Material impacts, risks and opportunities and their interaction with our strategy and business model (SBM-3)

The following table provides an overview of our materialIROs identified as part of the materiality analysis. These will be described in detail in the respective topic sections. We describe the methodology of our double materiality analysis under Description of the process to identify and assess material impacts, risks and opportunities (IRO-1).

IRO identifier	Type of IRO	Sustainability matter	Reference chapter
E1-NI-01	Actual negative impact	Climate change mitigation	E1 Climate Change
E1-NI-02	Actual negative impact	Climate change mitigation	E1 Climate Change
E1-NI-03	Actual negative impact	Energy	E1 Climate Change
E1-R-01	Risk	Climate change adaptation	E1 Climate Change
E1-R-02	Risk	Climate change mitigation	E1 Climate Change
E1-O-01	Opportunity	Climate change adaptation; climate change mitigation	E1 Climate Change
E2-NI-01	Actual negative impact	Pollution of water	E2 Pollution
E2-PI-01	Potential positive impact	Substances of concern; Substances of very high concern	E2 Pollution
E2-PI-02	Potential positive impact	Substances of concern; Substances of very high concern	E2 Pollution
E2-R-01	Risk	Pollution of soil	E2 Pollution
E2-R-02	Risk	Substances of concern; Substances of very high concern	E2 Pollution
E3-NI-01	Actual/potential negative impact	Water withdrawal	E3 Water and Marine Resources
E5-NI-01	Actual negative impact	Resource outflows related to products and services; Waste	E5 Resource Use and Circular Economy
E5-NI-02	Actual/potential negative impact	Waste	E5 Resource Use and Circular Economy
E5-PI-01	Actual positive impact	Waste	E5 Resource Use and Circular Economy
E5-PI-02	Actual positive impact	Resource outflows related to products and services	E5 Resource Use and Circular Economy
E5-R-01	Risk	Resource inflows, including resource use	E5 Resource Use and Circular Economy
E5-R-02	Risk	Resource inflows, including resource use	E5 Resource Use and Circular Economy
S1-NI-01	Potential negative impact	Equal treatment and opportunities for all: Gender equality and equal pay for work of equal value	S1 Own Workforce
S1-NI-02	Potential negative impact	Working conditions: Work-life balance	S1 Own Workforce
S1-NI-03	Potential negative impact	Working conditions: Secure employment; Working time; Adequate wages; Collective bargaining, including rate of workers covered by collective agreements	S1 Own Workforce
S1-PI-01	Actual positive impact	Equal treatment and opportunities for all: Diversity	S1 Own Workforce
S1-PI-02	Actual positive impact	Equal treatment and opportunities for all: Training and skills development	S1 Own Workforce
S1-PI-03	Actual positive impact	Working conditions: Health and safety	S1 Own Workforce
S1-PI-04	Actual positive impact	Equal treatment and opportunities for all: Work-life balance	S1 Own Workforce
S1-R-01	Risk	Working conditions: Health and Safety, Collective bargaining, Working time; Equal treatment and opportunities for all: Diversity	S1 Own Workforce
S2-NI-01	Actual negative impact	Equal treatment and opportunities for all: Diversity; Employment and inclusion of persons with disabilities	S2 Workers in the Value Chain
S2-NI-02	Actual negative impact	Equal treatment and opportunities for all: Measures against violence and harassment in the workplace	S2 Workers in the Value Chain
S2-NI-03	Potential negative impact	Other work-related rights: Child labor; Forced labor	S2 Workers in the Value Chain
S2-NI-04	Potential negative impact	Other work-related rights: Adequate housing; Water and sanitation; Privacy	S2 Workers in the Value Chain
S2-NI-05	Actual negative impact	Working conditions: Secure employment; Working time; Adequate housing	S2 Workers in the Value Chain
S2-NI-06	Actual negative impact	Working conditions: Health and safety	S2 Workers in the Value Chain
S2-R-01	Risk	Working conditions: Health and safety	S2 Workers in the Value Chain
S4-PI-01	Actual positive impact	Personal safety of consumers and/or end-users: Health and safety	S4 Consumers and End-Users
S4-PI-02	Potential positive impact	Personal safety of consumers and/or end-users: Health and safety	S4 Consumers and End-Users
S4-PI-03	Potential positive impact	Personal safety of consumers and/or end-users: Health and safety	S4 Consumers and End-Users
S4-PI-04	Potential positive impact	Personal safety of consumers and/or end-users: Health and safety	S4 Consumers and End-Users
S4-PI-05	Actual positive impact	Social inclusion of consumers and/or end-users: Access to products and services	S4 Consumers and End-Users
S4-PI-06	Actual positive impact	Information-related impacts for consumers and/or end-users: Access to (quality) information	S4 Consumers and End-Users
S4-R-01	Risk	Personal safety of consumers and/or end-users: Health and safety	S4 Consumers and End-Users
S4-R-02	Risk	Personal safety of consumers and/or end-users: Health and safety	S4 Consumers and End-Users
S4-O-01	Opportunity	Personal safety of consumers and/or end-users: Health and safety	S4 Consumers and End-Users
G1-NI-01	Actual negative impact	Animal welfare	G1 Business Conduct
G1-NI-02	Actual negative impact	Corruption and bribery	G1 Business Conduct
G1-PI-01	Potential positive impact	Corporate culture	G1 Business Conduct
Entity-PI-01	Potential positive impact	Bioethics	Bioethics
Entity-PI-02	Actual positive impact	Digital ethics	Digital ethics

We assessed the identified material risks and opportunities for their potential impacts on our results of operations, financial positions, net assets, and liquidity. Beyond the provisions for environmental protection reported under E2, provisions for follow-up costs are recognized following the discontinuation of a drug candidate. Details can be found under S4. For the next reporting period, we do not anticipate any significant changes regarding environmental protection provisions. Furthermore, at this point in time, additional financial impacts from risks related to the potential future discontinuation of development projects in the Healthcare business sector cannot be estimated.

In the reporting period, we monitored the assessment of our IROs. In this context, the standard E4 Biodiversity and ecosystems was classified as not material, which is why this report provides no details about it. The same applies to the sub-topic Employment and inclusion of persons with disabilities in the S1 standard. At the same time, we have identified new material topics. This includes the sustainability matter of corruption and bribery in the G1 standard and the entity-specific topics of bioethics and digital ethics.

Overview of our material impacts, risks, and opportunities

Overview of our material impacts, risks, and opportunities – Governance

Due to our robust business model with three business sectors operating in different markets and our clear positioning as a science and technology company, we are well positioned even in economically difficult times. In 2025, we updated our climate resilience analysis to include a middle‑of‑the‑road (SSP2‑RCP4.5) scenario, integrated the scenario results into risk reporting and progressed toward site-level collection of climate‑adaptation measures. For details see E1.

Overview of our material impacts, risks, and opportunities

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