Fresenius

Management and Supervisory Structure

General Partner and Management Board

The general partner -- Fresenius Management SE -- is responsible for managing Fresenius SE & Co. KGaA and conducting its business. Fresenius Management SE is represented by the Management Board. The Management Board develops the corporate strategy, discusses it with the Supervisory Boards of Fresenius Management SE and Fresenius SE & Co. KGaA, and ensures its implementation.

The Management Board of Fresenius Management SE consists of five members:

• Chief Executive Officer
• Chief Financial Officer
• Management Board member responsible for Legal Affairs, Compliance, Risk Management, Sustainability, Human Resources (Labor Director), Corporate Audit, and for the Fresenius Vamed business segment
• Management Board member responsible for the Fresenius Kabi business segment
• Management Board member responsible for the Fresenius Helios business segment

The Chairman of the Management Board is responsible for general business policy, investment policy and Group Communication. The Group-wide topic of sustainability is anchored in the role of the Management Board member responsible for Legal Affairs, Compliance, Risk Management, Sustainability, Human Resources (Labor Director), Corporate Audit, and for the Fresenius Vamed business segment.

Supervisory Board of Fresenius SE & Co. KGaA

The Supervisory Board of Fresenius SE & Co. KGaA monitors the management by the general partner, Fresenius Management SE. The Supervisory Board consists of 12 members. Half of the members are elected by the Annual General Meeting. The employee representatives are elected by the European Works Council.

The Supervisory Board meets once every calendar quarter and must meet twice every half calendar year. The meetings are convened and chaired by the Chairman. The Supervisory Board decides by a simple majority of the votes participating in the resolution.

Committees

The Supervisory Board has formed two permanent committees:

• Audit Committee with five members: deals with the preliminary audit of annual financial statements, consolidated financial statements, monitors accounting, the risk management system, compliance management system, and internal audit system
• Nomination Committee with three members: proposes suitable persons to the Supervisory Board for election proposals to the Annual General Meeting for shareholder representatives

The Audit Committee members are Ms. Susanne Zeidler (Chairwoman), Mr. Bernd Behlert, Ms. Grit Genster, Mr. Wolfgang Kirsch, and Dr. Christoph Zindel. Mr. Wolfgang Kirsch was appointed as a financial expert in accounting, and Ms. Susanne Zeidler as a financial expert in auditing.

The Nomination Committee consists exclusively of shareholder representatives: Mr. Wolfgang Kirsch (Chairman), Mr. Michael Diekmann, and Ms. Susanne Zeidler.

Working Methods

The Management Board meets at least once a month. Resolutions are adopted by simple majority of votes cast. In case of a tie vote, the Chairman has the casting vote. The rules of procedure govern communication between the Management Board and Supervisory Boards.

Members of the Management Board are appointed for a maximum term of five years, with initial appointments typically for three years. A standard retirement age applies where Management Board members should generally retire at the end of the calendar year after reaching age 65.

Information and Sustainability Matters Addressed by Supervisory Bodies

Regular Information Flow

The Management Board of the general partner regularly informed the Supervisory Board in a timely and comprehensive oral and written manner about:

• All important matters relating to corporate policy
• The course of business
• Profitability
• The situation of the Company and of the Group
• Corporate strategy and planning
• The risk situation
• Risk management and compliance
• The work of Internal Audit
• Important business transactions

Meeting Structure and Frequency

The Supervisory Board of Fresenius SE & Co. KGaA convened for:

• Four regular meetings: March 7, May 17, October 17, and December 5, 2024
• One extraordinary meeting: September 3, 2024

All meetings were held in person. Before meetings, the Management Board provided detailed reports and comprehensive draft resolutions.

Key Topics Addressed in 2024

The Supervisory Board focused on:

• Strategic alignment of the Fresenius Group and its business segments as part of #FutureFresenius transformation
• Transformation of the Fresenius Group, including restructuring and divestment at Fresenius Vamed
• Cost reduction and efficiency improvement measures
• Cybersecurity
• Budget and medium-term planning
• Further development of corporate governance management systems (compliance, risk management, internal audit, and internal control systems)
• ESG strategy and sustainability matters

Sustainability Focus

At the December 5, 2024 meeting, an ESG expert appointed by the Audit Committee provided information about the work of the external Sustainability Committee. The Supervisory Board received comprehensive training on ESG topics with focus on CSRD and sustainability strategy, involving trainers from the Fresenius Sustainability Advisory Board.

Committee Work

Audit Committee (8 meetings in 2024) Focused on:

• Financial statement audits and sustainability reporting
• Risk management and internal control systems
• Compliance management
• Implementation of CSRD requirements
• Current and future regulatory requirements for sustainability reporting

Training and Development

Supervisory Board members independently undertake necessary training measures. In 2024, this included:

• Comprehensive ESG training focused on CSRD and sustainability strategy
• Training on hospital reform and regulatory changes
• Onboarding for new members including site visits
• Regular updates on relevant legal changes and IFRS standards

Integration of sustainability-related performance in incentive schemes

Overview

Sustainability is a material component of Fresenius' business strategy. The company has defined ESG targets for the Management Board as part of their compensation system to align the interests of employees, patients, climate and environmental issues with corporate ambitions.

Roles Covered

ESG targets apply to:

• Management Board members of Fresenius Management SE
• The compensation system is determined by the Supervisory Board of Fresenius Management SE
• The remuneration of the Supervisory Board does not include a variable component

Sustainability KPIs Tied to Remuneration

Fresenius has defined ESG targets in the following areas:

Short-Term Incentive (STI):

• Employee Engagement Index (EEI) (Fresenius Group)
• Medical Quality:
  • Audit & Inspection Score (Fresenius Kabi)
  • Inpatient Quality Indicators (Fresenius Helios)

Long-Term Incentive (LTI):

• Reduction of CO2 emissions: Total Scope 1 and Scope 2 CO2 emissions (market-based approach) in tons of CO2 equivalents (Fresenius Group)

Weighting and Structure

Short-Term Incentive (STI):

• Measurement period: 1 year
• ESG weighting: 15%
• Focus areas:
  • Medical quality (measured for two business segments)
  • Employee satisfaction (measured via Employee Engagement Index for the Group)

Long-Term Incentive (LTI):

• Measurement period: 4 years
• ESG weighting: 25% of target achievement
• Performance target: CO2e reduction
• The target range is aligned with Fresenius' long-term targets: by 2030, reduce Scope 1 and Scope 2 emissions by 50% compared to base year 2020, and achieve climate neutrality by 2040
• Emissions are calculated as CO2 equivalents and Scope 2 emissions on a market basis

Performance Targets and Thresholds

LTIP 2023 Structure:

The Long-Term Incentive Plan 2023 (LTIP 2023) has three differently weighted performance targets:

• Relative Total Shareholder Return (TSR) vs STOXX® Europe 600 Health Care Index: 50%
• Return on Invested Capital (ROIC): 25%
• ESG targets: 25%

ESG Target - CO2 Reduction (for 2024 and 2023 grants):

• 100% target achievement: actual CO2 reduction equals the defined percentage of CO2 emissions in the base year (2020)
• 50% target achievement: defined minimum threshold
• 250% target achievement: defined maximum threshold
• 0% target achievement: if actual CO2 reduction is less than the value specified for 50% target achievement

Target achievement is calculated by comparing:

• Actual CO2 reduction: reduction of CO2 emissions in t CO2 equivalents achieved in the relevant fiscal year compared to the previous year
• Planned CO2 reduction: defined percentage of CO2 emissions in the base year 2020

Alternative Calculation Method

If target achievement of 0% has been determined for at least one fiscal year of the performance period, the target achievement for the ESG target CO2 reduction can alternatively be determined uniformly for all fiscal years based on the average annual actual CO2 reduction compared to the average annual planned CO2 reduction for the entire performance period. In such cases, the target achievement corresponds uniformly to 25% of the total target achievement calculated for the performance period.

Overall Target Achievement Calculation

For LTIP 2023:

• Overall target achievement is calculated as the average of four annual target achievements
• Annual target achievements are equally weighted at 25% each
• Potential payout entitlement is limited to a maximum of 250% of the grant value

2024 Performance Results

In the reporting year, not all ESG targets for the Management Board were achieved. Achievement of at least 100% per target would have been required. The 2024 target achievement was:

• Employee Engagement Index (EEI): 76.5%
• Audit & Inspection Score: 116.7%
• Inpatient Quality Indicators: 141.9%
• Total Scope 1 and Scope 2 CO2 emissions (market-based approach) in tons of CO2 equivalents: 250%

ESG Target Selection Rationale

The targets reflect identified material sustainability aspects from the materiality analysis. In selecting the specific ESG targets, the company took into account:

• Requirements of investors and society
• Current market practice of most DAX companies
• Alignment with business strategy
• Measurability and transparency
• Integration within the governance structure

Governance and Approval

The compensation system for the Executive Board and its components are approved by the Supervisory Board. The Supervisory Board of Fresenius Management SE ensures that the compensation system is in line with the sustainable corporate strategy and takes into account the results of the materiality analysis in accordance with the Corporate Sustainability Reporting Directive (CSRD) when setting non-financial performance targets.

Audit Assurance

The indicators relevant for determining the annual target achievement in relation to the remuneration components for the Management Board are audited with reasonable assurance, as stated on page 407 in the independent practitioner's audit report.

Risk Management and Internal Controls Over Sustainability Reporting

Overall Risk Management Framework

Fresenius has a systematic risk management and control system that enables the Management Board to recognize risks and market trends at an early stage. The system comprises:

• Internal control system
• Early risk detection and risk management system
• Management of financial, operational, and strategic risks
• Quality management systems
• Compliance management systems
• Risk analysis in the context of investments and acquisitions

Sustainability Reporting Controls

The Audit Committee addressed sustainability reporting controls, focusing on:

• Current and future regulatory requirements implementation
• Validated data collection processes for sustainability metrics
• Implementation of EU CSRD Directive requirements
• Development of new risk area of environmental compliance

Risk Management Governance

The appropriateness and effectiveness of the risk management and control system is the responsibility of the Executive Board and is regularly reviewed by Internal Audit. The early risk detection system is subject to annual audit, where the auditor assesses whether the monitoring system is suitable for identifying risks that could jeopardize the continued existence of the Company.

Compliance Management Systems

Risk-oriented compliance management systems have been implemented in all business segments comprising three pillars:

1. Prevention: Risk identification and assessment, effective guidelines, appropriate processes, regular training, ongoing advice
2. Detection: Tools for early risk detection, internal control structures for cash and banking transactions, regular reviews through workshops and internal audits
3. Response: Whistleblower systems, anonymous reporting mechanisms, investigation and remediation procedures

Sustainability-Specific Controls

In 2024, specific focus was placed on:

• Establishment of new corporate function for data protection
• Implementation of human rights due diligence obligations at Fresenius Vamed
• Development of validated data collection processes for ESRS reporting
• Cybersecurity measures and controls

Audit and Assurance

The Sustainability Report for 2024 was subjected to formal and substantive audit by PwC:

• Remuneration-relevant key figures audited with reasonable assurance
• Other components audited with limited assurance
• Audit conducted in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised)

Findings from audits are incorporated into ongoing development of risk management and control systems.

Strategy, Business Model and Value Chain

Business Model

Fresenius is a global healthcare group focused on therapies for critically and chronically ill patients. The Group operates through focused platforms:

Fresenius Kabi - Essential medicines and medical devices

• Develops, produces and markets essential medicines and medical devices
• Focus areas: Biopharma, MedTech, and Clinical Nutrition
• Serves hospitals, outpatient facilities and home care

Fresenius Helios - Hospital operations and healthcare services

• One of Europe's leading private hospital chains
• Operates hospitals in Germany and Spain (Quirónsalud)
• Focus on high-quality patient care and digital healthcare solutions

#FutureFresenius Transformation Strategy

Launched at end of 2022, the program focuses on making Fresenius:

• More innovative
• More focused
• More efficient

The strategy centers on three platforms for future therapies:

1. Specialized (Bio)Pharma platform
2. Targeted MedTech platform
3. Holistic Care Provision platform

With combined market potential of up to €1 trillion and strong growth momentum.

Key Strategic Elements:

Innovation Focus:

• Biosimilar portfolio at Fresenius Kabi with pipeline of more than ten candidates
• Majority stake in mAbxience production and development platform
• AI applications in clinical practice
• Digital patient journey solutions

Operational Excellence:

• Continuous expansion of clinical nutrition products
• Investment in state-of-the-art production technologies
• More than 10,000 Ivenix Large Volume Pumps in use in the United States
• Digital hospital and patient platform Casiopea with over 7 million users

Geographic Focus:

• Strong presence in Germany, Spain, and United States
• Operations in more than 60 countries
• Focus on key international markets

Financial Performance 2024:

• Group revenue: €21.5 billion with 8% organic growth
• EBIT before special items: €2.5 billion (+10% in constant currency)
• Operating cash flow: €2.4 billion (+16%)
• Net debt reduction: ~€2 billion
• Leverage ratio: 3.0x (lowest in seven years)

Value Creation Strategy:

• Focus on sustainable value creation for all stakeholders
• Commitment to saving and improving lives
• Strong financial performance enabling strategic flexibility
• New dividend policy targeting 30-40% of core net income

Future Outlook:

• Enhanced margin targets for Fresenius Kabi: 16-18% (previously 14-17%)
• Lowered leverage target: 2.5-3.0x (previously 3.0-3.5x)
• Continued focus on innovation and patient care improvements

Interests and views of stakeholders

Identified key stakeholder groups

Fresenius is integrated into a diverse network of interest groups. The company presents its most important stakeholders in a graphic. The exchange with political institutions and external organizations takes place primarily in the areas of health and patient care.

In addition to these stakeholder groups, other third parties, such as patients' relatives, and professional groups that have a connection to our products and services, may also represent an important target group, depending on the circumstances.

Key stakeholder groups include:

• Own workforce (employees)
• Value chain workers
• Patients and customers
• Regulatory authorities
• Investors and analysts (due to stock market listing)
• Business partners
• Healthcare professionals
• Health insurers
• Societal security institutions
• Industry and interest groups

Stakeholder engagement channels and frequency

Organization of engagement

Stakeholder engagement is organized on a topic- and area-specific basis. Responsibility lies with the Group functions and the specialist functions of the business segments.

Corporate level:

• Corporate functions at Fresenius primarily focus on stakeholders who are relevant to the Group as a whole
• Fresenius SE & Co. KGaA is continuously in dialog with investors and analysts due to its stock market listing

Business segment level:

• Business segments actively engage with patients, employees, customers, and regulatory authorities

Engagement channels include:

• Regular communication with authorities
• Analysis of questions from shareholders at Annual General Meetings
• Findings from existing due diligence processes and risk assessments in the area of quality
• Criteria of ESG ratings highly relevant to the capital market
• Insights from informational needs of investors in collaboration with communication functions
• Scientific reports for environmental standards or internal specialist committees
• Internal employee satisfaction surveys
• Dialogs with employee representatives and works councils
• Patient and customer surveys

Participation in industry and interest groups

Employees contribute their expertise to national and international bodies, committees, and associations. The following initiatives and memberships are of particular strategic importance:

• AMRIA (Anti-microbial Resistance Industry Alliance) - Member: Fresenius Kabi
• BAH (German Medicines Manufacturers' Association) - Member: Fresenius SE & Co. KGaA
• BVMed (Business Association of the Medical Technology Industry) - Member: Fresenius SE & Co. KGaA, represented on the board by Fresenius Kabi; voluntary commitment to comply with the Code of Conduct
• DAI (Deutsches Aktieninstitut) - Member: Fresenius SE & Co. KGaA
• DIN (German Institute for Standardization) - Member: Fresenius Kabi
• DIRK (German Investor Relations Association) - Member: Fresenius SE & Co. KGaA
• econsense (Forum for Sustainable Development of German Business e.V.) - Member: Fresenius SE & Co. KGaA
• ENHA (The European Nutrition for Health Alliance) - Member: Fresenius Kabi
• IQM (Initiative Qualitätsmedizin) - Founding and board member: Fresenius Helios Germany; active management of expert committees; voluntary commitment to quality principles
• Medicines for Europe - Member: Fresenius Kabi; Commitment to the Code of Conduct
• MedTech Europe - Member: Fresenius SE & Co. KGaA; voluntary commitment to comply with the Code of Conduct
• Pro Generika - Member: Fresenius Kabi
• VCI (German Chemical Industry Association) - Member: Fresenius SE & Co. KGaA
• UN Global Compact - Member: Fresenius SE & Co. KGaA (since October 2024)

Fresenius is committed to observing the codes and principles associated with membership in various associations. The company discloses all contributions made to healthcare professionals in accordance with applicable disclosure requirements.

Integration of affected stakeholders

For the integration of affected stakeholders into operating activities, Fresenius considers:

• Regular communication with authorities
• Analysis of questions from shareholders at the last Annual General Meeting
• Findings from existing due diligence processes and risk assessments in the area of quality
• Criteria of ESG ratings highly relevant to the capital market
• Insights from informational needs of investors in collaboration with communication functions
• Scientific reports for environmental standards or internal specialist committees
• Internal employee satisfaction surveys
• Dialogs with employee representatives and works councils
• Patient and customer surveys

For stakeholders whose engagement is prescribed by regulation (e.g., drug approval), affected specialist functions must ensure that appropriate internal guidelines and controls are established.

Key concerns and views raised during the reporting period

In the reporting year 2024, the intensive exchange of ideas and experiences as part of the CSRD project led to comprehensive new insights and improved knowledge transfer within the company. The impacts, risks and opportunities in the topical standards were discussed jointly with various Group functions and the resulting perspectives were taken into account, e.g. for newly established processes.

Integration into strategy and business model

Target-group-specific exchange: The exchange in expert committees and direct interaction with stakeholders is target-group-specific and needs-based. This ensures that insights gained from discussions or other communication formats serve to improve reporting as well as external and internal communication. The company aims to maintain the already good reputation of the company and its business segments.

Integration process: Depending on materiality, results of stakeholder exchange can either be:

• Incorporated into existing communication and reporting formats, or
• Transferred into the strategic design of operational topics

This is done voluntarily. Mandatory adjustments result from external inspections or audits.

Inclusion of interests and viewpoints: The inclusion of the interests and viewpoints of the most important stakeholders is based on:

• Existing guidelines and controls
• Established information channels (e.g., patient surveys)
• Whistleblower systems

Material impacts reporting: If the positions and interests of affected stakeholders represent material positive or negative impacts, risks, or opportunities, these are documented in the internal process and control structure and communicated to the Management Board and the Supervisory Board in accordance with prescribed reporting processes.

Examples include:

• Regulatory and health policy trends
• Geopolitical changes

Fresenius comments on these at least once a year in its external reporting.

Distinction between affected stakeholders and users of sustainability information

The company differentiates between different stakeholder groups:

Affected stakeholders (those impacted by the business):

• Own workforce (employees)
• Patients and customers
• Value chain workers
• Healthcare professionals
• Communities
• Regulatory authorities

Users of sustainability information:

• Investors and analysts
• Shareholders
• Lenders and financial institutions

The company maintains continuous dialog with investors and analysts due to its stock market listing at Fresenius SE & Co. KGaA level. Insights from the informational needs of investors are gathered in collaboration with communication functions in the Group and operating companies.

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

Overview

The material impacts, risks, and opportunities (IROs) identified in the materiality analysis are described in the respective topical standards.

The identified IROs are related to our business model and have an impact on both people and the environment. In our own operations, the IROs arise, on the one hand, from the production processes and the associated upstream procurement processes. On the other hand, they affect consumers and end-users of our products or services, in particular patients that we treat in our own clinics or who use our products outside of our healthcare facilities. We also see effects on our workforce and those in the value chain. For this reason, we are also integrating the identified impacts, risks and opportunities into our business model and our Group strategy.

Key material impacts, risks and opportunities

Climate change (E1):

• Physical climate risks (floods, heavy rainfall, high temperatures) can interrupt operations and production in short-, medium-, and long-term
• Rising costs due to CO2 pricing and need for investments in new technologies present medium-term financial risks
• Transition opportunities through energy-efficient products and services can lead to medium-term market advantages
• Positive contribution to climate change mitigation through use of renewable energy, electrification and efficiency measures

Own workforce (S1):

• Actual positive impacts through fair wages, additional benefits, and good working conditions
• Potential short-term negative impacts on health and safety through accidents or illnesses from high workloads
• Poor working conditions can result in high sickness rates, employee turnover, and higher personnel costs (short- to medium-term financial risks)
• Good working conditions present financial opportunities in medium-term through long-term employment, low absentee rates, lower recruitment costs
• Positive public perception can strengthen employer brand

Workers in value chain (S2):

• Focus on compliance with labor-related rights in upstream value chain, particularly in countries/sectors with high human rights risk
• Potential negative impacts include discrimination, lack of occupational safety, violations of working time laws, withholding of wages
• Violations can result in reputational damage, impact on ratings, sanctions or penalties with financial impact
• Opportunities through transparent handling of risks and commitment to high standards

Consumers and end-users (S4):

Privacy (data protection):

• Actual positive impact through resilient data protection concept for patient data and company data
• Inadequate data protection, data breaches and leaks can have potential negative impact on patients and prevent effective healthcare delivery
• Short-term financial risks from non-compliance, sanctions, and compliance incidents

Health and safety:

• Actual positive impacts through high-quality clinical care and safe handling of medicines
• Potential negative impacts from individual incidents (low treatment quality, manufacturing issues, incorrect product use)
• Can result in short-term financial risks, impacts on health, long-term reputational damage
• High-quality care can shorten hospital stays, improve quality of life, and lead to efficient resource use

Access to products and services:

• Material topic identified in topical standard S4

Pollution (E2):

• Pharmaceutical manufacturing can result in losses of pollutants to air and water
• Antibiotic residues in wastewater from production and healthcare facilities
• Potential negative impact on environment and human health if thresholds exceeded

Water resources (E3):

• Increased water demand in production (cooling, sterilization processes) could contribute to water shortage in some regions (long-term)
• Healthcare facilities highly dependent on availability of drinking water from municipal supply

Resource use and circular economy (E5):

• Stringent safety and hygiene regulations result in high consumption of raw materials, products, packaging
• Potential negative impact on environment through resource depletion (short-term)
• Reduced impacts through bulk packaging, product design, and optimization of purchasing processes

Interaction with strategy and business model

Our business model and Group strategy are characterized by the necessity for sustainable action. In addition to actual impacts (e.g., change in job profiles due to digitalization), demographic change, associated change in disease patterns and future demands in healthcare markets are significant effects that could influence future business activities and value chain.

We integrate IROs into business model and strategy through:

• Regular risk assessments and monitoring as part of risk management
• Integration into strategic planning processes
• Defined targets and ambitions (e.g., climate neutrality by 2050)
• Dedicated governance structures and responsibilities
• Regular reporting to Management Board and Supervisory Board

The periods used are aligned with those for disclosure of key financial figures:

• Short (1-3 years): current budget period
• Medium (2030): projected budget period of 4-10 years, includes climate target for 2030
• Long (2050): planning horizon for climate targets up to 2040 and 2050

Time horizons by IRO category

• Physical climate risks: short-, medium-, and long-term
• Transition risks (CO2 pricing): medium to long-term (up to 2050)
• Workforce impacts: short- to medium-term
• Value chain human rights impacts: ongoing
• Data protection risks: short-term
• Patient health and safety: short-term (incidents) to long-term (reputation)

Financial effects

During the reporting year, there were no further events in connection with the identified impacts, risks and opportunities that led to material financial effects. No material adjustments to the assets and liabilities recognized in the associated financial statements are expected in the next reporting year either.

Resilience

Only by firmly integrating sustainability into our business strategy can we remain competitive and resilient in the long term while continuing to provide high-quality healthcare. The measures we take to address the identified IROs are explained in detail in the topic-specific sections of the environmental, social, and governance standards.

For climate resilience specifically, we conducted scenario analysis using IPCC scenarios (SSP1-2.6, SSP2-4.5, SSP5-8.5) and analyzed production sites and hospitals for physical and transition risks. We evaluated resilience of material locations taking into account existing or planned adaptation and mitigation measures.

We continuously review whether changes to our product and service portfolios are necessary and analyze risk-bearing assets, evaluating investment decisions for climate protection measures based on their effectiveness in achieving our goals.

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

Overall methodology

Fresenius' materiality analysis is based on the principle of double materiality and complies with the requirements of the ESRS. The aim is to identify the material impacts, risks, and opportunities (IROs) that arise in the company's own business and along its value chain. The sustainability aspects that are relevant for Fresenius and its stakeholders and the corresponding report content arise from this.

In line with the principle of double materiality, sustainability has been considered from two different perspectives:

• Impact materiality: includes all potential and actual positive and negative impacts of Fresenius' operations on stakeholders, including social and environmental impacts
• Financial materiality: includes all financial risks and opportunities that could affect Fresenius' future profitability due to sustainability aspects. This encompasses the financial performance, results of operations, cash flows, access to finance or cost of capital of Fresenius

A sustainability aspect fulfills the double materiality criterion if it is material from either or both perspectives.

Step-by-step process

The identification of the material sustainability aspects for Fresenius, according to the double materiality procedure, was carried out in a multi-stage process and is the responsibility of the Group Sustainability function. The company used the recommendations of the EFRAG Implementation Guidance and adapted them to the specific circumstances of Fresenius, except for one aspect, because the company considered the severity and relevance of material impacts each on a four-level scale.

Step 1: Selection of potentially relevant topics

In the first step, potentially relevant topics were selected based on:

• The sustainability topics defined in ESRS 1 in the categories of environment, social, and governance
• Fresenius-specific topics in accordance with ESRS 1 AR 16
• Topics specific to competitors
• Topics derived from previous sustainability reporting in the context of non-financial Group reports
• New regulatory requirements to establish reporting continuity in the material topics, including provisions of applicable SASB standards (Sustainability Accounting Standard Board) or requirements through Carbon Disclosure Project (CDP)

Step 2: Stakeholder definition and mapping

Relevant stakeholders and users of sustainability information were defined for the identified topics. In order to cover as many topics as possible, the company examined whether internal representatives, rather than external stakeholders (according to ESRS 1 AR 8), are better suited to bundle external stakeholder expectations and evaluate them for the analysis. The company selected experts with in-depth knowledge of both its own business area and the upstream and downstream value chain, who regularly interact with respective stakeholders as part of their jobs. A stakeholder matrix was used to take into account the perspectives and interests of the relevant stakeholders.

External stakeholders or affected communities were not directly involved. Consultations were conducted and various areas of the company were involved in the assessment through stakeholder mapping. No further consultations took place.

Step 3: Identification and assessment of IROs

In a series of workshops, the company identified and assessed:

• The negative and positive impacts of business activities on the environment and society
• The financial risks and opportunities for the relevant sustainability aspects

Both Fresenius' direct material IROs and those arising from direct and indirect business relationships in the upstream and/or downstream value chain were taken into account. The workshops were held at both the Group and business segment level.

Subsequently, the Group Sustainability function aggregated and evaluated the results to ensure that the interests of the affected stakeholders were sufficiently considered in the identification, assessment, and evaluation of the IROs.

Step 4: In-depth analysis (2024)

In 2024, the company conducted an in-depth analysis. The reason for this was the ongoing transformation of the company, which entails strategic and thus operational changes. The aim of the in-depth analysis was to compare the results of the materiality analysis with the corporate strategy and to map changes in the upstream and downstream value chain. Based on this analysis, impacts, risks, and opportunities were partially re-evaluated.

For example, the topics of health and safety and access to products were found to be material in the topical standard S4 Consumers and end-users. They are an integral part of the operating business and the corporate strategy. Therefore, the required information is presented in relation to the responsible Group or central functions as well as strategic KPI. Additional topics required in the topical standard were added based on their materiality.

Inputs to the assessment

Frameworks and standards:

• European Sustainability Reporting Standards (ESRS)
• EFRAG Implementation Guidance (adapted to Fresenius' specific circumstances)
• SASB standards (Sustainability Accounting Standard Board)
• Carbon Disclosure Project (CDP) requirements

Internal inputs:

• Previous sustainability reporting from non-financial Group reports
• Internal experts with in-depth knowledge of business areas and value chain
• Group Sustainability function
• Risk management (fully involved in the entire materiality process, including the subsequent evaluation in 2024)
• All Group functions with responsibility for material topics
• Insurance department (for climate scenario analysis)
• Employee representatives (informed in accordance with CSRD 2022/2464 section 19a (5))

External inputs:

• Competitor topic analysis
• Stakeholder expectations (via internal experts who regularly interact with stakeholders)

Note on stakeholder engagement: A stakeholder matrix was used, and consultations involved various areas of the company through stakeholder mapping. However, external stakeholders or affected communities were not directly involved.

Scoring criteria for impact materiality

To assess material impacts, severity level was determined in accordance with regulatory requirements. The severity of adverse impacts is assessed based on all three dimensions (according to ESRS 1 section 45):

• Extent: measures how severe the negative or positive impact is
• Scope: indicates how widespread the impact is
• Irreversibility: records the extent to which negative impacts can be mitigated and the effort involved in doing so

Positive impacts are only assessed based on extent and scope (irreversibility is not applicable).

The company has determined where the impacts occur in its value chain and distinguished between potential and actual impacts:

• Actual impacts: those that have already occurred or have not been remedied by missing or ineffective corrective measures
• Potential impacts: may possibly or conceivably occur in the short-, medium-, or long-term in the future, whereby the probability of occurrence within a 10-year period is also assessed

A severe impact such as a human rights violation is considered material.

Note on scoring scale: The company considered the severity and relevance of material impacts each on a four-level scale.

Scoring criteria for financial materiality

For financial materiality, the company assessed:

• Financial risks and opportunities that could affect future profitability
• Effects on financial performance, results of operations, cash flows, access to finance, or cost of capital

Climate-related financial risks (as an example of detailed financial materiality assessment):

Financial risks were evaluated based on:

• Scope of climate risks
• Duration of climate risks
• Extent of climate risks

Risks were tested in accordance with the approaches of the internal risk management system. If the risk was high to extreme and there was a business interruption that exceeded the threshold of the risk management system, the location was evaluated.

Threshold for materiality

A sustainability aspect fulfills the double materiality criterion if it is material from either or both perspectives (impact materiality or financial materiality).

For severe impacts such as human rights violations, materiality is considered established.

For climate-related financial risks, if the risk was high to extreme and there was a business interruption that exceeded the threshold of the risk management system, this triggered materiality.

Frequency and when last reviewed

The materiality analysis following ESRS requirements was conducted in 2023 as part of a Group-wide project to implement the requirements of the ESRS based on the Sustainability Reporting Directive (CSRD).

In 2024, the company conducted:

• An in-depth analysis to compare results with corporate strategy and map changes in the value chain
• A review where all Group functions with responsibility for material topics were asked about opportunities, future strategy, current developments, and stakeholder expectations
• A reevaluation of climate risk analysis to meet regulatory requirements

These findings in 2024 did not change the prioritization of topics but contributed to the addition of existing information in the report.

For 2025, an update of the double materiality analysis is planned.

Use of value chain mapping

Yes, value chain mapping was explicitly used in the process:

• The company took into account both Fresenius' direct material IROs and those arising from direct and indirect business relationships in the upstream and/or downstream value chain
• The company determined where the impacts occur in the value chain
• Experts with in-depth knowledge of both the company's own business area and the upstream and downstream value chain were selected
• The 2024 in-depth analysis aimed to map changes in the upstream and downstream value chain

Value chain considerations for climate analysis:

For climate-related impacts:

• The company's greenhouse gas accounting considers direct and indirect emissions (Scope 1 and 2) as well as indirect emissions in upstream and downstream value chains (Scope 3)
• Due to the large number of suppliers and limited overview of their production sites, relevant regions were modeled and analyzed using Scope 3 data
• Suppliers were evaluated equally according to regional allocation as they are located in similar regions as Fresenius' locations
• The upstream and downstream value chain was considered using an aggregated view in the scenario analysis
• A detailed assessment of the value chain was not possible due to the multiplicity of suppliers and the required exact location
• For pre-screening, EEIO-data from Scope 3 assessment was used where raw material sourcing per region is indicated

Integration with risk management

Risk management was fully involved in the entire materiality process, including the subsequent evaluation in 2024.

In 2024, the company reevaluated climate risks in the risk management system, adjusting:

• Time horizons
• Scenarios
• Risk classification
• Level of assessment

In the reporting period, no material non-financial risks were identified and reported in accordance with Sections 315c HGB in conjunction with Section 289c (3) No. 3 and 4 HGB taking into account mitigating risk management measures (net view), that are linked to business activities, business relationships, products or services and that are very likely to have or will have a severe negative impact on non-financial aspects or business activities.

Climate-specific process (E1 IRO-1)

As part of the double materiality analysis, the company analyzed its own operations as well as the upstream and downstream value chain for potential and actual impacts on climate change.

Basis for assessment:

• Greenhouse gas accounting based on the internationally recognized Greenhouse Gas (GHG) Protocol methodology
• Direct and indirect emissions (Scope 1 and 2)
• Indirect emissions in upstream and downstream value chains (Scope 3)
• Actual GHG emission sources reported in topical standard E1 Climate change, section E1-6
• Based on current operating model, alternative future GHG emission sources are not likely to occur as the company plans to continue operating in the healthcare sector

Climate scenario analysis:

Conducted by Group Sustainability in collaboration with the internal Insurance department and Risk Management, following the recommendations and risk catalogue of the Task Force on Climate-related Financial Disclosures (TCFD).

Production sites and hospitals were analyzed based on their geocoordinates, using an external tool to consider acute and chronic physical climate risks over different time horizons and scenarios. Climate-related hazards were identified varying by horizon, scenario and location, including:

• Temperature-related hazards
• Wind-related hazards
• Water-related acute and chronic climate hazards

The likelihood and magnitude were analyzed by the external tool; duration was selected per hazard.

IPCC scenarios analyzed:

Material locations for business activities were analyzed for the probability of climate risk occurring in different scenarios of the Intergovernmental Panel on Climate Change (IPCC) (see IPCC AR6 Report (2021)):

• SSP1-2.6: The optimistic social development path expects a limitation of global warming to 1.8°C by 2100 (best-case scenario)
• SSP2-4.5: With the business-as-usual scenario, a 2.7°C limit is expected by 2100
• SSP5-8.5: In the worst-case scenario, a temperature increase of 4.4°C by the end of the century is to be expected

By considering these three IPCC scenarios, the company has fully covered the extremes in the analysis to minimize uncertainties if the same results are achieved despite different assumptions.

Scenario drivers:

Depending on the respective scenario, different drivers were considered:

• Developments that affect regulation
• Energy industry
• Society
• Technology and innovation
• Climate-related investments

Drivers were selected based on business relevance, availability of information, and the aspiration to ensure a multifaceted view.

Time horizons:

Short-, medium-, and long-term time horizons were considered, aligned with those used for reporting key financial figures:

• Short (1-3 years): includes the current budget period
• Medium (2030): includes the projected budget period of 4 to 10 years and includes the climate target for 2030
• Long (2050): includes the planning horizon for climate targets up to 2040 and 2050 and the weighted average lifetime of buildings (20 years), machinery and equipment (13 years), and customer relationships (18 years)

Transition risk analysis:

The company's own business activities are affected by the risk of transition through higher pricing of greenhouse gas emissions. Sites currently covered by an emissions trading system were considered for assessment. Future availability and pricing of certificates were estimated. The risk was evaluated based on the Net Zero Emissions by 2050 Scenario (NZE) of the International Energy Agency (IEA). According to the IEA, the NZE is the only scenario that will limit global warming to 1.5°C by 2050. The analysis is based on a long-term time horizon up to 2050 and a medium-term horizon up to 2030.

Resilience analysis:

In conjunction with the scenario analysis, resilience analysis was used to analyze how resilient the company's strategy and business model are in terms of physical and transition climate risks. In 2024, production sites and hospitals were evaluated in various scenarios and time horizons. Material locations were analyzed in terms of their resilience, taking into account existing or planned adaptation and mitigation measures.

The upstream and downstream value chain was considered using an aggregated view. The resilience analysis was limited to the company's own operations and not conducted for the up- and downstream value chain due to limited available information on location and adapting and mitigating measures in place.

Consistency assessment:

No business activities have been identified as being inconsistent with the transition to a carbon-neutral economy. However, investments are needed to contribute to this transition.

Transition plan for climate change mitigation

Scope and coverage

The transition plan encompasses all financially consolidated units of Fresenius SE & Co. KGaA, covering the entire value chain (Scope 1 to 3) for the net zero 2050 target.

Net zero targets and milestones

Target years:

• 2030: Reduce all Scope 1 and Scope 2 emissions in absolute value by 50% (gross), compared to the base year 2020
• 2040: Climate neutrality across the Group - reduce absolute value of Scope 1 and Scope 2 emissions by 100% compared to base year 2020
  • Eliminate all avoidable CO₂e emissions (at least 90% gross reduction)
  • Offset unavoidable emissions (maximum 10%) through measures to reduce or permanently remove CO₂
• 2050: Net zero along the entire value chain (Scope 1 to 3)
  • Eliminate all avoidable CO₂e emissions (at least 90% gross reduction)
  • Offset unavoidable emissions (maximum 10%) through measures to permanently remove CO₂

Base year: 2020

Progress to date: Since 2020, Fresenius has reduced 27.2% of Scope 1 and Scope 2 emissions, which is in line with climate targets.

Scope breakdown: Of the total amount to be reduced by 2030, around 47% relates to Scope 1 emissions and around 53% relates to Scope 2 emissions.

Paris alignment and SBTi validation

The climate targets are in line with the scientific goal of the Paris Climate Agreement to limit global warming to 1.5°C. The target to reduce Scope 1 and 2 emissions by 2030 is guided by the criteria for near-term targets defined by the Science Based Targets initiative (SBTi). The SBTi cross-sector decarbonization path was used as a guideline for setting the targets; it aims at achieving a reduction of at least 48% by 2030.

Note: The targets are not externally audited by SBTi.

Key decarbonization levers

Fresenius has identified five central decarbonization levers:

1. Expansion of renewable energies: Gradually increase the purchase of electricity from renewable energy sources, electrify processes or replace them with climate-neutral alternatives. By 2030, obtain as much electricity as possible from renewable sources in addition to generating it using photovoltaic systems. Electricity consumption resulting from company growth up to 2040 and 2050 will also come from green electricity sources.

2. Increasing energy efficiency: Measure the performance of relevant energy consumers and compare them with more energy-efficient systems. On this basis, optimizations, renovations or conversions shall take place.

3. Fuel, technology and process change: Replace energy sources with renewable alternatives such as biofuels, or convert the technology for example to heat pumps and hydrogen.

4. Electrification of the vehicle fleet: Replace inefficient and high-carbon vehicles with electric alternatives and expand the necessary charging infrastructure.

5. CO₂ capture and storage (carbon capture and storage): Offset emissions that cannot be avoided using the levers described above. Continuously evaluating which technologies are suitable for carbon capture and storage.

Actions and measures implemented

Renewable energy:

• In 2024, purchased around 853,194 MWh of electricity from renewable energy sources
• Fresenius Kabi equipped four further production sites with photovoltaic systems in the reporting year
• Photovoltaic systems now in operation at a total of 15 sites, with more planned
• Pilot projects planned in hospitals to generate electricity at other locations

Energy efficiency:

• Helios Germany drew up a 100-point checklist in 2022 to help clinics identify potential energy savings; implementation continued in the reporting year
• Improved system monitoring to early identify inefficiencies in HVAC systems and lighting
• Optimized use of HVAC units through monitoring processes and technical changes
• Replaced technology and pumps, reused condensate and energy, optimized steam consumption, leakage control and system design of compressed air
• Improved performance of cooled and heated machines by refurbishing or replacing with newer appliances
• Additional insulation of buildings and technology (e.g. pipes and valves)

Process changes:

• Continued work on replacing or recycling anaesthetic gases in hospitals with more environmentally friendly gases
• Reduced fugitive emissions and replaced with lower CO₂ alternatives
• Projects implemented at production sites to reduce steam consumption and install heat pumps

Vehicle electrification:

• Fresenius Kabi started to replace both additional vehicles and tractors in plant traffic with electric alternatives
• Expanding availability of charging stations at sites

Technology and monitoring:

• Introduced process monitoring and control systems at sites to better manage consumption, improve data quality and identify inefficient processes and machines
• Replaced machines (e.g. compressors, motors, pumps) with more efficient and lower-emission alternatives

Financial resources

The measures implemented did not require significant additional financial or human resources beyond the regular budget processes.

Locked-in emissions and stranded assets

Fresenius has evaluated its most important assets and products and the associated locked-in GHG emissions. There are locked-in greenhouse gas emissions in assets and products, but they can be reduced. By continuously reducing the emissions through targeted measures at sites and buildings, the carbon footprint of products is also reduced. These have been taken into account in the planned path to achieving the climate target. A significant change in the future emissions to be reduced is not expected from the potential locked-in GHG emissions.

The effects of growth and acquisitions on emissions are also taken into account in target achievement. The emissions of assets are partly associated with transitional risks: due to future regulation such as CO₂ pricing, such emissions can have a financial impact. However, it is not currently foreseeable that this would jeopardize the achievement of climate targets.

Fresenius did not invest any significant amounts of CapEx in connection with economic activities related to the coal, oil or gas sectors. Fresenius is excluded from the EU Paris-aligned Benchmarks (Article 12.1 in EU 2020/1818).

Carbon credits and removals

Fresenius currently does not carry out any activities to reduce greenhouse gases via carbon removal, carbon storage or carbon credits.

For the targets of climate neutrality by 2040 and net zero by 2050, Fresenius wants to reduce all emissions as far as possible by means of measures within its own business activities as well as the upstream and downstream value chain as a first step. Only subsequently, in a second step, activities for the reduction (carbon credits) or permanent removal of CO₂ will be considered in order to offset unavoidable emissions. A maximum of 10% of emissions will be neutralized through reduction or removal and storage activities within and outside the company's own business activities and the upstream and downstream value chain.

Transition plan integration and governance

The transition plan is integrated into the general business strategy as well as the overall financial planning. The responsible management committees approve the components of the transition plan, such as measures and projects, as part of the budget planning process. The climate target has been approved by the Management Board of Fresenius.

CO₂ reduction is included as an ESG criterion in the long-term variable Management Board compensation (long-term incentive - LTI) at a rate of 25%. The assessment period is four years and the target corridor for CO₂ reduction is aligned with Fresenius' Group-wide climate targets.

Resilience and risks

External circumstances can affect timely achievement of the emissions reduction target:

• New technologies such as industrial electricity storage or batteries for renewable energies are available to some extent, but not yet always scalable or may be associated with high costs
• Rare earth elements are increasingly being used in new technologies, and may be limited in availability
• Increasing electrification and demand for green energy may negatively impact availability and existing infrastructure
• Global developments such as economic crises, natural disasters, pandemics, international tensions, and regulatory uncertainty could delay or prevent the achievement of targets

To counteract this, Fresenius tries to adapt measures to the respective situation at an early stage if necessary, thus adhering to planned reduction paths.

Transition risks are taken into account as part of the annual risk assessment. If this results in necessary countermeasures, these will be implemented accordingly and explained in future reporting.

Policies related to climate change mitigation and adaptation

Environmental Policy

Fresenius has implemented a Group-wide Environmental Policy that addresses climate change mitigation, climate change adaptation, and energy consumption.

Scope:

• Applies across the Group to all business segments
• Applies to the company's own workforce and third parties who work at Fresenius locations
• Extends expectations to the upstream and downstream value chain, with business partners expected to support Fresenius' environmental approach and comply with requirements in relevant documents

Approval and oversight:

• Reviewed and approved by the Fresenius Management Board
• The Management Board member responsible for Legal, Compliance, Risk Management, Sustainability, Human Resources (Labour Relations Director), and Corporate Audit as well as the business segment Fresenius Vamed (Sustainability Board member) is responsible for steering strategic Group-wide guidelines on environmental protection
• The management of the business segments are responsible for operational management and define the management approaches

Key content and principles:

• Demonstrates principles of sound environmental management practices
• Provides an overview of priorities in environmental protection including: climate protection, water, as well as resources and circular economy
• Commits to implementing measures tailored to defined impacts, risks, and opportunities
• Aims to increase energy efficiency and the use of renewable energies
• Supports the responsible use of water and compliance with legally applicable regulations for wastewater
• Commits to efficient use of resources and the use of sustainably sourced, renewable and recycled materials as alternatives to new raw materials
• Supports the transition to a circular economy
• Commits to complying with respective legal guidelines and threshold limits at sites
• Defines procedures to avoid environmental incidents by established preventative processes

Public availability:

• Published on the corporate website www.fresenius.com

Links to international standards:

• The ISO 14001 standard provides a common basis for environmental management systems
• The ISO 50001 standard is used for energy management
• Environmental commitment is reviewed by external partners and regulatory bodies
• Fresenius is expanding the number of sites certified according to ISO 14001 and ISO 50001

Monitoring implementation:

• Management manuals and standard operating procedures provide the framework for local environmental and energy management systems
• Detailed checklists for evaluating environmental protection measures and forms for assessing environmental risks
• Effectiveness verified through internal and independent audits
• External certification audits carried out according to a multi-site procedure, with a representative sample of locations audited annually
• In 2024, prescribed audits were carried out in business segments with no systematic deviations identified
• Each business segment has functions that monitor and control respective environmental impacts
• These functions analyze environmentally relevant vulnerabilities, develop suitable standard procedures, and implement appropriate measures
• Relevant environmental data (such as consumption) is reported regularly (e.g. quarterly) to the responsible central function for performance control
• If significant deviations from previous performance occur, specialists initiate an analysis and implement corrective or preventive actions where necessary

Actions and resources in relation to climate change policies

Overall approach

The main focus in the reporting year was on:

• Energy saving and efficiency
• Process changes
• Conversion to green electricity
• Reduction of corresponding CO2 equivalents (CO2e) emissions

Measures are implemented in the reporting year, currently being implemented, or planned and included in budget planning until 2027. The measures only include own operations. In line with the Environmental Policy, measures contribute to reducing carbon footprint and help achieve Group climate targets.

Note: The measures listed did not require significant additional financial or human resources beyond the regular budget processes.

Financial and emission reduction resources allocated

¹ Mainly reduction by means of Scope 2 emissions.

Action 1: Renewable energy procurement and generation

Description: Procurement of renewable energy from external suppliers and self-generation using photovoltaic systems and biomass.

Scope: Own operations

Time horizon:

• Target: By 2030, obtain as much electricity as possible from renewable sources
• Long-term: Electricity consumption resulting from company growth up to 2040 and 2050 will also come from green electricity sources

Activities in 2024:

• Purchased around 853,194 MWh of electricity from renewable energy sources
• Use of energy from photovoltaic and biomass plants, thermal and electrical cogeneration, and pellet boilers
• Purchased carbon-neutral and low-carbon electricity, district heating and district cooling
• Fresenius Kabi equipped four further production sites with photovoltaic systems (total of 15 sites now operational)
• Planned pilot projects in hospitals to generate electricity at other locations

Method: Energy flow contracts or energy attribute certificates (EACs)

Action 2: Energy efficiency improvements in buildings and processes

Description: Improved system monitoring to identify inefficiencies in energy use of heating, ventilation and air conditioning (HVAC) systems and lighting.

Scope: Own operations

Time horizon: Ongoing (reporting year and future)

Activities:

• Measure performance of relevant energy consumers
• Compare with more energy-efficient systems
• Form basis for decisions on retrofitting
• Ensure uninterrupted energy supply as top priority for patient safety and reliable production

Action 3: 100-point energy savings checklist (Helios Germany)

Description: Checklist to help clinics identify potential energy savings.

Scope: Own operations (hospital segment)

Time horizon: Started 2022, continued in reporting year

Activities:

• Analysis and optimization of building heating and ventilation systems
• Implementation of 100-point checklist continued in reporting year
• Further reduced energy consumption

Action 4: Anaesthetic gas replacement and recycling

Description: Replacement or recycling of anaesthetic gases with more environmentally friendly alternatives.

Scope: Own operations (hospitals)

Time horizon: Ongoing (reporting year and future)

Rationale: Anaesthetic gases released into outside air via exhaust air systems are more harmful to climate than CO2 and cause a relevant part of GHG emissions in hospitals.

Activities:

• Continued work on replacing or recycling anaesthetic gases in hospitals with more environmentally friendly gases
• Reduce fugitive emissions and replace with lower CO2 alternatives

Action 5: Production site projects

Description: Projects being implemented at production sites (specific details not provided in excerpt).

Scope: Own operations

Link to targets: All measures contribute to achieving Group climate targets for 2030 (50% reduction in Scope 1 and Scope 2 emissions) and climate neutrality by 2040 and net zero by 2050.

Governance and monitoring

• Emissions figures reviewed quarterly
• Progress monitored compared to base year and target year
• Annual reduction steps evaluated
• Deviations evaluated and countermeasures taken if necessary
• Current progress in line with planning
• Since 2020, effectively reduced emissions through decarbonization levers

Targets related to climate change mitigation and adaptation

Fresenius has set the following climate targets aligned with the Paris Agreement goal to limit global warming to 1.5°C:

Climate Targets Overview

Target Details

Scope 1 & 2 Emission Reduction Target (2030):

• Target: Reduce absolute Scope 1 and Scope 2 emissions by 50% by 2030 compared to 2020 baseline
• Baseline year: 2020
• Baseline value: 708,364 t CO₂e (Scope 1 and 2 market-based)
• Target year: 2030
• Target value: 354,182 t CO₂e (50% reduction)
• Scope: Own operations (Scope 1 and Scope 2, market-based approach)
• Type: Absolute reduction
• Validation: Guided by SBTi criteria for near-term targets (at least 48% reduction); not externally audited by SBTi
• Progress: 515,966 t CO₂e in 2024, representing 27.2% reduction from baseline
• Note: Of the total reduction, approximately 47% relates to Scope 1 emissions and 53% relates to Scope 2 emissions

Climate Neutrality Target (2040):

• Target: Achieve climate neutrality (100% reduction) across the Group by 2040
• Baseline year: 2020
• Baseline value: 708,364 t CO₂e (Scope 1 and 2 market-based)
• Target year: 2040
• Scope: Own operations (Scope 1 and Scope 2, market-based approach)
• Type: Absolute reduction
• Approach: At least 90% gross reduction; maximum 10% offset through measures to reduce or permanently remove CO₂
• Validation: Aligned with Paris Agreement 1.5°C goal
• Progress: 27.2% reduction achieved by 2024

Net Zero Target (2050):

• Target: Achieve net zero along the entire value chain by 2050
• Baseline year: 2020
• Target year: 2050
• Scope: Scope 1, Scope 2, and material Scope 3 emissions (entire value chain)
• Type: Absolute reduction
• Approach: At least 90% gross reduction of all avoidable CO₂e emissions; maximum 10% offset for unavoidable emissions through permanent CO₂ removal measures
• Validation: Aligned with Paris Agreement 1.5°C goal
• Note: Scope 3 emissions first reported for fiscal year 2023 (3,683,377 t CO₂e in 2024)

Water Reduction Target (2030):

• Target: Reduce process water withdrawal of production facilities in areas of high water stress by 20% (absolute) by 2030
• Baseline year: 2023
• Baseline value: 3,313,000 m³
• Target year: 2030
• Scope: Production facilities located in areas of high water stress
• Type: Absolute reduction
• Validation: Internal voluntary target
• Progress: Newly set in reporting year; measurement to begin in 2025 reporting year

ESG Integration in Compensation

CO₂ reduction is included as an ESG criterion in the long-term variable Management Board compensation (LTI) at a rate of 25%. The assessment period is four years and the target corridor for CO₂ reduction is aligned with Fresenius' Group-wide climate targets.

Decarbonization Levers

Fresenius has identified five central decarbonization levers:

1. Expansion of renewable energies
2. Increasing energy efficiency
3. Fuel, technology and process change
4. Electrification of the vehicle fleet
5. CO₂ capture and storage (for unavoidable emissions)

Financial Resources

Total amount of future financial resources allocated to transition plan (2025-2027): Low double-digit million euro amount (mainly reduction by means of Scope 2 emissions).

Energy consumption and mix

Total energy consumption

In 2024, Fresenius consumed a total of 3,090,443 MWh of energy. The main energy sources were gas and electricity.

Energy consumption by source

Energy consumption in high climate impact sectors

Fresenius Kabi (manufacturing of pharmaceutical goods) reported:

• Total energy consumption from activities in high climate impact sectors: 1,771,418 MWh (2024)
• Energy intensity: 206 MWh per €1 million revenue (2024)

Type of renewable energy contractual instruments (2024)

Note: Bundled renewable energy certificates include energy purchased together with physical electricity in the same contract (guarantees of origin, green electricity tariffs, power purchase agreements). Unbundled renewable energy certificates describe energy property claims purchased from third parties who do not provide the physical energy (purchased guarantees of origin). Percentages are set in relation to energy consumption on which Scope 2 emissions are based.

Methodology and scope

For fossil energy consumption, amounts were summed according to energy sources (natural gas, diesel, LNG) based on measurement counters, invoices or estimates. Individual energy sources were determined based on amount consumed and gross calorific value. Data was converted to lower heating value (LHV) for presentation. Where data was unavailable, energy consumption was extrapolated using reference values. Outpatient clinics, offices, R&D sites, locations with unavailable data, and corporate employees outside Bad Homburg were estimated based on data collected at the Bad Homburg site per FTE. Fresenius Vamed rehabilitation clinics were estimated based on previous year's data.

Nuclear share of electricity and heating in the upstream supply chain was calculated proportionately for each country using IEA database statistics. For steam and district cooling, nuclear share was evaluated based on individual production sites and calculated proportionally.

For renewable energy consumption, amounts were totaled according to renewable energy sources (biomass pellets, biogas). Individual sources were determined based on amount consumed and gross calorific value. Purchased green electricity certificates were taken into account. When green electricity claims are received from national grid consumption, the last available evidence was used (in some cases from the previous year). Data was converted to LHV for presentation.

Sites with ISO 50001 certification are audited by external auditors (e.g., MSzert or TÜV).

Gross Scopes 1, 2, 3 and Total GHG emissions

Scope 1 and Scope 2 GHG emissions

Fresenius reports Scope 1 and Scope 2 greenhouse gas emissions in tons of CO₂ equivalents (tCO₂e). The company has set climate targets to reduce absolute Scope 1 and Scope 2 emissions by 50% by 2030 compared to 2020 levels, and to achieve climate neutrality by 2040. Scope 2 emissions are reported on a market-based approach. The company also aims to become net zero along the entire value chain by 2050, including material Scope 3 emissions.

Scope 1 and Scope 2 emissions (market-based approach):

*This indicator is audited with reasonable assurance.

Reporting scope and methodology:

• Emissions are calculated as CO₂ equivalents.
• Scope 2 emissions are reported on a market basis.
• The reduction target of 27% in 2024 compared to the 2020 base year is mentioned in the corporate governance section.
• Fresenius Kabi, Fresenius Helios, and other consolidated entities are included unless otherwise stated.
• Scope 1: Direct emissions from operations.
• Scope 2: Indirect emissions from purchased energy.

Scope 3 GHG emissions

Fresenius began reporting Scope 3 emissions for fiscal year 2023. The company aims to become net zero along the entire value chain by 2050, which includes material Scope 3 emissions. Detailed Scope 3 data by GHG Protocol category is referenced as initially reported for 2023, with further detail expected in the Sustainability Report (pages 196 ff.).

Scope 3 emissions:

The report notes that Scope 3 data models were used for calculation and that material Scope 3 emissions are included in the 2050 net zero ambition. Specific GHG Protocol categories are not disaggregated in the excerpts provided, but reference is made to pages 196 ff. for detailed Scope 3 methodology and category-level data.

Total GHG emissions and intensity

Total GHG emissions (Scope 1 + 2 + 3) are not explicitly summed in the excerpts provided. The company focuses on Scope 1 and Scope 2 reductions in its near-term targets (2030, 2040) and includes Scope 3 in its long-term net zero commitment (2050).

GHG intensity:

No specific GHG intensity metric (e.g. tCO₂e per million € revenue) is disclosed in the excerpts provided.

Regulated emissions and biogenic CO₂

No information on regulated emissions (e.g. EU ETS) or biogenic CO₂ emissions is disclosed in the excerpts provided.

Audited indicators

The following indicator is audited with reasonable assurance:

• Total Scope 1 and Scope 2 CO₂ emissions (market-based approach) in tons of CO₂ equivalents (Fresenius Group)

Notes on methodology and scope

• Emissions calculations follow established Scope 3 data models.
• The company uses CO₂ equivalents for all greenhouse gas reporting.
• Market-based approach is used for Scope 2.
• ESG ambitions encompass consolidated entities and the Group's products and services unless otherwise specified.
• Detailed methodology for Scope 3 is referenced on pages 196 ff. of the Sustainability Report.
• The company has integrated climate targets into Management Board compensation (Long-Term Incentive component with 25% weighting on CO₂e reduction).

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

Phase-in Exemption

Fresenius has elected to utilize the phase-in option for ESRS E1-9 disclosure requirements in the current reporting period.

The following specific data points under E1-9 are subject to the phase-in option:

• Data point 66: Exposure of the benchmark portfolio to climate-related physical risks
• Data points 66a, c: Disaggregation of monetary amounts by acute and chronic physical risk / Location of significant assets at material physical risk
• Data point 67c: Breakdown of the carrying value of its real estate assets by energy-efficiency classes
• Data point 69: Degree of exposure of the portfolio to climate-related opportunities

As permitted under the ESRS framework, quantified financial effects from material physical and transition risks and potential climate-related opportunities are not disclosed for the first reporting year.

Policies related to own workforce

Fresenius has implemented several policies related to its own workforce, anchored in internationally recognized human rights and labor standards.

Fresenius Code of Conduct

Scope: All employees within the Company and towards external partners and the public. All business segments of Fresenius have also implemented their own codes of conduct that reflect the principles of the Fresenius Code of Conduct and cover the special features of the respective business activities.

Governance: The basic rules of corporate governance can be found in the Fresenius Code of Conduct. The Management Board of the general partner has adopted the Code.

Key principles: The Code contains the key principles for conduct within the Company. It expresses steadfast commitment to adhering to statutory regulations, internal guidelines, and voluntary commitments, as well as acting in accordance with ethical standards. The Code promotes equal opportunities and is practiced throughout the Fresenius Group. The company consciously opposes discrimination of any kind. These values are firmly anchored in the Code of Conduct. Acting ethically and responsibly is part of corporate responsibility, including respecting internationally recognized human rights, social standards, and ethical principles.

Public availability: The Fresenius Code of Conduct can be viewed on the website at www.fresenius.com/compliance.

Link to international standards: The Code is aligned with recognized international regulations including:

• Universal Declaration of Human Rights
• United Nations Guiding Principles on Business and Human Rights (UNGPs)
• International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work
• OECD Guidelines for Multinational Enterprises
• German Corporate Governance Code
• UN Global Compact (signatory since October 2024)

Monitoring: Violations are not to be tolerated. If a violation is detected, Fresenius performs an investigation, initiates the necessary remediation measures, and imposes sanctions if applicable. The Code of Conduct applicable to the respective business segment is basis for all employment contracts and available to the employees.

Group Policy on Social and Labor Standards

Scope: All business segments of the Fresenius Group. The policy also applies to third parties such as contractors, consultants, suppliers, and intermediaries, as well as other business partners, who are required to comply with this policy and to apply comparable social and labor standards for all employees in their own operations, including their supply chains.

Implementation date: Implemented in 2023.

Key principles: The guideline describes global social and labor law minimum standards. Lower standards are not acceptable. Should national laws or practices restrict or contradict the standards set out in this policy, Fresenius will nevertheless apply the policy to the extent permitted by local laws.

Link to international standards: Group Policy is based on internationally recognized human and labor rights, namely:

• Universal Declaration of Human Rights
• International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights
• ILO Fundamental Conventions (including freedom of association, right to collective bargaining, elimination of child labor, forced labor, and discrimination)

Monitoring: The participating functions Global HR, Labor Relations, and the Human Rights Office consulted with other relevant departments to help design the content of the policy. The requirements of various stakeholder groups, e.g. employee representatives, were considered in the development of the guideline.

Workplace Accident Prevention Policy / Occupational Health and Safety Management System

Scope: Own workforce. Temporary workers deployed in the business segments are also subject to respective local regulations and laws.

Key principles: The Fresenius Code of Conduct stipulates that the company takes the necessary measures to protect employees and prevent work-related accidents and illnesses. Creating a safe and healthy working environment is a priority. When it comes to health protection, prevention is the basic principle. The company provides employees with comprehensive programs to promote their health and prevent work-related illnesses.

Standards and certifications: Internal requirements are supplemented by internationally recognized standards for management systems such as ISO 45001 at some locations as well as other certifications in accordance with ISO or national standards. The overarching aim of the ISO 45001 management system is to continuously improve occupational health and safety management, align it with internationally recognized methods and ensure the effectiveness of existing procedures and systems.

Governance: Responsibility and control for occupational health and safety lies with the respective Management bodies, committees, or management functions of the business segments and is anchored in the local organizations. The Management Board members responsible for the business segments are responsible for operational management. Occupational safety specialists in the business segments provide advice and support on all matters relating to occupational health and safety.

Monitoring: ISO 45001-certified sites as well as all clinics, subsidiaries, and service companies of Fresenius Helios in Germany have an occupational health and safety committee. At their regular (e.g. quarterly) meetings, these committees discuss identified risks and possible measures and review the effectiveness of the defined measures. The Management Board is informed about occupational health and safety as part of risk reporting. The Supervisory Board as a body is informed of the results at least once a year. The management system of production facilities is audited and certified annually by TÜV Rheinland, for example.

Diversity Charter (Germany)

Scope: Operations in Germany.

Key principles: Fresenius signed the Diversity Charter in Germany. In doing so, the healthcare Group sent a visible signal of support for diversity and inclusion within its own company. The aim of the initiative is to promote the recognition, appreciation, and inclusion of diversity in the world of work in Germany.

Governance: At Group level, the Sustainability Board member is responsible for managing strategic Group-wide projects for equal treatment and opportunities for all. The Management of the business segments shape their management approaches and regulate responsibility for equal treatment and opportunities for all. As part of the new global HR function, the Talent & Leadership department is responsible for equal treatment and opportunities among in human resources.

Equality Plans (Spain)

Scope: Certain locations where required by national law.

Key principles: At some locations, Fresenius is required by national law to draw up equality plans to promote equal opportunities, create pay transparency between men and women, and guarantee non-discrimination in the workplace.

Coverage: In 2024, around 70% of employees at Helios Spain were covered by equality plans.

Binding Corporate Rules (BCRs) for Data Protection

Scope: Fresenius Corporate (Fresenius Management SE, Fresenius SE & Co. KGaA and all affiliates in the reporting segment Fresenius Group) and Fresenius Kabi (entities directly or indirectly controlled by Fresenius Kabi AG).

Key principles: BCRs have been established as the compliant data transfer mechanism for EU personal data transfers to third countries. BCRs ensure that participating companies establish a uniform level of data protection aligned with the EU-GDPR standards and contribute to the lawful processing of personal data internationally within the companies.

Governance: At the Fresenius corporate level, the Sustainability Board member is accountable for data protection. The Data Protection Officer of Fresenius SE & Co. KGaA reports directly to this person. In 2024, the Group function Data Protection was introduced, headed by the Group Head of Data Protection. Business segment Heads of Data Protection were also established.

Monitoring: The Group and all business segments maintain data protection organizations including independent Data Protection Experts. Data Protection Experts perform regular specific data protection audits. Internal Audit departments perform independent audits to enhance the effectiveness of risk management, control, and governance processes in all business segments, with data protection aspects taken into account based on risk.

Taking action on material impacts on own workforce

Safety Compliance Management System (Safety CMS)

Action description: Introduction of a Group-wide Safety CMS designed at Group, segment, and site level to improve health and safety of employees and other people (e.g. patients). The system covers safety topics beyond fire protection risks.

Scope: Own operations (Group-wide)

Time horizon:

• Short-term: Implementation to begin with introduction of Safety Policy in 2025
• Initial assessment conducted in 2024

Resources allocated:

• 2024: ~€1 million (OpEx) for external advisory and initial organizational structure implementation
• 2025: Further activities to be covered by internal resources
• Possible necessary investments in technical equipment not separately budgeted; amounts (OpEx or CapEx) part of general expenses for maintenance or planned investments in technical infrastructure

Structure: Based on IDW PS 980 audit standard for compliance management systems, documented in Group-wide safety guideline with eight core areas:

• Objective
• Culture
• Risk assessment
• Program
• Organization
• Process
• Reporting
• Monitoring

Link to policy: Will be introduced with Safety Policy in 2025

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Employee Engagement Index (EEI) Improvement Actions

Action description: Multiple initiatives across business segments to address employee dissatisfaction and improve engagement based on quantitative and qualitative evaluation of employee survey results.

Scope: Own operations (Group-wide and segment-level)

Time horizon: Short-term (2024 reporting year)

Specific initiatives:

Fresenius Helios Spain:

• Set up committees for dialog between management and employee groups to incorporate direct feedback into improvement measures
• Manager training in feedback and engagement areas, incorporating 2023 focus group results

Corporate/Other segment:

• Insight groups to gather insights on manager support, communication, culture, and collaboration
• Results shared with workforce

Fresenius Kabi:

• Global and regional workshops to address findings and focus topics from EEI results
• Workshops aimed at sharing best practices within HR community

Fresenius Kabi and Fresenius Helios:

• EEI included in target agreements for ~900 managers (Fresenius Kabi) and managers at Fresenius Helios with 10% weighting
• Each manager required to define and discuss measures with their team based on employee survey results

Resources allocated:

• Actions not managed centrally
• Process supported by external provider
• No significant OpEx or CapEx planned for 2025; resources defined case-by-case if needed

Expected outcomes/KPIs:

• Success measured by individual team/function results and overall contribution to EEI
• Target: EEI of at least 4.33 for the Group (2024) on scale of 1-6
• Progress measured against previous year's figures

Link to policy/targets:

• EEI integrated as indicator in short-term variable compensation of Management Board and most subsidiary management members
• Links to target described in S1-5

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Compliance Training

Action description: Employee training programs to promote fair and ethical business conduct and address impacts, risks, and opportunities through well-trained employees.

Scope: Own operations (employees in at-risk functions)

Time horizon: Ongoing (2024 reporting year)

Expected outcomes/KPIs:

• 81% of employees in at-risk functions covered by training programmes in 2024

Link to policy: Code of Conduct (referenced in section G1-1)

Targets related to own workforce

1. Employee Engagement Index (EEI)

Target metric: Employee Engagement Index (EEI) - weighted average of engagement scores from three globally collected Employee Engagement questions

Target value: At least 4.33 (on a scale of 1-6, with 6 being the highest)

Target year: 2024 (annual target set)

Baseline year and value: Not disclosed

Scope: Fresenius Group - all active employees in accordance with ESRS definition of workforce as of reporting date June 30, 2024

Type: Absolute target (index value)

Validation: Internal target - used as indicator in short-term variable compensation of Management Board and most members of management of subsidiaries

Progress to date (2024): Achieved 4.02 (on scale of 1 to 6). Target not achieved. The stated goal for 2024 was to achieve an EEI of at least 4.33.

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2. Lost Time Injury Frequency Rate (LTIFR)

Target metric: Lost Time Injury Frequency Rate (LTIFR)

Target value: Less than 3.0

Target year: Ongoing

Baseline year and value: Not disclosed

Scope: Fresenius Kabi employees and contract workers

Type: Absolute rate

Validation: Internal target - monitored and collected by central specialist function at Fresenius Kabi

Progress to date (2024): Achieved 2.2. Target achieved.

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3. Diversity targets for management positions

Target metric: Share of women at first and second management levels below the Management Board (at segment Corporate/Other)

Target value:

• First management level: 30% share of women
• Second management level: 30% share of women

Target year: Until 2025

Baseline year and value: Not disclosed

Scope: First and second management levels below Management Board at segment Corporate/Other (Germany)

Type: Absolute percentage targets

Validation: Internal target - set in accordance with legal requirements in Germany (November 2020)

Progress to date (2024):

• First management level: 26.3% (Status: Ongoing)
• Second management level: 27.6% (Status: Ongoing)

Workforce Characteristics

Total Workforce Size

Fresenius employs more than 176,000 colleagues worldwide as of 2024.

Training and Development

With a training ratio of almost 8%, Fresenius is one of the largest training companies in Germany. In 2024, Fresenius employed around 6,800 apprentices and dual study students.

Training Programs Focus:

• Future technologies such as AI and data science form integral part of training programs
• Strategic personnel development is crucial to Fresenius' future success
• Focus on healthcare industry-specific skills and competencies

The company recognizes that "without people, the future of medicine will not be possible" and that "healthcare is a team effort," emphasizing the critical importance of its workforce in delivering patient care and achieving business objectives.

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

Overview

In 2024, 4,933 people worked for Fresenius as temporary employees. In relation to the total number of employees, this figure is around 3%.

The figure includes in the business segment Fresenius Helios only the German entities. The KPI is voluntarily reported by Fresenius in 2024, as this is a phase-in KPI. The company aims to report the KPI in full scope going forward.

Non-employees by type

Methodology

Non-employees in the workforce are self-employed people and people provided by undertakings primarily engaged in employment activities, i.e. people who do not have a direct employment contract with Fresenius, but do work under the direction of Fresenius.

Fresenius counts non-employees using the headcount as of December 31, no matter whether they are on a full- or part-time contract. If people working for Fresenius are not directly employed by Fresenius and under the direction of a third party, they are not reported as non-employees. They are reported as value chain workers, e.g. canteen workers or office staff reporting directly to a third party vendor instead of Fresenius.

Temporary workers are deployed in the business segments to compensate for short-term staff shortages, particularly in the area of care, in medical services, or in the event of temporary fluctuations in capacity utilization in production. Temporary workers are also partially hired for temporary replacements such as parental leave or long-term illness, or for support in projects.

Collective bargaining coverage and social dialogue

Collective bargaining coverage

In the 2024 reporting year, 81.2% of Fresenius employees in Germany and 100.0% of employees in Spain were covered by a collective agreement. Employee representation coverage for employees in Germany was 82.7% and 98.5% for employees in Spain.

In 2024, around 74% of global employees were covered by a collective bargaining agreement.

Geographic breakdown of collective bargaining coverage and social dialogue

European Works Council

The European Works Council (EWC) of Fresenius SE & Co. KGaA comprised 14 employee representatives from 9 countries as of December 31, 2024. These individuals come from the European Union (EU) and EEA (European Economic Area) member states in which Fresenius employs personnel. In total, the Fresenius Group employs 144,836 people in Europe, which corresponds to 80.5% of the total number of employees.

The EWC elected six employee representatives to the Supervisory Board of Fresenius SE & Co. KGaA, including one representative of the trade unions.

Collective bargaining framework

Fresenius Helios hospitals in Germany are subject to a Helios Group collective agreement, the collective agreement for public service (TVöD), or company-specific collective agreements.

Fresenius Corporate and Fresenius Kabi are subject to the collective agreements of the chemical industry and the plastics processing industry (KVI). In 2024, a new collective agreement was reached in the chemical industry, which provides for a pay increase.

Employees in Spanish clinics are covered by legally binding tariff agreements. The trade unions Comisiones Obreras, Union General de Trabajadoras y Trabajadores (UGT), and the Sindicato de Enfermeria (SATSE) care workers' union are predominantly represented in the works councils.

Social dialogue structures

The EWC represents all Fresenius employees in the EU and the EEA. It is responsible for their participation in cross-border measures, insofar as these have a significant impact on the interests of Fresenius personnel and affect at least two countries within its area of responsibility.

The EWC meets regularly once a year, while its executive committee convenes three times a year, partially in hybrid form. There was also one virtual extraordinary meeting of the Executive Committee in the reporting year and one on-site extraordinary meeting of the EWC.

Fresenius has reached an agreement with the EWC, establishing a structured dialog with international trade union associations. On this basis, meetings are held once a year between representatives of the business segments, the employee representatives of the Supervisory Board, the EWC and the international trade union associations. In the reporting year, the meeting took place in November.

Diversity metrics

Gender split at top management level

For the calculation of the gender distribution at the top management level, Fresenius defines employees in top management as those who perform the day-to-day tasks of managing the organization and belong to level 1 or 2 below the Management Board (Fresenius SE Management Board). This includes only persons who actually hold a management position; secretarial positions or assistantships are not counted. Managerial activities contain at least one of the following criteria: leadership responsibility and/or budget responsibility.

This Group-wide quota of women at the first and second management level was 28.2% as at December 31, 2024.

Gender distribution at management levels 1 and 2

Management Board composition

As of December 31, 2024, one woman was a member of the Management Board and the proportion of women was therefore 20%.

Statutory targets

• For the proportion of women at the first management level of Fresenius SE & Co. KGaA, a target of 30.0% was set by resolution of the Management Board with effect from January 1, 2021, with a deadline of December 31, 2025. As at December 31, 2024, the proportion of women at this management level was 26.3%.

• For the proportion of women at the second management level of Fresenius SE & Co. KGaA, a target of 30.0% was set by resolution of the Management Board with effect from January 1, 2021, with a deadline of December 31, 2025. As at December 31, 2024, the proportion of women at this management level was 27.6%.

Gender distribution of total workforce

In the reporting year, the proportion of female employees in the Fresenius Group was 67.4%.

Fresenius uses the following four gender categories for the gender breakdown of its employees: "female", "male", "other", and "undisclosed".

Age band distribution

The majority (52.6%) of employees are between 30 and 50 years of age.

Nationality distribution

The following data is based on about 75% of global employees. Employees come from around 150 different nations.

Five most common nationalities

Around 54% of employees have German citizenship, followed by Spanish citizenship (29%) and Colombian citizenship (6%).

Note: Nationality data excludes employees from Fresenius Kabi and Fresenius Vamed outside of Germany as well as a few international administrative offices.

Adequate wages

Benchmark used

Fresenius applies a mixed benchmark approach:

• Within the EEA: Uses the higher of:
  • 60% of the national median wage, OR
  • 50% of the gross average wage
• Outside the EEA: Uses:
  • Statutory minimum wage where it exists
  • "Internationally recognized value for living wages" where no minimum wage exists

Data source: Global salary database providing minimum wages per region (e.g., federal state).

Coverage and compliance

• Assessment scope: All employees are assessed against applicable minimum wage laws and living wage benchmarks.
• Compliance result: As of December 31, 2024, Fresenius states that "we paid appropriate remuneration" to all employees.
• Non-compliance in 2024: One case identified affecting 3 employees, which led to immediate salary adjustment.
• Exclusions: The following groups are excluded from the adequacy assessment:
  • Interns, trainees, apprentices
  • FSJ students (voluntary social service)
  • BufDis (federal voluntary service)
  • Clinical trainees
  • Medical students in their practical year
  • Students
  • Pharmacists in training
  • Fellowships

Monitoring and risk management

• Review frequency: In countries with high inflation dynamics (hyperinflation), local HR reviews salary levels against statutory minimum wage twice per year.
• Responsibility: Local HR teams ensure compliance through regular reviews and audits. Global HR organization actively monitors compliance using data from the global HR System of Record.
• Escalation: Any identified risks or instances of non-compliance must be immediately escalated to Global HR for resolution.

Methodology

Fresenius uses the higher value when comparing:

• Applicable minimum wage (local statutory)
• Living wage benchmark (60% median or 50% average wage in EEA; internationally recognized living wage values outside EEA)

Comparative data obtained from a global salary database.

Forward-looking commitments

No specific targets disclosed for adequate wages coverage or living wage implementation.

Social protection

Social protection in the Group is not standardized and generally follows local legal requirements. These are supplemented, for example, by market-specific safeguards. Due to the different employment conditions, we assume that these conditions will not change fundamentally from one year to the next.

As part of our safeguarding reviews, we assess whether all of our employees are protected through public programs or through benefits offered by Fresenius against loss of earnings due to the following major life events: illness, unemployment, work-related injuries and disability, parental leave, and retirement. There must be protection against all of the measures mentioned.

Coverage gaps by country

For each country in which not all employees are protected against all life events in accordance ESRS S1-11.75, the following exclusions apply:

Countries with partial coverage:

• Egypt: No cover against illness, unemployment and accidents; only women are entitled to parental leave
• China: No protection for interns in the event of any of the five life events
• Dominican Republic: Employees are not protected against unemployment
• India: Only women are entitled to parental leave and no protection against unemployment
• Indonesia: None of the employees are entitled to parental leave
• Japan: None of the employees are entitled to parental leave
• Colombia: Employees are not protected against unemployment
• Philippines: Employees are not protected against unemployment and are not entitled to parental leave
• Poland: No protection of on-call staff in the event of any of the five life events
• Puerto Rico: Only women are entitled to parental leave
• South Africa: No protection for fixed-term employees in the case of any of the five life events
• Czech Republic: No protection for fixed-term employees in case of any of the five life events
• Tunisia: Interns are not protected with regard to sickness, unemployment, or pensions
• USA: Employees are not protected against unemployment

Pension and retirement benefits structure

The Fresenius Group currently has two types of plans: defined benefit and defined contribution plans.

Defined benefit obligation (DBO) at December 31, 2024:

• Total DBO: €793 million (2023: €924 million)
• Funded by plan assets: €174 million (2023: €241 million)
• Covered by pension liabilities: €619 million (2023: €683 million)

The Fresenius Group's major funded defined benefit plans are in Switzerland, the United Kingdom and Austria. Major unfunded defined benefit plans exist in Germany and France.

In Germany, approximately 75% of the pension liabilities in an amount of €619 million relate to the "Versorgungsordnung der Fresenius-Unternehmen" established in 2016 (Pension Plan 2016) and to pension commitments to former Management Board members. For new entrants from January 1, 2020 onwards, a new defined contribution plan applies.

Methodology note: Social protection coverage is assessed based on whether employees are protected through public programs or company-provided benefits. Exclusions are identified where specific employee groups or categories lack coverage for one or more of the five major life events (illness, unemployment, work-related injuries/disability, parental leave, retirement).

Persons with disabilities

Overall metrics

Methodology and scope

Fresenius discloses the percentage and headcount of its employees with disabilities. The number of people with disabilities in the Group is surveyed globally in those countries in which this survey is legally permissible.

Definition of disability: A disability is an individual impairment of a person with regard to their physical function, mental ability, or mental health with a high probability of deviating from the condition typical for the person's age for longer than six months. It limits a person's movements, senses, or activities.

Scope exclusions: Exceptions are, for example, countries that do not differentiate between people with and without disabilities in employment.

Data collection approach: Fresenius accounts for different legal definitions of persons with disabilities.

Country-specific programs

Germany:

• Elections for representatives of the severely disabled are held every four years at Fresenius facilities where at least five severely disabled persons are employed on a more than temporary basis
• Helios Germany has concluded an overall inclusion agreement with the division's representative body for persons with severe disabilities, which strengthens participation and promotes equal opportunities
• Corresponding committees exist in clinics in Spain

Spain:

• Helios Spain has dedicated programs for the recruitment, integration, and development of employees with disabilities
• Legal requirement for at least 2% of employees to be people with disabilities
• Signed agreement with Fundación Integralia DKV to promote diversity

Types of disabilities included

The Fresenius Group employs people with impairments, some of which are severe disabilities, such as:

• People who use wheelchairs
• Cancer survivors
• People living with diabetes, rheumatism, or depression
• Collaborations with sheltered workshops enable people with mental disabilities to work for Fresenius

Training and Skills Development

Training Scale and Commitment

With a training ratio of almost 8%, Fresenius is one of the largest training companies in Germany. In 2024, Fresenius employed around 6,800 apprentices and dual study students.

Strategic Importance

Strategic personnel development is crucial to Fresenius' future success. The company recognizes that healthcare delivery requires highly skilled professionals and that "without people, the future of medicine will not be possible."

Training Program Focus Areas

Future Technologies Integration:

• AI (Artificial Intelligence) forms integral part of training programs
• Data science included in training curricula
• Digital healthcare technologies and applications

Healthcare-Specific Skills:

• Training programs tailored to healthcare industry requirements
• Focus on patient care excellence
• Medical technology and equipment operation

Succession Planning and Development

The Supervisory Board pursues a holistic approach to talent development:

• Succession planning begins at levels below Management Board
• Focus on building talent from within the organization
• Identification of potential successors through structured processes
• Continuous skills assessment and targeted development support

Continuous Learning Culture

The company promotes continuous learning and development:

• Regular training updates to keep pace with medical advances
• Integration of new technologies and methodologies
• Focus on both technical skills and soft skills development

This comprehensive approach to training and development ensures Fresenius maintains a skilled workforce capable of delivering high-quality healthcare services and driving innovation in medical care.

Health and safety metrics

Coverage of health and safety management system

100% of Fresenius' own workforce is covered by the company's health and safety management system based on legal requirements and/or recognized standards or guidelines (179,768 employees out of 179,884 total headcount).

Occupational health and safety metrics

Lost Time Injury Frequency Rate (LTIFR)

For Fresenius Kabi specifically, the LTIFR in 2024 was 2.2 per 1,000,000 working hours (target: <3.0).

Methodology and scope notes

Coverage: The health and safety management system coverage is disclosed by headcount. The management system includes ISO 45001-certified sites as well as non-certified entities, organized on a decentralized and country-specific basis.

Fatalities: In the reporting year 2024, no work-related fatalities occurred among employees of Fresenius that were attributable to misconduct or inadequate occupational health and safety. In one case, there was an incident involving third-party fatalities.

Work-related accidents: The Group-wide work-related accident rate is approximately 15 per 1 million hours worked. LTIFR is calculated as the number of work-related accidents resulting in at least one day of absence from work in relation to 1,000,000 working hours.

Phase-in disclosure: Data according to S1-14.88d (recordable work-related ill health) and S1-14.88e (days lost due to work-related accidents and incidents) will both be reported from 2025.

Work-life balance metrics

Disclosure Status

Fresenius has exercised the phase-in option for ESRS S1-15 (Work-life balance metrics) in the 2024 reporting year.

As stated in the ESRS index table on page 175:

Policy Context

While quantitative metrics are not disclosed for the reporting year 2024, Fresenius provides qualitative information on work-life balance support:

Extended Paid Family Leave (Fresenius Kabi, United States)

Eligible employees may take up to eight weeks of paid leave for qualifying family reasons, including:

• Time away after the birth or adoption of a child
• Child placed for foster care
• Care of an immediate family member with a serious health condition

Flexible Working Arrangements

As stated in the management report (page 104):

"We offer flexible working hours and have established a modern hybrid working environment."

Expected Future Disclosure

Under ESRS S1-15, the following metrics are expected in future reporting periods:

• % of employees entitled to family-related leave (by type: maternity/paternity/parental/family care)
• % of entitled employees who took family-related leave (split by gender)
• Return-to-work rate after parental leave (split by gender)
• Multi-year comparisons

Compensation metrics

Pay gap

Fresenius calculated a gender pay gap for the first time for the 2024 reporting year. The key figure is marked by a high proportion of female employees in the Group of 67.4%, which is particularly strong in lower-paid occupational groups, while the proportion of women in occupational groups with higher remuneration is not on the same level as in the Group.

Appropriate remuneration is ensured globally, for example, by the high proportion of employees covered by collective agreements of around 74%. Within the professional groups covered by a collective agreement, basic remuneration is defined by the respective provisions.

Remuneration ratio

Methodology

Gender pay gap methodology: The gender pay gap is defined as the difference in average pay levels between female and male employees, expressed as a percentage of the average pay level of male employees. Gross pay comprises gross annual wage from payroll elements and from non-payroll elements, e.g. the value of the company car. Payroll elements include all employee payments like base salary, bonuses, overtime, commissions, allowances, and benefit payments, using a cash flow principle that reflects actual paid values rather than target amounts. Company car value is calculated using taxation rates or leasing rates. Pension provisions and insurance payments are excluded. Total hours are based on actual hours worked, including overtime, with provisions to use standard contractual hours if actual hours cannot be directly determined (applies to Fresenius Helios in Spain). Both actual and standard hour calculations account for paid leave periods such as vacations, sick leave, and public holidays. With the exception of Fresenius Kabi, average gross hourly wage for each employee is calculated by dividing the gross annual salary by the number of hours actually worked by the employee. Fresenius Kabi adds up the gross annual salaries and the actual hours worked separately for each gender and then divides the salaries by the hours. The two approaches are to be standardized in the future.

Remuneration ratio methodology: The annual total compensation ratio is defined as the annual total compensation of the highest-paid individual in relation to the weighted median annual total compensation of all employees (excluding the highest-paid individual). The weighted median is used instead of the real median. The medians of all companies are weighted with the respective number of persons in order to calculate a median at the Group level. The weighted median represents the salary point where 50% of employees earn less and 50% earn more, with each salary weighted by the number of employees at that specific salary level. Total remuneration encompasses gross annual wage from payroll and company car value as a non-payroll element. Gross annual wage includes all employee payments such as base salary, bonuses, overtime, commissions, and allowances, following a cash flow principle that uses actual paid values rather than target amounts in the reporting year. Excluded are pension provisions and insurance payments. Company car valuation uses the leasing rate or allowance if chosen.

Incidents, complaints and severe human rights impacts

In the reporting year, the company received a total of 348 work-related reports. This includes incidents of discrimination or sexual harassment, as well as cases from other areas.

Fresenius discloses the total number of discrimination and harassment incidents in its own workforce as one part of human rights relevant incidents. Fresenius defines harassment as a form of discrimination involving unwanted physical or verbal behavior that offends, intimidates, threatens, or humiliates someone, manifesting in verbal, sexual, physical, and psychological forms. Discrimination refers to unfair treatment of individuals or groups based on specific characteristics defined by national laws.

Complaints of discrimination or harassment are filed through channels for people in Fresenius' own workforce to raise concerns (including grievance mechanisms) and, where applicable, to the National Contact Points for OECD Multinational Enterprises.

No severe violations of internal policies in the area of employees or diversity and equal rights were reported whose impacts would have been material for the financial position or reputation of the company.

In 2024, the value for fines, penalties, and compensation related to incidents and complaints was 0 Euro. Compensation may include covering counseling expenses, providing paid time off, or reinstating used sick or vacation days.

Severe human rights incidents encompass lawsuits, formal complaints, and serious public allegations related to Fresenius' own workforce, where the incidents are undisputed by the company. These incidents include child labor, forced labor, human trafficking, and incidents affecting numerous people or extensive areas.

Incidents with human rights relevance (own workforce)

Reports received with human rights relevance

Methodology notes:

• The majority of reports were in the overarching categories of human resources (HR)/workplace, other and misappropriation of company assets
• No report was related to a severe human rights violation in the upstream or downstream value chain or in own operations
• If it is currently under review, it is not yet confirmed as a discrimination/harassment incident
• The increase in reports received is partly due to the intensified use of automated whistleblowing systems and proof that internal communication initiatives have proven to be effective

Business Conduct Policies and Corporate Culture

Fresenius Code of Conduct

The basic rules of corporate governance at Fresenius are contained in the Fresenius Code of Conduct, which contains the key principles for conduct within the Company and towards external partners and the public. The Code can be viewed at www.fresenius.com/compliance.

All business segments of Fresenius have also implemented their own codes of conduct that reflect the principles of the Fresenius Code of Conduct and cover the special features of their respective business activities.

Compliance Philosophy

For Fresenius, compliance means doing the right thing. The company's fundamental ethical values go beyond regulatory requirements. This means acting not only in accordance with the law, but also in accordance with:

• Applicable industry codes
• Internal guidelines
• Company values

Rule-compliant behavior is an integral part of corporate culture and daily work.

Compliance Management Structure

Each division has entrusted a Chief Compliance Officer or corporate function with:

• Development of the division's compliance management system (CMS)
• Implementation of compliance programs
• Monitoring compliance activities

Three-Pillar Compliance Approach

Risk-oriented compliance management systems have been implemented across all business segments comprising:

1. Prevention:

• Comprehensive risk identification and assessment
• Effective guidelines and procedures
• Regular training programs
• Ongoing advice and guidance

2. Detection:

• Tools for early risk detection
• Internal control structures (e.g., for cash and banking transactions)
• Regular reviews through workshops and internal audits
• Objective indicators for compliance risk identification

3. Response:

• Investigation procedures for suspected misconduct
• Corrective and disciplinary measures
• Remediation processes

Reporting and Whistleblower Systems

Fresenius employees who suspect misconduct can:

• Contact their line manager
• Contact the responsible compliance officer
• Report anonymously via whistleblower systems
• Use dedicated e-mail addresses for compliance issues

Most whistleblower systems are available:

• Via the company website
• To both employees and third parties (customers, suppliers, partners)
• In many national languages
• With anonymous reporting options

Corporate Values and Ethics

Fresenius is committed to:

• Acting in the best interests of patients and stakeholders
• Maintaining the highest ethical standards
• Transparency in business operations
• Responsible corporate citizenship
• Sustainable business practices

Enforcement and Accountability

The company takes potential misconduct very seriously. When violations are discovered, Fresenius takes necessary measures to:

• Stop violations immediately
• Prevent future occurrences
• Apply appropriate disciplinary action
• Implement corrective measures

Every illegal act and breach of rules is recognized as harmful to both individuals and the company as a whole.

Management of Relationships with Suppliers

Supplier Integration in Compliance Framework

Fresenius extends its compliance and ethical standards to suppliers and business partners. The company's compliance systems and codes of conduct apply not only internally but also govern relationships with external partners.

Supplier Access to Reporting Systems

Suppliers and other business partners have access to Fresenius' whistleblower systems and can report potential compliance issues. Most whistleblower systems are available via the company website to:

• Customers
• Suppliers
• Other business partners
• Available in many national languages
• Include anonymous reporting options

Supply Chain Risk Management

The company has implemented risk management processes that include supplier relationships:

• Risk identification and assessment covering supplier activities
• Due diligence procedures for supplier selection
• Ongoing monitoring of supplier compliance
• Integration of suppliers in overall risk management framework

Human Rights Due Diligence

Specific focus has been placed on implementing human rights due diligence obligations, particularly at Fresenius Vamed, indicating structured approach to ensuring suppliers meet human rights standards.

Compliance Extension to Partners

The Fresenius Code of Conduct contains principles for conduct towards external partners, ensuring that:

• Business relationships are conducted ethically
• Partners are expected to meet similar ethical standards
• Clear guidelines exist for external relationship management
• Transparency is maintained in partner relationships

Prevention and Detection of Corruption and Bribery

Comprehensive Compliance Management System

Fresenius has implemented risk-oriented compliance management systems in all business segments comprising three pillars specifically designed to prevent and detect corruption and bribery:

Prevention Measures:

• Comprehensive risk identification and assessment procedures
• Effective guidelines and policies specifically addressing corruption risks
• Regular training programs on anti-corruption topics
• Ongoing advice and guidance for employees
• Clear internal procedures and controls

Detection Systems:

• Tools for early risk detection of compliance violations
• Internal control structures specifically for financial transactions:
  • Cash transaction monitoring
  • Banking transaction controls
• Regular reviews through workshops and internal audits
• Objective indicators to identify potential compliance risks
• Systematic monitoring of business activities

Internal Controls and Procedures

Specific internal control structures have been implemented for:

• Cash transactions monitoring
• Banking transaction oversight
• Regular internal audit reviews
• Workshop-based compliance assessments

Risk-Oriented Approach

The compliance systems take into account:

• Specific requirements of markets where divisions operate
• Geographic and regulatory risk factors
• Industry-specific corruption and bribery risks
• Regular risk assessments and updates

Training and Awareness

Regular training programs ensure employees understand:

• Anti-corruption policies and procedures
• Recognition of corruption and bribery risks
• Proper escalation and reporting procedures
• Local regulatory requirements in different markets

Monitoring and Audit

The effectiveness of anti-corruption measures is ensured through:

• Regular internal audits
• Systematic reviews of compliance procedures
• Ongoing monitoring of control systems
• Assessment of compliance program effectiveness

Response Framework

When potential misconduct is identified, the company has established procedures to:

• Investigate allegations thoroughly
• Take immediate corrective action
• Implement necessary remediation measures
• Apply appropriate disciplinary measures
• Report to relevant authorities as required

Incidents of corruption or bribery

Confirmed incidents

In the reporting year 2024, there were no convictions and no fines of Fresenius for violations of corruption and bribery regulations.

Convictions and fines

Fresenius explicitly reports that in 2024:

• Zero convictions for violations of corruption and bribery regulations
• Zero fines paid for violations of anti-corruption and anti-bribery laws

The company states: "In the reporting year 2024, there were no convictions and no fines of Fresenius for violations of corruption and bribery regulations."

Investigation procedures and speak-up mechanisms

Fresenius has established comprehensive grievance and whistleblower mechanisms:

• Reporting channels: Employees and external stakeholders can report potential compliance incidents anonymously where legally permitted, through:

  • Telephone in more than 30 languages
  • Online whistleblower systems available in up to 27 languages
  • Email addresses set up specifically for reporting
  • Ombudsperson panels
  • Direct contact with supervisors or compliance officers

• Protection: The company does not tolerate retaliation against employees who report violations in good faith. Strict confidentiality measures (need-to-know principle) and conflict of interest rules protect whistleblowers.

• Investigation process: Reports are handled by dedicated case management and investigation officers. An initial assessment focuses on plausibility and severity. Depending on the case, the compliance departments or ombudsperson panels conduct preliminary assessments and initiate risk-appropriate investigations. External support may be engaged for complex cases.

• Measures: After investigation completion, disciplinary sanctions or remedies under civil or criminal law may be imposed depending on the type and severity of misconduct. The company uses investigation results to review business processes and implement corrective or improvement measures.

Compliance Case Management

In 2024, Fresenius received 1,250 total compliance reports across all categories:

• Business Integrity: 98 reports
• Data Protection: 21 reports
• Accounting/Reporting: 14 reports
• Misuse of company assets: 220 reports
• Environment/Health/Safety: 52 reports
• HR/Workplace: 317 reports
• Other: 528 reports

Of these, 281 reports were human-rights-related.

The company continuously works on strengthening governance structures to effectively prevent, detect, and address incidents. Compliance reviews were conducted for the first time in 2024 as a building block in preventing and addressing deviations or violations.

Political influence and lobbying activities

Political engagement approach

Fresenius' government relations activity is managed by a dedicated Political Affairs department, which reports directly to the CEO of Fresenius. The company maintains a representative office in Berlin and an EU Relations Office in Brussels as contact points for politicians and representatives.

The primary task of the department is to advise policy makers on policy initiatives that require expertise in medicine and the healthcare industry. Fresenius' government relations and lobbying activities are aimed at opportunities to improve access to medicine and healthcare.

To achieve this, the company participates in:

• Direct discussions and meetings with policymakers
• Drafting written statements
• Participation in hearings and consultations
• Building networks and coalitions with other relevant stakeholders
• Exchange of ideas with experts
• Promotion of relevant research projects

Ethical standards and guidelines

Any political activity by Fresenius' employees and representatives is governed by the company's Code of Conduct, as well as by applicable legal standards regarding relations with external partners and the public.

Given the societal significance of the topics addressed, it is particularly important for Fresenius to conduct political engagement and lobbying activities responsibly and transparently, thereby addressing impacts and mitigating short- and long-term risks related to reputational damage, rating assessments, and credit conditions.

Focus areas

Fresenius primarily focuses on the following industry-specific topics:

• Improving the legal and economic framework conditions for businesses
• Promoting the (industrial) healthcare sector
• Ensuring the financial sustainability of healthcare systems
• Guaranteeing high-quality healthcare in facilities
• Promoting economic growth and practical perspectives in political discussions to develop actionable solutions
• Advocating for the improvement of working conditions for employees

Political contributions

In the 2024 reporting year, Fresenius did not make any direct or indirect political contributions in the form of cash or in-kind political contributions, including intermediary organizations. In addition, no financial or in-kind donations were made to politicians.

The Group prohibits political contributions in its Code of Conduct. Should any financial or in-kind contributions occur, an investigation will be conducted to determine if they constitute a violation of the Code of Conduct. If a violation is confirmed, it will be communicated.

EU Transparency Register

Fresenius is registered in:

• The lobby register for advocacy towards the German Bundestag and the Federal Government (registration number R001428)
• The EU transparency register under number 047428334069

Information on lobbying expenditures is published as required by law in the business segments and countries concerned. The amounts recorded in the EU transparency register include, among other things, the costs for personnel required for communication activities.

Memberships and affiliations

No person from Fresenius' management or supervisory bodies held a comparable position in public administration (including regulatory authorities) in the two years prior to their appointment during the current reporting period.

Lobbying expenditure

The amounts recorded in the EU transparency register include, among other things, the costs for personnel required for communication activities. Specific quantitative figures for lobbying expenditure are not disclosed beyond this statement.

Payment practices

Fresenius is committed to conducting all business relationships with integrity, equality, and respect. The company does not differentiate in payment practices based on company size and applies the same standards uniformly to all business partners.

Payment terms and practices

Supplier-specific terms of payment are regulated according to individual guidelines based on standard industry practices and take into account the circumstances of respective countries and markets.

Payment metrics

Methodology notes:

• The calculation of average payment time is based on the number of invoices
• Average is calculated from invoice date to payment date
• All invoices paid in the reporting period are included
• Suppliers accounting for 80% of annual purchasing volume are classified as large suppliers
• Remaining suppliers (20% of purchasing volume) are classified as small and medium suppliers
• Focus in first ESRS reporting year was on entities with largest share connected to central IT systems
• No random sample was used for data collection

Legal proceedings

As of December 31, 2024, there were no significant legal proceedings related to late payments that could impact the company's reputation, earnings, financial position, or assets. Such cases, if they exist, are disclosed in the consolidated financial statements under Other notes, item 33 Commitments and contingencies.

Compliance with prompt payment code

No information disclosed regarding participation in or compliance with a prompt payment code.