Coca-Cola HBC AG

Reference: page 46

CCHBC's administrative, management and supervisory bodies comply with regulatory requirements, with worker representation based on local law (e.g., the Austrian works council in the supervisory board). At Board level, oversight of impacts, risks and opportunities sits with the Social Responsibility Committee and the Audit and Risk Committee. The Social Responsibility Committee establishes principles governing social and environmental management, oversees performance to achieve sustainability goals, and approves the sustainability strategy, commitments, targets and policies. The Audit and Risk Committee oversees accounting, financial reporting, internal control and risk management, and the external auditor reports directly to it. The CEO and ELT are ultimately accountable for sustainability performance. The CEO-led Sustainability Steering Committee (SteerCo), drawing members from Supply Chain, Procurement, Corporate Affairs & Sustainability, Finance and Commercial, sets targets, allocates resources and approves initiatives. Governance reporting lines extend from Board to ELT to business unit and country level. Ten of 13 Board members possess appropriate sustainability skills and experience.

Reference: page 46

The Board reviews and approves strategy, monitors performance towards strategic objectives, oversees ELT implementation and approves matters reserved for Board decision under the Articles of Association and Organisational Regulations. In 2024, CCHBC developed its Business Resilience (BR) Framework, replacing the Enterprise Risk Management Programme and incorporating security, business continuity, insurance and crisis management. The Board retains overall accountability for business resilience, risk management and internal control, provides direction through the Risk Appetite Statement and receives regular reports from the Chief Risk Officer. In 2024 the Board reviewed the Risk Appetite Statement and set risk tolerance levels. It also reviews Principal and Emerging Risks, insurance programmes annually, and receives quarterly updates via the Audit and Risk Committee. The Social Responsibility Committee reviews Group policies on environmental issues, human rights and other social topics, and met four times during 2024, discussing climate, water stewardship, packaging, public policies and other material sustainability matters. The double materiality results were reviewed and approved by management and endorsed by both Committees.

Reference: page 48

CCHBC provides both monetary and non-monetary incentives for achieving sustainability goals across all leadership layers, from Group and C-suite to country, plant-management and production shop-floor levels. Substantiated violations of the Code of Business Conduct result in disciplinary measures including loss of bonus. The Remuneration Committee incentivises business performance and reviews policy-based outcomes under the performance share plan (PSP). Since 2021, a GHG emissions reduction metric has been included in the long-term incentive plan (LTIP) and PSP to align with the Company's ESG objectives, particularly its goal of net zero emissions across the value chain by 2040, covering scope 1, 2 and 3 and SBTi-approved targets (2030 target year). Due to geopolitical circumstances, Russia and Ukraine are excluded from the GHG emissions data in the LTIP and PSP. CO2 emissions carry a 15% weight in the LTIP and PSP for all eligible C-suite and senior management. The CEO's individual performance was measured against business performance, employee engagement and sustainability commitments. The proportion of variable remuneration dependent on sustainability-related targets is up to 15%.

Reference: page 49

CCHBC's due diligence is conducted in accordance with the OECD Guidelines for Multinational Enterprises and implemented by members from functions including Supply Chain, Procurement, Corporate Affairs & Sustainability, Finance, Risk and Commercial, then presented to the Social Responsibility Committee, which reports to the Board of Directors. As this is CCHBC's first year of ESRS reporting, Table 2 maps the core elements of due diligence to the relevant paragraphs and pages in the sustainability statement. Embedding due diligence in governance, strategy and business model is covered through GOV-2, GOV-3 and SBM-3. Engaging with affected stakeholders in all key steps is covered through GOV-2, SBM-2, IRO-1, MDR Policies and topical ESRS. Identifying and assessing adverse impacts is addressed via IRO and SBM-3. Taking actions to address adverse impacts is covered through MDR Actions and topical ESRS. Tracking the effectiveness of efforts and communicating is covered through MDR Targets and topical ESRS, with cross-references to pages throughout the statement (e.g., p.46, 47, 55, 59, 65, 85).

Reference: page 49

Sustainability is embedded as a core element of management practices and the Business Resilience Framework, with the same approach applied to identifying risks, developing management plans and reporting sustainability-related risks as for all risks. The Risk Management programme is a five-step process: risk identification; analysing inherent risk by impact and likelihood; assigning risk ownership, mitigation activities and internal controls and analysing residual risk; preparing action plans; and monitoring, reviewing, auditing and reporting. Governance of all risks, including sustainability-related risks, is the Board's responsibility. The ESG data management approach, supported by Finance, applies financial reporting principles to non-financial data through a robust control environment, internal sustainability process guidelines and standardised tools across all CCH markets. This year CCHBC reviewed its data governance interaction model and updated documentation and training for Data Stewards. Sustainability-related risks are integrated into the Risk Management Programme, reviewed by the Group Risk and Compliance Committee and subject to internal audit. The internal audit department conducts independent cross-regional sustainability audits in conformance with the International Standards for the Professional Practice of Internal Auditing. CCHBC acknowledges variations in data collection practices, especially for upstream and downstream value chain segments where some metrics are estimated using indirect sources.

Reference: page 50

CCHBC's growth strategy reflects its vision to be the leading 24/7 beverage company, built on five strategic growth pillars: Leverage our unique 24/7 portfolio; Win in the marketplace; Fuel growth through competitiveness and investment; Cultivate the potential of our people; and Earn our Licence to operate. The portfolio spans Sparkling, Juice, Water, Sport, Energy, Ready-to-drink Tea, Coffee, Adult Sparkling, Snacks and Premium Spirits. CCHBC serves 750 million potential consumers across 29 countries spanning Western, Central and Eastern Europe and Africa, with routes to market including supermarkets, convenience stores, vending and HoReCa. Annual revenue reached EUR 10,754 million. The workforce comprises approximately 33,000 employees (33,018 total). Emerging markets contribute 45% of revenues, Established 33% and Developing 22%. CCHBC is an exclusive bottling partner of TCCC in 28 markets, buying concentrate under an incidence-based pricing model. The upstream value chain covers raw material supply; own operations cover production, packaging, warehousing and distribution; and downstream covers delivery to customers and end-consumers. The Company is committed to net zero emissions across the value chain by 2040, approved by the SBTi.

Reference: page 52

CCHBC partners and engages with stakeholders who share its commitment to a sustainable future. Beyond its people (employees), key stakeholders include investors (shareholders and analysts), customers, consumers, suppliers, governments and regulatory authorities, NGOs and IGOs, communities and TCCC. Engagement is tailored to each group's nature: focused conversations, employee surveys and dialogue with representative bodies for employees; key account managers and feedback for customers; consumer insights and hotlines for consumers; sustainability workshops and audits for suppliers; and trade associations for governments. The Annual Stakeholder Forum brings together stakeholders to address concerns and propose improvements, with the 2024 forum themed 'Harnessing the circular economy for packaging' (welcoming over 160 stakeholders). Beyond the forum, CCHBC seeks views through 26 in-depth interviews for impact materiality with global stakeholders, employee engagement surveys, the 'SpeakUp!' line, consumer link and customer surveys. The Social Responsibility Committee formally reviews this feedback, and annual materiality survey results are presented to the ELT and the Committee every year. Engagement informs how CCHBC introduces packaging and products, develops strategies and sets targets.

Reference: page 55

CCHBC's Business Resilience programme embeds the capability, processes and mindset to proactively manage risks and opportunities. Following the double materiality assessment (DMA), two material risks were identified: 'Managing our carbon footprint' (own operations and downstream, tied to NetZeroby40) and 'Cost and availability of sustainable packaging' (upstream and downstream). The 2024 financial effect of the carbon footprint risk is driven primarily by EUR 131.1 million of Capex on emissions-reduction projects; the packaging risk financial effect amounts to EUR 68.6 million Capex plus EUR 30 million for increased recycled PET cost. These are reflected in the financial statements. CCHBC identified 16 material positive and negative impacts across all value chain segments, with at least one in each segment. Upstream environmental impacts were negative (from suppliers' agricultural activities) while people impacts were mostly positive. Own operations showed both negative and positive impacts. Climate scenarios assessed include RCP1.9 (Paris Ambition) and RCP4.5 (Stated Policy). This is CCHBC's first ESRS-aligned materiality analysis; no new material areas were identified that had not previously been considered, but topics are now aligned with ESRS standards.

Reference: page 59

In 2024, CCHBC conducted a double materiality analysis based on ESRS requirements, following a top-down Group-level approach to identify, assess and prioritise impacts, risks and opportunities (IROs). For environmental impacts, it leveraged the TNFD impact drivers of nature change and the ENCORE platform; for social and socio-economic impacts, the UNEP Impact Radar; and it aligned with the Science-Based Targets for Nature (SBTN), considering five environmental pressures. Impacts were assessed across upstream, own operations and downstream on a scale of 1 to 5. Severity of actual negative impacts was assessed by scale, scope and irremediability per ESRS 1; potential impacts considered likelihood. CCHBC's risk universe includes 20 risk categories aligned with the growth pillars, assessed across all value chain segments. The magnitude of financial effect is calculated quantitatively (using percentage of comparable EBIT) or qualitatively on a five-step scale, with materiality thresholds set so 'Critical'/'High' or 'Critical'/'Major' items are material. Time horizons are Current (2024), Short-term (2025), Medium-term (2030) and Long-term (>2030). Opportunities use the same process. Internal sources (2023 IAR, CDP) and external sources (ENCORE, TCFD, TNFD, WWF filters) were used.

Reference: page 66

As this is CCHBC's first year of ESRS reporting, Table 6 lists the disclosure requirements covered and their location (page/paragraph) in the sustainability statement, alongside cross-cutting requirements (BP-1, BP-2, GOV-1 to GOV-5, SBM-1 to SBM-3, IRO-1, IRO-2). Following the double materiality assessment, the material topical standards are E1 (Climate change), E2 (Pollution), E3 (Water and marine resources), E4 (Biodiversity and ecosystems), E5 (Resource use and circular economy), S1 (Own workforce), S2 (Value chain workers), S3 (Affected communities) and S4 (Consumers and end-users), each with disclosure requirements and page references. G1 (Business conduct) is not material and is not included among the reported topical standards. Table 7 maps datapoints from other EU legislation (SFDR, Pillar 3, Benchmark Regulation, EU Climate Law) with materiality at Group level; certain SBM-1 datapoints (fossil fuel, chemical production, controversial weapons, tobacco) are marked Not Material. Disclosure requirements that are not material or not applicable are marked with dashes in the location column.