dsm-firmenich

The role of the administrative, management and supervisory bodies

Reference: pages 130-131.

The Board of Directors is dsm-firmenich's highest executive oversight body, with "ultimate authority on matters relating to Sustainability, including climate and nature," and has established a Sustainability Committee responsible for reviewing sustainability performance. Per the independence criteria, 73% of Board members are independent, 81% have relevant skills in Sustainability/ESG, and 37% are female; all members are non-executive, and employees are not directly represented on the Board.

By delegation, the Executive Committee, led by the CEO, manages the company and implements strategy. Below this sit five functional leadership teams: the Group Sustainability Leadership Team (GSLT), chaired by the Chief Sustainability Officer, which "drives the sustainability program of the company" across climate, nature, social impact and reporting; the Operations Leadership Team, SHE&S Leadership Team, Human Resources Leadership Team, and Procurement Leadership Team, each chaired by a senior executive (COO, CHRO, CPO).

Information provided to and sustainability matters addressed by the administrative, management and supervisory bodies

Reference: page 130.

Sustainability-related performance measures are embedded in incentive schemes reviewed by the Board and Executive Committee. For the Executive Committee, sustainability goals are weighted at 30% of the Short-Term Incentive (Safety and Employee engagement, 15% each) and 50% of the Long-Term Incentive (Absolute greenhouse gas reduction across Scope 1, 2 and 3, and Diversity of the Global Management Team, 25% each).

The Restricted and Performance Share Unit Plan extends comparable conditions to other eligible employees. Further detail "can be found in the Compensation report 2025 and Note 27 to the Consolidated Financial Statements."

The materiality assessment results were escalated through validation sessions: the Sustainability Committee of the Board and the Executive Committee reviewed the 2025 DMA and approved its conclusions "acting on authority delegated by the Board of Directors" (page 136).

Integration of sustainability-related performance in incentive schemes

Reference: page 130.

Sustainability metrics are embedded in both short- and long-term incentive schemes. For the Executive Committee: "30% of the STI, consisting of Safety and Employee engagement at 15% each", and "50% of the LTI, consisting of Absolute greenhouse gas reduction (Scope 1 & 2 and Scope 3) and Diversity of the Global Management team at 25% each."

The Restricted and Performance Share Unit Plan gives other eligible employees a long-term incentive scheme "with comparable conditions and goals to that of the Executive committee." Representation targets for women, non-binary individuals and ethnically diverse leaders are explicitly embedded in the LTI plan (page 189), "making inclusion a measurable priority at the highest level."

Further detail is in the Compensation report 2025 and Note 27 to the Consolidated Financial Statements.

Statement on due diligence

Reference: page 131.

dsm-firmenich maps the core elements of due diligence, "as defined in ESRS 2 GOV-4," against the relevant sections of the Sustainability Statements:

The launch of a Supply Chain Due Diligence standard "formalizes this commitment in our supply chain, setting clear expectations for ethical, environmental, and human rights practices across procurement." Suppliers are segmented by risk, with desktop and on-site audits used to identify and mitigate adverse impacts.

Risk management and internal controls over sustainability reporting

Reference: page 132.

"Material sustainability risks are integrated and managed as part of our company-wide risk management processes." Material risks are reported twice a year by Business Units and Business Partners to the Executive Committee, validated by the Audit & Risk Committee together with the Group Risk Assessment, and discussed with the Board.

In 2025 the company reviewed and updated its 2024 risk assessment of the "Sustainability reporting for the IAR" process. The key risk identified related to "Data quality. Risk of gaps in sustainability reporting, due to insufficient alignment between process and systems, which could impact our reputation." The 2024 "Project timeline risk" was judged sufficiently mitigated to no longer qualify as a key risk.

Mitigating actions for 2026 include continuing to align processes and internal controls for sustainability reporting, combining sustainability data into one data lake, and continuing "knowledge-sharing, competence- and capacity-building, and training to deepen and broaden the CSRD reporting competencies of the team."

Further context in Impact, risk, and opportunity (IRO) management on methodology and thresholds is referenced from Governance (page 132).

Strategy, business model and value chain

Reference: pages 133, 154.

dsm-firmenich generated net sales of EUR 9,034 million from continuing operations in 2025, organized across four Business Units: Perfumery & Beauty, Taste, Texture & Health, Health, Nutrition & Care, and Animal Nutrition & Health (ANH), plus Corporate activities. The ANH Business Unit is being carved out; "this impact is currently being assessed and will be reported at a later stage" (page 129).

The value chain comprises ten key elements: "1. Raw materials and ingredient sourcing, 2. Upstream transportation, warehousing, and distribution, 3. Energy and water supply, 4. Business Units, manufacturing and production process, 5. Back-office operations, 6. Science, research, and product development, quality and safety, 7. Downstream transportation, warehousing, and distribution, 8. Customer production processes, 9. Consumer experience, 10. End of life" (page 133).

dsm-firmenich's NACE Section C manufacturing activities place it in a high climate impact sector (page 164).

Interests and views of stakeholders

Reference: page 145.

"Our commitment to sustainability and excellence is reflected in our engagement with a diverse group of stakeholders. This includes employees, customers, suppliers, investors, and our communities."

External stakeholder interviews were conducted as part of the 2025 DMA process with "investor and business representatives and with NGOs to review the process and outcome of our materiality assessment" (page 136). The company states it "did not explicitly consult with affected communities as this was not considered necessary," and that no changes to the IROs or material topics resulted from the stakeholder dialogues, though stakeholders "confirmed the robustness of the executed process."

Community engagement with affected communities and worker engagement with own-workforce representatives (including a European Works Council) are addressed separately under the relevant topical standards.

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

Reference: pages 134, 138-141.

The 2025 materiality matrix identifies ten material topics grouped as Environment, Social, and Governance & Business: Biodiversity and nature; Climate change adaptation; Climate change mitigation; Water management; Access to health and nutrition solutions; Inclusion and belonging; Labor conditions and human rights; Occupational health and safety; Corporate culture; Product quality, safety, and impact. These map to ESRS standards ESRS 2, E1, E2, E3, E4, S1, S2, S4 and G1; ESRS E5 (resource use and circular economy) and ESRS S3 (affected communities) are not covered by any material IRO and have no corresponding section in the Statements.

"Topics are considered material if there is a material negative or positive impact, risk or opportunity associated with the topic" (page 133). A management decision removed a proposed risk under "corporate culture" as it did not meet risk-management reporting thresholds, "which resulted in this topic shifting from Double materiality to Impact materiality" (page 136).

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

Reference: pages 135-137.

The 2025 DMA followed seven steps: value chain definition; definition of impact narratives (using AI, for the first time, to screen "thousands of reports and documents relevant to our industry, value chains, and business context"); initial IRO evaluation (risks and opportunities sourced from the Enterprise Risk Management process); DMA calibration (more than ten workshops); management validation by the Sustainability Committee and Executive Committee; external stakeholder dialogue; and final approval by the Executive Committee "acting on authority delegated by the Board of Directors."

Impact materiality is scored on severity (scale, scope, irremediability) and likelihood on a zero-to-five scale; for human-rights-relevant topics, "severity takes precedence over likelihood." Financial materiality uses financial magnitude and likelihood, "consistent with the financial impact scale as used in the Enterprise Risk Management approach." All narratives were assessed gross, without regard to existing mitigations.

Disclosure requirements in ESRS covered by the undertaking's sustainability statement

Reference: pages 213-217 (ESRS content index).

The ESRS content index lists, for each standard, the disclosure requirements covered and their location. dsm-firmenich states it "made use of transitional provisions relating to entity-specific disclosures and to phased-in Disclosure Requirements, the latter of which were extended as part of the ESRS 'quick fix' Delegated Act of July 2025" (page 129), and that it "has not used" the intellectual-property/innovation omission option.

Topics assessed as not material: ESRS E2-4 (pollution of air, water and soil, though voluntarily disclosed for some datapoints), ESRS E5 (resource use and circular economy), ESRS S3 (affected communities), and the G1 disclosure requirements on supplier relationships (G1-2), political influence (G1-5) and payment practices (G1-6) — none of these has a section or an index entry in the Statements.

Disclosure requirements covered by transitional provision: E1-9, E2-6, E3-5, E4-6, S1-7 and S1-15.

Transition plan for climate change mitigation

Reference: pages 154-156, 159-163.

dsm-firmenich's Climate Transition Action Plan (CTAP), first developed in 2024 and built "bottom-up by the Business Units and relevant Business Partners," is "based on the guidance document from the CDP's Technical Note: Reporting on Climate Transition Plans," covering strategy, risk/opportunity management, metrics and targets, and implementation roadmaps.

Targets, validated by the SBTi in October 2024: net-zero GHG emissions across the value chain by 2045; 42% reduction in absolute Scope 1 & 2 emissions by 2030 (2021 base); 25% reduction in absolute Scope 3 emissions by 2030 (2021 base); 100% renewable electricity sourcing maintained through 2030.

"Based on these plans, we do not envision a requirement to fundamentally change our business model or strategy to meet these commitments, nor have we identified assets that are incompatible with a net-zero economy... we conducted an initial qualitative review of locked-in emissions, which did not identify any potentially material locked-in emissions" (page 155). An estimated EUR 10-25 million per year for 2025-2030 is ring-fenced for the Scope 1 & 2 roadmap (page 159). dsm-firmenich "is not excluded from the EU Paris-Aligned Benchmarks" (page 155).

Identification of climate-related risks and scenario analysis

Back-filled from the Climate change > Resilience Analysis and Metrics and targets sections, where this content is disclosed in the FY2025 report (pages 157-158). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

dsm-firmenich assesses both physical and transition climate risk, in its own operations and upstream/downstream value chain, over time horizons "up to 2050" (page 157). Scenarios used, based on the IPCC framework and Shared Socioeconomic Pathways (SSPs):

• SSP1-2.6 (Paris Agreement aligned, low emissions)
• SSP2-4.5 (middle of the road)
• SSP5-8.5 (fossil-fuelled development, high emissions)

These are enriched with IEA "Net Zero by 2050" (1.5°C) and International Monetary Fund scenarios. For physical risk, desk studies have screened approximately 50% of own manufacturing sites plus key supplier locations, identifying heatwave, drought and extreme precipitation as the primary hazards, with 18 cumulative on-site deep dives completed. For transition risk, new assessments were run for two Business Units in 2025, covering policy/legal, technology, market and reputational categories, identifying risks such as "GHG emission restrictions (of suppliers)" and opportunities such as "incentives to our customers to reduce their carbon footprint" (page 158). No single global average temperature projection per scenario is stated.

Resilience in relation to climate change

Back-filled from the Climate change > Resilience Analysis section, where this content is disclosed in the FY2025 report (page 157). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

"In 2025, we performed an updated mapping of the processes we use to address material impacts, risks, and opportunities. While the mapping showed that we have a strong capacity to address our impacts, risks, and opportunities, nevertheless we identified areas to further strengthen and ensure business resilience" (page 157).

The assessment feeds into the Enterprise Risk Management Framework, "allowing the business to highlight where aspects of the strategy may be at risk and where risk mitigation efforts are required," using both qualitative and quantitative methods across multiple scenarios and time horizons, covering total dsm-firmenich. The company states it does "not envision a requirement to fundamentally change our business model or strategy," has identified no assets incompatible with net zero, and found no material locked-in emissions (page 155). No explicit statement of areas of significant uncertainty, or of adjustment/adaptation capacity (AR 10), is given.

Policies related to climate change mitigation and adaptation

Reference: pages 142-143 (Policies table).

Climate policy is addressed across several company-wide documents tagged to E1 in the Policies table: the Group policy operations, which "highlights our commitment to minimizing environmental impact by adhering to science-based target directives"; the Safety, Health, and Environment policy, covering "environmental restoration and protection aimed at reducing the environmental footprint... through the efficient use of resources and the minimization of emissions and waste"; the Group standard for sustainable operations and environment, which "sets out the environmental and social requirements for all dsm-firmenich manufacturing sites," including greenhouse gas emissions and renewable electricity requirements; the Environmental sustainability reporting standard; the Group standard business continuity management; and the Responsible sourcing standard and Supplier code, which extend climate expectations ("setting science-based GHG reduction targets") to suppliers. All are owned by Group Operational Excellence, Legal/Risk/Compliance or Procurement.

Actions and resources in relation to climate change policies

Reference: pages 159-162.

Actions are "organized across 5 key decarbonization levers, including some 20 sub-levers, covering our own operations and value chains," funded through a ring-fenced CapEx budget (page 159). For Scope 1 & 2: energy efficiency projects (e.g., boiler upgrades in Kingstree, USA, saving ~3.5 ktCO2e; heat pumps in Shanghai, saving ~2 ktCO2e) and renewable electricity, where 100% of purchased electricity (125 GWh) now comes from renewable sources, reaching the company's RE100 commitment "as per plan" (page 159).

For Scope 3: three levers — purchased ingredients (supplier SBT engagement, primary data collection), operations/innovation (waste reduction, eco-steering), and a supply-chain network redesign. In 2025, the company "accelerated engagement with high-emitting and high-spend suppliers to set their own Science-Based Targets" and expanded primary data collection to 16% of emissions (up from 13%) (page 160). Avoided-emissions products include Bovaer (>500 kt CO2e cumulative avoided by end-2025) and the Purifine enzyme family (~95 kt CO2e avoided in 2025) (page 162).

Targets related to climate change mitigation and adaptation

Reference: page 163.

SBTi-validated (October 2024) targets: net-zero GHG emissions across the value chain by 2045; 42% reduction in absolute Scope 1 & 2 emissions by 2030 from a 2021 base year; 100% active annual sourcing of renewable electricity from 2025 through 2030; 25% reduction in absolute Scope 3 GHG emissions by 2030 from a 2021 base year (covering purchased goods and services, fuel- and energy-related activities, upstream transportation and distribution, and waste generated in operations).

2021 was chosen as the base year because it was "a year for which we had complete data available for our legacy companies, as well as being post-Covid and prior to the disruption in the vitamin market." Internal leading indicators support the Scope 3 target: supplier spend with Science-Based Targets and supplier primary-data coverage. Progress against the 2025 trajectory: Scope 1 & 2 reduced 31.4% versus 2021 (trajectory: -18.7%); Scope 3 reduced 23.2% versus 2021 (trajectory: -11.1%). The company notes the ANH carve-out "will therefore materially impact our overall reported GHG inventory as well as reduce the progress versus our 2021 baseline" (page 163).

Energy consumption and mix

Reference: page 164.

Total net primary energy consumption was 16,740 TJ (4,660,300 MWh) in 2025, versus 16,840 TJ in 2024. Of total fuel consumption (9,500 TJ): 8,000 TJ was natural gas, with negligible coal use and 400 TJ from renewable sources including biomass. Total purchased electricity was 4,500 TJ, of which 100% (4,500 TJ) came from renewable sources, up from 4,100 of 4,300 TJ (95%) in 2024 — the remaining 200 TJ fossil-sourced electricity in 2024 having been eliminated. Total purchased heat was 3,400 TJ, split 2,000 TJ fossil and 1,400 TJ renewable.

Self-generated non-fuel renewable energy with ownership was 374.4 GWh in 2025 (2024: 367.6 GWh, restated), a 1.8% year-on-year increase. Energy intensity is reported per net revenue. dsm-firmenich's NACE Section C manufacturing activities place it in a high climate impact sector.

Gross Scopes 1, 2, 3 and Total GHG emissions

Reference: pages 164-165.

2025 emissions (1,000 tonnes CO2e): gross Scope 1: 581.7 (2024: 605.7, -4.0%); Scope 2 market-based: 140.0 (2024: 169.7, -17.5%); Scope 1 & 2 combined: 721.7 (2024: 775.4, -6.9%). Scope 3: 10,280.1 (2024: 10,649.5, -3.5%), of which the SBT Scope 3 categories (purchased goods and services, fuels, transport & distribution, waste treatment) total 8,225 kt, driven 92% by Category 1 (purchased goods and services). Total market-based emissions: 11,001.8 kt CO2e (2024: 11,424.9, -3.7%).

Scope 3 represents over 90% of total GHG emissions. Categories 13 (downstream leased assets) and 14 (franchises) are excluded as immaterial per WBCSD chemical-sector guidance. 16% of Scope 3 Category 1 emissions were calculated using primary supplier data. Total GHG intensity (market-based) was 0.88 tonnes per million euros (2024: 0.89). 42.1% of Scope 1 emissions come from sites with direct ETS obligations (EU, UK, Swiss, Shanghai).

GHG removals and GHG mitigation projects financed through carbon credits

Reference: page 163.

"We do not currently implement significant GHG removals or mitigation projects or finance climate change mitigation activities through carbon credits." The company does engage in beyond-value-chain mitigation through the Livelihoods Funds, generating "a limited amount of carbon credits each year," though "no carbon credits generated were retired in 2025."

In 2025 dsm-firmenich invested 2.6% and 3.0% of total funding in the Livelihoods Carbon Funds LCF1 and LCF2 respectively, supporting mangrove restoration and agroforestry projects that planted 20,708 hectares of mangroves, rehabilitated 57,092 hectares of land, and planted 158.21 million trees, corresponding to a reported CO2 reduction of 5.2 million metric tons (page 174) — reported as a voluntary nature contribution, separate from the company's Scope 1-3 GHG inventory and its net-zero target trajectory, which relies on no removals or credits for near-term delivery.

Internal carbon pricing

Reference: page 163.

dsm-firmenich "reimplemented and reinforced" its Internal Carbon Pricing (ICP) processes in 2025 as "a critical element of our business case assessments." The current carbon price is EUR 100 per metric ton of CO2, set "by looking to recommendations from the High-Level Commission on Carbon Prices and trading ranges of the European Trading Scheme (ETS) as well as benchmarks from other companies," and is reevaluated periodically.

The ICP framework "currently focuses on Scope 1 & 2 emissions" and covers large CapEx processes (manufacturing, commercial, real estate and workplace) coordinated through the Group Investment Committee. Projects should "at minimum, not increase GHG emissions"; where that is not economically feasible, "the absolute emissions growth should be compensated by measures in the same Business Unit (within a three-year timeframe)."

Policies related to pollution

Reference: pages 142-143 (Policies table).

Pollution-related policy commitments sit within the same company-wide documents tagged E2: the Safety, Health, and Environment policy, covering "environmental restoration and protection aimed at reducing the environmental footprint... through the efficient use of resources and the minimization of emissions and waste"; and the Group standard for sustainable operations and environment, which requires manufacturing sites to "assess and mitigate risks to air, water, and soil, and to document and monitor all emissions," avoid ozone-depleting refrigerants, and follow WASH principles. The Responsible sourcing standard and Supplier code extend pollution-related expectations ("protect ecosystems and biodiversity," "minimize environmental impact") to suppliers. No policy specifically addresses substances of concern in product design; this is instead managed through the Product Stewardship function described under Actions and resources.

Actions and resources related to pollution

Reference: page 167.

dsm-firmenich's Product Stewardship team "supports the business globally" on classification and labelling of substances and products under the Globally Harmonized System (GHS) and Dangerous Goods requirements, generating safety datasheets, labels and transportation documents. In 2025, the team "went through a major transition" to prepare for the ANH carve-out, while migrating product data onto an integrated platform (go-live expected early 2026).

The company "strive[s] to limit new Substances of Concern or Substances of very High Concern via our innovations by applying a stage-keeping approach, our 5D process." A 2024 peer study on Substances of Concern/SVHC concluded "additional transparency was needed on our approach and position," and the 2025 results were discussed with the Business Units accordingly.

Targets related to pollution

Reference: page 167.

dsm-firmenich has not yet set a quantified target for Substances of Concern or Substances of Very High Concern: "For our existing portfolio, we aim to develop substance-specific targets in 2026, considering the dynamics in the listings used for qualifications as Substance of Concern or Substance of very High Concern, our product portfolio, and our belief in a risk-based approach as mentioned in our SHE policy."

In the interim, the company states its focus "will be on Substances of very High Concern, substances that are intended to be ultimately banned in EU, and we will aim to voluntarily reduce them across the globe," and that it "actively monitor[s] and manage[s] the impact of Substances of Concern that are currently used in our portfolio," including "fully documenting our reporting methodology" in 2025. The absence of a quantified target is itself disclosed, consistent with MDR-T.

Substances of concern and substances of very high concern

Reference: page 168.

"In 2025, 127 kilotonnes of Substances of Concern, including Substances of very High Concern, were present in our finished products" (page 167), broken out by hazard class (e.g. 21,608 tonnes respiratory sensitization category 1; 49,426 tonnes skin sensitization category 1; 378 tonnes Substances of very High Concern, up from 360 in 2024). "We only report on products... the quantity of Substances of Concern and Substances of very High Concern in raw materials and intermediates is assumed to be consistent with the volume in our finished products."

"dsm-firmenich has substances that qualify as a Substance of Concern while they are essential or beneficial for human or animal life. Our focus therefore is on safe production and use" (page 166). Replacement is described as difficult: "a substitute may still qualify as a Substance of Concern, albeit classified under another hazard criteria." 2025 data is based on "ATP 21, SvHC list October 2025" versus "ATP 19, SvHC list June 2024" for 2024, affecting comparability.

Policies related to water and marine resources

Reference: pages 142-143 (Policies table); page 169.

Water policy commitments sit within the Group policy operations, Safety, Health, and Environment policy, and the Group standard for sustainable operations and environment, which requires sites to "develop and maintain roadmaps for emissions and water reduction," follow WASH principles, and register with SEDEX for SMETA audits (pages 142-143). These principles "were formalized in 2025 in our standard for sustainable operations and environment" (page 168).

"Our policies reflect how important responsible water use is in our production sites and supply chain, along with the importance of regularly assessing our water risks... Our policies do not currently specifically address water in the context of product design" (page 168).

Actions and resources related to water and marine resources

Reference: page 169.

Within own operations, the water stewardship approach rests on four pillars: site improvement opportunities identified through water-expert assessments; deployment of "sustainable technologies (e.g., dashboarding and monitoring)"; a continuously improved efficiency roadmap; and active participation in initiatives and partnerships. In 2025, water roadmaps were developed at sites including Chifeng (China), Seclin (France) and Port Newark (USA), covering "leakage reduction, cooling tower optimizations and reverse osmosis optimization."

Delivered 2025 projects include "a significant improvement of the recovery rate of our reverse osmosis system in Chifeng" and a steam-distribution improvement in Port Newark "reducing steam and consequently water losses." Only 4% of total water withdrawal occurs in areas with high water stress (page 168); resource needs are "factored into our regular operational improvement program" (page 169).

Targets related to water and marine resources

Reference: page 169.

"At the end of 2024, a new company target was established: a 10% improvement in our water efficiency between 2023 and 2030 for manufacturing sites located in water-stressed areas." The target reflects external developments including the Science-Based Target Network (SBTN) framework and prioritization methods from the World Resources Institute and WWF.

"In 2025, we achieved an 11% water efficiency improvement compared to 2023 for sites in water-stressed areas, slightly above our 2030 target," attributed to water-saving projects, product intensification at a few sites, and product-mix changes at one ANH facility. The company cautions that "after the carve-out, we expect water efficiency improvement to also be positive although below the target level."

Water consumption

Reference: page 170.

2025 water use (1,000 m3): total withdrawal 100,350 (2024: 103,600), of which 77,000 from fresh surface water (once-through cooling) and 6,200 from fresh groundwater. Total discharge: 94,800 (2024: 98,250). Total water consumption: 5,400 (2024: 5,300, restated), of which 1,260 in water-stressed areas (2024: 1,150, restated). Water consumption intensity was 0.43 per net revenue (2024: 0.41).

Sites representing 95% of total dsm-firmenich water withdrawal are mapped and in scope for water-reduction activities (page 169). 2024 comparatives were restated for brackish/seawater, raw-material processing and rainwater withdrawal categories, and for ground-water discharge, due to "updates at multiple sites."

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

Reference: pages 171-174.

In early 2025 dsm-firmenich "kicked off a comprehensive nature development program supported by external experts" to assess dependencies, impacts, risks and opportunities (DIROs) across land use, water withdrawal, water pollution, soil pollution and biodiversity. The assessment followed "the LEAP approach of the Taskforce for Nature-Related Financial Disclosures (TNFD)" and "best practices from SBTN."

Strategy is structured across four levels: products (biodegradability target), own operations (water and phosphorus/nitrogen efficiency targets), upstream value chain (responsible sourcing, key natural ingredients target), and a new landscape level ambition, under which the company "commit[s] to start collective action projects in priority landscapes where we operate or source" (page 173). dsm-firmenich is working toward EU Deforestation Regulation (EUDR) compliance despite the postponement of its entry into force.

Policies related to biodiversity and ecosystems

Reference: pages 142-143 (Policies table).

Biodiversity-related commitments sit within the Group policy operations and Safety, Health, and Environment policy (E4-tagged, pages 142-143), and the Group standard for sustainable operations and environment, which requires sites to "assess and mitigate risks to air, water, and soil." The Responsible sourcing standard commits suppliers to "protect ecosystems and biodiversity" and "uphold strict no-deforestation principles," and the Supplier code requires "environmental responsibility" more broadly.

The company also cites long-standing institutional partnerships that shape its biodiversity approach: the International Union for the Conservation of Nature (IUCN), the Union for Ethical Biotrade (UEBT) since 2013, and membership of the Roundtable for Sustainable Palm Oil (RSPO) (page 171).

Actions and resources related to biodiversity and ecosystems

Reference: pages 173-175.

dsm-firmenich ran 16 active site-level biodiversity restoration projects in 2025, inside operational fences and within a 50km radius of sites, including native-vegetation restoration at the Midrand site, South Africa (with Marc Sherratt Sustainability Architects, now in its third year of a ten-year monitoring scheme) and a biodiversity research partnership near the Gebze site, Turkey (with KuzeyDoğa Society and three universities), which won the first Biodiversity Award at Turkey's Sustainable Business Awards.

Through the Livelihoods Funds, dsm-firmenich supported agroforestry and mangrove restoration, and separately donated 10,465 trees in 2025 tied to employee learning hours, reforesting 10 hectares and sequestering 360 tonnes of CO2 (page 175). Resources for nature actions are managed alongside the water-efficiency and P+N-efficiency roadmaps described under Water and marine resources.

Targets related to biodiversity and ecosystems

Reference: pages 174-175.

"We have a target in our sustainability program to achieve 90% ultimate biodegradability for products in washable applications by 2030, based on recognized test methods (OECD 301/302/310 or equivalents)." In 2025, dsm-firmenich "achieved 85% ultimate biodegradability" for products in scope, the result of work under the 15-year-old GreenGate program, pursued via four levers: high-performance alternative ingredients, regulatory/compliance-driven reformulation, discovery of new biodegradable chemistries, and AI-enabled testing capacity.

Complementary own-operations ambitions: a 10% water-efficiency improvement for water-stressed sites (2023-2030) and a company ambition to "improve P+N efficiency by 20% between 2023 and 2030" for sites in high water-pollution-index areas.

Impact metrics related to biodiversity and ecosystems change

Reference: pages 173-174.

Own operations account for 5% of total nature pressure, "mostly indirectly (upstream energy and downstream waste)"; the remaining 95% comes from upstream raw-material sourcing, with priority categories of "botanicals, terpenes and resins, corn and derivatives, and citrus." Land-use change (deforestation for palm oil and clove) is identified as a key focus area.

Nature-related physical-risk assessment found that "botanicals, corn and its derivatives, and terpenes and resins are the most exposed," with the future decrease in natural flood mitigation and water purification services under SSP3-6.0 and SSP5-8.5 producing "the highest physical risk exposure by 2050." Restoration-activity metrics are reported under Actions and resources (16 site-level projects; 20,708 hectares of mangroves via the Livelihoods Funds).

Policies related to own workforce

Reference: pages 142-143 (Policies table).

S1-tagged policies include the Group people policy ("mandates equal opportunities in recruitment, compensation, and career development"), the fair-wage/mobility policy ("ensures fair wage practices aligned with living wage principles"), the Inclusion and belonging policy ("equal access to opportunities, fair treatment, and an authentic and safe culture"), the Human rights policy (based on "the International Bill of Human Rights" and ILO fundamental-rights declaration, following UNGPs and OECD Guidelines), the Travel and event standard, the Hybrid working standard, and the Code of business ethics.

All S1 policies are owned by Human Resources, Group Sustainability, or Legal/Risk/Compliance, and apply across own operations and, via Group People Policy extension, to value chain workers where relevant.

Processes for engaging with own workers and workers' representatives about impacts

Reference: pages 130, 179-181.

Engagement runs through the annual Employee Engagement Survey (EES), which reached 90% participation in September 2025, and a continuous listening strategy capturing feedback "at key milestones that matter" — recruitment, onboarding (30-180 days), work anniversaries, and exit. Results are "shared across all layers of the company, from the global level to the team level," and fed into follow-up actions.

A European Works Council is in place for workplace representation (page 188), and employees are represented through collective bargaining agreements covering at least 43% of the workforce. The Board of Directors has no direct employee representation (page 130).

Processes to remediate negative impacts and channels for own workers to raise concerns

Reference: pages 190, 198.

Own-workforce grievances are channelled through Speak Up, "anonymously managed by an independent external provider." In 2025, the company "processed 218 reports via Speak Up (2024: 163), including ANH. All were investigated." Substantiated complaints (workplace harassment, mistreatment, conflicts of interest, labor practices, SHE-related issues) "led to terminations, written warnings, trainings, process improvements, among other things" (page 198).

Separately, 72 alleged cases of discrimination and harassment were raised in 2025 (2024: 52); "60 cases were closed, 14 of these cases (2024: 12) were substantiated" (page 190). Additional human-rights due diligence reporting, including remediation cases, is published in the company's annual Human Rights report.

Taking action on material impacts on own workforce

Reference: pages 179-184.

Actions address the IROs identified for own workforce: occupational health and safety, labor conditions and human rights, and inclusion and belonging. Safety actions include the SafeStart behavior-based program, continued roll-out of Life Saving Rules, a new Process Lifecycle Leadership standard, and a regional Industrial Hygiene organization with a custom hazard-and-risk digital platform. Inclusion actions include the Rise Together women's leadership program, mandatory respectful-workplace training, and over sixty Employee Resource Group events.

Human rights actions include a global risk assessment identifying "working conditions, discrimination, freedom of association and collective bargaining, and environmental degradation" as own-operations focus areas, a new UNICEF collaboration, and a Fair Labor Association HREDD self-assessment (achieving a 98% "Intermediate" maturity score) at the request of a customer.

Targets related to own workforce

Reference: page 184.

Stated targets: TRIR (safety) of 0.20 by 2030; Global Management Team diversity of 36% female/non-binary and 41% non-western European background by 2025; employee engagement score of 80% by 2030 and inclusion score of 70% by 2030; a commitment to pay a living wage to all employees in own operations (benchmark: zero employees paid below); and a commitment to gender pay equity across workforce levels.

2025 performance against target: TRIR 0.26 (target 0.20 by 2030); GMT diversity 35% women/non-binary (target 36%) and 48% non-western European (target 41%, already exceeded); engagement 80% (target met); inclusion 71% (target of 70% exceeded); zero employees paid below the adequate wage benchmark.

Characteristics of the undertaking's employees

Reference: pages 185-186, 190.

Total employees: 28,550 in 2025 (2024: 28,214), of whom 18,132 male, 10,406 female, 12 not disclosed. By significant country: China 3,324; USA 4,135; Switzerland 3,678; rest of world 17,413. By contract type: 25,306 permanent, 1,677 temporary, 1,567 from non-integrated acquisitions; 25,370 full-time and 1,613 part-time.

By age: under 30 years, 4,149 employees; 30-50 years, 17,718; over 50 years, 6,683 (page 190). Inflow in 2025 totalled 3,971 new hires (excluding acquisitions); outflow (excluding divestments) totalled 3,432, giving voluntary turnover of 6.6% and total turnover of 9.9%.

Collective bargaining coverage and social dialogue

Reference: page 188.

"At least 43% of employees are covered by collective bargaining agreements (2024: at least 43%), and a European Works Council is in place." Reported percentages are based on country-level reporting covering 89% of total headcount, with coverage calculated on headcount as of November 30.

"As dsm-firmenich has no EEA countries meeting the ESRS thresholds, the total EEA percentage is reported" as a separate region. Coverage varies by region: North America and Asia Pacific in the 20-39% band, EMEA (excluding EEA) higher, and Latin America and the EEA region itself at 80-100%.

Diversity metrics

Reference: page 190.

"Currently, 36.4% of employees at dsm-firmenich are women." At the Global Management Team level, 35% identified as women or non-binary (2025 target: 36%) and 48% identified with a non-western European background (2025 target: 41%, exceeded). The Board of Directors comprises 11 members from 8 nationalities, 36% women; 3 of 9 Executive Committee members are women.

By level (headcount): Executives 31.7% female / 68.3% male (438 total); Management 43.2% female / 56.7% male (11,658 total); Other employees 32.4% female / 67.5% male (14,887 total) (page 190). Representation targets for women, non-binary individuals and ethnically diverse leaders are embedded in the LTI plan.

Adequate wages

Reference: page 189 (Compensation-related metrics, voluntarily reported).

"We are committed to providing a decent standard of living for our employees and their families and we provide all our employees with fair wages... In 2025, no employee was paid under the adequate wage." The living wage is defined as remuneration sufficient "for a standard working week... to afford a decent standard of living for the worker and their family," including health, food, housing and education.

The company assesses its living wage commitment "every two years... using the benchmark data of WageIndicator"; the next assessment is scheduled for 2026. dsm-firmenich also highlights the November 2025 Doha Political Declaration, where living wage was "for the first time, highlighted as a priority topic by governments worldwide."

Training and skills development metrics

Reference: page 188 (voluntarily reported; index also flags a transitional provision on the underlying datapoint breakdown).

"In 2025, learning engagement remained strong, with consumption reaching over 100,000 hours." The company runs a tree-planting incentive tied to digital learning ("for every 10 hours of digital learning in which our employees engage, we plant a tree"), having planted over 30,000 trees before 2025 and a further 10,000 in 2025.

The LearnNow platform offers "more than 45,000 virtual courses, 16,000 business books, more than 40 academies," and in 2025 the Mentoring program connected 394 mentees with 298 mentors, while the multi-rater 360-degree feedback tool was used by over 1,000 employees and 300 people managers (page 181). A full mandatory-datapoint breakdown (e.g. by gender or employee category) is not disclosed, consistent with the transitional-provision flag on this item.

Health and safety metrics

Reference: pages 188-189.

"In 2025, we recorded 97 incidents (2024: 87)," giving a TRIR of 0.26 (2024: 0.24), "equivalent to an ESRS-aligned 1.3 recordable work-related accidents per 1 million hours worked." There were 36 work-related ill health cases (Health Rate 0.10) and 6,092 days lost (2024: 3,789) excluding the fatality. The Process Safety Incident rate was 0.30 (2024: 0.31).

"Tragically, we incurred a fatal incident in 2025 in which an Account Manager in our NA ANH Business Team was involved in an accident during a customer visit," caused by a third party now facing prosecution; "dsm-firmenich was not penalized for any safety violation associated with the tragic incident." One fatality was also recorded in 2024. All employees are covered by health and safety management systems aligned with ISO 45001.

Compensation metrics (pay gap and total compensation)

Reference: page 189.

"The unadjusted gender pay gap was 8.2% in favor of women" in 2025 (2024: -6.1%, restated for methodology); "when adjusting for the job levels of our organization, the adjusted gender pay gap is 3.3% in favor of men" (2024: restated). The annual total remuneration ratio was 86.7 in 2025 (2024: 71.7), based on CEO total compensation of EUR 6,990,781 versus median permanent-employee compensation of EUR 80,586; using average rather than median employee pay, the ratio would be 63.4.

"The difference between the adjusted and unadjusted pay gap is due to more female representation in the management levels of the organization as compared to other more junior levels." The ratio's year-on-year rise "is driven by the annual cash incentives," which weigh more heavily on the CEO's compensation structure.

Incidents, complaints and severe human rights impacts

Reference: pages 190, 198.

"In 2025, three cases of incidents related to human rights were reported, two of which were unsubstantiated. Another one is still in progress." Separately, "there were 72 alleged cases of incidents (2024: 52) of discrimination and harassment. 60 cases were closed, 14 of these cases (2024: 12) were substantiated." No severe human rights incidents or fines, sanctions or compensation relating to human rights incidents in the own workforce were reported in 2025.

Geographic risk is assessed via the Sedex risk register: "a high risk of child labor is identified in East Asia, and of compulsory labor or forced labor in East Asia, West Asia, South Asia, and Southeast Asia." Via Speak Up, five cases of potential bribery/corruption touching the workforce were also reported in 2025 (page 198), though allegations there "could not be substantiated."

Policies related to value chain workers

Reference: pages 142-143 (Policies table); page 191.

Value-chain-worker commitments sit principally in the Responsible sourcing standard, which "sets clear expectations for suppliers regarding People, Planet, and ethics," covering "respect human rights and labor standards," "ensure safe and healthy workplaces," and "zero tolerance for bribery, corruption, and improper payments"; and the Supplier code, which requires "prohibition of forced and child labor, respect for living wages," and commitment to "an incident-free workplace." Both are owned by Procurement, tagged S2 among other standards.

"Our Responsible Sourcing Standard defines priority areas for implementation," and "we believe the subject of human rights is one that should be embedded across all our business practices" extends, via the Supplier Code, to requiring partners "to adhere to similar ethical practices" (page 180).

Processes for engaging with value chain workers about impacts

Reference: pages 191-192.

"Our risk screening tools and performance analyses underscore that our highest exposure lies within the botanical-related supply chains in EMEA, South America, and Southeast Asia." Transparency tools include EcoVadis, Sedex, and UEBT for compliance monitoring, complemented by grievance mechanisms, desktop assessments, and on-site audits.

Direct engagement includes a worker survey with Ulula at the Apodaca and El Salto sites in Mexico (engaging agency workers from cleaning and security suppliers), and a Jasmine Coalition in Egypt with the Fair Labor Association, the ILO, over 15 producers/buyers, the Egyptian government, and local civil society, which in 2025 delivered "tailored entrepreneurial and financial literacy training to over 340 pickers and farmers" and PPE to over 15,000 jasmine pickers.

Processes to remediate negative impacts and channels for value chain workers to raise concerns

Reference: pages 192, 198.

"Reporting potential violations of our Supplier Code, Responsible Sourcing Standard, or external commitments is essential to transparency and accountability. Our Speak Up grievance channel — anonymously managed by an independent external provider — allows value chain workers to report concerns securely."

The Ulula worker survey at the Mexico sites "informed corrective actions aimed at improving access to grievance channels, wage transparency, and worker representation." Where remediation is not possible, the company "may pursue responsible disengagement, always prioritizing ethical standards and minimizing unintended consequences" (page 131).

Taking action on material impacts on value chain workers

Reference: pages 191-193.

In 2025, dsm-firmenich "launched a new, advanced Responsible Sourcing program for key natural ingredients," integrating desktop assessments with expanded field-based due diligence. "The most frequently identified gaps versus our standards relate primarily to social impacts, such as health & safety, working conditions, wages and child labor."

The Jasmine Coalition in Egypt delivered, among other actions, 23 medical convoys providing "nearly 20,000 medical services," piloted night childcare facilities, and deployed 40 community monitors across 21 villages. In the Forward Faster Living Wage working group, dsm-firmenich "collaborated with selected suppliers operating in Sri Lanka, Colombia, and India to advance their living-wage journey."

Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities

Reference: pages 193, 139-140 (entity-specific target: key natural ingredients).

"In 2025, we strengthened our due diligence approach by addressing salient issues identified through audits and grievance channels... we trained more than 350 targeted suppliers identified based on our desktop due diligence process." The company states that "for metrics and targets covering both social and environmental aspects, please refer to the Engaging with our supply chain section."

An entity-specific target on "key natural ingredients" responsibly sourced is referenced in the IRO table's S2 disclosures column (page 140), linked to the certification roadmap described under Biodiversity and ecosystems, but no single quantified percentage-sourced figure for this target is given in the Workers in the value chain section itself.

Policies related to consumers and end-users

Reference: page 142 (General information > Policies, per the company's own ESRS content index).

The company's ESRS content index cites "General information > Policies" as the reference for S4-1, but the Policies table itself (pages 142-144) carries no row explicitly tagged to S4. Consumer- and product-quality-relevant commitments instead surface through the Group policy operations and Code of business ethics, which "emphasizes equal treatment" and "the importance of integrity in all business activities" toward Business Partners generally, and through Product Stewardship's classification, labelling and safety-datasheet practices described under Pollution.

No standalone consumer/product-safety policy document is named in the Statements; product-quality governance is instead addressed operationally through partnerships described under Actions and resources below.

Processes for engaging with consumers and end-users about impacts

Reference: pages 145, 194-195.

Engagement with consumers and end-users runs primarily through partnership structures rather than direct consumer surveys: dsm-firmenich engages the UN World Food Programme (WFP) since 2007, the Gates Foundation, World Vision International, and Africa Improved Foods, to identify and respond to nutrition and hunger needs in the markets its fortified-food ingredients ultimately reach.

The company cites external data to frame these impacts: per the 2025 SOFI report, "between 638 and 720 million people — up to 8.8% of the global population — faced hunger in 2024," and per the 2025 EAT-Lancet Commission, "more than half of the global population lacks regular access to nutritious diets" (page 194).

Processes to remediate negative impacts and channels for consumers and end-users to raise concerns

Reference: page 198 (Governance information > Business conduct).

The company's ESRS content index cites "Governance information > Business conduct" as S4-3's reference. Consumer-facing product concerns route through the same Speak Up channel and product-stewardship processes (safety datasheets, GHS/DG classification and labelling) described under Pollution (E2-2) and Business conduct (G1), rather than through a dedicated consumer-complaints mechanism described separately in the Consumers and end-users section itself.

No consumer-specific complaint volumes or remediation case examples are disclosed in the Consumers and end-users section (pages 194-196).

Taking action on material impacts on consumers and end-users

Reference: pages 194-196.

Key 2025 actions, delivered through partnerships "supported by in-kind, direct and indirect financial contributions close to EUR 2 million a year": with WFP, reaching 23.6 million people through rice-fortification and retail projects (a 15% increase on 2023) and, via social protection programs, 720 million people receiving fortified rice (a 44% increase on 2023); with the Gates Foundation's Millers for Nutrition coalition, 750 millers reached across eight countries, covering over 560 million people; with World Vision International, a micronutrient-supplementation pilot reaching 1,859 women across four locations in the Philippines.

"WFP faced a 40% drop in funding, which risks pushing up to 13.7 million people from crisis into emergency levels of hunger," and dsm-firmenich "reaffirmed its commitment to the partnership" in response.

Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities

Reference: page 196.

"We aim to extend these solutions to one billion people by 2030 (annually, not cumulatively)," through fortification of staples such as flour, oil and rice. "Through our nutrition improvement segment, acting both independently and through our partnerships, we reached 775 million people in 2025" (2024: 759 million, restated from 620 million for a methodology change).

"The methodology for measuring progress towards our target will incorporate the upcoming ANH separation, which will lead to the carve-out of our vitamin A production," flagging a forward risk to comparability of the reported trajectory toward the 2030 target.

Business conduct policies and corporate culture

Reference: pages 142-144 (Policies table); page 198.

G1-tagged policies include the Code of business ethics ("the importance of integrity in all business activities," "equal treatment regardless of gender, gender identity... and any other protected categories"), the ABC policy (anti-bribery and corruption) ("prohibits all forms of bribery and corruption, including facilitation payments"), the Privacy policy, and the Cybersecurity policy & standard, owned by Legal/Risk/Compliance or Digital and Tech. The Responsible sourcing standard and Supplier code extend ethics expectations ("zero tolerance for bribery, corruption, and improper payments") to suppliers.

A dedicated Business Ethics team, reporting to the Chief Legal, Risk and Compliance Officer, "oversees our observance of ethical and legal standards," escalating quarterly to the Group Ethics Committee (CEO, CFO, CHRO, CLRCO as chair, and Head of Business Ethics as secretary).

Prevention and detection of corruption and bribery

Reference: page 199.

"We focus on preventing corruption and bribery by establishing effective countermeasures. Our Anti-Bribery and Corruption policy shapes our internal regulatory framework." In 2025 the company "conducted a multi-disciplinary third-party risk assessment... to gauge the risk of bribery and corruption," supplemented its Conflict of Interest Standard for recruitment scenarios, launched a new Gifts and Entertainment Standard, and began a Group standard harmonizing Anti-Bribery and Corruption third-party risk checks.

Training: five mandatory courses (including Code of Business Ethics and Anti-Bribery and Corruption) were rolled out between October 2024 and August 2025, with completion rates exceeding 96% for internal employees by end-2025, subject to a two-year refresh cycle.

Targets related to business conduct

G1-3 became a standalone Disclosure Requirement only in the 2025/2026 ESRS; under the 2023 ESRS against which this report was prepared, business conduct targets/effectiveness tracking fell under MDR-T.

Reference: page 199 (Business conduct > Metrics and targets).

dsm-firmenich discloses no quantified corruption-prevention target; instead it reports how effectiveness is tracked, consistent with MDR-T's alternative limb: "The expected positive impact of our corporate culture is measured through the Employee Engagement Survey." The Speak Up channel provides a second effectiveness indicator, tracked by case volume: 218 reports processed in 2025 (2024: 163) and five bribery/corruption-related reports (2024: three), all investigated.

No forward-looking numeric target (e.g. a target completion rate for mandatory ethics training, already at 96%+ in 2025, or a target reduction in substantiated cases) is stated.

Confirmed incidents of corruption or bribery

Reference: page 199.

"Five cases related to potential bribery and corruption were reported via Speak Up in 2025 (2024: three). Each case was subject to internal investigation. While allegations could not be substantiated, all reports were taken seriously and reviewed thoroughly." "No convictions or fines relating to anti-corruption and bribery laws have been reported."

All 218 Speak Up reports received in 2025 (across all categories, not only corruption) "were investigated," with substantiated cases leading to "terminations, written warnings, trainings, process improvements, among other things." Further detail is directed to "Speaking up in Business Ethics."