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EDAG Engineering Environmental & Social Information 2026
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Environmental & Social Information
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GROUP SUSTAINABILITY REPORT 2025
EDAG GROUP
EDAG
GROUP SUSTAINABILITY REPORT 2025
GROUP SUSTAINABILITY REPORT 2025 | 3
GROUP SUSTAINABILITY REPORT 2025
General Information 4
ESRS 2 General Disclosures 4
Environmental Information 25
ESRS E1 Climate change 25
Information in accordance with Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation) 46
ESRS E2 Pollution 51
Social Information 53
ESRS S1 Own workforce 53
Governance Information 83
ESRS G1 Business conduct 83
Annex 88
Report of the statutory auditor 103
List of Abbreviations 108
GENERAL INFORMATION
GENERAL INFORMATION
ESRS 2 GENERAL DISCLOSURES
Basic Principles
Basic Principles for the Preparation
ESRS 2 BP-1 General basis for preparation of the Sustainability Statement
This Group Sustainability Report (hereinafter referred to as Sustainability Report) has been prepared based on the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS), as applicable in accordance with Directive (EU) 2022/2464 in conjunction with Regulation (EU) 2023/2772 as standards for sustainability reporting in the EU. This also includes the information required under Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation) and the delegated acts issued in relation to this. With this Sustainability Report, the EDAG Group meets the legal requirements under German and Swiss law. This also includes its obligation to prepare an annual report on non-financial matters in accordance with Art. 964a of the Swiss Code of Obligations. Further, the Executive Management has authorized the auditing company Deloitte GmbH, Cologne (Germany) to audit the Sustainability Report, in order to obtain limited assurance. This Sustainability Report is published as a separate report and is not included in the EDAG Group's Management Report. Barring this exception, all other requirements of the CSRD and ESRS have been taken into account. As in the previous year, S1 metrics and the quantification of environmental risks and opportunities were omitted due to the postponed implementation dates under Regulation (EU) 2025/1416 (the so-called "quick-fix").
Due to the fact that the CSRD Implementation Act (CSRD-UmsG) was still not implemented in Germany in 2025, there is still no legal obligation for EDAG Engineering Group AG to apply the CSRD for the 2025 financial year. The legal framework for non-financial (group) reporting obligations established by the CSR-RUG of 2017 therefore continues to apply to EDAG Engineering Group AG for 2025.
As a consequence, EDAG Engineering Group AG – by virtue of its listing on the Frankfurt Stock Exchange as a large capital market-oriented corporation and parent company of the EDAG Group – is still obliged to provide non-financial (group) reporting in accordance with Directive (EU) 2014/95 (NFRD) for the 2025 financial year. In German law, this has been implemented in §§ 289c to 289e / §§ 315b, 315c, and § 340a para. 1a / § 340i para. 5, and § 341a para. 1a / § 341j para. 4 of the German Commercial Code (HGB). Since 2024, the EDAG Group's sustainability report has been prepared in accordance with the CSRD and ESRS as a framework within the meaning of § 289d of the German Commercial Code (HGB).
GENERAL INFORMATION | 5
The Sustainability Report takes the following ESRS standards into account (issue-specific standards of particular relevance to EDAG are highlighted in dark gray):
Cross-sectional standards
ESRS 1 General Requirements
ESRS 2 General Disclosures
Cross-sector topical standards
| Environment | Social issues | Governance |
|---|---|---|
| E1 | ||
| Climate change | S1 | |
| Own workforce | G1 | |
| Business conduct | ||
| E2 | ||
| Pollution | S2 | |
| Workers in the value chain | ||
| E3 | ||
| Water and marine resources | S3 | |
| Affected communities | ||
| E4 | ||
| Biodiversity and ecosystems | S4 | |
| Consumers and end users | ||
| E5 | ||
| Resource use and circular economy |
By applying the ESRS, this report complies with the requirements of § 289c of the German Commercial Code (HGB) in the following sections:
| Aspects of the non-financial statement in accordance with § 289c(2) of the German Commercial Code (HGB) | Section in the Group Sustainability Report |
|---|---|
| Environmental Issues | ESRS E1 Climate change |
| ESRS E2 Pollution | |
| Information in accordance with Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation) | |
| Employee Issues | ESRS S1 Own workforce |
| Social Issues | ESRS S1 Own workforce |
| Observation of Human Rights | ESRS S1 Own workforce |
| ESRS G1 Business conduct | |
| Combating Corruption and Bribery | ESRS G1 Business conduct |
GENERAL INFORMATION
The Sustainability Report has been prepared on a consolidated basis for the period from January 1, 2025 to December 31, 2025, and includes the scope of consolidation as specified in the Annual Report for 2025.
With the parent company EDAG Engineering Group AG, Arbon (Switzerland), the EDAG Group is one of the largest independent engineering service providers. With a global network of some 30 international subsidiaries, it handles projects in the fields of mobility, defense, industry, and public services in the Vehicle Engineering, Electrics/Electronics, and Production Solutions segments. The entire group of companies will hereinafter be referred to as EDAG Group or EDAG. The Sustainability Report covers our own business activities and our upstream and downstream value chain.
No important adjusting events took place after the reporting period. The EDAG Group has made no use of the option to omit certain information relating to intellectual property, know-how or results of innovation.
ESRS 2 BP-2 Disclosures in relation to specific circumstances
Time horizons
When preparing the Sustainability Report, the EDAG Group has specified the following time horizons, as defined in ESRS 1.77:
a) For the short-term time horizon: the period which the company has defined as the reporting period in its financial statements; in this case the 2025 reporting year.
b) For the medium-term time horizon: from the end of the short-term reporting period defined in (a) up to five years;
c) For the long-term time horizon: more than 5 years.
Estimates for the value chain
The parameters presented in this Sustainability Report include data on the upstream and downstream value chain, which was determined using estimates. This applies to the KPIs in the topic-specific standard E1 Climate change. The relevant KPIs for which estimates have been made for the upstream and downstream activities are presented in chapter E1 Climate change. This also includes a description of the underlying assumptions, and the resulting accuracy.
GENERAL INFORMATION | 7
Data quality
The EDAG Group has set itself the goal of maintaining and continuously improving the high standards of completeness, reliability and hence also quality of the sustainability/ESG data collected throughout the Group. To ensure that sustainability/ESG reporting uniformly covers the entire group of consolidated companies, we have defined the following quality hierarchy for the data collection process:
- Primary data: Actual data from direct measurements (on site if necessary), internal personnel data or third-party notifications. These are the preferred data sources, and have top priority
- Secondary data: Data calculated on the basis of existing information from databases (e.g. EPA, DEFRA) or adjusted data from previous periods, invoice volumes or statistics. Where no primary data is available, this type of data collection is given priority
- Estimated data: Calculations using industry-specific or scientifically based estimation techniques, or other methods expected to produce a data quality which is as reliable as possible. This may include projections based on experience or estimates. This type of data collection is used when neither primary nor secondary data is available
The basic principles, assumptions, and calculation methods for the key figures are described in the relevant topic-specific standards under the respective key figures. In the 2025 reporting year, the EDAG Group was able to calculate emissions from air travel more accurately for the first time, thus improving data quality. The methodology is described under E1-6 in the notes to Scope 3.6. The prior-year figures have not been revised, as the data calculated using the new methodology is not available for previous periods.
Disclosures stemming from other legislation or other sustainability reporting standards
In addition to the information required under the CSRD, ESRS and Article 8 of Regulation EU 2020/852 (Taxonomy Regulation), this report contains information relating to the requirements of Swiss law.
The following table contains the information that has been included on account of other legal provisions.
| Information | Legal provision |
|---|---|
| Information on combating corruption | Art. 964b of the Swiss Code of Obligations |
GENERAL INFORMATION
Sustainability Governance
ESRS 2 GOV-1 The role of the administrative, management and supervisory bodies
As a general rule, responsibility for all material sustainability-related matters in the EDAG Group lies with the Board of Directors, which in turn has delegated this responsibility to the Group Executive Management. Within the Group Executive Management, the CFO is responsible for sustainability issues and for monitoring the impacts, risks and opportunities, and for developing the necessary internal control system (ICS). In this context, he instructs the individual departments to implement the necessary measures. In its supervisory capacity, the Board of Directors is regularly informed of sustainability matters and the associated sustainability-related targets by the CFO. This also includes information on the progress of the defined sustainability goals, which are determined in consultation with the relevant experts and topic owners representing stakeholders.
The members of the Board of Directors have the knowledge and experience necessary to properly exercise the overall management of the EDAG Group and perform their supervisory duties. Further, the members of the Group Executive Management have the knowledge and experience necessary to carry out their duties properly.
The Board of Directors and the Group Executive Management possess the necessary expertise to address both the strategic and risk-related components of sustainability. The Board of Directors and the Group Executive Management have the necessary skills and expertise - acquired by taking advantage of training programs for example - relating to the impacts, risks and opportunities of the EDAG Group set out in the sections on the topic-specific standards under ESRS 2 SBM-3.
Relevant fields of competence include international strategy development and implementation know-how, IT and digitalization, legal and compliance, risk management and accounting. Their many years of experience in an international, multidisciplinary corporate environment is the foundation on which the expertise of the administrative and management bodies is built, with regard both to the above-mentioned fields of competence and to aspects of business conduct.
As of December 31, 2025, the Board of Directors and the Group Executive Management are divided into executive and non-executive members as follows, unchanged from the previous year:
GENERAL INFORMATION | 9
| Number of executive and non-executive members | Board of Directors | Group Executive Management |
|---|---|---|
| Number of executive members | 0 | 2 |
| Number of non-executive members | 5^{1} | 0 |
1 Manfred Hahl was a member of the Board of Directors until June 25, 2025 On June 25, 2025 Frank Leidenberger was elected to the Board of Directors.
On December 31, 2025, the Board of Directors comprised four male members and one female member, and the Group Executive Board comprised two male members. This results in the following percentages by gender, unchanged from the previous year:
| Gender diversity | Board of Directors | Executive Management |
|---|---|---|
| Percentage, male | 80% | 100% |
| Percentage, female | 20% | 0% |
There is no employee representation at EDAG Engineering Group level (holding level). Like in the previous year, 100 percent of the members of the Board of Directors are independent within the meaning of ESRS 2.21e), based on No. 15 of the Swiss Code of Best Practice for Corporate Governance.
ESRS 2 GOV-2 Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies
The Board of Directors meets at least six times a year. Whenever necessitated, the CFO, at regular meetings held during the financial year, reports to the Board of Directors and its committees on the implementation of due diligence obligations in the field of sustainability, and on the results and effectiveness of the strategies, measures and goals adopted. Regular meetings are held, in which the CFO is kept informed by each of the departments in direct contact with our stakeholders, and any sustainability-related action needing to be taken is identified at these.
The basic strategic direction of the EDAG Group is discussed in annual strategy meetings. Where necessary, this also includes sustainability matters. The Group Executive Management monitors implementation of the strategy. The CFO has particular responsibility for sustainability. The CFO regularly consults with the Board of Directors on transactions of significance to the Group and on the fundamental structure of the risk management process. This might also involve possible compromises with regard to the impacts, risks and opportunities if these are affected in different ways.
GENERAL INFORMATION
A list of the impacts, risks and opportunities addressed by the Board of Directors and Group Executive Management during the reporting period is included in the topic-specific standards in section ESRS 2 SBM-3.
ESRS 2 GOV-3 Integration of sustainability-related performance in incentive schemes
The members of the Board of Directors receive a fixed compensation. This is not calculated on the basis of specific sustainability-related targets and/or impacts. Nor are sustainability-related performance metrics or climate-related considerations included.
The compensation of the members of the Group Executive Management consists of a fixed compensation and a variable performance and success-based compensation ("variable compensation").
The variable compensation is based on the level of achievement of specific predefined targets for a one-year performance period. The targets can depend by at least 50 percent (i) on financial performance indicators - i.e. revenues, EBIT, net income - and by up to another 50 percent (ii) on the achievement of special projects, other company-related and/or individual target values, and also on financial key figures. In particular, goals for sustainable corporate development can also be taken into account appropriately. At the proposal of the Nomination and Compensation Committee, the Board of Directors is responsible for the selection and weighting of target categories at its discretion.
The level of the variable compensation is determined by the Board of Directors for each member of the Group Executive Management as a percentage of the fixed compensation, and may not exceed an amount equal to 100 percent of such compensation. The targets for each member of the Group Executive Management are determined annually by the Board of Directors, at the request of the Nomination and Compensation Committee, at the beginning of the one-year performance period.
Unlike for the previous year, no sustainability-related KPIs were incorporated into the compensation policy as part of the variable compensation for the 2025 financial year. Nevertheless, the established initiatives and measures will continue without change.
GENERAL INFORMATION | 11
ESRS 2 GOV-4 Statement on due diligence
The following table shows where the core elements of the EDAG Group's due diligence process for people and the environment can be found.
| Core elements of due diligence | Paragraphs in the Sustainability Report |
|---|---|
| a) Embedding due diligence in governance, strategy and business model | ESRS 2 GOV-2, ESRS 2 GOV-3, ESRS 2 SBM-3 |
| b) Engaging with affected stakeholders in all key steps of the due diligence process | ESRS 2 GOV-2, ESRS 2 SBM-2, ESRS 2 IRO-1, ESRS 2 IRO-1, ESRS E1-2, ESRS S1-1, ESRS S1-4, ESRS S1-5, ESRS G1-1 |
| c) Identifying and assessing adverse impacts | ESRS 2 IRO-1, ESRS E1 in conjunction with ESRS 2 SBM-3 |
| d) Taking actions to address these adverse impacts | ESRS E1-3 |
| e) Tracking the effectiveness of these efforts and communicating | ESRS E1-3 |
ESRS 2 GOV-5 Risk management and internal controls over sustainability reporting
The EDAG Group is among the companies applying the CSRD and ESRS standards for the first time for the 2024 reporting year, and publishing the results. The information and data contained in this Sustainability Report was collected in the course of a sustainability-related process.
It is the responsibility of the Group Sustainability Reporting team, headed by the Vice President Accounting & Tax, to maintain a consolidated data model for the entire group. This process structures data acquisition, provides the data transparency and traceability required for our reporting and management, and takes the terms, formulas and key variables such as emission factors into account in accordance with the greenhouse gas protocol.
Risks associated with the preparation of this Sustainability Report, particularly with regard to data collection and analysis, have been minimized by implementing controls. This was primarily ensured by carrying out plausibility checks and reviews, in which the administrative, management and supervisory bodies were involved. A materiality-oriented risk prioritization with regard to sustainability reporting forms part of the regular exchange between the employees involved in the reporting process and the Group Executive Management.
The Group Executive Management and Audit Committee are regularly informed of any material potential weaknesses in controls. Any risk mitigation strategies that may be required are developed, approved and implemented by the Group Executive Management.
GENERAL INFORMATION
Strategy, Business Model and Value Chain
ESRS 2 SBM-1 Strategy, business model and value chain
Business model and value chain
With the parent company, EDAG Engineering Group AG, Arbon (Switzerland), the EDAG Group is one of the largest independent engineering service providers. The section Basic Information on the Group in the Management Report included in our Annual Report for 2025 includes a presentation of our business model, which is derived from our vision, our business segments and the departments assigned to them, and also addresses relevant sustainability issues in the current reporting year. In its 2025 Annual Report, the EDAG Group presents revenue figures for the most significant markets and customer groups for the 2025 reporting year. Since these figures cannot be allocated to the ESRS sectors, total revenue from third parties in the amount of €713,991 thousand and the business segments (Vehicle Engineering, Electrics/Electronics, and Production Solutions) are allocated to the ESRS sector "Other". Within the value chain, the main activities of the EDAG Group focus on the product design and development phases. The EDAG Group supports customers in the planning, design, optimization and implementation of efficient and resource-saving production processes and plants.
As an engineering service provider, our employees are our most important input factor. They are crucial to the company's success, particularly when it comes to their professional and intellectual abilities. On the reporting date of December 31, 2025, 8,303 employees were employed by the EDAG Group: 5,205 in Germany and 3,098 in the rest of the world (previous year: 9,133 employees: 6,010 in Germany and 3,123 in the rest of the world).
Our global network and our international subsidiaries ensure our local presence for our customers.
GENERAL INFORMATION | 13
The customers are B2B customers operating in particular in the following sectors: Automotive and automotive suppliers, motorcycle, commercial & off-road vehicles, special-purpose vehicle, bicycle & pedelec, aviation, rail, the semiconductor industry, chemical industry, other industries, industrial solutions and defence.
For the most part, we supply our B2B customers with datasets, but also with systems, devices, prototypes and low-volume series.
The EDAG Group's upstream value chain includes
- Every stage of the value chain of the goods purchased by EDAG, from the extraction of raw materials to delivery to EDAG (e.g. components for prototypes, operating and office equipment) and
- Every stage of the value chain of the services purchased by EDAG (e.g. cloud storage space, hardware and software maintenance).
Company vision and strategy
Sustainability is of special importance to our business model, our value chain, and therefore to the entire EDAG Group. This involves both long-term business alignment and the integration of ecological and social aspects into the management system, and is part of our corporate culture which is built upon shared values such as trust, transparency, reliability and fairness in dealings with our business partners. We see sustainability as a contribution towards safeguarding the future of our company and towards economic and social development.
The special importance we attach to sustainability is reflected in our vision: "Working together to shape the mobility and industry of the future. Efficiently. Safely.
Sustainably." This gives us a clear guiding principle for the future, the compass of our company, our mission. Accordingly, EDAG pursues the following strategic goals:
- A talent factory for all employees
- A competence center for new technologies and solutions
- An agile market and future-shaping company
- A source of inspiration and vision based on clear values
- An economically, ecologically and socially sustainable engineering service provider
Sustainability in its economic, ecological and social dimensions is therefore an elementary component of EDAG's corporate strategy. The individual characteristics are interlinked, and form a basis for sustainable corporate management.
GENERAL INFORMATION
The core element of our strategic concept is to be our customers' first choice, as an efficient, innovative and sustainable engineering service provider. We plan to achieve this by further diversifying our customer base in the direction of industrial solutions and by expanding our software organization on the one hand, and by continuing with the internationalization of the EDAG Group on the other, particularly in terms of sales, by means of a further diversification of our revenues. In this way, we aim to expand our customer base, while strengthening our presence in various countries. Production-wise, we are accelerating our best-cost strategy, i.e. a cost-efficient employment structure oriented towards our customers' locations.
Our sustainability goals are formulated in line with the strategic concept applicable throughout the Group. Unless stated otherwise, they apply to the EDAG Group as a whole. The overall strategic alignment is being further operationalized within the EDAG Group. This process is carried out in both directions – bottom-up and top-down – to ensure that the specific conditions in individual countries and fields are taken into account in the same way as the overall Group strategy is. At the same time, this also allows our most important stakeholders to be taken into account by their representatives.
The EDAG Group has not set itself any specific sustainability goals with regard to the main groups, namely products and services, customer categories, geographical areas and stakeholder relations.
ESRS 2 SBM-2 Interests and views of stakeholders
Communication with our stakeholders is of great importance to the EDAG Group's value creation and our long-term success. To this end, our experts engage in regular and open dialog with our stakeholders, using a variety of formats. Essentially, the most important stakeholders include employees, customers, investors, suppliers, and nature as a silent stakeholder.
The regular exchange with our stakeholders forms an important basis for our actions. This dialog is a means of communicating the various positions, and helps us to constantly align our decisions and goals with the different interest groups.
We are in regular communication with our customers, both in the course of joint projects, mails, through our website, and also at conferences and trade fairs. Our employees have the support of the HR department and employees' representatives. We keep our staff informed by means of staff assemblies, our intranet and case-related employee surveys, and also maintain a permanent exchange through an open culture. Our purchasing department, which is in regular communication with our major suppliers, is the point of contact for our suppliers. Our Investor Relations department is responsible for the dialog with analysts and investors in particular, and to this end uses a variety of different media and attends investor events.
GENERAL INFORMATION | 15
In the course of the year, the various departments and topic owners inform the Group Executive Management of the views and interests of the affected stakeholders, using a number of different formats. The Group Executive Management arranges for the necessary action to be taken and informs the Board of Directors where necessary.
S1 Own Workforce (ESRS 2 SBM-2 in conjunction with S1)
The workforce is a key success factor for an engineering service provider's business model. For this reason, our personnel policy is systematically aimed at ensuring that, in order to be able to handle projects, execute orders and supply temporary staff, the employee qualifications and capacities required by our customers are available at all times.
The observation of shifts in demand on the part of our customers, constant monitoring of the labor markets relevant to EDAG, and anticipation of changes in our employees' attitude and expectations are all inducements to us to constantly examine and adapt our personnel policy strategies and activities. Accordingly, two social aspects are also defined in our mission statement: talent factory for all employees and social sustainability. We regularly communicate with our own workforce and its representatives, and this can take the form of staff appraisals, staff assemblies and regular contact between the works council and management (see ESRS S1 Social Dialogue).
As an internationally active company, EDAG makes a point of ensuring compliance with human rights and accepted labor standards at our numerous sites across the globe and, with its Code of Ethics, affirms its commitment to the principles of the UN Global Compact.
Double Materiality Assessment
ESRS 2 IRO-1 Description of the process to identify and assess material impacts, risks and opportunities
The first ESRS-based double materiality assessment was carried out for the 2024 reporting year. The materiality assessment in accordance with the ESRS is designed to identify material impacts, risks and opportunities. The materiality analysis for the 2025 reporting year was updated in collaboration with our topic owners based on the initial materiality analysis for the 2024 fiscal year, with both the identified and material IROs remaining essentially unchanged. As in the previous year, no individual or specific activities, business relationships or geographical circumstances that give rise to a heightened risk of adverse impacts were identified.
GENERAL INFORMATION
Identification of sustainability issues
The first step in the ESRS materiality analysis is to identify relevant sustainability topics. This identification process takes into account our business activities and business relationships (outlined in ESRS 2 SBM-1), our value chain (outlined in ESRS 2 SBM-1) and the affected stakeholders (outlined in ESRS 2 SBM-2). The basis for this were the sustainability matters set out in ESRS 1, paragraph AR16. No additional entity-specific disclosures were identified.
In line with the principle of double materiality, these sustainability matters were analyzed to determine whether, on the one hand, there were any impacts on people or the environment, caused either by the EDAG Group or by actors in our value chain (i.e. impact materiality, inside-out perspective). On the other hand, they were also analyzed to establish whether a sustainability matter could result in risks and opportunities for the EDAG Group (i.e. financial materiality, outside-in perspective).
When assessing impact materiality, we looked into whether our own operations or the upstream or downstream value chain could have material actual or potential, positive or negative impacts on people or the environment.
When assessing the financial materiality, we looked into whether present or future developments of a sustainability matter could have a material impact on the development, financial position, financial performance, cash flows, access to finance or the cost of capital of the EDAG Group over the short, medium or long term.
Stakeholder engagement
The identification and assessment of impacts, risks and opportunities is an ongoing, interdisciplinary process involving in-house experts representing our stakeholders and external consultants, and which is headed and organized by the Group Accounting's Group Sustainability Reporting team.
To perform this assessment, we worked with representatives (referred to as topic owners) of various internal and external stakeholders including employees, customers, suppliers, investors, analysts and banks, to identify the material sustainability matters for the EDAG Group. External stakeholders were represented by EDAG experts (topic owners) who, on account of their expertise and position in the organization, as described in ESRS 2 SBM-2, are in regular contact with our external stakeholders, and are therefore familiar with their interests. Their task was to provide information on the various sustainability issues and evaluate any impacts, risks and opportunities (IROs) identified.
GENERAL INFORMATION | 17
Involvement of the topic owners took the form of interviews and desktop research. At the same time, and on the basis of our risk management process, we also assessed the financial risks and opportunities for sustainability-related matters, in consultation with our risk management team. To ensure proper compliance with the regulations, external consultants monitored the implementation of the first materiality assessment in the 2024 fiscal year as part of the process rollout.
Materiality assessment
The material sustainability matters were assessed and determined in accordance with the requirements in ESRS 1, applying the principle of double materiality with the help of a scoring model.
Assessment of material impacts
When defining material actual negative impacts, the severity of the impact was determined on the basis of the following factors: scale, scope and irremediable character of the impact. In the case of a potentially negative impact, the likelihood of the impact was also taken into account. In the case of a potential negative human rights impact, the severity of the impact takes precedence over its likelihood.
When defining material actual positive impacts, the severity of the impact was determined on the basis of the factors scale and scope of the impact. In the case of a potentially positive impact, the likelihood of the impact was also taken into account.
With the exception of the likelihood of occurrence, if the above factor comes into play, a five-step scale is used: if the factors are combined without taking into account the likelihood of occurrence, a maximum value of 15 can result. The resulting value is multiplied by the likelihood of occurrence (6-step scale from 0 to 1).
An impact was classified as material if a threshold value of 8 or more was reached in the assessment described above.
Assessment of material risks and opportunities
Material risks and opportunities were defined with the help of a scoring model, in consultation with our risk management team. To this end, possible risks and opportunities were identified by analyzing dependencies on resources required for business processes or the dependency on relationships and evaluated, taking into account a combination of the likelihood of occurrence and potential magnitude. The resulting significant risks and opportunities were classified using the following presentation:
GENERAL INFORMATION
In terms of financial materiality, all risks and opportunities were classified as material if they were:
- Classified as significant opportunities/risks (Dark Gray)
- Classified as high-level opportunities/risks (Black)
Any positive or negative impacts or existing dependencies identified could represent a starting point for potential risks and opportunities. No scenario analyses were carried out.
In the future, the identification and assessment of sustainability-related risks and opportunities will be part of the risk management process established for financial reporting. In this context, risk assessment tools and risk mitigation and limitation measures will also be evaluated.
GENERAL INFORMATION | 19
Results of the double materiality assessment
The results of the double materiality analysis are shown in the following image, and more detail is provided for the relevant standards in the appropriate topical standard:
Financial impact for EDAG
| Environment | Social issues |
|---|---|
| E1 Climate change | S1 Own workforce |
| ○ Climate change adaptation | ⑦ Working conditions |
| ① Climate change mitigation | ⑧ Equal treatment and opportunities for all |
| ② Energy | 0 Other work-related rights |
GENERAL INFORMATION
| Environment | Social issues |
|---|---|
| E2: Pollution | S2 Workers in the value chain |
| 3 Pollution of air | 0 Working conditions |
| 4 Pollution of water | 0 Equal treatment and opportunities |
| 5 Pollution of soil | 0 Other work-related rights |
| 0 Pollution of living organisms and food resources | S3 Affected communities |
| 0 Substances of concern | 0 Communities' economic, social and cultural rights |
| 0 Substances of very high concern | 0 Communities' civil and political rights |
| 6 Microplastics | 0 Rights of indigenous peoples |
| E3 Water and marine resources | S4 Consumers and end users |
| 0 Water | 0 Information-related impacts for consumers and/or end-users |
| 0 Marine resources | 0 Personal safety of consumers and/or end-users |
| E4 Biodiversity & ecosystems | 0 Social inclusion of consumers and/or end-users |
| 0 Direct impact drivers of biodiversity loss | Governance |
| 0 Impacts on the state of species | G1 Business conduct |
| 0 Impacts on the extent and condition of ecosystems | 9 Corporate culture |
| 0 Impacts and dependencies on eco system services | 0 Protection of whistleblowers |
| E5 Circular economy | 0 Animal welfare |
| 0 Resource inflows including resource use | 0 Political engagement |
| 0 Resource outflows in conjunction with products and services | 0 Management of relationships with suppliers, including payment practices |
| 0 Waste | 0 Corruption and bribery |
GENERAL INFORMATION | 21
Monitoring and review
The EDAG Group reviews and, if necessary, updates the process to identify its impacts, risks and opportunities and assess the materiality of these annually, taking into account emerging trends, underlying assumptions and contextual and regulatory changes. In the process, developing trends, underlying assumptions, and contextual and regulatory changes will be taken into account. Only minor adjustments were made for the 2025 fiscal year.
As part of the update to the materiality assessment, the result for IRO "Measures against violence and harassment in the workplace" has changed. While EDAG continues to adhere to clear principles and consistently rejects any form of violence or harassment, this issue was classified as non-material in the current analysis. This reassessment is based on the fact that EDAG has established prevention and intervention mechanisms that ensure a high level of awareness, protection, and transparency. At the same time, our findings show the potential risk in the context of our business operations to be comparatively low. This remains an identified positive impact; however, from a materiality perspective, it does not meet the threshold for a material impact as defined in our materiality assessment and therefore does not constitute a material positive impact on our employees. In addition, updates were made to the IRO regarding collective bargaining and freedom of association. EDAG employees are free to organize themselves into trade unions. Only in a few small subsidiaries are collective pay agreements in place. Therefore, the identified IRO has been classified as non-material in the assessment. Furthermore, as part of the update, we have assessed the financial impact of the positive corporate culture to be less significant than in the initial assessment, which means that the opportunity is now classified as non-material.
E1 Climate change (ESRS 2 IRO-1 in conjunction with E1)
The positive and negative impacts set out in chapter ESRS E1 Climate change relate to our strategy and business model as follows: Our own economic activity results in greenhouse gas emissions, both in our own business activities and in the downstream value chain, including production and use phase. As an engineering service provider, the EDAG Group can have a positive impact on the downstream value chain and subsequent use phase by providing efficient and climate-friendly engineering services. Our vision and corporate strategy (see ESRS 2 SBM-1) directly address these points, with goal 2 (competence center for new technologies and solutions) and goal 5 (economically, ecologically and socially sustainable engineering service provider).
Aside from the viewpoints of our stakeholders (as communicated by our in-house experts), the starting point for the IROs identified are the greenhouse gas emissions (Scope 1 and 2) in the previous financial years. For the 2025 financial year, the EDAG Group's total greenhouse gas emissions (Scope 1 to 3) amounted to 39,707 metric tons (previous year: 42,114 tons), measured using the market-based method¹.
¹ The Scope 2 greenhouse gas emissions are identified using the location-based and market-based method. The location-based method quantifies the EDAG Group's Scope 2 greenhouse gas emissions on the basis of average energy generation emission factors within national borders. With the market-based method, the EDAG Group draws on the greenhouse gas emissions of the generators – where available – to determine the Scope 2 greenhouse gas emissions. If this data is not available, an estimate is made.
GENERAL INFORMATION
2 Data cleansing and updates were carried out for the activities covered to ensure that external factors, particularly a reduction in business travel and office attendance due to the COVID-19 pandemic, do not influence the baseline year.
Details can be found in ESRS E1-6. For this Sustainability Report, the actual and locked-in (potential future) greenhouse gas emissions (see ESRS E1-1) were validated for our baseline year, adjusted² and determined for the reporting year. The underlying assumptions are set out in ESRS E1-6, section Explanatory notes on the methodology and data sources. Greenhouse gas emissions relate to our own operations (Scope 1 and Scope 2) and those along the value chain (Scope 3). For EDAG, the following Scope 3 categories were classified as material: 3.1 Purchased goods and services, 3.3 Fuel- and energy-related activities (not included in Scope 1 or Scope 2), 3.6 Business travel and 3.7 Employee commuting.
The transition risk was assessed in coordination with our risk management and will become part of the risk management process established for financial reporting in the future. The EDAG Group did not perform a detailed analysis of short-, medium- or long-term transitional events based on the TCFD classification for the reporting year, nor did it determine the magnitude of the risk to individual assets or business activities. However, it did carry out a resilience and climate scenario analysis, which is presented in section ESRS 2 SBM-3, in the E1 topical standard. A qualitative assessment was performed to evaluate the greenhouse gas emissions involved as a transitional event within the framework of the measures outlined in the transition plan for climate neutrality. This is described in more detail in the section on ESRS E1-1 transition plan.
E2 Pollution (ESRS 2 IRO-1 in conjunction with E2)
No material impacts of pollution have been identified in the business activities of the EDAG Group, its sites and operations (see also the explanations in ESRS 2 IRO-1 Double Materiality Analysis, which apply analogously to ESRS E2). Potential impacts relating to air, water and soil pollution and microplastics were identified in the downstream value chain. No consultations, in particular with affected communities of our customers and suppliers, or audits of their sites or operations were conducted. This also pushes us to our technical limits, as, in the next stage, we have no knowledge of or influence over how our customers subsequently utilize or apply the services we provide. This also applies to the geographical location at which they are utilized. Our customers decide whether, for what purpose, in what form and at which of their sites the concepts developed by EDAG are implemented or put to further use. In concrete terms, this means that the decisions on the quantity produced, future adjustments or modifications to components, selection of materials, etc. are the sole responsibility of our customers. For this reason, it is not feasible for us to present a list of sites or operations in which pollution is a material impact.
G1 Business conduct (ESRS 2 IRO-1 in conjunction with G1)
All relevant EDAG Group activities and sectors were taken into account when identifying and evaluating the impacts, risks and opportunities of the G1 Business conduct standard.
GENERAL INFORMATION | 23
Further topical standards with no material impacts, risks or opportunities
No material impacts, risks or opportunities relating to ESRS E3 Water and marine resources, ESRS E4 Biodiversity and ecosystem Services or ESRS E5 Resource use and circular economy were identified in EDAG's value chain in the course of the materiality assessment.
Regular certifications by independent auditing organizations in areas such as quality management, information security, environmental management, occupational health and safety, and sustainability confirm that common, internationally acknowledged standards are adhered to at EDAG Group. Furthermore, we see it as our task to employ a continuous improvement process to make the working environment safe for our employees, to minimize negative impacts on the environment, and to establish sustainable management as a key component of our management systems.
With regard to the above-mentioned points, our assets and business activities are regularly reviewed for actual and potential impacts, risks and opportunities in our own operations.
Analogous to the comments on E2, no consultations were conducted, in particular with affected communities of our customers and suppliers. As explained above, this also pushes us to our technical limits, as we have no influence over how our customers actually utilize the services provided by EDAG. Our customers decide whether, for what purpose, in what form and at which of their sites the concepts developed by EDAG are implemented. In concrete terms, this means that the decisions on the quantity produced, future adjustments or modifications to components, selection of materials, etc. are the sole responsibility of our customers.
For this reason, it is not feasible for us to present a list of the geographical areas in which water or marine resources are essential to the company's activities and its upstream and downstream value chain.
No special dependencies on biodiversity and ecosystems and their services were identified, nor were transition risks or physical risks. No scenario analysis in line with the requirements of ESRS E4 was carried out.
GENERAL INFORMATION
ESRS 2 IRO-2 Disclosure requirements in ESRS covered by the undertaking's sustainability statements
The ESRS 2 IRO-2 disclosures, which include the index of ESRS disclosure requirements (content index) and the list of datapoints deriving from other EU legislation, can be found in Annex 2 and 3 respectively.
Datapoints in the topic-specific standards are material if they are related to impacts, risks and opportunities material to us, and assist users of our Group Sustainability Report in their decision-making. For more information on the double materiality analysis, please refer to section ESRS 2 IRO-1 Description of the process to identify and assess material impacts, risks and opportunities.
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
The material impacts, risks and opportunities identified in the materiality assessment are explained in the relevant topical standards. They refer to the standards ESRS E1 Climate change, E2 Pollution, S1 Own workforce, and G1 Business conduct in this Sustainability Report.
The statements included there indicate that the reporting refers to information provided with regard to the impacts, risks and opportunities presented and the associated policies³, actions and targets derived from the business processes available to the EDAG Group, and that this information and data thus forms part of the Sustainability Report. If information concerning policies, actions and targets relating to the material IROs identified in the materiality analysis is not disclosed, this is because this specific information is not generally available, as it was not previously relevant to decision-making and management processes.
³ Group-wide and country-specific guidelines and concepts come under the heading of "policies".
Detailed information on risks and opportunities can be found in the Forecast, Risk and Reward Report section of the Group Management Report in the Annual Report for 2025. Currently, the identified sustainability-related risks and opportunities do not have a financial impact under topic-specific standard E1. The carrying amounts of the assets or liabilities recognized in the Annual Report for 2025 have not been adjusted with respect to the significant risks and opportunities. At present, there is nothing to indicate that we might not be able to manage the material risks and rewards or take advantage of the opportunities we have identified.
The risk identified in the topic-specific standard S1 currently has a financial impact in the time horizon of the Risk and Reward Report (short and medium-term). For further details, please see the Risk and Reward Report in the Annual Report for 2025.
ENVIRONMENTAL INFORMATION | 25
ENVIRONMENTAL INFORMATION
ESRS E1 CLIMATE CHANGE
Impacts, Risks and Opportunities
ESRS 2 GOV-3 Integration of sustainability-related performance in incentive schemes
The information required under ESRS E1 in conjunction with ESRS 2 GOV-3 is set out in section ESRS 2 GOV-3.
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
The materiality assessment described in ESRS 2 IRO-2 has identified the following impacts, risks and opportunities for the topical S1 Climate Change standard:
ENVIRONMENTAL INFORMATION
| E1 Climate Change | Position in the VC | Time horizon | |||||
|---|---|---|---|---|---|---|---|
| Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
| GHG emissions from own operations | |||||||
| Negative actual and potential impacts on people and the environment of GHG emissions occurring in the undertaking's own business activities. | Negative actual impacts | ● | ● | ● | ● | ||
| GHG emissions from the downstream value chain | |||||||
| Negative actual and potential impacts on people and the environment of GHG emissions occurring during production and the use phase. | Negative actual impacts | ● | ● | ● | ● | ||
| Climate-friendly mobility solutions in the downstream value chain | |||||||
| Positive potential impacts on people and the environment through the provision of climate-friendly industrial and mobility solutions that effectively reduce GHG emissions. | Positive potential impacts | ● | ● | ● | ● | ||
| Energy consumption in the downstream value chain | |||||||
| Negative actual impacts on people and the environment due to high energy consumption during production and use, and the resulting need for this energy to be produced. | Negative actual impacts | ● | ● | ● | ● | ||
| Climate-friendly engineering and mobility solutions in own operations | |||||||
| Market opportunities arising from efforts to mitigate climate change in the economy, and regulatory requirements. Expanding our sustainability expertise enables us to develop new business areas, and defend and expand existing ones. | Opportunity | ● | ● | ● | ● | ||
| Greenhouse gas targets of our customers | |||||||
| There is a potential risk of orders and projects being lost if EDAG is unable to reduce GHG quickly enough, or if our customers demand unrealistic GHG reduction targets, giving competitors with lower GHG emissions better market opportunities. | Risk | ● | ● | ● |
ENVIRONMENTAL INFORMATION | 27
The identified opportunities and risks are climate-related opportunities or climate-related transition risks relating to the company's own operations, as, for EDAG, these can only materialize during the transition to a low-carbon, climate-resilient economy.
We carried out a resilience and climate scenario analysis in the 2024 financial year and updated it in the 2025 financial year. The following climate-relevant time horizons were assessed: In addition to the current reporting year (1 year), the two time horizons medium-term (2030) and long-term (2050) were factored in, and particular use was made of the publications of the IPCC WGI Interactive Atlas for the EDAG Group's key sites. The focus here was on the IPCC's worst-case climate-related scenario "SSP5-8.5". Reference is made here to the critical assumptions and uncertainties mentioned therein. The focus of the analysis was on our sites. On the basis of regional data from the IPCC's maps, the regions in which major EDAG Group sites are located were analyzed with regard to the impact of climate hazards such as heatwaves and cold spells, wildfires, heavy precipitation and flooding, and rising sea levels. Even taking the worst-case scenario into account, no material physical risks or transition risks could be identified for the EDAG Group's own operations or assets. Further, EDAG can also see no significant climate-related risks in the upstream and downstream value chain.
With our strategic objective of achieving net carbon neutrality by 2039 (detailed in ESRS E1-1), we are well equipped to address our material impacts, risks and opportunities. With our greenhouse gas reduction targets (see ESRS E1-4) and change mitigation actions (see ESRS E1-3), we plan to minimize the negative impacts our GHG emissions and the emissions in the value chain have on people and nature. At the same time, this allows us to minimize our risks and to expand existing business activities and develop new business opportunities by providing climate-friendly mobility solutions.
ENVIRONMENTAL INFORMATION
Strategy
Approach & strategy
We, the EDAG Group, recognize the urgent need for climate change mitigation actions and sustainability in mobility and industry. Taking responsibility for this is part of our corporate vision and mission.
> Shaping the future of mobility and industry together.
>
> Efficiently. Safely. Sustainably.
The EDAG Group supports and is committed to the goals of the Paris Agreement. We have set ourselves the overall strategic goal of achieving (net) carbon neutrality in 2039 and for our short-term emissions reduction targets, have committed to the Science-Based Targets initiative (SBTi). Validation is pending. We want to compensate for any unavoidable remaining emissions. In this section, we will present our transition plan, our goals, and the actions we plan to take in order to achieve our goals.
To pool expertise relating to the ecological transformation of mobility and industry, the EDAG Group has set up the interdisciplinary "Team Sustainable Engineering" (TSE). The TSE pools together ecological issues concerning our services in a competence center and then consider them from a fully integrated perspective – in the sense of the entire product life cycle. The TSE promotes cross-departmental collaboration and supports our departments with ecological issues related to our engineering services on the market.
ENVIRONMENTAL INFORMATION | 29
ESRS E1-1 Transition plan for climate change mitigation
In order to achieve our primary strategic goal, we have developed "Roadmap way 2 zero", a transition plan for climate change mitigation. This comprises different actions and interim targets, is applicable to the entire EDAG Group, and is embedded in the company's general financial planning. We will have the 2030 emissions reduction targets connected with this transition plan (see ESRS E1-4) validated by the SBTi.
Owing to our overall strategic goal, we see ourselves as being well prepared to fulfill our commitment to the short-term SBTi targets in the future, and so demonstrate that our emission reduction targets are scientifically sound. On account of our commitment to meeting SBTi goal requirements, we consider our business model to be in line with the Paris Agreement on climate change, which aims to limit global warming to 1.5° C.
As an engineering service provider, the EDAG Group is involved in development and conceptual design at an early stage in the engineering value chain. This means that, alongside our own greenhouse gas emissions (Scope 1 and 2), the indirect greenhouse gas emissions (Scope 3) are important, as these are influenced by the selection and use of various components. However, it is our customers who decide what actual use is made of the services provided by EDAG. They decide whether, for what purpose, to what extent and in what form the concepts developed by EDAG are implemented, and therefore also determine the volume of greenhouse gases emitted in the EDAG Group's downstream value chain.
By the same token, we are also reliant on the cooperation of our stakeholders to achieve our strategic goal and the necessary reduction in emissions this involves, as the EDAG Group cannot fully control or influence all sources of emissions.
Actions and decarbonization lever
The EDAG Group's transition plan is therefore centered on the following decarbonization levers and actions:
a) The decarbonization of our own operations
- Reduction of heating energy from fossil sources in the properties and office space utilized
- Conversion of the vehicle fleet to climate-friendly powertrain technologies
- Purchase of 100 percent green electricity at all EDAG Group sites
b) The decarbonization of the key categories in our upstream value chain
- Reduction of GHG emissions where district heating is used
ENVIRONMENTAL INFORMATION
- Development and, as far as possible, support for our key suppliers in decarbonization, with the aim of achieving carbon neutrality. To this end, we draw on our supplier qualification process in order to ensure sustainable procurement. Important contracts will in future be subject to predefined criteria for achieving carbon neutrality.
- Reduction of greenhouse gas emissions resulting from our business travel
- Optimization of commuting and incentives for climate-friendly mobility
Further details of the EDAG Group's decarbonization actions and the climate change mitigation actions initiated in 2024 and continued in 2025 can be found in ESRS E1-3 and ESRS E1-4.
As we are an engineering service provider, changes to our product and service portfolio as a result of changes in the market, technological developments or changing regulatory requirements are a constant occurrence. Responding to these changes and offering attractive solutions on the market is part of our approach. In particular, the steady increase in regulatory emissions standards and fleet-related regulations, along with our customers' greenhouse gas reduction targets, can influence the product and service portfolios we offer and lead to lower greenhouse gas emissions overall throughout the entire product life cycle.
To implement our transition plan, we anticipate the following capital expenditures (CapEx) for our climate change mitigation measures between now and 2039:
| CapEx | Total in € thousand^{1} | EU Taxonomy performance indicator | ||
|---|---|---|---|---|
| Scope | Category | Decarbonization lever | ||
| Scope 1 | Heating energy | Reduction of fossil heating energy in the properties utilized^{2} | 1,820 | 7.3 |
| Vehicle fleet | Conversion of the vehicle fleet to climate-friendly powertrain technologies^{3} | 2,739 | 6.5 and 7.4 | |
| Scope 2 | Electricity | Purchase of 100% green electricity at all sites | 1,732 | 7.6 |
| District heating | Reduction of carbon emissions where district heating is used | n/a | n/a | |
| Total Scope 1 and 2 | 6,291 |
ENVIRONMENTAL INFORMATION | 31
| CapEx | Total in € thousand^{1} | EU Taxonomy performance indicator | ||
|---|---|---|---|---|
| Scope | Category | Decarbonization lever | ||
| Scope 3 | Purchased goods and services | Carbon-neutral supplier management | n/a | n/a |
| Fuel and energy-related activities | Fuel and energy-related activities | n/a | n/a | |
| Business traveling | Reduction in the amount of business travel | n/a | n/a | |
| Commuting | Optimization of commuting and incentives for climate-friendly mobility | n/a | n/a | |
| Total Scope 3 | 0 | |||
| Sum total | 6,291 |
1 This is an estimate of the cumulative, undiscounted amount in thousands of euros from 2026 to 2039, based on current price levels.
2 Most of the office space used by the EDAG Group is rented. In such cases, investment decisions regarding renovation or energy-efficiency measures are primarily made by the landlord, not EDAG, and have no effect on the cash flow of the EDAG Group. For this reason, these investments are not taken into account.
3 The CapEx for the vehicle fleet, which relates to the conversion to climate-friendly powertrain technologies, is the additional planned CapEx that we estimate will be incurred in the conversion of the vehicle fleet to climate-friendly powertrain technologies by 2039. For a year, this would amount to approx. € 196 thousand.
The calculated amounts of money (CapEx) set out in the diagram above are estimates based on the data and forecasts available on the reporting date.
When calculating the CapEx for the reduction of fossil heating energy, particular account was taken of energy efficiency improvement measures such as the replacement of lighting. On the one hand, investments in the vehicle fleet include the scheduled additions of vehicles with climate-friendly powertrain technologies, valued according to IFRS 16, and on the other hand investments in the charging infrastructure required. Investments in relation to the use of electricity in real estate included investments for the construction of photovoltaic systems to generate electric power.
No future CapEx was identified for activities related to the use of district heating or for Scope 3.
The EDAG Group has no aims or plans to adapt its economic activities to the criteria set out in the Commission Delegated Regulation (EU) 2021/2139, as the majority of our activities cannot be assigned to taxonomy categories. Our capitalized assets will also cause future greenhouse gas emissions throughout their period of use and/or functional life (these are referred to as potentially locked-in greenhouse gas emissions).
ENVIRONMENTAL INFORMATION
For the EDAG Group, this applies in particular to the balance sheet item "Rights of use from leased assets", to gas-powered heating systems (Scope 1) and the use of district heating energy (Scope 2). In the future, this may also apply to refrigerants in heat pumps if these are used to provide heat energy and refrigerants leak. No stranded assets were identified.
Our products and services may cause greenhouse gas emissions in the downstream value chain and subsequent use and recycling phases. As already explained, EDAG has no influence over how customers actually utilize our services and put them on the market. For this reason, we are unable to track the locked-in greenhouse gas emissions of our products and services.
Our transition plan will enable us to gradually reduce the amount of locked-in greenhouse gas emissions stemming from our assets. Our aim is to achieve this by reducing the use of fossil fuels for heating in the properties we use, by renovating existing buildings to make them more energy efficient for example, or by renting new properties with more climate-friendly energy concepts, and also by gradually converting our vehicle fleet to climate-friendly powertrain technologies. The EDAG Group leases most of the properties it uses. Therefore, energy-efficient refurbishments are carried out in coordination with landlords or through new leases in order to implement the measures outlined in the "Roadmap way 2 zero".
Responsibilities
The CFO of the EDAG Group is responsible for ensuring implementation of the ESG strategy, in particular implementation of the transition plan, management of climate-related risks and opportunities, and the provision of information to the Board of Directors. As a result of the regularly updated materiality and risk management assessment, climate risks are integrated into our governance, management and strategic processes whenever necessary. Under the Delegated Regulation (EU) 2020/1818, the EDAG Group is not exempt from the EU Paris-aligned benchmarks. The details of our transition plan – the "Roadmap way 2 zero" – which is geared towards achieving our strategic goal of carbon neutrality by 2039, were worked out by an interdisciplinary team and approved by the Group Executive Management in the 2024 financial year. Our strategic goal of carbon neutrality by 2039 was already externally communicated to our stakeholders in the 2023 Sustainability Report.
From our point of view, compared to our baseline year, 2021, we succeeded in significantly reducing greenhouse gas emissions in Scope 1 and Scope 2 in the reporting year. Specifically, our Scope 1 GHG emissions fell by 28 percent and our Scope 2 GHG emissions by 86 percent. The main reason for this is our switch from conventional to 100 percent green electricity for our German sites.
ENVIRONMENTAL INFORMATION | 33
Furthermore, we were able to reduce emissions by decreasing the use of fossil fuels for heating in the properties and office space used and by gradually converting our vehicle fleet to climate-friendly powertrain technologies.
Scope 3 provides an inconsistent picture compared to 2021. While greenhouse gas emissions from fuel and energy-related activities in the upstream value chain were halved and there was a decrease in greenhouse gas emissions in the category of purchased goods and services, increasing greenhouse gas emissions were registered in the categories of business travel and commuting. The increase in greenhouse gas emissions from business travel and commuting is primarily due to an increase in business activities, longer flight distances, increased office attendance, and the general increase in the Group's workforce.
Management of the Impacts, Risks and Opportunities
ESRS E1-2 Policies related to climate change mitigation and adaptation
With a view to the long-term implementation of our overall strategic goal of carbon neutrality by 2039, an interdisciplinary team developed our transition plan, "Roadmap way 2 zero", the first details of which are presented in section ESRS E1-1. This is the central concept we use to achieve our strategic sustainability goals and interim targets, which are to be validated by the SBTi. The CFO is the most senior executive responsible for implementation within the EDAG Group.
By implementing the transition plan, we intend to gradually decrease greenhouse gas emissions in our own operations and value chain, and increase the use of renewable energies. In this way, we should be able to gradually reduce or completely eliminate the negative impacts of our operations and value chain on the environment. At the same time, it makes it easier for us to meet our customers' requirements for a low greenhouse gas footprint in their value chain, and to minimize any resulting risks. In this sense, the "Roadmap way 2 zero" factors in the following areas: climate protection and the use of renewable energies.
The transition plan is reviewed annually to check that objectives are being met and actions are effective. The planned actions or interim targets are adjusted where necessary. There were no changes in the 2025 fiscal year. The transition plan addresses the interests of our stakeholders, customers and employees for instance, and also nature as a silent stakeholder, for whom a reduction of our greenhouse gases is important. The stakeholders are informed of the most important decarbonization levers and actions in the Sustainability Report.
ENVIRONMENTAL INFORMATION
Since EDAG has little or no influence over the issue, the EDAG Group has not adopted a policy for addressing the potential adverse impacts on people or nature resulting from high energy consumption and greenhouse gas emissions during production or use in the downstream value chain. What is more, an engineering service provider has a significantly lower energy consumption than a company in the manufacturing industry, for example.
Due to climate change mitigation efforts in the business sector and regulatory requirements, there is growing demand for climate-friendly mobility and industrial solutions. The EDAG Group is expanding its sustainability expertise into new business areas, partly through the TSE team, and through continuous adaptation to technological advancements, market trends, and customer requirements. In doing so, the company is tapping into new business areas and further expanding existing ones. The EDAG Group has not developed a concept that meets the requirements of E1-2 in conjunction with MDR-P.
When awarding contracts, customers are increasingly expecting companies to commit to $\mathrm{CO}{2}$ reduction targets. For the EDAG Group, there is a potential risk of orders and projects being lost if EDAG is unable to reduce GHG emissions quickly enough, or if our customers set unrealistic GHG reduction targets, possibly giving competitors with lower GHG emissions better market opportunities. Thanks to its "Roadmap way 2 zero", however, the EDAG Group considers itself well-equipped to meet its customers' $\mathrm{CO}{2}$ reduction requirements and thus minimize this risk. The EDAG Group has therefore developed a concept that meets the requirements of E1-2 in conjunction with MDR-P for the "Roadmap way 2 zero" explained in section E1-1. Therefore, the EDAG Group does not see the need for an individual concept for this risk within the meaning of E1-2 in conjunction with MDR-P.
ESRS E1-4 Targets related to climate change mitigation and adaptation
The EDAG Group is committed to the goals of the Paris Agreement. In line with our strategy, we have committed to achieving net carbon neutrality by 2039. This also forms the basis for our other goals:
- Reduction of gross greenhouse gas emissions (Scope 1 and Scope 2) measured in t CO₂ by a total of 81 percent in 2030 compared to our base year 2021, with 46 percent relating to Scope 1 and 92 percent to Scope 2 (market-based method)⁴.
- Reduction of gross greenhouse gas emissions (Scope 3), measured in t CO₂ by a total of 43 percent in 2030 compared to our baseline year 2021, in our key categories.
- 80 percent of the electricity we purchase is to come from renewable sources by 2025, and 100 percent by 2030.
⁴ Only the combined target figure for Scope 1 and 2 is relevant for achievement of the target. The 46% reduction in Scope 1 emissions and 92% reduction in Scope 2 are only mentioned to fulfill reporting requirements. There is no separate control.
ENVIRONMENTAL INFORMATION | 35
The interim target for the proportion of renewable energy was met as planned: In 2025, the proportion of renewable energy for which energy suppliers had provided documentation already stood at 86.7 percent, exceeding the set target of 80 percent.
The starting points for the greenhouse gas reduction targets are the actual emissions calculated for our baseline year 2021 and the reporting year 2024. These are shown in detail in section ESRS E1-6. In 2021, our baseline year, the following carbon emissions were emitted (reference values):
| Summary of GHG emissions | 2021 |
|---|---|
| Scope 1 | 5,018 t |
| Scope 2 - market-based method | 16,920 t |
| Scope 3 | 37,038 t |
| Total GHG emissions (market-based method) | 58,976 t |
| Greenhouse gas intensity (t / € million) (market-based method) | 85.8 |
As can be seen in ESRS E1-6, our greenhouse gas emissions occur in our own operations (Scopes 1 and 2) and for the most part in the upstream value chain (Scope 3). To establish our greenhouse gas reduction targets for 2030, in addition to the historical figures for 2030, the following future developments in particular were adopted or assumed:
- Both national and international political stability
- Affordable availability of heating energy technologies
- Technological and economically viable availability of climate-friendly powertrain technologies and green electricity for the pursuit of our operations
- Reduction of $\mathrm{CO}_{2}$ emissions by the district heating companies from which EDAG purchases energy
- Commitment of our major suppliers to the Paris Agreement and consequently the implementation of the necessary actions within the framework of their transition plans
Targets are monitored at least once a year; this is the responsibility of the CFO, who has delegated operational implementation within his department. If, at a future date, it turns out that the underlying future developments will not materialize as assumed, the targets can be revised in the future.
ENVIRONMENTAL INFORMATION
As explained in ESRS E1-1, the greenhouse gas emission reduction targets set are compatible with limiting global warming to 1.5° C. We have committed to the short-term targets of the SBTi and the underlying climate and policy scenarios. To date, there are no indications that the EDAG Group will not be able to meet these requirements.
Depending on the baseline year selected and the date on which the documents are submitted to the SBTi, in a 10-year period, greenhouse gas emissions must, in accordance with the requirements of the SBTi's short-term science-based target, be reduced by 79 percent (Scope 1 and Scope 2) across all sectors, subject to the condition that 95 percent of all Scope 1 and Scope 2 emissions must be covered. For Scope 3: If 40 percent or more of total greenhouse gas emissions (Scope 1, 2 and 3) is attributable to Scope 3, then a 42 percent reduction in greenhouse gas emissions must be achieved across all sectors within a 10-year period, subject to the condition that 67 percent of all Scope 3 emissions are covered.
The goals we have set ourselves will enable us to meet these requirements.
To determine the target figure for Scope 1, 2 and 3 greenhouse gas emissions, an analysis was carried out to identify which actions can be directly influenced by EDAG. It was assumed:
a) That it will be possible and economically feasible to replace heating systems, renovate buildings and implement individual energy-saving measures within the planned time frame, and that it will be possible to purchase biogas at a reasonable cost
b) That sufficient climate-friendly transport technologies will be available at acceptable market prices and that the requisite (charging) infrastructure will be sufficiently available in all regions in which the EDAG Group operates
c) That local green power tariffs will be available at reasonable prices for all our sites
d) That district heating providers will themselves reduce their greenhouse gases
e) That reductions in greenhouse gas emissions can also be achieved in our value chain in collaboration with our stakeholders
At the time this Sustainability Report was being prepared, SBTi had not published a sectoral decarbonization pathway suitable for EDAG. EDAG has therefore taken into account the cross-sector absolute reduction target with the baseline year 2021.
To achieve this greenhouse gas reduction, EDAG has identified actions and decarbonization levers, as set out in ESRS E1-1. The contribution to the achievement of our greenhouse gas emission targets is estimated as follows:
Contribution of decarbonization levers to the achievement of the GHG emission reduction targets for 2030 compared to 2021, as percentages:
ENVIRONMENTAL INFORMATION | 37
| Decarbonization lever | Scope 1 | Scope 2 | Scope 3 |
|---|---|---|---|
| Reduction of fossil heating energy in the properties utilized | -42% | ||
| Conversion of the vehicle fleet to climate-friendly powertrain technologies | -50% | ||
| Purchase of 100% green electricity at all sites | -95% | ||
| Reduction of carbon emissions where district heating is used | -27% | ||
| Scope 1 & Scope 2 (weighted) | -46% | -92% | |
| Carbon-neutral supplier management | -53% | ||
| Fuel and energy-related activities (achieved by implementing Scope 1 and 2 decarbonization levers) | -68% | ||
| Reduction in the amount of business travel^{1} | 9% | ||
| Optimization of commuting and incentives for climate-friendly mobility^{1} | -16% | ||
| Scope 3 | -43% | ||
| Total for Scope 1, 2 and 3 | -57% |
1 The greenhouse gas emission targets for the decarbonization levers "Reduction in the amount of business travel" and "Optimization of commuting and incentives for climate-friendly mobility" are also determined by the volume of future business development and developments in the size of the workforce. As a result of the increase in both business volume and headcount since 2021, greenhouse gas emissions in 2025 were higher than in the baseline year (see ESRS E1-6). This historic increase also accounts for the lower GHG emission reduction targets for 2030 compared to the other decarbonization levers.
No new technologies need to be adopted to achieve the decarbonization levers described above. The SBTi requirements (short-term target) were used as the basis for calculating the quantitative reduction targets. No other climate scenarios were considered.
Since EDAG has little or no influence over the matter, the EDAG Group has not set any targets for addressing the potential adverse impacts on people or nature of high energy consumption during production or use (IRO energy consumption in the downstream supply chain, in section ESRS 2 SBM-3 of ESRS E1). Where possible, the EDAG Group draws the attention of its customers to these impacts. EDAG is not, however, in a position to monitor how effective this is, or whether it is taken into account.
ENVIRONMENTAL INFORMATION
With our know-how, sales activities and the pooling of expertise in our Team Sustainable Engineering (TSE), we are already well positioned to address not only the potential positive impacts on people and nature of providing climate-friendly mobility solutions (IRO "Climate-friendly mobility solutions in the downstream value chain" in section ESRS 2 SBM-3 of ESRS E1), but also the resulting market opportunity (IRO "Climate-friendly mobility solutions in the own business activities" in section ESRS 2 SBM-3 of ESRS E1). The EDAG Group does not define specific targets that meet the requirements of the ESRS. The reason for this is that our operative targets are determined by our customers.
ENVIRONMENTAL INFORMATION | 39
ESRS E1-3 Actions and resources in relation to climate change policies
In order to achieve the targets set out in ESRS E1-4, and in line with its strategic goals and the transition plan (see ESRS E1-1), the EDAG Group has planned the following actions and resources related to climate change mitigation:
| Decarbonization lever | Actions & resources | Scope in the value chain | Cumulative GHG reduction by 2025^{1} in % compared to the baseline year | Expected GHG reduction by 2030^{1} in % compared to the baseline year | Expected GHG reduction by 2039^{1} in % compared to the baseline year |
|---|---|---|---|---|---|
| Reduction of fossil heating energy in the properties utilized | Optimization of leases by means of targeted measures such as renovation, individual climate protection measures, relocation, etc. | Own operations | -16% | -42% | -83% |
| Conversion of the vehicle fleet to climate-friendly powertrain technologies | Car policy: Gradual conversion of the vehicle fleet to climate-friendly powertrain technology by 2035 | Own operations | -39% | -50% | -100% |
| Purchase of 100% green electricity at all sites | Switching the power consumption of the entire EDAG Group to 100% renewable energies by 2030 | Own operations | -89% | -95% | -100% |
| Reduction of carbon emissions where district heating is used | CO_{2} regulations for district heating companies | Own operations | -27% | -27% | -83% |
| Carbon-neutral supplier management^{2} | Supplier management focusing on decarbonization with a view to achieving carbon neutrality and sustainable procurement. Important contracts will in future be subject to predefined criteria for achieving carbon neutrality. | Upstream value chain | -17% | -53% | -90% |
| Fuel and energy-related activities^{2} | Achieved by implementing measures for Scope 1 and 2 relating to heating energy, vehicle fleet, and green electricity. | Upstream value chain | -51% | -68% | -97% |
| Reduction in the amount of business travel^{2} | Reduction of business travel, with preference given to virtual tools (e.g. meetings in MS Teams) | ||||
| Use climate-friendly transport options where possible (electric cars, rail instead of air travel) | Upstream value chain | 107% | 9% | -90% | |
| Optimization of commuting and incentives for climate-friendly mobility^{2} | Development and implementation of targeted measures to reduce emissions from commuting and create incentives for climate-friendly mobility (e.g. job bikes, charging stations at company sites) | Upstream value chain | 9% | -16% | -90% |
| Sum total | -33% | -57% | -93% |
1 Compared to emissions in baseline year 2021.
2 The EDAG Group has only limited influence on the emission reductions achieved by actions taken using these decarbonization levers, since the emissions depend on the decisions and behavior of others, and are largely determined by them. In such cases, the EDAG Group can only provide incentives for emission-reducing behavior.
ENVIRONMENTAL INFORMATION
The following table contains further information on our actions and resources.
| Decarbonization lever | Actions & resources | CapEx 2025 in € thousand | Assets in the balance sheet | Items in P&L^{1} | Performance indicator according to EU Taxonomy | CapEx plan |
|---|---|---|---|---|---|---|
| Reduction of fossil heating energy in the properties utilized | Optimization of leases by means of targeted measures such as renovation, individual climate protection measures, relocation, etc. | 59 | Rights of use from leasing | Depreciation, amortization and impairment | CapEx | n/a |
| Conversion of the vehicle fleet to climate-friendly powertrain technologies | Car policy: Gradual conversion of the vehicle fleet to climate-friendly powertrain technology by 2035 | 2,791 | Rights of use from leasing | Depreciation, amortization and impairment | CapEx | n/a |
| Purchase of 100% green electricity at all sites | Switching the power consumption of the entire EDAG Group to 100% renewable energies by 2030 | 0 | Property, plant and equipment | Material expenses | n/a | n/a |
| Reduction of carbon emissions where district heating is used | CO_{2} regulations for district heating companies | 0 | n/a | Material expenses | n/a | n/a |
| Carbon-neutral supplier management | Supplier management focusing on decarbonization with a view to achieving carbon neutrality and sustainable procurement. Important contracts will in future be subject to predefined criteria for achieving carbon neutrality. | 0 | n/a | Material expenses | n/a | n/a |
| Fuel and energy-related activities | Fuel and energy-related activities: achieved by implementing measures for Scope 1 and 2 relating to heating energy, vehicle fleet, and green electricity. | 0 | Rights of use from leasing | Material expenses | n/a | n/a |
| Reduction in the amount of business travel | Reduction of business travel, with preference given to virtual tools (e.g. meetings in MS Teams) | |||||
| Use climate-friendly transport options where possible (electric cars, rail instead of air travel) | 0 | n/a | Other operating expenses | n/a | n/a | |
| Optimization of commuting and incentives for climate-friendly mobility | Development and implementation of targeted measures to reduce emissions from commuting and create incentives for climate-friendly mobility (e.g. job bikes, charging stations at company sites) | 0 | n/a | n/a | n/a | n/a |
Sum total
2,851
1 Disclosure of the material items.
ENVIRONMENTAL INFORMATION | 41
Implementation of the planned actions also largely depends on the EDAG Group continuing to have access to financial resources at an affordable cost of capital in the future, as has been the case to date.
Since EDAG has little or no influence over the matter, the EDAG Group has not set any measures for addressing the potential adverse impacts on people or nature of high energy consumption during production or use (IRO "energy consumption in the downstream supply chain", in section ESRS 2 SBM-3 of ESRS E1).
Metrics
ESRS E1-6 Gross Scope 1, 2 and 3 and Total GHG emissions
The following table shows the greenhouse gas emissions of the EDAG Group for the main sources of emissions, broken down into Scopes 1, 2 and 3. The greenhouse gas emissions were identified in accordance with the requirements set out in the Greenhouse Gas Protocol and the relevant provisions of ESRS E1. The Scope 3 greenhouse gas emissions include the categories relevant to the EDAG Group. This covers the significant greenhouse gas emissions in the value chain.
ENVIRONMENTAL INFORMATION
| Greenhouse gas emissions | Retrospective | Milestones and target years | |||||
|---|---|---|---|---|---|---|---|
| 2021 | 2024 | 2025 | % 2025 / 2024 | 2030 | (2050)² | Annual % target / Baseline year | |
| Scope 1 GHG emissions | |||||||
| Gross Scope 1 GHG emissions (t CO₂eq) | 5,018 | 3,433 | 3,625 | 6% | n/a¹ | n/a | |
| Percentage of Scope 1 GHG emissions from regulated emissions trading schemes (%) | 0% | 0% | 0% | 0% | n/a¹ | n/a | |
| Scope 2 GHG emissions | |||||||
| Gross location-based Scope 2 GHG emissions (t CO₂eq) | 11,975 | 12,162 | 11,894 | -2% | n/a¹ | n/a | |
| Gross market-based Scope 2 GHG emissions (t CO₂eq) | 16,920 | 2,155 | 2,330 | 8% | n/a¹ | n/a | |
| Significant scope 3 GHG emissions | |||||||
| Total gross indirect (Scope 3) GHG emissions (t CO₂eq) | 37,038 | 36,526 | 33,752 | -8% | n/a¹ | n/a | |
| 3.1 Purchased goods and services | 23,923 | 22,892 | 19,864 | -13% | n/a¹ | n/a | |
| 3.3 Fuel and energy-related activities (energy supply chains) | 2,713 | 1,336 | 1,327 | -1% | n/a¹ | n/a | |
| 3.6 Business traveling | 1,251 | 1,676 | 2,588 | 54% | n/a¹ | n/a | |
| 3.7 Employee commuting | 9,151 | 10,622 | 9,974 | -6% | n/a¹ | n/a | |
| Total GHG emissions | |||||||
| Total GHG emissions (location-based) (t CO₂eq) | 54,031 | 52,121 | 49,271 | -5% | n/a¹ | n/a | |
| Total GHG emissions (market-based) (t CO₂eq) | 58,976 | 42,114 | 39,707 | -6% | n/a¹ | n/a |
¹ According to ESRS E1 § 34a, there is no requirement to report targets in tonnes of CO₂ equivalent, as we report these as a percentage of base-year emissions.
² The EDAG Group has not set itself any targets for 2050.
ENVIRONMENTAL INFORMATION | 43
For the Scope 2 emissions measured using the location-based method, we have a certificate verifying that 86.7 percent (previous year: 86.8 percent) of the electricity consumed by the EDAG Group is green electricity generated from 100 percent renewable energy sources, as evidenced by guarantees of origin. These are decommissioned in the register of guarantees of origin of the German Federal Environmental Agency.
In the reporting year, greenhouse gas emissions under Scopes 1, 2 and 3 showed varying trends, which can be attributed to various operational and structural factors.
Scope 1: Direct emissions increased by 6 percent in the reporting year. This is primarily attributable to higher gas consumption and a slight increase in the emission factor resulting from a change in gas suppliers. Gas consumption was slightly higher than in the previous year due to increased office attendance. In contrast, emissions from the vehicle fleet decreased. This can be attributed to the progress made in the electrification of the company fleet, which has reduced the proportion of fossil fuels used.
Scope 2 (market-based): Market-based Scope 2 emissions increased by approx. 8 percent in the reporting year. This was primarily caused by higher energy and district heating consumption. Further details on the calculation of market-based Scope 2 emissions are provided in the section "Explanatory notes on the methodology and data sources".
Scope 3.1: Emissions from purchased goods and services decreased during the reporting year. The main reason for this was an overall decline in material purchases along with reduced operating expenses.
Scope 3.3: Emissions from fuel and energy-related activities (Scope 3.3) are directly dependent on consumption under Scope 1 and Scope 2. Despite higher overall energy consumption, the increasing electrification of the vehicle fleet led to a slight overall decrease in emissions in this category.
Scope 3.6: Emissions from business travel increased during the reporting year due to changes in travel patterns. The main factors contributing to this were longer average flight distances and a slightly higher number of flights, some of which were necessary specifically for specific customer projects abroad.
Scope 3.7: Emissions from employee commuting decreased by approximately 6 percent during the reporting year. This can be attributed to two opposing factors: on the one hand, the total number of employees decreased; on the other hand, the EDAG Group saw an increase in office attendance during the reporting year.
The following table shows the greenhouse gas intensity per net revenue of the EDAG Group. The net revenue is equal to the consolidated sales revenues of the EDAG Group, as reported in the Consolidated Statement of Comprehensive Income in the
ENVIRONMENTAL INFORMATION
2025 Annual Report. Due to the decline in the EDAG Group's revenue, GHG intensities have risen despite a decrease in total GHG emissions. GHG emissions have not fallen to the same extent as revenue.
| GHG intensity per net revenue | 2024 | 2025 | % 2025 / 2024 |
|---|---|---|---|
| Total GHG emissions (location-based) per net revenue (t CO₂eq/monetary unit)¹ | 63.41 | 69.01 | 8.8% |
| Total GHG emissions (market-based) per net revenue (t CO₂eq/monetary unit)¹ | 51.23 | 55.61 | 8.5% |
¹ in € million
Explanatory notes on the methodology and data sources
The clear and coherent collection of data is of particular importance, as this enables us to effectively assess the implementation of our strategic targets and the effectiveness of our measures and targets in the transition plan. The methodology, underlying assumptions and data sources used to determine the key figures presented in this section are therefore described below.
The operating companies apply the group-wide data collection hierarchy, which is described in chapter ESRS 2 General disclosures in the Data quality section. We aim to further increase data availability in the future. To this end, we are entering into talks with our energy producers with the aim of ensuring that consumption figures will, wherever possible, be available at an early stage in the future. During the preparation process, a deadline was set for the disclosure of the calculated greenhouse gas emissions. Up to this date, actual data for the reporting year was still taken into account. Where no figures for the reporting year were available by the deadline, estimates were made on the basis of available secondary data.
| Metrics | Description of the basic principles (assumptions, calculation methods, approximations and judgments on which the measurement was based) |
|---|---|
| Scope 1 GHG emissions | To calculate Scope 1 GHG emissions, all material energy consumption figures for heat and electricity are recorded, consolidated and identified using the respective emission factors of the energy producers or an official database (BAFA). Where no figures for the reporting year were available at the time the report was drawn up, consumption was estimated on the basis of available secondary data (e.g. figures from the previous year). |
| The figures for the vehicle fleet are mainly based on actual kilometers traveled and the manufacturers' data on greenhouse gas emissions per kilometer. Total greenhouse gas emissions are determined by calculating the average value of the kilometers traveled and greenhouse gas emissions per kilometer for each vehicle category. |
ENVIRONMENTAL INFORMATION | 45
| Metrics | Description of the basic principles (assumptions, calculation methods, approximations and judgments on which the measurement was based) |
|---|---|
| Scope 2 GHG emissions (location-based) | To calculate the location-based Scope 2 emissions, all purchased energy consumption (electricity and district heating) under the operational control of the consolidated companies of the EDAG Group is recorded and consolidated at group level. Emissions are calculated with the help of centrally stored official databases (mainly UBA, CaDI) for the emission factors as greenhouse gases. |
Where no energy consumption figures were available for the complete reporting year at the time the report was drawn up, these figures were extrapolated or estimated on the basis of plausible assumptions. |
| Scope 2 GHG emissions (market-based) | To calculate the market-based Scope 2 emissions, all purchased energy consumption (electricity and district heating) under the operational control of the consolidated companies of the EDAG Group is recorded and consolidated at group level. Market-based Scope 2 emissions are calculated using the hierarchy of available emission factors. This is composed of the following relevance levels: Level 1 - Market-/provider-specific: Where available, we use market-/provider-specific emission factors, which are then applied to calculate market-based Scope 2 emissions. If no market- or provider-specific emission factors are available – which applies to the majority of foreign sites due to the unavailability of such information from energy provider – a location-based calculation, Level 2, is used. |
| Scope 3 GHG emissions | The Scope 3 GHG emissions are calculated from the categories relevant to EDAG: 3.1 Purchased goods and services, 3.3 Energy and fuel-related activities, 3.6 Business travel and 3.7 Employee commuting. On the basis of a materiality assessment, categories 3.2, 3.4, 3.5, 3.8, 3.9, 3.10, 3.11, 3.12, 3.13, 3.14 and 3.15 were classified as not relevant to our business activities.
We work only with recognized sources. Software solutions and the increasing digitalization of data collection will safeguard our calculation basis. The annual comparison of the data used with public sources and the latest findings will help to improve data quality from year to year. Overall, we will ensure continual improvement in data quality. The aim is to reduce emissions and improve the accuracy of emission data collection. |
| Scope 3 GHG emissions – 3.1 Purchased goods and services | This category covers emissions from expenses for materials and supplies, goods purchased and held for resale, expenses for purchased services, and operating expenses. For the "spend-based" approach, among other things, primary data (account-specific product groups) and industry-specific emission factors (mainly from the EPA) were used. Likewise, published sustainability statements and reports were occasionally evaluated and used to collect approximate data. Emissions from expenses for purchased services are generally assumed to be equal to the emissions from Scope 1 and Scope 2. The focus during calculation was always on the core processes and materials essential for the supply chain, and products and/or services of the EDAG Group.
The use of "spend-based" emission factors (kg CO_{2},eq per currency unit) may result in inaccuracies. These are based on the assumed correlation between expenditure and emission levels. As these are not always directly correlated and are affected by currency effects in different reporting periods, emission levels may be influenced by these factors. We therefore assess the accuracy of GHG emissions as relatively low. |
| Scope 3 GHG emissions - 3.3 Fuel- and energy-related activities | The fuel- and energy-related GHG emissions are determined on the basis of energy consumption data and the corresponding emission factors from databases (DEFRA, GEMIS and UBA) for the upstream chain. We consider the accuracy to be relatively high. |
| Scope 3 GHG emissions - 3.6 Business travel | This category includes emissions from business travel undertaken in the reporting year concerned. These are subdivided into relevant forms of mobility (aircraft and train). To calculate the emissions, the kilometers traveled are taken and linked to emission factors (DEFRA). For greater accuracy, flights are also categorized as short, medium or long-haul flights. In the 2025 fiscal year, employee flights in Germany were analyzed on a per-flight basis using atmosfair data. We consider the accuracy to be relatively high. |
| Scope 3 GHG emissions - 3.7 Employee commuting | This category includes emissions from our employees' commuting activities. Commuting-related emissions are estimated for each country. To this end, regional commuting distances are taken into account. The influence of mobile working (by estimating the number of days worked from home) is also taken into account. The total headcount is recorded centrally. We consider the accuracy to be sufficient. |
ENVIRONMENTAL INFORMATION
INFORMATION IN ACCORDANCE WITH ARTICLE 8 OF REGULATION (EU) 2020/852 (TAXONOMY REGULATION)
Under the European Green Deal, the European Union (EU) has placed climate protection, environmental protection and sustainability at the center of its political agenda, with the aim of reaching climate neutrality by 2050. A key role in realizing this goal is to be played by the financing of sustainable growth ("sustainable finance"), i.e. redirecting cash flows towards sustainable investments.
To this end, the Taxonomy Regulation (EU) 2020/852, among other things, came into force in 2020. The purpose of this regulation is to establish a standardized and binding classification system to determine which economic activities in the EU can be classified as environmentally sustainable. An economic activity is classed as "taxonomy-eligible" if it is listed in the EU Taxonomy and therefore has the potential to contribute to at least one of the following six environmental objectives:
- Climate change mitigation
- Climate change adaptation
- Sustainable use and protection of water and marine resources
- Transition to a circular economy
- Pollution prevention and control
- Protection and restoration of biodiversity and ecosystems
According to EU Taxonomy guidelines, an economic activity is environmentally sustainable and therefore "taxonomy-aligned" if it cumulatively meets the following three conditions:
- It must contribute substantially to the achievement of one or more of the six above-mentioned environmental objectives by complying with the screening criteria defined for that particular economic activity.
- It must do no significant harm to one or more of the other environmental objectives by complying with the Do No Significant Harm (DNSH) criteria defined for that particular activity.
- It must comply with the minimum safeguards applicable to all business activities, which relate primarily to human rights and social and labor standards.
ENVIRONMENTAL INFORMATION | 47
The following reportable key performance indicators (KPIs) are defined by the EU taxonomy: sales revenues, capital expenditure (CapEx) and operating expenditure (OpEx). As a general rule, the taxonomy-eligible and taxonomy-aligned ratios for these KPIs should be indicated. The legislator has prescribed official reporting templates to be used for this purpose. These are reproduced in the Annex to this Sustainability Report. Through Delegated Regulation (EU) 2026/73, the EU has introduced measures to ease the burden on companies by adopting a materiality approach, under which non-material revenues, operating expenses, and capital expenditures do not need to be reported. EDAG is applying these new regulations for the 2025 fiscal year. An explanation of how the KPIs relevant to the EDAG Group are determined can be found in the section Performance indicators in accordance with the EU Taxonomy Regulation.
Taxonomy eligibility
In the first step, taxonomy-eligibility must be assessed, which means that an economic activity must be defined and described in the delegated acts to the EU Taxonomy Regulation.
The EU delegated acts (Delegated Regulation (EU) 2021/2139 and its supplementing Delegated Regulation (EU) 2023/2485) contain descriptions and technical screening criteria for economic activities aimed at the environmental objectives of climate change mitigation and adaptation. The supplement to the Delegated Regulation contains new technical screening criteria covering both existing and new economic activities.
In addition, a further EU delegated act (Delegated Regulation (EU) 2023/2486) describing relevant economic activities and technical screening criteria for the other four environmental objectives was adopted in 2023.
As one of the leading engineering service providers for the global mobility industry, a significant portion of the EDAG Group's activities cannot be assigned to taxonomy categories. In the course of an extensive assessment, we came to the realization that our main economic core activities are not covered by activities described in the EU Taxonomy, and therefore do not classify as taxonomy-eligible. A small portion of our revenue relates to the following taxonomy-eligible economic activities under environmental objective 1 (climate change mitigation) in the "Manufacturing" sector, as defined by the EU Taxonomy:
- Economic activity 3.3 - Manufacture of low-carbon technologies for transport
- Economic activity 3.18 - Manufacture of automotive and mobility components
ENVIRONMENTAL INFORMATION
The following taxonomy-eligible economic activities for environmental objective 1 climate change mitigation at the EDAG Group relate to capital expenditures used to purchase products from taxonomy-aligned economic activities and individual actions (known as category C CapEx):
- Economic activity 6.5 - Transport by motorbikes, passenger cars and light commercial vehicles
- Economic activity 7.3 – Installation, maintenance and repair of energy-efficient equipment
- Economic activity 7.4 – Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings)
Economic activities 6.5, 7.3 and 7.4 relate to investments made in individual actions aimed at achieving low-carbon target activities or reducing greenhouse gas emissions. Among other things, these include building renovation, the leasing of electric cars and the installation of charging stations for electric vehicles (BEV and hybrid cars), all of which are part of the "Roadmap way 2 zero" for reducing greenhouse gas emissions, as outlined in ESRS E1-1.
With regard to the environmental objectives 2 - 6, having analyzed the activity description, we have come to the conclusion that, as in the previous year, the EDAG Group has no economic activities with taxonomy-eligible sales revenues and CapEx in relation to the five aforementioned objectives.
Given the non-materiality of the OpEx KPI (as derived in section "Definition of the denominators for sales revenues, CapEx, and OpEx in accordance with the EU Taxonomy"), the exemption provision under Regulation 2021/2178, Article 2, paragraph 1c, applies. Consequently, in accordance with the Taxonomy guidelines, operating expenses were not analyzed with regard to potential taxonomy-eligible economic activities.
Taxonomy alignment check
An assessment of taxonomy alignment must be carried out for the taxonomy-eligible activities identified. Only taxonomy-eligible activities can be "ecologically sustainable" or taxonomy-aligned, provided the legal requirements for the economic activity concerned are met. To be taxonomy-aligned, a substantial contribution must be made to one of the environmental objectives defined by the Taxonomy Regulation by meeting the relevant technical screening criteria (requirement 1), and a significant adverse impact on another environmental objective must be ruled out on the basis of defined "Do No Significant Harm" (DNSH) criteria (requirement 2). In addition, minimum safeguards relating in particular to the protection of human rights and social and labor standards must be complied with (requirement 3).
Due to the application of materiality thresholds and the corresponding exemption provisions, no compliance assessment of taxonomy-eligible revenue and CapEx was conducted for the 2025 reporting year.
ENVIRONMENTAL INFORMATION | 49
Performance indicators in accordance with the EU Taxonomy Regulation
The calculation of the performance indicator is based primarily on the consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS).
Definition of the denominators sales revenues, CapEx, and OpEx in accordance with EU Taxonomy
Sales revenues as defined in the EU Taxonomy Regulation are defined as net sales revenues in accordance with IFRS, as reported in the Annual Report. These amount to a total of €714 million in the 2025 financial year (2024: €822 million). Further information on sales revenues can be found in the notes to the Consolidated Financial Statements for 2025, in the explanatory notes "Sales Revenue" in the Annual Report.
CapEx as defined by the EU Regulation relates to the following items in the IFRS Consolidated Financial Statements and comprises investments in non-current intangible or tangible assets (not including goodwill) and additions to rights of use in accordance with IFRS 16. These are disclosed in the notes to the 2025 Consolidated Financial Statements, under "Intangible Assets", "Property, Plant and Equipment" and "Rights of Use from Leased Assets". CapEx amounts to a total of €35.4 million in the 2025 financial year (2024: €48.7 million).
According to the definition given in the EU Taxonomy, OpEx includes non-capitalized research and development costs, which can be derived from the notes on "Research and Development Costs" in our Annual Report. On the other hand, the expenses for short-term leases recognized in our consolidated financial statements, as shown in the explanatory notes "Other Notes - Leases" were included, as were "Expenses for Maintenance and Repairs".
OpEx, as defined above, amounts to € 32.7 million (2024: € 33.8 million). These are not material to the business model. Immateriality is assumed due to the fact that, in relation to the cost of goods sold (consisting of material expenses, personnel expenses and other expenses excluding expenses from exchange rate hedging transactions/exchange rate gains, other taxes and levies and non-operating expenses), the OpEx KPI is well below 5 percent. For this reason, use is being made of the exemption provision in accordance with EU Regulation 2021/2178 Art. 2, para. 1c. As in the previous year, therefore, we see no reporting obligation for the 2025 financial year.
ENVIRONMENTAL INFORMATION
Definition of Sales Revenue Numerator and CapEx
To determine which sales revenues qualify for taxonomy classification, each EDAG Group project was assigned a taxonomy identifier as part of the project evaluation process, based on the technical evaluation criteria, where applicable. To determine the proportion of taxonomy-eligible sales revenues, the taxonomy-eligible sales revenues (numerator) are set in relation to the Group's total revenues (denominator). On the basis of the above analysis, the proportion of the EDAG Group's taxonomy-eligible revenue amounts to less than 10 percent. As described above, a significant portion of the EDAG Group's revenue cannot be assigned to economic activities covered by the EU Taxonomy. This underscores the limited relevance of the EU Taxonomy to the business model of an engineering services provider such as EDAG. For this reason, taxonomy-eligible revenue is classified as non-material and, in accordance with the new exemption provision in (EU) 2021/2178, Article 2, para. 1a, is not reported as taxonomy-eligible revenue.
The investments made during the reporting year are assigned to the economic activities identified as relevant to EDAG through a review process. These investments include, in particular, building renovation, the leasing of electric cars and the installation of charging stations for electric vehicles (BEV and hybrid cars). To avoid double counting, each investment can be assigned to only one activity based on the technical evaluation criteria. To determine the proportion of taxonomy-eligible CapEx, the taxonomy-eligible CapEx (numerator) is set in relation to the relevant overall investments of the Group (denominator). The ratio of taxonomy-eligible CapEx is less than 10 percent of the total investment. Due to the low proportion of taxonomy-eligible CapEx and its low significance for the business model (asset-light), the proportion of taxonomy-eligible CapEx is not disclosed in accordance with the exemption provision in (EU) 2021/2178, Article 2, para. 1b.
ENVIRONMENTAL INFORMATION | 51
ESRS E2 POLLUTION
Impacts, Risks and Opportunities
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
The materiality assessment described in ESRS 2 IRO-2 has identified the following impacts, risks and opportunities for the topical E2 Pollution standard:
| E2: Pollution | Position in the VC | Time horizon | |||||
|---|---|---|---|---|---|---|---|
| Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
| Air pollution in the downstream value chain | |||||||
| Production and the use phase in the downstream value chain have negative impacts on the environment and people, in the form of air pollution. | Negative actual impacts | ● | ● | ● | ● | ||
| Water pollution in the downstream value chain | |||||||
| Particularly during the use phase of the vehicles produced by our customers, fuel and oil contamination have negative impacts on the environment and people, in the form of water pollution. | Negative actual impacts | ● | ● | ● | ● | ||
| Soil pollution in the downstream value chain | |||||||
| During the use phase of the vehicles produced by the OEMs, the large number of mobility products has negative impacts, attributable to soil pollution, on the environment and people. | Negative actual impacts | ● | ● | ● | ● | ||
| Microplastics in the downstream value chain | |||||||
| During the use phase, vehicle end users unintentionally generate tire abrasion, which accounts for the major proportion of microsplastics released in the value chain. This has negative impacts on people and the environment. | Negative actual impacts | ● | ● | ● | ● |
ENVIRONMENTAL INFORMATION
The material impacts identified all affect the EDAG Group's downstream value chain. As explained in detail in ESRS E2-1, we have no direct influence over how customers actually utilize and apply our services, or over any potential impacts that might result. It therefore follows that the impacts identified do not directly influence our business model, strategy or decision-making. At present, there is nothing to indicate that the material impacts identified could impair the resilience of our strategy or business model.
Management of the Impacts, Risks and Opportunities
ESRS E2-1 Policies related to pollution
There are potential negative impacts relating to air, water and soil pollution and microplastics in the downstream value chain in our customers' operations or in the use phase in the end consumer's hands. Where possible, we point out to our customers any negative impacts which might result from the utilization and application of our services, and indicate possible alternatives aimed at achieving a reduction in the negative impacts relating to air, water and soil pollution. As an economically, ecologically and socially sustainably operating engineering service provider, we regard compliance with legal requirements to minimize negative impacts on the environment as a self-evident aspect of good governance.
Having said that, as already mentioned, we have no direct influence or control over how customers actually utilize and apply our services. For this reason, the potential effects of the actions and decisions of our customers or end users are of no relevance to our decision-making and management processes. Consequently, the EDAG Group has not adopted any company-wide strategies, guidelines or concepts.
ESRS E2-3 Targets related to pollution
This means that no goals or actions in relation to pollution in the downstream value chain are adopted either.
ESRS E2-4 Pollution of air, water and soil
The prescribed disclosure requirements relate to the operations of the EDAG Group. However, no significant impacts, risks or opportunities were identified in the company's own business activities. The disclosures specified in the standard are therefore not applicable to the EDAG Group.
SOCIAL INFORMATION | 53
SOCIAL INFORMATION
ESRS S1 OWN WORKFORCE
Impacts, Risks and Opportunities
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
As an engineering services provider, the EDAG Group considers its employees to be its most important resource. As a personnel-intensive company ("people business"), our value creation is based primarily on the expertise and experience our employees. That's why our employees are at the heart of our business model. This strong focus has a positive impact on the company's workforce, for example through employee development and attractive working conditions, which will be discussed in further detail below.
To attract and retain employees, a focus is placed on positive impacts on all employees. For this reason, employee matters are also included in our strategy (e.g. talent factory for all employees). As a result of our business model, we are required to ensure that the technologies and methods we use in the provision of our services are always state-of-the-art. Our work therefore involves the advancement of both mobility and industry (reinvent engineering) and our employees (reinvent yourself). Conversely, this also means that every employee needs to continuously develop and improve his or her skills; something which is encouraged by EDAG (see also section ESRS S1 IRO Training).
The details in ESRS 2 and S1 include all permanent employees, managers, managing directors, apprentices and dual system students. In addition to the above-mentioned employee groups, temporary workers may also be affected to a slight degree. Other occupational groups, such as interns among others, account for only a small percentage of the EDAG Group's workforce. If they were to be included, particularly in the quantitative performance figures, this would change the significance of the figures, e.g. of the fluctuation rate. Analogous to the Annual Report and internal management, these other occupational groups are therefore not included in this Sustainability Report.
The double materiality assessment described in ESRS 2 IRO-2 has identified the following impacts, risks and opportunities for the topical standard S1 Own workforce:
SOCIAL INFORMATION
S1 Own workforce - Working conditions
| Secure employment | Position in the VC | Time horizon | ||||
|---|---|---|---|---|---|---|
| Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | |
| The EDAG Group has a positive impact on its employees in the field of secure employment, as the company works almost entirely with permanent employment contracts. | Positive actual impacts | ● | ● | ● | ● | |
| Working time | Positive actual impacts | ● | ● | ● | ● | |
| By offering flexible working hours, little night, weekend or shift work and adequate scheduling lead times, EDAG has a positive impact on its employees. | Positive actual impacts | ● | ● | ● | ● | |
| Work-life balance | Positive actual impacts | ● | ● | ● | ● | |
| By offering attractive working time models, the EDAG Group has a positive impact on its employees. For many of our employees, this includes leave being granted for family reasons, the option of part-time work, mobile work and the use of working time accounts. | Positive actual impacts | ● | ● | ● | ● | |
| Adequate wages | Positive actual impacts | ● | ● | ● | ● | |
| EDAG pays its employees an adequate and locally appropriate wage. Depending on the location or country, there are also special payments and other financial incentives. | Positive actual impacts | ● | ● | ● | ● | |
| Sharply increasing personnel costs | Positive actual impacts | ● | ● | ● | ● | |
| As we are a labor-intensive company, high or rising personnel expenses have a significant impact on earnings. In this sense, a sharp increase in personnel expenses also poses a risk for the EDAG Group. | Risk | ● | ● | ● | ● | |
| Social dialog, the existence of Works Councils and the rights of employees to information, consultation and participation | Positive actual impacts | ● | ● | ● | ● | |
| The EDAG Group maintains an open and honest dialog with its employees, in keeping with its corporate culture. Workers' representatives (depending on local conditions) are regularly informed and consulted, and employees have regular staff appraisals with their immediate superiors. | Positive actual impacts | ● | ● | ● | ● | |
| Health and safety | Positive actual impacts | ● | ● | ● | ● | |
| The EDAG Group has a positive impact with its active health management and modern workplace design. Among other things, this includes health-promoting working conditions and a range of health-related courses. | Positive actual impacts | ● | ● | ● | ● |
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S1 Own workforce – Equal treatment and opportunities
| Gender equality and equal pay for work of equal value | Position in the VC | Time horizon | ||||
|---|---|---|---|---|---|---|
| Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | |
| The EDAG Group is committed to the principle of equal pay for equal work, regardless of gender or social background. Our diversity concept applies to our administrative, management and supervisory bodies. | Positive actual impacts | ● | ● | ● | ● | |
| Diversity | ||||||
| Our strength lies in the diversity of our employees. Utilizing this potential, we aim to continue to apply our individual skills and talents to exploring new, innovative and creative avenues and finding solutions. As an internationally active company, EDAG is clearly committed to diversity and general equality. This refers explicitly not only to gender, but also to age, sexual orientation, religious affiliation, ethnic origin, belonging to minorities or indigenous peoples, disabilities and other personal attributes of our employees. | Positive actual impacts | ● | ● | ● | ● | |
| Training and skills development | ||||||
| EDAG offers its employees a variety of training and development concepts, including classroom-based and online training, skills development programs, and LinkedIn Learning opportunities. The purpose of these programs is to enable our employees to enhance their existing knowledge and acquire new skills. | Positive actual impacts | ● | ● | ● | ● | |
| Employment and inclusion of persons with disabilities | ||||||
| Wherever possible, the EDAG Group promotes barrier-free workplaces for people with disabilities. In accordance with our Code of Conduct, we do not tolerate any discrimination or harassment on the grounds of physical or mental disabilities. | Positive actual impacts | ● | ● | ● | ● |
The transition plan, which is explained in more detail in section E1 Climate change, does not have any material impact on the company's own workforce.
SOCIAL INFORMATION
ESRS S1-6 Characteristics of the employees
Data on the number of employees by gender
| Gender | Number of employees 2025¹ | Number of employees 2024¹ |
|---|---|---|
| Male | 6,528 | 7,185 |
| Female | 1,775 | 1,948 |
| Other | - | - |
| Not disclosed | - | - |
| Total employees | 8,303 | 9,133 |
¹ Headcount as of December 31 of each year
The proportion of women in the EDAG Group's workforce is unchanged at 21 percent. The majority of employees work in STEM occupations. Traditionally, these attract a high proportion of men, which is reflected in the low proportion of female employees in the EDAG Group. Section ESRS S1 IRO Gender equality explains how gender equality is strengthened in the EDAG Group.
As of December 31, 2025, the EDAG Group employs 8,303 people worldwide. This metric is also included in the Group Management Report under the section "Non-Financial Performance Indicators" in the 2025 Annual Report.
Number of employees in selected countries
| Country | Number of employees 2025¹ | Number of employees 2024¹ |
|---|---|---|
| Germany | 5,205 | 6,010 |
¹ Headcount as of December 31 of each year
According to ESRS S1-6, paragraph 50a, disclosure is mandatory only for countries in which the EDAG Group has 50 or more employees representing at least 10 percent of the EDAG Group's total workforce. Within the EDAG Group, only Germany exceeds this limit.
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Employees by type of contract, broken down by gender
| 2025¹ | |||||
|---|---|---|---|---|---|
| Female | Male | Other | Not disclosed | Sum total | |
| Number of employees | 1,775 | 6,528 | - | - | 8,303 |
| Number of employees with permanent contracts | 1,695 | 6,252 | - | - | 7,947 |
| Number of employees with temporary contracts | 80 | 276 | - | - | 356 |
| Number of employees with on-call contracts | - | - | - | - | - |
| Number of full-time employees | 1,294 | 6,044 | - | - | 7,338 |
| Number of part-time employees | 481 | 484 | - | - | 965 |
¹ Headcount on December 31, 2025. Gender as indicated by the employees
| 2024¹ | |||||
|---|---|---|---|---|---|
| Female | Male | Other | Not disclosed | Sum total | |
| Number of employees | 1,948 | 7,185 | - | - | 9,133 |
| Number of employees with permanent contracts | 1,861 | 6,896 | - | - | 8,757 |
| Number of employees with temporary contracts | 87 | 289 | - | - | 376 |
| Number of on-call employees | - | - | - | - | - |
| Number of full-time employees | 1,433 | 6,653 | - | - | 8,086 |
| Number of part-time employees | 515 | 532 | - | - | 1,047 |
¹ Headcount on December 31, 2024. Gender as indicated by the employees
SOCIAL INFORMATION
$ Group-wide and country-specific guidelines and concepts come under the heading of "policies".
In the 2025 financial year, 1,594 employees (2024: 1,356) left the EDAG Group either voluntarily or due to dismissal, retirement or death in service. This represents an employee turnover rate of 16.0 percent (2024: 12.8 percent). The denominator used to calculate this rate was the total number of employees in the previous year plus new entrants in the financial year. This development is mainly attributable to comprehensive measures adopted to increase productivity and efficiency.
Management of the Impacts, Risks and Opportunities
The EDAG Group has decided to report information on the management of impacts, risks, and opportunities in the form of policies⁵, objectives, measures, and key performance indicators in accordance with the Minimum Disclosure Requirements (MDR), organized by relevant IRO. With regard to the statements in these sections, we wish to point out that the reporting refers to information provided with regard to the impacts, risks and opportunities presented and the associated policies, actions and targets available to the EDAG Group, and that this information and data thus forms part of the Sustainability Report. If information concerning policies, actions and targets relating to the material IROs identified in the materiality analysis is not disclosed, this is because this specific information is not generally available, as it was not previously relevant to decision-making and management processes.
ESRS S1-1 Policies related to own workforce
The information on the policies and concepts the EDAG Group has in place to manage the material impacts and risks related to its own workforce are explained in the sections on the individual IROs, together with the corresponding targets, actions and (if available) metrics, taking into account the ESRS 2 MDR-P.
As an internationally operating company, EDAG makes a point of ensuring compliance with human rights and recognized labor standards at our approximately 30 international subsidiaries across the globe. With the EDAG Code of Ethics, the EDAG Group has committed to the sustained support of the ten principles of the United Nations Global Compact and to continual improvement in their implementation. The EDAG Code of Ethics is available on our website. One of the principles established by the code is that the EDAG Group supports and respects the protection of internationally proclaimed human rights within its sphere of influence, and ensures that the EDAG Group is not complicit in human rights abuses. These also include freedom of association, the abolition of forced and child labor, the elimination of discrimination and corruption, and the right to collective bargaining. Across the globe, EDAG respects, protects and promotes the requirements and expectations of the international community, as set down in the United Nations Universal Declaration of Human Rights and the European Convention on Human Rights. In addition, the EDAG Group is also committed to the conventions and recommendations of the International Labour Organization (ILO) on labor and social standards, the United Nations Guiding Principles on Business and Human Rights, and the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises.
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Human rights issues within the EDAG Group can be addressed using the procedures outlined in ESRS S1-2 for engaging with the company's own workforce and workers' representatives. There are a number of reporting channels through which employees can seek redress for any human rights impacts that might occur. These include regular communication between employees and their managers, staff assemblies, drop-in sessions held by the Works Council, HR business partners and our whistleblower hotline. When using the whistleblower hotline, which can be done anonymously, a standardized process is followed.
The EDAG Group has strategies for the prevention of work-related accidents. More information on the policies, targets and actions relating to occupational safety can be found in the section on ESRS S1 IRO Health and safety.
The EDAG Group has a Code of Conduct in which requirements for anti-discrimination and equal treatment are firmly established. No discrimination or harassment, especially those on account of characteristics such as gender, cultural or national origin (ethnicity), citizenship, religion or belief, physical or mental disability, age, sexual orientation, or other legally protected characteristics, will be tolerated within the EDAG Group. In order to avoid unequal treatment and discrimination, we actively promote diversity within our own sphere of influence and identify vulnerable groups among our employees. The principles of equal opportunity and equal treatment are important cornerstones for treating each other fairly, openly and without prejudice. In addition, EDAG has set itself targets for female executives at its German subsidiaries and formed a Gender Equality Team (see the chapter on S1 IRO Gender equality for more details) to promote equal opportunities. To promote inclusion, EDAG entered into an inclusion agreement in the 2025 fiscal year. This agreement is discussed in greater detail in Chapter S1 IRO Employment and inclusion of persons with disabilities. To raise awareness and prevent discrimination, employees and executive staff undergo regular training as part of our compliance program. These topics are addressed in the chapters S1 IRO Employment and inclusion of persons with disabilities and G1-1 Business conduct policies and corporate culture.
According to §154 of the German Social Security Code (SGB) IX, the EDAG Group's German companies are also obliged to allocate at least five percent of jobs to severely disabled people.
SOCIAL INFORMATION
ESRS S1-2 Processes for engaging with own workers and workers' representatives about impacts
In some countries, there are local Works Councils/workers' representatives who, depending on local conditions, play a role in decision-making processes. The Works Councils of the two major German companies, EDAG Engineering GmbH and EDAG Production Solutions GmbH & Co. KG, are regularly involved in decisions concerning the employees of the two companies. This is an ongoing process covering not only the legally prescribed areas, but also other aspects. This also includes the right to information, consultation and participation for certain decisions. The Works Council in Germany discusses the issues that fall under its remit in committees, which usually meet at least once a month. Some members of the Works Council are released from their regular duties to enable them to carry out this work. Communication between the Executive Management and employee representatives takes the form of regular meetings between the Works Council and the CFO in his capacity as Labor Director and the Head of HR. To ensure close contact and communication with the workforce, the Works Council holds regular drop-in sessions at many sites, and the results of these discussions are incorporated into its work. In addition, employees meet with their managers at least once a year to discuss performance.
In its capacity as the employees' representative body, the Works Council negotiates and concludes company agreements with the Executive Management. The contents of the company agreements include provisions regarding working hours, social benefits, additional benefits, and other specific topics, some of which are addressed in the following sections of this standard. The regular forms of communication described above are established structures at EDAG, and facilitate cooperation with employees. In addition, the EDAG Group can carry out staff surveys to gain insights into the views of employees and the effectiveness of employee collaboration. Insights into the views of individual groups within the company's own workforce is gained at EDAG by means of communication not only with the Works Council already discussed in the previous sections and in the chapter on ESRS S1 IRO Social dialogue, but also with the Representatives for Disabled Employees and the Diversity Team. The Representatives for the Disabled Employees elected for the two major German companies ensures that laws governing the interests of disabled employees are observed. They can attend meetings of other interest groups and request that matters of particular relevance to disabled employees be discussed at Works Council meetings. The Diversity Team focuses on the issue of gender equality. This is described in more detail in the section on ESRS S1 IRO Gender equality.
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ESRS S1-4 Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions
The information on the actions taken by the EDAG Group to manage the material impacts and risks related to its own workforce are explained in the sections on the individual IROs, together with the corresponding targets, policies and (if available) metrics, taking into account the ESRS 2 MDR-A.
The EDAG Group is a "people business" which focuses strongly on human interaction, relationships and services. Insofar, employees hold a prominent position. To avoid any material negative impacts on its own workforce, the company is guided by the needs of its employees and has adopted various policies relating to employee matters (including several company agreements, a Code of Conduct and a Code of Ethics).
ESRS S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities
The information on the EDAG Group's targets regarding the management of the material impacts and risks related to its own workforce are explained in the sections on the individual IROs, together with the corresponding policies, actions and (if available) metrics, taking into account the ESRS 2 MDR-T.
Only for IRO Diversity has the EDAG Group set itself targets which meet all the requirements of ESRS S1-5 in conjunction with ESRS 2 MDR-T for reporting on targets related to advancing positive impacts. The EDAG Group continuously evaluates other key IROs for which it can set targets in line with the ESRS. This is done by the departments, HR in particular, where necessary in consultation with the CFO in his capacity as Labor Director.
SOCIAL INFORMATION
ESRS S1 IRO Secure employment
| Position in the VC | Time horizon | ||||
|---|---|---|---|---|---|
| Upstream | Own operations | Downstream | Short-term | Medium-term | |
| Secure employment | |||||
| The EDAG Group has a positive impact on its employees in the field of secure employment, as the company works almost entirely with permanent employment contracts. | Positive actual impacts | ● | ● | ● | ● |
Employees are the most important resource for the EDAG Group. The focus is on attracting and retaining talented employees, continually developing their skills, and ensuring their long-term ties to the company. As part of the EDAG Group's commitment to human and labor rights, as set out in the values and obligations of the Code of Ethics and the Code of Conduct, there is a high proportion of permanent contracts for employees throughout the EDAG Group.
In order to be able to respond flexibly to shifts in demand, employee requirements and local conditions, the EDAG Group has no German or global collective policy, measures or targets, though, which meet the requirements of the ESRS in place for this IRO. It is not necessary for EDAG, as more than 95 percent of our employees are on permanent contracts. In its efforts to secure jobs, the EDAG Group has maintained this approach in 2025, which is reflected in what we regard as a low proportion of temporary contracts, - currently approx. 4 percent (see section ESRS S1-6) - a large proportion of which are apprentices.
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ESRS S1 IRO Working time and IRO Work-life balance
| Position in the VC | Time horizon | ||||||
|---|---|---|---|---|---|---|---|
| Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
| Working hours | |||||||
| By offering flexible working hours, little night, weekend or shift work and adequate scheduling lead times, EDAG has a positive impact on its employees. | Positive actual impacts | ● | ● | ● | ● | ||
| Work-life balance | |||||||
| By offering attractive working time models, the EDAG Group has a positive impact on its employees. For many of our employees, this includes leave being granted for family reasons, the option of part-time work, mobile work and the use of working time accounts. | Positive actual impacts | ● | ● | ● | ● |
Policy
In line with national legislation and depending on their activities, EDAG Group employees generally have flexible working hours. In Germany, this is governed by a number of company agreements concluded in collaboration with employees and their workers' representative, which are published on the intranet. The aim of these company agreements is to make working hours more flexible, to create a better work-life balance, and to allow for advance planning of night, weekend and shift work. Defining a core period and a bandwidth for flexible hours gives employees not included in a specially agreed working model the opportunity, on the basis of a time account in SAP, to choose their own individual working hours within the bandwidth defining starting and finishing times, though taking company requirements into account. Subsidiaries are guided by the German rules and regulations, applying them as far as possible in their own countries, or have agreed upon local regulations with their workers' representative or employees.
Taking social issues into account is an essential component of the regard we have for our employees. In concrete terms, for EDAG employees in Germany this means fostering a healthy work-life balance, generally with 30 days' annual leave, opportunities for flexible working hours, and working time accounts. Mobile working provides further opportunities for employees whose work lends itself to flexible working arrangements to choose where they work. In his capacity as Labor Director, the CFO is the most senior level with responsibility for ensuring compliance with policies.
SOCIAL INFORMATION
Targets
Defining a core period and a bandwidth for flexible hours gives employees the opportunity to organize their own individual working hours within the given framework. In addition, employees have the option to work part-time in the majority of positions. A large proportion of the positions we advertise also come with a part-time option. This makes it easier to find a balance between work, personal commitments and leisure time. Since this option serves as a flexible instrument provided at the request of employees, the EDAG Group has not set any targets relating to it. 11.6 percent (2024: 11.5 percent) of EDAG Group employees currently work part-time. Working from home is used as a flexible tool. The EDAG Group deliberately chose not to set a specific target, as both the individual needs of employees and the project- and client-specific conditions vary greatly.
Actions
For the majority of positions, the EDAG Group offers flexible working hours and the option of part-time work. Employees and supervisors are in continuous communication, and regular staff appraisals are held to ensure that professional and personal concerns are balanced, and employee satisfaction is increased. Working time accounts, which can be used for sabbaticals or early retirement models, are also an element of the flexible organization of working hours. In the 2025 fiscal year, employees in Germany could voluntarily reduce their working hours or take unpaid leave, each with partial wage compensation. This allowed employees to enjoy more free time on a short-term basis for a limited period of time, on top of the permanent part-time option and working time accounts.
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ESRS S1 IRO Adequate wages and increasing personnel costs
| Position in the VC | Time horizon | ||||||
|---|---|---|---|---|---|---|---|
| Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
| Adequate wages | |||||||
| EDAG pays its employees an adequate and locally appropriate wage. Depending on the location or country, there are also special payments and other financial incentives. | Positive actual impacts | ● | ● | ● | ● | ||
| Sharply increasing personnel costs | |||||||
| As we are a labor-intensive company, high or rising personnel expenses have a significant impact on earnings. In this sense, a sharp increase in personnel expenses also poses a risk for the EDAG Group. | Risk | ● | ● | ● |
Policy
EDAG employees are paid an adequate and locally appropriate wage. In a few small subsidiaries are collective pay agreements in place. Since 2023, employees in Germany have been organized into job families and job levels within the job structure. The remaining countries are gradually following suit. The job structure introduced by HR creates transparency regarding career development opportunities, both horizontally across job families and vertically across job levels, as well as describing the requirements for different positions and serving as a basis for additional HR tools.
Targets
The idea behind the Pay Transparency Directive (Directive (EU) 2023/970), which came into force on June 6, 2023, was to reduce the adjusted gender pay gap and make salaries more comparable. EU member states have until June 7, 2026, to implement the requirements. In Germany, this means revising the 2017 Act to Promote Transparency of Pay Structures (Entgelttransparenzgesetz). An EDAG project team is currently working on salary bands, so that the legal requirements can be implemented by EDAG.
Actions
The salaries of EDAG Group employees are regularly reviewed and adjusted where necessary, to reward them for their performance and so maintain employee satisfaction. In labor-intensive companies like EDAG, salary increases have a negative impact on the economic result if the cost cannot be passed on to the customers in full or offset by increases in efficiency and performance. For this reason, the interests of the EDAG Group are balanced out against those of its employees when salaries are being adjusted.
SOCIAL INFORMATION
In Germany, the type and distribution of pay adjustments for employees are negotiated with the Works Council. In addition to general adjustments, annual individual adjustments can also be made to even out any irregularities in the pay gap. Outside Germany, salaries are adjusted based on local conditions. Staff satisfaction with individual salary components and those paid to all employees is discussed in discussions with staff, for instance during annual staff appraisals or leaving interviews, and, based on this, adjusted if necessary.
Generally, the financial benefits paid in Germany, some of which are voluntary, include:
- 13th salary equal to 85 percent of a monthly salary
- Compensation for overtime in accordance with company agreement and employment contract
- Profit sharing if predefined Group targets are achieved
- Project bonuses, responsibility allowances, individual performance-related bonus payments
- Additional monthly tax-free payment to a prepaid money card
- Capital-forming payments
- Premium for recommending a new member of staff
- Inventor's bonus
- Financial support for education and training measures
- Top-up of short-time compensation
- Numerous online and local purchasing benefits
- Company cars for employees from level 4
- Marriage and childbirth grants
- Bonus for specific company anniversaries
- Subsidized lunch at our canteens and partner restaurants
In addition, EDAG subsidizes or pays for a number of insurance and pension benefits in Germany:
- Group accident insurance
- Attractive group contracts for life assurance and occupational disability insurance
- Comprehensive insurance for private cars used for business travel
- Company pension scheme in the form of direct insurance policies with employer contributions of up to 15 percent
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ESRS S1-10 Adequate wages metrics
All EDAG Group employees are paid an adequate wage in line with the applicable national minimum wages. These reference values are either defined by national minimum wages or handed over to collective bargaining parties.
The underlying compensation data was collected locally in the companies, and processed centrally. When assessing whether pay was appropriate, only the contractually agreed remuneration components actually received by employees during the financial year were evaluated. Unpaid absences lasting longer than four weeks and inactive employment periods were excluded when calculating the individual hourly wage. The standard basis for comparison is the minimum hourly wage. As in the previous year, the data analyzed showed no failure to pay the relevant minimum wage.
ESRS S1 IRO Social dialog, the existence of Works Councils and the rights of employees to information, consultation and participation
| Position in the VC | Time horizon | |||||
|---|---|---|---|---|---|---|
| Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | |
| Social dialog, the existence of Works Councils and the rights of employees to information, consultation and participation | ||||||
| The EDAG Group maintains an open and honest dialog with its employees, in keeping with its corporate culture. Workers' representatives (depending on local conditions) are regularly informed and consulted, and employees have regular staff appraisals with their immediate superiors. | Positive actual impacts | ● | ● | ● | ● |
Policy
In some countries, EDAG employees are organized in Works Councils. Where they exist, local Works Councils/workers' representatives are involved in important decision-making processes. This also includes the right to information, consultation and participation for some decisions. In Germany, the works constitution provides the framework for determining the depth and detail of discussions on employment-related issues. The EDAG Group does not simply comply with the legal requirements; it also consults the Works Council on other issues, which is monitored by our HR Legal department. The goal is to achieve a constructive dialog leading towards mutually acceptable decisions.
SOCIAL INFORMATION
To this end, regular elections are held for the employees at EDAG Engineering GmbH and EDAG Production Solutions GmbH & Co. KG in Germany to elect a company-wide Works Council and Youth and Apprentice Representation for each company. At sites outside of Germany, local conditions are observed. At some sites, employees are represented by an elected body, similar to the system in place in Germany, while elsewhere, there are designated workers' representatives. These maintain an ongoing dialog with the management of their entities, and negotiate with them in the interests of the employees.
In addition to workers' representatives, the EDAG Group also prioritizes the exchange of ideas between employees and their managers. This includes regular interaction in the day-to-day work environment and, in Germany, the annual staff appraisal. In Germany, arrangements for these regular staff appraisals are standardized in a company agreement. An IT tool is used to support the process, which is monitored by HR.
Targets
The Works Council in Germany discusses the issues that fall under its remit in committees, which usually meet at least once a month. Communication between the Executive Management and employee representatives takes the form of regular meetings between the Works Council and the CFO in his capacity as Labor Director and the Head of HR.
The staff appraisal serves as a tool for ensuring that employees are given tasks which utilize their abilities, strengths and skills, and in this way increasing employee satisfaction and securing competitiveness and jobs in the medium and long term. It is geared towards improving communication and cooperation between supervisors and employees, recording performance levels, and ensuring the continuous advancement and development of the employee (for more information, see section ESRS S1 IRO Training).
Measures
Staff assemblies for the workforce are held at regular intervals in Germany. Questions raised by employees are answered here by the Works Council and Executive Management. In addition to the staff assemblies, the Works Council also holds regular drop-in sessions at many sites, to maintain close contact and communication with the workforce. Through this direct interaction, works council members can find out what issues are important to the employees. These findings are discussed with the employer, and used to find and determine regulations within the company. In addition, employees are provided with event-related information, new regulations (e.g. company agreements), the current status of Works Council activities and other current issues by the Works Council and Executive Management; this information is provided in various formats such as circulars or intranet announcements.
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As already mentioned, alongside close communication in day-to-day operations, EDAG places a strong emphasis on standardized staff appraisals held at least once a year between employees and their managers. During these appraisals, employees discuss their performance over the past evaluation period and future prospects, agree on professional development goals, and are offered an official forum for dialogue. For the sake of transparency, the appraisal is documented.
ESRS S1-8 Social dialog metrics
At the EDAG Group, 69 percent of all employees are covered by employee representatives (previous year: 73 percent).
| Coverage rate | Collective bargaining coverage | Social dialog | ||||
|---|---|---|---|---|---|---|
| European Economic Area¹ | Non-European Economic Area¹ | Workers’ representatives in the EEA¹ | ||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |
| 0 – 19% | Germany | Germany | - | - | - | - |
| 20 – 39% | - | - | - | - | - | - |
| 40 – 59% | - | - | - | - | - | - |
| 60 – 79% | - | - | - | - | - | - |
| 80 – 100% | - | - | - | - | Germany | Germany |
¹ According to ESRS S1-8, disclosure is mandatory only for countries in which the EDAG Group has at least 50 employees, representing at least 10 percent of the total number of employees. Within the EDAG Group, this applies only to Germany.
No agreement in accordance with ESRS S1 paragraph 63b is in place at the EDAG Group.
SOCIAL INFORMATION
ESRS S1 IRO Health and safety
| Position in the VC | Time horizon | |||||
|---|---|---|---|---|---|---|
| Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | |
| Health and safety | ||||||
| The EDAG Group has a positive impact with its active health management and modern workplace design. Among other things, this includes health-promoting working conditions and a range of health-related courses. | Positive actual impacts | ● | ● | ● | ● |
Policy
EDAG's health concept for employees in Germany was developed in collaboration with various departments, and approved by the Executive Management. In his capacity as Labor Director, the CFO is the most senior level in our organization with accountability for the health concept, which consists of a vision, a mission and five guiding principles.
Vision: As a global engineering service provider, we offer a health-promoting corporate culture in which people feel appreciated and are valued for their individuality, skills and performance.
Mission: The Health Management team helps managers and employees to create health-promoting working conditions, raise health awareness, and encourage them to take charge of their own health.
Guiding principles:
- For us at EDAG, it goes without saying that we create the kind of working conditions that ensure well-being, performance and business success.
- Management are role models for health-conscious behavior. They create a health-promoting work environment and ensure that people treat each other with respect.
- All employees take responsibility for both their own health and well-being and for making an active contribution to health and safety at work.
- Company health information is widely communicated and made available to all employees.
- Health-related questions should be addressed to the Health Management team in Germany which, in cooperation with the technical departments and employees, develops programs to improve company health.
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The health mission statement is available on the intranet, where it can be accessed by all employees. Health Management regularly holds monitoring meetings with Quality Management. Company rehabilitation management for employees with long-term illnesses is professionally organized by our Health Management team. The employees concerned are actively approached by our HR business partners who, with the assistance of our occupational rehabilitation process, help them regain their ability to work and return to the workplace.
Occupational health and safety, two of the EDAG Group's framework principles, are based on the Occupational Health and Safety Management System (ISO 45001). For us, health is more than the absence of illness, and we work together to ensure that each and every one of us has a safe work environment. The aim is to operate equipment and processes in such a way that neither our employees nor the environment are endangered. Safety has top priority at EDAG, and the aim is to protect our employees from work-related dangers and implement preventive measures to ensure their good health. Our aim is to ensure and promote the safety of all employees. Under no circumstances does the company culture permit the protection of the people who contribute to our success to be subordinated to business interests. The Group Executive Management, managerial staff and all employees are responsible for the prevention of hazards, injuries, industrial accidents and occupational diseases. Safety concerns are to be openly addressed, and employees are to inform their supervisors and the on-site safety officers without delay.
Targets
The aim of our company Health Management team is to help managers and employees to create health-promoting, motivating working conditions, raise health awareness, and encourage them to take charge of their own health. In the process, our company health management program promotes both the physical and the mental fitness of our employees. No quantitative targets have been set for the health mission statement, as it provides a general framework for activities, and actions - health courses for example - are developed selectively and according to the situation.
The interim status and accident statistics for the German sites are reported to the management at the regular meetings of the Committee for Health and Safety at Work, which is composed of representatives of various interest groups. Any action that needs to be taken is also determined and agreed at these meetings. In the rest of the world, local procedures are adopted.
SOCIAL INFORMATION
Measures
EDAG provides its employees with an ergonomic and safe workplace. On top, we also have numerous ongoing offers to improve fitness and health in Germany. These include both digital and live events addressing key areas such as resilience and mental health, strength and exercise, and healthy eating. In 2025, these included:
- Running events and running courses at various locations worldwide
- Mental health: Digital Couches series (including Laughter and Humor as a Resource, Groundhog Day), Talk and seminar series on MBSR (mindfulness), and Talk on the gut-brain axis
- Windhund talk series: Topics such as vitality, stress management, trust, personal responsibility, nutrition, addiction prevention, and the yoga mindset
- Lecture series on nutrition, stress, eye health, ergonomics, resilience, burnout prevention, back health, and sustainability
- Preventive healthcare (heart age check, posture assessment, and foot pressure analysis)
- Nutrition lecture series (Cancer prevention in everyday life, Fatty liver: What caused it?, Healthy eating on a budget, Diets: What really works?, The best sports nutrition, Anti-inflammatory diet, Immune boosters)
- Activities for relaxation (online and in-person yoga classes, MBSR training)
- Physical activity (office aerobics, HIIT, Pilates)
- Digital Advent calendar featuring exercise, nutrition, and mental health in the "WorkLifePortal" app
- Specially for management: healthy leadership and managing employees with health issues
The activities provided serve to raise the awareness of employees for health issues, to increase their health literacy and in this way improve their health and increase their performance. They are carried out on site as needed, sometimes also online, in order to increase participation levels.
In addition to the courses, the "WorkLifePortal" platform - a health app - offers a wide range of healthy activities and support for physical and mental well-being, from immediate assistance with tension to stress relief. All health management services are listed in the app.
In order to provide on-site support for employees not employed at the major sites, and offer them activities aimed at maintaining performance and raising health awareness, we have implemented a concept for health multipliers at some of the German sites. The health multipliers, who work on behalf of the Health Management team, are the on-site contacts for managers and employees.
They take health management-related issues to the various sites, discuss site-specific needs, and organize local health-related activities.
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To complete our company health management services, we also offer our employees in Germany an Employee Assistance Program (EAP). This service is holistic and preventive short-term counseling for health, professional and personal issues along the lines of the concept of "helping people to help themselves".
2025 marked the third year in a row where blood donation sessions were held at several sites - events with a positive social impact both inside and outside of the EDAG Group.
Training and briefing sessions play an essential role in, and are the basis of safe working practice. To prevent industrial accidents, work-related ill health and work-related health hazards, it is important that hazards are identified and presented, and that there are specific briefing sessions for the employees. The briefing provided to employees regarding occupational safety and health is tailored to their specific workplace or area of responsibility. It is carried out by supervisors before work can begin in the following cases: when new employees are hired, in the event of changes to activities, if new equipment or technology is introduced, and at least once a year, regardless of any changes. The briefings are adapted in line with the hazards concerned and where necessary repeated regularly; a distinction is made between general, commercial and technical safety instructions.
The occupational health and safety officers constantly develop and coordinate measures. In order to prevent accidents, the Committee for Health and Safety at Work regularly identifies potential for improvement and adopts appropriate actions during its meetings. Preventive measures can be derived from the results of accident investigations. Potential dangers are also pointed out to the employees during inspections of the company premises.
ESRS S1-14 Health and safety metrics
| Health and safety metrics | 2025 | 2024 |
|---|---|---|
| Percentage of people in its own workforce who are covered by the undertaking's health and safety management system based on legal requirements and/or recognised standards or guidelines | 100% | 100% |
| Number of fatalities as a result of work-related injuries | 0 | 0 |
| Number of recordable work-related accidents | 30 | 54 |
| Rate of recordable work-related accidents | 2.3 | 3.7 |
The underlying data was collected locally and then centrally consolidated. Occupational accidents involving at least one day of absence were included in the survey. The number of working hours is based on the working hours recorded by all EDAG Group employees.
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ESRS S1 IRO Gender equality and equal pay for work of equal value and IRO Diversity
| Position in the VC | Time horizon | ||||||
|---|---|---|---|---|---|---|---|
| Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
| Gender equality and equal pay for work of equal value | |||||||
| The EDAG Group is committed to the principle of equal pay for equal work, regardless of gender or social background. Our diversity concept applies to our administrative, management and supervisory bodies. | Positive actual impacts | ● | ● | ● | ● | ||
| Diversity | |||||||
| Our strength lies in the diversity of our employees. Utilizing this potential, we aim to continue to apply our individual skills and talents to exploring new, innovative and creative avenues and finding solutions. As an internationally active company, EDAG is clearly committed to diversity and general equality. This refers explicitly not only to gender, but also to age, sexual orientation, religious affiliation, ethnic origin, belonging to minorities or indigenous peoples, disabilities and other personal attributes of our employees. | Positive actual impacts | ● | ● | ● | ● |
a With regard to the Code of Conduct, please see section G1-1 for disclosures in accordance with ESRS MDR-P.
Policy
EDAG aims to utilize the diversity of its workforce as a source of potential and strength, continuing to apply our individual skills and talents to continually explore new, innovative, and creative approaches and find solutions. The only way to achieve equal opportunities is to exclude nobody. For this reason, we have set down the following in our Code of Conduct: We do not tolerate any discrimination or harassment on account of gender, cultural or national origin (ethnicity), citizenship, religion or belief, physical or mental disability, age, sexual orientation, or other legally protected characteristics.
EDAG is committed to the principle of equal pay for work of equal value, regardless of gender. We aim to create equal opportunities for all EDAG employees. Accounting for 21 percent (2024: 21 percent) of the total workforce and 4.9 percent (2024: 5.1 percent) of the top two management levels directly below the Group Executive Board, women are an underrepresented group at EDAG. Women are offered the same opportunities as men and should also be able to establish themselves in management positions. As a company, it is our duty to create ideal working conditions for all potential and existing employees. Our target is to increase the proportion of women in the workforce, and in top management in particular.
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It is not only intrinsic motivation that spurs us to create equal opportunities. We strive for gender equality because we understand it as part of our culture. Equality includes equal pay for work of equal value, regardless of gender, a principle we have set out in our group-wide Code of Conduct. This is available on the intranet and on our homepage. We adhere rigorously to the principle of fair pay, and offer our employees attractive social benefits and fair working conditions. In this respect, too, the Group Executive Management and senior management have a special responsibility.
Targets
In preparation for the European Pay Transparency Directive, work is currently being carried out on the introduction of salary bands, which are initially to be established in Germany in the next few years. Following its implementation, a global expansion is planned. According to the directive, the pay gap must not exceed 5 percent if it cannot be justified on the basis of objective, gender-neutral factors. In the future, this will allow for a more meaningful comparability than the unadjusted gender pay gap calculated in accordance with the ESRS guidelines used for this report.
A diversity concept has been developed for the Group Executive Management and the Board of Directors, and this is available on our website. The Board of Directors has approved a diversity concept for the structure of the Group Executive Management, which, to a large extent, also takes into account the recommendations of the Swiss Code of Best Practice for Corporate Governance. In its considerations as to which individual would best complement the Group Executive Management as a body, the Board of Directors has taken pains to ensure that diversity is appropriately taken into account. When speaking of diversity as a factor in decision-making, the Board of Directors means a variety of complementary profiles, professional and personal experiences, also in the international arena. The Board of Directors has not set a separate target for the proportion of women in the Group Executive Management, as it is assumed that the current managing directors will continue in their roles and there are no plans to expand the Executive Management.
The Board of Directors of EDAG Engineering Group AG has approved specific staffing targets for the Board of Directors. These also, to a large extent, take into account the recommendations of the Swiss Code of Best Practice for Corporate Governance. When searching for qualified individuals to join the Board of Directors, whose technical and managerial skills would best strengthen the Board as a body, attention should also be paid to diversity. When preparing proposals for appointments, each case should be assessed to determine the extent to which the work of the Board of Directors would benefit from a variety of complementary professional profiles, professional and personal experiences, also in the international arena, and adequate representation of both genders. Considering qualified women for positions on the Board of Directors is the responsibility of everyone entitled to nominate and vote. With a current female representation of 20 percent (2024: 20 percent), both genders are adequately represented on the Board of Directors.
SOCIAL INFORMATION
In a resolution passed by the Executive Management of EDAG Engineering GmbH in August 2023, it was decided that the proportion of female managers would be increased by 2027, in accordance with § 36 of the German Limited Liability Companies Act (GmbHG). For EDAG Engineering GmbH, the rates set for female managers are 7 percent or 3 persons for the first management level below Executive Management and 10 percent or 61 persons for the second management level below Executive Management, with the absolute figures referring to the number of managers at the end of 2023. As of December 31, 2025, the proportion of women holding first-level management positions stood at 0 percent (0 persons) and second-level management positions at 8.4 percent (47 persons). In the previous year (December 31, 2024), the proportion of women in the first management level was 0 percent (0 persons) and in the second management level it stood at 8.1 percent (49 persons).
In 2022, the Group Executive Management set up a Diversity team to strengthen gender equality in the EDAG Group. The team develops and proposes actions to create equal opportunities for all EDAG Group employees. Besides pursuing the target of employee skill building, EDAG also strives to maintain a diversified workforce. Having a mix of experienced and young employees is an integral part of our personnel policy, as is cultural diversity.
Actions
In cooperation with employee representatives, a project team will draw up salary bands for employees in Germany, in preparation for the Pay Transparency Directive. As already outlined, according to the directive, the pay gap should not exceed five percent if it cannot be justified on the basis of objective, gender-neutral factors. When working out the requirements for the Pay Transparency Directive, the first step will be to identify whether there is any need for action on the part of the EDAG Group.
Further, the interdisciplinary Gender Equality project team with members from numerous different teams was established to develop actions aimed specifically at increasing EDAG's attractiveness as an employer for female employees. This also created a central point of contact for all employees, where they can put forth their ideas, but also draw attention to possible grievances. To foster networking specifically among women, the Gender Equality team launched "Women Lunch & Connect" for the first time in 2025 at several locations across Germany. Gender equality and diversity are also explicitly addressed in our talent program. Steps to reinforce gender equality will continue to be pursued in the next financial year. One thing that should be pointed out here, though, is the fact that the proportion of women studying the STEM subjects essential for the EDAG Group's operational divisions is still well below the proportion of men making it difficult to achieve gender parity in our workforce.
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By increasing the number of job advertisements in the English language, we succeeded in significantly increasing diversity in terms of nationality. Moreover, one of the goals of our recruiting and HR development activities is the targeted recruitment and promotion of female specialists and managers. In order to increase the proportion of women applying for jobs, we changed our Group-wide communication to gender-neutral language on our careers site and in job advertisements in the previous years, and focused more specifically on women in campaigns. To help employees balance their professional and personal lives, a large proportion of the positions we advertise come with a part-time option.
ESRS S1-9 Diversity metrics
Gender distribution in number and percentage at the two top management levels
| Gender | Number 2025^{1} | Quota 2025^{1} | Number 2024^{1} | Quota 2024^{1} |
|---|---|---|---|---|
| Female | 4 | 4.9% | 4 | 5.1% |
| Male | 77 | 95.1% | 75 | 94.9% |
1 Headcount as of December 31 of each year
When calculating the gender distribution at group level, as defined by S1-9, we included the first two management levels in Germany below the Executive Management and the managing directors of subsidiaries outside of Germany. The proportion of women described above in the section "Targets" refers only to EDAG Engineering GmbH. The definition used there differs from the definition of the gender distribution at management level presented here in S1-9.
Distribution of employees by age group
| 2025^{1} | 2024^{1} | |
|---|---|---|
| Under 30 years old | 25.2% | 28.4% |
| 30 – 50 years old | 56.4% | 54.4% |
| Over 50 years old | 18.4% | 17.2% |
1 Headcount as of December 31 of each year
SOCIAL INFORMATION
ESRS S1-16 metrics: Remuneration metrics
The EDAG Group's worldwide average gross hourly pay level of male employees is 13.8 percent (2024: 12.8 percent) higher than the average gross hourly pay level of female employees, not taking into account adjustments for metrics such as differences in purchasing power or professional categories. To calculate this, the difference between the average gross hourly pay levels of female and male employees was identified and divided by the average gross hourly pay level. All employees and all salary components paid during the financial year were included in the calculation, regardless of factors such as country, job family, job level, employee or manager status, professional or academic qualifications.
There are a number of reasons that explain the difference, or put it into perspective. A look at the employees in Germany shows that women are on average 0.7 job levels below the average for men. Mean salaries increase significantly from one job level to the next. There are differences of between 15 and 25 percent between job levels. Likewise, the 21 percent share of women in Germany are not evenly distributed across the job families in our highly STEM-oriented business model. An above-average number of women are employed in the administration job family, for example. The average salary in this job family is approx. 16 percent below the average EDAG salary in Germany, and this also explains the gender-related salary difference, or puts it into perspective. This can also be seen in the current situation of the managerial staff: the proportion of women in management positions is well below the proportion of women at EDAG in Germany. The responsibilities associated with these job families (leadership, project management and sales) mean that salaries in these areas are well above the overall average. The third main explanation is age. On average, the women at EDAG in Germany are about 1.5 years younger than their male colleagues. Given that experience of life and work experience are reflected in higher salaries, the difference in age also goes some way towards explaining the difference in pay levels between female and male employees.
The annual total remuneration ratio of the highest paid individual to the median annual total remuneration for all employees is 16:1 (previous year: 17:1), without consideration of and adjustment for metrics such as differences in purchasing power. For better comparability, the total compensation paid in 2025 was calculated and included on the basis of full-time employment and for the entire year.
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ESRS S1 IRO Training and skills development
| Position in the VC | Time horizon | |||||
|---|---|---|---|---|---|---|
| Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | |
| Training and skills development | ||||||
| EDAG offers its employees a variety of training and development concepts, including classroom-based and online training, skills development programs, and LinkedIn Learning opportunities. The purpose of these programs is to enable our employees to enhance their existing knowledge and acquire new skills. | Positive actual impacts | ● | ● | ● | ● |
Policy
Employees are the most important resource for the EDAG Group. For this reason, attracting the right employees, continuously developing their skills, and retaining them in the company are of the utmost importance. When preparing the annual business plans, the management determines the volume and content of the training and skills development-related activities. In Germany, in addition to the mandatory training sessions, further specific training activities are discussed and agreed by the employees and their superiors during staff appraisals, which are explained in more detail in Section S1 IRO Social dialogue.
Targets
The EDAG Group's target is to have the right employees with the right skills and mindsets working in the right place at the right time. Employees are to be provided with the training they need to be perfect for their jobs, and so that vacancies can be filled internally. To this end, employees are trained in line with the needs of the technical departments.
Another ambition of the EDAG Group is to be seen as an attractive employer, and one which promotes continuous professional growth. Examples include the introduction of LinkedIn Learning to promote a learning culture and the launch of the EDAG Talent Program, which proved to be a great success.
Measures
The requirements for the successful completion of customer projects identified by the departments and training requirements arising from staff appraisals form the basis of a training program. Training requirements are also generated from project reviews, calls for bids, development discussions, audits and certification processes. We constantly examine and monitor our HR development instruments and activities, and gear them to current company requirements. Our training program is therefore regularly reviewed and adapted to ensure that it is of high quality and remains up-to-date and future-oriented.
SOCIAL INFORMATION
The introduction of LinkedIn Learning as a learning platform also represents a further milestone in the development of our learning culture. This online training program can be individually adjusted to specific professional development targets. It provides personalized learning paths from which employees can select whichever content is relevant to their needs.
The new talent program EDAG Qualifying has been designed to address both the current challenges in the world of work and demographic change. The aim is to offer employees from our own ranks the best possible training opportunities and promotion prospects. EDAG Qualifying is a tailor-made program designed to promote employees' careers and their personal development. The program, which lasts about nine months and includes both online and classroom-based formats, was launched in 2024 with two groups, each consisting of 15 employees. Two groups have successfully completed the program in 2025, and some participants have already been promoted to new positions. The program has been established successfully, and we plan to extend it.
ESRS S1 IRO The employment and inclusion of persons with disabilities
| Position in the VC | Time horizon | |||||
|---|---|---|---|---|---|---|
| Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | |
| The employment and inclusion of persons with disabilities | ||||||
| Wherever possible, the EDAG Group promotes barrier-free workplaces for people with disabilities. In accordance with our Code of Conduct, we do not tolerate any discrimination or harassment on the grounds of physical or mental disabilities. | Positive actual impacts | ● | ● | ● | ● |
Policy
The EDAG Group's Code of Conduct, which is described in greater detail in section G1-1, clearly states that discrimination or harassment based on a variety of characteristics, including physical or mental disability, will not be tolerated. Moreover, in its Code of Ethics, the EDAG Group has committed to the ten principles of the UN Global Compact. One of the principles calls for the elimination of discrimination in respect of employment and occupation. Being the most senior level in the EDAG Group, the Group Executive Management is responsible for ensuring compliance with the Code of Conduct.
The Representatives for the Disabled Employees elected for the two major German companies ensures that laws governing the interests of disabled employees are observed.
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They can attend meetings of other interest groups and request that matters of particular relevance to disabled employees be discussed at Works Council meetings.
The inclusion agreement for Germany, finalized in the 2025 fiscal year, is intended to help EDAG promote equal participation for people with severe disabilities and those in similar circumstances. The agreement specifies regulations regarding barrier-free workplace design, inclusive workforce planning, preferential consideration in the application process, individualized work schedules, and targeted training measures. An interdisciplinary inclusion team regularly reviews progress toward these goals and supports affected employees and supervisors. In doing so, EDAG meets key requirements of the UN Convention on the Rights of Persons with Disabilities and SGB IX, and permanently embeds inclusion in its employment policy.
Targets
The core objective of the inclusion agreement is to sustainably strengthen the participation and professional development of people with disabilities within the company. To this end, current jobs shall be secured for the long term and adapted to individual skills and needs through targeted training and professional development initiatives. EDAG also aims to improve access to the labor market by expanding hiring and training opportunities for people with severe disabilities and those deemed equivalent. These measures are intended to steadily increase the proportion of employees with disabilities within the company and promote their active participation. The agreement also serves to meet the legally mandated employment quotas under SGB IX, to consistently exceed these targets in the spirit of an inclusive corporate culture, and thereby to contribute to equal opportunity and diversity within the company's own workforce.
Given that the qualifications of applicants are the main factor considered in the recruitment and employment process, the EDAG Group has not set any specific targets regarding employees with disabilities. The inclusion agreement stipulates that, given equal professional and personal qualifications, preference shall be given to applicants with severe disabilities.
Actions
The inclusion agreement outlines specific measures to promote the employment of people with disabilities. These include the systematic creation and adaptation of workplaces, including through the use of new technologies, to ensure barrier-free and disability-friendly work environments. Accessibility is taken into account as early as the planning stage for buildings and workplaces, while individual needs are identified and addressed through risk assessments in accordance with § 5 of the Occupational Safety and Health Act (ArbSchG). During the recruitment process, the representative for employees with severe disabilities is granted access to the applicant tracking system. EDAG also ensures that applicants with severe disabilities are given preferential consideration when equally qualified. Work schedules can be flexibly and favorably adapted to accommodate disability-related needs, including exemption from overtime and additional vacation entitlement. A team dedicated to inclusion oversees the implementation of all these measures. The team meets regularly, coordinates internal and external support structures, and monitors progress toward
SOCIAL INFORMATION
achieving the goals set. Furthermore, the inclusion team may propose additional measures to achieve the goals outlined in the inclusion agreement.
ESRS S1-17 Incidents, complaints and severe human rights impacts
In the 2025 reporting year, there were no reported cases of discrimination, including harassment (previous year: three cases). No complaints were filed through channels for people in the company's own workforce to raise concerns (including grievance mechanisms) related to matters defined in S1 paragraph 2. The lack of discrimination cases resulted in no fines, sanctions or compensation for damages.
No human rights incidents and fines connected to the company's own workforce, as defined in S1-17, paragraph 104, were registered in the reporting year.
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GOVERNANCE INFORMATION
ESRS G1 BUSINESS CONDUCT
Impacts, Risks and Opportunities
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
G1 Business conduct
| Position in the VC | Time horizon | ||||||
|---|---|---|---|---|---|---|---|
| Upstream | Own operations | Downstream | Short-term | Medium-term | Long-term | ||
| Corporate culture in own operations | |||||||
| Positive impact of our corporate culture: Our corporate culture, which is based on trust, reliability, fairness and transparency, has a positive impact on our employees. To this end, the EDAG Group defines group-wide guidelines regarding its value system. | Positive actual impacts | ● | ● | ● | ● |
A positive corporate culture is not only strategically anchored in a clear set of values, but also codified in group-wide guidelines (presented in detail under ESRS G1-1). Our corporate culture, which shapes both our daily interactions with our employees and our direct and personal contact with our customers, is a decisive factor in our success. To properly address its enormous significance, we have established a number of actions, one of which meets all the requirements of ESRS MDR-A. This is presented in section ESRS G1-1.
GOVERNANCE INFORMATION
Management of the Impacts, Risks and Opportunities
G1-1 Business conduct policies and corporate culture
Building on our corporate vision and overall strategy, we regard value-based corporate governance as being fundamental to our ability to operate successfully in international business operations and promote long-term, sustainable economic success 7.
As the EDAG Group is one of the world's leading engineering service providers, its corporate values and culture are therefore decisive factors in its success. At EDAG, these are codified as group-wide policies through a series of guidelines including the Code of Conduct, the Code of Ethics and the Whistleblower Policy.
Code of Conduct
Our Code of Conduct contains principles for legally compliant behavior, and applies to all business activities undertaken by the EDAG Group. In its Code of Conduct, EDAG commits to compliance with the principles of the UN Global Compact and with other relevant international and national standards concerning environmental management and energy management, for example, the German Supply Chain Due Diligence Act, export control regulations or competition and antitrust laws. The Code of Conduct, which defines the most important rules and standards as benchmarks for EDAG's global business activities, serves as a binding company guideline for legally compliant behavior within the EDAG Group. This makes it a key element of the EDAG Compliance Management System. The current version of the Code of Conduct is available to all employees on the EDAG intranet and on the EDAG homepage.
Anti-corruption is an important element of our Code of Conduct. EDAG stands for honest business activities in which the companies with the best products and services prevail in the market. We therefore categorically reject any form of corruption or undue influence, and take active measures to prevent actual and attempted corruption. There were no confirmed cases of corruption in the EDAG Group in the reporting year.
First and foremost, ensuring compliance is the responsibility of the company's Group Executive Management, which to this end has set up internal monitoring instruments such as the internal control and risk management systems and the Internal Revision department. In addition, each of the company's managers is responsible for the implementation of the Code of Conduct in his or her field of responsibility. As the most senior supervisory body, the Board of Directors is responsible for monitoring the effectiveness of the compliance management system and compliance with the Code of Conduct.
7 EDAG's corporate governance is described in detail in the "Corporate Governance Report" section of the Group Management Report in the Annual Report for 2025, to which reference is made at this point.
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Code of Ethics
In the EDAG Code of Ethics, the EDAG Group commits to the sustained support and implementation of the ten principles of the UN Global Compact, in this way meeting its social responsibilities. It states that the EDAG Group supports and respects the observance of human rights and international labor standards. This clear and unequivocal commitment to the UN's core values in the areas of human rights, labor standards, environmental protection and anti-corruption is an irrevocable cornerstone of our corporate culture.
The current version of the Code of Ethics is available to all employees on the EDAG intranet and on the EDAG homepage.
Making the UN's core values the basis for our activities means that we take the interests of a wide range of groups including children, indigenous peoples and disadvantaged people into account. The managers at EDAG are responsible for compliance with these core values in their own fields of responsibility.
Whistleblower Policy
Valid throughout the Group, the Whistleblower Policy provides information on the existing reporting channels and other means to report misconduct at EDAG, and provides details of the reporting process and the measures in place to protect whistleblowers. The objective of this policy is to provide EDAG employees and other persons who come into possession of specific evidence of breaches of rules or other unlawful conduct in connection with work-related activities or internal processes at EDAG with instructions on how to report such information. This policy therefore serves not only to uncover irregular conduct, but also and in particular to protect whistleblowers. Our Whistleblower Policy summarizes the various reporting channels for making disclosures, while also providing information on how such disclosures are handled at EDAG.
With the whistleblower system, we offer employees a means to report misconduct with no fear of negative consequences. It helps the EDAG Group to detect and correct breaches of rules in good time. The policy implements both EU requirements and national laws for the establishment and maintenance of reporting systems and the protection of whistleblowers.
EDAG's electronic whistleblower hotline may be used by all stakeholders, not just EDAG employees, to report misconduct. This can be accessed using the following link: https://edag.integrityline.org. A separate reporting channel has been set up to deal with breaches of rules in the supply chain.
First and foremost, ensuring compliance is the responsibility of the company's Group Executive Management. The Policy defines how compliance reports should be handled and who is responsible for what in this process. They are in line with applicable legislation. By implementing the policy (Directive (EU) 2019/1937), the EDAG Group ensures that incidents related to company policy, including cases of corruption and bribery, are investigated promptly, independently and objectively. This is the responsibility of the Compliance department.
GOVERNANCE INFORMATION
Awareness-raising measures for correct behavior: training programs
For a compliance management system (CMS) to be effective, it is essential that the attention of the company's employees should be continually drawn to the subject of compliance, so that they can develop an awareness of critical issues in the daily working environment. One effective way of engendering this sensitivity for compliance is to provide appropriate training programs.
To this end, in previous financial years we established a compliance training program which forms a central element of our CMS and includes a web-based compliance training unit as an obligatory training requirement for all EDAG Group employees, to be completed once a year. It provides employees with practical case studies and information on the whistleblower system, reporting channels and corruption, for example. In order to be able to better monitor its effectiveness, the compliance training obligatory for all employees contains a test module. With this additional assessment, we are able to determine the success of our training module more effectively and more directly, and at the same time it offers the employees the opportunity to check the knowledge they have acquired. As managers bear particular responsibility for preventing compliance-relevant incidents, they also undergo special anti-corruption training.
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88 | ANNEX
ANNEX
EU TAXONOMY: TEMPLATES FOR THE KPIS OF NON-FINANCIAL UNDERTAKINGS
The reporting template for the performance indicators sales revenues, CapEx and OpEx specified in Delegated Regulation (EU) 2021/2178 Annex II in conjunction with Delegated Regulation (EU) 2026/73 is shown below.
Template: Proportion of revenues, CapEx and OpEx from products or services associated with Taxonomy-eligible or Taxonomy-aligned economic activities – disclosure covering 2025 (summary KPIs)
| Financial Year | 2025 | Breakdown by environmental objectives of Tax | ||||||
|---|---|---|---|---|---|---|---|---|
| KPI | Total | Proportion of taxonomy-eligible activities | Taxonomy-aligned activities | Proportion of taxonomy-aligned activities | Climate change mitigation | Climate change adaptation | Water | Circular economy |
| in € thousand | % | in € thousand | % | % | % | % | % | |
| Sales revenues | 713,601 | - | - | - | - | - | - | - |
| CapEx | 35,408 | - | - | - | - | - | - | - |
| OpEx | 32,740 | - | - | - | - | - | - | - |
ANNEX | 89
| monomy-aligned activities | ||||||
|---|---|---|---|---|---|---|
| Pollution | Biodiversity | Proportion of enabling activities | Percentage of transitional activities | Non-evaluated non-material activities | Taxonomy-aligned activities in the preceding 2024 financial year | Proportion of taxonomy-aligned activities in the preceding 2024 financial year |
| % | % | % | % | % | in € thousand | % |
| - | - | - | - | 3% | - | - |
| - | - | - | - | 8% | - | - |
| - | - | - | - | n/a | - | - |
90 | ANNEX
ESRS 2 IRO-2 CONTENT INDEX OF THE ESRS DISCLOSURE REQUIREMENTS
| ESRS 2 General Requirements | |
|---|---|
| Disclosure requirement | Section |
| BP-1 – General principles for the preparation of the Sustainability Statement | ESRS 2 BP-1 |
| BP-2 – Disclosures in relation to specific circumstances | ESRS 2 BP-2 |
| GOV-1 – The role of the administrative, management and supervisory bodies | ESRS 2 GOV-1 |
| GOV-2 – Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies | ESRS 2 GOV-2 |
| GOV-3 – Integration of sustainability-related performance in incentive schemes | ESRS 2 GOV-3 |
| GOV-4 – Statement on due diligence | ESRS 2 GOV-4 |
| GOV-5 – Risk management and internal controls over sustainability reporting | ESRS 2 GOV-5 |
| SBM-1 – Strategy, business model and value chain | ESRS 2 SBM-1 |
| SBM-2 – Interests and views of stakeholders | ESRS 2 SBM-2 |
| SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model | ESRS 2 SBM-3 |
| IRO-1 – Description of the processes to identify and assess material impacts, risks and opportunities | ESRS 2 IRO-1 |
| IRO-2 – Disclosure requirements in ESRS covered by the undertaking’s sustainability statements | ESRS 2 IRO-2 |
| ESRS E1 Climate change | |
| --- | --- |
| Disclosure requirement | Section |
| Related to ESRS 2 GOV-3 – Integration of sustainability-related performance in incentive schemes | ESRS 2 GOV-3 |
| E1-1 – Transition plan for climate change mitigation | ESRS E1-1 |
| Related to ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model | ESRS E1 SBM-3 |
| Related to ESRS 2 IRO-1 – Description of the processes to identify and assess material climate-related impacts, risks and opportunities | ESRS 2 IRO-1 |
| E1-2 – Policies related to climate change mitigation and adaptation | ESRS E1-2 |
| E1-3 – Actions and resources in relation to climate change policies | ESRS E1-3 |
| E1-4 – Targets related to climate change mitigation and adaptation | ESRS E1-4 |
ANNEX | 91
| ESRS E1 Climate change | |
|---|---|
| Disclosure requirement | Section |
| E1-5 – Energy consumption and mix | n/a |
| E1-6 – Gross scope 1, 2, and 3 and total GHG emissions | ESRS E1-6 |
| E1-7 – GHG removals and GHG mitigation projects financed through carbon credits | n/a |
| E1-8 – Internal carbon pricing | n/a |
| E1-9 - Anticipated financial impacts from material physical and transition risks and potential climate-related opportunities | n/a |
| ESRS E2 Pollution | |
| --- | --- |
| Disclosure requirement | Section |
| Related to ESRS 2 IRO-1 – Description of the processes to identify and assess material pollution-related impacts, risks and opportunities | ESRS 2 IRO-1 |
| E2-1 – Policies related to pollution | ESRS E2-1 |
| E2-2 – Actions and resources related to pollution | ESRS E2-3 |
| E2-3 – Targets related to pollution | ESRS E2-3 |
| E2-4 – Pollution of air, water and soil | ESRS E2-4 |
| E2-5 – Substances of concern and substances of very high concern | n/a |
| E2-6 – Anticipated financial effects from pollution-related impacts, risks and opportunities | n/a |
| ESRS S1 Own workforce | |
| --- | --- |
| Disclosure requirement | Section |
| Related to ESRS 2 SBM-2 – Interests and views of stakeholders | ESRS 2 SBM-2 |
| Related to ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model | ESRS S1 SBM-3 |
| S1-1 – Policies related to own workforce | ESRS S1-1 |
| S1-2 – Processes for engaging with own workers and workers’ representatives about impacts | ESRS S1-2 |
| S1-3 – Processes to remediate negative impacts and channels for own workers to raise concerns | n/a |
| S1-4 – Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions | ESRS S1-4 |
| S1-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | ESRS S1-5 |
92 | ANNEX
| ESRS S1 Own workforce | |
|---|---|
| Disclosure requirement | Section |
| S1-6 – Characteristics of the undertaking’s employees | ESRS S1-6 |
| S1-7 – Characteristics of non-employee workers in the undertaking’s own workforce | n/a |
| S1-8 – Collective bargaining coverage and social dialog | ESRS S1-8 |
| S1-9 – Diversity metrics | ESRS S1-9 |
| S1-10 – Adequate wages | ESRS S1-10 |
| S1-11 – Social protection | n/a |
| S1-12 – Persons with disabilities | n/a |
| S1-13 – Training and skills development metrics | n/a |
| S1-14 – Health and safety metrics | ESRS S1-14 |
| S1-15 – Work-life balance metrics | n/a |
| S1-16 – Remuneration metrics | ESRS S1-16 |
| S1-17 – Incidents, complaints and severe human rights impacts | ESRS S1-17 |
| ESRS G1 Business conduct | |
| --- | --- |
| Disclosure requirement | Section |
| Related to ESRS 2 GOV-1 – The role of the administrative, management and supervisory bodies | ESRS 2 GOV-1 |
| Related to ESRS 2 IRO-1 – Description of the processes to identify and assess material impacts, risks and opportunities | ESRS 2 IRO-1 |
| G1-1 Policies in relation to business conduct and corporate culture | G1-1 |
| G1-2 – Management of relationships with suppliers | n/a |
| G1-3 – Prevention and detection of corruption and bribery | n/a |
| G1-4 – Confirmed incidents of corruption or bribery | n/a |
| G1-5 – Political influence and lobbying activities | n/a |
| G1-6 - Payment practices | n/a |
ANNEX | 93
ESRS 2 IRO-2: LIST OF DATAPOINTS IN CROSS-CUTTING AND TOPICAL STANDARDS THAT DERIVE FROM OTHER EU LEGISLATION
| Disclosure requirement and related datapoint | SFDR reference^{1} | Pillar 3 reference^{2} | Benchmark provision reference^{3} | EU climate law reference^{4} | Material ✓/ Non-material X |
|---|---|---|---|---|---|
| ESRS 2 GOV-1 Board's gender diversity, paragraph 21 (d) | Indicator number 13 of Table #1 of Annex 1 | Commission Delegated Regulation (EU) 2020/1816, Annex II | ✓ | ||
| ESRS 2 GOV-1 percentage of board members who are independent, paragraph 21 (e) | Commission Delegated Regulation (EU) 2020/1816, Annex II | ✓ | |||
| ESRS 2 GOV-4 Statement on due diligence, paragraph 30 | Indicator number 10 Table #3 of Annex 1 | ✓ | |||
| ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities, paragraph 40 (d) i | Indicator number 4 Table #1 of Annex 1 | Article 449a of Regulation (EU) No. 575/2013; Commission Implementing Regulation (EU) 2022/2453, Table 1: Qualitative information on environmental risk, and Table 2: Qualitative information on social risk | Commission Delegated Regulation (EU) 2020/1816, Annex II | X | |
| ESRS 2 SBM-1 Involvement in activities related to chemical production, paragraph 40 (d) ii | Indicator number 9 Table #2 of Annex 1 | Commission Delegated Regulation (EU) 2020/1816, Annex II | X | ||
| ESRS 2 SBM-1 Involvement in activities related to controversial weapons, paragraph 40 (d) iii | Indicator number 14 Table #1 of Annex 1 | Delegated Regulation (EU) 2020/1818, Article 12 (1), Delegated Regulation (EU) 2020/1816, Annex II | X |
94 | ANNEX
| Disclosure requirement and related datapoint | SFDR reference^{1} | Pillar 3 reference^{2} | Benchmark provision reference^{3} | EU climate law reference^{4} | Material ✓ / Non-material X |
|---|---|---|---|---|---|
| ESRS 2 SBM-1 | |||||
| Involvement in activities related to cultivation and production of tobacco, paragraph 40 (d) iv | Delegated Regulation (EU) 2020/1818, Article 12 (1), Delegated Regulation (EU) 2020/1816, Annex II | X | |||
| ESRS E1-1 Transition plan to reach climate neutrality by 2050, paragraph 14 | Regulation (EU) 2021/1119, Article 2(1) | ✓ | |||
| ESRS E1-1 Undertakings excluded from Paris-aligned benchmarks, paragraph 16 (g) | Article 449a | ||||
| Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book – Climate change transition risk: credit quality of exposures by sector, emissions and residual maturity | Delegated Regulation (EU) 2020/1818, Article 12 paragraph 1 (d) to (g), and Article 12(2) | ✓ | |||
| ESRS E1-4 GHG emission reduction targets paragraph 34 | Indicator number 4 | ||||
| Table #2 of Annex 1 | Article 449a | ||||
| Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics | Delegated Regulation (EU) 2020/1818, Article 6 | ✓ | |||
| ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors), paragraph 38 | Indicator number 5 | ||||
| Table #1 of Annex 1 and indicator number 5 | |||||
| Table #2 of Annex 1 | X | ||||
| ESRS E1-5 Energy consumption and mix, paragraph 37 | Indicator number 5 | ||||
| Table #1 of Annex 1 | X |
ANNEX | 95
| Disclosure requirement and related datapoint | SFDR reference^{1} | Pillar 3 reference^{2} | Benchmark provision reference^{3} | EU climate law reference^{4} | Material ☑ / Non-material ☐ |
|---|---|---|---|---|---|
| ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43 | Indicator number 6 | ||||
| Table #1 of Annex 1 | X | ||||
| ESRS E1-6 Gross Scope 1, 2, 3 and total GHG emissions, paragraph 44 | Indicators numbers 1 and 2 | ||||
| Table #1 of Annex 1 | Article 449a; Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453, Template 1: Banking book – Climate change transition risk: credit quality of exposures by sector, emissions and residual maturity | Delegated Regulation (EU) 2020/1818, Article 5 (1), Article 6 and Article 8(1) | ☑ | ||
| ESRS E1-6 Gross GHG emissions intensity, paragraphs 53 to 55 | Indicator number 3 | ||||
| Table #1 of Annex 1 | Article 449a | ||||
| Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics | Delegated Regulation (EU) 2020/1818, Article 8(1) | ☑ | |||
| ESRS E1-7 GHG removals and carbon credits, paragraph 56 | Regulation (EU) 2021/1119, Article 2(1) | X | |||
| ESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks, paragraph 66 | Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II | X |
96 | ANNEX
| Disclosure requirement and related datapoint | SFDR reference^{1} | Pillar 3 reference^{2} | Benchmark provision reference^{3} | EU climate law reference^{4} | Material ✓ / Non-material X |
|---|---|---|---|---|---|
| ESRS E1-9 | |||||
| Disaggregation of monetary amounts by acute and chronic physical risk, paragraph 66 (a) | |||||
| ESRS E1-9 Location of significant assets at material physical risk, paragraph 66 (c) | Article 449a | ||||
| Regulation (EU) | |||||
| No 575/2013; | |||||
| Commission Implementing Regulation (EU) | |||||
| 2022/2453 | |||||
| paragraphs 46 and 47; | |||||
| Template 5: Banking book - Climate change physical risk: exposures subject to physical risk | X | ||||
| ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency classes, paragraph 67 (c) | Article 449a | ||||
| Regulation (EU) | |||||
| No 575/2013; | |||||
| Commission Implementing Regulation (EU) | |||||
| 2022/2453 paragraph 34; Template 2: Banking book – Climate change transition risk: loans collateralized by immovable property – energy efficiency of the collateral | X | ||||
| ESRS E1-9 Degree of exposure of the portfolio to climate-related opportunities, paragraph 69 | Commission Delegated Regulation (EU) 2020/1818, Annex II | X | |||
| ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28 | Indicator number 8 | ||||
| Table #1 of Annex 1 | |||||
| Indicator number 2 | |||||
| Table #2 of Annex 1 | |||||
| Indicator number 1 | |||||
| Table #2 of Annex 1 | |||||
| Indicator number 3 | |||||
| Table #2 of Annex 1 | X | ||||
| ESRS E3-1 Water and marine resources, paragraph 9 | Indicator number 7 | ||||
| Table #2 of Annex 1 | X | ||||
| ESRS E3-1 Dedicated policy, paragraph 13 | Indicator number 8 of Table #2 of Annex 1 | X |
ANNEX | 97
| Disclosure requirement and related datapoint | SFDR reference^{1} | Pillar 3 reference^{2} | Benchmark provision reference^{3} | EU climate law reference^{4} | Material ☑ / Non-material ☐ |
|---|---|---|---|---|---|
| ESRS E3-1 Sustainable oceans and seas, paragraph 14 | Indicator number 12 Table #2 of Annex 1 | X | |||
| ESRS E3-4 Total water recycled and reused, paragraph 28 (c) | Indicator number 6.1 Table #2 of Annex 1 | X | |||
| ESRS E3-4 Total water consumption in m³ per net revenue on own operations, paragraph 29 | Indicator number 6.1 Table #2 of Annex 1 | X | |||
| ESRS 2 – IRO-1 - E4, paragraph 16 (a) i | Indicator number 10 Table #2 of Annex 1 | X | |||
| ESRS 2 – IRO-1 - E4, paragraph 16 (b) | Indicator number 14 Table #2 of Annex 1 | X | |||
| ESRS 2 – IRO-1 - E4, paragraph 16 (c) | Indicator number 14 Table #2 of Annex 1 | X | |||
| ESRS E4-2 Sustainable land / agriculture practices or policies, paragraph 24 (b) | Indicator number 11 Table #2 of Annex 1 | X | |||
| ESRS E4-2 Sustainable oceans / seas practices or policies, paragraph 24 (c) | Indicator number 12 Table #2 of Annex 1 | X | |||
| ESRS E4-2 Policies to address deforestation, paragraph 24 (d) | Indicator number 15 Table #2 of Annex 1 | X | |||
| ESRS E5-5 Non-recycled waste, paragraph 37 (d) | Indicator number 13 Table #2 of Annex 1 | X | |||
| ESRS E5-5 Hazardous waste and radioactive waste, paragraph 39 | Indicator number 9 Table #1 of Annex 1 | X | |||
| ESRS 2- SBM3 - S1 Risk of incidents of forced labour, paragraph 14 (f) | Indicator number 13 Table #3 of Annex 1 | X | |||
| ESRS 2 SBM3 – S1 Risk of incidents of child labour, paragraph 14 (g) | Indicator number 12 Table #3 of Annex 1 | X |
98 | ANNEX
| Disclosure requirement and related datapoint | SFDR reference^{1} | Pillar 3 reference^{2} | Benchmark provision reference^{3} | EU climate law reference^{4} | Material ☑ / Non-material ☐ |
|---|---|---|---|---|---|
| ESRS S1-1 Human rights policy commitments, paragraph 20 | Indicator number 9 | ||||
| Table #3 of Annex 1 | |||||
| and Indicator number 11 | |||||
| Table #1 of Annex 1 | ☑ | ||||
| ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organization Conventions 1 to 8, paragraph 21 | Commission Delegated Regulation (EU) 2020/1816, Annex II | ☑ | |||
| ESRS S1-1 Processes and measures for preventing trafficking in human beings, paragraph 22 | Indicator number 11 | ||||
| Table #3 of Annex 1 | ☐ | ||||
| ESRS S1-1 Workplace accident prevention policy or management system, paragraph 23 | Indicator number 1 | ||||
| Table #3 of Annex 1 | ☑ | ||||
| ESRS S1-3 Grievance/complaints handling mechanisms, paragraph 32 (c) | Indicator number 5 | ||||
| Table #3 of Annex 1 | ☐ | ||||
| ESRS S1-14 Number of fatalities and number and rate of work- related accidents, paragraph 88 (b) and (c) | Indicator number 2 | ||||
| Table #3 of Annex 1 | Commission Delegated Regulation (EU) 2020/1816, Annex II | ☑ | |||
| ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness, paragraph 88 (e) | Indicator number 3 | ||||
| Table #3 of Annex 1 | ☑ | ||||
| Exemption provision for 2025 | |||||
| ESRS S1-16 Unadjusted gender pay gap, paragraph 97 (a) | Indicator number 12 | ||||
| of Table #1 of Annex 1 | Commission Delegated Regulation (EU) 2020/1816, Annex II | ☑ | |||
| ESRS S1-16 Excessive CEO pay ratio, paragraph 97 (b) | Indicator number 8 | ||||
| Table #3 of Annex 1 | ☑ |
ANNEX | 99
| Disclosure requirement and related datapoint | SFDR reference^{1} | Pillar 3 reference^{2} | Benchmark provision reference^{3} | EU climate law reference^{4} | Material ☑ / Non-material ☐ |
|---|---|---|---|---|---|
| ESRS S1-17 | |||||
| Incidents of discrimination, paragraph 103 (a) | Indicator number 7 | ||||
| Table #3 of Annex 1 | ☑ | ||||
| ESRS S1-17 | |||||
| Non-respect of UNGPs on Business and Human Rights and OECD, paragraph 104 (a) | Indicator number 10 | ||||
| Table #1 of Annex 1 and Indicator number 14 | |||||
| Table #3 of Annex 1 | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art. 12 (1) | ☑ | |||
| ESRS 2 SBM3-S2 | |||||
| Significant risk of child labour or forced labour in the value chain, paragraph 11 (b) | Indicators numbers 12 and 13 | ||||
| Table #3 of Annex 1 | ☐ | ||||
| ESRS S2-1 Human rights policy commitments | Indicator number 9 | ||||
| Table #3 of Annex 1 and Indicator number 11 | |||||
| Table #1 of Annex 1 | ☐ | ||||
| ESRS S2-1 Policies related to value chain workers, paragraph 18 | Indicators numbers 11 and 4 | ||||
| Table #3 of Annex 1 | ☐ | ||||
| ESRS S2-1 | |||||
| Non-respect of UNGPs on Business and Human Rights and OECD guidelines, paragraph 19 | Indicator number 10 | ||||
| Table #1 of Annex 1 | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art. 12 (1) | ☐ | |||
| ESRS S2-1 | |||||
| Due diligence policies on issues addressed by the fundamental International Labor Organization Conventions 1 to 8, paragraph 19 | Commission Delegated Regulation (EU) 2020/1816, Annex II | ☐ | |||
| ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain, paragraph 36 | Indicator number 14 of | ||||
| Table #3 of Annex 1 | ☐ |
100 | ANNEX
| Disclosure requirement and related datapoint | SFDR reference^{1} | Pillar 3 reference^{2} | Benchmark provision reference^{3} | EU climate law reference^{4} | Material ✓ / Non-material X |
|---|---|---|---|---|---|
| ESRS S3-1 Human rights policy commitments, paragraph 16 | Indicator number 9 | ||||
| Table #3 of Annex 1 | |||||
| and Indicator number 11 | |||||
| Table #1 of Annex 1 | X | ||||
| ESRS S3-1Non-respect of UNGPs on Business and Human Rights and OECD guidelines, paragraph 17 | Indicator number 10 | ||||
| Table #1 of Annex 1 | Delegated Regulation (EU) 2020/1818, Article 12(1) | X | |||
| ESRS S3-4 Human rights issues and incidents, paragraph 36 | Indicator number 14 | ||||
| of Table #3 of Annex 1 | X | ||||
| ESRS S4-1 Policies related to consumers and end-users, paragraph 16 | Indicator number 9 | ||||
| Table #3 of Annex 1 | |||||
| and Indicator number 11 | |||||
| Table #1 of Annex 1 | X | ||||
| ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines, paragraph 17 | Indicator number 10 | ||||
| Table #1 of Annex 1 | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art. 12 (1) | X | |||
| ESRS S4-4 Human rights issues and incidents, paragraph 35 | Indicator number 14 | ||||
| of Table #3 of Annex 1 | X | ||||
| ESRS G1-1 United Nations Convention against Corruption, paragraph 10 (b) | Indicator number 15 | ||||
| Table #3 of Annex 1 | X | ||||
| ESRS G1-1 Protection of whistle blowers, paragraph 10 (d) | Indicator number 6 of Table #3 of Annex 1 | X | |||
| ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws, paragraph 24 (a) | Indicator number 17 | ||||
| Table #3 of Annex 1 | Delegated Regulation (EU) 2020/1816, Annex II | X | |||
| ESRS G1-4 Standards of anti-corruption and anti-bribery, paragraph 24 (b) | Indicator number 16 | ||||
| Table #3 of Annex 1 | X |
ANNEX | 101
| Disclosure requirement and related datapoint | SFDR reference^{1} | Pillar 3 reference^{2} | Benchmark provision reference^{3} | EU climate law reference^{4} | Material ☑/ Non-material X |
|---|---|---|---|---|---|
- Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (Sustainable Finance Disclosures Regulation) (OJ L 317, 9.12.2019, p. 1).
- Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (Capital Requirements Regulation "CRR") (OJ L 176, 27.6.2013, p. 1).
- Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1).
- Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 ('European Climate Law') (OJ L 243, 9.7.2021, p. 1).
ANNEX
SUSTAINABILITY INFORMATION STEMMING FROM OTHER LEGISLATION
Additional information on non-financial matters
With this Sustainability Report, the EDAG Engineering Group AG fulfills its obligation to prepare an annual report on non-financial matters. The Sustainability Report has been consolidated for the entire EDAG Group and prepared based on the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS), as applicable in accordance with Directive (EU) 2022/2464 of the European Parliament and of the Council in conjunction with Regulation (EU) 2023/2772 of the European Parliament and of the Council as standards for sustainability reporting in the EU. The relevant legal requirements under Swiss law regarding the preparation of an annual report on non-financial matters pursuant to Article 964a of the Swiss Code of Obligations are met by this Sustainability Report.
The English version of the Group Sustainability Report is a translation of the German version. The German version is legally binding.
Arbon, April 16, 2026
EDAG Engineering Group AG
G. Denoke
Georg Denoke, President of the Board of Directors
Holger Merz, Member of the Group Executive Management (CEO)
Harald Keller, Member of the Group Executive Management (CEO)
REPORT OF THE STATUTORY AUDITOR | 103
REPORT OF THE STATUTORY AUDITOR
ASSURANCE REPORT OF THE INDEPENDENT PRACTITIONER ON A LIMITED ASSURANCE ENGAGEMENT IN RELATION TO THE SEPARATE CONSOLIDATED NON-FINANCIAL REPORT ("CONSOLIDATED SUSTAINABILITY REPORT")
To EDAG Engineering Group AG, Arbon/Switzerland
Assurance Conclusion
We have conducted a limited assurance engagement on the separate Consolidated Sustainability Report of EDAG Engineering Group AG, Arbon/Switzerland, for the financial year from January 1 to December 31, 2025 prepared for complying with Section 117 no. 1 German Securities Trading Act (WpHG) in conjunction with Sections 315b and 315c German Commercial Code (HGB) including the disclosures for complying with the requirements under Article 8 of Regulation (EU) 2020/852 included in this Consolidated Sustainability Report (hereinafter referred to as "the Consolidated Sustainability Report").
Based on the procedures performed and the evidence obtained, nothing has come to our attention that causes us to believe that the accompanying Consolidated Sustainability Report is not prepared, in all material respects, in accordance with the requirements of the CSRD and Article 8 of Regulation (EU) 2020/852 and Sections 315b and 315c HGB for a consolidated sustainability report and the specifying criteria presented by the executive directors of the Company. This assurance conclusion includes that nothing has come to our attention that causes us to believe
- that the accompanying Consolidated Sustainability Report does not comply, in all material respects, with the European Sustainability Reporting Standards (ESRS), including that the process carried out by the entity to identify information to be included in the Consolidated Sustainability Report (the materiality assessment) is not, in all material respects, in accordance with the description set out in section "1.1.4. Double Materiality Assessment" of the Consolidated Sustainability Report, or that the disclosures in the Consolidated Sustainability Report do not comply, in all material respects, with Article 8 of Regulation (EU) 2020/852.
Basis for the Assurance Conclusion
We conducted our assurance engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised): "Assurance Engagements Other Than Audits or Reviews of Historical Financial Information," issued by the International Auditing and Assurance Standards Board (IAASB).
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement.
REPORT OF THE STATUTORY AUDITOR
Consequently, the level of assurance obtained is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.
Our responsibilities under ISAE 3000 (Revised) are further described in section "Independent Practitioner's Responsibilities for the Assurance Engagement on the Consolidated Sustainability Report."
We are independent of the entity in accordance with the requirements of European law and German commercial and professional law, and we have fulfilled our other German professional responsibilities in accordance with these requirements. Our audit firm has applied the requirements of the IDW Quality Management Standards. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our assurance conclusion.
Responsibilities of the Executive Directors and the Board of Directors for the Consolidated Sustainability Report
The executive directors are responsible for the preparation of the Consolidated Sustainability Report in accordance with the requirements of the CSRD and the applicable German legal and other European requirements as well as with the specifying criteria presented by the executive directors of the Company and for designing, implementing and maintaining such internal control as they have considered necessary to enable the preparation of a consolidated sustainability report in accordance with these requirements that is free from material misstatement, whether due to fraud (i.e. fraudulent reporting in the Consolidated Sustainability Report) or error. This responsibility of the executive directors includes establishing and maintaining the materiality assessment process, selecting and applying appropriate reporting policies for preparing the Consolidated Sustainability Report as well as making assumptions and estimates and ascertaining forward-looking information for individual sustainability-related disclosures.
The board of directors is responsible for overseeing the process for the preparation of the Consolidated Sustainability Report.
Inherent Limitations in Preparing the Consolidated Sustainability Report
The CSRD and the applicable German legal and other European requirements contain wording and terms that are subject to considerable interpretation uncertainties and for which no authoritative comprehensive interpretations have yet been published. The executive directors have disclosed interpretations of such wording and terms in the Consolidated Sustainability Report. The executive directors are responsible for the reasonableness of these interpretations. As such wording and terms may be interpreted differently by regulators or courts, the legality of measurements or evaluations of the sustainability matters based on these interpretations is uncertain. The quantification of non-financial performance indicators disclosed in the Consolidated Sustainability Report is also subject to inherent uncertainties.
These inherent limitations also affect the assurance engagement on the Consolidated Sustainability Report.
REPORT OF THE STATUTORY AUDITOR | 105
Independent Practitioner's Responsibilities for the Assurance Engagement on the Consolidated Sustainability Report
Our objective is to express a limited assurance conclusion, based on the assurance engagement we have conducted, on whether any matters have come to our attention that cause us to believe that the Consolidated Sustainability Report has not been prepared, in all material respects, in accordance with the CSRD, the applicable German legal and other European requirements and the specifying criteria presented by the executive directors of the Company and to issue an assurance report that includes our assurance conclusion on the Consolidated Sustainability Report.
As part of a limited assurance engagement in accordance with ISAE 3000 (Revised), we exercise professional judgment and maintain professional skepticism. We also:
- obtain an understanding of the process used to prepare the Consolidated Sustainability Report, including the materiality assessment process carried out by the entity to identify the disclosures to be reported in the Consolidated Sustainability Report.
- identify disclosures where a material misstatement due to fraud or error is likely to arise, design and perform procedures to address these disclosures and obtain limited assurance to support the assurance conclusion. The risk of not detecting a material misstatement resulting from fraud is higher than the risk of not detecting a material misstatement resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. In addition, the risk of not detecting a material misstatement in information obtained from sources not within the entity's control (value chain information) is ordinarily higher than the risk of not detecting a material misstatement in information obtained from sources within the entity's control, as both the entity's executive directors and we as practitioners are ordinarily subject to restrictions on direct access to the sources of the value chain information.
- consider the forward-looking information, including the appropriateness of the underlying assumptions. There is a substantial unavoidable risk that future events will differ materially from the forward-looking information.
Summary of the Procedures Performed by the Independent Practitioner
A limited assurance engagement involves the performance of procedures to obtain evidence about the sustainability information. The nature, timing and extent of the selected procedures are subject to our professional judgment.
In performing our limited assurance engagement, we:
- evaluated the suitability of the criteria as a whole presented by the executive directors in the Consolidated Sustainability Report.
- inquired of the executive directors and relevant employees involved in the preparation of the Consolidated Sustainability Report about the preparation process, including the materiality assessment process carried out by the entity to identify the disclosures to be reported in the Consolidated Sustainability Report, and about the internal controls related to this process.
106 | REPORT OF THE STATUTORY AUDITOR
- evaluated the reporting policies used by the executive directors to prepare the Consolidated Sustainability Report.
- evaluated the reasonableness of the estimates and related information provided by the executive directors. If, in accordance with the ESRS, the executive directors estimate the value chain information to be reported for a case in which the executive directors are unable to obtain the information from the value chain despite making reasonable efforts, our assurance engagement is limited to evaluating whether the executive directors have undertaken these estimates in accordance with the ESRS and assessing the reasonableness of these estimates, but does not include identifying information in the value chain that the executive directors were unable to obtain.
- performed analytical procedures or tests of details and made inquiries in relation to selected information in the Consolidated Sustainability Report.
- considered the presentation of the information in the Consolidated Sustainability Report.
- considered the process for identifying taxonomy-eligible and taxonomy-aligned economic activities and the corresponding disclosures in the Consolidated Sustainability Report.
Restriction of Use
We issue this report as stipulated in the engagement letter agreed with the Company (including the "General Engagement Terms for Wirtschaftsprüferinnen, Wirtschaftsprüfer and Wirtschaftsprüfungsgesellschaften (German Public Auditors and Public Audit Firms)" dated January 1, 2024 of the Institut der Wirtschaftsprüfer (IDW)). We draw attention to the fact that the assurance engagement was conducted for the Company's purposes and that the report is intended solely to inform the Company about the result of the assurance engagement. Consequently, it may not be suitable for any other than the aforementioned purpose. Accordingly, the report is not intended to be used by third parties as a basis for making (financial) decisions.
Our responsibility is to the Company alone. We do not accept any responsibility to third parties. Our assurance conclusion is not modified in this respect.
Cologne/Germany, April 16, 2026
Deloitte GmbH
Auditing company
Signed: Sebastian Dingel
Partner
Signed: Stefan Vlaminck
Manager
REPORT OF THE STATUTORY AUDITOR | 107
LIST OF ABBREVIATIONS
LIST OF ABBREVIATIONS
| B2B | Business-to-business |
|---|---|
| BAFA | Bundesamt für Wirtschaft und Ausfuhrkontrolle (Federal Office of Economics and Export Control) |
| BEM | Company Reintegration Management |
| BEV | Battery electric vehicle |
| BP | Basis for preparation |
| BP-1 | Disclosure Requirement - General basis for preparation of the sustainability statements |
| BP-2 | Disclosure Requirement - Disclosures in relation to specific circumstances |
| CaDI | Carbon Database Initiative |
| CapEx | Capital expenditure |
| CMS | Compliance Management System |
| CO2 | Carbon dioxide |
| CO2e | Carbon dioxide equivalent |
| CSRD | Corporate Sustainability Reporting Directive |
| CSR | Corporate social responsibility |
| CSR-RUG | CSR Directive Implementation Act |
| DEFRA | British Department for Environment, Food & Rural Affairs |
| DNSH | Do No Significant Harm |
| E | Environment |
| EBIT | Earnings before interest and taxes |
| EPA | U.S. Environmental Protection Agency |
| ESG | Environmental, Social and Governance |
| ESRS | European Sustainability Reporting Standards |
| EEA | European Economic Area |
| G | Governance |
| GEMIS | Global Emissions Model for Integrated Systems |
| GOV | Disclosure requirements for governance |
| GOV-1 | Disclosure requirement – The role of the administrative, management and supervisory bodies |
| GOV-2 | Disclosure requirement – Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies |
| GOV-3 | Disclosure requirement – Integration of sustainability- related performance in incentive schemes |
| GOV-4 | Disclosure requirement – Statement on sustainability due diligence |
| GOV-5 | Disclosure requirement – Risk management and internal controls over sustainability reporting |
| GRI | Global Reporting Initiative |
| HGB | Handelsgesetzbuch (German Commercial Code) |
LIST OF ABBREVIATIONS | 109
| HinSchG | Hinweisgeberschutzgesetz (German Whistleblower Protection Act) |
|---|---|
| IFRS | International Financial Reporting Standards |
| IKS | Internal Control System |
| IPCC | Intergovernmental Panel on Climate Change |
| IRO | Impacts, risks and opportunities |
| IRO-1 | Disclosure requirement – Description of the processes to identify and assess material impacts, risks and opportunities |
| IRO-2 | Disclosure requirement – disclosure requirements in ESRS covered by the undertaking’s sustainability statements |
| ISO | International Organization for Standardization |
| KPI | Key Performance Indicators |
| MDR | Minimum Disclosure Requirement |
| MDR-A | Minimum disclosure requirements regarding actions and resources in relation to material sustainability matters |
| MDR-M | Minimum disclosure requirements regarding metrics in relation to material sustainability matters |
| MDR-P | Minimum disclosure requirements regarding policies adopted to manage material sustainability matters |
| MDR-T | Minimum disclosure requirements regarding tracking effectiveness of policies and actions through targets |
| STEM | Science, Technology, Engineering, Math |
| NFRD | Directive 2014/95/EU of the European Parliament and of the Council (directive as regards disclosure of non-financial and diversity information by certain large undertakings and groups - Non-Financial Reporting Directive) |
| OECD | Organisation for Economic Co-operation and Development |
| OpEx | Operational expenditures |
| S | Social issues |
| SBM | Disclosure requirement strategy, business model and value chain |
| SBM-1 | Disclosure requirement – Market position, strategy, business model(s) and value chain |
| SBM-2 | Disclosure requirement – Interests and views of stakeholders |
| SBM-3 | Disclosure requirement – Material impacts, risks and opportunities and their interaction with strategy and business model(s) |
| SBTi | Science Based Targets initiative |
| SGB | Sozialgesetzbuch (German Social Security Code) |
| TCFD | Task Force on Climate-Related Financial Disclosures |
| GHG | Greenhouse gas |
| TSE | Team Sustainable Engineering |
| UBA | Umweltbundesamt (Federal Environmental Agency) |
| R | Regulation |
| VR | Board of Directors |
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