Hensoldt Ag

Reference: pages 57-59.

HENSOLDT AG has a dual board system. The Management Board had three members in FY2025, all men (0:3). The Supervisory Board has twelve members, five of them women (41.7%), split equally between shareholder and employee representatives. All shareholder representatives are treated as independent (page 58).

Sustainability oversight (pages 58-59):

• The Sustainability Committee supports the Management Board on strategy, risks, targets and implementation. Members are the CEO, CFO and CHRO plus an extended management team. It meets quarterly and has no decision-making authority.
• The Committee reviews and monitors all material impacts, risks and opportunities.
• The Management Board reports quarterly to the Supervisory Board on selected priorities, sustainability among them. The Supervisory Board approved the sustainability strategy in the FY2024 strategy cycle.
• Sustainability expertise: the Supervisory Board qualifications matrix covers it, and one member is a Head of Sustainability (page 58).

Composition details, working methods and compliance oversight are incorporated by reference to Annual Report sections VII.4.4, VII.4.5 and VII.5 (pages 57-58).

Reference: pages 58-59.

The Sustainability Committee met quarterly in FY2025. Topics included progress on the sustainability and CO2 strategy, the product CO2 footprint, the CO2 reduction roadmap, updates to the materiality assessment and the status of the CSRD report. It was also briefed on ratings and regulatory topics such as the EU Deforestation Regulation and the German Supply Chain Due Diligence Act (LkSG) (page 59).

The Sustainability department prepares the meetings. It sets strategy, actions and targets with the specialist departments in annual expert dialogue sessions, and the Management Board approves them in the yearly strategy cycle. From Q2 2025, quarterly strategy meetings reviewed target achievement and the effectiveness of actions, and the results went to the Committee. The CFO and CHRO sat on the CSRD Steering Committee for the CSRD Optimisation Project (page 59).

Selected sustainability impacts, risks and opportunities that feed the Enterprise Risk Management (ERM) report are reviewed regularly with the Management Board and Supervisory Board (page 59).

Reference: pages 59-60. Remuneration detail is incorporated by reference to section VI, Remuneration Report (page 58).

Management Board members receive a multi-year Long-Term Incentive (LTI) bonus. New four-year LTI targets are set each year, and each tranche rests on two sustainability targets weighted 15% each (page 59).

2025-2028 tranche (page 60):

• Cut Scope 1 and 2 emissions by 40% in the core countries (Germany, France, United Kingdom, South Africa) by 2028 from a 2023 reference of 9,945 tCO2e (market-based).
• Raise the work-related well-being and leadership score from 66% in 2024 to 70% by 2028, measured by an annual health survey in the same four countries.

2024-2027 tranche: installed renewable capacity of 4,583 kWp by 2027, and 32.0% women in the management team by 2027 (excluding ESG Group). The 2022-2025 and 2023-2026 tranches carry a climate target and a diversity target. The Supervisory Board sets the targets; its own members receive fixed pay only (page 60).

Reference: pages 60, 81, 100.

The statement maps the core elements of due diligence to report sections in a table (page 60):

• Embedding due diligence in governance, strategy and business model: V.1.2 Governance, V.4.1 Business conduct (Code of Conduct) and V.1.3 Strategy and business model.
• Taking action on adverse impacts: V.3.3 Own workforce, V.3.4 Workers in the value chain and V.3.5 Consumers and end-users.
• Tracking effectiveness and communication: V.3.3, V.3.4 and V.4.1.
• Identifying and assessing adverse impacts, and engaging with affected stakeholders: the table points these to V.1.3 and V.1.4.

Two related statements elsewhere. A human rights due diligence process with six defined steps is described as fully implemented and, in all material respects, in line with the UN Guiding Principles and OECD Guidelines (page 81, in the EU Taxonomy minimum safeguards review). The action plan for CSDDD-style human rights due diligence in procurement was put on hold in 2025 until the Directive is implemented (page 100).

Reference: pages 60-61.

HENSOLDT runs an Enterprise Risk Management (ERM) system inside its group-wide internal control system, and process risks in sustainability reporting are covered (page 60). The data collection and aggregation processes behind the reported metrics were analyzed for risks, and the controls defined for them are still to be added to the existing risk-control matrix (page 60).

Controls described (page 61):

• Data management software for collection, with site data collectors validating under a four-eyes principle, year-on-year change analysis with individual review of large deviations, and validation by departments and the Sustainability department.
• A group-wide sustainability manual, updated yearly and available in two languages, defines data collection and metric calculation.
• The Sustainability department works with ERM when it updates the materiality assessment, and sustainability risks are rated with the ERM methodology. Only items above the critical ERM threshold enter the ERM report, which goes to the Management Board and Supervisory Board quarterly.

The report adds that sustainability risks get a much narrower focus in the Sustainability Report than the risks in the opportunities and risks report (section IV) (page 61).

Reference: pages 61-63.

HENSOLDT develops and makes sensor solutions in radars, electromagnetic warfare, avionics and optronics. Customers are the German government, foreign governments and supranational bodies such as NATO and their armed and security forces, served directly or through commercial customers, consortia or joint ventures. FY2025 revenue was €2,455 million (page 61). The two operating segments are Sensors and Optronics (page 61).

Workforce (page 62): average headcount 9,193 (8,409 in 2024): Germany 7,506, South Africa 726, France 704, United Kingdom 143, rest of world 114. Headquarters are in Taufkirchen near Munich (page 61).

Value chain (page 62): production of circuit boards and components through integration and acceptance. Suppliers are grouped as optical, electronic and mechanical, plus engineering service providers and on-site service staff. Purchasing is split into strategic and project purchasing.

Sustainability strategy (pages 62-63): three dimensions (environmental, social, governance) set out in five strategic action areas: Planet & Resources, Own workforce, Suppliers, Customer and Business integrity. The stated long-term target is carbon neutrality for Scope 1 and 2 by 2035 (page 62). Actions are not broken down by product, market or customer group (page 62). Priority SDGs are 4, 9, 10, 13 and 16 (page 63).

Reference: page 64 (stakeholder survey on page 66).

HENSOLDT names these stakeholder groups: employees, management, investors, customers, suppliers, associations and local communities. It keeps direct communication with them and uses internal experts who represent each group's views. The results feed strategy and sustainability strategy development (page 64).

By group (page 64):

• Employees: established dialogue formats and participation; detail in section V.3.3.
• Suppliers and value chain workers: supplier self-assessment declarations and an annual meeting with main suppliers.
• Customers and end-users: often involved from the development stage; direct involvement in serial products is generally exceptional.
• Investors: Investor Relations, roadshows, conferences, the Annual General Meeting and a Capital Markets Day on 11 November 2025.

The Management Board learns affected stakeholders' positions through regular exchanges in the Sustainability Committee and passes key information to the Supervisory Board (page 64). The materiality assessment included interviews with 18 stakeholders, whose questionnaires were reviewed and validated in FY2025 (page 66).

Reference: pages 67-70.

Material topics are E1, S1, S2, S4 and G1, plus two company-specific topics, data responsibility and export compliance (pages 67, 69). Time horizons: short term up to 1 year, medium 1 to 3 years, long more than 3 years (page 57).

The table on pages 68-69 sets out impacts, risks and opportunities by matter:

• E1: negative impact from CO2 emissions and non-renewable energy use; transition risks from stricter CO2 regulation and fossil dependence; physical risk at individual sites (storm, tornado, hail, subsidence, cold); a cost-saving opportunity from own renewable energy.
• S1: positive impacts on working conditions and equal treatment; a negative impact from potential accidents and stress; risks from skilled labor shortage and absences; opportunities from health management and diversity programs.
• S2: potential negative impacts from upstream labor and human rights non-compliance, a potential positive impact from safety standards at HENSOLDT sites, and related fine and reputation risks.
• S4: potential negative impact on end-users from product safety failures, a positive impact from product safety requirements, and product liability risk.
• G1 and company-specific: corporate culture, corruption, political relations, personal data and export compliance, mostly as risks.

No material effect on financial position, earnings or cash flows arose in 2025 or is expected in 2026 (page 69). SBM-3 48(e) is waived under the phase-in (page 70).

Reference: pages 65-66, 70-72.

Process (pages 65-66): HENSOLDT has run ESRS-based materiality assessments since 2023 and updates them yearly under the Sustainability department. Topics start from the ESRS 1 AR 16 list. Expert workshops identify impacts, risks and opportunities using earlier assessments and the ERM report, covering the value chain where possible. Impacts are scored on scope, scale and, for negative impacts, irremediable character, plus time horizon and, for potential impacts, probability (three- and five-level scales). Financial risks and opportunities use a five-point scale for size and likelihood taken from ERM. The materiality threshold is 50% of the rating scale for both impacts and financial matters. Eighteen stakeholders were interviewed for the first assessment and validated their answers in 2025. The CSRD Steering Committee finalized the result, the Sustainability Committee reviewed it and the Management Board approved it (page 66).

Topic processes (pages 70-72): a climate resilience analysis in 2025 using TCFD recommendations and two IPCC scenarios (page 70); a 2025 biodiversity analysis of own locations for proximity to protected areas (page 71); no site-level examination for pollution, water or resource use because of the business model (page 72); and interviews with Compliance, Data Protection & IT Law and Political Affairs staff for G1 (page 72).

Reference: pages 66-67 (results), 110-115 (datapoints from other EU legislation), 115-118 (content index and phase-in table).

Result of the double materiality assessment (page 67): E1, S1, S2, S4 and G1 are material and reported. S4 moved to the right on the matrix year on year because of a higher assessment of existing impacts, with no change to reporting. Two company-specific topics, data responsibility and export compliance, are reported in section V.4.2 (pages 69, 108).

Content index (pages 115-118): a table of "Mandatory Disclosure" against report section and subsection, with no page numbers. It lists BP-1, BP-2, GOV-1 to GOV-5, SBM-1 to SBM-3, IRO-1 and IRO-2; E1-1 to E1-8; S1-1 to S1-10 and S1-12 to S1-17; S2-1 to S2-5; S4-1 to S4-5; and G1-1 to G1-6. It also lists the topic-level IRO-1 and SBM-2/SBM-3 rows. E1-9, S1-11 and every topical E2 to E5 and S3 disclosure requirement (E2-1, E3-1 and so on) are absent from it.

Datapoint list (pages 110-115): marks the E1-9 datapoints "not reported" and the E2-4, E3, E4-2, E5-5 and S3 datapoints "not material" (pages 112-114).

Phase-in table (page 118): E1-9, S1-11, S1-13 datapoint 83a, two S1-14 items (non-employees, work-related ill health) and ESRS 2 SBM-3 48(e), under ESRS 1 Appendix C.

Reference: pages 72-74.

HENSOLDT presents its transition plan as the HENSOLDT CO2 reduction roadmap, first developed in 2024 for the period to 2035 and extended in 2025 to cover ESG Group and refrigerant handling. The Management Board approved its CO2 reduction targets (page 73).

Target: carbon neutrality for Scope 1 and 2 by 2035, defined as 0 tCO2e for both scopes at all consolidated sites. It can draw on purchased CO2 certificates, and the company says it does not meet the requirements of a net-zero target (page 72). Intermediate targets are under E1-4.

Levers (page 73): energy efficiency (country-specific savings of 1.0% to 2.5% a year); a switch to renewable electricity through PV and PPAs plus a Mobility Directive for Scope 1; and Scope 3 reduction through product development and supplier management.

Locked-in emissions: the company concludes there are none at a level that would threaten the targets (page 73).

Limits the company states (page 73): the roadmap and its targets are not validated by any external body, and it does not meet all ESRS transition plan requirements, among them a Scope 3 reduction plan and a net-zero target. HENSOLDT plans to meet them in FY2026. With no EU Taxonomy CapEx plan, roadmap investments cannot be aligned with Taxonomy-aligned investments. The datapoint list indexes the EU Climate Law datapoint E1-1.14 to this section (page 110).

Back-filled from ESRS 2 E1-IRO-1 and the climate risk analysis in section V.1.5, where this content is disclosed in the FY2025 report (pages 70-71). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

HENSOLDT ran a climate risk and resilience analysis in 2025 within its materiality assessment, using TCFD recommendations, the ESRS and EU Taxonomy requirements. It covers physical and transition risks (page 70).

Scenarios (page 70): IPCC RCP 4.5/SSP2 and RCP 8.5/SSP5, evaluated to 2100. RCP 4.5 (warming of 2 to 3 degrees Celsius) is used to examine maximum transition risk and RCP 8.5 (more than 4 degrees) is the high-emission case. The company notes RCP 4.5 is not consistent with 1.5 degrees (footnote 16).

Scope and method (pages 70-71): sites with more than 20 employees chosen by size, function and relevance; sites that could be moved without significant restriction were left out. Physical risks were rated per site (using site coordinates) over up to 3 years, 3 to 5 years and 5 to 10 years, and results were validated in a Sustainability Risk Management Workshop using the ERM method. The upstream and downstream value chain was not covered.

Results (page 71): significant gross physical risks from storms, tornadoes, subsidence, hail and cold at individual sites, and a significant transition risk from stricter CO2 rules and fossil dependence. No assets or activities incompatible with a climate-neutral economy were found.

Back-filled from ESRS 2 SBM-3 (page 70) and the E1-IRO-1 resilience analysis (page 71). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

HENSOLDT says the resilience of its strategy to climate change is examined annually, and the 2025 resilience analysis covered physical and transition risks (page 70). Resilience of the wider business model is tracked through a PESTEL analysis, quarterly risk reporting and scenario analyses of macroeconomic and geopolitical change over planning periods of up to 3 years, 3 to 5 years and 5 to 10 years (page 70).

Result (page 71): the company says it is "sufficiently resilient to climate change for the next 10 years". Because the analysis found no climate-related threat to the business model in that period, it sees no need to adapt the business model.

Assumptions (page 71): energy use rises with demand for defense electronics while the energy mix becomes dominated by renewables; technology adoption cuts fossil fuel use through efficiency, PV and fleet electrification; extreme weather develops so that assets remain insurable.

Limits (pages 70-71): the analysis was not performed for the value chain; a 10-year horizon does not cover the lifespan of buildings (to 2100); and scenario analysis carries uncertainty. No climate-related uncertainty assumptions were made in the financial statements. HENSOLDT waives SBM-3 48(e) under the phase-in (page 70).

Reference: page 74.

Climate policy runs through the HSE (Health, Safety & Environment) policy. It sets overarching environmental management principles and covers climate change mitigation, energy efficiency and renewable energy. It sets requirements for business units and subsidiaries that flow into location-based HSE targets, which spell out the decarbonization levers at site level. The CO2 reduction roadmap is closely linked to it.

Responsibility: an HSE officer in each country implements the policy and reports to the Group HSE Manager, who reports to the Management Board. The Management Board approves changes. The policy is communicated through HSE training, safety briefings and other media, applies to all companies, business partners and visitors at HENSOLDT locations and is on the intranet. External companies and visitors are told through a coordinator or a visitor brochure.

The Supplier Code of Conduct adds environmental protection requirements along the supply chain.

ISO 14001: certified in Germany (Sensors, Optronics, Avionics), the United Kingdom and South Africa (Optronics), and in France at Toulouse (Nexeya) and Plaisir (FRANCE SAS). Massy and Épreville are planned for 2026.

HENSOLDT states it has no overall climate change adaptation policy or target. Adaptation actions exist at site level.

Reference: pages 74-76.

Location-based actions (page 75): the company quantified planned savings to 2035 and linked them to CapEx and OpEx.

• Energy efficiency (LED lighting, ventilation controls and drives, refurbished and new buildings): 4,053 tCO2e saved in the core countries by 2035, with CapEx of €23 million to 2035 (excluding replacement of entire buildings).
• Photovoltaics: €2 million agreed up to 2035 for Germany and South Africa, giving 1,478 tCO2e a year.
• Mobility policy in Germany: 1,911 tCO2e by 2035, with company car fleet emissions per vehicle down 50% by 2030 and eliminated by 2035.
• F-gas Regulation (EU 2024/573) compliance, using lower-impact refrigerants, adds further cuts.
• Savings achieved in 2025: 334.0 tCO2e (138.2 in 2024).

Resources (page 76): forecast CapEx from FY2026 of €5 million over 3 years, €9 million over 5 years and €25 million over 10 years. The company assumes enough funds will be available (Note 38.1).

Market-based actions (page 76): guarantees of origin for electricity in Germany, France and the United Kingdom, largely in place in 2025; wind and solar PPAs to cover 26.0% of German site electricity from 2026; more own PV.

Product (page 76): pilot projects to cut product carbon footprint, feeding an EcoDesign Guideline by FY2027; a sustainability criterion added to innovation management at HENSOLDT Sensors GmbH in 2025.

Reference: pages 74-75; see also pages 60, 72.

Targets (page 74): carbon neutrality for Scope 1 and 2 by 2035. Interim cuts of 25.0% by 2026, 50.0% by 2029 and 75.0% by 2032 from a location-based base value of 29,252 tCO2e in base year 2024. They apply to all companies in the consolidated group and are approved by the Management Board. The Sustainability department checks achievement quarterly.

Progress (page 74): location-based Scope 1 and 2 emissions rose 5.6% in FY2025, and the company says it is "not yet on track" because growth outweighs savings and renewable expansion is still being installed. It plans market-based targets and a reduction pathway in FY2026.

Base year change (pages 74-75): moved from 2020 to 2024 because of a better data basis and a uniform consolidation scope, plus the ESG Group acquisition. No scenarios other than the climate risk analysis were used to set the targets.

Scope 3: not in target setting. For the largest categories (3.1 and 3.2) the expenditure-based method meant no targets could yet be set. Targets are due in FY2026 (page 75).

Pay-linked targets: Scope 1 and 2 down 40% in core countries by 2028 from 9,945 tCO2e (page 60); renewable capacity of 4,583 kWp by 2027, with 1,912 kWp (41.7%) installed at 31 December 2025 (page 75).

Reference: pages 76-77.

Energy consumption and mix, FY2025 (previous year in brackets), page 77:

• Total energy consumption: 89,284 MWh (83,463).
• Fossil: 31,980 MWh, 35.8% of the total (48,812 MWh, 58.5%). Purchased electricity, heat, steam and cooling from fossil sources made up 25,887 MWh (41,403).
• Nuclear: 612 MWh, 0.7% (none reported in 2024).
• Renewable: 56,693 MWh, 63.5% (34,650 MWh, 41.5%), of which purchased renewable 56,306 MWh (34,320) and self-generated non-fuel renewable 387 MWh (330).

HENSOLDT self-generated 649 MWh of solar energy (423 MWh in 2024) and sold no energy to third parties (page 76).

Energy intensity (page 77): 36.4 MWh per € million of net revenue (37.3), on revenue of €2,455 million (€2,240 million). All segments (Sensors and Optronics) are classed as climate-intensive under Regulation (EU) 2022/1288.

Method (page 76): an IT tool records consumption, mostly from primary data. DEFRA conversion factors were used for Scope 1 energy and several sources for Scope 2. Purchased energy counts as renewable only where the contract states its origin, following the market-based Scope 2 approach.

Reference: pages 77-80.

Totals, FY2025 (previous year in brackets), pages 77-78: location-based total GHG 732,812 tCO2e (546,583); market-based 713,951 tCO2e (529,616).

By scope (page 78, base year 2024 in brackets after FY2025):

• Gross Scope 1: 2,202 tCO2e (down 17% on 2024: 2,644; base 2,627).
• Scope 2 location-based: 28,693 tCO2e (25,993; base 26,625). Market-based: 9,831 (9,025; base 9,435).
• Scope 3: 701,918 tCO2e (517,947), up 36%. Largest categories: 3.1 purchased goods and services 555,623 (404,067); 3.2 capital goods 91,949 (47,909); 3.11 use of sold products 23,831; 3.6 business travel 16,733 (27,042).

Restatement (pages 57, 77): 2024 Scope 3.1 was restated from 363,357 to 404,067 tCO2e (up 11.2%) after a subsidiary's procurement items were found missing. Scope 1 and 2 are unaffected.

Intensity (pages 79-80): 298.5 tCO2e per € million location-based (244.0) and 290.8 market-based (236.4).

Scope 3 basis (pages 78-79): spend-based method with DEFRA factors; only 2.4% primary data (5.2% in 2024). Categories 3.4, 3.5, 3.9 and 3.12 fall below the 1.0% materiality cut-off and are not reported; 3.8, 3.10 and 3.13 to 3.15 do not apply. The company says the Scope 3 figures rest on estimates and assumptions (page 78).

Reference: page 80.

HENSOLDT states that the Group has no greenhouse gas removals and no projects to reduce greenhouse gases financed through CO2e credits (page 80). This is a nil return, given under the heading "Greenhouse gas removal and internal CO2e pricing", and E1-7 appears in the company's content index against that section (pages 80, 116).

The report does say that carbon neutrality for Scope 1 and 2 by 2035 can use the purchase of CO2 certificates (page 72), and that the company does not describe that target as net zero.

Reference: page 80.

HENSOLDT states that the Group has no internal CO2e pricing (page 80). This is a nil return, given under the heading "Greenhouse gas removal and internal CO2e pricing", and E1-8 appears in the company's content index against that section (page 116).

The climate risk analysis names rising CO2 prices as a consequence of stricter CO2 regulation and fossil fuel dependence, which it classes as a significant transition risk (page 71). No internal carbon price is applied to it.

Reference: pages 87-89, 74.

Policies for the own workforce are the HENSOLDT Group Human Rights Policy, the Policy Statement on Respect for Human Rights, the Code of Conduct and the HSE policy (pages 87-89, 74).

Human Rights Policy (page 87): based on the UN Universal Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, the European Convention on Human Rights and the German Supply Chain Due Diligence Act (LkSG). It bans child and forced labor, slavery and human trafficking and is supplemented by national rules such as the UK Modern Slavery Act. It covers HR, Purchasing, Compliance, the Sustainability department and the Human Rights Officer (General Counsel). The Management Board approves it, and the Human Rights Officer reports to the Board at least once a year. Workers' representatives support the policy statement (page 91).

Related (pages 87, 89, 93): the Code of Conduct anchors talent promotion, diversity, open dialogue and occupational health and safety. HENSOLDT signed the Diversity Charter as of FY2024. Besides the "North Star" strategy described elsewhere, the company says no policies or targets address its recruiting risk (page 89). More in-depth human rights training for employees is planned for FY2026 (page 87). The policies are on the intranet, and external stakeholders can view the human rights documents on the website (page 87).

Reference: pages 88-89, 93-97.

The company's overview says it targets positive impacts and opportunities and counters negative impacts and risks through policies, actions and targets, with funds for actions included in departmental and group budget planning (page 89).

Actions by topic:

• Diversity and inclusion (page 94): unconscious bias training offered group-wide in FY2025 and compulsory for senior managers; an unbiased hiring process due group-wide by 2027; an International Women's Day event planned for FY2026.
• Work-life balance (page 94): flexitime, part-time and mobile working, lifetime working time accounts at some German sites, and company parental leave in Germany.
• Training (pages 95-96): talent identification fully digitalized, with global standardization planned for 2026; the HENSOLDT Learning Space pools over 615 training programs; e-learning now open to all employees worldwide.
• Health and safety (pages 96-97): medical screenings, ergonomic improvements, stress management, annual health surveys (from FY2025), fitness cooperation, a near-miss reporting tool extended to all German locations in 2025, and a global HSE reporting channel since FY2024. Further accident-reduction actions are planned for FY2026.

The Sustainability department monitors effectiveness, and quarterly strategy meetings since Q2 2025 assess actions with the departments (page 90).

Reference: pages 89-90.

Targets cover equal treatment, equal opportunities, well-being, health, safety, development and inclusion, plus one pay-linked target each year (page 89).

• Well-being and leadership: from 66% in 2024 to 70% by 2028 in the four core countries, measured by an annual health survey (LTI target).
• Women in the management team: 32.0% by 2027, with interim marks of 27.5% for 2025 and 30.0% for 2026. The share was 25.4% in 2024 and 25.1% in 2025, so the 2025 mark was missed. The management team definition changed in 2025 and does not apply to this LTI target.
• People with disabilities by 2030: Germany 5.0%, France 6.0%, South Africa 2.0%, from 2.2%, 4.4% and 1.1% in 2025.
• Training: an average of 21 hours per employee in FY2026 against 19 in 2025.
• Safety in 2026: lost time injury frequency rate (LTIFR) of 2.15 and accident rate (IFR) of 5.15, against 4.05 and 7.07 in 2025.

HENSOLDT has not set a specific target for the positive impacts of adequate pay, secure employment and special protection agreements (page 90). The Sustainability department monitors effectiveness, and quarterly strategy meetings began in Q2 2025 (page 90).

Reference: pages 91-92.

The group had 9,193 employees in FY2025 (8,409 in 2024), measured as headcount averaged over the four quarter-end figures and calculated as in financial reporting (pages 91-92). 81.7% work in Germany (7,506 people), 7.9% in South Africa and 7.7% in France (page 91). 816 employees left, giving turnover of 8.9% (8.3%) (page 91).

By gender (page 91): 2,190 female, 7,001 male, 2 other, none undisclosed.

By contract (page 92): 8,301 permanent employees (1,976 female, 6,324 male, 1 other) and 892 non-permanent (214 female, 677 male, 1 other). Full-time employees number 8,131 and part-time 1,062 (538 female, 523 male, 1 other).

Non-permanent covers fixed-term employees, partial retirement, working students, marginal part-time, trainees and interns. HENSOLDT has no non-guaranteed hours employees. Data comes from an IT-based HR tool (page 92). Countries above 10% of employees: Germany only (page 91).

Reference: pages 88, 92.

The average number of non-employees under labor leasing agreements was 208 in 2025 (146 in 2024), headcount basis (page 92). They are mainly temporary workers in Germany, hired through HR service providers to cover production peaks, doing work comparable to employees' (page 88). The company records employee and non-employee data in an IT-based HR tool (page 92).

The content index lists S1-7 under "Employment" (page 116). The report gives the headcount only, and describes these workers as labor-leasing (agency) staff. It does not break the group down by gender or other characteristics. The company also uses the phase-in for the consideration of non-employees in its health and safety metrics (page 118).

Reference: pages 92-93.

HENSOLDT states it supports freedom of association and the right to collective bargaining, and fully respects the right to join or form a trade union (page 92). 59.4% of employees are covered by collective bargaining agreements (60.1% in the previous year), calculated as employees covered divided by total employees. Social dialogue coverage is calculated as employees covered by an employee representative divided by total employees (page 93).

A table gives coverage bands for Germany, the only EEA country with more than 50 employees representing more than 10% of the workforce. The company says coverage rates are unchanged from the previous year (page 93). The non-EEA row lists no region.

Reference: page 94; see also pages 58, 91.

Top management (page 94): the gender split at the highest management level was 24.4% women (13 women, 40 men) in the reporting period. The previous-year figure of 25.4% (48 women, 141 men) used a different definition of the group, so it is not a direct comparison. The group is now the Group Executive Management Board, Group Executive Committee, Group Management Committee and Executives, deliberately narrowed in 2025. The company says the change has no material effect on the percentage of women.

Age (page 94): under 30 years 17.5% (17.3% in 2024), 30 to 50 years 50.5% (49.6%), over 50 years 32.0% (33.2%).

Governance bodies (page 58): Management Board 0:3 women to men; Supervisory Board 5:7, 41.7% women.

Employees by gender (page 91): 2,190 female, 7,001 male, 2 other.

HENSOLDT signed the Diversity Charter as of FY2024 and belongs to the Chef:innensache network (page 93).

Reference: pages 92-93.

HENSOLDT states that all employees receive an adequate wage in line with applicable benchmarks (page 92). The benchmark is the statutory or collectively agreed minimum wage in each country. Where none is defined, the company uses procedures derived from the ESRS. To verify adequacy, it compared the lowest wage at each site with the benchmark values for the country (pages 92-93).

The report gives no figure for the lowest wage or the margin over the benchmark. The content index lists S1-10 under "Remuneration" (page 117). Adequate pay, secure employment and special protection agreements are named among the positive impacts on employees (pages 68, 88), and the company has set no specific target for them (page 90).

Reference: pages 89, 94.

In FY2025, 2.6% of HENSOLDT's own workforce consisted of persons with disabilities. Locations in Canada and the USA could not be included because of legal restrictions, so the total was reduced by employees in those countries. Data collection follows country-specific legal rules and definitions (page 94).

Country shares in the reference year 2025 were 2.2% in Germany, 4.4% in France and 1.1% in South Africa. The inclusion target is to raise these to 5.0%, 6.0% and 2.0% respectively by 2030, based on country-specific guidelines and recommendations (page 89). The content index lists S1-12 under "Diversity & inclusion" (page 117).

Reference: pages 95-96, 118.

Metric (page 96): the average number of training hours per employee was 19 in FY2025, against 21 in 2024. By gender: female 17 (23 in 2024), male 19 (20). HENSOLDT defines training as initiatives that maintain or improve skills and knowledge, following a written learning plan with clear objectives and timelines, and recorded in a learning management system or local equivalent. Training hours are reviewed quarterly.

Programs (pages 95-96): the HENSOLDT Learning Space platform pools over 615 programs, with face-to-face, virtual live and e-learning formats. Career development meetings between employees and managers take place twice a year. The 2026 target is 21 hours per employee (page 89).

Phase-in (page 118): the company uses the phase-in for datapoint 83(a), the percentage of employees who took part in regular performance and career development reviews, so that figure is not reported.

Reference: pages 96-97, 89-90, 118.

Metrics, FY2025 (2024 in brackets), page 97: management system coverage 100.0% (100.0%); accident rate (IFR) 7.07 per million working hours (5.50); lost time injury frequency rate (LTIFR) 4.05 (2.51), a company-specific metric; 96 recordable work-related accidents (70); 810 days lost (414); no fatalities from work injuries or work-related ill health. Figures are person-based and cover own employees unless noted.

Management system (page 96): ISO 45001 certified health and safety management at the Sensors and Optronics companies, with the central HSE department reporting to the CHRO on the Management Board.

Targets (pages 89-90): LTIFR of 2.15 and IFR of 5.15 for 2026.

Phase-in (pages 97, 118): work-related illnesses are left out of the metrics, and the company lists non-employees and work-related ill health as phased-in items for S1-14. The footnote on fatalities refers to non-employees active at company locations.

Reference: pages 94-95.

Family-related leave, FY2025 (page 95): 99.6% of employees were entitled to take it. By gender: female 99.5%, male 99.7%, other 50.0%. 4.4% of entitled employees used it: 8.2% of women and 3.3% of men. Family-related leave covers maternity, paternity, parental and carer's leave. Entitlement outside the EU follows country-specific rules, and employees in the USA and Singapore are not entitled to all types.

Practice (page 94): flexitime, part-time and mobile working where the job allows, lifetime working time accounts in some German divisions to support early retirement, and company parental leave in Germany that extends statutory leave. More offers for family or private situations are to be assessed in FY2026.

The content index lists S1-15 under "Work-life balance" (page 117).

Reference: page 93.

Gender pay gap: 12.2% in FY2025 (11.5% the year before), calculated as the difference between average pay of female and male employees as a share of male average pay. The basis is gross hourly wage, being each employee's annual total remuneration divided by nominal working time. Employees with no nominal working time in 2025 are excluded.

Pay ratio: annual total remuneration of the highest-paid individual is 17 times the median of all other employees (23 times the year before). Total remuneration includes base salary, cash benefits, benefits in kind and all forms of direct remuneration, including long-term incentives at current fair value. Data comes from an IT-supported HR tool.

The content index lists S1-16 under "Remuneration" (page 117). The company states that collective agreements and pay principles must be non-discriminatory, particularly on gender, and that there must be no systematic differences.

Reference: page 91.

Discrimination (page 91): 26 suspected cases of discrimination, including harassment, were reported in FY2025 (8 the year before). The grounds named are gender, race, ethnic origin, nationality, religion, belief, disability, age, sexual orientation and others. A further 19 complaints were received (25 the year before). As in the previous year, none of these or any other incidents led to a fine, sanction or compensation payment.

Human rights (page 91): there were no reports of human rights violations related to HENSOLDT employees in the reporting period or the previous one.

Reports reach the company through the Speak Up whistleblower system, managers, the works council and other representatives. The content index ties S1-17 to the same "Channels for reporting and filing complaints and incidents" subsection as S1-3 (pages 91, 117).

Reference: pages 98-99.

The Supplier Code of Conduct is the policy for value chain workers. Part 1 follows the supplier code of the International Forum on Business Ethical Conduct for the Aerospace and Defence Industry (IFBEC), part 2 adds German Supply Chain Due Diligence Act (LkSG) requirements, and part 3 sets general obligations and consequences of non-compliance (page 98).

Content (pages 98-99): compliance with laws, anti-bribery, trade rules, ethics programs, information protection, tax, timely payment and risk management. It covers ILO and OECD conventions and the UK Modern Slavery Act 2015, and bans forced labor, child labor, discrimination and human trafficking.

Application (page 99): compliance is mandatory for any business relationship and the Code is part of all orders and contracts. Suppliers must pass the principles down to subcontractors. Compliance is checked on a random basis and through supplier self-assessment; monitoring of subcontractors follows LkSG section 9(3) only. HENSOLDT can suspend or end contracts for violations. Purchasing is responsible and the Executive Committee approved the Code.

In 2025, as in 2024, no cases of non-compliance with the UN Guiding Principles, the ILO Declaration or the OECD Guidelines involving value chain workers were reported (page 99).

Reference: page 100.

Code review: the Supplier Code of Conduct is to be reviewed and updated every 2 years. The 2025 review found no update was needed (page 100).

CSDDD: with application of the Directive postponed until 2027, HENSOLDT put development and implementation of an action plan for human rights due diligence in procurement on hold in 2025. It still wants to work with suppliers to close gaps or violations and to create remedial actions (page 100).

2025 actions: supplier classification criteria with a sustainability focus were developed, for roll-out in 2026 to all direct material suppliers of Sensors and Optronics, so supplier questionnaires stay unchanged for now. More chances for suppliers to join sustainability discussions were created and guidelines provided. Carbon footprint surveys were run and will be repeated in 2026 (page 100).

Tools: a group-wide IT supplier platform scans mass media for negative news, collects self-assessments and certificates and supports risk analysis. Half-yearly internal reports to the Supplier Risk Boards give the number of suppliers screened and risks analyzed. Funding sits in IT budget planning. Effectiveness is monitored through departmental feedback (page 100).

Reference: page 100.

Two targets sit under the "Suppliers" strategic pillar (page 100):

• Review all material Tier 1 suppliers included in the system for human rights and environmental risks every quarter, and minimize the risks identified. Material Tier 1 suppliers are those flagged as important by characteristics such as size and context.
• Keep up dialogue with suppliers through annual consultations with selected suppliers. All planned consultations took place in 2025, so the target was achieved, and it stays in place for FY2026.

The Purchasing department set the targets on behalf of the value chain workforce, and they are updated in annual expert dialogue sessions. Quarterly strategy meetings began in Q2 2025 to review target achievement and actions, and results were presented to the Sustainability Committee (page 100). The targets are expressed as review and consultation cycles, not as numeric values.

Reference: pages 101-102.

The company says the ESRS term "consumer" does not apply to it, so it refers to end-users (armed forces, defense and security agencies, operators of critical infrastructure) and customers (page 101, footnote 32).

Policies (pages 101-102):

• The Code of Conduct covers product safety and quality. All employees are expected to report safety concerns immediately.
• A quality management policy based on the European standard EN 9100 covers product safety quality control and rules of conduct on competition, innovation, performance, motivation and partnerships. It applies group-wide, is on the intranet and was approved by the CEO, who is responsible for implementation.
• An Export Compliance department and internal guidelines aim to ensure exports follow national, European and international rules. End-Use Certificates ensure products go only to recipients authorized by the authorities (details in section V.4.2).
• Respect for human rights along the value chain also applies to customers and end-users (page 102).

The IRO-2 datapoint list indexes S4-1.16 and S4-1.17 to the section on policies related to consumers and end-users (pages 114-115).

Reference: pages 102-103; see also page 101.

Product safety (page 102): a risk assessment is part of product development, so that product use carries only acceptable residual risk. To limit the risk of product impairment from cyber attacks, a product-related risk assessment and a threat analysis were done. In FY2025 individual HENSOLDT Sensors products were assessed for cyber vulnerabilities and threats. This extends from 2026 to all HENSOLDT Sensors products, including components, upstream services and the whole product life cycle.

Quality management (page 102): systems under ISO 9001 and EN 9100 at several locations, audited internally and externally. The aim is 100% certification coverage of sites in the largest core countries by 2028.

Organization (page 102): six staff positions were created in FY2024 in an Office of System Integrity. In FY2025 it was renamed the Office of Product Integrity and three of the six positions moved to product-related environmental requirements.

Artificial intelligence (pages 102-103): the AI strategy was developed further in FY2025, and an AI/ML Committee under the CTO oversees responsible use.

Instructions for use and training support customers and end-users (page 101). Effectiveness is reviewed in quarterly strategy meetings (page 103).

Reference: page 103; see also page 102.

The company states that internal targets and actions were defined for the "Customer" strategic pillar, and that, because the internal targets are not time-bound and results-oriented targets as defined by the ESRS, they are not reported (page 103). No S4 target is therefore set out as such.

The one dated aim in the S4 section is 100% certification coverage of the sites in the largest core countries under the quality management systems (ISO 9001 and EN 9100) by 2028. It is given under Actions rather than as a target (page 102). The company's content index lists S4-5 against the "Actions" subsection (page 117).

Effectiveness is reviewed in quarterly strategy meetings, held since Q2 2025 to analyze target achievement and actions with the relevant departments. Results are presented to the Sustainability Committee (page 103).

Reference: pages 103-105; entity-specific topics on pages 108-109.

Culture and conduct (page 103): the policy is zero tolerance toward compliance violations and corruption, supported by an ethics and compliance program. Employees are trained on the Code of Conduct every year.

Code of Conduct (page 104): a basic guideline covering fair competition, export law compliance, dealings with authorities, fair treatment of suppliers and partners, product safety, diversity and equal opportunities. It draws on the Global Principles of Business Ethics for the Aerospace and Defence Industry, binds all employees across the value chain and is on the intranet and website. The Chief Compliance Officer is responsible for implementation.

Whistleblowing (pages 104-105): reports can go to a supervisor, HR, the Compliance Team or the Speak Up system, which replaced OpenLine in September 2025 and can be reached anonymously online or by phone through an external ombudsman. The company says reports are investigated promptly and that people who report face no disadvantage. The policy refers to Directive (EU) 2019/1937, the GDPR, ISO/TS 37008:2023, the German Whistleblower Protection Act and the LkSG. The Chief Compliance Officer reports directly to the Management Board.

Further policies: Data Protection Policy and Export Compliance Policy (pages 108-109).

Back-filled from the business conduct chapter (section V.4, pages 103-109), where targets are not given as a numbered disclosure requirement under the 2023 ESRS. G1-3 became a standalone DR only in the 2025/2026 ESRS.

HENSOLDT sets no measurable, ESRS-style business conduct targets. The chapter opens with a stated aim: to maintain high compliance standards, promote a culture of ethical business conduct and lead in responsible digitalization and data security (page 103). For export compliance, the company says no measurable or results-oriented targets have yet been defined in an ESRS context because current policies are considered sufficient (page 109).

Effectiveness is tracked in the absence of targets:

• The Sustainability department monitors the effectiveness of the business conduct actions annually and reports to the Management Board and Supervisory Board (page 104).
• Quarterly strategy meetings from Q2 2025 assess actions with the departments, and results go to the Sustainability Committee (page 59).
• The Management Board and Supervisory Board are informed quarterly on compliance (page 106). Code of Conduct training participation is measured: 83.6% in FY2025 (page 106).
• Reporting system use rose in FY2024 and again in FY2025 (page 104).

Reference: page 106.

In FY2025, as in the previous year, there were no convictions within the HENSOLDT Group for violations of anti-corruption and anti-bribery laws. The metric also covers possible cases involving actors in the supply chain where HENSOLDT or its employees were directly involved. Consequently no actions were taken to address breaches of anti-corruption and anti-bribery procedures and standards. There were no confirmed incidents of corruption or bribery in 2025, and none from earlier years (page 106).

The content index lists G1-4 with G1-3 under "Anti-corruption and bribery" (page 118).

Reference: pages 106-108.

Approach (pages 106-107): HENSOLDT follows the Code of Conduct of the German Bundestag Lobby Register and other transparency registers. The Head of Public Affairs Germany reports to the Head of Group Sales and Key Account Management, an Executive Committee member who oversees lobbying with the Management Board. No Management Board or Supervisory Board member held a comparable public administration position in the two years before appointment. A Customer Engagement Plan, introduced in FY2024, sets out which stakeholders may communicate with whom and is to be reviewed yearly.

Registers (page 107): the Bundestag and federal government register (four entities), the EU Transparency Register, the French high-level authority for transparency, the Bavaria lobby register and the Baden-Württemberg lobby register.

Contributions in FY2025 (page 108): Germany €226,116 (€193,289 in 2024), France €33,595 (€23,202), rest of world €10,375 (€5,862). Most went to sector and industry associations (Germany €176,596). The company provided no in-kind contributions or donations to political parties.

Reference: page 106.

HENSOLDT says it practises and expects fair payment behavior and that timely payment of suppliers is mandatory. It does not split suppliers into categories by size, order volume or origin, so it has no explicit policy to prevent late payment to small and medium-sized enterprises (SMEs).

Figures (page 106):

• Standard payment terms differ by region and are generally between 30 and 60 days, negotiated individually with most suppliers.
• The group's average payment term is 38 days (38 the year before), which applied to 48.4% of payments in 2025 (50.5%).
• The company takes an average of 49 days to settle an invoice from the invoice date (49 the year before).
• No legal proceedings for late payment were pending in FY2025, as in the previous year.

The content index lists G1-6 under "Management of suppliers" (page 118).