Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Occupational Safety
• Social Responsibility

Environmental Achievements

• Reduced resource use and waste volumes in production
• ESMAS program (Environmental Protection and Safety Management Audit Scheme) validated by DQS according to ISO 14001 and OHSAS 18001 standards. 14 production locations ESMAS-certified.
• Second international CEOS conference (Corporate Environmental Protection, Occupational Safety and Security) held to develop uniform understanding and consistent goals for sustainable action.

Social Achievements

• Defined key projects in education, family, and culture, adapted to local requirements and implemented worldwide.
• Launched a program to prevent behavior-related accidents at work in Hamburg.
• Supported the “ArbeitsschutzPartnerschaft Hamburg” (“Partnership for Occupational Safety in Hamburg”) to promote safer workplaces.

Governance Achievements

• New Sustainability Guidelines formally adopted, including economic, ecological, and social responsibility.
• Sustainability Advisory Board (SAB) ensures global coordination of sustainability activities.
• Regular strategy reviews ensure that opportunities and risks are well balanced.

Climate Goals & Targets

Environmental Challenges

• High volatility in raw materials submarkets with substantial price rises in the first half of the year due to increased crude oil prices and growing shortages.
• General economic uncertainty in markets resulting from the global financial crisis.

Mitigation Strategies

• Optimized strategic procurement and systematically enhanced procurement strategies and tools to slow down significant increases in the cost of materials.
• Active treasury management to manage currency, interest rate, and liquidity risks; hedging of 75% of forecasted annual net cash flows.
• Detailed monitoring of customer relationships, active receivables management, and selective use of trade credit insurance to counter risk of bad debts.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI)

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: Ernst & Young AG Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft

Awards & Recognition

• Prize from the Fraunhofer Institute IPT for “Best Practice in Technology Management”

Environmental Metrics

ESG Focus Areas

• Products
• Planet
• People

Environmental Achievements

• Reduced packaging material for NIVEA Body range, saving almost 350 tons of plastic a year.
• 38.3% reduction of direct CO2 emissions per finished product (base year 2005).
• 35% decrease in energy consumption per finished product.
• 32% reduction of water consumption per finished product.
• New Mexican plant built according to LEED standards, resulting in significant reduction of CO2 emissions and water usage.
• Reduced hardware servers in Hamburg data center by over 30%, saving €100,000 annually.
• Recycling of siliconized release paper, saving 160 tons of waste per year.

Social Achievements

• NIVEA reached more than 25,000 children and their families through cooperation with Plan International.
• NIVEA Family Parties Austria raised €272,715 for SOS Children’s Villages.
• Partnership with Plan International in Brazil to improve working conditions for 110 women.
• Hansaplast partnered with the French Red Cross to promote first-aid, donating €1.50 for each special first-aid kit sold.

Governance Achievements

• Executive Board responsible for sustainability strategy execution.
• Corporate Sustainability department oversees company-wide implementation.

Climate Goals & Targets

Environmental Challenges

• Scarcity of resources and increasing consumer and retailer demands for sustainability.
• Broadening the scope of CO2 emissions data collection to include offices, third-party manufacturers, transport, warehousing, company fleet, and business travel.

Mitigation Strategies

• Company-wide implementation of ‘We care’ strategy.
• Life-cycle analysis program to identify and reduce environmental impacts.
• Expanding data coverage for CO2 emissions to optimize internal steering and external reporting.
• Implementing the ‘Total Productive Supply Chain’ (TPSC) Program for resource and process efficiencies.

Supply Chain Management

Responsible Procurement

• Commitment to sustainably sourced palm oil by 2015.
• Binding Code of Conduct for suppliers ensuring compliance with international labor and environmental protection standards.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Sustainable Products & Innovation

• NIVEA Body with reduced packaging.

Awards & Recognition

• Beiersdorf received a Corporate Social Responsibility Award from United Way in 2012.

Environmental Metrics

ESG Focus Areas

• Products
• Planet
• People

Environmental Achievements

• 35% reduction of transport CO2 emissions in Germany and Switzerland
• 34% reduction of total CO2 emissions at global production sites
• 350 tons of plastic saved per year in Nivea Body range
• 36% reduction of waste at production centers per finished product (2005 baseline)
• 31% reduction of water consumption at production centers per finished product (2005 baseline)
• Almost 100% of packaging materials recyclable
• 100% of palm base in raw materials covered by GreenPalm certificates (excluding Beiersdorf Hair Care China)
• 17% reduction of packaging, saving nearly 5 tons of cardboard per year
• 9 tons of cardboard saved annually in Florena range
• 10 tons of cardboard saved annually in Nivea Men Skin Energy range
• Installation of a photovoltaic system in Argentona, Spain, providing almost 10% of the site’s yearly electricity needs and a CO2 reduction of 40.5 tons
• 48% reduction in CO2 emissions at Malang, Indonesia production center by switching from oil to gas boilers

Social Achievements

• Launched 'NIVEA cares for family' initiative supporting 104,868 families
• 58% reduction in working accidents in European production centers (2012 vs. 2013)
• Launched global 'We care.' engagement program
• 3,894 employees from more than 40 countries participated in Nivea Family Days
• 114,594 families supported through social projects in 51 countries
• Eucerin partnered with aGNeS to support families affected by atopic dermatitis, financing over 1,650 counseling sessions
• Nivea partnered with Breakfast Club of Canada, donating CDN$25,000 to provide breakfast for children
• Hansaplast partnered with the Red Cross in France, Netherlands and Canada for first aid training and initiatives

Governance Achievements

• CEO has ultimate responsibility for global sustainability commitment
• Sustainability metrics embedded into core business functions

Climate Goals & Targets

Environmental Challenges

• Difficult macroeconomic conditions
• Heightened environmental concerns
• Social unrest
• Ensuring sustainable palm oil sourcing
• Reducing environmental impact of products while meeting consumer needs

Mitigation Strategies

• Life-cycle analyses to understand products' environmental profiles
• Energy efficiency initiatives in regional supply chains
• Increased use of renewable energy
• Partnerships with RSPO and FONAP for sustainable palm oil
• AIM-PROGRESS membership for responsible sourcing
• Collaboration with NGOs and industry associations

Supply Chain Management

Responsible Procurement

• Sustainable palm oil sourcing
• Responsible purchasing principles

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI 3.1

Environmental Metrics

ESG Focus Areas

• Products
• Planet
• People

Environmental Achievements

• 48% fewer CO2 emissions per product sold (target exceeded)
• 12% of sales from products with significantly reduced environmental impact
• -41% energy consumption in production centers per production unit (base year 2005)
• -37% waste in production centers per production unit (base year 2005)
• -30% water consumption in production centers per production unit (base year 2005)
• Achieved "Zero Landfill" goal at European production sites (except Poland due to legal regulations)
• Conversion of NIVEA Face Care range from glass to plastic jars, reducing greenhouse gas potential by up to 16% (PET) or 28% (PP)
• NIVEA SUN packaging reduction saved over 31 tons of plastic and 275 tons of CO2 emissions from transport
• 100% coverage of palm-based raw materials with GreenPalm certificates

Social Achievements

• Launched Hansaplast’s social platform "Bringing First Aid Home", engaging employees and consumers
• 244,811 families sustainably supported through global social commitment
• 33 "NIVEA cares for family" projects worldwide
• 7 "Bringing First Aid Home" partnerships between Hansaplast and National Red Cross Societies
• 60% reduction in occupational accidents in worldwide production sites (2012 vs 2014)
• Free individual health checks for over 1,000 employees in Hamburg, leading to additional health initiatives
• €300,000 donated to DLRG swimming instructor training program through NIVEA campaigns

Governance Achievements

• Introduced a new sustainability management system with susy software for better data transparency and progress measurement
• Beiersdorf Code of Conduct implemented to guide employee behavior and address ethical issues
• Global employee engagement survey ("TEAMVOICE") with 92% participation rate

Climate Goals & Targets

Environmental Challenges

• Moderate global economic improvement and uncertainties in crisis regions
• Supply chain challenges related to raw materials (palm oil)
• Public controversy surrounding parabens

Mitigation Strategies

• Comprehensive framework for responsible sourcing
• Collaboration with RSPO and FONAP for sustainable palm oil
• Continued use of parabens with provision of paraben-free alternatives
• Life-cycle analyses to identify and mitigate environmental impacts
• Water risk analysis and mitigation measures at production sites

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct defining criteria for ethical behavior
• Audits based on Sedex platform
• Collaboration with AIM-PROGRESS for improved sustainability standards
• Sustainable palm oil sourcing through RSPO and FONAP membership

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Guidelines (Core option)

Certifications: ISO 14001, OHSAS 18001, ISO 50001 (German production sites), LEED Platinum (Silao, Mexico)

Sustainable Products & Innovation

• NIVEA Face Care range with plastic jars
• NIVEA SUN with reduced packaging

Awards & Recognition

• LEED Platinum certification for Silao, Mexico plant
• DGNB Gold certificate for Hamburg kindergarten
• Award from Mutual de Seguridad (Chile) for occupational safety
• "Zero Accident Award" from East Java region and Kabupaten Malang district (Indonesia)

Environmental Metrics

ESG Focus Areas

• Products
• Planet
• People

Environmental Achievements

• Lowered energy-related CO2 emissions per product manufactured by 27%
• Increased the share of renewable energies in power supply to 45%
• Achieved "Zero Waste to Landfill" target ahead of schedule at all established production centers worldwide
• Saved approximately 20t of packaging material by optimizing NIVEA In-Shower packaging
• Switched all NIVEA hairstyling product aerosol cans from a solvent-based to a water-based exterior coating, reducing solvent use by 40-45%

Social Achievements

• Supported 840,695 families through global social engagement since 2013
• Implemented social initiatives in 48 countries
• Provided 31 integration internships for refugees at Hamburg headquarters

Governance Achievements

• Updated Code of Conduct for Employees
• Secured around 90% of procurement volume with suppliers committed to Supplier CoC

Climate Goals & Targets

Environmental Challenges

• Group-wide +4% work-related accidents vs. previous year
• Increased Accident Frequency Rate (AFR) to 2.2 in 2017 in global production network

Mitigation Strategies

• Root-cause analysis and corrective measures for accidents
• Monthly Executive Board reports on occupational safety developments
• Strategic realignment of international production sites to address safety issues in early stages
• Improved communication between Group functions responsible for occupational safety

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct (CoC)

Climate-Related Risks & Opportunities

Physical Risks

• Resource scarcity

Transition Risks

• Opportunity-related risks when seeking to satisfy new upcoming consumer demands

Opportunities

• Development of waterless skin and beauty care products

Reporting Standards

Frameworks Used: GRI G4 Guidelines (core option)

Certifications: ISO 50001 (German production facilities)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Skin care products without polyethylene particles
• NIVEA In-Shower products with optimized packaging
• Aerosol cans with water-based exterior coating

Awards & Recognition

• Chile production site received fourth award for excellent occupational safety management system

Environmental Metrics

ESG Focus Areas

• Products
• Planet
• People
• Carbon Positive Future
• Fully Circular Resources
• Sustainable Land Use
• Regenerative Water Environments
• Employees Along Our Entire Value Chain
• Inclusive Society
• Consumer Health & Well-being

Environmental Achievements

• Reduced energy-related CO2e emissions per product manufactured by 65% versus 2014 baseline
• Switched 100% of electricity consumption globally to renewable energy sources
• 55% of global sales were generated through products with a reduced environmental impact versus the base year 2011

Social Achievements

• Sustainably supported 1.07 million families through global social commitment (since 2013)
• Reduced the “Accident Frequency Rate” from 1.9 to 1.2 at our production sites compared to the previous year
• Best CSR Project 2019 Award for Beiersdorf China

Governance Achievements

• Joined the United Nations Global Compact
• Revised sustainability agenda and began developing new objectives for the period following 2020
• Established the “Sustainability Council” chaired by Executive Committee members responsible for Sustainability and Research and Development

Climate Goals & Targets

Environmental Challenges

• Changing consumer behavior in connection with the current debate on the use of plastic in products and packaging
• Impact of plastic packaging on the environment

Mitigation Strategies

• Commitment to use at least 25% recycled material in plastic packaging in Europe by 2025, while making 100% of global packaging recyclable, reusable or compostable by the same year

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Sedex platform for supplier self-assessment
• SMETA audits

Climate-Related Risks & Opportunities

Physical Risks

• Climate induced resource scarcity for renewable feed stocks caused by natural disaster affecting our supply chain

Transition Risks

• Regulatory risks like carbon pricing that could impact our cost base

Opportunities

• New or increased consumer demands

Reporting Standards

Frameworks Used: GRI Standards (Core option), UN Global Compact

Certifications: ISO 14001, ISO 45001, LEED Gold (Bangkok production site)

Third-party Assurance: Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft (Limited Assurance)

UN Sustainable Development Goals

• 2
• 3
• 4
• 5
• 6
• 7
• 8
• 10
• 12
• 13
• 14
• 15

Initiatives contributing to various SDGs, detailed in the report.

Sustainable Products & Innovation

• Products with reduced environmental impact
• Rinse-off products with biodegradable opacifiers
• NIVEA facial cleansing oil with 25% recycled material
• FLORENA FERMENTED SKINCARE with COSMOS NATURAL certification

Awards & Recognition

• Best CSR Project 2019 Award for Beiersdorf China
• CDP Score A– in Forest category
• CDP Score B in Climate Change Program
• CDP Score B– in Water Disclosure Program
• ISS ESG Prime status
• MSCI ESG Research AA rating
• EcoVadis Silver medal

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Consumer

Environmental Achievements

• 32% reduction of greenhouse gases in Scope 1 and 2 (2020 results affected by the COVID-19 pandemic)
• 10% reduction in Scope 3 (2020 results affected by the COVID-19 pandemic)
• 100% electricity from renewable sources worldwide
• 90% of PET bottles in Europe switched to recycled PET
• Solely used palm (kernel) oil-based raw materials from sustainable sources according to the RSPO Mass Balance Model
• 6% less fossil-based virgin plastic in packaging compared to 2019
• 4% share of recycled material in plastic packaging by December 2020
• 67% reduction of microplastics in NIVEA products (based on raw material volume) compared to 2016
• 25% reduction of microplastics in EUCERIN products (based on raw material volume) compared to 2016
• 7% reduction of non-biodegradable polymers in European product formulations compared to 2018
• 1,200t of CO2 saved in 2020 by converting certain truck routes to rail freight

Social Achievements

• Launched the largest international aid program in the company’s history (€50 million) delivering humanitarian and medical aid in more than 60 countries severely hit by COVID-19
• Supported more than 15 projects to counter the mid- and long-term socioeconomic impacts of the pandemic, focusing on vulnerable groups of girls and young women in Africa, Latin America, and South Asia.
• Launched an extensive glossary explaining over 600 ingredients in NIVEA products

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and supply chains
• Increased water consumption per product manufactured due to new and upgraded water treatment facilities and ramp-up activities in new and expanded factories

Mitigation Strategies

• Implemented stricter hygiene measures and adapted project and plant work planning to ensure sufficient resources to combat the pandemic and avoid bottlenecks
• Developed alternative sourcing strategies
• Initiated partnerships with NGOs to address the socioeconomic effects of the pandemic

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• RSPO Mass Balance Model for palm oil
• FSC certification for paper
• Collaboration with Global Shea Alliance

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI

Certifications: LEED, RSPO, FSC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 6
• Goal 7
• Goal 8
• Goal 10
• Goal 12
• Goal 13
• Goal 14
• Goal 15

Beiersdorf's Sustainability Agenda contributes to 13 of the 17 UN Sustainable Development Goals.

Sustainable Products & Innovation

• NIVEA NATURALLY GOOD series
• NIVEA Fresh Blend Shower Cream
• EUCERIN AtopiControl balm

Awards & Recognition

• CDP Climate A List
• Design MUSE Award
• Sustainability Reader Award 2020 from Packaging Europe
• Platinum rating from the Indian Green Building Council (IGBC)
• Regional Energy Management Award 2020 from the Association of Energy Engineers (AEE)
• A- rating in the Forests focus area by the CDP

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Sustainable Land Use
• Regenerative Water Environments
• Employee Well-being
• Diversity & Inclusion
• Human Rights
• Consumer Health and Wellbeing

Environmental Achievements

• Reduced carbon footprint in absolute terms for the third year in a row, while continuing business growth. Reduced carbon emissions by 12.7% (vs. 2018) by the end of 2021.
• Increased the share of recycled plastics in packaging from 1% to 7% within a year.
• Achieved 100% microplastic-free NIVEA products by the end of 2021.
• Launched climate-neutralized NIVEA shower gel range in Germany.

Social Achievements

• Expanded partnership with Ashoka Social Entrepreneur network into Europe, supporting five female social innovators.
• Initiated ‘Empowering Girls’ mission with CARE and Plan International in Africa and Latin America.
• Launched NIVEA's new social mission, “The Power of Human Touch”, focusing on alleviating loneliness.
• Launched Eucerin's global social mission to promote social inclusion of people with skin diseases.

Governance Achievements

• Developed a new Beiersdorf “Diversity & Inclusion Strategy Roadmap” and KPI dashboard.
• Announced “Beiersdorf Gender Parity Ambition” to achieve 50:50 gender parity in management positions by 2025.
• Implemented “D&I-Inclusive Language Training” to promote diversity and inclusion.

Climate Goals & Targets

Environmental Challenges

• Ensuring skin care performance during reformulation for sustainability.
• Mitigating the color impact of recycled materials.
• Securing the supply of sustainable packaging and raw materials amidst global supply chain disruptions.

Mitigation Strategies

• Intensive cross-functional collaboration and innovation to find solutions.
• Tough decisions to ensure ambitious targets are met.
• Increased investment in sustainable raw materials and technologies.
• Close cooperation with suppliers.

Supply Chain Management

Supplier Audits: Over 90% of suppliers accept Code of Conduct for business partners

Responsible Procurement

• Sustainable sourcing of palm oil, soy, and paper
• Code of Conduct for business partners
• Cooperation with suppliers to switch to renewable energy sources

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, TCFD

Sustainable Products & Innovation

• NIVEA Naturally Good face care range (renewable plastic, natural ingredients)
• NIVEA EcoRefill hand soap (refillable, biodegradable)
• NIVEA MagicBAR solid facial cleanser (vegan, microplastic-free, FSC-certified paper)
• NIVEA ECODEO spray deodorant (Eco-Valve technology, recycled aluminum)

Environmental Metrics

ESG Focus Areas

• Climate protection
• Circular economy
• Sustainable land use and biodiversity
• Sustainable use of water
• Diversity and inclusion
• Education and training
• Employer attractiveness
• Occupational health and safety
• Safeguarding human rights
• Community engagement
• Compliance and business ethics
• Product safety

Environmental Achievements

• Reduced CO2 emissions in NIVEA Soft formula by 40%
• Relaunched NIVEA shower care in lightweight bottles made from at least 96% recycled plastic, reducing packaging-related CO2 emissions by 32%
• Berlin plant achieved virtually climate-neutral operation in terms of Scope 1 and 2 emissions
• Reduced absolute Scope 1 and Scope 2 emissions in the Consumer Business Segment by 31% and at tesa by 27% compared with the 2018 baseline
• Consumer Business Segment reduced its absolute Scope 3 emissions by 16% compared to 2018 baseline
• Received a “Triple A” rating by CDP for climate change, forests, and water security

Social Achievements

• Launched various initiatives to promote diversity & inclusion (D&I), resulting in 3 out of top 5 Beiersdorf strengths identified by employee engagement survey being D&I related and significantly ahead of benchmark
• Actively supported employee-led grassroots communities
• Continued work on gender parity, exceeding targets in several areas
• Implemented various measures to support employee well-being, including mental health initiatives
• Reached 231,798 of the more than 300,000 people targeted with projects to empower girls through COVID-19 aid program

Governance Achievements

• Established a robust compliance management system
• Achieved high compliance training participation rates (97% Consumer, 99% tesa)
• Implemented whistleblowing platform for reporting compliance violations

Climate Goals & Targets

Environmental Challenges

• War in Ukraine, geopolitical upheaval, high inflation, dramatic cost increases, supply chain bottlenecks
• Supply shortages and significant inflation on commodity, packaging, and logistics markets
• COVID-19 pandemic impacts
• Inadequately disposed plastic packaging
• Competition for employees with scientific and technical backgrounds

Mitigation Strategies

• Efficient use of resources and focused advertising campaigns
• Focused, cross-departmental management of supply shortages and preferential position with key suppliers
• Investments in expanding production plants in Poland and Mexico, and new production plant in Leipzig
• Circular economy strategy, including reduction of fossil-based plastics and increased use of recycled materials
• Comprehensive training and development opportunities for employees

Supply Chain Management

Supplier Audits: More than 90% of goods and services procured through partners committed to Code of Conduct (Consumer)

Responsible Procurement

• Code of Conduct for Business Partners (Consumer)
• Code of Conduct for Suppliers (tesa)
• Supplier risk screening and audits

Climate-Related Risks & Opportunities

Physical Risks

• Effects on raw material prices and material availability
• Introduction of new fiscal instruments

Transition Risks

• Regulatory changes, market shifts

Reporting Standards

Frameworks Used: GRI Standards, UNGC

Certifications: ISO 14001, ISO 50001, FSC®

Third-party Assurance: Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft (Limited Assurance)

UN Sustainable Development Goals

• 13 of the 17 SDGs

Sustainable Products & Innovation

• NIVEA Soft (40% less CO2 emissions)
• NIVEA shower gel (32% reduction in packaging-related CO2 emissions)
• NIVEA MEN Climate Care Moisturizer (uses ethanol from recycled CO2)

Awards & Recognition

• CDP Triple A rating

Environmental Metrics

ESG Focus Areas

• Climate protection
• Circular economy
• Sustainable land use and biodiversity
• Sustainable use of water
• Diversity and inclusion
• Education and training
• Employer attractiveness
• Occupational health and safety
• Safeguarding human rights
• Community engagement
• Compliance and business ethics
• Product safety

Environmental Achievements

• Reduced absolute Scope 1 and Scope 2 emissions in the Consumer Business Segment by 40% and at tesa by 38% compared with the 2018 baseline. This led to an overall reduction of absolute Scope 1 and Scope 2 emissions of 39%.
• Reduced absolute Scope 3 emissions by 18% in the Consumer Business Segment compared to 2018.
• Achieved 100% renewable energy sourcing across all tesa and Consumer office and production facilities.
• Leipzig plant is nearly 100% carbon neutral due to renewable energies and biogas.
• Berlin plant is climate neutral due to biomethane use.
• Introduced refill packaging for Eucerin Hyaluron-Fillers, reducing plastic consumption by about 90%.
• Entire Eucerin cosmetics range is microplastic-free.

Social Achievements

• Achieved gender parity across all management levels 18 months ahead of schedule.
• Organized the first global volunteering day, CARE BEYOND SKIN Day, with over 10,000 employees participating.
• Launched "Women in Circularity" initiative, benefiting over 1,600 women.
• Signed the #workingwithcancer pledge, committing to support employees diagnosed with cancer.

Governance Achievements

• Received a Triple A rating from CDP for sustainability for the second year in a row.
• Announced a net zero target, validated by the Science-Based Targets initiative (SBTi).

Climate Goals & Targets

Environmental Challenges

• Geopolitical volatility and macroeconomic uncertainties.
• Difficult external market circumstances in the travel retail business and mainland China for luxury brands.
• Supply bottlenecks, particularly for recycled aluminum.
• Incorrectly disposed plastic packaging.
• Achieving climate neutrality in all production centers by 2030.

Mitigation Strategies

• Investing heavily in global supply chain and digital infrastructure.
• Utilizing 2023 as a transition year to clean up stocks and normalize inventory levels for luxury brands.
• Using low-carbon aluminum produced using renewable energy.
• Implementing circular economy strategy to reduce fossil-based plastics.
• Implementing various measures to reduce energy consumption and increase energy efficiency at production sites.

Supply Chain Management

Supplier Audits: ESMAS audits and SMETA audits conducted at various production facilities.

Responsible Procurement

• Code of Conduct for Business Partners (Consumer)
• Code of Conduct for Suppliers (tesa)
• Supplier risk screening using EcoVadis IQ.

Climate-Related Risks & Opportunities

Physical Risks

• Impact of climate change on the supply chain

Transition Risks

• Effects on raw material prices and material availability
• Introduction of new fiscal instruments

Reporting Standards

Frameworks Used: GRI Standards, UNGC

Certifications: ISO 14001, ISO 50001, ISO 45001, LEED, My Green Lab

Third-party Assurance: EY GmbH & Co. KG Wirtschaftsprüfungsgesellschaft (limited assurance)

UN Sustainable Development Goals

• 13 of the 17 SDGs

Sustainable Products & Innovation

• NIVEA Sun with recycled plastic, Labello with sustainable formulas and packaging, Eucerin with refill packaging, deodorant spray cans with recycled aluminum.

Awards & Recognition

• CDP Triple A rating