EVN AG

Composition of the Executive Board and Supervisory Board

The Executive Board of EVN had three members as of 30 September 2024. Of the 15 members of the Super­visory Board on that date, ten were elected by the Annual General Meeting. The Supervisory Board also included five members as of 30 September 2024 who were delegated by the works council.

Relevant experience of the members of the Executive Board and Supervisory Board

The listed EVN Group, together with its subsidiaries and Group companies, is active primarily in Austria, Germany, ­Bulgaria and North Macedonia. With state-of-the-art infrastructure, it provides electricity, natural gas, heat, drinking water supplies, wastewater disposal and thermal waste utilisation from a single hand. The product portfolio also includes network operations for internet and telecommunications as well as various energy services for private and business customers and municipalities.

The members of the Executive Board and Supervisory Board, as seen from a general overview, have relevant experience and knowledge in both an international and listed context in the following areas: controlling, accounting, corporate accounting, finance and risk ­management, investor relations, procurement and purchasing, internal audit, human resources, communication, IT and data processing, safety and infrastructure, customer relations, innovation and sustainability, energy generation, the energy sector, sales, project development, stakeholder management, legal affairs and the capital markets.

Disclosures on the diversity of the ­Executive Board and Supervisory Board

The Executive Board as of 30 September 2024 included one female member (33.3%) and two male members (66.7%), all of whom ranged in age from 40 to 60 years.

The 15 members of the Supervisory Board as of 30 September 2024 included six women (40%) and nine men (60%). Of this total, 6.7% were younger than 40 years old, 53.3% between 40 and 60 years old, and 40% older than 60 years.

Of the Supervisory Board members elected by the Annual General Meeting, 90% are independent of the company and its Executive Board according to C-Rule 53 of the Austrian Corporate Governance Code (ACGC). The members classified as independent according to C-Rule 53 of the ACGC include six persons who do not hold or represent the interests of an investment of more than 10%. Based on the total number of Supervisory Board members elected by the Annual General Meeting, 60% are classified as independent according to C-Rule 54 of the ACGC.

Working procedures, roles and responsibilities of the Supervisory Board

At the Supervisory Board level, the Audit Committee includes Maria Patek as a sustainability expert together with shareholder representatives Georg Bartmann, ­Reinhard Wolf, Jochen Danninger and Willi Stiowicek and the employee representatives Paul Hofer, Uwe ­Mitter and Monika Fraißl. This committee is also responsible for reviewing the non-financial statement according to the rules of procedure for the Supervisory Board (§ 267 (6) of the Austrian Commercial Code). The Audit Committee meets at least twice each year and reports to the full Supervisory Board.

Sustainability organisation

At the Executive Board level, the staff department for innovation, sustainability and environmental protection reported to the full Executive Board up to 31 August 2024. This staff department was upgraded to a corporate function as of 1 September 2024, renamed "innovation and sustainability" and assigned to the reporting line of the CTO through a change in the rules of procedure for the Executive Board.

The corporate function for innovation and sustainability is responsible for sustainability issues as well as environmental and climate protection in the EVN Group. A central component of these activities is the Group-wide and strategic coordination of sustainability and, in particular, the implementation of the new legal requirements. In preparation for the mandatory application of the CSRD by EVN beginning with the 2024/25 financial year, the following departments nominated staff responsible for the individual ESG standards: innovation and sustainability, human resources, safety and infrastructure, procurement and purchasing, information and communications, customer relations and corporate compliance management. The central management by these corporate functions is intended to ensure compliance with high sustainability standards throughout the EVN Group. It will also support the operational development and implementation of new ESG aspects like the application of the CSRD.

An extensive exchange of information between the innovation und sustainability corporate function and the responsible Executive Board member takes place every four to six weeks within the framework of management meetings and more frequently if required.

The full Executive Board is informed of sustainability programmes and plans at the quarterly meetings of the sustainability steering committee. This committee deals with current ESG issues, approves major ESG activities and, due to its broad composition, ensures that the addressed strategies, measures and goals are rolled out and implemented in operations throughout the Group. The circle of participants also includes other key corporate functions (in particular controlling and investor relations, accounting, finance, legal and public affairs) as well as representatives of key Group companies and departments from Austria and other countries.

The project-related sustainability steering committees, in 2023/24 above all the CSRD readiness steering committee, are responsible for reporting on and the determination of concrete measures. The circle of participants includes, in particular, the full Executive Board, the innovation and sustainability corporate function, and representatives of the other involved corporate functions and Group companies in Austria and other countries.

In addition to continuous exchange with internal experts, the Executive Board and Supervisory Board can draw on several advisory boards in which external experts from various disciplines contribute their expertise and outside perspectives on ESG issues: the Sustainability Advisory Board, the EVN Social Advisory Board and the EVN Art Advisory Board.

EVN's strategic goals result primarily from legal ­regulations, capital market and rating agency requirements, customers' demands, the EVN strategy, the EVN Climate Initiative, the materiality analysis and ­voluntary commitments, e. g. in connection with the Science Based Targets initiative.

The approved measures are implemented through ­projects carried out by the staff in the innovation and sustainability corporate function and employees in ­various departments and companies concerned in ­Austria and other countries. Function and role descriptions as well as guiding principles are issued and/or adapted to anchor ­competence and responsibilities in the organisation ­­(in particular, through the EVN sustainability guideline, the EVN Code of Conduct and the EVN Integrity Clause).

Target achievement is measured according to the target, form and term in line with the above-mentioned formats as well as through internal (in the form of steering committees for each segment) and external quarterly reporting and the annual financial statements. It is based on the defined project goals or also on the annually defined individual non-financial goals set for the Executive Board members and management.

Reporting requirements result chiefly from reporting requirements for specific ­project activities, management meetings and steering committees as well as from the legal requirements for quarterly reporting and the annual financial statements.

The proposals for investment projects that require the approval of the Executive Board and/or Supervisory Board are also required to include a standardised evaluation of the ESG impacts, opportunities and risks. In the 2023/24 financial year, this mainly involved the budget preparation for the EVN Group and planned projects for heat supplies, renewable generation and power plants/power plant locations.

As previously mentioned, both the Executive Board and the Supervisory Board receive regular information and, at the same time, training on sustainability issues. This information transfer and training also takes place as part of a regular series of events entitled "Supervisory Board Special" in which internal and external experts lecture on key topics.

The Supervisory Board plays an important role in ­sustainability reporting. Quarterly and annual reports are presented to the Audit Committee and the full Super­visory Board prior to publication and discussed by the Executive Board and Supervisory Board. The Remuneration Committee is responsible for monitoring the achievement of sustainability targets in connection with remuneration policy, remuneration practices and remuneration-related incentive structures. In addition, the Executive Board provides the Supervisory Board with up-to-date information on ESG issues at every meeting. The content is presented primarily by the Executive Board, if necessary with the support of internal experts. The Supervisory Board is also able to contact internal experts at any time for additional information apart from the scheduled meetings.

Information for the Supervisory Board

Various organisational processes ensure that the ­E xecutive Board is informed of important feedback from stakeholders. The quarterly steering committee meetings, which cover all segments as well as sustainability and public affairs, and the project steering ­committees are used for this purpose. These committees include the Executive Board as well as management ­from the respective areas.

Due diligence audits based on ecological and social aspects are integrated in the early phase of construction projects. They cover internal decisions as well as project approval by the Executive Board or – for larger projects – approval by the Supervisory Board.

In addition to the continuous exchange with internal experts, our Executive Board and Supervisory Board can draw on several advisory boards in which external experts from various disciplines contribute their expertise and outside perspectives on the ESG aspects of our activities. The high relevance of ESG issues and the strengthening of sustainability expertise is reflected in the inclusion of a sustainability expert in the Audit Committee of the Supervisory Board.

As previously mentioned, both the Executive Board and the Supervisory Board receive regular information and, at the same time, training on sustainability issues. This information transfer and training also takes place as part of a regular series of events entitled "Supervisory Board Special" in which internal and external experts lecture on key topics.

The Supervisory Board plays an important role in ­sustainability reporting. Quarterly and annual reports are presented to the Audit Committee and the full Super­visory Board prior to publication and discussed by the Executive Board and Supervisory Board. The Remuneration Committee is responsible for monitoring the achievement of sustainability targets in connection with remuneration policy, remuneration practices and remuneration-related incentive structures. In addition, the Executive Board provides the Supervisory Board with up-to-date information on ESG issues at every meeting. The content is presented primarily by the Executive Board, if necessary with the support of internal experts. The Supervisory Board is also able to contact internal experts at any time for additional information apart from the scheduled meetings.

Decisions on and principles of remuneration policy at EVN

The principles for the remuneration of the members of EVN's Executive Board (remuneration policy) were approved by the Supervisory Board in accordance with § 78a (1) of the Austrian Stock Corporation Act on 27 September 2023 based on a proposal of the Super­visory Board's Remuneration Committee in keeping with C-Rule 43 of the ACGC. These principles have remained in effect since the passing of a resolution by EVN's 95th Annual General Meeting on 1 February 2024. In accordance with § 78a (1) of the Austrian Stock ­Corporation Act, the remuneration policy must be presented to the Annual General Meeting at least every fourth year for voting. The remuneration is established annually by the Annual General Meeting.

The Remuneration Committee defines the financial and non-financial targets for the Executive Board members as part of the remuneration policy each year. It evaluates the results of business activities after the end of the financial year and establishes the target achievement for the financial and non-financial goals. The achievement for the financial and ESG targets requires the prior approval of the annual financial statements, whereby the Remuneration Committee reviews, or arranges for a review of, the correct calculation of the relevant ­metrics in advance. Based on this information, the ­Remuneration Committee defines the target achievement and the amount of payment, subject to the formal approval of the annual financial statements by the Supervisory Board and informs the members of the ­E xecutive Board ­accordingly.

Remuneration policy for the members ­of the Executive Board

The remuneration for the members of the Executive Board includes both fixed and variable components. The fixed remuneration components are independent of performance and consist of a base salary, remuneration in kind and ancillary benefits as well as a pension serviced by an external pension fund.

The variable remuneration components are dependent on performance and consist of long-term financial ­targets that are measured on the basis of multi-year performance criteria. Also included are ESG targets with single or multi-­year goals as well as individual targets with one-year performance criteria. The Long Term Account (LTA), which covers the achievement of financial and ESG targets, ­creates the basis for a long-term review period. Moreover, the remuneration policy includes malus and clawback rules.

The Remuneration Committee sets the financial targets for a period of four years in advance to uncouple the annual corporate planning process from the variable remuneration system and, in particular, to strengthen the concentration on medium- and long-term strategic goals and opportunities. The concrete ESG goals can be determined annually based on the company's long-term targets. The purpose of the four-year planning horizon is to focus the targets in the remuneration ­policy on medium- and long-term corporate goals and, through the multi-period nature of variable ­remuneration, to support sustainable management over a ­number of years. This four-year period reflects ­standard market practice.

The targets are derived on the basis of internal ­corporate data and information as well as external sources, above all peer group comparisons or capital market and rating agency evaluations.

To strengthen the sustainable development of the EVN Group, the Remuneration Committee also defines quantitatively measurable ESG targets for the variable remuneration components which are based on the sustainability strategy presented in the full report. These targets can be defined for a single year or for a multi-­year period. The decisive criteria catalogue ­covers the following subject areas, whereby at least three targets must be included:

Sustainability strategy – targets

Environment

Social

Governance

At the Executive Board level, 15% of variable remuneration is linked to ESG targets. The Long Term Account transfers the variable remuneration from the achievement of the financial and ESG targets in a particular period into an aliquot annual payment by releasing 50% of the Long Term Account in the first year after expiration of the financial year on which the entitlement is based. The remaining 50% are carried forward to the following periods.

Remuneration policy for the members of the Supervisory Board

The shareholder representatives on the Supervisory Board receive fixed annual base remuneration and a fixed attendance fee per meeting, but do not receive any variable or any ESG-based remuneration.

The amount of the basic remuneration for the Super­visory Board members can be measured differently for factual reasons, in particular the respective functions (e. g. chairperson, vice-chairperson, chair or membership in committees). The attendance fees reflect the fact that the ­number of meetings and the related time spent, especially in connection with committee memberships, can vary.

The employee representatives on the Supervisory Board exercise their functions in accordance with § 110 (3) of the Austrian Labour Constitutional Act in an honorary capacity and do not receive any remuneration and also no ESG-dependent remuneration.

Business areas

EVN's headquarters are located in Lower Austria, ­further core markets are Bulgaria and North Macedonia. In total, EVN was active in 13 countries during the 2023/24 financial year.

Energy

Our integrated business model covers the entire value chain:

• Energy generation • Operation of distribution networks • Supply of electricity, natural gas and heat to end customers (with ­different focal points in our individual markets)

Environmental services

The environmental services business covers the following activities:

• Drinking water supplies in Lower ­Austria • For the international project business further strategic options are under evaluation consistent with EVN's focus on the core energy business following the termination of the process for the complete sale of WTE in April 2024.

Investments

Investments in areas related to the core business supplement and hedge our value chain:

• Verbund AG (12.63%) • Burgenland Holding (73.63%), which, in turn, holds 49.0% of ­Burgenland Energie • RAG (50.03%)

Markets and business areas

Austria

• Generation: electricity, heat, thermal waste utilisation • Network operations: electricity, natural gas, heat, internet, telecommunications • Energy supplies: electricity, natural gas, heat • Environmental services business: drinking water supplies

Germany

• Generation: electricity • Energy supplies: electricity • Environmental services business: drinking water supplies and wastewater treatment, thermal sludge utilisation

Croatia

• Network operations: natural gas • Energy supplies: natural gas • Environmental services business: wastewater treatment

North Macedonia

• Generation: electricity • Network operations: electricity • Energy supplies: electricity

Bulgaria

• Generation: electricity, heat • Network operations: electricity, heat • Energy supplies: electricity, heat

Albania

• Generation: electricity

Other countries

• International project business: WTE is responsible for the construction and operation of plants for drinking water supplies, wastewater treatment and thermal waste and sludge utilisation in Germany, Poland, Romania, Slovenia, Croatia, North Macedonia, Cyprus, Bahrain and Kuwait.

Key data

Employees: 8,006 (International: 4,894, National: 3,112)

Networks: 155,853 km total

• Electricity: 140,909 km
• Natural gas: 13,966 km
• Heat: 978 km

Electricity generation: 3.3 TWh (84.4% Renewable, 15.6% Thermal)

Energy sales volumes: 22.3 TWh

Customers: 4.9m

• Electricity: 3.6m
• Natural gas: 0.3m
• Drinking water: 0.6m
• Heat: 0.1m
• Internet and telecommunications: 0.3m

Description of material business activities

Electricity generation

The focus for electricity generation reflects our ­Strategy 2030 and lies on the further expansion of renewable generation capacity, especially in the areas of wind power and photovoltaics. Based on our currently operational renewable plants – hydropower and wind power, photovoltaics and biomass – the share of renewable generation will continue to increase in the future.

We have significantly reduced our conventional energy production in recent years as part of our decarbonisation ambitions. The current thermal capacity of 470 MW in the Theiss power plant serves solely as a reserve for the transmission network operator APG. Consequently, this power plant only generates electricity when called on by APG for network stabilisation.

Electricity network infrastructure

Our electricity distribution networks and the smooth operation of the technically complex infrastructure form the basis for reliable supplies to our customers. EVN acts as the distribution network operator for electricity in Lower Austria, Bulgaria and North Macedonia.

The integration of electricity from renewable sources, which is delivered from a growing number of decentralised plants, and the related changing and volatile energy flows represent a growing challenge for our networks.

Changing consumption patterns driven primarily by heat pumps and e-mobility as well as more intensive interaction with customers who generate electricity or are part of an energy community are making network planning, management and operations more complicated. In the end, our networks must also be able to meet these users' needs when there is no local energy generation.

The energy transformation has turned the network ­infrastructure into a data hub for the energy future and made intelligent networks the backbone of our future electricity system. Innovative solutions and continuous investments are required to maintain the same high­quality performance. The massive expansion, ongoing modernisation and digitalisation of this infrastructure is a necessity – including high-voltage power lines, transformer stations and medium-voltage capacity as well as substations, local networks and smart meters. To support the energy transformation, we plan to invest roughly EUR 3bn alone in our network infrastructure in Lower Austria by 2030. Our focus for the low- and ­medium-voltage levels is on digitalisation and sensor technology. Therefore, more than 98% of all equipment in the Netz Niederösterreich supply area was equipped with smart meters as of 30 September 2024.

Natural gas

The EVN Group operates natural gas distribution ­networks in Lower Austria and in four counties in ­Croatia. Against the backdrop of the decarbonisation trend in the energy business, we are concentrating ­primarily on maintenance and repairs in this area to ensure safe power line operations. Our network ­investments have also already turned to preparations for the future transport of hydrogen.

Our long-term contracts for natural gas storage facilities ensure uninterrupted supplies, especially during periods with temperature-related higher consumption or possible shortages at the European level (e. g. due to political crises in transit or origin countries). This strategy has proven to be very successful, especially in the challenging environment that has characterised the energy ­market in recent years, and enables us to remain a ­reliable partner for our customers.

Our stake in RAG – with its focus, above all, on the ­natural gas storage business – has high strategic importance in this context. In the development of hydrogen technologies and green natural gas, RAG is seen as a pioneer for the branch due to successful pilot projects and is therefore also a key element in our strategy for the future renewable energy system.

Energy supply

­E VN supplies energy to end customers in Austria, Bulgaria and North Macedonia. In Austria, this takes place within the framework of EnergieAllianz through the equity accounted supply company EVN KG. In Bulgaria and North Macedonia, EVN also has separate companies that cover the liberalised and regulated market segments.

District heating

According to the Renewable Energy Expansion Act, district heating will make a significant contribution to meeting Austrian and European climate goals through expansion and decarbonisation in Austria. The use of renewable energy in the heating business has played an important role at EVN for many years. As the largest natural heat supplier in Austria, we currently operate more than 80 biomass district heating plants and ­biomass-based combined heat and power plants in Lower Austria. Three large cross-regional district heating transport pipelines – including the longest such line in Austria from the energy hub in Dürnrohr to St. Pölten (32 km) – as well as four natural cooling plants complete our extensive natural heating infrastructure. We are currently working on the construction of a new biomass combined heat and power plant in St. Pölten, which will be the fifth of this type for EVN.

Our biomass plants with a capacity of 20 MW or more only operate with biomass certified as sustainable under RED II.

The use of renewable energy will also lead to further changes in the heating sector. EVN has already become Austria's leading provider of natural heat and uses regional biomass for its production. We are continuously expanding our natural heat portfolio by consolidating district heating networks and expanding our generation capacity. In St. Pölten, we are currently constructing our fifth biomass combined heat and power plant and, at the energy hub in Theiss, we are pursuing new and innovative approaches. We have a warm water storage facility and a power-2-heat plant at that location. When we operate this plant with surplus electricity from solar power, we can produce and store warm water and thereby save biomass for the winter half of the year. Our plans include the increasing use of these power-2-heat ­systems for district heating supplies in the future because we can then use renewably produced ­electricity across sectors.

Drinking water

Demographic trends in our supply area as well as ­changing climatic conditions are responsible for a ­continuous increase in the demand for drinking water. In addition to the ongoing operation of numerous local networks that are supplied by EVN Wasser with drinking water, connecting water-rich and water-poor areas via cross-regional transport pipelines represents a particular challenge. This pipeline network is fed by well fields and high-level tanks throughout Lower Austria. In order to offset a climate-related decline in precipitation or regional breakdowns, we must construct new pipelines, improve the performance of our current network and develop new well fields.

The responsible use of drinking water involves new pipeline construction as well as the upgrading of the existing infrastructure – primarily through the identification and repair of leaks and the protection or improvement of the water quality while minimising the negative impact on the environment. One good example is the construction of natural filter plants to improve quality through the physical softening of water. Magnesium, calcium and other trace substances are dissolved and removed from the water with the help of modern ­technologies and without the use of chemicals.

Internet and telecommunication services

Sufficiently dimensioned, high-quality networks and technical infrastructure also form the basis for the ­reliable flow of data in this business. The high-perform­ance network operated by kabelplus offers digital cable television in HD, and partially also in UHD quality. The use of modern glass fibre technology, which is the focus of continuous expansion, also supports ­internet usage with upload and download speeds in the Gigabit range.

E-mobility

In the area of e-mobility EVN has positioned itself as a leading provider for charging infrastructure – not only for cars but also for trucks, buses and even ships. We had over 3,000 charging points in operation as of 30 September 2024. More than 20,000 fuel cards have already been issued for customers, which can be used throughout Austria based on joint roaming agreements. Further growth is expected, especially in the public sphere, and EVN is currently installing a charging infrastructure on the parking areas of two large supermarket chains. We have also started to develop an e-charging infrastructure in Bulgaria and North Macedonia.

Strategy 2030: More sustainable. More digital. More efficient.

The future-oriented development of our corporate ­strategy started in 2019/20 with a Group-wide process by EVN's management in close coordination with the Supervisory Board. The time horizon is focused on 2030.

Our strategy process was significantly influenced by the international frameworks applicable to the energy sector. Included here are the Sustainable Development Goals of the United Nations and the goals of global and European energy and climate policy (e. g. the Paris Climate Agreement and European Green Deal). These goals and policies are leading, in part, to massive changes in the framework and in the legal and regulatory requirements on energy providers. The determining change for our ­industry – and a central factor for our strategy – is the result of social and political efforts to achieve the ­fastest possible transition to a functioning renewable energy system in order to minimise sector-specific ­climate effects faster and even more clearly. It is also reflected in the inclusion of our major stakeholders' central ­concerns in the ­strategy process. Our answer to these developments is the EVN Climate Initiative, which is based on the Strategy 2030. It links relevant objectives, like the decarbonisation goals coordinated with the Science Based Targets initiative, with EVN's overall ­strategy.

The development of many basic market and environmental factors is connected with uncertainty. Our ­strategy process therefore includes sensitivity and ­scenario analyses to support reliable conclusions for the identification of concrete measures. We also ­continuously monitor energy sector conditions and ­regularly discuss developments, including deviations from plan assumptions and their effects, at the management level – for example, at the quarterly ­segment steering committee meetings where the ­members of the Executive Board and ­managers exchange information with internal experts. The ­E xecutive Board then regularly discusses the ­aggregated findings with the Supervisory Board.

Our core strategies for 2030

1) Enabling a renewable energy system

• We are committed to making a significant ­contribution to meeting Austrian and European climate goals. • This commitment is underscored by the ­preparation of a 1.5°C transition plan. • A central measure for the attainment of our goals is the expansion of our renewable generation capacity in our core markets of Lower ­Austria, Bulgaria and North Macedonia, especially in the areas of wind power and ­photovoltaics. Plans ­call for an increase in our annual ­renewable electricity production to roughly 3.8 TWh by 2030. • The increasing surplus production from renewable generation requires innovative approaches for the efficient cross-sector use of energy. We are actively working on initiatives that will allow green electricity to also support decarbonisation in other areas like the heat and transport sectors. For this purpose, we are investing in the expansion of the e-charging infrastructure and in the increased use of heat pumps. • In addition to sector coupling, we are working on projects to store the surplus production from renewable energy. Concrete projects involve the operation of large battery storage systems and the generation and storage of green hydrogen.

2) Network expansion for a renewable energy future

• An efficient, high-performance and digital ­electricity network infrastructure is the ­requirement for an CO2 -free energy system. The steadily increasing feed-in of wind and solar electricity combined with changes in ­consumption behaviour – above all, through e-mobility and the transformation of the ­heating sector – require substantial expansion in our network areas. We are therefore realising an ambitious investment programme in the coming years. It covers the installation of ­additional power lines at all voltage levels as well as the construction of ­further transformer stations and substations. • In addition to these construction projects, we are increasing our focus on digitalisation. The ­use of smart technologies and applications in network operations optimises load management as well as the feed-in and use of green electricity, above all during production peaks. Intelligent digital network controls will allow us to optimise the necessary hardware investments. • The infrastructure previously used for natural gas is being prepared for the future transport of hydrogen and renewable gas.

3) Digital offerings for customers

• The transformation of the energy system is changing the roles and behaviour of our ­customers. Private electricity generation with photovoltaic equipment and separate storage batteries, heat pumps and e-charging stations are converting electricity customers into active participants on the energy market. • Our claim is to support these developments with special services and offerings as a way of meeting the changing needs of our customers. Based on our expertise in the energy sector, we are also developing software solutions and applications that will allow our customers to easily and reliably participate in the energy market, for example through energy communities. • EVN's strategy for all customer groups involves the consequent digitalisation of our marketing processes to make internal operations more efficient and thereby continuously improve the service quality and offering for our customers.

4) Reliable drinking water supplies

• As in the energy business, the highest possible claims for supply security and quality also apply to our drinking water business in Lower Austria. Developments like the increase in water consumption due to demographic changes and the rising number of weather-related consumption peaks make additional investments in drinking water supplies unavoidable in the coming years. • These investments will focus on the expansion of cross-regional pipeline networks and capacity increases in the pump plants. These measures will guarantee that sufficient water resources can be distributed as efficiently as possible into all regions of our supply area. • We are also investing continuously in the improvement of the water quality. For this purpose, we are constructing natural filter plants that soften and purify the water physically with membrane technology – in other words, without the use of chemicals.

5) Solutions for the circular economy

• EVN operates a modern, ecologically optimised thermal waste utilisation plant in Lower Austria. The energy gained from waste incineration is used to generate electricity and district heat. • Based on our know-how and our many years of experience in thermal waste utilisation, we also operate thermal sewage sludge utilisation plants that generate electricity and district heat. • This knowledge is flowing into our evaluations for the construction of a further plant for the thermal treatment of sewage sludge, whereby we plan to recover phosphorous from the sewage sludge.

Supply security as our top priority

The infrastructure provided and operated by EVN creates the foundation for reliable supplies and the smooth functioning of society and the economy. Consequently, supply security has always been our central goal and our promise to our customers. This promise also determines our investment programme, which is directed primarily to network investments.

The central parameters for the quality of our network infrastructure are network losses and the indicators for power interruption. In Lower Austria, network losses have remained stable for many years at roughly 4%, which is a very low level in international comparison. A direct comparison with our supply areas in Bulgaria and North Macedonia is not possible due to the different customer and network structures. As the indicators in these two South Eastern European markets are higher, our investment programmes in these markets concentrate on the further reduction of network losses and the continuous improvement of efficiency. We have successfully reduced our network losses in Bulgaria from approximately 20% at the time of our market entry in 2004/05 to a recent level of 5.8% and from approximately 25% in 2005/06 to currently 14.5% in North ­Macedonia.

The reliability of our electricity supplies is also confirmed by externally calculated indicators such as SAIFI (System Average Interruption Frequency Index) and SAIDI (System Average Interruption Duration Index). They have confirmed our company's constantly reliable supply performance in Lower Austria for many years. Information is currently not provided on the respective indicators for our South East European markets in Bulgaria and North Macedonia due to the lack of an appropriate database.

SAIFI in the 2023 calendar year: 0.84 ­(previous year: 0.86)

That means an EVN customer was affected by an average of one unplanned power interruption in 2023.

SAIDI in the 2023 calendar year: 26.21 minutes (previous year: 17.19 minutes)

The SAIDI was again clearly below the ­Austrian average of 61.03 minutes (­previous year: 39.36 minutes).

EVN places high value on a regular, proactive and open dialogue with all stakeholders. The overriding principle in this context is to create and maintain an appropriate and equitable balance between the diverse concerns shared with us by our stakeholder groups. We are convinced that the social acceptance of our work is a basic requirement for EVN's sustainable, long-term ­success and positive perception by the public.

We therefore rely on an institutionalised exchange at all hierarchy levels and in formats tailored to the respective target groups. This communication takes place at regular scheduled meetings or as required. In this way, we want to ensure the structured and timely identification and management of our stakeholders' concerns.

EVN's stakeholders and the type of involvement

Various organisational processes ensure that the ­E xecutive Board is informed of important feedback from stakeholders. The quarterly steering committee meetings, which cover all segments as well as sustainability and public affairs, and the project steering ­committees are used for this purpose. These committees include the Executive Board as well as management ­from the respective areas.

Due diligence audits based on ecological and social aspects are integrated in the early phase of construction projects. They cover internal decisions as well as project approval by the Executive Board or – for larger projects – approval by the Supervisory Board.

In addition to the continuous exchange with internal experts, our Executive Board and Supervisory Board can draw on several advisory boards in which external experts from various disciplines contribute their expertise and outside perspectives on ESG issues: the Sustainability Advisory Board, the EVN Social Advisory Board and the EVN Art Advisory Board.

We carried out an online survey during 2023 in preparation for the CSRD to identify and synchronise the ­viewpoints of stakeholders with the material impacts.

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

Process for identifying and assessing material IROs

The sustainability reports previously published by EVN were focused on the materiality analysis concept defined by the Global Reporting Initiative (GRI). In preparation for mandatory application of the CSRD beginning with the 2024/25 financial year, EVN carried out a double materiality analysis for the current reporting period based on ESRS requirements, updated its risk inventory and integrated it with double materiality requirements. The material topics were also aligned with the ESRS terminology.

In advance of the ESG risk inventory for 2023/24, EVN aligned the material impacts, risks and opportunities with the interests and viewpoints of EVN's various stakeholder groups and included the results in the ESG risk catalogue. This took place as part of an online stakeholder survey that was carried out in 2023.

The primary objectives of the ESG risk management process are the targeted assessment of existing and potential impacts of EVN's business activities on mankind and society (impact materiality) as well as the identification and assessment of gross risks and opportunities (financial materiality), above all in a sustainability context. This identification takes place each year as part of the annual risk inventory by the centrally organised risk management with the support of the innovation and sustainability corporate function and EVN's ESG organisation.

The identification and assessment of impacts, risks and opportunities generally reflects EVN's risk management process and includes the following steps:

• Reporting: Discussion of the identified impacts, risks and opportunities by the ESG risk working committee and subsequently by the Group Risk Committee; if necessary, implementation of control measures; reporting to the Audit Committee; presentation of the material impacts, risks and opportunities in EVN's sustainability statement.
• Assessment: Structured by time horizon (short, medium and long term) based on a five-step scale for:
  • Risks and opportunities: "probability of occurrence" and "impact on cash flow"
  • Impacts: "probability of occurrence" and "degree of severity", including factors "scale", "scope" and "irremediable character of the impact". Assessments concerning possible negative impacts on human rights are also included.

Material impacts, risks and opportunities

The following table shows the material impacts, risks and opportunities connected with EVN's business activities that were identified as part of the ESG risk management process in 2024. The classification follows the topics and sub-topics in the ESRS structure.

E1 – Climate change

Climate change adaptation

Impacts

• (–) Greenhouse gas emissions (GHG) in the atmosphere caused by:
  • the use of fossil and biogenic energy carriers for energy generation
  • the operation of distribution networks and electricity, natural gas and heat supplies
  • electricity and natural gas sales volumes to end customers
• (+) Increase in the share of renewable energies as a contribution to the decarbonisation of the energy sector and the attainment of European and Austrian climate goals

Climate change mitigation

Gross risks and opportunities

• (–) High necessary investments in the expansion of the electricity network due to:
  • changes in energy consumption (e.g. e-mobility, use of heat pumps)
  • high peak loads
  • reversal of load flows caused by decentralised generation, above all from photovoltaic equipment in households

E2 – Pollution

Air pollution

Impacts

• (–) Emission of inorganic pollutants within or below emission thresholds according to Best Available Techniques (BAT), among others through waste incineration or wastewater treatment plants
• (–) Emission of air pollutants through thermal energy generation (e.g. SO₂, NOₓ, heavy metals) or energy consumption in the supply chain (e.g. NOₓ, dust, CO, SOₓ) depending on the energy carrier and/or fuel (e.g. gas, biomass or a material mix in waste incineration), especially at critical locations (redevelopment areas)

Gross risks and opportunities

• (–) Costs for necessary technical improvements and/or upgrades to equipment and infrastructure to meet stricter emission limits

E3 – Water and marine resources

Water / water withdrawal

Impacts

• (–) Reduction of groundwater through withdrawal for drinking water supplies

Gross risks and opportunities

• (–) Reduced availability of groundwater for drinking water supplies

Water / discharge of water

Impacts

• (+) Return of water to ecosystems following wastewater treatment
• (+) Reduction of freshwater consumption through wastewater treatment for agricultural uses in water shortage areas

E4 – Biodiversity and ecosystems

Direct causes of biodiversity loss/ climate change

Impacts

• (–) Increase in global warming caused by EVN's greenhouse gas emissions, which reduce biodiversity

Gross risks and opportunities

• (–) Limitations of business activities due to restrictions or prohibitions to protect species

Land use changes

Impacts

• (–) Impact on land use and land condition through new construction on green areas; sealing by infrastructure projects; land use for renewable energy generation; wastewater treatment plants

Gross risks and opportunities

• (–) Limitations from new or increased legal regulations in connection with land use

State of species

Impacts

• (–) Negative impacts on flora and fauna caused by construction and operation of renewable energy plants and electricity distribution networks; wastewater treatment plants

Gross risks and opportunities

• (–) Limitations resulting from new or increased legal regulations for species protection

E5 – Circular economy

Resources inflows, including resource use

Impacts

• (–) Use of materials and other supplies for the construction and operation of infrastructure and plants

Gross risks and opportunities

• (–) Increase in prices on the procurement market for the inputs required by EVN

Resource outflows

Impacts

• (+) Improvement of the circular economy through the clean separation of hazardous and non-hazardous waste

S1 – Own workforce

Working conditions

Impacts

• (–) Health and safety risks for employees, especially due to operational activities in power plants and on the electricity, natural gas, heat, water, internet and telecommunications networks
• (–) Negative impact on employees' health and/or well-being due to working conditions and/or missing work-life balance
• (+) Provision of secure employment and income, fair employment conditions
• (+) Measures to improve occupational safety and health protection

Gross risks and opportunities

• (–) Reduced attractiveness as an employer due to unfavourable working conditions and lack of a work-life balance
• (+) Increased attractiveness as an employer through the support for attractive and flexible working conditions (e.g. human resources development and advancement, work-life balance etc.)

Equal treatment and equal opportunities

Impacts

• (+) Diversity, equal treatment and equal opportunities (e.g. for remuneration, training and further education, advancement)

Gross risks and opportunities

• (–) Loss of reputation and employee dissatisfaction due to unequal treatment, e.g. concerning remuneration, human resources development and advancement
• (+) Competitive advantages through employee diversity
• (–) Revenue declines, respectively cost increases due to insufficient or lack of human resources development and advancement or dissatisfied customers

S2 – Workers in the value chain

Working conditions

Impacts

• (–) In certain parts of the value chain, risks of unfavourable working conditions, violations of labour rights, harassment and discrimination, lack of work-life balance or unfair payment

S3 – Affected communities

Economic and social welfare; environment-related human rights

Impacts

• (+) Contribution to reliable and price-worthy energy supplies for households and economic activities
• (+) Contribution to a reliable water supply and wastewater treatment for households and economic activities

Gross risks and opportunities

• (–) Disruptions for communities, e.g. due to the construction of new infrastructure and plants; interruptions to energy and water supplies

S4 – Consumers and end customers

Infrastructure

Impacts

• (+) Safeguarding of the reliable supply of electricity, natural gas, heat, and other services; development of new services and product offers

Gross risks and opportunities

• (+) Increase or protection of the customer base through expansion of service offer and products
• (+) Increase in customer satisfaction through improvements in the quality of end customer services
• (–) Reduced customer satisfaction, loss of customers, reduced net revenue due to lower quality of customer service, e.g. inadequate processing of concerns or incorrect invoicing

Personal safety

Impacts

• (–) Increased risk for persons e.g. due to the construction of electricity and natural gas infrastructure; increased risk for health and safety through thermal energy generation plants or wastewater treatment plants

G1 – Business conduct

Corporate culture

Impacts

• (+) Contribution to a fair and sustainable economic system and a fair society through strict compliance with legal regulations and all binding guidelines and corporate instructions (in particular the EVN Code of Conduct and EVN's fair tax policy)
• (+) Transparency and openness to dialogue on corporate responsibility, above all towards stakeholders

Management of relationships with suppliers including payment practices

Impacts

• (+) Support for social and ecological sustainability through a focus on sustainability criteria in the selection of suppliers and support for suppliers' own sustainability initiatives

Corruption and bribery

Gross risks and opportunities

• (–) Reputation loss and (financial) sanctions as a consequence of corruption

Linkage to strategy and business model

The transformation of EVN's generation portfolio is a key strategic pillar. EVN has been working consistently and successfully on this transformation for many years, investing extensively in the expansion of renewable generation capacity. Key milestones for the reduction of the thermal generation portfolio and the road to a renewable energy future include:

• 2018: Significant capacity in natural gas operated power plants in Theiss and Korneuburg was decommissioned. Natural gas is now only used for electricity generation in Austria by cogeneration and combined heat and power plants (18.5 MW), by the Theiss natural gas-fired power plant (470 MW as contractually guaranteed reserve capacity to provide network support for the Austrian transmission network operator), and in Bulgaria (80 MW).
• 2019: Premature termination of the hard coal-fired power plant in Dürnrohr
• 2021: Termination of electricity generation from coal with the sale of the investment in the Walsum 10 hard coal-fired power plant

EVN has constructed and commissioned various wind power and photovoltaic plants in recent years. These projects increased installed renewable generation capacity by a total of 150 MW over the last three financial years alone. As of 30 September 2024, installed renewable capacity totalled 925 MW.

The expansion targets set by Strategy 2030 for the period up to 2030 call for 770 MW of wind and 300 MW for photovoltaics.

The EVN Climate Initiative, which is part of Strategy 2030, puts EVN's decarbonisation goals in concrete terms and bundles measures to expand renewable generation capacity. EVN's revised CO₂e-emission reduction goals will be filed with SBTi in 2024/25 for external, scientific evaluation and validation.

Climate risk analysis

EVN has conducted a standardised annual process since the 2021/22 financial year to analyse potential climate risks and their impact on its business model as part of its activities to implement the EU Taxonomy Regulation. Scenarios are used to identify and assess potential climate risks for the years up to 2100. Physical risks involve events and changes with direct climatic causes. Higher temperatures can have a negative impact on EVN's plants. Acute risks include storms, heavy rainfall or flooding.

Damages caused by extreme weather events represent a threat to supply security. To ensure trouble-free operations and the technical security of power plants, EVN conducts regular inspections and maintenance work that also involve scheduled downtime. Actual interruptions in network electricity supplies are measured and monitored with the System Average Interruption Frequency Index (SAIFI) and the System Average Interruption Duration Index (SAIDI).

Goals related to material IROs

The EVN Group has defined various goals in preparation for 2024/25:

Value chain related goals:

• Comprehensive use of a software solution to support the identification of impacts, risks and opportunities in EVN's value chain in 2024/25
• Preparation of a concept for an ESG training organisation for employees in EVN's central procurement units by 30 September 2025
• Detailed ESG tender requirements for the merchandise groups with the highest ESG risks in each EVN core market by 30 June 2025
• Development of measures for the impacts, risks and opportunities ranked by the materiality and value chain analysis by 30 September 2025
• Development and implementation of an ESG audit system for suppliers with a high ESG risk by 30 September 2025
• Development of a concept for a branch-wide ESG procurement stakeholder programme by 30 September 2026

Identification and assessment of material impacts, risks and opportunities

The sustainability reports previously published by EVN were focused on the materiality analysis concept defined by the Global Reporting Initiative (GRI) as a means of identifying and assessing material impacts, risks and opportunities. In consideration of the interests of various internal and external stakeholders, we identified and evaluated the topics (previously described as "areas of activity") that have the greatest importance for our stakeholders and, at the same time, the greatest economic, ecological and/or social impacts on our business activities. This structured process was repeated and updated in a three-year cycle.

In preparation for mandatory application of the CSRD, we carried out a double materiality analysis for the ­current reporting period based on ESRS requirements, updated our risk inventory and integrated it with double materiality requirements. The material topics were also aligned with the ESRS terminology, and the previously used company-specific definition of the "areas of ­activity" was discontinued.

In accordance with the requirements of the Sustainability and Diversity Improvement Act and the EU Taxonomy Regulation, we also carry out an annual risk inventory to identify potential risks and the related impacts of EVN's business activities and business relations on environmental, social and employee-related issues, the observance of human rights and the fight against corruption. Also included here is an assessment of the resulting financial impact on the EVN Group.

ESG risk management process

The primary objectives of the ESG risk management process are the targeted assessment of existing and potential impacts of EVN's business activities on mankind and society (impact materiality) as well as the ­identification and assessment of gross risks and opportunities (financial materiality), above all in a sustainability context. This identification takes place each year as part of the annual risk inventory by the centrally organised risk management with the support of the innovation and sustainability corporate function and EVN's ESG organisation.

A clearly structured process was defined for the identification and analysis of impacts, opportunities and risks and the development of suitable countermeasures. Through the involvement of the management and ­E xecutive Board levels, EVN ensures that the results and findings from the risk inventory and the related double materiality analysis are presented and discussed by the ESG risk working group and, subsequently, by the Group Risk Committee.

The identification and assessment of impacts, risks and opportunities generally reflects EVN's risk management process and includes the following steps:

• Identification: An ESG risk catalogue was prepared in accordance with ESRS requirements and the previously identified, sustainability-related risk positions. This catalogue is evaluated and updated annually and, together with the material impacts, risks and opportunities, is formally released by the ESG risk working committee.

• Assessment and analysis: Qualitative and quantitative assessment of the various potential impacts, risks and opportunities by the responsible risk officers in the corporate and decentralised business units of the EVN Group.

– Risks/opportunities: The assessment is structured by time horizon (short, medium and long term) based on a five-step scale for the dimensions "probability of occurrence" and "impact on cash flow".

– Impacts: The assessment is structured by time horizon (short, medium and long term) based on a five-step scale for the dimensions "probability of occurrence" and "degree of severity". It also includes the following factors required by the CSRD: "scale", "scope" and "irremediable character of the impact". Assessments concerning ­possible negative impacts on human rights are also included.

• Reporting: Discussion of the identified impacts, risks and opportunities by the ESG risk working ­committee and subsequently by the Group Risk ­Committee; if necessary, implementation of control measures; reporting to the Audit Committee; ­presentation of the material impacts, risks and opportunities in EVN's sustainability statement.

In advance of the ESG risk inventory for 2023/24, we aligned the material impacts, risks and opportunities with the interests and viewpoints of EVN's various ­stakeholder groups and included the results in the ESG risk catalogue. This took place as part of an online ­stakeholder survey that was carried out in 2023, also in connection with preparations for the CSRD.

Analysis of climate risks

EVN has conducted a standardised annual process since the 2021/22 financial year to analyse potential climate risks and their impact on its business model as part of its activities to implement the EU Taxonomy Regulation. Scenarios are used to identify and assess potential climate risks for the years up to 2100. Physical risks involve events and changes with direct climatic causes. One example of chronic climate risk is the expected, longterm increase in global warming. Higher temperatures can have a negative impact on EVN's plants. Acute risks, in contrast, include storms, heavy rainfall or flooding. All these factors must be included in the design of plants and infrastructure.

We do not only identify climate-related fluctuations in our earnings as part of our risk management, but also evaluate potential quantitative impacts during the planning process with sensitivity and scenario analyses. ­Comparable issues also influence the selection of scenarios for the future development of energy and primary energy prices. This information forms the basis for discussions on climate change and its impacts on our business activities at the management, Executive Board and Supervisory Board levels.

Damages caused by extreme weather events represent a threat to supply security. In a broader sustainability context, the risks in this area also include supply interruptions or physical dangers to people caused by explosions or accidents. In order to ensure trouble-free operations and the technical security of our power plants – ­both of which are essential to protect reliable supplies – we conduct regular inspections and maintenance work that also involves scheduled downtime. We measure and monitor actual interruptions in network electricity supplies with the System Average Interruption Frequency Index (SAIFI) – which shows the mean supply interruption – and the System Average Interruption Duration Index (SAIDI) – which shows the average ­annualised duration of unplanned power interruptions.

Occupational safety and accident prevention are also prominent issues in all our business units. We guarantee the required high level of safety, above all, through training and by raising employees' awareness. In addition to legal requirements, we have developed an extensive set of internal rules, directives and guidelines. All work accidents in the EVN Group are recorded and analysed centrally by the occupational safety department.

Transition plan for climate change mitigation

Overview and commitment

EVN joined the Science Based Target Initiative (SBTi) in summer 2021 and committed to concrete, scientifically based goals to reduce CO₂e emissions. Based on the Greenhouse Gas Protocol, SBTi defines science based goals together with the participating companies to reduce their greenhouse gas emissions in accordance with the Paris Agreement.

Reduction of CO₂e emissions

In light of EVN's integrated business model and the differences between individual business areas, five reduction goals were formulated in 2021. The two intensity goals follow the SBTi sector approach for electricity producers:

• Intensity 1: Reduction of specific CO₂e emissions from electricity-generating plants, incl. cogeneration units, (Scope 1) by 66%
• Intensity 2: Reduction of specific CO₂e emissions from electricity-generating plants, incl. cogeneration units (Scope 1), and from electricity sales to end customers (Scope 3) by 65.1%
• Absolute 1: Reduction of absolute CO₂e emissions from heat generation and thermal waste utilisation (Scope 1) and from network losses and own consumption (Scope 2) by 37.5%
• Absolute 2: Reduction of absolute CO₂e emissions from sales of natural gas to end customers (Scope 3) by 37.5%
• Absolute 3: Reduction of absolute CO₂e emissions from natural gas network sales volumes (Scope 3) by 37.5% (in keeping with regulatory and legal framework conditions)

The CO₂e emission reduction goals agreed with and verified by SBTi are based on the international climate goal established in Paris, which calls for limiting global warming to substantially below 2°C. The basis for EVN's reduction was formed by the respective values from the 2018/19 financial year, and the defined goals were to be met by the end of the 2033/34 financial year. The 2021/22 financial year represents the base year, and EVN's plans call for target achievement by the end of the 2030/31 financial year.

Initial 1.5°C transition plan

EVN worked intensively to revise and refine CO₂e reduction goals in 2023/24 to align them with the 1.5°C goal set by the Paris Agreement. The target paths were modelled in line with the first target definition in 2021 based on the methodology defined by SBTi, which follows the Special Report on Global Warming of 1.5°C issued by the Intergovernmental Panel on Climate Change (IPCC), and the Greenhouse Gas Protocol. Existing measures were reviewed and intensified where possible, and new goals were set. This formed the basis for the development of an initial transition plan with concrete measures for the entire EVN Group. The plan was approved by the Executive Board during the reporting year and also presented to the Supervisory Board's Audit Committee.

EVN's initial 1.5°C transition plan is consistent with the Strategy 2030 approved by the EVN Executive Board and Supervisory Board.

Scope of the plan

The initial transition plan includes four targets to reduce CO₂e emissions. Two intensity goals are intended to reduce specific CO₂e emissions, while two other goals call for an absolute CO₂e reduction. These goals involve emissions from electricity and heat generation; for Scope 2, in particular, emissions from electricity network losses and from natural gas network sales volumes. The CO₂e emissions and biogenic emissions from the thermal waste utilisation plant in Dürnrohr (the latter based on SBTi requirements) are also included.

Target year for net zero / carbon neutral

Revised CO₂e-emission reduction goals aligned with the 1.5°C goal to be achieved by the end of the 2030/31 financial year.

Alignment with 1.5°C / SBTi validation status

EVN's revised CO₂e-emission reduction goals will be filed with SBTi in 2024/25 for external, scientific evaluation and validation. The first step was taken in November 2024 with the submission of the commitment letter to SBTi. This commitment letter requires EVN to submit new goals for CO₂e reduction to SBTi within two years. As soon as SBTi has completed an external validation of these goals, EVN will publish additional details on the individual targets in its 1.5°C transition plan.

Key levers / decarbonization pillars

The main drivers for the reduction process are:

• The continued strong expansion of renewable generation capacity, especially for wind power and photovoltaics
• The continuous reduction of emissions from electricity network losses in South East Europe markets of Bulgaria and North Macedonia
• Expansion of the district heating networks to supply additional customers with natural heat
• The substitution of renewable gas for natural gas in heat production
• The substitution of renewable gas for natural gas in gas supplies for end customers
• Reduction of natural gas sales volumes to end customers based on the conversion to alternative heating systems, e.g. heat pumps
• The substitution of renewable gas for natural gas in electricity production for the provision of balancing energy (network reserve)

Expansion of renewable generation capacity:

Wind power around 500 MW installed capacity until end of 2024, increase in yearly production to approximately 1.3 TWh

Photovoltaics 135 MWp installed capacity until end of 2024, increase in yearly production to approximately 115 GWh

Wind power around 770 MW installed capacity until 2030, increase in yearly production to approximately 2.0 TWh

Photovoltaics around 300 MWp installed capacity until 2030, increase in yearly production to approximately 400 GWh

CapEx / investment commitments

Capital expenditures in the EVN Group in accordance with the EU Taxonomy totalled EUR 762.8m in 2023/24. The share of the investments classified as ecologically sustainable under the EU Taxonomy Regulation (CapEx) equalled 88.8% of the total capital expenditures in the EVN Group.

In 2020, EVN issued a EUR 101m bond in the form of a private placement as part of the EVN Green Finance Framework. A green promissory note loan was issued in April 2020 and a green loan was arranged with the European Investment Bank (EIB) in June 2023 to finance various wind power projects.

Implementation and monitoring

The individual measures derived from the emission reduction goals were integrated in plans for the involved areas and Group companies as part of short, medium and long-term corporate planning. Climate change mitigation and the transition plan developed in 2023/24 represent important and integral components of EVN's corporate strategy and, consequently, are also subject to continuous monitoring and progress controls.

Transformation of generation portfolio

Key milestones for the reduction of the thermal generation portfolio and the road to a renewable energy future include:

• 2018: Significant capacity in natural gas operated power plants in Theiss and Korneuburg was decommissioned. Natural gas is now only used for electricity generation in Austria by cogeneration and combined heat and power plants (18.5 MW), by the Theiss natural gas-fired power plant (470 MW as contractually guaranteed reserve capacity to provide network support for the Austrian transmission network operator), and in Bulgaria (80 MW).
• 2019: Premature termination of hard coal-fired power plant in Dürnrohr
• 2021: Termination of electricity generation from coal with the sale of investment in the Walsum 10 hard coal-fired power plant

Renewable capacity expansion progress

EVN increased the total capacity of renewable generation plants by 85 MW to 925 MW in 2023/24. The following wind power and photovoltaic projects were completed and commissioned during the reporting year:

• Wind park in Altlichtenwarth-Grosskrut (12.4 MW)
• Wind park in Prottes (18 MW)
• Wind park in Sigless-Pöttelsdorf (repowering; 8.4 MW)
• Photovoltaic plant in Dürnrohr (23.5 MWp)
• Photovoltaic plant in Stip, North Macedonia (4.0 MWp)
• Photovoltaic plant in Probisthip, North Macedonia (11.0 MWp)
• Floating photovoltaic plant in Grafenwörth (12.2 MWp)

District heating expansion

Expansion projects were carried out at various existing plants and pipelines during the reporting year. The result was an increase of roughly 50 GWh in the demand for natural heat by customers that was met by EVN Wärme. In 2023, EVN set an important milestone through the commissioning of a biomass heating plant in Krems with a total output of up to 22 MWh.

Policies supporting the transition plan

Strategy 2030: EVN's Strategy 2030, developed during the 2019/20 financial year, reflects the commitment to make an active contribution to the reduction of greenhouse gas emissions and the containment of global warming.

EVN Climate Initiative: Launched in 2020/21, the EVN Climate Initiative includes three focal points: the concrete reduction of CO₂ emissions, expansion of renewable energy capacities, and a contribution by EVN's research and development to climate protection.

Policy for the management of greenhouse gas emissions and transition risks: Issued during 2023/24, based on commitment and activities on behalf of climate change mitigation, climate change adaptation, energy efficiency and the use of renewable energies. Defines methodology for calculating greenhouse gas emissions in line with internationally recognised standards established by the Greenhouse Gas Protocol.

EVN Group's sustainability guideline: Communicates general commitment to climate change mitigation and forms the basis for all related goals, sustainability oriented management, and active contribution to contain global warming.

Policies related to climate change mitigation and adaptation

EVN AG has established several policies related to climate change mitigation and adaptation as part of its commitment to contribute to global climate goals and the Paris Agreement.

EVN Group's Sustainability Guideline

Key content: The sustainability guideline communicates EVN's general commitment to climate change mitigation and forms the basis for all related goals, sustainability-oriented management, and active contribution to contain global warming.

Public availability: Available at www.evn.at/sustainability_guideline

Scope: Applies to the entire EVN Group.

Governance: Approved by the Executive Board and presented to the Supervisory Board.

Policy for the Management of Greenhouse Gas Emissions and Transition Risks

Key content: This policy is based on EVN's commitment and activities on behalf of climate change mitigation, climate change adaptation, energy efficiency and the use of renewable energies. It includes:

• Methodology for calculating greenhouse gas emissions in line with internationally recognised standards established by the Greenhouse Gas Protocol
• Summary of the most important climate-related impacts, risks and opportunities of business activities
• Principles of conduct and action lines including the application of the mitigation hierarchy principle which calls for the reduction or at least minimisation of impacts
• Continuous monitoring of greenhouse gas emissions
• Requirements for transparent and open communications with stakeholders
• Regular training for employees

Public availability: Available at www.evn.at/policy_E1

Scope: Binding guideline for the entire EVN Group.

Governance: Approved by the Executive Board and presented to the Supervisory Board.

Strategy 2030 and EVN Climate Initiative

Key content: The Strategy 2030 is significantly influenced by international frameworks applicable to the energy sector, including:

• Sustainable Development Goals of the United Nations
• Goals of global and European energy and climate policy (Paris Climate Agreement and European Green Deal)
• EVN Climate Initiative developed in 2021 in agreement with corporate strategy
• Five core strategies for 2030, including "Enabling a renewable energy system" which commits to making a significant contribution to meeting Austrian and European climate goals
• Development of an initial 1.5°C transition plan

Links to international standards: Aligned with:

• Sustainable Development Goals (SDGs) of the United Nations
• Paris Climate Agreement
• European Green Deal
• Science Based Targets initiative (SBTi) - commitment letter submitted in November 2024

Governance: Strategy 2030 approved by the Executive Board and Supervisory Board. The Executive Board is supported in a consultative capacity by the EVN Sustainability Advisory Board on key issues involving sustainable management in the areas of climate change mitigation and adaptation.

Monitoring: The Executive Board regularly discusses aggregated findings with the Supervisory Board. Quarterly segment steering committee meetings where Executive Board members and managers exchange information with internal experts to monitor energy sector conditions and developments.

Environmental Management Systems

Key content: EVN has operated environmental management systems on a voluntary basis since 1995, connected with a commitment to improve environmental performance.

Scope: All ISO-certified locations are subject to internal and external audits that include the preparation, implementation and monitoring of improvement programmes. EMAS-certified equipment also covered.

Monitoring: Internal and external audits conducted regularly. Annual audits for EMAS-certified equipment include evaluation and implementation of goals set in the previous financial year. Information and latest environmental metrics provided in annual environmental declarations available to the general public.

Actions and resources in relation to climate change policies

Environmental management and certifications

EVN has operated environmental management systems on a voluntary basis since 1995 that are connected with a commitment to improve environmental performance. All ISO-certified locations are subject to internal and external audits that include the preparation, implementation and monitoring of improvement programmes. Similar programmes are also developed for EMAS-certified equipment as part of annual audits.

Scope: Own operations

Transformation of generation portfolio

EVN has been working consistently on the transformation of its generation portfolio for many years, investing extensively in the expansion of renewable generation capacity.

Key milestones:

• 2018: Significant capacity in natural gas operated power plants in Theiss and Korneuburg was decommissioned. Natural gas is now only used for electricity generation in Austria by cogeneration and combined heat and power plants (18.5 MW), by the Theiss natural gas-fired power plant (470 MW as contractually guaranteed reserve capacity to provide network support for the Austrian transmission network operator), and in Bulgaria (80 MW).
• 2019: Premature termination of hard coal-fired power plant in Dürnrohr
• 2021: Termination of electricity generation from coal with the sale of investment in the Walsum 10 hard coal-fired power plant

Scope: Own operations Time horizon: Completed actions (2018-2021)

Expansion of renewable generation capacity for wind power and photovoltaics

EVN increased the total capacity of renewable generation plants by 85 MW to 925 MW in 2023/24. The following projects were completed and commissioned/acquired during the reporting year:

• Wind park in Altlichtenwarth-Grosskrut (12.4 MW)
• Wind park in Prottes (18 MW)
• Wind park in Sigless-Pöttelsdorf (repowering; 8.4 MW)
• Photovoltaic plant in Dürnrohr (23.5 MWp)
• Photovoltaic plant in Stip, North Macedonia (4.0 MWp)
• Photovoltaic plant in Probisthip, North Macedonia (11.0 MWp)
• Floating photovoltaic plant in Grafenwörth (12.2 MWp)

Targets:

• Wind power: 500 MW by end of 2024; over 600 MW by end of 2027; 770 MW by 2030 (Strategy 2030)
• Photovoltaics: Nearly 100 MW by end of 2024; over 200 MW by end of 2027; 300 MW by 2030 (Strategy 2030)
• Total installed renewable capacity as of 30 September 2024: 925 MW
• Target increase to 2030: Installed capacity to approximately 1,070 MW, with yearly production increasing to approximately 2.0 TWh (wind) and 400 GWh (photovoltaics)

Resources:

• Capital expenditures in accordance with EU Taxonomy totalled EUR 762.8m in 2023/24
• Share of investments classified as ecologically sustainable under EU Taxonomy Regulation (CapEx): 88.8% of total capital expenditures

Scope: Own operations Time horizon: Short to long-term (2024-2030) Links to targets: Supports 1.5°C transition plan and SBTi commitments

Expansion of district heating networks and renewable heat generation

EVN Wärme and its subsidiaries operate three biomass combined heat and power plants and approximately 80 biomass district heating plants with a pipeline network covering roughly 700 path kilometres. Biomass as a renewable energy carrier holds the potential for decarbonising district heating supplies in Lower Austria.

The plants and pipeline network operated by EVN Wärme have undergone continuous upgrading and expansion.

Scope: Own operations Links to targets: Supports attainment of 1.5°C transition plan

Green financing initiatives

EVN has established the EVN Green Finance Framework defining business activities for which green financing can be used:

• 2020: EUR 101m green bond issued as private placement
• April 2020: Green promissory note loan issued
• June 2023: Green loan arranged with European Investment Bank (EIB) to finance various wind power projects

All issues subject to detailed sustainability review and annual disclosure of fund use.

Business activities eligible for green financing include:

• Expansion of renewable generation (including supporting investments in electricity network infrastructure)
• Energy efficiency
• Prevention of environmental pollution
• Clean transportation
• Sustainable handling of drinking water and wastewater

Resources: EUR 101m green bond (2020); green EIB loan (2023) Scope: Own operations

Electricity product portfolio with 100% renewable certificates of origin

In 2023, 99.4% of electricity supplied to end customers in Austria and North Macedonia came from renewable sources with certificates of origin, representing an increase over the already high share of over 90% in the previous year. All certificates of origin – as well as the delivered electricity – originated entirely in Austria.

Target: EVN will only develop electricity products consistent with: renewable, CO2e-free in generation, and with 100% certificates of origin from Austria

Scope: Downstream value chain Time horizon: Ongoing

Energy efficiency measures

EVN has introduced various energy efficiency initiatives:

• Energy audits pursuant to the Energy Efficiency Act performed at regular intervals. Legally required to have energy audit every four years at the latest.
• Analysis shows potential for optimisation, especially in use of waste heat in combined heat and power plants
• Awareness creation among employees for energy-conserving behaviour
• Reduced employee travel through increased use of video conferences and webinars
• Use of e-vehicles for business trips where possible
• Customer initiatives: energy advising, bonus points for purchase of energy efficient products, energy savings tips

Scope: Own operations and downstream value chain Time horizon: Ongoing

Research and development projects

Research and development activities designed to support realisation of EVN Climate Initiative goals. All R&D activities support climate change mitigation and gradual system transformation towards climate-neutral energy generation while safeguarding supply security.

Examples:

• Batterie STABIL battery storage project
• Green Energy Lab cross-regional research initiative (supported by provincial energy providers and energy agencies)

Scope: Own operations Links to targets: Supports EVN Climate Initiative goals

Further strategic measures

Additional initiatives part of climate change mitigation focus:

• Active participation in innovation, development and research projects
• Use of alternative drive vehicles, e.g. e-cars
• Increase in share of renewable energies in EVN's product mix in all three core markets
• Construction of processing plants for production of biogas
• Support for transformation of natural gas networks to renewable gas and hydrogen
• Conversion of existing natural gas-driven electricity generation plants to renewable gas

Scope: Own operations and value chain Time horizon: Medium to long-term

Targets related to climate change mitigation and adaptation

EVN has committed to science-based CO₂e emission reduction targets validated by the Science Based Targets initiative (SBTi). The targets were initially set in 2021 aligned with the 2°C Paris Agreement goal, and were revised in 2023/24 to align with the 1.5°C goal.

Five CO₂e Reduction Goals

Base year: 2018/19 (for values); 2021/22 (for reporting) Target year: End of 2030/31 financial year (2033/34 initially)

Key Drivers and Measures

• Continued strong expansion of renewable generation capacity (wind power and photovoltaics)
• Wind power target: 770 MW installed capacity by 2030 (increase in yearly production to approximately 2.0 TWh)
  • Milestone: ~500 MW by December 2025 (1.3 TWh annually)
• Photovoltaic target: 300 MWp installed capacity by 2030 (increase in yearly production to approximately 400 GWh)
  • Milestone: ~135 MWp by end of 2024 (115 GWh annually)
• Continuous reduction of emissions from electricity network losses in South East Europe
• Expansion of district heating networks
• Substitution of renewable gas for natural gas in heat production and electricity production
• Reduction of natural gas sales volumes to end customers

Validation Status

The revised 1.5°C-aligned targets were submitted to SBTi in November 2024 via commitment letter. EVN has two years from submission to complete external scientific validation by SBTi. Detailed targets will be published once SBTi validation is completed.

Progress Metrics

Scope 1 emissions (2023/24): 792,949 tCO₂e (11.5% reduction vs. prior year: 895,598 tCO₂e)

Renewable generation capacity (as of 30 September 2024): 925 MW total installed (+10% vs. prior year)

EU Taxonomy alignment: 88.8% of investments (CapEx) in 2023/24 classified as ecologically sustainable

Energy consumption and mix

Total energy consumption (ESRS E1-5)

Total energy consumption 2023/24: 4,898,937 MWh
Total energy consumption 2022/23: 5,188,644 MWh

Nuclear energy: Not disclosed.

Scope and methodology:
The perimeter includes fully consolidated companies and companies over which the EVN Group exercises operational control (aligned with CSRD requirements). Energy consumption covers all operational activities including generation plants, network operations, and company buildings.

The total consumption decreased by 5.6% year-on-year, primarily driven by reduced use of the Theiss natural gas power plant (reserve capacity). The renewable share increased from 45.7% to 51.8%, reflecting EVN's energy transition strategy.

Energy intensity: Not disclosed in the excerpts provided.

Gross Scopes 1, 2, 3 and Total GHG emissions

Scope 1 – Direct GHG gross emissions

Sub-breakdown of Scope 1 sources:

• Use of fossil primary energy carriers and biomass to generate electricity and heat by EVN
• Use of fossil primary energy carriers to heat company buildings
• Use of fossil primary energy carriers for transport (fuel for EVN's motor vehicles)
• Operation and maintenance of EVN's natural gas networks
• Fossil and biogenic share from operation of the thermal waste utilisation plant in Dürnrohr

Methodology note: Direct greenhouse gas emissions (Scope 1) are calculated based on the factors prescribed by the EU Emissions Trading Directive for the individual countries. CO₂e emissions are calculated with the standard heating value and standard emission factors from the national greenhouse gas inventories. Biogenic CO₂ emissions are calculated separately according to a similar procedure but are not included in Scope 1 emissions as required by the GHG Protocol methodology. In line with the CSRD approach, the perimeter includes not only fully consolidated companies but also companies over which the EVN Group exercises operational control.

Scope 2 – Indirect GHG emissions from purchased energy

Scope 2 sources:

• Network losses in EVN's electricity network
• Use of purchased fossil secondary energy carriers (for own energy consumption of electricity, heat and cooling)

Methodology note: In accordance with the methodology prescribed by the GHG Protocol, Scope 2 emissions are reported according to two approaches – location-based and market-based.

For North Macedonia and Bulgaria, country-specific emission factors based on national energy statistics and the resulting energy mix were used beginning with 2023/24 (retroactively for 2022/23 and 2021/22). The market-based approach for own energy consumption is determined primarily by the respective supplier mix. If the mix is not known, CO₂e factors from the Association of Issuing Bodies (AIB) are used in Austria, Bulgaria, Germany, Croatia, Slovenia and Cyprus. ecoinvent factors are used for the location-based approach in these countries. In North Macedonia, country-specific emission factors are used for both approaches due to the lack of market-based data. Location-based factors from the Electricity Map are used for both approaches in Russia.

Scope 3 – Other indirect GHG emissions

Scope 3 sources:

• Electricity sales to end customers and the share of CO₂e emissions in the supply chain (upstream) which result from the primary energy carriers used by EVN (Category 3.3)
• Natural gas sales to end customers (Category 3.11)
• Investments (Category 3.15)

Methodology note: In line with the methodology prescribed by the GHG Protocol, EVN reports Scope 3 emissions according to the most commonly applied criterion – the share of the respective category of total emissions. EVN reports only the categories of Scope 3 emissions that represent more than 5% of total Scope 3 emissions.

Calculation methods by category:

• Category 3.3 (Electricity sales volumes to end customers based on purchased electricity): Reflects the methodology used to determine emissions from network losses under Scope 2.
• Category 3.3 (CO₂e emissions in upstream value chain through consumption of primary energy carriers): ecoinvent factors are used for all combustibles except for fuels. Factors for fuels are based on data provided by the Austrian Environmental Agency.
• Category 3.11 (Natural gas sales to end customers): CO₂e factors from the national greenhouse gas inventory issued by the Austrian Federal Ministry for Climate Action, Environment, Energy, Mobility, Innovation and Technology.
• Category 3.15 (Investments): Data (Scope 1 and 2 emissions as a proportion of the investment held) from the involved companies (Verbund, RAG, Zagrebačke otpadne vode, Burgenland Holding, Fernwärme Mariazellerland, Bioenergie Steyr, Fernwärme St. Pölten, EVN KG, EnergieAllianz) are transmitted to EVN. Reporting includes the proportional share of Scope 1 and 2 emissions from RAG as well as the respective investment-based share of Scope 3 emissions.

Travel by EVN employees (Category 3.6) was excluded from reporting beginning with 2023/24 (retroactively for 2022/23 and 2021/22) because the related amounts are immaterial. Detailed calculations were carried out for categories 3.1 and 3.2, but both categories were designated as immaterial. Emissions from EnergieAllianz are not yet included in reporting for 2023/24.

Total GHG emissions

GHG intensity

Reconciliation to financial reporting:

Regulated emissions (EU ETS)

The CO₂e emissions from ten EVN plants for electricity and heat generation are covered by the EU Emissions Trading System due to their capacity. In accordance with the EU Emissions Trading System, EVN required 239,485 CO₂ emission certificates in the 2023 calendar year – whereby 34.5% were allocated free of charge. All required emission certificates were purchased on the wholesale market.

Policies related to pollution

EVN AG discloses two policies related to pollution under ESRS E2-1.

Sustainability guideline

Key content and principles:

• Anchors EVN's general commitment to management based on sustainability principles
• Goal to minimise negative impacts on air, water and soil during business activities
• Commitment to use natural resources responsibly
• Environmentally compatible waste management
• Preservation of natural habitats for flora and fauna in areas surrounding plants and projects
• Production and distribution of energy with respect for the landscape through local network cabling and route optimisation
• Plants built according to state-of-the-art environmental technologies
• Modernisation of existing plants and new construction at previously used sites
• Use of high-tech systems to guarantee compliance with all legal regulations and official requirements
• Commitment to continuous improvement of environmental performance

Scope:

• Binding for the entire EVN Group

Governance:

• Approved by the Executive Board
• Presented to the Supervisory Board

Public availability:

• Available on EVN's website at www.evn.at/sustainability-guideline

Policy to prevent and reduce pollution in the EVN Group

Key content and principles:

• Based on EVN's commitment and activities to protect and prevent negative impacts on the environment
• Serves as a binding guideline to identify, assess and manage material environmental impacts, risks and opportunities related to air, water and soil
• Summarises material impacts, risks and opportunities of business activities in connection with potential environmental pollution
• Defines regulations and guidelines for identification and recording of relevant pollutants
• Guiding principles of conduct:
  • Continuous improvements to reduce environmental impacts
  • Continuous monitoring and management of emissions
  • Application of the mitigation hierarchy principle to prevent or optimally minimise emissions
  • Preventative measures

Scope:

• Binding for the entire EVN Group
• Applies to all business activities

Governance:

• Issued by EVN in 2023/24
• Approved by the Executive Board
• Presented to the Supervisory Board

Public availability:

• Available on EVN's website at www.evn.at/policy_E2

Monitoring implementation:

• Impacts of plants on the environment examined through regular measurements and collection of evidence in air and water
• Annual ABC analysis of direct and indirect environmental impacts of power plants covering: air, water, wastewater, waste, soil, land usage, resource and energy consumption, noise, vibrations, radioactivity and biodiversity
• Internal and external audits at all ISO-certified locations
• Annual audits for EMAS-certified equipment
• Preparation, implementation and monitoring of improvement programmes

Actions and resources related to pollution

ABC Analysis

EVN analyses and evaluates the direct and indirect environmental impacts of power plants annually as part of an ABC analysis covering:

• Air, water, wastewater, waste, soil, land usage
• Resource and energy consumption
• Noise, vibrations, radioactivity and biodiversity

Scope: Own operations (power plants)

Purpose: Examines environmental impact under normal operations and disruptions, identifies opportunities for improvement. Through compliance with regulations and related measures, EVN manages and works to minimise or continuously reduce negative impacts.

The most important direct environmental impacts arise from air pollutants: NOₓ, dust, CO and SO₂.

Air Emission Reduction Measures

Technical measures to minimise influence of plants on the environment through air emissions include:

• Use of modern burners and efficient flue gas cleaning equipment
• Revitalisation and replacement of existing boilers and e-filters
• Conversion to low-NOₓ burners

Scope: Own operations (thermal energy generation plants)

Upgrading of SNCR Plant (Selective Non-Catalytic Reduction)

Injection of reducing agents like ammonia or urea into hot waste gas flows through SNCR denitrification process to convert NOₓ emissions into nitrogen and water.

Scope: Own operations

Noise Reduction Measures

Effective technical measures to prevent and reduce noise from mechanical processes:

• Use of low-noise machines and aggregates
• Acoustic insulation

Scope: Own operations

Expansion of Power2Heat

Power2Heat equipment links electricity and district heating networks (similar to electric warm water boiler) to intelligently use surplus energy in a climate-friendly manner.

Scope: Own operations (district heating networks)

Time horizon: Long term

Expected outcome: Reduce the use of fossil fuels for district heat generation over the long term

Environmental Impact Monitoring

EVN engages certified institutions to measure impacts at three locations through:

• Heavy metal analyses using standardised process with Welsh ryegrass (Europe-wide)
• Identification of burden caused by inorganic materials (lead, cadmium, zinc)
• Analysis of polycyclic aromatic hydrocarbons, PCB and HCB

Scope: Own operations (three locations)

Environmental Management and Certifications

EVN has operated environmental management systems on a voluntary basis since 1995, committed to improving environmental performance.

Key activities:

• ISO-certified locations subject to internal and external audits
• Preparation, implementation and monitoring of improvement programmes
• EMAS-certified equipment with annual audits
• Annual environmental declarations publicly available

Resources - Non-financial: Internal audit teams, external certification bodies

Policy Development

EVN issued a Group-wide policy to prevent and reduce pollution in 2023/24, serving as binding guideline for efforts to identify, assess and manage material environmental impacts, risks and opportunities related to air, water and soil.

Links to targets: Development of reduction goals for air emissions, especially nitrogen oxide, planned starting in 2024/25 (see E2-3).

Targets related to pollution

Reduction of air pollutants

Based on a regular survey of indicators and the calculation of threshold values under E-PRTR, EVN has identified air emissions, in particular, as an area with a need for action. Air emissions arise as part of own business activities – the generation of energy and thermal waste and sewage sludge utilisation – and also from the use of energy in the supply chain.

Planned target development:

• EVN plans to develop further reduction goals for air emissions, especially nitrogen oxide, starting in 2024/25.

Current status:

• No quantified targets with specific target values, baseline years, or target years are currently disclosed.
• The company is in the planning phase for target setting.

Scope:

• Own operations: energy generation, thermal waste and sewage sludge utilisation
• Value chain: use of energy in supply chain

Pollution of air, water and soil

E2-4 Significant emissions by the EVN Group

In accordance with CSRD requirements, emissions are also included from companies over which the EVN Group exercises operational control. The perimeter of application for the calculation of emissions includes fully consolidated companies and companies over which the EVN Group exercises operational control.

Emissions of air pollutants

Notes:

• Emissions from the plants that exceed the release thresholds specified in Annex II of the E-PRTR Regulation are reported separately
• Prior year values (2022/23) were adjusted to reflect the requirements for the scope of consolidation in 2023/24
• Air emissions arise from energy generation and thermal waste and sewage sludge utilisation as well as from the use of energy in the supply chain
• The most important direct environmental impacts of thermal energy generation plants arise from air pollutants NOₓ, dust, CO and SO₂
• Nitrogen oxide (NOₓ) emissions exceed the E-PRTR prescribed threshold of 100,000 kg per year in thermal plants and waste utilisation plants

Emissions to water and soil

No specific quantified emissions to water or soil are reported in the disclosure. The company notes that water emissions are monitored through regular measurements and collection of evidence, and biomonitoring with Welsh ryegrass is used to identify impacts from emissions including heavy metals (lead, cadmium, zinc) and polycyclic aromatic hydrocarbons, PCB and HCB, but no quantified data is provided.

Regulatory context

Emissions are evaluated in accordance with the European Pollutant Release and Transfer Register (E-PRTR), which establishes relevant pollutant quantities and thresholds for the energy sector. If defined thresholds are exceeded, related emissions are included in internal reporting followed by identification of causes and evaluation of measures.

Policies related to water and marine resources

EVN AG explicitly states that marine resources are generally identified as not material due to the geographic locations of the EVN Group. All E3-1 information therefore relates solely to water resources.

The company discloses three specific policies and strategic documents governing water resources:

Strategy 2030

• Scope: Defines drinking water supplies in Lower Austria as a material focal point, covering development of new drinking water sources, construction of natural filter plants, and expansion of infrastructure and cross-regional pipeline networks
• Approval and oversight: Developed during 2019/20 financial year in close coordination with the Supervisory Board
• Key content: Focus on providing customers with drinking water in sufficient quantities and constant quality; development of natural filter plants to reduce water hardness; expansion of cross-regional pipeline networks
• Public availability: Referenced on page 24ff of the Full Report

Sustainability guideline of the EVN Group

• Scope: Entire EVN Group
• Approval and oversight: Approved by the Executive Board and submitted to the Supervisory Board
• Key content: Anchors general commitment to sustainability-oriented management and sustainable, climate-neutral water management; focus on protection of water quality, maintenance of equilibrium between water supply and withdrawal, prevention of pipeline losses, and return of treated wastewater into the water cycle; includes additional analyses for EVN locations in water stress areas to prevent negative impacts on regional water balance
• Public availability: Available at www.evn.at/sustainability-guideline
• Links to standards: Not explicitly disclosed
• Monitoring: Locations in water stress areas undergo additional analyses that serve as basis for measures

Policy on sustainable water management in the EVN Group

• Scope: Group-wide policy for the entire EVN Group
• Approval and oversight: Approved by the Executive Board and submitted to the Supervisory Board
• Key content: Defines principles and action lines to monitor, control and reduce water consumption to preserve the natural water cycle; commitment to continuous innovation and improvement of environmental practices; encompasses definition of concrete goals and related metrics with regular monitoring and audits; includes principles of conduct related to water consumption, supply security for drinking water, wastewater treatment, water purification and energy generation from hydropower; commitment to transparent communications with stakeholders and creating awareness among employees; includes prevention and reduction of contamination of water resources
• Public availability: Available at www.evn.at/policy_E3
• Links to standards: Not explicitly disclosed
• Monitoring: Continuous water management includes regular monitoring and audits; definition of concrete goals and related metrics

The company also references the policy on the prevention and reduction of environmental pollution (available at www.evn.at/policy_E2), which appears to cover water-related contamination prevention.

Actions and resources related to water

EVN discloses several actions related to water resource management in its own operations (drinking water supply business) and downstream activities (wastewater treatment). The actions are primarily focused on drinking water supply infrastructure in Lower Austria.

Policy framework

Policy on sustainable water management in the EVN Group

• Issued during the 2023/24 financial year
• Defines principles and action lines to monitor, control and reduce water consumption
• Encompasses definition of concrete goals and related metrics with regular monitoring and audits
• Covers water consumption, supply security for drinking water, wastewater treatment, water purification and energy generation from hydropower
• Commits to transparent stakeholder communications and employee awareness
• Links to Strategy 2030 which defines drinking water supplies in Lower Austria as a material focal point

Own operations - drinking water supply

Restoration of drinking water supply pipelines

• Scope: Own operations (local network areas and cross-regional supply pipelines)
• Regular measurements to identify volume losses; leaks located and repaired
• Monthly water balance prepared for cross-regional transport pipeline network comparing feed-in vs. output volumes
• Success verified by subsequent measurements
• Links to target: keep water loss in cross-regional network at low single-digit percentage range

Construction of new cross-regional transportation pipelines

• Scope: Own operations (Lower Austria)
• Major project: 60 km cross-regional transport pipeline from Krems to Zwettl
  • First section commissioned in 2022
  • Second section to be completed spring 2025
  • Third section construction started summer 2024
  • Entire pipeline expected to be completed by end of 2025
• Purpose: balance regional water resource availability, increase supply security
• Time horizon: Target to construct 60 km of cross-regional transport pipelines from 2024 to 2030
• Links to target: long-term guarantee of drinking water supply security

Expansion of drinking water storage possibilities

• Scope: Own operations
• Plans to expand storage in existing elevated tanks or construct additional elevated tanks
• Time horizon: Until 2030 increase storage by 5% compared to 2024; until 2035 increase by 10%
• Links to target: manage consumption peaks and ensure supply security

Expansion of existing and development of new well fields

• Scope: Own operations
• Preparing for population growth and climate change impacts
• Time horizon: Until 2035 expand four existing well fields and develop one further well field
• Purpose: increase demand capacity for water
• Implementation dependent on official permits

Construction of natural filter plants

• Scope: Own operations (EVN Wasser supply area)
• Purpose: Improve quality by reducing water hardness through natural means without chemicals
• Seventh plant commissioned April 2024 in Obersulz
• Time horizon: Until 2030, construction of two further plants scheduled
• Construction commenced in Reisenberg
• Links to quality improvement objectives

Revitalisation of the Petronell Au

• Scope: Own operations / ecosystem partnership
• Partners: EVN Wasser, Donau-Auen National Park, viadonau
• Purpose: Ecological and water management improvements; support expansion of local well field
• Increase ancillary groundwater flows through linkage of water routes
• Improve regional ecosystem and sustainable long-term protection of water supplies for Industrieviertel and Weinviertel regions

Wastewater management

Wastewater treatment in own operations

• Scope: Own operations
• All material household wastewater cleaned in municipal treatment plants before release to surface water
• Wastewater tested for quality in accordance with legal requirements
• Direct discharge subject to legal regulations and controlled by water legislation
• Standardised measurements at every discharge point
• Water profile in discharge zone tested per EU Water Framework Directive (temperature, pH, nitrogen, copper, zinc parameters)
• Contracts with treatment plant operators based on Indirect Discharge Regulation for non-household wastewater
• Regular analysis by accredited testing laboratories

Improvement of water quality through construction of wastewater treatment plants

• Scope: Downstream value chain / international project business
• Managed by WTE in Kuwait, Cyprus and Bahrain (water stress areas)
• Process water used in part for irrigation in agricultural operations, conserving groundwater resources
• Sewage sludge from wastewater treatment is utilised
• Note: EVN evaluating further strategic options for this business area as focus shifts to core energy business

Resources allocated

No specific capex or opex figures are disclosed for individual water-related actions. The disclosure notes that implementation of measures related to targets is dependent on receipt of necessary official permits, but does not quantify financial or human resources allocated.

Targets related to water

Based on the analysis of our material impacts, risks and opportunities in connection with water resource, the EVN Group's related targets focus primarily on the key area of drinking water supplies for our customers. The areas in which we supply drinking water are not water risk areas and do not lie in regions with high water stress. Consequently, these targets do not represent legal requirements but were defined by EVN.

Target 1: Ensuring constantly low water loss in the cross-regional drinking water supply network

• Target metric: Water loss in the cross-regional drinking water supply network
• Target value: Low single-digit percentage range (constantly)
• Target type: Absolute
• Scope: Own operations (cross-regional drinking water supply network)
• Basis: Internal target (not science-based or externally validated)
• Implementation: Regular detection of leaks and appropriate repairs together with monitoring and controls through continuous measurements

Target 2: Long-term guarantee of drinking water supply security for customers

• Target metric: Storage possibilities for drinking water
• Target value:
  • Increase by 5% by 2030 (compared to 2024 baseline)
  • Increase by 10% by 2035 (compared to 2024 baseline)
• Baseline year: 2024
• Target years: 2030 and 2035
• Target type: Absolute
• Scope: Own operations (drinking water supply business)
• Basis: Internal target (not science-based or externally validated)

Additional planned measures by 2035:

• Expand four existing well fields and develop one further well field
• Expand 60 km of cross-regional transport pipelines from 2024 to 2030
• Further expansion of linkage of water routes

Note: The implementation of the related measures on which these targets are based is dependent on the receipt of the necessary official permits.

Water consumption

Water withdrawals and discharges

Note: All of the water withdrawn and released is fresh water. Also includes drinking water supplies by EVN Wasser. Due to adjustment of methodology no report of prior year's values.

Total water consumption

Water intensity

Methodology note: The calculation methodologies used to record water consumption were revised during the 2023/24 financial year in connection with preparations for CSRD reporting requirements. Individual water flows could be recorded in greater detail than in previous years. The retrospective adjustment of prior year values is not possible due to the change in methodology and, as a result, comparative values are not provided for the 2022/23 financial year. A direct comparison with prior year values is also not meaningful due to the adjustment of the scope of consolidation to reflect CSRD requirements.

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

Use of frameworks

The company references the LEAP approach developed by the Taskforce on Nature-related Financial Disclosures (TNFD). The TNFD is an initiative which supports companies in better understanding and reporting on risks and opportunities connected with nature and natural resources. LEAP stands for "Localise, Evaluate, Analyse and Plan".

Mitigation hierarchy principle

The company acknowledges the mitigation hierarchy principle as a structured approach that helps companies to systematically reduce their environmental impacts and their ecological footprint. It consists of four steps: avoid, minimise, restore and offset. The hierarchy helps companies to guard against climate risks and to make their business models fit for the future.

Policies related to biodiversity and ecosystems

EVN AG has disclosed two key policies related to biodiversity and ecosystems:

Sustainability guideline of the EVN Group

Key content and principles:

• Anchors the general commitment to sustainably oriented management and to the preservation, restoration and careful, sustainable use of biodiversity to protect ecosystems for humans and animals
• Gives priority to land recycling for new construction
• Commits to implementing numerous initiatives and programmes for the protection of habitats and the preservation of endangered species
• Includes close cooperation with external experts from NGOs and public authorities to integrate requirements regarding biodiversity and ecosystems in the early design phase of projects

Scope:

• Binding for the entire EVN Group

Governance:

• Approved by the Executive Board
• Submitted to the Supervisory Board

Public availability:

• Available at www.evn.at/sustainability-guideline

Policy on the interaction with biodiversity and ecosystems in the EVN Group

This Group-wide policy was issued in 2023/24.

Key content and principles:

• Covers climate change, environmental pollution and the use of land and freshwater as influencing factors
• Addresses the state of species and ecosystems
• Includes principles of conduct for the mandatory inclusion of biodiversity and the protection of ecosystems in all internal decisions over projects
• Requires close cooperation with the responsible authorities
• Mandates procurement of biomass from sustainable forestry operations
• Marks the mandatory implementation of active biodiversity management throughout the EVN Group
• Includes the definition of goals and metrics for control and monitoring
• Defines priority action lines for the protection of ecosystems and biodiversity
• Sets requirements for the planning, construction and operation of plants
• Applies particularly to activities with material dependencies or effects on biodiversity, such as renewable energy generation, expansion of network infrastructure and construction works
• Covers active engagement with stakeholders as well as open communications and transparent reporting

Scope:

• Binding for the entire EVN Group
• Applies in particular to: renewable energy generation, expansion of network infrastructure and construction works

Governance:

• Approved by the Executive Board
• Submitted to the Supervisory Board

Public availability:

• Available at www.evn.at/policy_E4

Actions and resources related to biodiversity

EVN discloses measures to prevent or minimise potential negative impacts on biodiversity-sensitive areas at material locations. Actions are organized by business activity.

Electricity generation from hydropower

Construction of fish passes and adjustment of residual water volumes

• Scope: Own operations (Austria)
• What: Creation of passable watercourses through construction of fish passes at specific river sections; ensuring sufficient residual water at diverted reaches
• Driver: Requirements from Austrian National Water Management Plan
• Time horizon: By 2027 (medium-term)
• Specific actions: Install 4 new fish passes at small hydropower plants operated by EVN Naturkraft; upgrade fish passes at 3 other locations to meet latest technical standards
• Status: Realisation dependent on official permits

Reservoir monitoring at storage power plants

• What: Extensive annual biological, chemical and limnological analyses of EVN Naturkraft reservoirs
• Monitoring parameters: pH value, water temperature, blue-green algae, oxygen saturation

Participation in research projects

• Examples: sediment research and management, fish protection and fish bypasses, resettlement of graylings in central Kamp region

Electricity generation from wind power

Creation of compensation areas

• Scope: 20 wind parks (in operation or under construction)
• What: Creation of wasteland, wetland or deadwood areas totalling over 200 hectares to compensate for habitat loss
• Target species: Various birds, bats and gophers
• Location: Regionally connected with but appropriately distant from respective wind park
• Time horizon: Throughout entire lifecycle of wind parks
• Monitoring: On-site inspections by external biologists and ornithologists at officially required intervals; results recorded in monitoring reports

Deactivation of plants at predefined environmental conditions

• What: Automatic shutdown of certain wind turbines to minimise collision risk for bats
• Conditions: At predefined wind speeds and air temperatures, on certain days and times

Electricity generation from photovoltaics

Semi-natural design of photovoltaic open area plants

• What: Implementation of measures during construction and operation to minimise biodiversity impacts
• Examples: Special fences for small game, ecological construction supervision, management through grazing or mowing, waiver of pesticides and fertilizers, officially required planting with domestic seeds, creation of refuge and living areas for small mammals and reptiles through stone piles on border areas

Transmission and distribution of electrical energy

Participation in the "Life Eurokite" project (LIFE18NAT/AT/000048)

• What: Contribution to EU species action plan implementation through quantification and control of anthropogenic mortality in birds of prey
• Objective: Identify problem zones for collision with overhead power lines
• Application: Findings included in planning and realisation of risky overhead power line cabling projects

"Life safe grid for Burgas" project (LIFE20NAT/BG/001234)

• Scope: EVN as project coordinator
• Location: Wetlands in region of Burgas lakes, Bulgaria
• What: Development of measures to protect birds
• Activities:
  • Collection of data on existing overhead power lines
  • Field study on dangers of electric shocks and power line collisions for birds
  • Cabling projects for overhead power lines
  • Securing procedures for power poles
  • Installation of measures to divert birds in flight
• Co-benefits: Reduce network disruptions and increase supply security for local population
• Time horizon: Currently in operation, runs to 2026

Participation in the "Bearded Vulture Life" project

• Location: Bulgaria and the Balkans
• What: Resettlement of bearded vultures and black vultures
• Measures: Improve nesting conditions and availability of food sources
• EVN contribution: Protection of exposed power poles to reduce fatalities through electric shocks

Initiative to preserve the white stork population in Bulgaria and North Macedonia

• Started: 2009
• What: Installation of metal nest platforms at adequate distance to electrical infrastructure to prevent white storks from nesting on low-voltage power poles
• Objective: Prevent accidents and blackouts, reduce fire hazards for nests
• Monitoring: Regular biomonitoring on nest use and annual reporting to responsible authority

Links to targets (E4-4)

The actions link to the following targets:

• Improvement of ecological passage for existing hydropower plants: Install 4 new fish passes and upgrade 3 fish passes to latest technical standards (by 2027, subject to official permits)
• Improved protection against overhead power lines for birds: Secure 271 km of overhead power lines and install 2,000 bird diversion devices in Austria and Bulgaria by 2030

Targets related to biodiversity and ecosystems

Target 1: Fish passage improvement at hydropower plants

What is being targeted: Improvement of ecological passage for existing hydropower plants

Target metric: Construction and adjustment of fish passes at weirs

Quantified target value:

• Equip 4 weirs with new fish passes
• Upgrade fish passes at 3 other locations to meet latest technical standards

Target year: Not disclosed

Baseline year and value: Not disclosed

Scope: Austria (own operations at storage power plants)

Type: Absolute

Validation: Internal (aligned with National Water Management Plan requirements)

Progress to date: Realisation dependent on receipt of necessary official permits

---

Target 2: Bird protection for overhead power lines

What is being targeted: Improved protection against overhead power lines for birds in biodiversity-sensitive areas

Target metric:

• Secured overhead power lines (km)
• Bird diversion devices installed (units)

Quantified target value:

• Secure 271 km of overhead power lines
• Install 2,000 bird diversion devices

Target year: 2030

Baseline year and value: Not disclosed

Scope: Austria and Bulgaria (own operations)

Type: Absolute

Validation: Internal

Progress in 2023/24:

• Secured over 100 km of overhead power lines
• Installed 440 bird diversion devices

Impact metrics related to biodiversity and ecosystems change

Operations in protected areas

The initial analysis in 2023/24 showed that the EVN Group had over 60 plants in protected areas with potential negative impacts on these areas. Further analyses of locations near protected areas and the size of these areas are currently in progress.

Biodiversity and ecosystems by business activity

Restoration and compensation metrics

Wind power compensation areas: For 20 wind parks (in operation or under construction), various types of wasteland, wetland or deadwood areas totalling over 200 hectares were created to serve as compensation for the loss of habitats.

Bird protection measures (overhead power lines): In 2023/24, EVN secured over 100 km of overhead power lines and installed 440 bird diversion devices.

Targets

Fish pass construction: Four new fish passes to be installed at small hydropower plants by 2027, with three existing fish passes to be upgraded to meet latest technical standards.

Bird protection target (to 2030): Plans to secure 271 km of overhead power lines and install 2,000 bird diversion devices in Austria and Bulgaria.

Policies related to resource use and circular economy

EVN AG's commitment to the responsible and sustainable use of resources and to a circular economy is included in all important documents issued by the EVN Group. These documents define the company's claim and Group-wide binding policies on these subjects.

EVN Code of Conduct

• Key content/principles: Anchors EVN's claim to minimise the use of resources as best as possible and to maximise their efficient use. The company manages material and supply flows to give priority to the reuse, recycling or other usage of items.
• Scope: EVN Group-wide
• Public availability: Available to the public on the EVN website

EVN sustainability guideline

• Key content/principles: Includes the commitment to minimise the use of resources as best as possible and to maximise their efficient use. The company manages material and supply flows to give priority to the reuse, recycling or other usage of items. EVN is also optimising its waste management system towards alignment with the circular economy. Environmental aspects explicitly include the responsible use of resources and environmentally compatible waste management.
• Scope: Binding document for the entire EVN Group
• Approval and oversight: Approved by the Executive Board and submitted to the Supervisory Board
• Public availability: Available to the public on the EVN website

Policy for the management of greenhouse gas emissions and transition risks

• Scope: Binding document for the entire EVN Group
• Approval and oversight: Approved by the Executive Board and submitted to the Supervisory Board
• Public availability: Available to the public on the EVN website

Actions and resources related to circular economy

Application of circular economy-related business practices

Description: EVN recycles products and components internally, as far as technically possible and economically reasonable. Refurbishment processes have been defined for certain product groups, including:

• Electricity, natural gas, heat and water meters
• Distribution transformers
• Modems

Scope: Own operations

Time horizon: Not specified

Resources allocated: Not quantified

Expected outcomes: Maximise efficient use of resources and give priority to reuse, recycling or other usage of items

Link to policy: EVN Code of Conduct and EVN sustainability guideline (commitment to minimise resource use and maximise efficient use)

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Thermal sewage sludge utilisation plants (mono-incineration)

Description: EVN operates and constructs thermal sewage sludge utilisation plants that support the recovery of phosphorus from incineration ash. This process helps retain scarce raw materials in the resource cycle and eliminates organic and inorganic pollutants from the water cycle through high-temperature oxidation.

Scope: Own operations (wastewater treatment)

Time horizon: Plants in operation and under construction (specific timeline not disclosed)

Resources allocated: Not quantified

Expected outcomes:

• Recovery of phosphorus from incineration ash
• Retention of scarce raw materials in resource cycle
• Elimination of organic and inorganic pollutants from water cycle through oxidation
• Permanent removal of volatile combustion products via flue gas cleaning

Link to policy: EVN sustainability guideline (optimising waste management system towards alignment with circular economy)

---

Optimisation of waste management in agreement with the waste hierarchy

Description: EVN's tenders for disposal of biomass ash provide incentives for disposal companies to exhaust available utilisation options as far as possible, with the goal to utilise biomass ash as completely as possible (as permitted by ash quality).

Scope: Own operations (energy generation - biomass)

Time horizon: Not specified

Resources allocated: Not quantified

Expected outcomes: Complete utilisation of biomass ash where quality permits

Link to policy: Waste management system optimisation towards circular economy alignment

E5-4 Resource inflows

EVN's business activities as a whole and, above all, the investment focal points on network infrastructure, renewable generation and drinking water supplies require intensive cooperation with construction firms, plant, pipeline and cable line construction companies as well as suppliers of electro-technical equipment and components, pipes, transmission and cable lines, meters, hardware, software and work clothing.

These resource inflows can be allocated to the following areas:

• Renewable energy technologies: wind power plants, hydropower plants, photovoltaics, biomass plants
• Thermal energy generation plants: all plants/plant components, materials and supplies required for the operation of existing equipment and for their new construction
• Energy carriers: natural gas, heating oil, fuels, biomass, waste
• Network infrastructure: all plants and equipment required for the operation of electricity, natural gas, heat, internet and telecommunications networks including, for example, cables, pipes, electrical and electronic equipment, materials and supplies
• Drinking water supplies and wastewater disposal: all plants and equipment, materials and supplies required for the operation of existing drinking water preparation and wastewater treatment plants and for the new construction of such plants

Critical raw materials and rare earths are found, above all, in wind power plants, photovoltaics, information and communication technology products and network infrastructure. Most of these products are delivered in packaging materials made of plastics, cardboard or wood.

Use of materials and other supplies – used in energy generation, drinking water preparation, wastewater treatment, waste utilisation plants

¹ The materials and supplies used were calculated on the basis of procurement and inventory amounts.

² Adjustment of the values from 2022/23 to reflect the scope of consolidation in 2023/24.

Waste

Hazardous Waste

EVN reported 18,425 tonnes of hazardous waste in 2023/24, compared to 16,612 tonnes in the previous year (an increase of 10.9%).

Waste from Thermal Waste Utilisation

The thermal waste utilisation plant in Dürnrohr processes approximately 550,000 tonnes of waste annually. The recovered materials include:

These materials are recycled as secondary raw materials.

Notes on Reporting

Due to a change in calculation methodology, the hazardous waste value for 2022/23 was adjusted. No comparable value is available for 2020/21. In line with CSRD requirements, emissions from companies over which EVN exercises operational control are included in reporting.

Policies related to own workforce

EVN has established multiple policies governing its own workforce in accordance with international frameworks including the United Nations Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the OECD Guidelines for Multinational Enterprises.

EVN Code of Conduct

Scope: Binding for the entire EVN Group, applicable in all countries where EVN is active.

Key principles:

• Compliance with all relevant legal regulations and standards
• Equal treatment of all employees regardless of gender, age, ethnic or social origin, nationality, skin colour, sexual orientation, religion, ideology, or physical/mental disabilities
• Explicit rejection of discrimination in hiring, training, personal development, employment conditions, and compensation
• Commitment to fair and sustainable economic practices
• Transparency and openness to dialogue on corporate responsibility

Links to standards: Aligned with UN Guiding Principles on Business and Human Rights, ILO Declaration on Fundamental Principles and Rights at Work, OECD Guidelines for Multinational Enterprises

Public availability: www.evn.at/code-of-conduct

EVN Human Rights Policy

Scope: Applicable throughout the EVN Group

Key principles:

• Commitment to respect and uphold human rights
• Prohibition of forced labour, human trafficking, and modern slavery
• Prohibition of child labour
• Equal treatment independent of gender, age, ethnic or social origin, sexual orientation, religion, ideology, or disabilities

Governance: Human rights officer appointed and installed in the corporate compliance management department (2022)

Links to standards: Based on UN Guiding Principles on Business and Human Rights, ILO conventions, OECD Guidelines for Multinational Enterprises

Public availability: www.evn.at/human-rights-policy

Monitoring: Annual risk inventory includes risks related to non-compliance with human rights; participation in Business and Human Rights Accelerator of UN Global Compact (2023/24)

Group Policy on Employees

Scope: Group-wide policy covering all employees

Key principles:

• Defines principles and procedures for assessment and management of material impacts, risks, and opportunities on employees
• Compensation independent of gender, based on responsibilities and qualifications
• Fair and equitable remuneration principles

Public availability: www.evn.at/policy_S1

EVN Sustainability Guideline

Scope: Group-wide, applicable to all EVN operations

Key principles:

• Minimization of resource use
• Maximization of efficient use of resources
• Priority to reuse, recycling, or other usage of materials

Public availability: www.evn.at/sustainability-guideline

EVN Managerial Mission Statement

Scope: Applicable to all managers throughout the EVN Group

Key principles:

• Defines management culture and expectations
• Includes focus on self-competence and EVN managerial values
• Covers labour law, occupational safety, and worker protection

EVN Values

Scope: Applicable to entire EVN Group

Three core values:

• Ensure
• Encourage
• Enable

Public availability: www.evn.at/own-workforce

Manual on Minimum Social Standards

Scope: Group-wide applicability

Key principles:

• Defines minimum social protection standards
• Ensures compliance with human rights
• Aligned with Universal Declaration of Human Rights

Policy for Prevention of Workplace Accidents

Scope: All EVN Group operations

Key principles:

• Safe and healthy working conditions
• Measures to prevent accidents, injuries, and work-related illnesses
• Protection of employees' well-being

Links to standards: Aligned with ISO 45001 (several subsidiaries in Bulgaria and Germany are certified)

Group Policy on Occupational Safety

Scope: Binding for all corporate units in the EVN Group

Key content:

• Defines basis for exacting standards in worker protection
• Extensive training requirements
• Regular evaluations
• High-quality equipment provision
• Worker protection exceeding legal requirements

Related documents:

• EVN internal directives and guidelines for identification of safety risks
• EVN internal directives for definition of countermeasures

Monitoring: Systematic recording of risks, incidents, near-miss accidents, and potentially dangerous situations based on ISO 45001 requirements

EVN Integrity Clause

Scope: Fixed component of every procurement contract, applies to suppliers and business partners

Key principles:

• Ensures compliance with human rights in the value chain
• Requires safe and healthy working conditions for suppliers' employees
• Respect for labour rights according to national laws, international labour standards, and human rights agreements
• Prevention of forced labour, child labour, discrimination, and harassment

Public availability: www.evn.at/integrity-clause

Additional Governance and Oversight

Executive Board responsibility: CEO is responsible for the Group function "human resources"

Supervisory Board involvement: Worker representatives from works council sit on the Supervisory Board and Sustainability Advisory Board

Remuneration Committee: Monitors achievement of sustainability targets (including ESG targets) in connection with remuneration policy for Executive Board members

Works councils: Approximately 99% of employees in Austria and Bulgaria, and nearly 93% in North Macedonia, are represented by works councils

European Works Council: Established for employees in Austria, Bulgaria, and North Macedonia; holds regular meetings addressing occupational safety, employee benefits, and transnational initiatives

Taking action on material impacts on own workforce

EVN is aware of the risks and potential negative impacts of its business activities on employees. The company aims to counter these risks by creating an attractive working environment, implementing safety and health measures, promoting flexible working time models, installing an internal control system, and offering training programmes and events.

Key measures and actions

Dialogue with employee representatives

• Roughly 90% of all employees in the Group (especially in Austria, Bulgaria and North Macedonia) are represented by works councils or unions
• Remuneration protected by collective bargaining agreements, tariffs or legal minimum wage regulations
• Regular meetings to inform employee representatives of important business decisions
• Legally required notification periods always complied with

Worker safety and health

• Binding regulations anchored in:
  • EVN Code of Conduct
  • EVN human rights policy
  • EVN internal principles: Group policy on occupational safety
  • EVN internal directives and guidelines for identification of safety risks and countermeasures
• Several subsidiaries in Bulgaria and Germany certified under ISO 45001
• Designated specially trained prevention staff for occupational safety, fire protection, health and first aid
• All employees and leased personnel represented by safety officers in working committees
• Safety and health documentation available to all employees

Work-life balance and family support

• Signatory to "charter on the new compatibility between parents and business" since 2011
• Flexible working time models with core times
• Various part-time models
• Mobile working models: up to 1,280 hours per year
• 3,684 employees (46%) elected to use mobile working model in 2023/24
• Childcare support:
  • Supervised children's programme for several weeks during summer vacation
  • In-house childcare in connection with daycare centre (only at WTE)
• Legal entitlement to parental leave in Austria, Germany, Bulgaria and North Macedonia
• "Papa month" extended leave in Austrian companies
• Online platform with external partner providing information on parental leave, childcare and return to work
• Reintegration part-time model for return after long illness
• Semi-retirement model for gradual reduction of working hours
• 430 employees took carer's leave in Austria in 2023/24 (112 women, 318 men)
• Educational leave available

Training and development

Resources allocated (2023/24):

• Total expenses: EUR 3.6 million (previous year: EUR 2.5 million)
• Expenses per employee: EUR 450.6 (previous year: EUR 326.7)
• Training time per employee: 22.7 hours (previous year: 29.6 hours)

Programmes:

• Apprentice training: 82 apprentices as of 30 September 2024 (previous year: 77)
  • Dual programme combining vocational school and practical experience
  • Supplementary courses and seminars
  • Support for double and multiple qualifications
  • "Let's Walz" programme for international internships
• EVN Academy programmes for future manager development:
  • Summer university "EVN SUN" in cooperation with Danube University Krems
  • In-service training programme for managers
  • Workshops and seminars covering changing working world topics
• Management training (mandatory for current managers):
  • Focus on self-competence and EVN managerial mission statement
  • Labour law, occupational safety and worker protection topics
• E-learning courses, informal morning coffee meetings, smart lectures (Austria)

Apprentice training in South East Europe

• Cooperation programmes with schools and training institutions in Bulgaria and North Macedonia
• Job-related training to combat unemployment among young people
• Received international recognition

Feedback and communication channels

• Feedback and orientation sessions
• Mood barometer
• Direct communication with employee representatives and HR department
• Whistle-blowing system available in all EVN main languages
• Anonymous and confidential reporting procedure
• Protection from reprisals through separate Group policy

Country-specific measures

Bulgaria:

• Commission for social cooperation established
• Regular meetings depending on need for discussion
• Information on annual wage increases, work clothing, working conditions

North Macedonia:

• Every organisational unit has designated employee representative
• Continuous contact with unit heads
• Regular communication between representatives and management

Health and safety performance (2023/24)

Parental leave uptake (2023/24)

Links to policies and targets

• Actions are linked to EVN Code of Conduct, human rights policy, and Group policy on occupational safety
• Support UN Sustainable Development Goals
• Focus on creating attractive working environment, safety measures, flexible working models, internal control systems, and training programmes
• Time horizon: ongoing measures with annual reporting
• Expected outcomes: reduced workplace accidents, improved employee satisfaction, knowledge transfer between generations, development of qualified specialists and managers

Targets related to own workforce

The excerpt states that "Our goals for sustainable human resources management are based on our corporate vision and strategy, but also reflect key aspects from the materiality analysis."

The company mentions that "as part of our preparations for implementation of the CSRD, we are working to define further concrete quantitative and qualitative goals to minimise any material negative impacts of our activities on our workforce, to advance positive impacts and to manage material risks and opportunities."

Non-quantified objectives mentioned:

• Strengthening local management capacity
• Maintaining share of local managers at approximately 68% (reported as 2023/24 actual, not stated as a formal target)
• Positioning EVN as an attractive employer

No specific quantified targets with target years, baseline years, or baseline values are disclosed in the excerpt for S1-5.

Characteristics of the undertaking's employees

Total headcount and FTE

As of 30 September 2024:

• Total headcount: 8,006 employees
• Full-time equivalent (FTE) average: 7,568

As of 30 September 2023:

• Total headcount: 7,722 employees
• Full-time equivalent (FTE) average: 7,255

Headcount by gender

Proportion of women: 24.1% (2023/24), 23.6% (2022/23)

Headcount by region

¹ WTE Hecklingen and WTE Essen (incl. international operations) ² Employees in the natural gas business in Croatia and in the international project business in Slovenia, Poland, Kuwait and Russia. The sale of the two sludge-fired combined heat and power plants in Moscow closed on 31 October 2024. They represented the last remaining activities by the EVN Group in Russia.

Headcount by contract type (gender)

¹ A detailed classification by type of contract is only available beginning with the 2023/24 financial year.

Headcount by contract type (region)

¹ WTE Hecklingen and WTE Essen (incl. international operations) ² Employees in the natural gas business in Croatia and in the international project business in Slovenia, Poland, Kuwait and Russia. The sale of the two sludge-fired combined heat and power plants in Moscow closed on 31 October 2024. They represented the last remaining activities by the EVN Group in Russia. ³ A detailed classification by type of contract is only available beginning with the 2023/24 financial year.

Employee turnover

Employee fluctuation – persons leaving¹

¹ The table does not include intragroup transfers, retirements or trainees entering and leaving the company. ² WTE Hecklingen and WTE Essen (incl. international operations) ³ Employees in the natural gas business in Croatia and in the international project business in Slovenia, Poland, Kuwait and Russia. The sale of the two sludge-fired combined heat and power plants in Moscow closed on 31 October 2024. They represented the last remaining activities by the EVN Group in Russia. ⁴ In relation to the total workforce of 8,006 employees as of 30 September 2024 and 7,722 employees as of 30 September 2023

Employee fluctuation rate: 4.0% (2023/24), 4.1% (2022/23)

Age structure

Average age of employees: 43.7 years (2023/24), 43.9 years (2022/23)

Non-employee workers

As of 30 September 2024, the workforce included 577 non-employee workers (previous year: data not fully disclosed). This group includes leased employees, freelancers and trainees.

Non-employee workers by region and type:

¹ WTE Hecklingen and WTE Essen (incl. international operations)

Employees with disabilities

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

Number and type of non-employee workers

As of 30 September 2024, EVN's workforce included 577 non-employee workers (previous year: not specified). This group includes leased employees, freelancers and trainees.

Non-employee workers by region and contract type (as of 30.09.2024)

| Contract type | Austria | Bulgaria | North Macedonia | Germany¹⁾ | Other countries | Total | |---|---|---|---|---|---| | Leasing personnel | 73 | – | – | – | – | 73 | | Freelance workers | 68 | – | – | – | – | 68 | | Trainees | 163 | 46 | 222 | 5 | – | 436 | | Total number of non-employee workers | 304 | 46 | 222 | 5 | – | 577 |

¹⁾ WTE Hecklingen and WTE Essen (incl. international operations)

Leased employees

As of 30 September 2024, 73 leased employees (previous year: 88 persons) worked for the EVN Group, representing 0.9% (previous year: 1.1%) of the total workforce.

Reasons for using personnel leasing:

• Integration leasing (preliminary step to conventional employment relationship)
• Tasks and projects covering a limited time
• Handling peak work

Freelance workers

Freelancers are used for the following reasons:

• As a preliminary step to a conventional employment relationship (integration)
• For tasks and projects covering a limited time
• To handle peak work
• As opportunities for students to gain initial work experience on a flexible basis

Trainees

Schoolchildren and students who complete a fixed-term traineeship with EVN as part of their educational programmes – primarily during the summer months – equalled roughly 5.4% of all employees in 2023/24 (previous year: 4.3%).

Methodology

The data is presented as headcount as of 30 September 2024. The counting methodology distinguishes between leased employees, freelancers, and trainees, with geographical breakdown by Austria, Bulgaria, North Macedonia, Germany, and other countries.

Collective bargaining coverage and social dialogue

Coverage rates

Roughly 90% of all employees in the EVN Group (especially in Austria, Bulgaria and North Macedonia) are represented by works councils or unions, and their remuneration is protected by collective bargaining agreements, tariffs or legal minimum wage regulations.

Roughly 99% of employees in Austria and Bulgaria are represented by works councils or unions, and their remuneration is protected by collective bargaining agreements, tariffs or legal minimum wage regulations.

In the core market North Macedonia (not a member of the EEA), nearly 93% of employees are represented by works councils.

The remuneration scheme for roughly 92% of employees is based on the collective bargaining agreements that apply to the primary business location (Austria, Bulgaria or North Macedonia).

The majority of employees in Austria are covered by the current collective agreement for salaried employees in electricity companies.

Collective bargaining coverage and social dialogue by region/country

European Works Council

EVN has established a European works council which holds regular meetings and serves as a platform for communication and exchange for EVN employees in Austria, Bulgaria and North Macedonia. The issues addressed by the European works council range from occupational safety and employee benefits to transnational initiatives in culture and sport.

Social dialogue arrangements

Employee representatives are informed of important business decisions on a regular and timely basis or are involved in the decision processes. This approach applies to strategic decisions as well as changes and adjustments involving employees.

In the event of operational changes, EVN always complies with the legally required notification periods.

Employee representation takes different forms depending on national laws and the composition and activities of local employees.

Austria: The Supervisory Board includes five members delegated by the works council (as of 30 September 2024). Representatives of the works council also sit on the Supervisory Board and the Sustainability Advisory Board.

Bulgaria: A commission for social cooperation was established to deal with problems between employees and the improvement of the working environment. It holds regular meetings depending on the need for discussion.

North Macedonia: Every organisational unit has a designated employee representative who is in continuous contact with the head of that unit. There is regular communication between the union and representatives of the human resources department.

Croatia: Employees can contact an ombudsperson to discuss their concerns.

Works council activities 2023/24

The activities of the works council on behalf of employees focused on the following issues in 2023/24:

• Preparation of a company agreement to protect employee data in connection with data collection via software applications and IT programmes
• Development of new models to support long-term employee retention, among others through the creation of possibilities for company childcare on a daily basis by daycare staff
• Participation in the development of models for age-appropriate workplaces
• Support for measures to advance workplace health promotion, in particular prevention
• Start of a dialogue with various departments and Group companies, in particular to improve communications over customers' concerns and to ensure the development of measures for improvement

Diversity metrics

Gender diversity at top management level

The percentage of women in EVN's workforce equalled 24.1% in 2023/24 (previous year: 23.6%), and roughly 12.5% of the positions for managing directors and authorised officers were filled by women.

14 women currently serve as project managers (project manager career path) in the EVN Group.

Executive Board gender composition

The Executive Board was expanded to three members as of 1 September 2024 with the appointment of a woman as Chief Financial Officer.

Supervisory Board gender composition

EVN's Supervisory Board included five women up to 1 April 2024: three shareholder representatives and two employee representatives. Since 2 April 2024, EVN's Supervisory Board has included six women: three shareholder representatives and three employee representatives.

The percentage of women serving on the Supervisory Board equalled 40% as of 30 September 2024.

The members of the Supervisory Board range in age from 38 to 69 years, and the average age is 56.9 years.

Age band distribution of total workforce

New hires by gender

¹ WTE Hecklingen and WTE Essen (incl. international operations) ² Employees in the natural gas business in Croatia and in the international project business in Slovenia, Poland, Kuwait and Russia. The sale of the two sludge-fired combined heat and power plants in Moscow closed on 31 October 2024. They represented the last remaining activities by the EVN Group in Russia.

Employees with disabilities

The definition of the term "persons with disabilities" for the calculation of the metric is based on the respective national laws.

Diversity initiatives

The Women@EVN programme is designed to achieve the greatest possible diversity at the upper management level and gradually increase the percentage of women in management positions. EVN's objective for the medium term is to increase the share of women to a level that mirrors their current educational levels in the applicable professional groups.

Preparations started in 2023/24 to develop a diversity strategy for EVN. The first step was a survey of 450 randomly selected employees whose responses helped to determine EVN's position on DEI (diversity, equity, inclusion). The next step will concentrate on workshops to develop the strategy together with representatives from all areas of the company in Austria.

Adequate wages

EVN states that adequate and fair remuneration for all employees is an important issue, with the most important underlying principle being compliance with all relevant legislation and tariff agreements. Salaries are described as competitive, aligned with the market, and reflecting the position and expertise of employees.

Benchmark used: The compensation of roughly 92% of EVN's employees is based on collective bargaining agreements that apply to the main business locations in Austria, Bulgaria and North Macedonia. For employees without a collective bargaining agreement, national legal regulations (e.g. concerning minimum salary) are observed and/or used as a reference point. Various external sources are also used, specifically www.wageindicator.org, to ensure that remuneration reflects comparable agreements or the legal minimum standard.

Coverage: Roughly 92% of employees' remuneration is based on collective bargaining agreements. Roughly 99% of employees in Austria and Bulgaria are represented by works councils or unions, and their remuneration is protected by collective bargaining agreements, tariffs or legal minimum wage regulations. In North Macedonia, nearly 93% of employees are represented by works councils. In total, roughly 90% of all employees in the Group are supported by workers representatives.

Geographic scope: The policy covers Austria, Bulgaria, North Macedonia, Germany, and other countries where EVN operates (Croatia, Slovenia, Poland, Kuwait, and formerly Russia).

Methodology: Compensation is based on applicable collective bargaining agreements and specific responsibilities and qualifications. For employees without collective bargaining agreements, EVN uses national legal minimum salary regulations as a reference point and consults external sources like www.wageindicator.org. The remuneration of leased employees reflects compensation paid to comparable employees for similar activities based on collective bargaining agreements or legal regulations.

Target/commitments: No specific targets related to living wage coverage are disclosed.

Additional context: EVN emphasizes gender-neutral remuneration and is committed to fair, equitable compensation. The company calculates gender pay gap metrics (16.5% in Austria for 2023/24) and median-to-highest compensation ratios by country. However, the disclosure does not explicitly reference a living wage benchmark that covers basic living needs for workers and their families beyond compliance with collective bargaining agreements and minimum wage laws.

Social protection

Coverage

Country-specific legal regulations and international guidelines like the Universal Declaration of Human Rights and EVN's Code of Conduct form the framework for engagement with our employees.

We want to ensure that all women and men directly employed in our Group companies are protected against the loss of income due to challenging life situations. In accordance with national legal regulations, all employees are protected under public programmes or by services we offer and enjoy social protection against the loss of income due to the following life events:

• Illness
• Loss of employment (starting at the time of company affiliation)
• Work accidents and occupational disability
• Parental leave
• Retirement

Exclusions: Employees in Kuwait and Bahrain are excluded from this coverage because they only enjoy social protection in the event of illness according to local regulations.

Supplementary benefits

Supplementary health insurance

We offer supplementary health insurance at favourable conditions as a voluntary benefit for our employees in Austria, Bulgaria and Russia. Framework agreements with selected insurance providers in the individual countries ensure optimal medical care for all participants.

Pension benefits

All EVN employees are covered by statutory pension insurance. As a supplement, our Austrian employees with permanent contracts are entitled to participate in a private, fund-based pension programme after a one-year waiting period. The pension fund is not held by the EVN Group but is a defined contribution scheme in which the amount of the future pension is derived from the employer and employee contributions up to the retirement date. EVN's contribution in 2023/24 equalled at least 2% of each eligible employee's monthly gross remuneration. Contributions by employees are voluntary, whereby 35.8% of the workforce in Austria took advantage of this offer during the reporting year.

We also introduced voluntary pension insurance for all our full-time and part-time employees in Bulgaria.

Coverage rate

Roughly 92% of our employees' salary scheme is focused on collective bargaining agreements that apply to our main business locations in Austria, Bulgaria and North Macedonia.

Persons with disabilities

In line with our commitment to equal treatment and opportunities, we support the integration of people with disabilities. We employed 131 persons from this group in 2023/24 (previous year: 129 persons), who represent 1.6% (previous year: 1.7%) of our total workforce.

The definition of the term "persons with disabilities" for the calculation of the metric is based on the respective national laws.

S1-12 Employees with disabilities

Training and skills development metrics

Training and educational measures

¹⁾ The decline in the training and education time per employee resulted from a change in the database in Bulgaria.

Training programme overview

EVN operates EVN Academies in Austria, Bulgaria and North Macedonia. In Austria, the EVN Academy holds roughly 200 events each year and coordinates more than 70 different training plans for electricity, natural gas, heat and water for apprentices and young technicians, and recertification courses for experienced specialists. These training plans cover courses on various technical subjects as well as content on personal development.

The mandatory in-service training programme for current managers covers various courses and coaching with a focus on self-competence and the EVN managerial mission statement, but also deals with issues like labour law, occupational safety and worker protection.

In Austria, the company focuses primarily on e-learning courses, informal morning coffee meetings or smart lectures as the learning forms of the future.

Health and safety metrics

S1-14 Accident and lost days statistics

Notes:

1. Employees incl. leasing personnel (average headcount for the year); in 2022/23 no differentiation was made between employed and non-employed workers
2. Employees (average headcount for the year) classified by employee workers (own employees) and non-employee workers (leasing personnel)
3. Based on an average number of 1,700 hours worked per employee and year
4. Based on 1,000,000 hours worked
5. Work-related accidents that result in more than six months of sick leave, excl. fatalities
6. Work accidents (excl. commuting accidents) that result in fatalities, lost working days, work restrictions, medical treatment, unconsciousness or diagnosed severe injuries
7. All work-related accidents, excl. commuting accidents
8. All sick leave days after work-related accidents, excl. commuting accidents

Coverage of health and safety management system

All EVN employees and leased personnel are represented by safety officers in working committees that monitor and discuss workplace safety programmes. EVN has designated specially trained prevention staff at headquarters and in Group companies for occupational safety, fire protection, health and first aid.

Several subsidiaries in Bulgaria and Germany are certified under ISO 45001:2018. The wastewater treatment plant project business managed by WTE uses an occupational safety and health management system certified under ISO 45001:2018.

Work-life balance metrics

Entitlement to family-related leave

All employees in Austria, Germany, Bulgaria and North Macedonia are legally entitled to parental leave after the birth of a child. In Austrian companies this is extended by the so-called "papa month" which has become attractive to an increasing number of fathers. Parental leave in Austria covers a possible leave of absence up to the 36th month after the child's birth and exceeds current legal regulations, while this option is used less frequently in South Eastern Europe.

All employees in Austria, Bulgaria, North Macedonia and Germany are entitled to vacation for family reasons.

Employees electing parental leave

2023/24

¹⁾ WTE Hecklingen and WTE Essen (incl. international operations) ²⁾ Employees in the natural gas business in Croatia and in the international project business in Slovenia, Poland, Kuwait and Russia. The sale of the two sludge-fired combined heat and power plants in Moscow closed on 31 October 2024. They represented the last remaining activities by the EVN Group in Russia.

2022/23

Return-to-work rate after parental leave

Nearly all mothers and fathers return to EVN after parental leave. The company maintains direct contact with employees during the entire leave period and facilitates their return to work. Employees on parental leave are invited to special information events and can take advantage of the extensive training programme.

Work-life balance measures

A total of 3,684 employees, or 46%, elected to use a mobile working model in 2023/24. Various part-time models and models for mobile work help employees to organise their professional and family obligations. The models for mobile working provide for a framework of up to 1,280 hours per year.

In the 2023/24 financial year 430 employees (112 of whom were women and 318 men) took carer's leave in Austria.

Nine employees in Austria were on educational leave in 2023/24.

Additional support offered

• Daycare at the location in Maria Enzersdorf (currently as a pilot project)
• Supervised children's programme for several weeks during the summer vacation
• In-house childcare in connection with a daycare centre (only at WTE)
• Online platform operated together with an external partner company, providing information on parental leave, childcare and the return to work
• Reintegration part-time model in special cases, for example to facilitate employees' gradual return to work after a long illness
• Semi-retirement model to gradually reduce working hours prior to retirement

Compensation metrics (ESRS S1-16)

Pay gap

EVN disclosed a gender pay gap for Austria only during the 2023/24 financial year:

The company states: "A comparison of the remuneration of all salaried workers in Austria resulted in a gender pay gap of 16.5% in 2023/24. EVN's gender-specific remuneration difference in Austria is primarily attributable to the branch, which is currently dominated by men."

The calculation of the gender pay gap for the entire EVN Group is still in progress and scheduled for completion in 2024/25. Country-specific metrics are being developed to address differences in purchasing power between individual core markets.

Remuneration ratio

The ratio between the annual total remuneration of the highest paid person in the Group and the median of all employees equalled approximately 34.1:1 for EVN in 2023/24.

Country-specific ratios were also calculated:

Methodology

The calculation of the gender pay gap is based on the number of employees (full-time equivalent) and the average remuneration per employee. Remuneration includes all wages/salaries and other related components for the reporting period which are not one-off.

The remuneration ratio compares highest annual total remuneration to median employee total remuneration. Country-specific ratios address differences in purchasing power and wage levels in individual core markets.

Incidents, complaints and severe human rights impacts

Incidents of discrimination

There was one report of a gender discrimination incident in 2023/24 that was classified as material, but an internal investigation did not result in confirmation. One further report, which was received anonymously, did not meet the necessary criteria for an internal investigation. The whistle-blowers were informed of these decisions over the bilateral communication platform in the whistle-blower system. In addition, one case of discrimination was reported to and processed by the responsible human resources department.

Summary of incidents

• Gender discrimination incidents reported: 2 (1 material but not confirmed after investigation, 1 anonymous not meeting investigation criteria)
• Cases processed by HR: 1
• Status: Investigations completed; whistle-blowers informed via whistle-blower system platform

Policies related to value chain workers

EVN has established multiple policies and governance frameworks to address impacts, risks and opportunities related to workers in the value chain.

Group policy for "workers in the value chain"

• Scope: Workers in the value chain, including workers at the company's location who are not part of the own workforce, workers at companies in the upstream value chain, workers at companies in the downstream value chain, and workers who are particularly vulnerable (women and girls, young workers, workers with migration status or different ethnic affiliation, workers with a non-heterosexual orientation)
• Key principles: The policy forms the foundation for EVN's strategic supplier management and establishes principles of conduct that apply to all procurement activities, including:
  • Compliance: Guaranteed compliance with legal requirements and guidelines defined by international frameworks
  • Responsibility: Creation and strengthening of awareness for all employees on the importance of minimising impacts and risks for workers in the value chain
  • Continuous improvement and active management: Implementation of a continuous improvement process
  • Transparency: Active communication and cooperation with business partners to increase and protect transparency in the value chain
  • Risk-based analysis: Risk-based approach for the analysis of negative impacts, risks and opportunities for workers in the value chain based on EVN's Group-wide strategic supplier management
• Public availability: www.evn.at/policies_S2
• Links to international standards: The policy is designed to meet and exceed legal regulations and requirements of international frameworks, ensuring compliance with human rights. EVN commits to compliance with:
  • Work of the International Labour Organisation
  • Guiding Principles of the United Nations for Business and Human Rights
  • National laws and international labour standards
• Implementation and monitoring: The responsibilities and authorisations are clearly regulated in Group-wide instructions for procurement and assigned to the corporate function procurement and purchasing. These instructions, together with the sustainable procurement manual, define the organisation and design of sustainable procurement

EVN Integrity Clause

• Scope: Fixed component of every procurement contract with all business partners
• Key principles: EVN requires business partners to comply with the following:
  • Labour rights are to be respected and followed in accordance with national laws, international labour standards and human rights agreements
  • Safe and healthy working conditions must be guaranteed for employees in the value chain, including measures to prevent accidents, injuries and work-related illnesses
  • The rights of employees to freedom of association, collective bargaining and wage agreements must be respected. Efforts to found and join unions should be supported
  • Prevention of forced labour, child labour, discrimination and (sexual) harassment at the workplace
• Public availability: www.evn.at/integrity-clause
• Enforcement: Contracts with suppliers include clauses that permit audits or, as an ultima ratio, the termination of the business relationship to ensure compliance

Human Rights Policy

• Scope: Workers in the value chain
• Key principles: Forms part of the foundation for EVN's strategic supplier management and requires suppliers to comply with social minimum standards
• Public availability: www.evn.at/human-rights-policy
• Links to international standards:
  • UN Guiding Principles on Human Rights
  • International Bill of Rights (Universal Declaration of Human Rights)
  • Declaration on Fundamental Rights and Principles at Work of the International Labour Organisation including Core Conventions
  • OECD Guidelines for Multinational Enterprises
• Implementation and monitoring:
  • All suppliers are screened by external service providers for potential risks (e.g. in the areas of sustainability, social minimum standards or compliance)
  • Annual survey with top suppliers on sustainability in the supplier chain conducted since 2021
  • Material impacts, risks and opportunities related to workers in the value chain are identified, assessed and managed annually
  • In 2023/24, 12 compensatory measures were introduced
  • Contracts include clauses permitting audits or termination of business relationships

Additional governance and processes

• Approval and oversight: The corporate function procurement and purchasing is responsible for coordination of appropriate measures and ensuring the inclusion of the interests of the stakeholder group "workers in the value chain"
• Grievance mechanism: Workers in the value chain have access to EVN's whistle-blower system, which makes it possible to contact EVN anonymously. Violations reported over the whistle-blowing system are documented anonymously to permit follow-up and implementation of appropriate measures. Mandatory feedback to the whistle-blower within three months ensures channel efficiency
• Risk assessment methodology: EVN relies on findings from relevant research reports and databases to determine material risks for workers in the value chain in respective countries, including:
  • Environmental Performance Index
  • Global Rights Index
  • Corruption Perception Index
  • Various research reports on potential human rights risks and environmental risks in global supply chains

Sustainable Development Goals alignment

EVN's approach reflects the Sustainable Development Goals (SDGs) of the United Nations, especially SDG 12: Responsible consumption & production. EVN was certified as a Level 2 sustainable procurement organisation across national borders by the German Federal Association of Materials Management, Purchasing and Logistics (BME).

Taking action on material impacts on value chain workers

Compensatory measures based on supplier management

Scope: Value chain (upstream suppliers)
Implementation: In 2023/24, 12 compensatory measures were introduced in accordance with the procedure defined by EVN's strategic supplier management.
Process: The process to identify, assess and manage material impacts, risks and opportunities includes the evaluation of any recognised risks or negative impacts on workers in the value chain and subsequent discussion with the involved suppliers. The goal is to develop and agree on remedial or improvement measures for any deficiencies in a dialogue with the business partners.

Principles for addressing impacts and risks

Based on the impact and risk analysis carried out during the reporting year, EVN formulated the following principles:

1. Increase in diversity and reduction of gender-specific discrimination

• EVN requires gender equality and diversity in its value chain and is committed to the fight against discrimination based on gender, sexual orientation, ethnic origin, religion, age or other personal characteristics
• EVN aims to achieve a balanced representation of women and men in its value chain in all areas
• Supports measures for the advancement of women in management positions and the elimination of gender-specific wage differences
• Requires business partners to create an inclusive working environment that respects and promotes employee diversity

2. Increase in occupational health and safety

• EVN requires business partners to respect and comply with labour laws as defined by national legislation, international labour standards and human rights agreements
• Requires business partners to guarantee safe and healthy working conditions for employees in EVN's value chain
• Requires undertaking measures to prevent accidents, injuries and work-related illnesses

3. Prevention of child labour, forced labour and slavery

• EVN requires business partners to prevent forced labour, child labour, discrimination and harassment at the workplace
• Requires active measures to prevent and combat such practices

4. Freedom of association and collective bargaining

• EVN requires business partners to respect the rights of employees to the freedom of association, collective bargaining and wage agreements
• Support efforts to found and join unions

5. Reduction of environment-related human rights risks

• EVN supports positive social and economic developments in the areas where it purchases goods or services
• EVN always strives to use the best available technologies and proven procedures during the construction, operation and decommissioning of plants

Specific measures implemented in 2023/24

Supplier roundtable (EVN Macedonia)

Date: 10 June 2024
Scope: Non-EU suppliers
Description: First supplier roundtable to present strategic supplier management and explain upcoming requirements of the new EU CSRD, CSDDD and CBAM norms. This format also provided new insights into the challenges facing suppliers.

Cascading supplier analysis (Austria)

Start date: July 2024
Scope: Top suppliers in procurement areas "services", "construction" and "supplies"
Process: Three top suppliers from each procurement area were subject to a detailed analysis covering:

• In-depth screening of business partners using various sources (external ratings, digital platforms, research contracts, hearings and/or on-site audits)
• Joint development of measures
  Main issues addressed:
• Increase in diversity and reduction of gender-specific discrimination
• Improvement of occupational safety and health
  Status: Screening for two suppliers completed in September 2024; third screening scheduled for conclusion in November 2024

Software solutions for risk analysis and monitoring

Implementation: 2023/24
Description: A software solution was purchased and installed to support the detailed analysis and monitoring of the impacts, risks and opportunities in EVN's value chain.

ESG procurement criteria

Implementation: 2023/24
Description: EVN strengthened criteria in preparation for mandatory application of CSRD and created an internal criteria list for ESG procurement. One-fifth of all procurement transactions were already qualified as ESG procurement in 2023/24, among others due to sustainability oriented contract clauses and best bidder criteria.

Planned actions (defined goals for value chain impacts, risks and opportunities)

Timeline and targets:

1. Comprehensive use of software solution (2024/25)
   To support the identification of impacts, risks and opportunities in EVN's value chain

2. ESG training concept (by 30 September 2025)
   Preparation of a concept for an ESG training organisation for employees in EVN's central procurement units to strengthen their ESG competence and the quality of sustainable procurement

3. Detailed ESG tender requirements (by 30 June 2025)
   For the merchandise groups with the highest ESG risks in each EVN core market

4. Development of measures (by 30 September 2025)
   For the impacts, risks and opportunities ranked by the materiality and value chain analysis

5. ESG audit system for suppliers (by 30 September 2025)
   Development and implementation of an ESG audit system for suppliers with a high ESG risk

6. Branch-wide ESG procurement stakeholder programme (by 30 September 2026)
   Development of a concept for a branch-wide ESG procurement stakeholder programme

Effectiveness tracking

Risk prioritization approach: Determination of focus issues based on:

• Step 1: Evaluation of:
  • Potential influence of the company on the supplier or involved link in the value chain
  • Severity or degree, scope and irreversibility of the damage or risk or opportunity
  • Probability of occurrence
• Step 2: Weighting of the above criteria (one-third each)

Targets related to value chain workers

EVN AG has disclosed the following targets related to managing material impacts, advancing positive impacts and managing material risks and opportunities for workers in the value chain:

Short term targets

Medium term targets

Note: No quantified metrics, baseline years, baseline values, or progress-to-date information are disclosed for these targets. All targets are qualitative process/system development goals.

Policies related to affected communities

EVN has established several policies that govern its engagement with affected communities. The company references these policies on page 108f of its sustainability statement.

Group Policy on Engagement with Affected Communities

Policy description and adoption: EVN issued a Group policy on engagement with affected communities in 2023/24. It serves as a guideline for identifying, assessing and managing the material impacts, risks and opportunities related to affected persons and interest groups.

Key principles: The policy defines principles and processes to involve affected communities in EVN's business processes, with the goal to not only fulfil but exceed legal requirements wherever possible. The company is committed to continuously optimize cooperation with directly and indirectly involved interest groups.

The policy establishes the following principles of conduct for all business activities:

• Responsibility: All employees are responsible for conducting a respectful, transparent dialogue on an equal basis with affected communities
• Compliance: Commitment to compliance with all relevant legal regulations and standards, working to exceed mandatory requirements wherever possible
• Internal policies: Commitment to compliance with all internal policies and processes concerning cooperation with affected communities
• Active management: Documentation of activities for the involvement of affected communities and improvement in the event of deficiencies
• Continuous improvement: Goal to continuously improve practices and find innovative solutions to ensure fair involvement of affected communities

Scope: The policy applies to all business activities across the EVN Group.

Alignment with international standards: The policy is aligned with the EVN Code of Conduct and EVN human rights policy. The company states it operates in line with the UN Global Compact (EVN is a member).

Implementation and monitoring: EVN has defined the following action lines:

• Competence development: Training and workshops to strengthen awareness for the rights and interests of affected communities
• Fostering partnerships: Building partnerships with local organisations and NGOs
• Social investments: Making social investments and carrying out joint development projects
• Environmental impact assessments: Arranging for environmental impact assessments to identify and minimise potential negative impacts
• Monitoring and evaluation: Monitoring and evaluating the impacts of business activities on affected communities
• Complaint mechanisms: Installing low-barrier, effective complaint mechanisms to record and address concerns and complaints

EVN Code of Conduct

Role in relation to affected communities: Referenced as a foundational document that defines rules of conduct for interaction with affected communities. The Group policy on engagement with affected communities is developed in line with the EVN Code of Conduct.

Scope: Applies to all activities related to memberships in organisations and interest groups.

EVN Human Rights Policy

Role in relation to affected communities: Referenced as a foundational document alongside the Code of Conduct. The company's engagement with affected communities is committed to being in line with the EVN human rights policy and all related legal regulations and policies.

Public availability: Page reference: 108

Strategy 2030

Motto and content: "More sustainable. More digital. More efficient."

Defines rules of conduct for interaction with affected communities. EVN is committed to making an active contribution to reducing greenhouse gas emissions and containing climate warming.

Related initiatives: The EVN Climate Initiative "EVN for the climate" was developed in 2020/21 with key goals including decarbonisation targets coordinated with the Science Based Targets initiative. This initiative established the foundation for presentations to political decision-makers and information events for infrastructure projects.

Due diligence processes

Scope: Ecological and social aspects are included in the development of all projects and related due diligence audits from the very beginning. These audits are carried out before the start of every project and form the basis for the Executive Board's decision processes and, for certain large-scale projects, the necessary Supervisory Board approval.

Grievance mechanisms

EVN provides multiple channels for affected communities to raise concerns:

• Direct contact with project managers or project communication team via dialog@evn.at
• EVN service telephone
• Email to info@evn.at
• Whistle-blower system available to involved persons, communities or groups who want to contact EVN anonymously with concerns or interests, accessible in person, by telephone, over specific compliance email addresses or through an external service provider, available throughout the Group and in the main languages of the EVN Group

Taking action on material impacts on affected communities

EVN uses the following measures for project communication and social engagement:

Project communication

Action: "Project communication and climate dialogue" team and training programme

• Description: Created a specialized team and developed a training programme to strengthen project managers' communicative and strategic skills in managing difficult situations and conflicts arising from infrastructure projects
• Scope: Own operations (project development and implementation)
• Objectives:
  • Strengthen confidence and acceptance by involved stakeholders
  • Support successful project realization
  • Ensure greatest possible satisfaction for people affected by projects
• Activities: Training covers managing difficult situations, conflicts in infrastructure projects, and conducting open communications with stakeholders like NGOs and citizens' initiatives

Social engagement

EVN promotes and supports activities and initiatives in art, culture, social issues and sport. Key actions include:

kabelplus school programme

• Description: School workshops on safe use of digital media, dealing with fake news, and identifying false information
• Scope: Own operations (kabelplus subsidiary)
• Modules: "online actions & energy consumption", "fake news", "safe Internet", "netiquette and cyber bullying"
• Target group: Young people and 60+ generation
• Objectives: Increase awareness and responsibility of young people in using digital space; provide basic digital skills training for senior citizens

EVN Social Fund

• Resources allocated: Annual endowment of approximately EUR 150,000
• Scope: Regional focus on Lower Austria
• Activities: Supports institutions working with children and adolescents
• Governance: Expert committee meets twice yearly; recommendations made unanimously to Executive Board based on predefined criteria catalogue
• Performance 2023/24: Supported 22 projects with total of EUR 132,500

evn collection

• Description: International contemporary art collection founded in 1995
• Activities: Curated selection of art by well-known experts

General action lines for affected communities

EVN has defined the following action lines (selection):

• Competence development: Training and workshops to strengthen awareness and understanding of rights and interests of affected communities
• Fostering partnerships: Building partnerships with local organisations and NGOs to better understand and support needs and interests of affected communities
• Social investments: Social investments and joint development projects with positive impact on affected communities
• Environmental impact assessments: Arranging assessments to identify and minimise potential negative impacts on affected communities
• Monitoring and evaluation: Monitoring and evaluating impacts of business activities on affected communities to identify and prevent potential negative effects early and support positive impacts
• Complaint mechanisms: Installing low-barrier, effective complaint mechanisms to record and address concerns and complaints of affected communities

Engagement approach

Ecological and social aspects are included in development of all projects and related due diligence audits from the beginning. This involves:

• Analysis of communities affected by a project or construction work
• Adequate preparations for necessary project communication
• Close coordination with project managers and responsible persons
• Multiple contact channels available: direct contact with project managers via dialog@evn.at, EVN service telephone, info@evn.at, and whistle-blower system for anonymous reporting

Policies related to consumers and end-users

EVN has identified policies related to consumers and end-users in accordance with ESRS S4-1. The company's double materiality analysis in 2023/24 identified material negative impacts related primarily to data protection, with potential dangers for customers' personal privacy and data following possible cyberattacks.

Group Policy on Engagement with Customers

Scope: Applies across the EVN Group to manage relationships with customers and end-users.

Key content and principles:

• Management of impacts on customers: All potential positive and negative impacts on customers are included in internal decision processes and long-term risk analysis
• Regular survey of impacts, risks and opportunities: EVN identifies, quantifies and assesses the impacts, risks and opportunities of activities and locations on customers and implements measures to minimise negative impacts on vulnerable customer groups
• Commitment to continuously improve business practices through constant innovation
• Support for positive impacts of products and services and technical progress on consumers and end users
• Ensures compliance with legal requirements
• Focus on cost-effective, safe, environmentally compatible and efficient services
• Safeguarding energy supplies above and beyond legal requirements
• Support for alternatives to fossil gas (e.g. biogas and biomass)
• Increased use of renewable energies for heat supplies
• Provision of high-quality drinking water
• Customer-focused energy advising
• Social responsibility and cooperation with relief organisations through an energy assistance fund with an annual budget of EUR 3m

Link to international standards: The policy reflects the Sustainable Development Goals (SDGs) of the United Nations (UN), which EVN has supported for many years.

Public availability: Available at www.evn.at/policy_S4

Monitoring:

• Regular surveys commissioned from independent, external parties to analyse and evaluate customer service quality and customer satisfaction in three core markets
• Monthly survey data and analyses compared with preceding periods to follow development of customer satisfaction
• Results evaluated by involved departments and flow into definition of concrete improvement approaches
• Customer loyalty index specially designed to meet EVN's requirements for monthly monitoring and measurement
• ISO 18295-1 certification for customer service, covering procedures and processes in customer service and training concept for customer relations team

EVN Code of Conduct

Scope: Applies throughout the EVN Group.

Key content and principles: Includes provisions related to engagement with customers and end-users, including a category for "customers" in the whistle-blowing system.

Public availability: Available at www.evn.at/code-of-conduct

Monitoring: Whistle-blowing system allows internal and external persons to report (presumed) compliance violations through confidential and anonymous procedures, available throughout the Group in the main languages of the EVN Group.

Customer Charter

Key content and principles: Issued in summer 2024 under the motto "fairness and transparency: our promise to our customers", covering:

• Commitment to understand and meet customers' needs, expectations and concerns
• Content is reviewed and updated on a regular basis to ensure the company meets customer needs and expectations as best as possible at all times

Public availability: Available at www.evn.at/fairness (Germany only)

Communication channels for customers

EVN provides multiple channels for customers to express concerns and raise issues:

• Telephone
• E-mail
• Digital inquiries over the "Meine EVN" service portal
• Feedback platform "Mein Feedback"
• Personal visits
• Complaint management
• Customer Advisory Board
• Whistle-blower system (confidential and anonymous, hosted by external service provider)

Additional commitments

Transparent electricity labelling:

• In Austria: Disclosure of all information on electricity delivered to customers in accordance with legal requirements, including geographical origin, composition by primary energy carriers, and environmental impact
• Voluntary long-standing commitment to use no nuclear-generated electricity in Austrian electricity products
• Electricity delivered in Austria originates entirely from certified Austrian renewable sources (100% CO2-free)
• Household customers receive electricity generated entirely from renewable energies

Data protection focus: Given the material negative impacts identified related to data protection, EVN has established measures for information security, cybersecurity and data protection to prevent potential dangers for customers' personal privacy and data.

Taking action on material impacts on consumers

EVN has identified material potential negative impacts on customers primarily concerning information-related effects connected with data protection. The misuse of data, for example following a cyberattack, can represent a material potential danger for customers' data and personal privacy.

Information security, cybersecurity and data protection

Scope: Own operations across all markets (Austria, Bulgaria, North Macedonia)

Time horizon: Ongoing

Description of actions:

• Multi-step protection concept to proactively protect infrastructure and minimise possible areas of attack, using several measures in combination
• Access control measures based on need-to-know and least privilege principles, limiting authorisations for critical systems to the absolute necessary minimum
• Tec Centre at EVN headquarters (operational since July 2023): Provides physically separated, secure space for system operators responsible for energy supplies, cyber defence centre and computing centre. Equipped with uninterruptible power supply and modern fire-fighting equipment
• Information Security Management Systems (ISMS) reviewed on an ongoing basis and improved when necessary to ensure state-of-the-art protection
• ISO 27001 certification for ISMS at EVN (corporate function IT), Netz Niederösterreich and EVN Wärmekraftwerke
• Ongoing certification preparations for other areas, including subsidiaries in Bulgaria and North Macedonia, in preparation for NIS audits and NIS2 Directive requirements
• Cyber defence centre for reactive precautions against cyberattacks
• Continuous monitoring of system and data security to quickly identify and realise opportunities for improvement

Links to policies:

• Legal compliance with Network and Information Security Act
• Data Protection Act requirements
• EVN Code of Conduct

Data protection management

Scope: Group-wide, all markets

Time horizon: Ongoing

Description of actions:

• Data protection officers in all Austrian federal states and all markets, responsible for strict compliance with data protection requirements and creating employee awareness
• Data protection manual providing detailed instructions for specific applications (processing data privacy requests, deletion of information)
• Procedures for data protection incidents documented and regularly evaluated
• Annual examination of data protection issues as part of EVN's risk inventory
• Direct contact channel available: datenschutz@evn.at

Resources (non-financial):

• Dedicated data protection officers across all markets

Customer communication and engagement channels

Scope: Own operations

Time horizon: Ongoing

Description of actions:

Multiple channels available for customers to express concerns and raise issues:

• Telephone
• E-mail
• Digital inquiries over "Meine EVN" service portal
• Feedback platform "Mein Feedback"
• Personal visits
• Complaint management
• Customer Advisory Board
• Whistle-blower system (available throughout the Group, in main languages, hosted by external service provider, allows anonymous reporting)

Links to policies:

• Group policy "engagement with customers" (www.evn.at/policy_S4)
• EVN customer charter (www.evn.at/fairness)
• EVN Code of Conduct (www.evn.at/code-of-conduct)

Quality and customer satisfaction monitoring

Scope: Three core markets (Austria, Bulgaria, North Macedonia)

Time horizon: Ongoing

Description of actions:

• Independent external surveys commissioned regularly to analyse and evaluate quality of customer service and satisfaction
• Customer loyalty index (Austria) specially designed for EVN requirements, used for monthly monitoring and measurement
• ISO 18295-1 certification for customer service, covering procedures, processes and training concept
• Monthly survey data analysis compared with preceding periods to follow development and evaluate business transactions

Expected outcomes:

• Identification of opportunities for improvement
• Swift reaction to changes in customer behaviour
• Confirmation of high quality customer service and legal compliance

Support for vulnerable customer groups

Scope: Own operations

Time horizon: Ongoing

Description: EVN recognises that energy price increases create enormous burden for financially weak households and has taken actions to ensure energy supplies remain affordable, reflecting the company's commitment to social responsibility.

Note: Specific measures for vulnerable customer support are referenced but not detailed in the provided excerpts.

Business conduct policies and corporate culture

EVN AG has established a comprehensive set of policies governing business conduct and corporate culture. The company's approach to business conduct is anchored in its commitment to ethical and legally compliant behaviour across all operations.

EVN Code of Conduct

Key content/principles: The EVN Code of Conduct is the foundational document that regulates ethical and legally compliant behaviour across the EVN Group. It is built on EVN values and covers ten subject areas including:

• Human rights
• Governance
• Corporate ethics
• Prevention of corruption
• Data protection
• Confidentiality and competitive behaviour
• Occupational safety and accident prevention
• Climate and environmental protection

The Code of Conduct represents Group-wide binding guidelines for behaviour and applies to all employees, business partners and suppliers.

Scope: All employees, business partners and suppliers throughout the EVN Group.

Governance/oversight: The compliance management system (CMS) has been in place since 2012 and is managed by the Chief Compliance Officer (CCO).

Link to international standards: The Code of Conduct is aligned with:

• United Nations Guiding Principles on Business and Human Rights
• Declaration by the International Labour Organisation (ILO) on Fundamental Principles and Rights at Work
• OECD Guidelines for Multinational Enterprises
• Universal Declaration of Human Rights

Public availability: Available publicly at www.evn.at/code-of-conduct

Monitoring implementation: A compliance management system (CMS) defines a standardised framework for the entire Group, built on three main elements:

• Prevention through the creation of awareness
• Detection (monitoring and control mechanisms)
• Response (handling of compliance violations)

The CMS supports honest and legally compliant behaviour of employees in their everyday business activities.

EVN Human Rights Policy

Key content/principles: The human rights policy addresses human rights commitments across the value chain, including:

• Respect for fundamental human rights
• Prohibition of forced labour, human trafficking and modern slavery
• Prohibition of child labour
• Non-discrimination based on gender, age, ethnic or social origin, nationality, skin colour, sexual orientation, religion, ideology or physical/mental disabilities

Scope: Applies throughout the EVN Group and is referenced in supplier requirements through the EVN Integrity Clause.

Link to international standards:

• United Nations Universal Declaration of Human Rights
• International Bill of Human Rights
• Declaration on Fundamental Rights and Principles at Work of the International Labour Organisation
• Guiding Principles of the United Nations for Business and Human Rights

Public availability: Available at www.evn.at/human-rights-policy

EVN Integrity Clause

Key content/principles: The Integrity Clause is a contractual requirement for suppliers and business partners that requires compliance with:

• Respect for labour rights in accordance with national laws, international labour standards and human rights agreements
• Safe and healthy working conditions
• Freedom of association, collective bargaining and wage agreements
• Prevention of forced labour, child labour, discrimination and harassment
• Gender equality and diversity
• Environmental responsibility

Scope: Mandatory component of every procurement contract with suppliers and business partners.

Public availability: Available at www.evn.at/integrity-clause

Fair Tax Policy

Key content/principles: Based on high ethical standards defined in the EVN Code of Conduct, the binding tax strategy for the EVN Group includes:

• Making a fair contribution to tax revenue in all countries where EVN conducts business operations
• High compliance standards with regard to taxation
• Legally compliant, timely and complete fulfilment of reporting, clarification, submission and payment requirements
• Exclusion of risks under financial criminal law, especially tax evasion or reduction
• Fair, constructive, cooperative and transparent dialogue with fiscal authorities
• Proactive tax controls based on evaluation of tax-relevant risks
• Avoidance of aggressive tax planning; no use of artificial structures whose main purpose is tax reduction

Scope: Applies throughout the EVN Group in all countries of operation.

EVN Sustainability Guideline

Key content/principles: Anchors the commitment to minimise resource use and maximise efficient use, including:

• Priority for reuse, recycling or other usage of materials and supplies
• Optimisation of waste management towards alignment with circular economy
• Responsible and sustainable use of resources

Scope: Applies throughout the EVN Group.

Public availability: Available at www.evn.at/sustainability-guideline

EVN Values

The company has defined three EVN values that guide corporate culture:

• Ensure
• Encourage
• Enable

These values are referenced in multiple policy documents and guide daily interaction throughout the organization.

Public availability: Available at www.evn.at/own-workforce

Group Policy on Employees

Key content/principles: Defines principles and procedures for assessment and management of material impacts, risks and opportunities on employees, including:

• Fair remuneration independent of gender, based on responsibilities and qualifications
• Compliance with collective bargaining agreements
• Protection against income loss due to challenging life situations

Scope: Applies to all directly employed workers in EVN Group companies.

Public availability: Available at www.evn.at/policy_S1

Manual on Minimum Social Standards

Key content/principles: Defines social minimum standards to be applied across the organization.

Scope: Group-wide application.

EVN Managerial Mission Statement

Key content/principles: Guides managerial behaviour and decision-making, including:

• Transparency as an integral part of major business decisions
• Alignment with legal regulations and Universal Declaration of Human Rights

Scope: Applies to all managers throughout the EVN Group.

Group Policy on Occupational Safety

Key content/principles: Defines the basis for exacting standards in worker protection, including:

• Prevention of accidents as the overriding goal
• Provision of high-quality equipment
• Regular evaluations and training
• Level of worker protection that exceeds legal requirements

Scope: Applies throughout the EVN Group.

Monitoring implementation: Recording of identified risks and incidents based on requirements of an occupational safety system consistent with ISO 45001. Several subsidiaries in Bulgaria and Germany are certified under ISO 45001. Documentation includes actual accidents, "near-miss" incidents and potentially dangerous situations.

Group Policy "Engagement with Workers in the Value Chain"

Key content/principles: Guides procurement activities with binding principles:

• Compliance with legal requirements and international frameworks
• Responsibility for minimising impacts and risks for workers in the value chain
• Continuous improvement and active management
• Transparency and cooperation with business partners
• Risk-based analysis of impacts, risks and opportunities

Scope: Applies to all procurement activities throughout the EVN Group.

Public availability: Available at www.evn.at/policies_S2

Group Policy "Engagement with Affected Communities"

Key content/principles: Serves as a guideline for identifying, assessing and managing material impacts, risks and opportunities related to affected communities, including:

• Proactive, respectful and constructive dialogue with all affected communities
• Responsibility for conducting respectful, transparent dialogue on an equal basis
• Compliance with legal regulations and standards
• Active management through documentation and improvement of activities
• Continuous improvement to ensure fair involvement

Scope: Applies throughout the EVN Group to engagement with municipalities, neighbouring residents, citizens' initiatives, NGOs, and cultural/social minorities.

Public availability: Available at www.evn.at/policy_S3

Group Policy "Engagement with Customers"

Key content/principles: Defines principles for customer engagement, including:

• Management of impacts on customers in internal decision processes
• Regular survey of impacts, risks and opportunities
• Measures to minimise negative impacts on vulnerable customer groups

Scope: Applies to all customer-facing activities throughout the EVN Group.

Public availability: Available at www.evn.at/policy_S4

EVN Customer Promise and EVN Customer Charter

Key content/principles: Defines commitments to customers regarding service quality, reliability, and responsiveness to customer needs, expectations and concerns.

Scope: Applies to all customer service activities.

Public availability: Customer charter available at www.evn.at/fairness (German only)

Monitoring implementation: The content of the charter is reviewed and updated on a regular basis. Customer service is certified under ISO 18295-1, with reviews covering procedures, processes and training concepts.

Incidents of corruption or bribery

Confirmed incidents

EVN received nine reports on allegations of suspected corruption in 2023/24. The internal investigations confirmed the reported violations in two cases. They were not the subject of legal proceedings and, in both cases, led to the termination of the employment relationship for the involved employees. Internal and external measures were taken to prevent similar incidents in the future. In four of the reported cases, the investigations were still in progress as of 30 September 2024.

Convictions and fines

The two confirmed incidents were not the subject of legal proceedings. No information on convictions or fines was disclosed.

Disciplinary actions

In both confirmed cases of corruption violations, the employment relationship was terminated for the involved employees.

Contracts terminated

No contracts with business partners were terminated in 2023/24.

Investigation and speak-up procedures

EVN operates a whistle-blowing procedure accessible in multiple languages. The staff responsible for compliance issues investigates all reports – including anonymous submissions – quickly, independently and objectively. These investigations are confidential and follow a standardised procedure. The Chief Compliance Officer reports several times each year to the full Executive Board and to the Audit Committee of the Supervisory Board.

The Austrian Whistle-blower Protection Act took effect in August 2023 and provides protection for whistle-blowers from reprisals or other negative consequences. Protection measures include confidentiality for the identity of the reporting person. Similar legal protections are in place in Germany, Bulgaria, Croatia, and North Macedonia.

EVN's compliance management includes preventive measures such as internal behavioural guidelines, specific training programmes, dual control principles, separation of functions, and strict automated system-supported procedures for expense approval and documentation.

Political influence and lobbying activities

Political engagement approach

EVN's wide-ranging business activities play an important role in the functioning of public life and the economy. In order to meet these commitments as best as possible and in the interest of stakeholders, EVN is a member, on a voluntary or legally required basis, of numerous national and international organisations and interest groups.

Ethical standards and guidelines

All activities related to memberships in organisations and interest groups take place in agreement with the rules of conduct defined by EVN's compliance management system and the EVN Code of Conduct.

A separate business directive regulates sponsoring in the EVN Group and is designed to minimise potential compliance risks. At EVN, any form of sponsoring for political parties, campaigning parties and their related organisations as well as parliamentary clubs is excluded.

Political contributions

EVN maintains a strict policy excluding political contributions:

• No financial gifts – neither in the form of donations, loans, sponsoring, advance payments for services nor the purchase of tickets for fundraising events – were made on behalf of political parties
• Sponsoring for political parties, campaigning parties and their related organisations as well as parliamentary clubs is explicitly excluded by business directive
• EVN's responsibility towards the public in connection with regional roots is anchored in the mission statement, but sponsoring is only permitted for legal entities with domestic headquarters or for persons from the areas of art, culture, social issues and sports with a focus on Lower Austria or regions where EVN or a subsidiary is active

Trade association memberships

EVN is a member of numerous national and international organisations and interest groups. Examples of these memberships include:

• Oesterreichs Energie (industry association)
• Eurelectric (industry association)
• UN Global Compact (social and ecological initiative)
• respACT (social and ecological initiative)

The report does not disclose specific membership fees or contributions paid to these associations.

EU Transparency Register

In accordance with legal regulations, EVN is listed in:

• The Austrian lobbying and interest group register
• The transparency register of the European Union

For information on active memberships, see www.evn.at/memberships

Social engagement

Outside the scope of operating business, EVN participates in numerous social and cultural initiatives, including:

• EVN Social Fund: Annual endowment of approximately EUR 150,000, supporting institutions in Lower Austria working with children and adolescents. In 2023/24, the fund supported 22 projects with a total of EUR 132,500
• EVN School Service: Transfer of knowledge on careful energy use, energy efficiency and energy savings
• kabelplus school programme: Workshops on safe use of digital media
• EVN Junior Ranger Programme: Education on environmental topics
• evn collection: Platform for contemporary art founded in 1995

Payment practices

Standard contractual payment terms

Payment terms vary by country, whereby the maximum term of 30 days is generally not exceeded. Individual, shorter payment terms can also be agreed with smaller and mid-sized companies (SMEs) according to a recommendation issued by the EU Commission.

Standard procedure: Weekly payments that cover all invoices due in the previous week. This SAP-supported workflow prevents late payments.

Payment terms by business segment

Energy procurement (natural gas and electricity):

• Long-term bilateral supply contracts or futures contracts: Fixed payment on the 20th of the following month (in accordance with industry standard EFET)
• Swap transactions: Normally the fifth working day of the following month
• Futures contracts on energy exchanges: Daily financial settlement based on market price
• Short-term physical deliveries (SPOT transactions): Daily payments

Energy deliveries and network utilisation:

• Payment terms: Generally 14 days
• No significant financing component

Late payment and collection procedures

The EVN Group considers a financial asset to be in default when:

• Payment on trade receivables has not been received after a second reminder, or
• Insolvency proceedings are opened over a company or private person

The Group uses efficient receivables management and continuous monitoring of customer payment behaviour to minimise default risk.

Forward-looking provisions

In light of increasing insolvencies in Europe, the EVN Group recognised a EUR 5.1m (previous year: EUR 5.0m) higher impairment loss to trade receivables for the 2023/24 financial year via a forward-looking component to account for expected higher receivables defaults.