Resource Use and Circular Economy (E5)

Our material impacts, risks and opportunities related to resource use and the circular economy (E5 SBM-3)

We conducted a materiality assessment according to ESRS 2 by analyzing our value chain and the respective impacts, risks, and opportunities. These IROs were assessed accordingly. As a result, we identified three negative impacts, one positive impact, and two risks for the topic of resource use and circular economy. The description of the management of impacts risks and opportunities can be found under ESRS 2 IRO-1. Our disclosure focuses on the following impacts and risks:

Our policies relating to resource use and the circular economy (E5-1)

The policies related to resource use and the circular economy are regularly monitored and updated. According to our Supplier Code of Conduct, suppliers must demonstrate that they deal with resource use and circular economy principles – for example by reusing products and materials such as packaging and/or developing and introducing recyclable products (e.g., via the cradle-to-cradle approach). They must also have systems and processes in place to manage and control the storage, recycling, reuse, or disposal of waste. In particular, hazardous waste must be adequately managed, controlled and treated prior to release into the environment.

Against the backdrop of our Design for Sustainability (DfS) policy, we have set ourselves the target of reducing the negative impact of products throughout their entire life cycle. To support our development units in dealing with negative product-related factors, we have introduced scorecards for sustainable design in all our business areas (see also the information on the Umbrella initiative below in “Our actions” section). Our scorecards are developed as part of annual reviews.

We are also helping to achieve waste targets and promote circular solutions with our SMASH Packaging program. For example, we are working to reduce the amount of packaging (SHRINK), achieve zero-deforestation (SECURE), improve plastic sustainability (SWITCH), and maximize recycling (SAVE).

Our actions and resources related to resource use and the circular economy (E5-2)

Actions are being implemented in all our business sectors to optimize the use of resources and promote recycling management. The sustainability assessments are implemented across all business sectors using a sustainability scorecard. Our Green Speed tool is also available to all business sectors. In our Life Science business sector, we are implementing our SMASH Packaging program, and in our Healthcare business sector, we are implementing our sustainable packaging program. In our Electronics business sector, we are implementing the following measures: solvent recycling in the organic light-emitting diodes (OLEDs) production, and optimized specialty gases.

Sustainable product development under one umbrella

As part of the Umbrella initiative, we bundle specific scorecards for each of our three business sectors that assess sustainable design as early as product development and that contain measurable criteria for the entire product life cycle of our global portfolio. Our objective is to steer our portfolio in the area of research and development (R&D) and develop more sustainable products and innovations, as well as minimize the detrimental impacts of production, usage, and disposal. The R&D sustainability assessments are performed in all three business sectors and include various sustainability matters throughout the value chain. In terms of circular economy, the key focus is on waste treatment and reduction, along with minimizing material usage in products and services. While the specific scorecard questions vary for each business sector, we consistently evaluate the potential of alternative methods for reducing production waste. We aim to further integrate crucial aspects of circular economy and dematerialization in the years ahead, with an emphasis on easing the burden on the environment by using materials more efficiently. This can improve the overall results on the scorecards. The sector sustainability unit, including R&D, product management, environmental, health and safety (EHS), quality, production, procurement, and marketing, are stakeholders in this endeavor. In the Electronics business sector, the scorecard helps us to identify strengths and areas for improvement in our development projects. In the reporting year, we carried out the sustainability assessment for more than 99% of all R&D initiatives, including all newly launched projects. In this context, we also introduced a semi-annual quality review in the reporting year, which gives our process additional precision. This comprehensive sustainability assessment creates transparency regarding the sustainability aspects of our innovation portfolio. The Umbrella initiative is anticipated to continue over the long-term.

Tool for the evaluation of chemical products

We want to make research and production as environmentally friendly as possible and have therefore developed our innovative GreenSpeed tool. This innovative tool allows us to automatically evaluate the sustainability of our chemical products during manufacturing, facilitating efficient and eco-friendly production methods. It tracks crucial metrics such as water usage, solvent consumption, energy expenditure, and greenhouse gas emissions, with the greenhouse gas emissions estimate derived from process mass intensity (PMI), or the total resources utilized to produce one kilogram of the final product.

The affected stakeholder groups of GreenSpeed include employees, customers, suppliers, and investors. We are in the process of enhancing the tool by adding modules to account for the impacts of specific production waste. In the next three to five years, we aim to make GreenSpeed available for the purpose of testing to other user groups inside and outside the company. We aim to launch a pilot project to implement GreenSpeed assessments within the Umbrella initiative, which should lead to a more reliable quantification of the environmental impact at an early stage of the R&D process. The assessment of chemical products using our GreenSpeed tool is anticipated to continue over the long-term.

Life Science: Sustainable packaging

Through our SMASH Packaging program in Life Sciences, we strive to enhance packaging sustainability, optimize resource efficiency, and promote circularity. SMASH Packaging is built on four key pillars: SHRINK, SECURE, SWITCH, and SAVE. Our goal is to achieve the following:

•   SHRINK (Reduce the amount of packaging): We aim to reduce the packaging weight per sales unit by 10% by 2030. We are therefore concentrating on reducing the amount of corrugated cardboard, wood, glass and/or plastic packaging materials by replacing them with lighter or reused materials, or removing excess materials dunnage, etc.
• SECURE (Achieve zero deforestation): We aim for 100% of our fiber-based packaging to use deforestation-free packaging. We are therefore transitioning all packaging materials made from wood/paper fiber to recycled materials or materials obtained from certified or verified deforestation-free sources.
• SWITCH (improve plastic sustainability) and SAVE (maximize recycling): We aim to design packaging that is 100% in line with our principals of circular product development. That is why we are focusing on: increasing the recyclability and the amount of recycled content in packaging materials, as well as providing material labeling and/or disposal guidance to facilitate recycling or responsible disposal.

2030 is the time horizon for our SMASH Packaging actions and resources. The affected stakeholders include our Sustainability and Social Business Innovation unit, packaging engineers, and the Procurement, Quality, R&D, and Product Management units.

Healthcare: sustainable packaging

With the help of the MPact initiative, we are working on packaging solutions to reduce our overall environmental impact. The three main objectives are to reduce greenhouse gas (GHG) emissions; to reduce the use of packaging materials while increasing the recycling rate of packaging; and to examine the extent to which secondary and tertiary packaging made of plastic can be replaced by 2030. In preparation for the European Packaging and Packaging Waste Regulation (PPWR), we are analyzing its requirements to ensure appropriate alignment and compliance in the coming years.

In 2024, we focused on: (1) creating an understanding of the available levers and the regulatory landscape beyond the EU regulation on packaging waste; (2) creating a framework for sustainability that goes beyond CO₂; and (3) defining a common target, roadmap and global guidelines to enable a coordinated approach by the operational packaging units. MPact is designed to help achieve our 70% circularity target by 2030 and reduce the risk from materials of concern (or potential concern) and to reduce greenhouse gas emissions. The actions will be implemented over the next five to ten years and apply to the Healthcare business sector.

Healthcare: fertility pen take-back program

In 2024, our Healthcare business sector has continued working in a consortium for the Returpen fertility pen take-back pilot project in Denmark. The project is an important building block in our ambition to make our Fertility portfolio more sustainable – from manufacturing to our patients. The project was started in Denmark in 2023 with the aim of achieving a return rate of 25% of injection pens. This gives patients the opportunity to return used fertility injection pens to fertility clinics so that they can be recycled. Together with the consortium partners, we have signed a letter of intent to work together on the recycling of plastic, glass and metal components. The aim is to recycle 75% of the injection pens returned as part of the pilot projects. Our take-back pilot program is anticipated to continue over the long-term.

Electronics: optimized specialty gases

For our broad portfolio of specialty gases - which includes etching, cleaning, deposition, and dopant gases - we are looking for material solutions with optimized etching performance and low global warming potential (GWP). For specific customer applications, we implement actions to reduce greenhouse gases, optimize the use phase and dispose of products and packaging responsibly. By doing so, we want to contribute to reducing our customers' scope 1 emissions. Our actions apply worldwide to our customers and partners in our semiconductor value chain. The “optimized specialty gases” action is anticipated to continue over the long-term.

In 2024, no significant operating expenditures (OpEx) were allocated to the “Optimized specialty gases”. However, we allocated € 6 million of capital expenditures (CapEx) which are included in the respective lines of the balance sheet. For 2025, we do not intend to allocate any significant OpEx or CapEx.

Electronics: solvent recycling in our OLED production

One example of circularity in our production processes and along our value chain is the optimization of the production of organic light-emitting diodes (OLED) at our site in Darmstadt, Germany. The aim of this project is to help reduce CO₂ emissions and improve resource efficiency by recycling solvents even more effectively, reprocessing materials internally and enabling our customers to return old products. Therefore, we are striving to make greater use of digital technologies to further improve our processes. Our solvent recycling initiative in OLED production is anticipated to continue over the long-term.

In 2024, except of “Optimized specialty gases“, no significant operating expenditures (OpEx) or capital expenditures (CapEx) were allocated to the above mentioned actions in relation to resource use and the circular economy. For 2025, we also do not intend to allocate any significant OpEx or CapEx.

Our targets in relation to resource use and the circular economy (E5-3)

Our waste target for 2030 is to further reduce our own production-related waste or direct it towards material recovery. In addition, we have set further, non-quantifiable goals with the intention of continuously improving and advancing our sustainability measures. These goals are meant to express our commitment to establish a positive impact or reducing a negative impact in terms of resource use and the circular economy. With all of our targets and actions mentioned herein, we contribute to selected UN Sustainability Development Goals (SDGs). In our overarching sustainability strategy, the SDGs 9, 12 and 17 are highlighted under the focus area “Water and resource intensity”.

We report the circularity rate under E5 and ESRS 2 (SBM-1) as it is one of our strategic sustainability key indicators used to measure our circular waste practices and meet our related target.

Our waste target for 2030 requires the reuse and material recycling of waste, which can then be reused as non-virgin materials. The avoidance of waste is tracked through the reduced use of raw materials and contributes to our ambitions. In addition, recycling of waste for reuse reduces the use of virgin materials. We adhere to the waste hierarchy for our waste treatment options. The term waste hierarchy refers to a framework that prioritizes waste management strategies according to their environmental impact. We follow the order below:

• Prevention: Reducing waste generation at the source.
• Minimization: Reducing the amount of waste produced.
• Reuse: Finding ways to use items more than once before disposal.
• Recycling: Processing waste materials to create new products.
• Recovery: Extracting energy or material from waste.
• Disposal: Safely disposing of waste that cannot be managed through the above methods.

This means prioritizing treatment options that are higher up the waste hierarchy. Our top priority is the prevention of waste. This hierarchy guides our sustainability efforts and emphasizes the importance of minimizing waste and maximizing resource efficiency. Our Waste Goal 2030 relates to prevention, reuse, and recycling.

Life Science: sustainable packaging

As part of SMASH Packaging in our Life Science business sector, we continue to make progress on our targets for more sustainable packaging. We are striving to reduce packaging weight by a total of 6,300 metric tons (SHRINK) by 2030. In the reference year 2020, the packaging weight was around 63,000 metric tons. In 2024, we implemented packaging improvements that save over 396 metric tons of packaging material annually. To stop deforestation (SECURE), we aim to use up to 100% deforestation-free fiber-based packaging by 2030. In the reference year 2020, 66% of our fiber-based packaging was produced in a deforestation-free manner. In 2024, 81.6% of fiber-based packaging was deforestation-free. By using packaging that is either recyclable or reusable or contains recycled materials (SWITCH & SAVE), we aim to develop 100% of our product packaging in line with our packaging circularity principles by 2030. In the reference year 2020, 49% of our product packaging met these principles. In 2024, 46.4% of product packaging aligned with our packaging circularity principles.

Reducing the weight of direct and shipment packaging includes reducing the amount of corrugated cardboard, wood, glass, and/or plastic packaging materials, for example, by reducing weight, substituting materials, reusing or removing excess filler material. We are converting all wood fiber packaging materials to recycled, certified or verified deforestation-free sources. The circular design principles of SMASH are also embedded into our DfS framework, which considers environmental impacts at every stage of the product life cycle during product development. Circular packaging is packaging that is either recyclable or reusable or contains recycled materials. This target is measured by dividing the total amount of circular packaging in metric kilotons by the total amount of packaging in metric kilotons. 2024 progress on the SHRINK and SECURE targets were on track as expected. 2024 progress on our SWITCH & SAVE target was below expectations compared to the 2020 baseline due to limited availability of data.

We measure our progress on the SHRINK, SECURE, SWITCH & SAVE targets based on the weight of materials avoided or converted annually. We additionally measure progress based on the weight of CO₂ equivalents (CO₂eq) avoided. All projects are reviewed individually and regularly after milestones are reached or following completion. In doing so, environmental impacts are measured and converted into CO₂eq. We monitor progress against these targets semi-annually and report annually to the leader of the Sustainability and Social Business Innovation unit in Life Science. These targets are set based on conclusive scientific evidence. Key functions in all areas of the company are committed to the overarching goal of reducing our ecological footprint by aiming to achieve climate neutrality by 2040 and decreasing our resource consumption. Key stakeholders involved in this target include Life Science R&D, Packaging Engineers, Product Management, Quality & Regulatory, Environment, Health, and Safety (EHS) and Procurement units. SHRINK relates to the first level of the waste hierarchy, i.e. prevention. SWITCH & SAVE relates to the following waste hierarchy treatment options including prevention, reuse and recycling. The scope and scale of this target have been set on a voluntary basis and are not legally required.

Life Science: sustainability in product development

In the Life Science business sector, in the beginning of 2024 we set the target for 95% of product development projects to have an active DfS scorecard by the end of 2024. As of the first quarter of 2023, 78% of the product development projects had an active DfS scorecard. By the end of 2024, 99.7% of product development projects had an active DfS scorecard.

We implement DfS scorecards in the product development process across the entire product life cycle with the aim of integrating and considering key impact areas, including circular economy and dematerialization. This target is measured based on product development projects with an active DfS scorecard divided by the total number of product development projects. Progress on this target is measured and reviewed annually and the target for the following year is set. “Product development project” refers to the individual, internal process through which new products can be added to our Life Science portfolio. Our progress towards this target exceeded our expectations in the reporting year 2024. This target is set based on conclusive scientific evidence.

Key functions in all areas of the company are committed to the overarching goal of reducing our ecological footprint by aiming to achieve climate neutrality by 2040 and decreasing our resource consumption. Key stakeholders involved in this DfS scorecard target include Life Science R&D, Packaging Engineers, Product Management, Quality & Regulatory, Environment, Health, and Safety (EHS) and Procurement units. The individual Life Science business areas and franchises receive quarterly updates on their individual area’s targets. Life Science reports quarterly updates to the Group Corporate Sustainability unit to contribute to the Group-wide Umbrella initiative. Our Design for Sustainability ambition relates to multiple layers of the waste hierarchy, including prevention, reuse and recycling.

Life Science: data quality in our sustainability scorecard

At the beginning of 2024, our Life Science business sector set the goal that 95% of our product development projects will have a DfS scorecard by the end of 2024. As of the first quarter of 2024, the data quality was assessed at 50%. By the end of 2024, the data quality of DfS scorecards was 97.4%.

We implement DfS scorecards in the product development process across the entire product life cycle with the aim of integrating and considering key impact areas, including circular economy and dematerialization. This target is measured by the number of product development projects that meet the data quality requirements divided by the total number of product development projects. Progress on this target is measured and reviewed annually and the target for the following year is set. “Product development project” refers to the individual, internal process through which new products can be added to our Life Science portfolio.

Our progress towards this target exceeded our expectations in the reporting year 2024. This target is set based on conclusive scientific evidence. Key functions in all areas of the company are committed to the overarching goal of reducing our ecological footprint by aiming to achieve climate neutrality by 2040 and decreasing our resource consumption. Key stakeholders involved in this target include Life Science R&D, Packaging Engineers, Product Management, Quality & Regulatory, Environment, Health, and Safety (EHS) and Procurement units. The individual Life Science business areas and franchises receive quarterly updates on their individual area’s targets. Life Science reports quarterly updates to the Group Corporate Sustainability unit to contribute to the Group-wide Umbrella initiative. The scope and magnitude of this goal have been set on a voluntary basis and are not required by legislation.

Life Science: more sustainable products

In our Life Science business sector, we will develop 10,000 more sustainable products with the help of the DfS scorecard by the end of 2030. In 2022, we started with 19 product alternatives developed with the DfS scorecard. In the reporting year 2024, 880 more sustainable products were developed using DfS scorecards.

We implement DfS scorecards in the product development process across the entire product life cycle with the aim of integrating and considering key impact areas, including circular economy and dematerialization. Products with significant sustainability characteristics are labeled as “Greener Alternative Products” in our portfolio. Progress on this target is measured and reviewed annually. Our progress towards this target exceeded our expectations in the reporting year 2024. This target is set based on conclusive scientific evidence.

Key functions in all areas of the company are committed to the overarching goal of reducing our ecological footprint by aiming to achieve climate neutrality by 2040 and decreasing our resource consumption. Key stakeholders involved in this DfS scorecard target include units of Life Science R&D, Packaging Engineers, Product Management, Quality & Regulatory, Environment, Health, and Safety (EHS) and Procurement. Individual Life Science divisions receive quarterly updates on their individual targets. Life Science reports quarterly updates to the Group Corporate Sustainability unit to contribute to the Group-wide Umbrella initiative.

The Design for Sustainability ambition relates to the first layer of the waste hierarchy, i.e. prevention. The scope and magnitude of this target have been set on a voluntary basis and are not required by legislation.

Our resource inflows (E5-4)

Metrics related to resource inflows

Overall total weight of products and materials used to manufacture products and services

Our assessment is based on the total weight of products in metric tons used to manufacture the products during the reporting period. We do not use approximations or assumptions for this metric. Our procured materials and products (including packaging materials) are used at the respective sites, depending on the sector and production process. The procured materials and products are subdivided into subgroups such as raw materials, biologics and chemicals. In our Life Science and Healthcare business, biologics include, for example, enzymes, proteins, peptides, oligonucleotides, and culture media. We do not procure any materials for our Electronics business listed under the procurement category of biologics.

Chemicals includes, for example:

• organic basics and solvents such as ethanol, toluene and acetone
• organic fine chemicals such as phosphorus, boron and sulfur components
• inorganic basics such as caustics NaOH, salts (e.g., sodium and potassium) and bromine
• inorganic fine chemicals such as precious metals (silver, gold, Pd, Rh, Ru, Os, Ir, Pt and compounds)
• critical raw materials such as tungsten powder, titanium, lithium, and aluminum (definition based on the European list of critical raw materials 2023)

In our Life Sciences and Healthcare business sectors, raw materials include, for example, antibiotics, amino acids, analgesics, vitamins, emulsifiers and surfactants, starches and sugars, lactoses and celluloses.

Packaging materials can be broadly categorized into glass, metal, plastic, paper and timber packaging. The packaging materials and supplies in our Healthcare business include, for example, films to produce blisters, plastic trays and folding boxes made of cardboard. The packaging materials in our Life Science and Electronics business include, for example:

• glass packaging such as tubing for ampoules, syringes and vials
• printed paper packaging such as corrugated board, folding boxes for ampoules and micro-flutes
• metal packaging such as cans, caps, seals, and stainless-steel containers
• plastic packaging such as stretch or shrink films, foam parts, plastic bulk containers and big bags
• composite packaging such as fiber drums

The complete data of the resource inflows is based on invoicing data.

Percentage of biological materials used for the sustainable production of products and sustainably sourced within products, packaging, and services

The assessment is based on the percentage of biological materials used to manufacture the company’s products and services that come from sustainable sources. We calculate the fluctuation rate as follows: (biological materials used to manufacture the company’s products and services that is sustainably sourced)/(overall total weight of materials used during the reporting period) x 100.

We use an approximation for this indicator. In our purchasing process, we distinguish between material categories, but there is currently no label for specific material types (e.g., biological). Consequently, only an approximation based on industrial and internal resources is made today.

We do not maintain a specific certification scheme to confirm the sustainable sourcing of biological materials. Our suppliers must adhere to our Supplier Code of Conduct, which emphasizes ethical behavior, labor rights, and environmental responsibility. We include a corporate responsibility clause in procurement contracts to support these principles and encourage supplier participation in training offered by the Together for Sustainability Academy, which focuses on sustainability best practices. We regularly assess suppliers to gauge their progress in sustainability initiatives and promote continuous improvement. Additionally, to optimize resource efficiency, we apply the cascade principle in material usage, ensuring that materials are processed for maximum value, reused, or recycled, and utilized for energy only at the end of their life cycle. We also take this principle into account with our avoidance activities within our production facilities by applying the hierarchy of the circular economy law.

Weight in absolute value of secondary reused or recycled components, secondary intermediary products and secondary materials used to manufacture the company’s products and services (including packaging)

The assessment is based on the weight in absolute value of secondary reused products used to manufacture the company’s products (including packaging). We do not use approximations or assumptions for this indicator.

Weight in percentage of secondary reused or recycled components, secondary intermediary products and secondary materials used to manufacture the company’s products and services (including packaging)

The assessment is based on the percentage of secondary reused or recycled components, secondary intermediary products and secondary materials used to manufacture the company’s products and services (including packaging). We calculate the fluctuation rate as follows: (secondary reused or recycled components, secondary intermediary products and secondary materials used to manufacture the company’s products and services (including packaging))/(overall total weight of materials used during the reporting period) x 100. We use an approximation for this indicator. In our purchasing process, we distinguish between material categories, but there is currently no label for specific material types (e.g., recycled). Consequently, only an approximation based on industrial and internal resources is made today. The measurement of resource inflows metric has not been validated separately by an external body.

Our resource outflows (E5-5)

We are enhancing our commitment to integrating circular mechanisms in the development and production of key products while encouraging our suppliers to adopt similar practices. This approach aims to improve resource efficiency, and material recovery while creating sustainable supply chains.

Key products that bring us closer to a circular economy:

• Our packaging solutions for specialty gases, thin films, and select patterning products from Semiconductor Materials are intentionally crafted for repeated use. Reusable packaging types include a range of cylinder sizes and tube trailers for bulk specialty gases, smaller stainless steel and quartz containers for thin films, and high-density polyethylene totes and drums for patterning. Once Electronics customers have emptied the containers, they are sent back to our facility for thorough cleaning, refurbishment, and refilling. This approach effectively minimizes container waste, reduces the need for new production, and lowers the related resource consumption.
• OLED materials – Optimization of production across the value chain demonstrates our commitment to circularity in Electronics. By improving our solvent recycling, reprocessing materials internally, and facilitating the return of end-of-life products from our customers, we can reduce the product carbon footprint of these materials.
• The production sites of our Healthcare business sector have continued their zero-landfill initiative initiated in 2023, aiming to eliminate the direct disposal of production waste in landfills. Emphasis has been placed on waste avoidance strategies, such as reusing pallets and implementing deblistering to prevent non-circular disposal of tablets. Waste segregation has also been enhanced to improve recycling efforts compared to non-circular disposal routes. We collaborate with other pharmaceutical companies in the fertility pen take-back program. Additionally, Healthcare’s MPact program focuses on promoting packaging circularity (see E5-5 for more information on “metrics related to recyclable content in packaging”), while efforts continue toward developing guidelines and establishing priorities. Key projects in recent years include reducing the grammage of certain cardboard packaging and downsizing packaging formats (e.g., Slim Pack).
• Bio-based solvents portfolio – Switching from petroleum-based solvents to bio-based solvents helps our Life Science customers reduce their carbon footprint. We will continue to add new bio-based solvents to our portfolio in 2025 – not only for our customers but also for our own applications in manufacturing. In 2024, our diverse portfolio of bio-based solvents helped our Life Science customers avoid over 47 metric tons of CO₂eq.
• Increasing recyclability of packaging materials – Wherever possible, our Life Science business is replacing expanded polystyrene (EPS) with molded components made of cellulose and recycled paper pulp. While EPS provides high insulation and cushioning for products, it is a petroleum-based material that takes hundreds of years to naturally decompose. As options for recycling EPS are limited, it is typically incinerated or sent to landfill. Our molded pulp components can be easily recycled with other paper materials and compacted together for storage and transport. We use molded pulp inserts to pack a variety of liter bottle configurations in shipping boxes. In 2024, our Life Science business avoided the use of over 3.1 million EPS inserts globally.

The assessment of recyclability or the recyclable content is applied to our entire portfolio. The products were categorized into groups. The recyclable portion of these product groups was quantified and weighted based on their respective sales share and then added up. The contribution of each individual product group to the sum parameter of the recyclable portion is thus based on sales.

Metrics related to recyclable content in packaging

97.7% represents the proportion of recyclable content in packaging in the actual year 2024. We do not manufacture our own packaging but only purchase it. The recyclable portion of all our packaging is determined based on the procurement data. The quantification is based on mass. The recyclable content is defined based on the technical feasibility of the recycling process. Recycling carried out by the customer and the final recycling rates are not quantified or considered here. The measurement of recyclable content in packaging metric has not been validated separately by an external body.

Metrics related to resource outflows – waste

Our Waste Management Standard regulates the key principles for effective and sustainable waste management, emphasizing the need to identify opportunities to minimize waste and maximize the use of recyclable and reusable materials wherever possible. Action plans are adopted to describe the possibilities and actions needed for example to regulate materials until they are confirmed as waste or materials that are diverted from the disposal operations. Processes that aim to recover materials or energy from waste, beyond traditional recycling, are of growing importance.

Within these processes, we:

• collect and aggregate relevant waste disposal data
• document waste disposal transactions with external service providers
• categorize waste as hazardous or non-hazardous in accordance with the Waste Management Standard
• control and verify waste data by a designated individual (e.g., EHS manager)
• enter these data into a database. The decentralized requirements stipulate the collection and reporting of data as per central guidelines, ensuring accuracy and validity through controls while adhering to a central timeline for reporting data.

For the quantitative waste indicator “Preparation for reuse”, we report 0 metric tons for the reporting year. This is due to the fact that we document all products and materials that are prepared for reuse under avoidance. Since these materials never reach waste status, they do not contribute to the total waste volume. The quantities are assessed quarterly and documented in our systems.

The documentation of waste streams and their classification is carried out on the basis of predefined waste categories. In addition to the distinction between hazardous and non-hazardous waste, more detailed information on the type of waste is recorded and waste categories such as electronic waste, waste from wastewater treatment plants or organic solvents are tracked individually. Among the waste to be disposed of, the following waste categories are significant for the company's value-adding activities:

• waste from production (excluding solvents, as these are listed in a separate category): Examples are used chemicals such as acids, bases or biohazardous waste
• waste from wastewater treatment plants (e.g., different types of sludges from effluent treatment or wastewater that is disposed of as waste)

Among the waste that is not to be disposed of, the following waste categories are significant for the company's value-adding activities:

• organic non-halogenated solvents (Halogen <5%): Our broad product portfolio and diverse manufacturing methods result in the creation of various types of solvent waste, primarily arising from synthesis-, purification-, cleaning- and distillation activities. These solvents and solvent mixtures include acetone, heptane and toluene, as well as other organic solvents.
• ⁠non-hazardous paper and cardboard waste
• ⁠non-hazardous household and similar waste (e.g., waste from office spaces and canteens, waste to be composted).
• non-hazardous plastic waste

We do not use approximations or assumptions for waste diverted from disposal or waste directed to disposal for various disposal operations. The data collected is based on production data and the quantities reported by the respective disposal companies. The measurement of resource waste metric has not been validated separately by an external body.

Metrics related to our own resource outflows

Expected durability of Healthcare products

The expected durability of Healthcare products represented 3.1 years in the reporting year 2024. To define this indicator, we use the maximum durability of the individual Healthcare products. These are quantified on the basis of their respective share of sales and then added up. The contribution of each individual product to the sum parameter of the total durability is thus based on sales. We do not use approximations or assumptions for this indicator. The durability of the individual Healthcare products is clearly defined and publicly available. For the industry average, we select comparable drugs from other pharmaceutical companies and average their shelf life across all treatment categories.

Our product portfolio encompasses offerings from all three business segments: Life Science, Healthcare, and Electronics. When considering essential factors such as product design, operational processes, and environmental conditions, the disclosure requirements for expected durability of products have limitations. We do not use any approximations or assumptions. Instead, the information of the individual products is clearly defined and publicly available for Healthcare products because of their determined longevity, resilience, and robustness. These products are quantified based on their respective share of sales and then added up. The contribution of Healthcare product to the sum parameter of the total durability is thus based on sales.

Product repairability in Life Science and Electronics

The product repairability in Life Science is 51.0% in the reporting year 2024. In Electronics, product repairability amounts to 100.0% in the reporting year 2024. The repairability is either taken as given (and thus rated as 100%), not given (and thus rated as 0%) or not applicable (and thus not included in the rating).

The disclosure requirements for product repairability has limitations. The respective rating distinguishes between (1) repairability as given (and thus rated as 100%), (2) not given (and thus rated as 0%), or not applicable. Healthcare products are excluded from this rating because they lack mentionable serviceability, maintainability, and reusability.

Proportion of recyclable content in Healthcare products

The proportion of recyclable content in Healthcare products was not quantified in 2024. The assessment of recyclability or the recyclable content is applied to our entire product portfolio. The products were categorized into groups. The recyclable portion of these product groups was quantified and weighted based on their respective sales share and then added up. The contribution of each individual product group to the sum parameter of the recyclable portion is thus based on sales. We estimate the recyclable content of products in the Healthcare sector to be 0% since the processing infrastructure for primary packaging is currently only being established, and contaminated packaging can only be recycled in very special cases. The actual active ingredients, when quantified by mass, make up a smaller share and, according to our assumptions, do not contain any recyclable content. The recyclable content is defined based on the technical feasibility of processing. The recycling carried out by the customer and the final recycling rates are not quantified or considered here.

Proportion of recyclable content in Life Science and Electronics products

In the business sectors Life Science and Electronics, we examined the theoretically recyclable products. For Life Science, the share of recyclable content in the reporting year amounted to 18.0% and for Electronics it amounted to 9.0%. The assessment of recyclability or the recyclable content is applied to our entire portfolio. The products were categorized into groups. The recyclable portion of these product groups was quantified and weighted based on their respective sales share and then added up. The contribution of each individual product group to the sum parameter of the recyclable portion is thus based on sales. The recyclable content is defined based on technical feasibility for processing. The recycling carried out by the customer and the final recycling rates are not quantified or considered here.

The measurement of our own resource outflows metrics has not been validated separately by an external body.