Kardex Holding AG

Environmental & Social Information • Mar 6, 2025

2024 Sustainability Report

Sustainability Report

• 60 Introduction
• 61 Ethical business practices
• 63 Business model
• 65 ESG organization
• 66 Double materiality assessment
• 71 Reporting on material topics

1. Introduction

The business landscape continued to face significant environmental challenges in 2024, alongside a growing global demand for responsible corporate behavior. Kardex recognizes and embraces its important role in advancing sustainable practices. This Sustainability Report offers a detailed account of the Company's commitment to its environmental, social, and governance (ESG) responsibilities. The report covers the reporting period from 1 January 2024 to 31 December 2024, aligning with the same period as the financial report. It encompasses all business segments and consolidated companies within the Kardex Group, in accordance with the Kardex Group's 2024 Annual Report (see section 4.5). Similar to the 2022 and 2023 reports, this report is oriented towards the Global Reporting Initiative (GRI) standards for sustainability reporting. It shows how Kardex addresses sustainability topics and how the Group aligns with sustainability requirements. Furthermore, the double materiality assessment in section 5.2 shows which material topics Kardex contributes to sustainable business practices.

Although the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) would only become legal requirements for Kardex starting in the reporting year 2025, Kardex' dedication to improving its annual sustainability reporting is already reflected in this report. Kardex views the CSRD not only as a legal compliance obligation, but also as an opportunity to strengthen the Company values and integrate them more deeply into the overall strategy.

In 2024, Kardex' ESG efforts focused on three key preparatory projects to establish a robust foundation for CSRD-compliant reporting in 2025:

1. Gap analysis: Kardex engaged an independent, specialized external consultancy to conduct a thorough gap analysis of its 2023

Sustainability Report against the requirements and standards of the ESBS and the Swiss ESG-reporting regulations under the Code of Obligations together with the Task Force on Climate-related Financial Disclosures (TCFD). This analysis identified suggested areas for improvement and provided detailed recommendations for tasks and investments needed to address these gaps in 2025.

• 1. Limited assurance procedures: Kardex engaged PricewaterhouseCoopers AG to obtain limited assurance on selected key performance indicators (KPIs) related to energy consumption, Greenhouse Gas (GHG) emission indicators (Scope 1 and Scope 2), waste, and work-related injuries.
• 1. Double materiality assessment according to the ESRS: A new, updated double materiality assessment was conducted in collaboration with a specialized external consultancy, aligning with the ESRS requirements. Further details on this assessment are provided in section 5.4.

The findings and recommendations for improvement from these three projects have been translated into concrete tasks and integrated into the detailed and comprehensive ESG roadmap for 2025.

To reinforce its commitment to sustainability, Kardex continues to progressively expand the scope of its reporting and enhancing transparency in both environmental and social data. Notably, during the reporting period, the initial stage of this scope extension incorporated specific metrics, including waste generation and disposal data, related to the operations at the U.S. production site. Additionally, it provides a comprehensive global overview of energy consumption covering all production sites and all office locations. Furthermore, in 2024, Kardex introduced Occupational Health and Safety reporting based on the LTIFR (Lost Time Injury Frequency

Rate), demonstrating its commitment to reducing workplace risks and promoting a safer working environment across all global operations.

Data for this report is collected from various functions across Kardex, following the established ESG Governance Model and using standardized reporting templates. For some KPIs, data is gathered through the centralized systems. All data is subject to approval based on the dualcontrol principle, ensuring accuracy and reliability.

Another key focus of Kardex' ESG efforts in 2024 was the establishment of two quantitative ESG targets. These targets were developed based on detailed analyses conducted by the responsible departments and functions, as well as on discussions and alignments with other relevant internal stakeholders. Following a thorough review, the Board of Directors approved quantitative targets for reducing CO2 emissions (see section 6.1.2) and work-related injuries (see section 6.2.1).

2. Ethical business practices

Kardex actively addresses both present and forthcoming regulatory requirements concerning ESG topics. The Board of Directors and the Group Management champion a responsible corporate culture and ethical, fair, and resilient business practices to ensure sustainable and profitable business growth.

2.1 Ethical behavior

Kardex is dedicated to fostering positive social, environmental, and cultural impacts. Kardex honors the local cultures and practices within its business markets, upholding its commitment to act responsibly and beneficially in society.

2.2 Core values and Code of Conduct

Kardex fosters an environment where positivity, enthusiasm, and a strong sense of belonging flourish. The core values of "Respect", "Team Spirit", "Reliability", and "Passion" serve as the foundation of its corporate culture. These values provide a clear direction for all activities, guiding stakeholders in their daily interactions with Kardex employees and others.

The Code of Conduct is based on the core values and establishes the essential principles of ethical behavior in a binding manner. This governs the internal interactions with employees and colleagues, as well as external relations with customers, suppliers, competitors, and various interest groups and stakeholders.

The Kardex ethical business principles, as defined in the Code of Conduct, are binding for all employees. Compliance is also required of affiliated companies and business partners. The underlying values are expressed in five basic principles:

• Employees: we treat our employees fairly and respectfully;
• Customers: we are putting customers benefit . on top of our objectives;
• · Shareholders: we are committed to sustainable performance with integrity;
• · Business partners: we strive to be a trustful, fair, and respectful business partner;
• · Society: we aspire to be a responsible corporate citizen.

The Kardex Code of Conduct

(Kardex CodeOfConduct EN (bfldr.com)) underscores Kardex' commitment to meeting the expectations of its stakeholders as a responsible corporate citizen and sets out the fundamental principles and rules for ethical business behavior. Specific regulations, guidelines, and manuals complement the Code of Conduct principles. All employees must comply with the ethical guidelines, which form an integral part of their employment conditions. The values derived from the Code of Conduct represent the "common sense" of each individual in fulfilling commitments to Kardex stakeholders.

To ensure a thorough understanding, Kardex provides all employees with comprehensive and mandatory online training on the Code of Conduct. This training module is also an essential part of the orientation for all new employees.

The Group Management leads by example, ensuring that all stakeholders are familiar with, comprehend, and abide by the Code of Conduct. This leadership is critical for Kardex to achieve long-term, sustainable business success and exemplify "good corporate citizenship".

Kardex insists on full compliance with the Code of Conduct; it makes no compromises and does not tolerate any violations.

Employees are encouraged to report potential misconduct, which can be done through internal contacts or anonymously to a central location. Kardex provides access to a whistleblowing platform (https://kardex.integrityline.com) to also enable anonymous reporting of potential misconduct. The platform is available to both internal and external parties.

Fig. 1: Guiding principles

3. Business model

Kardex provides solutions and services to increase efficiency in the storing and handling of goods and materials on a global scale. Kardex Group consists of the business units Kardex Remstar, Kardex Mlog, and Kardex AS Solutions, which are leading providers of solutions and services for automated storage, retrieval, and material handling and order fulfillment. The Kardex portfolio includes products for heavy to light goods, a modern suite of software solutions, integrated subsystems, and lifecycle services.

Kardex' solutions are designed to enhance operational safety, efficiency, and simplicity, benefiting industries such as manufacturing, distribution, and retail. By focusing on innovation, Kardex supports its customers throughout the entire lifecycle-from design to implementation and maintenance—reinforcing its role as a trusted partner in the intralogistics sector. Kardex is well positioned to grow in a market with strong fundamentals and to achieve attractive financial returns.

Kardex has defined three strategic drivers to optimize further growth and profit opportunities:

• · Geographical expansion
• Leverage existing customer base
• · Focus on target industry segments

Key geographic growth will be based on increased market penetration in regions such as North America and Asia. In addition, Kardex will leverage its strong position and large installed base in the current markets to generate additional sales with existing customers through an extended solution and service offering. To further broaden its revenue streams, Kardex will further develop existing as well as new industry segments with standard solutions or new industryspecific solutions.

Sustainability of the business model 3.1

At Kardex, sustainability is not just a policy, but a core element of the Group's DNA. The products

and systems offered are inherently sustainable. This means that Kardex' products and systems conserve energy and reduce emissions by maximizing space efficiency. They also enhance the health and safety of users through ergonomic designs, while their extended lifecycles conserve resources. For a more comprehensive explanation of this inherently sustainable approach, please see section 6.1.1.

As a result, sustainability is of central importance at Kardex, influencing interactions with customers, suppliers, and other stakeholders. Fundamental to the business model is the efficient utilization of resources. Kardex views its commitment to sustainability both as an opportunity and a foundation for future success.

3.2 Member of UN Global Compact Switzerland and Liechtenstein

Kardex' commitment to the world's largest and most significant initiative for sustainable and responsible corporate governance is evident through its ongoing membership in the United Nations Global Compact (UNGC) since 2021.

By adhering to the UNGC's ten principles, which encompass human rights, labor, environment, and anti-corruption, Kardex demonstrates its dedication to these critical areas. Each year, Kardex issues a Communication on Progress (COP) report, detailing its activities and achievements in applying these ten principles, as outlined in the 2024 Kardex Communication on Progress (https://unglobalcompact.org).

3.3 Sustainable development goals

Kardex recognizes the role of the private sector in delivering the Sustainable Development Goals (SDGs), adopted by the UN, and acknowledges its responsibility in reaching these goals. Kardex strives to operate in a sustainable manner that contributes to achieving the objectives outlined in the SDGs. The Company has identified four SDGs to which it can make a significant contribution:

Quality education and lifelong learning

Kardex actively promotes a learning culture, consistently offering comprehensive training programs to maintain and enhance the professional competencies of its employees. This commitment to ongoing development ensures continual growth and adaptation in a dynamic business environment. Furthermore, Kardex extends learning opportunities to the next generation of professionals through apprenticeships and internships.

Decent work and economic growth

Kardex prioritizes adherence to human rights as well as to environmental and social standards across its sphere of influence. Its products and systems are engineered with an ergonomic focus, promoting comfortable and safer work environments. This approach significantly reduces the risk of accidents and injuries by minimizing manual handling in tasks that could be hazardous.

Responsible consumption and production

Kardex' products and systems play a crucial role in elevating industrial infrastructure. They achieve this by optimizing spatial use, enhancing resource efficiency, and improving energy efficiency.

Climate action

Kardex is committed to reducing its emissions. Kardex' products and systems improve efficiency and decrease the necessity for extensive handling and transportation. This not only aids in reducing the carbon footprint, but also enables precise energy management at the customers' sites, furthering Kardex' commitment to climate action.

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Fig. 2: ESG Governance Model

5. Double materiality assessment

5.1 Stakeholder dialogue

Kardex actively engages with stakeholders to deepen its understanding and strengthen relationships within the markets it serves. This stakeholder dialogue not only fosters stronger connections but also plays a crucial role in

identifying and addressing potential risks and opportunities relevant to a sustainable value chain. The insights gathered from these interactions form the basis for the double materiality assessment. In addition, the perspectives and concerns of affected stakeholders regarding sustainability impacts are regularly communicated to the ESG Steering Group through periodic meetings.

		Organization of en- gagement	Purpose of engage- ment	Example of outcomes
888	Employees	▪ Townhall meetings · Cultural Committee initiatives ▪ Engagement sur- veys · Training programs · Two-way commu- nication system	· Incorporating employ- ees' perceptions and experiences ▪ Promoting a safe workplace and learn- ing culture	▪ Updates to internal policies · Development of improvement and action plans · Management com- munications
	Customers	· Customer lifecycle services · Customer satisfac- tion surveys ▪ Timely response to customer inquiries	▪ Enhancing customer experience and satis- faction ▪ Understanding cus- tomer needs and ex- pectations ▪ Building trust and maintaining strong re- lationships	· Enhancements to products and ser- vices ▪ Adjustment of marketing strate- gies
	Suppliers	· Supplier due dili- gence, incl. risk as- sessments	· Compliance with the Code of Conduct · Promoting responsible sourcing · Protecting human rights	· Informed selection of suppliers

Shareholders	Regular reports I General meetings 트	· Providing comprehen- sive and transparent communication ▪ Keeping stakeholders informed about pro- gress, performance, and key developments	▪ Regular publication of the Annual Re- port ▪ The principles of corporate govern- ance are encapsu- lated in the Arti- cles of Association and the Organiza- tional Regulations
Business partners	· Collaborative initia- tives ▪ Knowledge ex- change · Business partner due diligence	· Strengthening long- term partnerships · Compliance with the Code of Conduct	▪ co-developed solu- tions that enhance product offerings and business growth
Investors	▪ ESG performance ratings ▪ Investor calls, sur- veys, and emails Regular investor updates	▪ Understanding expec- tations to sustainabil- ity · Enhancing transpar- ency	▪ Strategies for en- hancing ESG rat- ings ▪ Responding to in- vestor inquiries

5.2 Double materiality assessment

At the core of Kardex' strategy for prioritizing its ESG initiatives is the "double materiality assessment". This approach evaluates the impact and relevance of material topics from two perspectives:

• 1. The relevance of Kardex' business activities for the economy, environment, and society (inside-out = impact materiality)
• 1. The relevance of external factors for Kardex' long-term business success (outside-in = financial materiality)

Drawing from the stakeholder dialogue outlined in section 5.1, and informed by internal business and external environmental analyses, the ESG Steering Group conducted the materiality assessment in 2022. This process was integral to achieving transparent and standardized sustainability reporting. Within this context, material topics were consolidated to identify and assess those most relevant to Kardex, evaluating their relevance for the Company's sustainable development. A thorough list of potential sustainability topics was compiled and scrutinized. These topics were then categorized into priority levels 1, 2, and 3, based on the impact of Kardex' business activities on the economy, environment, and society.

Fig. 3: Double materiality matrix

5.3 Primary risks related to material sustainability topics

The Board of Directors and Group Management of Kardex consider risk management a central and integral part of the organization's strategic management. Kardex conducts appropriate and systematic risk analyses at least once a year to be able to identify, assess, and avoid potential and actual negative impacts at an early stage. Based on the findings, Kardex implements targeted measures to efficiently mitigate and remedy identified risks. The effectiveness of these actions is regularly reviewed and continuously improved in line with the Company's sustainability strategy and commitments.

Following the non-financial reporting requirements of the Swiss Code of Obligations, Kardex evaluates its primary risks associated to human rights, environmental matters, social issues, employee related issues, and combatting corruption as follows:

Energy use and CO2 footprint: By regularly monitoring and diligently managing its energy use, Kardex aims to mitigate the market risk associated with fluctuations in energy prices. These fluctuations can have a significant impact on operating expenses. Shareholders increasingly factor in climate-related risks when making investment decisions. This results in financial and reputational risks for Kardex.

Sustainable products and systems: In light of the expanding awareness and demand for sustainable products and services, Kardex recognizes a significant opportunity to meet this growing market trend. At the same time, this also entails navigating various market, brand, innovation and technology risks. The less innovative Kardex' products and systems are in terms of sustainability, while retaining the same functionality and marketable price, the greater the risk exposure.

Occupational health and safety: The most immediate risk for Kardex is the occurrence of workplace accidents and injuries. Not only do accidents cause harm to employees, but they can also lead to lost productivity, increased insurance costs, and potential legal liabilities. Such incidents can also damage Kardex' reputation, both internally among employees and among external stakeholders.

Recruitment and talent development / employer of choice: Recruitment and talent development are critical components of maintaining competitiveness and driving long-term success. Failure to attract high-quality candidates can hinder Kardex' ability to innovate, meet strategic objectives, and maintain a competitive edge in the market. High fluctuations can be costly for Kardex, leading to increased recruitment and training expenses and loss of institutional knowledge. Rapid technological advancements and evolving market demands can lead to skills shortages and talent gaps within the Company. Failure to address these gaps through effective recruitment and talent development strategies can result in decreased productivity, increased fluctuations, and lost opportunities for growth.

Compliance and governance: Fraud and corruption pose a certain risk to Kardex, potentially affecting its operations, reputation, and financial stability. While the objective corruption risk exposure is rather limited, Kardex does not tolerate any form of bribery or corruption-without exception. Such risks can lead in particular to financial losses, legal and regulatory consequences, loss of business relations as a result of loss of reputation, and loss of investor confidence.

Respect for human rights in a responsible supply chain: Human rights are not a primary risk for Kardex as an intralogistics solution provider with production sites solely in Germany and the USA. However, as a Swiss company, Kardex is obligated to comply with conflict minerals and child labor regulations under the Swiss Code of Obligations and the requirements of the German

Supply Chain Due Diligence Act (LkSG), representing abstract legal, regulatory, and reputational risks.

5.4 Double materiality assessment according to the ESRS

To prepare for CSRD-compliant reporting in 2025, Kardex conducted a comprehensive double materiality assessment in collaboration with a specialized external consultancy, aligning with ESRS requirements.

The assessment evaluated 215 individual impacts, including 91 distinct risks and opportunities, with input from 17 individual internal stakeholders. Kardex developed a step-by-step process, rating scales, and a model for aggregation and prioritization. The starting point was the impact assessment (inside-out) of Kardex' impacts on the environment and society, building on the previously identified and assessed sustainabilityrelated impacts of Kardex' own operations and value chain. Kardex has also conducted a financial assessment (outside-in) of the sustainabilityrelated risks and opportunities Kardex is exposed to as a business. These preliminary results were further refined during a dedicated workshop led by the ESG Management Team and the ESG Steering Group. The workshop allowed for detailed discussions and adjustments, culminating in the ESG Steering Group issuing the final version of the assessment subject to Board Approval.

The double materiality assessment was approved by the Board of Directors in December 2024 and will form the foundation of Kardex' sustainability reporting for 2025 and the following years. As a result, the findings will be outlined in detail in the 2025 Sustainability Report. However, the outcomes of the new assessment are not significantly different from those in the 2022 DMA, which this report is based on.

6. Reporting on material topics

Kardex continuously expands its reporting on ESG matters. Guided by the prioritization of the 2022 double materiality matrix into priority 1, 2, and 3 topics, the Group systematically plans, implements, and executes its ESG reporting and initiatives.

For this non-financial report, the Company used its best endeavors to disclose its efforts and progress in the addressed areas. In doing so, the Company had to rely on internal and external third-party data and information, which was reviewed based on current methodologies and understandings. The information given may be subject to review and amendments.

This report delves into the material sustainability topics in greater detail. It includes comprehensive descriptions of strategies for effective management, highlights topic-specific initiatives

undertaken during the reporting period, presents key figures for the most relevant indicators, and provides, where necessary, interpretations and clarifications of these key figures.

6.1 Environmental matters

6.1.1 Sustainable products and systems (priority 1)

Kardex' product portfolio is a crucial area where the Company can generate a substantial positive impact on the environment and society.

Inherent sustainability of Kardex' products and systems

As a leading global provider of automated storage and retrieval systems, Kardex embodies the essential synergy between long-term business success and the core principles of sustainability. The inherent sustainability of Kardex' products and systems stems from several key factors:

Area and space optimization

Kardex' products and systems offer compact, high-density solutions that significantly save floor space compared to conventional racks and shelving. Depending on the specific product or system, space savings range from 65% to 85%. This reduction not only lessens the environmental footprint, but also reduces energy use and, consequently, CO2 emissions.

Energy efficiency

Designed for optimal energy efficiency, Kardex' products and systems incorporate innovative technologies and optimized routing to reduce energy needs for transportation. Features such as standby modes and optimized operational power consumption further enhance the energy efficiency of Kardex' products and systems.

Resource optimization

Kardex' products and systems streamline processes, leading to improved resource management. Precise inventory management helps avoid understocking and reduces waste due to overstocking.

Lifecycle sustainability

Kardex' products and systems are of the highest quality and are designed to stay current through upgrades and modernization over their entire service life. This results in significantly longer lifecycles compared to many competitors' products.

Adaptability and scalability

Kardex ensures that its products and systems are adaptable to its customers' evolving needs. This adaptability helps minimize resource strain and waste during scaling operations.

Recyclability

Predominantly composed of recyclable materials, Kardex' products and systems allow for an efficient decommissioning process. Kardex offers the service of decommissioning products or systems and then reutilizing or recycling them.

Carbon footprint reduction

Kardex is committed to reducing travel-related CO2 emissions. One contributing factor in achieving this goal is to offer remote diagnostics, remote services, and increasingly, preventive maintenance. This approach significantly reduces the need for ad hoc on-site service interventions, saving considerable travel mileage.

Ergonomics

Kardex' products and systems are meticulously crafted, adhering to the goods-to-person principle with a robust emphasis on ergonomics. This approach is instrumental in safeguarding the well-being of order pickers by ensuring the delivery of goods at an ergonomically optimal height.

Overall, Kardex' diverse solution portfolio helps customers tap into their sustainability potential, aligning with the Company's commitment to creating a healthier, more sustainable future.

Product safety

Recognizing that warehouses are challenging environments despite stringent safety protocols, Kardex places great importance on product safety. Health and safety in user operation are central to its product development strategy. The Kardex technology team is dedicated to continually assessing operational risks and integrating innovative solutions to enhance the existing product range. The products undergo rigorous testing for safety compliance, adhering to country-specific regulations. Many of the automated storage and retrieval systems meet the highest international standards, including ISO 9001, ISO 14001, ISO 50001, and ISO 45001, ensuring a maximum level of safety during operation.

To further ensure safe operation, Kardex provides customers with detailed safety instructions and warnings. Kardex is also committed to promoting operational awareness and offers comprehensive, customized training programs. Kardex' trainers, certified as "Certified Industrial Trainers" by the Industrial Training Association (ITA), undergo regular advanced training in didactics and methodology. The training options range from on-site to virtual formats, and Kardex is continuously expanding its e-learning offerings, all complying with local regulations.

Kardex product development: Stage gate process

The Kardex product development process is characterized by a stage gate methodology. This process ensures that progression from one stage to the next is contingent upon meeting specific, predefined criteria at each gate. These criteria outline the milestones to be attained in each phase. A key benefit of this stage gate approach is its facilitation of seamless integration of ESG and sustainability considerations into every stage of the product development journey.

The process is structured as follows:

Idea assessment: The feasibility, market potential, and sustainability aspects of innovative ideas are identified for Kardex' products and systems.

Ideation study: A preliminary evaluation of the proposed ideas begins, focusing on a high-level assessment of each idea's sustainability advantages and challenges. This includes examining how well they align with Kardex' strategic goals and objectives. Following this assessment, a selection of the most viable ideas is formulated into a shortlist.

Proof of concept: A comprehensive business case for each proposed product is created. This requires a thorough analysis of environmental benefits, societal impacts, and governance issues related to each idea. The business case should also explore the potential market demand for more sustainable products and assess how these innovations could improve Kardex' environmental impact.

Product development: The design of the new product is advanced, ensuring the integration of sustainable materials and energy-efficient technologies. This stage includes initiating tests and gathering stakeholder feedback, particularly on the product's sustainability features.

Industrialization and localization: This step focuses on evaluating the sustainability of the supply chain and assessing the efficiency of manufacturing processes in terms of energy and material use. Additionally, this step involves customizing the product for various markets to meet local standards and regulations.

Scaling of sales: An effective communication campaign is developed that not only promotes the product, but also emphasizes its ESG/sustainability attributes, particularly during the launch phase. This approach aims to resonate with a growing market segment that values sustainability.

6.1.2 Energy use and CO2 footprint (priority 1)

Energy use and CO2 emissions are key topics for Kardex. The Company is committed to regularly monitoring, managing, and reducing its energy consumption.

Quantitative target

In December 2024, the Board of Directors approved quantitative target to "achieve a 15– 20% reduction in CO2 emissions (Scope 1) at the Bellheim location within 5 years, compared to the 2023 production output as baseline", starting in 2025.

Transformation concept of Bellheim

In a further demonstration of its commitment to lowering CO2 emissions, Kardex has developed a transformation concept for its Bellheim, Germany, production site. This includes a thorough energy assessment by external experts, pinpointing major energy consumers and implementing corrective actions. This transformation concept currently includes four initiatives: Photovoltaic system, Project "Inspire", Project "Collab", and the replacement of the existing paintline. Each of these initiatives underscores the Company's commitment to renewable energy and sustainability.

Installation of a photovoltaic system at the Bellheim production site in Germany

In 2024, as part of its strategy to reduce its environmental footprint and contribute to climate protection, Kardex initiated the installation of the photovoltaic system (PV) on the roof of the new Hall 16 "Southpoint" at the Bellheim production site in Germany. The PV system, with a total output of 792 kWp, is expected to meet approximately 20% of the site's electricity needs, generating around 780'000 kWh annually. The photovoltaic system is scheduled to become operational in 2025.

Fig. 5: Photovoltaic system at the Bellheim production site, Germany

Project "Inspire" Bellheim

As part of the transformation concept for the Bellheim production site, Kardex is replacing the old administration building with a new, energyefficient structure, scheduled for completion in 2026. A key feature of the new building will be the replacement of gas heating with an energyefficient heat pump system, projected to reduce 39 tCO2eq (tons of CO2 equivalent) annually.

This initiative aligns with Kardex' broader strategy to enhance energy efficiency, reduce CO2 emissions, and achieve long-term environmental objectives, while providing a modern, sustainable work environment for its employees.

Fig. 6: Project "Inspire" Bellheim

Project "Collab" Bellheim

As part of the ongoing development at the Bellheim production site in Germany, Kardex is planning to renovate the existing development and training center, including the replacement of the current gas-fired air heating system with an energy-efficient heat pump system. This upgrade is expected to reduce approximately 20 tCO2eq annually. This project is scheduled for completion and occupancy by 2027.

Replacement of the existing paintline

From 2025 to 2028, Kardex will gradually replace the old powder coating paintline at the Bellheim production site in Germany with a new, more energy-efficient facility. While the exact savings potential is still being determined at the current planning stage, a reduction in CO2 emissions of at least 15% is anticipated. Based on the 2023 production output, this reduction would correspond to a savings of approximately 100 tCO2eq annually.

Transformation concept of Neuburg

Building on the blueprint of the Bellheim production site, Kardex has identified significant potential to minimize CO2 emissions at the Neuburg production site in Germany. Currently, the site benefits from CO2-neutral green electricity and heating provided by renewable energy from a local wood chip system. Kardex is committed to further reducing energy consumption through targeted energy-saving projects and increased selfgenerated energy. A comprehensive energy assessment and the development of a corrective action plan are planned for 2025, reinforcing Kardex' dedication to sustainability and its ongoing efforts to reduce its environmental footprint.

Certification

Approximately 65% of Kardex' total facility energy use is covered by the international energy management standard ISO 50001, with two of its three German production sites being certified.

In 2024, Kardex Produktion Deutschland GmbH underwent a comprehensive recertification audit, conducted by DEKRA auditors at the Neuburg and Bellheim production sites, as well as at Kardex Software GmbH in Rülzheim, all three sites being located in Germany. In December 2023, a DIN EN 16247-1 energy audit at Kardex Mlog identified opportunities for enhanced optimization.

Electric mobility initiative

Since 2022, Kardex has been actively championing the transition to electric mobility, with a dedicated focus on supporting this transformative shift. The commitment extends to substantial investments in the development of charging infrastructure, in particular at the German production sites.

In 2024, Kardex Mlog in Neuenstadt, Germany, successfully installed additional 10 alternating current (AC) charging stations and two direct current (DC) fast-charging stations, further supporting the shift toward electric mobility. This brings the site's total to 25 AC and two DC charging stations, which currently maintain a high occupancy rate. To accommodate future demand, Kardex has provisions for five additional stations and plans for a potential third charging park. Importantly, most of these charging facilities are also accessible to external visitors, emphasizing Kardex' contribution to broader sustainability goals. Moreover, Kardex subsidizes the installation of private wall boxes for its employees.

Fig. 7: Charging stations in Neuenstadt, Germany Source: Heiko Fritze, Heilbronner Stimme GmbH

In alignment with its dedication to responsible practices, Kardex' locations and entities have conducted evaluations of the usage data pertaining to the company car fleet and the existing infrastructure in different countries. Based on this comprehensive assessment, Kardex has made the strategic decision to progressively replace the company car fleet with electric vehicles in the coming years.

As a part of this transformative shift, Kardex has revised its Company Car Policy, incorporating measures and guidelines that support and encourage the use of electric vehicles. This policy revision underscores the Company's commitment to reducing the CO2 footprint and contributing to a cleaner and more sustainable future.

Remote diagnostic

Along with the various initiatives started at the production sites, Kardex hopes to achieve additional environmental benefits with its Connect -Remote Support. In 2024, Kardex Connect - Remote Support delivered significant environmental benefits by saving approximately 71'000 kilometers of travel in Germany, equating to around 807 kilometers per supported customer and approximately 11 tons in CO2 emissions. This achievement, driven by the remote resolution of service requests, highlights Kardex' deep commitment to sustainability by reducing CO2 emissions and enhancing operational efficiency. By minimizing the need for on-site visits, Kardex Connect supports greener, more resource-efficient operations. This initiative is a key part of Kardex' ongoing efforts to integrate sustainability into its business practices, while improving customer service and reducing the Company's environmental footprint. This initiative will be further supported and analyzed during 2025.

KPIs: Extension of scope in 2024

During the reporting period, Kardex expanded the scope and enhanced the transparency of its environmental data. Energy use and CO2 emission data was collected for all production sites and all

office locations, compared to only production sites in 2023.

In 2024, Kardex' total energy consumption amounted to 25'635 MWh, with natural gas, primarily used for heating, accounting for 44% of this figure. Compared to the 2023 reporting scope, which included only production sites, energy consumption recorded an increase of 5% due to higher production output. An additional factor contributing to this increase is the growing adoption of e-mobility. Energy consumption at office locations accounted for approximately 10% of the total facility energy consumption in 2024.

Fuel consumption of the car fleet of the U.S. production site has in 2024 been included in the overall scope. The data reveals a modest shift towards higher gasoline consumption in place of diesel, while the total fuel consumption has remained consistent.

Kardex actively seeks alternatives to fossil fuels. Kardex consistently supports sustainability by sourcing 100% renewable electricity for all German production sites.

The CO> emissions calculation adheres to the internationally recognized "Corporate Accounting and Reporting Standard" set by the Greenhouse Gas Protocol Initiative (GHG Protocol):

Scope 1 emissions encompass the consumption of fuels and other fossil energy sources at Kardex-owned or leased facilities and Company vehicles associated to the production sites.

Scope 2 emissions are derived from the measured consumption of electricity and district heating at Kardex-owned or leased facilities and Company electric vehicles associated to the production sites.

In 2024, Scope 2 emissions increased due to the expanded use of district heating at the Neuburg production site, which in 2023 was only used for

a portion of the facility. Kardex plans to monitor and report Scope 3 emissions in 2025.

6.1.3 Material consumption and recycling (priority 2)

Kardex systematically evaluates the materials used in its products, with a focus on the proportion of low-pollutant, recyclable materials. The "Kardex Shuttle 500 HSD", a central product in the portfolio, serves as a reference unit, with steel making up 97% of its weight. Packaging is primarily composed of wood (93%), while metal, paper, and plastic make up smaller portions.

In line with sustainability objectives to optimize resource use and reduce its CO2 footprint, Kardex has launched the Shuttle EVO project. This initiative focuses on redesigning the Vertical Lift Module (VLM) housing to improve resource efficiency, achieving a reduction of up to 1'000 kg of steel per unit, thereby reducing the environmental impact by limiting the required resources and also reduce CO2emissions for transportation.

6.1.4 Waste and disposal (priority 2)

Kardex already practices good waste management and aims to further these achievements. The Company has designated waste managers at each production site to oversee proper waste disposal and recycling, adhering to legal standards and best practices. Kardex engages exclusively with certified waste disposal firms, ensuring compliance with environmental regulations. Notably, two of the three German production sites hold ISO 14001 certification.

All waste and recycling data from German production sites are meticulously tracked using a centralized environmental, health, and safety IT system. During the reporting period, Kardex expanded its environmental data reporting by including waste generation and disposal data also from the U.S. production site. Office waste, being relatively minor, is excluded from these figures.

99% of the waste generated at the production sites is non-hazardous, with 91% thereof being recycled. During the reporting period, 4% of the total waste was landfilled at the U.S. production site. The hazardous waste generated at the production sites decreased from 124 tons reported in 2023 to 44 tons in the current reporting period, with 68% of the waste being successfully recycled.

Kardex also aids customers in reducing shipping waste by minimizing packaging. The Group utilizes 99.5% recyclable materials, such as singleuse pallets, wooden crates, and cardboard boxes. Larger Kardex Mlog installations are typically delivered without packaging.

6.1.5 Water and effluents (priority 3)

The production facilities account for the majority of water consumption. Kardex is continuously implementing new technologies and strategies to reduce water use. These locations remain the focal point for future conservation efforts. Water consumption in 2024 amounted to 11'879 m³, showing an immaterial increase compared to the previous year. This growth is largely attributable to higher production activity, alongside improvements in data consistency and reporting quality across the Company.

6.1.6 Eco-friendly supply and value chain (priority 3)

Reducing the environmental impact of Kardex' operations is achievable through the pursuit of an eco-friendly supply and value chain. Embracing a local supply base not only strengthens the regional economy but also fosters stronger relationships and trust with suppliers. A combination of a regional/local supply base and rigorous, compliant, and strategically oriented supplier management cultivates a robust supply chain and minimizes risk exposure. Kardex aims to find a good balance between using local suppliers with short transport distances and more distant suppliers who can meet Kardex' needs for higher production capacity. Through comprehensive

supplier assessments and audits, Kardex establishes strategic supplier partnerships based on solid cooperation. This collaboration is integral to developing holistic, eco-friendly solutions, and processes.

Extension of scope in 2024

The environmental data presented below is expressed in absolute values and reflects the extended reporting scope in 2024 ("ext. scope"). This extension includes the following additional data, compared to 2023:

• · Energy consumption data from office locations globally
• · Fuel consumption data from the car fleet at the U.S. production site
• Waste generation and disposal data from the U.S. production site.

To facilitate a comparison, the 2024 key figures are shown in two columns: extended scope ("ext. scope") and "scope 2023". The scope 2023 figures are based on the previous year scope, therefore allowing the previous year's values to be compared with the same scope values for the reporting year.

Key figures per million net revenues

2023 (+/-%)3
5.5 -7%
n. a. n. a.
-5% 31.6
14.8 1%
-15% 5.2

1 According to GHG Protocol (Scope 2 Guidance.odf)

² Location-based approach not applied in 2023.

3 Comparison based on 2023 scope.

Environmental data¹

		2024 (ext. scope)	2024 (scope 2023)	2023	(+/-%)
CO2 emissions (market-based approach)	tCO2eg	4.563	4'046	3.859	5%
CO2 emissions (location-based approach)	tCO2eq	6'296	5'841	n. a.	n. a.
Scope 1	tCO2eq	3'643	3'471	3'410	2%
Combustibles	tCO2eq	2'274	2'118	2'025
Fuels	tCO2eq	1.369	1.353	1.386
Scope 2 (market-based approach)	tCO2eq	920	575	449	28%
Electricity	tCO2eq	880	538	441
District heating	tCO2eq	40	37	8
Scope 2 (location-based approach)	tCO2eq	2'653	2'370	n.a.	n. a.
Electricity	tCO2eq	2'613	2'333	n. a.
District heating	tCO2eq	40	37	n. a.
Total energy consumption2	MWh	25'635	23'637	22'184	7%
Electricity	MWh	7'707	6.589	6'334
Fuels (car fleet)3
Diesel	MWh	4'692	4'692	5'208
Petrol	MWh	457	398	1
Heat
Natural gas	MWh	11'386	10'591	10'362
District heating	MWh	1'392	1'367	279
Propane	MWh	1		n. a.
Water consumption4	m3	11'879	11'879	10'413	14%
Total waste5	tons	4'045	3'500	3'644	-4%
Non-hazardous waste	tons	4'001	3.456	3'520
To incineration	tons	199	199	134
To landfill	tons	181	2
To recycling	tons	3'621	3.255	3.386
Hazardous waste	tons	44	44	124
To incineration	tons	14	14	2
To landfill	tons			82
To recycling	tons	30	30	40

↑ Energy consumption data is prepared with reference to GRI 302-1: Energy 2016, Greenhouse indicators (Scope 1 + 2) – GRI 305-11305-2: Emissions 2016, and waste - GPl 306-5: Waste 2020.
² In 2024, electricity and heat data was collected for all Kardex-owned or leased facilities and company elect

duction sites, while in 2023, data was collected only for the production sites.

3 In 2024, car fleet fuel consumption data was collected for all production sites, while in 2023 only for German production sites.

4 The increase in water consumption is largely attriby, alongside improvements in data consistency and reporting quality across the Company.
§ Waste data was collected for all production sites, while in 2023 only for German production sites.

6.2 Social matters

6.2.1 Occupational, Health and Safety (priority 1)

OHS stands for Qccupational, Health and Safety. Kardex is deeply committed to health and safety, striving to provide employees worldwide with the safest working conditions in all activities. This commitment is underlined by a strong focus on preventive measures, regular safety assessments, and the continuous development of a safety-first culture throughout the Company.

Quantitative target

In December 2024, the Board of Directors approved a quantitative target to "reduce the Lost Time Injury Frequency Rate (LTIFR) to an average of below 10 over the next 5 years across the entire Kardex Group", starting in 2025.

OHS management systems

Kardex' OHS management systems are designed to comply with local regulations while adhering to global standards, such as ISO 45001. Kardex Remstar's German production sites in Bellheim and Neuburg are already certified, exemplifying the Company's commitment to the highest safety standards and setting a benchmark for the Group. During the reporting period, this certification covered 25% of all Kardex' employees worldwide, highlighting the Company's focus on continuous improvement, proactive safety measures, and its strong commitment to maintaining high safety standards.

The German Social Accident Insurance Institution for the woodworking and metalworking industries certifies that Mlog Logistics GmbH meets the requirements for systematic and effective occupational safety and health for "Systematic Safety" as per the industry-specific implementation of NLF/ILO-OSH 2001.

OHS structure: Introduction of a new health and safety organization

To enhance OHS, Kardex is implementing a new health and safety organization, effective in 2025. This reorganization aims to establish clear roles, improve communication, and foster collaboration across all functions. So far, the production and service entities had an OHS representative, while for administrative locations this was not always the case. From 2025 onwards, each Kardex entity will have an OHS representative responsible for overseeing safety measures, aligned with local regulations and internal policies.

The OHS representative will be supported by local health and safety delegates and safety specialists, ensuring the active implementation of safety practices across all functions. Additionally, each region will have a health and safety coordinator to assist with internal safety processes at commercial sites.

This new structure emphasizes safety as an integral part of Kardex' corporate culture and a shared responsibility at all levels of the organization.

Improved reporting

Kardex is enhancing its reporting systems to ensure greater efficiency and standardization across all regions. In the course of 2025, a centralized health and safety management platform will be fully adopted across all legal entities, integrating seamlessly with the Human Capital Management (HCM) platform. As part of Kardex' ongoing efforts to strengthen its safety culture, a mobileaccessible incident reporting system will also be introduced in 2025. This system will allow employees to promptly report accidents, hazards, near misses, or unsafe conditions, ensuring immediate response and analysis. By enabling realtime data capture, the new system strengthens the safety culture, enhances decision-making, and reduces accident risks through targeted preventive measures.

Enhanced safety measures for working at heights

Kardex is committed to enhancing employee safety through ongoing investments in comprehensive training programs and the integration of advanced safety equipment. In 2024, Kardex focused on improving safety for one of the most hazardous activities: working at height in the Life Cycle Services (LCS). As part of these efforts, preparations were made for the introduction of a battery-powered personal winch (Powered Ascender), which is set to be implemented in the first quarter of 2025. This equipment not only improves work efficiency and safety but also reduces risks during rescue operations. The Kardex Academy also accompanies these activities with dedicated training measures.

In addition to the Powered Ascender, Kardex is planning to upgrade its climbing equipment. These advancements reflect Kardex' proactive approach to accident prevention and its commitment to enhancing workplace safety.

Mitigation measures

In 2024, Kardex conducted a comprehensive analysis of work-related injuries and their root causes, aiming to identify key risk factors and implement targeted safety improvements. The analysis showed that the majority of work-related injuries involved cuts to fingers and hands. In response, Kardex promptly implemented corrective measures, including employee training, improved personal protective equipment (PPE), process adjustments, and technical improvements. Additionally, health and safety are regularly discussed as key agenda items in quarterly business review meetings, ensuring these critical issues are continuously addressed and aligned with the Company's broader business objectives.

KPIs: Introduction of the Lost Time Injury Frequency Rate (LTIFR) in 2024

To better measure the effectiveness of its occupational health and safety initiatives, Kardex introduced the Lost Time Injury Frequency Rate (LTIFR) in 2024.

LTIFR is calculated based on the number of losttime injuries among own workforce (according to ESRS). A lost-time injury refers to any work-related accident that results in an absence of one full working day or more. The total number of working hours is estimated for the average fulltime equivalent (FTE) employee, assuming a 37.5-hour working week and 40 days of annual deductions for holidays and public holidays (based on Germany).

Also in 2024, there were no fatalities, continuing the consistent safety record of previous reporting periods. In 2024, 48 work-related injuries were reported in Kardex' own workforce, resulting in an absence from work of one day or more. Two of these injuries occurred during commuting to customer sites.

In 2024, Kardex calculated its LTIFR for the first time, recording a rate of 10.8. This figure will serve as the baseline for measuring and enhancing safety performance in future reporting periods.

A fire drill at the Neuburg production site in Germany

On 13 November 2024, Kardex Neuburg hosted a unique fire safety exercise, combining professional training with the Company's commitment to safety. The drill simulated a fire in an outdoor paternoster on the Neuburg production site in Germany, with zero risk to people or animals. The exercise showcased the new fog extinguishing system, that is sponsored by Kardex. This new system was deployed to quickly and efficiently control the fire. The system's low water consumption and high extinguishing power, enabled by fine atomization and rapid cooling, proved effective in containing the fire and minimizing damage. The success of this exercise highlights the strong partnership between Kardex and the local fire department, ensuring swift, safe responses to emergencies and contributing to a safer work environment for all employees.

Fig. 8: Emergency exercise in Neuburg, Germany

6.2.2 Recruitment and talent development (priority 1) / employer of choice (priority 2)

Kardex is committed to identifying and securing skilled talent, equipped with the capabilities essential for addressing the challenges of the future.

Recruiting policy

Kardex has implemented a recruitment policy aimed at improving the efficiency, transparency, and inclusiveness of hiring processes across the Group. The vacancies are published worldwide, supporting internal career growth. Furthermore, the policy includes an internal referral program. Consistent with the Code of Conduct, Kardex' recruitment approach focuses on inclusion, diversity, and equality, aiming to attract, develop, and retain highly talented individuals from diverse backgrounds with inclusive mindsets.

Kardex Academy

In addition to offering competitive salaries, Kardex has instituted various personnel development initiatives, such as the Kardex Academy. It provides both online and in-person learning opportunities, fostering competency development at all levels. Additionally, the competency model facilitates effective and successful performance. The Kardex Academy supports ongoing skill development, offering customized learning paths for specific target groups across various levels.

To expand training opportunities, the Kardex Academy will open a new training center in Kuala Lumpur, Malaysia, in early 2025, complementing existing centers in Germany and the USA. Additionally, Kardex is launching a Coaching Network to support skill development and career advancement for employees at all levels.

Performance management process and feedback dialogue

Central to personnel development is the ongoing feedback dialogue. Constructive discussions between employees and supervisors about goals, priorities, and individual growth are integral to Kardex' annual performance management process. These discussions lead to the creation of development plans that align individual aspirations with Kardex' objectives.

Dual career model

Kardex offers a dual career model catering to employees aspiring to managerial roles as well as those aiming to become domain experts without managerial duties. This flexibility allows talents to transition between leadership and expert roles, contributing significantly to the Group's success through participation in a variable compensation plan.

Early career opportunities

Kardex follows a robust talent acquisition strategy. This includes offering early career opportunities and apprenticeship positions. Presently, Kardex is proud to employ 57 apprentices and university interns, contributing actively to a dynamic work environment.

In August 2025, Kardex will also begin offering a commercial apprenticeship program at its headquarters in Zurich, Switzerland. This program will equip apprentices with essential skills through a combination of on-the-job training and formal

education. These initiatives reflect Kardex' dedication to developing talent and supporting the long-term success of its workforce.

Two-way communication system

Kardex values open and transparent communication and has therefore implemented a two-way communication system, encouraging employees to freely express their views on work conditions. The Kardex Academy plays a crucial role in this, offering training sessions on employee rights. For addressing grievances, employees can approach their direct managers, designated People and Culture personnel, or report issues anonymously through the whistleblowing platform (https://kardex.integrityline.com), as detailed in section 2.2.

Culture Committee

The Culture Committee is an independent team at Kardex that represents all employees and leaders, covering the different geographical regions and cultures. The primary purpose of the Culture Committee is to assist and advise management in the nurturing and strengthening of organizational culture.

Its main role is to gauge employee sentiment by acting as the eyes, ears, and voice of Kardex employees and as a sounding board for leadership on a wide variety of cultural topics. Additionally, the Culture Committee assesses the maturity and effectiveness of the Guiding Principles (see section 2.2) and communicates findings and recommendations for improvement to the Group Management biannually.

In 2024, the Culture Committee held culture week workshops in West Columbia, USA, and Milan, Italy, focusing on collaboration, team spirit, and communication of the core values and the guiding principles. The workshops emphasized the importance of a strong organizational culture in fostering a motivating work environment and effective intercultural collaboration.

Freedom of association

Kardex strictly adheres to the freedom of association as outlined in the Code of Conduct. The right to freely associate and collectively bargain is actively promoted as detailed in the comprehensive, mandatory Code of Conduct online learning module (see section 2.2).

In Germany, the employees are represented by four workers councils (Betriebsräte), which are supportive in ensuring adherence to labor laws and negotiating collective agreements.

Employee engagement surveys

In line with the principle of maintaining an open dialogue, Kardex conducts anonymous online employee engagement surveys every two years, most recently in 2023. In response to feedback from the 2023 engagement surveys, Kardex has prioritized people development as a key focus area. The survey highlighted potential within the Company, prompting an enhancement of training programs and the creation of more opportunities for internal promotions, particularly for management roles. Additionally, Kardex has introduced personal development goals into the performance process, ensuring all employees have the opportunity for growth. By aligning personal growth with the Company's core values, Kardex continues to foster a supportive work environment where employees can thrive and contribute to the Company's objectives.

These engagement surveys are primarily supported by a well-established Culture Committee, which works closely with Kardex Group Management and Corporate People and Culture.

Similarly, Kardex conducts regular surveys within its functional teams to gather timely insights and drive continuous improvement.

In response to feedback from the 2023 engagement survey, Kardex has taken significant steps to strengthen customer orientation throughout the organization. During the reporting period, Kardex conducted a comprehensive assessment of customer-related inquiries and initiated a customer survey focused on sustainability. Additionally, site visits were carried out to gather direct feedback from customers, which played a key role in the expansion of solution and service offerings. This customer-centric approach ensures that Kardex continues to deliver reliable, sustainable solutions tailored to the evolving needs of its customers. By strategically leveraging customer insights and existing customer relationships, Kardex is well-positioned to drive future growth and strengthen its market presence.

Employee engagement, community involvement, and sponsorships

The KarMA Day 2024 demonstrated Kardex' commitment to corporate social responsibility and community engagement. On 27 June 2024, 80 Kardex employees participated in 17 projects across 14 locations near Rülzheim, contributing 565 hours of volunteer work to local organizations, schools, and community groups. Activities such as gardening and painting playground equipment not only supported the community, but also fostered teamwork and cross-department collaboration. This event reinforces Kardex reputation as a responsible corporate citizen with a strong focus on sustainability and employee well-being.

Sponsorships continued to play a key role in Kardex' community involvement, with support provided to local organizations such as BIS Baskets Speyer (2nd Bundesliga basketball), the Musikverein Bellheim e.V. music club, and the VFB Hochstadt 1921 e.V. football club.

Also internationally, Kardex supports local initiatives, for example the PARIHAR, an initiative by the Bengaluru City Police that helps women, children, and families in distress with counseling, protection, medical aid, legal support, and skill development. In partnership with United Way of Bengaluru, Kardex has donated sewing machines and tools to help women develop skills and achieve financial independence. This contribution highlights Kardex's commitment to supporting

sustainable communities and empowering individuals to build better futures.

KPIs

During the reporting period, Kardex employees completed over 11'300 courses. More than 2'500 employees participated in at least one course, dedicating over 36'200 hours to training, which equates to an average of almost 14 hours of internal training per employee globally. The Kardex Academy offers a catalog of over 900 courses, in addition to more than 10'000 LinkedIn Learning contents.

In 2024, 252 employees left Kardex, while 551 new talents joined. Employee turnover remained basically unchanged with 9.1 % in 2024 compared to 9.2% in 2023.

6.2.3 Diversity and equality (priority 2)

By promoting diversity and equal opportunities, Kardex is firmly committed to providing equitable and fair conditions for all employees, thus contributing to the eradication of societal discrimination. This dedication to diversity is evident in the recruitment process, which is designed to enhance diversity across various dimensions such as regional background, age, origin, gender, and culture. The selection process is grounded solely in professional and personal qualifications, ensuring a merit-based approach. Equal opportunities are also deliberately created in the internal promotion of talent.

Kardex takes its duty of care with utmost seriousness, striving to accommodate the specific needs of the workforce. This includes attention to both temporary situations like short-term injuries or maternity, as well as ongoing circumstances such as "disabilities". Accordingly, Kardex has moved away from reporting global figures for "employees with a disability", reflecting a more nuanced understanding of individual needs.

KPIs

In 2024, the proportion of females in leadership positions at Kardex stood at 20.5%, reflecting a level comparable to the Group's overall gender ratio of 21%. The Board of Directors comprised two women and four men, representing 33% female representation. This highlights Kardex' commitment to equal opportunities and permeability, demonstrating the Company's ongoing efforts to promote career advancement for all employees, regardless of gender.

6.2.4 Respect for human rights in a responsible supply chain (priority 3)

Due to Kardex' production locations in Germany and the USA and known supply chains, human rights was not identified as a major specific risk in the double materiality assessment (priority 3). Nonetheless, Kardex' global supply network plays an important role in enhancing the value and quality of the products and systems. Working with approximately 2'100 direct suppliers, including subcontractors, Kardex' supplier base reflects a diverse geographic distribution: 95% in Europe, with the remainder in Asia and the USA.

Compliance with the German Supply Chain Due Diligence Act (LkSG)

Since 1 January 2024, compliance with the German Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz or LkSG) has been mandatory for Kardex Germany GmbH and its subsidiaries. To meet these legal requirements, Kardex took the following measures in 2024:

Publication of a Policy Statement on Human Rights Strategy: Kardex outlined its commitment to upholding human rights in its operations and supply chain.

Introduction of a Code of Conduct for Business Partners: This document establishes the principles and standards Kardex expects its suppliers to follow.

Supplier commitments: Using a risk-based approach, Kardex asked relevant suppliers to irrevocably commit to adhering to the principles and standards outlined in the Kardex Code of Conduct for Business Partners for the duration of their business relationships with Kardex entities.

Risk assessment questionnaire: Taking a riskbased approach, relevant suppliers were asked to complete a questionnaire to help Kardex assess specific risks, including forced labor and the use of hazardous substances like mercury and persistent organic pollutants.

As a result of these initiatives, suppliers accounting for 80% of Kardex' global direct supply volume either committed to the principles and standards outlined in the Kardex Code of Conduct for Business Partners or demonstrated compliance through equivalent documents, such as their own codes of conduct.

Based on the risk assessments conducted through supplier questionnaires, Kardex implemented appropriate remediation measures, ranging from clarifying and educating suppliers about specific risks to terminating business relationships when necessary.

Starting January 2025, the Kardex Code of Conduct for Business Partners is a standard integral part of all new contracts and agreements through a compliance clause in Kardex' standard contract terms and general terms and conditions.

The Policy Statement on Human Rights Strategy and the Code of Conduct for Business Partners are available for download in the Sustainability Section (https://investors.kardex.com/sustainability) of the Kardex website. According to the Code of Conduct for Business Partners, Kardex expects its suppliers to adhere to legal requirements, ethical business practices, and standard requirements relating to labor, health, safety, environmental protection, and management systems. This also includes ensuring that their operations within Kardex' sphere of influence do not

adversely affect fundamental human rights, as outlined in the United Nations' Bill of Rights and the International Labor Organization's (ILO) core conventions.

Compliance with the Swiss Code of Obligations

Following conflict minerals and child labor regulations under the Swiss Code of Obligations art. 946j ff. and the Ordinance on Due Diligence on Transparency in relation to Minerals and Metals from Conflict-Affected Areas and Child Labor (DDTrO), Kardex also focused in 2024 on mitigating risks related to child labor and conflict minerals (identified as tin, tungsten, tantalum,

and gold, or "3T+G", from conflict-affected and high-risk areas (CAHRAs]). Kardex assessed the risks in a systematic and comprehensive approach based on geography (child labor risks according to UNICEF Children's Rights in the Workplace Index) and product/commodity group (conflict minerals). This assessment concluded that the import and processing quantities for conflict minerals were not reached and no reasonable suspicion of child labor could be identified, exempting Kardex from due diligence and reporting obligations.

Social data¹

			2024			2023
	Unit	Total	male (%)	female (%)	Total	male (%)	female (%)	(+/-%)
Workforce
Full-time	hc2	2'586	82%	18%	2'294	83%	17%	13%
Part-time	hc	172	27%	73%	164	30%	70%	5%
Total	hc	2'758	79%	21%	2'458	79%	21%	12%
Workforce by geographic markets
Europe	hc	2'289	79%	21%	2'086	80%	20%	10%
Americas (North, Middle, South)	hc	303	79%	21%	232	80%	20%	31%
Asia-Pacific	hc	166	75%	25%	140	76%	24%	19%
Total	hc	2'758	79%	21%	2'458	79%	21%	12%
Hires and fluctuations
Hires	hc	551	76%	23%	433	76%	24%	27%
Fluctuations	hc	252	77%	23%	226	76%	24%	12%
Management
Total leadership positions	amount	595	79%	21%	462	80%	20%	29%
Divisonal or Group Management	amount	26	85%	15%	24	87%	13%	8%
Board of Directors	amount	6	67%	33%	7	71%	29%	-14%
Training and education
Internal training hours	hours	36'200	86%	14%	23'002	83%	17%	57%
Other workforce
Apprentices / University in- terns	hc	57	70%	30%	58	76%	24%	-2%
Occupational health & safety
Fatalities	cases							0%
Injuries3	cases	48			52			-8%
LTFR		10.8			n. a.			n. a.

' Work-related injuries (Occupational Health & Safety) data is prepared with reference to GRI 403-9: Occupational Health &
Safety 2018
Inc = Headcount
In = Analy = Mall =

3 In 2024, all injuries that resulted in one day of absence from work and more than 3 days of absence from work in 2023) were reported. Moreover, the 2024 data includes temporary workers, who are classified under the ESRS as "nonemployees" within the own workforce.

For 2023, the number of injuries that resulted in one day of absence from work and more is an approximation for reference only.

63 Governance matters

6.3.1 Compliance and governance (priority 1)

Combatting corruption and anti-competitive behavior

Kardex is committed to fair competition and firmly opposes any forms of bribery or corruption. The Group holds its business partners to the same high standards, expecting adherence to legal requirements, ethical business practices, and compliance with regulations pertaining to personnel, health, safety, environmental protection, and management systems. Kardex' zero-tolerance stance on corruption, bribery, and anti-competitive behavior underpins its commitment to fostering a just society and a competitive economy.

An awareness training on anti-corruption and fair competition is integrated into the comprehensive and mandatory Code of Conduct online learning module, detailed in section 2.2.

There were no reported incidents, legal cases, or known violations related to anti-corruption, antitrust, or other anti-competitive behaviors during the reporting period. Furthermore, there were no reported violations of environmental or social laws.

Data protection and information security

Data protection and information security are a priority for Kardex and are integral to the regular training initiatives. By prioritizing these areas, Kardex safeguards the privacy of stakeholders,

including customers and employees. Each year, Kardex renews its cyber insurance coverage to safeguard its operations and mitigate potential cyber risks. In 2024 penetration tests were executed to test the effectiveness of Kardex cyber security measures.

In November 2024, Kardex issued an internal Information Security Group Policy outlining the organization's approach to protecting the confidentiality, integrity, and availability of information assets. The policy is based on a riskoriented framework to ensure robust information security practices across the organization.

At the end of 2024, Kardex Mlog achieved certification according to the ISO/IEC 27001:2022 standard for Information Security, Cybersecurity, and Privacy Protection. This certification underscores Kardex' commitment to maintaining the highest standards of information security management, safeguarding sensitive data, and protecting the privacy of our customers, employees, and partners. By adhering to this internationally recognized framework, Kardex Mlog demonstrates its dedication to continuously improving security practices, mitigating risks, and ensuring the integrity and confidentiality of information in an increasingly digital and interconnected world.

In 2024, no incidents involving data leaks, thefts, or losses of customer data were detected internally or reported by external parties or regulatory bodies.

on the 2024 selected key performance indicators in the 2024 Sustainability Report to the Board of Directors of Kardex Holding AG, Zurich

We have been engaged by Board of Directors to perform assurance procedures to provide limited assurance on the 2024 selected key performance indicators (KPIs) in the Sustainability Report 2024 (including the GHG statement) of Kardex Holding AG (or the "Company") for the period ended 31 December 2024. Our limited assurance engagement focused on the 2024 selected indicators as presented in the Sustainability Report 2024 on the pages 79 and 87.

The 2024 selected key performance indicators in the Sustainability Report 2024 (including the GHG statement) of Kardex Holding AG as per 31 December 2024 (hereby called as "selected KPIs") are the following ones:

• "Total energy consumption" table as presented in the table "Environmental data" on page 79 in the Sustainability Report 2024, including the following amounts:
  • Total energy consumption in MWH split in the following amounts:
    • Electricity in MWH
    • Diesel in MWH
    • Petrol in MWH
    • Natural gas in MWH
    • District heating in MWH
• Greenhouse Gas (GHG) emission indicators (scope 1 + 2) as presented in the table 'Environmental data' on page 79 in the Sustainability Report 2024, including the following amounts:
  • CO2 emissions (market-based approach and location-based approach) in tCO2eq
  • Scope 1 in tCO2eq including the following amounts:
    • Combustibles in tCO2eq
    • Fuels in tCO2eq
  • Scope 2 (market-based approach and location-based approach) in tCO2eq including the following amounts:
    • Electricity in tCO2eq
    • District heating in tCO2eq
• "Total waste" as presented in the table 'Environmental data' on page 79 in the Sustainability Report 2024
• Work-related injuries as presented in the row "Injuries" in the table 'Social data' in the subsection 'Occupational Health & Safety' on page 87 in the Sustainability Report 2024

The selected KPIs were prepared by the Board of Directors of Kardex Holding AG based on following criteria (the "suitable Criteria"):

• Energy consumption GRI 302-1: Energy 2016
• Greenhouse Gas (GHG) emissions indicators (scope 1 + 2) GRI 305-1/305-2: Emissions 2016
• Waste GRI 306-5: Waste 2020
• Work-related injuries (Occupational Health & Safety) GRI 403-9: Occupational Health & Safety 2018

Inherent limitations

The accuracy and completeness of the information in the Sustainability Report 2024 (including the GHG statement) are subject to inherent limitations given the nature and methods for determining, calculating and estimating such data. In addition, the quantification of the information in the Sustainability Report (including GHG statement) is subject to inherent uncertainty because of incomplete scientific knowledge used to determine factors related to the indicators and the values needed to combine e.g. emissions of different gases. Our assurance report will therefore have to be read in connection with the suitable Criteria used by Kardex Holding AG, its definitions, and procedures and on the respective pages where the above-mentioned indicators were discussed.

Board of Director's responsibility

The Board of Director of Kardex Holding AG is responsible for the preparation and presentation of the Sustainability Report 2024 (including the GHG statement) in accordance with the suitable Criteria. This responsibility includes the design, implementation and maintenance of the internal control system related to the preparation and presentation of the Sustainability Report 2024 (including the GHG statement) that is free from material misstatement, whether due to fraud or error. Furthermore, the Board of Director is responsible for the selection and application of the suitable Criteria and adequate record keeping.

Independence and quality management

We are independent of the Kardex Holding AG in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code). We have fulfilled our other ethical responsibilities in accordance with the IESBA Code, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.

PricewaterhouseCoopers AG 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.

Practitioner's responsibility

Our responsibility is to perform a limited assurance engagement and to express a conclusion on the selected KPIs in the Sustainability Report 2024 (including GHG statement). We conducted our engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) 'Assurance engagements other than audits or reviews of historical financial information' and the International Standard on Assurance Engagements 3410, Assurance Engagements on Greenhouse Gas Statements ('ISAE 3410'), issued by the International Auditing and Assurance Standards Board. Those standards require that we plan and perform our procedures to obtain limited assurance whether anything has come to our attention that causes us to believe that the selected KPIs in the Sustainability Report 2024 (including the GHG statement) were not prepared, in all material respects, in accordance with the suitable Criteria.

Based on risk and materiality considerations, we performed our procedures to obtain sufficient and appropriate assurance evidence. The procedures selected depend on the assurance practitioner's judgement. A limited assurance engagement under ISAE 3000 (Revised) and ISAE 3410 is substantially less in scope than a reasonable assurance engagement in relation to both the risk assessment procedures, including an understanding of internal control, and the procedures performed in response to the assessed risks. Consequently, the nature, timing and extent of procedures for gathering sufficient appropriate evidence are deliberately limited relative to a reasonable assurance engagement and therefore less assurance is obtained with a limited assurance engagement than for a reasonable assurance engagement.

We performed the following procedures, among others:

• Assessing the suitability in the circumstances of the Company's use of the suitable Criteria
• Evaluation of the application of Kardex guidelines;
• Site visit and management inquiry;
• Assessment of the management and reporting processes;
• Review of documentation and analysis of relevant policies and principles;
• Assessment of the key figures.

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

Conclusion

Based on the work we performed, nothing has come to our attention that causes us to believe that the selected KPIs in the Sustainability Report 2024 (including the GHG statement) of Kardex Holding AG for the period ended 31 December 2024 are not prepared, in all material respects, in accordance with the suitable Criteria.

Intended users and purpose of the report

This report is prepared for, and only for, the Board of Directors of Kardex Holding AG, and solely for the purpose of reporting to them on selected KPIs in the Sustainability Report 2024 (including the GHG statement), and no other purpose. We do not, in giving our conclusion, accept or assume responsibility (legal or otherwise) or accept liability for, or in connection with, any other purpose for which our report including the conclusion may be used, or to any other person to whom our report is shown or into whose hands it may come, and no other persons shall be entitled to rely on our conclusion.

We permit the disclosure of our report, in full only and in combination with the suitable Criteria, to enable the Board of Directors to demonstrate that they have discharged their governance responsibilities by commissioning an independent assurance report over the 2024 selected KPIs in the Sustainability Report 2024 (including the GHG statement), without assuming or accepting any responsibility or liability to any third parties on our part. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Board of Directors of Kardex Holding AG for our work or this report.

PricewaterhouseCoopers AG

Thierry Troesch Petar Lesic

Zurich, 20 February 2025

'The maintenance and integrity of Kardex Holding AG's website and its content are the responsibility of the Board of Directors; the work carried out by the assurance provider does not involve consideration of the maintenance and integrity of the Kardex Holding AG's website, accordingly, the assurance providers accept no responsibility for any changes that may have occurred to the reported selected KPIs in the Sustainability Report 2024 (including the GHG statement) or the suitable Criteria since they were initially presented on the website.