Henkel AG & Co. KGaA

Reference: page 24-35

Henkel AG & Co. KGaA is a partnership limited by shares (KGaA) whose sole personally liable partner is Henkel Management AG, with a five-member Management Board (four men, one woman). The Supervisory Board has sixteen members split equally between shareholder and workers' representatives, and a Shareholders' Committee has ten members. As of December 31, 2024 the Supervisory Board comprised nine men and seven women, around 56 percent men and 44 percent women. The bodies responsible for overseeing sustainability impacts, risks and opportunities are the Management Board, Sustainability Council, Supervisory Board, Audit Committee, Sustainability Committee, Shareholders' Committee and Compliance & Risk Committee. The Management Board bears overall responsibility for the sustainability strategy, while the Sustainability Council, chaired by the Management Board member for Human Resources, Infrastructure and Sustainability, steers sustainability activities. Henkel states that a reasonable number of board members possess sustainability-related knowledge covering climate change, water, biodiversity, circular economy, social issues and governance.

Reference: page 35-37

The process for identifying material impacts, risks and opportunities is embedded in Henkel's overarching CSRD implementation program, with an annual meeting schedule prepared for all relevant bodies. The Management Board meets roughly every two weeks, the Sustainability Council and Shareholders' Committee roughly every two months, and the Supervisory Board and Audit Committee quarterly, while the Sustainability Committee meets twice a year. In 2024, sustainability matters were addressed by the Management Board in 11 meetings, the Sustainability Council in six plus five special CSRD sessions, the Shareholders' Committee twice, the Supervisory Board once, the Audit Committee three times and the Sustainability Committee twice. These bodies regularly review and weigh impacts, risks and opportunities, including potential trade-offs in significant transactions. The results of the materiality assessment, including the list of material impacts, risks and opportunities, were presented to and reviewed by the Sustainability Council, the Management Board and the Audit Committee of the Supervisory Board, and are disclosed in the SBM-3 section.

Reference: page 37-39

In 2023 the remuneration system for Management Board members was adjusted and approved by the Annual General Meeting to better support the Company strategy and sustainable development. The annual Short Term Incentive is based on financial targets (organic sales growth and adjusted earnings per preferred share, each weighted 50 percent) plus individual goals that include ESG aspects. The Long Term Incentive Plan, a virtual stock plan with a three-year measurement period, combines financial goals (adjusted return on capital employed weighted 60 percent and relative total shareholder return weighted 20 percent) with ESG targets weighted 20 percent. The 2023 LTI tranche included two ESG targets: reducing CO2 emissions per metric ton of product versus 2017 (10 percent) and progress toward gender parity by 2025 (10 percent). The 2024 tranche added a recycled-plastic packaging target, giving three ESG targets. The Personnel Committee of the Shareholders' Committee and the Supervisory Board of Henkel Management AG decide on Management Board remuneration.

Reference: page 39-40

Henkel considers due diligence requirements in the field of sustainability when assessing material impacts. In human rights it takes into account the risks for rights holders, and this risk analysis forms the basis of a human rights due diligence approach covering human rights and environmental risks. Implementation of due diligence obligations is guided by the UN Guiding Principles on Business and Human Rights, with the OECD Due Diligence Guidance for Responsible Business Conduct used as a benchmark that Henkel continuously reviews and develops. To identify, prevent or mitigate human rights and environmental risks, Henkel has established a Company-wide risk management and due diligence process. The report includes a table mapping the core elements of due diligence to their references in the Sustainability Report: embedding due diligence in governance, strategy and business model links to GOV-2, GOV-3 and SBM-3; engaging affected stakeholders links to GOV-2, SBM-2 and IRO-1; and identifying, addressing and tracking adverse impacts links to IRO-1, SBM-3 and the topical environmental and social standards.

Reference: page 41-42

Henkel uses coordinated risk management and internal control systems that consider the nature and scope of its business and incorporate sustainability matters. The Company has reported on sustainability since its first Environmental Report in 1992, and regulations, rules and processes are established to ensure proper reporting. A significant portion of location-based data is collected and verified using the principle of dual control, while global data is gathered through centrally controlled processes and checked for plausibility by experts. Impacts, risks and opportunities are assessed as part of the global sustainability management approach, including the materiality assessment along the value chain. The key risks identified in sustainability reporting are identifying report content through materiality assessment, interpreting regulatory requirements, and collecting and reporting content. The existing internal control system for financial reporting is being expanded to cover critical sustainability reporting processes. The risk situation is reported to the Compliance & Risk Committee, the Management Board and the supervisory bodies, with unforeseen significant changes reported immediately to the CFO.

Reference: page 43-50

Sustainability is a central element of Henkel's strategic framework, the Purposeful Growth Agenda, alongside innovation and digitalization, and is complemented by the 2030+ Sustainability Ambition Framework. Henkel is organized in two business units: Adhesive Technologies, offering adhesives, sealants and coatings for industrial and consumer applications, and Consumer Brands, focused on Laundry & Home Care and Hair, plus Other Consumer Businesses. The Company operates across Europe, IMEA, North America, Latin America and Asia-Pacific, with Europe, North America and Asia-Pacific accounting for 81 percent of 2024 sales. At the end of 2024 Henkel employed around 47,150 people worldwide, with 43.4 percent in Europe. In 2024 direct material spend was 8.0 billion euros and indirect materials and services spend was 7.0 billion euros. Henkel manufactured products at 161 sites in 53 countries. The value chain is categorized into upstream (raw materials, packaging, contract manufacturing), own operations (production, R&D, marketing, sales, administration) and downstream (consumers, end-users, retail, disposal and recycling).

Reference: page 50-55

Henkel identifies its key stakeholders as customers and consumers, suppliers and business partners, employees, neighbors and local communities, associations and NGOs, scientists, policymakers and authorities, and shareholders and investors, each with distinct expectations such as sustainable products, fair business relationships, fair working conditions and appropriate returns. Incorporating stakeholder interests is an integral part of sustainability management, considering both internal and external stakeholders. Henkel holds memberships in industry associations and global organizations such as the World Business Council for Sustainable Development and the World Economic Forum. Stakeholder opinions are monitored continuously through surveys, direct dialog, multi-stakeholder initiatives and dialog platforms. Engagement fosters mutual understanding, supports innovation and risk management, and underpins the sustainability strategy and reporting. Stakeholder views are taken into account during the materiality assessment, where perspectives were represented by proxies. There were no significant amendments to the strategy or business model during 2024. The administrative, management and supervisory bodies are informed about the materiality assessment results, which reflect affected stakeholders' views.

Reference: page 55-88

Henkel's diversified product portfolio enables it to identify negative and positive impacts, risks and opportunities across both business units and the entire value chain. The production of products requires a wide range of raw materials whose procurement can have environmental and social impacts, and the diverse applications of products result in significant product responsibility regarding safety, resource consumption and climate change mitigation. A materiality assessment table aligns impact materiality and financial materiality with the sub-topics under ESRS 1 AR 16. All eleven ESRS topical standards were found to have at least one material sub-topic. For example, under Climate change, mitigation and energy are material; under Pollution, substances of very high concern are financially material; Water is material on both dimensions; under Circular economy, resource inflows and outflows are material on both dimensions. Disclosure of anticipated financial effects and planned funding sources is subject to phase-in and not reported for 2024. Due to initial ESRS application, no comparison with the previous year is made, and no entity-specific disclosures are reported for 2024.

Reference: page 89-104

For the 2024 materiality assessment Henkel implemented a five-step process involving various stakeholders over several months. Phase 0 defined the scope and organizational structure; Phase 1 created a harmonized list of sustainability topics using the ESRS 1 AR 16 table, previous reports, external frameworks (SASB, ISSB, GRI, SDGs) and ratings such as EcoVadis and CDP; Phase 2 compiled indicative impacts, risks and opportunities along the value chain; Phase 3 assessed them using a heatmap approach with a standardized 0 to 5 scale, evaluating impacts by scale, scope, irremediability and likelihood, and risks and opportunities by financial magnitude and likelihood; and Phase 4 aggregated and validated the results. The impact evaluation followed a gross assessment approach assuming no mitigating actions, linked to the OECD Guidelines and UN Guiding Principles. Topic initiative co-leads represented impact materiality and the Sustainability Finance team represented financial materiality. Interim and final results were presented to the CSRD Steering Committee, the Management Board and the Audit Committee for approval. Sustainability-related risks were integrated into the enterprise risk management and reporting process.

Reference: page 105-116

Henkel presents tables listing the disclosure requirements covered in its Sustainability Report based on the results of the materiality assessment, with each requirement mapped to its section and page number. For ESRS 2 the index covers BP-1 and BP-2, GOV-1 to GOV-5, SBM-1 to SBM-3, IRO-1 and IRO-2. Because all eleven topical standards were found material, the index also covers the relevant disclosure requirements for ESRS E1 Climate change (including E1-1 to E1-8), E2 Pollution, E3 Water and marine resources, E4 Biodiversity and ecosystems, E5 Resource use and circular economy, S1 Own workforce, S2 Workers in the value chain, S3 Affected communities, S4 Consumers and end-users, and G1 Business conduct. Each topical standard includes its SBM-3 disclosure plus policies, actions, targets and relevant metrics. The report also includes a separate list of datapoints in cross-cutting and topical standards that derive from other EU legislation, referencing SFDR, Pillar 3, benchmark regulation and EU Climate Law.

Reference: page 133

Henkel's transition plan is a strategic element of its climate change mitigation approach, aligning the business model with limiting global warming to 1.5 degrees Celsius. The climate targets for 2030 and the net-zero target were validated by the Science Based Targets initiative (SBTi) under the Corporate Net-Zero Standard using the cross-sectoral pathway. SBTi 2030 targets: reduce absolute Scope 1 and Scope 2 GHG emissions by 42 percent and absolute Scope 3 GHG emissions by 30 percent, both from a 2021 base year. Net-zero target: reduce absolute Scope 1, 2 and 3 GHG emissions by 90 percent by 2045 from a 2021 base year, with permanent neutralization of residual emissions. Decarbonization levers cover own operations (energy efficiency, renewable energy deployment, renewable energy and fuel sourcing aiming at 100 percent renewable energy) and the value chain (ecodesign, low-emission materials, carbon-efficient logistics). The Dusseldorf-Holthausen power plant was identified as a material asset for locked-in emissions; coal use ceased completely in 2024. No notable CapEx went to coal, oil and gas activities. The plan was approved by the Sustainability Council and implemented in Q4 2024.

Reference: page 140

Henkel acknowledges its responsibility to reduce its impact on climate change and aligns its strategy with the 1.5-degree Celsius target of the Paris Climate Agreement. The Company commits to reaching net-zero GHG emissions across the value chain by 2045 and neutralizing residual emissions thereafter, including a stepwise reduction of absolute direct and indirect emissions in line with the SBTi Corporate Net-Zero Standard. To achieve this, Henkel commits to continuously increasing energy efficiency and transitioning to renewable energies (especially electricity) while not investing in the expansion of fossil fuels. The policy addresses material impacts, risks and opportunities related to climate change mitigation and energy use. It applies to the Henkel Group worldwide, including all operations, subsidiaries and the upstream and downstream value chain, with no exclusions. The Management Board bears overall responsibility, supported by the Sustainability Council and a Net-Zero Steering Committee. Henkel recognizes the GHG Protocol standards and the SBTi Corporate Net-Zero Standard. The policy is made available through the Code of Sustainability on henkel.com.

Reference: page 143

The transition plan serves as Henkel's long-term action plan, with key actions grouped under energy use (energy efficiency, renewable energy and fuel sourcing, renewable energy deployment), ecodesign (format and packaging design), low-emission materials (supplier engagement, packaging, raw materials) and carbon-efficient logistics (logistics optimization, low-carbon transportation). Henkel worked on all these actions in the reporting year. Accumulated operating expenditures for the transition plan in 2024 amounted to 87 million euros. Additional annual operating expenditures versus 2024 expected to meet the 2030 targets are estimated at 80 to 100 million euros for 2025 (short-term), 140 to 400 million euros for 2026 to 2029 (medium-term) and 400 to 500 million euros for 2030 (long-term); these are considered financially significant, while the necessary capital expenditures are not. For Scope 1 and 2 the largest lever is purchasing renewable energies and fuels (-32.2 percent); for Scope 3 the largest levers are low-carbon raw materials (-15.6 percent) and supplier engagement (-9.8 percent). The transition plan was formalized in 2024, so no progress against prior periods is published.

Reference: page 149

Henkel has set three absolute GHG emission reduction targets, all measured in percent against a 2021 base year. E1-T1: reduce absolute Scope 1 and Scope 2 GHG emissions by 42 percent by 2030. E1-T2: reduce absolute Scope 3 GHG emissions by 30 percent by 2030. E1-T3 (net-zero target): reduce absolute Scope 1, 2 and 3 GHG emissions by 90 percent by 2045. The SBTi 2030 climate targets serve as milestones toward the 2045 net-zero target. The targets cover Henkel's full inventory except the indirect use phase (category 3.11); categories 3.8, 3.10, 3.13 and 3.14 are not relevant to the business model. The base year 2021 was chosen as representative, with cessation of business in Russia retrospectively taken into account, and was validated by the SBTi. Performance against targets: progress toward the SBTi climate targets for 2030 is 41 percent for 2024 in respect of Scope 1 and Scope 2, and 19 percent in respect of Scope 3. No carbon credits, removals or avoidance are used to achieve the reduction targets. Henkel also reports its previous 2017 intensity targets as entity-specific disclosures.

Reference: page 157

Henkel reports total energy consumption and mix using a market-based approach based on the GHG Protocol. In 2024, total fossil energy consumption was 1,115,803 MWh (52.8 percent), comprising coal and coal products (10,078 MWh, 0.5 percent), crude oil and petroleum products (196,205 MWh, 9.3 percent), natural gas (769,423 MWh, 36.4 percent), other fossil sources (152 MWh) and purchased fossil electricity, heat, steam and cooling (139,946 MWh, 6.6 percent). Consumption from nuclear sources was not applicable. Total renewable energy consumption was 998,456 MWh (47.2 percent), comprising renewable fuels including biomass (326,720 MWh, 15.5 percent), purchased renewable electricity, heat, steam and cooling (652,802 MWh, 30.9 percent) and self-generated non-fuel renewable energy (18,934 MWh, 0.9 percent). Henkel's own energy generation amounted to 935,711 MWh (99,107 MWh fossil, 836,604 MWh renewable). As a high climate impact sector company, total energy consumption was 2,114,259 MWh against net revenue of 21,585.9 million euros, giving an energy intensity of 97.9 MWh per million euros.

Reference: page 159

Methodologies follow the GHG Protocol Corporate Accounting and Reporting Standards using DEFRA, eGrid, IEA, Ecoinvent and CarbonMinds emission factors. For 2024, gross Scope 1 GHG emissions were 405,621 t CO2e (excluding biogenic), of which 56 percent came from regulated emission trading systems. Gross location-based Scope 2 emissions were 320,897 t CO2e and gross market-based Scope 2 emissions were 55,988 t CO2e. Combined Scope 1 and 2 emissions in the SBTi target scope were 461,609 t CO2e, a 40.7 percent reduction versus the 2021 base year of 778,331 t CO2e. Total gross Scope 3 emissions were 37,676,071 t CO2e; the Scope 3 SBTi target scope (excluding category 3.11) was 14,512,249 t CO2e, a 19.3 percent reduction versus 2021. Category 3.11 (use of sold products) alone was 23,163,822 t CO2e. Total GHG emissions were 38,402,589 t CO2e (location-based) and 38,137,680 t CO2e (market-based). Market-based GHG intensity was 1,766.8 t CO2e per million euros of net revenue. Biogenic Scope 1 CO2 emissions were 73,556 t CO2.

Reference: page 169

According to Henkel's current net-zero strategy and transition plan, GHG removal and storage are not part of Henkel's emissions reduction in the reporting year and are excluded from the target calculation under the SBTi Net-Zero Standard. Henkel has set a net-zero target in conjunction with the SBTi Net-Zero Standard, under which actions to neutralize remaining emissions can be considered once a 90 percent emission reduction across Scopes 1, 2 and 3 is achieved. Acceptable measures are high-quality CO2 compensation for the long-lasting removal and storage of CO2, as described in the SBTi Net-Zero Standard. Henkel has not yet made any public claims regarding the Company's GHG neutrality, and has not publicly claimed GHG neutrality related to the use of CO2 certificates.

Reference: page 170

Henkel uses shadow carbon prices for relevant business decisions to anticipate and mitigate risks from an increasing carbon price and to create incentives for emissions reductions, in line with its net-zero targets. The Company does not use any internal carbon fees. Shadow pricing is applied in particular to strategic questions when setting targets, the further development of raw material and product portfolios, and the supply of energy. A global average CO2 price was calculated based on the weighted average of national and regional CO2 prices using the latest World Bank data, with weighting factors based on Henkel's GHG emissions per country. The global average calculated for the reporting year 2024 amounted to USD 19.1 per CO2 metric ton, extrapolated using the IEA World Energy Outlook Net Zero Emissions by 2050 scenario. The potential relevant volume covers Scope 1 and 2 emissions (461,609 metric tons) and Scope 3.1 (11,468,812 metric tons), 3.11 (23,163,822 metric tons) and 3.12 (1,436,546 metric tons). The applied CO2 pricing system corresponds to those used in the financial statements.

Reference: page 171

Henkel's pollution policy commits to worldwide compliance with regulations on substances of very high concern (SVHC), applying both ESRS and local definitions. The policy aligns with the EU zero pollution hierarchy and rests on four elements: complying with laws restricting SVHC, ensuring safe use where SVHC cannot yet be eliminated, anticipating future regulations, and engaging stakeholders to switch to SVHC-free alternatives. Consumer Brands focuses on (bio)degradable ingredients, while Adhesive Technologies pursues "Responsible Chemistry." The policy applies group-wide across all operations, subsidiaries and the upstream and downstream value chain, with the Management Board holding overall responsibility and the Sustainability Council reviewing effectiveness. Henkel contributes to the UN Environment Program's Global Framework on Chemicals.

Reference: page 175

Henkel implements its pollution policy through active portfolio management in both business units. Two key actions are defined: under Adhesive Technologies' "Responsible Chemistry" approach, existing exit decisions are tracked and SVHC-containing products are replaced with alternatives (a long-term initiative); and Consumer Brands' initiative "Reducing and replacing SVHCs in Henkel Consumer Brands' products" targets a defined list of SVHC, intended for completion by 2029 (medium-term). Both actions are implemented globally and aim to reduce the volume of SVHC in products and enhance safety during production, use and for end-users. Henkel states it has not identified any material impacts related to environmental pollution and is therefore not taking mitigating action. It has not established an ESRS action plan on pollution and so does not report allocated financial resources.

Reference: page 176

Henkel has not defined any target for the sub-topic "Substances of very high concern." The company states this sub-topic of ESRS E2 is managed through policies and actions rather than by an aggregate target. Monitoring processes track the effectiveness of policies and the progress of actions in relation to the main pollution-related impacts, risks and opportunities. Henkel refers readers to its disclosures on key policy content (E2-1) and key current and planned actions (E2-2) for further information.

Reference: page 178

Henkel's water policy aims for holistic water stewardship across the value chain, including reduction of water consumption, circular water use and water-replenishment projects. The company promotes sustainable water management primarily by reducing water withdrawal and consumption, applying efficiency measures, wastewater reuse and treatment, and prioritizing sustainable sourcing that avoids over-extraction from vulnerable ecosystems. Product design innovations optimize water requirements in production and during the use phase, and Henkel encourages suppliers to improve water conservation, quality monitoring and recycling. The policy applies group-wide across all operations, subsidiaries and the upstream and downstream value chain. Henkel respects the freshwater-change planetary boundary, supports a European Blue Deal, and has been an endorsing member of the CEO Water Mandate since 2021. Concepts are further elaborated in Henkel's Nature Policy.

Reference: page 180

Three primary actions advance Henkel's commitment to sustainable and circular water use: actions to increase water efficiency, actions for circular water usage, and consumer engagement. Water efficiency actions prevent water loss through measures such as optimizing changeover sequences, efficient cleaning systems and closed-loop cooling. Circular water usage facilitates treatment and reuse of (waste)water, including rainwater collection from production-facility roofs. Consumer engagement, including the "It Starts with Us" program, provides users with practical water-saving tips. Henkel is committed to reducing water withdrawals (surface water, groundwater and third-party water) by 35 percent by 2025 against a 2010 base year. Actions apply globally to all production sites and own operations, including locations in areas of high water risk and stress. Henkel has not established an ESRS action plan on water and therefore does not report allocated financial resources.

Reference: page 182

Henkel's target E3-T1 is to reduce water withdrawal by 35 percent in m3 per metric ton of product by 2025 compared to 2010. It is a relative, voluntary target applying to worldwide water withdrawal from surface water, groundwater and third-party sources at Henkel production. The baseline value is 1.23 m3 per metric ton of product (8,514,105 m3 / 6,894,844 tons) in base year 2010, with no interim milestones. The target draws on planetary-boundary science and the UNEP projection that water demand may exceed supply by up to 40 percent by 2030. By 2024, water withdrawal per metric ton of product had decreased by 23 percent versus the 2010 baseline, which the report states makes achieving the 2025 target no longer possible according to plan.

Reference: page 184

In 2024, Henkel's total water consumption was 3,858,063 m3 and total water withdrawal (surface water, groundwater, seawater, produced water, third-party water and rainwater) was 6,727,625 m3. Water consumption is defined as withdrawal minus discharge and includes water in product formulations. Recycled and reused water totaled 778,210 m3 and water stored was 131,779 m3 (reported for the first time in 2024). Water consumption in areas of water stress was 1,762,678 m3, and in areas at water risk including water stress was 1,810,369 m3. Water withdrawal intensity was 0.96 m3 per metric ton of product, and water consumption intensity was 179 m3 per million euros of net revenue. Water-stressed and water-risk areas were identified using the WWF Water Risk Filter; operational sites span 111 river basins. Metrics were verified by the auditor with limited assurance.

Reference: page 197

Henkel's materiality analysis included a risk assessment of financial effects and identified no material transition, physical or systemic risks related to biodiversity and ecosystems. On this basis, the company concluded its business model is overall resilient to biodiversity-related risks. Upstream risks considered (but not classified as material) included rising costs and unavailability of certain bio-based raw materials from anti-deforestation regulation, reduced pollination and drought or flood impacts; Henkel attributes resilience to a diversified portfolio not reliant on a single raw material. For own operations, potential fines for non-compliance with environmental contamination regulations, packaging-format transition risks and water-supply physical risks were assessed as not material. The risk assessment used a short-term horizon, as no significant biodiversity differences are expected medium- or long-term. As no material risks were identified, no resilience analysis was conducted. External stakeholders were not involved; internal business units and Procurement were consulted.

Reference: page 198

Henkel commits to protecting and restoring biodiversity with a focus on forests, land and water, supporting the global Nature Positive goal aligned with the Kunming-Montreal Global Biodiversity Framework. The policy sets guiding principles for biodiversity targets and the transition strategy. Henkel does not trade in CITES-listed species, respects legally designated protected areas, and is driving the transition to renewable, recycled and bio-based raw materials. It commits to zero net deforestation and an ambition of deforestation- and conversion-free sourcing of high-risk commodities, particularly timber, pulp and paper, palm oil and palm kernel oil and their derivatives, in line with the EU Deforestation Regulation (EUDR) but going beyond it. The policy applies group-wide across operations, subsidiaries and the value chain, including sites near biodiversity-sensitive areas. Henkel respects planetary boundaries on biosphere integrity, novel entities and land-system change, and supports the Convention on Biological Diversity, SDGs 14 and 15, and the EU Biodiversity Strategy for 2030. Concepts are elaborated in Henkel's Nature Policy and Responsible Sourcing Policy.

Reference: page 201

Henkel's primary biodiversity action is procurement of sustainable, certified raw materials, particularly palm oil, palm kernel oil and their derivatives, as well as paper, pulp and other wood-based packaging products. This supports the targets of "100 percent paper and cardboard recycled or sourced from sustainable forestry" and "100 percent palm oil or palm kernel oil responsibly sourced, certified or externally verified," addressing material impacts on land-use change and land degradation in the upstream value chain. Recognized certifications include RSPO (mass balance or segregated) for palm products and FSC, PEFC, SFI, CSA or AFS for wood-based packaging. The action falls under the "avoidance" layer of the mitigation hierarchy and aims at net-zero deforestation. In 2024, palm oil and palm kernel oil covered by RSPO-MB certificates was 75,958 metric tons and by RSPO-SG certificates 17 metric tons. The action is tracked by Henkel's Global Procurement Sustainability Team. No biodiversity offsets were used, and Henkel has not established an ESRS action plan, so it does not report allocated financial resources.

Reference: page 203

Henkel has three biodiversity targets, all absolute, measured in percent, applying to the global upstream value chain with a period extending to 2025 and no interim milestones: E4-T1, 100 percent palm and palm kernel oil responsibly sourced and certified or externally verified by 2025; E4-T2, 100 percent transparency and traceability for palm and palm kernel oil by 2025; and E4-T3, 100 percent paper and cardboard recycled or sourced from sustainable origins by 2025. Performance: for E4-T1, of 79,002 metric tons of palm products purchased in 2024, 78,143 tons (99 percent) were used for assessment and certified materials reached 97 percent, so target achievement is 97 percent. For E4-T2 (2023 data), Henkel traced 95 percent to the refinery, 94 percent to oil mills and 65 percent to the plantation, assessed via ASD. For E4-T3 (2023 data), 222.4 metric kilotons of wood-based packaging were purchased, 64 percent recycled and 34 percent certified non-recycled, giving 98 percent target achievement. Targets align with the Kunming-Montreal Framework, the EU Biodiversity Strategy for 2030 and the EUDR, and use planetary-boundary thresholds for land-system change.

Reference: page 208

Metrics for climate change and freshwater-use change as biodiversity drivers are reported in the E1 and E3 chapters, and direct exploitation of biological resources in E5. Additional E4 metrics cover the area and number of own-operation sites in or near sensitive biodiversity areas, identified using the Integrated Biodiversity Assessment Tool (IBAT) against Key Biodiversity Areas and the World Database of Protected Areas. Three entity-specific metrics track target progress: percentage of recycled and certified wood-based packaging purchased; percentage of certified palm oil, palm kernel oil and derivatives purchased; and percentage of palm products traceable to refinery, mill or plantation (the wood-packaging and traceability metrics are reported with a one-year delay, i.e. 2023 data). Henkel is certified by SCS Global Services under the RSPO Supply Chain Certification Standard. In total, 18 sites relevant to biodiversity were identified, located within a two-kilometer radius of a biodiversity-sensitive area and contributing to climate change and/or freshwater-use change drivers, encompassing an area of 15,857 hectares.

Reference: page 212

Henkel's resource use and circular economy policy targets the transition to a circular economy by aligning resource inflows and outflows with circular principles. On inflows, the focus is increasing the share of renewable and recycled raw materials in formulations, reducing raw material use through reformulation, raising recycled content in packaging and minimizing packaging materials without compromising quality, performance or safety. Henkel supports Extended Producer Responsibility (EPR) systems and finances waste collection and recycling so packaging becomes post-consumer recycled material that replaces fossil-based virgin plastics. Suppliers are expected to apply the 5Rs (Reduce, Reuse, Repair, Recycle, Recover) and conflict-minerals due diligence. On outflows, the packaging portfolio is designed for recycling or reuse, with work on biodegradability and reduced use-phase consumption. The policy applies group-wide across all operations, subsidiaries and the upstream and downstream value chain, with no exclusions, and is overseen by the Sustainability Council supported by a Packaging and Circularity Steering Committee. Henkel commits to third-party initiatives including the Renewable Carbon Initiative, Ellen MacArthur Foundation Global Plastic Commitment, Consumer Goods Forum Golden Design Rules, US Plastics Pact and Together for Sustainability.

Reference: page 217

Henkel is implementing two action plans applied regionally and brand-specifically. The first increases the share of recycled content: liquid detergent bottles in Europe and Mexico were changed to 50 percent recycled content, and hand soap bottles in the USA were increased from 25 percent to 100 percent recycled plastic. The second is Design for Recycling, improving recyclability through enablers such as color, material composition and label and sleeve attributes, and avoiding substances that disrupt recycling. Both action plans apply globally to all Henkel production sites and both business units (Adhesive Technologies and Consumer Brands) and affect the upstream and downstream value chain through supplier collaboration and partnerships such as the Consumer Goods Forum. The actions are defined until 2025. Against the action plan results for 2024, 89 percent of packaging is designed for recyclability or reusability (target 100 percent by 2025) and recycled plastic share for all consumer product packaging is 25 percent (target over 30 percent). The associated CapEx and OpEx are regarded as financially insignificant and are assigned to Henkel's Climate Transition Plan.

Reference: page 219

Henkel has set three circular economy targets, all voluntary and applying until 2025 with no intermediate milestones. E5-T1: 100 percent of packaging designed for recycling or reusability (absolute, measured as a percentage; covers all packaging materials placed on the market, excluding products where ingredients or residue may affect recyclability). E5-T2: more than 30 percent share of recycled plastic for all packaging of consumer products (absolute, percentage). E5-T3: minus 50 percent production waste per metric ton of product versus 2010, with a 2010 baseline of 20.3 kg of waste per metric ton (relative, percentage). All three targets are global without geographical boundaries and apply to Henkel's own activities, and all relate to the recycling layer of the waste hierarchy. Performance in 2024: E5-T1 progress is 89 percent, E5-T2 is 25 percent and E5-T3 is 39 percent. Targets were developed in 2021 with internal stakeholders and consideration of external stakeholder perspectives; no changes have been made to the targets or methods to date. Henkel is confident all three targets will be achieved in line with plan.

Reference: page 223

The material resource inflows for resource use and circular economy comprise raw materials, packaging materials, goods obtained from contract manufacturers, traded goods, goods for logistics (pallets), energy and water for operational processes. For 2024, the total weight of products and technical and biological materials used during the reporting period was 12,700,562 tonnes. Purchased materials are recorded in an internal database, with standard conversion factors or mathematical models used for materials bought in units other than weight or not in the database. The percentage of biological materials and biofuels used for non-energy purposes was 3 percent, determined by the mass-balance method and based on suppliers' self-disclosure (certificates not independently verified, based on 2023 information). The absolute weight of secondary reused or recycled components, secondary intermediary products and secondary materials used in production including packaging was 226,179 tonnes, representing 2 percent of total packaging. Recycled materials are evaluated in the packaging category; contract manufacturing, traded goods and indirect materials are excluded due to insufficient documentation. No double-counting was identified, as the recycling share refers only to packaging from mechanical recycling facilities including plastics, metals, glass and paper.

Reference: page 225

Henkel aims for a packaging portfolio designed for recycling or reuse; currently 89 percent of product packaging is designed for recycling or reuse. In formulation ingredients, Consumer Brands works on improving biodegradability to facilitate reintegration into the biological cycle, while Adhesive Technologies solutions reduce use-phase resource consumption, enable repairability and extend product lifespan. Product durability plays a minor role and repairability is not relevant for products placed on the market, since products are intended for use by consumers and end-users; the content itself has no recyclable share. The recyclable share of packaging is assessed by testing each plastic packaging component against ten defined criteria (color, label and sleeve properties, material composition, plastic composition and avoidance of substances such as PETG that disrupt recycling); for glass, metal and paper expert assessments are used. The Design for Recycling result is 89 percent for 2024. Waste data, covering inflows and outflows, is collected and reported monthly at site level through an IT system, classified as hazardous or non-hazardous, across six categories: production waste, obsolete product waste, waste from wastewater systems, municipal waste, construction waste and high quality outbound recycling (HQOR).

Reference: page 225

For 2024, Henkel's total amount of waste generated was 131,708 tonnes. Non-hazardous waste diverted from disposal totaled 50,406 tonnes, of which 43,942 tonnes through recycling and 6,464 tonnes through other recovery operations; hazardous waste diverted from disposal totaled 7,987 tonnes, of which 2,588 tonnes recycling and 5,398 tonnes other recovery. Waste directed to disposal: non-hazardous waste was 50,526 tonnes (30,970 tonnes incineration, 15,571 tonnes landfill, 3,984 tonnes other disposal), and hazardous waste was 22,789 tonnes (19,864 tonnes incineration, 1,128 tonnes landfill, 1,797 tonnes other disposal). Non-recycled waste was 85,177 tonnes, equivalent to 65 percent of total waste. Total hazardous waste was 30,776 tonnes; Henkel produces no radioactive waste. Total waste is calculated as the sum of production waste, obsolete product waste, waste from wastewater systems, municipal waste, construction waste and recyclable material waste. Data for reporting sites is measured or calculated, with only a small fraction from non-reporting non-production sites estimated.

Reference: page 238

Henkel commits to respecting employee rights and providing fair working conditions, set out in policies covering working conditions (working time, adequate wages, collective bargaining, work-life balance, health and safety) and equal treatment and opportunities (gender equality and equal pay for work of equal value). Normal work time must usually not exceed 48 hours per week, overtime must not exceed 12 hours per week, and at least one day off is granted per seven-day period. The maximum work week, adequate wages, the right to collective bargaining and work-life balance support (flexible working, parental leave for all genders including adoptive, foster, surrogacy and LGBTQ+ parents) are addressed. The policy applies to the Henkel Group worldwide, including all operations, subsidiaries and the value chain, with no exclusions. The Management Board bears overall responsibility, with the Human Resources Executive Committee leading policy development. Henkel supports the UN Universal Declaration of Human Rights, UN Global Compact, OECD Guidelines, UN Guiding Principles on Business and Human Rights and ILO Conventions. The policy is available via the Code of Sustainability on henkel.com.

Reference: page 243

Trusted cooperation with employee representative bodies is a key element of Henkel's corporate culture. In-depth exchange and consultation take place at operational level, for example with the General Works Councils, and across companies with the trade union. Members of the German Works Council and representatives of IG BCE sit on Henkel's Supervisory Board. Workers' representatives receive timely and detailed information on topics such as corporate strategy. Where employee representation is not established, alternative mechanisms such as employee assemblies or committees facilitate dialog. Henkel voluntarily established a European Works Council (EWC) that meets approximately five times a year. Local human resources leaders hold the highest-ranking positions responsible for collaboration with unions and workers' representatives. To gain insight into vulnerable or marginalized groups, Henkel maintains nine global employee resource groups (ERGs) and sends a monthly pulse-check survey to at least 3,000 randomly selected employees covering aspects of diversity, equity and inclusion. The 2022 merger into the Consumer Brands business unit continued to drive personnel changes in 2024, addressed in close cooperation with employee representatives in each country.

Reference: page 244

Henkel employees, stakeholders and anyone affected by its business activities can report potential misconduct via the whistleblowing system. Clear due diligence and compliance processes identify and assess potential negative impacts, with case-by-case assessment including investigations, reviews of remedial actions and documentation. Remedies are classified by the severity of the violation and the outcomes of prior corrective actions. In addition to employees, third parties can use the compliance hotline or alternative reporting channels. Any actual or suspected policy violations or human rights infringements must be reported to the Compliance department immediately, and all reports are treated confidentially. Reports are handled with care, speed and confidentiality in full compliance with privacy laws. The effectiveness of the grievance mechanism is reviewed annually and on an ad hoc basis, and procedural guidelines are published on the website in more than 40 languages. The prevention of retaliation is fully ensured in Henkel's Code of Conduct and Social Standards.

Reference: page 247

Henkel states that managing significant potential impacts does not require specifically targeted action plans, but it has developed actions in each material area. On working time, it is introducing a new global payroll and timekeeping system and requires country organizations to conduct working-hours risk assessments. On adequate wages, it ensures the legally applicable minimum wage and has introduced annual reviews against external benchmarks to assess an adequate living wage across all regions. On work-life balance, it allows employees to spend up to 40 percent of working hours outside the office and introduced a new global parental leave directive in 2024 offering a minimum of eight weeks of paid leave to parents of all genders. On health and safety, it conducts risk assessments and preventative actions supporting its target of a more than 60 percent safety improvement (2025 vs. 2010). On diversity, it runs initiatives across gender (RISE mentoring, WISE program), internationality and ethnicity, and LGBTQ+. Effectiveness is tracked through workforce analytics, a centralized safety system and a DEI dashboard. The global initiative Accelerate Cultural Transformation (ACT) focused on feedback in 2024.

Reference: page 252

Henkel has set one own-workforce target, S1-T1: plus 60 percent safer per million hours worked (2025 vs. 2010). The target level is over 60 percent compared to the base year 2010 and is relative, measured as a percentage. Its scope is work-related accidents involving Henkel employees that result in lost-time cases. The baseline value is the lost-time incident rate (LTIR) of 1.2 in base year 2010, calculated as the number of lost-time cases multiplied by 1 million divided by the working hours of Henkel employees. The period for achieving the target extends until 2025, with no milestones or interim targets. Performance against the target in 2024 stands at 47.2 percent, which makes the 2025 target appear ambitious. Henkel has not set targets for the sub-topic equal treatment and equal opportunities, nor for working hours, adequate wage, collective bargaining or work-life balance; for diversity it aims to achieve gender parity across all leadership levels by 2025. Employees or workers' representatives were not directly involved in the target-setting process.

Reference: page 258

As of December 31, 2024, Henkel had 47,150 total employees by headcount (permanent employees excluding apprentices, rounded), comprising 28,850 male and 18,300 female, with none recorded as other or not reported. By country, Germany had 8,050 employees and the USA 7,200 (reported for countries with at least 50 employees representing at least ten percent of the total workforce). The technical capability to record non-binary master data exists in most countries but was not utilized in the reporting period. Of the 47,150 total, 42,300 were permanent employees (16,300 female, 26,000 male), 4,850 were temporary employees (2,000 female, 2,850 male) and there were 0 non-guaranteed hours employees. In 2024, 6,250 employees left the Company, resulting in a total turnover rate of 13.1 percent. Figures are presented as employee headcounts at the end of the reporting period, while turnover refers to the full year 2024.

Reference: page 259

48.1 percent of Henkel's total employees are covered by collective bargaining agreements. Multiple collective bargaining agreements apply within the European Economic Area. For countries with more than 50 employees representing more than 10 percent of total employees, Germany shows collective bargaining coverage of 83.3 percent, placing it in the 80 to 100 percent coverage band. Coverage figures are based on permanent employees excluding apprentices as of December 31. This number is collected at the country level by HR teams in the respective regions.

Reference: page 260

Henkel defines top management as Corporate Senior Vice Presidents and Management Circles I, Ia and IIa. At top management level there were 700 employees, comprising 450 male (65.5 percent) and 250 female (34.5 percent), with none recorded as other or not disclosed. As of December 31, 2024, the proportion of women across all management levels was 41.9 percent. By age group, employees under 30 years numbered 6,600 (14.0 percent), those aged 30 to 50 years numbered 29,400 (62.4 percent) and those over 50 years numbered 11,150 (23.6 percent), totaling 47,150. Figures are permanent employees excluding apprentices as of December 31, rounded.

Reference: page 261

All Henkel employees receive an adequate wage in accordance with applicable standards at the end of the reporting period. To assess the appropriateness of employees' salaries, Henkel uses the reference values provided by the Fair Wage Network (as of October 2023).

Reference: page 261

100 percent of the Company's workforce is covered by Henkel's health and safety management system, which is based on legal requirements and recognized standards and established as a minimum requirement at all locations through globally applicable SHE standards. As of December 31, 2024, Henkel employees recorded 0 fatalities as a result of work-related injuries, 215 recordable work-related accidents and a rate of recordable work-related accidents of 2.3. Non-employees recorded 1 fatality and 14 recordable accidents. Value chain workers recorded 1 fatality, with accident numbers and rate not applicable. Figures are recorded in the global site reporting system Sphera and follow the ESRS definition of work-related, excluding non-occupational commuting accidents.

Reference: page 262

The global unadjusted gender pay gap at Henkel is 1.8 percent. The Management Board is excluded from this calculation as it does not constitute employees and including its remuneration would distort the depiction of company remuneration policy. The annual total remuneration ratio of the highest paid individual to the median annual total remuneration for all employees is 137. This ratio is calculated as the annual total remuneration for the highest paid individual divided by the median employee annual total remuneration (excluding the highest-paid individual). Interns, apprentices and student assistants are not included in the analysis. The analysis considered all relevant compensation elements for 2024, with insignificant elements excluded.

Reference: page 262

In 2024, there were 12 reported and addressed incidents of discrimination, including harassment. Overall in 2024 there were 18 warnings and 23 terminations related to compliance violations across all areas of compliance, including the cases of discrimination and harassment. A total of 208 complaints were reported through the whistleblowing system. Henkel did not receive any significant fines or non-monetary sanctions for non-compliance with laws and regulations related to human rights or harassment in 2024. Because whistleblowers can report anonymously, the complaints figure includes all reports, with no distinction made between employees and other stakeholders.

Reference: page 267

Henkel commits to respecting internationally acknowledged human rights for workers in its value chain and requires suppliers to ensure fair working conditions, health and safety, and the prevention of child and forced labor. Key supplier expectations include having management systems to identify and mitigate risks to health and safety, not tolerating child labor per ILO standards, and ensuring all work is voluntary with no forced, bonded or indentured labor, slavery or human trafficking. This addresses material impacts on working conditions in the upstream and downstream value chain and other work-related rights (child and forced labor) upstream. The provisions apply to the Henkel Group worldwide, including all operations, subsidiaries and the upstream and downstream value chain, with no exclusions. Henkel's Responsible Sourcing approach is global and is based on the Corporate Purchasing Standard, SHE Standards and Social Standards. Codes reflect commitment to the UN Guiding Principles on Business and Human Rights, the UN Global Compact, ILO conventions and the OECD Due Diligence Guidance. The Management Board bears overall responsibility, the Sustainability Council approves specific policies, and the Chief Procurement Officer and Procurement Committee oversee responsible supply chain management. The policy is made available through the Code of Sustainability on henkel.com.

Reference: page 272

Henkel's Responsible Sourcing process is integral to procurement and is initiated before any new collaboration begins, involving a recurring cycle of review, analysis and continuous improvement with existing suppliers. A central element is an assessment or audit at the start of a new business relationship. Authorized supplier representatives either disclose existing sustainability performance or complete a questionnaire covering safety, health, environment, quality, human rights (including child and forced labor), employee standards and anti-corruption. Henkel uses an assessment methodology developed by EcoVadis for a significant portion of external purchasing volume, built on 21 indicators across four categories: Environment, Labor and human rights, Ethics and Sustainable procurement. Since 2021 it has also used IntegrityNext (INX), a self-assessment solution for suppliers with lower purchasing volumes. Quality, environmental, safety and social standards are part of all contractual relationships. Henkel works with specialized independent auditors to monitor compliance, including on-site inspections, factory inspections and discussions with employees at all hierarchy levels. A successful audit is valid for three years; unsatisfactory results trigger a re-audit after a corrective action plan. The Chief Procurement Officer and the Procurement Executive Committee hold operational responsibility.

Reference: page 273

Henkel has established due diligence and compliance processes to identify and assess potential adverse impacts of its business activities and ensures access to remedy where necessary. Workers and stakeholders, including value chain workers and all other people affected by Henkel's business activities, can report potential misconduct through the whistleblower system. The central compliance organization can be reached via email (compliance.office@henkel.com), a web form, or by name or anonymously via Henkel's compliance hotline, which is available to employees and third parties. Suppliers, their employees and contractors are obligated to report actual or suspected violations of the responsible sourcing policy to the Compliance Department, and suppliers are required to have comparable whistleblower systems in place. All submitted reports are treated confidentially. Henkel handles each report with care, speed and confidentiality, with access limited to the Compliance organization and authorized investigators. Investigations follow procedural fairness and objectivity. The effectiveness of the grievance mechanism is reviewed annually and on an ad hoc basis. Procedural guidelines are published on Henkel's website in more than 40 languages, and policies protect those who report concerns against retaliation.

Reference: page 275

Henkel has developed actions to address potential material impacts on health and safety, child labor and forced labor in the value chain. Its six-step responsible sourcing process is central to risk management and compliance: pre-check and risk assessment; onboarding (suppliers agree to the Supplier Code of Conduct and Responsible Sourcing Policy); initial assessment or audit (EcoVadis questionnaire or INX, with audits for selected suppliers such as contract manufacturers); analysis of performance assessments with risk-based categorization and an escalation process that may result in contract termination; corrective action and continuous improvement plans; and re-assessment or re-audit. The process is global and applies to all suppliers and value chain workers. For palm (kernel) oil, Henkel sources in line with RSPO principles; paper-based packaging suppliers must confirm compliance during onboarding with most using FSC, PEFC or SFI certification; and conflict minerals (tin, tungsten, gold, mica) require documentation proving they are conflict-free. Henkel engages in initiatives including Together for Sustainability (TfS), Action for Sustainable Derivatives (ASD) and AIM-PROGRESS, and partners with Solidaridad. The TfS Academy offers over 390 courses in eleven languages. During the reporting period, no confirmed severe human rights issues or incidents related to the value chain were reported.

Reference: page 282

The sub-topics Working conditions and Other labor rights of ESRS 2 are managed through Henkel's policies and actions rather than through an aggregated target. Through ongoing efforts to enhance transparency, Henkel aims to gain deeper insights into its suppliers in order to potentially establish more specific targets. For reporting on the effectiveness of its policies and the progress of actions regarding material sustainability-related impacts, Henkel refers to its monitoring processes set out in the sections on the key contents of the policy (S2-1) and key current and planned actions (S2-4).

Reference: page 286

Henkel commits to respecting internationally acknowledged human rights and to local, national and international land, water and resource rights, including those of indigenous communities. Suppliers must respect land rights, including the collective and traditional rights of women, indigenous peoples, local communities and other vulnerable groups, and must not engage in land-grabbing. Where legally permitted land use changes are made, suppliers must obtain the free, prior and informed consent (FPIC) of affected indigenous communities, particularly where access to water or other resources is affected; unlawful forced evictions are not permitted. The policy addresses material impacts related to the rights of indigenous peoples, FPIC and cultural rights in the upstream and downstream value chain, and applies group-wide across all operations, subsidiaries and the upstream value chain with no exclusions. It is overseen by the Sustainability Council, with the Compliance and Risk Committee able to review where relevant. Henkel supports the UN Universal Declaration of Human Rights, the UN Global Compact, OECD Guidelines, UN Guiding Principles on Business and Human Rights and ILO Conventions, and refers in particular to the UN Declaration on the Rights of Indigenous Peoples and ILO Convention No. 169. A grievance mechanism allows affected communities to report misconduct through the whistleblower system.

Reference: page 288

Given the indirect nature of its relationship with affected communities, particularly indigenous peoples, where potential negative impacts may occur far upstream in the value chain, Henkel currently has no formalized, specific processes for direct engagement with affected communities. Instead it works to better understand their concerns in relevant value chains such as palm and palm kernel oil by participating in initiatives and collaborating with stakeholders along the value chain, including suppliers, the Roundtable on Sustainable Palm Oil (RSPO) and NGOs. Together with the civil society organization Solidaridad, Henkel supports smallholder farmers in the palm and palm kernel oil sector through projects promoting sustainable agricultural practices and supporting local communities. Henkel is a founding member of the Action for Sustainable Derivatives (ASD) initiative, which increases transparency in the palm kernel oil derivatives value chain, and a member of AIM-PROGRESS, a forum of consumer goods companies. These partnerships are continuous and involve cross-functional and cross-business collaboration from procurement to the business units and sustainability team. Henkel will consider further developing engagement with affected communities and their representatives to deepen understanding of these relationships.

Reference: page 289

Henkel has established due diligence and compliance processes to identify and assess potential negative impacts and to ensure access to remedy where necessary. Henkel employees, stakeholders and all other individuals affected by its business activities, including affected communities, can report potential misconduct through the whistleblower system. Compliance issues and potential violations are reported regularly to the Management Board, the Audit Committee of the Supervisory Board, the Shareholders' Committee and local committees; in individual cases actions are determined and monitored under the principle of prevention, detection, response, including investigations, reviews of remediation actions and documentation. The central Compliance organization can be reached by email (compliance.office@henkel.com), web form, or by name or anonymously via the compliance hotline and alternative channels. Reports are handled with care, speed and confidentiality under a need-to-know principle, and the grievance mechanism's effectiveness is reviewed annually and ad hoc, with procedural guidelines available in more than 40 languages. Henkel has zero tolerance for retaliation and protects those who raise concerns in good faith. Given the indirect relationship with indigenous peoples, Henkel has not directly assessed their awareness or trust in the process but is in dialog with Solidaridad.

Reference: page 291

Henkel implements actions to address material impacts on affected communities, particularly potential impacts on indigenous peoples, FPIC-related rights and cultural rights in the value chain, mainly upstream. Its six-step responsible sourcing process is a central element of risk management and compliance, with global scope applying to all suppliers worldwide and addressing due diligence in safety, health, environment, quality, human rights, labor standards and anti-corruption. Risks such as upstream actors engaging in unlawful land appropriation are assessed within human rights due diligence processes. Henkel engages in multi-stakeholder and industry initiatives including the Action for Sustainable Derivatives (ASD) and AIM-PROGRESS. Since 2013 it has partnered with Solidaridad on initiatives in Colombia, Ghana, Honduras, Indonesia, Mexico, Nicaragua and Nigeria, focusing on training in best-practice approaches including climate-friendly agriculture, working with smallholders to increase sustainable, deforestation-free palm kernel oil production and transition to agroforestry models. Effectiveness is assessed through regular reviews by the Human Rights Office and Human Rights Coordination Panel and through industry collaborations. During the reporting period, no serious human rights issues or incidents connected to affected communities were reported.

Reference: page 293

Henkel manages the sub-topic Rights of indigenous peoples under ESRS S3 through its policies and actions rather than through an aggregated target. Accordingly, no measurable outcome-oriented target with a baseline, target value or target year has been set for affected communities. The effectiveness of the approach is monitored through Henkel's policies, due diligence processes and engagement in multi-stakeholder initiatives rather than against a quantified target metric.

Reference: page 297

Henkel's policy covers health and safety and access to quality information. On health and safety, Henkel commits to providing safe, high-quality products that are safe for their intended use in terms of human health and the environment, complying with applicable health, safety and labeling requirements and continually reviewing products to remain compliant. Product safety and stewardship concepts cover safe transport, handling and disposal as well as end-use and the safety of value chain workers handling products as intended. On access to quality information, Henkel provides accurate, high-quality product information in compliance with local and global labeling regulations, including standardized safe-use icons developed with A.I.S.E., recycling symbols and collection notices, and works to enhance transparency on substances used and their safety while avoiding greenwashing. The policy addresses material impacts on information-related impacts and personal safety of consumers and end-users in the downstream value chain. It applies group-wide with no exclusions, supplemented by local legal requirements. The Management Board bears overall responsibility, with business unit leaders accountable for implementation. Henkel supports the UN Universal Declaration of Human Rights and provides remedy where necessary; consumers can raise concerns through Customer and Consumer Service channels and the whistleblower system.

Reference: page 300

Henkel maintains direct dialog with consumers and end-users through customer and consumer advisory teams, websites, marketing and social media campaigns, social media interactions and product labels, and involves retailers and distributors as additional channels, regularly training distributors with up-to-date product information. Engagement is ongoing across the entire product lifecycle, from the innovation development process through product launch communication. Insights from market observations, surveys, marketing campaigns, events, social media and customer service channels help improve products and enhance transparency of information, including on ingredients and their safety. Regular internal audits verify compliance with corporate product safety requirements. Through the It starts with us initiative launched in Consumer Brands in 2023, Henkel educates consumers on product use, encouraging resource-efficient behavior and proper waste management. Operational responsibility sits with senior positions including Corporate Senior Vice Presidents for Hair Care and Laundry and Home Care, regional CSVPs and the Director of R&D Product Safety and Regulatory in Consumer Brands, and several heads including Product Safety and Regulatory Affairs in Adhesive Technologies. Effectiveness is assessed through service channels that gather feedback and evaluate satisfaction. To understand vulnerable or marginalized consumers, Henkel follows best practices and legal requirements and conducts targeted studies where relevant.

Reference: page 302

Henkel has established compliance processes to identify and assess potential negative impacts and to ensure access to remedy where necessary. Consumers and end-users, and all others affected by Henkel's business activities, can report potential misconduct through the whistleblower system. Compliance issues and potential violations are reported regularly to the Management Board, the Audit Committee of the Supervisory Board, the Shareholders' Committee and local committees; in individual cases actions are determined and monitored under the principle of prevention, detection, response, including investigations, reviews of remediation actions and documentation, with remedies classified by severity. An organizational structure with binding procedures, clear responsibilities and policies such as the Code of Conduct section Product Safety and Quality ensures prompt response to product incidents affecting life or health. The central Compliance organization is reachable by email (compliance.office@henkel.com), web form or compliance hotline; consumers and end-users can also contact Customer and Consumer Service via hotlines, email, social media pages and messaging channels, with contact details on product labels and websites. Reports are treated confidentially, registered and documented, and the grievance mechanism's effectiveness is reviewed annually and ad hoc, with a procedural framework available in more than 40 languages.

Reference: page 303

Henkel implements targeted global actions, intended to continue medium and long-term, supporting its policies on access to high-quality information and health and safety. To ensure accurate product information, the Product Information Management System (PIM) on the SAP Hybris platform serves as a central repository for product-related information; technical, safety and regulatory data sheets (TDS, SDS, RDS) are provided, with complete SDS issued for new B2B products, safety information on product labels for B2C, and medical professionals able to advise consumers using SDS. To enhance transparency of the portfolio's sustainability performance, Henkel uses automated SAP-based systems and an internal four-category classification (Transitioner, Performer, Contributor, Pioneer), supported the Cosmile app for scanning cosmetic ingredients, and co-founded the Eco Beauty Score Consortium (now over 70 companies). For product safety and quality, Henkel conducts rigorous quality control, thorough safety assessments and lifecycle monitoring, and eliminates or restricts substances of concern where safety cannot be assured. For rare quality deviations, a corporate standard for product crises and recalls (introduced 2009, updated 2020) applies to all sites, built on five steps: product incident, Product Crisis Team, risk assessment and classification, crisis and recall actions, and monitoring and control of actions.

Reference: page 307

The sub-topics Information-related impacts for consumers and end-users and Personal safety of consumers and end-users under ESRS S4 are managed through Henkel's policies and actions rather than through aggregated targets. No measurable outcome-oriented target with a baseline, target value or target year has been set for consumers and end-users. Instead, monitoring processes track the effectiveness of the policies and the progress of actions in relation to the main sustainability-related impacts, as described in the policy and actions disclosures (S4-1 and S4-4).

Reference: page 309

Fostering a culture of diversity, equity and inclusion, teamwork and family spirit is central to Henkel. The Company promotes a culture of trust, teamwork and respect with zero tolerance for harassment, bullying or discrimination, and aspects of corporate culture are discussed by the Management Board and Supervisory Board at least once a year. On whistleblower protection, all employees, stakeholders and people affected by Henkel's business activities are requested to report potential misconduct, with the process adhering to global whistleblower laws including EU Directive 2019/1937 and ensuring a confidential and fair process. Those who report in good faith are protected and retaliation is not tolerated. Reports are handled with care and confidentiality, with access limited to the Compliance Group and authorized investigators. The policy applies to the Henkel Group worldwide with no exclusions. The Executive Board bears overall responsibility for the Compliance organization, which is led by the Chief Compliance Officer and supported by the Corporate Compliance Office, an interdisciplinary Compliance and Risk Committee, and 50 local compliance officers worldwide, functioning across prevention, detection and response. The global compliance management system was audited by external auditors in 2022 based on IDW PS 980 and ISO 37301. All managers globally must complete mandatory Compliance eLearning covering data protection, competition law and anti-corruption. Corporate culture and whistleblower topics are managed through guidelines and policies rather than aggregated targets.