Hexagon Ab

Governance roles

Reference: pages 80-81.

The Board of Directors has nine non-executive members and no employee representatives. Gender diversity is 44% female and 56% male, and 67% of members are independent (page 80). The Executive Management Team has 14 members including the President and CEO, 7% female and 93% male (page 80).

Who is responsible for what (pages 80-81):

• The Board holds ultimate responsibility for sustainability strategy and ESG governance. It is informed at every meeting (at least quarterly), approves major changes to the sustainability framework including ESG target updates, and monitors progress against targets.
• The Audit Committee is the oversight body for sustainability matters, including ESG management and internal controls.
• The CFO holds operational responsibility, reports to the Board and oversees the Sustainability Department. The Head of Sustainability reports to the CFO.
• An ESG Steering Committee of business area and corporate function representatives proposes initiatives and investments to Executive Management. Sustainability topics are reviewed in the Quarterly Business Review for every business area.

Sustainability skills come from direct ESG experience, training and external advisors where specialist knowledge is needed (page 81). Two members joined the Board and a new President and CEO was appointed in 2025 (page 80).

Sustainability oversight

Reference: page 81.

The CFO presents ESG progress at each Board meeting, covering new and ongoing initiatives and emerging risks. The Board takes sustainability IROs into account when overseeing strategy, major transactions and risk management, and considers trade-offs on material ESG issues in strategic decisions (page 81).

Governance body, update frequency and 2025 meetings (page 81):

• Board of Directors: at least quarterly, 4 meetings. Topics included the climate reduction plan, supplier due diligence and labor and human rights due diligence gaps in the supply chain. Actions: approved sustainability goals, reviewed value chain governance, reviewed progress against targets.
• Audit Committee: at least quarterly, 6 meetings. Topics included the DMA and IROs overview and the ESG regulatory update. Actions: approved the double materiality assessment and oversaw progress toward forthcoming regulatory requirements.
• Executive Management: at least quarterly, 6 meetings. Topics included DMA insights from stakeholder assessments and strategy definition. Actions: translated strategic targets into operational roadmaps and authorized the purchase of renewable energy.

Incentive schemes

Reference: page 82.

Nil return. Up to the end of 2025, Hexagon did not apply any incentive schemes or remuneration policies tied to sustainability matters for members of its administrative, management or supervisory bodies. No performance was therefore assessed against sustainability targets, and no associated metrics or remuneration components are reported (page 82).

Beginning in 2026, Hexagon started integrating sustainability criteria into its compensation and incentive frameworks, which it describes as aligning executive performance with long-term environmental and social objectives (page 82). The report gives no detail on which criteria or what share of pay.

Statement on due diligence

Reference: page 82.

Hexagon says its approach to sustainability governance and human rights due diligence is defined by the Environmental Policy, Conflict Minerals Policy, Diversity, Equity and Inclusion Policy, Anti-Human-Trafficking Policy and Modern Slavery Act statement. The Code of Business Conduct and Ethics and the Supplier Code of Conduct give guidance for day-to-day operations. Acquisitions follow an approach that builds ESG considerations into due diligence and post-transaction integration (page 82).

The statement is a mapping table that points each core due diligence element to the disclosure where it is covered (page 82):

• Embedding due diligence in governance and strategy: GOV-2 (page 81), GOV-3 (page 82), SBM-3 (pages 96-97).
• Engaging with affected stakeholders: SBM-2 (pages 89-92), S1-2 (pages 138-139), S2-2 (pages 158-159).
• Identifying and assessing adverse impacts: IRO-1 (pages 93-95) and SBM-3.
• Taking action: E1-3 (pages 108-110), E5-2 (page 127), S1-4 (pages 140-142), S2-4 (pages 160-161).
• Tracking effectiveness: the metrics and targets disclosures, for example E1-4 to E1-6 (pages 111-117), E5-3 (page 128) and S2-5 (page 161).

Risk management and internal controls

Reference: page 83.

Hexagon applies one risk management and internal control framework across all legal entities and business areas, reviewed annually in the reporting cycle. It draws on GRI, the TCFD guidelines and the ESRS (page 83).

Controls named (page 83):

• Data collection and validation through a consolidation tool covering all business entities.
• A Sustainability Lead in each Business Area oversees control design and implementation.
• Internal audits and third-party assurance reviews.
• Roles and ESG indicators set out in the Sustainability Reporting Guidance.

Reporting risks are ranked high, medium or low, and the highest ranked get resources first. The main risks identified are data management integration between IT systems and manual input errors at entity level. Mitigations include training, automated data collection and periodic internal and external audits. Results go to the Chief Strategy Officer, the CFO, the Audit Committee and the Board (page 83).

Strategy, business model and value chain

Reference: pages 85-88.

Hexagon's sustainability strategy has two pillars, empowering change (customer solutions that improve efficiency, safety and resource use) and creating change (its own operations and value chain) (page 85). It has four business areas: Manufacturing Intelligence, Geosystems, Autonomous Solutions and Octave (page 86). The statement says none of its products or services are banned in any markets (page 86).

Seven corporate targets are tied to the strategy: five environmental, one social and one social and governance (page 87).

Value chain (page 88):

• Upstream: raw materials (minerals, metals, plastics) and component production, mainly in Switzerland, Taiwan, China and Poland, plus cloud and data centers for software.
• Own operations: manufacturing, mostly in Switzerland, the United States, Germany, China, Poland and Singapore; service and refurbishment; software development, mainly in Germany, India, Switzerland and the United States.
• Downstream: customer use, typically over ten years for many product families, and end-of-life recycling and disposal.

Employee information is in S1-6 (pages 144-145) and Note 28 (page 210); revenue by significant ESRS sector is in Note 3 (page 187) (page 86).

Stakeholder interests and views

Reference: pages 89-92.

Hexagon separates affected stakeholders (employees, suppliers and supply-chain workers, technology and R&D partners, customers, end-users, local communities and the natural environment) from users of the statement (investors, regulators, Executive Management and the Board) (page 89). Each Business Area maps its own stakeholders (page 89).

The statement reports engagement with its own workforce and with value chain workers, and validation of ESG topics for more than 114 suppliers (page 89). The administrative bodies are informed of stakeholder views at all meetings, at least quarterly. The insights have not yet led to changes in the business model or strategy in the reporting period (page 89).

Tables list method, purpose and use of input for each group:

• Upstream (page 90): suppliers (supplier program, conflict minerals data, ESG self-assessments, audits), technology and R&D partners, regulators and policymakers.
• Own operations (page 91): employees (surveys, health and safety data, employee councils, whistleblower channel), Executive Management and Board, shareholders and investors.
• Downstream (page 92): customers, end-users, local communities (surveys, community events) and nature.

Material impacts, risks and opportunities

Reference: pages 96-97.

The overview table on page 96 lists 16 material IROs across five topics. By type, from the table: 2 actual positive impacts, 2 actual negative impacts, 4 potential negative impacts, 7 financial risks and 1 financial opportunity. By topic: E1 climate change 7, E5 resource use and circular economy 1 (electronic waste), S1 own workforce 2, S2 workers in the value chain 2, and G1 business conduct 4 (pages 96, 100, 125, 134, 155, 164).

Hexagon says the IROs affect its business model, value chain and strategy and that it regards the business model as generally resilient in the short to medium term (page 97). Environmental impacts originate primarily from its operational activities, including manufacturing, logistics and the product use phase. Social impacts originate from its own workforce practices and the global supply chain (page 97).

Financial effects (page 97): about EUR 330 million of 2025 revenue came from the listed opportunities, with expected annual growth of 4-5%. Hexagon has not yet quantified current financial effects of its risks and opportunities and plans to do so in 2026 and 2027. It applies the ESRS 1 Appendix C phase-in for qualitative-only reporting of anticipated financial effects (page 78).

Process to identify and assess material IROs

Reference: pages 93-95.

The double materiality assessment (DMA) ran in three stages: preparation and identification of potential topics (ESRS topics, SASB sectors, peer disclosures), assessment through stakeholder engagement and analysis, and prioritization (page 93). It was done at Group level, covered all subsidiaries and geographies and included significant parts of the value chain. Affected stakeholders were engaged through surveys, workshops and interviews, and external experts were consulted on climate, human rights and supply chain (page 93).

Scoring (page 93): impact scale and scope on a 0-4 scale, likelihood on a 1-3 scale for potential impacts, irremediability as a binary factor, and a materiality cut-off score of 3 on average. Financial materiality looks at likelihood and magnitude of effects on growth, performance, cash flow, access to finance and cost of capital. All affected stakeholders are weighted equally (page 94).

For resource use and circular economy, no quantitative impact assessments or consultations with affected communities have been done yet (page 93). Results feed the enterprise risk management framework and are reviewed quarterly at business area level and annually in the DMA update (page 95).

Outcome (page 95): material topics are E1, E5, S1, S2 and G1. E2, E3, E4, S3 and S4 were assessed as not material.

Disclosure requirements covered by the sustainability statement

Reference: page 171; pages 171-175.

Hexagon prints an ESRS content index (IRO-2) with page references on pages 171-172, covering ESRS 2 and the topical standards E1, E5, S1, S2 and G1 (page 171). The report's reader guide points to it as the overview of all disclosure requirements covered (page 77).

Markers in the index (pages 171-172):

• "Phase-in" is shown for E1-9, E5-6, S1-7, S1-11, S1-12 and S1-15.
• "N/A" is shown for E5-4, G1-2, G1-5 and G1-6.
• S1-8, S1-13 and S1-14 carry page numbers, although page 78 also lists them among the phase-in omissions of datapoints.

Pages 173-175 list datapoints derived from other EU legislation with page references, or N/A where not applicable (for example E2-4, E3, E4, S3 and S4 datapoints).

The statement applies ESRS 1 Appendix C phase-in provisions for SBM-3 (qualitative-only financial effects), E1-9, E5-6 and the S1 disclosures above (page 78). Pollution, water, biodiversity, affected communities and consumers were assessed as not material (page 95).

Transition plan for climate change mitigation

Reference: pages 105-106.

Hexagon says it is aligned with the 1.5°C goal and that its transition plan was approved by the administrative, management and supervisory bodies. The plan is anchored in SBTi-validated targets, with net-zero greenhouse gas emissions across the value chain by 2050 (page 105).

Targets (pages 105, 111): by 2030 from a 2022 base year, a 95% cut in absolute Scope 1 and 2 emissions and a 51.6% cut in Scope 3 emissions per EUR value added; by 2050, keep the Scope 1 and 2 cut at 95% or more and cut Scope 3 per EUR value added by 97%.

Levers: five levers and seven key actions (energy efficiency, renewable energy, fuel switching, supply chain decarbonization, product change). The company car fleet is about 70% of Scope 1 emissions, with the remaining fleet to switch to electric or full hybrid by 2030 (page 105).

Investment: required investments are named (green vehicle fleet, resource efficiency in manufacturing, renewable energy) but no amounts are given. The report says "Financial resources, including OpEx and CapEx, allocated to implementation of the transition plan will be disclosed for the fiscal year 2026" (page 106).

Locked-in emissions: Hexagon says it does not have any GHG-intensive activities or activities related to coal, oil or gas, so no locked-in emissions threaten the targets. It is not excluded from EU Paris-aligned Benchmarks (page 106).

Identification of climate-related risks and scenario analysis

Reference: pages 101-104; page 94.

Back-filled from ESRS 2 SBM-3 (climate resilience analysis, pages 101-104) and IRO-1 (page 94), where this content is disclosed in the FY2025 report. This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

In 2025 Hexagon ran a climate resilience analysis in line with the TCFD recommendations (page 101).

• Scope: physical risks were assessed at site level for 100 locations (81 Hexagon sites and 19 key supplier sites with spend above EUR 5 million, focused on hardware components). Transition risks were assessed at business area level for Autonomous Solutions, Geosystems and Manufacturing Intelligence (page 101).
• Scenarios (page 101): high emission SSP5-8.5 (warming above 4°C), business as usual SSP2-4.5 (2.7-3°C) and Net Zero by 2050 SSP1-1.9 (about 1.5°C). Physical risk used SSP5-8.5 and SSP2-4.5; transition risk used Net Zero and business as usual (pages 102, 104).
• Time horizons: 0-5, 5-15 and 15-25 years (page 101).
• Method: four phases (scoping, qualitative analysis, quantitative analysis, resilience and reporting). Physical losses were quantified for 30 priority sites, transition impacts for carbon pricing and electricity costs. The quantification is gross risk per site and does not yet include adaptation measures (page 102).

Resilience in relation to climate change

Reference: pages 104-106; page 97.

Back-filled from ESRS 2 SBM-3 and the E1-1 transition plan, where this content is disclosed in the FY2025 report. This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

Results (page 104): Hexagon's sites and supply chain are increasingly exposed to flooding, windstorms and storm surges, and even under the business as usual scenario several key manufacturing locations could face significant financial losses and business interruption. For transition risk, the most significant risks across all scenarios are rising procurement costs and possible shortages of critical raw materials. Carbon taxes and electricity costs are not expected to affect financial performance materially. No assets or business activities were found to be incompatible with a climate-neutral economy.

Resilience conclusion (pages 97, 104, 106): the business model is considered generally resilient in the short to medium term and able to adapt, with stable access to financing and defined pathways to redeploy, upgrade or decommission assets. Areas for improvement include governance, supply chain resilience, adaptation planning across business areas and supplier decarbonization requirements.

Policies related to climate change mitigation and adaptation

Reference: page 107.

The Environmental Policy is Hexagon's overarching policy for managing material climate impacts, risks and opportunities. Its components include climate action, energy efficiency, circular economy, air quality, water management and biodiversity protection (page 107). It commits Hexagon to GHG reduction targets validated by SBTi, energy efficiency, renewable energy and sustainability in product design (page 107).

Implementation includes ISO 14001 certified environmental management systems in major production facilities, monitoring of energy use and emissions, and supplier audits and engagement (page 107). The policy applies to all legal entities, employees and third-party personnel, and suppliers are expected to follow it through the Supplier Code, with corrective action or termination for non-compliance (page 107).

The Head of Sustainability collects input on updates, which are reviewed with Compliance and approved by the Board. The Code and Supplier Code (page 107, further described under G1-1, pages 165-169) complete the set. Together the three documents are said to address all climate IROs (page 107).

Actions and resources in relation to climate change policies

Reference: pages 108-110.

All key mitigation actions are planned for completion by 2030 at the latest. Hexagon says it is "not reporting consolidated quantitative estimates of GHG emission reductions for the reporting year" and will include revised estimates next year (page 108). Incremental CapEx and OpEx are not considered material and sit inside existing business plans (page 108).

The seven actions (pages 109-110):

1. Facility improvement programs at all production facilities. Renewable energy production reached approximately 35,492 MWh, an 11.2% compound annual growth rate since 2022. At two large European sites, LED lighting cut electricity use by 18% (249 tCO2e a year) and heating upgrades cut gas use by 30% (142 tCO2e a year).
2. Renewable energy program targeting 100% renewable electricity by 2027.
3. Cutting emissions from cloud storage.
4. Company car fleet transition to electric or full hybrid by 2030 at the latest.
5. Supplier Engagement Program (launched 2024), aiming for 50% of key suppliers to set targets by 2028.
6. Extending product life cycles through refurbishment (the Certified Pre-Owned Equipment Centre and more than 100 service centers).
7. ESG criteria in product design, including life cycle assessments.

Targets related to climate change mitigation and adaptation

Reference: pages 111-112.

Hexagon's GHG targets are gross targets, validated by SBTi, aligned with 1.5°C, and exclude carbon credits and avoided emissions (page 111). Base year is 2022 with no normalizations (page 112).

Near-term (by 2030, from 2022):

• Cut absolute Scope 1 and 2 (market-based) emissions by 95%.
• Cut Scope 3 emissions by 51.6% per EUR value added.
• Raise active annual sourcing of renewable electricity from 34.8% in 2022 to 100% by 2027 and keep it there through 2030.
• Have 50% of suppliers by spend (purchased goods and services) set science-based targets by 2028.

Long-term (2050): keep at least a 95% Scope 1 and 2 cut and cut Scope 3 by 97% per EUR value added (page 111).

Progress (page 112): Hexagon says it met its 2025 objectives, citing mandatory CO2 training for all employees from 2023 and a renewable share above 38%. A company-wide eco-design criterion was introduced in 2025 but its effectiveness is not yet assessed. The full set of climate targets will be reviewed after the proposed Octave spin-off, expected at the end of H1 2026 (page 111). Metrics are not validated by an external body other than the assurance provider, and no external stakeholder was involved in setting targets (page 112).

Energy consumption and mix

Reference: pages 113-114.

Total energy consumption was 104,290.7 MWh in 2025, down 6% from 111,418.1 MWh in 2024 (page 113).

Self-generated non-fuel renewable energy was 4,926.5 MWh (1,676.3 MWh in 2024) (page 113). The renewable share was 9.6% in the 2022 base year (page 113).

Hexagon does not track electricity from nuclear sources or fuel for renewable sources such as biomass, and did not estimate them for 2025. It plans to include them from the 2026 report (page 113). It states it is not in a high climate impact sector (page 114). Data cover subsidiaries with more than 35 full-time employees, with smaller sites extrapolated from headcount (page 114). Energy is counted as renewable only with contractual proof of origin (page 114).

Gross Scopes 1, 2, 3 and Total GHG emissions

Reference: pages 115-117.

Market-based Scope 1 and 2 are down 37% on 2022 (32,694.5 tCO2e in 2025). Scope 3 is down 16% and Scope 3 intensity per EUR value added is down 22% (page 115). Total intensity is 60.4 tCO2e per MEUR net revenue, market-based (page 115). Business travel emissions are up 56% on 2022, which the report attributes to unusually low travel that year (page 115). No emissions are covered by the EU Emissions Trading System (page 115).

Largest Scope 3 categories in 2025: purchased goods and services 135,953.9 tCO2e, use of sold products 48,196.0 and business travel 34,476.4 (page 115). About 28% of Scope 3 uses primary data (page 116). Use of sold products assumes a 10-year product life (page 117).

GHG removals and GHG mitigation projects financed through carbon credits

Reference: page 118.

Hexagon's net-zero strategy includes carbon removals for emissions that are hard to abate, such as on-site combustion heaters. It plans direct investment in removal technologies or projects rather than buying market-based credits for offsetting. Purchases of carbon credits for permanent removals have not yet started (page 118).

Hexagon does use carbon credits for hard-to-reduce value chain emissions. In 2025 it mitigated 49,000 kgCO2 by purchasing sustainable aviation fuel (SAF) for business travel. The SAF is not deducted from the Scope 3 business travel figure in E1-6 (page 118).

For 2025 Hexagon does not report whether the SAF was sourced inside or outside the EU, or whether the projects qualify for corresponding adjustments under Article 6 of the Paris Agreement. It will collect this for the 2026 reporting cycle (page 118). Residual emissions are expected to be neutralized by permanent removals by 2050, and credits are not applied to meet the required reductions in E1-4 (page 118).

Internal carbon pricing

Reference: page 119.

Hexagon applies an implicit internal carbon price, starting as a shadow price with plans to move to a carbon levy by 2028. It guides investment decisions, CapEx, procurement, operational planning and risk management (page 119).

Coverage (page 119): 100% of Scope 1 and Scope 2 emissions and 11.6% of Scope 3 (category 6, business travel), across all geographies and entities, about 20% of total GHG emissions in 2025. Volumes covered are about 14,154 tCO2e (Scope 1), 18,541 tCO2e (Scope 2) and 34,476 tCO2e (Scope 3).

Price (page 119): EUR 70 per tCO2e in 2025, projected to rise to EUR 90 by 2030, with scenarios up to EUR 350 by 2040. It is set by benchmarking carbon offsets, the EU ETS, renewable energy credits and carbon removal credits, and reviewed annually.

The price is used for historical analysis of CO2 costs (Scope 1 and 2) and forward-looking project evaluation in energy, mobility and other operational categories, selecting the lowest carbon alternative where possible (page 119).

Policies related to resource use and circular economy

Reference: page 126.

Three policies address resource use and circular economy: the Environmental Policy, the Code of Business Conduct and Ethics and the Supplier Code of Conduct. Together they address moving away from virgin resources, sustainable sourcing of renewable resources, and the financial risk from electronic waste (page 126).

• Environmental Policy: commits to reducing waste through recycling, reuse and sustainable resource management, and describes the Used-Equipment Program, which supports reuse and longer product life. Suppliers must commit to circularity and responsible resource management.
• Code: requires processes for sustainable resource management and waste reduction. ISO 14001 certified management systems are in place at major production facilities.
• Supplier Code: expects suppliers to be resource efficient, encourages ISO 14001 or equivalent, and allows audits and risk assessments that may include recycled and virgin resource use. Non-compliance can lead to corrective action or termination.

All policies are public on Hexagon's website (page 126). Cross-references go to ESRS 2 (page 84), E1-2 (page 107), S1-1 (page 135), S2-1 (pages 156-157) and G1-1 (page 166).

Actions and resources related to resource use and circular economy

Reference: page 127.

Hexagon's Waste Management Guidance, introduced before 2025, requires every facility to keep improving recovery and recycling rates for hazardous and non-hazardous waste, using certified third-party providers for hazardous waste. No significant OpEx or CapEx is forecast for these initiatives (page 127).

2025 actions, intended to be complete by 2030 (page 127):

• Improved eco-design criteria in the Hexagon Innovation Process, company-wide, to design for durability, repairability and end-of-life material recovery.
• Sustainable packaging guidance in Geosystems.
• An assessment of the level of products refurbished in Manufacturing Intelligence and Geosystems, to evaluate take-back programs.

Used-Equipment Program (page 127): the Certified Pre-Owned Equipment Centre in Geosystems refurbished and sold 17,153 units in 2025 against 4,831 in 2024, and grew turnover by 8.5%. Products go to more than 120 markets.

In 2026 Hexagon plans to expand waste records for end-of-life products and review scaling the take-back program across business areas (page 127).

Targets related to resource use and circular economy

Reference: page 128.

Hexagon has two voluntary targets (page 128):

• Zero waste to landfill from its operations by 2030.
• Double circular sales (refurbished products and components) by the end of 2027, against 2022.

Hexagon says the landfill target is not on track. The main factor behind the increase was end-of-life treatment of granite, an inert natural material, at one manufacturing facility where no cost-efficient local recycling was available. Circular sales are at 132% of the 2022 baseline (page 128).

It has not set targets for circular product design, circular material use rate, reducing primary raw materials or sustainable sourcing of renewable resources. The targets draw on the EU Circular Economy Action Plan and internal waste and sales data. Waste metrics are not validated by an external body other than the assurance provider (page 128).

Resource outflows

Reference: page 129.

Hexagon says it has identified downstream waste as a material topic and recognizes that ESRS E5-5 asks for product durability, repairability and recyclable-content rates. It states that it "does not yet have the systems and data needed to produce these indicators" to ESRS quality and auditability standards. It is working on methodologies for full reporting from the 2026 reporting year and discloses the limitation openly (page 129).

What it reports instead are its operational waste streams (page 129):

• Hazardous waste, such as paints, oils, solvents and discarded electronic components.
• Non-hazardous waste, such as office waste, food waste and packaging.
• Residual waste, a subset of non-hazardous industrial waste from manufacturing, such as metal scrap, stone and glass.

There is no radioactive waste in its operations (page 129). Of 2,980.6 tonnes of waste generated in 2025, 50.3% was not recycled (page 129). Datapoints for non-recycled waste (37d) and hazardous and radioactive waste (39) point to page 129 (page 174). Detailed tonnages are under the Waste entry.

Waste

Reference: page 129.

Total waste generated, metric tonnes (page 129):

Diverted from disposal: 1,479.9 t in 2025 (hazardous 29.2, non-hazardous 1,450.7), all in the recycling category, against 1,213.1 t in 2024.

To disposal: 1,500.7 t in 2025 (hazardous 147.5, non-hazardous 1,353.2) against 1,522.7 t in 2024. Incineration was 551.3 t, landfill 949.4 t and other disposal 0 t in 2025.

Non-recycled share: 50.3% in 2025 (hazardous 83.5%, non-hazardous 48.3%) against 55.7% in 2024.

Hexagon counts incineration with energy recovery inside "recycling", while calling it the least preferred option. It cannot yet give reliable estimates for preparation for reuse and other recovery, so those rows are blank (page 129). Hazardous waste rose from 38.5 t to 176.7 t year on year; the report gives no explanation on page 129. Waste data come from the ESG reporting system (page 129).

Policies related to own workforce

Reference: pages 135-137.

Workforce policies cover Hexagon AB, its subsidiaries and joint ventures under management control, and apply to employees, contractors and other personnel acting on Hexagon's behalf. The Board approves them. They were reviewed in 2025 without significant changes, and no formal stakeholder engagement was done when developing them (page 135).

Policies named: the Code of Business Conduct and Ethics (the framework for all workplace policies, with mandatory training), the Diversity, Equity and Inclusion Policy, the Unfair Discrimination and Harassment Policy and the Modern Slavery Statement (pages 135-137).

Points the report makes explicit (page 135):

• No specific commitments for particularly vulnerable groups beyond general inclusion and equal treatment.
• No standalone workplace accident prevention policy. Health and safety are covered in the Code and in a Health and Safety Management System that covers about 60% of employees.
• Concerns can be raised confidentially or anonymously through the Ethics & Compliance Reporting System or directly to the Chief Compliance Officer, with protection from retaliation.

The Modern Slavery Statement prohibits forced, involuntary and child labor. No reports related to modern slavery in the supply chain were received in 2025 (page 137).

Taking action on material impacts on own workforce

Reference: pages 140-142.

Hexagon's material negative impact is challenges in pay equity, career progression and workplace inclusion, described as systemic across technology-driven industries. It also identifies a material risk from workforce sustainability (talent shortages, recruitment costs, labor law changes) (page 140).

Five continuous action areas (pages 141-142):

• Equity and inclusion: inclusive hiring, mentoring, leadership forums, networks such as Femme Like You, and the 30% women in leadership target.
• Discrimination: reporting channels and no-retaliation processes.
• Transparency: an employee report on women and men at each job level.
• Community engagement and volunteering: the Care Program gives one paid day a year for volunteer work.
• Occupational health and safety: tracking of work-related injuries.

Actions do not need significant OpEx or CapEx (page 141). The 2025 Employee Engagement Survey had an 81.6% response rate, an Engagement Score of 74% (73% in 2023) and an Enablement Score of 77% (75% in 2023) (page 142). Hexagon took no remedy action on an actual workforce impact in 2025 because no such cases were reported. It also says a clear causal link between individual actions and employee outcomes is not yet established (page 142).

Targets related to own workforce

Reference: page 143.

Hexagon's single workforce target is 30% women in leadership positions by 2025, with a 2020 baseline. It was set after an analysis of external benchmarks and described as deliberately ambitious. It covers all employees in top management (page 143).

The target was not met. Hexagon will assess progress and the factors behind the shortfall in 2026 and decide whether to extend the target (page 143).

Three focus areas for the coming years: STEM engagement to build a talent pipeline, function-specific targets that reflect candidate availability, and tiered goals for entry-level, middle and senior management (page 143). Hexagon monitors other workforce KPIs, is evaluating whether quantitative targets would be appropriate, and is considering an employee engagement target in 2026 (page 143).

Characteristics of the undertaking's employees

Reference: pages 144-145.

Headcount at year end 2025 was 24,472 (24,802 in 2024): 18,554 men, 5,856 women and 62 other (page 144). Countries with at least 10% of employees: United States 4,404, India 2,927, China 2,817, Switzerland 2,053 and Germany 2,035 (page 144).

All employees are classed as permanent. 23,498 work full time and 974 part time (1,358 in 2024) (page 144). Hexagon cannot provide data on temporary or non-guaranteed-hours employees (page 144).

Hires and turnover, 2025 (page 145): 3,826 new hires (rate 15.6%) and 2,915 leavers (turnover 11.9%), against 2,809 hires (11.3%) and 2,794 leavers (11.3%) in 2024. Turnover is voluntary plus involuntary attrition divided by year-end employees.

Employees are those in an active employment relationship, excluding interns (page 145). The statement figures are year-end headcount; the financial statements show an annual average in Note 28 (page 210) (page 145). Data come from the Group HR systems (page 145).

Collective bargaining coverage and social dialogue

Reference: page 146.

28.7% of employees are covered by collective bargaining agreements globally, up from 19.1% in 2024. Agreements exist in several EEA jurisdictions, including Sweden, Spain, Portugal, Italy, France and the Netherlands (page 146).

Partly phased in. Hexagon says it applied the phase-in option and omitted certain S1-8 disclosures. It acknowledges the requirement to report coverage and social dialogue for each EEA country with more than 50 employees or more than 10% of the workforce. It has no consolidated country-level data systems of the required quality yet and expects to report this in future cycles (page 146).

Hexagon has no Global Framework Agreement with workers' representatives; representation runs through local employee councils (page 139). Its policies support freedom of association and the right to collective bargaining (pages 137, 146). The ESRS content index lists S1-8 at page 146 (page 172).

Diversity metrics

Reference: page 147.

Senior management (top management is defined as the Executive group and Job Level A) (page 147):

Board of Directors: 4 women (44.4%) and 5 men (55.6%) in both 2025 and 2024 (page 147).

Employees by age, 2025 (page 147): under 24: 1,420 (6%); 25-40: 12,626 (52%); 41-56: 8,345 (34%); over 57: 2,081 (9%).

Gap against the standard: Hexagon cannot yet report age groups as ESRS defines them (under 30, 30-50, over 50) and shows the categories its systems support. It will assess in the next cycle whether systems can be changed (page 147).

The women-in-leadership target is covered under S1-5 (page 143).

Adequate wages

Reference: page 148.

Hexagon reviewed each market in 2025 and found that 99.3% of employees earn at or above the applicable adequate wage benchmark, while 0.7% earn below it. It is evaluating the reasons and preparing steps to reach full compliance (page 148).

Method (page 148): adequate wages are defined per location using local benchmarks, or regional benchmarks where local ones are not available. Hexagon uses adequate wage benchmarks rather than local minimum wages, unless the minimum wage is equal to or higher.

Benchmark sources (page 148): global public benchmarks from Valuing Impact (Value Balancing Alliance), country-specific quarterly benchmarks from the WageIndicator Foundation, and non-EEA country benchmarks from the Global Living Wage Coalition.

Hexagon pays wages on time and in line with local law in every country, and says recruitment fees must not be charged to employees (page 148).

Training and skills development metrics

Reference: pages 149-150.

Hexagon delivered 89,240 training hours in 2025, an average of 3.6 hours per employee (page 149).

Partly phased in: Hexagon says it "has omitted breakdown by gender in its first reporting year under S1-13" (page 149). The statement has no formal employee development target and aims to set one by 2027 (page 149).

Programs include mandatory compliance training, product and functional training, leadership skills and an AI upskilling program that has trained over 80% of the workforce on AI principles (page 149). University partnerships support talent development (page 150). The ESRS content index lists S1-13 at pages 149-150 (page 172).

Health and safety metrics

Reference: page 151.

Hexagon says these figures show a need to strengthen coverage and performance and that it will assess how to improve them (page 151).

Partly phased in: disclosures on non-employees and on recordable work-related ill health were omitted in the first reporting year (page 151). Accounting principles define recordable injuries and say the rate is calculated per 1,000,000 hours worked, although the table reports the rate as a percentage (page 151).

The Health and Safety Management System covers the Autonomous Solutions Business Area and the manufacturing sites of Geosystems and Manufacturing Intelligence, about 60% of employees (page 135). Safety is tracked through work-related injury KPIs (page 142).

Remuneration metrics (pay gap and total remuneration)

Reference: page 152.

2025 is the first year the gender pay gap is reported, for all employees globally. Hexagon says it will keep tracking it to improve pay equity (page 152).

Definitions (page 152): the gender pay gap is the difference in average pay between women and men as a percentage of the average pay of men. Pay is basic salary plus benefits such as overtime, bonuses and other variable pay, using all employees' gross salaries. The remuneration ratio divides the highest-paid individual's annual total compensation by the median annual total compensation of all other employees. It includes base salary, bonus, stock and option awards, non-equity incentive pay, pension value changes and deferred compensation, but excludes the Long-Term Incentive Plan and uses targeted rather than actual compensation.

Datapoints 97a (gender pay gap) and 97b (CEO pay ratio) point to page 152 (page 174).

Incidents, complaints and severe human rights impacts

Reference: page 153.

No incidents of non-compliance with the UN Guiding Principles, the ILO Declaration on Fundamental Principles and Rights at Work or the OECD Guidelines were recorded (page 153).

Data on incidents reviewed, remediation plans implemented and incidents no longer subject to action will be presented in the next sustainability report (page 153). Hexagon reads the volume of cases as a sign that employees use the Speak-Up system (page 153).

The G1 chapter reports 5 discrimination incidents in 2025 and 3 in 2024 (page 169). The report does not reconcile this with the 11 above.

Policies related to value chain workers

Reference: pages 156-157.

Policies for value chain workers are the Supplier Code, the Code, the Conflict Minerals Policy, the Anti-Human-Trafficking Policy and the Environmental Policy. The Board approves them and reviews and re-adopts them annually with Executive Management. No formal stakeholder engagement was done when developing them (page 156).

• Supplier Code and Code: suppliers must respect human rights, avoid child labor and not engage in or tolerate trafficking or forced labor. The Code commits to the UN Global Compact principles and ILO standards (page 156).
• Conflict Minerals Policy: Hexagon does not source conflict minerals directly but some business areas are indirectly affected. In 2025, 706 suppliers possibly handled 3TG minerals (478 in 2024), and 502 of them submitted a conflict minerals reporting template (282 in 2024) (page 157).
• Anti-Human-Trafficking Policy: covers personnel, suppliers and partners, with monitoring by audits, self-assessments and site visits (page 157).

The Chief Compliance Officer is the most senior executive responsible. No severe human rights incidents connected to value chain workers were recorded, and Hexagon plans to develop remediation and mitigation measures in 2026 (page 156).

Taking action on material impacts on value chain workers

Reference: pages 160-161.

Hexagon says supplier due diligence found potential negative impacts on value chain workers in labor rights, health and safety, working hours, wages and exposure to hazardous substances, upstream and downstream (page 160).

Actions (pages 160-161): corrective action plans with suppliers, site visits, audits of high-risk suppliers, and training on human rights, environmental and labor practices. Significant breaches can escalate to contract termination or alternative sourcing. Corrective actions are tracked through the supplier assessment program, internal reviews and reporting mechanisms.

Resources (pages 160-161): dedicated compliance and supplier assessment teams, structured engagement processes and digital platforms to monitor supplier performance. Hexagon also gives guidance and capacity-building support to suppliers in high-risk regions. The compliance team decides the action case by case (page 160).

No severe human rights incidents were reported in Hexagon's supply chain in 2025. All identified non-conformities are monitored with active remediation plans (page 161). Major non-conformances found in key supplier audits: 0 (page 161).

Targets related to value chain workers

Reference: page 161.

Hexagon "has not yet established time-bound or outcome-oriented targets explicitly for value chain workers" and plans to assess which targets fit best, aiming to set them by 2027. No value chain workers or their representatives were engaged in setting targets (page 161).

It does keep a target to audit key suppliers in high-risk areas at least once every three years. The goal was last reached for fiscal year 2023, and all key suppliers in risk areas are to be audited again by the end of 2026 (page 161).

For the IRO on human rights due diligence gaps, Hexagon has set no target but plans a human rights due diligence assessment in 2026 (page 161). The audit measure is not validated externally other than by the assurance provider, and audits outside the platform may be missed (page 161).

Business conduct policies and corporate culture

Reference: pages 165-169.

The Chief Compliance Officer and central Compliance Team run the Ethics & Compliance System, built on the Code, the Supplier Code and the Ethics & Compliance Administration Manual. The Board is the highest level of accountability (page 165). In 2025, 450 senior managers and executives completed the annual certification (406 in 2024) (page 165). These documents manage the four material G1 IROs (page 165).

Programs described (pages 166-168): the Anti-Corruption Compliance Program, the Public Contracting Compliance Program, the Data Protection Compliance Framework (GDPR as the global baseline), cyber security (24,604 employees trained in 2025, against 21,990) and responsible AI governance based on seven guiding principles.

Whistleblowing (page 168): a confidential Ethics & Compliance Reporting System run by an independent third party, open 24/7/365 in multiple languages with anonymous reporting. Retaliation is prohibited. Hexagon states it is subject to the Swedish act transposing the EU Whistleblower Directive.

Metrics, 2025 (2024) (page 169): 97 (81) whistleblower reports, 86 (73) solved, 5 (3) discrimination incidents, 25,068 (24,154) people trained in the Code including contractors, anti-corruption policies communicated to 24,472 (23,654) employees.

Targets related to business conduct

Reference: page 169.

Back-filled from the business conduct chapter, where targets are addressed as part of the MDR-T/GDR-T disclosures rather than as a numbered disclosure requirement. G1-3 became a standalone DR only in the 2025/2026 ESRS.

Hexagon has set no time-bound or outcome-based business conduct targets. The report says Hexagon "has not yet established time-bound or outcome-based targets for its business-conduct IROs" (page 169).

Effectiveness is tracked instead through a stated level of ambition, with 2025 as the base period, monitored through these indicators (page 169):

• cases of corruption (2 confirmed in 2025, page 170)
• whistleblower reports (97 in 2025)
• employee training completion rates
• supplier audit results (page 161)

Hexagon says it monitors corporate culture KPIs and is evaluating whether quantitative targets are appropriate (pages 168-169). It plans to set relevant targets for corporate governance and anti-corruption across the value chain during 2026 (page 169). Data limits it names: possible under-reporting and delays in data entry, and metrics not validated externally other than by the assurance provider (page 169).

Incidents of corruption or bribery

Reference: page 170.

Hexagon recorded two confirmed incidents of corruption in 2025 and says all identified corruption cases were resolved. It reports no fines for violating anti-corruption laws in 2025 and no public legal cases (page 170).

The report does not describe the two incidents or the actions taken in the statement text. Page 169 adds that Hexagon received no legal penalties or negative financial impacts related to its governance practices in 2025.

Datapoints on fines for violating anti-corruption laws (24a) and on anti-corruption and anti-bribery standards (24b) point to page 170 (page 175).