SES

The role of the administrative, management and supervisory bodies

Composition of the Board

Our Board of Directors includes both executive and non-executive members, ensuring a balanced approach to governance. Employees and other workers are represented within our governance structure, contributing to diverse perspectives. The members possess extensive experience relevant to the satellite industry, including sectors, products, and geographic locations.

Gender diversity: The Board's gender diversity is calculated as an average ratio of female (40% in 2024) to male board members (60% in 2024).

Independence: The percentage of independent board members is 60%.

As of 31 December 2024, the Board of SES is composed of 10 non-executive directors, four of them female (40%). Six (60%) of the board members are considered independent: Fabienne Bozet, Peter van Bommel, Frank Esser, Ramu Potarazu, Kaj-Erik Relander and Katrin Wehr-Seiter. Four (40%) board members proposed by the B-shareholders are not considered independent as they each represent significant shareholders owning more than 5% of the company's shares: Anne-Catherine Ries, Jacques Thill, Françoise Thoma and Carlo Fassbinder.

Employee representation: Employees are represented on the board of directors of SES Astra as the holder of the State concession in accordance with relevant legal provisions. As part of a voluntary arrangement, the SES Astra board delegates one observer, chosen from among the employee representatives, to the SES Board.

The average age of the Board is 58.1 years. The maximum tenure on the Board is limited to 12 years. The age limit of the Directors is set at 72 years.

Board committees with sustainability oversight

The Board of Directors, along with specific committees such as the Audit and Risk Committee (ARC), oversees impacts, risks, and opportunities related to sustainability. The Audit and Risk Committee operates under a charter established by the SES Board, which is also part of the company's corporate governance charter. Both charters are publicly accessible on the company's website.

Audit and Risk Committee: The Audit and Risk Committee assists the Board in carrying out its oversight responsibilities in relation to corporate external policies, risk management, internal control, internal and external audit and financial and regulatory reporting practices. It further proceeds to the evaluation of potential deals, including financial due diligence, risk assessment and financing options before submission to the Board. It has an oversight function and provides a link between the internal and external auditors and the Board. It also defines and proposes to the Board the ESG Targets of the Company and monitors progress towards the accomplishment of the ESG Targets and compliance with the reporting requirements. Starting 2024, it has reviewed and recommended to the Board the double materiality assessment of the Company.

The Audit and Risk committee gets quarterly updates on the ESG strategy and the entire board gets periodic updates on the progress against the strategy ambitions.

Nomination and Governance Committee: In April 2024, the Nomination Committee was renamed into Nomination and Governance Committee. The Committee identifies and proposes suitable candidates for the Board of Directors, for election by the AGM of shareholders. It also identifies and proposes suitable candidates for the EC. The Committee furthermore analyses the outcome from the board self-assessments, defines action items and reviews the corporate governance documents accordingly.

Remuneration Committee: The Remuneration Committee assists the Board on the determination of the remuneration of the members of the Senior Leadership Team and advises on the overall remuneration policies applied throughout the Company. It acts as administrator of the Company's long-term equity plans.

Specific roles assigned

The Chief Executive Officer (CEO) directs the ESG strategy, with execution responsibilities delegated to the Director of Social and Environmental Impact, who reports to the Chief Legal Officer. This ensures integration into the company's direction and strategy.

Management's role includes monitoring, managing, and overseeing impacts, risks, and opportunities, involving dedicated controls and procedures integrated with other internal functions. The Board and senior executive management oversee the setting of targets related to material impacts, risks, and opportunities, and monitor progress towards these targets.

Other senior members of the leadership team are given targets and activities associated with the strategy for execution:

• Chief Product and Innovation officer: responsible for execution of circularity in our products
• Chief Financial officer: responsible for alignment of ESG targets with business planning and risk management integration of ESG risks as well as supply chain sustainability targets
• Chief Technology officer: has responsibility for GHG emission reduction initiatives in scope 1 and 2 of our facilities
• Chief Commercial officer: has responsibility for integrating ESG values into customer requirements and markets

The company has a dedicated Internal Audit function and ESG team. The Board approves the annual internal audit plan, which is reviewed by the ARC. The ESG team reports to the ARC on progress in ESG matters.

Sustainability expertise

The Board and management bodies possess or have access to sustainability-related expertise, leveraging external experts and providing training to ensure appropriate skills are available.

In the context of the Board composition, the SES Nomination Committee will consider a diverse Board as adding value to the Company by considering, among other things, professional background, experience, geographical background. In respect of professional background and experience, the Nomination Committee will consider various criteria, including but not limited to (i) international executive, management, board or professional experience, (ii) experience in and knowledge of the satellite or adjacent similar industries, (iii) video and data product knowledge, (iv) financial, tax, legal, regulatory, compliance, cyber-security, technology, human resources and ESG expertise, etc.

Frequency of sustainability discussions

The Board of Directors meets when required by the Company's business, and at least once per quarter.

In 2024, the Board of Directors held six regular in-person meetings, one extraordinary in-person meeting, and five extraordinary remote Board meetings, with an attendance rate of more than 97%.

The Audit and Risk Committee received quarterly updates on ESG targets, double materiality topics, performed a gap assessment and monitored the ESG strategy implementation.

Integration of sustainability performance in incentive schemes

Senior leadership's incentive packages include targets for GHG emissions (scope 1 & 2). Performance measures include energy efficiency projects, renewable energy installations, and biogas usage.

Performance Metrics in Remuneration Policies: Strategic Business Objectives (SBO) make up 30% of the SES Bonus Plan and SLT Bonus Plan, with one of the five SBOs being a sustainability target. Each SBO is measured against its KPI, and the combined achievement percentage is weighted at 30%, added to the company performance level (CPL) which makes up the other 70% of the bonus.

The Remuneration Committee included the ESG targets as a metric to determine vesting of Performance Shares for members of the EC.

Board activities in 2024

The main activities of the Board in 2024 included:

• approval of the 2023 audited annual accounts and the financial results for the first half of 2024
• approval of the dividend submitted to the shareholder meeting in 2024 and approval of the interim dividend paid in October 2024
• continuation and conclusion of the share buy-back programme of up to EUR 150 million
• approval of the final version of the 2025 Budget and the 2025–2029 Business Plan
• approval of the purchase of the Intelsat Group and related financings
• approval of the ESG targets and double materiality impacts, risks and opportunities

The Board was regularly updated on the development of the major projects, and it noted regular on the company's risk management report. The EC regularly informed the Board about the group's activities and financial situation and the Board oversaw the execution notably of (i) the Strategy Plan (including the ESG strategy), (ii) the 2024 Business Objectives, (iii) the O3b mPOWER programme, (iv) the Company's continued transformation programme, (v) the new Organisational Structure and (vi) the plan towards completion of the Intelsat acquisition.

Board self-assessment

With regard to the Company's corporate governance, the Board and the Committees have undergone a thorough self-assessment in 2024 with the assistance of an external expert consultant on corporate governance matters. The SES Board has defined a number of actions from the assessment, notably the extension of the remit of the Nomination Committee to include corporate governance matters.

Audit and Risk Committee activities in 2024

Ensuring thorough oversight, the Audit and Risk Committee reviewed key financial, internal control, risk management, and ESG strategies to uphold transparency, compliance, and forward-looking business planning.

Key activities included:

• Reviewed the 2023 financial results before their submission to the Board and their subsequent approval by the shareholders at the statutory AGM
• Reviewed the H1 2024 financial results of the Company
• Reviewed the Company's statement on internal control systems prior to its inclusion in the annual report, approved the Internal Audit plan, and received bi-annual updates on the Internal Audit activities and on the follow-up of the major recommendations
• Received quarterly updates on key risks from the SES Risk Management Group, on cyber security and was briefed on ongoing legal, compliance and whistleblowing matters
• Received updates on ESG targets, double materiality topics, performed a gap assessment and monitored the ESG strategy implementation
• Reviewed the Company's 2025 Budget and 2025-2029 Business Plan

Information provided to the Board

At each meeting, directors receive a report on ongoing matters and the Chairpersons of the committees set up by the Board present a report on the latest developments discussed in these respective committees. A business report and an internal SES inside report are distributed to the members of the Board on a regular basis.

Integration of sustainability-related performance in incentive schemes

Coverage and roles

Senior leadership's incentive packages include targets for GHG emissions (scope 1 & 2).

Sustainability KPIs tied to remuneration

Performance measures include:

• Energy efficiency projects
• Renewable energy installations
• Biogas usage

Weighting and structure

Strategic Business Objectives (SBO) make up 30% of the SES Bonus Plan and SLT Bonus Plan, with one of the five SBOs being a sustainability target.

Each SBO is measured against its KPI, and the combined achievement percentage is weighted at 30%, added to the company performance level (CPL) which makes up the other 70% of the bonus.

Link to incentive type

The sustainability targets are integrated into the bonus plans (short-term incentive structure).

Additional information

Other senior members of the leadership team are given targets and activities associated with the ESG strategy for execution:

• The Chief Executive Officer (CEO) directs the ESG strategy
• The Chief Product and Innovation officer is responsible for execution of circularity in products
• The Chief Financial officer is responsible for alignment of ESG targets with business planning and risk management integration of ESG risks as well as supply chain sustainability targets
• The Chief Technology officer has responsibility for GHG emission reduction initiatives in scope 1 and 2 of facilities
• The Chief Commercial officer has responsibility for integrating ESG values into customer requirements and markets

More information on the remuneration can be found in the remuneration section.

Our Company

We work together with our customers and partners to build meaningful solutions that bridge the digital divide and enable shared experiences in the world of data connectivity and media broadcast.

We are a trusted partner in space-based communications with a track record spanning over 35 years delivering critical infrastructure to world-leading telecommunications companies, mobile network operators, governments, institutions, internet service providers, cloud-based solutions businesses, broadcasters, video platform operators, and content owners.

We operate a multi-orbit satellite-based infrastructure - across Geostationary and Medium Earth Orbits (GEO & MEO) - covering over 99% of the Earth and delivering an attractive combination of high data rates, low latency, service reliability, and flexibility to meet our customers' requirements anywhere on earth. We also provide access to LEO via our partnerships.

54% of our revenue comes from the Networks business which supports the rapidly expanding global demand for high performance broadband connectivity solutions across the Government, Mobility, and Fixed Data segments.

Our Media business accounts for 46% of revenue, operating some of the most valuable television neighbourhoods and our established track record of delivering customer value and high quality viewing experiences to hundreds millions of TV homes, serving more than 1 billion people, around the world.

Our Business Model & Priorities

Our Bold Purpose

Satellite connectivity transcends boundaries, enabling seamless communication without limits anywhere on land, at sea, and in the air.

As a leader in space-based connectivity and content distribution, SES is poised to continue to play a pivotal role in meeting the world's growing demand for global, sophisticated and reliable connectivity solutions.

Our purpose is to harness the power of space to connect people and communities everywhere, delivering content that educates, entertains, protects, and empowers populations. By driving businesses and economies forward, enriching lives, and fostering innovation, we aim to redefine what is possible on earth, while we do the impossible in space and solidify our position as a top three satellite provider worldwide.

Our Strong Capabilities & Assets

Our multi-orbit network delivers global coverage with sophisticated, flexible solutions and high performance broadband, empowering customers with unmatched connectivity.

We support a large, highly cash flow generative, and resilient Media business, leveraging a broad TV audience reach in key neighbourhoods around the world.

With priority access to equatorial MEO Ka-band spectrum, and a diverse range of global spectrum bands (C-band, Ku-band, and Ka-band), we are well positioned to meet customer needs in market segments where we have a strong right-to-win.

Through an open innovation approach with strategic partners, we continuously enhance productivity, increase flexibility, and drive cost efficiencies.

Our disciplined financial policy, underpinned by robust investment grade balance sheet and strong cash generation, ensures profitable investments and consistent shareholder returns.

At the heart of our success is a diverse and talented team of experts from all walks of life, united by shared ambitions, goals, and a commitment to excellence. Together, we are building a sustainable, customer-centric business that drives innovation and delivers meaningful impact worldwide.

Our Clear Strategy

Our ambition is to be one of the leading, globally scaled satellite operators and solutions providers, delivering a profitable, sustainable, and growing business that makes a positive contribution to all stakeholders.

We deliver products and solutions to drive customers' success by providing secure, guaranteed high performance connectivity and offering global audience reach and reliable, cost-efficient broadcast solutions. We focus on enhancing our service delivery capabilities in a resource efficient manner, realising opportunities to reduce our greenhouse gas footprint and that of our customers and partners.

We focus on segments and customers where we deliver competitive offerings and sophisticated end-to-end solutions for end-users that are best addressed by MEO or GEO, either on a standalone basis or through seamlessly multi-orbit integration with terrestrial or other space-based networks. Our strategic priorities are centred on transformation, customer-centricity, investment in innovation, and operational excellence.

We are transforming SES into a leaner, fit-for-purpose organisation with a streamlined operating model that maximises productivity and efficiency. We are enhancing our capabilities through data and technology and expanding our offerings to better serve evolving market demands.

Our customer-centric approach ensures we design and deliver solutions in chosen segments where we have a strong right to win by meeting the growing needs of our clients across Government, Mobility, Fixed Data, and Media, taking advantage of our multi-orbit network, seamless integration with terrestrial networks, and digitalisation tools.

Increased digitisation creates additional social value and opportunity in communities where we operate, as well as influencing energy usage and our environmental footprint which can be better understood and quantified through lifecycle assessments.

By investing in innovation and diversification, we are continuously advancing our technology across the space and ground segment to stay at the forefront of connectivity solutions, strengthening our existing customer value propositions, and supporting our sustainability objectives. This provides opportunities to make a difference by further expanding connectivity to unconnected or under-connected communities, drive greater space sustainability, and/or address environmental challenges.

Finally, our commitment to operational excellence drives efficiencies across all sides of our business, enabling us to deliver consistent performance, maximise cash flow, and create long-term value.

Our Value Chain

SES operates in the satellite communications ('SatCom') sector of the space industry, which forms an integral part of the global communications infrastructure.

Upstream

Satellite design & manufacture SES's value chain begins with the design and manufacture of satellites. We work in partnership with leading satellite manufacturers such as Boeing, Airbus, and Thales Alenia Space, as well as innovative 'new space' companies, to design state-of-the-art satellites tailored to the needs of our target segments and customers.

Satellite launch After the satellites are built, they need to be launched into their designated orbits. SES partners with the world's leading launch providers such as SpaceX and ArianeSpace, to guarantee reliable and safe deployment of our satellite fleet.

SES Operations

Satellite Operation & Control (satellite-based services) We operate more than 70 satellites in two different orbits – in GEO and MEO – covering 99% of the world's population. We provide global broadcast distribution around the world and broadband coverage to key customer segments such as government, maritime, aviation, telecommunication, energy, and cloud.

Our chosen markets, products and services are closely aligned to our sustainability goals. We operate globally across all major regions, providing satellite broadcast services and connectivity in under connected areas.

Our customers have varying ESG objectives that align to some or all of our own sustainability ambitions to address robust and secure network needs, space sustainability practices, access to communications for emergency and disaster response, circularity of the products we offer, improved energy usage of our products, and decrease global greenhouse gas emissions.

SES operations comprise our own talented personnel, IT and infrastructure, a comprehensive network of gateways (see downstream Ground Segments for further information), teleports and fibre around the world that enable the connection to our satellites.

SES also makes use of other third party satellite capacity whenever there is a need to augment SES satellite capacity and optimise network connectivity for specific client needs.

Network Solutions & Integration Some satellite operators, such as SES, extend their value chain into downstream activities by providing value-added services to end-users. In selected segments, SES choses to bypass service providers by offering connectivity plus value-added services to the end-customer.

Downstream

Ground Segment To access our satellite services, customers rely on sophisticated ground equipment, including satellite dishes and network terminals. The ground segment network is comprised of gateway manufacturers and suppliers (upstream) and terminal manufacturers and suppliers (downstream). They design and deliver a large variety of software and equipment for both the management of satellite infrastructure, and for user access to services.

SES works with a wide range partners and suppliers such as Viasat, ALCAN, Isotropic Systems for customer terminals; Gilat and ST Engineering iDirect for modem platforms; and Pivotel and OTE for ground station equipment. These partners provide the required equipment and technology to ensure seamless connectivity between the satellite and end-user devices.

SES has approximately 30 SES owned or partner teleports, a comprehensive fibre-based terrestrial network, and numerous points of presence (POP). Some customers operate their own earth stations and provide SES with technical information on their uplinks of access to spectrum – or connection to our in-orbit satellites – and then redirect that capacity towards their end-users.

Network Solutions, integration, and analytical tools Beyond satellite capacity, SES provides end-to-end network solutions that include integration of satellite services with terrestrial infrastructure, data centres and cloud platforms. SES works with providers such as Amazon Web Services, Microsoft Azure, Reliance JIO, Orange, and others to offer customers integrated cloud solutions, access to 5G connectivity, making data storage and transmission more flexible.

SES also provides retail services to end-users through Service providers or vertically integrated operators. SES provides inflight connectivity services for Anuvu, Panasonic, Thales and Intelsat (Gogo), who through SES's capacity provides inflight connectivity for commercial airlines & business jets and Speedcast in the cruise segment which provides capacity for passenger & crew connectivity for cruise, commercial shipping & oil rigs. Our network solutions are designed to support industries like maritime, aviation, and government, providing global, secure, and high-bandwidth connectivity.

SES also offers customers analytical tools that monitor network performance, optimise bandwidth use, and ensure service quality, providing detailed insights to improve operational efficiency.

Customers & End-Users SES's ability to integrate satellite capacity with terrestrial networks, cloud infrastructure, and advanced data analytics ensures that our customers receive sophisticated, reliable, and flexible communication solutions that meet their unique needs.

SES's value chain, from satellite conception and launch to customer service and end-user support, is designed to ensure the best level of service excellence and operational efficiency. SES has the understanding, expertise, & capability to deliver integrated, sophisticated, end-to-end solutions through its value chain, empowering customers to meet their connectivity needs while delivering valued services to millions anywhere in the world.

Our Business Segments

Our revenue is divided between the Networks (representing the combination of our Government, Mobility, and Fixed Data segments) and Media business.

For the year ended 31 December 2024, we generated total revenue of €2,001 million and have a gross backlog of €4.8 billion including backlog with contractual break clauses.

Networks

The Networks business is divided between Government, Mobility, and Fixed Data.

For decades, we have been an established partner to government agencies and institutions in the U.S., Europe, and throughout the world. We deliver secure and reliable connectivity to support mission-critical requirements in the most demanding of locations.

The Mobility segment is split between inflight connectivity where we are a partner with airlines and service providers, and maritime connectivity with an impressive customer line-up which includes major cruise lines. Our competitive offerings allow customers to give passengers exceptional broadband experiences and drive efficiencies throughout their operations.

Our Fixed Data segment is enabling major telecom companies and mobile network operators to expand their coverage and connect more people in more places with 4G and 5G services. This segment also caters to the enterprise, energy, and cloud customer segments.

With commercial demand for reliable and high-quality connectivity everywhere expanding rapidly, SES is well positioned with our multi-orbit space-based network; proven and guaranteed high performance, sophisticated solutions; decades of expertise; and partnerships with major customers across the Government, Fixed Data, and Mobility segments.

Media

The Media business generates revenue from the combination of broadcast (primarily direct to home) neighbourhoods across the world, our direct-to-consumer platform in Germany, and a growing global sports & events offering.

Our global satellite infrastructure is relied on by the world's leading broadcasters, platform operators, and content owners to deliver entertainment, news, and information to audiences in 362 million direct to home (DTH), direct to cable (DTC), and Internet Protocol (IP) TV households across the globe. We operate valuable TV neighbourhoods in Europe, the U.S., Latin America, Africa, the Middle East, and Asia-Pacific.

When it comes to delivering the highest quality linear viewing experiences, satellite is most reliable and cost-competitive distribution platform for premium content such as live sports, news, and other entertainment in high definition.

SES also operates HD+, a leading direct to consumer TV platform in Germany serving nearly 2 million paying subscribers with high quality HD TV content at home and on the go.

Our Sports & Events business works with the world's largest sports organisations and events companies to distribute premium live sports and events every single day, including the most-watched sports events. In tandem with our vast reach, we enable our customers to connect with their audiences on all screen via cost-effective workflows that reduce complexity.

While changing viewing patterns will continue to weigh on demand for satellite capacity, viewing time of linear TV remains robust driven by major sports & events and our customers continue to make long-term contractual commitments and rely on SES to distribute their most valuable content and deliver the highest quality viewing experiences.

This not only reflects the attraction of our Media business, but also underpins the business' strong long-term cash generation fundamentals.

SES Networks Business Overview

Our Networks business operates a multi-orbit (MEO-GEO) constellation of satellites with the combination of global coverage and high performance, and low latency MEO system.

By leveraging a vast and intelligent, cloud-enabled network, we provide managed connectivity and data services sophisticated solutions to support a wide range of fixed and mobile applications to extend customers' network reach.

SES has been certified with the Metro Ethernet Forum (MEF) 2.0 industry standard, used to rate the performance of terrestrial networks. By adopting telco- and cloud-inspired practices, we are making it easier for customers to integrate satellite-based networks into the global ecosystem.

Our Networks products and services are focused on delivering secure, reliable, and high performing connectivity to customers across Government, Fixed Data, and Mobility segments.

We deliver: • A range of mobile (aviation and naval) connectivity, fixed network, and communications-on-the-move services, catering to a wide range of civilian and defence-related Government connectivity needs; • Trunking, mobile backhaul, and enterprise services for telecommunications companies, internet service providers, satellite service providers, mobile network operators, and enterprises; • Energy and mining solutions for service providers that support offshore exploration, offshore support vessels, and large production facilities in developing countries; and • Services to connect cruise lines, commercial aviation partners, business jets, and support telecom service providers to the commercial maritime industry.

In addition, we deliver connectivity to major cloud service providers and partner with them to power cloud-based applications to our other customers.

SES Media Business Overview

Our Media business has a reach of 362 million TV homes, serving over 1 billion people worldwide with high quality viewing experiences, and delivers managed media services.

With over 35 years of broadcasting experience, we are experts in designing systems to grow audiences, reduce costs, and maximise operational efficiency.

We are a trusted partner to the world's leading broadcasters, platform operators and content owners.

We deliver: • Linear video aggregation and distribution capabilities to hundreds of millions of direct-to-home (DTH), direct-to-cable (DTC), and Internet Protocol TV (IPTV) homes around the world; • Channel management solutions, including playout, which combine products to predefined end-to-end solutions capable of fitting different use cases; and • A range of occasional use services from providing extra capacity, processing content for live feeds, and redundancy features, working with the world's largest sports and events organisations.

At 31 December 2024, the SES distributed over 6,300 total TV channels to audiences around the globe.

In addition, SES operates HD+, a direct-to-consumer offering in Germany which enables viewers to access 26 private HD TV channels and three private UHD TV channels, as well as 50 free High-Definition TV channels, via a paid subscription.

Interests and views of stakeholders

Stakeholder identification and engagement approach

SES recognises the importance of engaging with its key stakeholders, which include employees, shareholders, investors, customers, suppliers, corporate partners, industry associations, NGOs, civil society, government, and academia. The frequency and forms of engagement vary according to the stakeholder category, with interactions occurring at least annually. For some stakeholders, such as customers and suppliers, engagement is more frequent and predetermined, while for others, it is on an occasional basis.

Each department within SES is involved in the engagement process, depending on the stakeholder category. This engagement aims to monitor performance, provide transparency, ensure that our values are respected within our value chain, and meet the expectations of society, employees, customers, and investors. It also fosters collaborations with other industry players, government bodies, and academia. The outcomes of these engagements are considered when defining the company strategy and prioritising projects. This information is also shared internally and in our annual report to ensure transparency with both internal and external stakeholders.

Stakeholder groups and engagement methods

Double Materiality Assessment stakeholder engagement (2024)

In 2024, SES conducted a Double Materiality Assessment (DMA), engaging representatives from all main stakeholder groups. The outcome of these conversations was used to define our materiality matrix and identify topics relevant to both our operations and stakeholders.

While we did not directly consult with affected stakeholders to understand the impact of our business activities on them, we did consult other external stakeholders, such as associations and sustainability industry groups. We relied on their insights to gain a comprehensive understanding of the interests and views of affected stakeholders.

Integration into strategy and business model

Considering the outcome of this assessment, SES's strategy and business model may be affected as follows:

Environmental Strategy:

• Adopting greener practices to reduce Scope 3 emissions, focusing on sustainability and eco-friendly products, and managing and reducing direct emissions to align with global standards.

Operational Strategy:

• Enhancing resilience to climate impacts by investing in robust infrastructure and disaster recovery plans, and implementing efficient resource use and sustainable practices in manufacturing.

Supply Chain and Resource Management Strategy:

• Ensuring ethical practices and compliance in the supply chain, developing efficient compliance strategies, and minimising environmental impacts by adopting sustainable practices.

Affected stakeholders vs. users of sustainability information

SES recognises stakeholders as both affected stakeholders (those impacted by the business) and users of sustainability information (investors, lenders). The engagement process includes both categories, with distinct approaches:

• Affected stakeholders (employees, suppliers, communities) are engaged through direct operational channels such as meetings, surveys, and representative partnerships.
• Users of sustainability information (investors, shareholders) are engaged through ESG reporting, ratings, conferences, and direct investor communications.

The stakeholder engagement process is embedded in SES's due diligence framework, with specific sections in the governance structure addressing stakeholder interests in all key steps of due diligence.

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

Overview

SES' core business is providing content and connectivity on a global basis via satellites. The company operates across all major regions, providing satellite broadcast services and connectivity in under-connected areas. Major customer market segments are Government, Aviation (in-flight connectivity services), Cruise ships, Telecommunications providers and TV Broadcast. SES operates in a B2B model serving businesses, governments and NGOs.

Material sustainability goals and impacts

Environmental:

• NetZero by 2050 target with near-term targets for scope 1 & 2 for a 50% decrease in emissions before 2030 (validated by SBTi)
• Goal to incorporate eco-design and circularity principles into products, services, and operations
• Striving to be a leader in sustainability in space environment by advocating and implementing industry leading operations practices for safe access to space
• Products, services and customers are all impacted by these goals
• Supply chain is critically affected by circularity goals

Social:

• Goals related to workforce to increase the representation of women in leadership position
• Focus to maximize use of critical infrastructure to benefit the planet
• Communities where SES operates are impacted by Diversity and inclusion goals
• Customers are impacted by efforts to maximize use of infrastructure through connectivity partnerships aligned with SDGs

Governance:

• Goals revolve around increased transparency and accountability of ESG into operations and with stakeholders
• ESG strategy developed and incorporated into overall company strategy including consideration of value chain, stakeholder interests, governance structure, and management of specific material ESG risks, impacts and opportunities

Strategy interaction

Considering the outcome of the double materiality assessment, SES's strategy and business model may be affected as follows:

Environmental Strategy:

• Adopting greener practices to reduce Scope 3 emissions
• Focusing on sustainability and eco-friendly products
• Managing and reducing direct emissions to align with global standards

Operational Strategy:

• Enhancing resilience to climate impacts by investing in robust infrastructure and disaster recovery plans
• Implementing efficient resource use and sustainable practices in manufacturing

Supply Chain and Resource Management Strategy:

• Ensuring ethical practices and compliance in the supply chain
• Developing efficient compliance strategies
• Minimising environmental impacts by adopting sustainable practices

Material impacts, risks and opportunities from Double Materiality Assessment

The 2024 Double Materiality Assessment identified the following material topics:

Time horizons defined:

• Short term (ST): 12 months
• Medium term (MT): ~2030
• Long term (LT): ~2050

These time horizons have been set to mirror the timelines used in SES's strategic planning and capital investment decisions.

Climate-related material impacts, risks and opportunities

SES uses the TCFD's recommendations to categorise climate-related risks and opportunities:

Physical Risks:

• Acute
• Chronic

Transition Risks:

Reputational:

• Emissions from Operations: SES operations, particularly satellite ground stations and data centres, are energy intensive. Failure to demonstrate a robust and transparent decarbonisation strategy aligned with science-based targets could lead to potential reputational damage, lost contracts, and difficulty in attracting ESG-focused investors
• Current Disclosure: Inadequate disclosures might be interpreted as a lack of commitment to sustainability, potentially resulting in loss of trust from customers, partners, and financial institutions

Market:

• Change in Investor Expectations: Investors are moving toward portfolios that prioritise ESG compliance and impact. SES must align with these expectations by demonstrating measurable progress in reducing emissions, adopting renewable energy solutions, and enabling sustainable technologies. Failure to do so could lead to divestment, reduced access to capital markets, or lower valuation
• Insurance Costs: Transition risks associated with higher insurance deductibles and lower coverage have been identified. Climate-related events increase operational uncertainties, making assets more expensive to insure
• Low Carbon Competition: Competitors offering low-carbon, energy-efficient satellite services or using green launch solutions may gain a competitive edge. SES risks losing market share if it cannot differentiate its products as both sustainable and efficient
• Change in Customer Demand: Demand for sustainable satellite services is rising as customers seek to decarbonise their own value chains. This is particularly relevant in industries like aviation and maritime

Policy and Legal:

• Carbon Pricing: The introduction of carbon pricing mechanisms across SES global operations could significantly increase costs
• Fossil fuel dependency: SES's reliance on fossil fuels for certain operations exposes the company to price volatility and increasing regulatory constraints, such as carbon taxes and fuel bans

Technology:

• Securing sustainable materials is necessary for SES operational resilience

Climate-related Opportunities:

• Product and Services
• Market
• Resource efficiency
• Resilience

Space sustainability material impacts and opportunities

Positive Impact: Space Sustainability

As SES implements its space sustainability initiatives, several positive impacts are expected:

• Improved environmental impact and operational performance
• Enhanced stakeholder trust and demonstration of leadership in responsible space operations
• Extending space sustainability-related initiatives to the value chain could further improve sustainability and reduce risks

Risk: Safe space operations

A safe space environment is a critical factor for SES operations. Ensuring consistent best practices among space operators limits the risk to operational disruptions and increased costs.

Resource use and circular economy material impacts and risks

Negative Impact: Waste Produced by Operations

SES generates waste from its operations, with limited visibility on how this waste is handled by its subcontractors. Improper disposal of this waste could lead to environmental pollution and health issues for surrounding communities. Additionally, the company could face operational and regulatory challenges.

Risk: Lack of Effective Waste Management

If SES fails to manage waste effectively, this could result in environmental contamination, regulatory penalties, reputational risks and potential fines.

Opportunity: Resource Use and Circular Economy Programme

Implementing a circular economy programme to optimise resource use could result in reduced waste and operational costs for SES. The company would benefit from cost savings and improved sustainability, customer satisfaction and ensure compliance to resource efficiency standards.

Own workforce material impacts and risks

Working Conditions:

Risk: Failure to respect labour regulations

If SES fails to respect labour regulations and international standards, this could result in legal penalties, fines and reputational damage.

Positive Impact: Benefits and Well-being Programme

Implementing a benefits and well-being programme for employees could result in improved employee satisfaction and retention. SES would benefit from a motivated workforce, employees would experience better well-being, and the company would see enhanced productivity.

Risk: Health and Safety Incidents

Health and safety incidents related to the installation, maintenance, and operation of critical infrastructures, including potential exposure to electromagnetic waves, may occur in SES operations. This could result in health risks for employees and potential regulatory penalties if regulations are not adhered to.

Equal treatment and Opportunities:

Risk: Weak Learning and Development (L&D) Programme

If SES's learning and development programme is weak, this could result in inadequate skill development and reduced employee engagement. SES would face challenges in maintaining a skilled workforce and potential productivity losses, while employees may experience limited career growth, potentially leading to higher attrition rates.

Positive Impact: Strong Social Programmes

Implementing strong social programmes could result in a more inclusive and innovative work environment. SES would benefit from a variety of perspectives, employees would enjoy a better work experience, and the company would see enhanced creativity and performance.

Risk: Lack of Broad Representation

The underrepresentation of women in the Science, Technology, Engineering, and Mathematics (STEM) fields continues to persist. SES could face reputational risks and potential challenges in attracting top talent due to a less inclusive culture.

Business conduct and corporate culture material impacts and risks

Risk: Unethical Business Practices

If SES's or suppliers' employees engage in unethical business practices, this could result in reputational damage, operational disruptions, financial risks and potential legal penalties. SES does operate in countries with risk of corruption.

Positive Impact: Compliance with Legal and Regulatory Environment (Including ESG Regulations)

SES places great emphasis on compliance with legal and regulatory requirements which reduces legal risks and enhances operational stability. SES benefits from strong regulatory relationships, while stakeholders experience increased trust in the company.

Opportunity: Corporate Culture Programme

A strong corporate culture supports improved employee engagement and operational performance. SES would benefit from a motivated workforce and enhanced productivity, while employees may experience better job satisfaction.

Opportunity: Sustainable Supplier Management Programme

A sustainable supplier due diligence process could result in improved supplier practices and reduced risks. SES would benefit from enhanced supply chain transparency and reduced operational risks, while suppliers may experience increased accountability.

ESG operational risks

SES recognises the effect ESG matters have on the company's everyday activities and the importance of having a sound risk management approach around those matters. SES is committed to conduct its business in accordance with highest standard governance processes and in a sustainable and environmentally friendly way. Failure to do so may have an adverse effect on the company's operation, financial results and reputation.

SES is in a process of identifying and evaluating relevant ESG related risks (including those related to climate) in order to ensure that necessary mitigating actions are in place. This is done in alignment with a double materiality process, considering and evaluating both risks and opportunities. The process includes engaging all relevant stakeholders and consulting external professional advisors. A number of such risks are closely linked to other areas and are already being mitigated, for example, risks relating to in-orbit failures and cybersecurity.

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

Double Materiality Assessment Overview

In 2024, SES conducted its first Double Materiality Assessment (DMA) in partnership with external consultants following EFRAG guidelines and best practices. The process involved evaluating sustainability topics from a dual perspective:

• Financial Materiality (Outside-In Impacts): Examining how social, environmental, and governance factors may affect the business and financial performance
• Impact Materiality (Inside-Out Impacts): Assessing the company's influence on society and the environment, including human rights and other relevant aspects

The DMA integrates sustainability into strategic decision-making, ensuring policies, action plans, metrics, and targets consider both financial and environmental/social factors.

5-Step Methodology

SES implemented a comprehensive five-step process to identify and assess material impacts, risks, and opportunities (IRO) in alignment with ESRS:

Step 1: Assess Value Chain / Business Context

Internal Sources:

• Internal Documentation Review: Analyse relevant documents, policies, impact reports, previous materiality assessments, and stakeholder findings through desk research, gap analysis, interviews, surveys and questionnaires
• Internal Stakeholder Outreach: Consult with responsible individuals in key business areas, management, and employees

External Sources:

• ESG Regulatory Landscape: Analyse global ESG standards as well as legal and regulatory obligations in key operational regions
• ESG Benchmark: Compare the materiality topics identified by industry peers and key leaders in the Telecom/Aerospace sector
• Analysts and Investors: Identify expectations from investors and ESG rating analysts such as MSCI, S&P, and Sustainalytics
• ESG Report Analysis: Assess the sustainability reports of key value chain actors
• Sectoral Reports: Identify global, sectoral, and specific sustainability trends, challenges, and risks relevant to the business model
• External Stakeholder Outreach: Engage with key stakeholders via interviews, surveys, and questionnaires to identify material topics

Step 2: Identify Material Impacts, Risks and Opportunities (IRO)

Based on findings from Step 1, SES developed an initial inventory of relevant topics and subtopics. This inventory was then validated and updated through a series of stakeholder engagement activities.

Step 3: Engage Stakeholders

SES engaged with a wide range of stakeholders, including employees, customers, suppliers, investors, and community representatives. This exercise was essential to gather the data that allows identification of all real and potential impacts, risks and opportunities of operations.

Stakeholder Groups:

• Economic Sphere: Shareholders, Customers, Suppliers, Investors, Corporate Partners
• Social & Public Sphere: Employees, Government, Civil society, NGOs, Industry Associations, Academia

While SES did not directly consult with affected stakeholders to understand the impact of business activities on them, the company did consult other external stakeholders, such as associations and sustainability industry groups, relying on their insights to gain a comprehensive understanding of the interests and views of affected stakeholders.

Step 4: Assessment Methodology and Approach

Financial Materiality Assessment:

SES reviewed the ESRS longlist of topics deemed material based on the 2021 materiality assessment and benchmarking results from 2024. A top-down exercise was conducted to identify key sustainability-related dependencies, risks, and opportunities, involving engagement with internal stakeholders from the Risk and Finance functions.

To evaluate financial materiality, SES applied qualitative thresholds considering financial effects on performance and business impact. The company plans to explore incorporating quantitative thresholds in the future.

The company assessed sustainability risks and opportunities based on their likelihood of occurrence and the potential magnitude of their financial effects in the short-, medium-, and long-term. This involves reviewing a list of potential material risks and opportunities and applying a set of objective thresholds for likelihood and magnitude, while also considering the nature of the financial effects.

Impact Materiality Assessment:

To assess the nature and severity of potential impacts, SES categorises impacts on a scale of one to four based on their scale, scope, and irremediable character. For negative impacts, the company considered scale, scope, and irremediable character. For positive impacts, scale and scope were assessed. For both positive and negative impact, likelihood of occurrence was assessed and mapped to a time horizon (Short, Medium, Long term).

Negative Impacts:

• Very High (4): Critical effects with widespread impact, impossible to repair
• High (3): Relevant effects, extended scope, low repair potential
• Moderate (2): Limited effects, localised scope, recoverable damage
• Low (1): Minimal impact, minor scope, and fully recoverable damage

Positive Impacts:

• Very High (4): Trend-changing benefits with widespread positive impact
• High (3): Relevant benefits with extended impact
• Moderate (2): Small, localised benefits
• Low (1): Minimal benefits in a minor or non-relevant area

Step 5: Determine Material Topics

During desk research and preliminary consultations, over 100 material topics were identified. To facilitate the assessment, these topics were grouped based on similarities and stakeholder feedback. This process resulted in a list of sustainability topics that form the long list of IROs.

All IROs on this list were then verified and supplemented through key stakeholder engagements. All IROs were scored, and workshop inputs were aggregated to calculate the 'degree of materiality' across 4 levels (low, moderate, high and very high). Participants validated the preliminary results, and further calibration was conducted before finalising the impact assessment.

Consolidated overviews of sustainability-related topics were presented to and discussed with the Board and management. As agreed with them, the materiality thresholds were set at 'high' or above. This means that impacts and risks scored as 'high' or above, along with their associated ESRS topics, are deemed material.

This process yielded a final list of 10 material impacts assessed as 'high' or above.

Scope and Assumptions

Own Operations: SES evaluated impact on people and the environment within own operations.

Value Chain: SES assessed value chain impacts and risks, primarily focusing on upstream activities. These assessments were based on internal knowledge, desk research and when possible validated through additional external engagement. They focused mainly on first-tier suppliers and customers.

Coverage: The sustainability statement has been prepared on a consolidated basis, aligning with the scope of financial statements. The statement covers both upstream and downstream value chain activities, including suppliers, own operations and use of products by customers.

Time Horizons

SES has opted to use alternative time horizons instead of those defined in ESRS 1. These Medium and Long term horizons have been set to mirror the timelines used in SES's strategic planning and capital investment decisions.

Climate-Specific IRO Process

GHG Emissions Assessment: SES employs detailed calculations of its carbon footprint, aligning with the GHG Protocol standards. This includes:

• Scope 1: Direct emissions from fuel and energy use in operations
• Scope 2: Indirect emissions from purchased energy e.g. electricity consumption
• Scope 3: Emissions from the broader value chain, such as supplier activities and customer usage

TCFD-Aligned Scenario Analysis: The process integrates insights from scenario analysis, examining various climate scenarios (e.g., 1.5°C, and >4°C warming) based upon the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA). This ensures SES remains prepared for different climate futures and their operational implications.

Scenario analysis examines potential climate-related risks that may impact SES in the short-term (ST, 12 months), medium term (MT, ~2030) and long term (LT, ~2050).

Climate Scenarios Used:

• 1.5°C: Aggressive mitigation, limiting warming to 1.5°C – Based on IPCC Assessment Report 6 (AR6) Scenario Shared Socioeconomic Pathway (SSP)1-1.9, RCP2.6 / IEA Net Zero Emissions by 2050 Scenario (NZE)

Assessment Scope: Based on TCFD climate related risks and opportunity categorisation, SES evaluation scope encompasses the entire value chain:

This value-chain approach ensures the identification of risks and opportunities that are both material to SES and aligned with stakeholder priorities.

Workforce-Specific IRO Process

The company employs a comprehensive process to identify and assess actual and potential impacts on the workforce, primarily through internal stakeholder engagement and surveys. Focus areas include:

• Digital transformation necessitating reskilling and upskilling initiatives
• Diversity and inclusion (d&i) and equal opportunities and treatment

The insights gained from assessing workforce impacts inform strategic decisions, leading to investment in training programmes to align workforce capabilities with strategic goals and promote d&i initiatives to improve employee satisfaction and reduce operational risks.

Frequency of Review

SES conducted its first DMA in 2024. The company has established a bi-annual materiality assessment review to capture any shifts in stakeholder expectations or regulatory standards, with a particular focus on water and climate-related metrics.

Data Limitations and Gap Assessment

SES has identified key limitations in data completeness:

Air Pollution:

• Internal data collection: Lack of a centralised system for gathering and quantifying pollution metrics such as emissions data across operations, air pollutants beyond CO2, and other waste byproducts
• Supplier and partner data gaps: Limited air pollution data from suppliers and partners
• Lack of benchmark data for validation: Absence of robust, pollution-specific benchmarks or industry comparisons

Water:

• Absence of data collection infrastructure: Since water use is not material, there is limited infrastructure for tracking and reporting water consumption across operations
• Lack of risk and impact assessment: Without an in-depth understanding of water's potential material impact

Mitigation Measures: SES plans to address these gaps by:

• Developing data infrastructure and strengthening monitoring systems
• Establishing a continuous materiality reassessment process
• Deploying systems to capture comprehensive pollution data by end of 2025
• Introducing new data-sharing protocols with leading suppliers
• Conducting water impact pilot study and scenario planning for water-related risks
• Conducting bi-annual consultations with key stakeholders
• Annual comprehensive benchmarking study
• Gap and limitation transparency in reporting

Transition plan for climate change mitigation

Scope and targets

SES is developing a transition plan to guide its sustainability efforts and incorporating Science-Based Targets initiative (SBTi) commitments. SES aims to mitigate climate-related risks and support global decarbonisation efforts.

In 2024, SES submitted its science-based targets (SBTi), which were validated in October of the same year. These targets reinforce our commitment to aligning with the latest climate science and contributing to the global effort to limit temperature rise. Our Scope 1 and 2 reduction goals follow a 1.5°C pathway, ensuring that SES actively reduces its direct and indirect emissions in line with international climate targets.

The plan applies to SES's entire global operation across more than 75 countries and covers all relevant business activities within our operational scope.

Our Climate Commitments:

By 2030: Achieve a 50% reduction in absolute Scope 1 and 2 GHG emissions from our 2019 baseline. This commitment is integral to SES's sustainability strategy, ensuring operational efficiency improvements while transitioning toward low-carbon technologies. Investments in energy efficiency, renewable energy, and electrification will play a central role in reaching this goal.

NetZero by 2050 target along with near-term targets for scope 1 & 2 for a 50% decrease in emissions before 2030. These are validated by SBTi.

Strategic pillars and decarbonization levers

To achieve these targets, we have identified several key strategic pillars, including:

Energy Efficiency

Energy efficiency is a core component of SES's transition strategy and represents one of the most significant material topics facing our organisation, driving both emissions reductions and operational resilience through the reduction of baseline energy consumption while enhancing efficiency across the infrastructure.

Key actions:

• Reduction of Baseline Consumption: SES optimises energy use and through targeted efficiency upgrades in operations.
• Technology-Driven Enhancements: Investments in energy-efficient cooling systems and LED retrofitting ensure long-term reductions in energy intensity and operational costs.

In 2024, several actions were implemented across several facilities, including the deployment of LED programme energy saving leading to estimated annual savings of 120 MWh / 45 tCO2eq emissions, or the optimisation of HVAC leading to estimated annual savings 300 MWh / 108 tCO2eq emissions.

Decarbonisation of Operations

On-site renewable, Solar PV in particular, is a critical pillar of SES transition strategy, and represents a critical enabler driving long-term cost savings while reducing potential exposure to energy price volatility and strengthen alignment with global decarbonisation targets.

In 2024, several Solar PV projects were implemented, across several facilities leading to estimated annual savings of 961 MWh / 97 tCO2eq emissions.

This year, our greenhouse gas (GHG) emissions targets were validated by the Science Based Targets initiative (SBTi). This significant milestone highlights both our leadership credentials and our commitment to the latest climate science. 2024 also saw the completion of renewable energy projects at three of our largest energy-producing sites, expected to save over 97 tonnes of CO2e annually.

Supply chain collaboration

Supply chain collaboration and visibility are critical for SES to achieve its climate goals. In 2024, SES launched a broader supplier engagement initiative to enhance sustainability performance across its value chain. As part of this effort, SES has drafted a sustainability supplier scorecard to assess supplier performance on key environmental criteria and inform sourcing decisions. This internal framework is still in development, with no external reporting planned until the next reporting cycle.

Alignment with Paris Agreement and scenario analysis

SES integrates climate scenario analysis into its decision-making to anticipate and mitigate risks associated with regulatory changes, market shifts, and environmental impacts.

The climate-related scenarios used in the analysis are described below:

1.5°C: Aggressive mitigation, limiting warming to 1.5°C – Based on IPCC Assessment Report 6 (AR6) Scenario Shared Socioeconomic Pathway (SSP)1-1.9, RCP2.6 / IEA Net Zero Emissions by 2050 Scenario (NZE).

This scenario depicts a world achieving net-zero global CO2 emissions around 2050. Society transitions to sustainable practices, prioritising well-being over economic growth. Investments in education and health rise, while inequality decreases. Although extreme weather events become more frequent, the worst impacts of climate change are averted. This is the only scenario aligning with the Paris Agreement's 1.5°C warming limit, with temperatures peaking at 1.5°C before declining to 1.4°C by century's end.

>4°C: Disorderly mitigation, warming exceeding 4°C – Based on IPCC Assessment Report 6 (AR6) Scenario Shared Socioeconomic Pathway (SSP) 5-8.5, RCP 8.5.

This is the highest emission scenario and worst-case scenario in temperature increase, as outlined by the IPCC, involves a doubling of current CO2 emissions by 2050. Rapid economic growth is fuelled by fossil fuels and energy-intensive lifestyles. The IPCC projects average global temperature to soar by 4.4°C by 2100.

Resilience of Strategy and Business Model

SES is currently developing a resilience analysis to assess and mitigate climate-related risks across its operations and value chain, both upstream and downstream. The final analysis is expected to be completed next year. The scope excludes operations with negligible climate impact, enabling a targeted and impactful approach.

The methodology integrates climate scenario analysis aligned with the Intergovernmental Panel on Climate Change (IPCC) and International Energy Agency (IEA) frameworks. These analyses consider potential impacts in the short term, medium term, and long term, offering a comprehensive understanding of SES's exposure and adaptive capacity under varying climate conditions.

Financial Effects and Mitigation Actions

SES anticipates both direct and indirect financial effects from climate risks:

Anticipated Financial Effects: Increased operational costs due to infrastructure upgrades, compliance measures, and investment in renewable energy projects.

Mitigation Actions: Proactive initiatives include securing renewable energy PPAs, strengthening facility resilience, and integrating adaptive technologies into daily operations.

In alignment with SES's ongoing climate adaptation and transition plans, the anticipated financial effects of sustainability initiatives are expected to include both direct and indirect costs and savings over time. These will primarily result from the implementation of measures to reduce emissions, enhance energy efficiency, and transition to sustainable sourcing. However, as SES is still in the process of finalising its adaptation plan, all anticipated financial effects are conditional upon the final decisions and strategies outlined in the plan.

Capital Investments: Initial investments may be required for upgrading infrastructure, technology, and processes to meet sustainability targets, such as transitioning to renewable energy sources and adopting energy-efficient systems. The specific investments will depend on the finalised adaptation plan.

Operational Costs: There may be increases in short-term operational costs related to sustainability initiatives, including higher costs for sustainable materials, emissions tracking, and compliance with new regulatory requirements. These costs will be assessed and refined as the adaptation plan progresses.

Cost Savings: Over time, SES expects savings from reduced energy consumption. The extent of these savings will be contingent on the finalised plan's scope and timeline.

Specific mitigation actions include:

• Cost Optimisation: SES will focus on optimising operational costs through resource efficiency, energy savings, and waste reduction, reducing the financial burden of implementing sustainability initiatives. Specific actions will be clarified once the adaptation plan is complete.
• Strategic Partnerships: Collaborating with stakeholders, including suppliers, technology providers, and industry partners, to leverage external expertise, share costs, and maximise the impact of sustainability investments. These partnerships will be explored further as part of the transition strategy.
• Phased Implementation: Implementing sustainability initiatives in phases to manage cash flow and spread capital investment costs over time, ensuring the financial feasibility of the transition plan. The timeline and phases will depend on the final adaptation plan.
• Government and Regulatory Incentives: SES will actively pursue government incentives, tax breaks, and subsidies available for green initiatives to offset upfront costs. The availability of such incentives will be evaluated as part of the adaptation plan.

Carbon credits and removals

SES is currently undertaking a climate adaptation plan which will provide the foundation for a concrete and comprehensive transition plan. This plan will address non-avoidable emissions by evaluating potential GHG removals and mitigation strategies. As part of this process, SES will explore various mitigation projects, including those financed through carbon credits, to offset its emissions. The evaluation will include GHG removal technologies and nature-based solutions to further reduce its carbon footprint. A full action plan, encompassing these mitigation and removal strategies, will be defined and detailed in the next reporting cycle, ensuring that SES's climate strategy evolves in alignment with emerging best practices and regulatory frameworks.

Carbon Credit Investments: Potential costs associated with purchasing carbon credits for offsetting non-avoidable emissions, depending on the availability and market price of credits. These investments will be evaluated in the context of the adaptation plan's final strategy.

Internal carbon pricing

SES is currently undertaking a climate adaptation plan which will help define a concrete transition plan. As part of this process, SES is exploring the potential implementation of an internal carbon pricing mechanism to facilitate informed investment decisions. The business case for these decisions, incorporating carbon pricing versus business-as-usual scenarios, is expected to drive higher profitability and accelerate the implementation of sustainability-focused projects. This approach could also influence the company's sourcing strategy, guiding procurement decisions to better align with long-term climate goals. The final decision on internal carbon pricing will be assessed later as part of the broader adaptation strategy.

Leveraging Internal Carbon Pricing: This will help integrate the true environmental cost into investment decisions, ensuring that sustainability initiatives are financially competitive and align with the company's long-term financial objectives. The final approach to internal carbon pricing will be confirmed as part of the adaptation plan.

Scope 3 and value chain considerations

SES has a goal to incorporate eco-design and circularity principles into our products, services, and operations. The products and services we provide as well as the customers that use these products are all impacted and impact the progress of these goals. Our supply chain is critically affected by these goals as we will be asking for their participation and partnership in achieving the adoption of circularity principles.

SES's environmental strategy is built on three fundamental pillars: emissions reduction, renewable energy adoption, and supply chain sustainability. The company has set ambitious GHG Scope 1 & 2 reduction targets, transitioning its facilities to cleaner energy sources and engaging with suppliers to drive sustainability across the value chain.

Policies related to climate change mitigation and adaptation

SES has developed a climate-related environmental policy in 2024 to support its climate change mitigation and adaptation ambitions.

Global Environmental and Circularity Policy (GECP)

Development and basis:

• Developed in 2024
• Based on risk management, governance, circularity and product sustainability, SBTi targets, and the material topics identified by the Double Materiality Assessment (DMA)

Key content and principles: The policy reflects SES's environmental ambitions and is structured around:

• Risk management
• Governance
• Circularity and product sustainability
• Science-Based Targets initiative (SBTi) commitments
• Material topics identified through the double materiality assessment

Note: While the company confirms it has been establishing processes and procedures that reflect its environmental ambitions and developed the Global Environmental and Circularity Policy in 2024, detailed information on scope, approval and oversight bodies, public availability, links to international standards, and monitoring mechanisms is not disclosed in the excerpts provided.

Actions and resources in relation to climate change policies

Overview

SES is developing an adaptation plan to address climate change policies and ensure alignment with regulatory and market expectations. This ongoing work includes assessing required actions and resource allocation to strengthen climate resilience across operations and the value chain. A comprehensive plan will be presented in the next reporting cycle.

Actions taken

1. Renewable Energy Projects

Description:
2024 saw the completion of renewable energy projects at three of SES's largest energy-producing sites.

Scope:
Own operations

Expected outcomes:
Expected to save over 97 tonnes of CO₂e annually.

Link to targets:
Supports the 50% absolute reduction in Scope 1 and 2 GHG emissions by 2030 from 2019 baseline.

2. Science Based Targets Initiative (SBTi) Validation

Description:
In 2024, SES submitted its science-based targets (SBTi), which were validated in October of the same year.

Scope:
Corporate-wide (all relevant business activities across operations in more than 75 countries)

Time horizon:
2030 target year

Link to targets:
Scope 1 and 2 reduction goals follow a 1.5°C pathway. Target: 50% absolute reduction in Scope 1 and 2 GHG emissions versus 2019 baseline by 2030.

Resources (non-financial):
Senior leadership's incentive packages include targets for GHG emissions (Scope 1 & 2). Performance measures include energy efficiency projects, renewable energy installations, and biogas usage. Sustainability targets comprise one of five Strategic Business Objectives (SBOs), representing 30% of the SES Bonus Plan and SLT Bonus Plan.

3. Solar Panel Installation at Betzdorf Site

Description:
Solar panel installation at the Betzdorf headquarters site.

Scope:
Own operations (Betzdorf HQ)

Link to strategy:
Part of site-level sustainability initiatives supporting renewable energy transition and operational efficiency.

4. Energy Efficiency Initiatives

Description:
Investments in energy-efficient technologies for SES facilities.

Scope:
Own operations (buildings and facilities)

Measures include:

• LED lighting upgrades
• Advanced cooling systems
• Smart energy management solutions

Expected outcomes:

• Significantly reduce operational costs
• Cut emissions
• Demonstrate leadership in operational excellence

Link to strategy:
Supports the climate commitment to achieve 50% reduction in absolute Scope 1 and 2 GHG emissions by 2030. Investments in energy efficiency, renewable energy, and electrification will play a central role in reaching this goal.

Governance and Resources

Organizational resources:

• Dedicated ESG team reporting to the Audit and Risk Committee
• Director of Social and Environmental Impact reports to Chief Legal Officer
• Chief Product and Innovation Officer responsible for execution of circularity in products
• Internal Audit function with Board-approved annual audit plan

Management incentives:
Sustainability targets (including GHG emissions Scope 1 & 2) are embedded in executive compensation:

• Strategic Business Objectives (SBO) make up 30% of the SES Bonus Plan and SLT Bonus Plan
• One of five SBOs is a sustainability target
• 2024 total bonus achievement: 120.09% for Executive Team members

Mitigation Actions

Proactive initiatives underway include:

• Securing renewable energy Power Purchase Agreements (PPAs)
• Strengthening facility resilience
• Integrating adaptive technologies into daily operations

Future Plans

A comprehensive climate adaptation plan including detailed actions and resource allocation will be presented in the next reporting cycle.

Targets related to climate change mitigation and adaptation

SES has established science-based targets validated by the Science Based Targets initiative (SBTi) in October 2024. These targets align with a 1.5°C pathway and reinforce the company's commitment to climate science and global temperature limitation efforts.

Climate Commitment Target

Target Description

By 2030: Achieve a 50% reduction in absolute Scope 1 and 2 GHG emissions from our 2019 baseline.

This commitment is integral to SES's sustainability strategy, ensuring operational efficiency improvements while transitioning toward low-carbon technologies. Investments in energy efficiency, renewable energy, and electrification will play a central role in reaching this goal.

Strategic Pillars Supporting Target Achievement

Energy Efficiency:

• Reduction of baseline consumption through optimised energy use and targeted efficiency upgrades
• Technology-driven enhancements including energy-efficient cooling systems and LED retrofitting
• 2024 achievements: LED programme savings of 120 MWh / 45 tCO2eq annually; HVAC optimisation savings of 300 MWh / 108 tCO2eq annually

Decarbonisation of Operations:

• On-site renewable energy (Solar PV) deployment at key operational sites
• 2024 achievements: Solar PV projects delivering 961 MWh / 97 tCO2eq emissions savings annually

Supply Chain Collaboration:

• Broader supplier engagement initiative launched in 2024
• Development of sustainability supplier scorecard (in progress, no external reporting until next cycle)

Progress to Date (2024)

While Scope 1 emissions decreased significantly by 20.1% in 2024, Scope 2 emissions increased due to higher electricity consumption in locations with higher grid carbon intensity and changes in residual grid mix emissions. The company reports both location-based and market-based Scope 2 methodologies in accordance with the GHG Protocol Scope 2 Guidance.

Energy consumption and mix

Not disclosed.

SES has not reported energy consumption and mix data in accordance with ESRS E1-7 (formerly E1-5). The sustainability statement acknowledges ESRS E1-7 as 'Not Material' in the materiality assessment table (page 93). While the report discusses energy efficiency initiatives (LED programs, HVAC optimization, solar PV installations) and renewable energy projects in the context of climate strategy and transition planning (pages 52, 56), no disaggregated energy consumption metrics by source type are provided.

The company is in the early stages of CSRD implementation and has applied phase-in provisions. Total energy consumption figures, fuel consumption by type (coal, oil, natural gas), purchased electricity/heat/steam/cooling by source, renewable energy breakdown, and energy intensity metrics are not disclosed in this reporting cycle.

Gross Scopes 1, 2, 3 and Total GHG emissions

Scope 1 GHG emissions

Scope 2 GHG emissions

Scope 3 GHG emissions by category

Total GHG emissions

Performance and progress, Scope 1 + 2 GHG Emissions – Market Based

Performance and progress, Scope 1 + 2 GHG Emissions – Location Based

Methodology notes

SES adheres to the following internationally recognised standards:

• The Greenhouse Gas Protocol, a Corporate Accounting and Reporting Standard (Revised Edition)
• Defra Environmental Reporting Guidelines, including streamlined energy and carbon reporting guidance (2021)
• The Greenhouse Gas Protocol Scope 2 Guidance

SES follows a structured approach to emissions accounting, integrating operational boundary definition in accordance with the GHG Protocol. Scope 2 emissions are reported using both market-based and location-based methodologies.

For the 2024 reporting cycle, SES has continued using a spend-based methodology for Scope 3 emissions. Until 2023, the cost of launchers and satellites was accounted for at the launch date, even though these costs were incurred over multiple years. From 2024 onwards, SES has adopted a new approach based on contract milestone payments, which more accurately reflects actual cash flow and smooths yearly variations in emissions reporting. This updated methodology has been applied to both 2023 and 2024 emissions data for consistency.

Scope 3 categories not included: Categories 8-15 are not reported (Upstream leased assets, Downstream transportation and distribution, Processing of sold products, Use of sold products, End-of-life treatment of sold products, Downstream leased assets, Franchises, Investments).

GHG intensity

No GHG intensity metric (emissions per net revenue) was disclosed in the extracted sections.

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

In alignment with SES's ongoing climate adaptation and transition plans, the anticipated financial effects of sustainability initiatives are expected to include both direct and indirect costs and savings over time. These will primarily result from the implementation of measures to reduce emissions, enhance energy efficiency, and transition to sustainable sourcing. However, as SES is still in the process of finalising its adaptation plan, all anticipated financial effects are conditional upon the final decisions and strategies outlined in the plan.

Capital Investments

Initial investments may be required for upgrading infrastructure, technology, and processes to meet sustainability targets, such as transitioning to renewable energy sources and adopting energy-efficient systems. The specific investments will depend on the finalised adaptation plan.

Operational Costs

There may be increases in short-term operational costs related to sustainability initiatives, including higher costs for sustainable materials, emissions tracking, and compliance with new regulatory requirements. These costs will be assessed and refined as the adaptation plan progresses.

Cost Savings

Over time, SES expects savings from reduced energy consumption. The extent of these savings will be contingent on the finalised plan's scope and timeline.

Carbon Credit Investments

Potential costs associated with purchasing carbon credits for offsetting non-avoidable emissions, depending on the availability and market price of credits. These investments will be evaluated in the context of the adaptation plan's final strategy.

Mitigation Actions

To manage the anticipated financial impacts, SES will implement several mitigation actions, which remain subject to the outcomes of the ongoing adaptation plan:

Leveraging Internal Carbon Pricing

This will help integrate the true environmental cost into investment decisions, ensuring that sustainability initiatives are financially competitive and align with the company's long-term financial objectives. The final approach to internal carbon pricing will be confirmed as part of the adaptation plan.

Cost Optimisation

SES will focus on optimising operational costs through resource efficiency, energy savings, and waste reduction, reducing the financial burden of implementing sustainability initiatives. Specific actions will be clarified once the adaptation plan is complete.

Strategic Partnerships

Collaborating with stakeholders, including suppliers, technology providers, and industry partners, to leverage external expertise, share costs, and maximise the impact of sustainability investments. These partnerships will be explored further as part of the transition strategy.

Phased Implementation

Implementing sustainability initiatives in phases to manage cash flow and spread capital investment costs over time, ensuring the financial feasibility of the transition plan. The timeline and phases will depend on the final adaptation plan.

Government and Regulatory Incentives

SES will actively pursue government incentives, tax breaks, and subsidies available for green initiatives to offset upfront costs. The availability of such incentives will be evaluated as part of the adaptation plan.

These measures will help SES navigate the financial challenges associated with its sustainability commitments while ensuring long-term value creation. However, the specific actions and financial impacts will be finalised once the adaptation plan is complete.

Policies related to own workforce

SES has disclosed several policies related to its own workforce under ESRS S1-1.

Code of Conduct

Policy name: Code of Conduct

Key content and principles: The Code of Conduct represents SES's main internal policy. It covers a range of issues including:

• Bribery and facilitation
• Political activities
• Sanctions and export controls
• Competition/antitrust
• Anti-money laundering
• Intellectual privacy
• Antiboycott
• Insider trading
• Conflicts of interest
• Fair employment
• Harassment
• Contractors and agents
• Data protection
• Fundamental rights
• The environment
• Health and safety
• Use of social media
• Trafficking in human beings, forced labour or compulsory labour, and child labour

Many of these topics are also addressed in separate detailed policies. The Code was signed by the CEO of SES.

Scope: All employees, contractors, and subcontractors

Governance: Signed by the CEO of SES. All internal policies related to Business conduct are under the responsibility of the VP of Legal and Regulatory Affairs. The Code is reviewed and consulted with European personnel delegations.

Linkage to international standards: All internal policies and regulations are developed in line with:

• Principles of the UN Global Compact (UNGC)
• Universal Declaration of Human Rights
• Principles laid down in the International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work

Public availability: The Code of Conduct is available on the SES website. An updated version was planned for release in 2024 to highlight ESG commitments such as human rights.

Monitoring and implementation:

• Mandatory compliance training programme ensures the entire workforce adheres to expected standards
• Every two years, all SES employees are required to complete mandatory training sessions covering Code of Conduct
• Average 83+% completion rate for online sessions
• Prior to hiring contractors, SES provides appropriate education on mandatory requirements of policies and takes necessary action, up to and including terminating a contract with a contractor who fails to abide by SES policies

Anti-Harassment Policy

Policy name: Anti-Harassment Policy (also referred to as "Policy against harassment")

Key content and principles:

• Strict zero-tolerance policy towards any form of harassment or inappropriate behaviour
• Covers harassment based on gender, race, colour, age, religion, national origin, marital status, sexual orientation, disability, health status, veteran status, or any other legally protected characteristic
• Individuals who believe they have been impacted by harassment can request assistance to support them through the reporting procedure
• SES has committed to providing updates on the process and outcome of any claim to health and safety

Scope: All SESers

Monitoring and implementation:

• All SESers are required to undergo anti-harassment training
• Training designed to increase awareness, provide tools for intervention, and foster a workplace culture that rejects discrimination and harassment in all forms
• Mandatory training every two years

Note: SES does not have a specific policy commitment related to inclusion or positive action for people from groups at particular risk of vulnerability.

Environmental, Health and Safety Charter

Policy name: Environmental, Health and Safety Charter

Key content and principles:

• Policy statement from SES that describes a systematic approach to identifying, evaluating, and managing environmental, health, and safety risks through teamwork and leadership commitment
• Outlines SES's commitment to continuous improvement, communication, education, and training in the areas of environmental protection, health, and safety measures
• Policies and expectations for environmental protection across the value chain

Linkage to international standards:

• SES adheres to ISO45001 'Occupational health and safety management systems', which provides a framework for managing risks and opportunities
• Sites worldwide comply with and often exceed local and international health and safety regulations

Monitoring and implementation:

• Conduct risk assessments across all business activities
• Proactive approach to mitigating health and safety risks
• Strengthened Global Environmental, Health and Safety framework to further embed safety as a core value
• Onboarding training programme encompasses risk identification and mitigation, promoting a culture of safety awareness
• Regular two-day first aid courses conducted by CGDIS: by 2024, 18% of workforce at Betzdorf Headquarters were certified
• Zero major work-related injuries or ill-health incidents recorded in 2024

Leave Guidelines

Policy name: SES Leave Guidelines

Key content and principles:

• Ensures that all SESers across all locations enjoy a minimum amount of leave when welcoming a child into their lives
• Coverage for loss of income due to employment injury, acquired disability, parental leave, and retirement through contractual agreements
• Coverage for loss of income due to sickness or unemployment varies by country

Scope: All SESers across all locations

Social Partner and Union Engagement

SES works regularly with social partners and unions to define policies as required by local legislation.

Taking action on material impacts on own workforce

Equal Treatment and Opportunities

Diverse Workforce

A diverse workforce and an inclusive environment are integral to SES success. The company strives to ensure people feel valued, respected, and empowered to thrive as individuals, nurturing leaders who are inclusive, create safe spaces, and inspire others.

Scope: Global level, ensuring consistency and inclusivity across all operations

Addressing Material Negative Impacts and Managing Risks

Risk of Lacking Diversity in Workforce: SES acknowledges the risk associated with a lack of diversity in the workforce, which can hinder innovation and limit perspectives. Comprehensive strategies have been implemented to nurture leaders and enhance opportunities at all levels of the organisation.

Commitment to Gender Diversity - Key Actions:

• Mentoring programmes to provide guidance and support
• Coaching: Offering coaching sessions in 2023 and 2024 to support career development
• Tracking Resignation Drivers: Monitoring and addressing factors contributing to employee resignations
• Promotion Cycles: Ensuring all viable candidates in promotion considerations

Pursuing Material Opportunities and Positive Impacts

Developing and Fostering a Strong Social Programme: Social programmes are designed to create a workplace that values every hue, background, and perspective. SES is committed to hiring inspiring individuals from all backgrounds and ensuring safe and inclusive processes for recruitment, retention, and evolution of all employees, regardless of gender, race, ethnicity, religion, sexual orientation, disability, veteran or marital status, or background.

Engagement: Meeting at least twice per year with Equal Opportunities officers and personal delegations to discuss progress and performance.

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Training and Skills

SES provides comprehensive learning and development opportunities to empower employees with knowledge and continuous learning tailored to individual roles and skills.

Key Initiatives:

• Modern workplace learning approach: Accessible, flexible, and impactful learning experiences with microlearning opportunities alongside traditional courses
• Internal compliance training: Mandatory programme ensuring entire workforce adheres to expected standards
• External learning resources: Certifications, accredited degree programmes, executive education, language courses, and professional coaching
• 5 Key Skilling Initiative: Focus on Project Management, Customer Centricity, Operations, Generative AI, and Data Literacy
• Partnership with GVF: First digital badging initiative for satcom education, providing employees with tangible way to showcase newly acquired skills and competencies

Training Metrics:

• Average training hours for male employees: 6.5 hours
• Average training hours for female employees: 6 hours
• Performance conversations: 74% male employees, 26% female employees participated

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Working Conditions - Health and Safety

SES maintains ongoing commitment to safe and healthy work environments for employees, partners and customers.

Key Actions:

• Regulatory compliance: All sites worldwide comply with and often exceed local and international health and safety regulations
• ISO45001 adherence: 'Occupational health and safety management systems' framework for managing risks and opportunities
• Global Environmental, Health and Safety framework: Strengthened to further embed safety as a core value
• Risk assessments: Conducted across all business activities with proactive approach to mitigating health and safety risks
• Onboarding training programme: Encompasses risk identification and mitigation, promoting culture of safety awareness
• First aid courses: Regular two-day courses conducted by CGDIS; by 2024, 18% of workforce at Betzdorf Headquarters were certified. Special focus on certifying shift workers with flexible scheduling

Outcomes: Zero major work-related injuries or ill-health incidents recorded in 2024

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Working Conditions - Employee Well-being

Employee well-being is a top priority, fostering a safe and supportive working environment while enhancing overall productivity and job satisfaction.

Key Initiatives:

• Expert sessions: Informative sessions with experts throughout the year to assist employees in preventing work-related stress and navigating change
• Local supplementary services: Access to health insurance and sports classes both on and off campus at certain locations
• Employee Assistance Programme (EAP): Launched in 2024, freely available to SES employees and immediate family members in Belgium, France, Germany, Greece, Italy, Luxembourg, Romania, Spain, Sweden, The Netherlands, UK, and Ukraine. Provides access to wide range of independent and confidential advisory and support services. Similar programmes offered to employees in US and Brazil
• Flexible working conditions: Support for employees in balancing work and personal life through flexible schedules

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Social Protection

Coverage: All SES employees are safeguarded against loss of income due to employment injury, acquired disability, parental leave, and retirement through contractual agreements, even in countries where public social protection is lacking (e.g., Ghana, Singapore, Ethiopia).

SES Leave Guidelines: New set of guidelines ensures all employees across all locations enjoy a minimum amount of leave when welcoming a child into their lives.

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Anti-Harassment

Policy and Training:

• Zero-tolerance policy towards any form of harassment or inappropriate behaviour
• All employees required to undergo mandatory anti-harassment training
• Training designed to increase awareness, provide tools for intervention, and foster workplace culture that rejects discrimination and harassment in all forms

Characteristics of the undertaking's employees

Total headcount and FTE

31 December 2024:

• Total headcount: 2,134 employees
• Average number of employees throughout the year: 2,188 employees
• Full-time equivalent (FTE) permanent employees: 2,088 FTE
• Female FTE permanent: 525 FTE
• Turnover rate: 17.1%

31 December 2023:

• Total headcount: 2,294 employees (full-time equivalent)

Headcount by gender

Headcount by country/region

The workforce is distributed among 32 locations and is mostly concentrated in:

• Luxembourg
• United States
• Germany
• The Netherlands
• Israel
• Romania

Headcount by employment type

External workforce

At the end of 2024, the external workforce consisted of 581 resources, including Temporary Resources, Contractors and Service Providers.

Employee turnover

• Turnover rate for 2024: 17.1%

Collective bargaining coverage

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

Total non-employee workforce

SES's external workforce at the end of the year 2024 consists of 581 non-employee workers.

Breakdown by type

The external workforce comprises three categories of resources:

• Temporary Resources
• Contractors
• Service Providers

Methodology

Counting methodology: The figure of 581 represents a headcount count as at 31 December 2024.

Definition and recruitment process: To define, recruit and contract these resources SES has defined an External Workforce process. The incorporation of these resources is tied to business requirements to be fulfilled.

Purpose by type:

• Temporary resources are typically employed to support SES employees for limited periods of time
• Contractors and Service Providers are hired to bring in expertise on specific projects

Policy coverage

All SES internal policies apply to all employees, contractors, and subcontractors. Prior to hiring contractors, SES provides the party with an appropriate education on the mandatory requirements of its policies and takes necessary action, up to and including terminating a contract with a contractor who failed to abide by SES policies.

Access to reporting channels

The online Whistleblower tool is available to both SES employees and external workers.

Collective bargaining coverage and social dialogue

While SES has no European Works Council in place, the company has now initiated the process to set one up.

Collective bargaining coverage and workers' representatives by location

Diversity metrics

Gender and age distribution

Strategic goals

SES has goals related to the workforce to increase the representation of women in leadership positions.

Adequate wages

SES ensures wage adequacy by annually purchasing, analysing, and monitoring external benchmark data for all roles and job grades in each country where it operates. This process guarantees that employees' compensation aligns with market standards and exceeds established adequacy thresholds.

SES adopts a compensation strategy aimed at paying above the country average, specifically targeting the 75th percentile (P75) for each role. Regular monitoring and benchmarking enable SES to maintain compliance with its pay philosophy and address any discrepancies proactively, ensuring all employees receive competitive and adequate wages.

Benchmark used

External benchmark data targeting the 75th percentile (P75) for each role in each country where SES operates.

Coverage

All roles and job grades in each country where SES operates (specific percentage not disclosed).

Geographic scope

All countries where SES operates (specific countries not enumerated for wage adequacy; gender pay gap analysis conducted for Luxembourg, The Netherlands, Germany, US, and Israel).

Methodology

Annual purchasing and analysis of external benchmark data; targeting P75 market position; regular monitoring to address discrepancies.

Targets

No specific forward-looking targets disclosed.

Value chain

No mention of extending wage adequacy assessment to value chain workers.

Social protection

Coverage and scheme types

Most of SES employees are covered by public social protection programmes. However, there are a few exceptions.

Country-specific exclusions and gaps

Ghana:

• The Labour Act does not clearly specify provisions for paid sick leave or its duration
• The government does not provide unemployment benefits to job seekers

Singapore:

• Unemployment benefits are not available to non-Singaporeans or non-permanent residents

Ethiopia:

• Under the 2003 Labour Proclamation, employers are required to provide severance pay
• The state does not offer unemployment benefits

Contractual protections

Even in countries where public social protection is lacking, all SES employees are safeguarded against loss of income due to:

• Employment injury
• Acquired disability
• Parental leave
• Retirement

These protections are provided through contractual agreements.

Coverage limitations

Coverage for loss of income due to sickness or unemployment varies by country.

A new set of SES Leave Guidelines ensures that all employees across all locations enjoy a minimum amount of leave when welcoming a child into their lives.

Benefits provided

Employee benefits include:

• Pension plans (defined contribution schemes in various jurisdictions)
• Death and disability insurance
• Health care plans
• Car allowances
• Tax support for certain employees
• Reimbursement of education fees for dependent children (for certain employees)

Pension scheme details

Luxembourg:

• Employer contribution rate of 7% up to the Social Security Ceiling (SSC)
• 19% for the portion of salary above the SSC
• Complementary pension scheme is a defined contribution scheme

United States:

• Restoration plans supplement tax-qualified, defined-contribution pension account defined in subsection 401(k)

Netherlands:

• Pension contributions are age-related
• Employer contribution is capped at 20.2% of the maximum pensionable salary

United Kingdom:

• Pension contribution is at 12% of yearly base salary

Persons with disabilities

Currently, SES does not collect data on the percentage of employees with disabilities. The company acknowledges the importance of understanding the inclusion of persons with disabilities within its workforce, as outlined in ESRS S1-12.

Future approach

SES is exploring ways to responsibly collect and manage this information while ensuring compliance with applicable legal restrictions on data collection. As part of this effort, the company is assessing methodologies for data gathering, including voluntary self-identification mechanisms, and will engage with relevant stakeholders to ensure an ethical and transparent process.

Training and skills development metrics

Average training hours per employee

Performance and career development reviews

Training and development approach

SES provides a comprehensive range of learning and development opportunities including internal compliance training, external learning resources, certifications, accredited degree programmes, executive education, language courses, and professional coaching. The company has launched a 5 Key Skilling Initiative focusing on Project Management, Customer Centricity, Operations, Generative AI, and Data Literacy. SES embraces microlearning opportunities alongside traditional courses and has partnered with GVF to offer digital badging for satcom education.

Health and safety metrics

Employees (own workforce)

Other workers working on undertaking's sites

Coverage: SES sites worldwide comply with and often exceed local and international health and safety regulations. The company adheres to ISO 45001 'Occupational health and safety management systems'. The narrative states that "we recorded zero major work-related injuries or ill-health incidents in 2024."

Methodology: Recordable work-related accident rate appears to be calculated per million hours worked (ESRS standard methodology). The number of days lost reported as 0 may reflect zero lost-time incidents despite 20 recordable accidents.

Work-life balance metrics

Family-related leave entitlement and take-up

Context

SES recognises the critical importance of work-life balance in today's demanding work environment. The company supports employees in balancing work and personal life through flexible working conditions.

A new set of SES Leave Guidelines ensures that all employees across all locations enjoy a minimum amount of leave when welcoming a child into their lives. All SES employees are safeguarded against loss of income due to parental leave through their contractual agreements, regardless of local legal provisions.

Compensation metrics (ESRS S1-16)

Pay gap

SES assesses gender pay equity by comparing employee pay by country, role, job grade, and gender to identify any pay level differences between men and women in comparable roles. This analysis is conducted for the five major countries where SES operates, as these countries have sufficient employee representation across comparable roles and job grades to ensure meaningful data.

Gender pay gap by country:

In the rest of the countries where SES operates, most roles are unique or associated with unique job grades, making it impractical to calculate a gender pay gap. As a result, SES focuses its gender pay assessment on countries where the data provides reliable and actionable insights.

Remuneration ratio

The average to highest compensation ratio (comprising annual base salary, annual bonus, and equity at target) for all employees at the level of SES S.A. is at 1 to 17 which remains below market benchmarks and ratios which can be observed in CAC 40 or FTSE 100 companies.

Methodology

The gender pay gap is calculated by comparing employee pay by country, role, job grade, and gender. The analysis is limited to the five major countries where SES operates due to sufficient employee representation across comparable roles and job grades. The remuneration ratio represents the average to highest compensation ratio at the SES S.A. level, comprising annual base salary, annual bonus, and equity at target.

Business conduct policies and corporate culture

SES's corporate culture is established through a clear set of values and principles communicated to all employees during onboarding and reinforced through regular training sessions and internal communications. The company maintains several policies that define expected standards of business conduct.

Code of Conduct and Ethics

Policy name: Code of Conduct (also referred to as Code of Conduct and Ethics)

Approval and oversight:

• Signed by the CEO of SES
• Under the responsibility of the VP of Legal and Regulatory Affairs
• Reviewed and consulted with European personnel delegations

Scope:

• All employees globally
• Contractors and subcontractors (provided with education on mandatory requirements prior to hiring)

Key content: The Code defines everyday business conduct, offers employees advice, and helps them make the right decisions even in difficult business situations. It covers:

• Bribery and facilitation
• Political activities
• Sanctions
• Export controls
• Competition/antitrust
• Anti-money laundering
• Intellectual privacy
• Antiboycott
• Insider trading
• Conflicts of interest
• Fair employment
• Harassment
• Contractors and agents
• Data protection
• Fundamental rights
• The environment
• Health and safety
• Use of social media
• Trafficking in human beings
• Forced labour or compulsory labour
• Child labour

Many of these topics are also addressed in separate detailed policies.

Link to international standards: All internal policies and regulations are developed in line with:

• Principles of the UN Global Compact (UNGC)
• Universal Declaration of Human Rights
• Principles laid down in the International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work

Public availability: Available on the SES website. An updated version is planned for release in 2024 to highlight specifically some ESG commitments such as human rights.

Monitoring:

• Mandatory compliance training programme ensures the entire workforce adheres to expected standards
• Every two years, all SES employees are required to complete mandatory training sessions covering Code of Conduct
• Average 83+% completion rate
• Senior executives required to take training once every two years (50% completed in 2024)

Anti-Harassment Policy

Policy name: Anti-Harassment Policy (also referred to as Policy against harassment)

Scope:

• All employees

Key content:

• Strict zero-tolerance policy towards any form of harassment or inappropriate behaviour
• Covers harassment based on gender, race, colour, age, religion, national origin, marital status, sexual orientation, disability, health status, veteran status, or any other legally protected characteristic
• Individuals who believe they have been impacted by harassment can request assistance through the reporting procedure
• Commitment to providing updates on the process and outcome of any claim to individuals concerned

Monitoring:

• Compulsory anti-harassment training conducted every two years
• Regular promotion of awareness of rights and procedures among employees

Environmental, Health and Safety Charter

Policy name: Environmental, Health and Safety Charter

Key content:

• Policy statement describing a systematic approach to identifying, evaluating, and managing environmental, health, and safety risks
• Outlines commitment to continuous improvement, communication, education, and training
• Commitment to protecting the environment and ensuring health and safety of employees, customers, and partners
• Serves as a guide for the organisation across the value chain

Supplier Code of Conduct

Policy name: Supplier Code of Conduct

Scope:

• All suppliers

Key content:

• Requires suppliers to commit to responsible business, social, and environmental practices
• Conduct operations in compliance with internationally recognised human rights standards
• Comply with relevant local and international regulations covering health and safety, environmental, social, labour, and anti-corruption laws
• Comply with intellectual property laws and robust data protection standards
• Addresses human rights concerns including prohibition of human trafficking, forced or compulsory labour, and child labour

Link to international standards:

• Fundamental Conventions of the International Labour Organisation
• UN Universal Declaration of Human Rights
• OECD Due Diligence Guidance for Responsible Mineral Supply Chains
• UN Guiding Principles on Business and Human Rights

Monitoring:

• Expectations embedded in supplier contracts
• In 2023 and 2024, SES conducted a pilot Sustainable Procurement Programme using a third-party tool to assess 86% of vendors
• ESG research analysis of 81 critical vendors to identify risks, impacts, and opportunities
• Brand accreditation programme incorporating ESG criteria into supplier evaluation

Anti-Corruption and Gifts & Entertainment Policy

Policy name: Anti-Corruption and SES Gifts & Entertainment Policy

Approval and oversight:

• Under the responsibility of the VP of Legal and Regulatory Affairs

Scope:

• All employees globally
• Suppliers, business partners, and third parties working on behalf of SES

Key content:

• Zero-tolerance approach to bribery and corruption
• Adherence to all anti-bribery and corruption laws in operating countries
• Clear process for managing gifts and entertainment
• Dedicated intranet page with all relevant policies
• Employees can seek further guidance via dedicated email address
• Thorough risk assessment of third parties based on country of operation and business type

Monitoring:

• Mandatory compliance training for all employees
• Sales functions and other functions engaging with external parties are considered more at risk and subject to additional monitoring
• Clear guidelines established in 2024 for investigating allegations of corruption or bribery

Sales Agent Policy

Policy name: Sales Agent Policy

Key content: Addresses standards and requirements for sales agents engaged by SES.

Other Policies

SES maintains additional ESG policies and regulations including:

• Global Trade Compliance policy
• Sanctions Compliance policy
• Hand-Carry policy
• SES Antitrust Compliance Policy and Guidelines
• SES Dealing Code
• Global Data protection policy
• Information security policies
• SES AI policy
• Tax Transparency Charter (SES Group Tax Charter)
• SES Corporate Governance Charter
• SES Remuneration Committee Charter

Application: All internal policies related to business conduct are applied at a global level.

Whistleblowing and Remediation

Channel: SES Global Compliance Hotline (managed by third-party provider Navex)

Scope:

• Available to internal stakeholders and external parties including employees, contractors, suppliers, business partners, and third-party individuals

Key content:

• Allows anyone with concerns about SES or its employees to submit a report securely and confidentially
• Covers issues such as bribery, health and safety, environmental matters, human rights, or any conduct not complying with SES business policies or applicable laws
• Non-retaliation policy prohibits retaliation against any employee who submits a report in good faith
• Clear investigation process with trained compliance personnel
• External investigators or auditors engaged when necessary
• Subject to legal requirements under national law transposing Directive (EU) 2019/1937

Culture Reinforcement Mechanisms

Net Promoter Score (NPS):

• Voice of the Customer (VOC) programme with dedicated Customer Experience (CX) team
• Corporate NPS measured at 44 in 2024
• 3-year moving average of 43 forms foundation of bonus multiplier for all bonus plan-eligible staff
• Customer Centricity Training programme developed in 2024
• Customer Experience Champions promote customer-centric culture organisation-wide

Governance oversight:

• Corporate culture is a material topic in the materiality matrix
• Board-level oversight through Audit and Risk Committee receiving updates on ESG targets and double materiality topics
• ESG team directly reports to the Audit and Risk Committee at every meeting

Prevention and detection of corruption and bribery

SES adopts a zero-tolerance approach to bribery and corruption, adhering to all anti-bribery and corruption laws in operating countries. The company identifies sales functions and other functions engaging with external parties either granting contracts or seeking contracts from SES, as well as external representatives of these functions, as the functions that are considered more at risk of corruption and bribery.

Code of Conduct

• Scope: All employees
• Key content: The Code covers a range of issues including bribery and facilitation; political activities; sanctions; export controls; competition/antitrust; anti-money laundering; intellectual privacy; antiboycott; insider trading; conflicts of interest; fair conduct
• Monitoring: All employees are required to read the Code when they join and attend mandatory compliance training sessions. Mandatory training is required every two years, with an average 83+% completion rate monitored by the SES People & Culture department. Senior executives are required to take the training once every two years (50% completed it in 2024). All relevant anti-bribery and corruption policies can be accessed on a dedicated intranet page, and employees can seek further guidance via a dedicated email address
• Implementation: In 2024, clear guidelines were established for investigating allegations of corruption or bribery, ensuring that all reports are taken seriously and investigated thoroughly

Gifts & Entertainment Policy

• Key content: To mitigate the risk of bribery, SES has established a clear process for managing gifts and entertainment

Sales Agent Policy

• Scope: Suppliers, business partners, and third parties working on behalf of SES
• Key content: SES extends its standard of compliance to suppliers, business partners, and third parties working on its behalf, including a thorough risk assessment based on factors such as their country of operation and business type

Supplier Code of Conduct

• Scope: All suppliers
• Key content: Suppliers must comply with relevant local and international regulations covering health and safety, environmental, social, labour, and anti-corruption laws. The policy is central to communicating expectations on ethics and compliance
• International standards: The policy aligns with international initiatives and standards such as the Fundamental Conventions of the International Labour Organisation; the UN Universal Declaration of Human Rights; the OECD Due Diligence Guidance for Responsible Mineral Supply Chains; and the UN Guiding Principles on Business and Human Rights
• Monitoring: The expectation is embedded in supplier contracts. In 2023 and 2024, SES conducted a pilot Sustainable Procurement Programme using a third-party tool to assess 86% of vendors. A separate ESG research analysis of 81 critical vendors served to identify risks, impacts, and opportunities

Training programmes

100% of functions at risk are covered by training programmes on anti-bribery and anti-corruption. Anti-Bribery training is mandatory for employees working in specific departments based on department or role.

Incidents and compliance

In 2024, SES reported:

• Number of convictions for violation of anti-corruption laws: 0
• Number of convictions for violation of anti-bribery laws: 0
• Amount of fines for violation of anti-corruption laws: 0
• Amount of fines for violation of anti-bribery laws: 0

Incidents of corruption or bribery

Confirmed incidents and convictions

SES reported zero incidents of corruption or bribery for the 2024 reporting period:

Prevention and detection framework

SES adopts a zero-tolerance approach to bribery and corruption, adhering to all anti-bribery and corruption laws in operating countries. The company's stance is outlined in its Code of Conduct, Gifts & Entertainment Policy, and Sales Agent Policy.

To mitigate bribery risks, SES has established a clear process for managing gifts and entertainment. Sales functions and other functions engaging with external parties either granting contracts or seeking contracts from SES, as well as external representatives of these functions, are considered more at risk of corruption and bribery.

In 2024, clear guidelines were established for investigating allegations of corruption or bribery, ensuring that all reports are taken seriously and investigated thoroughly.

Speak-up mechanisms and investigation procedures

SES encourages everyone connected to its business activities to 'speak up' through various channels, including the SES Global Compliance Hotline, managed by third-party provider Navex. This whistleblowing hotline allows anyone with concerns about SES or its employees to submit reports securely and confidentially.

In 2023, the company enhanced its online Global Compliance Hotline, expanding access to include not only internal stakeholders but also external parties including employees, contractors, suppliers, business partners, and third-party individuals.

When a report is submitted, it is securely received and managed by trained compliance personnel. The head of Compliance assigns the report to an appropriate investigation team based on its nature. The company ensures that all reported incidents are acknowledged and investigated without delay. Where necessary, external investigators or auditors are engaged to ensure impartiality and avoid conflicts of interest.

SES's whistleblower policy prohibits retaliation against any employee who submits a report in good faith or participates in a harassment investigation.

Training coverage

Every two years, all SES employees are required to complete mandatory training sessions. Four additional mandatory sessions are based on department or role: Sanctions, Anti-Bribery, Export Compliance, and Antitrust. These online sessions show an average 83+% completion rate. Senior executives are required to take the training once every two years; for 2024, 50% had completed it. Functions at risk of corruption and bribery achieved 100% training coverage.

Payment practices

ESRS G1-6 (Payment practices) is classified as Not Material in SES's double materiality assessment.

Disclosure status

No quantitative metrics are disclosed for:

• Average time to pay invoices (days)
• Standard contractual payment terms (by % of payments)
• Number or value of legal proceedings for late payment
• Compliance with prompt payment code

Customer payment terms

The following information is provided in the accounting policies (Note 2):

Customer payments: "Customer payments are generally due in advance or by the end of the month of capacity service."

Prepayment terms: "The Group's contracts at times contain prepayment terms that range from one month to one year in advance of providing the service."

No significant financing component adjustment: Since the period between service transfer and customer payment is one year or less, no adjustment is made to the transaction price for significant financing components.

No information is disclosed regarding SES's own payment practices to suppliers.