Beiersdorf AG

As required by law in Germany for stock corporations (Aktiengesellschaften), Beiersdorf AG has a dual management and supervisory structure consisting of the Executive Board and the Supervisory Board.

Executive Board

Our Executive Board takes sole responsibility for managing the company and conducting the company's business. It performs its duties in the company's best interests and is dedicated to sustainably increasing the enterprise value. The members of the Executive Board are appointed by the Supervisory Board. An Executive Committee was established to support the operational control of the Beiersdorf Group's Consumer Business Segment. This comprises the members of the Executive Board and two individuals with global management functions.

The Beiersdorf Group Executive Board has seven members, in 2024 43% of them were female (Astrid Hermann, Nicola D. Lafrentz, and Grita Loebsack).

Collectively, all members of the Executive Board must possess extensive relevant international experience aquired from years of working abroad or special expertise in our key international markets. Sector-specific knowledge is also required.

Primary responsibility for sustainability matters within the Executive Board lies with the Chairman of the Executive Board, Vincent Warnery, and Labor Director Nicola D. Lafrentz. Within the Executive Committee, Dr. Gitta Neufang (Chief Research & Development Officer) and Michael Frey (Chief Supply Chain Officer) also have environmental, social, and governance (ESG) expertise. Dr. Gitta Neufang is also a sponsor of the Sustainability Council, the cross-functional management body for material sustainability matters in the Consumer Business Segment.

Supervisory Board

Our Supervisory Board comprises 12 members. In 2024

• 58% were female,

• 50% of shareholder representatives and 100% of employee representatives were independent within the meaning of the German Corporate Governance Code in the opinion of the Supervisory Board, and

• six members were employee representatives.

The Supervisory Board ensures that its members collectively have the knowledge, skills, and professional experience needed to perform their duties properly. In terms of their expertise, the members must collectively, in accordance with § 100 (5) Aktiengesetz (German Stock Corporation Act, AktG), be familiar with the sector in which the company operates; in addition, there must be at least one member with expertise and experience in each of the following specific areas:

• Business areas and sectors (consumer goods, beauty and skin/body care, international markets, including emerging markets)

• Marketing and Sales (brand development and management, distribution and retail, communication and media)

• Research and Development (R&D), including innovation management

• Supply Chain (supply chains and production)

• Human Resources and Organization (personnel development and management, corporate organization, corporate culture, diversity)

• ESG (sustainability, corporate social responsibility, ethics)

• Law and Governance (law, compliance, auditing, regulatory law, corporate governance)

• Information Technology (IT) and Digitalization (digitalization, data management, IT and IT security)

• Finance (finance and controlling, accounting and auditing, each including sustainability reporting, risk management and internal control systems)

Donya-Florence Amer has been responsible for ESG matters within the Supervisory Board since 2024.

Our Group-wide Corporate Sustainability function is responsible for setting the strategic direction of our sustainability activities and regularly reports to the Executive Board on progress and the need for action. This Corporate Sustainability function reports monthly directly to the Chairman of the Executive Board of Beiersdorf AG, who is responsible for sustainability. The Chief Financial Officer receives quarterly reports on matters relating to compliance and reporting (e.g., the Lieferkettensorgfaltspflichtengesetz (German Supply Chain Due Diligence Act, LkSG), the "Corporate Sustainability Due Diligence Directive" (CSDDD), the CSRD, and the "European Deforestation Regulation" (EUDR)). Meetings are also held with members of the Executive Board, Executive Committee, Supervisory Board and the entire Executive Board, as needed. The Audit Committee receives reports of sustainability matters two to three times per year.

Two cross-functional steering committees oversee the management of material sustainability matters: the Sustainability Council for the Consumer Business Segment and the Global Executive Committee for tesa. The directors of all relevant business units headed by the members of the Executive Board are represented on the Sustainability Council. This committee convenes at least once every quarter. The Global Executive Committee at tesa is composed of the members of the Executive Board and other executives. The committee meets every two weeks; it also discusses sustainability-related topics in the course of its meetings. In addition, the Chief Sustainability Officer reports directly to the Chairman of the Executive Board of tesa.

The following sustainability matters were discussed at Executive Board and Supervisory Board meetings during the reporting year:

• Sustainability reporting

• Human rights risks

• Biodiversity

• Climate change adaptation

• Social protection

• Diversity

• Circular economy

The regular reports on sustainability matters to the Executive Board and the Supervisory Board are intended to ensure that they consider material impacts, risks, and opportunities in their oversight of the strategy, decisions on major transactions, and in risk management, and that trade-offs are dealt with if necessary.

The Executive Board is responsible for ensuring internal control and risk management that is commensurate with the business activities and risk situation. This includes sustainability-related targets relevant to the company. The Executive Board provides the Supervisory Board with regular, timely, and comprehensive reports (approx. three to five times a year and additionally in urgent cases) on all questions of relevance to the company, also regarding sustainability in particular, and explains discrepancies between the actual course of business and the planning and targets.

Achievement of sustainability targets is firmly enshrined in the Beiersdorf remuneration and incentive schemes. This underscores the Executive Board's responsibility for creating long-term value for people, the environment, and society.

The Supervisory Board is responsible for the determination of the remuneration of the members of the Executive Board. The total remuneration payable to the members of the Executive Board is composed of fixed and variable elements. The fixed remuneration, which is not tied to performance, comprises the base remuneration plus ancillary benefits. The variable, performance-related remuneration is composed of a short-term variable bonus with annual targets (variable bonus) and a long-term variable bonus (LTP). The sustainability and ESG-related targets are integrated into this variable remuneration.

Variable bonus

The members of the Executive Board receive a variable bonus tied to the performance of the Consumer Business Segment for each financial year. This is paid out after the Annual General Meeting of the year following the financial year in question. The variable bonus is composed of joint and individual performance criteria that are tied to the company's financial and non-financial performance as well as its strategic and operational development. The specific performance criteria can also be related to sustainability or ESG.

The performance criteria within the individual variable bonus targets in 2024 included (depending on the member) reduction of greenhouse gas emissions, receipt of the Triple-A rating from CDP, NIVEA sustainability projects, gender diversity, internationalization, and other diversity and inclusion targets. The average proportion of sustainability and ESG-related performance criteria in the 2024 variable bonus was 18% of target remuneration.

Long-term bonus (LTI)

Executive Board members receive a multi-annual bonus measured, in accordance with the currently valid remuneration system, on the basis of the targets for the achievement of strategic criteria after the expiry of a four-year bonus period from 2021 through 2024 (LTP 2021–2024). Climate-related targets accounted for 20% of the weighting of the entire LTP 2021–2024 (based on target remuneration). The climate targets were to reduce global Scope 1, 2, and 3 emissions by 20% (vs. 2018) and increase the share of recycled materials in plastic packaging by 20%, both by 2024. Targets relating to diversity and employee development also accounted for 20% of the weighting.

The average proportion of sustainability and ESG-related targets in the entire performance-related variable remuneration for 2024 was 32% of target remuneration.

As part of a risk analysis, the relevant positions and their associated processes were identified along with the key risks for sustainability reporting. Group-wide safeguarding and control measures have been defined for these positions and processes.

These measures include, among others, segregation of duties, manual approval processes based on the four-eyes principle, IT controls, access restrictions, and authorization concepts within the IT system, as well as system-supported procedures for data processing.

Compliance with recording and control mechanisms is regularly reviewed by Internal Audit. Sustainability-related risks are recorded and consolidated in an integrated IT system. In close coordination with Internal Audit, the Executive Board continuously monitors and oversees these safeguarding and control measures.

To meet the increasingly complex requirements of sustainability reporting, Beiersdorf will continue to expand its internal control system in the future.

With a portfolio of global brands, Beiersdorf has developed into one of the world's leading companies in the consumer goods industry over the past 143 years – with over 190 international subsidiaries and more than 22,000 employees worldwide. Our business is divided into two separate, independently operating business segments: Consumer and tesa. As a wholly-owned subsidiary of Beiersdorf AG, tesa SE has been operated as an independent subgroup with its own management and corporate strategy since 2001.

In the Consumer Business Segment, our focus is on skin and body care for end consumers. We are represented in three market segments with our worldwide brands NIVEA, Eucerin and La Prairie: the mass market, dermocosmetics, and the premium segment. Our products are sold in 180 countries, with Europe representing our main sales market.

In the tesa Business Segment, we concentrate on developing innovative adhesive tapes and self-adhesive solutions for industry, craft businesses, and end consumers. In the Industry division, tesa supplies specialized product and system solutions directly to industrial customers, especially in the automotive, electronics, printing and paper, and building and construction industries worldwide.

The tesa Consumer division encompasses those markets in which retail partners or retail-like channels supply end consumers with market-driven products. These include product ranges aimed at private consumers and craftspeople. tesa also uses e-commerce business to offer products for sale directly to end customers. The Consumer business is focused on Europe and Latin America. It sells both long-established and innovative product solutions intended for various applications, including for daily use in offices, at home, and in crafts.

In total 22,678 employees had an active employment contract with Beiersdorf as of December 31, 2024.

Value chain

Beiersdorf relies on extraction of raw materials for the production of its products. The raw materials used are associated with the following activities: cultivation and harvesting of agricultural raw materials (primarily palm oil, soy, coconut, wood, and natural rubber), animal husbandry (tallow), and mining and extraction of fossil and mineral raw materials. These raw materials are processed and refined to produce emulsifiers, surfactants, oils, adhesives and other substances, as well as packaging materials. We procure these raw materials from our suppliers via multi-tier supply chains and use them at our production sites. The intermediate products that we procure directly are primarily chemical products and packaging materials comprising plastic, aluminium, glass and paper.

Beiersdorf manufactures a wide range of products in its own operations. The Consumer Business Segment focuses on development and production of skin and body care products, and the tesa Business Segment makes self-adhesive product solutions for industrial customers and consumers. There are 15 production centers for the Consumer Business Segment, located in Europe, North and South America, Africa and the Asia-Pacific region. These centers focus on mixing and filling activities and produce primarily for their local and regional markets. tesa has seven production centers in Germany, Italy, the USA, China and Vietnam. The production network is supplemented by selected third-party manufacturers (3PMs).

Our production sites and 3PMs deliver the goods to our customers via a network of warehouses and distribution centers. Most warehousing and transportation services are purchased externally. Two warehouses are owned and operated by Beiersdorf. Individual adjustments to products shortly before dispatch (last minute adjustments and co-packing) are largely integrated into warehouse operations. Products are largely distributed to customers by truck and sea freight, increasing also by rail, and in exceptional cases by air freight.

Products in the Consumer Business Segment are predominantly delivered to food retail partners, who sell our products to the end consumers. The tesa Business Segment primarily supplies industrial customers, and to a lesser extent retail partners from the food and building materials sectors.

We rely on agile supply chains, and perform ongoing analyses of our production and supply networks and update them as necessary to ensure procurement of our most important materials and address the needs of our customers and consumers.

The transition to a more environmentally-friendly and socially responsible economy requires collective action. We are therefore in continual dialog with our stakeholders and endeavor to understand their positions, concerns and expectations. We share the insights from this dialog several times per year in the relevant decision-making bodies and with the Executive Board and Supervisory Board. This enables us to subject our business strategy to constant scrutiny and make targeted adjustments as necessary.

The table below lists the material sustainability-related impacts, risks, and opportunities (IROs) that we have identified in our ESRS-compliant materiality assessment. The IROs are allocated to the topical ESRS and the sub-topics listed in ESRS 1. All listed IROs are covered by the ESRS requirements and no further entity-specific topics were identified. The IROs generally apply to both, the Consumer Business Segment and the tesa Business Segment; exceptions are clearly indicated in the table.

The identified impacts on the environment and people are all to be put into the context of our business model as a global consumer goods manufacturer. The impacts in our own operations are primarily associated with the process of manufacturing our products. Impacts in the upstream and downstream value chain arise through our business relationships with suppliers that supply us with raw materials and intermediate products or deliver our products. Impacts also arise through the use and disposal of our products by consumers or at the end of the product life cycle.

Our business model and strategy are heavily influenced by the necessity for sustainable conduct. The direct effects of the impacts, risks, and opportunities listed below are already noticeable: They include the increasing regulatory pressure, potential reputational risks, transitioning our production sites, and the need for good working conditions both for our own staff and throughout the value chain. We expect additional challenges going forward, such as rising costs, stronger shifts in consumer preferences, and operational adjustments to meet regulatory requirements.

Beiersdorf performed a qualitative analysis of the resilience of its corporate strategy and business model with a view to the material IROs in 2024. The focus was on the extent to which these topics are integrated in the business processes, strategy, and reporting. The results of the analysis underpin the assessment that the company is capable of addressing the material impacts and risks and taking advantage of its material opportunities. Sustainability is firmly enshrined in our business strategy and integrated in our strategic planning with the objective of ensuring the long-term success and resilience of our company.

As regards the identified opportunities and risks, we do not expect any material financial effects on Beiersdorf's net assets, financial position, results of operations this reporting year or next.

E1 Climate Change

E2 Pollution

E3 Water and Marine Resources

E4 Biodiversity and Ecosystems

E5 Resource Use and Circular Economy

S1 Own Workforce

S2 Workers in the Value Chain

S3 Affected Communities

S4 Consumers and End-Users

G1 Business Conduct

We have relied on materiality assessments as a strategic tool to orient our sustainability strategy and our reporting since 2011. In 2024, we revised our materiality assessment process extensively in line with new requirements under the ESRS, and performed a double materiality assessment pursuant to ESRS provisions. We also consolidated the assessment at Group level for the tesa and Consumer Business Segments.

The first step of the assessment involves defining potential and actual positive and negative impacts, as well as financial risks and opportunities. To do this, we identified business activities along our entire value chain at the level of the sub-topics specified in the ESRS, in which impacts, risks, and opportunities could arise. This allocation of the value chain provided an overview of potential interdependencies between the environmental and social impacts and the associated risks and opportunities within the materiality assessment. As a player in the cosmetics and FMCG industry, our focus is on resource use, packaging management and supply chain conditions. For example, we analyze how the extraction and processing of key raw materials such as palm oil or water produce environmental risks such as deforestation or water scarcity, while addressing social challenges such as fair working conditions in the supply chain. These interactions are analyzed not only for potential risks, but also for opportunities such as innovative packaging solutions or sustainable raw material alternatives. The aim is to ensure that our sustainability strategy is not developed in isolation, but as a dynamic response to complex interdependencies.

Our data basis was drawn from internal sources such as topic-specific risk analyses, and external data sources that deal with industry-specific risks.

We considered both our own operations and the upstream and downstream value chain in identifying and assessing the impacts of our company on people and the environment. The focus was on our main business activities, product groups, business relationships, and key raw materials supply chains in which multiple negative and positive impacts, opportunities, and risks are likely. Individual sites and assets were not reviewed and affected communities were not consulted with a view to impacts, opportunities, and risks in the areas of pollution, water, resource use and circular economy. In some cases, individual impacts were assessed separately because of the different business models of the Consumer and tesa Business Segments.

In the next step, these impacts, risks, and opportunities were assessed and prioritized in several internal workshops involving representatives from all affected departments. In planning the workshops, we made sure that specialist representatives were in attendance, who were in regular dialog with relevant external stakeholders and whose perspectives could therefore be directly included in the discussions. No external experts were involved.

The assessment of impacts, risks, and opportunities was based on the methodology and thresholds set out in the implementation guidance of the "European Financial Reporting Advisory Group" (EFRAG). Negative impacts were assessed in terms of scale, scope and irremediable character, and potential impacts in terms of likelihood. Positive impacts were not assessed in terms of irremediable character. Having assessed the positive and negative impacts, we classified these according to the scales and materiality thresholds determined by the EFRAG.

In our financial materiality assessment, the likelihood of occurrence and the potential scale of the financial effect were considered. We applied the scales and thresholds used in the Group-wide risk management system. This was also a net risk assessment, in line with the Group-wide risk management system. Such methodological alignment is intended to ensure that the knowledge obtained from the materiality assessment can be integrated into the company's general risk management and thus also in the associated management processes. Sustainability risks are generally regarded as equally as important as other risk types in the Group-wide risk management system. Where sustainability risks are categorized as strategic risks, they are given special consideration.

Where an impact, opportunity, or risk exceeded the materiality threshold, the associated topic was classed as material. The final results were then validated by the relevant sustainability bodies from the two business segments: the Sustainability Council (Consumer Business Segment) and the Executive Committee (tesa Business Segment). The Executive Board and Supervisory Board (Audit Committee) of Beiersdorf AG were also informed and discussed the possible strategic implications of the results.

Based on the impacts, risks and opportunities identified as material, Beiersdorf selected the disclosures to be reported and assigned material data points to the IROs. Data points that are voluntarily reported or subject to phase-in options were eliminated. Where Beiersdorf identified individual data points or data elements in the remaining data points that were not considered material due to company-specific circumstances, these were not included in the reporting.

Monitoring identified impacts and risks is a key part of our sustainability management. Developments and progress within the framework of our sustainability strategy are measured against clearly defined KPIs and targets, allowing any necessary adjustments to be made at an early stage. The results are presented to the relevant committees so that the identified risks and impacts can be strategically addressed. Regular reviews of the materiality assessment ensure that our actions remain relevant. The materiality assessment is scheduled to be reviewed during reporting year 2025 and updated as necessary.

Assessment of climate-related impacts, risks, and opportunities

To identify climate-related impacts in the materiality assessment, we considered in particular our Scope 1–3 emissions, in order to take account of the impacts from both our own operations and the upstream and downstream value chain. We perform regular analyses to assess physical and transition climate risks and opportunities – most recently in 2023 – in line with the requirements of the "Task Force on Climate-related Financial Disclosures" (TCFD). These results were also included in the materiality assessment. The transition risks and opportunities were assessed based on the "Net Zero Emissions by 2050" (NZE) scenario of the "International Energy Agency" (IEA). This involved assessing the extent to which certain business activities and assets are directly or indirectly affected by regulatory, technological, reputational or market risks, the scale and likelihood of the impacts, and which remediation actions Beiersdorf takes.

We also performed an additional site-specific assessment of physical risks for all production sites in 2024. This was based on currently available scientific findings and relevant methods in line with the latest report by the "Intergovernmental Panel on Climate Change" and recognized scientific publications. The assessment covered both chronic and acute natural hazards, aiming to identifying all material risks to production sites under current and future climate conditions. We analyzed the hazards based on an ensemble of 20 climate models, taking into account emission scenarios SSP1-2.6, SSP2-4.5 and SSP5-8.5 for four periods (2000, 2030, 2050, 2085).

The three emission scenarios covered the entire spectrum of currently conceivable developments:

• SSP1-2.6: This scenario assumes a slight increase in emissions from 2020 with an increase in temperature of below 2 °C against pre-industrial levels. This requires extensive climate change mitigation actions.

• SSP2-4.5: This scenario represents a medium emission pathway, with a balance between climate change mitigation actions and economic performance. There is a moderate increase in GHG emissions as fossil fuels continue to be used, resulting in a greater need for adaptation strategies, especially in vulnerable regions.

• SSP5-8.5: This scenario assumes a sharp rise in emissions. Increased use of fossil fuels and an energy intensive lifestyle result in a temperature rise of around 5 °C by the end of the century. Minimal climate change mitigation actions are implemented. Climate adaptation challenges require international coordination.

A site and building-based risk assessment was carried out for each climate-related hazard. The risk comprises the threat at the site due to natural hazards (hazard analysis) and the associated damage potential for the property assessed (vulnerability).

Assessment of impacts, risks, and opportunities related to biodiversity and ecosystems

We applied a two-step process to assess actual and potential impacts on biodiversity and ecosystems, both from our own operations and along the upstream and downstream value chain. First, we performed a traceability study on our palm oil supply chain. It then assessed biodiversity risks in the specific regions of our own sites and the oil mills in the upstream supply chain using such tools as the WWF's "Biodiversity Risk Filter" (BRF) and "Water Risk Filter" (WRF). Moreover, as a founding member of the "Action for Sustainable Derivatives" (ASD), we have been conducting an annual transparency analysis of our palm oil supply chain since 2019 to identify hotspots, disclose upstream supply chains, and support targeted local projects.

The WWF's BRF covers both the regions in which our sites are located and the sector in which we operate. Together, these factors determine the overall biodiversity risk of a site, using 33 indicators that cover different aspects of biodiversity risk. A risk score is calculated for every indicator based on an assessment of the state of the biodiversity-related issue at a specific site and the dependency/impact of the sector on this indicator. Dependency in this context means that the selected sector relies on ecosystems, for instance to provide water and wood, or to regulate and mitigate environmental impacts. On the other hand, sectors have an impact on biodiversity at their sites, for example through direct or indirect exploitation, pollution and land-use changes (including conversion, degradation and changes to ecosystems).

Physical risks were assessed based on our dependency on intact ecosystems and our exposure to ecosystem degradation and natural hazards. Sites located in regions with high water scarcity or poor soil conditions may be exposed to greater physical risks. The BRF assesses these risks by taking into account the local environmental conditions and the dependency of the industry on ecosystem services. The tool also assesses transition risks by considering how political changes, consumer trends, and technological developments could affect the business activities of a sector.

At present, Beiersdorf does not consider systemic risks in its assessment and has not directly consulted affected communities on the materiality assessment of shared biological resources and ecosystems.

None of our production centers coincide with biodiversity-sensitive areas as defined in the WWF's BRF. Therefore, the activities at these sites neither negatively affect these areas, nor lead to deterioration of natural habitats or the habitats of species. We have not so far assessed whether we need to implement actions to mitigate the impact on biodiversity associated with our business activities, as set out in Directive 2009/147/EC of the European Parliament and the Council.

Climate change mitigation is a key area of activity in the sustainability strategies of the Beiersdorf Consumer and tesa Business Segments. In 2024, we developed and published a "Climate Transition Plan" that serves as our roadmap to our 2032 climate targets and sets us on the path to Net Zero emissions by 2045. Our climate targets are in line with the "Paris Agreement" and are set out in detail in the sections "Targets related to climate change" and "Metrics related to climate change."

The "Climate Transition Plan", which incorporates requirements of the "Science Based Target initiative (SBTi) Net Zero Standard" and the "Technical Note on Climate Transition Plan" from CDP, is a culmination of collaborative efforts across all business functions. It builds upon sectoral Net Zero transition plans in energy, chemicals, and aluminium. The transition plan is integrated into our vision for the future of our brands and the cosmetics sector. It is aligned with the Beiersdorf business strategy and was approved by the Executive Board in June 2024.

Under our corporate business strategy "Win with Care", we are committed to leading in climate change mitigation. Our strategic choice of performance with purpose is demonstrated by our goal of achieving Net Zero by 2045. This target will be realized through the transformation of our business and our entire value chain, driven by collaborative efforts.

Beiersdorf identified key actions to initiate the decarbonization journey based on an assessment of technical and market readiness. An important building block is the transformation of production infrastructure. Increasing energy efficiency, expanding renewable energies, and electrification are among the key decarbonization levers. As part of the reduction of indirect GHG emissions along the value chain, the focus is on switching to sustainable materials for packaging and ingredients, and low-carbon logistics. Moreover, engaging with suppliers and customers is crucial for achieving our climate targets.

Policies related to climate change mitigation and adaptation

Beiersdorf has established policies to mitigate climate-related negative impacts and adapt to identified climate risks, with ambitions for both own operations and the value chain. These commitments are outlined in corporate policies, with ambitions detailed through corresponding action plans and translated into concrete actions in climate change mitigation and adaptation, energy efficiency, and renewable energy deployment.

Beiersdorf Environmental Policy (Consumer Business Segment)

Scope: Consumer Business Segment

Note: The excerpts indicate that the Consumer Business Segment has an "Environmental Policy" that states its commitments, but the full content and details are not provided in the excerpted text.

Environmental Guidelines (tesa)

Scope: All tesa operations globally

Governance and oversight:

• The tesa management board is involved in monitoring policy implementation through a yearly management review
• Operational responsibility lies with the environmental and energy experts at the respective locations

Public availability: The policy is publicly available on the company website for all relevant stakeholders

Actions and resources in relation to climate change policies

Beiersdorf has identified several levers and actions to achieve its climate targets, organized by value chain scope:

Product Transformation Actions

Packaging innovations:

• NIVEA cream tin conversion: Converted blue NIVEA cream tin to 80% recycled aluminum
• NIVEA Body Lotion redesign: Re-invented assortment with improved formulas and developed lightweight packaging
• Targets by 2032 (global product portfolio):
  • 100% of plastic packaging made of recycled or renewable materials
  • 100% designed for recycling
  • 100% of soaps free from tallow
  • 100% of cosmetics free from synthetic polymer microparticles
  • 90% of ingredients biodegradable

Active ingredient innovation:

• Thiamidol® expansion: Expanding use of anti-pigmentation ingredient across entire brand portfolio globally. Received regulatory approval in China (November 2024); first products expected early 2026
• Epigenetic research: Development of patented skin-specific age clock technology and active ingredient Epicelline®. Launched Eucerin Hyaluron-Filler Epigenetic Serum (September 2024)

Scope: Own operations and downstream value chain
Time horizon: Short to medium-term (2025-2032)
Link to targets: Contributes to Net Zero by 2045 target and 50% GHG reduction by 2032 vs. 2018

Own Operations Actions

Climate-neutral EU operations:

• Achieved climate-neutral operations across all EU factories (implemented beginning of 2025)

New logistics infrastructure:

• Leipzig logistics center: New state-of-the-art logistics center in Leipzig, Germany. Groundbreaking ceremony July 2024; expected opening 2027
• Equipped to highest technology and environmental standards

Scope: Own operations (Scopes 1 & 2)
Time horizon: Short to medium-term (2025-2027)
Link to targets: Supports 30% GHG reduction by 2025 target

Digitalization and AI Actions

AI in Research & Development:

• Using AI to accelerate efficacy studies and optimize speed, quality, and sustainability of formula development
• SKINLY study: AI-based long-term, large-scale, global consumer skin care study providing insights for R&D

AI in Marketing:

• Strategic framework to test, scale, and implement generative and analytical AI tools
• Leveraging AI for content evaluation, target group analysis, and ad placement optimization
• Clear policy never to use AI to create human skin

Sustainability process digitalization:

• Integrated analysis tools, created framework, and connected different systems to simplify reporting
• Enables year-round analysis of key figures (CO2e emissions, plastic packaging, raw materials)
• Automated data collection systems for GHG accounting

Scope: Own operations
Time horizon: Ongoing
Resources: Investment in digitalization (amount not quantified)
Link to targets: Supports emissions reduction monitoring and achievement

Value Chain Engagement Actions

Supplier engagement (Scope 3.1):

• Lever: Suppliers of raw materials, packaging, logistics, media, and third-party manufacturing
• Conducting supplier surveys to collect primary data on energy consumption and emission factors
• 2024 coverage: 91% of outsourced finished goods production and 90% of warehousing activities
• Engaging suppliers to innovate low-carbon solutions

Distribution partner engagement (Scope 3.9):

• Consumer segment: Participating in retailers' sustainability events, programs, campaigns, and platforms; strategic sustainability exchanges; providing sustainability data
• tesa segment: Collaborating with distribution partners on sustainable products and optimized packaging; steering projects for optimized transport and logistics; engaging in industry initiatives and task forces

Scope: Upstream and downstream value chain (Scope 3)
Time horizon: 2032
Expected outcome: Enable suppliers to recognize importance of climate action and innovate low-carbon solutions; generate common understanding of climate challenge; develop harmonized GHG accounting methodology; empower end consumers to make sustainable decisions

Methodology Improvement Actions

GHG accounting enhancement:

• Transitioning from spend-based EEIO method to activity-based approach in most Scope 3 categories
• Working with value chain partners to enable carbon footprint data exchange
• Using primary data for 94% of packaging emissions and 90% of raw material emissions calculations
• Continuously improving methodologies for accounting GHG emissions across Scope 3 categories

Scope: Across all scopes
Time horizon: Ongoing
Resources: Not quantified
Expected outcome: Better implement decarbonization measures and monitor progress

Multi-stakeholder Initiatives

Participation in industry alliances:

• Member of "Roundtable on Sustainable Palm Oil" (RSPO)
• Member of "Action for Sustainable Derivatives" (ASD)
• Cooperation with "World Wide Fund for Nature" (WWF) since 2016
• Participation in European alliance advocating for sustainability and climate action in beauty and body care industry

Scope: Upstream value chain
Time horizon: Ongoing
Link to targets: Supports Scope 3 emission reduction

Resources Allocated

Financial resources:

• No specific capex or opex amounts disclosed for climate actions
• Reference to "heavy investment" in digitalization and R&D
• Investment in "equipping global production and distribution sites with highest technology and environmental standards"

Non-financial resources:

• Cross-functional teams involved (R&D, Supply Chain, Marketing, Finance)
• Partnership with WWF for strategy development
• Employee engagement encouraged to contribute ideas to climate strategy
• Strategic partnership framework established

Link to policies:

• All actions contribute to "Environmental Policy" (Consumer segment) and "Environmental Guidelines" (tesa segment)
• Support SBTi-validated targets aligned with Paris Agreement 1.5°C pathway

Targets related to climate change mitigation and adaptation

Net Zero Target

Target: Achieve Net Zero by 2045
Target metric: Reduce greenhouse gas (GHG) emissions by 90% (in absolute terms) along the entire value chain
Baseline year: 2018
Validation: Science-Based Targets initiative (SBTi) validated, in line with Paris Agreement 1.5°C target
Progress (2024): Absolute reduction of 25% GHG emissions across Scopes 1, 2, and 3 by end of 2024

Group-level Climate Targets

Notes on Scope 1 & 2 baseline:

• Share of Scope 1 emissions in total Scope 1 and 2: 77%
• Share of Scope 2 emissions in total Scope 1 and 2: 23%

Consumer Business Segment Target

Notes on Consumer baseline:

• Share of Scope 1: approx. 4%
• Share of Scope 2: approx. 1%
• Share of Scope 3: approx. 95%

tesa Business Segment Target

Additional Targets

Climate-neutral production: By 2030, achieve climate-neutral production (Scope 1 and 2), reducing emissions by at least 90% and neutralizing remaining emissions of maximum 10% with carbon removals.
Progress (2024): Climate neutrality achieved for 4 out of 22 production sites

Renewable electricity: 100% of electricity purchased from renewable energy sources (achieved since 2020 and maintained)

EU factories climate neutrality: Climate-neutral operations across EU factories, implemented by beginning of 2025

Target Achievement Progress (2024)

Target Characteristics

Type: All emission reduction targets are absolute targets (not intensity-based)

Scope coverage:

• Own operations: Scope 1 and 2
• Value chain: Scope 3 including purchased goods and services (raw materials, packaging, third-party manufacturing), upstream transportation and distribution, business travel
• Geographic scope: Global (all operations and entire value chain)

Target boundary for Scope 3:

• 2025 target includes: Scope 3.1 (purchased goods and services - raw materials, packaging, third-party manufacturing), Scope 3.4 (upstream transportation and distribution, third-party warehousing), Scope 3.6 (business travel)
• 2032 and 2045 targets expanded to include: Scope 3.1 (media services, VAS, POS), Scope 3.3 (fuel and energy-related activities), Scope 3.5 (waste generated in operations), Scope 3.7 (employee commuting), Scope 3.12 (end of life treatment of sold products)

Energy consumption and mix

Scope and methodology

The Consumer Business Segment collects energy consumption data at all production sites, warehouses it operates, and offices above 50 FTE. tesa collects energy consumption data for all ISO 14001-certified sites and offices with more than 40 FTE, including six production sites and the company headquarters. Some administrative offices are excluded from data collection. Energy consumption and emissions from affiliates excluded from data collection or excluded after data validation are estimated using average energy consumption and emissions per FTE. The reported energy and Scope 1 and 2 emissions cover all affiliates under financial control.

Emission factors are derived from the IPCC, complemented by energy suppliers and the IEA. Further emissions (e.g., steam in district heating) are calculated using emission factors from GaBi Databases (Sphera) and, if not available, the UK Defra.

Biogas certificates are internationally recognized and based on a mass balance approach. The biogas is not physically purchased, but certificates are purchased to ensure the gas is fed into the European gas grid. Biogenic emissions outside of Scope 1 are reported separately and not included in Scope 1.

Energy consumption and mix (2024)

Energy production (2024)

Energy intensity

Not disclosed in the excerpts provided.

Additional targets

Since 2020, Beiersdorf has achieved the target of sourcing 100% of the electricity purchased by sites covered by data collection from renewable energy sources (via direct purchase from suppliers, IRECs, European Guarantees of Origin, or country-specific certificates). Beiersdorf has committed to reaching climate-neutral production by 2030 (Scope 1 and 2 emissions reduced by at least 90%, with remaining emissions neutralized via carbon removals). In 2024, four out of 22 production sites achieved climate neutrality.

Gross Scopes 1, 2, 3 and Total GHG emissions

Overview

Beiersdorf reports GHG emissions for the Group and both business segments (Consumer and tesa) following the GHG Protocol Corporate Accounting and Reporting Standard and Corporate Value Chain (Scope 3) Standard. The financial consolidation approach is used, consistent with financial reporting. All Kyoto Protocol gases are included (CO₂, CH₄, N₂O, SF₆, PFCs, HFCs).

Base year: 2018
Reporting year: 2024

Scope 1 GHG emissions

Scope 1 emissions arise from direct combustion of fuels in owned or controlled sources. Biogas certificates are purchased based on a mass balance approach; biogenic emissions are reported separately and excluded from Scope 1.

Biogenic emissions of CO₂ not included in Scope 1 GHG emissions (tCO₂e):

Share from regulated emissions trading schemes (%):

Scope 2 GHG emissions

Scope 2 emissions from purchased energy are calculated using both location-based and market-based methods. The Group climate target uses the market-based approach. Since 2020, 100% of purchased electricity at sites covered by data collection is from renewable sources.

Biogenic emissions of CO₂ not included in Scope 2: None reported.

Total Scope 1 and 2 GHG emissions

Scope 3 GHG emissions

Scope 3 categories are reported based on the 2025 target boundary. Category 12 (End-of-life treatment of sold products) is disclosed separately but not included in the 2025 target boundary; it will be incorporated in targets beyond 2025.

Significant Scope 3 categories within 2025 target boundary:

Category 12 (not in 2025 target boundary):

Total significant Scope 3 emissions (including Cat. 12):

Total GHG emissions (all scopes)

GHG intensity

GHG intensity metrics are not disclosed in the excerpts provided.

Methodology notes

Scope 1 & 2: Energy consumption data collected at production sites, operated warehouses, and offices (Consumer: ≥50 FTE; tesa: ≥40 FTE and ISO 14001 sites). Excluded affiliates are estimated using average energy/FTE. Emission factors from IPCC, energy suppliers, IEA, GaBi/Sphera, and UK Defra. Calculations managed via Sphera Corporate Sustainability Software.

Scope 3.1 (Purchased goods and services):

• Consumer: 94% packaging emissions and 90% raw material emissions calculated using primary data (material consumption) and LCA databases. Remaining estimated by unit, spend, or average reference products. Outsourced production and warehousing (3PMs): 91% production and 90% warehousing covered by supplier surveys (energy consumption, emission factors). Extrapolated for full coverage.
• tesa: Activity data from purchasing system. Emission factors based on proxies for raw material production. Third-party products use expenditure-based material-specific factors. Covers entire upstream value chain (cradle to gate).

Scope 3.4 (Upstream transportation): Calculated using EcoTransIT tool (EN 16258 standard). Primary data on distances, loads, transport modes from internal logistics network. Secondary industry-average emission factors.

Scope 3.6 (Business travel):

• Consumer: Data from travel management system or direct affiliate reporting. VDR methodology; Radiative Forcing Index (RFI) factor of 2 for flights. IEA data for direct reports.
• tesa: Air travel only. Based on CO₂ emissions for tesa Germany and tesa SPA, extrapolated per FTE to total employees.

Scope 3.12 (End-of-life):

• Consumer: Packaging EoL based on waste treatment shares by material and region (Europe reference), combined with packaging weights. Ingredients EoL assumes carbon content is biodegraded and released as CO₂.
• tesa: Material-specific emission factors for own products/packaging. Third-party products estimated using 3.1 emission ratio. Region-specific waste treatment methods reflect recycling.

NIVEA-Kao (majority shareholding): Emissions calculated from 2022 LCA of reference products, estimated by quantity sold. Raw materials, packaging, and upstream transport calculated using bill of materials, LCA factors, product weight, average distance, transport mode factors. Allocated to respective Scope 3 categories.

Coverage: Scope 3 emissions within 2025 target boundary cover >93% of primary data. Categories not disclosed: 3.1 (purchased services), 3.2 (capital goods), 3.3 (fuel/energy-related activities), 3.5 (waste in operations), 3.7 (employee commuting), 3.9 (downstream transport), 3.15 (investments) – assessed as non-significant. Categories 3.8, 3.10, 3.11, 3.13, 3.14 not relevant to business model.

Energy consumption

Energy production (2024):

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

Phase-in exemption

Beiersdorf AG is using the phase-in exemption for ESRS E1-9 disclosure requirements.

The following specific data points are subject to phase-in:

• Data point 66: Exposure of the benchmark portfolio to climate-related physical risks (Phase-in)
• Data point 66 a & c: Disaggregation of monetary amounts by acute and chronic physical risk and location of significant assets at material physical risk (Phase-in)
• Data point 67 c: Breakdown of the carrying value of real estate assets by energy-efficiency classes (Phase-in)
• Data point 69: Degree of exposure of the portfolio to climate-related opportunities (Phase-in)

Policies related to pollution

Beiersdorf AG has identified material impacts, risks, and opportunities related to pollution, specifically concerning air and water pollution, microplastics, and substances of very high concern. The company has established several policies across its business segments to address these topics.

Consumer Business Segment

Beiersdorf Environmental Policy

Policy name: Beiersdorf Environmental Policy

Scope:

• Applies to all operations of the Consumer Business Segment globally
• Encompasses all stages of the value chain from raw material sourcing to product end-of-life, unless otherwise specified for the respective topic

Accountability and oversight:

• The Beiersdorf Vice President Sustainability is accountable for the policy implementation

Key content:

• Outlines general environmental objectives such as reducing emissions and substituting or minimizing the use of substances of concern
• Addresses critical issues of pollution and environmental safety of products and processes
• Covers the minimization and use of substances of (very) high concern
• Does not specifically refer to avoiding incidents and emergency situations

Material impacts addressed:

• Upstream negative impacts on air and water pollution
• Microplastics
• Substances of very high concern

Public availability:

• The policy is publicly available on the company website for all relevant stakeholders

Code of Conduct (CoC)

Policy name: Code of Conduct

Key content:

• Addresses the use of hazardous substances, air emissions, management of chemicals and hazardous materials, and the requirement to comply with environmental protection laws
• Requires handling and minimization of chemicals and other materials posing a hazard when released into the environment
• Requires air emissions to be monitored, characterized, and controlled, with a greenhouse gas reduction plan that meets or exceeds regulatory requirements
• Does not specifically refer to avoiding incidents and emergency situations

Material impacts addressed:

• Upstream negative impacts on air and water pollution

Additional details:

• Further details are given in chapter "ESRS S2 – Workers in the Value Chain"

Standard operating procedure (SOP) selection criteria for raw materials

Policy name: Standard operating procedure (SOP) selection criteria for raw materials (identified as CBE.20003005.000.01)

Scope:

• Covers raw materials intended for Beiersdorf cosmetic and OTC products, including those from third-party suppliers
• Excludes fragrance compounds and packaging materials, as well as La Prairie and Chantecaille products, which are covered separately
• Safety-related requirements apply globally across all regions

Accountability and oversight:

• The functions "Global Product Stewardship" and "Product Safety" as part of the Research and Development (R&D) department are responsible for defining the raw material requirements summarized in this policy

Key content:

• Outlines requirements for raw materials used in the manufacture of cosmetic and OTC products
• Encompasses aspects related to product safety, regulatory compliance, quality, microbiology, and Beiersdorf specific restrictions
• Raw materials must not contain substances prohibited by the EU Cosmetics Regulation or EU chemicals legislation (REACH)
• Unless exempted, raw materials must not contain substances listed in the "Candidate List of substances of very high concern for Authorization"

Material impacts addressed:

• Negative impacts related to substances of very high concern

Monitoring:

• Progress towards the policy objectives is monitored through internal standard processes before final release and utilization of new materials in marketed products

tesa Business Segment

tesa Environmental Guidelines

The tesa "Environmental Guidelines" are mentioned as addressing environmental protection and compliance with environmental laws, although specific pollution-related details are less extensive in the excerpts provided compared to the Consumer segment policies.

tesa Code of Conduct for Suppliers (CoCS)

Policy name: tesa Code of Conduct for Suppliers

Scope:

• Serves as the foundation for supplier relationships in sourcing goods and services
• Focuses on tesa suppliers (upstream)

Accountability and oversight:

• The Executive Board holds the highest level of accountability for policy implementation

Key content:

• Aims to guide the actions of tesa and its suppliers and aims to reach a positive impact on people, society, and the environment
• Suppliers are required to have an effective environmental policy and comply with all existing environmental protection laws and regulations
• Suppliers are encouraged to adopt a precautionary approach to environmental issues, promote greater environmental responsibility, advance environmentally friendly technologies, and implement sustainable life-cycle practices
• Management of chemicals and hazardous materials: suppliers must identify any chemicals and materials that pose a hazard if released into the environment
• Suppliers are required to regularly monitor air emissions, implement emission controls, and adhere to a greenhouse gas reduction plan that complies with or surpasses regulatory standards
• Air emissions covered include, but are not limited to, volatile organic chemicals, aerosols, corrosives, particulates, ozone-depleting chemicals, and combustion by-products
• Does not specifically refer to avoiding incidents and emergency situations

Material impacts addressed:

• Upstream negative impacts on air and water pollution

Monitoring:

• Progress towards policy objectives is monitored through internal tracking of signatures to the CoCS, with ongoing coverage checks

Public availability:

• The policy is made available to all stakeholders through the tesa official website and is sent to business partners before the contract is signed

Additional details:

• Further details on the CoCS are given in chapter "ESRS S2 – Workers in the Value Chain"

Pollution of air, water and soil

Material Impacts

Beiersdorf has identified business activities with negative impacts related to pollution:

• Air pollution: Upstream energy-intensive activities (sourcing raw materials, packaging manufacture, third-party manufacturers, transportation) involving fossil fuel use cause pollutant emissions affecting air quality
• Water pollution:
  • Upstream: Potential pollution from chemical industry suppliers and paper/pulp production for tesa
  • Downstream (Consumer Business Segment): Skin care products may transfer substances into wastewater, affecting water quality
  • Substances of very high concern: Some products (e.g., deodorants) may contain SVHC that release into wastewater
  • Microplastics: Products may contain microplastics (synthetic polymer microparticles) released through consumer use into wastewater systems

E-PRTR Disclosure

Beiersdorf references E-PRTR (European Pollutant Release and Transfer Register) disclosure requirements in its SFDR alignment table (p. 171) as not material:

No quantified emissions data to air, water, or soil is disclosed. The company has determined E-PRTR pollutant reporting to be not material and has not provided:

• Emissions to air (NOx, SOx, SO2, PM, VOC, heavy metals)
• Emissions/discharges to water (heavy metals, nutrients, BOD/COD)
• Emissions/discharges to soil (heavy metals, microplastics)

Microplastics (Synthetic Polymer Microparticles)

Target: By 2025, reduce non-biodegradable polymers in European product formulations by 70% compared to 2018 baseline (978 kt).

Progress: 69% reduction achieved in 2024 compared to 2018.

Note: This is the only quantified pollution metric disclosed, addressing downstream microplastic impacts from consumer use.

Methodology Note

The company states it has not set targets for air and water pollution in the upstream value chain. Raw material assessment covers human and environmental toxicity and regulatory compliance. As main SVHC identification criteria conflict with cosmetic product regulation requirements, no further targets are set for SVHC in the downstream value chain.

Substances of concern and substances of very high concern

Material impacts

Beiersdorf has identified negative impacts related to substances of very high concern (SVHC) in the downstream value chain of the Consumer Business Segment. Some products such as deodorants may contain substances of very high concern. Use of such products may cause these substances to be released into wastewater and build up in the environment (medium-term potential negative impact).

Policies addressing SVHC

Beiersdorf has implemented several policies to manage substances of very high concern:

Standard Operating Procedure (SOP) Selection Criteria for Raw Materials (CBE.20003005.000.01)

This SOP outlines requirements for raw materials used in the manufacture of cosmetic and Over-the-Counter (OTC) products. Key provisions include:

• Raw materials must not contain substances prohibited by the EU Cosmetics Regulation or EU chemicals legislation (REACH)
• Unless exempted, raw materials must not contain substances listed in the "Candidate List of substances of very high concern for Authorization" published by ECHA
• The policy applies globally to raw materials intended for Beiersdorf cosmetic and OTC products, including those from third-party suppliers (excluding fragrance compounds, packaging materials, and La Prairie and Chantecaille products)
• Functions "Global Product Stewardship" and "Product Safety" within R&D are responsible for defining raw material requirements
• Progress is monitored through internal standard processes before final release and utilization of new materials in marketed products

Fragrance Restriction List

This policy ensures consumer safety by specifying allowed quantities of certain fragrance ingredients. Key features:

• Submissions must not contain substances listed in the ECHA "Candidate List of substances of very high concern for Authorization" at the time of the "Fragrance Briefing"
• Applies globally to all Beiersdorf AG fragrances and aromas used in products, including affiliates and contract manufacturers
• Managed by the internal Expert Team "Fragrances," led by the Manager for "Ingredient Compliance"
• Contractual agreements with fragrance houses ensure binding compliance
• Fragrance houses undergo intensive qualification processes and regular on-site visits to ensure compliance capabilities
• New fragrance creations require a "Fragrance Compliance File" with written and signed confirmation of compliance

Actions to reduce SVHC

Phase-out of cyclomethicone

• Cyclomethicone is a significant source of SVHCs (D5/D6) in the Consumer product portfolio, classified in the EU as very persistent and very bioaccumulative
• Phase-out was targeted by the R&D leadership team in April 2019
• Scope: entire Consumer Business Segment globally
• Timeline: completion for NIVEA and Eucerin products marketed in Europe by 2025, globally by 2030
• Progress: Compared to 2019, the annual volume of cyclomethicone has decreased by 64%

Environmental Performance Assessment Process

• Approved by R&D leadership team in February 2019 and in use ever since
• Includes ecotoxicological criteria and classifications for both new and existing cosmetic ingredients
• Ensures no new persistent ingredients enter the raw material portfolio
• Provides clear guidance for Environmental Assessment based on hazard data, with criteria including persistency, bioaccumulation, and aquatoxicity
• Scope: Consumer Business Segment, own operations globally
• The process has been actively used since 2019

Polymer reduction

• Beiersdorf evaluates all raw materials in terms of biodegradability based on Annex XIII of the European REACH Regulation and corresponding "Guidance on Information Requirements" (Chapter R.11)
• Goal: eliminate polymers that are not sufficiently biodegradable from European product formulations by the end of 2025
• Progress: In comparison with 2018, Beiersdorf used 69% fewer non-biodegradable polymers in European product formulations in the reporting year (base value 2018: 978 kt)

Assessment approach

The assessment of raw materials used at Beiersdorf covers both human and environmental toxicity as well as assessment in the context of applicable regulations. The main criteria for the identification of SVHC are evaluated in context with the requirements of the cosmetic product regulation and Beiersdorf's internal policies on human and environmental safety.

Quantitative disclosure

No quantitative data on total amounts of substances of concern (SoC) or substances of very high concern (SVHC) generated, used, or procured in tonnes is disclosed. No breakdown by hazard class is provided.

Policies related to water and marine resources

The company references ESRS E3-1 disclosure requirement 9 regarding "Water and marine resources" and disclosure requirement 13 regarding "Dedicated policy paragraph" in its SFDR correlation table on page 81 and 83 respectively.

However, the provided excerpts do not contain the actual content of page 82 where E3-1 is stated to be disclosed. The excerpts only include:

• References to E3-1 in the index table (page 166) indicating it is disclosed on page 82
• Cross-references in the SFDR correlation table linking to pages 81 and 83
• A reference to disclosure requirement 14 regarding "Sustainable oceans and seas" marked as "Not material"

Without access to the actual content on page 82, the specific policies related to water and marine resources cannot be extracted or described.

Actions and resources related to water

All actions described contribute to achieving the Group-wide goal of significantly reducing water consumption by 2025.

Consumer Business Segment

Training and capacity building for employees on water conservation

Description: Technical and sustainability experts at each Consumer production site implement various water conservation actions, such as "Closed Circuit Reverse Osmosis" (CCRO) technologies, optimized cleaning cycles and water reuse systems. These efforts are coordinated through the "Sustainability in Manufacturing" (SIM) initiative and the "Global Water & Cleaning Community," which both ensure factory-level alignment. Employees receive monthly exchanges on these technologies and best practices to enhance their knowledge and promote water-efficient operations. The "Global Water & Cleaning Community" platform allows water experts to discuss progress with the SIM team, while also exploring new (digital) approaches to reducing water consumption in partnership with specialist institutes. External expertise is also used for training and to optimize operations.

Scope: Factories globally

Time horizon: Ongoing

Expected outcome: Employees to gain increased technical knowledge and be able to further apply water conservation practices in production processes. This can lead to a consistent approach to water management and continuous improvement in water efficiency across production processes, which in turn contributes to achieving Beiersdorf's 2025 water reduction target.

Resources: Non-financial resources include monthly exchanges, the "Global Water & Cleaning Community" platform, partnerships with specialist institutes, and external expertise for training.

Continuous improvement of production processes

Description: Modern equipment and technologies have been deployed to address high water consumption, particularly in cleaning processes. All production sites treat their wastewater, either within their own wastewater treatment plants (WWTP), in WWTP within industrial parks, or externally located in third-party WWTP. No untreated wastewater is discharged into the environment. Treated wastewater can be reused for cooling, irrigation, or sanitation at production sites. This contributes to keeping the "Leadership in Energy and Environmental Design" (LEED) certification, ensuring that all sites meet global sustainability standards. Regular reviews by internal and external experts ensure that facilities meet the latest standards and processes are continuously optimized. Collaboration with water suppliers, local authorities, and neighboring companies fosters a community- and best-practice-focused approach to sustainable water management.

Scope: Production sites globally

Time horizon: 2025

Expected outcome: Reduce water consumption, enhance collaboration with external stakeholders, and comply with LEED certification standards to further support sustainability targets.

Resources: Non-financial resources include internal and external expert reviews, partnerships with water suppliers, local authorities, and neighboring companies.

Implementation of reverse osmosis and water recovery technologies

Description: Closed-circuit reverse osmosis (CCRO) and other water recovery technologies are being introduced to enhance water reuse across production sites. In 2023, the first reverse osmosis filtration unit was installed in the Indian factory. These technologies are planned to be tested and implemented in ten additional production sites.

Scope: India, and additional factories globally

Time horizon: Continuous, with expansion and upgrades through 2025

Expected outcome: Enhanced water reuse and reduction in water consumption.

Resources: No specific financial resources quantified.

tesa Business Segment

For the tesa Business Segment, there are currently no defined measurable water-related targets. Water tracking is managed via the "SoFi" database, which is mandatory for production sites certified according to ISO 14001. These sites are subject to regular internal audits as well as external environmental audits in the context of matrix certification. Water data such as consumption and effluent quantities are tracked annually, and regular water risk assessments are performed. Results are reported through CDP.

Progress and acknowledgements

In 2024, water consumption per product manufactured was reduced by 12% compared to 2018 (base year) to 446 liters/1,000 products. The company acknowledges that external factors and unforeseen obstacles may cause delays to planned projects and may impact the ability to fully meet 2025 water conservation targets. Nevertheless, the company remains committed to implementing all planned water conservation actions.

While the Consumer Business Segment does not yet have site-specific targets for areas at water risk, the global "Environmental Policy" applies to all sites, including those in high water stress areas. Localized water targets for areas at water risk are being developed, with the aim of tailoring water management to specific regional needs. These site-specific targets will be established in the course of 2025, informed by ongoing assessments using the WWF's WRF and the WRI's "Aqueduct 4.0 Water Risk Atlas." Customized water reduction targets beyond 2025 are being developed as part of a strategic partnership with the WWF.

Targets related to water

Consumer Business Segment

Global Corporate Water Reduction Target

• Target metric: Water consumption per manufactured product (water intensity)
• Target value: 378 liters/1,000 products manufactured (25% reduction)
• Target year: 2025
• Baseline year: 2018
• Baseline value: 504 liters/1,000 products manufactured
• Scope: All Consumer factories (global)
• Type: Intensity-based target
• Validation: Voluntary target, validated by external auditors annually
• Science-based: Based on comprehensive water risk analyses and data-driven approaches, not SBTi-validated
• Progress to date (2024): 446 liters/1,000 products manufactured (12% reduction compared to 2018 baseline)

Site-Specific Targets for Areas at Water Risk

• Status: Not yet in place as of 2024
• Development timeline: Site-specific targets for areas at water risk will be established in the course of 2025
• Scope: Sites located in areas of high water stress
• Methodology: Informed by ongoing assessments using WWF's Water Risk Filter (WRF) and WRI's Aqueduct 4.0 Water Risk Atlas
• Strategic context: Being developed as part of strategic partnership with WWF; customized water reduction targets beyond 2025

tesa Business Segment

Water-Related Targets

• Status: No defined measurable water-related targets currently in place
• Water tracking: Managed via "SoFi" database, mandatory for ISO 14001 certified production sites
• Monitoring: Annual tracking of water consumption, effluent quantities, and regular water risk assessments; results reported through CDP

Water consumption

Water Metrics

The following table presents Beiersdorf's water consumption and related metrics for 2024:

Water intensity

In 2024, water consumption per product manufactured was reduced by 12% compared to 2018 (base year) to 446 liters/1,000 products (Consumer Business Segment).

Baseline (2018): 504 liters/1,000 products manufactured
Target for 2025: 378 liters/1,000 products manufactured (25% reduction)

Sites in water risk areas

The Consumer Business Segment has identified eight sites and the tesa Business Segment has identified two sites that are located in areas at water risk, including areas of high water stress, as determined using the World Resource Institute's (WRI) "Aqueduct 4.0 Water Risk Atlas."

Methodology

The measurement of water-related metrics is based on quarterly data input from the Safety, Health and Environment (SHE) managers at each plant. Data is collected using the "Sphera SCCS" tool for standardization and consolidation. Thematic experts from the Sustainability in Manufacturing (SIM) team validate the data quarterly.

The data relates to production sites only and does not include office locations. All data is primary data and has not been estimated or extrapolated.

Water-related metrics are validated internally by the SIM team's thematic experts, with quarterly comprehensive reviews to ensure data integrity and compliance with internal and external reporting standards.

Transition plan and consideration of biodiversity and ecosystems in strategy and business model

Biodiversity Strategy Development

Beiersdorf is currently developing a biodiversity strategy and targets related to biodiversity and ecosystems. We aim to publish these targets by our next reporting cycle. Therefore, no targets are reported for 2024.

Current Biodiversity Ambitions and Commitments

To date, we have set the following ambitions and use both qualitative and quantitative indicators to evaluate our progress:

• Beiersdorf aims to achieve a deforestation-free palm supply chain by end of 2025. This amplifies our commitment to zero deforestation of primary and secondary forests and natural ecosystems from mid-November 2018.

• Since the end of 2020, we have sourced 100% of our palm oil-based raw materials from sources certified as sustainable according to the RSPO's "Mass Balance" model and maintain this target annually.

• For the project in West Kalimantan, Indonesia, Beiersdorf has set a goal to certify at least 200 smallholder farmers according to the RSPO standard by 2026.

• In addition, we track the number of smallholder farmers involved in our sustainability projects and the area of land under sustainable management practices.

Biodiversity Offsets and Nature-Based Solutions

Our current actions related to biodiversity and ecosystems do not involve the use of biodiversity offsets. Therefore, there are no aims, key performance indicators, or financing effects related to biodiversity offsets to report. Additionally, we presently have not incorporated local and indigenous knowledge or nature-based solutions into our biodiversity and ecosystem-related actions.

Policies related to biodiversity and ecosystems

The company states that ESRS E4-2 (Policies related to biodiversity and ecosystems) is addressed on page 87 of the Annual Report 2024. However, the provided excerpts do not include the actual content from page 87 where the policies would be described.

The excerpts reference the following policy-related elements in the index tables:

Policy on deforestation

The company indicates it has policies to address deforestation (referenced as data-point 24 d under ESRS E4-2, aligned with SFDR Indicator number 15 Table #2 of Annex 1), as noted on page 88.

Sustainable land/agriculture practices or policies

The company references sustainable land/agriculture practices or policies (data-point 24 b under ESRS E4-2, aligned with SFDR Indicator number 11 Table #2 of Annex 1), as noted on page 89.

Note: The excerpts provided do not contain the full policy disclosures from page 87. The information above is derived only from index references showing that certain biodiversity-related policy elements are addressed elsewhere in the report. Full policy details including scope, governance, oversight, monitoring, and links to international standards are not available in the excerpts provided.

Actions and resources related to biodiversity

Beiersdorf's actions related to biodiversity and ecosystems are primarily driven by the Sustainable Palm Policy, which addresses material impacts from the use of palm (kernel) oil derivatives. The company has implemented several initiatives focused on sustainable palm oil sourcing and biodiversity conservation.

Key Policy Objectives

The Sustainable Palm Policy includes four key environmental objectives that guide biodiversity-related actions:

1. Prevention of deforestation and ecosystem conversion: Ensuring palm oil sourcing does not lead to deforestation or conversion of primary/secondary forests or other natural ecosystems.

   • Addressed impact drivers: Climate change, land use change, direct exploitation, impacts on ecosystems, impacts on the status of species and ecosystem services.

2. Conservation of High Carbon Stock (HCS) and High Conservation Value Areas (HCVA): Avoiding development of palm oil plantations in HCS and HCVA areas; banning cultivation and fires on peatlands.

   • Addressed impact drivers: Climate change, land use change, direct exploitation, impacts on ecosystems, impacts on the status of species and ecosystem services.

3. Promotion of sustainable landscape management: Implementing sustainable landscape management practices including buffer zones around protected areas.

   • Addressed impact drivers: Climate change, land use change, direct exploitation, impacts on ecosystems, impacts on the status of species, invasive species, ecosystem services.

4. Promotion of sustainable palm oil cultivation: Minimizing habitat destruction and promoting biodiversity-friendly cultivation practices.

   • Addressed impact drivers: Climate change, land use change, direct exploitation, impacts on ecosystems.

Specific Actions and Projects

FONAP landscape project

• Description: Partnership with FONAP and consortium of 26 partners supporting a project in Sumatra, Indonesia addressing biodiversity conservation and sustainable palm oil cultivation.
• Scope: Upstream value chain; focused on Sumatra location, a refuge for endangered species (Sumatran orangutan, tiger, and elephant).
• Time horizon: Extended from March 2022 to September 2024.
• Resources allocated: No quantified financial or human resources disclosed; implemented through partnership with FONAP consortium.
• Expected outcome: Preserve buffer zone around national park through sustainable landscape management, improved water management, and promotion of sustainable oil palm cultivation practices.
• Links to policy: Aligns with Sustainable Palm Policy objectives on sustainable landscape management and conservation.

Projects in collaboration with the WWF

West Kalimantan, Indonesia:

• Description: Training smallholder farmers in sustainable palm oil cultivation practices in collaboration with WWF and Evonik.
• Scope: Upstream value chain.
• Time horizon: Target completion by 2026.
• Resources allocated: No quantified financial or human resources disclosed; implemented through partnership with WWF and Evonik.
• Expected outcome: Certify 200 plots of land to RSPO standards; secure legal recognition to protect habitat of local flora and fauna.
• KPIs: Number of smallholder farmers certified (target: at least 200 by 2026); area of land under sustainable management practices.
• Links to policy: Supports Sustainable Palm Policy objectives on sustainable cultivation and preventing deforestation.

Sabah, Malaysia:

• Description: Landscape project to create forest corridor for wildlife (including orangutans) and promote sustainable agricultural practices.
• Scope: Upstream value chain.
• Resources allocated: No quantified financial or human resources disclosed; partnership with WWF and Evonik.
• Expected outcome: Create wildlife corridors; prevent human-animal conflicts; protect natural resources.
• Links to policy: Aligns with sustainable landscape management and biodiversity conservation objectives.

Ambitions and Targets Related to Actions

• Deforestation-free palm supply chain by end of 2025 (building on zero deforestation commitment from mid-November 2018)
• 100% RSPO Mass Balance certified palm oil-based raw materials since end of 2020 (maintained annually)
• 200 smallholder farmers certified to RSPO standard by 2026 (West Kalimantan project)
• Tracking metrics: Number of smallholder farmers involved in sustainability projects; area of land under sustainable management practices

Additional Notes

• All actions focus on upstream value chain (palm oil sourcing)
• Policy aligns with EU Deforestation Regulation (EUDR) requirements with cut-off date December 31, 2020
• Current actions do not involve biodiversity offsets
• No incorporation of local and indigenous knowledge or nature-based solutions reported to date
• Company is developing a biodiversity strategy and targets for publication in next reporting cycle (2025)

Impact metrics related to biodiversity and ecosystems change

Qualitative impact disclosure

Beiersdorf identifies that its sourcing of palm oil and natural rubber from Southeast Asia results in habitat destruction through deforestation of large areas of tropical rain forest for expanding plantations and monocultures, resulting in a loss of biodiversity (actual negative impact, medium term, upstream value chain).

Actions and targets related to biodiversity impact

Sustainable Palm Oil Certification

• Target: 100% of palm-based raw materials from sustainable sources according to RSPO Mass Balance model
• Status: Achieved and maintained since 2020
• Scope: Upstream value chain

Conservation commitments (as per Sustainable Palm Policy):

1. Prevention of deforestation and conversion of primary and secondary forests or other natural ecosystems
2. Conservation of High Carbon Stock (HCS) and High Conservation Value Areas (HCVA)
3. Promotion of sustainable landscape management practices
4. Promotion of sustainable palm oil cultivation

Addressed impact drivers: Climate change, land use change, direct exploitation, impacts on ecosystems, impacts on the status of species, invasive species, and ecosystem services.

Quantified metrics

No quantified biodiversity impact metrics (land use footprint in hectares, deforestation footprint, number of sites in/near protected areas or KBAs, species impact metrics, ecosystem condition metrics, or restoration metrics in hectares) are disclosed in the provided excerpts.

Policies related to resource use and circular economy

The disclosure requirement E5-1 is listed in the index as being addressed on page 92 of the Annual Report 2024. However, the provided excerpts do not contain the actual content from page 92. Only the index pages (p. 166-167) are included, which show that E5-1 is disclosed with "yes" indicating compliance with ESRS.

Without access to page 92 where the actual policy content is disclosed, the specific policies related to resource use and circular economy cannot be extracted or described.

ESRS E5-4 – Resource Inflows

Beiersdorf reports resource inflows under the broader heading "Metrics Related to Resource Use and Circular Economy" on page 96 of the Annual Report 2024. The disclosure covers both the Consumer and tesa business segments.

Resource Inflows Table

Methodology and Context

The data on resource inflows are derived from direct measurements conducted by Beiersdorf on the basis of quantities purchased and consumed. The classification of bio-based and secondary materials is carried out by experts.

Natural Origin Index: For the Consumer Business Segment, the proportion of natural origin raw materials is determined using the "Natural Origin Index," which quantifies the proportion of natural components in a given raw material, based on ISO 16128-1:2017 and ISO 16128-2:2017. The index is defined by raw-material suppliers and is used to determine the natural content of the raw materials used in recipes.

tesa methodology: Due to product differences, the non-fossil proportion of raw materials used for the tesa Business Segment is determined using a different method from the Consumer segment.

Sustainably certified materials: The "Total raw material consumption of biological origin, sustainably certified" primarily relates to palm oil and other certified renewable materials. For packaging, sustainably certified non-fossil materials include FSC®-certified paper and other certified renewable packaging materials.

Total resource inflow: In 2024, Beiersdorf used a total of 954 kt of raw materials and 187 kt of packaging materials across both business segments, representing a combined total inflow of 1,141 kt of materials into production.

Resource outflows

Consumer Business Segment

Recyclability:

• 79% of packaging is globally recyclable (2024)
• 83% of packaging meets "Design for Recycling" criteria (2024)
• Target: 100% of packaging to be designed according to "Design for Recycling" criteria by 2032
• Previous target of 100% recyclable, refillable or reusable packaging by 2025 has been adjusted due to evolving global recycling infrastructure and assessment criteria

Packaging Composition:

• 19% recycled content (recyclates) in packaging materials (2024)
• 59% of packaging materials from non-fossil sources (2024)
• Only 3% of non-fossil packaging materials are sustainably certified (2024)
• Target: 100% of plastic packaging made of recycled or renewable materials by 2032

Product Formula:

• 87% of raw materials are of natural origin (2024)
• Target by 2032: 100% of bar soaps free of tallow, 100% of cosmetics free from solid polymer microplastics, 90% of ingredients biodegradable

tesa Business Segment

Recyclability:

• Most tesa products (e.g., adhesive tape) cannot be recycled at the end of their life cycle, which has a negative impact on the circular economy of the plastics stream
• Recyclability of packaging for tesa Business Segment cannot yet be determined

Materials Composition:

• 7% recycled content (recyclates) in packaging materials (2024)
• 60% of packaging materials from non-fossil sources (2024)
• 51% of non-fossil packaging materials are sustainably certified (2024)
• 25% of materials used in products and packaging are from recycled or bio-based material (2024)
• Target: 70% of materials used in products and packaging to be from recycled or bio-based material by 2030
• Target: 50% reduction in use of non-recycled fossil plastics (excluding adhesive masses and packaging) by 2030 vs. 2018 baseline
• Progress: 14% reduction achieved (2024)

Total Group Resources

Resource Outflows Table:

Waste

As the negative impacts identified as material are concentrated in the downstream value chain and not in the company's own operations, no waste metrics are reported in this disclosure.

Waste Management Approach

Consumer Business Segment:

Beiersdorf follows the "4R" principle for packaging (reduce, reuse, recycle, replace):

• Reduce: Strive to reduce all types of packaging materials, removing unnecessary packaging and making packaging as light as possible
• Reuse: Increase reusable and refillable packaging; design packaging to last longer; offer more refillable packaging sets
• Recycle: Use recycled materials from mechanical, chemical, and advanced recycling technology in major packaging materials including plastics, paper, and aluminum
• Replace: Replace existing packaging materials with more sustainable solutions or materials, including recycled plastics, plastics from renewable sources, and low-carbon aluminum

Downstream End-of-Life:

• Packaging waste is created at the end of the product life cycle
• Products are primarily packaged in plastic and/or cardboard boxes that can be recycled but are not fully biodegradable
• In countries without proper recycling systems, packaging may ultimately be incinerated
• End-of-life treatment of sold products generated 510,454 tCO2e in Scope 3 emissions (2024)

tesa Business Segment:

The "Environmental Guidelines" require:

• Principles of "avoid, reduce and reuse" take precedence over disposal
• Sites must document all relevant waste, including description, quantity, classification, and disposal routes
• Record keeping of whether resources (raw materials and chemicals) have been handled responsibly

Waste Hierarchy Implementation

Consumer: Packaging reduction achieved 16% reduction in fossil-based virgin plastic usage (2024), targeting 50% reduction by 2025 vs. 2019 baseline.

tesa: 14% reduction in use of non-recycled fossil plastics achieved (2024), targeting 50% reduction by 2030 vs. 2018 baseline.

Policies related to own workforce

Beiersdorf has implemented several policies related to its own workforce, addressing material topics including diversity, occupational health and safety, working conditions, training and skills development, and equal treatment. These policies are structured separately for the Consumer and tesa Business Segments.

Consumer Business Segment

Code of Conduct (CoC) for employees

• Scope: All employees worldwide of the Consumer Business Segment, across all levels and affiliates
• Key content: The CoC translates corporate values (Care, Trust, Simplicity, and Courage) into standards and ethical principles. It is based on the ten principles of the UN Global Compact and covers:
  • Core principles (product safety, free competition, anti-corruption)
  • Working environment (health and safety at work, diversity and inclusion)
  • Conflicts of interest, gifts, and invitations
  • Handling information, resources and financial issues
  • Society and the community
  • Compliance with principles and reporting of violations (including whistleblower protection)
• Governance: The Executive Board has fundamental responsibility. The Corporate Compliance Management function has a governance role for regularly updating and implementing the CoC. All managers are responsible for implementation and monitoring compliance in their areas. The Supervisory Board is informed about compliance reporting results
• Material topics addressed: Corruption, corporate culture, whistleblower protection, diversity, occupational health and safety
• Public availability: Available on the company's intranet and publicly on the company website
• International standards: Based on the ten principles of the UN Global Compact
• Monitoring: Corporate Compliance Management and Corporate Auditing functions and local Compliance Officers continuously monitor compliance and follow up on breaches. All employees receive regular training via e-learning courses. Deliberate breaches have consequences under labor law

Declaration of Principles on Upholding Human Rights

• Scope: All sites and employees worldwide, and all workers in the value chain
• Key content: Express commitment to strengthening human rights, including:
  • Zero tolerance for corruption, forced labor, human trafficking, child labor, or discrimination
  • Support for health and safety of employees in the workplace
  • Employees' right to freedom of association, including collective bargaining
  • Environmental protection
  • Commitment to equal rights and treatment and diversity
• Material topics addressed: Freedom of association/collective bargaining, health and safety, diversity
• International standards: Commitment to principles of the United Nations Global Compact (UNGC), United Nations Universal Declaration of Human Rights, ILO conventions, and OECD Guidelines for Multinational Enterprises

Diversity, Equity & Inclusion Roadmap (DE&I Roadmap)

• Scope: All employees worldwide of the Consumer Business Segment
• Key content: Three strategic priorities:
  1. Embedding a truly inclusive culture of "We" rather than "I"
  2. Driving diversity in leadership positions (with focus on gender parity)
  3. Achieving diversity in teams beyond gender (#beyondgender)
• Governance: Nicola D. Lafrentz, Member of the Executive Board, CHRO and Labor Relations Director for Germany, is responsible for implementation
• Material topics addressed: Diversity and gender equality
• Public availability: Available on the company intranet, accessible to all employees

Safety and Health Policy

• Scope: Production facilities
• Key content: Aims to reduce potential safety risks and accidents. Includes:
  • Safety and health management systems for identifying, assessing and controlling risks
  • Emergency preparedness and response, including development and regular review of emergency plans and training
  • Health management to promote physical and mental health of employees
• Material topics addressed: Occupational health and safety

tesa Business Segment

tesa Code of Conduct

• Scope: Worldwide, all board members, managing directors, managers, and employees of tesa
• Key content: Based on corporate values (Respect, Honesty, Trust, Tolerance and Integrity) and the principles of the UN Global Compact. Covers:
  • Strict rejection of forced labor
  • Zero tolerance for child labor
  • Commitment to equal treatment and opposition to discrimination
  • Business conduct, personal integrity, handling of company resources, working environment, sustainability and compliance
• Governance: Corporate HR Management holds governance responsibility for ensuring regular updates. The Executive Board is briefed on compliance as part of annual compliance reporting. The Supervisory Board is informed of compliance reporting results. All managers are responsible for implementation and monitoring compliance
• Material topics addressed: Diversity, occupational health and safety, social dialog, corruption, corporate culture, whistleblower protection
• Public availability: Easily accessible to all company employees on a regular basis
• International standards: Based on the ten principles of the UN Global Compact

Declaration of Principles on Upholding Human Rights

• Scope: tesa operations and business partners
• Key content: Statement of commitment to principles of the United Nations Global Compact (UNGC), UN Universal Declaration of Human Rights, ILO conventions, and OECD Guidelines for Multinational Enterprises. The tesa Executive Board is responsible for implementation and compliance. Rejects any form of human rights violations
• Material topics addressed: Freedom of association/collective bargaining, occupational health and safety, working conditions (especially working time), equal pay for work of equal value
• International standards: United Nations Global Compact (UNGC), United Nations Universal Declaration of Human Rights, ILO conventions, OECD Guidelines for Multinational Enterprises
• Governance: The tesa Executive Board is responsible for implementation and compliance

HR Compliance Guideline

• Scope: All tesa employees and managers
• Key content: Provides thorough overview of main HR requirements, covering:
  • Anti-discrimination and harassment
  • Labor law
  • Recruitment
  • Remuneration
  • Handling of personal data
  • Procedures for reporting and penalizing violations
  • Ongoing monitoring and risk assessment to ensure adherence
• Governance: Ongoing monitoring by local and regional HR departments. Risk assessments carried out every three years by headquarters in the regions
• Material topics addressed: Training and skills development, equal pay for work of equal value, gender equality
• Public availability: Accessible to all employees via the intranet
• Monitoring: Continuous monitoring by local and regional HR departments; risk assessments every three years

tesa Policy on Occupational Safety and Health

• Scope: All tesa sites and employees
• Key content: Adopted in 2022, covers six key areas:
  • Crisis management
  • Health care
  • Risk assessment
  • Accident prevention
  • Fire and explosion prevention
  • Facility safety
• Material topics addressed: Health and safety
• Public availability: Accessible to all employees via the intranet
• Monitoring: Annual management review involving analysis of incidents with the Occupational Safety department and introduction of appropriate actions

Policy gaps identified

Beiersdorf acknowledges that it currently does not have global policies on certain topics, specifically work-life balance. The company is actively working to eliminate these gaps as part of a "Global Social Sustainability" program. tesa ensures that national laws are complied with, including regarding work-life balance, but there is currently no specific global policy that explicitly addresses this issue.

Characteristics of the undertaking's employees

Total headcount and FTE

As of December 31, 2024, Beiersdorf employed a total of 22,791 people (full-time equivalents) across both business segments, representing a 3.8% increase compared to the previous year (21,958).

• Consumer Business Segment: 17,386 employees (previous year: 16,769)
• tesa Business Segment: 5,405 employees (previous year: 5,189)

Prior year comparison:

• 2023: 21,958 FTE
• 2024: 22,791 FTE

Headcount by region

Group Employees by Region (FTE, as of Dec. 31, 2024)

Note: The headcount table shows 22,678 employees, while the text references 22,791 FTE. The table excludes interns, while the earlier figure includes all employees.

Germany employees: 7,003 (previous year: 6,778), representing 31% of total workforce.

Headcount by gender

Headcount by employment contract type and gender

Headcount by employment type (full-time/part-time) and gender

Employee turnover

Age distribution

Gender diversity at top management level

Methodology notes

• All employee figures are presented as full-time equivalents (FTE) unless otherwise stated.
• The collection of key figures includes Beiersdorf brands and La Prairie/Chantecaille in the Consumer Business Segment.
• The joint venture NIVEA-Kao in Japan is not included.
• The key figures exclude interns (different from management report figures).
• Data collection for headcount tables is as of December 31, 2024.
• tesa Business Segment: Data for production sites collected via "SoFi" database; office locations recorded annually.

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

Not disclosed.

Beiersdorf has stated in their materiality assessment that "The material impacts relate to our own employees and not to self-employed workers or employees of third-party companies."

The company references "workers of subcontractors who perform activities at Beiersdorf production sites without being directly employed by Beiersdorf" in the context of their value chain (ESRS S2), but does not provide quantitative data on the number, breakdown by type, or characteristics of non-employee workers in their own workforce.

Collective bargaining coverage and social dialogue

Collective bargaining coverage

tesa Business Segment (Germany):

tesa is a member of the collective bargaining association for the chemical industry. The provisions of the collective agreement are binding for all pay-scale employees, provided their employment contracts refer to the collective agreement or parts thereof. This regulation applies to both pay-scale and non-pay-scale employees.

Non-pay-scale employees in management groups 3-5 are also covered by Group works agreement KBV-t-79. This agreement governs salary management for non-pay-scale employees and ensures that their remuneration is in line with the requirements of the collective agreement.

Scope: tesa SE, tesa Werk Hamburg GmbH, tesa Werk Offenburg GmbH, tesa Manufacturing GmbH

No group-wide percentage metrics for collective bargaining coverage are disclosed for either business segment (Consumer or tesa) at global, EEA, or non-EEA level.

Workers' representatives and social dialogue

Consumer Business Segment:

The Consumer Business Segment has established works councils and worker representation structures.

European Works Council (EWC): Within the European Union, employees are represented by the European Works Council. Social dialog at European level is regulated by a voluntary works agreement. The EWC is a joint body consisting of company management representatives and workers' representatives from nationally elected workers' representative bodies or recognized workers' representative bodies.

tesa Business Segment:

Employees are represented through multiple levels of social dialogue:

European Works Council (EWC): When tesa SE (Societas Europaea) was founded, an agreement was reached under European law to establish a European Works Council. The EWC represents the interests of employees within the European Union and the European Economic Area. The main task of the EWC is to ensure regular exchange of information between management and workers' representatives. The EWC elects two workers' representatives for the Supervisory Board of tesa SE from among its members.

Countries covered by tesa EWC: France, Italy (including the Comet SpA plant), the Netherlands, the United Kingdom, Austria, Switzerland, Finland, Norway, Sweden, Belgium, Spain, Portugal, Czechia, Slovakia, Poland, Lithuania, Estonia, Latvia, Hungary, Romania, Greece, Croatia, Slovenia and Bulgaria.

Group Works Council (GWC) in Germany: At national level, social dialogue is regulated by the Group Works Council, to which each company sends two delegates. The GWC discusses and negotiates Group-wide issues in Germany, primarily general personnel and remuneration regulations.

Companies covered: tesa SE, tesa Werk Hamburg GmbH, tesa Werk Offenburg GmbH, tesa Manufacturing GmbH

Each of these companies also sends two delegates to the Group Works Council of Beiersdorf AG.

Supervisory Board representation:

The Supervisory Board of tesa SE consists of five members. Two of the five members represent the employees. The EWC elects the two workers' representatives for the Supervisory Board from among its members.

Other representative bodies

Representative body for people with severe disabilities (tesa): tesa SE's representative body represents the interests of employees with severe disabilities and equivalent status as well as those at risk of disability.

Scope: tesa SE, tesa Werk Offenburg GmbH, tesa Werk Hamburg GmbH, tesa Manufacturing GmbH

Disclosure gaps

Beiersdorf acknowledges that it does not currently have global actions or quantitative metrics on specific topics including working time, social dialog, collective agreements and freedom of association. Extensive measures exist at local or regional level (e.g., works agreements with German works councils), but are not yet consolidated globally. The company states it is actively working on closing these gaps over the next ten years.

Diversity metrics

Gender Diversity at the Top Management Level

Age Distribution

Multi-year Comparison: Representation of Women in Top Management (Germany)

Base year and targets:

• Base year 2022: Executive Board 38%, First management level 31%, Second management level 48%
• Base year 2023: Supervisory Board 41.7%

2024 actual figures:

• Executive Board: 42.9%
• First management level: 43.9%
• Second management level: 46.8%
• Supervisory Board: 58.3%

Targets by December 31, 2026:

• Executive Board: at least 30%
• First management level: at least 35%
• Second management level: at least 50%
• Supervisory Board: at least 30%

Scope: Beiersdorf AG (German legal entity)

Gender Parity Achievement

As of end 2024, 51.9% of management positions worldwide (management levels 1-4) in the Consumer Business Segment were held by women. Gender parity was achieved in September 2023.

Social protection

Defined benefit pension plans

Beiersdorf provides retirement benefits under both defined contribution and defined benefit plans.

Germany

Pension commitments in Germany largely consist of direct and indirect commitments by Beiersdorf AG and direct commitments by tesa SE. The benefits depend on the employees' length of service and their average salary over the three years immediately preceding the date on which the pension becomes payable. The pension payments to the beneficiaries are adjusted annually by 1%, at the latest, every three years in accordance with the Consumer Price Index (CPI).

Defined benefit obligations are funded exclusively by employer payments. Both Beiersdorf AG and tesa SE have transferred plan assets to a separate entity. In addition, the benefit plans are protected against the consequences of insolvency in accordance with the German Occupational Pensions Act (BetrAVG); annual contributions are made to the Pensions-Sicherungs-Verein (German Pension Protection Fund).

The aforementioned pension plans were closed to tesa employees in 2005 and to Beiersdorf employees in 2008. Employees joining the companies after this date can join employee-financed benefit plans. Under these plans, they can save part of their pensionable pay and also receive an employer contribution. The employer guarantees a minimum return on contributions of 3.25% per annum until retirement. New entrants at Beiersdorf from 2019 are guaranteed a minimum return of 1.8%. For new entrants at tesa from 2022, a minimum interest rate of 1.5% is guaranteed.

International

International defined benefit plans are largely spread across the sites in the United Kingdom, Switzerland, and the USA.

Pension benefit expenses

Defined contribution expenses contain mainly contributions to statutory or state pension insurance funds.

Provisions for pensions and other post-employment benefits

Other social protection elements

Parental leave

Beiersdorf promotes family-friendly working practices and attaches particular importance to compliance with parental leave regulations and a smooth return to work. There is a parent/child office at the Beiersdorf AG headquarters and at tesa headquarters, which offers parents a flexible environment.

In cooperation with the "MyCollective" start-up, Beiersdorf offers two global "Parental Leavers" programs. One is aimed specifically at managers entering parental leave, while the other is open to all employees currently on parental leave.

Beiersdorf AG offers childcare facilities for the children of employees in Hamburg through the company kindergarten "TroploKids."

Collective agreement coverage (Germany)

Beiersdorf is a member of the collective bargaining association for the chemical industry, which means the provisions of the collective agreement are binding for all employees employed under collective agreements, provided that their employment contracts refer to the collective agreement or parts of it. The salary concerns of non-tariff employees in management groups 4-5 are collectively regulated under labor law in company agreements in the respective German Beiersdorf companies.

Health management

The Beiersdorf health management aims to sustainably promote the health and well-being of all employees. The program relies on preventive measures to reduce stress, strengthen individual resources and create a healthy working environment. Offers include ergonomic workplace design, exercise and nutrition, regular check-ups, social counseling and psychological counseling.

Scope: All Hamburg locations of Beiersdorf AG

Persons with disabilities

Beiersdorf has committed to increasing the representation of people with disabilities within the company. The company is conducting mandatory global leadership upskilling sessions to build and strengthen inclusive leaders, working with external disability inclusion partners, and supporting an active employee network focused on enhancing disability inclusion. The Beiersdorf Campus in Hamburg, which opened in 2023, was deliberately designed and built to be accessible, promoting inclusion in the workplace.

Disability inclusion is identified as a strategic HR objective, with specific focus on "continued focus on diversity and inclusion (including disability inclusion)" as part of the HR Executive Board member's objectives for 2024.

Quantitative metrics

No quantitative data on the percentage of employees with disabilities is disclosed in the available excerpts.

Training and skills development metrics

Performance and career development reviews

Consumer Business Segment

The company reports that the tesa Performance Management (tPM) system is designed to promote constructive dialogue between employees and their direct supervisors to support both performance and personal growth.

tesa Business Segment

Target for 2024: 79% of employees at the Norderstedt headquarters who were eligible for a feedback meeting received one. A reporting system will be introduced in 2025 to enable worldwide reporting from 2025 onwards.

Average training hours per employee

No quantitative data on average training hours per employee (overall, by gender, or by employee category) is disclosed in the sustainability statement.

Training participation rates (tesa)

The company reports participation rates in mandatory training courses for the tesa Business Segment at the end of 2024:

These training courses are aimed at commercial employees and can be completed via the learning hub.

Training coverage (Consumer Business Segment)

Target: The "Global DE&I Essentials Journey" training program aims to provide approximately 80% or 3,000 global middle managers with DE&I knowledge by 2025. At the end of 2024, approximately 40% of managers had been trained, based on the number of cohorts conducted.

Total investment in training

No data on total investment in training (€) is disclosed.

Health and safety metrics

Coverage of health and safety management system

29% of the Consumer Business Segment workforce and 59% of the tesa Business Segment workforce are covered by the company's health and safety management system, representing 36% of the total Beiersdorf workforce.

Health and safety metrics (2024)

¹ The KPI definition of tesa regarding the "number of reportable work accidents" and the "rate of reportable work accidents" deviates from the ESRS standard, as an accident at tesa is only included in the metric if it has resulted in at least one lost workday. This includes both accidents at tesa locations during regular work activities and accidents occurring during business trips.

Methodology notes

Consumer Business Segment:

• Accident rates and working hours for production and logistics locations are evaluated monthly using the "Quentic" safety management system
• Reportable accidents are recorded directly when the accident occurs
• Accidents and working hours are recorded annually for office locations; working hours are estimated based on contractual working hours per full-time equivalent
• Data collection includes interns; it does not include Chantecaille
• In production and logistic centers, the Recordable Incident Rate (RIR) in 2024 was 2.46 accidents per million working hours
• The overall RIR in 2024 including offices was 2.42 accidents per million working hours, including all injuries resulting in lost time as well as cases of work restrictions and medical treatment over and above first aid
• Uncertainty in data collection primarily concerns underlying working hours and accident surveys at office locations
• Accident-related data is checked as part of audits at locations, but is not validated by a third party

tesa Business Segment:

• Accident rates and working hours at production sites are collected monthly via the "SoFi" database
• Accidents and working hours are recorded annually for office locations
• Working hours are calculated based on average contractual working hours per full-time equivalent
• The Accident Frequency Rate (AFR) in 2024 was 3.3 accidents per million working hours (the AFR is a synonym for the number of reportable occupational accidents required by the ESRS standard)
• Uncertainty in data collection relates to underlying working hours and incorrect accident recordings
• From 2025, accident data will be collected in the "Quentic" safety management system

Work-life balance metrics

Policies and programs

Beiersdorf offers flexible working arrangements to support work-life balance:

Consumer Business Segment:

• Flexible working time models with flexitime and work-from-home options
• Part-time working arrangements
• Job sharing models (45 tandems in 2024, compared to 38 in previous year)
• Sabbatical leave options
• Parent/child office at headquarters
• Company kindergarten "TroploKids" in Hamburg
• Parental leavers programs in cooperation with "MyCollective"

Coverage by affiliate (as of end of 2024):

• 86% of affiliates offer flexible working time
• 66% of affiliates offer part-time working
• 49% of affiliates offer sabbatical leave options

tesa Business Segment:

• Flexible working time regulation with flexitime
• Mobile working options
• Parent/child office at headquarters

Parental leave entitlement and take-up rates

No quantitative metrics disclosed regarding:

• Percentage of employees entitled to family-related leave (by type: maternity/paternity/parental/family care)
• Percentage of entitled employees who took family-related leave (by gender)
• Return-to-work rates after parental leave (by gender)

Regulatory framework

Germany: Parental leave regulations governed by:

• Collective agreements (Beiersdorf is member of collective bargaining association for chemical industry)
• National works agreements at Beiersdorf AG and Beiersdorf Shared Services GmbH
• Compliance with national legislation and occupational health and safety laws

Global: No global policies currently in place for work-life balance topics. These are regulated at national level in accordance with local legislation. The company states it is working to standardize regulations globally over the next ten years.

Compensation metrics

Pay gap

Beiersdorf discloses both unadjusted and adjusted gender pay gap figures for 2024.

Unadjusted gender pay gap: The analysis covered approximately 17,000 employees, representing around 75% of the workforce. The calculation is based on target salaries for 2024, determined after the company bonus announcement in April 2024. The unadjusted difference in annual target remuneration is 1.09% (in favor of men).

Adjusted gender pay gap: Beiersdorf also calculates an adjusted pay gap that accounts for explanatory factors such as job level, sectors of activity, and sites.

For the Consumer Business Segment, approximately 12,000 employees (about 70% of the Consumer workforce) were analyzed. The adjusted difference in annual target compensation is 0.98% (in favor of men).

For the tesa Business Segment, approximately 5,000 employees (about 93% of the tesa workforce) were analyzed. The adjusted difference in annual target compensation is 1.11% (in favor of men). Outliers were not considered in the calculation.

Remuneration ratio

The ratio of the annual target remuneration of the highest-paid individual to the median annual target remuneration of all employees was 63.80 in 2024.

Methodology

The company notes that only the unadjusted pay gap would be reported in accordance with ESRS S1-16. However, Beiersdorf considers this figure less meaningful as it does not account for factors that can legitimately explain salary differences. The adjusted pay gap accounts for factors such as job level and legal entities and shows residual differences that cannot be explained by standardized and verifiable criteria.

The analysis for unadjusted figures covered around 75% of the workforce (approximately 17,000 employees). For adjusted figures, the Consumer segment analysis covered approximately 70% of Consumer employees (around 12,000), while the tesa segment analysis covered approximately 93% of tesa employees (around 5,000).

Beiersdorf conducted an equal pay audit in 2024 covering 50 countries and around 70% of employees in the Consumer Business Segment. The company aims to expand the audit to encompass all employees in the Consumer Business Segment worldwide in 2025 and has set an ambitious goal to achieve global certification as a "Universal Fair Pay Leader" by 2026.

Incidents, complaints and severe human rights impacts

Disclosure approach

According to the ESRS cross-reference table provided in the report, Beiersdorf AG has assessed ESRS S1-17 regarding incidents of discrimination and non-respect of UNGPs on Business and Human Rights as not material.

The cross-reference table indicates:

Grievance mechanisms

The company has established various grievance mechanisms to enable workers in the supply chain and all other stakeholders to report noncompliant behavior or voice concerns. These include:

• Various media channels and audit reports of direct and indirect business partners
• Participation in multi-stakeholder initiatives such as the "Roundtable on Sustainable Palm Oil" (RSPO) and "Action for Sustainable Derivatives" (ASD), which offer comprehensive reporting systems
• Reports from affected communities of suspected noncompliance are investigated jointly and assessed for veracity

The Code of Conduct for Business Partners and Declaration of Principles on Upholding Human Rights both address the provision of grievance mechanisms to systematically prevent violations and provide workers with the opportunity to raise their voices.

Quantitative data

No quantitative data on the number of incidents of discrimination, harassment, complaints filed, severe human rights impacts, or fines and sanctions are disclosed in the report, consistent with the company's materiality assessment that classified these metrics as not material.

Policies related to value chain workers

Beiersdorf addresses material negative impacts on workers in the value chain through multiple policies across its Consumer and tesa Business Segments.

Code of Conduct for Business Partners (Consumer Business Segment)

Scope: Applies to all direct business partners of Beiersdorf's Consumer Business Segment.

Key content:

• Addresses material negative impacts on workers in the value chain
• Beiersdorf requires written confirmation of compliance from all direct business partners
• Business partners are expected to ensure compliance in their own business activities and along their entire value chains
• Beiersdorf provides practical, free training on human rights and environmental due diligence to support business partners, particularly small or medium-sized ones

Governance: The VP Corporate Sustainability (who is also the Human Rights Officer) is the signatory of this statement. The Sustainability function is responsible for ensuring that the content is up to date and that business partners comply with it.

International frameworks: The policy supports due diligence obligations under the German Supply Chain Due Diligence Act.

Public availability: Not specified.

Responsible Sourcing Policy (Consumer Business Segment)

The "Responsible Sourcing Policy" of the Consumer Business Segment requires compliance with international, national, and local human rights legislation and regulations. Further details are described in the chapter "ESRS S3 – Affected Communities."

Governance: The VP Corporate Sustainability and VP Procurement are responsible for implementation.

Code of Conduct for Suppliers (tesa Business Segment)

Scope: Applies to all tesa suppliers, regardless of business volume. Suppliers are required to pass on the CoCS specifications to their own suppliers to protect workers in potentially precarious procurement situations, such as subcontracting.

Key content: The CoCS addresses material negative impacts on workers in the value chain and focuses on five critical areas:

1. Corporate integrity
2. Human rights and labor standards
3. Occupational safety
4. Environmental protection
5. Grievance mechanisms

Principles:

• Requires all suppliers to support and respect international human rights and adhere to relevant guidelines and standards
• Prohibits child labor, forced labor, discrimination, restrictions on freedom of association, violations of working time and wage regulations, and violations of environmental and occupational safety regulations
• Human trafficking is not covered

Governance: The Chief Sustainability Officer (also Human Rights Officer) and the VP Global Procurement support the implementation of the CoCS. Both functions are responsible for monitoring and controlling progress.

Public availability: Not specified.

Human Rights Policy Statement (tesa Business Segment)

Scope: Available online to the public and business partners, regardless of region or procurement category.

Key content:

• Commitment to strengthening human rights and preventing human rights violations both within own operations and in dealings with business partners
• Outlines the approach to protecting human rights and adhering to environmental standards
• Addresses the provision of a grievance mechanism

Governance: The entire tesa Executive Board has signed the statement, making it collectively responsible for its implementation and compliance.

Public availability: Available online to the public and business partners.

Responsible Sourcing Policy (tesa Business Segment)

The development of a corresponding "Responsible Sourcing Policy" for the tesa Business Segment is planned for 2025. This policy will form part of a broader "Sustainable Procurement Strategy," which is currently under development.

Taking action on material impacts on value chain workers

Consumer Business Segment

Supplier assessment based on sustainability criteria

• Description: Social and environmental sustainability criteria are already part of the annual supplier assessment for strategic suppliers and form an integral part of the supplier management cycle.
• Scope: Global, strategic suppliers
• Time horizon: Annually
• Expected outcome: Increased internal awareness and the establishment of ongoing dialogue about social and environmental sustainability with strategic suppliers.

Training on human rights due diligence for procurement staff

• Description: In 2023, our procurement staff were trained on the requirements for fulfilling human rights due diligence obligations.
• Scope: The training was delivered as live digital sessions for all procurement teams and was made available as a recording for later review.
• Time horizon: 2023
• Expected outcome: Enhanced understanding of due diligence processes in supplier management.

E-learning on human rights

• Description: A mandatory e-learning course on human rights was launched during the reporting year.
• Scope: Global
• Time horizon: Ongoing
• Expected outcome: Training employees on fundamental due diligence processes and emphasizing the importance of the "Code of Conduct for Business Partners."

Free training for business partners

• Description: Support for small or smaller business partners in establishing human rights and environmental due diligence obligations through free training provided on the Beiersdorf website.
• Scope: Direct business partners
• Time horizon: Ongoing
• Expected outcome: Guidance as an optional offering for business partners.

Measures beyond direct business partners

Sustainable palm oil procurement

• Description: Sustainability criteria are integrated into the procurement of palm oil-based raw materials, guided by the requirements of international initiatives like RSPO certifications. Additional details on this and on community engagement in these supply chains, such as smallholder projects or financial support for local NGOs, are provided in the chapters "ESRS S3 — Affected communities" and "ESRS E4 — Biodiversity and ecosystems."
• Scope: Upstream value chain, palm oil suppliers
• Time horizon: Ongoing

Climate-related actions impacting value chain workers

Supplier engagement (Scope 3 emissions reduction)

• Description: To reduce our Scope 3 emissions and eventually reach Net Zero, we engage in dialog with our suppliers through various measures concerning raw materials, packaging, logistics, media, and third-party manufacturing. Focus areas include:
  • Disclose GHG inventory
  • Set short- and long-term science-based emission reduction targets
  • Use renewable energy
  • Share knowledge and capacity building
  • Exchange Product Carbon Footprint (PCF) data
  • Collaborate on innovation and technology development
• Approach: We tailor our approach in engaging with suppliers depending on their maturity in climate management and the significance of the supplier to our GHG inventory, materials, or services that we source.
• Scope: Upstream value chain, suppliers of raw materials, packaging, logistics, media, and third-party manufacturing globally
• Time horizon: 2032
• Expected outcome: We expect that through our engagement, our suppliers will realize the importance of climate action and the necessity of innovating low-carbon solutions. Overtime, the engagement efforts will enable our Scope 3 emission reduction.

Distribution partners

• Description: In the Consumer Business Segment, we participate in our retailers' sustainability events, programs, campaigns, as well as platforms, and in strategic sustainability exchanges. We furthermore provide retailers with our latest sustainability data. Our employees in relevant functions share their knowledge about our sustainability agenda, targets, progress, and concrete examples of actions with retail customers and other business partners. In the tesa Business Segment, we collaborate with our distribution partners to create more sustainable products and optimized packaging – e.g. steering projects for optimized transport and logistics, or engaging in industry initiatives and task forces.
• Scope: Downstream value chain, retail customers, and distribution partners globally
• Time horizon: 2032
• Expected outcome: Engaging with customers could generate a common understanding of the climate challenge facing our industry, develop a harmonized methodology for GHG accounting and data sharing, and empower end consumers to make sustainable decisions.

Policies related to affected communities

The document references ESRS S3-1 on page 149 and indicates disclosure requirement 16 (Human rights policy commitments) on page 150. However, the excerpts provided do not contain the actual content from pages 149-150 where the policies would be detailed.

The excerpts confirm that:

• Beiersdorf has addressed ESRS S3-1 (marked as 'yes' in the index table)
• The disclosure relates to Indicator number 9 Table #3 of Annex 1 and Indicator number 11 Table #1 of Annex 1
• There is disclosure regarding "Non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines" (ESRS S3-1 requirement 17) on page 150

Without access to the actual content on pages 149-150, the specific policy names, scope, governance arrangements, key content, public availability, links to international standards, and monitoring approaches cannot be extracted from the provided excerpts.

Taking action on material impacts on affected communities

The following initiatives go beyond direct business partners and aim to protect additional workers in the value chain:

Sustainable palm oil procurement

Description: Sustainability criteria are integrated into the procurement of palm oil-based raw materials, guided by the requirements of international initiatives like RSPO certifications.

Community engagement: Includes smallholder projects and financial support for local NGOs.

Cross-reference: Additional details are provided in the chapters "ESRS S3 — Affected communities" and "ESRS E4 — Biodiversity and ecosystems."

AI-based risk screening with "Sphera"

Description: Beiersdorf continuously utilizes AI-based risk screening by "Sphera" to be informed early about potential negative impacts in the value chain. This tool maps Beiersdorf's supply networks and monitors them by scanning various data sources and news outlets. If an identified risk affects a business partner, one of their subsidiaries, or a third company known in the supply network, Beiersdorf receives an alert via a customized dashboard.

Scope: Global

Time horizon: Ongoing

Expected outcome: Awareness of incidents within monitored supply chains

Governance and partnerships

Human Rights Officer: The overarching responsibility for implementing Beiersdorf's human rights program lies with the Human Rights Officer, appointed by the CEO.

Industry collaboration: Best practices from industry associations such as "AIM-Progress" are integrated into these efforts. This initiative unites Beiersdorf with over 40 leading manufacturers in the "FMCG" industry to collaboratively advance sustainable procurement across the sector.

Strategic partnership with WWF: This collaboration helps incorporate ecological and, above all, social aspects into strategy evaluations, ensuring that the interests of affected groups are considered as effectively as possible in due diligence processes.

Peer dialogue: Direct dialogue with companies of comparable size or position plays an important role in assessing whether measures are appropriate and effective.

Enforcement: If a business partner repeatedly exhibits non-compliance, fails to cooperate on corrective actions, or is involved in severe violations such as child or forced labor, the business relationship may be questioned and, if necessary, terminated.

tesa: New Sustainable Procurement division

Description: In late 2023, tesa established the "Sustainable Procurement" division within "Global Procurement" and expanded it with additional staff throughout 2024. The "Procurement Service Hub" also supports the implementation of these processes and measures. Furthermore, "Global Procurement" has taken on the role of an ESG expert for the supply chain.

Purpose: The "Sustainable Procurement" department, embedded within the procurement function, was specifically created to develop and implement a responsible and supply chain-compliant purchasing strategy. In close collaboration with other involved departments, it ensures that all strategic decisions align with tesa's sustainability objectives.

Scope: Global

Time horizon: Ongoing

Resources: Additional staff added throughout 2024 (non-financial)

Cross-functional coordination: All described measures require close cross-functional coordination, where responsibilities are distributed, but the content is largely developed collaboratively.

Policies related to consumers and end-users

Beiersdorf has identified two specific policies related to consumers and end-users that address product safety, quality, and consumer well-being.

Product Safety Policy for Cosmetic Products

Objective and key content:

• Commitment that all cosmetic products placed on the market by Beiersdorf are safe for consumers
• One single global product safety standard defined and applied consistently across all regions
• Requires thorough state-of-the-art assessment of raw materials, formulas, packaging and product presentation for their intended use prior to placing products on the market
• Requires post-market surveillance once products are on the market
• Safety procedures should be regularly reviewed to keep them state-of-the-art
• All products must be approved prior to production

Scope:

• Applies globally
• Covers all consumers of Beiersdorf Consumer Business Segment products
• Covers all Beiersdorf staff responsible for design, production and placing of products on the market

Governance:

• Vice President Global Product Stewardship is responsible for implementing the directive
• R&D Leadership Team is responsible for allocating adequate resources to implement the necessary activities and ensure adequate risk control

Impact addressed:

• Addresses and mitigates the potential negative impact of consumer intolerance reactions

Monitoring:

• Effectiveness monitored with a set of KPIs for Quality Management, recording any exceptions or deviations such as non-conformities, managed according to the QMS
• Consumer complaint rates are monitored for adverse reactions, which can trigger investigation and corrective actions

Public availability:

• Excerpts publicly available at: www.beiersdorf.com/research/our-way-of-working/secured-quality

Stakeholder integration:

• Stakeholder interests have been incorporated into the regulatory requirements that the policy references

Raw Materials Policy

Objective and key content:

• Establishes that Beiersdorf develops, manufactures and markets products in accordance with principles that aim to ensure consumers' safety and promote well-being
• Materials must pass through a multi-stage selection process involving experts in specialist functions
• Raw materials must meet stringent quality criteria, continuously updated to comply with latest regulations and international directives
• Toxicologists thoroughly check each raw material; all available information regarding characteristics that could result in potential health risks are included
• Raw materials tested in vitro if required, using all relevant test procedures (e.g. cell cultures)
• Skin compatibility of raw materials in product applications tested using volunteers

Impact addressed:

• Serves as an initial measure to address and mitigate the material potential negative impacts of consumer intolerance reactions
• Contributes to the opportunity of promoting consumers' health and well-being

Monitoring:

• Effectiveness monitored by carefully analyzing communication with consumers
• Potential improvements to products identified as early as possible and incorporated into product development
• New findings and pointers from scientific literature, media and interest groups analyzed for relevance to safety assessment
• If data leads to reassessment of a material, necessary measures implemented within appropriate time frame (ranging from immediately discontinuing use and recalling affected products to replacing materials over a longer period)
• Data and incidents summarized in monthly "Consumer Complaints and Post Launch Surveillance Report"
• Industry data benchmarking conducted through the IVDK

Scope:

• Global (monitoring measures directly aligned with Beiersdorf policies including Global Quality Policy, Product Safety Policy for Cosmetic Products, and Raw Materials Policy)

Related quality standards and regulations

The company also references compliance with international regulations and standards including:

• EU Cosmetics Regulation 1223/2009
• EU Medical Device Regulation 2017/745
• Global Quality Policy
• ISO 22716 for cosmetics
• ISO 13485 for medical devices

Taking action on material impacts on consumers

Beiersdorf discloses several actions related to managing material impacts on consumers and end-users in the Consumer Business Segment:

Corrective actions for existing products

Description: For existing products, corrective actions for identified negative impacts or material potential negative impacts on consumer experiences and intolerance reactions are evaluated and managed through a corrective action and prevention plan. This plan follows the process for managing non-conformities, such as described in the SOP for "Non-conformity Management." Managing product recalls, if necessary, are described in the SOP "Product Recall from Consumers." Corresponding change management and risk mitigation procedures are documented according to SOPs for "Change Management" and Quality Manuals.

Scope: Global

Time horizon: Ongoing

Expected outcome: Any identified or potential negative impacts, such as product intolerance or dissatisfaction, are promptly addressed and mitigated through corrective actions, ensuring product safety, quality, and satisfaction. If necessary, affected products may be recalled, and improvements implemented to prevent similar issues in the future.

Resources allocated: Not disclosed

Risk assessment and innovation management

Description: Risk assessment and risk management processes, including the pursuit of relevant opportunities, are embedded in all projects as described in the "Integrated Innovation Management" process. As part of this process, new products and technologies are developed to treat injured skin, further promote healthy skin and advance skin care.

Scope: Global

Time horizon: Ongoing

Expected outcome: The expected outcome of this action is the development of innovative products and technologies that enhance skin health and advance skin care, ensuring consumers benefit from safer, more effective, and forward-thinking solutions tailored to their needs.

Resources allocated: Not disclosed

Safety assessments

Description: In the interests of consumer protection, safety assessors work closely with relevant departments such as R&D and Product and Packaging Development. Evaluating the safety of cosmetic and medical products requires scientific exchange and knowledge of new findings regarding the compatibility and safety of raw materials, formulas, and packaging materials, as well as compliance with legal and regulatory standards. Safety assessors attend international conferences, participate in working groups and expert teams, and take part in specialist international training courses.

Scope: Global

Time horizon: Ongoing

Expected outcome: The goal of this professional exchange and training is to ensure that Beiersdorf continues to operate appropriately and responsibly in the future. It is also important that external service providers and suppliers, such as raw material manufacturers, certify compliance with statutory requirements as well as with Beiersdorf-specific requirements that go beyond the legally required scope.

Resources allocated: Not disclosed

Link to policies

These actions are aligned with the following policies:

• Global Quality Policy
• Product Safety Policy for Cosmetic Products
• Raw Materials Policy
• Fragrance Restriction List

Monitoring and effectiveness

Effectiveness is monitored through:

• QMS Key Performance Indicators (KPIs)
• Consumer complaint rates
• Monthly "Consumer Complaints and Post Launch Surveillance Report" (baseline: 2023)
• Industry data benchmarking through IVDK (Information Network of Departments of Dermatology)
• Trend analyses to ensure no significant negative impacts on consumers

Business conduct policies and corporate culture

Beiersdorf AG has established several policies and guidelines governing business conduct and corporate culture across its Consumer and tesa Business Segments.

Code of Conduct for Employees (Consumer Business Segment)

Policy name: Code of Conduct for Employees

Key content and principles: The Consumer Code of Conduct translates Beiersdorf's core values (Care, Trust, Simplicity, and Courage) into standards and ethical principles. It is based on the ten principles of the UN Global Compact and covers:

• Core principles (product safety, free competition, anti-corruption)
• Working environment (health and safety at work, diversity and inclusion)
• Conflicts of interest, gifts, and invitations
• Handling information, resources and financial issues
• Society and the community
• Compliance with principles and reporting of compliance violations (including confidential handling)

Scope: All managers and employees in the Consumer Business Segment across all levels and in all affiliates worldwide

Approval and oversight: The Executive Board holds fundamental responsibility. Corporate Compliance Management and Corporate Auditing functions and local Compliance Officers continuously monitor compliance. The Supervisory Board is informed about compliance results through annual compliance reporting.

Material topics addressed: Corruption, corporate culture, and whistleblower protection

Links to international standards: Based on the ten principles of the UN Global Compact

Public availability: Available on the company's intranet and publicly on the company's website at www.beiersdorf.com/investors/corporate-governance/code-of-conduct

Implementation monitoring: All employees receive regular training on the Code of Conduct in the form of e-learning courses every four years. All managers are responsible for implementing the Code and monitoring compliance in their area of responsibility. Corporate Compliance Management has governance responsibility for regularly updating and implementing the Code. Deliberate breaches have consequences under labor law.

Code of Conduct (tesa Business Segment)

Policy name: tesa Code of Conduct

Key content and principles: Based on tesa's core principles (Respect, Honesty, Trust, Tolerance and Integrity) and the ten principles of the UN Global Compact, the tesa Code of Conduct serves as a behavioral guide covering business ethics. It includes:

• Business conduct
• Personal integrity
• Handling of company resources
• Working environment
• Sustainability
• Compliance with principles

Scope: Worldwide, all board members, managing directors, managers, and employees of tesa

Approval and oversight: The Executive Board is briefed on compliance through annual compliance reporting. The Supervisory Board is also informed. Corporate HR Management holds governance responsibility.

Material topics addressed: Corruption, corporate culture, and whistleblower protection

Links to international standards: Derived from the ten principles of the UN Global Compact

Public availability: Available at www.tesa.com/en/about-tesa/sustainability/strategy/our-guidelines-and-standards

Implementation monitoring: Training is provided every two years as mandatory e-learning for all employees worldwide. All managers are responsible for implementation and monitoring compliance.

Code of Conduct for Business Partners (Consumer Business Segment)

Policy name: Code of Conduct for Business Partners

Key content and principles: Defines requirements for global business partners regarding:

• Human rights and labor standards
• Workplace health and safety
• Corporate integrity
• Environmental protection

Prohibits child labor, forced labor, human trafficking, discrimination, restrictions on freedom of association, and violations of environmental and occupational safety regulations. Mandates provision of grievance mechanisms.

Scope: Mandatory for direct business partners with annual business volume exceeding €50,000. Business partners must communicate the Code's content to upstream partners, irrespective of industry or region.

Approval and oversight: Vice President Corporate Sustainability (who also serves as internal Human Rights Officer) and Vice President Procurement are responsible for overseeing progress monitoring.

Material topics addressed: Addresses material negative impacts on workers in the value chain, including working conditions, equal treatment, child labor, and forced labor

Links to international standards: Not explicitly specified in the excerpts

Public availability: Made available to stakeholders through the Beiersdorf website and sent to business partners

Implementation monitoring: Signing the Code is mandatory for qualifying business partners. Compliance monitored through sustainability assessments and social audits. Internal tracking of signatures with ongoing coverage checks. Target of 90% coverage of global expenditures (91% achieved in 2024). Business partners classified as high-risk undergo SMETA 4-Pillar on-site audits; medium-risk partners undergo EcoVadis assessments.

Code of Conduct for Suppliers (tesa Business Segment)

Policy name: Code of Conduct for Suppliers (CoCS)

Key content and principles: Addresses five critical areas:

• Corporate integrity
• Human rights and labor standards
• Occupational safety
• Environmental protection
• Grievance mechanisms

Prohibits child labor, forced labor, discrimination, restrictions on freedom of association, violations of working time and wage regulations, and violations of environmental and occupational safety regulations. Note: Human trafficking is not covered.

Scope: All tesa suppliers, regardless of business volume. Suppliers required to pass on CoCS specifications to their own suppliers.

Approval and oversight: The entire tesa Executive Board has signed the statement, making it collectively responsible for implementation and compliance. Chief Sustainability Officer (also Human Rights Officer) and VP Global Procurement support implementation and are responsible for monitoring and controlling progress.

Material topics addressed: Upstream negative impacts on workers in the value chain

Links to international standards: Requires support and respect for international human rights and adherence to relevant guidelines and standards

Public availability: Available online to the public and business partners through the tesa official website

Implementation monitoring: Internal tracking of signatures with ongoing coverage checks. Target of 100% of global expenditures with suppliers who have signed the Code by 2030 (74% achieved in 2024).

Declaration of Principles on Upholding Human Rights (Consumer and tesa)

Policy name: Declaration of Principles on Upholding Human Rights

Key content and principles: Express commitment to strengthening human rights covering:

• Zero tolerance for corruption, forced labor, human trafficking, child labor, or discrimination
• Support for health and safety in the workplace
• Employees' right to freedom of association, including collective bargaining
• Environmental protection
• Equal rights and treatment and diversity

Details approach to human rights protection including:

• Setting up risk management
• Annual risk analysis
• Establishing preventative measures
• Remediation measures
• Description of identified, prioritized risks
• Description of expectations on employees and suppliers
• Provision of grievance mechanism

Scope: Applies to Beiersdorf employees and business partners at own sites and employees worldwide and to all workers in the value chain

Approval and oversight: For Consumer: Vice President Sustainability is responsible. For tesa: Chief Sustainability Officer (Human Rights Officer) has operational responsibility. Most recently updated in December 2024.

Material topics addressed: Freedom of association/collective bargaining, health and safety, diversity, working conditions, equal pay for work of equal value

Links to international standards: Commitment to the principles of the United Nations Global Compact (UNGC) and other relevant guiding principles such as the United Nations Universal Declaration of Human Rights, the conventions of the International Labour Organization (ILO) and the OECD Guidelines for Multinational Enterprises

Public availability: Available online to the public and business partners. For tesa, available on the tesa official website.

Implementation monitoring: Not detailed in the excerpts

Anti-Corruption Guidelines (Consumer and tesa)

Policy name: Anti-corruption guidelines

Key content and principles: Provide guidance on:

• How to deal with gifts, product samples, and invitations from and to representatives and employees of other companies and public officials
• How to deal with conflicts of interest

Scope: Company-wide, uniform guidelines

Approval and oversight: Managers responsible for implementation and monitoring compliance. Compliance Officers in the regions and subsidiaries provide significant support.

Material topics addressed: Prevention of corruption and bribery

Links to international standards: Not specified

Public availability: Not specified

Implementation monitoring: Mandatory training courses every two years with globally applicable requirements on anti-corruption. Target participation rate of at least 95% worldwide (92% achieved for Consumer in 2024, 99% for tesa). Training monitored locally by compliance networks and centrally by Corporate Compliance departments. Executive and Supervisory Boards informed about corruption and bribery as required.

Antitrust Guidelines (Consumer and tesa)

Policy name: Antitrust guidelines

Key content and principles:

• Clear instructions on behavior in accordance with antitrust law
• Guidelines for contacting and exchanging information with competing companies
• Information on communication with customers (e.g., in connection with sales prices)
• Basic dos and don'ts

Scope: Company-wide, uniform guidelines

Approval and oversight: Managers responsible for implementation and monitoring compliance. Compliance Officers in the regions and subsidiaries provide significant support.

Material topics addressed: Free competition

Links to international standards: Not specified

Public availability: Not specified

Implementation monitoring: Mandatory training every two years. Target participation rate of at least 95% worldwide.

Data Protection Guidelines (Consumer and tesa)

Policy name: Data protection guidelines

Key content and principles:

• How the principles of the European General Data Protection Regulation (GDPR) are implemented for lawful processing of data in EU companies
• Assistance and instructions on how to handle data

Scope: Company-wide, uniform guidelines

Approval and oversight: Managers responsible for implementation and monitoring compliance. Compliance Officers in the regions and subsidiaries provide significant support.

Material topics addressed: Data privacy

Links to international standards: Based on European General Data Protection Regulation (GDPR)

Public availability: Not specified

Implementation monitoring: Mandatory training every two years for all employees worldwide (Consumer) or EU-wide (Consumer), or for employees with increased risk (tesa). Target participation rate of at least 95% worldwide.

Compliance Management System (CMS)

Beiersdorf has implemented Group-wide compliance management systems (CMS) in both the Consumer and tesa Business Segments that conform to uniform standards. The CMS includes:

Key elements:

• Corporate Compliance departments responsible for developing and monitoring the CMS and defining minimum standards for compliance programs
• Annual reporting to the Executive Board and Supervisory Board on Group-wide effectiveness and progress on compliance issues including anti-corruption
• Compliance incidents and implementation status of compliance programs recorded centrally and in subsidiaries worldwide
• Regular information and training for Executive and Supervisory Boards on fundamental compliance issues and legal aspects
• Risk-oriented training concept for specific target groups with e-learning and face-to-face training
• Whistleblowing systems: "Speak up. We care." (Consumer) and "Your voice – Our bond" (tesa)

Oversight: Executive Board responsible for establishing and monitoring. Corporate Compliance departments report annually to Executive Board and Supervisory Board.

Whistleblowing and Reporting Systems

Policy name: Whistleblowing channels and procedures

Key content and principles: Both business segments have established whistleblowing systems:

• "Speak up. We care." platform (Consumer)
• "Your voice – Our bond" platform (tesa)

Available anywhere in the world at any time, in various languages. Can be used by employees, customers, consumers, suppliers, and other stakeholders. Reports can be made anonymously. Possible misconduct includes incidents relating to company policy, human rights violations, and cases of corruption or bribery.

Processing based on internal procedures, standards, and the German Whistleblower Protection Act (HinSchG). Access restricted to small number of employees in Corporate Compliance departments, Corporate Audit and corresponding experts. Identity of whistleblowers treated as strictly confidential to protect from retaliation.

Scope: Global, available to all employees and external stakeholders

Approval and oversight: Corporate Compliance departments, Corporate Audit and designated "case managers" from relevant internal departments

Material topics addressed: Protection of whistleblowers, corporate culture

Links to international standards: Takes into account Directive (EU) 2019/1937 on protection for whistleblowers, German Whistleblower Protection Act (HinSchG)

Public availability: Information on how to submit complaints publicly available on respective company website, company intranet and homepage of whistleblower platforms. Contact points can be identified via Beiersdorf website. Email address also available: incidents_cases@beiersdorf.com

Implementation monitoring: Consumer continually monitors effectiveness through comparisons with other companies of similar size and through compliance culture surveys. In 2024 survey showed channels are known to employees and perceived as trustworthy. External communications measures ensure channels are easily accessible worldwide.

Corporate Culture Promotion

The document describes corporate culture as a positive impact area. Core values and principles that shape corporate culture include:

Consumer Business Segment:

• Core values: Care, Trust, Simplicity, and Courage
• Guidelines on business conduct that promote corporate culture by creating obligation to actively identify, report, and investigate behavior violating law or Code of Conduct

tesa Business Segment:

• Core principles: Respect, Honesty, Trust, Tolerance and Integrity
• Values: Team up, Challenge Yourself, Set the Pace, Focus on your Customers, Act responsibly, Achieve and Improve

Material topics addressed: Corporate culture

Links to international standards: UN Global Compact membership (both segments)

Additional Policies Mentioned

The excerpts also reference other policies that touch on business conduct matters:

• Diversity, Equity & Inclusion Roadmap (Consumer)
• Safety and Health Policy (Consumer)
• tesa Policy on Occupational Safety and Health
• HR Compliance Guideline (tesa)
• Environmental Policy (both segments)
• Sustainable Palm Policy (Consumer)
• Responsible Sourcing Policy (Consumer, tesa version under development)

However, these are primarily covered under other ESRS topics (S1, E1, E4, S2) rather than G1-1 specifically.

Incidents of corruption or bribery

Beiersdorf AG provides comprehensive disclosure on corruption and bribery incidents, investigation procedures, and reporting mechanisms across both its Consumer and tesa Business Segments.

Confirmed incidents and convictions

There were no convictions or fines in connection with corruption and bribery offences at Beiersdorf in the reporting period (2024).

The company states explicitly: "There were no convictions or fines in connection with corruption and bribery offences at Beiersdorf in the reporting period."

Investigation and reporting procedures

Beiersdorf has established comprehensive whistleblower and reporting systems:

• Consumer Business Segment: "Speak up. We care." platform
• tesa Business Segment: "Your voice – Our bond." platform

Both platforms are provided by the same system provider and are available worldwide, 24/7, in various languages. They can be used by employees, customers, consumers, suppliers, and other external stakeholders. Reports can be submitted anonymously where legally permissible.

The company's process for handling reports:

• Access to and processing of reports is systemically restricted to a small number of employees in Corporate Compliance departments, Corporate Audit, and relevant internal experts ("case managers")
• Processing is based on internal procedures, standards, and the German Whistleblower Protection Act (HinSchG)
• Whistleblowers' identities are treated as strictly confidential throughout the entire procedure to protect them from retaliation
• All reports of corruption and bribery are investigated, facts are clarified, and appropriate action is taken after careful consideration

Disciplinary actions

Beiersdorf states: "We always investigate all reports of corruption and bribery received via our reporting systems, clarify the relevant facts, and, after careful consideration, take appropriate action. Depending on the circumstances, this may include disciplinary or communicative measures as well as adjustments to internal processes."

However, no specific number of employees disciplined in 2024 is disclosed.

Contracts terminated

No information is provided on contracts with business partners terminated or not renewed due to corruption or bribery.

Additional context

The company's Compliance Management System (CMS) includes:

• Mandatory anti-corruption training every two years for all employees worldwide (Consumer) or employees with increased risk (tesa)
• Target participation rate of at least 95% worldwide
• 2024 actual participation rates: 92% for Consumer Business Segment and 99% for tesa
• Reports on compliance incidents submitted annually to Executive Board and Supervisory Board
• Anti-corruption guidelines providing guidance on gifts, invitations, and conflicts of interest

Any substantial incidents requiring sanctions are referred to relevant management teams and, if applicable, to a member of the Executive Board.

Payment practices

Supply chain financing program payment terms

Liabilities within supply chain financing program:

• Payment terms range: 30 to 180 days
• Median payment term: 120 days
• Total liabilities to participating suppliers: €194 million (2024), €127 million (2023)
• Amount already received by suppliers as of reporting date: €127 million (2024)

Liabilities to suppliers not participating in supply chain financing program:

• Payment terms range: 1 to 180 days
• Median payment term: 60 days

Brazil advance payment program

• Payment terms range: 90 to 120 days (regardless of participation in program)
• Total liabilities to participating suppliers: €70 million (2024), €55 million (2023)
• Amount already received by suppliers as of reporting date: €23 million (2024)

Trade payables

Future undiscounted cash outflows from trade payables (due within one year):