SUSTAINABILITY REPORT

PAGE Sustainability Report 2024

Introduction
Sustainability Highlights 2024
Strategy & Progress
Materiality
Stakeholder Engagement
Risk Management
Governance
Environmental Efficiency
Responsible Sourcing and Innovation
Our People and Communities
Appendix
Independent Assurance Report

INTRODUCTION

BAKING JOY, SUSTAINING TOMORROW

2024

BAKING SUSTAINABILITY INTO OUR BUSINESS

Dear Stakeholders,

2024 marked a pivotal year for ARYZTA as we moved from setting our sustainability goals to embedding them into our culture, activities, and governance. As Chair of the Governance, Nomination & Sustainability Committee, we present this year's Sustainability Report, which demonstrates our progress and commitment to "Baking Joy, Sustaining Tomorrow".

Sustainability has always been a part of ARYZTA's DNA, exemplified by initiatives of Hiestand, our Swiss ARYZTA subsidiary, and its 30-year partnership with IP-SUISSE, a Swiss sustainability label promoting biodiversity, soil health, and animal welfare, which has championed sustainable agricultural practices. Building on this heritage, 2024 was a year of laying strong foundations, embedding sustainability into every facet of the organisation, and preparing for accelerated progress in the years ahead.

This commitment reflects ARYZTA's belief that sustainability is a long-term strategy, integral to how we create value for our stakeholders while contributing to a more sustainable planet. Initiatives like the Energy Excellence Programme, identifying over 200 Greenhouse gas (GHG) reduction opportunities, and the Water Conservation Programme, targeting water resource optimisation, are evidence of this enduring focus.

Our governance structure plays a critical role in driving this progress. Led by the Governance, Nomination & Sustainability Committee, ARYZTA ensures transparency and accountability at all levels. Quarterly ESG reviews align sustainability goals with business priorities and guide investment decisions that contribute to meaningful outcomes.

Additionally, in 2024, we strengthened our reporting practices in reference with the Global Reporting Initiative (GRI) Standards, the Task Force on Climate-Related Financial Disclosures (TCFD), and the Swiss Code of Obligations. Sustainability is an immensely complex and multifaceted topic, requiring the coordination of diverse governing bodies, frameworks, and initiatives to ensure meaningful progress. These frameworks enable ARYZTA on one side to transparently track and communicate progress, and on the other side ensuring stakeholder confidence in our strategy.

This report reflects ARYZTA's journey to embed sustainability across its activities and value chain, highlighting both achievements and future opportunities. We invite you to explore the initiatives described within as we continue our path to "Baking Joy, Sustaining Tomorrow".

Alejandro Legarda Chair of the Governance, Nomination & Sustainability Committee

ABOUT THIS REPORT

This report provides a detailed account of ARYZTA's progress in embedding its 5-Year Sustainability Strategy, into the way it does business and advancing its 13 Sustainability Goals during 2024. These goals, introduced in 2023, are aligned with ARYZTA's long-term commitment to contributing to a more sustainable planet and society.

The report has been prepared in reference with leading international frameworks:

Global Reporting Initiative (GRI) Standards 2021: Ensuring transparent and comparable disclosures.
Task Force on Climate-Related Financial Disclosures (TCFD): Serving as the framework to comply with the Swiss Ordinance on Climate Disclosures.
Swiss Code of Obligations (Art. 964a et seqq.): For reporting on non-financial matters which includes disclosures on due diligence and transparency in relation to child labour.

The report references key international frameworks that guide ARYZTA's sustainability strategy, including the Greenhouse gas Protocol (GHG Protocol), Science-Based Targets initiative (SBTi), United Nations Sustainable Development Goals (SDGs), CDP, International Labor Organization (ILO) Conventions, and OECD Guidelines for Multinational Enterprises, among others.

The baseline year for ARYZTA's sustainability targets is 2022, unless otherwise stated, and the strategy is informed by the materiality assessment conducted that year. The report highlights significant progress, including achievements in GHG reductions, water conservation, and responsible sourcing. It also showcases how ARYZTA is fostering innovation and collaboration across the value chain to drive long-term value creation.

To illustrate the real-world impact of these efforts, the report includes case studies and examples of community partnerships, regenerative agriculture initiatives, and employee-driven projects.

Independent limited assurance on key sustainability metrics for 2024 has been provided by Ernst & Young Ltd (see assurance letter in the Appendix).

For further details on ARYZTA's business model, performance, and results, refer to pages 4–11 of the Annual Report.

For additional information, please contact: Paul Meade, Head of Communication Email: [email protected]

SUSTAINABILITY HIGHLIGHTS 2024

Percentages are compared to baseline years 2022 or 2023. See the graph "Progress on ARYZTA's Ambitions Under Three Pillars".

ARYZTA's sustainability strategy is built on a foundation of stakeholder engagement, regulatory alignment, and operational innovation, driving measurable environmental, social, and economic outcomes that create value for all stakeholders.

In 2024, ARYZTA focused on further embedding its three sustainability pillars and 13 goals into its activities and decision-making. These efforts were guided by governance processes operating across all levels of the organisation, from the Board to operational teams. Regular reviews, supported by the Enterprise Risk Management (ERM) process and other site-specific environmental standards, ensured the strategy remained relevant and adaptable.

The 2022 materiality assessment continues to guide ARYZTA's approach, identifying key Environmental, Social, and Governance (ESG) issues that align with stakeholder priorities. These insights ensure the company's goals address critical global challenges and deliver measurable results across the value chain.

Through this comprehensive strategy, ARYZTA is laying the groundwork for meaningful progress, fostering innovation, and meeting the expectations of its stakeholders, while building a sustainable future for all.

Key areas of progress in 2024 include:

Energy Excellence & Water Conservation: As an outcome of the GHG emission and water reduction assessments, over 200 GHG reduction opportunities were identified and a 5% reduction in non-product water use was achieved1 .
Renewable Energy through Power Purchase Agreements (PPAs): Implemented two new local PPAs and advanced others to the final stage of development. These long-term renewable energy contracts enhance energy security, reduce carbon emissions, and support ARYZTA's sustainability commitments.
Regenerative Agriculture: 8,500 hectares was transitioned to regenerative agriculture through a partnership with Klim, a regenerative agriculture support platform, contributing to a total of 7% wheat sourced sustainably.
Sustainable Sourcing: 99% certified palm oil, 74% certified cocoa and 82% cage-free eggs were sourced for own production purposes, progressing towards 2026 targets.
Enhanced Climate Disclosures: Strengthened transparency through alignment with the TCFD and Ordinance on Climate Disclosures which includes a more granular climate risk assessment.
SEDEX: In 2024, all ARYZTA sites were integrated into the SEDEX platform, a third-party platform for supply chain due diligence, enhancing supply chain transparency and ethical compliance.

1 refers to all water utilized on-site except for water directly incorporated into products (e.g., in the baking process).

Progress on ARYZTA's ambitions under three pillars

¹ The 2024 progress for palm oil relates to products produced by ARYZTA.

² The 2024 progress for cocoa relates to products produced by ARYZTA.

³ The 2024 progress for cage-free eggs relates to products produced by ARYZTA.

⁴ The target for 2028 has already been exceeded in 2024 by 9%.

⁵ Training hours per employee against total target of 24 hours on average.

⁶ SEDEX assessment from 34 entities in 2024.

1. Environmental Efficiency

Greenhouse gas Reductions: ARYZTA achieved a 5% absolute reduction in Scope 1 and 2 GHG emissions in 2024, maintaining progress toward its 34% absolute reduction target by 2028 (vs 2022 baseline). This reduction marks a positive step in ARYZTA's transition to environmentally aligned refrigerant systems and its broader commitment to sustainable operations. As the programme advances and identified efficiency projects are implemented, greater reductions are expected in the coming years.
Water reduction: Reduced non-product water use per production volume by 5% in 2024, making steady progress toward the 10% reduction target by 2028 (vs 2023 baseline)
Food Waste Reduction: ARYZTA achieved a 8% reduction in operational food waste by the end of 2024, with initiatives underway to meet its 20% reduction target by 2028 (from the 2022 baseline). The baseline value was adjusted to account for a more standardized methodology for food waste reporting, allowing for improved data collection and ensuring greater accuracy. By leveraging root cause analysis and refining validation processes, ARYZTA remains well-positioned to accelerate progress toward its 2025 food waste reduction milestones.

2. Responsible Sourcing & Innovation

Sustainable/Regenerative Wheat: Sourced over 7% of wheat sustainably in 2024, advancing toward the 25% target for 2028 through partnerships with IP-SUISSE, Klim, and collaboration projects with customers and suppliers (vs 2023: 6% baseline).
Certified Palm Oil: Achieved 99% certification through RSPO segregated and mass-balance approaches (76% in 2023). ARYZTA is committed to maintaining this 100% certification annually moving forward.
Certified Cocoa Beans: Reached 74% certification of cocoa beans in 2024, progressing toward 100% by 2026 (vs 2023: 65%).
Cage-Free Eggs: Achieved 82% cage-free egg sourcing in 2024, targeting full compliance by 2026 (vs 2023: 74%).
Virgin Plastic reduction: Continued efforts to reduce virgin plastic use, targeting a 30% reduction by 2028, from a 2023 baseline.
Healthier Products/Better for you: In 2024, ARYZTA's efforts to introduce "Better for You" products exceeded expectations, achieving a significant milestone with 49% of new product launches meeting the established criteria, well ahead of the original target of 40% by 2028. This early achievement reflects the company's strong commitment to innovation and consumer needs. ARYZTA will continue to assess progress and explore opportunities to further raise its ambitions in this area.
Supply Chain Due Diligence1: By the end of 2024, 196 ARYZTA supplier sites had completed SMETA (Sedex Members Ethical Trade Audit) audits, building on the 2023 baseline and advancing toward the target of 500 audits by 2028. These audits play a key role in ensuring ethical sourcing practices and compliance with international labour and sustainability standards.

3. People & Communities

Human Capital Development: Employees completed 11 training hours on average in 2024, establishing a baseline toward the goal of three days (24 hours) of training annually per employee by 2028.
Health & Safety: ARYZTA reduced its Total Recordable Incident Rate (TRIR) by 28% in 2024, advancing toward its goal of a 50% reduction by 2028 (vs 2023 baseline).
Ethical & Safe Workplaces: Achieved an average SEDEX management controls score of 3.0 in 2024, reflecting ARYZTA's commitment to fair and safe workplaces. With a target score of 3.5 by 2028, SEDEX assessments continue to drive improvements in employee well-being, workplace safety, and ethical business practices across ARYZTA's operations.

ARYZTA's Sustainability Strategy is built around three core pillars: Environmental Efficiency, Responsible Sourcing &

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¹ This target has been reclassified under Pillar Responsible Sourcing & Innovation to better reflect its strategic focus.

ARYZTA's Sustainability Strategy is built around three core pillars: Environmental Efficiency, Responsible Sourcing & Innovation, and People & Communities. This graph illustrates how ARYZTA's 13 goals align with these pillars, showcasing the company's commitment to reducing environmental impact, fostering ethical supply chains, and prioritising the well-being of its people and communities. Together, these goals drive meaningful progress toward ARYZTA's mission to 'Baking Joy, Sustaining Tomorrow'.

MATERIALITY: ALIGNING SUSTAINABILITY WITH STAKEHOLDER PRIORITIES

ARYZTA understands that aligning its sustainability strategy with the priorities of its stakeholders is essential for long-term success. In 2022, ARYZTA conducted a comprehensive materiality assessment, engaging internal and external stakeholders to identify the key topics critical to the company's sustainable performance. This process involved over 40 stakeholders across various functions and geographies, including senior leadership, operational teams, major customers, suppliers, and investors.

In 2024, ARYZTA revisited the relevance of its materiality assessment during a Sustainability Steering Committee review. The results validated that the company's Sustainability Strategy and Goals remain aligned with stakeholder expectations. The importance of controlling upstream supply chains for human rights compliance and environmental impact emerged as a heightened focus, driven by evolving regulatory requirements.

Corporate governance was also highlighted as a cornerstone for achieving sustainability goals, alongside effective environmental management and ARYZTA's ability to meet diverse consumer dietary needs. These critical topics were mapped to ARYZTA's strategic pillars, as illustrated in the Materiality Matrix:

Materiality Matrix:

Key priorities were identified as having increasing importance for both our business and our stakeholders. These are categorised into 3 Key Pillars:

1. ENVIRONMENTAL EFFICIENCY:

To minimize our carbon footprint and effects of climate change
To reduce waste and water and improve circularity in our systems

Increasing importance to our stakeholders

2. RESPONSIBLE SOURCING & INNOVATION:

Collaborate with our customers and suppliers for sustainable innovation
To serve our consumers more sustainable products with a better nutritional profile

3. PEOPLE AND COMMUNITIES:

– To improve the lives of our people and our communities

Increasing importance to our business

In 2024, ARYZTA also initiated its Double Materiality Assessment to align with the EU Corporate Sustainability Reporting Directive (CSRD) requirements for the 2025 reporting year and in preparation for expected Swiss regulatory changes. This assessment evaluates ARYZTA's environmental, social, and governance impacts, risks, and opportunities, aiming to deliver long-term sustainable value. The Double Materiality Assessment is scheduled for completion in early 2025, further reinforcing ARYZTA's commitment to meeting stakeholder needs and advancing its sustainability ambitions.

STAKEHOLDER ENGAGEMENT: INFORMING DECISION-MAKING

ARYZTA recognises the critical importance of understanding stakeholder perspectives in shaping its sustainability priorities. To ensure that stakeholder insights are effectively integrated into decision-making processes, ARYZTA has established formal mechanisms for engagement.

Regular dialogues with investors, customers, employees, suppliers, and local communities form the cornerstone of ARYZTA's approach to stakeholder engagement. These conversations not only provide valuable feedback, to align with stakeholder expectations, but also serve as an opportunity for ARYZTA to keep stakeholders regularly informed about its progress, actions and commitments, fostering mutual understanding and collaboration. This proactive engagement also ensures alignment with stakeholder engagement requirements under the Swiss Code of Obligations (CO) and the Global Reporting Initiative (GRI).

Additionally, ARYZTA monitors market developments to stay ahead of key sustainability trends, enabling it to anticipate shifts in stakeholder priorities and adapt strategies to drive long-term sustainable value creation.

Who?	Key topics addressed	Communication channels
Employees	Group strategic agenda/priorities on sustainability including energy efficiency and water reduction Occupational Safety and support at work Career development Reward framework	HR email communication Townhall meetings Sustainability trainings On-line training Workshops
Board	Sustainability Strategy roll-out including Climate Roadmap Sustainability Committee and Audit Committee Performance against the goals Compliance with relevant ESG legislation Review of Risks and Opportunities Allocation of resources	Quarterly reporting to Governance, Nomination & Sustainability Committee and Audit Committee
Customers	Insights on consumer trends Stable supply of high-quality products and ingredients Food safety and quality Sustainable strategy alignment Engagement on projects across the supply chain Climate – GHG reduction strategies	ARYZTA Customer Survey Account management and sales team engagement Key Customer meetings Customer reporting through platforms and ad-hoc questionnaires Sustainability reporting
Suppliers and business partners focused on sustainability	Responsible sourcing and use of raw materials long-term, sustainable partnerships Positive environmental and social impact Ethical business conduct Climate – GHG reduction strategies	Supplier Code of Conduct SEDEX and other specialised platforms Industry wide collaboration around sustainability
Shareholder/Analysts	Business performance and strategic topics including ESG	Investor meetings, investor conferences, regular results presentation updates and our Annual General Meeting (AGM) Investor and proxy questionnaires
Financial institutions	Business performance, Financing and Refinancing options Sustainability strategy and performance	Bank and Bondholder Meetings
Industry Organisations	Sustainability initiatives Supply-chain issues Government initiatives and regulations	Regular working group meetings
Communities	Supporting charities, assisting parents visiting sick children, and driving environmental initiatives for sustainability	Direct communications through on-site and offsite meetings
Farmers	Regenerative agriculture	Through partner organisations and direct engagement

ARYZTA integrates sustainability into its Enterprise Risk Management (ERM) process, ensuring that risks and opportunities are systematically identified, assessed, and mitigated at both local and Group levels. This approach enables the company to prioritise its most significant risks while aligning mitigation actions with its long-term Sustainability Strategy.

Oversight and Governance

The Audit Committee oversees the progress of ERM risk mitigation plans, while the Governance, Nomination & Sustainability Committee focuses specifically on ESG-related risks. These committees ensure risks are monitored effectively, and ARYZTA's responses align with its sustainability goals. Regular updates are provided by the Head of Sustainability and ESG, embedding risk management as a core aspect of decision-making.

Framework for Identifying Risks and Opportunities

ARYZTA employs a robust framework for identifying and managing risks and opportunities, which includes:

ERM Evaluation: Long-term risk assessment with a horizon of up to 10 years.
Materiality Assessments: Annual reassessments to ensure the materiality matrix reflects stakeholder priorities and to reflect sustainability-related risks and opportunities.
Climate Risk Assessment and Water Risk Assessment: ARYZTA has conducted a scenario analysis in alignment with the TCFD Recommendations (see page 114-127) and a water risk assessment using the World Resources Institute's "Aqueduct Water Risk Atlas".
Supply Chain Due Diligence: Ethics and Human Rights
Sustainability Steering Committee: Quarterly reviews of sustainability opportunities.
ISO Standards Compliance: Annual certification of ISO14001, ISO50001, and ISO45001 management systems.

Ensuring enterprise-wide awareness and management of sustainability risks is critical to ARYZTA's long-term resilience and performance. In 2024, ARYZTA's Enterprise Risk Management (ERM) process identified six principal risks related to its Sustainability Strategy, detailed in this report and the 2024 Group Risk Statement: Principal Risks and Uncertainties. Key risks include:

Environmental, Social, and Governance (ESG) Risks: Environmental and social risks, including those linked to ARYZTA's supply chain. (See "Supply Chain Due Diligence" and "Climate Scenario Analysis" sections for further details.)
Regulatory Compliance and Operational Risks: Ensuring compliance with evolving ESG regulations, including the Corporate Sustainability Reporting Directive (CSRD), European Union Deforestation Regulation (EUDR) and the German Supply Chain Due Diligence Act (LkSG), which requires companies to assess and mitigate human rights and environmental risks within their supply chains1 . ARYZTA manages this through conducting risk-based supplier audits, strengthening supplier due diligence, and ensuring transparency through SEDEX and SMETA reporting.
Talent Management and Labour Shortages: Addressing workforce challenges by enhancing upskilling and training initiatives.
Shifting Consumer Habits and Values: Responding to changing demands through ARYZTA's "Better for You" product innovations.
Food Safety, Quality, and Workplace Safety Risks: Maintaining high standards across product quality and health and safety measures.
Climate-Related Physical Disruptions: Managing the impact of physical climate risks (see "Climate Scenario Analysis").

In alignment with these identified risks, ARYZTA undertook several in-depth risk assessments in 2024, focusing on climate-related and supply chain due diligence risks. These assessments included the initiation of a Double Materiality Assessment, in compliance with the Corporate Sustainability Reporting Directive (CSRD). This process further enhances ARYZTA's ability to manage sustainability risks effectively while identifying opportunities for growth and adaptation.

1
https://aryzta.de/lieferkette/

Risk Response
Risk Identification

Monitor & Control Risks

Risk Assessment

Enterprise Risk Management Framework

Dual Perspectives on Sustainability Matters: Inside-Out and Outside-In

The Swiss Code of Obligations (CO) requires companies to assess sustainability matters from two perspectives: Inside-Out, examining how business activities impact environmental and social factors, and Outside-In, assessing how sustainability challenges affect the company's operations and financial performance.

ARYZTA integrates this dual perspective into its risk management approach to ensure a comprehensive understanding of both its impact on the world and the risks it faces from external factors.

Inside-Out Impacts: ARYZTA's activities contribute to environmental and social impacts, including Greenhouse gas emissions, water use, waste disposal, and the sustainable production of raw materials, while also upholding high ethical and human rights standards across its operations and supply chain. The company reinforces positive impacts and addresses negative ones through comprehensive initiatives, including supplier audits, sustainable sourcing policies, and emissions reduction strategies.

Outside-In Risks: ARYZTA also faces external risks such as physical climate risks (e.g., extreme weather events disrupting operations or supply chains), regulatory risks from evolving sustainability regulations (e.g., EU Corporate Sustainability Report Directive (CSRD), carbon pricing), and reputational risks due to heightened stakeholder expectations for supply chain transparency.

Supply Chain Due Diligence: Ethics and Human Rights

In 2024, ARYZTA conducted a comprehensive third-party evaluation of supply chain risks in accordance with the Swiss Code of Obligations (Art. 964a et seqq.), addressing environmental factors such as climate impacts, biodiversity, water usage, and energy, alongside social considerations including child labour, wages, working hours, and health and safety. The assessment was conducted using internationally recognised frameworks, such as the Ethical Trading Initiative (ETI) Base Code, United Nations Guiding Principles (UNGPs), and relevant local laws.

The findings indicated that the majority of ARYZTA's direct suppliers falls within medium-risk categories, with all sourcing countries for third-party sourced Finished Goods assessed as medium or low risk. These results reaffirm ARYZTA's ongoing commitment to environmental sustainability, responsible sourcing, and ethical practices across its supply chain.

The processes described align with ARYZTA's legal and regulatory obligations under applicable due diligence frameworks and reflect its commitment to continuous improvement in supply chain governance and ethical standards. By leveraging platforms like SEDEX and SMETA audits enhancing supplier engagement, and fostering transparency, ARYZTA demonstrates its dedication to sustainable practices across its value chain while ensuring alignment with evolving stakeholder expectations and regulatory landscapes.

A separate report was commissioned by ARYZTA to ensure compliance with the Swiss regulatory requirements on child labour and conflict minerals and metals, i.e. art. 964j-l of the Swiss Code of Obligations (CO) and the Ordinance on Due Diligence and Transparency in relation to Minerals and Metals from Conflict-Affected Areas and Child Labour (DDTrO). ARYZTA engaged KPMG to conduct a full assessment to determine whether there were any indications of child labour or conflict minerals and metals within ARYZTA's supply chain for the year 2023. The assessment included multiple workshops, extensive interviews with senior management and a thorough review of internal and external documentation.

The 2024 assessment confirmed:

There were no indications suggesting the presence of child labour in ARYZTA's supply chain, nor any reasonable grounds to suspect its presence during the financial year 2023. While the assessment pertains specifically to 2023, the absence of significant changes in ARYZTA's supplier base or manufacturing operations in 2024 reinforces confidence in the continuity of these findings. The assessment will be conducted on an annual basis and in the event of a significant change in the supplier base, ARYZTA will promptly reassess the situation.
On conflict minerals & metals, KPMG determined that ARYZTA is a bakery company producing products like bread, rolls, buns, pastries, savoury, and cookies and ARYZTA is not shipping, treating, or processing any minerals and metals for the final product. In any event, ARYZTA has not exceeded any import or processing thresholds for minerals and metals outlined in Appendix 1 of the DDTrO in 2023, nor placed any listed minerals and metals into free circulation. As ARYZTA has not changed its business activities, its supplier base or product portfolio in a way that would affect this analysis, the analysis remains valid for the financial year 2024. Therefore, it can be concluded that ARYZTA was also exempted from due diligence and reporting obligations in relation to minerals and metals according to the Swiss CO for the financial year 2024. Additionally, the independent assessment concluded that, as a bakery company, ARYZTA is not involved in the shipping, treating, or processing of minerals and metals from conflict-affected areas.

Looking ahead, ARYZTA will continue to conduct annual risk assessments, embedding its commitment to continuous improvement in all aspects of supply chain management and human rights due diligence.

Climate Scenario Analysis

In alignment with the Ordinance on Climate Disclosures and TCFD recommendations, ARYZTA completed a scenario analysis in 2024 to evaluate risks related to climate change. Key risks identified and integrated into the ERM process include:

Physical Risks: Disruption of own operations due to extreme heat.
Policy and Legal Risks: Evolving climate legislation affecting operations and compliance.
Market Risks: Risks associated with volatile yields due to changing environmental conditions.

The details of the risk and opportunity assessment are further discussed on page 114-127.

Strengthening Risk Resilience

Building resilience is critical to ARYZTA's ability to adapt and thrive in an ever-changing global landscape. By anticipating and mitigating risks, ARYZTA safeguards its operations, supports long-term sustainability goals, and enhances stakeholder trust. ARYZTA's approach to risk resilience includes:

1. A structured Enterprise Risk Management (ERM) process for annual evaluation and proactive mitigation.
1. Supply chain due diligence supported by third-party platforms and the Supplier Code of Conduct to address environmental and social risks.
1. Third-party ESG audits target high-risk suppliers to ensure compliance and drive improvements.
1. Strategic investments in sustainable practices like regenerative agriculture and water conservation to mitigate climate-related risks and secure future resource availability.

Commitment to Continuous Improvement

In 2024, ARYZTA achieved significant improvements across key ESG ratings, reflecting enhanced sustainability performance and alignment with industry best practices. Upgrades in MSCI and EcoVadis ratings, along with a reduced Sustainalytics risk score, underscore ARYZTA's commitment to responsible business practices and environmental stewardship. These improvements are a testament to ARYZTA's ongoing efforts to integrate sustainability into its operations and decision-making processes.

Rating Agency	Prior Score	2024 Score	Improvement
MSCI	BBB	A	Upgraded by 1 level
Sustainalytics	44.8	31.5	Decreased risk score
EcoVadis	43	56	Increased sustainability rating

MSCI: ESG ratings range from CCC (laggard) to AAA (leader), with higher ratings indicating stronger ESG performance. Sustainalytics: ESG risk scores range from 0 (negligible risk) to 100 (severe risk), where lower scores are better.

EcoVadis: Scores range from 0 to 100, with higher scores reflecting stronger sustainability practices.

GOVERNANCE: BUILDING A STRONG FOUNDATION FOR SUSTAINABILITY

Effective governance is integral to ARYZTA's ability to navigate the complex challenges of sustainability and deliver long-term value to stakeholders. In 2024, ARYZTA enhanced its governance framework to ensure clear accountability, transparency, and robust oversight at all organisational levels. These structures reflect ARYZTA's commitment to addressing environmental, social, and governance (ESG) issues with diligence and foresight.

Governance Framework and Oversight

The following governance framework ensures that climate-related risks and opportunities are embedded in the company's governance framework, enabling proactive management and strategic decision making.

Board Oversight

The ARYZTA Board of Directors holds ultimate responsibility for the company's ESG and sustainability strategy overseeing climate related risks and opportunities. This includes integrating climate considerations into the company's strategic planning and risk management processes. The Board approves the strategic goals, including targets and measures, aligning them with ARYZTA's long-term vision of value creation. The Board receives regular updates on climate-related performance, risks and opportunities. In 2024, the Chair of the Governance, Nomination & Sustainability Committee presented an update on ESG topics including monitoring progress against the climate related goals, targets and KPI measurements, the ESG expectations from customers and the regulatory landscape, at every Board meeting. The Board also approves ARYZTA's non-financial reporting, ensuring compliance with evolving regulatory requirements.

Governance, Nomination & Sustainability Committee

This committee, comprised of independent directors, is dedicated to overseeing ARYZTA's sustainability agenda. Meeting 10 times in 2024, it reviewed climate change risks, governance updates, and social issues at 8 of those meetings. The committee also received specialised ESG training, empowering members to remain aligned with industry trends and regulatory landscapes. This training was cascaded to the full Board to ensure consistent understanding and focus on ESG priorities.

Audit Committee

The Audit Committee oversees the accuracy and compliance of ARYZTA's financial and ESG reporting. In 2024, it reviewed quarterly updates on sustainability performance, validating progress against publicly stated targets and ensuring robust risk management processes.

Executive and Operational Leadership

Executive Management Committee

The Executive Management Committee comprising the Group Interim CEO and senior management executives including the Chief Financial Officer who is responsible for Sustainability, lead sustainability integration across ARYZTA's operations, ensuring alignment with strategic goals. The Chief Financial Officer, responsible for Sustainability, leads the company's climate strategy and is responsible for assessing and managing climate-related risk and opportunities. Accountability is embedded within the roles of all Executive Committee members, with specific sustainability-related targets, including climate goals, tied to executive compensation.

Sustainability Steering Committee

Chaired by the Group Head of Sustainability and ESG, this committee of senior leaders convenes quarterly to guide corporate sustainability strategy. It evaluates risks and opportunities, ensuring ARYZTA remains informed and responsive to emerging social, ethical, and environmental challenges, including climate-related issues. The work of this committee is reported to the Governance, Nomination & Sustainability Committee and shared with the Board when determining ESG strategy.

GOVERNANCE: BUILDING A STRONG FOUNDATION FOR SUSTAINABILITY

Sustainability Team

The Group Sustainability Team spearheads the daily implementation of ARYZTA's sustainability strategy, coordinating cross-functional initiatives and facilitating knowledge sharing. In 2024 monthly Sustainability Working Group meetings, comprising coordinators from each business and the Group team, fostered dynamic engagement across business units. These meetings ensure that there is awareness of climate related issues and enable the identification and management of both local and global risks, ensuring a cohesive and proactive approach to sustainability.

Sustainability Governance Model

Sustainability Governance

GOVERNANCE: BUILDING A STRONG FOUNDATION FOR SUSTAINABILITY

Anti-Bribery and Corruption: Zero Tolerance Approach

ARYZTA upholds a zero-tolerance policy for bribery and corruption, recognising the societal risks these practices pose, such as social and economic inequality, and the operational risks of reputational damage and financial penalties. In 2024, ARYZTA reinforced its commitment to integrity through its Global Code of Conduct for Employees and Supplier Code of Conduct, both of which emphasise the company's dedication to ethical business practices across its operations and supply chain. Both codes are aligned with International Labour Organization (ILO) Conventions and United Nations (UN) principles, ensuring adherence to fundamental labour rights, fair working conditions, and responsible business conduct.

Key initiatives included:

Global & Local Leadership Engagement: Reminders were issued to the Executive Management Committee, local management and finance leadership teams, and the compliance champions who cascaded consistent anti-bribery and anti-corruption messaging throughout the organisation. The Global Code of Conduct for Employees reinforces ARYZTA's zero-tolerance stance on bribery and corruption, ensuring alignment with its ethical standards and commitment to accountability at every level of the organisation.
Supplier Engagement: ARYZTA's efforts to extend its commitment to integrity includes requiring suppliers to sign the Supplier Code of Conduct, ensuring compliance with anti-corruption standards. By the end of 2024, 96% of targeted direct and third-party produced goods (Bought-In Finished Goods) suppliers had signed the new Supplier Code of Conduct, Letter of Understanding or Supplier Framework Agreement, reflecting ARYZTA's focus on accountability across its value chain. ARYZTA has the right to terminate a supplier relationship in the event of a breach of the Supplier Code of Conduct.
Whistleblower Hotline: The whistleblower system remains a cornerstone of ARYZTA's governance. Managed by an independent third party, it provides employees, suppliers, and other stakeholders a confidential and anonymous channel to report unethical behaviour or suspected corruption.

Looking ahead to 2025, ARYZTA plans to deploy a global e-learning platform to further enhance awareness and compliance across its operations and supply chain. This initiative underscores ARYZTA's proactive approach to fostering a culture of transparency, accountability, and ethical excellence.

Advancing Governance: Ensuring Transparency and Integrity

Sustainability Reporting and Double Materiality Assessment (DMA)

As most of ARYZTA's subsidiaries operate within the EU, the company initiated a Double Materiality Assessment (DMA) in 2024 to align with the EU Corporate Sustainability Reporting Directive (CSRD) and to identify and evaluate its financial and non-financial impacts, risks, and opportunities. Senior leaders participated in training led by independent experts, ensuring a comprehensive understanding of this critical framework.

SEDEX and SMETA Implementation

To enhance transparency and supplier accountability, ARYZTA expanded its engagement with SEDEX in 2024, onboarding further suppliers. SMETA audits were conducted across key supplier sites, driving corrective actions and supporting compliance with international labour and environmental standards.

Looking Ahead

ARYZTA's governance structures reflect its unwavering commitment to meeting investor expectations and addressing sustainability challenges with clarity and accountability. By fostering transparency, aligning with best practices, and equipping its leadership with the tools to navigate a rapidly evolving ESG landscape, ARYZTA is well-positioned to "Baking Joy, Sustaining Tomorrow".

ENVIRONMENTAL EFFICIENCY

ARYZTA understands that natural resources are fundamental to its operations and its ability to deliver high-quality products to customers worldwide. From the grains used in its baked goods to the energy powering its facilities, these resources are integral not just to ARYZTA's recipes but also to its vision of building a sustainable future. In 2024, ARYZTA made significant strides in protecting and optimizing its use of natural resources, driven by a comprehensive climate strategy, innovative programs, and bold goals.

Climate Strategy and TCFD Compliance

In 2024, ARYZTA exemplified its commitment to "Baking Joy, Sustaining Tomorrow" by taking decisive action to understand and address the risks and opportunities posed by climate change. Through a comprehensive climate risk assessment and scenario analysis aligned with the TCFD framework, the cross-sectoral guidance on the TCFD recommendations, the sector-specific guidance, and, where possible and appropriate, the Guidance on Metrics, Targets, and Transition Plans, the company established a solid foundation for long-term resilience.

Collaborating with global experts, ARYZTA leveraged advanced climate models to gain a deep understanding of its vulnerabilities and potential pathways to sustainability. By proactively tackling regulatory and market challenges, ARYZTA is not merely adapting to a rapidly changing world, it is actively shaping a more sustainable and resilient future.

Environmental Risks: Inside-Out and Outside-In Perspectives

Inside-Out Impacts: ARYZTA's operations contribute to environmental impacts such as Greenhouse gas emissions, water use, and waste generation. For example, Scope 1 and Scope 2 emissions result from production processes and energy sourcing, while Scope 3 emissions arise from supplier activities, such as raw material production and logistics.

Outside-In Risks: Climate change presents physical risks, such as droughts and floods that disrupt ingredient supply chains, and transition risks, including regulatory changes like the potential introduction of carbon pricing in markets where ARYZTA operates. These risks could increase operational costs and affect ARYZTA's ability to meet market demands.

Approach to Scenario Analysis

The climate risk assessment leveraged recognised models from leading organisations, including the World Resources Institute (WRI), The World Bank, and the World Business Council for Sustainable Development (WBCSD), the International Energy Agency (IEA), the Intergovernmental Panel on Climate Change (IPCC) and the Network for Greening the Financial System (NGFS). ARYZTA explored three distinct scenarios:

1. Paris-Accord aligned Pathway (<2°C): A Paris Agreement-aligned pathway, with strong global climate action and higher transition risks but lower physical risks.
1. Middle of the Road Pathway (<3°C): Fragmented climate action, characterised by delayed but abrupt interventions, resulting in elevated transition and physical risks.
1. Business as Usual Pathway (>3°C): A business-as-usual scenario with limited policy action, leading to severe physical risks and minimal regulatory transition risks.

Time Horizons and Risks Evaluated

ARYZTA assessed risks across three-time horizons:

Short-term (to 2028): Aligned with the company's business planning cycle. Focusing on immediate regulatory compliance and operational planning.
Medium-term (2029–2035): Addressing transitional risks, such as evolving climate regulations, supply chain disruptions, and market shifts, while physical risks like resource scarcity begin to emerge.
Long-term (2036–2050): Preparing for enduring impacts, including severe physical risks such as extreme heat, water stress, and other climate-induced disruptions to operations and supply chains.

The assessment examined both physical risks, which can be categorized as either acute weather events (e.g., wildfires) or chronic longer-term shifts in climate patterns (e.g., extreme temperatures), as well as transition risks, including regulatory changes, market shifts, technological disruptions, and reputational challenges.

To ensure the robustness and reliability of its approach, the methodologies and results were subject to an independent review, further enhancing confidence in the outcomes.

Key Findings from Scenario Analysis

ARYZTA has identified several climate-related risks with potential to impact its operations and supply chain:

Physical risks: extreme heat, water stress and wildfires, which may disrupt production and sourcing regions.
Transition risks: market risks affecting key ingredients such as wheat and dairy, as well as policy and legal risks linked to evolving climate regulations.

The assessment allowed ARYZTA to examine its potential level of influence, the mitigation strategies available, and the resilience of its supply chain partners. Given these factors, ARYZTA has prioritized operational and upstream value chain risks, where mitigation efforts can have the greatest impact.

Each scenario highlighted a distinct set of risks, challenges and opportunities with the potential to significantly impact ARYZTA's business. The upper and the lower pathways are characterized as follows:

Paris Accord-aligned Pathway (<2°C): This scenario highlights increased carbon pricing and stricter regulatory burdens, particularly in Europe, where ARYZTA operates significant facilities.
Business as Usual Pathway (>3°C): Projected price increases for raw materials like wheat and barley driven by climate-induced yield volatility.

Prioritised Risks

After considering existing mitigating measures in place, Senior management prioritised three key risks for immediate focus, that impact the company in the short, medium, and long term:

1. Policy and Legal Risks: Stricter carbon pricing mechanisms and compliance costs in markets like the European Union.
1. Market Risks: Price volatility in key commodities, such as cereals, which dominate upstream spending.
1. Chronic Physical Risks: Rising temperatures impacting critical production processes at sites in Spain, Hungary, Romania, Bulgaria, and Australia, necessitating investments in cooling technologies.

Potential Financial Implications

The potential financial impact of these risks was categorized into:

Low (<€500K per annum): Manageable within current budgets.
Moderate (€500K–€5M per annum): Requiring targeted interventions.
High (>€5M per annum): Demanding significant strategic investments.

The table below shows the three prioritized risks, the methodology used for their evaluation, their potential impacts, and the corresponding mitigation strategies. ARYZTA has chosen to disclose financial impact ranges for the medium term (2029– 2035), as both transition and physical risks are expected to materialize within this timeframe. ARYZTA's assessment revealed that these risks have the potential to impact the business to varying degrees across both the short- and long-term. In addition, the analysis also identified several potential opportunities related to climate change.

	Risk 1			Risk 2			Risk 3
Risk type	Transition		Transition		Physical
Risk category	Policy and Legal		Market risk			Chronic
Named risk	Carbon pricing		Price of cereals (wheat, barley, etc.)		Adverse heat conditions
Value chain	Own operations			Upstream value chain			Own operations
Description	Increased regulatory burden through climate reporting and the introduction or enhancement of carbon pricing mechanism in ARYZTA's markets.		Increased volatility of the market price of key raw materials, such as wheat flour caused by changing yields at ARYZTA's key sourcing markets.		Rise in the number of days with temperatures exceeding 35°C1 impacting baking and distribution process. Controlling temperature during the baking process is crucial in assuring the quality of ARYZTA's products, with increased outside temperatures there is potential risk for revenue loss due to operational disruptions. To date, no such event has occurred thanks to directed investment and adapted processes.
Impacts	Policy & Legal risk, particularly related to carbon pricing, is signif icant for ARYZTA and the bakery sector. New policy frameworks, such as carbon taxes in countries we operate in are expected to increase costs. This risk is most pronounced in countries such as Germany and Sweden due to stringent EU legislation and the scale of ARYZTA's business in these countries.			The price changes of cereals poses a climate-related market risk for ARYZTA as well as for the bakery sector at large. The availability and cost of high-quality flour is expect ed to shift in the coming decades, however this risk is not unique to ARYZTA. The primary concern is price volatility, with European prices projected to fluctuate sig nificantly.		Within ARYZTA's own operations, adverse heat conditions present substantial risks, especially at critical production sites in Spain, Hungary, Romania, Bulgaria and Australia. Projections indicate a rising num ber days exceeding 35°C in these region requiring increasing ARYZ TA's spend on cooling technology within production facilities in order to maintain the high quality stand ard of our products.
Time period	Medium-term (2029-2035)
Scenario	Paris Accord aligned	Middle of the road	Business as Usual	Paris Accord aligned	Middle of the road	Business as Usual	Paris Accord aligned	Middle of the road	Business as Usual
Potential Financial Implications	High	High	High	Not material	High	High	Moderate	Moderate	Moderate

1 The World Bank: CMPI 6 (Coupled Model Intercomparison Projects).

	Risk 1	Risk 2	Risk 3
Methodology	Based on data from the Interna tional Energy Agency (IEA) the likelihood and cost of carbon pricing in the different countries that ARYZTA's business units are located was assessed. The impact of ARYZTA's current Scope 1 and 2 emissions together with its current climate targets was incorporated into the projected emission levels.	The evolution of the cost of cereals was modelled based on projected price index provided by the World Business Council on Sustainable Development (WBCSD).	ARYZTA has analysed the impact of increased Capital Expenditure required to maintain operational excellence in an environment with increased intensity and frequency of extreme hot days (defined as >35°C). For cooling equipment a useful as set life of 15 years was considered.
Mitigating strategies	ARYZTA has set ambitious short term Greenhouse gas reduction targets aligned with the Paris Accord. The Company aims to achieve a 34% absolute reduction in its Scope 1 and 2 Greenhouse gas emission targets by 2028. The achievement of this target requires focused capital investment over the next four years. Measuring the product footprint of our portfolio of baked goods is an increasing customer demand. ARYZTA has initiated the adoption of a scalable and effective solution to these requests and is working collaboratively with its customers and suppliers to decarbonize the food supply chain.	ARYZTA has been sourcing key in gredients from sustainable sources, such as IP Suisse flour in Switzer land for the past 30 years. In 2023 a new set of projects was initiated to support the transition of farmers to regenerative practices. These practices work towards increasing the food system's resilience to the adverse impacts of climate change and as such help stabilize the market for our key raw materials. Read more about our progress on page 129-133.	The impact of adverse heat events are managed both on the daily tactical level by adapted mainte nance practices and on a strategic level through capital investment. In 2024 ARYZTA took a formalized approach to upgrading cooling technology across its key sites, where possible relying on systems utilizing natural refrigerants instead of refrigerants with high global warming potentials.
Opportunities	By aligning ARYZTA with Paris Accord aligned targets, several opportunities present themselves such as: – Strengthen customer retention and attract new environmentally conscious consumers, driving revenue growth and profitability. – Optimize energy efficiency across ARYZTA's direct operations, lowering energy costs while enhancing climate resilience. – Partner with regenerative farmers to improve supply chain resilience, ensuring sustainable ingredient sourcing. – Expand the use of renewable energy and energy-efficient technologies, reducing operating costs and carbon emissions. – Enhance supply chain resilience by strengthening sustainable sourcing practices for key ingredients like wheat, dairy, and cocoa. – Optimize logistics and reduce transportation emissions, improving cost efficiency and sustainability across the supply chain.

Reducing Greenhouse Gas Emissions

For the second year in a row, ARYZTA has achieved Scope 1 and 2 GHG emission reductions, resulting in a 5% decrease from the 2022 baseline. In 2024, emissions from refrigerant leaks dropped by 5%, and indirect emissions from purchased electricity (Scope 2 market-based emissions) decreased by 3%. This reduction in purchased electricity emissions was made possible by an increase in renewable electricity sourcing, either through power suppliers or dedicated Power Purchasing Agreements, where ARYZTA supports the development of new renewable generation capacity. Highlighting the improved efficiency of our operations while growing the business, ARYZTA's emissions on a per-revenue basis decreased by an impressive 17% between 2022 and 2024.

Scope 1 & 2 emissions (tonnes CO2e)

ARYZTA's commitment to tackling climate change is reflected in its Climate Transition Roadmap, a comprehensive plan designed to achieve a 34% reduction in Scope 1 and 2 GHG emissions by 2028 from a 2022 baseline. While the current targets focus on these scopes and time horizon, the company's efforts are an important step towards aligning with Switzerland's long-term climate goals as outlined in the Swiss Ordinance on Climate Disclosures.

Following ARYZTA's commitment to the Science-Based Targets initiative (SBTi) in October 2023, the company dedicated 2024 to defining its Scope 1 and 2 roadmap while also establishing a Scope 3 GHG baseline inventory, a critical starting point for understanding and managing these emissions. These efforts will advance with the submission of finalized Scope 1, 2, and 3 targets and a detailed Climate Roadmap to SBTi in 2025.

The Climate Roadmap identifies key decarbonization levers across short-, medium-, and long-term horizons, including energy efficiency projects, renewable energy procurement, and sustainable logistics.

1 CO2e (carbon dioxide equivalent) standardizes all Greenhouse gases. Total footprint figures partially assured for CY2023.

² The 2024 Scope 3 inventory to be finalized by mid-2025.

ARYZTA Climate Transition Roadmap

The Climate Roadmap outlines key decarbonization levers across short-, medium-, and long-term horizons:

Climate Roadmap

Foundation & Measurement	Target Setting & Action Plan	Execution & Reduction
– Measured Scope 1, 2, and 3 emissions	– Define Scope 3 reduction targets (get SBTi-approval)	– Implement Scope 1, 2, and 3 reduction measures
– Identified decarbonization levers: Energy efficiency, renewable electricity sourcing, natural refrigerants, sustainable logistics, renewable energy generation	– Expand Renewable Energy Partnerships – Engage suppliers to develop Scope 3 roadmap	– Achieve 34% reduction in Scope 1 and 2 emissions – Expand renewable energy sourcing and optimize sustainable logistics
– Increased employees' knowledge through trainings

2023–2024	2025	2025– onwards

The Board of Directors and Sustainability Committee oversee the execution of the Climate Roadmap to ensure alignment with ARYZTA's goals and stakeholder expectations.

Key Decarbonisation Levers:

1. Energy Efficiency:

Phase 1 (2024): Site-level energy audits conducted through the Energy Excellence Programme, identifying over 200 projects to optimise energy use.
Phase 2 (2025 on): Implementation of prioritised energy efficiency projects, including equipment upgrades and refrigerant replacements.

2. Renewable Energy Procurement:

2024: Renewable electricity sourcing in Switzerland, Ireland, France, UK, and partially in Hungary and Germany through supplier contracts and small-scale Power Purchase Agreements (PPAs). Finalized Power Purchase Agreements (PPAs) for Spain and Hungary scheduled to commence in 2025. Additionally, engaged an energy consultant to develop a Group-wide PPA initiative, with the project started in 2024 and set to go-to-market to find suitable projects in 2025.
2025–2027: Expansion of Power Purchase Agreements (PPAs) and virtual PPAs (vPPAs) across major facilities.
2028: Goal of significant renewable energy adoption across global operations.

3. Renewable Energy Generation:

2022: On-site photovoltaic installation in Spain
2024–2025: Pilot additional renewable energy projects to assess feasibility.
2026–2028: Full-scale implementation of additional renewable energy generation technologies, including solar installations.

4. Natural Refrigerants:

2024: Surveys to identify refrigerant hotspots at facilities.
2025–2027: Replacement of high Global Warming Potential refrigerants with sustainable alternatives.

5. Sustainable Logistics:

2024–2025: Introduction of eco-driving programs and route optimization to reduce transportation emissions.
2024-2026: Additional electric trucks and passenger vehicles brought into use
2026: Adoption of biofuels and other sustainable fuel sources.

Carbon emissions

Source: 2023 Figures * Non-audited figures

Extending Responsibility to Scope 3

ARYZTA recognizes that its responsibility extends beyond its own operations. In 2024, the company implemented an externally reviewed methodology to measure Scope 3 emissions, which account for 86% of its total 2023 carbon footprint. For 2023, ARYZTA conducted a comprehensive Scope 3 Greenhouse gas (GHG) emissions inventory, adhering to the Greenhouse gas Protocol's Corporate Value Chain (Scope 3) Standard, Scope 3 Calculation Guidance, and the draft Land Sector and Removals Guidance. Additionally, the assessment aligned with the Science Based Targets initiative's Forest, Land, and Agriculture (SBTi FLAG) Guidance. Upon evaluating all 15 Scope 3 categories, 11 were identified as pertinent to ARYZTA's operations. Notably, approximately 44% of ARYZTA's supply chain emissions are related to FLAG impacts.

The analysis of these 11 categories revealed:

~64% come from purchased goods and services, particularly agricultural materials.
~7% stem from inbound and outbound logistics.
~6% arise from energy consumption during customer processing of products.
~3% from the disposal, recycling, or treatment of products sold by the company at the end of their life.

– ~6% others

Other Scope 3 categories that were found to be relevant for ARYZTA and were assessed are: Category 2 - Capital Goods, Category 3 - Fuel- and energy-related activities not included in Scope 1 or Scope 2, Category 5 – Waste generated in operations, Category 6 – Business travel, Category 7 – Employee commuting,Category 14 – Franchises.

Emissions from purchased goods and services represent a significant share of ARYZTA's Scope 3 footprint, primarily driven by raw materials for in-house production (63%) and finished products sourced from third parties (28%). Given the high volume of wheat flour used, it remains a major contributor to overall emissions. To mitigate this impact, ARYZTA launched regenerative agriculture initiatives in 2023, supporting farmers in transitioning to sustainable practices. These efforts not only enhance soil health and biodiversity but also contribute to reducing both corporate and product-level carbon footprints (see page 129-133 for more details).

Animal-based ingredients, such as butter and meat, while used in smaller volumes, have a disproportionately high Greenhouse gas intensity, contributing emissions comparable to wheat flour. These products present a key opportunity for future Scope 3 reductions through sourcing efficiencies and the potential integration of lower-carbon, plant-based alternatives. A similar emissions pattern is observed in finished products from third-party suppliers, where items containing meat and dairy have the highest climate impact. By prioritizing sustainable ingredient sourcing and supplier engagement, ARYZTA continues to drive meaningful progress in decarbonizing its supply chain. ARYZTA's work in regenerative agriculture, through partnerships such as IP-SUISSE and Klim, which have a leading role in this category have the potential to reduce and remove significant carbon emissions in the supply chain. As of 2024, ARYZTA's partnership with Klim3 has facilitated the removal of 8,000 tonnes of CO2e. These initiatives, coupled with packaging innovations and supplier collaborations, will inform the company's Scope 3 decarbonization roadmap, set for release in 2025.

3 Platform: Encourages sustainable farming practices and climate certifications.

Optimizing Energy and Transportation: A Commitment to Efficiency

Maximizing Energy Efficiency: Compressor Focus

Figure 1: Cooling systems and compressors

As part of ARYZTA's Energy Excellence Program, teams identified significant opportunities to optimize compressed air systems across various sites. By analysing compressor motor types, sizing air receivers, and balancing system capacity with demand, ARYZTA uncovered potential energy and GHG savings at several facilities. Many of these solutions also offered excellent financial paybacks. The roll-out of these projects will be based on financial viability.

However, implementing changes to these critical systems, responsible for cooling, warming, freezing, and equipment controls, presents a unique challenge. To avoid disruptions to production and customer service, teams carefully planned upgrades to align with operational schedules. This focused effort ensures that ARYZTA continues to deliver on its sustainability commitments without compromising operational excellence.

At ARYZTA's Eisleben bakery in Germany, a new oven line was installed, reducing GHG emissions by approximately 30% compared to the previous system. This initiative demonstrates how operational efficiency and environmental impact reduction can go hand in hand.

Expanding Efficiency Beyond the Bakery

ARYZTA understands that its environmental responsibility extends beyond its bakeries. In 2024, ARYZTA's German Food Service Business (AFS Germany) identified and implemented innovative solutions to reduce transport-related emissions and optimise logistics operations, demonstrating a clear commitment to sustainability.

Under the motto "Mehr Raum, weniger CO2, More Loading Capacity, Less CO2," AFS Germany enhanced transport efficiency by introducing long semi-trailers, increasing pallet capacity by 10% per trip (from 33 to 36 pallets). This reduced the annual number of trips per truck by 24, cutting CO2 emissions by 10% and saving over 8 tonnes of CO2 per vehicle each year.

To further drive efficiency, drivers received eco-driving training, now embedded in ARYZTA's Driver Manual, ensuring sustained emissions reductions. These initiatives reinforce ARYZTA's commitment to sustainable logistics and climate protection.

Trucks efficiency

~1 kg CO2 Reduced Per Pallet
Optimized packing and loading techniques 8 MT
CO2 Reduced Per Vehicle Yearly Improved route planning and fuel efficiency
24 Fewer Routes Per Vehicle Yearly Enhanced logistics coordination and load optimization

Driver Bernd, an enthusiastic participant in the initiative, highlighted its impact on both sustainability and operational efficiency. Inspired by its success, AFS Germany plans to expand the program further in 2025, incorporating more long semi-trailers into its fleet to amplify environmental benefits.

Through these transportation innovations, ARYZTA exemplifies how efficiency and sustainability go hand in hand. These initiatives not only minimise environmental impact but also reflect ARYZTA's dedication to building a sustainable future while delivering moments of joy to its stakeholders.

Figure 2: Our new German delivery trucks, reducing emissions

Water Conservation

Water is essential to ARYZTA's operations, from sourcing raw materials to maintaining food safety. In 2024, ARYZTA conducted a comprehensive water risk assessment using the World Resources Institute's "Aqueduct Water Risk Atlas" to evaluate current and projected risks over the next five years. The analysis revealed that all except one of ARYZTA's 26 manufacturing sites are classified as medium or low risk. By 2030, the assessment indicated the potential for up to 5 manufacturing sites to be in high or very high water risk areas.

Recognising the importance of safeguarding water resources, ARYZTA launched its Water Conservation Programme in 2024, aiming to reduce non-product-related water use, which includes all water used on-site except for water added to products during baking, by 10% by 2028 (from a 2023 baseline). This initiative reinforces ARYZTA's commitment to responsible water management and long-term sustainability. In 2024, ARYZTA achieved a 5% reduction in non-product related water use compared to its 2023 baseline, making significant progress toward its 2028 target.

Key initiatives in 2024 included:

Workshops: On-site sessions led by external experts uncovered water-saving opportunities.
"Play Book": A guide to standardize best practices for water efficiency across facilities.
Community of Practice: A platform for sharing insights on conservation strategies.
Enhanced Wastewater Management: Improved sampling and treatment systems ensure sustainable discharge.

ARYZTA focused on cooling systems and cleaning processes, optimizing water use while maintaining high hygiene standards. These efforts reflect ARYZTA's commitment to addressing water stress and building resilience across its operations.

Non-product related water consumed per tonne of product produced (m3/tonnes)

Figure 3: Air cooling systems

Minimizing Food Waste: Closing the Loop on Sustainability

Food waste is a critical environmental challenge, contributing to significant GHG emissions and inefficient use of resources. Addressing this issue is central to ARYZTA's commitment to "Baking Joy, Sustaining Tomorrow". In 2024, ARYZTA achieved an 8% reduction in food waste compared to its 2022 baseline, progressing steadily toward its goal of a 20% reduction by 2028.

Food Waste – Key Achievements in year 2024

1. Operational Improvements:
Material Losses Toolkit: Standardized tools and innovative strategies distributed across all bakeries.
Employee Training: Enhanced staff capabilities to identify waste causes and improve production quality.
Process Enhancements: Targeted improvements reduced inefficiencies and non-conformity-related waste.

2. Collaborative Partnerships:

Ireland: Partnered with FoodCloud, redistributing 15 tonnes of surplus food in 2024, equivalent to providing 36,500 meals and avoiding 35 tonnes of CO2 emissions. This reflects a doubling in the contributions compared to the previous year. Cumulatively, ARYZTA has helped redistribute 48 tonnes of food, equating to 114,000 meals and preventing 140 tonnes of CO2e emissions.
Hungary: Saved 10,100 food packages through the Munch initiative, promoting the sale of near-expiry products.
Poland: Prevented 19,870 food packages from waste via the Too Good to Go program since 2021.
3. Circular Economy Innovations:
Composting at Grange Castle Bakery (Ireland): A bioreactor converted canteen waste into compost, supporting biodiversity initiatives.

Fergus O'Sullivan, Plant Manager at Grange Castle, notes: "This is a great way of closing the loop and contributing to our biodiversity plan".

– Biogas Production at Fornetti (Hungary): Bakery by-products were processed into biogas, generating green electricity that met 8% of electricity needs for ARYZTA's two Hungarian plants.

Figure 4: Bio-reactors – creating energy from waste

The Path Forward

ARYZTA is committed to closing the loop on food waste by expanding its initiatives and driving innovation:

Scaling partnerships with food redistribution programs to ensure surplus food benefits communities in need.
Broadening circular economy projects like biogas and composting to additional facilities.
Investing in new technologies and process optimizations to reach its 2028 waste reduction target.

By embedding waste reduction into its operations and value chain, ARYZTA transforms waste into opportunity, ensuring its products nourish both people and the planet while minimizing environmental impacts. This approach embodies ARYZTA's mission to create a sustainable, joyful future.

Circular Economy Initiatives

ARYZTA's circular economy initiatives in Ireland and Hungary exemplify its commitment to sustainable resource management and environmental stewardship. By transforming waste into valuable resources, the company not only reduces its environmental footprint but also supports local ecosystems and communities. These efforts highlight ARYZTA's dedication to integrating circular economy principles across its operations, contributing to a more sustainable future.

RESPONSIBLE SOURCING & INNOVATION

ARYZTA is transforming the way it sources ingredients and develops products by embedding sustainability into every stage of its operations. From raw material procurement to delivering baked goods, ARYZTA aims to create positive impacts across the supply chain, empower farmers, and reduce its environmental footprint. By adopting innovative and sustainable practices, ARYZTA is strengthening trust among customers and contributing to long-term resilience in the food system. Sustainability is

Inside-Out Impacts: Supply chain activities, including the sustainable sourcing of cocoa, palm oil, and eggs, contribute to reducing deforestation, biodiversity loss, and labour rights concerns, such as fair working conditions and occupational safety. While child labour is a known risk in certain agricultural supply chains, ARYZTA enforces its high standards through supplier audits, certification programs, and ethical sourcing policies. These due diligence measures help ensure that ARYZTA's supply

Outside-In Risks: External pressures, such as stricter human rights due diligence laws (e.g. LkSG) and increased scrutiny from stakeholders, pose compliance and reputational risks. Failure to meet these expectations could disrupt supplier and customer

ARYZTA aims to source 25% of its wheat from regenerative agriculture by 2028. Through investments in partnerships, farmer training, and technology, ARYZTA is empowering farmers to transition toward regenerative practices while meeting consumer

Regenerative agriculture restores soil health, enhances biodiversity, and improves water retention, going beyond sustainability to actively renew ecosystems. Farmers achieve this through methods such as planting cover crops, rotating crops and minimis-

Healthy Soil

Regenerative Agriculture

Resilient Crops

Biodiversity

Water Retention

Understanding Risks in Responsible Sourcing: Inside-Out and Outside-In Perspectives

not just a business goal—it is a shared responsibility.

chain mitigates such risks effectively.

ARYZTA's Vision for 2028

ing soil disturbance.

demand for sustainable products.

relationships and impact ARYZTA's reputation.

Regenerative Agriculture – Growing the Future

Carbon Sequestration

& Reduction

Sustainable Yields

and Farmer Protability

Understanding Risks in Responsible Sourcing: Inside-Out and Outside-In Perspectives

Regenerative Agriculture – Growing the Future

ARYZTA's Vision for 2028

Key Benefits of Regenerative Agriculture:

1. Healthy Soil: Enriched with nutrients, enabling reduced fertiliser use and improving overall soil health.
1. Water Retention: Increased capacity to hold water, reducing drought impacts.
1. Biodiversity: Enhanced ecosystems, both above and below ground.
1. Resilient Crops: Better equipped to handle extreme weather.
1. Sustainable Yields and Farmer Profitability: Ensures consistent production and farmer income under challenging conditions.
1. Carbon Sequestration and Reduction: Helps the soil absorb and store carbon from the air while reducing harmful emissions, making farming more climate-friendly and sustainable.

Farmer Spotlight: Tristan Sammer (Thüringen, Germany)

For Tristan, regenerative agriculture starts with understanding the soil.

"An important tool is the spade: go out, turn the soil, smell it, observe it, and study the roots to understand what the plant truly needs", he says.

With ARYZTA's support, Tristan has:

Increased cover cropping from 50 to 200 hectares, reducing soil erosion.
Improved water retention, making his farm more resilient to droughts.
Diversified crops, strengthening ecosystems and extending harvest windows.

"If the soil holds more water, we can better navigate droughts. But this isn't achieved in one or two years, it's a process that takes time."

"We want to stabilize our farm to adapt to extreme weather and ensure it's still here in 10 years." – Tristan Sammer, Farmer

ARYZTA collaborates with Klim to support farmers in transitioning to regenerative agriculture across their entire farm ecosystem by providing expertise, technology, and financial incentives. Through this partnership, farmers receive guidance on best practices, access digital tools to measure and track environmental impact, and benefit from knowledge-sharing within the farming community. These efforts help ensure data-driven improvements and create market opportunities for sustainably grown products. By taking a structured, science-based approach, ARYZTA helps mitigate short-term risks for farmers while advancing regenerative agriculture at scale.

"With ARYZTA's commitment and long-term support, we are making significant strides in advancing regenerative agriculture. By working together, we are not only helping farmers transition to more sustainable practices but also improving soil health, enhancing biodiversity, and reducing Greenhouse gas emissions. This partnership is a strong example of how collaboration between food producers and the agricultural sector can drive meaningful environmental progress while ensuring a resilient food system for the future." – Klim Representative

Scaling Regenerative Agriculture Globally

ARYZTA is driving change one farm at a time, working with farmers and partners to integrate regenerative practices into its global supply chain. Current initiatives include:

Germany: ARYZTA collaborates with Klim to support initiatives covering nearly 8,500 hectares, removing and reducing 8,000 tonnes of CO2 emissions in 2024.
Switzerland: Over 80% of ARYZTA's Swiss products bear the "IP-SUISSE Mehl" Ladybird label, reflecting a 30-year partnership that has set a benchmark for sustainable agriculture.
Australia: ARYZTA collaborates with Allied Pinnacle and the Cool Soil Initiative to test regenerative practices.
Other Europe: Exploring segregated wheat supplies to create certified sustainable products.

Hiestand, an ARYZTA Subsidiary and IP-SUISSE: A 30-Year Regenerative Agriculture Partnership

ARYZTA's Hiestand business in Switzerland demonstrates the long-term potential of sustainable collaboration. Since 1994, Hiestand has partnered with IP-SUISSE, a leading Swiss sustainability label, to promote environmentally and socially responsible farming practices. More than 80% of ARYZTA's Swiss products now bear the "IP-SUISSE Mehl" Ladybird label, recognised by consumers as a symbol of sustainability.

"The 30-year partnership between Hiestand and IP-SUISSE is a source of pride. Since 1994, the Ladybird symbol has appeared on Hiestand's freshly baked goods, helping consumers make choices they can feel good about. This collaboration has established a benchmark for sustainable grain cultivation in Switzerland." – Andreas Stalder, IP-SUISSE President.

Switzerland's mature market for regenerative agriculture, supported by the IP-SUISSE certification process, is now serving as a model for similar supply chains in other regions.

Mass Balance vs. Segregation

ARYZTA integrates regenerative wheat into its supply chain through two main approaches:

Mass Balance vs Segregated

100% Segregated
Wheat

used in milling to produce a specific certified batch of flour

Mass Balance Approach

Certified and non-certified ingredients are mixed during shipping and manufacturing processes

Production of wheat and other crops or products

Farm ecosystem applying regenerative agriculture practices (sustained by the relevant certification)

Mass Balance: Scaling Impact and Accelerating Transition

Mass balance means mixing regenerative wheat (grown with sustainable methods) with conventional wheat during processing, while still tracking the total regenerative amount. This helps more farmers transition to regenerative farming faster without needing new storage or transport systems. It also brings immediate environmental benefits, like lower GHG₂emissions, while avoiding logistical challenges.

Segregation: Ensuring Full Traceability for the Future

Segregation means keeping regenerative wheat completely separate throughout the supply chain, ensuring full traceability from farm to product. However, this requires major investments in infrastructure (like dedicated silos and transport). Right now, it is only practical in markets with a high supply of regenerative wheat, such as Switzerland. The IP-SUISSE program shows that fully traceable regenerative sourcing is possible, but it is a long-term goal.

By leveraging mass balance as a scalable transition model and segregation as a future ambition, ARYZTA ensures both immediate progress and long-term sustainability in wheat sourcing.

Achievements, Challenges, and Opportunities

What Has Been Achieved:

1. Healthier Soil: Cover cropping and reduced tillage have activated soil biology.
1. Climate Resilience: Improved water retention reduces the risks of droughts and heavy rains.
1. Farmer Empowerment: ARYZTA's support helps farmers adopt innovative techniques without added financial risks.

Challenges:

Transitioning to regenerative practices requires a shift in mindsets and farming traditions. Many farmers are relearning how to "look under the plants" and nurture the biology of the soil. This process takes time, collaboration, and long-term investment.
Encouraging customers to choose regenerative products is critical to ensuring sustainable supply chains.

The Role of Customers in Supporting Sustainability

While ARYZTA and its partners lead the way, the transition to a fully sustainable supply chain cannot succeed without customer support. ARYZTA is actively partnering with its customers to drive demand for regenerative products and encourage sustainable practices. Every purchase of a regenerative product reinforces the need for sustainable supply chains, providing farmers with the confidence to adopt new practices.

Message to Customers:

"When you choose ARYZTA products made with sustainably sourced ingredients, whether segregated or mass balance, you support healthier soils, thriving biodiversity, and improved crop yields. Together, we can strengthen the food supply chain and create a Sustainable Future." Christophe Toitot – Chief Operations Officer

Sustainable Sourcing: Progress on Key Raw Materials

ARYZTA's commitment to sustainability extends beyond regenerative agriculture to encompass responsible sourcing, innovative packaging solutions, and a focus on improving the nutritional value of its products. By addressing global challenges such as deforestation, climate change, human rights and social equity in supply chains, ARYZTA not only meets stakeholder expectations but also delivers tangible value to its customers and partners. For more details on how these efforts align with ARYZTA's wider risk mitigation strategy, refer to the Supply Chain Due Diligence (SCDD) section of this report.

ARYZTA continues to make significant progress in sourcing key ingredients sustainably:

Certified Palm Oil: Achieved 99% certification (76% in 2023), on raw material sourced, using segregated and mass balance approaches, with a commitment to maintaining this standard annually.
Certified Cocoa Beans: Progressing toward 100% by 2026, with 74% already certified (65% in 2023), on raw material sourced, this year.
Cage-Free Eggs: Reached 82% compliance (74% in 2023) on raw material sourced, with full compliance targeted by 2026.

These milestones highlight ARYZTA's dedication to building sustainable supply chains that meet the expectations of customers, support socially and environmentally friendly food production and align with global standards.

Packaging: Balancing Necessity with Sustainability

Packaging is essential for preserving food quality and safety, ensuring products reach customers in top condition. However, its environmental impact is a growing concern. Globally, 430 million tonnes of plastic1 are produced annually, with most not recycled or reused, contributing to pollution that harms birds and marine life, particularly plankton, the foundation of the food chain.

Recycled plastic cannot be used for direct food contact due to strict safety and hygiene regulations, presenting a unique challenge in the food industry. However, ARYZTA is committed to reducing its plastic footprint by exploring sustainable alternatives for non-food-contact plastics, prioritising innovations in materials and design to enhance recyclability and minimise waste.

ARYZTA is tackling these challenges by embedding sustainability into its packaging strategy. While the global plastic production figure highlights the scale of the issue, ARYZTA is committed to doing its part by reducing virgin plastic use in its operations. The company has set ambitious targets to cut virgin plastic use by 10% by 2026 and 30% by 2028, based on a 2023 baseline of over 4,700 tonnes. Through innovation and collaboration, ARYZTA is transitioning to more sustainable materials, minimizing its environmental footprint while maintaining food safety standards.

¹ Source: https://www.un.org/sustainabledevelopment/blog/2023/08/explainer-what-is-plastic-pollution/

Key Initiatives and Achievements:

1. Reducing Plastic Thickness: ARYZTA has optimized packaging by reducing plastic thickness and introducing food-contact cardboard alternatives currently being tested in stores in Ireland, minimizing environmental impact without compromising food safety.
1. Sustainable Labels: Select sites have adopted direct printing on cardboard packaging, eliminating the need for plastic labels.
1. Shrink-Wrap Innovation: At the Grange Castle site in Ireland, shrink-wrap with 30% recycled content has been implemented, significantly reducing virgin plastic use.
1. Stretch Film Efficiency: In Eisleben, Germany, ARYZTA enhanced pallet stretch film usage, reducing material consumption by 30% while improving load stability.
1. Circular Packaging: In Germany, ARYZTA introduced reusable IFCO cases for a customer, saving 143 tonnes of cardboard, 1.6 million litres of water, and approximately 68 tonnes of CO2 in 2024.

Figure 6: IFCO reusable crates

These innovative solutions demonstrate ARYZTA's commitment to reducing environmental footprints while maintaining operational efficiency.

Responsible Sourcing: Strengthening Supply Chain Governance

In 2024, ARYZTA strengthened its supply chain governance, onboarding 77% of its targeted suppliers to SEDEX (or equivalent). These efforts have enhanced supply chain traceability, ensured compliance with international labour standards, and facilitated the identification of social and environmental risks. By leveraging SEDEX methodology, ARYZTA continues to uphold ethical, human rights and broader sustainable practices in its supply chain, advancing its commitment to responsible sourcing and transparency.

Promoting Ethical Standards in Operations

By end of 2024, SMETA audits were conducted across 196 ARYZTA supplier sites, with a target of completing 500 audits by 2028. These audits evaluated key sustainability criteria, including workplace safety, employee well-being, environmental stewardship, and human rights.

Cleaner Labels, Healthier Choices

ARYZTA is committed to improving the nutritional profile of its products. Through its "ARYZTA – Better For You" framework, the company has set a goal for 40% of all new products to meet specific nutritional criteria by 2028, based on guidelines for energy, fat, sugar, salt, fiber, and protein content. Additionally, products are categorized by the absence of Artificial Colours, Artificial Flavours, GMO, and Hydrogenated Fats, reflecting ARYZTA's commitment to clean label principles.

In 2024, ARYZTA conducted a detailed assessment of both new and existing products using this methodology. This review highlighted opportunities to further enhance the nutritional value of its offerings and align new product launches with the "Better For You" framework. The 2024 results with 49% of new product introductions classified as "Better for You", demonstrate ARYZTA's progress and its focus on healthier, cleaner food options that meet consumer expectations.

Food Safety: A Core Pillar of Responsible Sourcing and Innovation

ARYZTA places food safety at the forefront of its operations, recognising it as fundamental to its promise of quality and customer trust. In 2024, the company reinforced this commitment through the Global Food Safety Week, which carried the theme "To Be Prepared for the Unexpected." This initiative engaged employees across all bakery businesses and extended to key suppliers and customers. Highlights included interactive workshops and awareness campaigns centred on vital principles such as:

Standing Together for Food Safety
Food Safety First, Quality Always: ZERO Food Safety Incidents Is Our Goal
Do Not Dismiss a Near Miss: See It, Fix It, Report It & Prevent It!

A key event of the year was a two-day workshop at the Grodzisk site in Poland, where ARYZTA's Food Safety and Quality Assurance (FSQA) and Health, Safety, and Environment (HSE) leads collaborated to strengthen a unified safety culture. With "safety is everyone's responsibility" as its guiding message, the workshop included Train-the-Trainer sessions to empower local teams at all sites with the tools to sustain ARYZTA's high standards.

ARYZTA's vision is to be a trusted industry leader in food safety and quality, striving for zero incidents under the motto "Safety First, Quality Always." The FSQA roadmap for 2025–2027 focuses on compliance, continuous improvement, and an ingrained culture of safety across the organisation.

Through proactive risk assessments, partnerships with external research bodies, and the use of emerging risk tools, ARYZTA evaluates potential hazards and fortifies its supply chain. Preventative controls, such as allergen management, hygienic plant design, rigorous cleaning systems, and foreign-body reduction initiatives, underpin this approach.

ARYZTA's manufacturing sites worldwide are now certified for food safety under GFSI-recognized standards.
In 2024, several of ARYZTA's warehouses and logistics operations also achieved food safety certifications, with further expansion planned for 2025.
There were no public food safety recalls reported in 2024.
Additionally, customer and consumer complaints decreased by over 10% compared to 2023, including a notable reduction in complaints related to foreign bodies.

The message "Food Safety & Quality is Everyone's Responsibility" is reinforced through formal reviews with senior management and extended to upstream suppliers, driving accountability throughout the value chain. By embedding food safety deeply into its operations, ARYZTA continues to meet the highest standards, ensuring trust and quality in every product.

ARYZTA recognises that its success is deeply connected to the dedication of its employees and the strength of the communities it serves. By fostering a supportive, inclusive, and safe environment and building meaningful connections through community partnerships, ARYZTA demonstrates its commitment to creating long-term positive impact. These efforts reflect ARYZTA's sustainability strategy and its mission to deliver shared value across its operations and beyond.

Valuing Employees: A Thriving Workforce

ARYZTA's employees are the backbone of its operations, and their well-being, development, and engagement are key to ensuring long-term success. In 2024, ARYZTA strengthened its Global Code of Conduct, reinforcing its core values of care, integrity, equity, and inclusivity. The Code emphasises:

Diversity, equity, and inclusion as drivers of long-term success. See Appendix 3.
Health, safety, and mental well-being as operational priorities.
Professional growth and recognition to support employee engagement.

To deliver on its Human Capital goal, in 2024, employees across the organisation completed an average of 11 training hours per employee in areas such as leadership, sustainability, compliance, and occupational safety, fostering a culture of continuous learning. The goal is to ensure every employee receives an average of 24 hours of training annually by 2028.

Understanding Risks in People and Communities: Inside-Out and Outside-In Perspectives

Inside-Out Impacts: ARYZTA's activities impact employees and local communities through workforce health and safety, well-being, and fair labour practices. Ensuring safe working conditions and providing adequate training for employees are key priorities for ARYZTA. The company enhances its positive impacts and addresses any negative ones through employee well-being programs, training initiatives, and responsible labour policies.

Outside-In Risks: External factors such as evolving labour laws (e.g., Swiss CO, LkSG), demographic shifts, and talent shortages create compliance and operational risks. Failure to adapt could affect workforce retention, regulatory compliance, and stakeholder trust. ARYZTA mitigates these risks by aligning with global labour standards, enhancing employee engagement, and investing in skills development.

Fostering Sustainability Expertise

ARYZTA places a strong emphasis on equipping its employees with the knowledge and tools necessary to drive sustainability initiatives across the organisation. In 2024, the company implemented targeted training programmes designed to enhance employees' understanding of sustainability issues and empower them to integrate these principles into their daily work. Key efforts included:

Specialised Training for Sustainability Leaders: Employees received training on Scope 1, 2 and 3 emissions calculation methodologies, ensuring alignment with international standards and ARYZTA's broader climate goals.
Peer Learning and Best Practices Exchange: Through access to an external best practice sharing platform, employees were able to learn from industry leaders, gain insights into regulatory challenges, and explore innovative solutions.
Sustainability Knowledge Sharing: Resources and workshops provided employees across all levels with actionable insights into sustainability, fostering a culture of continuous learning and innovation.

By investing in capability building, ARYZTA ensures that its workforce is not only equipped to meet today's challenges but also prepared to lead the organisation towards a more sustainable future.

Vision: Roadmap to health & safety excellence

Lift our culture	Compliance	Risk Prevention

– Foster shopfloor engagement – Implement Behaviour-Based	– Local compliance scorecards active	– Risk reduction plans: 100% in place
Safety	– Transparent incident reporting (100% compliance)	– Unsafe situations resolved promptly

Workplace Safety: A Core Priority

In 2024, ARYZTA expanded its safety initiatives with targeted workshops that not only educated employees on compliance but also empowered them to identify risks proactively. This was complemented by the introduction of innovative safety technologies, leading to a 28% reduction in the Total Recordable Incident Rate (TRIR) relative to 2023. Continuous improvement remains a cornerstone of ARYZTA's safety culture, with plans to reduce incident rates further in 2025.

Figure 7: Automatic wheel-locking

Key actions taken to foster a culture of safety included:

Alignment with Code of Conduct and Sustainability Policy: ARYZTA's Code of Conduct and Sustainability Policy emphasize the company's dedication to ethical practices, environmental stewardship, and social responsibility. These guiding documents outline standards for health and safety, environmental management, and ethical business conduct, underscoring ARYZTA's commitment to fostering a safe and sustainable workplace.
Life Saving Rules Policy: This policy addressed high-risk activities such as electrical hazards, working at heights, and confined spaces. These guidelines provided a robust framework for accountability, vigilance, and proactive safety measures across the organisation.
Advanced Safety Technologies: Swiss and French facilities implemented cutting-edge technologies, such as person-detection systems for forklift operations. These systems feature innovative warning functions that minimise risks of accidents between forklifts and personnel. Additionally, automatic wheel-locking systems at loading bays were introduced, eliminating hazards associated with forklifts and trucks during loading operations.
Comprehensive Training Programmes: ARYZTA conducted extensive safety training and mentoring initiatives, ensuring employees and contractors were equipped to identify and mitigate risks effectively. In one business unit, an intensive training programme engaged senior leadership, operational teams, and contractors to understand risks, apply controls, and foster a supportive environment for sustaining safe behaviours. This initiative resulted in excellent employee engagement and marked improvements in safety practices.

Figure 8: Safety programme workshop Figure 9: Sustainability Workshop

ARYZTA's safety efforts extend beyond compliance, focusing on creating a culture of shared responsibility:

Employees are encouraged to take ownership of risk prevention, actively contributing to the development of safer practices.
Training workshops not only enhance technical safety skills but also empower employees to prioritise safety and compliance in their daily roles.

These initiatives exemplify ARYZTA's commitment to fostering a resilient, safety-conscious workforce. By combining innovative technologies, rigorous training, and a safety-first culture, ARYZTA ensures its people are protected while advancing its mission to "Baking Joy, Sustaining Tomorrow."

Promoting Ethical Workplaces and Employee Well-being

ARYZTA ensures a responsible and ethical workplace with fair, safe, and dignified conditions.

Integrates social and ethical standards through SEDEX (Supplier Ethical Data Exchange) assessments.
Achieved an average SEDEX management score of 3 in 2024, aiming for 3.5 by 2028.
Assessments monitor labour conditions, health & safety, business ethics, and environmental performance.
Enhances transparency, accountability, and continuous improvement in employee welfare.

Strengthening Employee Well-Being

ARYZTA is dedicated to creating a supportive and healthy workplace for all employees.

Improves working conditions, fair treatment, and workplace safety through audits, action plans, and well-being initiatives.
In 2024, ARYZTA Poland held 24 training sessions for 213 participants, including 19 mental health workshops for 64 employees.
Training covered stress management, resilience, relaxation techniques, and handling workplace challenges (e.g., high workloads, conflicts, decision-making pressure).
Ensures compliance with global human rights and labour standards, reinforcing ARYZTA as an employer of choice.
Embeds ethical governance, prioritizing integrity, fairness, and inclusivity in the workplace.
SEDEX performance and well-being initiatives highlight commitment to workplace standards, employee engagement, and sustainable business practices.

Strengthening Transparency: Anti-Corruption practices, Whistleblower System and Awareness

ARYZTA upholds the highest ethical standards through its whistleblower hotline, managed by an independent third party. This is in addition to other routes by which whistleblower reports can be made. Available 24/7 in local languages, this independent third-party system ensures employees or stakeholders across the value chain can report concerns including corruption, anonymously without fear of retaliation. The data is closely monitored and appropriate actions taken proportionate to the circumstances.

In 2024 there were 12 notifications submitted through the independent whistleblower system, including 4 corruption cases (all relating to the same case). These reports were fully resolved by the time of this reports publication, reinforcing ARYZTAs commitment to zero tolerance, accountability, and trust.

ARYZTA ensures that all workers in our supply chain have access to an anonymous grievance mechanism. The whistleblower system covers also our supplier workers, allowing them to report labour rights, unethical practices or corruption concerns, in their local language. No reports were received in 2024 specifically related to the supply chain.

In 2024, all of ARYZTA's senior management confirmed through signed individual declarations their awareness of ARYZTA's policy on anti-bribery and corruption as stated in the Employee Code of Conduct. They also confirmed that these principles were communicated to employees within their respective areas of responsibility and appropriate training and awareness is in place.

Promoting Equity: Collective Bargaining

In 2024, ARYZTA continued to engage with unions and employee representatives across its businesses, ensuring fair terms and conditions amidst global economic challenges. Transparent dialogue and mutual respect have allowed ARYZTA to address concerns constructively while maintaining operational efficiency.

Figure 12: ARYZTA Malaysia - Celebrating World Environmental Day

Figure 13: ARYZTA Singapore - Mangrove restoration project

Figure 15: ARYZTA Germany - charity race

Figure 16: ARYZTA France, Coup de Pates, biodiversity and bees

Strengthening Communities: Local Engagement and Global Impact

ARYZTA actively champions initiatives that support the social and environmental well-being of the communities it serves, recognising that thriving communities are vital to a sustainable future. In 2024, employees around the globe engaged in impactful activities that fostered meaningful connections and delivered positive change, including:

World Environment Day Asia Pacific (APAC): Under the theme "Our Land, Our Future. We are #GenerationRestoration," employees participated in tree planting, sustainability quizzes, and educational games to raise awareness about environmental challenges and ARYZTA's commitment to restoration.
Mangrove Restoration (Singapore): Employees joined a mangrove tree planting programme, enhancing biodiversity and coastal resilience. This hands-on effort included guided tours to emphasise the critical role of mangroves in ecosystem protection and combating deforestation.
Sports and Well-Being Events: Initiatives like the ARYZTA Poland Volleyball Championship and Strzegom Half Marathon promoted health, teamwork, and community spirit, drawing participation from over 500 employees, their families, and local residents.
Charity and Volunteering: ARYZTA deepened its community impact in 2024 for Ronald McDonald House Charities and participated several volunteering initiatives across its operational regions. These activities, which range from supporting local food banks to hosting open days for the public, reinforce ARYZTA's role as a responsible corporate citizen.

Supporting Families Through Charity

ARYZTA's partnership with Ronald McDonald House underscores its commitment to giving back to communities. In 2024, employees across several countries raised funds and volunteered their time to support the organisation, helping families stay together during challenging times.

Empowering Communities Through Baking Skills

ARYZTA collaborates with Brot gegen Not, a charity dedicated to supporting communities in developing countries by teaching baking skills. This initiative equips individuals with vocational expertise, enabling them to establish micro-bakeries and create sustainable livelihoods, furthering ARYZTA's mission to "Baking Joy, Sustaining Tomorrow."

These activities not only strengthen ARYZTA's ties with the communities it operates in but also reflect its holistic approach to building a sustainable and inclusive future.

Looking Ahead: A Shared Commitment

ARYZTA's focus on its people and communities is integral to its sustainability journey. By prioritising employee well-being, fostering safety, and actively engaging with local communities, ARYZTA is creating a culture of shared responsibility and continuous improvement. Moving forward the company remains committed to empowering its employees and strengthening its communities as it works to "Baking Joy, Sustaining Tomorrow."

Appendix 1: Summary reference for Swiss Civil Code, Part Five: The Code of Obligations Art. 964a et seqq.

AREAS COVERED	DETAILS	LOCATION
Business model		Markets and Business Model section, pg. 9–11
Environmental matters (including	Policies	Environmental Efficiency section, pg. 113–127
CO2 goals) (See Appendix 8 for more details)	Implemented measures and an assessment of their effectiveness	Environmental Efficiency section, pg. 113–127
	Main risks within operations and supply chain, risk management, and due diligence	Risk management section, pg. 106-109
	Key Performance Indicators	Environmental Efficiency section, pg. 113–127 Appendix 3: Metrics and Targets, pg. 148-151
Social issues	Policies	Appendix 2: Policies and Frameworks, pg. 146-147
	Implemented measures and an assessment of their effectiveness	People and Communities section, pg. 138-144
	Main risks within operations and supply chain, risk management, and due diligence	Risk management section, pg. 106-109
	Key Performance Indicators	Metrics and Targets to be developed
Employee related issues	Policies	Appendix 2: Policies and Frameworks, pg. 146–147, People and Communities section, pg. 138-144
	Implement measures and an assessment of their effectiveness	People and Communities section, pg. 138-144
	Main risks within operations and supply chain , risk management, and due diligence	People and Communities section, pg. 138-144
	Key Performance Indicators	Appendix 3: Metrics and Targets, pg. 148-151
Respect for human rights including modern slavery and	Policies	People and Communities section, pg. 138-144
child labour	Implement measures and an assessment of their effectiveness	People and Communities section, pg. 138-144
	Main risks within operations and supply chain , risk management, and due diligence	Risk Management section, pg. 106–109, People and Communities section, pg. 138-144
	Key Performance Indicators	Appendix 3: Metrics and Targets, pg. 148-151
Combatting corruption	Policies	Governance section, pg. 110–112
	Implement measures and an assessment of their effectiveness	Governance section, pg. 110–112
	Main risks within operations and supply chain , risk management, and due diligence	Governance section, pg. 110–112
	Key Performance Indicators	Appendix 3: Metrics and Targets, pg. 148-151

Appendix 2: Policies and Frameworks

ARYZTA has developed comprehensive policies and frameworks to support and guide decision-making and operations at both Group and local levels. These policies establish clear commitments to sustainable practices, define the company's approach to managing environmental and social risks, and provide guidance on ethical conduct and responsible business practices.

Key policies include:

Sustainability Policy: It covers ARYZTA's commitments to protecting the environment, ensuring the safety and wellbeing of employees and workers within the supply chain as well the development of employees to meet today`s and future needs.
Employee Code of Conduct: It promotes integrity, fairness, and compliance, prohibiting unethical behaviour while fostering responsibility, respect, and transparency in all business interactions.
Supplier Code of Conduct: It emphasizes ethical practices, including the prohibition of bribery and corruption, respect for human rights, environmental responsibility, and maintaining health, safety, and quality standards.
Whistleblower Policy ARYZTA's Whistleblower Policy allows confidential and anonymous reporting of unethical behavior, including corruption. Managed by an independent third party, it applies to all employees, contractors, and suppliers, ensuring reports are handled professionally with zero tolerance for misconduct.
Data Protection Policy: ARYZTA's Data Protection Policy ensures compliance with GDPR and other data laws, safeguarding personal data of employees, customers, and suppliers, while upholding privacy and legal standards.
Sustainable Sourcing Policy for Palm Oil: This policy outlines ARYZTA's commitment to sourcing palm oil that is produced without contributing to deforestation or harming biodiversity, ensuring responsible environmental and social practices.
Sustainable Sourcing Policy for Cocoa Beans: This policy details ARYZTA's dedication to procuring cocoa beans that are sustainably grown, emphasizing ethical labour practices and environmental stewardship in the supply chain.
Sustainable Sourcing Policy for Eggs: This policy describes ARYZTA's approach to sourcing eggs from suppliers that adhere to high standards of animal welfare and sustainable farming practices.
Sustainable Sourcing Policy for Packaging: It explains ARYZTA's strategy to utilize packaging materials that are environmentally friendly, focusing on recyclability and the reduction of environmental impact.
Sustainable Sourcing Policy for Nuts & Seeds: It outlines ARYZTA's commitment to sourcing nuts and seeds from suppliers who practice sustainable agriculture, ensuring traceability and responsible sourcing.

These policies are publicly available and can be accessed on ARYZTA's Policies page. https://www.aryzta.com/aryzta-policies/#code-of-conduct https://www.aryzta.com/aryzta-policies/#sustainability-sourcing Not publicly available.

– Food Safety Policy: This policy covers ingredient sourcing, production processes, packaging, storage, distribution, employee training and hygiene, supplier standards, cleanliness and sanitation, traceability, regulatory compliance, and fostering a proactive food safety culture to ensure the safety, quality, and integrity of products.

As part of its due diligence process, ARYZTA conducted a full review of its governance policies in 2023 to ensure alignment with evolving ESG-related laws and regulations. This review was initiated and overseen by the Board and led by the Governance, Nomination & Sustainability Committee. The process included a rigorous assessment, gap analysis, and validation by both internal stakeholders and external independent advisors.

ARYZTA recognises that strong sustainability governance is fundamental to maintaining alignment with key stakeholders, creating long-term value, and contributing to a more sustainable future. The company remains fully committed to upholding the highest standards of governance and transparency in all business operations, particularly as it navigates the evolving sustainability landscape.

Performance Monitoring and Reporting

ARYZTA has established robust systems for monitoring and reporting sustainability performance. Key performance indicators (KPIs) are tracked regularly to measure progress toward sustainability goals. Internal audits and external assessments are conducted to ensure the accuracy and reliability of sustainability data, with findings published in ARYZTA's annual Sustainability Report, which provides a comprehensive overview of the company's progress, initiatives, and future commitments.

Commitment to Continuous Improvement

ARYZTA is dedicated to continuously enhancing its sustainability performance and governance practices. The company regularly reviews and updates its Sustainability Strategy and targets to align with best practices and stakeholder expectations. External expertise and industry benchmarking are leveraged to identify areas for improvement, while innovation and collaboration are encouraged to drive sustainable solutions and responsible business practices.

Appendix 3: Metrics and Targets1

Environmental Efficiency

TOPIC	KPI	UNIT	2022	2023	2024	% Change from baseline	TARGET
	Total Scope 1 and Scope 2 Market-based GHG Emissions	Tonnes CO2e	235,655	228,651	▶223,844	(5%)	34% of absolute reduction of Scope 1
	Scope 1	Tonnes CO2 e	98,144	91,840	▶91,090	(7%)	and 2 Market-based emissions by 2028
	Scope 2 Market-based	Tonnes CO2 e	137,511	136,811	▶132,754	(3%)	from a 2022 baseline
	Scope 2 Location-based	Tonnes CO2 e	101,931	103,853	▶105,150	3%
	Scope 3, Indirect supply chain emissions	Tonnes CO2 e	N/A	1,363,455	N/A	N/A	N/A
	Category 1: Purchased Goods and Services	Tonnes CO2 e	N/A	▶1,016,989 N/A		N/A	N/A
Climate Change &	Category 2: Capital Goods	Tonnes CO2 e	N/A	▶20,084	N/A	N/A	N/A
GHG Emissions	Category 3: Fuel and Energy related Activity	Tonnes CO2 e	N/A	▶36,257	N/A	N/A	N/A
	Category 10: Processing of Sold Goods	Tonnes CO2 e	N/A	▶102,894	N/A	N/A	N/A
	Other categories2	Tonnes CO2 e	N/A	187,230	N/A	N/A	N/A
	GHG Emissions Intensity – Scope 1 and 2 emissions per revenue3	Tonnes CO2 e/€m	123	104	▶102	(17%)	N/A
	Biogenic Scope 1 GHG emissions4	Tonnes CO2 e	977	812	▶1,248	28%	N/A
	Non-Kyoto GHG emissions related to refrigerants5	Tonnes CO2 e	129	23	▶159	23%	N/A
	Total Energy Consumption	MWh	656,881	652,605	▶658,3486	0%	N/A
	Renewable Energy Consumption	MWh	62,782	82,193	▶98,069	56%	N/A
	Of which self-generated	MWh	24	720	▶749	2,995%	N/A
	Non-Renewable Energy Consumption	MWh	594,099	570,412	▶560,532	(6%)	N/A
	Direct Energy Consumption	MWh	340,653	335,644	▶338,318	(1%)	N/A
	Fuel consumption from natural gas	MWh	261,766	260,548	▶260,100	(1%)	N/A
Energy	Other fuel energy sources	MWh	78,887	75,096	▶78,219	(1%)	N/A
	Indirect Energy Consumption	MWh	316,228	316,961	▶320,283	1%	N/A
	Electricity consumption	MWh	315,686	314,540	▶317,424	1%	N/A
	Heating consumption	MWh	542	605	▶927	71%	N/A
	Cooling consumption	MWh	0	1,816	▶1,932	6%7	N/A
	Steam consumption	MWh	0	0	▶0	N/A	N/A
	Energy Intensity – energy consumption per revenue3	MWh/€m	343	298	▶300	(13%)	N/A

Appendix 3: Metrics and Targets (continued)

TOPIC	KPI	UNIT	2022	2023	2024	% Change from baseline	TARGET
Water	Water efficiency: non-product water consumed/tonne produced	m3 /tonne	Measurement started in 2023	1.38	1.2	(5%)	10% reduction by 2028 from a 2023 baseline on a pro duction volume basis
Food waste	Reduction of food wasted as a percentage of raw material consumption9	%	Baseline	(8%)10	▶ 0%	(8%)	20% reduction by 2028 from a 2022 baseline on a pro duction volume basis

1 Certain numbers in this Sustainability report have been rounded up or down. There may therefore be discrepancies between the actual totals of the individual amounts in the tables and the totals shown.

2 Other Scope 3 categories that were found to be relevant for ARYZTA and were assessed are: Category 4 – Upstream transportation and distribution, Category 5 – Waste generated in operations, Category 6 – Business travel, Category 7 – Employee commuting, Category 9 – Downstream transportation and distribution, Category 12 – End-of-life treatment of sold products, Category 14 – Franchises.

3 2024 metric based on revenue reported for the 12-month period ended December 2024 and 2023 metric based on pro forma revenue for the 12-month period ended December 2023 as disclosed on page 247.

4 Biogenic emissions include GHG Emissions from Biofuels (including fuel blends), and wood pallets and are not included in Scope 1 GHG emissions.

5 Emissions from GHGs not covered by the Kyoto Protocol (e.g.: HCFC22).

6 Total energy consumption is calculated by adding up Renewable and Non-Renewable energy consumption, and then deducting energy sold (253 MWh in 2024). 7 From 2023 baseline.

8 In an effort to increase its accuracy, ARYZTA has reinforced its water reporting methodology in 2024. Consequently the 2023 figure is restated.

9 ARYZTA measures its progress on reducing food waste by calculating the share of food waste in proportion to the raw material input used in our production. Food waste includes, amongst others, scrap, nonconformity and handling damages. We aim to reduce our food waste by 20% by 2028 from the 2022 level. 10 In an effort to increase its accuracy, ARYZTA has reinforced its food waste reporting methodology in 2024. Consequently the 2023 figure is restated.

▶ Key Performance Indicators marked with a check mark have been assured by Ernst & Young LTD.

Technical note on GHG Calculations: Scope 1 and 2 emissions were calculated in line with the GHG Protocol Corporate Standards and Scope 2 Guidance. Scope 3 emissions were calculated in line with the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard and the Technical Guidance for Calculating Scope 3 Emissions.

The inventory is based on operational control consolidation methods and covers all applicable Greenhouse gases emitted (CO2, CH4, N2O, HFCs). Emission factors were sourced from recognized sources such as Department for Environment, Food & Rural Affairs, the International Energy Agency and Agri-Footprint. Global Warming Potentials according to IPCC's 4th Assessment Report or later were used.

Appendix 3: Metrics and Targets (continued)

Inspiring Innovation

TOPIC	KPI	UNIT	2023	2024	Change from baseline	TARGET
Sustainable Sourcing	Share of sustainable/regenerative flour sourcing	%	6%	7%	1 percentage point	25% share on a mass-balance basis by 2028
	Share of palm oil sourced from RSPO-certified sources in products sold	%	76%1	99%1 27% Mass balance 72% Segregated	23 percentage points	100% on a mass balance basis by 2024 100% on a segregated basis by 2026
	Share of cocoa beans from certified sources in products sold	%	65%1	74%1	9 percentage points	100% certified by 2026
	Share of eggs from cage-free sources in products sold	%	74%1	82%1	8 percentage points	100% cage-free by 2026
	Volume of virgin plastic purchased2	Tonnes	4,700	4,621	(2%)	30% reduction from a 2023 basis by 2028
Sustainable Diets and Nutrition	Share of New Product Development meeting the "ARYZTA – Better For You"criteria	%	Measurement started in 2024	49%	N/A	40% of NPD will fall into the "ARYZTA – Better For You" criteria by 2028
Supplier due Diligence	SMETA Audits: Number of audits at supplier sites since the baseline year of 2023	No.	91	196	105	200 or more of ARYZTA's supplier sites, audited by end of 2025 – and additional 300 supplier sites, audited by end of 2028

Figures for palm oil, cocoa and cage-free eggs relate to products produced by ARYZTA.
In an effort to increase its accuracy, ARYZTA has reinforced its virgin plastic reporting methodology in 2024. Consequently the 2023 figure is restated.

Appendix 3: Metrics and Targets (continued)

People and Communities

TOPIC	KPI	UNIT	2023	2024	% Change from baseline	TARGET
Health and Safety	Total Recordable Incident Rate	Rate per 1 m hrs worked	12.17	8.72	28%	50% reduction by 2028 from 2023 baseline
	Fatalities because of work related injury	No.	0	0	N/A	N/A
Human Capital Development	Share of employees with a training and development plan	%	Measurement started in 2024	47%	N/A	Each business unit will have in place training and development plans for 100% of employees, so that on average each employee receives a minimum of 3 days role-specific training annually, by 2028
Human Capital Development	Average number of days of role- specific training received by employees	No.	Measurement started in 2024	11	N/A
Ethical and Safe Workplaces	SEDEX Management Controls Score	No.	N/A	3	N/A	3.5
Anti-corruption and bribery	Convictions for violation of anti-corruption and anti bribery laws	No.	0	0 N/A N/A
	Amount of fines for violation of anti-corruption and anti bribery laws	€	0	0	N/A	N/A
	Headcount of total Employees	No.	N/A	▶8,056		N/A
	• Headcount of Employees – Permanent	No.	7,771	▶7,654		N/A
	• Headcount of Employees – Temporary	No.	N/A	▶402		N/A
	Headcount of non-Employees	No.	N/A	379		N/A
	Headcount of Employees – Female	No	2,9561	▶3,090		N/A
People and Talent	Headcount of Employees Male	No	4,8151	▶4,966		N/A
	Headcount of Employees – Europe	No.	6,7961	▶6,969		N/A
	Headcount of Employees – APAC	No.	9751	▶1,087		N/A
	Headcount of Employees – <30 years old	No.	1,1251	▶1,299		N/A
	Headcount of Employees – 30–50 years old	No.	4,1701	▶4,182		N/A
	Headcount of Employees – >50 years old	No.	2,4761	▶2,575		N/A

1 Represents the total number of permanent employees in ARYZTA at the period ended 31 December 2023. Individuals who are contracted to the Group through a third party agency are excluded from this metric.

▶ Key Performance Indicators marked with a check mark have been assured by Ernst & Young LTD.

Appendix 4: GRI Content Index

ARYZTA has reported the information cited in this GRI content index for the period 1 January 2024 through 31 December 2024 with reference to the GRI Standards.

STANDARD	DISCLOSURE	LOCATION
GRI 1	GRI 1: Foundation 2021	Applied throughout the report
GRI 2: General Disclosures 2021	2-1 Organisational details	Group structure and shareholders, pg. 39-40 Financial highlights 2024, pg. 4-5
	2-2 Entities included in the organisation's sustainability reporting	Significant subsidiaries are listed on pg. 223
	2-3 Reporting period, frequency and contact point	About this report, pg. 97
	2-4 Restatements of information	Appendix 3: Metrics and Targets, pg. 148-151
	2-5 External assurance	Ernst & Young Ltd assurance letter, pg. 160-162
	2-6 Activities, value chain and other business relationships	Markets and Business Model, pg. 9–11
	2-7 Employees	Appendix 3: Metrics and Targets, pg 148-151
	2-9 Governance structure and composition	Corporate Governance Report pg. 27–65 Governance section, pg. 110-112
	2-10 Nomination and selection of the highest governance body	Corporate Governance Report pg. 27–65 Governance section, pg. 110-112
2-11 Chair of the highest governance body 2-12 Role of the highest governance body in overseeing the management of impacts		Corporate Governance Report pg. 27–65
		Governance section, pg. 110-112
	2-13 Delegation of responsibility for managing impacts	Governance section, pg. 110-112
	2-14 Role of the highest governance body in sustainability reporting	Governance section, pg. 110-112
	2-15 Conflicts of interest	Corporate Governance Report pg. 27–65
	2-16 Communication of critical concerns	Governance section, pg. 110-112
	2-17 Collective knowledge of the highest governance body	Governance section, pg. 110-112
	2-19 Remuneration policies	Compensation report, pg. 66-87
	2-20 Process to determine remuneration	Compensation report, pg. 66-87
	2-22 Statement on sustainable development strategy	Strategy section, pg. 99–103
	2-23 Policy commitments	Appendix 2: Policies and Frameworks, pg. 146-147
	2-24 Embedding policy commitments	Appendix 2: Policies and Frameworks, pg. 146-147
	2-25 Processes to remediate negative impacts	Governance section, pg. 110-112 Our People and Communities section, pg. 138-144
	2-26 Mechanisms for seeking advice and raising concerns	Governance section, pg. 110-112 Our People and Communities section, pg. 138-144
	2-29 Approach to stakeholder engagement	Stakeholder Engagement, pg. 105
	2-30 Collective bargaining agreements	Collective Bargaining, pg. 142

Appendix 4: GRI Content Index (continued)

STANDARD	DISCLOSURE	LOCATION
GRI 3: Material Topics	3-1 Process to determine material topics	Materiality section, pg. 104
2021	3-2 List of material topics	Materiality section, pg. 104
	3-3 Management of material topics	Materiality section, pg. 104
GRI 205: Anti	3-3 Management of material topics	Governance section, pg. 110-112
corruption 2016	205-3 Confirmed incidents of corruption and actions taken	Governance section, pg. 110-112
GRI 301: Materials 2016	3-3 Management of material topics	Responsible sourcing & Innovation section – Packaging, pg. 134-135
	301-1 Materials used by weight or volume	Partial disclosure, focused on virgin plastic, Appendix 3: Metrics and Targets, pg 148-151
GRI 302: Energy 2016	3-3 Management of material topics	Environmental Efficiency – Climate change section, pg. 114-124
	302-1 Energy consumption within the organization	Appendix 3: Metrics and Targets, pg. 148-151, including technical note
	302-3 Energy intensity	Appendix 3: Metrics and Targets, pg. 148-151, including technical note
GRI 303: Water and Effluents 2018	3-3 Management of material topics	Environmental Efficiency section – Water Resources, pg. 125-126 and Appendix 3: Metrics and Targets, pg. 148- 151
GRI 305: Emissions 2016	3-3 Management of material topics	Environmental Efficiency – Climate change section, Pg. 114-124
	305-1 Direct (Scope 1) GHG emissions	Appendix 3: Metrics and Targets, pg. 148-151, including technical note
	305-2 Energy indirect (Scope 2) GHG emissions	Appendix 3: Metrics and Targets, pg. 148-151, including technical note
	305-3 Other indirect (Scope 3) GHG emissions	Appendix 3: Metrics and Targets, pg. 148-151, including technical note
	305-4 GHG emissions intensity	Appendix 3: Metrics and Targets, pg. 148-151, including technical note
GRI 306: Waste 2020	3-3 Management of material topics	Environmental Efficiency – Food waste section, Pg. 126- 127, and Appendix 3: Metrics and Targets, pg. 148-151
GRI 403: Occupational Health and Safety 2018	3-3 Management of material topics	Our people and communities section, pg. 140-141
	403-9 Work-related injuries	Appendix 3: Metrics and Targets, pg. 148-151 (Partial disclosure focused on fatalities and work related injuries)
GRI 408: Child Labor 2016	3-3 Management of material topics	Risk management – Supply Chain due diligence section, pg. 108
GRI 413: Local Communities 2016	3-3 Management of material topics	People and communities – Community section, pg. 143– 144
GRI 414: Supplier Social Assessment 2016	3-3 Management of material topics	Risk management – Supply Chain due diligence section, pg. 108 Responsible sourcing & Innovation section – pg. 135
GRI 416: Customer Health and Safety 2016	3-3 Management of material topics	Responsible sourcing & Innovation – Cleaner Labels, Healthier Choices, pg. 136 Responsible sourcing & Innovation – Food Safety section, pg. 137

Appendix 5: Organisations referenced in the report

ORGANISATION	PURPOSE/ROLE	LINK TO WEBSITE	LOCATION
Allied Pinnacle	Supplier: Provides bakery ingredients and products to support ARYZTA's operations.	https://alliedpinnacle.com/	Pg. 131
Brot Gegen Not	Charity: Supports charitable efforts to fight hunger and food insecurity.	https://brotgegennot.de/en/	Pg. 46, 49, 87, 144, 220
EcoVadis	Rating Agency: Provides sustainability ratings and insights for supply chains.	https://ecovadis.com/	Pg. 109
Ethical Trading Initiative (ETI)	Alliance of companies, non-governmental organisations and trade unions which exists to identify and promote good practice in the implementation of codes of labour practice.	https://www.ethicaltrade.org/	Pg. 108
European Union Corporate Sustainability Reporting Directive (CSRD)	Framework: European Union framework for sustainability reporting for companies operating in Europe	https://finance.ec.europa.eu/capital markets-union-and-financial-markets/ company-reporting-and-auditing/ company-reporting/corporate sustainability-reporting_en	Pg. 37, 104, 106, 107, 112
FoodCloud	NGO: Redistributes surplus food to reduce waste and tackle food insecurity.	https://food.cloud/	Pg. 126
Global Food Safety Initiative (GFSI)	NGO: The GFSI collaborates with the world's leading consumer goods companies, across borders and barriers to help ensure safe food for people everywhere.	https://mygfsi.com/	Pg. 137
Global Reporting Initiative (GRI)	NGO: Provides standards for sustainability reporting and disclosure.	https://www.globalreporting.org/	Pg. 36, 37, 96-97, 105, 152, 153, 156, 160
Greenhouse Gas Protocol (GHG Protocol)	Framework: Sets standards for Greenhouse gas accounting and reporting.	https://ghgprotocol.org/	Pg. 97, 122, 149, 156
IEA (International Energy Agency)	Research Body: Publishes energy-related insights, including the World Energy Outlook.	https://www.iea.org/	Pg. 114, 117
International Labor Organisation (ILO)	UN Agency: Promotes social justice and internationally recognised human and labour rights.	https://www.ilo.org/	Pg. 97, 107, 112
International Organisation for Standardization (ISO)	Standards Body: Develops and publishes international standards for various industries.	https://www.iso.org/home.html	Pg. 106
Intergovernmental Panel on Climate Change (IPCC)	Research Body: Provides scientific reports on climate change and its impacts.	https://www.ipcc.ch/	Pg. 114, 149, 156
IP-SUISSE	NGO: Supports sustainable agriculture practices in Switzerland.	https://www.ipsuisse.ch/	Pg. 96, 102, 117, 122, 131-133
Klim	Platform: Encourages sustainable farming practices and climate certifications.	https://www.klim.eco/en/	Pg. 100, 102, 122, 131-132, 157
Munch	Platform: Reduces food waste through a circular food redistribution model.	https://munch.eco/	Pg. 126
MSCI (Morgan Stanley Capital International)	Rating Agency: Provides ESG ratings, research, and tools for sustainable investment.	https://www.msci.com/	Pg. 109

Appendix 5: Organisations referenced in the report (continued)

Network for Greening the Financial System (NGFS)	Framework: Provides guidelines for integrating climate risks into financial systems.	https://www.ngfs.net/en	Pg. 114
Organisation for Economic Co operation and Development (OECD)	Research Body: Promotes policies to improve economic and social well-being globally.	https://www.oecd.org/	Pg. 97, 191
Ronald McDonald House Charity	Charity: Provides support to families of children undergoing medical treatment.	https://www.rmhc.ie/ https://www.mcdonalds-kinderhilfe. org/	Pg. 144
Roundtable on Sustainable Palm Oil (RSPO)	Certification Body: Develops and implements standards for sustainable palm oil production.	https://rspo.org/as-an-organisation/	Pg. 102, 150
Science Based Targets Initiative (SBTi)	Framework: Provides targets for reducing Greenhouse gas emissions in line with climate science.	https://sciencebasedtargets.org/	Pg. 92, 97, 119- 120, 122
SEDEX (Supplier Ethical Data Exchange)	Platform: Facilitates ethical supply chain management and supplier assessments.	https://www.sedex.com/	Pg. 92, 100-102, 105-106, 108, 112, 135, 141-142, 151, 157
SMETA (Sedex Members Ethical Trade Audit)	Audit Framework: Assesses compliance with ethical standards in the supply chain.	https://www.sedex.com/our-services/ smeta-audit/	Pg. 101, 102, 106, 108, 112, 135, 150, 157
Sustainalytics	Rating Agency: Offers ESG risk ratings and research for investment decision-making.	https://www.sustainalytics.com/	Pg. 109
Task Force on Climate-Related Financial Disclosures (TCFD)	Provides guidelines for reporting climate related financial risks and opportunities.	https://www.fsb-tcfd.org/	Pg. 36-37, 96-97, 100, 106, 109, 114, 159
Too Good to Go	Platform: Reduces food waste by connecting consumers with surplus food from businesses.	https://www.toogoodtogo.com/en-ie	Pg. 126
United Nations	Promotes sustainable development and global peace through various initiatives.	https://www.un.org/ sustainabledevelopment/	Pg. 97, 108, 112, 158
WBCSD (World Business Council for Sustainable Development)	NGO: Provides a platform for sustainable business practices and innovation.	https://www.wbcsd.org/	Pg. 114, 117
World Bank	Research Body: Offers financial and technical assistance for global development projects.	https://www.worldbank.org/	Pg. 114, 116
WRI (World Resources Institute)	Research Body: Conducts research on environmental and climate issues.	https://www.wri.org/ ttps://www.wri.org/research/ aqueduct-floods-methodology	Pg. 106, 114, 125

Appendix 6: Glossary

GLOSSARY TERM	DEFINITION	SOURCE
	Greenhouse gas (GHG) emissions Greenhouse gases are those gaseous constituents of the atmosphere, both natural and anthropogenic, that absorb and emit radiation at specific wavelengths within the spectrum of thermal infrared radiation emitted by the Earth's surface, the atmosphere itself, and by clouds. This property causes the greenhouse effect.	Intergovernmental Panel on Climate Change (IPCC) https://www.icc.ch/site/assets/uploads/2018/03/ wg2TARannexB.pdf
Scope 1 emissions	Emissions from operations that are owned or controlled by the reporting company.	GHG Protocol, Corporate Standard https://ghgprotocol.org/sites/default/files/standards/ ghg-protocol-revised.pdf
Scope 2 emissions	Emissions from the generation of purchased or acquired electricity, steam, heating, or cooling consumed by the reporting company.	GHG Protocol, Corporate Standard) https://ghgprotocol.org/sites/default/files/standards/ ghg-protocol-revised.pdf
Location-based emissions	A location-based method reflects the average emissions intensity of grids on which energy consumption occurs (using mostly grid-average emission factor data).	GHG Protocol, Scope 2 Guidance https://ghgprotocol.org/sites/default/files/2023-03/ Scope%202%20Guidance.pdf
Market-based emissions	A market-based method reflects emissions from electricity that companies have purposefully chosen (or their lack of choice).	GHG Protocol, Scope 2 Guidance https://ghgprotocol.org/sites/default/files/2023-03/ Scope%202%20Guidance.pdf
Scope 3 emissions	All indirect emissions (not included in scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions.	GHG Protocol, Corporate Standard https://ghgprotocol.org/sites/default/files/standards/ ghg-protocol-revised.pdf
FLAG emissions	Forest, Land and Agriculture (FLAG) emission includes the Greenhouse gases (carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O)) from land-based activities, as well as CO2 removals and storage.	GHG Protocol: Land Sector and Removals Guidance (Draft) https://ghgprotocol.org/ land-sector-and-removals-guidance
Indirect energy consumption	Purchased or acquired electricity, heat, steam and cooling supplied from outside, to the site.	Adapted from GRI Standards Glossary https:// www.globalreporting.org/publications/documents/ english/gri-standards-glossary-2022/
Direct energy consumption	Total fuel consumption within the organisation.	Adapted from GRI Standards Glossary https://www.globalreporting.org/publications/ documents/english/gri-standards-glossary-2022/
Double Materiality Assessment (DMA)	Double materiality has two dimensions: impact materiality and financial materiality. A sustainability matter meets the criterion of double materiality if it is material from the impact perspective or the financial perspective or both.	CSRD: ANNEX II Acronyms and Glossary of Terms
Mass balance sourcing	Mass balance is a sourcing method that allows for certified and non-certified ingredients to become mixed during the shipping and manufacturing processes. All major international sustainability initiatives use mass balance in one form or another.	Rainforest Alliance What is Mass Balance Sourcing? Rainforest Alliance (rainforest-alliance.org)
Segregated sourcing	Segregated sourcing is a sourcing method that requires companies to keep the ingredients purchased from a certified farm physically separated from non-certified ingredients throughout the whole supply chain. There is direct traceability.	Adapted from Rainforest Alliance What is Mass Balance Sourcing? Rainforest Alliance (rainforest-alliance.org)

Appendix 6: Glossary (continued)

GLOSSARY TERM	DEFINITION	SOURCE
Certified Cocoa	Evaluated using accepted industry standards and certification schemes, such as: • Cocoa Horizons • Rainforest Alliance • Fairtrade • CEN/ISO Other schemes may be in use across our supply base and these will also be considered.	ARYZTA Sustainable Sourcing Policy for Cocoa Beans
"ARYZTA – Better For You"	"ARYZTA – Better For You" product framework, including health, nutrition and environmental considerations meets the growing awareness and demands from consumers. ARYZTAs products are categorised based on energy, fat, sugar, salt, fibre and protein content, using an independently verifiable methodology. Additionally, products are categorized by the absence of Artificial Colours, Artificial Flavours, GMO, and Hydrogenated Fats.
Regenerative/Sustainable Agriculture	Regenerative agriculture refers to agricultural practices that contribute to humus enrichment in the soil. This stores carbon, improves soil structure and increases biodiversity in fields. In this way, the soil is regenerated and its fertility and climate resilience are improved. In addition, farmers reduce their emissions at farm level through improved management. Regenerative agriculture utilises more sustainable farming methods that protect the soil, water and emit less GHGs, whilst allowing the farmers to benefit from a fair price for their products.	Adapted from KLIM Regenerative agriculture (klim.eco)
Total Recordable Incident Rate (TRIR)	Total recordable incident rate (TRIR) is a measure of occupational health and safety based on the number of safety incidents reported against the number of workers present and the number of hours worked.	https://www.bls.gov/help/def/iirc.htm
Virgin Plastic	Virgin plastic refers to new and pristine materials that are often used to manufacture plastic products such as films and packages. The majority of these come from Hydrocarbon sources.	https://apps1.unep.org/resolutions/uploads/eia_- essential_elements-_production_consumption. pdf
Cage-free egg	Cage-free eggs are evaluated using accepted industry standards and certification schemes, such as: • Free Range • RSPCA Assured • Free-Range Organic • Cage-free Certified Other schemes may be in use across our supply base and these will also be considered.	ARYZTA Sustainable Sourcing Policy for Eggs
SEDEX Members Ethical Trade Audit (SMETA)	SMETA is one of the most widely used ethical audit formats in the world. It combines the best practices in the field of corporate social responsibility. The concept describes a methodology based on the Ethical Trading Initiative (ETI) Base Code. Audits in the SMETA format focus as much on labour conditions and occupational safety as on environmental standards and ethical business practices.	TUV Rheinland https://www.tuv.com/content-media-files/master content/services/systems/1444-tuv-rheinland sedex-audit-according-to-smeta/tuv-rheinland sedex-audit-smeta-faq-en.pdf

Appendix 7: ARYZTA's Contribution to the UN Sustainable Development Goals (SDGs)

Aligning Sustainability with Global Priorities

ARYZTA is committed to advancing sustainability across its value chain, aligning its efforts with the United Nations Sustainable Development Goals (SDGs). These 17 goals provide a universal framework for tackling global challenges related to climate change, responsible resource use, and social well-being.

Through its three sustainability pillars—Environmental Efficiency, Responsible Sourcing & Innovation, and People & Communities—ARYZTA actively contributes to a selection of SDGs highlighted below.

Appendix 8: TCFD Index table

TCFD Recommended Disclosures in Alignment with the Swiss Ordinance on Climate Disclosures

RECOMMENDATION	DISCLOSURE	LOCATION
Governance Disclose the organization's governance around	A) Describe the board's oversight of climate-related risks and opportunities.	Governance section, pg. 110-112
climate-related risks and opportunities.	B) Describe management's role in assessing and managing risks and opportunities.	Governance section, pg. 110-112 and Environmen tal Efficiency, pg. 114-115
Strategy Disclose the actual and potential impacts of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning where such information is material.	A) Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term.	Strategy & Progress section, pg. 99-103 and Environmental Efficiency section, pg. 113-127
	B) Describe the impact of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning.	Environmental Efficiency section, pg. 113-127
	C) Describe the resilience of the organisation's strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario.	Environmental Efficiency section, pg. 113-127
Risk Management Disclose how the organization identifies, assesses, and manages climate-related risks.	A) Describe the organization's processes for identifying and assessing climate-related risks.	Risk management section, pg. 106-109 and Environ mental Efficiency section, pg. 113-127
	B) Describe the organization's processes for managing climate-related risks.	Risk management section, pg. 106-109 and Environ mental Efficiency section, pg. 113-127
	C) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization's overall risk management.	Risk management section, pg. 106-109
Metrics and Targets Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is	A) Disclose the metrics used by the organization to assess climate related risks and opportunities in line with its strategy and risk management process.	Environmental Efficiency section, pg. 113-127 and Appendix 3: Metrics and Targets, pg. 148-151
material.	B) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 Greenhouse gas (GHG) emissions, and the related risks.	Environmental Efficiency section, pg. 113-127 and Appendix 3: Metrics and Targets, pg. 148-151
	C) Describe the targets used by the organization to manage climate related risks and opportunities and performance against targets.	Environmental Efficiency section, pg. 113-127 and Appendix 3: Metrics and Targets, pg. 148-151

INDEPENDENT ASSURANCE REPORT ON SELECTED SUSTAINABILITY METRICS

To the Management of

ARYZTA AG, Schlieren Zurich, 28 February 2025

We have been engaged to perform assurance procedures to provide limited assurance on selected indicators (including GHG emissions) included in ARYZTA AG's and its consolidated subsidiaries' (the Group's) Sustainability Report 2024 (the Report) for the reporting period from 1 January 2024 to 31 December 2024.

Our limited assurance engagement focused on selected indicators (including GHG emissions) presented in the Report and marked with the check mark , namely:

GRI 2-7: Employees; page 151
GRI 302-1: Total energy consumption within the organization; page 148
GRI 302-3: Energy intensity; page 148
GRI 305-1: Direct (Scope 1) GHG emissions; page 148
GRI 305-2: Energy indirect (Scope 2) GHG emissions ; page 148
GRI 305-3: Other indirect (Scope 3) GHG emissions (cat. 1, 2, 3, 10); page 148
GRI 305-4: GHG emissions intensity; page 148
Custom criteria: Reduction of food wasted as a percentage of raw material consumption; page 149

We did not perform assurance procedures on other information included in the Report, other than as described in the preceding paragraph, and accordingly, we do not express a conclusion on that information.

Applicable criteria

The Group defined as applicable criteria (applicable criteria):

Global Reporting Initiative Sustainability Reporting Standards (GRI Standards).
ARYZTA's Custom Criteria

A summary of the GRI standards is presented on the GRI homepage and the Custom Criteria is described within the Company's Sustainability Report 2024.

Inherent limitations

The accuracy and completeness of selected indicators (including GHG emissions) are subject to inherent limitations given their nature and methods for determining, calculating and estimating such data. In addition, the quantification of the non-financial matters indicators is subject to inherent uncertainty because of incomplete scientific knowledge used to determine factors related to the emissions factors and the values needed to combine e.g. emissions of different gases. Our assurance report should therefore be read in connection with ARYZTA AG's Sustainability Report 2024, its definitions and procedures on non-financial matters reporting therein.

INDEPENDENT ASSURANCE REPORT ON SELECTED SUSTAINABILITY METRICS

Responsibility of the Management

The Management is responsible for the selection of the Applicable Criteria and for the preparation and presentation, in all material respects, of the selected indicators (including GHG emissions) in accordance with the Applicable Criteria. This responsibility includes the design, implementation, and maintenance of internal control relevant to the preparation of the selected indicators that are free from material misstatement, whether due to fraud or error.

Independence and quality control

We have complied with the independence and other ethical requirements of the International Code of Ethics for Professional Accountants (including International Independence Standards) of the International Ethics Standards Board for Accountants (IESBA Code), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior.

Our firm applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Our responsibility

Our responsibility is to express a conclusion on the selected indicators (including GHG emissions) based on the evidence we have obtained.

We conducted our limited assurance engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial Information. This standard requires that we plan and perform this engagement to obtain limited assurance about whether the selected indicators (including GHG emissions) are free from material misstatement, whether due to fraud or error.

Summary of work performed

Procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. Our procedures were designed to obtain a limited level of assurance on which to base our conclusion and do not provide all the evidence that would be required to provide a reasonable level of assurance.

Although we considered management's internal controls when determining the nature and extent of our procedures, our assurance engagement was not designed to provide assurance on internal controls. Our procedures did not include testing controls or performing procedures relating to checking aggregation or calculation of data within IT systems.

INDEPENDENT ASSURANCE REPORT ON SELECTED SUSTAINABILITY METRICS

The Greenhouse Gas (GHG) quantification process is subject to scientific uncertainty, which arises because of incomplete scientific knowledge about the measurement of GHGs. Additionally, GHG procedures are subject to estimation (or measurement) uncertainty resulting from the measurement and calculation processes used to quantify emissions within the bounds of existing scientific knowledge.

Our limited assurance procedures included, amongst others, the following work:

Assessment of the suitability of the Applicable Criteria in terms of their relevance, comprehensiveness, reliability, neutrality and understandability and their consistent application
Interviews with relevant personnel to understand the business and reporting process, including the sustainability strategy, principles and management
Interviews with the Group's key personnel to understand the sustainability reporting system during the reporting period, including the process for collecting, collating and reporting the indicators ₂ Checking that the calculation criteria have been correctly applied in accordance with the methodologies outlined in the Applicable Criteria
Checking that the calculation criteria have been correctly applied in accordance with the methodologies outlined in the applicable criteria
Analytical review procedures to support the reasonableness of the data
Identifying and testing assumptions supporting calculations
Testing, on a sample basis, underlying source information to check the accuracy of the data

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our assurance conclusions.

Conclusion

Based on the procedures performed and the evidence obtained, nothing has come to our attention that causes us to believe that the selected indicators (including GHG emissions) in the Report of the Group have not been prepared, in all material respects, in accordance with the Applicable Criteria.

Olivier Mange Grace Gilewicz Executive in charge Manager

AI Terminal

Aryzta AG

818_cgr_2025-03-03_e096c2a1-2fc1-43ad-b020-d68f48be47ac.pdf

SUSTAINABILITY REPORT

PAGE Sustainability Report 2024

INTRODUCTION

BAKING JOY, SUSTAINING TOMORROW

BAKING SUSTAINABILITY INTO OUR BUSINESS

Dear Stakeholders,

ABOUT THIS REPORT

SUSTAINABILITY HIGHLIGHTS 2024

Progress on ARYZTA's ambitions under three pillars

1. Environmental Efficiency

2. Responsible Sourcing & Innovation

3. People & Communities

MATERIALITY: ALIGNING SUSTAINABILITY WITH STAKEHOLDER PRIORITIES

Materiality Matrix:

1. ENVIRONMENTAL EFFICIENCY:

2. RESPONSIBLE SOURCING & INNOVATION:

3. PEOPLE AND COMMUNITIES:

STAKEHOLDER ENGAGEMENT: INFORMING DECISION-MAKING

Oversight and Governance

Framework for Identifying Risks and Opportunities

Enterprise Risk Management Framework

Dual Perspectives on Sustainability Matters: Inside-Out and Outside-In

Supply Chain Due Diligence: Ethics and Human Rights

Climate Scenario Analysis

Strengthening Risk Resilience

Commitment to Continuous Improvement

GOVERNANCE: BUILDING A STRONG FOUNDATION FOR SUSTAINABILITY

Governance Framework and Oversight

Board Oversight

Governance, Nomination & Sustainability Committee

Audit Committee

Executive and Operational Leadership

Executive Management Committee

Sustainability Steering Committee

GOVERNANCE: BUILDING A STRONG FOUNDATION FOR SUSTAINABILITY

Sustainability Team

Sustainability Governance Model

Sustainability Governance

GOVERNANCE: BUILDING A STRONG FOUNDATION FOR SUSTAINABILITY

Anti-Bribery and Corruption: Zero Tolerance Approach

Advancing Governance: Ensuring Transparency and Integrity

Sustainability Reporting and Double Materiality Assessment (DMA)

SEDEX and SMETA Implementation

Looking Ahead

ENVIRONMENTAL EFFICIENCY

Climate Strategy and TCFD Compliance

Environmental Risks: Inside-Out and Outside-In Perspectives

Approach to Scenario Analysis

Time Horizons and Risks Evaluated

Key Findings from Scenario Analysis

Prioritised Risks

Potential Financial Implications

Reducing Greenhouse Gas Emissions

Scope 1 & 2 emissions (tonnes CO2e)

ARYZTA Climate Transition Roadmap

Climate Roadmap

1. Energy Efficiency:

2. Renewable Energy Procurement:

3. Renewable Energy Generation:

4. Natural Refrigerants:

5. Sustainable Logistics:

Carbon emissions

Extending Responsibility to Scope 3

– ~6% others

Optimizing Energy and Transportation: A Commitment to Efficiency

Expanding Efficiency Beyond the Bakery

Water Conservation

Non-product related water consumed per tonne of product produced (m3/tonnes)

Minimizing Food Waste: Closing the Loop on Sustainability

Food Waste – Key Achievements in year 2024

2. Collaborative Partnerships:

The Path Forward

Circular Economy Initiatives

RESPONSIBLE SOURCING & INNOVATION

Understanding Risks in Responsible Sourcing: Inside-Out and Outside-In Perspectives

Regenerative Agriculture – Growing the Future

ARYZTA's Vision for 2028