SOLVAY

The role of the administrative, management and supervisory bodies is described throughout the Corporate governance statement. The Board culture is built on stewardship, trust, transparency and learning. It extends to the dialogue between the Board and senior management. In the past year we have thus had intense and fruitful exchanges with the leadership team on the transformation of Solvay, developing the new company strategy and formulating the new sustainability roadmap of Solvay.

We also know that we will need to change some things. Let me mention two, which became apparent through the encompassing cultural transformation initiative that we took last year.

First, we need to focus more. On what truly matters, on what creates value, for customers, for our stakeholders and for the planet. To fully benefit from the split, we need to relentlessly eliminate complexity and waste. We need to focus our efforts and resources where it matters and impacts most.

Second, we need to embrace change. This may sound as a trivial statement as success in industry always hinges on the ability to improve and change. But change is hard, it implies acknowledging that what we have done in the past, what we do today with commitment and care, should nevertheless evolve to remain competitive and innovative. Not because we have been wrong in the past but because we just can still become better. And this requires mental strength and humility.

Through the varied experiences and profiles of Board members they enrich the quality of our governance in a spirit of impeccable professionalism, trust and warm personal commitment. In the past year we have thus had intense and fruitful exchanges with the leadership team on the transformation of Solvay, developing the new company strategy and formulating the new sustainability roadmap of Solvay.

Integration of sustainability-related performance in incentive schemes

Roles covered

Solvay operates different incentive schemes for different employee groups:

• Short-term incentive scheme: applicable to the Management, Senior Management, and Executive population (including CEO and Executive Leadership Team - ELT)
• Global Profit Sharing scheme: applicable for non-management employees
• Long-term incentive scheme: applicable for Senior Management and Executives

Specific sustainability KPIs tied to remuneration

Short-term Incentive (STI) 2024

In 2024, the sustainability STI pillar was streamlined to focus on three key performance indicators (KPIs): Climate, Safety, and Diversity, each given equal importance.

2024 Short-term Incentive Targets:

Performance measures for CEO and ELT Members (2024):

Long-term Incentive (LTI)

GHG emission reduction (Scope 1 & 2) is reinforced in the long-term incentive plan. The LTI targets and achievements will be disclosed at the end of the performance period.

Weighting (% of STI / LTI tied to sustainability)

The sustainability-related targets account for:

• 15% of the Short-term incentive scheme for all management levels
• 15% of the Global Profit Sharing scheme for non-management levels
• 20% of the Long-term incentive scheme for all executives

Performance period and target structure

Short-term incentive (STI):

• Performance period: Annual (2024 STI performance objectives)
• Target structure includes minimum (0%), target (100%), and maximum (200%) performance levels

Long-term incentive (LTI):

• Performance period: 3 years
• The Long-term Incentive scheme is set up every year for a period of three years, with KPIs defined in line with the Company's long-term objectives and ambition

Threshold/target/maximum performance definition

2024 Group performance results:

Disclosure of payout against sustainability KPIs in the reporting period

CEO STI 2024 Performance:

2024 Sustainability performance:

• Diversity: Achieved the target of 27.3% women in S19+
• Safety: Fell short with 41 incidents (including three fatalities), compared to 45 incidents in 2023 (no fatalities)
• GHG emissions (Scope 1+2): Missed targets, reaching 7.46 MT (target: 7.17 MT), due to increased production and delayed impact from energy transition projects

STI Objectives 2025

The Board has decided to maintain the same breakdown of performance objectives for the CEO and the ELT Members for the 2025 financial year:

Governance and approval process

The target-setting process for the Short-term Incentive scheme involves:

1. KPIs defined in line with the Company budget and objectives
2. Review by the Global Incentive Committee meeting, which makes a recommendation to the Executive Leadership Team
3. Recommendation presented to the Compensation Committee for review and approval
4. Final approval by the Board of Directors

The Long-term Incentive scheme follows a similar approval process involving the Global Incentive Committee, the ELT, the Compensation Committee, and the Board of Directors.

We are essential chemistry, making progress possible for generations

We are essential chemistry. We represent a unique type of company in the chemical industry landscape, with specific requirements in terms of our operating model and success factors.

Essential chemicals are neither commodity nor specialty chemicals – they can be found on the spectrum between commodity and specialty chemicals. Essential chemistry has distinct characteristics, some being very different from commodities and specialities, some being common. Being "essential" also impacts the way we do business.

Our Purpose: "We are essential chemistry, making progress possible for generations." This is the foundation of our strategy. Our ambition is to be the best at what we do; be a leader in essential chemistry.

Global reach, close to our clients

• 80% sales regional, from local production plants

• 41 countries
• 44 Production sites
• €4.7bn Underlying net sales
• ~9,000 Employees

Our businesses

Solvay holds a high quality and focused portfolio of industry benchmark assets including five global technologies – soda ash, peroxide, silica, fluorine, and rare earths – and a solid regional business in Latin America, focused on solvents and the polyamide chain.

Two essential business segments

Basic Chemicals 61% (Soda Ash & Derivatives, Peroxides)

• Chemical intermediate businesses focused on mature and resilient markets in which Solvay is a reference player.
• Serve major markets such as consumer goods, healthcare, food, electronics and building & construction.

Performance Chemicals 39% (Silica, Coatis, Special Chem)

• A wider range of products that are subject to customization based on unique formulations and application expertise. These high-quality assets hold strong positions in their markets.
• Serve various markets like automotive, consumer goods, electronics, etc.

Essential to multiple end-markets

Our key technologies make us a vital supplier of chemical products and intermediates for a broad array of industries. Our products serve a variety of end markets, none of which make up more than 24% of Solvay's sales, allowing for a good balance between our segments' performance.

End markets driven by megatrends

Our portfolio aligns with megatrends that drive our businesses' main end markets and provide us with opportunities in our main business lines. This includes a move toward sustainable resources, resource efficiency, and reduced environmental impact; implementing shorter supply chains with local sourcing and manufacturing; and the swift development of AI and digitalization across organizations and end‑consumers' life.

We are equally grateful to our shareholders old and new, who are confident in the stable and at the same time exciting opportunity that an essential company like Solvay provides in our uncertain world.

Our concrete achievements, our ambitions and our ability to innovate are, we hope, why our customers place their trust in us. We are genuinely grateful that they continue to recognize the high quality and reliability of our products and technology.

And, finally, committed industrialists are nothing without a highly engaged and skilled workforce – our colleagues are at the heart of our exciting journey. Our sincere gratitude also goes to them.

With an employee engagement rate of 80%, they are the foundation of our success. In our first year our regular Pulse survey among employees achieved an employee engagement score of 80%. Our employee net promoter score (eNPS) – which measures the likelihood of recommending Solvay as a workplace – rose 3% throughout the year to 84%. Also the input we received from our employees will help us create an even better work environment.

Social dialogue is essential to us. We continue to engage with our employees through diverse channels and have renewed our global agreement with IndustriALL, the union for the chemical industry.

In 2024, Solvay defined its new For Generations roadmap – our agenda for responsible business. Building on our heritage and company strengths, it sets the sustainability agenda of the company, while aligning with the new Solvay profile and strategy. This roadmap is structured around two pillars – Planet progress, focused on climate and nature, and Better life, addressing our people and communities.

Material impacts and opportunities:

Climate Change and Resource Scarcity:

• Soda ash for flat glass is used in double and triple glazing to meet the increased demand for insulation materials in construction, and in solar photovoltaic panels that provide cleaner energy.
• Our sodium-based SOLVAir® provides flue gas cleaning solutions that can remove up to around 99% of SOx, HF, and HCI emissions from exhausts in a range of sectors, including energy production and cement manufacturing.
• Our breakthrough soda ash process, e.Solvay, is expected to reduce our scope 1 & 2 greenhouse gas emissions by around 50%, and the consumption of natural resources, to result in 20% less water and salt and 30% less limestone, compared to the current process.
• Interox® Volt peroxide solutions enhance recovery of valuable metals from used batteries.
• Our proprietary process for bio-sourced Highly Dispersible Silica made from rice husk ash, a rice byproduct, will offer the tire industry a circular silica with a reduced carbon footprint.

Regionalization: With production plants based in key geographic zones, Solvay is poised to embrace the regionalization megatrend. This positions us well to answer customers' need for local supply, ensuring reliability and reducing the environmental footprint.

Artificial Intelligence and Digitalization:

• Our high-purity solutions are needed for advanced cleaning, an increasingly important factor as electronic devices become smaller.
• Solvaclean®, an environmentally-friendly cleaning gas for semiconductor tools made from eco‑friendly fluorinated gas mixtures, offers the industry an alternative cleaning option that provides zero global warming potential.
• INTEROX® Hydrogen Peroxide PicoPlus is our ultra‑purified electronic grade H2O2 primarily used in the cleaning and etching stages of semiconductor chip production.
• Rare earths' abrasive Zenus® is used in a critical step of the semiconductor manufacturing process to remove excess materials and create a smooth surface on each wafer layer.

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

Overview of the Double Materiality Assessment Process

Solvay conducted its first Double Materiality Assessment (DMA) in accordance with the requirements of the Corporate Sustainability Reporting Directive (CSRD) in 2024. The DMA identifies material IROs in sustainability matters based on activities, products, value chains, and global presence.

Step-by-Step Methodology

A five-step approach was followed:

1. Define the scope and objective: Defined the assessment boundaries, main activities, value chain, selected stakeholder focus groups and appropriate communication channels to engage with them.

2. Identify ESG topics and IROs: Collected data through desktop analysis of external and internal sources to identify potential ESG topics. Adopted the ESRS topics structure and added process and transport safety as entity specific. Determined IROs of each sustainable performance topic via desk research and internal and external stakeholder consultation.

3. Assess the IRO's materiality: Mapped impact materiality and financial materiality for each identified IRO through desk research and internal and external stakeholder consultation. Consolidated the results and developed the double materiality result.

4. Validate DMA results: Validated the outcomes of the double materiality assessment by the validation bodies: ELT Committee, A&R committee, ESG Committee, and Board of Directors.

5. Document the process and the outcome: Developed the materiality report and detailed assurance-ready supporting documentation.

Inputs to the Assessment

The DMA covered all of Solvay's operations and geographies with value chains. Inputs included:

• Sector benchmarks and external sources: External experts, business partners, sector associations, World Economic Forum Global Risks report, ECIIA Risk in Focus report, AXA Future risks report, Alianz Risk Barometer, Economist Intelligence Unit Risk Outlook
• ESRS guidance: ESRS topics structure and EFRAG implementation guidance for the materiality assessment
• Internal experts: 10 interviews with internal experts, consultation with key internal stakeholders
• External consultants: External qualified consultants collaborated with Solvay on Process Hazard Analyses
• Stakeholder consultation: 20 interviews with a representative set of impacted stakeholders (Employees, Communities, Customers, Suppliers, and Investors); employee focus groups and workshops
• Value chain mapping: Creation of a value chain map ensured full coverage of Solvay's operations, value chain, and geographies

Impact Materiality Assessment Criteria

For negative impacts, assessment based on:

• Severity: Evaluated using scope, scale, and remediability
• Scope: Five-level scale (1-5)
• Scale: Five-level scale (1-5)
• Remediability: Five-level scale (1-5)
• Likelihood: Five options ranging from very high (factor 1) to very low (factor 0.6)

Final score = (sum of severity scores) × likelihood factor

Materiality threshold for impacts: Score ≥ 8 considered material (maximum possible score: 15)

For positive impacts, evaluated:

• Scale: Five-level scale
• Scope: Five-level scale
• Likelihood: Five options (factor 1 to 0.6)

Final score = (sum of scale and scope) × likelihood factor

Materiality threshold for positive impacts: Score ≥ 8 considered material

Financial Materiality Assessment Criteria

Magnitude of financial effect: Five-level score (1-5) aligned with ERM severity scales and thresholds including:

• Economic (Loss of EBITDA): Less than EUR 10m (Low), EUR 10m to EUR 50m (Medium), EUR 50m to EUR 100m (High), EUR 100m or larger (Very high)
• Specific consequence scales for reputation, government/political intervention, regulators, etc.

Likelihood: Identical values to those used for the likelihood of potential impacts (factor 1 to 0.6), considering management cycle horizons as reference for thresholds

Total score for financial materiality = magnitude score × likelihood factor

Materiality threshold for risks/opportunities: Score ≥ 3 considered material

Time Horizons

The time horizons correspond to usual management cycles:

• Short term: ≤ 1 year
• Medium term: > 1 year and ≤ 5 years
• Long term: > 5 years and up to 30 years

Use of Value Chain Mapping

The creation of a value chain map in the first phase of the DMA process ensured full coverage of Solvay's operations, value chain, and geographies. Based on the value chain, stakeholders and experts involved with different activities were consulted, as well as the different geography and end-market leads within Solvay.

Impacts related to business relationships were identified via consultation with the most prominent business partners, or through interaction with internal experts managing the relationship.

Frequency and Last Review

A DMA was set up for the first time in 2024. As the materiality assessment is a dynamic process subject to the inherent evolution of Solvay, it will be updated when deemed necessary.

Decision-Making Process

The decision-making process involves multiple experts and bodies within Solvay:

• CSRD Steering Committee
• Executive Leadership Team (ELT)
• ESG Committee
• Audit & Risk Committee
• Board of Directors

External auditors also perform a review of the DMA and related IROs as part of the Sustainability Statements verification.

Integration into Enterprise Risk Management

The process to identify, assess, and manage impacts and risks is integrated into Solvay's overall Enterprise Risk Management (ERM) process. The evaluation criteria of likelihood and magnitude of financial impact of ESG-related risks and opportunities are aligned with Solvay's ERM methodology, which is inspired by COSO principles.

ESG risks are treated in the same way as other risks in the ERM framework. The ERM team was actively engaged throughout the DMA process, and the output of the DMA has been integrated into the ERM repository.

The Corporate Risk Management Team performs a reconciliation between existing and any newly identified Group Risks, as well as the results of the DMA (specifically for ESG-related risks & impacts), to ensure consistency during the following cycle.

Material Topics Identified

The DMA defined the following material topics:

Environmental:

• Climate change (mitigation & adaptation, energy)
• Pollution (air, water, soil, SOC, SVHC)
• Water and Marine resources (water consumption)
• Biodiversity and Ecosystems (land degradation, land-use change)
• Circular Economy (waste)

Social:

• Own workforce (Health & Safety, Social dialogue, Diversity)
• Workers in the value chain (Health & Safety, Social Labor, Forced labor)

Governance:

• Business Conduct (Corporate culture, Bribery and Corruption, Whistleblower protection)

Topic-Specific IRO Identification Processes

Climate Change Physical Risks

Collaboration with FM (independent property insurance specialist) which performs site visits and combines engineering data with climate change insights. Climate Change Risk reports assess acute and chronic risks at Solvay locations across three climate scenarios (RCP 2.6, 4.5, 8.5) and two time horizons (2030 and 2050). Physical exposures identified include: Extreme Precipitation, Wind, Temperature, Drought, and Sea level rise.

Biodiversity

Prior to the DMA, an evaluation using the Science Based Targets Network (SBTN) assessment highlighted biodiversity impacts for mineral-based compounds in Soda Ash activities. Assessment of biodiversity-sensitive areas conducted using:

• Integrated Biodiversity Assessment Tool (IBAT) for three global biodiversity datasets (IUCN red list, protected areas including UNESCO and Natura 2000 sites, Key Biodiversity Areas)
• Buffer zones: 50km for protected species, 5km for protected areas and KBAs
• WWF Biodiversity risk Filter (BrF) analyzing sensitivity across criteria including biodiversity importance, water quantity, and water quality (scale 0-15)

This led to identification of 6 Soda Ash sites in Europe with proven material impact on biodiversity and another 10 sites with potential impact.

For Climate, we have updated our carbon neutrality roadmap, outlining a solid and affordable path to achieving our goals. We believe that we can cut around one third of our greenhouse gas emissions (scope 1 and 2) by 2030 and a second third by 2040 with the aim to achieve carbon neutrality by 2050.

Our global energy transition roadmap includes various initiatives, from phasing out coal, to driving efficiency projects to lower energy consumption at our sites, to switching to renewable energy sourcing.

Energy transition projects:

• Rheinberg, Germany: We made our Rheinberg, Germany, plant, the world's first soda ash plant primarily powered by renewable energy, namely local waste wood. This shift will contribute to a 4% reduction of Solvay's overall greenhouse gas emissions by 2025 while enhancing our long‑term competitiveness.

• Green River, U.S.: Our U.S. trona-based soda ash plant in Green River, Wyoming, is set to drive a 4% reduction in Group‑wide GHG emissions by 2025 by deploying an innovative process and phasing out coal. The launch of our regenerative thermal oxidation (RTO) process, the first of its kind in the trona mining industry, marks a key milestone in Solvay's energy transition journey.

• Ciudad Juárez, Mexico: A new biodigester was commissioned in 2024 to substitute natural gas with biomethane.

• Dombasle, France: We are substituting coal with refuse-derived fuel, with an expected start in late 2025.

• Torrelavega, Spain: We are considering replacing coal with biomass by 2027.

• Paulínia, Brazil: We announced climate and water projects which will reduce this major production plant's greenhouse gas emissions by 40% annually by 2028. Installing biomass‑fired boilers, fueled primarily by sugarcane bagasse, will support renewable energy adoption.

These energy transition projects will substantially decarbonize our European operations while simultaneously mitigating exposure to fossil fuel price risks, thereby bolstering their long-term sustainability.

Policies related to climate change mitigation and adaptation

Solvay has developed distinct policies to manage its material impacts, risks and opportunities (IROs) related to climate change mitigation and adaptation. These policies are designed to address the identification, assessment, management, and remediation of climate change IROs, ensuring alignment with the company's sustainability goals and regulatory requirements. These policies apply universally across all Solvay Group enterprises (under operational control) and relate to active sites across all regions.

Climate change mitigation policies

GHG Scope 1 and 2 emission reduction and energy management

Scope: This policy addresses direct and indirect emissions associated with the company's operations (where Solvay has operational control), along with comprehensive energy management including phase out of thermal coal for energy production, renewable energy deployment and energy efficiency.

Stakeholders involved: This policy involves suppliers of energy in the value chain.

Accountability and oversight: Accountability is allocated to the Executive Leadership Team (ELT) which assumes final responsibility for policy validation, with periodic reviews conducted with the Energy department to maintain effectiveness and relevance from an operational perspective.

GHG Scope 3 emission reduction

Key content: This policy is shaped around the broader spectrum of emissions produced by the Solvay value chain. The key content includes the commitment for reducing the Scope 3 emissions and the methodology for calculating Scope 3 emissions.

Stakeholders involved: This policy involves all stakeholders along the value chain.

Accountability and oversight: Accountability is allocated to the Executive Leadership Team (ELT) which assumes final responsibility for policy validation, with periodic reviews conducted with the Sustainability department to maintain effectiveness and relevance from an operational perspective.

Climate change adaptation policies

Physical risks

Key content: This policy aims at identifying and mitigating physical risks related to the natural impacts of climate change for Solvay own operations.

Stakeholders involved: This policy involves the company's mutual insurer, FM. So far it does not involve other stakeholders along the value chain.

Accountability and oversight: Accountability is allocated to the Executive Leadership Team (ELT) which assumes final responsibility for policy validation, with periodic reviews conducted with the Insurance & Prevention department to maintain effectiveness and relevance from an operational perspective.

Business transition

Key content: This policy aims at identifying and mitigating business risks and seizing business opportunities related to the transition toward a low carbon economy along the value chain.

Stakeholders involved: This policy involves all stakeholders along the value chain.

Accountability and oversight: Accountability is allocated to the Executive Leadership Team (ELT) which assumes final responsibility for policy validation, with periodic reviews conducted with the Sustainability department to maintain effectiveness and relevance from an operational perspective.

Alignment with external standards

Solvay is committed to complying with external standards, regulations, and initiatives which support the company's climate change and energy management objectives.

Reference to additional information: For further details on scope, publicity, and stakeholder engagement, the company refers to table MDR-P in the full report.

Actions and resources in relation to climate change policies

Solvay has established a robust climate action plan targeting carbon neutrality for GHG Scope 1 and 2 emissions by 2050, along with a selective reduction of these emissions and GHG Scope 3 - focus 5 categories - emissions by 30% and 20% respectively by 2030, against the 2021 baseline (considering financial consolidated perimeter).

Climate change mitigation: GHG Scope 1 and 2 emissions

1. Energy transition to phase out coal from the energy mix at our soda ash plants

Solvay is currently undertaking an energy transition initiative to eliminate the use of thermal coal from the energy mix at its soda ash plants. At the beginning of 2024, five Solvay sites were still using thermal coal to produce energy, however actions performed in 2024, resulted in the phase-out of coal in 2 sites:

Completed in 2024:

• Green River, Wyoming, United States: Investment to substitute coal with natural gas completed, resulting in a reduction of approximately 280 kilotons of CO₂eq per year compared to the situation prior to coal substitution, and 190 kilotons compared to the 2021 levels.
• Rheinberg, Germany (financed through leasing): Now primarily using locally sourced biomass waste for power. Expected reduction of around 480 kilotons per year in CO₂eq compared to the situation prior to coal substitution, and 385 kilotons CO₂eq per year compared to the 2021 levels upon its completion at the end of 2024.

Ongoing coal phase-out at other sites:

• Dombasle, France: Partnering with Veolia through an equity investment to eliminate coal use by end of 2025, substituting it with local refuse-derived fuel (RDF) and aiming to reduce around 200 kilotons CO₂eq per year.
• Torrelavega, Spain: Plans to phase out coal through introduction of a new biomass cogeneration plant, anticipated to reduce around 330 kilotons CO₂eq per year upon completion in 2027. Developed by a partner through a Power Purchase Agreement (still subject to subsidies).
• Devnya, Bulgaria: Already reduced approximately 100 kilotons CO₂eq per year compared to 2021 baseline following an investment to introduce co-combustion with biomass in 2022. Target to totally phase out coal by 2030 is at risk due to unavailability of mid- to long-term local reliable renewable sourcing.

2. Energy transition to use primary energy sources with lower emissions or decarbonized sourcing

• Qingdao Silica plant, China: Solar panel installation program in progress starting 2024.
• Juarez, Mexico: Biodigester installed to produce biomethane using city wastewater slurry, with operation commencing in Q4 2024. Expected reduction: 10 kilotons CO₂eq per year.
• Collonges Silica plant, France: Implementation of an electric furnace to replace the existing fuel-powered one by end of 2025. Expected reduction: 20 kilotons CO₂eq per year.
• Rosignano, Italy: Power purchase agreement for on-site solar energy from a third party underway, expected by end of 2026. Projected reduction: around 45 kilotons CO₂eq per year. On-site solar energy will be used to produce hydrogen peroxide from green hydrogen in partnership with Sapio. Share of renewable energy will also grow from 2026 onwards through new biomethane sourcing contracts substituting natural gas.
• Paulinia, Brazil: Project approved to produce renewable steam from biomass instead of natural gas. Expected reduction: 140 kilotons CO₂eq per year starting 2028.

3. Energy efficiency

In 2024, energy efficiency projects implemented across all sites brought a reduction of around 10 kilotons per year in CO₂eq. Initiatives categorized into:

• Reduction of energy usage: Implementation of Variable Speed Drives and digital tools to determine energy-efficient configurations.
• Reduction or reusing energy losses: Implementation of steam traps monitoring and heat recovery assets.
• Process control: Utilizing advanced algorithms and automation tools to adjust critical operating parameters.

4. Process innovation

• Green River plant: Regenerative thermal oxidation (RTO) technology inaugurated October 10, 2024. Expected reduction: approximately 500 kilotons CO₂eq per year at current production level. First of its kind in the trona mining industry.
• Dombasle site: Pilot testing of new e.Solvay soda ash manufacturing process underway, with projected 50% reduction in CO₂ emissions compared to current process.

Climate change mitigation: GHG Scope 3 emissions

1. Reducing emissions

• Supplier engagement: As a member of Together for Sustainability, Solvay collaborates with suppliers to reduce Scope 3 upstream emissions and promotes use of recycled or renewable resources. In 2024, engaged with 15 new suppliers in decarbonization discussions.
• Customer collaboration: Focus on reducing Scope 3 downstream emissions through collaboration with customers, promoting sustainable product usage, and guidance on disposal and recycling practices.
• Transportation providers: Active work with transportation providers to mitigate emissions related to logistics.
• Employee engagement: Reducing Scope 3 emissions associated with business travels and commuting through responsible travel practices and promoting sustainable commuting methods, including transition to electric vehicles for company fleet. Since 2023, contributes €100 per ton of CO₂ emitted to a new Travel Carbon Fund supporting sustainability projects with focus on nature conservation and carbon offsetting.

2. Collecting Primary Data - Suppliers

Active collaboration with most GHG-emitting raw materials suppliers to collect product carbon footprint (PCF) data. In 2024, collected 23 additional primary PCFs from 22 suppliers, representing 12% of Category 3.1 emissions. Ambition: collect 100% of primary PCF data.

Climate change mitigation: Carbon capture usage or sequestration projects

Some carbon capture usage or sequestration projects in the value chain are under study.

Nature and climate projects:

• Paulinia, Brazil: "Reserva Legal" reforestation project planting native seedlings of the Atlantic Forest with forest management activities. Started 2017, to be concluded 2028.
• New 2024 projects: Two new forestation projects validated in 2024, starting in 2025:
  • Linne Herten (tiny forest)
  • Close to Map Ta Phut, Thailand (mangrove)
  • Financed by the Travel Carbon Fund

Note: Emissions removed by these projects are not considered in Solvay reporting.

Climate change adaptation

Physical risks

Implemented permanent flood protection measures, including dikes and levees, for critical utilities and buildings at sites in Paulinia, Torrelavega, and Qingdao exposed to future extreme precipitation and flooding. Currently conducting formal flood studies and analyzing solutions for physical flood protection at other exposed sites.

Transition risks and opportunities

Developing technology to separate rare earth elements for production of innovative rare earth permanent magnet solutions, essential for electric vehicle market and clean energy applications (wind power). Investing in plant in La Rochelle, France, to create a hub supporting Europe in developing more autonomous and sustainable solutions.

Humanitarian needs due to climate change

Solvay is willing to support people harmed by material impacts of climate change. At the end of April 2024, the southern region of Brazil experienced the worst climate crisis in the country's history. The Solvay Group and the Ernest Solvay [text truncated in excerpt].

Climate targets:

• Carbon neutrality by 2050
• -30% Scope 1 & 2 GHG emissions by 2030 (vs 2021)
• -20% Scope 3 GHG emissions Focus 5 categories by 2030 (vs 2021)
• Coal phase out by 2030 in all sites but Devnya which requires more time

In 2024, €25 million in capital expenditure were allocated to Solvay's transition plan.

Energy consumption and mix

Reporting scope and methodology

Energy consumption is reported for Solvay's operational perimeter, which includes all production and research centers under operational control, consolidated at 100% regardless of the site's company consolidation method. This includes production sites in joint-operations and joint-venture companies such as BASF Interox H2O2 Production NV (Belgium), Solvay Sodi AD (Bulgaria), Saudi Hydrogen Peroxide Co (Saudi Arabia), Shinsol Advanced Chemicals Corporation (Taiwan), and MTP HP JV Ltd (Thailand), as well as specific units in associate companies.

Energy consumption components are converted into primary energy sources using net calorific values for fuels, boiler efficiency reference values for purchased steam, and average efficiency assumptions for purchased electricity (39.5% for fossil-fuel power, 33% for nuclear, 100% for hydro/solar/wind).

Energy consumption and mix for Solvay's own needs

All figures below are reported for the operational perimeter (MWh):

Energy production for third parties

Energy production for third parties (mainly heat supply and co-produced power from high-efficiency cogeneration using fossil gaseous fuels) is reported separately:

Energy intensity

All Solvay activities are considered high climate impact sectors.

The energy intensity increase is primarily driven by lower sales in 2024 (-14.9%) while energy consumption increased by 3.2%, reflecting activity recovery after a low activity year in 2023.

Renewable energy share progress

In 2024, Solvay achieved 6.8% renewable sources in total energy consumption (operational perimeter), representing an improvement of approximately 134% since the 2021 baseline (2.9%).

Gross Scopes 1, 2, 3 and Total GHG emissions

Scope 1 GHG emissions

Scope 1 CO₂ emissions

Scope 1 GHG emissions other than CO₂

Breakdown by gas (operational perimeter):

Scope 2 GHG emissions

Total Scope 1 + Scope 2 emissions

Scope 3 GHG emissions

Total GHG emissions (Scope 1 + 2 + 3)

GHG Intensity

Biogenic CO₂ emissions

Biogenic CO₂ emissions from the combustion or biodegradation of biomass from consolidated accounting group: 76,000 tCO₂ (2023: 117,000 tCO₂; 2021: 60,000 tCO₂)

Methodology and Scope Notes:

• Scope 1 and 2 emissions include all production and research centers under operational control, consolidated at 100% regardless of consolidation method. This includes joint operations, joint ventures (BASF Interox, Solvay Sodi AD, Saudi Hydrogen Peroxide, Shinsol, MTP HP JV), and specific units in associate companies (peroxide production in Solvay Zhenjiang, energy production and water treatment in GIE Chimie Salindres).
• Scope 3 emissions cover the consolidated accounting group (financial consolidation perimeter) and exclude entities consolidated by the equity method (joint ventures and associates).
• Scope 3 methodology changes in 2024: Refined calculation for Category 1 (Purchased Goods & Services) using procurement database integration and primary Product Carbon Footprints where available. Categories 4 (Upstream Transportation) and 5 (Waste) now calculated independently (previously included in Category 1). Methodologies aligned with GHG Protocol and WBCSD guidance for the chemical sector value chain. 2021 baseline restated with 2024 methodology: total Scope 3 increased by 1.3 Mt CO₂eq for 2023 (15.3 Mt vs. 14.0 Mt previously) and decreased by 0.9 Mt CO₂eq for 2021 (16.5 Mt vs. 17.4 Mt previously).
• GHG conversion factors: AR6 GHG warming potential values used.
• Scope 3 Focus 5 categories: Categories 1, 3, 10, 11, 12 represent 90% of 2021 baseline Scope 3 emissions (14.7 Mt CO₂eq out of 16.5 Mt total). 2030 target: -20% reduction vs. 2021 baseline on these 5 categories.
• Target: Carbon neutrality on Scope 1 & 2 by 2050; -30% Scope 1 & 2 and -20% Scope 3 (focus 5) by 2030 vs. 2021 baseline. Baseline changed from 2018 to 2021 following December 2023 partial demerger.

Acting for nature and climate: In November 2024, the WHC (Wildlife Habitat Council) renewed its Gold Level Biodiversity Conservation Certification to Paulinia where Solvay undertakes a remarkable reforestation project which started in 2017 and will be concluded in 2028. Two new forestation projects were launched in 2024 in Linne Herten, Netherlands (tiny forest) and close to Map Ta Phut, Thailand (mangrove). These projects are financed by the new Solvay Travel Carbon Fund collecting €100 / ton CO2 emitted by our business travels. On top of their positive impact for biodiversity, these forestation projects allow the removal of GHG.

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

Phase-in Exemption

Solvay has applied the phase-in provision for ESRS E1-9 as permitted in ESRS 1 and Appendix C ESRS 1.

The phase-in disclosure requirements table indicates that the following ESRS E1-9 requirements are subject to 2025 phase-in:

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

Physical Risks Analysis

Scenarios and Time Horizons

Solvay performed a dedicated physical risk resilience analysis in 2022 covering the entire value chain. The analysis utilized climate scenario analysis from the Intergovernmental Panel on Climate Change (IPCC), considering different Representative Concentration Pathways (RCPs) and Shared Socioeconomic Pathways (SSPs). The following scenarios were compared with a "business as usual" reference scenario, over three time horizons 2030, 2050 and 2100:

• 4°C of global warming (corresponding with the IPCC's RCP 8.5 and SSP-5.85)

• 3°C of global warming (corresponding with the IPCC's RCP 4.5 and SSP-2.45)

Key Findings

The analysis concluded that:

• Solvay's upstream value chain is especially vulnerable to flooding which will increase extremely until 2050 in the 3°C scenario and the >4°C scenario. This risk is present throughout the different regions.
• Solvay's downstream value chain is especially vulnerable to flooding which will increase extremely until 2050 in the 3°C scenario and the >4°C scenario. Asia Pacific countries see high risk to extreme increases across scenarios.
• For Solvay's own operations, Asia Pacific countries are generally at a higher risk across hazards especially for tropical cyclones. US and Brazil are also higher risk countries. Flooding shows high increases until 2050 across regions and scenarios.

Quantitative Analysis - Four High-Contribution Sites

The analysis was complemented by a quantitative analysis focused on four high-contribution margin Solvay sites (including indirect impacts on other sites): Green River in Wyoming USA, Paulinia in Brazil, Linne Herten in the Netherlands and Devnya in Bulgaria. This quantitative analysis excluded the other Solvay sites as well as the upstream and downstream value chain. The quantitative analysis concluded that:

• Overall risk levels are moderate. Across the scenarios, convective storms in Green River were identified as a high risk while floods in Paulinia were assessed as a medium risk until 2050. In Devnya, heatwaves are assessed medium risk in 2030 and grow to high risk in 2050.
• Green River would be the site the most financially impacted. However potential damage would remain moderate.

Transition Risks and Opportunities Analysis

Scope and Scenarios

Solvay performed a dedicated analysis of transition risks and opportunities in 2022 and 2023, focusing on three business units: Soda Ash & Derivatives, Peroxides, and Special Chem, which represent 73% of Solvay's 2022 sales.

The following scenarios proposed by the International Energy Agency (IEA) were considered:

• 1.5°C scenario, representing a pathway where global warming is limited to 1.5°C above pre-industrial levels (IEA Net Zero Emissions Scenario 2021)
• 3°C scenario, representing a pathway with higher GHG emissions and greater climate change impacts (IEA Stated Policy Scenario 2021)

Time Horizons and Methodology

The analysis evaluated the potential impacts over two time horizons 2030 and 2050. Assumptions of price and cost changes, volume changes, and adaptation potential were taken from the consultant's models.

The analysis evaluated the potential impacts of:

• New technology adoption (investment in new, lower-emission technologies, including the adoption of green hydrogen and the phase-out of coal)
• Market dynamics (the adaptation to changing customer behavior in markets such as electronics and buildings)
• Policy and regulation changes (regulations and actions to limit CO2 emissions, such as increasing carbon taxes, banning internal combustion engines, mandating the use of certain fuel types, and tightening environmental standards)
• Supply chain engagement (evaluation of the engagement and collaboration with suppliers in managing climate-related risks and opportunities)

Financial Impact Drivers

The magnitude of the impacts of these different drivers are summarized in the table below. They are qualified on a qualitative range scoring from (-3) for the most challenging ones to (+3) for the most supportive ones:

CapEx Implications

Solvay allocated financial resources toward its actions but is not equipped to report the CAPEX and OPEX with the granularity required by CSRD. Solvay will investigate opportunities to improve this situation for future reporting.

Our sodium-based SOLVAir® provides flue gas cleaning solutions that can remove up to around 99% of SOx, HF, and HCI emissions from exhausts in a range of sectors, including energy production and cement manufacturing. SOLVAir® Marine solution, designed for ships using heavy fuel oil, helps the marine industry reduce pollutant emissions, in line with international regulations.

Actions and resources related to pollution

Overview

Solvay's key actions were launched together with the STAR Factory program in 2022 by adopting a strategic approach to managing emissions to the environment. The actions are currently ongoing, with 2030 as the time horizon by which Solvay aims to complete each action.

Scope: The actions focus on own operations across Solvay's sites.

Resources Allocation

As for the resource allocation and monitoring of the actions related to pollution, the STAR Factory program provides a framework to efficiently implement improvements across Solvay's sites and prioritize resources to support. The site HSE manager and STAR Factory leader are the main contacts for environmental topics and resources are allocated on a case-by-case basis in collaboration with the HSER department and GBU Sustainable Development Champions. Those actions result in Capex and Opex when it comes to ongoing activities. Where Solvay has an obligation to remediate, provisions have been recognized based on the future remediation costs to be incurred.

Monitoring: A digital portfolio management tool, managed at a corporate level, has been deployed for monitoring the progress and impact of STAR Factory initiatives in all dimensions, with Sustainability being one of the key pillars.

Actions by Pollutant Type

Emissions to Water and to Air

• Implementation of pollution control technologies to minimize emissions of pollutants to the environment
• Investments in cleaner production methods and technologies to reduce pollution at the source

These actions are monitored regularly at site, GBU, and corporate level and drive ongoing efforts to minimize Solvay's environmental impact. For pollution of soil, risk assessments are done by the industrial sites and the corporate function and actions are put in place to prevent pollution.

Water Emissions: Metals and Compounds

e.Solvay process

• Description: New technology targeting traces of metals originating from limestone used as raw material in soda ash plants
• Technology details: Developed over 30 years and patented in 2014
• Expected outcomes:
  • Reduce limestone consumption by 30%
  • Eliminate limestone residues
  • Reduce metal emissions to water
• Scope: Soda ash activities

Water Emissions: Chlorides

Dombasle Chloride Reduction Project

• Location: Dombasle, France
• Launch date: January 2022
• Description: Project in collaboration with local stakeholders to decrease chloride levels in the Moselle and Meurthe rivers
• Technology: Separation and recovery of salt (sodium chloride) from industrial activities using nanofiltration
• Testing: Laboratory tests at Universitat Politècnica de Catalunya (UPC) and pilot testing at CETAQUA
• Expected outcomes:
  • 15% reduction in chloride discharges (demonstrated)
  • Potential reduction of over 20% (simulations)
• Scope: Own operations (industrial discharges)

Air Emissions: NMVOC (Non-Methane Volatile Organic Compounds)

Green River Regenerative Thermal Oxidation Technology

• Location: Green River
• Launch date: 2024
• Description: Breakthrough technology to reduce emissions originating from trona mining operations - first company to implement regenerative thermal oxidation technology to decrease emissions in a trona mine
• Expected outcomes: In combination with the coal phase-out plan, a proportion of NMVOC will be abated by this technology
• Scope: Trona mining operations

Leak Detection and Repair (LDAR) Program

• Location: Paulínia site
• Guidelines: US EPA guidelines
• Target: Fugitive NMVOC emissions
• Progress: Four units have participated, achieving a minimum 50% reduction in annual NMVOC emissions across three units
• Timeline: Program aims for completion by 2026
• Scope: Own operations

Best Available Techniques Implementation

• Description: Enhancing air emissions control by implementing Best Available Techniques at prioritized sites
• Priority sites: Bad Wimpfen, La Rochelle
• Scope: Own operations

Targets related to pollution

Emissions

We are committed to minimizing and responsibly managing our emissions. This commitment includes consistently meeting compliance obligations and proactively seeking to exceed them by reducing emissions of substances of environmental concern. These efforts are supported by the action plan outlined above.

To assess the effectiveness of our policies and actions, we annually monitor and measure pollution-related metrics and performance indicators for both air and water.

Marketed products

We aim to phase out the SVHC and the black and red Solvay Substances Risk Monitoring (S-SRMs) present in marketed products at a quantity of more than 0.1%, whenever feasible.

Note: No quantified targets with baseline years, target years, or target values are disclosed for pollution (E2-3). The disclosure contains qualitative commitments only.

Pollution of air, water and soil

Reporting approach

The emissions data presented represent a group-level consolidation of values from sites that exceed the specific thresholds established in Annex II of the E-PRTR Regulation. These thresholds are defined for each pollutant and environmental medium (air, water). In accordance with E-PRTR requirements, only emissions from sites surpassing these predetermined thresholds are included in the reported figures. Other pollutants from the E-PRTR list are either below thresholds or not monitored as they are irrelevant to our activities.

Data collection methods include: monitoring data, emission factors, mass balance equations, indirect monitoring or other calculations, engineering judgements, and other methods in compliance with the E-PRTR Regulation and in accordance with internationally approved methodologies. Emissions are measured using standard methods (e.g. EN or ISO). When direct measurement is impractical or infeasible, calculation methods (e.g. mass balance) or estimates (e.g. emission factors) are applied.

Air Pollution Data (2024)

Water Pollution Data (2024)

Metals and compounds:

*Chlorides are co-produced by European plants together with Soda Ash, in a proportion close to 1 ton of Chloride for 1 ton of Soda Ash produced. Disclosure of the quantities of chloride emitted to water would divulge the amount of soda ash produced in 2024 in Europe. This information is considered commercially sensitive under European Commission Guidelines on the applicability of Article 101 TFEU to Horizontal Co-operation Agreements.

Note on metals and compounds: Metals and compounds listed above are mostly traces of metal encapsulated in the large quantities of limestone residues discharged by Solvay's soda ash activities. These traces of metals originate from the limestone used as raw material. They will be tackled by the new e.Solvay process.

Soil Pollution Data (2024)

Solvay's industrial activities do not generate emissions to soil under normal operating conditions. Any emissions to soil would be due to uncontained accidental events (leaks, chemical spills, etc.). In 2024, no such events occurred; therefore, no emissions to soil need to be reported.

Substances of concern and substances of very high concern

Marketed products

Solvay decided to use the threshold value of 0.1% w/w for SoC as it is referenced in the REACH regulation for EU Substances of Very High Concern (SVHC).

The share of 2024 net sales made with:

Please refer to the next chapter for the full details of this entity specific disclosure.

Amount of SoC that are marketed as products or as part of products by hazard class category:

(*) Reference period for the analysis: January 1, 2024 - December 31, 2024.

(**) Category 1 as marketed products: 8,243 metric tons of substances referred to in Article 59(10) of the REACH Regulation (Candidate List) and 0.0 metric tons of substances referred to in Article 57 and Annex XIV of the REACH Regulation (Authorization List).

(***) Category 1 as part of marketed products: 0.0 metric tons of substances referred to in Article 59(10) of the REACH Regulation (Candidate List) and in Article 57 and Annex XIV of the REACH Regulation (Authorization List).

There is no amount of SoC that leaves Solvay's facilities as product or as part of product in the hazard class categories 3, 4, and 6.

Solvay - Substances Risk Monitoring (S-SRM) - Entity specific disclosure

Today, the "black list" and "red list" contain about 3,400 substances. In 2024, out of these 3,400 substances, 26 were present in Solvay-marketed products at a concentration of more than 0.1% w/w.

(*) According to the black and red S-SRM lists. S-SRMs manufactured by, or forming part of, the composition of products sold by Solvay worldwide. Reference period for the analysis: January 2023 - January 2024.

(**) Analysis of Safer Alternatives for potential substitution for black and red S-SRMs. A substance may be present in more than one product.

In 2024, Analysis of Safer Alternatives (ASA) was required and planned for a total of 20 combinations of products and applications. Of the 20 analyses of safer alternatives completed as of December 31, 2024, since the start of the program:

• Five have led to an effective replacement, either through a substitution, through a reduction below the required threshold, through a stop of production, or otherwise discarded as they became irrelevant to Solvay's activity.
• Three are ongoing, which means that an alternative has been identified and discussed with customers for implementation.
• 12 have resulted in no available alternatives, either because no substitute is available, because of regulatory obligations to use SVHC for some applications, or because an alternative has not been requested due to the application in the final product.

Raw materials

The perimeter of reporting this year is limited to raw materials labelled as SoC or SVHC and used in our European production plants. It excludes raw materials that are not labelled as SoC or SVHC but could contain SoC or SVHC.

We have been unable to reach a level of reasonable comfort to determine even a high-level estimate relating to such substances in our other locations outside Europe and with respect to raw materials which could partly include such substances, which would be relevant and useful to our readers in determining our full impact in tons, and which would adhere to the qualitative characteristics of information as prescribed in Appendix B of ESRS 2.

This is an area of significant management judgment, and we commit to improvements in our estimation process during 2025 when better data sources will become available with respect to substances of concern and very high concern, and which could result in a materially different outcome in 2025 with respect to substances of concern or very high concern data.

Amount of SoC procured products in 2024 by main hazard class category (European production plants perimeter only):

There is no amount of SoC that enters Solvay's European production facilities as a procured product in the hazard class categories 2, 3, 4, 5, 6 and 7.

Hazard class categories used for Marketed products and Raw materials

• Category 1:
  • Carcinogenicity, category 1
  • Germ cell mutagenicity, category 1
  • Reproductive toxicity, category 1
• Category 2: Chronic hazard to the aquatic environment, categories 1
• Category 3:
  • Endocrine disruption for human health, category 1
  • Endocrine disruption for the environment, category 1
• Category 4:
  • Persistent, Mobile, and Toxic or Very Persistent, Very Mobile properties
  • Persistent, Bioaccumulative, and Toxic or Very Persistent, Very Bioaccumulative properties
• Category 5:
  • Carcinogenicity, category 2
  • Germ cell mutagenicity, category 2
  • Reproductive toxicity, category 2
• Category 6:
  • Endocrine disruption for human health, category 2
  • Endocrine disruption for the environment, category 2
• Category 7:
  • Respiratory sensitization, category 1
  • Skin sensitization, category 1
  • Chronic hazard to the aquatic environment, categories 2 to 4
  • Hazardous to the ozone layer
  • Specific target organ toxicity, repeated exposure, categories 1 and 2
  • Specific target organ toxicity, single exposure, categories 1 and 2

Monitoring and management approach

Solvay identifies SoC and SVHC substances and runs risk monitoring processes to update risk studies and strive to substitute them with safer alternatives. In the supply chain, Solvay engages with suppliers to look for opportunities to prevent, reduce, and/or remediate pollution.

To ensure responsible stewardship over the life cycle of Solvay's products, the company takes actions focused on continuous improvement. Through Product Stewardship Management Systems, Solvay promotes the use of Solvay - Substances Risk monitoring (S-SRMs) to substitute substances whenever possible or reduce them below required levels, or halt production altogether. The internal list of SVHCs, S-SRMs, currently comprises approximately 3,400 substances identified as "black and red." In 2024, 26 of these substances were found in Solvay products at concentrations above 0.1% w/w, accounting for 4.7% of net sales.

Aside from the 26 products that are present on the black or red S-SRM lists, there is only one substance listed on the EU Candidate list: Bisphenol A. It appears on the black and red Solvay Substances Risk Monitoring (S-SRM) inventory because the analysis is done worldwide. However, it is neither marketed nor sold in the EU, and the global phasing out of Bisphenol A is effective from the end of 2024.

Solvay established its own reference list of substances of very high concern called "Solvay - Substances Risk Monitoring (S-SRM)" (previously called "Solvay - Substance of Very High Concern" (S-SVHC)) since 2015. This list is updated every year and includes two key categories:

• The so-called 'black list' includes all substances already undergoing a regulatory phase-out process with a known deadline in at least one country or zone across the world, or a restriction for uses relevant to Solvay.
• The so-called 'red list' includes all substances that could enter into a process of special authorization or restriction in the medium term.

The S-SRM methodology is part of the Global Policy - Health & Safety. It allows Solvay to control the potential risk of updates of hazard classification of substances in products, especially before they become Substances of Very High Concern (SVHC). S-SRM also allows Solvay to anticipate future regulatory expectations regarding SoC.

As part of the company's ambition, Solvay always strives to go beyond compliance with all relevant regional and national chemical regulations such as REACH (Registration, Evaluation, Authorization, and Restriction of Chemical Substances) or REACH-like regulatory frameworks all over the world. The ambition involves continuously lowering the presence of SVHC and SoC, whenever possible in all marketed products of the value chain. Solvay concentrates on SVHC from the EU REACH annex XIV and candidate list, while also monitoring S-SRM substances in marketed products for safer alternatives.

Anticipated financial effects from pollution-related impacts, risks and opportunities

Phase-in exemption applied

Solvay has applied the phase-in provisions in accordance with Appendix C of ESRS 1 for disclosure requirement ESRS E2-6.

As stated in the report:

"We have applied the following phased-in disclosure requirements as permitted in ESRS 1 and in Appendix C ESRS 1:

h Disclosure requirements: ESRS 2 SBM-3 48(e), ESRS E1 E1-9, ESRS E2-6, ESRS E3 E3-5, ESRS E4 E4-6, ESRS E5 E5-6, ESRS S1 S1-7, ESRS S1 S1-8, and ESRS S1 S1-12."

Policies related to water and marine resources

Solvay has disclosed a policy related to water consumption as part of its broader Environmental Management Policy.

Water Policy (part of Environmental Management Policy)

Key content and principles:

• Commitment to reducing freshwater withdrawal in locations identified as water scarce
• Commitment to water conservation through the adoption of advanced technologies and methods to decrease water withdrawal and optimize water resource efficiency
• Investments in innovative production methods and technologies aimed at reducing water consumption at the source
• Preserving both water availability and the quality of marine ecosystems
• De-risking Solvay's production capacity and industrial operations
• Commits the Group to decreasing its impact on the environment

Public availability: The company refers to "ESRS 2 - MDR-P policy table" for additional information.

Sustainable oceans and seas: According to the disclosure reference table, sustainable oceans and seas (paragraph 14) is "Not Material" for Solvay.

We announced climate and water projects in Paulínia, Brazil, which will reduce this major production plant's greenhouse gas emissions by 40% annually by 2028 and decrease annual water intake. Installing biomass‑fired boilers, fueled primarily by sugarcane bagasse, will support renewable energy adoption while implementing a closed-loop cooling system that will reduce water usage.

Water consumption

Water consumption and withdrawal metrics (2024)

Notes:

(*) Water included in raw materials and rainwater is not taken into account in the total water withdrawal.

(**) We do not consider seawater withdrawals as a risk. Consequently, seawater withdrawals (circa 73 millions m³) are excluded from the total withdrawals in areas at water risk.

(***) Water intensity ratio calculated as the total water consumption over sales (as reported in the consolidated income statement in the financial statements).

Contextual information

Water withdrawal, measured in cubic meters per year, is the amount of incoming water purchased from third parties, such as drinking water from the public network, or pumped by Solvay from freshwater systems, such as rivers and lakes, and from groundwater sources, such as aquifers.

The total 2024 water consumption is the sum of water lost through evaporation, leakage, and exportation of products and waste. Water purchased or pumped for third parties is included in water withdrawals. Water taken from a river for cooling and returned after use counts as water withdrawal but not as water consumption.

Solvay identified sites in areas subject to hydric stress using the Aqueduct database Water Stress indicator (18 sites with high to extremely high water stress), supplemented by site-level water risk reviews. Based on these assessments, 7 sites were added and 8 sites were removed, resulting in 17 priority sites located in areas of water scarcity. This list is reviewed annually.

Water monitoring and initiatives

In 2024, Solvay successfully monitored over 90% of freshwater withdrawal across global operations.

Key water reduction initiatives:

• Paulínia, Brazil: Implemented a closed-loop cooling system in December 2024, running at full capacity in January 2025. This project reduces water withdrawal by 4.2 million m³/year compared to a 2024 baseline from the rivers that cross the site.

• Qingdao, China: Captures condensation water from production processes for reuse, achieving 14,000 m³ of water saved annually (equivalent to six Olympic-sized swimming pools), reducing withdrawal from the Yellow River.

Scope and methodology

Solvay operates 17 priority sites in areas of water scarcity, identified using the Aqueduct database and site-level assessments. The STAR Factory program drives water consumption reduction strategies at high-risk facilities. An internal water price is applied in investment project evaluations, varying based on hydric stress and water usage/quality (cooling vs. process water).

Anticipated financial effects from material water and marine resources-related impacts, risks and opportunities

Phase-in exemption applied

Solvay has applied the phase-in provision for ESRS E3-5 as permitted in ESRS 1 and Appendix C ESRS 1.

Action plans (CapEx and OpEx)

Solvay allocated financial resources toward its actions but is not equipped to report the CAPEX and OPEX with the granularity required by CSRD. Solvay will investigate opportunities to improve this situation for future reporting.

Please note that the definition of CSRD allocated resources is based on different scoping compared to IFRS accounting standards.

For Nature, we have made a new commitment to biodiversity, aiming to be best in class and aligned with the Global Biodiversity Framework. This commitment includes dedicating 30% of the land around our facilities to nature conservation by 2030. To do it right, we are partnering with Wildlife Habitat Council (WHC) in Latin America and International Union for Conservation of Nature (IUCN) in the EU.

In November 2024, the WHC (Wildlife Habitat Council) renewed its Gold Level Biodiversity Conservation Certification to Paulinia where Solvay undertakes a remarkable reforestation project which started in 2017 and will be concluded in 2028. Two new forestation projects were launched in 2024 in Linne Herten, Netherlands (tiny forest) and close to Map Ta Phut, Thailand (mangrove). These projects are financed by the new Solvay Travel Carbon Fund collecting €100 / ton CO2 emitted by our business travels.

Biodiversity target:

• 30% land dedicated to Biodiversity by 2030

% of permeable land located near biodiversity sensitive areas in positive biodiversity management: New target introduced in 2024 with a 30% target by 2030.

Our breakthrough soda ash process, e.Solvay, is expected to reduce our scope 1 & 2 greenhouse gas emissions by around 50%, and the consumption of natural resources, to result in 20% less water and salt and 30% less limestone, compared to the current process, while eliminating limestone residues.

Our proprietary process for bio-sourced Highly Dispersible Silica made from rice husk ash, a rice byproduct, will offer the tire industry a circular silica with a reduced carbon footprint.

Our new Augeo® Carbon Neutral portfolio offers bio-based, readily biodegradable, Low Volatile Organic Compounds (LVP-VOC), and high‑performance solvents including a new carbon neutral product for air care and home cleaning. It is produced at our Paulínia, Brazil, plant that introduced renewable‑source products such as bio-based solvents.

New circular silica for tires. Precipitated silica is instrumental in achieving the ambitious targets set by tire manufacturers in terms of sustainable raw materials. Solvay's proprietary process for bio-circular silica derived from rice husk ash will help reduce the tire industry's carbon footprint and increase the share of renewable materials in the tires. The new process enables a reduction of GHG emissions of the precipitated silica, thanks to a less-energy-intensive manufacturing process while delivering the same performance. Production will begin in 2025 in Livorno, Italy, using locally sourced raw materials, while we are working on other silica circular alternatives to enable significant circular conversion.

We announced our partnership with Cyclic Materials to supply our plant in La Rochelle, France, with recycled mixed rare earth oxide for further separation and purification, contributing to the creation of a circular supply chain for rare earths.

ESRS E5-4 Resource Inflows

Raw Materials

The overall raw materials expense of the Group amounted to circa €0.95 billion in 2024 (vs. €1.0 billion in 2023). The raw materials expense can be split into several categories:

• Crude oil derivatives: 32% (e.g. cumen, adiponitrile, butanol)
• Minerals derivatives: 28%
• Natural gas derivatives: circa 22%
• Others: 18%

Energy Consumption

Net energy costs represented around €0.7 billion (vs €0.8 billion in 2023). The distribution per region is:

• Europe: 71%
• Americas: 19%
• Asia and rest of the world: 10%

The main energy sources expense are:

• Coke, anthracite, petcoke and coal: 35% (vs 39% in 2023)
• Natural gas (net of steam and electricity sold): 33% (vs 33% in 2023)
• Electricity: 25% (vs 21% in 2023)
• Steam, hydrogen and biomass: 7% (vs 6% in 2023)

Circular and Renewable Materials

The company has announced the development of circular silica for tires derived from bio-circular silica from rice husk ash, which will begin production in 2025 in Livorno, Italy, using locally sourced raw materials. This new process enables a reduction of GHG emissions of precipitated silica thanks to a less-energy-intensive manufacturing process.

The Rheinberg, Germany soda ash plant is the world's first soda ash plant primarily powered by renewable energy, namely local waste wood. Projects are underway to substitute coal with refuse-derived fuel in Dombasle, France (expected late 2025) and biomass in Torrelavega, Spain (considering by 2027).

Note: The disclosure provides cost-based and percentage composition data for raw materials and energy sources, but does not report total weight in tonnes, biological vs. non-biological split, or percentage of recycled/renewable content in accordance with ESRS E5-4 requirements. Reference is made to NOTE E1-5 Energy consumption and mix in the Sustainability statements for additional energy information.

Anticipated financial effects from resource use and circular economy-related impacts, risks and opportunities

Phase-in exemption applied

Solvay has applied the phase-in provision for ESRS E5 E5-6 as permitted in ESRS 1 and Appendix C ESRS 1.

Action plans (CapEx and OpEx)

Solvay allocated financial resources toward its actions but is not equipped to report the CAPEX and OPEX with the granularity required by CSRD. Solvay will investigate opportunities to improve this situation for future reporting.

Please note that the definition of CSRD allocated resources is based on different scoping compared to IFRS accounting standards.

Waste

E5 Resource use & Circular Economy

E5-IRO-1 Resource use and circular economy related IROs

Please refer to ESRS 2 IRO-1 Description of the process to identify its impacts, risks, and opportunities and to assess which ones are material.

Impact materiality:

E5-1 Policies related to waste management

Please refer to the ESRS 2 - MDR-P policy table (Responsible Care Policy).

The policy related to waste is part of Solvay's Environmental Management Policy, which commits the Group to decreasing its impact on the environment.

An overview of the Environmental Management Policy can be found in the table in section MDR-P.

E5-2 Actions and resources related to waste management

Solvay acknowledges the crucial role of resource use and circular economy principles in minimizing its environmental footprint and enhancing operational efficiency. We have embraced an extensive waste management strategy that adheres to the waste hierarchy, prioritizing waste prevention, reuse, recycling, and recovery over disposal. This hierarchical approach is fundamental to our efforts to reduce waste generation and promotes the reintegration of materials into the production cycle wherever possible.

In 2024, several initiatives were launched to further reduce waste generation:

• In Rosignano, Italy, continuous improvements focused on the recovery of silica filter cake and aluminium slurry. These actions notably avoided 240 tons of hazardous waste from disposal.
• In Devnya, Bulgaria, 250 tons of non-hazardous waste from the effluent treatment plant sludge were avoided by introducing a sludge thickening step instead of sending it to composting.
• In Gunsan, South Korea, 37 tons of hazardous waste were avoided by recovering and reusing solvent in the production process.
• In our Special Chem business, 21 tons of precious metal catalysts were reused by suppliers, avoiding disposal.
• In Rheinberg, Germany, silica gel and zeolites of 37 tons were repurposed as a resource instead of being disposed of.

Our waste management strategy also focuses on integrating circular economy principles into our production. To better handle by-products we cannot use as raw materials for energy or chemical recycling, Solvay explored alternative methods. For instance, salt-contaminated polymers and fabrics, traditionally incinerated, are now being reconsidered to reduce our environmental footprint. This effort aligns with our broader commitment to sustainability, as we continuously seek waste prevention and valorization opportunities.

Solvay maintained our zero-waste-to-landfill initiative across several sites. Although we do not currently have a publicly stated Group-level zero-waste-to-landfill target, seven of our sites achieved this certification in 2024: Paulinia and Curitiba in Brazil; Collonges in France; La Rochelle in France (site no longer operational from December 2024); Gunsan in South Korea; Anan in Japan; and Banksmeadow in Australia.

E5-5 Metrics and targets related to waste management

Waste generation impacts are assessed for each of our sites during the STAR Factory program as part of the E5 – Circular Economy self-assessment. This process considers local waste regulation systems, the actual waste management implementation at the site, and whether more sustainable processes have been implemented. The most significant non-conformances to local regulations, or the most significant process improvements identified are discussed with the site and GBU management to draw up action plans.

This approach ensures that our waste management practices remain aligned with regulatory requirements and environmental objectives, facilitating continuous improvement across all operations.

Metrics on waste

The scope of reporting indicators is aligned with the financial consolidation scope. The indicators cover all production, research, and innovation sites.

In 2024, Solvay generated 274,068 tonnes of waste, of which 44,634 tonnes (16%) were classified as hazardous and 229,434 tonnes (84%) as non-hazardous. No radioactive waste was generated.

Employee welfare is a priority to us. Our various initiatives contribute to enriching well-being at work, such as Solvay Cares that guarantees minimum social benefits to 100% of our workforce, and our Diversity, Equity and Inclusion strategy that develops a sense of belonging and values diversity. We are also taking actions to close gender pay gaps and to promote diversity in recruitment, and are committed to providing a living wage to 100% of our employees by 2026.

Social dialogue is essential to us. We continue to engage with our employees through diverse channels and have renewed our global agreement with IndustriALL, the union for the chemical industry.

To strengthen the sense of belonging and reinforce this momentum of change, members of our Executive Leadership Team visited Solvay sites across all regions and businesses, celebrating achievements, engaging with employees in the field to explain our strategy and evolving culture, and discussing challenges.

Taking action on material impacts on own workforce

Material Impact: Health & Safety

Solvay has implemented comprehensive action plans to manage material impacts, risks, and opportunities related to its workforce. The following table outlines the key actions:

Scope and Eligibility

• Scope: All operational sites
• Eligibility: All own workforce and value chain workers are eligible to apply the Health & Safety policy
• Entities involved: All entities support the standards, procedures, norms, and processes

Diversity targets:

• 30% Women in mid & senior management by 2030
• Living wage for 100% of workforce in 2026

In 2024 we completed the global living wage analysis for all of the countries it operates in, with a strive to close the gap in 2025.

Characteristics of the undertaking's employees

Total Headcount and FTE

Headcount (December 31, 2024): 8,905 employees

Headcount (December 31, 2023): 9,091 employees (implied from -2.09% decrease noted)

Full-time Equivalents (FTE): Not explicitly disclosed for 2024 or 2023.

Headcount by Gender

Headcount by Region

Headcount by Country (countries with ≥50 employees representing ≥10% of total)

Average number of employees in countries with 50+ employees (≥10% threshold): 3,844

Headcount by Employment Contract Type (by Gender, December 31, 2024)

Headcount by Employment Contract Type (by Region, 2024)

Headcount by Employment Type (Full-time/Part-time by Gender, December 31, 2024)

Headcount by Employment Type (Full-time/Part-time by Region, 2024)

Part-time Employees by Country (Top 4, December 2024)

Employee Turnover

Average number of employees (headcount) 2024: 8,996

New Hires

New hire number or rate not disclosed.

Methodology Notes

• Headcount figures exclude 83 employees from Shandong Huatai Interox Chemicals (China), partially owned entity to be incorporated into HR system in 2025.
• Scope: Active internal workforce as of December 31, 2024. Excludes trainees, students, and external workers.
• Turnover calculations based on employees who left (voluntary or involuntary) divided by average active employees during the period.
• Non-guaranteed hours employees cannot be identified in Solvay's HRIS system and are reported as N/A.
• Gender categories: Male, Female, Other, Not Disclosed.
• Regions: EUROPE, LATIN AMERICA, ASIA PACIFIC+ROW, NORTH AMERICA.

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

Scope and definition

Solvay manages a diverse workforce composed of different types of employees, including both internal and external workers. The internal workforce is further classified into regular classes, while the external workforce includes contingent workers, temporary staff, trainees, students, and apprentices.

Important limitation: Non-employees or self-employed individuals are not covered in this disclosure, as Solvay does not retain data on these types of workers. These individuals are currently not identifiable within Solvay's HRIS system.

Solvay defines its own workforce as the active internal workforce, thus excluding trainees, students, and external workers from this designation, as they are not included in the reported numbers. All employees included in the report are directly employed by Solvay.

Contractor safety data

While detailed headcount data for non-employee workers is not disclosed, Solvay reports certain safety metrics for contractors:

Scope of safety reporting (2024):

• Scope: Solvay employees and contractors
• The percentage of individuals within Solvay's own workforce who are working on sites with health & safety management systems is 73.88% (6,579 out of 8,905 of total employees)

Recordable work-related injuries - Contractors (2024):

• Three fatalities involving contractors (value chain workers) occurred during the year:
  • One at the Torrelavega site on August 27
  • One at the Devnya site on October 28
  • One at the Torrelavega site on December 4
  • All under the SA&D GBU
• Total of 17 Recordable Injuries (RIs) related to contractors in 2024
• Total of 41 Recordable Injuries (RIs) documented in 2024 (24 RIs for own workforce and 17 RIs for contractors)

Methodology notes

The safety data is tracked as part of Solvay's HSE management system and includes contractors working on Solvay sites. However, comprehensive headcount, FTE data, or breakdown by contractor type (agency, self-employed, etc.) is not provided in the sustainability statements.

Collective bargaining coverage and social dialogue

Coverage overview

The percentage of our employees covered by collective bargaining is 74.83% (6,664 out of 8,905 of total employees).

Collective bargaining and social dialogue coverage by geography

Complementary note: The countries included in the non-EEA scope are Brazil and USA.

Social dialogue arrangements

Solvay engages with employees through diverse channels and has renewed our global agreement with IndustriALL, the union for the chemical industry.

In addition to the European Works Council (EWC), Solvay has concluded a global agreement with a trade union federation (IndustriALL) and has created a global representative body to promote social dialogue, the Solvay Global Forum (SGF).

Frequency of engagement:

• Global forums like the SGF meet quarterly
• The EWC Secretariat convenes monthly
• Annual site visits are conducted by IndustriALL and the Select Committee of the EWC

Application of collective bargaining agreements

As much as possible, we will regularly monitor and report on social dialogue KPIs, mainly related to Collective Bargaining Agreements (CBAs) as all Solvay employees are covered by an umbrella collective agreement.

The overarching principle is that CBAs exert a considerable influence on employment practices following local labor law legislation, although in varying degrees depending on the employee category and specific legal entity. These agreements apply across all entities and distinguish between non-cadre, cadre, and executive employees, ensuring tailored provisions for each group. For most of our workforce, excluding executive-level employees, the CBAs are the foundation of employment terms.

Gender parity - Women in mid and senior management:

Solvay increased by 1pp to 27.3% the percentage of women in mid and senior management positions. Management categories are defined on the basis of the Hay Job Evaluation Methodology. Middle and senior management levels refer to the entire active internal workforce having Hay points above 530.

Adequate wages

Benchmark used

Solvay applies a living wage benchmark provided by WageIndicator. The company states:

"In our analysis of 2024, all employee data including Annual Basic salary and guaranteed bonuses/allowances were scrutinized against city-regional benchmarks provided by our external provider, WageIndicator, to ensure alignment with adequate wage standards."

Additionally, Solvay has committed to the UN Global Compact Forward Faster initiative on living wage.

Coverage and assessment results

As of December 2024:

• 100% of Solvay's worldwide employees are receiving compensation at or above local adequate wage standards (WageIndicator benchmarks)
• The company conducted a comprehensive living wage assessment across all operating countries and regions
• Where discrepancies in meeting living wage benchmarks were identified, plans have been outlined to implement targeted strategies in 2025

Geographic scope

• Global: Assessment covers all countries and regions where Solvay operates
• The company completed "the global living wage analysis for all of the countries it operates in" in 2024

Targets and commitments

Solvay has committed to:

• Provide a living wage to 100% of workforce by 2026, aligning with the UN Global Compact Forward Faster initiative
• The 2024 Annual Report states: "we are also well on track to achieve ahead of schedule our UN Global Compact commitment on living wage for all employees"
• Multiple references indicate the company aims to "close the gap in 2025 and provide a living wage for 100% of our employees by 2026"
• One source mentions being "one year ahead of our commitment" with goal to ensure all employees earn a living wage by 2025

Methodology details

• External provider: WageIndicator
• Benchmark type: City-regional living wage benchmarks
• Assessment scope: Annual Basic salary and guaranteed bonuses/allowances
• Assessment completed: 2024 global analysis completed
• Remediation: In cases where discrepancies were identified, targeted strategies planned for 2025 implementation
• Pilot programs: Three successful pilot programs implemented in the US, UK, and China prior to global rollout

Additional context

The living wage commitment is part of Solvay's broader fairness and equity strategy:

"A core commitment in this regard is ensuring a living wage for all our employees. We recognize that a living wage is more than just a number; it represents the means for our employees to meet their basic needs, live with dignity, and provide for their families."

Solvay also maintains "Solvay Cares Agreements" guaranteeing minimum protection levels for welfare and healthcare globally, and monitors pay equity separately from living wage compliance.

Social protection

Solvay Cares Policy

Solvay has implemented a Solvay Cares Policy that guarantees minimum global social benefits for all employees worldwide. The policy provides a minimum level of protection covering:

• Major Health Costs
• Disability leave
• Maternity and Paternity leave
• Adoption leave
• Death of an employee
• Employee Wellbeing support

The Solvay Cares Policy reflects the company's long-standing commitment to social welfare and includes parental leave, health insurance, and disability and life insurance for all employees.

Executive Leadership Team Benefits

Executive Leadership Team (ELT) Members receive the following social protection benefits:

Self-employed Executives:

• Pension contributions (defined contribution plan)
• Death-in-service benefits
• Disability benefits
• Healthcare benefits

Employment contract-based ELT Members (e.g., Chief People Officer based in Netherlands):

• Pension benefits
• Death-in-service benefits
• Disability benefits
• Medical plan benefits based on provisions applicable in their contractual home countries

Coverage and Scope

The Solvay Cares Policy applies globally to all employees worldwide. The policy establishes a minimum level of protection that supplements local statutory requirements and private schemes applicable in each country of operation.

No specific percentage of employees covered or country-by-country breakdown is quantitatively disclosed in the sustainability statement.

Our people are key to our operations and the success of our strategy, and we continuously focus on ensuring well-being at work and nurturing social dialogue, while creating the skills and capabilities to support our future performance.

In 2024 we defined our new culture with teams across the globe, with overall almost 3,000 people contributing to our new Culture and Beliefs program, focusing on three core behaviors – focus, ownership, and collaboration.

Health and safety metrics

Health and safety management system coverage

73.88% of Solvay's own workforce (6,579 out of 8,905 total employees) work on sites with health & safety management systems. According to the Group HSE procedure, the HSE system is applicable to all Industrial and R&I Solvay sites with more than 10 employees.

Fatalities

The three contractor fatalities occurred at: Torrelavega site (August 27), Devnya site (October 28), and Torrelavega site again (December 4), all under the SA&D GBU.

Recordable work-related injuries

The RIR for own workforce is calculated per 200,000 hours worked based on 24 RIs and 16,343,385 total work hours in 2024.

Days lost to work-related injuries and ill health

Days lost to work-related injuries (own workforce, 2024):

• Total days lost: 720 days
  • 235 days from previous year LTIs affecting 2024
  • 485 days lost due to the 17 LTIs in 2024
  • Two cases from 2024 continued into 2025 (to be consolidated in next reporting period)

Days lost to work-related ill health (own workforce, 2024):

• Total days lost: 2,008 days
• All attributed to work-related ill health issues, none due to fatalities

Recordable work-related ill health

Active employees diagnosed or declared in 2024:

Former employees (retired or left company) diagnosed or declared in 2024:

No fatalities from work-related ill health were recorded for own workforce or other workers in 2024.

Calculation methodology

Reportable Injury (RI): Work-related injury or illness requiring treatment greater than first aid.

Lost Time Injury (LTI): Work-related injury or illness resulting in work interruption of one or more days, not including the day of the accident.

Recordable Injury Rate (RIR) is calculated per 200,000 hours worked.

Scope: All production and research centers under operational control, consolidated at 100% regardless of consolidation method. Health & Safety indicators cover all sites under operational control.

Work-life balance metrics

Parental leave entitlement

Solvay's Solvay Cares Agreements guarantee a minimum level of protection in terms of welfare and healthcare for all employees worldwide, covering:

• Maternity and Paternity leave
• Adoption leave

Scope: All employees worldwide are entitled to parental leave benefits under the Solvay Cares Policy.

Take-up rates and return-to-work rates

No quantitative data disclosed on:

• % of entitled employees who took family-related leave (by gender)
• Return-to-work rate after parental leave (by gender)

Work-life balance initiatives

Solvay has implemented a Make Life Easier program (qualitative target) - a toolkit to help employees better balance their workload, supporting work-life balance for all employees.

Note: The disclosure confirms universal entitlement to parental leave through the Solvay Cares Policy but does not provide quantitative metrics on take-up rates or return-to-work rates disaggregated by gender.

Compensation metrics (ESRS S1-16)

Pay gap

The unadjusted gender pay gap is 6.21% for 2024. This metric reflects both the progress Solvay has made in fostering gender equality and the remaining work to be done, influenced by various factors such as roles, seniority, representation imbalances, and geographical disparities within the organization.

The metric is derived from the average hourly remuneration of all male and female employees across the organization in 2024, providing insights into gender-based compensation differentials. It undergoes thorough data quality validations to ensure accuracy and reliability aligning with actual pay practices.

The data is collected primarily from Solvay's global payroll systems covering over 90% of the workforce in the group. It includes actual total remuneration figures for employees in 2024, encompassing various cash elements like Basic Salary, Seniority, Overtime, and Bonuses, as well as annual payments such as Christmas allowances and local Benefits. In cases where total remuneration details are not centrally available, the HR system is used to derive information from employees' target Annual Base Salary and actual bonus payments for comprehensive coverage.

Solvay is driving enhanced data accuracy and coverage through the initiation of a Payroll Transformation Project, aiming to transition to a truly global operational model starting in 2025 and nearing completion by 2027.

Remuneration ratio

In 2024, Solvay introduced an enhanced methodology for determining the ratio between the CEO's total remuneration and the unadjusted global median pay, resulting in a ratio of 50:1 for 2024.

This updated approach focuses on total remuneration to ensure a comprehensive representation of the organization's compensation framework, covering elements such as annual base salary, guaranteed bonuses, allowances, short-term and long-term incentives, and employee benefits in kind.

The application of this formula aligns with the gender pay gap methodology for the total remuneration ratio to support transparency within the leadership compensation structure, especially during transitions.

Additional CEO pay ratios disclosed:

• The ratio of the CEO's pay (highest paid executive in the Group) to that of the lowest paid Solvay employee in Belgium in 2024 is 40:1, compared to 125:1 in 2023, 114:1 in 2022, 90:1 in 2021, and 108:1 in 2020.
• Based on the 2024 CEO target remuneration, the ratio to the lowest paid employee would be 51:1.

Methodology

Annual hours definition: Salary is based on a general figure, not necessarily actual worked hours, utilizing actual working hours data where available and estimated hours in its absence.

Total remuneration definition: Varies for global and non-global payroll solution countries, encompassing all cash elements and benefits on top of the basic salary in European standard alignment.

Data coverage: Primary sourcing from payroll systems for the majority of employees and secondary estimation based on historical trends for uncovered individuals, ensuring comprehensive depiction.

Reporting date: As of December 31, 2024, consolidating data for all active employees on this date and annualizing information for 2024 hires to provide full-year equivalents, maintaining accuracy and inclusivity in remuneration analysis.

CEO remuneration for 2024: Calculated as the sum of the remuneration as reported in section 4.6.3.8 of the Corporate Governance Statement.

Lowest paid employee: Defined as a full-time employee in Belgium who has worked for a full year and holds the lowest base salary at year end.

Incidents, complaints and severe human rights impacts

Incidents and complaints

During the reporting period, Solvay meticulously tracked social and human rights incidents concerning discrimination, harassment, and severe human rights violations within its own workforce.

Cases documented:

• Discrimination and harassment: 30 cases
• Severe human rights violations: 0 cases

Complaints filed through Ethics Helpline:

• Total complaints: 109
• Of which reported by third parties: 30
• Cases escalated to National Contact Points under OECD Guidelines: 0

Severe human rights impacts

• Forced labor: 0 instances
• Human trafficking: 0 instances
• Child labor: 0 instances
• Violations of UN Guiding Principles and OECD Guidelines: 0

Fines, penalties, and compensation

• Material fines, penalties, or compensations for social and human rights violations: 0
• Material fines, penalties, or compensations for severe human rights issues: 0

Status of complaints

The document does not provide detailed breakdown of complaint status (open/resolved/under investigation).

Methodology notes

Solvay tracks incidents through its Ethics Helpline, an external third-party helpline accessible 24/7 throughout the year, operating in 19 languages and covering all Solvay locations. The organization maintains robust mechanisms for identifying, reporting, and investigating concerns regarding unlawful behavior or actions that breach Solvay's Code of Business Integrity. All reports are investigated promptly, independently, and objectively by the Ethics & Compliance Department.

Policies related to value chain workers

Solvay has committed to meeting its responsibility to respect human rights and act with due diligence to avoid any infringement of human rights across its value chain. The company has established specific policies to manage impacts, risks and opportunities related to value chain workers.

Human Rights in Business Policy

Scope: All stakeholders who may potentially be impacted by Solvay's operations and value chain

Key content and principles:

• Foundation for integrating the responsibility to respect human rights into Solvay's business activities
• Outlines the human rights most relevant to operations and value chain, including:
  • Health and safety
  • Right to a clean, healthy, and sustainable environment
  • Freedom of association and collective bargaining
  • Non-discrimination
  • Prohibition of child labor, forced labor, or human or sex trafficking

Public availability: Publicly available to all stakeholders via the company website

Linkage to international standards:

• Universal Declaration of Human Rights
• International Covenant on Civil and Political Rights
• International Covenant on Economic, Social and Cultural Rights
• International Labor Organization's (ILO) eight core labor conventions
• ILO Declaration on Fundamental Principles and Rights at Work
• Convention on the Rights of the Child
• United Nations (UN) Global Compact
• ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy
• OECD Guidelines for Multinational Enterprises
• UN Guiding Principles on Business and Human Rights
• Children's Rights and Business Principles

Implementation and monitoring:

• Regular review and updates based on emerging best practices, changes in legal and regulatory landscape, and stakeholder feedback
• Updates to the policy are reflected in the version available on the website

Supplier Code of Business Integrity

Scope: All suppliers doing business with Solvay

Key content and principles:

• Provisions related to labor rights
• Safety standards
• Environmental standards

Implementation and monitoring:

• All suppliers are requested to commit to the Code
• Corporate Social Responsibility (CSR) Questionnaire to assess suppliers' engagement and practices related to labor rights, safety, and environmental standards
• Collaboration with third-party organizations (EcoVadis and Together for Sustainability) to conduct assessments and audits of supplier performance
• In 2024, 1,345 suppliers were assessed by EcoVadis and 18 suppliers were audited
• 96% of core suppliers are assessed by EcoVadis
• In 2024, all suppliers doing business with Solvay in Germany were added to screening
• Batch screening identified four suppliers with eight adverse media alerts regarding human rights during 2023-2024

Sustainable Procurement Policy

Scope: Value chain (created and implemented to reinforce commitment to fostering a sustainable and responsible value chain)

Key content and principles:

• Promotes responsible sourcing practices
• Engages with suppliers to promote responsible sourcing practices

Global Framework Agreement on social responsibility and sustainable development

Parties: Between Solvay Group and IndustriALL Global Union

Scope: All operations

Key content and principles:

• Adherence to ILO conventions: protecting freedom of association and right to collective bargaining, prohibiting forced labor, child labor, and discrimination
• Commitment to United Nations Global Compact ten principles regarding human rights, labor rights, environmental responsibility, and anti-corruption
• Supporting human rights within Solvay's influence and ensuring no complicity in human rights abuses
• Universal Declaration of Human Rights and UN Guiding Principles on Business and Human Rights

Taking action on material impacts on value chain workers

Overview

Solvay is committed to preventing, mitigating, and remediating material negative impacts on workers throughout the value chain. Actions are managed by the Ethics & Compliance Department (under the Group General Counsel and Corporate Secretary General) and the Procurement Department (under the Chief Procurement Officer reporting to the Chief Operations Officer).

Planned Actions

1. Targeted training sessions for contractors

• Scope: Value chain workers (contractors)
• Timeline: Rollout planned for March 2025
• Resources: Not specified

2. Responsible Value Chain Due Diligence Project

• Objective: Consolidate the Group's Responsible Value Chain Due Diligence Policy with particular focus on Human Rights and other critical topics
• Scope: Own operations and business relationships across the value chain
• Timeline: Measures to be implemented by end of 2025
• Expected outcome: Strengthen prevention or mitigation of potential and real impacts arising from Solvay's operations and value chain business relationships
• Resources: Not specified

Ongoing Compliance Measures

Supplier Code of Business Integrity (SCOBI)

• Mandates compliance from all suppliers
• Sets clear expectations for ethical conduct, labor rights, and workplace safety
• Includes specific contractual clauses requiring adherence to human rights standards
• Prohibits practices that could harm workers in the value chain

Human Rights Assessments

• Conducted across operations and suppliers
• Current status: No significant human rights violations reported within Solvay's operations or suppliers

Supplier ESG Assessment and Screening Program

• Target: 100% of core suppliers covered by third-party ESG assessment
• Additional requirements: Audit conducted in case of low score on human rights; all suppliers in high-risk countries and value chains screened; all suppliers doing business with Solvay in Germany screened
• 2024 performance:
  • 1,345 suppliers assessed by EcoVadis
  • 18 suppliers audited
  • 3,951 suppliers screened
  • 96% of core suppliers assessed by EcoVadis
• Plan: Continuously expand supplier list coverage

Grievance Mechanism (Ethics Helpline)

• Scope: Own operations + upstream + downstream value chain
• Function: Enables reporting of issues, ensures thorough investigation, drives timely resolution
• Process: Corrective actions tailored to specific nature of impact, continuously monitored

Resources Allocated

Financial Resources: Although value chain workers' rights are a top priority, no financial resources have been assigned to the action plan yet. The company cannot connect financial resources with amounts shown in financial statements.

Non-Financial Resources: Dedicated Ethics & Compliance Team with Regional Compliance Officers based in each region where the Group operates, all reporting to the Chief Compliance Officer. Procurement Department structured globally and regionally.

Monitoring and Progress

The progress of past actions has not been monitored as the company expects all suppliers to adhere to Human Rights principles. The recently initiated actions mentioned above have not yet been recorded for progress tracking.

Targets related to value chain workers

Currently, we are still in the process of developing targets externally. We have internal metrics and KPIs to track the effectiveness of our actions and reduce risks.

Internal metrics and KPIs

Additional requirements:

• All suppliers in a high-risk country and value chain shall be screened
• All suppliers doing business with Solvay in Germany shall be screened
• Suppliers with low score on human rights shall be audited

The company plans to expand the supplier list to incorporate more suppliers continuously.

Policies related to affected communities

Solvay has assessed ESRS S3-1 (Policies related to affected communities) as not material.

According to the materiality assessment table, the following disclosure requirements under ESRS S3-1 are marked as "Not material":

• ESRS S3-1 paragraph 16: Human rights policy commitments
• ESRS S3-1 paragraph 17: Non-respect of UNGPs on Business and Human Rights, ILO principles or OECD guidelines

No specific policies related to affected communities are disclosed in the provided excerpts. The company has determined that policies on this topic do not meet the materiality threshold for reporting under the CSRD.

Safety and integrity guide every action we take – it is our common fundamental commitment.

Our new Purpose-driven culture is clearly driving our organization forward. In 2024 we defined our new culture with teams across the globe, with overall almost 3,000 people contributing to our new Culture and Beliefs program, focusing on three core behaviors – focus, ownership, and collaboration.

A key enabler of success is our new culture featuring our core beliefs and behaviors to support change, helping us to put in place good practices that make Solvay more sustainable, resilient, and cost‑competitive. Through these shared behaviors, we will embrace a mindset of continuous improvement and unlock the potential of every project.

Our three Core Beliefs and their associated Behaviors reflect how we act at Solvay, and are critical to our success as an essential company. In shaping our new Solvay identity, we have created a unique, shared Culture that will help us unlock the potential of every project and deliver on our strategy.

Incidents of corruption or bribery

Confirmed incidents

For the 2024 period, Solvay had no convictions for violations of anti-corruption and anti-bribery laws. Additionally, the company incurred no fines related to any such violations. These results reflect the effectiveness of the strong governance framework, including the Anti-Bribery and Anti-Corruption Policy, robust training programs, and the diligent efforts of Ethics & Compliance to uphold the highest ethical standards across global operations.

Of the reports received and investigated in 2024, there was no increase in severity in comparison to the previous year and none of the reported cases were critical to the business or caused adjustments to financial results.

Investigation and speak-up mechanisms

Solvay's commitment to ethical and compliant behavior is materialized through the Speak Up Program, which is overseen by the Audit Committee of the Board of Directors and promotes a culture in which stakeholders are encouraged to report any concerns or potential violations via internal channels or Solvay's grievance system, which is available to both internal and external stakeholders.

The company has established robust mechanisms for identifying, reporting, and investigating concerns regarding unlawful behavior or actions that breach Solvay's Code of Business Integrity, policies, and other internal rules. Each incident is reviewed and, as appropriate, investigated promptly, independently, and objectively, providing a secure and confidential process for employees and stakeholders to report concerns, while ensuring that investigations are handled with appropriate follow-up actions to address any misconduct.

Solvay offers various internal channels through which employees can raise concerns, including line management, Ethics & Compliance, the General Counsel Function, Internal Audit, Human Resources, and employee representatives. In addition, Solvay set up an external third-party helpline, available 24/7 throughout the year, available for employees and external parties to report concerns anonymously if they choose. This helpline operates in 19 languages, covering all of Solvay's locations, and can be found in the Ethics & Compliance section of Solvay's website.

Solvay's Speak Up Policy upholds three key principles: confidentiality, anonymity, and non-retaliation. All individuals are protected from retaliation when reporting breaches of law, policy, or the Code of Business Integrity in good faith, in accordance with the applicable law transposing Directive (EU) 2019/1937.

The management of investigations into potential corruption and bribery falls under the direct responsibility of the Ethics & Compliance Department, which is an independent function within Solvay. This department oversees all aspects of the investigation process, from initial assessment to final resolution, ensuring strict confidentiality and compliance with Solvay's internal policies and legal standards.

High-risk and impact cases involving allegations or incidents of corruption or bribery, particularly those with potential legal or reputational risks, are reported by the Chief Ethics & Compliance Officer to the Business Ethics & Compliance Board and to the Audit Committee of Solvay's Board of Directors.

Grievance system reporting

The total number of complaints filed through Solvay's Ethics Helpline in 2024 is 109, 30 of which reported by third parties, with no cases escalated to the National Contact Points under the OECD Guidelines for Multinational Enterprises. During the reporting period, 30 cases of discrimination and harassment were documented but none related to human rights.

Political influence and lobbying activities

Ethical standards and guidelines

Solvay's Code of Business Integrity addresses topics such as bribery, corruption, facilitation payments, gifts, and entertainment (including in dealings with government officials), conflicts of interest, international trade, fair competition, and political contributions.

The Code of Business Integrity applies to all Solvay employees, across the globe, and to majority-owned joint ventures. The company expects its business partners to operate in compliance with laws and regulations within their operations and adapt to the spirit of Solvay's Code of Business Integrity.

The Executive Leadership Team (ELT) holds the primary responsibility to validate and approve the Code of Business Integrity and the policies that are part of the Ethics & Compliance Program. The Chief Ethics & Compliance Officer is the most senior level in the organization accountable for the implementation of these policies.

Solvay makes its Ethics & Compliance Program, Code of Business Integrity, and policies accessible to all stakeholders via the company's intranet and website. The company conducts orientation training for new employees and annual refreshers. There is provision for reporting any violations through the Speak Up Program, an internal grievance system available to both internal and external stakeholders.

Political contributions

No quantitative data on political contributions is disclosed in the sustainability statements.

Lobbying expenditure

No data on lobbying expenditure is disclosed.

Trade association memberships

No information on trade association memberships, dues paid, or names of relevant trade associations is disclosed.

Focus areas

No specific political engagement focus areas or lobbying topics are disclosed.