Resource Use and Circular Economy (E5)

The transition to a circular economy is fundamental to building a more resilient and sustainable future. This transformation redefines how we design, produce, use and recover resources, shifting from the traditional linear “take-make-dispose” model toward regenerative systems. Within this context, resource use is not just about being efficient to conserve materials, energy and natural resources throughout the entire product life cycle. By integrating circular design principles, we aim to reduce material inputs, enhance process efficiency and facilitate the reuse, recycling and safe disposal of products. We embed sustainability and circular economy criteria into the earliest stages of research, development and production to ensure our products and systems align with environmental limitations and support long-term value creation.

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

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

Resource use and sustainable sourcing in our policies

According to our Supplier Code of Conduct, suppliers must demonstrate efforts to decrease their resource use and embrace circular economy principles. Common examples include reusing products and materials such as packaging or developing and introducing recyclable products via a cradle-to-cradle approach. They must also have systems and processes for managing and controlling the storage, recycling, reuse and disposal of waste. They must ensure hazardous waste is adequately managed, controlled and treated prior to being released into the environment.

In line with our Group-wide Umbrella Policy and recognizing that each business sector operates with its own Design for Sustainability (DfS) framework, we aim to minimize the negative impacts of our products across their entire life cycle. To help our development teams address product-related challenges, we have implemented scorecards for sustainable design across all our business sectors.

We are committed to supporting waste targets and fostering the adoption of circular solutions with our Life Science SMASH Packaging and Healthcare MPact Sustainable Packaging programs. More information about our actions can be found in section E5-2 of this chapter.

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

Our strategic approach to the circular economy provides an organization-wide framework for aligning product design, manufacturing, resource management and value chain collaboration with circularity principles. The topics of resource use and circularity are also intricately linked to broader environmental, social and economic systems. As a result, addressing this complexity requires collaboration across our value chain, continuous improvement and a firm commitment to transparency and accountability.

Sustainability in product development under one umbrella

With the Umbrella initiative, we aim to align our research and development (R&D) with the creation of sustainable products and innovations, while minimizing negative impacts from production, usage and disposal. We have consolidated specific scorecards for each of our three business sectors. These scorecards evaluate sustainable design from the early stages of product development and include measurable criteria that span the entire product life cycle of a product. The assessments address various challenges throughout the value chain. In the context of a circular economy, we primarily focus on waste treatment and reduction, as well as minimizing material consumption in products and services.

Each research and development (R&D) project must complete and regularly update a business sector-specific sustainability scorecard. The DfS framework is implemented in the business sectors as DfS in Life Science, DfS in Healthcare and Sustainability in R&D in Electronics (SURE). Through DfS, we take a holistic approach to product development, considering the environmental and social impacts of a product across its entire life cycle. We target and quantify sustainability improvements throughout the product development process in using a DfS scorecard. In Life Science, when a product demonstrates significant sustainability characteristics, we communicate these to customers on the product webpage.

We measure and review our progress annually and establish the new ambition for the upcoming year accordingly. For more detailed data and results on Umbrella for the reporting year 2025, please refer to Chapter E2-2.

The key stakeholders in this initiative include the business sector sustainability unit, which comprises R&D, product management, environmental, health and safety (EHS), quality, production, procurement, and marketing. The Umbrella initiative is anticipated to continue over the long-term.

Design for sustainability framework in the Life Science business sector

One example of a Life Science product launched in 2025 following the introduction of the DfS framework are filter devices from our Process Solutions business unit containing our new Millipore Express^® Ace 0.2 µm membrane. This polyethersulfone (PES) membrane is an alternative to polyvinylidene fluoride (PVDF) membranes such as our Durapore^® 0.22 µm membrane and is manufactured without the intentional addition of any per- and polyfluoroalkyl substances (PFAS). The Millipore Express^® Ace 0.2 µm has a carbon footprint approximately 25% lower than the Millipore Express^® SHC filter, primarily due to the use of a single-layer membrane compared to a dual-layer membrane. In addition, a Millipore Express^® Ace 0.2 µm 10” filter has an approximately 3.5- to 5-times higher filtration capacity compared to a Durapore^® 0.22 µm 10” filter and approximately 1.7- to 2.2-times higher filtration capacity compared to a Millipore Express^® SHC 10” filter based on data from internal tests across four different fluid streams. This increased capacity allows customers in certain use cases to reduce the number of filters needed, resulting in less waste.

Packaging sustainability across business sectors

Packaging sustainability in the Life Science business sector

In Life Science we consider sustainability in our packaging in order to reduce waste and the environmental impacts of our products for our customers, and to contribute to our corporate Sustainability Strategy and Goals. We holistically pursue packaging sustainability to also support compliance with various packaging regulations, such as the European Packaging and Packaging Waste Regulation (PPWR), the European Union Deforestation Regulation (EUDR), Extended Producer Responsibility (EPR), or South Korea’s Act on the Promotion of Saving and Recycling of Resources.

Through our SMASH Packaging program in Life Science, we strive to enhance the sustainability of packaging, optimize resource efficiency and promote circularity across our entire Life Science portfolio. SMASH Packaging is built on the four key pillars of SHRINK, SECURE, SWITCH and SAVE.

In 2025, for example, we implemented a packaging reuse initiative at our Latin American distribution centers in Argentina, Brazil, Chile, Colombia, Guatemala, Mexico and Peru. The sites reused suitable packaging materials received from our production plants for the local distribution of products, including pallets and distribution boxes, and reduced the consumption of paper for product data sheets. The project reduces the consumption of packaging and contributes to circularity by reusing materials. It saved the sites a total of 407 metric tons of materials in 2025.

We plan to continue SMASH Packaging’s actions and resources over the long-term. The affected stakeholders include our Sustainability and Social Business Innovation unit, Packaging Engineers, Operations, Procurement, Quality & Regulatory, R&D and Product Management units.

Packaging sustainability in the Healthcare business sector

Through the MPact initiative, we develop packaging solutions aimed at reducing our overall environmental impact. Our three main objectives are to lower greenhouse gas (GHG) emissions, reduce the use of packaging materials while increasing packaging recycling rates, and explore the potential for replacing secondary and tertiary plastic packaging by 2030. To prepare for the European Packaging and Packaging Waste Regulation (PPWR) in 2025, we established a dedicated task force to assess the impact of these regulatory requirements. This includes conducting a recyclability assessment of our secondary and tertiary packaging. We also initiated a feasibility study on PVC-free blisters. We are analyzing these requirements to ensure that the MPact sustainable packaging strategy aligns with the PPWR in the coming years.

MPact is designed to help achieve our 70% circularity target by 2030, mitigate the risks associated with materials of concern (or potential concern) and further reduce GHG emissions. The actions outlined in this initiative will be implemented over the next five to ten years.

Circularity in products and processes across our business sectors

Renewable polymers in Life Science products and packaging

As part of our efforts to increase the circularity of our Life Science products, in 2025 our Cork, Ireland, site obtained International Sustainability & Carbon Certification (ISCC) PLUS certification, where we produce our Amicon^® centrifugal ultrafiltration devices and the outer packaging for our Millipore^® filter membranes. Additionally, three of our supplier sites serving these product lines also obtained ISCC PLUS certification. This certification confirms that the polymers used in these products and packaging are obtained through renewable feedstock, rather than petroleum.

We have implemented the mass balance approach to manage and track renewable materials in our supply chain. With third-party verification through ISCC PLUS, each production site will monitor the specific proportion of bio-renewable feedstock used in our plastics. Prior to certification, we tested the new source material to confirm that polymer fulfills our product specifications and is an acceptable alternative for the intended product uses.

All four sites first received their certifications in 2024 and renewed their certifications in 2025. We will continue to pursue our strategy to incorporate renewable polymersacross eligible products in our Life Science portfolio over the long-term as part of continuous improvement.

Take-back program for single-use fertility pens in the Healthcare business sector

Our Healthcare business sector is actively participating in a consortium for the Returpen fertility pen take-back program in Denmark. This initiative serves as a crucial step toward making our Fertility portfolio more sustainable – from manufacturing to patient use. Launched in Denmark in 2023, this initiative aims to achieve a return rate of 25% for injection pens, allowing patients to return used fertility injection pens to fertility clinics for recycling. In collaboration with the consortium partners, we have signed a letter of intent to focus on the recycling of plastic, glass and metal components. The consortium is committed to recycling 75% of the injection pens returned. The action will continue long-term.

Optimized specialty gases in the Electronics business sector

For our extensive portfolio of specialty gases – including etching, cleaning, deposition, and dopant gases – we are looking for material solutions that enhance etching performance while minimizing global warming potential. We implement targeted actions for specific customer applications to reduce GHG emissions, optimize the usage phase, and ensure responsible disposal of products and packaging. Through these initiatives, we aim to help our customers reduce their Scope 1 emissions. Our efforts are applied globally across our semiconductor value chain, benefiting both customers and partners. The action will continue long-term.

Solvent recycling in our OLED production in the Electronics business sector

The optimization of the production of organic light-emitting diodes (OLED) at our site in Darmstadt, Germany, is a concrete example of our circularity in production processes and value chain. This project actively reduces CO₂ emissions and enhances resource efficiency by improving solvent recycling, reprocessing materials internally, and enabling customers to return old products. Additionally, we are implementing digital technologies to further enhance our processes. The action will continue long-term.

Tool for the evaluation of chemical products

Our aim to make research and production as environmentally friendly as possible has led to the development of our innovative GreenSpeed tool. This tool enables us to automatically evaluate the key sustainability criteria of our chemical products during research and development, minimizing environmental impact and optimizing resource use. GreenSpeed tracks essential metrics such as resource usage per kg product (process mass intensity, PMI), water usage, solvent consumption, energy consumption and greenhouse gas emissions (product carbon footprint, PCF). Its greenhouse gas emission calculations are based on the combination of data from our inhouse electronic laboratory notebooks (ELN) with environmental footprint data.

The stakeholders impacted by GreenSpeed include employees, customers, suppliers and investors. We are currently enhancing the tool by adding modules to evaluate the impacts of specific solvents used. Within the next five years, we plan to extend the implementation of GreenSpeed to additional user groups inside and outside the company. We also aim to launch a pilot project to implement GreenSpeed assessments as part of the Umbrella initiative, facilitating more accurate quantification of environmental impacts early in the R&D process. The action will continue long-term.

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

Our waste target for 2030 is to further reduce our own production-related waste or direct it towards material recovery. In addition, we have set further, quantifiable and non-quantifiable ambitions with the intention of continuously improving and advancing our sustainability measures. These ambitions are meant to express our commitment to establishing a positive impact or reducing a negative impact in terms of resource use and the circular economy. In 2025, we recorded a positive increase in the Circularity Rate, which is primarily attributable to an increase in the amount of waste avoided.

With all our targets and actions mentioned herein, we contribute to selected UN Sustainability Development Goals (SDGs). In our overarching Sustainability Strategy, the SDGs 9, 12 and 17 are highlighted under the focus area “Water and resource intensity”.

We report the Circularity Rate under ESRS 2 as it is one of our strategic sustainability key indicators used to measure our circular waste practices and meet our related target.

Our Waste target 2030 requires the avoidance, reuse and material recycling of waste, which can then be reused as non-virgin materials. The avoidance of waste is tracked through the reduced use of raw materials and contributes to our ambitions. In addition, recycling of waste for reuse reduces the use of virgin materials. We adhere to the waste hierarchy for our waste treatment options. Our Waste target 2030 relates to prevention, reuse and recycling.

Packaging Sustainability in the Life Science business sector

The circular design principles of SMASH packaging are embedded into our DfS framework, which considers environmental impacts at every stage of the product life cycle during product development. Through the SMASH Packaging program in Life Science, we are making progress toward our packaging sustainability goals:

• SHRINK (reduce the amount of packaging): We aim to decrease packaging weight per sales unit by 10% by 2030, focusing on reducing corrugated cardboard, wood, glass, and plastic through lighter materials and eliminating excess dunnage. We target a total reduction of 6,300 metric tons by 2030, compared to a 2020 baseline of approximately 63,000 metric tons. In 2025, we implemented improvements that saved over 407 metric tons (2024: 396 metric tons) annually. We are currently on track to reach our 2030 SMASH Packaging weight reduction goal. We will continue to engage colleagues across the organization to prioritize initiatives such as packaging reuse, bulk packaging or avoidance of overpacking in order to maintain progress on this goal.

• SECURE (achieve zero deforestation): We are committed to using 100% deforestation-free fiber-based packaging by 2030. In the baseline year 2020, 66% of our fiber-based packaging was deforestation-free. In 2025, this amounted to 81.9% (2024: 81.6%). To reach our SMASH packaging zero-deforestation goal by 2030, we plan to adopt a new methodology in 2026 to enable teams to prioritize and measure projects more efficiently by tracking zero-deforestation data at the item-level rather than at the supplier-level.

• SWITCH (improve plastic sustainability) & SAVE (maximize recycling): Our goal is to ensure that all of our packaging aligns with circular product development principles by 2030. In fiscal 2025, 45.4% (2024: 46.4%) of our product packaging met these criteria, compared to a 2020 baseline of 49%. To reach our packaging circularity goal by 2030, we must take additional action. We are focused on increasing recyclability, the amount of recycled and bio-based content in packaging, as well as providing clear labeling for responsible disposal.

Reducing the weight of direct and shipment packaging includes reducing the amount of corrugated cardboard, wood, glass, and/or plastic packaging materials, for example, by reducing weight, substituting materials, and reusing or removing excess filler material. We are converting all wood fiber packaging materials to recycled, certified or verified deforestation-free sources. Circular packaging is packaging that is either recyclable or reusable or contains recycled materials. This ambition is measured by dividing the total amount of circular packaging in metric kilotons by the total amount of packaging in metric kilotons. 2025 progress on our SMASH packaging ambitions was below expectations compared to the 2020 baseline due to the limited impact of completed projects.

We measure our progress on the SHRINK, SECURE, SWITCH & SAVE ambitions based on the weight of materials avoided or converted annually. For the SECURE ambition, we measure progress based on the weight of fiber-based materials sourced with deforestation-free certifications compared to the total weight of fiber-based materials sourced. For the SHRINK and SWITCH & SAVE ambitions, we additionally measure progress based on the weight of CO₂ equivalents (CO₂eq) avoided per project. The calculation for SECURE, SWITCH and SAVE is based on the respective previous year’s figures. All projects are reviewed individually and regularly after milestones are reached or following completion. In doing so, environmental impacts are measured and converted into CO₂eq. We monitor progress against these targets semi-annually and report annually to the Head of Sustainability and Social Business Innovation in Life Science.

SHRINK relates to the first level of the waste hierarchy, i.e. avoidance. SWITCH & SAVE relates to the following waste hierarchy treatment options: prevention, reuse and recycling.

The scope and scale of these ambitions have been set on a voluntary basis and are not legally required. They are set based on conclusive scientific evidence. Key functions in all areas of the company are committed to the overarching goal of reducing our ecological footprint by aiming to achieve climate neutrality by 2040 and decreasing our resource consumption. Key stakeholders involved in this ambition include Life Science R&D, Packaging Engineers, Product Management, Quality & Regulatory, Environment, Health, and Safety (EHS), and Procurement units.

Our resource inflows (E5-4)

Metrics related to resource inflows

Total weight of products and materials used to manufacture products and deliver services

Our assessment is based on the total weight of products in metric tons used to manufacture the products during the reporting period. We do not use approximations or assumptions for this metric.

Our procured materials and products (including packaging materials) are used at the respective sites, depending on the business sector and production process. The procured materials and products are subdivided into subgroups such as raw materials, biologics and chemicals.

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

Percentage of biological materials used to manufacture products and services that are sustainably sourced

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

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

We uphold sustainable sourcing of biological materials through our Supplier Code of Conduct, which emphasizes ethical and environmental standards. Suppliers are expected to apply circular economy principles and operate robust waste systems with adequate management and treatment of hazardous waste. We do not currently apply a specific certification scheme for sustainably sourced biological materials.

We apply the cascading principle broadly across materials and processes, prioritizing avoidance, reuse/repair, and recycling, with lower-value recovery (including energy recovery) as a last resort.

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

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

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

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

Our resource outflows (E5-5)

The following table details our metrics related to resource outflows – waste:

Our Waste Management Standard regulates the key principles for effective and sustainable waste management, emphasizing the need to identify opportunities to minimize waste and maximize the use of recyclable and reusable materials wherever possible.

We record avoided waste as a company-specific metric. The amounts of waste avoided arise from permanent process optimizations (continuous avoidance) or from one-time measures.The quantities of avoided waste are collected quarterly, in fiscal 2025, 5,754 metric tons were avoided through one-time measures.

The documentation of waste streams and their classification is carried out on the basis of predefined waste categories. In addition to the distinction between hazardous and non-hazardous waste (which is done at site level, according to local legislation), more detailed information on the type of waste is recorded and waste categories such as electronic waste, waste from wastewater treatment plants or organic solvents are tracked individually.

Among the waste to be disposed of, the following waste categories are significant for the company’s value-adding activities:

• Waste from production (excluding solvents, as these are listed in a separate category): Examples include chemicals such as acids, bases or biohazardous waste.

• Waste from wastewater treatment plants (for example, different types of sludges from effluent treatment or wastewater that is disposed of as waste).

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

• Organic non-halogenated solvents (Halogen <5%): Our broad product portfolio and diverse manufacturing methods result in the creation of various types of solvent waste, primarily arising from synthesis-, purification-, cleaning- and distillation activities. These solvents and solvent mixtures include acetone, heptane and toluene, as well as other organic solvents.

• ⁠Non-hazardous paper and cardboard waste.

• ⁠Non-hazardous household and similar waste (for example, waste from office spaces and canteens, waste to be composted).

• Non-hazardous plastic waste.

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

Metrics related to our own resource outflows

Metrics related to recyclable content in packaging

The proportion of recyclable content in packaging in the year 2025 was 88.8% (2024: 87.5%).

We do not manufacture our own packaging but only purchase it. The recyclable portion of all our packaging is determined based on the procurement data. The quantification is based on mass. The recyclable content is defined based on the technical feasibility of the recycling process. Recycling carried out by the customer and the final recycling rates are not quantified or considered here. For fiscal 2024, the proportion of recyclable content in packaging was adjusted retrospectively from 97.7% to 87.5%, with all underlying values were adjusted accordingly.

The measurement of the recyclable content in packaging metric has not been validated separately by an external body.

Expected durability of Healthcare products

The expected durability of Healthcare products represented 3 years (2024: 3 years) in the reporting year 2025. To define this indicator, we use the maximum durability of the individual Healthcare products. These are quantified on the basis of their respective share of sales and then added up. The contribution of each individual product to the sum parameter of the total durability is thus based on sales. We do not use approximations or assumptions for this indicator. The durability of the individual Healthcare products is clearly defined and publicly available. For the indu stry average, we select comparable drugs from other pharmaceutical companies and average their shelf life across all treatment categories.

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

Product repairability in Life Science and Electronics

The product repairability in Life Science is 50% (2024: 51%) in the reporting year 2025. In Electronics, product repairability amounts to 100% (2024: 100%) in the reporting year 2025. The repairability is either taken as given (and thus rated as 100%), not given (and thus rated as 0%) or not applicable (and thus not included in the rating).

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

Proportion of recyclable content in Healthcare products

The proportion of recyclable content in Healthcare products is 0% (2024: 0%) in the reporting year 2025. We use an approximation for this indicator. The assessment of recyclability or the recyclable content is applied to our entire product portfolio. The products were categorized into groups. The recyclable portion of these product groups was quantified and weighted based on their respective sales share and then added up. The contribution of each individual product group to the sum parameter of the recyclable portion is thus based on sales. We estimate the recyclable content of products in the Healthcare business sector to be 0% since the processing infrastructure for primary packaging is currently only being established, and contaminated packaging can only be recycled in very special cases. The actual active ingredients, when quantified by mass, make up a smaller share and, according to our assumptions, do not contain any recyclable content. The recyclable content is defined based on the technical feasibility of processing. The recycling carried out by the customer and the final recycling rates are not quantified or considered here.

Proportion of recyclable content in Life Science and Electronics products

In Life Science, the proportion of recyclable content is 18% (2024: 18%) in the reporting year 2025. The same indicator in Electronics amounts to 9% (2024: 9%) in the reporting year 2025. We use an approximation for this indicator. The assessment of recyclability or the recyclable content is applied to our entire portfolio. The products were categorized into groups. The recyclable portion of these product groups was quantified and weighted based on their respective sales share and then added up. The contribution of each individual product group to the sum parameter of the recyclable portion is thus based on sales. The recyclable content is defined based on technical feasibility for processing. The recycling carried out by the customer and the final recycling rates are not quantified or considered here.

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

Our circular design for products and materials

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

Several of our key products and materials either follow circular design principles or incorporate circular mechanisms in line with industry standards. In our Electronics business sector, we have designed reusable packaging for specialty gases, thin films and patterning materials, with containers that can be returned, refurbished and refilled to reduce waste and resource use. Similarly, our OLED materials incorporate circular practices through internal reprocessing and solvent recycling. In the Healthcare business sector, we are redesigning selected packaging formats to enable reuse, improve recyclability and support ongoing zero-waste efforts. In Life Science, we are replacing conventional solvents with bio-based alternatives to reduce their environmental impact. We are also transitioning from non-recyclable packaging materials to recyclable versions, such as molded pulp.

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