Climate Change Data

Environmental Metrics

ESG Focus Areas

• Patient Safety
• Access to Medicines
• Drug Safety
• Counterfeit Drugs
• Ethical Marketing
• Employee Recruitment, Development & Retention
• Supply Chain Management
• Business Ethics
• Energy Management
• Waste Management
• Patient Privacy & Electronic Health Records
• Access for Low-Income Patients
• Quality of Care & Patient Satisfaction
• Management of Controlled Substances
• Employee Health & Safety
• Climate Change Impacts on Human Health & Infrastructure
• Fraud & Unnecessary Procedures

Social Achievements

• Decreased lost time injury frequency rate (LTIRF) at Fresenius Kabi from 2.6 in 2019 to 2.3 in 2020.

Governance Achievements

• Implemented measures to make antibiotic use transparent and safe at Fresenius Helios.

Climate Goals & Targets

Environmental Challenges

• Lack of detailed data on FDA sponsor inspections related to clinical trial management and pharmacovigilance.
• Limited data on waste management.
• Absence of data on hospital-specific indicators like Hospital Value-Based Purchasing Total Performance Score and Hospital-Acquired Condition Score due to lack of US hospital operations.

Mitigation Strategies

• Fresenius plans to improve reporting and transparency on clinical trials, supply chain management, and waste management in future reports.
• Fresenius is assessing the impacts of climate change on its operating business and will provide updates in future non-financial reporting.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Environmental Metrics

ESG Focus Areas

• Quality
• Employees
• Innovation
• Compliance
• Environment

Environmental Achievements

• Set a climate target for the Group to be climate neutral by 2040 and to reduce 50% of absolute scope 1 and scope 2 emissions by 2030 compared to 2020 levels.

Social Achievements

• Continued to provide high-quality and affordable healthcare during the COVID-19 pandemic, treating over 42,000 COVID-19 patients and vaccinating over one million people.
• Increased the proportion of female employees to 69%.

Governance Achievements

• Launched the FME25 transformation program at Fresenius Medical Care to simplify the corporate structure and reduce annual costs by €500 million by 2025.
• Fresenius Kabi launched Vision 2026, a strategic plan to transform the company for the next decade.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic negatively impacted sales and earnings, particularly at Fresenius Medical Care due to increased mortality among dialysis patients.
• Supply chain disruptions and cost inflation.
• Travel restrictions and client hesitation impacted Fresenius Vamed's project business.

Mitigation Strategies

• Implemented measures to maintain workforce, protect patients and employees, and cover expenses related to COVID-19.
• Initiated a cost and efficiency program, exceeding initial savings targets.
• Developed a special post-COVID rehabilitation program at Fresenius Vamed.

Supply Chain Management

Responsible Procurement

• Centrally coordinated procurement processes to ensure safety and quality of materials.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, German Corporate Governance Code

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft

Awards & Recognition

• Fresenius investor relations team recognized as the best in the MedTech & Services sector in Europe (2021 All-Europe Executive Team Survey)
• Special prize for best digital communication in the DAX (Investors’ Darling initiative from Manager Magazin)

Environmental Metrics

ESG Focus Areas

• Climate change
• Employee well-being
• Diversity and equal opportunities
• Compliance and Integrity
• Supply chain
• Human rights

Environmental Achievements

• Included in the Dow Jones Sustainability Index (DJSI Europe) in December 2022
• Set a climate target to be climate-neutral by 2040 and reduce 50% of absolute Scope 1 and Scope 2 emissions by 2030 compared to 2020 levels.

Social Achievements

• Treated more than 24 million patients in clinics and accompanied more than 84,000 births.
• Produced over a billion infusion solutions and launched around 90 cost-effective IV generic drugs worldwide.
• Performed more than 52 million life-preserving dialysis treatments and manufactured over 42,000 dialysis machines.
• Rendered technical services to almost 1,000 healthcare facilities.
• Conducted an employee survey on employee identification and loyalty to the employer.

Governance Achievements

• Issued a declaration of conformity with the German Corporate Governance Code.
• Fresenius IR team recognized as the best IR team among the “Medical Technologies & Services” sector by the Europe-wide “Institutional Investor Survey”.

Climate Goals & Targets

Environmental Challenges

• Difficult macroeconomic environment including increased uncertainties, inflation-related cost increases, staff shortages, supply chain disruptions, the continued impact of the COVID-19 pandemic, and increased energy costs.
• War in Ukraine negatively impacted inflationary pressures on the global economy.
• Shortage of specialists and problems in filling nursing vacancies.

Mitigation Strategies

• Launched #FutureFresenius initiative with a focus on strengthening return focus, driving structural productivity, and creating change momentum.
• Increased annual savings target by approximately one billion euros as of 2025.
• Identified businesses to divest from to sharpen focus and strengthen balance sheet.
• Implemented cost and efficiency program realizing €152 million in savings after taxes and non-controlling interests in fiscal year 2022.
• Fresenius Medical Care accelerated and extended its FME25 transformation program.
• Fresenius Digital Technology entered a strategic partnership with Capgemini to streamline IT services.

Supply Chain Management

Responsible Procurement

• Strict quality standards for suppliers
• Structured qualification process comprising audits, document and advance sample inspections, and regular quality controls of deliveries.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, EU Taxonomy

Certifications: ISO 9001, ISO 13485

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 8

Align sustainable actions closely to the United Nations Global Compact and the sustainability requirements of the capital market.

Awards & Recognition

• Best IR team among the “Medical Technologies & Services” sector by the Europe-wide “Institutional Investor Survey”
• Best Investor Relations prize and Best Digital Communications prize in Manager Magazin’s “Investors’ Darling” initiative
• First place in NetFed benchmark analysis

Environmental Metrics

ESG Focus Areas

• Climate change
• Medical quality/patient satisfaction
• Employee well-being
• Diversity and equal opportunities
• Compliance and Integrity
• Human Rights

Environmental Achievements

• Reduced Scope 1 and Scope 2 emissions by 22 percent from the 2020 level.

Social Achievements

• Newsweek magazine voted five Quirónsalud clinics among the world’s best specialized hospitals.
• Wirtschaftswoche business magazine named Fresenius Helios the top healthcare provider in Germany in the “Regional clinic/hospital groups” category.
• Launched Fresubin® PLANT-BASED Drink, a vegan alternative to clinical nutrition.

Governance Achievements

• Completed the deconsolidation of Fresenius Medical Care.
• Established Fresenius Financial Framework with focus on returns and clearly defined EBIT margin bands.

Climate Goals & Targets

Environmental Challenges

• Increased uncertainties, inflation-related cost increases, staff shortages, and increased energy costs.
• Shortage of specialist staff and problems filling vacancies in the nursing care sector.
• Negative earnings development at Fresenius Vamed.
• Geopolitical tensions and potential impact of increased volatility and reduced visibility on its business and balance sheet.

Mitigation Strategies

• Implemented a cost and efficiency program with a target of €400 million in cost savings by 2025 (previously €350 million).
• Initiated a comprehensive transformation of Fresenius Vamed’s organization and restructuring program to increase profitability.
• Targeted divestments to sharpen portfolio focus.
• Close monitoring of potential impact of increased volatility and reduced visibility.

Supply Chain Management

Responsible Procurement

• Central coordination offices in business segments, framework agreements, monitoring of market and price trends, quality and safety checks.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, SASB

Certifications: ISO 9001, ISO 13485

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 9: Industry, Innovation and Infrastructure
• Goal 13: Climate Action

Fresenius' initiatives contribute to these goals through its products and services, investments in innovation and infrastructure, and commitment to climate neutrality.

Sustainable Products & Innovation

• Fresubin® PLANT-BASED Drink

Awards & Recognition

• Investor Relations Darling competition (3rd place overall and special award in Investor Relations category)