions: TruePix displays, Barco CTRL software for control rooms

Entertainment Division (44% of sales)

• Cinema projectors: laser cinema projectors, HDR Lightsteering technology
• Permanent installations: projectors for various applications

Significant markets/geographies

Barco has sites in nearly 30 countries and R&D and/or manufacturing facilities in 10 countries.

Sales by geography per division:

• The Americas: 47%
• EMEA: 32%
• APAC: 21%

Geographical footprint includes:

• Americas: Brazil, Canada, Colombia, Mexico, United States
• Asia-Pacific: Australia, China, Hong Kong, India, Japan, Malaysia, Singapore, South Korea, Taiwan
• Europe, Middle East & Africa: Belgium, France, Germany, Italy, The Netherlands, Norway, Poland, Spain, Saudi Arabia, Sweden, Turkey, United Arab Emirates, United Kingdom

Manufacturing facilities:

• Belgium (Kortrijk & Kuurne)
• Italy (Saronno & Lainate)
• China (Wuxi & Suzhou)
• India (Noida)
• United States (Duluth & Georgia)

Number of employees by geography

Total employees at year-end 2024: 3,243 (including integration of Cinionic)

Geographical distribution:

• EMEA: 53%
• Asia-Pacific: 33%
• The Americas: 14%

Per functional group:

• Operations: 42%
• Research & development: 29%
• Sales & marketing: 21%
• General & administration: 8%

Gender:

• Male: 70%
• Female: 30%

Total revenue by significant ESRS sustainability matter

Not explicitly disclosed by sustainability matter.

Sustainability-related goals embedded in the business model

Barco has integrated sustainability into its corporate strategy through its "Sustainable Impact Journey" with three pillars:

Protecting Earth:

• Reduce total Greenhouse gas emissions by -62% (versus 2015)
• 68% of total revenues from eco-labeled products (86% of all new product introductions)
• Science Based Targets initiative commitment

Engaging People:

• Employee engagement score of 73% in 2024 (target 75%)
• Focus on diversity & inclusion with 'one Barco' DNA
• Continuous learning and development programs

Empowering Society:

• Community engagement focusing on health and (STEAM) education
• Product quality, safety & security programs
• Responsible and resilient supply chain initiatives

Strategic levers:

• Innovation for impact: 13.8% of revenue spent on R&D, with 962 patents held at year-end 2024
• Focused factories: Dedicated manufacturing facilities in Suzhou (healthcare) and Wuxi (projectors) in China, alongside facilities in Belgium and Italy
• Sustainable impact journey: Centralized sustainability governance under CEO An Steegen

Description of upstream and downstream value chain

Upstream value chain:

• Component & material sourcing from suppliers globally
• Focused factories strategy with manufacturing in China (Wuxi & Suzhou), Belgium (Kortrijk & Kuurne), Italy (Saronno & Lainate), India (Noida), and United States
• Local sourcing of components to improve gross profit margin
• Balancing sourcing of essential components (e.g., semiconductors) through greater flexibility in component substitution
• Insourcing production of critical subassemblies
• Supplier sustainability requirements including carbon footprint data collection

Downstream value chain:

• Sales & installation through direct sales teams and channel partners
• Distributors, resellers, partners, and integrators
• Customers and end-users across Healthcare, Enterprise, and Entertainment sectors
• Transport & distribution via sea, air, and land freight
• Utilization & maintenance including connected devices (100,000+ diagnostic displays connected to QAWeb Enterprise)
• Multi-year Cinema-as-a-Service contracts delivering recurring service revenue
• OPEX business models including ConnectedCare and ManagedCare subscription platforms
• End-of-life management including product return and recycling programs in countries representing 69% of revenues

Key inputs and outputs

Key inputs:

• Raw materials and components: 4,869 tonnes of finished products assembled in 2024
• Energy consumption: 35,404 MWh total energy in 2024 (70% from renewable sources)
• R&D investment: 13.8% of revenue
• Workforce: 3,243 employees globally
• Manufacturing facilities across 6 countries with 10 sites

Key outputs:

• Total revenue 2024: €947 million
• Products shipped across three divisions (Healthcare 29%, Enterprise 27%, Entertainment 44%)
• GHG emissions: Total scope 1, 2 & 3 emissions reduced by 62% versus 2015 baseline
• Waste generated: 1,776 tonnes (81% recycled)
• New products: 86% of new hardware products in 2024 carried Barco ecolabel
• Patents: 19 new patent filings in 2024

Interests and views of stakeholders

Stakeholder engagement approach

Barco attaches great importance to stakeholder engagement: outside and inside views help us identify and prioritize emerging trends and align our strategy, policies, and actions with the interests of our broad ecosystem – from the Board of Directors, shareholders, and employees through to distributors, customers, suppliers, and others.

Sustainability is a joint effort. To ensure our products shape the healthcare, entertainment, and collaboration of tomorrow in a sustainable manner, we consider the impact of every step in our value chain, across the lifecycle of our products, from the sourcing of raw materials to the disposal of our products.

Rather than merely consulting our stakeholders, we collaborate with them. We team up with business partners, academics, industry associations, etc. to deliver sustainable impact. In addition, we actively participate in targeted external global initiatives that promote sustainability, such as the Science Based Targets initiative, Carbon Disclosure Project, EGN, etc.

Identified key stakeholder groups

The Barco ecosystem contains the following key internal and external stakeholder groups:

Value chain:

• Board of Directors and senior management
• Shareholders & investors
• Employees
• Distributors, resellers, partners, and integrators
• Customers and end-users
• Suppliers

Ecosystem:

• Society representatives
• Government & public authorities
• Academics, industry associations, NGOs, key opinion leaders
• Press & general public
• Banks & analysts

This list does not imply any ranking or priority.

Barco distinguishes between affected stakeholders (A) and users of sustainability information (U) in line with CSRD.

How the company engages with stakeholders

We are committed to listening actively to our stakeholders and understanding their perspectives. As explained, Barco involved its key stakeholders in the double materiality assessment. Beyond this, we maintain continuous dialogue with our key stakeholders to explore their positions, concerns and expectations. The outcome of these continuous interactions are carefully analyzed as part of our due diligence process and shape our business efforts, projects and processes, ensuring alignment with stakeholder interests and views.

Engagement methods and frequency by stakeholder group

Integration into strategy and business model

The Board, Audit Committee and Core Leadership Team are informed about stakeholder insights related to Barco's impacts, risks & opportunities (IROs), which are incorporated into our corporate and sustainability strategy. Examples include enhanced collaboration with suppliers and the integration of business partner expectations into the strategic management plans of each business unit.

Double materiality assessment stakeholder engagement

As part of the double materiality assessment conducted in 2023-2024:

Participation:

• We received 207 answers from survey respondents and conducted 77 interviews
• Across the different stakeholder groups the participation rate ranged between 21% and 90%

Method:

• Stakeholder engagement plan identified groups to engage with and clarified their inclusion in the ESG topic identification, impact materiality assessment, financial materiality assessment, and/or validation and reporting
• Specific engagement methods determined for each stakeholder group: through interviews, surveys or focus groups
• Internal stakeholders were asked about all shortlisted topics, while external stakeholders were asked about a selection of topics, based on their relevance and the expertise of each group

Integration:

• When consolidating the scores from different stakeholder answers, we applied varying weights for each stakeholder group in determining the impact materiality
• Internal stakeholders got a smaller weight than external stakeholders since we assume it is more difficult for them to adhere to an outside-in view (too much focus on risks and opportunities for Barco)
• Regarding financial materiality, we did not assign weights, meaning that each person's response is equally important regardless of their stakeholder group

Material impacts, risks and opportunities and their interaction with strategy and business model

Material impacts, risks and opportunities (IROs)

Barco's double materiality assessment identified the following material topics, each with associated impacts, risks and opportunities:

Climate change & energy (E1)

Sustainable lifecycle management

Circular economy & waste (E5)

Own workforce (S1)

Consumers and end-users (S4)

Innovation, technology & product portfolio

Responsible & resilient supply chain

Double materiality matrix

Barco's double materiality assessment resulted in the following material topics plotted according to impact materiality (y-axis) and financial materiality (x-axis):

High impact materiality AND/OR high financial materiality (material topics):

• Climate change & energy
• Sustainable lifecycle management
• Circular economy & waste
• Talent & career development
• Product quality & safety
• Responsible & resilient supply chains
• Innovation, new technologies & product portfolio
• Customer experience
• Diversity & inclusion
• Corporate governance & strategy
• Business ethics
• Information security

Medium or low materiality (non-material topics):

• Community engagement & relations
• Health, safety & well-being

The assessment confirms that Barco has been focusing on the right topics, i.e. topics where the impact on society or the impact on Barco is the highest. Moreover, diversity & inclusion and circular economy and waste appear to be strategically important topics to our stakeholders. In the course of 2024, the Barco leadership decided to include corporate governance and business ethics as a (financial) material topic, taking into account our business activities.

Interaction with strategy and business model

Climate change scenario analysis and resilience

Barco assessed climate resilience by analyzing climate-related transition and physical risks and opportunities. The company used IPCC Representative Concentration Pathway (RCP) scenarios:

• IPPC RCP 8.5 (BAU 3.2-4.5)
• IPPC RCP 4.5 (2.0-3.0)
• IPPC RCP 2.6 (1.5-2.0)

For three timeframes:

• Short term: 0 to 3 years
• Medium term: 3 to 10 years
• Long term: 10 to 30 years

Climate-related transition risks identified:

• Increased pricing of GHG emissions (policy type)
• Enhanced emissions reporting obligations (policy type)
• Mandates on and regulation of existing products and services (policy type)
• Mandates on and regulation of existing production processes (policy type)
• Costs of transition to lower emission technology (technology type)
• Changing customer behavior (market type)
• Increased cost of raw materials (market type)
• Increased stakeholder concerns (reputation type)

Climate-related transition opportunities identified:

• Successful investment in new technologies (technology type)
• Development/expansion of low emissions goods & services (policy type)
• Development of climate adaptation, resilience and insurance risk solutions (policy type)
• Shift in consumer preferences (reputation type)
• Access to new markets (market type)
• Resource efficiency (market type)

Physical risks: Acute physical risks identified include earthquake, tropical cyclone, storm, flood, wildfire, lightning and tornado at key manufacturing & distribution locations (Belgium, Italy, United States, India, China). In the Business As Usual scenario (IPPC RCP 8.5), the highest sensitivity was estimated for tropical cyclone, lightning and tornado. The impact of the residual physical risk is considered insignificant considering current mitigation measures.

In the IPPC RCP 2.6 (1.5-2.0 degrees) scenario, the sensitivity of transition risks was estimated highest for:

• Mandates on and regulation of existing products and services
• Mandates on and regulation of existing production processes
• Costs of transition to lower emission technology
• Increased cost of raw materials

Integration into business strategy

Climate-related IROs are integrated into Barco's existing business strategy and processes. The company continuously monitors political/legislative, technological, market and reputational developments. In this way, climate resilience is embedded in Barco's business strategy.

Reducing negative impact: Barco's decarbonization roadmap includes targets and actions related to climate change mitigation as well as to energy efficiency and renewable energy deployment. Key decarbonization levers include:

• Technology shift: shift from traditional lamp-based to laser projectors, shift towards more software solutions (emissions related to use of sold products, scope 3)
• Ecodesign program (emissions related to use of sold products, scope 3)
• Modal shift from air to sea freight transport (upstream transportation and distribution - scope 3)
• Reduction of energy consumption (fuel and energy related activities – scope 1)
• Electrification of company fleet (fuel and energy related activities – scope 1)
• Switch to renewable electricity in manufacturing and R&D plants (fuel and energy related activities – scope 1)
• Increase recycling rate of company waste (waste generated in operations - scope 3)

Innovation integration: Sustainability is one of five foundation pillars in Barco's innovation roadmap. From the outset of design processes, environmental impact of materials, energy consumption, packaging, shipping, etc. is considered, allowing adjustments as needed. Barco's solutions also contribute to customer sustainability goals (e.g., laser projectors use 50% less energy than traditional lamp-based models; ClickShare facilitates hybrid meetings, reducing business travel).

Product lifecycle management: Barco's ecodesign program aims to lower the environmental footprint of products at every stage of their life cycle. The ecoscore tool (released 2017) assesses products on four domains: energy performance, use of materials, packaging/logistics, and end-of-life optimization. The tool fosters ecodesign and thereby indirectly reduces environmental impact related to upstream sourcing, production, use, and downstream end-of-life.

Circular economy: Through circular offerings, Barco aims to enable long-term dematerialization while providing customers with an increasingly circular experience. Through smart design and services, the company aims to reduce waste and maximize the utility and value of products and components for as long as possible. Next steps include exploring more valuable circular offerings, such as refurbishments, remanufacturing, and 'as-a-service' models.

Supply chain: At Barco, customer and market demands received via tenders and purchase orders are taken into account. Market demands are mainly driven by requirements of healthcare integrators and European governments in line with green deal policies. On the supply side, sustainability risks are increasingly integrated in business review meetings with suppliers. In the ecodesign program, Barco evaluates the environmental impact of insourced components and promotes the use of lower impact materials.

Technology risk management: As part of the innovation process, every quarter Barco evaluates and checks ideas against a number of criteria including sustainability IROs. In the subsequent new product introduction (NPI) process, the eco scoring methodology ensures that products are properly ecodesigned and increase energy efficiency at the customer.

Financial planning and resilience measures

Barco aims to further strengthen its ability to adjust and/or adapt its existing business strategy in relation to climate change. This includes:

• Further investigating access to finance
• Ability to redeploy, upgrade or decommission existing assets
• Adapting product & services portfolio
• Possible reskilling of workforce
• Analyzing the cost of transitioning to lower emission technologies
• Analyzing potential increased cost of raw materials

In 2024, no significant specific OPEX or CAPEX has been added to the regular budget cycle to reach sustainability targets beyond the regular budget cycles and strategic management plans. Barco has obtained a sustainability linked credit facility.

Business continuity: With risk management, alongside the insurance partner, Barco regularly assesses how extreme weather events could impact operations. Interruptions to infrastructure could seriously impact revenues and brand reputation. Building and protecting the resilience of products and services is always a top priority. The goal of Barco's business continuity plans is to keep the company up and running through interruptions such as natural disasters. For instance, when building new facilities or establishing relations with new suppliers, risk assessment of extreme weather events in the region is included. An alert tool provides daily alerts on predefined (core) suppliers for extreme-weather events such as floods or earthquakes, plans to close down production, etc.

Linkage to value creation model

The outcome of the double materiality assessment has been embedded into Barco's value creation model and resulted in a new sustainability strategy called 'Sustainable Impact Journey'. The strategy focuses on three pillars: Protecting earth, Engaging people, and Empowering society. Each pillar is linked to material topics from the materiality assessment.

Protecting earth:

• Science-based climate action (linked to Climate change & energy)
• Developing more sustainable products (linked to Sustainable lifecycle management)
• Offering circular solutions (linked to Circular economy & waste)

Engaging people:

• Building an inclusive environment (linked to Diversity & inclusion)
• Co-creating a healthy, smart, and safe organization (linked to Health, safety & well-being)
• Embedding a continuous learning mindset (linked to Talent & career development)

Empowering society:

• Driving sustainable change through innovation & technology (linked to Innovation, technology & product portfolio)
• Cultivating reliable and responsible business (linked to Responsible & resilient supply chain, Corporate governance & business ethics, Product quality, safety & security)
• Providing access to health and education for all (linked to Community engagement)

Division-specific sustainability roadmaps are embedded in the three-year strategic management plans of every Barco business unit (BU), with BU-specific sustainability roadmaps (including targets and actions) tailored to the sustainability demands of each BU's broader ecosystem.

Description of the process to identify and assess material impacts, risks and opportunities

Barco's Double Materiality Assessment

Barco performed a first comprehensive (single) materiality assessment in 2020 and kept it up to date over the years to make sure it reflects the latest developments in its business, markets and ecosystem. In 2023, Barco completed a double materiality assessment, and its outcome resulted in the sustainable impact journey in 2024, as the new sustainability strategy, fully embedded into the corporate strategy.

Our approach

The double materiality assessment was the first step towards Corporate Sustainability Reporting Directive (CSRD) compliance. In line with the concept of double materiality, Barco identified, assessed, and prioritized impacts, risks and opportunities (IROs), not only within Barco but also across the value chain and broader ecosystem.

Barco's double materiality assessment measures:

• The impact materiality: the actual and potential positive or negative impacts of Barco on society (inside-out)
• The financial materiality: the actual and potential risks and opportunities that have or may have financial effects on Barco (outside-in)

Barco approached the assessment as a strategic project to capture valuable input from the wide ecosystem. Internal and external stakeholders were questioned across the value chain via surveys, interviews, and focus groups. Their input was scored, consolidated, and plotted on a matrix.

The outcome of the double materiality assessment has been embedded into Barco's value creation model and resulted in a new sustainability strategy. It will guide Barco in focusing sustainability ambitions, strategy, and actions for the coming years.

Methodology and process

Barco's double materiality assessment was conducted from March 2023 to October 2023. It encompassed the following steps:

1. Preparation: defining a methodology
2. Context: mapping value chain and determining stakeholder approach
3. Identifying ESG topics: from longlist to shortlist
4. Determining and quantifying material IROs through stakeholder engagement
5. Consolidating output and visualization
6. Integration into CSRD roadmap

Step 1: Preparation – defining a methodology

Barco developed a methodology to implement the assessment as a strategic project. The methodology is based on the EFRAG guidance and in line with ESRS standards. Barco rolled out the double materiality assessment to capture valuable insights from stakeholders across the ecosystem.

Step 2: Context – mapping the value chain and determining stakeholder approach

Barco took a holistic approach to determine material IROs considering all activities of the organization. In workshops with internal stakeholders, Barco mapped the value chain, both upstream and downstream, as well as the broader ecosystem: the production processes, distribution channels and geographical locations of all Barco sites.

Based on that exercise, Barco identified stakeholder groups from the value chain and ecosystem to engage with and to capture valuable feedback. The following internal and external stakeholders – across regions of activity – participated:

• Board of directors and senior management (A): interviews
• Shareholders and investors (A): interviews or surveys
• Employees (A): focus group or surveys
• Distributors, resellers, partners and integrators (A): interviews or surveys
• Customers and end-users (A): interviews or surveys
• Suppliers (A): interviews or surveys
• Society representatives (industry associations, academia, key opinion leaders, etc.) (U): interviews or surveys
• Society representatives (government & public authorities) (U): surveys
• Affected communities (U): interviews or surveys
• Banks and analysts (U): surveys

Note: (A) = Affected stakeholders; (U) = Users of sustainability statements

A concrete stakeholder engagement plan was created. This involved identifying the stakeholder groups to engage with and clarifying their inclusion in the ESG topic identification, impact materiality assessment, financial materiality assessment, and/or validation and reporting. Additionally, Barco determined the specific engagement method for each stakeholder group: through interviews, surveys or focus groups.

Step 3: Identifying ESG topics

After the context mapping, Barco drafted a longlist of potential relevant topics across the value chain and ecosystem, based on the following sources:

• Sector-agnostic sources: ESRS
• Sector-specific sources: desk research, benchmarking analysis of the material topics of peers (technology industry) and benchmarking analysis of business partners' and competitors' material topics
• Barco-specific sources: insights from previous materiality assessment (conducted in 2020), Barco's mission and strategy, or from previous risk assessments

Barco aimed to capture all relevant current and future topics from the electronics, audiovisual (AV) and broader technology sector.

During dedicated workshops with internal experts, Barco reduced the longlist of topics and sub-topics from the bottom-up analysis to a shortlist of topics to discuss with stakeholders. Shortlisted topics and sub-topics were consolidated and definitions were determined for every topic.

Before reaching out to stakeholders, Barco's Executive Sustainability Steering Committee and Board of Directors reviewed and approved the stakeholder approach and the shortlisted topics.

Step 4: Determine and quantify material impacts, risks, and opportunities through stakeholder engagement

Barco engaged with internal and external stakeholders to assess the short-, mid- and long-term impact materiality of the shortlisted ESG topics.

For positive impacts, Barco considered the scale and scope of the actual and potential impact, plus the likelihood of occurrence.

For negative impacts, Barco assessed the scale, scope, likelihood of occurrence and the irremediability. Both positive and negative impacts were evaluated in the same way.

Time horizons:

• Actual impact was defined as the current impact
• Short-term impact spans 0-3 years
• Mid-term 3-5 years
• Long-term more than 5 years

Barco questioned internal & specific external stakeholders (financial institutions) about the short-, mid-, and long-term financial materiality of the shortlisted ESG topics. This encompasses actual and potential risks and opportunities. Barco's risk universe (yearly risk assessment) has been incorporated in the financial materiality assessment (outside-in). The scope was expanded to include both the inherent risks and opportunities related to each topic.

Questions were asked in a neutral way with no reference to any existing policies, KPIs/targets or actions at Barco. ESG risks and other types of risks were treated equally.

Key assumptions:

Internal controls: Before reaching out to stakeholders, internal control guidelines were established. For example, detailed guidelines were created for conducting the interviews and taking the meeting minutes, and defined general rules and control checkpoints for processing data from interviews, surveys and focus groups (i.e. converting responses into scores). A key example is the 6-eyes principle applied during interviews, where at least 3 people participated in the interview or reviewed the meeting minutes.

Stakeholder engagement: As part of the stakeholder engagement plan, Barco determined which topics to discuss with each stakeholder group, allowing gathering of meaningful insights. Internal stakeholders were asked about all shortlisted topics, while external stakeholders were asked about a selection of topics, based on their relevance and the expertise of each group. The concrete stakeholders (organizations) within each group were selected based on the following criteria: sufficient ESG knowledge, diverse perspective, representativeness of the stakeholder category (size, dependency and geography) and seniority. Expertise related to a certain ESG topic and to Barco as an organization were the guiding criteria for selecting the interviewees/respondents of the survey.

Participation: Barco received 207 answers from survey respondents and conducted 77 interviews. Across the different stakeholder groups the participation rate ranged between 21% and 90%.

Step 5: Consolidating output and visualization

Barco consolidated all the scores received from stakeholders and plotted the consolidated data related to specific IROs on an x-axis (financial materiality) and y-axis (impact materiality).

Consolidation of scores: When consolidating the scores from different stakeholder answers, Barco applied varying weights for each stakeholder group in determining the impact materiality. Internal stakeholders got a smaller weight than external stakeholders since it is assumed it is more difficult for them to adhere to an outside-in view (too much focus on risks and opportunities for Barco). Regarding financial materiality, no weights were assigned, meaning that each person's response is equally important regardless of their stakeholder group.

In addition, Barco considered the interdependencies between the different impacts, risks and opportunities.

Once all the data was plotted, a sensitivity analysis was performed at topic level to determine if major changes occur vis-à-vis the thresholds, as a way of flattening out any very high or low scores from internal/external stakeholders.

As a next step, Barco applied thresholds to distinguish between material and non-material topics.

Outcome of the double materiality assessment

The matrix shows the material topics for Barco: topics where Barco has a high actual or potential impact on society (inside-out, y-axis) and topics that have or may have high risks and opportunities for Barco (outside-in, x-axis).

Impact material top 5 topics (in descending order):

• Innovation, technology & product portfolio
• Sustainable lifecycle management
• Talent & career development
• Customer experience
• Product quality & safety

Financial material top 5 topics (in descending order):

• Innovation, technology & product portfolio
• Customer experience
• Corporate governance & strategy
• Product quality & safety
• Responsible & resilient supply chains

Material topics based on both impact and financial materiality:

• Climate change & energy
• Circular economy & waste
• Sustainable lifecycle management
• Diversity & inclusion
• Talent & career development
• Product quality & safety
• Responsible & resilient supply chains
• Innovation, new technologies & product portfolio
• Customer experience
• Corporate governance & strategy
• Business ethics

Topics significantly higher in both impact materiality and financial materiality compared to 2020:

• Innovation, technology & product portfolio
• Sustainable lifecycle management
• Talent & career development
• Customer experience

The assessment confirms that Barco has been focusing on the right topics, i.e. topics where the impact on society or the impact on Barco is the highest, which motivates Barco to intensify initiatives in these domains.

Moreover, diversity & inclusion and circular economy and waste appear to be strategically important topics to stakeholders.

In the course of 2024, the Barco leadership decided to include corporate governance and business ethics as a (financial) material topic, taking into account business activities.

The assessment resulted in the following topics being scored as low or medium material: community engagement; health, safety and well-being; information security. These topics received a medium score and are not material for Barco. However, Barco aims to continue its strategy, targets and actions related to these topics (as set already in the previous years).

Next steps – keeping the DMA up to date

In the course of 2024, Barco questioned senior leadership as well as the Board of Directors about any possible changes to the 2023 double materiality assessment. They validated the 2023 approach and the outcome is visualized in the matrix above.

Going forward, Barco will update the double materiality assessment (also approach external stakeholders) in line with existing strategic management plans minimum every three years. This has been integrated further into internal processes (Barco risk universe, employee engagement survey).

Use of value chain mapping

In workshops with internal stakeholders, Barco mapped the value chain, both upstream and downstream, as well as the broader ecosystem: the production processes, distribution channels and geographical locations of all Barco sites.

In the overview of IROs (in the topical sections), Barco indicates where they occur, which can be in own operations, downstream or upstream value chain.

Barco took a holistic approach to determine material IROs considering all activities of the organization and all activities across the value chain.

Transition plan for climate change mitigation

Scope of the plan

Barco's transition plan covers the consolidated group's entire value chain and, where material, provides information on upstream and downstream activities in accordance with ESRS 1.

The following scope 1, 2, and 3 emission categories are covered by the 2025 absolute carbon reduction target:

• Fuel and energy related activities (scope 1/2)
• Upstream transportation and distribution (scope 3)
• Waste generated in operations (scope 3)
• Business travel (scope 3)
• Employee commuting (scope 3)
• Use of sold products (scope 3)

Target year(s) for net zero / carbon neutral

Barco commits to aligning its business with the goal of the Paris Agreement: to limit the global temperature rise to 1.5°C above pre-industrial levels.

In 2024, Barco is building a carbon reduction roadmap until 2030 and a long term carbon reduction target for 2050 (versus a new baseline year). Both targets will be submitted to the SBTi in 2025 for validation.

Scope 1, 2, 3 reduction milestones with baseline years

2025 Target (vs. 2015 baseline): Barco's absolute target is to reduce scope 1, 2, and 3 greenhouse gas emissions by 45% by 2025 compared to base year 2015. This target was approved by the Science Based Targets initiative in March 2021.

2024 Performance (vs. 2015 baseline): Barco managed to reduce absolute carbon emissions by 62% or 492k tCO2e versus 2015, surpassing the 45% reduction target set for 2025.

Scope 1 & 2 performance:

• Overall absolute scope 1 & 2 emissions decreased by 19% in 2024 versus 2023
• Overall, absolute scope 1 & 2 greenhouse gas emissions dropped by 67% between 2015 and 2024
• Absolute value of Scope 1/2 emissions (limited scope 2024): 3,557 t CO2e
• Target absolute value of Scope 1/2 emissions reduction: 5,955 t CO2e

Scope 3 performance:

• Absolute value of Scope 3 emissions (limited scope 2024): 303,600 t CO2e
• Target absolute value of Scope 3 emissions reduction (2025): 433,683 t CO2e
• Percentage of Scope 3 emissions reduction (limited scope 2024 vs 2015): -61%

Total emissions performance:

• Absolute value of total emissions (limited scope 2024): 307,157 t CO2e
• Target absolute value of total emissions reduction (2025): 439,638 t CO2e
• Percentage of total emissions reduction (limited scope vs 2015): -62%

Near-term and long-term targets: It is Barco's ambition to translate actions into a near term 2030 carbon reduction target in line with 1.5 degrees global warming as well as a long term carbon reduction target for 2050 (versus a new baseline year). Both targets will be submitted to the SBTi in 2025 for validation.

Alignment with 1.5°C / SBTi validation status

Barco's 2025 greenhouse gas (GHG) emissions target is in line with limiting global warming to 1.5°C above pre-industrial levels.

The 2025 target (45% absolute reduction vs. 2015) was approved by the Science Based Targets initiative in March 2021.

New 2030 and 2050 targets are being developed in line with 1.5 degrees global warming and will be submitted to SBTi in 2025 for validation.

Key levers / decarbonization pillars

The key decarbonization levers to achieve the 2025 target are (ranked from largest to lowest contributor):

1. Technology shift (emissions related to use of sold products, scope 3): Shift from traditional lamp-based to laser projectors, shift towards more software solutions
2. Ecodesign program (emissions related to use of sold products, scope 3)
3. Modal shift from air to sea freight transport (upstream transportation and distribution - scope 3)
4. Reduction of energy consumption (fuel and energy related activities – scope 1)
5. Electrification of company fleet (fuel and energy related activities – scope 1)
6. Switch to renewable electricity in manufacturing and R&D plants (fuel and energy related activities – scope 1)
7. Increase recycling rate of company waste (waste generated in operations - scope 3)

Energy-related actions:

• Reduce energy (electricity and fuel) consumption of own operations by 20% by 2027 versus a 2023 baseline
• Achieve 75% of energy consumption from renewable sources by 2027
• In 2024, energy consumption from renewable sources rose to 70% (24,695 MWh)
• Renewable electricity production grew from 0.45 MWH/mio euro revenue to 1.29 MWH/mio euro revenue, mainly thanks to solar panels on Suzhou plant
• Planned wind turbine at One Campus site in Kortrijk (Belgium) with projected annual production of 11,290 MWh

Product-related actions:

• Continued innovation in projector and control room technology to drive down product-use emissions
• Transition to more software solutions in control room business
• 90% of new products to be Barco eco-labeled products by 2027 (86% achieved in 2024)
• 80% of revenue to come from eco-labeled products by 2027 (68% achieved in 2024)

Logistics actions:

• Continue modal shift from air to sea freight (45% of total transport kms covered by deep-sea shipping in 2024)
• Investment in shortening supply chains by moving production to China for Chinese markets and local sourcing
• Transport and warehousing tenders include sustainability clause

Mobility actions:

• Over 70% of company fleet are now EVs
• Continue electrification efforts to further reduce company cars-related CO2 emissions

Supply chain actions:

• Engage with suppliers (goods and services) to receive primary data
• Enhance reporting accuracy and set reduction targets on product & supplier hotspots
• Using LCA data from over 10,000 LCAs to understand embedded carbon of purchased components and products

CapEx / investment commitments

2024 CAPEX investments contributing to decarbonization roadmap:

• Solar panel installation in Suzhou
• Continued shift to electrical vehicles
• More charging stations in Kortrijk
• Continue redesign of products to achieve higher Ecoscore (increased energy efficiency)
• Financial resources allocated to action plan (CapEx): €3,205 million

2025 planned CAPEX investments:

• Extension of solar panel installation in Suzhou
• Further shift to electrical vehicles
• Energy management system
• Tooling and machinery for manufacturing of energy efficient products

OPEX investments:

• Financial resources allocated to action plan (OpEx): €67,024 million
• R&D spending across all business units contributing to product development in line with EU Taxonomy requirements on climate change mitigation and circularity
• 2024 OPEX investments in specific R&D projects across divisions played key role in advancing decarbonization roadmap
• For 2025, similar OPEX investments expected: all R&D spending on Barco product roadmap (across all business units) contributing to product development in line with EU Taxonomy requirements

Locked-in emissions and stranded asset analysis

The potential locked-in emission of Barco's key assets (owned or controlled by Barco) are related to current infrastructure (energy consumption with fossil fuels). Barco aims to further decarbonize key assets in the coming years.

The cumulative locked-in GHG emissions associated with direct use phase of products relates to the product use emissions (scope 3 category 11).

Going forward, Barco will analyze further possible locked-in emissions related to e.g. future investments.

Use of carbon credits / removals

Barco prioritizes supply chain engagement and ecodesign to reduce the scope 3 impact of product portfolio. Additionally, specific projects within value chain are encouraged above carbon removals retired through climate change mitigation projects outside Barco's value chain.

Carbon credits cancelled in reporting year 2024:

Barco selects projects certified by Verra under the Verified Carbon Standards (VCS). Credits originate from two afforestation projects Qianbeu and Huadu in China.

Carbon removals and carbon credits are not included in the 2025 target.

At the release of the Annual Report, future cancellations are still under review.

Integration into business strategy and financial planning

Barco's decarbonization roadmap is integrated into overall business strategy and financial planning. Progress vis-à-vis the 2025 carbon emission reduction target is monitored at Executive Sustainability Steerco meetings in the presence of the CEO, CFO, CHRO, COO and business unit EVPs.

The decarbonization roadmap and targets are defined and validated by both the Executive Sustainability Steerco and the Board of Directors.

As part of commitment to set a near term 2030 and 2050 net zero carbon reduction target, Barco aims to adopt a transition plan in line with upcoming legislative requirements. This will include making a clearer link between the decarbonization roadmap and EU taxonomy requirements. The ambition is to further integrate this transition plan into forward looking strategic & financial planning.

Climate scenario analysis

Barco refined the analysis of climate change risks and opportunities in 2024, focusing primarily on own operations and to a lesser extent on the value chain. The analysis assessed climate resilience by looking at climate-related transition and physical risks and opportunities.

Scenarios analyzed:

• IPPC RCP 8.5 (BAU 3.2-4.5°C)
• IPPC RCP 4.5 (2.0-3.0°C)
• IPPC RCP 2.6 (1.5-2.0°C)

Timeframes:

• Short term: 0 to 3 years (in line with strategic management plans)
• Medium term: 3 to 10 years
• Long term: 10 to 30 years

Key manufacturing & distribution locations assessed:

• Belgium (Kortrijk & Kuurne)
• Italy (Saronno & Lainate)
• United States (Duluth & Georgia)
• India (Noida)

Physical risks assessed: Tropical cyclone, lighting, tornado, earthquake, flood, wildfire, storm

Transition risks with highest sensitivity (IPPC RCP 2.6 scenario):

• Mandates on and regulation of existing products and services
• Mandates on and regulation of existing production processes
• Costs of transition to lower emission technology
• Increased cost of raw materials

Key findings:

• In BAU scenario (IPPC RCP 8.5), highest sensitivity estimated for tropical cyclone, lighting and tornado
• Impact of residual physical risk considered insignificant considering current mitigation measures
• Need acknowledged for further investigation to reduce uncertainties

Planned refinements:

• Enlarge scope of analysis towards upstream and downstream value chain
• Refine quantification of anticipated financial effects and link to financial statements
• Integrate scenario analysis into carbon reduction roadmap 2030 & 2050
• Further strengthen ability to adjust/adapt business strategy in relation to climate change
• Refine analysis on physical climate change risks across value chain

Policies related to climate change mitigation and adaptation

Barco references E1-2 in its ESRS index (page 51) with a pointer to "SUS – Climate change and energy" (pages 11-18). However, the excerpts provided do not contain specific information about named policies related to climate change mitigation and adaptation.

The excerpts mention:

• A commitment to set near-term 2030 and 2050 net zero carbon reduction targets
• An ambition to adopt a transition plan in line with upcoming legislative requirements
• Plans to integrate the transition plan into forward-looking strategic and financial planning
• Reference to a Corporate Governance report

No specific climate policy document, policy name, scope, governance structure, approval body, or monitoring mechanisms are disclosed in the provided excerpts. The company appears to be in the process of developing a formal transition plan but does not present a fully articulated climate policy in these sections.

Actions and resources in relation to climate change policies

Overall approach

Barco has developed an overall strategy and management approach on climate change (see EHS² pledge). Climate-related impacts, risks and opportunities (IROs) are integrated into existing business strategy and processes. The company continuously monitors political/legislative, technological, market and reputational developments. Climate resilience is embedded in Barco's business strategy.

Action 1: Science-based climate action and decarbonization

Scope: Own operations and value chain (upstream and downstream)

Time horizon:

• Short term (2025 target)
• Medium term (2030 roadmap mentioned)
• Long term (2050 roadmap mentioned)

Description: Committed to setting science-based targets aligned with the Paris Agreement goal of limiting global temperature rise to 1.5°C above pre-industrial levels. The 2025 greenhouse gas (GHG) emissions target is in line with limiting global warming to 1.5°C.

Resources allocated:

• CapEx: €3.205 million (2024)
• OpEx: €67.024 million (2024)

Targets:

• Absolute Scope 1/2 GHG emissions reduction target: 5,955 t CO2e
• Absolute Scope 3 GHG emissions reduction target (2025): 433,683 t CO2e
• Total absolute GHG emissions reduction target (2025): 439,638 t CO2e

Achieved outcomes:

• GHG emission reductions (limited scope 2024 vs 2015): 492,267 t CO2e
• Percentage of total GHG emissions reduction (limited scope vs 2015): -62%
• Percentage of Scope 1/2 GHG emissions reduction (limited scope 2024 vs 2015): -67%
• Percentage of Scope 3 GHG emissions reduction (limited scope 2024 vs 2015): -61%

Link to policy: Aligns with science-based climate action ambition and EHS² pledge.

Action 2: Renewable energy deployment

Scope: Own operations

Time horizon: Ongoing

Description: Increase renewable energy consumption in operations, including self-generation and purchased renewable energy.

Outcomes achieved (2024):

• Total energy consumption from renewable sources: 24,695 MWh
• Percentage of renewable sources in total energy consumption: 70% (up from 60% in 2023)
• Renewable energy production: 1,222 MWh (up from 468 MWh in 2023)
• Consumption of purchased electricity, heat, steam, and cooling from renewable sources: 23,473 MWh

Link to policy: Supports science-based climate action and energy efficiency objectives.

Action 3: Ecodesign program for sustainable products

Scope: Own operations and downstream value chain

Time horizon: Ongoing

Description: Develop more sustainable products through eco-scoring methodology evaluating Energy, Materials, Packaging & Logistics, and End-of-life. The program:

• Evaluates environmental impact of insourced components
• Promotes use of lower impact materials
• Integrates software products into ecodesign roadmap (new initiative)
• Ensures products increase energy efficiency at the customer

Process:

• Innovation process: quarterly evaluation of ideas against sustainability IROs
• New Product Introduction (NPI) process: eco-scoring methodology ensures proper ecodesign

Link to policy: Aligns with sustainable product development ambition and climate change mitigation.

Action 4: Circular solutions

Scope: Own operations and downstream value chain

Time horizon: Ongoing (new strategic initiative in 2024)

Description: Provide increasingly circular customer experience by:

• Designing products to extend their lifespan
• Offering 'as-a-service' models that eliminate need for ownership
• Retaining highest utility and value of products and components for as long as possible
• Reducing company waste and recycling remaining waste

Link to policy: New pillar in Sustainable Impact Journey strategy focusing on circular economy.

Action 5: Physical climate risk management

Scope: Own operations and upstream supply chain

Time horizon: Ongoing

Description:

• Regular risk assessments with insurance partner for extreme weather impacts
• Business continuity plans to maintain operations through natural disasters
• Risk assessment of extreme weather events when building new facilities or establishing supplier relations
• Alert tool providing daily alerts to purchase team on core suppliers regarding extreme weather events (floods, earthquakes, production closures)
• Physical risk mitigation measures including lightning protection, wind force analysis, and adequate assurance

Key locations assessed: Belgium (Kortrijk & Kuurne), Italy (Saronno & Lainate), United States (Duluth & Georgia), India (Noida)

Link to policy: Integrates climate resilience into business strategy.

Action 6: Supply chain sustainability integration

Scope: Upstream value chain

Time horizon: Ongoing

Description:

• Integration of sustainability risks in business review meetings with suppliers
• Evaluation of environmental impact of insourced components in ecodesign program
• Monitoring of supplier sustainability performance

Link to policy: Supports responsible supply chain objectives and climate risk management.

Action 7: Climate scenario analysis and integration

Scope: Own operations, expanding to upstream and downstream value chain

Time horizon:

• Short term: 0-3 years
• Medium term: 3-10 years
• Long term: 10-30 years

Description: Analysis of climate-related transition and physical risks and opportunities using IPCC RCP scenarios (8.5, 4.5, 2.6):

• Assessment of climate resilience using climate change scenarios
• Quantification of anticipated financial effects from material physical and transition risks
• Integration into carbon reduction roadmap and business strategy

Planned expansion:

• Enlarge scope of analysis to upstream and downstream value chain
• Refine quantification of anticipated financial effects and link to financial statements
• Integrate scenario analysis into carbon reduction roadmap 2030 & 2050
• Further strengthen ability to adjust/adapt existing business strategy

Link to policy: Embeds climate resilience in business strategy and supports science-based targets.

EU Taxonomy alignment

2024 results:

• % CapEx eligible for EU Taxonomy alignment: 100%
• % CapEx aligned under EU Taxonomy: 7%
• % OpEx eligible for EU Taxonomy alignment: 76%
• % OpEx aligned under EU Taxonomy: 50%

Energy performance metrics (2024)

• Total energy consumption related to own operations: 35,404 MWh
• Energy intensity from activities in high climate impact sectors: 37.4 MWh/mio €
• Fuel consumption from natural gas: 4,928 MWh
• Fuel consumption from crude oil and petroleum products: 4,324 MWh

Targets related to climate change mitigation and adaptation

Carbon reduction targets

Target 1: Absolute carbon reduction (Scope 1, 2 & 3) - 2025

• Target metric: Absolute greenhouse gas emissions reduction (Scope 1, 2 & 3 - limited categories)
• Target value: -45% reduction
• Baseline year: 2015
• Baseline value:
  • Scope 1/2: 5,955 t CO2e (baseline)
  • Scope 3 (limited): 433,683 t CO2e (baseline)
  • Total (limited scope): 439,638 t CO2e (baseline)
• Target year: 2025
• Scope: Own operations (Scope 1 & 2) and limited Scope 3 categories:
  • Fuel and energy related activities (scope 1/2)
  • Upstream transportation and distribution (scope 3)
  • Waste generated in operations (scope 3)
  • Business travel (scope 3)
  • Employee commuting (scope 3)
  • Use of sold products (scope 3)
• Type: Absolute target
• Validation: Science-based target approved by Science Based Targets initiative (SBTi) in March 2021, aligned with 1.5°C global warming scenario
• Progress 2024:
  • Achieved -62% reduction vs 2015 (492,267 t CO2e reduction)
  • 2024 total emissions (limited scope): 307,157 t CO2e
  • 2024 Scope 1/2 emissions: 3,557 t CO2e (-67% vs 2015)
  • 2024 Scope 3 emissions (limited): 303,600 t CO2e (-61% vs 2015)
  • Target surpassed

Target 2: New science-based targets for 2030

• Target metric: Absolute carbon emissions reduction (all Scope 1, 2 & 3 categories)
• Target value: To be defined and submitted to SBTi in 2025 for validation
• Baseline year: 2023
• Target year: 2030
• Scope: Own operations and entire value chain (all Scope 3 categories)
• Type: Absolute target
• Validation: To be submitted to SBTi for validation in 2025, aligned with 1.5°C global warming scenario
• Status: Commitment made; detailed carbon reduction roadmap being developed in 2024

Target 3: Long-term carbon reduction target

• Target metric: Carbon emissions reduction
• Target year: 2050
• Baseline year: To be defined (new baseline year)
• Status: Ambition stated; details to be developed

Energy consumption targets

Target 4: Renewable energy consumption

• Target metric: Percentage of energy consumption from renewable sources
• Target value: 75%
• Baseline year: 2023 (implicit)
• Baseline value: Not explicitly stated
• Target year: 2027
• Scope: Own operations
• Type: Intensity-based (percentage)
• Validation: Internal target
• Progress 2024: 70% of energy consumption from renewable sources (24,695 MWh out of 35,404 MWh total)

Target 5: Energy consumption reduction

• Target metric: Total energy consumption of own operations
• Target value: -20% reduction
• Baseline year: 2023
• Baseline value: 32,905 MWh
• Target year: 2027
• Scope: Own operations (electricity and fuel)
• Type: Absolute reduction
• Validation: Internal target
• Progress 2024: +8% increase (35,404 MWh) - not on track due to increased facility footprint and transition activities

Energy consumption and mix

Scope and methodology

Energy consumption data covers Barco's own operations (scope 1 and 2), including all major manufacturing and R&D sites in Belgium, China, Italy, Germany, India, Norway, Taiwan and the US. These sites cover over 90% of Barco's owned surface. Smaller sites were estimated using benchmark data. Calculations are based on primary data from SAP SuccessFactors for major sites. An extrapolation of November and December data was applied to obtain full-year results.

Energy intensity is calculated per net revenue as disclosed in the consolidated income statement.

Total energy consumption and mix (2024)

Energy intensity

The 8% increase in total energy consumption (35,404 MWh in 2024 vs 32,905 MWh in 2023) is primarily due to increased energy footprint of facilities. Although the Changping plant closed, more energy was consumed by plants in Wuxi and Suzhou due to increased activities as part of the focused factory strategy (certain activities transferred from Belgium and Italy to China via parallel phase-out). The transition to electric company cars also increased total energy consumption while lowering emissions: over 70% of the fleet are now EVs.

Renewable energy production grew from 0.45 MWh/mio euro revenue to 1.29 MWh/mio euro revenue, mainly thanks to solar panel installation at the Suzhou plant. The share of electricity in total energy consumption rose to 73% in 2024 (vs 62% in 2023).

Self-generated renewable energy

In 2024, renewable electricity production was 1,222 MWh (2023: 468 MWh), primarily from solar panels installed on the Suzhou plant. A planned wind turbine at the Kortrijk campus (Belgium) with projected annual production of 11,290 MWh had its permit annulled by the Council for Permit Disputes in July 2024; Barco is hopeful the Flemish government can deliver a new permit.

Gross Scopes 1, 2, 3 and Total GHG emissions

Measurement basis and scope

Barco calculates its carbon footprint using the Greenhouse Gas Protocol methodology in compliance with the ISO 14064 standard. Emission factors are sourced from internationally recognized databases: ADEME, GHG Protocol, IEA & DEFRA. All greenhouse gases (CO2, CH4, N2O, HFCs, PFCs, CFCs) are converted to CO2 equivalents using the 100-year global warming potential (GWP) coefficients issued by the IPCC. This covers all Kyoto gases required by the Greenhouse Gas Protocol.

Consolidation approach: Operational control approach for Scope 1 & 2. The footprint covers 100% of Barco's activities, including all operating sites (manufacturing, R&D, offices, warehousing). All major manufacturing and R&D sites (Belgium, China, Italy, Germany, India, Norway, Taiwan, US) are covered largely by primary data, representing over 90% of Barco owned surface. Smaller sites were estimated using benchmark data.

Extrapolation: To obtain full-year results, an extrapolation of November and December data was applied to main categories of Scope 1, 2 & certain Scope 3 categories.

Scope 3 calculation specifics:

• Category 1 (Purchased goods and services): Used data from over 10,000 LCAs to construct aggregated emissions impact with LCA tool Makersite. LCAs conducted on actual BOM material data or through AI. 35% of impact determined via spend-based calculations where no reliable supplier material and weight data was available.
• Category 4 (Upstream transportation and distribution): 82% of spend covered with primary data from freight forwarders for January–October 2024. Extrapolation was done to bridge November and December data and cover 100% of logistics spend. 6% of total Scope 3 data captured through primary data collection.
• Category 11 (Use of sold products): Detailed calculations available in Annex of report (use case data collection). Based on typical operational lifetime of products in the field as intended.
• Category 15 (Investments): Spend-based approach applied for investments in CFG (49%) and ClearChannel (35%).

2024 vs 2023 changes: In 2024, Barco extended its carbon footprint calculation to all Scope 3 categories. Previously, only the limited scope covering categories 1, 3, 4, 5, 6, 7, 11 was reported. The extended scope now includes all 15 categories where applicable.

Value chain estimations: Applied only in indicators related to GHG emissions (Scope 3), using sector-average data or qualitative proxy data to convert transactional data to CO2e.

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Scope 1 GHG emissions

Scope 1 emissions are direct emissions from sources owned or controlled by Barco, including electricity, fossil fuels (including company cars), waste treatment, and leakage of refrigerant gases from cooling equipment.

Scope 1 sub-breakdown by source type: Scope 1 emissions in 2024 were mainly attributable to:

• Mobile combustion (company cars-related CO2 emissions)
• Stationary combustion (use of fossil fuels)
• Process sources (fugitive emissions from cooling equipment)

In 2024, Barco continued the transition to electric company cars: over 70% of fleet are now EVs, increasing total energy consumption but lowering emissions from company cars.

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Scope 2 GHG emissions

Scope 2 emissions are indirect emissions from purchased electricity or district heating.

Scope 2 emissions were mainly attributable to purchased electricity & heating (use of fossil fuels).

Scope 1 + 2 combined (market-based):

Overall absolute Scope 1 & 2 greenhouse gas emissions dropped by 67% between 2015 and 2024 and by 19% compared to 2023.

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Scope 3 GHG emissions

Total Scope 3 emissions (all categories):

*Limited scope refers to Scope 3 categories covered by Barco's 2025 science-based target (categories 1, 3, 4, 5, 6, 7, 11).

Breakdown by GHG Protocol category:

Key Scope 3 notes:

• Category 1 (Purchased goods and services): Includes purchased components and raw materials. Total carbon footprint for purchased goods was 163,541 tCO2eq in 2024 vs 158,479 tCO2eq in 2023. Scope 3 category 1 services (consultancy, cleaning, catering, cloud software) amounted to 12,265 tCO2eq in 2024 vs 12,124 tCO2eq in 2023. Combined, categories 1 accounts for 33% of total Scope 3 emissions in 2024.
• Category 6 (Business travel): Increase mainly explained by integration of Cinionic (excluded in 2023 number) and adapted emission factors related to air travel.
• Category 11 (Use of sold products): Product-use emissions totalled 254,787 tCO2eq in 2024, remaining almost flat compared to 2023. In relative terms, this represents an 11% increase (269.1 tCO2e/mio € revenues vs 241.5 tCO2e/mio € revenues in 2023), due to unfavorable product/sales mix. However, from 2015 to 2024, product-use emissions decreased by 64%.
• Category 15 (Investments): In 2024, for the first time, Barco calculated absolute carbon emissions related to investments (including share in BarcoCFG & ClearChannel), resulting in 36,519 tCO2e in 2024 vs 26,971 tCO2e in 2023 due to increased revenues. These emissions account for 7% of Scope 3 emissions.

Limited Scope 3 (categories covered by 2025 SBT target):

The limited scope includes categories: 3, 4, 5, 6, 7, 11. These categories are covered by Barco's Science Based Target approved in March 2021.

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Total GHG emissions (all scopes)

*Limited scope: Scope 1 + Scope 2 (market-based) + Scope 3 categories 3, 4, 5, 6, 7, 11 (covered by SBT target).

Barco managed to reduce absolute carbon emissions by 62% or 492k tCO2e versus 2015, surpassing the 45% reduction target set for 2025.

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GHG intensity per net revenue

Net revenue equals the total sales as disclosed in the consolidated income statement.

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Biogenic CO2 emissions

Not disclosed separately.

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Carbon removals and credits

Barco prioritizes supply chain engagement and ecodesign to reduce Scope 3 impact. Additionally, specific projects within divisions go further, such as ClickShare's initiative to reduce GHG emissions by financing high-quality carbon credits.

Carbon credits cancelled in the reporting year 2024:

Credits originate from two afforestation projects (Qianbeu and Huadu, China), certified by Verra under the Verified Carbon Standards (VCS). Credits are meticulously tracked in the Verra Registry using unique serial numbers.

Carbon removals: Carbon removals and carbon credits are not included in the 2025 carbon reduction target.

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Regulated emissions

Percentage of Scope 1 GHG emissions from regulated emission trading schemes: 0% (2024 and 2023).

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Additional notes

• Comparative information in the sustainability statement for 2022 and 2023 is presented on a voluntary basis and has not been subject to assurance procedures, except for a subset of KPIs (revenues from products with Barco ECO label and the limited scope 1, 2 & 3 categories part of the SBTI approved 2025 carbon reduction target).
• At the release of the Annual Report, future carbon credit cancellations are still under review.
• Barco is building a carbon reduction roadmap until 2030, outlining actions across business units and operations. The ambition is to translate these actions into a near-term 2030 carbon reduction target in line with 1.5 degrees global warming as well as a long-term carbon reduction target for 2050 (versus a new baseline year). Both targets will be submitted to the SBTi in 2025 for validation.

Anticipated financial effects from material physical and transition risks and potential climate-related opportunities

Use of phase-in exemption

Barco uses the option to omit information required by ESRS E1-9 in accordance with Appendix C of ESRS 1.

Methodology for double materiality assessment

Barco performed a first comprehensive (single) materiality assessment in 2020 and completed a double materiality assessment in 2023.

The methodology is based on the EFRAG guidance and in line with ESRS standards. The assessment identified, assessed, and prioritized impacts, risks and opportunities (IROs), not only within Barco but also across the value chain and broader ecosystem.

Time horizons

• Short-term: 0-3 years
• Mid-term: 3-5 years
• Long-term: more than 5 years

Financial materiality assessment approach

Barco's risk universe (yearly risk assessment) has been incorporated in the financial materiality assessment (outside-in). The scope was expanded to include both the inherent risks and opportunities related to each topic. Questions were asked in a neutral way with no reference to any existing policies, KPIs/targets or actions at Barco. ESG risks and other types of risks were treated equally.

Internal stakeholders and specific external stakeholders (financial institutions) were questioned about the short-, mid-, and long-term financial materiality of the shortlisted ESG topics.

Stakeholder engagement

207 answers were received from survey respondents and 77 interviews were conducted. Across the different stakeholder groups the participation rate ranged between 21% and 90%.

Stakeholders engaged included: Board of directors and senior management, shareholders and investors, employees, distributors/resellers/partners/integrators, customers and end-users, suppliers, society representatives (industry associations, academia, key opinion leaders), government & public authorities, affected communities, and banks and analysts.

Material topics outcome

Climate change & energy was identified as a material topic in Barco's Double Materiality Matrix with HIGH impact materiality.

Substances of concern and substances of very high concern

Management Approach

Barco actively manages environmental, health, and safety-regulated substances through a detailed Barco Regulated Substance List, which includes prohibited substances and those restricted to specific applications. This management process has been in place since 2014.

Product Compliance Requirements: Every component delivered by suppliers must meet Barco Product Compliance requirements, including compliance with worldwide regulations such as RoHS and REACH, ecodesign requirements, ERP, and SCIP. By implementing the Barco Substance List, the company goes beyond current legislation by restricting the use of specific chemicals or requiring declaration of specific substances.

Full Material Declarations (FMD): Barco collects applicable signed hazardous substance declarations of conformity for all active components, ensuring all components are covered by relevant compliance data. The collection of FMDs goes beyond what is required by regulation, allowing Barco to anticipate future regulations. In 2024, 84% of active components were covered by FMDs.

Do No Significant Harm (DNSH) - Pollution Prevention and Control: Since 2014, Barco has actively managed environmental, health, and safety-regulated substances by maintaining a detailed list of prohibited substances and those restricted in use to specific applications: the Barco Regulated Substance List. Barco has also implemented a management process for hazardous substances, ensuring compliance with relevant EU regulations and directives, thereby meeting the specified DNSH criteria.

Supplier Engagement: Barco provides training to suppliers on various sustainability areas, including environmental compliance and ecodesign. In 2024, the company focused on raising awareness about potential restrictions, current reporting obligations on PFAS/PFOS, and upcoming expiration of RoHS exemptions. The company actively discussed substitution plans and shared knowledge on where these substances may be present.

Circularity Context: The Technical Screening Criteria (TSC) for circular economy (CE 1.2) imply substitution requirements that are not realistic for Barco's industry. The company does not consider alignment with CE 1.2 for reporting year 2024 due to strict requirements concerning the use of hazardous substances.

Quantitative Data

Barco does not disclose total tonnages of substances of concern (SoC) or substances of very high concern (SVHC) generated, used, or procured in the reporting period.

Note

While Barco has established comprehensive processes for managing regulated substances and REACH compliance, including the Barco Regulated Substance List and FMD collection for 84% of active components, the company does not report quantitative tonnage data for substances of concern or substances of very high concern as expected under ESRS E2-5.

Policies related to water and marine resources

Barco has assessed ESRS E3-1 (Policies related to water and marine resources) as not material and has omitted this disclosure requirement.

According to the materiality assessment disclosed in the sustainability statements, E3 (Water and marine resources) falls below Barco's materiality thresholds. The company explicitly states in its appendix that "The following disclosure requirements and datapoints are considered not material for Barco: ESRS E2-4, E3-1, E4-2, S2-1, S2-4, S3-1 and S3-4."

No specific policies related to water and marine resources are disclosed.

Water consumption

Barco states that "our production processes require no significant water consumption." All manufacturing sites are ISO14001 and ISO 9001 certified, demonstrating established environmental management systems and due diligence processes.

Barco assessed its assets, activities and site locations for actual and potential water and marine resource impacts and pollution as part of their double materiality assessment.

No quantitative metrics for water consumption, withdrawal, discharge, water stress areas, water intensity, or water recycling/reuse are disclosed in the excerpts provided.

Policies related to biodiversity and ecosystems

Barco has assessed ESRS E4-2 as not material and has therefore omitted this disclosure requirement.

According to the company's materiality assessment and ESRS index, "E4-2" is explicitly listed among the disclosure requirements considered not material for Barco. The company states: "The following disclosure requirements and datapoints are considered not material for Barco: ESRS E2-4, E3-1, E4-2, S2-1, S2-4, S3-1 and S3-4."

As a result, Barco does not disclose specific policies related to biodiversity and ecosystems in its sustainability statements.

Impact metrics related to biodiversity and ecosystems change

Site location assessment

As part of Barco's double materiality assessment (DMA), the company identified and assessed the actual and potential impacts on biodiversity at its own site locations.

Manufacturing and R&D sites in or near protected areas: No manufacturing or R&D site is located in or near biodiversity-sensitive or protected areas (e.g. Natura 2000).

Barco used the Worldwide Fund for Nature (WWF) Biodiversity Risk filter, Integrated Biodiversity Assessment Tool (IBAT) and the Natura 2000 Network Viewer to assess the sensitivity of its manufacturing sites on biodiversity.

Risk assessment results: No Barco facilities are in biodiversity-sensitive areas, and their locations pose very low to medium risk to key biodiversity or protected areas, as determined by a biodiversity risk screening.

Environmental Impact Assessment

No Environmental Impact Assessment (EIA) has been required for Barco's activities, as none of its projects are included in Annex I or II of Directive 2011/92/EU.

Value chain biodiversity impacts

The environmental & biodiversity impact of Barco products across the upstream and downstream value chain has been integrated into the material topic 'sustainable life cycle management'. Barco performs life-cycle assessments (LCAs) to measure its pressure on biodiversity across the value chain.

Actions and resources related to circular economy

Overview

Barco has disclosed several actions relating to circular economy, primarily focused on product design (resource inflow optimization) and waste management (resource outflow optimization).

Actions related to products (resource inflows and outflows)

Concrete actions launched in 2024:

• Ecoscore for circular product design: The ecoscore helped improve the circular design of products. The end-of-life avoidance pillar of the ecoscore methodology focuses on enhancing product design, targeting durability, modularity, reparability, upgradability, and recyclability design goals. The material and packaging pillar aims at increasing the use of secondary materials by setting minimum recycled content criteria, hence reducing the use of primary raw materials.

  • Scope: Own operations (product design)
  • Link to targets: Relates to targets on revenues from ecolabeled products and newly introduced products
  • Expected outcomes: Optimize resource outflow and resource inflow

• Circular projects in strategic management plans: Circular projects were launched in the forward-looking strategic management plans of every business unit.

  • Scope: Own operations
  • Time horizon: 2024 (launched)

Actions continuing or to be launched in 2025:

• Further improve circular design through ecoscore: Continue to further improve the circular design of products through the ecoscore.

  • Time horizon: 2025 (continuing)

• Conduct LCAs and integrate into ecoscoring: Conduct Life Cycle Assessments (LCAs) and integrate the material findings into the ecoscoring methodology.

  • Time horizon: 2025 (planned)
  • Note: Preference is given to items that are sustainably sourced or originate from a renewable source via LCAs conducted

• Increase circular offerings: Increase the amount of circular offerings by motivating every business unit to work out specific action plans.

  • Time horizon: 2025 (planned)

Actions related to own operations waste (resource outflows)

Actions launched in 2024 and continuing in 2025:

• Guide suppliers on packaging reduction: Guide suppliers of incoming components and products on how to reduce packaging.

  • Scope: Upstream value chain (suppliers)
  • Time horizon: 2024-2025 (ongoing)

• Raise awareness on recyclable packaging: Raise awareness amongst suppliers to use recyclable packaging materials.

  • Scope: Upstream value chain (suppliers)
  • Time horizon: 2024-2025 (ongoing)

• Employee waste sorting: Encourage employees to sort waste efficiently and correctly. Waste recycling is part of the 5S audit system, where the presence of different waste recycling bins is checked.

  • Scope: Own operations
  • Time horizon: 2024-2025 (ongoing)
  • KPI/Target: Aim to increase recycling rate to 85% by 2027 (currently 81% in 2024, highest rate ever achieved)

Resources allocated

No specific financial resources (capex/opex) or quantified non-financial resources (FTEs, budget amounts) are disclosed for the circular economy actions.

Performance context

• Total solid waste in 2024: 1,776 tonnes (17.6% increase vs. 2023)
• Recycling rate 2024: 81% (target: 85% by 2027)
• Landfilled waste: 2% (restricted to this level in 2024)

E5-4 Resource Inflows

Barco reports resource inflows metrics for the first time in 2024, in line with CSRD requirements. The material resource flow corresponds to goods purchased during the reporting year, representing the aggregated weight of finished products or components used to assemble finished products subsequently placed on the market.

Overall Material Resource Flow

In 2024, Barco assembled 4,869 tonnes of finished products that were subsequently placed on the market.

Material Composition

*Calculated values based on percentages reported.

The reported material resource flow includes 13% of biological materials, including packaging. "Biological materials" are defined as materials that are wholly or partially derived from biological origins. For Barco, the relevant biological material streams are wood and cardboard.

Certification of biological materials: Currently, Barco does not enforce a dedicated certification scheme, which means the company cannot claim any certified percentage of biological materials, resulting in a 0% certification rate.

Secondary and Recycled Materials

In the material resource flow of procured goods, 7.3 tonnes, or 0.15% of the total mass flow, consist of secondary reused or recycled components, secondary intermediary products, and secondary materials used to manufacture Barco's products and services (including packaging).

This value represents the actual aggregated post-consumer recycled (PCR) mass weight per procured good with more than 10% recycled content. Only parts made with dedicated, specified producer polymer blends or certified by the manufacturer are included in this value.

Scope and Methodology

The material resource flow covers a non-limitative list of goods that are procured, including:

• Adhesives, PCBA, computer components
• Connectors and cable assemblies
• Cooling systems, display components
• Electronic filters, mechanical components
• Integrated circuits, packaging material
• Power supplies

Examples of materials in the mass flow are: mechanical fixations, PCBA components, plastic parts, connectors, sheet metal, packing material, fans, optical components, and cables.

Resource outflows

Recyclability and recycled content

Recyclable content: The products and materials placed on the market (including packaging) have the potential to enter the recycling stream. The recyclable content rates have been aggregated for all goods purchased during 2024. Products are assessed as placed on the EU market using Econinvent EU data. Recyclability is expressed as a percentage of the product mass that can serve as manufacturing input (End of Life - Recycling Input Rate) and calculated using the Makersite recyclability app.

18.8% of the mass of procured goods is considered recyclable.

Secondary reused or recycled components: In the material resource flow of procured goods, 7.3 tonnes, or 0.15% of the total mass flow, consist of secondary reused or recycled components, secondary intermediary products, and secondary materials used to manufacture products and services (including packaging). This value represents the actual aggregated post-consumer recycled (PCR) mass weight per procured good with more than 10% recycled content. Only parts made with dedicated, specified producer polymer blends or certified by the manufacturer are included in this value.

Product durability

All Barco products are considered when measuring the resource outflow of products and materials. The durability of products is represented by their typical operational lifetime in the field as intended. As no industry averages are available or publicly disclosed, it is not possible to provide a comparison to industry benchmarks for this initial reporting year.

Average expected lifetime by product category:

Repairability

Barco notes that the French Durability/Repairability Index and Belgian Repairability Index are to be considered as the official rating systems. Nevertheless, both indexes have B2C consumer products in scope. As a B2B company, Barco currently does not apply the repairability index but is closely following the evolutions in the different member states.

Design for circularity

Barco's ecoscore methodology embeds several criteria to boost the circularity of products:

• Improving the re-use, upgradability and modularity
• Facilitating the repair
• Raising the use of recyclable and recycled materials, both in products and in their packaging
• Focusing on improving material efficiency by making products more robust/long lasting and reducing the number of accessories

The circular design criteria are integrated into the New Product Introduction (NPI) process and taken into account when selecting suppliers. A concrete example is the sourcing of PCR plastics to integrate in products.

Product return and recycling programs

Every Barco product comes with a user manual giving customers guidance on how to handle the end-of-life stage, and also a recycling passport that offers recycling information specifically for recyclers. Customers can return used products to recycling partners free of charge.

In 2024, 69% of revenues were generated in countries where Barco participates in and offers product return and recycling programs. Where no structured program is in place yet, ad-hoc recycling and collection services are offered. All recycling partners are expected to be ISO 14001 certified and comply with legislation regarding the prohibition of e-waste export.

Anticipated financial effects from resource use and circular economy-related impacts, risks and opportunities

Phase-in exemption applied

Barco uses the phase-in exemption for ESRS E5-6 in accordance with Appendix C of ESRS 1.

As stated in the disclosure index:

Waste

Waste from own operations

The two main sources of solid waste at Barco are packaging materials (waste from own operations) and waste from repair activities. At the end of 2024, total solid waste amounted to 1,776 tonnes, a 17.6% increase compared to 2023 (1,510 tonnes). In relative terms, total solid waste is 1.9 tonnes/mio euro revenues versus 1.4 tonnes/mio euro revenues in 2023 – an increase that is attributable to extra waste in repair activity at US offices.

In 2024, the recycling rate for solid waste rose to 81%. This is the highest rate ever achieved (+ 1% vs. 2023), primarily thanks to the selection of better waste recycling partners in the US. Barco aims to increase the recycling rate to 85% by 2027.

In 2024, Barco managed to restrict the percentage of landfilled waste to 2%, in line with 2023 (due to repair activities in the US). The target is zero waste to landfill by 2027.

Waste by type and disposal method (2024)

Summary table

Waste management approach

Consolidation of all quantitative ESG data follows the operational approach principles, unless otherwise specified. Waste recycling is part of Barco's 5S audit system, where the presence of different waste recycling bins is checked.

Actions to minimize company waste (2024 and ongoing):

• Guide suppliers of incoming components and products on how to reduce packaging
• Raise awareness amongst suppliers to use recyclable packaging materials
• Encourage employees to sort waste efficiently and correctly
• Launch concrete projects in US plants to improve the recycling rate of plastic waste streams

Scope: The footprint covers 100% of Barco's activities, including all operating sites (manufacturing, R&D, offices, warehousing). All major manufacturing and research & development sites (in Belgium, China, Italy, Germany, India, Norway, Taiwan and US) are covered largely by primary data. These sites cover over 90% of the Barco owned surface. Smaller sites were estimated using benchmark data.

Policies related to own workforce

Barco discloses several policies and governance mechanisms relevant to its own workforce under ESRS S1-1, though these are dispersed across governance and social sections rather than consolidated in a dedicated S1-1 disclosure.

Code of Ethics

Policy name: Code of Ethics (also referred to as Code of Conduct)

Scope: All employees. The Code is signed off annually by each manager electronically, while every white-collar employee is invited to acknowledge receipt. Blue-collar employees receive live workshops in phases.

Key content: The Code of Ethics contains sections related to:

• Integrity at work, in business, and as a corporate citizen
• Ethical guidance and reporting misconduct
• Prohibition of violence and harassment in the workplace
• Mechanisms to raise ethical questions, dilemmas or concerns (including human rights violations) without fear of retaliation

Governance: The Code is overseen through the company-wide compliance management system. Each Barco site worldwide has a local legal & compliance responsible who promotes a compliance culture. The Global Compliance Manager addresses identified compliance gaps.

Public availability: Available at the Trust Center on Barco's website (link referenced: ethics@barco.com for questions)

Link to international standards: The Code aligns with Barco's human rights pledge (see below).

Monitoring: Annual sign-off by managers; annual acknowledgment by white-collar employees; annual risk and compliance assessment at each site covering Barco's risk universe and compliance domains.

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Human Rights Pledge

Policy name: Human Rights Pledge

Scope: Own operations and value chain

Key content: Barco commits to managing and respecting human rights in accordance with internationally recognized standards.

Link to international standards:

• Universal Declaration of Human Rights
• ILO Declaration on Fundamental Principles and Rights at Work, and the ILO eight fundamental labor conventions
• UN Guiding Principles on Business and Human Rights
• OECD Guidelines for Multinational Enterprises

Governance: Signed by the CEO; overseen through the company-wide compliance management system

Monitoring: Referenced as part of compliance oversight, specific monitoring mechanisms not detailed.

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Modern Slavery and Human Trafficking Statement

Policy name: Modern Slavery and Human Trafficking Statement

Key content: Barco does not tolerate any kind of child, forced or compulsory labor, either in its own manufacturing activities or those of its suppliers.

Scope: Own manufacturing activities and suppliers

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Whistleblower Channel Procedure

Policy name: Whistleblower Channel Procedure

Key content: In line with the EU Whistleblowers' directive, Barco has established a whistleblower reporting tool through an external service provider. The procedure allows employees, suppliers, contractors, customers, or third parties to (anonymously) report violations or suspected violations of applicable laws, regulations, or the Code of Ethics. Protection is guaranteed against retaliation.

Scope: Employees, suppliers, contractors, customers, and third parties

Public availability: The whistleblower channel procedure is available on the website under the Trust Center.

Monitoring: Reports are promptly, independently, and objectively investigated.

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Corporate Quality Policy

Policy name: Corporate Quality Policy

Key content: Commitment to deliver innovative, highly reliable, and sustainable visualization solutions meeting customer, legal, regulatory, and security requirements.

Public availability: More information available on Barco's website.

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Employee Handbooks

Reference: Working time of employees is enshrined in employee handbooks. All employees are entitled to take family-related leave.

Scope: All employees

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Additional governance mechanisms

Workers' Council Representation: Most employees in the EEA work in countries with worker's council representation (97%) and are covered by collective bargaining agreements (98%). Barco has an agreement with its employees for representation both at local level and European level (European Works Council).

Board oversight: The Remuneration and Nomination Committee focuses on Barco's Diversity & Inclusion strategy execution and Performance Management approach. People SPOC sessions are held bi-monthly with executives to discuss people-related initiatives.

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Disclosure notes

Barco references phase-in provisions for certain S1 disclosures including S1-8 (DR60c on collective bargaining outside EEA), S1-11 (social protection), S1-12 (persons with disabilities), S1-14 (DR88 d&e on health and safety), and S1-15 (work-life balance metrics), indicating these will be disclosed in the 2025 Integrated Report.

Targets related to own workforce

Barco discloses qualitative objectives and commitments related to own workforce but does not provide specific quantified targets with target years and baseline values as required by ESRS S1-5.

Health & Safety Objectives

Barco states an intention to "continue actions in the coming years to achieve the objectives of our EHS² pledge resulting in an improvement of our metrics." However, no specific quantified target values or target years are disclosed.

Diversity & Inclusion Program

Barco states: "It is our target to accelerate our diversity & inclusion program in the coming years by continuing the above described actions and taking additional actions to evolve towards a more diverse and inclusive organization."

No quantified targets, target years, or baseline values are provided.

Zero-Incident Commitments

The following zero-incident objectives are mentioned (no target year specified):

• 0 incidents of modern slavery (forced labour, human trafficking or child labour)
• 0 severe human rights incidents that are cases of non-respect of UN Guiding Principles and OECD Guidelines Multinational Enterprises
• 0 complaints filed through the Ethics mailbox
• 0 complaints filed to the NCP for OECD Multinational Enterprises
• 0 incidents of discrimination including harassment
• No fines, penalties & damages for the incidents for severe human rights issues and incidents connected to own workforce
• No material fines, penalties, compensation in damages as result of violations regarding social and human rights factors

Performance Indicators (for reference, not targets)

Gender breakdown:

Geographical distribution:

Functional group distribution:

R&D employees:

*For 2024, including integration of Cinionic

Characteristics of non-employees in the undertaking's own workforce

Number of non-employee workers in own workforce

Barco reported 157 FTE (Full Time Equivalent) non-employee workers in the own workforce at year-end 2024, representing approximately 5% on top of internal staff.

Breakdown by type

Composition and methodology

Methodology for counting: Full Time Equivalent (FTE) basis, using the same source as for employees (SAP SuccessFactors).

Purpose and roles:

• Most external resources are software engineers, including both self-employed individuals and experts employed by other companies
• Agency workers are used to manage peak demand, particularly in production (approximately 3.5% or 109 FTE in addition to internal staff)
• For certain functions where Barco struggles to find sufficient internal staff or the right competencies, external resources are used

Multi-year comparison: Not disclosed for prior years (phase-in).

Additional context

In 2024, some CLT (Core Leadership Team) members who were based in Belgium switched to self-employed status as of 1 July 2024. This switch did not lead to an increase in costs for Barco and only occurred after receiving approval from the competent authority. These individuals renounced employment protections, specifically related to notice periods for employees with significant seniority. The new management agreements uniformly foresee a maximum notice period of 12 months.

Collective bargaining coverage and social dialogue

EEA Coverage

Most employees in the EEA (European Economic Area) work in countries with worker's council representation (97%) and are covered by collective bargaining agreements (98%).

In line with the legislation, Barco has an agreement with its employees for representation both at local level and European level (European Works Council).

Country-by-Country Breakdown (EEA)

Social Dialogue Arrangements

Barco maintains social dialogue and employee representation through:

• Collective labour agreements
• Syndical meetings
• Committee for prevention and protection at work (CPBW)
• Works council
• European Works Council

Phase-in Note

Additional information related to the % of employees covered by collective bargaining agreements outside the EEA (S1-8 DR60c) will be disclosed in the Integrated Report 2025 (phase-in).

Diversity metrics

Gender diversity at top management

• 38% of Board members are female (3 heads)
• 15% of the Core Leadership Team are female (2 heads)
• 19% of general management are women (61 heads)

General management is defined based on Barco's grading system.

Age distribution of workforce

Average age of global workforce: 44 years (versus 43 in 2023)

Other diversity metrics

• 68 nationalities employed globally
• Ratio of highest paid individual vs median paid individual (global): 13.01

Gender pay gap by country and salary band

The table shows countries with 100 or more employees and salary bands with at least 20 employees. Ratios do not account for seniority.

Note: This calculation is based on base salary data in SAP SuccessFactors. Barco will update methodology in line with the upcoming Equal Pay Directive.

Multi-year comparison - gender diversity

Multi-year comparison - age distribution

Adequate wages

Benchmark and Coverage: Barco reports that 98% of employees work in countries with minimum wage regulations. Based on "current data available (benchmark data)", the company states it pays adequate wages in all countries of operation and reports 100% adequate wages by country (ESRS S1-10).

Geographic Scope: Global assessment covering all operating countries. 98% of the worldwide workforce is in countries with minimum wage regulations.

Benchmark Type: The disclosure references "benchmark data" and claims to pay "adequate wages" but does not specify whether a living wage benchmark (e.g. Fair Wage Network, WageIndicator, Anker Methodology) or only minimum wage compliance was used.

Coverage: 100% adequate wages reported by country (S1-10 metric).

Methodology: Barco states: "Going forward, it is, however, our objective to refine our methodology on adequate wages." No details are provided on the current methodology, calculation approach, or frequency of reassessment.

Targets: No specific target disclosed. The company plans to refine its methodology but states it does "not aim to take any further actions" beyond current practice.

Workers' Representation: In the EEA region, 97% of employees are covered by workers' representatives and 98% by collective bargaining agreements.

Social protection

Barco has disclosed that it is applying the phase-in provision for ESRS S1-11 (Social protection).

According to the company's phase-in statement:

"Additional information related to the % of employees covered by collective bargaining agreements outside the EEA (S1-8) and social protection (S1-11) will be disclosed in our Integrated Report 2025 (phase-in)."

The company notes in its use of phase-in provisions that S1-11 is omitted in accordance with Appendix C of ESRS 1.

No quantitative data on social protection coverage (sickness, maternity, paternity, disability, unemployment, retirement) is provided in the 2024 Sustainability Statements.

Persons with disabilities

Barco has indicated phase-in for ESRS S1-12 disclosure. No quantitative metrics or data points related to persons with disabilities are disclosed in the 2024 Integrated Report.

According to the report: "Additional information related to persons with disabilities (S-12) will be disclosed in our Integrated Report 2025 (phase-in)."

The company acknowledges using the phase-in option in accordance with Appendix C of ESRS 1 for ESRS S1-12.

Training and skills development metrics

Average training hours per employee

Overall average: 20.3 hours per person (2024)

Target: 20 hours per employee per year by 2027 (according to the 10/20/70 learning principles, increasing from 15.8 hours baseline).

Average training hours by gender

Average training hours by employee category

Not disclosed.

Performance and career development review coverage

*Note: The 2023 and 2022 overall percentages appear to represent combined coverage; gender-specific breakdown for those years is not separately disclosed.

Total investment in training

Average training investment per employee: €1,249 (2024)

Additional training metrics

Standards@Work training coverage: 98% of employees (white collars and blue collars) completed compliance and mandatory training in 2024 (99% in 2023 and 2022, white collar scope only in earlier years).

Methodology notes

• Training hours calculation: Total hours of learning or training followed divided by total number of employees at the end of the financial year.
• Training investment calculation: Total expenses for learning & development divided by total number of employees at the end of the financial year.
• Performance reviews: Based on formal talent check-ins between managers and employees covering personal growth objectives, well-being and recognition.
• The learning philosophy follows the 70/20/10 principle: 70% on-the-job learning, 20% through mentoring/coaching, 10% formal training initiatives.
• Formal external learning hours target aligns with the 10/20/70 principles.

Health and safety metrics

Coverage of health & safety management system

49% of own workforce covered by health & safety system (manufacturing sites only).

Barco has established formal management-worker health and safety committees in several countries in compliance with local legislation. These committees cover 49% of the global workforce.

Work-related fatalities

Nil work-related fatalities were recorded, neither for employees, nor for agency workers or contractors working at Barco premises.

Recordable work-related injuries

The Lost time injury frequency rate & lost time injury severity rate cover all Barco sites with manufacturing activities, taking into account internal employees only. The reported accidents are based on country-specific legislation on recordable accidents.

The significant reduction in the lost time injury frequency rate is largely attributable to improvements at the Belgian site, driven by years of effort focused on analyzing accidents and implementing preventive actions based on near-miss incident analyses.

Absenteeism rate

The definition is based on short term absenteeism (<1 year), calculated by month averages for Belgium only.

Phase-in provisions applied

Barco applies phase-in provisions under Appendix C of ESRS 1, omitting information required by ESRS S1-14 (DR88 d & e). In line with CSRD requirements, Barco plans to publish more information on health & safety in the 2025 integrated report, including:

• % of non-employees covered by a health & safety system
• Number of cases of recordable work-related ill health
• Number of days lost to work-related injuries and fatalities from work-related accidents, work-related ill health and fatalities from ill health

Work-life balance metrics

Disclosure scope

Barco uses the phase-in option to omit information required by ESRS S1-15 in accordance with Appendix C of ESRS 1. Full disclosure of work-life balance metrics (S1-15) will be provided in the 2025 integrated report.

Policy context

Barco has established specific HR policies and programs covering working time and parental leave, including:

• Employee handbook
• Telehomework policy
• Parental leave policy
• Onboarding program

The company emphasizes work-life balance as part of its people-first approach, aiming to keep employees motivated and happy by ensuring a healthy work-life balance alongside learning and growth opportunities.

Quantitative metrics

No quantitative work-life balance metrics are disclosed in the 2024 reporting period due to phase-in provisions.

Compensation metrics

Pay gap

Barco reports gender pay gaps calculated by salary band for countries with 100 or more employees and salary bands with at least 20 employees. The pay gap is based on base salary data and does not account for seniority. The table shows the minimum versus maximum female/male ratio across all salary bands in scope for each country:

In most countries, the ratio fluctuates around 100%. Only in Taiwan and Germany does Barco observe a statistically lower average salary for females compared to males. Barco notes it will update its methodology to calculate the pay gap in line with the upcoming Equal Pay Directive.

Remuneration ratio

Barco reports two remuneration ratios:

1. Highest paid individual versus median employee (Barco nv, Belgium): The ratio for 2024 is 23.22.

2. Highest FTE CEO compensation versus lowest FTE employee compensation (Barco nv, Belgium): The ratio for 2024 is 13.01 (excluding stock options).

Barco also states that the ratio of highest paid individual versus the median employee on a global level for 2024 is 13.01.

Methodology

The pay gap calculation is based on base salary data from SAP SuccessFactors and covers countries with 100+ employees and salary bands with at least 20 employees. The ratios exclude stock options and are calculated for the legal entity Barco nv in Belgium. In line with CSRD requirements, Barco also calculates the ratio of highest FTE CEO compensation (including all benefits) over the global median FTE employee compensation.

Incidents, complaints and severe human rights impacts

2024 Reporting

In 2024, Barco reported:

• 0 severe human rights incidents (forced labour, human trafficking or child labour)
• 0 severe human rights incidents that are cases of non-respect of UN Guiding Principles and OECD Guidelines for Multinational Enterprises
• 0 complaints were filed through the Ethics mailbox
• 0 complaints were filed to the NCP for OECD Multinational Enterprises
• 0 incidents of discrimination including harassment
• No fines, penalties & damages for the incidents for severe human rights issues and incidents connected to own workforce
• No material fines, penalties, compensation in damages as result of violations regarding social and human rights factors

Multi-year Data

Speak-up Culture and Remediation

Barco promotes a genuine 'speak up' culture where ethical questions, dilemmas or concerns (including human rights violations) about behavior that is unlawful or in violation of Barco's Code of Ethics or internal policies can be raised without fear of retaliation. Questions, dilemmas, concerns and/or business conduct incidents can be communicated via the Ethics mailbox (ethics@barco.com).

Concrete measures against violence and harassment in the workplace are linked to the Code of Ethics. Annually, each manager signs off the Code of Ethics, while each white-collar employee is invited to acknowledge receipt of the Code.

Policies related to value chain workers

Barco has disclosed several policies relevant to value chain workers:

Global Procurement Sustainability Commitment

• Overview: Describes how Barco collaborates responsibly with suppliers
• Key principle: Ensuring suppliers know Barco's expectations, including sustainability requirements
• Public availability: Available on Barco's website

Barco Code of Conduct for suppliers

• Scope: All suppliers
• Key content: Barco expects all suppliers to comply with the Responsible Business Alliance (RBA) Code of Conduct, including labor, ethics, and health and safety standards
• Monitoring: Screening of suppliers on human rights is conducted via adherence to the Barco Code of Conduct. In 2024, 81% of production spend was covered by signed commitments to the Barco supplier code of conduct or equivalent (versus 90% in 2023). The Code of Conduct was updated in line with the RBA code update, requiring direct spend suppliers to renew their formal adherence
• Link to standards: Aligned with Responsible Business Alliance (RBA) Code of Conduct

Product Compliance requirements

• Scope: All components delivered by suppliers
• Key content: Components must meet Barco Product Compliance requirements, including compliance with worldwide regulations (RoHS10, REACH, ecodesign requirements, ERP, SCIP), industry standards, and additional Barco criteria. Includes compliance with the Barco Substance List, restricting use of specific chemicals or requiring declaration of specific substances
• Monitoring: 84% of active components were covered by Full Material Declarations (FMDs) in 2024. 100% of active components are covered by signed hazardous substance declarations of conformity. Barco audits both existing and new suppliers, focusing on quality, compliance, and process risks

Responsible Minerals Sourcing Policy

• Key content: Managing conflict minerals as part of corporate responsibility, addressing human rights violations (child labor, human trafficking, forced labor) and armed conflicts in Conflict-Affected and High-Risk Areas (CAHRAs)
• Link to standards: Aligned with the OECD Due Diligence Guidance for Responsible Chains of Minerals from Conflict-Affected and High-Risk Areas
• Scope: In-scope suppliers are those supplying products containing tin, tungsten, tantalum, gold, or cobalt
• Monitoring: In-scope suppliers are expected to complete the Conflict Minerals Reporting Template (CMRT) and submit it to Barco. Barco performs detailed responsible minerals risk analysis on received data through cross-referencing and collaboration with members of the Responsible Minerals Initiative (RMI). In 2024, 100% of in-scope suppliers responded to the CMRT

Modern Slavery and Human Trafficking Statement

• Key content: Barco does not tolerate any kind of child, forced or compulsory labor, either in its own manufacturing activities or those of its suppliers
• Public availability: Available on Barco's website

Additional policies referenced

• Environmental guidance for suppliers: Available on Barco's website
• Terms & conditions of purchase: Available on Barco's website
• Corporate Governance Charter and Code of Ethics: Referenced in the Corporate Governance & business ethics section of the report

Implementation and engagement

• Supplier categorization: Four supplier categories (key, key+, core, and other) based on supply risk and cost relevance, triggering different levels of engagement
• Supplier assessment: All new direct spend suppliers complete a self-assessment form including sustainability questions via Barco's supplier platform. In 2024, 100% of new production suppliers were screened using the supplier self-assessment
• Training: Barco provides training to suppliers on sustainability standards including environmental compliance, ecodesign, and conflict minerals. In 2024, focus on raising awareness about PFAS/PFOS restrictions and RoHS exemptions
• Contract integration: 82% of total production spend was covered by signed contracts with a sustainability clause (MSAs or T&Cs) in 2024 (versus 88% in 2023)
• Supplier scoring: 77% of production spend was covered by supplier sustainability scores in 2024 (versus 81% in 2023)

Payment practices

• Average payment term: 61 days (DPO - days payable outstanding)
• Payment terms: Varying from immediate payment to 60 days; most common for production-related purchases is 60 days
• On-time payments: 80% of payments were made in line with the net due date in 2024 (on-time defined as within 7 days of due date)
• Late payment proceedings: No outstanding legal proceedings related to late payments in 2024

Policies related to affected communities

Barco has explicitly stated that ESRS S3-1 is not material and has been omitted from their sustainability statements.

According to the materiality assessment disclosed in the appendix tables, "The following disclosure requirements and datapoints are considered not material for Barco: ESRS E2-4, E3-1, E4-2, S2-1, S2-4, S3-1 and S3-4."

As ESRS S3-1 falls below Barco's materiality thresholds, no specific policies related to affected communities are disclosed in accordance with this disclosure requirement.

Taking action on material impacts on affected communities

Community Engagement & Relations

Barco has identified community engagement & relations as a low/medium materiality topic in its double materiality assessment. Despite this materiality rating, the company commits to maintaining its high standards and further developing actions in this area.

Strategic commitment: Barco's sustainability ambition includes empowering society for sustainability and resilience. The company states it helps ensure more people can participate in and benefit from a prospering society.

Community engagement focus areas:

• Health
• STEAM education for all

The company believes in "the power of doing good and giving back to the community."

Action approach: Barco has three levels of giving:

1. Supporting global & local efforts
2. Encouraging and empowering teams to participate in volunteering programs
3. Inspiring and motivating broader society

The company partners with non-profits and leverages employee engagement to make long-lasting impact in communities where Barco lives and works.

Resources Allocated

No specific CAPEX or OPEX amounts are disclosed for community engagement activities. The company states:

• "In 2024 no significant specific OPEX or CAPEX has been added to the regular budget cycle to reach our sustainability targets."
• Operational and capital expenditures required for implementation of action plans are "included in the regular budget cycles and strategic management plans."

Additional Information

More details on community engagement actions are referenced to be available on Barco's website. The disclosure notes that community engagement and relations was rated as low or medium material by stakeholders, but Barco remains "committed to upholding our high standards or further developing our actions in these areas."

Business conduct policies and corporate culture

Code of Ethics

Policy name: Code of Ethics

Scope: All employees and managers. Annually, each manager signs off the Code of Ethics electronically through Barco's learning management system, while every white-collar employee is invited to acknowledge receipt of the Code.

Approval and oversight: The Code of Ethics is overseen by the Ethics Committee, which is composed of senior representatives of the HR, IT, and legal functions, and acts independently from Barco's management. The Code dates back to 2010, was revised in 2017, and received a major overhaul in 2023. Updates are reported to the Board of Directors.

Key content/principles: The Code contains different sections related to integrity at work, in business, and as a corporate citizen, as well as ethical guidance and reporting misconduct. It addresses gender equality, diversity, work-life balance, measures against violence and harassment in the workplace, health and safety, and elimination of discrimination.

Public availability: The Code of Ethics can be found at the link provided on Barco's website (specific URL referenced in excerpts).

Link to international standards: Not explicitly disclosed in the excerpts.

Monitoring implementation: Every year, the Compliance Officer provides a report to the Audit Committee and Board of Directors on the application of Corporate Governance and the Code of Conduct. In 2024, the Compliance Officer reviewed the report with the Audit Committee. Local legal & compliance responsibles at each Barco site worldwide are in charge of promoting a compliance culture and complete annual risk and compliance assessments.

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Corporate Governance Charter

Policy name: Corporate Governance Charter & Code of Conduct

Scope: Company-wide operations.

Approval and oversight: Board of Directors.

Key content/principles: Barco embraces the principles of good management and transparency laid down in the 2020 Belgian Code on Corporate Governance. The charter incorporates and supplements the corporate governance terms set forth in the Belgian Code. Solid corporate governance is at the heart of Barco and forms an integral part of the corporate strategy.

Public availability: Referenced as available but specific URL not provided in excerpts.

Link to international standards: Based on the 2020 Belgian Corporate Governance Code.

Monitoring implementation: The Audit Committee reviewed the report provided by the Group's compliance officer on the application of Corporate Governance and the Code of Conduct.

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Human Rights Pledge

Policy name: Human Rights Pledge

Scope: Own operations and value chain.

Approval and oversight: Signed by the CEO. Overseen through the company-wide compliance management system.

Key content/principles: Barco commits to managing and respecting human rights in both its own operations and the value chain. Barco does not tolerate unacceptable worker treatment, such as exploitation of children, physical punishment, abuse, or involuntary servitude.

Public availability: The full text of the Human Rights pledge can be consulted on Barco's website (specific link referenced).

Link to international standards: The pledge is in accordance with:

• The Universal Declaration of Human Rights
• The International Labor Organization's (ILO) Declaration on Fundamental Principles and Rights at Work, and the ILO eight fundamental labor conventions
• The UN Guiding Principles on Business and Human Rights
• The OECD Guidelines for Multinational Enterprises

Monitoring implementation: The screening of suppliers on human rights is conducted via adherence to the Barco Code of Conduct.

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Whistleblower Policy

Policy name: Whistleblower Channel Procedure

Scope: Employees, suppliers, contractors, customers, and third parties.

Approval and oversight: The whistleblower tool is monitored by the compliance function. The Ethics Committee investigates reports and acts independently from Barco's management.

Key content/principles: In line with the EU Whistleblowers' directive, Barco has set up a whistleblower reporting tool through an external service provider. Employees, suppliers, contractors, customers, or third parties can use this tool to (anonymously) report any violation or suspected violation of applicable laws and regulations or the Code of Ethics. Protection is guaranteed against retaliation for individuals that use the reporting tool to raise concerns.

Public availability: The whistleblower channel procedure can be downloaded from the website under the Trust Center.

Link to international standards: In line with the EU Whistleblowers' directive.

Monitoring implementation: 7 reports were submitted in the whistleblower tool in 2024. All reports are promptly, independently, and objectively investigated.

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Modern Slavery and Human Trafficking Statement

Policy name: Modern Slavery and Human Trafficking Statement

Scope: Own manufacturing activities and suppliers.

Key content/principles: Barco does not tolerate any kind of child, forced or compulsory labor, either in its own manufacturing activities or those of its suppliers.

Public availability: Referenced as available on website.

Link to international standards: Not explicitly disclosed.

Monitoring implementation: Not explicitly disclosed in excerpts.

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Global Procurement Sustainability Commitment (Barco Code of Conduct for Suppliers)

Policy name: Global Procurement Sustainability Commitment / Barco Code of Conduct for Suppliers

Scope: All suppliers. Updated in 2024 following the Responsible Business Alliance's new Code of Conduct.

Key content/principles: Barco expects all suppliers to comply with the Responsible Business Alliance (RBA) Code of Conduct, including labor, ethics, and health and safety standards. The commitment describes how Barco wants to collaborate responsibly with suppliers.

Public availability: More information available on Barco's website.

Link to international standards: Based on the Responsible Business Alliance (RBA) Code of Conduct.

Monitoring implementation: At the end of 2024, 81% of suppliers (based on production spend) had committed to the renewed Barco Code of Conduct for suppliers or have a similar code. 100% of new production suppliers were screened using the supplier self-assessment. Sustainability clauses are part of Barco's terms and conditions and master supply agreements.

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Responsible Minerals Sourcing Policy

Policy name: Responsible Minerals Sourcing Policy

Scope: In-scope suppliers (suppliers of products containing tin, tungsten, tantalum, gold, or cobalt).

Key content/principles: Managing conflict minerals is part of Barco's corporate responsibility. Barco is concerned about human rights violations (child labor, human-trafficking, forced labor, etc.) and armed conflicts causing extreme violence across Conflict-Affected and High-Risk Areas (CAHRAs).

Public availability: Referenced as available on website.

Link to international standards: Aligned with the OECD Due Diligence Guidance for Responsible Chains of Minerals from Conflict-Affected and High-Risk Areas.

Monitoring implementation: In-scope suppliers are expected to complete the Conflict Minerals Reporting Template (CMRT) and submit it to Barco. Barco performs detailed responsible minerals risk analysis on the data received through cross-referencing and close collaboration with members of the Responsible Minerals Initiative (RMI). In 2024, 100% of in-scope suppliers responded to the CMRT.

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Diversity & Inclusion Program

Policy name: Diversity & Inclusion Program

Scope: Company-wide, embedded in organizational culture.

Approval and oversight: Set as a strategic priority by the Board of Directors in 2021. Progress discussed at Executive Sustainability Steering Committee meetings.

Key content/principles: Strategic program to become a more diverse and inclusive organization, covering diversity, gender equality, and inclusion.

Monitoring implementation: The inclusion index was measured through the employee engagement survey in 2024, resulting in a score of 77. A D&I calendar was implemented with monthly campaigns. Mandatory D&I e-learning was introduced for white-collar employees, and live workshops are being rolled out for blue-collar employees.

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Standards@Work Training Program

Policy name: Standards@Work

Scope: All employees, with role-specific mandatory training for designated employees in customer-facing roles.

Oversight: Hosted by Barco University, Barco's in-house training and development center.

Key content/principles: Company-wide training program covering cybersecurity, data protection, environmental sustainability, quality, safety, and ethics. Includes in-depth annual mandatory training on anti-corruption, anti-trust, and healthcare regulatory compliance for employees at risk.

Monitoring implementation: In 2024, 98% of employees followed the Standards@Work training program. All employees in functions at risk (11.4% of employees) followed anti-corruption training. Attendance is tracked via Barco's learning management system.

Incidents of corruption or bribery

Confirmed incidents

Barco reported zero confirmed incidents of corruption or bribery during the 2024 reporting period.

Convictions and fines

• Number of convictions: 0
• Amount of fines paid for violations of anti-corruption and anti-bribery laws: €0

No legal cases regarding corruption or bribery were brought against Barco or its own workers during 2024.

Disciplinary actions

Zero confirmed incidents in which own workers were dismissed or disciplined for corruption or bribery-related incidents.

Contracts terminated

Zero confirmed incidents relating to contracts with business partners that were terminated or not renewed due to violations related to corruption or bribery.

Investigation procedures and speak-up mechanisms

Barco actively promotes a genuine 'speak up' culture where ethical questions, dilemmas or concerns (including human rights violations) about behavior that is unlawful or in violation of Barco's Code of Ethics or internal policies can be raised without fear of retaliation.

Ethics mailbox: Questions, dilemmas, concerns and/or business conduct incidents can be communicated via the Ethics mailbox (ethics@barco.com). The mailbox is monitored by Barco's Ethics Committee, composed of senior representatives of the HR, IT, and legal functions, acting independently from management. The Committee provides guidance on ethical issues and investigates business conduct incidents. In 2024, 12 issues were reported to the ethics mailbox.

Whistleblower reporting tool: In line with the EU Whistleblowers' directive, Barco has established a company-wide whistleblower reporting tool through an external service provider. Employees, suppliers, contractors, customers, or third parties can use this tool to report any violation or suspected violation of applicable laws and regulations or the Code of Ethics, including allegations or incidents of corruption or bribery. Protection is guaranteed against retaliation for individuals using the reporting tool. 7 reports were submitted via the whistleblower tool in 2024.

All reports filed through the whistleblower tool are promptly, independently, and objectively investigated according to Barco's whistleblower channel procedure.

Anti-corruption training

In 2024, 11.4% of employees in functions at risk (employees in customer-facing roles) followed anti-corruption training as part of Barco's Standards@Work training program. This training is mandatory for designated employees based on their role and functions at risk, particularly those in sales and customer-facing positions.

Political influence and lobbying activities

Political engagement approach

Barco maintains dialogue and engages in discussions with policymakers and regulatory agencies in matters relevant to its operations. This engagement occurs directly or indirectly through trade and business associations.

The company is a member of various trade and business associations, non-governmental organizations, platforms and networks, and non-profit organizations (supporting local entrepreneurship, innovation research and international exchange and trade).

Political contributions

Barco does not make donations or other contributions of any kind to political parties.

Materiality assessment

Barco deems the activities related to lobbying and political influence not material for the company.

Stakeholder engagement

Barco engages with society representatives – government and public authorities through public consultations, meetings and events, and its ethics helpline. The engagement aims to:

• Ensure regulatory compliance
• Promote sustainability across the sector
• Ensure external stakeholders can flag unethical behavior through appropriate channels

Barco also engages with society representatives – industry associations, NGOs, and academics through meetings and events, specific projects, and the ethics helpline. These engagements focus on:

• Monitoring and understanding sustainability trends
• Enabling industry engagement with policymakers
• Setting up cross-sector partnerships on sustainability
• Developing industry standards on sustainability
• Sharing knowledge and best practices

Payment practices

Average payment time

The average number of days on which Barco pays its suppliers amounts to 61 days, calculated as the DPO (days payable outstanding).

Days payable outstanding (DPO) calculation: Trade Payables / (Material cost + Services and other costs) x 365

Standard contractual payment terms

Barco has varying payment terms with suppliers, ranging from immediate payment to 60 days.

• Production-related purchases: Most common payment term is 60 days
• Purchased services: Payment terms vary between 30 days or less and 60 days

For 98% of Barco's spend, suppliers are paid weekly or twice per month based on invoices due on the payment date, provided all necessary approvals are in place and goods or services have been delivered. This approach applies uniformly, regardless of supplier size or Barco's purchasing power.

Payments aligned with standard terms

In 2024, 80% of payments were made in line with the net due date mentioned on the invoice.

Considering Barco's weekly or bi-monthly payment cycles, on-time payments are those made within 7 days of the due date.

Legal proceedings for late payment

Currently, Barco has no outstanding legal proceedings related to late payments.

Payment practices related to SMEs

Barco's supplier payment practices related to SMEs are included in the general supplier payment procedure (including guidelines to prevent late payments). The company will update its supplier payment policy in the coming years.

Trade payables

Trade payables evolved back to a more normalized level towards the end of 2024. The decrease in trade payables in 2023 was the result of a significant slowdown of raw material purchases throughout the year in order to reduce inventory levels. In 2022, higher purchases were caused by higher sales in the 4th quarter (+29% year-over-year). Payment terms with suppliers were not extended and there has been no change in payment behavior towards suppliers.