Nabaltec-NHB-2024-english

SUSTAINABILIT Y R EPORT 2024

CONTENTS 01 Foreword 03 General information 06 Summary of measures, policies and planned initiatives for the transition to a more sustainable economy 08 Information on business model, value chain and business strategy 12 Governance structure and management of risks and opportunities 14 Materiality analysis 21 Nabaltec’s sustainability goals 24 Sustainability guidelines and certifications 28 Environment 36 Biodiversity and ecosystems 41 Own workforce 50 Governance 60 Glossary 64 Imprint

F O R E W O R D 01 FOREWORD (VSME C1-47d) 2025 marks a milestone for Nabaltec. For the first time, we are publishing a comprehensive sustainability report based on the requirements of the Corporate Sustainability Reporting Directive (CSRD), the European Sustainability Reporting Standards (ESRS) and, in particular, the Voluntary Sustainability Standard for SMEs (VSME). Sustainability is not a new topic for us. We have been working with clear strategies for many years, particularly in the areas of governance and employee responsibility. VSME C1–47d VSME references are shown as a supplement to the respective chapter heading. Nabaltec is pursuing a gradual increase in the degree of compliance in order to continuously develop the existing sustainability standards. Our business strategy enables us to navigate safely between environmentally friendly solutions and energy-intensive production. For us, responsible navigation means continuously aligning our decisions with new findings, data and developments. With our first sustainability report, we are creating the basis for consistently developing this course further - towards a future that combines ecological responsibility with economic success, while always keeping an eye on the big picture and the needs of our stakeholders. We are convinced of the opportunities and added value that we as a company can utilize and contribute to the ongoing transformation of our economy. The production of functional fillers and specialty oxides positions our company worldwide in growth markets that are also characterized by increasing environmental awareness and stricter regulatory requirements. We benefit from key future trends such as electromobility, energy storage and stricter emissions and product regulations. Our products are free of hazardous substances and enable more environmentally friendly applications, for example as a coating material for separators in lithium-ion batteries, replacing halogen-containing flame retardants in plastics or reducing nitrogen oxides in diesel particulate filters. S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

02 F O R E W O R D Resource- and energy-intensive production Our value creation processes are also resource- and energy-intensive. We address this challenge by using innovative technologies that reduce our consumption in a targeted manner and optimize our use of resources. This not only contributes to environmental protection, it also reduces our ongoing operating costs. Further information on the individual objectives and measures is described in the chapter on the environment. Strategic foundation In 2024, we systematically identified our key impacts, risks and opportunities as part of the double materiality analysis and expanded our existing risk and opportunity management. These strategic tools provide us with a solid basis for setting clear goals, proactively overcoming future challenges and successfully exploiting new opportunities. N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

G E N E R A L I N F O R M A T I O N 03 GENER AL INFORMATION Basis for the preparation of the report Reporting standard (VSME B1-24a) The following report is based on the voluntary European Sustain- ability Reporting Standards (ESRS) for Small and Medium-sized Enterprises (VSME). These were published as a draft by the European Financial Reporting Advisory Group (EFRAG) in January 2024. By following this standard, we not only support our own ESG goals, but also help our customers to meet the requirements of the CSRD. This year’s report fulfills the requirements of the Basic Module. From the next generation of reports, we also intend to fully meet the requirements of the Comprehensive Module. However, where the necessary information is already available, data points from the comprehensive module have already been included in this report. VSME B1–24a The current version of the VSME is available in English on the EFRAG website: https://www.efrag.org/en/projects/voluntary-reporting- standard-for-smes-vsme/concluded Information on the consolidated group (VSME B1-24c) This sustainability report was prepared on an individual basis for the Schwandorf site. VSME B1–24c Further information on our consolidated group can be found in the notes to our annual report 2024 in the section on subsidiaries and consolidated companies. S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

04 G E N E R A L I N F O R M A T I O N Deﬁnition of time horizons VSME C3-54b, C4-57c (VSME C3-54b, C4-57c) The ESRS 1 define time periods for short-term, medium-term and long-term considerations. However, we have deliberately chosen our own definition of time horizons in order to integrate reporting seamlessly into our risk management and create a solid basis for making targeted and precise long-term strategic decisions. We therefore use the following time periods, which differ from the ESRS: ◆ Short term: 3 years ◆ Medium term: 5 years ◆ Long term: 7 years In order to communicate developments and progress transparently, this report looks at three-year periods wherever possible. As we are still establishing and expanding the structures for comprehensive sustainability reporting and data collection, the focus is on the data for the 2024 financial year. Older data is used as a supplement where possible. For this reason, 2024 is generally used as the base year for the statistical data contained in this report, as complete and consistent data availability is guaranteed. In certain cases, however, the average for the years 2022 to 2024 is used as a reference value to enable a more meaningful presentation. General note on the presentation of ﬁgures For better readability, figures are rounded in accordance with commercial stan- dards. This can lead to rounding differences, which can result in percentages ranging from 98% to 102%. N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

G E N E R A L I N F O R M A T I O N 05 Possibility to omit information (VSME B1-24b) Nabaltec makes use of the option provided in the standard to exclude certain sensitive information. This includes information on intellectual property, company-specific expertise, innovation results, the flow of materials and the specific use of raw materials. VSME B1-24b Basis of assessment and exclusion of liability Nabaltec does not use estimates, but bases its reporting exclusively on actual, reliable data. The reporting framework focuses primarily on the company’s own business activities in order to ensure a precise and reliable data basis. Where reli- able information on the upstream and downstream value chain is already available, this is disclosed transparently and labeled accordingly. A gradual expansion of the reporting framework is planned for the future, depending on available data. This sustainability report was prepared to the best of our knowledge and belief on the basis of the information available at the time of publication. Despite careful checking, errors or omissions cannot be completely ruled out. This sustainability report also contains forward-looking statements that are based on the current estimates and forecasts of the Management Board and the information currently available. The forward-looking statements should not be construed as guarantees of the forecasted future developments and results. Rather, future developments and results are dependent on a large number of risks and uncertainties and are based on assumptions that may prove to be incorrect. We assume no obligation to update these forward-looking statements. Inclusion of information by means of reference To avoid duplication in reporting, this sustainability report contains specific references to further information in the 2024 annual report. These links are highlighted in color and placed at the respective locations where this information is typically expected in order to ensure clear and user-friendly navigation. External audit Nabaltec AG’s sustainability report for the year 2024 was not subject to an external audit. S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

06 S U M M A R Y O F M E A S U R E S , P O L I C I E S A N D P L A N N E D I N I T I A T I V E S SUMMARY OF MEASURES, POLICIES AND PL ANNED INITIATIVES for the transition to a more sustainable economy Key topic Climate change Responsible management level The Head of Division Quality Assurance and Sustainability at Nabaltec is responsible for moni- toring and controlling the measures and targets in the area of climate change. Existing practices, guidelines and standards Objectives and planned measures Nabaltec pursues the goal of systematically minimizing the negative impacts of its own actions on climate change. Nabaltec also supports the goal of achieving net-zero greenhouse gas emissions by 2045 at the latest. The following practices, guidelines and standards are applied: ◆ Environmental management system according to ISO 14001 ◆ Circular economy concepts ◆ Energy management system according to ISO 50001 ◆ Cooperation with the Schwandorf waste recycling association (ZMS) ◆ Systematic modernization of existing systems and appli- ances with energy-efficient models Reduction of greenhouse gas emissions: Î Reduction of Scope 1 emissions by 10% by 2035 (basis: average value for the years 2022 – 2024) Î Reduction of Scope 2 emissions by 30% by 2035 (basis: average value for the years 2022 – 2024) Î Conversion of at least 3 units for drying processes to electric or thermal heating coils Î Optimization of heat exchanger unit Increasing energy eﬃciency and the proportion of renewable energy sources: Î Reduction of specific energy consump- tion at the Schwandorf site [MWh/EUR turnover] by 15% by 2030 Î Use of 100% CO2-neutral electricity at the Schwandorf site by 2030 Î Conclusion of supply contracts for the ◆ Cooperation with suppliers to determine Scope 3 emissions purchase of CO2-neutral electricity Î Reduction of steam consumption through technical optimizations Î Testing the integration of a photovoltaic system Nabaltec does not pursue any independent strategic goals and measures in the area of biodiversity. The protection of natural ecosystems is closely linked to other strategically relevant topics – in particular climate protection, sustainable supply chains and energy efficiency measures, taking into account renewable energy sources – so that the goals and measures in these fields promote the conservation and promotion of biodiversity. The Head of Division Quality Assurance and Sustainability is responsible for biodiversity and ecosystems at Nabaltec Biodiversity and ecosystems The conservation and promotion of biodiversity are integrated into Nabaltec’s corporate strategy. The following practices, guidelines and standards are applied: ◆ Environmental management system according to ISO 14001 ◆ Water and waste management ◆ Circular economy concepts ◆ Energy management system according to ISO 50001 ◆ Policy on sustainable and responsible procurement of goods and services ◆ Protection of biodiversity and ecosystems as a criterion in the selection of raw material suppliers ◆ Code of Ethics N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

S U M M A R Y O F M E A S U R E S , P O L I C I E S A N D P L A N N E D I N I T I A T I V E S 07 Key topic Own workforce Existing practices, guidelines and standards Objectives and planned measures Nabaltec’s goal is to be an attractive employer and to offer safe and fair working conditions in the long term. The following practices, guidelines and standards are applied: ◆ Code of Conduct ◆ Flexitime models ◆ Part-time work and remote working ◆ Support with planning and Increase employee satisfaction and employee loyalty: Î Creation of a meeting place including staff restaurant by 2030 Promoting work-life balance: Î Provision of 20 vacation childcare places for a period of three weeks by 2030 Î Offer of tutoring services until 2030 Î Development of a vacation care concept Î Search for possible cooperation partners taking parental leave to offer tutoring services Responsible management level The Head of Division Administration at Nabaltec is responsible for imple- menting measures and monitoring progress towards targets within the own Workforce Business management ◆ Offers of health and fitness programs ◆ Financial support for further training measures, internal training programs and regular management and employee training sessions ◆ Occupational health and safety management system in accordance with ISO 45001 ◆ Reporting system for violations of company guidelines, laws or ethical standards Nabaltec is committed to responsible and legally compliant corporate governance. This is also the basis for long-term economic success. The following practices, guidelines and standards are applied: ◆ Code of Conduct ◆ Code of Ethics ◆ Policy on sustainable and responsible procurement of goods and services ◆ Evaluation of new and existing suppliers based on environ- mental, social and economic criteria ◆ Cooperation with customers, trade associations and research institutions ◆ Commitment to social projects in the region ◆ External data protection officer to monitor compliance with data protection guidelines ◆ Whistleblowing Directive Responsible supply chain management: Î Every year, Nabaltec evaluates 100% of its raw material suppliers in terms of their support for important industry-related sustainability guidelines and standards At Nabaltec, the Chief Executive Officer is responsible for implementing and achieving the measures and targets in the area of corporate governance Î Every year, Nabaltec reviews and evalu- ates its top 25 suppliers (key suppliers) according to purchasing volume with regard to compliance with sustainability requirements Responsible procurement management: Î By 2030, 25% of paper bags are to be made from raw materials from certified timber cultivation Î By 2030, 10% of pallets should be made from recycled plastic pallets Integration of sustainability aspects in innovation and development: Î Nabaltec’s innovation rate (ratio of new product sales to total sales) should be > 12% every year Î The ratio of sales of sustainable new products to total sales of new products should be > 95% in each year S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

08 I N F O R M A T I O N O N B U S I N E S S M O D E L , V A L U E C H A I N A N D B U S I N E S S S T R A T E G Y INFORMATION ON BUSINESS MODEL, VALUE CHAIN AND BUSINESS STR ATEGY VSME C1–47a (VSME C1–47a) Nabaltec is one of the world’s leading suppliers of functional fillers and specialty oxides on the basis of aluminum hydroxide (ATH) and aluminum oxide. Our products are used in a wide range of applications and serve different industrial requirements. Nabaltec’s business is divided into two product segments, each of which is subdivided into specific market segments: ◆ The “Functional Fillers” product segment comprises the market segments of cables, resins, dispersions and adhesives, batteries, rubber and elastomers. ◆ The “Specialty Aluminas” product segment is subdivided into the market segments of refractories, technical ceramics, polishing agents, adsorbents and catalysis. Further information on our business model can be found in our annual report 2024 in the management report under Group business model. Nabaltec’s value chain comprises all key process stages - from raw material extraction to application by the end customer - and is divided into four sections: upstream indirect, upstream direct, group and downstream direct: Upstream indirect Upstream direct Company Downstream direct Bauxite mining Bauxite transport material material Production of products Product transport Production of raw Transport of raw Direct customer/ representative Use of products Cradle-to-Gate N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

I N F O R M A T I O N O N B U S I N E S S M O D E L , V A L U E C H A I N A N D B U S I N E S S S T R A T E G Y 09 Indirect upstream and direct upstream value chain (VSME C1–47c) Nabaltec has a responsible procurement strategy that integrates economic, environmental and social aspects into the procurement process. At the end of the reporting period in December 2024, we were working with qualified raw material and packaging suppliers from the following countries: VSME C1–47c ◆ Brazil ◆ Germany ◆ Greece ◆ Spain ◆ Turkey In order to be able to react quickly to new customer requirements and market conditions, we regularly review our cooperation with other suppliers. Performance and flexibility are at the forefront of the selection process. Priority is given to long-term, strategically oriented and reliable partnerships with regional companies. Suppliers are evaluated on the basis of clearly defined monitoring mechanisms, including the use of a risk matrix. Particular preference is given to raw material suppliers that are certified according to recognized international standards, such as the Initiative for Responsible Mining Assurance (IRMA), the Responsible Minerals Initiative (RMI) or the Aluminium Stewardship Initiative (ASI). To ensure compliance with these standards, Nabaltec uses publicly available monitoring data and regularly reviews the fulfillment of environmental and social criteria along the supply chain. Regular on-site supplier audits also offer the opportunity to check processes directly on site and develop improvement measures together with suppliers. All our suppliers are also obliged to agree to a Code of Ethics that defines binding requirements for working conditions, climate and environmental management and ethically responsible procurement. This code also states that violations of our guidelines can lead to contractual sanctions and even termination of the business relationship. Through this structured approach, Nabaltec guarantees legal compliance, minimizes supply chain risks and ensures sustainable raw material procurement - even from countries with a higher risk profile. Further information on our dealings with suppliers can be found in the chapter on sustainability guidelines and certifications and in the chapter on supply chain and procurement management. S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

10 I N F O R M A T I O N O N B U S I N E S S M O D E L , V A L U E C H A I N A N D B U S I N E S S S T R A T E G Y Own business operations VSME B1–24e: i, vi, vii (VSME B1–24e: i, vi, vii) The Group’s business operations comprise the main site in Schwandorf, Germany, and the subsidiaries in the USA and China. Nabaltec AG Schwandorf, Germany 100% USA 100% Shanghai Nabaltec USA Corporation Nabaltec (Shanghai) Trading Co., Ltd. Corpus Christi, Texas, USA Administration & Sales Shanghai, China Sales & Marketing 100% 100% Nashtec LLC Naprotec LLC Corpus Christi, Texas, USA Chattanooga, Tennessee, USA Manufacturing Manufacturing Nabaltec’s headquarters in Schwandorf combines the areas of finance/controlling, commercial services, information technology, development and application technology, production, sales, quality assurance and sustainability, technical services as well as plant and process development. The US locations in Chattanooga and Corpus Christi concentrate on production, administration and sales. The location in Shanghai, China, is exclusively responsible for sales and marketing. Further information on our locations can be found in our annual report 2024 in the management report under Group business model and in the notes under Subsidiaries and consolidated companies. Further information on the number of our employees can be found in the Own workforce section. N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

I N F O R M A T I O N O N B U S I N E S S M O D E L , V A L U E C H A I N A N D B U S I N E S S S T R A T E G Y 11 This structure makes us economically successful and also forms the basis of our sustainability strategy. Our strength lies in the development of reliable, customer- centric products that are further improved through regular exchanges with our customers, whereby quality, innovation and social and environmental compatibility play a major role. Nabaltec therefore maintains a development and application technology department, an accredited analysis center and a pilot plant at its headquarters. Over the years, comprehensive expertise has been built up in the company’s own operations, which has been given further impetus through coopera- tion with leading research institutions. Further information on our business strategy can be found in our annual report 2024 in the management report under Group business model. Downstream value chain (VSME 47c) Nabaltec is a leading global manufacturer of specialty chemical products and a reliable supplier of outstanding product quality. With an export share of around 77%, the majority of our products are sold to customers outside Germany and from various industries. In addition to the products, Nabaltec also offers application technology consulting along the downstream value chain. VSME 47c S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

D MANAGEMENT OF RISKS AND OPPORT 12 G O V E R N A N C E S T R U C T U R E A N D M A N A G E M E N T O F R I S K S A N D O P P O R T U N I T I E S GOVERNANCE STRUCTURE AND MANAGEMENT OF RISKS AND OPPORTUNITIES General information on administrative, management and supervisory bodies VSME C2–49, C9–65 (VSME C2–49, C9–65) As a stock corporation, Nabaltec AG is subject to the provisions of German stock corporation law. This provides for a dual management system. In this model, the Management Board is responsible for managing the company, while the Supervisory Board monitors and advises on its activities. Both bodies act independently of each other, but work closely together to ensure effective and responsible corporate governance. The Management Board informs the Supervisory Board promptly, comprehensively and regularly about the company’s development. As a supervisory body, the Supervisory Board ensures a continuous exchange with the Management Board and discusses strategic, planning and business issues at its meetings, either alone or together with the Management Board. These include, in particular, strategy, corporate planning, business development, compliance, risk management and the risk situation. Sustainability-related aspects are also part of these consultations. They include the market and competitive situation, developments in energy and commodity prices as well as regulatory requirements that are important for the long-term success of the company. The Management Board of Nabaltec AG consists of three members: ◆ Johannes Heckmann, Chief Executive Officer (on the Management Board since 2006, Chief Executive Officer since 2017) ◆ Günther Spitzer, Chief Financial Officer (member of the Management Board since 2017) ◆ Dr. Alexander Risch, Chief Operating Officer (member of the Executive Board since 2021) Johannes Heckmann initially joined Nabaltec as Managing Director in 1995. In 2006, with the founding of Nabaltec AG and its IPO, he was appointed to the Management Board. He has been the CEO of Nabaltec AG since 1 January 2017. In this role, Johannes Heckmann is responsible in particular for strategic corporate planning, cor- porate governance, technical services, quality, environmental and energy manage- ment, occupational safety and environmental protection as well as plant and process development. His area of responsibility also includes the topic of sustainability, which is managed operationally by Dr. Karl-Heinz Spriestersbach as ESG Manager. N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

RTUNI- G O V E R N A N C E S T R U C T U R E A N D M A N A G E M E N T O F R I S K S A N D O P P O R T U N I T I E S 13 As Chief Financial Officer, Günther Spitzer is responsible for Finance/Controlling, Commercial Services and Information Technology. As Chief Operating Officer, Dr. Alexander Risch is responsible for the areas of development and application technology, production and sales. The Supervisory Board of Nabaltec AG consists of three members: ◆ Gerhard Witzany, Chairman of the Supervisory Board (Chairman of the Supervisory Board since 2017) ◆ Dr. Dieter J. Braun, Deputy Chairman of the Supervisory Board (Supervisory Board member since 2006) ◆ Dirk A. Müller, Member of the Supervisory Board (Supervisory Board member since 2024) Diversity is an integral part of responsible corporate governance and an important factor for Nabaltec’s sustainable success. There are currently no women on the management and supervisory bodies. Suitable female candidates should be given appropriate consideration for future appointments. Further information on our corporate policy can be found in the Governance chapter. Risk and opportunity management Information to the administrative, management and supervisory bodies on signiﬁcant impacts, risks and opportunities Our risk and opportunity management pursues the goal of taking risks in a conscious and calculated manner, safeguarding the company and making targeted use of stra- tegic opportunities. It is divided into clearly defined tasks and areas of responsibility: ◆ The Management Board bears overall responsibility for risk and opportunity management. It ensures that relevant risks and opportunities are systematically identified, assessed and managed. ◆ Controlling is responsible for the management, implementation and further devel- opment of the system. It regularly prepares objective reports and decision papers on behalf of the Management Board. ◆ The Supervisory Board monitors the effectiveness of the risk and opportunity management system. It ensures appropriateness and effectiveness. All relevant areas of the company are systematically involved in the strategy development and implementation process. Risks arising from regulatory, competition law or environmental requirements are proactively analyzed and integrated into decision-making processes by internal experts from the areas of quality assurance and sustainability, regulatory affairs, environmental protection/work safety and patents. Further information on our risk management can be found in our annual report 2024 in the management report under Risks and opportunities report. S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

14 M A T E R I A L I T Y A N A L Y S I S MATERIALITY ANALYSIS At Nabaltec, the materiality analysis has already been used several times as a tool for determining and prioritizing key sustainability issues. In 2024, further development was carried out in line with the double materiality analysis in order to create a central decision-making basis for integration into risk management. Objective of the double materiality analysis The materiality analysis forms the fundamental decision-making basis for the inte- gration of sustainability aspects into our existing opportunity and risk management system. It systematically identifies and evaluates the sustainability issues that are relevant to Nabaltec and its stakeholders. The process includes a comprehensive materiality analysis, which will be carried out every three years in future, supple- mented by an annual review in a simplified procedure. In the reporting year, we carried out a full double materiality analysis for the first time, following the requirements of the ESRS and the Implementation Guidance (EFRAG IG 1). The double materiality analysis was carried out Group-wide on the basis of the consolidated group for financial reporting. For the current sustainability report, the focus is on the main site in Schwandorf, as this is where the key ESG issues and their impact are most pronounced. Due to their size, the other locations currently have only limited relevance for the overall ESG assessment. An expansion of sustainability reporting at Group level will be examined as part of further strategic development and implemented depending on its relevance. Further information on our consolidated group can be found in the notes to our annual report 2024 under Subsidiaries and consolidated companies. N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

M A T E R I A L I T Y A N A L Y S I S 15 A comprehensive analysis of the entire value chain was carried out to identify and assess impacts, risks and opportunities. This extended from the extraction of raw materials in the upstream value chain to the manufacture of Nabaltec products in the company’s own business operations and the end of the life cycle of the final products in the downstream value chain. Stakeholder involvement Nabaltec has been in regular and varied contact with a number of stakeholders, such as customers, associations, suppliers and research institutions, for many years in order to develop and offer customer-centric, innovative and reliable products. As part of the Double Materiality Assessment, we systematically reviewed the existing understanding of stakeholders and added additional groups that are either affected by Nabaltec’s business activities, have an influence on them or have been identified as relevant users of sustainability information. In preparation for the double materiality analysis, the following groups were invited to take part in an online survey in February 2023: ◆ Banks ◆ Authorities1 ◆ Investors ◆ Customers ◆ Suppliers ◆ Employees ◆ Agencies2 ◆ Certifier3 The stakeholder survey is also to be repeated every three years and expanded if necessary. Deviations from previous materiality approaches Our original materiality analysis was based on the 17 Sustainable Development Goals (SDGs) of the United Nations and followed a structured, evidence-based approach. To identify potentially material aspects, a comprehensive topic map was first developed, which took into account both industry criteria from the Sustainability Accounting Standards Board (SASB) as well as best practices from the chemical industry and findings from these. 1 District office and water management office 2 The “Agencies” stakeholder group comprises agencies operating worldwide that distribute products for Nabaltec in various constellations. Some of these act as sales representatives, others as customers. 3 TÜV SÜD Management Service GmbH S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

16 M A T E R I A L I T Y A N A L Y S I S Get more information about sustainability at Nabaltec This ensured a systematic and sector-specific derivation of a longlist of relevant sustainability topics. The final selection of the key topics was based on a multi- stage validation process that included the following elements: ◆ Findings from stakeholder workshops ◆ Results of the stakeholder survey ◆ Differentiated assessment of the potential impact In total, the following eight topics were previously identified as “very important”: ◆ Energy consumption, now part of the Climate topic area ◆ CO2 emissions (Scope 1-3) ◆ Use of renewable energies ◆ Compatibility of career and family ◆ Long-term economic success ◆ Responsibility along the supply chain ◆ Sustainable procurement ◆ Innovation and development These topics remain central even after carrying out the double materiality analysis, but are now considered even more systematically in terms of impacts, risks and opportunities (IRO) and translated into strategic ESG objectives. Identiﬁcation of impacts, risks and opportunities in the reporting year All topics and sub-topics from ESRS 1, AR 16 (version 2022) were reviewed to determine the impacts, risks and opportunities. Evaluation of impacts The following criteria formed the systematic basis for assessing the impact: IRO category Evaluation criteria Impact – Negative – Current Impact, scope, remediability Impact – Negative – Potential Impact, scope, remediability, probability Impact – Positive – Current Impact, scope Impact – Positive – Potential Impact, scope, probability Risks and opportunities Financial impact, probability N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

M A T E R I A L I T Y A N A L Y S I S 17 Scales used for the assessment of impact strength: Extent 0 – None 2 – Very low 4 – Low 6 – Medium 8 – High 10 – Very high Range (geographical) Range (data subjects) Immutability (removal costs) 0 – None 2 – Location 4 – Local 6 – Regional 8 – Supraregional 10 – Global 0 – None 2 – 1,000 4 – 25,000 6 – 100,000 8 – 1,000,000 10 – > 1,000,000 0 – None 2 – Very low 4 – Low 6 – Medium 8 – High 10 – Very high For actual negative impacts, materiality is based on the severity of the impact, while for potential negative impacts it is based on the severity and likelihood of the impact. The severity is determined on the basis of the following factors: ◆ Extent ◆ Range ◆ Immutability In the event of a potentially negative impact on human rights, the severity of the impact takes precedence over its likelihood. For positive impacts, materiality is based on: ◆ the extent and scope of the impact in the case of actual impacts; and ◆ the extent, scope and likelihood of the impact in the case of potential impacts. Assessment of risks and opportunities Risks and opportunities were assessed using the following criteria: Probability 0 – None 2 – Very low 4 – Low 6 – Medium 8 – High 10 – Very high Financial implications 0 – None 2 – Insignificant 4 – Small 6 – Medium 8 – Large 10 – Serious The financial materiality of risks and opportunities was assessed based on the extent of the potential financial impact and the probability of occurrence. The assessment of the identified impacts, risks and opportunities therefore followed the requirements of ESRS 1 (version 2022) and the recommendations of the EFRAG IG 1 materiality analysis implementation guide. S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

18 M A T E R I A L I T Y A N A L Y S I S Materiality thresholds Impacts, risks and opportunities were classified as material if their assessments exceeded the previously defined materiality thresholds: IRO category Materiality threshold Impact – Negative – Current Impact – Negative – Potential Impact – Positive – Current Impact – Positive – Potential Risks and opportunities (financial only) ≥ 26 ≥ 36 ≥ 16 ≥ 26 ≥ 18 Signiﬁcant impacts, risks and opportunities for Nabaltec As a result, there are four key areas for Nabaltec: ◆ Climate change ◆ Biodiversity and ecosystems ◆ Own workforce ◆ Business management Within these material topics, a total of eight significant impacts were identified that are directly caused by Nabaltec’s business model and strategic orientation and are not primarily attributable to external factors. In addition, nine financial risks and four economic opportunities were classified as material. N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

M A T E R I A L I T Y A N A L Y S I S 19 ESRS topic | sub-topic | sub-sub-topic Classiﬁcation Description E1 Climate change | Adaptation to climate change E1 Climate change | Climate protection E1 Climate change | Energy Impact Risk Impact Impact Risk Impact Risk Impact Risk Opportunity Risk Opportunity Use of fossil fuels Production of environmentally friendly products New process technologies to reduce CO2 emissions CO2 emissions (Scope 1–3) Energy consumption Use of renewable energies E4 Biodiversity and ecosystems | Direct causes of biodiversity loss | Environmental pollution S1 Own workforce | Working conditions | Work-life balance G1 Corporate governance | Management of relationships with suppliers, including payment practices G1 Corporate management | Nabaltec-specific topics Impact Production of environmentally friendly products Impact Risk Risk Opportunity Impact Risk Risk Opportunity Work-life balance Responsibility along the supply chain Sustainable procurement Innovation and development Dealing with the key issues By identifying key sustainability issues and the associated impact on people and the environment, financial risks and economic opportunities, we lay the strategic foundation for Nabaltec’s global sustainability activities. These also form the basis for the development of targeted sustainability management, which enables the company to meet regulatory requirements with foresight, proactively manage risks and at the same time make targeted use of economic opportunities. The insights gained flow directly into Nabaltec’s strategic orientation and support the definition of key goals for sustainable corporate development. Sustainability aspects are thus systematically integrated into core processes, innovation strategies and risk management. S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

20 M A T E R I A L I T Y A N A L Y S I S Declaration of non-essentiality As part of the double materiality analysis, the areas of resource use, environmental pollution and water and marine resources were classified as not material at the reporting date. This assessment is largely based on our value creation, including a limited number of qualified suppliers with documented environmental and sustainability requirements. Potential negative impacts that may arise in connection with mining activities or the disposal of red mud are minimized through compliance with internationally recognized environmental management systems - in particular ISO 14001 - as well as comprehensive environmental protection requirements, industry-specific certifica- tions and specific technical measures. These classifications are time-based; we monitor the issues on an ongoing basis and adjust the assessment as new findings emerge. Further information on our management systems can be found in the chapter Sustainability guidelines and certifications. The storage and disposal of red mud at the suppliers is carried out under controlled conditions. Dry storage, filtration and sealing of landfills ensure that groundwater is not contaminated. In addition, our partners take renaturation measures during bauxite mining, including the reforestation of rainforest areas, for example, in order to stabilize the affected ecosystems in the long term. Further information on criteria for our supply chain can be found in the Biodiversity and ecosystems chapter and in the Supply chain and procurement management chapter. N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

N A B A L T E C ’ S S U S T A I N A B I L I T Y G O A L S 21 NABALTEC’S SUSTAINABILITY GOALS At Nabaltec, the Head of Quality Assurance and Sustainability is responsible for implementing and achieving the measures and targets described in this chapter. Dr. Karl-Heinz Spriestersbach held this position during the reporting period. Sustainability goals and strategic anchoring The systematic identification of key issues, significant impacts, financial risks and economic opportunities ensures that sustainability is not viewed in isolation, but is anchored as an integral part of corporate management and the value chain. The derivation of specific financial risks and economic opportunities creates a reliable basis for decision-making in order to efficiently fulfill regulatory requirements, tap into market potential and strengthen the company’s resilience. The eight strategic sustainability goals enable focused management of the relevant topics by defining specific measures to minimize risk, promote innovation and create long-term value. The targeted link to the 17 SDGs also ensures that the sustainability strategy is relevant to society as a whole. This not only promotes transparency and comparability in reporting, but also alignment with international best practices and future market requirements. S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

22 N A B A L T E C ’ S S U S T A I N A B I L I T Y G O A L S VSME B2–27 Overview of the strategic sustainability goals (VSME B2-27) Climate change (ESRS E1) In order to live up to our responsibility in climate protection, we and our partners are focusing on measures to reduce CO2 emissions, lower energy consumption and expand the use of renewable energies. These approaches help to improve our environmental footprint, strengthen our long-term competitiveness and reduce our operating costs SDG 7: Aﬀordable and clean energy Relevant sub-goals: ◆ 7.2 Increasing the share of renewable energies in the global energy mix ◆ 7.3 Doubling the global increase in energy efficiency SDG 9: Industry, innovation and infrastructure Relevant sub-goals: ◆ 9.4 Improvement of sustainable infrastructure and modernization of industries to increase resource efficiency and the use of environmentally friendly technologies SDG 12: Sustainable consumption and production Relevant sub-goals: ◆ 12.2 Sustainable management and efficient use of natural resources ◆ 12.6 Promotion of sustainability reporting at companies SDG 13: Climate protection measures Relevant sub-goals: ◆ 13.1 Strengthening resilience to climate-related risks ◆ 13.2 Integration of climate protection measures into corporate strategies Biodiversity and Ecosystems (ESRS E4) We consider the ecological impact along our value chain and work to protect biodiversity. This is achieved in particular through sustainable procurement practices, resource-conserving production processes, responsible environmental management and the manufacture of environmentally friendly products that do not contain any hazardous substances. SDG 12: Sustainable consumption and production Relevant sub-goals: ◆ 12.2 Sustainable management and efficient use of natural resources ◆ 12.4 Environmentally sound handling of chemicals and waste ◆ 12.6 Promotion of sustainability reporting at companies Own workforce (ESRS S1) In order to find and retain talent, we focus on measures to increase employee satisfaction by creating an attractive working environment, offering development opportunities and promoting an open corporate culture. We pay particular attention to creating the necessary framework conditions for our employees so that they can balance their professional and family commitments. SDG 3: Health and well-being Relevant sub-goals: ◆ 3.4 Promoting mental health and well-being in the workplace ◆ 3.8 Access to high-quality healthcare services and protective measures for all employees SDG 8: Decent work and economic growth Relevant sub-goals: ◆ 8.5 Full and productive employment and decent work for all ◆ 8.8 Protecting workers’ rights and promoting safe working environments SDG 10: Fewer inequalities Relevant sub-goals: ◆ 10.2 Social, economic and political inclusion for all ◆ 10.3 Ensuring equal opportunities and reducing discrimination N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

N A B A L T E C ’ S S U S T A I N A B I L I T Y G O A L S 23 (VSME B2-27) Corporate management (ESRS G1) Responsible corporate governance is a matter of course for us. We focus on securing long-term economic success, responsible supply chain management, sustainable procurement and the integration of sustainability aspects into innovation and development. SDG 8: Decent work and economic growth Relevant sub-goals: ◆ 8.4 Increase resource efficiency and promote sustainable production methods ◆ 8.5 Full and productive employment and fair working conditions for all ◆ 8.7 Measures against child and forced labor in the supply chain ◆ 8.8 Protection of employee rights and safe working conditions SDG 9: Industry, innovation and infrastructure Relevant sub-goals: ◆ 9.2 Promotion of sustainable industrialization ◆ 9.4 Sustainable modernization of industries through resource efficiency ◆ 9.5 Strengthening research and innovation for sustainable development SDG 12: Sustainable consumption and production Relevant sub-goals: ◆ 12.6 Promotion of sustainability reporting by companies ◆ 12.7 Promotion of sustainable public and private procurement procedures S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

24 S U S T A I N A B I L I T Y G U I D E L I N E S A N D C E R T I F I C A T I O N S SUSTAINABILITY GUIDELINES AND CERTIFICATIONS Binding standards for responsible action Company guidelines VSME B2–26b, B2–27, C2–48, C6–61a-c (VSME B2–26b, B2–27, C2–48, C6–61a-c) Effective sustainability management requires clear guidelines that firmly anchor environmental, social and corporate responsibility in business processes. Certificates, global initiatives and ESG ratings monitor and document our performance. Together they create commitment, transparency and reliability. Policy Contents Scope Code of Conduct (25.05.2018) Code of Ethics (08.01.2025) Policy on sustainable and responsible procurement of goods and services (08.01.2025) Whistleblowing Directive Values, principles and behaviors, principles on working conditions, environmental responsibility and occupational health and safety Standards and expectations in the following six areas to which Nabaltec suppliers must adhere: Ethical standards, labor and human rights, health and safety, environmental responsibility, procurement practices, IT and data protection Principles of sustainable procurement and management of cooperation with suppliers in procurement Description of reporting channels and Nabaltec’s whistleblower system Person responsible Frame of reference Management Board UN, ILO and OECD frameworks Availability Company website Own business activities, direct suppliers and business partners Direct suppliers Purchasing UNGC, ILO, EU Battery Regulation Not publicly available Purchasing UNGC, ILO Not publicly available Ratisbona Compliance GmbH Whistleblower Protection Act (HinSchG) Company website Own busi- ness activities, contractors, suppliers and their subcontractors and stakeholders All employees (including temporary work- ers), customers, suppliers and all external stake- holders N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

S U S T A I N A B I L I T Y G U I D E L I N E S A N D C E R T I F I C A T I O N S 25 To supplement our existing guidelines, we have developed a basic sustainability policy, which was published in September 2025 and serves as a strategic framework for our sustainability commitment. It sets out clear principles for ecological, social and ethical standards and supports the long-term integration of sustainability into our business processes. As a rule, the company management is responsible for compliance with our guide- lines. Violations of the guidelines can be reported. Various reporting channels are available to all our stakeholders, including a comprehensive whistleblowing system. Further information on our reporting channels and our whistleblowing system can be found in the Governance chapter. Certiﬁcates (VSME B1–25) Nabaltec works to high standards, which are laid down in an integrated, certified management system. Compliance with the requirements is regularly checked as part of audits by accredited companies. In addition, our products are certified in accordance with the following national and international standards and guidelines. VSME B1–25 Certificates for product groups are available for download on our website: www.nabaltec.de/en/company/sustainability/certificates S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

26 S U S T A I N A B I L I T Y G U I D E L I N E S A N D C E R T I F I C A T I O N S Certiﬁcate Brief description ISO 9001: Quality management system Certifies the implementation and continuous improvement of an efficient quality management system that ensures that products and services meet customer and regulatory requirements. ISO 14001: Environmental management system Certifies systematic environmental management that takes account of environmental aspects along the value chain and strives to continuously reduce environmental impact. ISO 45001: Occupational health and safety management system ISO 50001: Energy management system REACH Regulation Confirms the implementation of an occupational health and safety management system that ensures safe working conditions, minimizes risks and protects the health of employees. Is an international standard for energy management systems and offers a systematic approach to continuously improving energy efficiency, reducing energy consumption and lowering energy costs. Ensures that chemical substances are registered, evaluated and approved within the EU in order to minimize risks to humans and the environment. SVHC (Substances of Very High Concern)1 Confirmation that Nabaltec products do not contain any substances of very high concern in accordance with the REACH Regulation (Annex XIV on substances subject to authorization and Annex XVII on restrictions for certain substances, mixtures and articles). RoHS (Restriction of Hazardous Substances)1 Regulates and restricts the use of hazardous substances in electrical and electronic equipment to reduce environmental and health risks. Confirmation that the products comply with RoHS Directives 2011/65/EU and 2015/863/EU. GADSL (Global Automotive Declarable Substance List)1 GHS (Globally Harmonized System of Classiﬁcation and Labelling of Chemicals) Food safety declarations Industry-wide used, non-legally required list of declarations- or banned substances for the automo- tive industry to reduce environmental and health risks in the supply chain. Nabaltec confirms with the certificate that its products do not contain any substances on the GADSL list. An international classification and labeling system for chemicals that establishes uniform global safety standards for their handling and transport. The food safety of Nabaltec products is certified by ISEGA Forschungs- und Untersuchungs- gesellschaft mbH. Conﬂict Minerals Statement 1 Confirms that Nabaltec products are free of the materials known as “Conflict Minerals”: gold, tantalum, tungsten, tin, columbite and wolframite. Recycling certiﬁcate 1 Self-certification Certified that Nabaltec has fully complied with all the requirements of the Packaging Act, among other things. Global initiatives In 2024, Nabaltec joined the UN Global Compact (UNGC) initiative. By joining the UNGC, we voluntarily undertake to respect and actively promote the ten fundamental principles in the areas of human rights, labor standards, environmental protection and anti-corruption and to integrate them permanently into our business practices and corporate culture. From 2025, Nabaltec will also report regularly on the status of implementation of these principles as part of the Communication on Progress (CoP). Joining stands for a clear commitment to responsible and sustainable business practices and underlines the company’s alignment with internationally recognized standards, in particular the goals of the 2030 Agenda and the SDGs. Further information on Nabaltec’s specific contribution to the SDGs as part of the 2030 Agenda can be found in the Nabaltec sustainability goals section. N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

S U S T A I N A B I L I T Y G U I D E L I N E S A N D C E R T I F I C A T I O N S 27 Nabaltec is also a signatory to the Responsible Care Global Charter. The Respon- sible Care Global Charter is a globally recognized voluntary commitment of the chemical industry, initiated by the International Council of Chemical Associations (ICCA). It forms the international framework for the “Responsible Care” program, which has existed since the 1980s and is aimed at the continuous improvement of health, safety and environmental performance (HSE) in the chemical industry. By joining the Responsible Care Global Charter, Nabaltec expresses that the com- pany takes responsibility for the environment, health and safety beyond the legal requirements. The signing documents our commitment to responsible corporate governance, the continuous development of our HSE services and transparency towards stakeholders. At the same time, it underscores Nabaltec’s commitment to making an active contribution to the sustainable development of the chemical industry and anchoring international standards and principles in its own actions. To this end, Nabaltec is active in numerous chemical industry associations and working groups in Germany and abroad. Further information on Nabaltec’s membership in associations and working groups can be found in the Governance section. ESG ratings (VSME B1–25) Nabaltec’s commitment to sustainability was awarded silver status by the ESG rating agency EcoVadis in 2025. With its rating, Nabaltec is among the top 15% of all companies evaluated by EcoVadis. VSME B1–25 S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

28 E N V I R O N M E N T ENVIRONMENT The measures and targets described in this chapter are implemented and achieved by the relevant departments. The Head of Division Quality Assurance and Sustainability assumes a supervisory and steering role in this process to ensure compliance with the specifications and support the achievement of targets. Dr. Karl-Heinz Spriestersbach held this position during the reporting period. Corporate responsibility and key areas of action As a company in the chemical industry, Nabaltec bears a high level of responsibility for environmental and climate protection. Our products are created in a resource-intensive process that has a particularly climate-relevant impact. At the same time, our products make a significant contribution to improving the ecological balance by replacing environmentally harmful substances or supporting energy-efficient processes. Nabaltec counters the environmental impacts associated with bauxite mining through a sustainable procurement strategy that favors certified suppliers and demands high environmental and social standards. Our environmental strategy focuses on the following key areas of action, which contribute significantly to ecological sustainability and the long-term conservation of resources: ◆ Adaptation to climate change and climate protection, particularly with regard to energy efficiency, renewable energies and CO2 emissions (Scope 1-3). ◆ Biodiversity and ecosystems, in particular with regard to the protection of natural ecosystems through sustainable sourcing and the promotion of biodiversity through the production of environmentally friendly, non-toxic products that do not release harmful chemicals. Nabaltec systematically manages its environmental objectives through a certified environmental management system in accordance with ISO 14001. As an internationally recognized standard for environmental management systems, ISO 14001 helps companies to systematically record environmental impacts, define and implement environmental objectives, comply with legal and other requirements and continuously improve processes. The basis is the PDCA cycle (Plan-Do-Check- Act). This system is regularly developed and audited at Nabaltec. This ensures that environmental aspects are integrated into all relevant company processes, risks and opportunities are identified and measures are implemented to continuously improve environmental performance. Compliance with regulatory requirements and internal environmental standards is ensured through regular reviews and external audits. N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

E N V I R O N M E N T 29 Further information on our guidelines, standards and management systems can be found in the Sustainability guidelines and certifications section. Climate change and climate protection: Signiﬁcant impacts, risks and opportunities (VSME C4–57a,c, C4–58) The double materiality analysis revealed significant positive and negative impacts on climate change for Nabaltec that result directly from its own business activities and production. Furthermore, five financial risks and two economic opportunities were classified as material in this area. No significant impacts, risks or opportunities arose in the upstream and downstream stages of value creation: VSME C4–57a,c, C4–58 ESRS subtopic Category Description Time horizon Climate Negative impact Positive impact Positive impact Financial risk Financial risk Climate protection Negative impact Increase in CO2 emissions due to the use of fossil fuels. Production of environmentally friendly products, e.g. for customers in the fields of e-mobility and energy transformation. Current Current The use of new technologies, such as energy-efficient machines and sustainable production methods, helps to reduce greenhouse gas emissions and lowers the product carbon footprint (PCF). Rising costs, e.g. due to environmental regulations or taxes on CO2 emissions. Due to increasingly strict sustainability regulations, the company is obliged to invest in new technologies. There is a risk that the associated additional costs cannot be passed on in full via the sales prices. Potential – long-term Potential – medium term Potential – long-term The production of specialty oxides currently requires a high level of energy input, which continues to rely on fossil fuels due to the lack of technically and economically viable alternatives. This leads to high CO2 emissions, the reduction of which is currently only possible to a limited extent. Current Financial risk Insufficient availability of CO2-neutral energy sources leads to significantly reduced production volumes and rising energy costs (hydrogen, synthetic fuels, renewable electricity). Potential – long-term Energy Negative impact High consumption of fossil fuels to cover energy-intensive manufacturing processes. Current Financial risk Financial risk Limited availability of sufficient quantities of energy at competitive prices. Potential – long-term High investment costs for CO2-neutral energy sources with limited amortization potential on the market. Potential – medium term Economic opportunity Investments in energy efficiency and renewable energies can reduce operating costs, particularly through reduced energy consumption and lower CO2 emission costs. Potential – medium term Economic opportunity The use of renewable energies can reduce energy and production Potential – long-term costs in the long term. Reduced PCF can lead to significantly increased sales. S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

30 E N V I R O N M E N T Strategic goals and measures VSME B2– 26a,c,d (VSME B2–26a,c,d) Resilience and climate-neutral operations are key objectives of Nabaltec’s climate strategy. The gradual conversion of production to climate- neutral processes serves to reduce the ecological footprint, optimize operational cost structures and adapt to changing market and regulatory requirements in the long term. CO2 emissions Nabaltec is aligning its targets and measures with the global goal of achieving net-zero greenhouse gas emissions by 2045 at the latest by fully offsetting human emissions with natural sinks. For us, climate neutrality is a key social goal that we want to pursue in future in line with the findings of the Intergovernmental Panel on Climate Change (IPCC) and the requirements of the United Nations Framework Convention on Climate Change (UNFCCC). By 2045 net-zero emission – the ambitious target at Nabaltec Our resilience analysis carried out as part of the 2024 materiality analysis revealed that CO2 emissions from an energy-intensive production process that currently still requires fossil fuels represent one of the greatest challenges for Nabaltec’s climate strategy. CO2 emissions have a global impact and influence not only our environmental footprint, but also our market position. In order to reduce emissions and gradually minimize dependence on fossil fuels, comprehensive process and technology adaptations are required, which are associated with high costs and considerable technical effort. Many alternative technologies are currently only available to a limited extent. However, we will pilot available solutions and scale them up as the market matures. A better CO2 balance offers clear advantages for Nabaltec overall: ◆ A better PCF balance (Product Carbon Footprint) strengthens competitiveness, as customers benefit from more sustainable products and can achieve their own sustainability goals more easily. ◆ Securing locations and jobs through long-term competitiveness and compliance with regulatory requirements. ◆ Value retention and taxonomy relevance in order to gain access to sustainability-related financing options if required. ◆ Lower local emissions, which contribute to an improved environmental balance for the Schwandorf site. We have various approaches and measures at our disposal, which we are gradually evaluating and implementing in a targeted manner to ensure the long-term decarbonization of our business activities. In particular, this includes increasing energy efficiency, switching to renewable energies, using low-emission raw materials, optimizing production processes and reducing and substituting fossil fuels. N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

E N V I R O N M E N T 31 In addition, circular economy concepts, such as the recycling of materials and the closing of material cycles, are seen as a lever for reducing emissions. Among other things, Nabaltec relies on packaging recycling. Within the framework of recyclability, material is reintegrated into the production process. The use of innovative technologies to optimize processes and increased cooperation with suppliers to reduce Scope 3 emissions are also key measures that are continuously reviewed for their technical and economic feasibility. The 2024 analysis shows exposure to regulatory CO2 price mechanisms and potential allocation limits. Depending on the legal situation and allocation, financial consequences may include compensation or penalty payments. At the time of reporting, the direct impacts of volume losses and sanctions are limited; there is no all-clear. An internal CO2 pricing system has not yet been established throughout the Group. Its introduction is being examined in order to strengthen the basis for decision-making; until then, we use defined threshold values, qualitative assessments and external price assumptions with regular reviews. (VSME B2–26a and B2–26c–d, VSME C2–48) In order to consistently pursue the climate targets and reduce emissions along the entire value chain in the future, Nabaltec will initially prioritize the following measures: VSME B2–26a and B2–26c–d, VSME C2–48 In the upstream processes: ◆ Raw material suppliers are required to determine their own Scope 1 and Scope 2 emissions in order to create a more precise database that supports Nabaltec in formulating its own climate targets ◆ Recording and evaluation of the GHG emissions associated with the procurement of raw materials and packaging ◆ Optimization of transport routes and increased use of climate-friendly logistics solutions (e.g. rail transport, low-emission means of transport) In our own business activities: ◆ Optimization of existing production processes in our own operations to reduce greenhouse gas emissions ◆ Introduction of new process technologies to reduce greenhouse gas emissions ◆ Increasing energy efficiency and the proportion of renewable energy sources ◆ Increasing recycling rates See chapter Governance ◆ Reduction in the consumption of fossil fuels See chapter Energy consumption and energy mix ◆ Use of packaging with recycled content See chapter Governance S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

32 E N V I R O N M E N T VSME B3–30a, B3–31, C2–50–53, C3–54a-c,e (VSME B3–30a, B3–31, C2–50–53, C3–54a–c,e) We have initially set ourselves the goal of successively reducing our Scope 1 and Scope 2 emissions by 2035. The calculation of CO2 emissions in this report is based on the standards of the Greenhouse Gas (GHG) Protocol and ISO 14064-1. 2022 22,288 7,316 0 2023 22,530 16,260 0 2024 26,791 7,390 0 117,746 94,083 93,273 147,351 132,873 127,454 0.114 0.037 0.127 0.092 0.152 0.042 0.194 Greenhouse gas emissions of Nabaltec AG Gross Scope 1 GHG in t CO2eq Market-related gross Scope 2 GHG in t CO2eq Site-related gross Scope 2 GHG in t CO2eq Gross Scope 3 GHG1 in t CO2eq Total gross Scope 1, 2 and 3 GHG in t CO2eq Scope 1 greenhouse gas intensity in kg CO2eq per EUR turnover Scope 2 greenhouse gas intensity in kg CO2eq per EUR turnover Total Scope 1 + Scope 2 GHG intensity in kg CO2eq per EUR turnover 0.152 0.219 1 The following 15 Scope 3 categories according to the GHG Protocol are included in the measurement of Scope 3 emissions: 1. Purchased goods and services: Emissions from the production and transportation of purchased goods and services (only raw material procurement due to the materiality threshold). 2. Transportation and distribution (purchased): Emissions from the transportation and distribution of purchased goods. Nabaltec is not currently active in the regulated sectors of the EU Emissions Trading Scheme (EU ETS). This means that the percentage of Scope 1 emissions covered by a regulated emissions trading system was 0%. Nabaltec’s Scope 3 emissions were calculated using the cradle-to-gate approach. Nabaltec carried out the materiality analysis for the 15 Scope 3 categories specified in the GHG Protocol and identified those that can already be measured at the present time. These are the production-related categories, while other categories, such as emissions from employee commuting, have yet to be recorded. Goals: ◆ Reduction of Scope 1 emissions by 10% by 2035 (basis: Average value for the years 2022 – 2024). ◆ Reduction of Scope 2 emissions by 30% by 2035 (basis: Average value for the years 2022 – 2024). Specifically planned measures to achieve the objectives: ◆ Conversion of at least three units for drying processes to electric or thermal heating coils. ◆ Optimization of heat exchanger unit. N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

E N V I R O N M E N T 33 Energy consumption and energy mix (VSME B3–29) Nabaltec uses an energy management system (EnMS) in accordance with ISO 50001, which ensures the systematic recording, analysis and optimization of energy consumption. All relevant employees are involved in the implementation and realization of the system. This ensures a continuous improvement in energy efficiency. The efficiency principle applies to investments: New purchases are assessed on the basis of life cycle/total cost of ownership, including energy and CO2 costs. Energy-efficient variants are preferred. We make targeted use of new technologies in production, processing and application in order to increase specific energy efficiency. VSME B3–29 Energy consumption for own business operations Total energy consumption in MWh Energy consumption by source Renewable sources in MWh Share as a % Fossil sources in MWh Share as a % Nuclear sources in MWh Share as a % 2022 2023 2024 490,556 433,877 449,211 354,779 72.3 130,289 26.6 5,487 1.1 299,962 306,095 69.1 128,597 29.6 5,318 1.2 68.1 142,078 31.6 1,038 0.2 Energy intensity in kWh/EUR turnover 2,513 2,455 2,547 Energy mix Electricity in MWh Of which renewable Of which non-renewable Of which nuclear Steam in MWh Of which renewable Of which non-renewable Gas in MWh Heating oil in MWh Diesel in MWh 2022 70,350 44,883 19,979 5,487 309,896 309,896 0 2023 61,126 38,815 16,993 5,318 261,147 261,147 0 2024 61,073 50,813 9,222 1,038 255,282 255,282 0 108,528 110,101 131,515 856 926 667 836 513 828 In financial year 2024, Nabaltec did not generate any renewable energy itself, but covered its entire demand with external supplies. A significant proportion comes from the cooperation with the Schwandorf waste recycling association (ZMS). The waste-to-energy plant converts non-recyclable residual waste into steam and electricity using combined heat and power (CHP). The collaboration ensures a reliable supply at the Schwandorf headquarters and reduces specific CO2 emissions compared to conventional alternatives. S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

34 E N V I R O N M E N T At the time of reporting, the CO2 reduction effect resulting from the cooperation with the ZMS cannot be reliably quantified: In Germany, the classification of waste incineration as a renewable energy source is interpreted differently depending on the legislation. For example, while the Renewable Energy Sources Act (EEG) considers around 50% of electricity from waste incineration plants to be renew- able - based on the assumption that around half of the waste is of biogenic origin –, the Building Energy Act (GEG) assesses the heat generated during incineration differently. According to the GEG, heat from waste incineration plants is classified as unavoidable waste heat that would otherwise remain unused. Therefore, regard- less of its fossil or biogenic origin, it is counted 100% as renewable energy if it is fed into heating networks or used to heat buildings. Environmental associations, on the other hand, are critical of the classification, as waste incineration consumes resources, causes CO2 emissions and leaves behind pollutant residues. Our LCA (Life Cycle Assessment) assessments may deviate from these legal and civil society classifications depending on the data status, system boundaries and allocation; the methodology is currently being harmonized. Overall, however, it can be stated that the total energy requirement in our own business operations has fallen compared to 2022. However, due to the structurally energy-intensive business model, the demand for renewable energy sources remains high; it is key to reducing CO2 emissions in the long term and ensuring a sustainable energy supply. Supra-regional procurement and the increasing availability of renewable energies are already opening up opportunities for conversion. While the procurement of electricity from renewable sources is relatively straightforward, the substitution of fossil fuels - especially in thermal processes - is considerably more complex. It requires higher investments and is made more difficult by the limited availability of suitable alternatives. Nevertheless, the increased use of renewable electricity offers good control options and feasibility, as corresponding offers are available on the market. The switch to renewable fuels, on the other hand, is subject to technical and quantitative restrictions, which is why a gradual transformation is necessary. Measures in the area of energy eﬃciency and conversion to renewable energy sources (VSME C3–54e) Nabaltec is pursuing the goal of reducing overall energy consumption at its main site in Schwandorf in the long term with prioritized measures and clear responsibilities. This takes place as part of a structured company-wide approach that involves all areas of the company. To achieve these goals, we make targeted investments in energy-efficient technologies and promote the use of best practices for the sustainable use of resources. A central component of this strategy is the modernization of existing systems and appliances by gradually replacing outdated systems with energy-efficient models. At the same time, the use of energy-saving technical solutions is being actively promoted in order to further minimize the ecological footprint and ensure long-term competitiveness. VSME C3–54e N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

E N V I R O N M E N T 35 By systematically increasing the share of renewable energy in Nabaltec’s overall energy mix, we aim to minimize environmental impact and promote sustainable development. To this end, we are piloting and scaling suitable options for electricity and process heat - where technically and economically feasible. Specifically planned measures up to 2030: ◆ Reduction of steam consumption through technical optimization ◆ Conclusion of supply contracts for the purchase of CO2-neutral electricity ◆ Examination of the integration of a photovoltaic system Targets and key figures: ◆ The specific energy consumption at our main location in Schwandorf [MWh/EUR turnover] is to be reduced by 15% by 2030 compared to the average value for the years 2022 – 2024. ◆ Use of 100% CO2-neutral electricity at our main site in Schwandorf by 2030 S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

36 B I O D I V E R S I T Y A N D E C O S Y S T E M S BIODIVERSITY AND ECOSYSTEMS The measures and targets described in this chapter are implemented and achieved by the relevant departments. The Head of Division Quality Assurance and Sustainability assumes a supervisory and steering role in this process to ensure compliance with the specifications and support the achievement of targets. Dr. Karl-Heinz Spriestersbach held this position during the reporting period. Corporate responsibility and key areas of action We anchor the preservation and promotion of biodiversity in Nabaltec’s corporate strategy. As a company in the chemical industry, we have a special responsibility to minimize negative impacts on natural ecosystems and - where possible - make positive contributions. The following principles apply on this basis: 1. Protection and conscious use of resources ◆ We reduce our space requirements through compact construction methods and multiple use of existing areas. Interventions are avoided or minimized. Compensation/restoration measures are carried out according to officially approved concepts. ◆ Bauxite mining in our supply chain depends on the geological situation. We give preference to raw material suppliers who are committed to renaturation measures, such as the reforestation of rainforest areas. ◆ We use the valuable resource of water efficiently. We also use closed loops, reduce withdrawals where possible and use recirculation where technically feasible. This is monitored using key figures. ◆ We avoid or reduce waste through effective waste management with closed production cycles wherever possible and the recycling of chemicals. 2. Responsible supply chain and sustainable procurement ◆ For the procurement of raw materials and packaging materials, we prefer to work with suppliers who comply with environmental and social standards in accordance with international standards (e.g. ISO 14001, IRMA, RMI, ASI) - where relevant and verifiable. ◆ Our procurement management takes the protection of biodiversity and ecosystems into account as an evaluation-relevant criterion when selecting raw material suppliers. N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

B I O D I V E R S I T Y A N D E C O S Y S T E M S 37 3. Responsible production and emission avoidance ◆ We largely close material cycles in order to minimize or avoid the release of environmentally critical substances. For example, chemicals such as caustic soda, which are used to produce ultra-fine hydroxide, are processed and reused instead of being disposed of. ◆ Our products are REACH-compliant, free of hazardous substances and contain no conflict minerals, so they have no negative impact on biodiversity and ecosystems. 4. Integration of biodiversity aspects into the corporate strategy ◆ We regularly evaluate and develop our biodiversity measures, define measures, responsibilities and key figures and report transparently. Signiﬁcant impacts, risks and opportunities relating to biodiversity and ecosystems Thanks to our comprehensive activities in key sustainability areas, Nabaltec’s negative environmental impact is comparatively low. In addition, a positive environmental contribution was identified that goes beyond pure damage reduction: Depending on the application, our products can replace materials with a higher hazard potential, provided they are used in accordance with applicable regulations (e.g. REACH). The active avoidance of toxic emissions and pollutants helps to sustainably reduce air, water and soil pollution. This directly promotes biodiversity and reduces environmental pollution. ESRS subtopic Category Description Direct causes of biodiversity loss | Environmental pollution Positive impact Promoting biodiversity through the use of environmentally friendly, non-toxic products that do not release harmful chemicals. Time horizon Current Strategic goals and measures In the area of biodiversity, Nabaltec relies on the targeted further development of proven measures. Priority is given to approaches for avoiding and reducing environmental impacts and for the sustainable design of production processes, the effectiveness of which we base on monitoring and audit processes. No strategic change of direction is planned here at the time of reporting. Nabaltec systematically considers the interaction between biodiversity and other strategically relevant topics - in particular climate protection, sustainable supply chains and energy efficiency measures, taking into account renewable energy sources. The protection of natural ecosystems is closely linked to these issues. S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

38 B I O D I V E R S I T Y A N D E C O S Y S T E M S Land use VSME B5–33, B5–34a–b (VSME B5–33, B5–34a–b) At the main site in Schwandorf, the total area is 218,650 m², of which 173,569 m² is sealed. Nabaltec operates its sites exclusively in existing, designated industrial areas with low ecological stress. The areas used, managed or owned by us in or near areas with particularly sensitive biodiversity amount to 767 m². Likewise, 7,053 m² on or off the various operating areas of Nabaltec are designated as near-natural. Land use Land area in or near a biodiversity-sensitive area in m2 total area use in m2 total sealed area in m2 total semi-natural area on site in m2 total near-natural area outside the site in m2 Use of water 2022 767 218,650 173,569 2,880 4,173 2023 767 218,650 173,569 2,880 4,173 2024 767 218,650 173,569 2,880 4,173 VSME B6–35, B6–36 (VSME B6–35, B6–36) Nabaltec’s total water withdrawal in the reporting period amounted to 515,797 m³. No water was taken from water risk areas or areas with high water stress. Water consumption amounted to 324,585 m³. Water consumption is caused almost entirely by evaporation. The difference between water withdrawal and water consumption was fed back into the water system. Nabaltec’s production processes are geared towards creating largely closed water cycles and significantly reducing the amount of washing water required. Use of water Total water withdrawal in m³ Total water consumption in m³ Water recirculation in m³ Water use intensity in m³/EUR turnover 2022 644,340 404,452 239,880 0.0033 2023 512,489 358,062 154,427 0.0029 2024 515,797 324,585 191,212 0.0029 Waste management VSME B7–37, B7–38 (VSME B7–37, B7–38) As a chemical company, Nabaltec is aware of the relevance and necessity of careful waste management with a particular focus on the proper disposal of waste that is potentially harmful to people and the environment. Wherever possible, we use closed production cycles that allow us to avoid or reduce waste. For example, we prepare key chemicals for our production processes, such as caustic soda, for reuse instead of disposing of them as waste. N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

B I O D I V E R S I T Y A N D E C O S Y S T E M S 39 The sharp increase in the volume of waste in 2024 is primarily due to excavated soil as part of construction expansion projects. As we do not manufacture any plastic products or process them in our products, the amount of microplastics produced is 0 kg per year. Waste balance in tons Total amount of waste in tons Amount of waste – hazardous in tons Amount of waste – non-hazardous in t Amount of waste for recycling and reuse in t Amount of waste for recycling and reuse in % Environmental pollution 2022 5,104 3,540 1,564 4,465 87.5 2023 4,328 2,526 1,802 3,650 84.3 2024 9,851 2,625 7,226 9,538 96.8 (VSME B4–32) In chemical production, emissions cannot be completely avoided at the time of reporting. We consistently minimize them and report on them transparently. In accordance with the laws introduced and applicable in Germany under the EU Emissions Directive, Nabaltec follows the principle of avoiding and minimizing damage and is continuously working to further reduce its own emissions profile, including through the use of new technologies. VSME B4–32 When emitting pollutants into water at our main site in Schwandorf, Nabaltec pays strict attention to compliance with the legal requirements of Section 57 of the German Water Resources Act (WHG) and Annex 22 “Chemical Industry” of the German Wastewater Ordinance. Harmful substances used in production, such as caustic soda, are only used under the highest safety standards and are processed and recycled in internal recycling processes to minimize the risk of releases and negative environmental impacts. This approach ensures the responsible handling of hazardous substances and the protection of the environment and people. Further information on the certifications fulfilled by Nabaltec with regard to (non-)used harmful substances can be found in the chapter Sustainability guidelines and certifications. S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

40 B I O D I V E R S I T Y A N D E C O S Y S T E M S Pollutant emissions in tons Emissions to air in t Solids (dust) Nitrogen oxides Emissions to water in t Solids Phosphorus Aluminum (dissolved) Chemical oxygen demand 2022 2023 2024 3.1 87.5 3.6 0.08 0.12 7.2 2.4 70.8 3.5 0.04 0.06 4.2 2.9 78.3 3.9 0.05 0.07 5.0 N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

O W N W O R K F O R C E 41 OWN WORKFORCE At Nabaltec, the Head of Commercial Services is responsible for implementing and the measures achieving the targets described in this section. Michael Birzer held this position during the reporting period. Workforce structure and corporate responsibility (VSME B8–39c, B8–40) As of 31 December 2024, Nabaltec had a total of 484 employees at the Schwandorf site. VSME B8–39c, B8–40 Total number of employees at the Schwandorf site as of 31.12. Number of temporary employees (excluding trainees) Number of permanent employees Trainees Number male Number female Number diverse Fluctuation rate in % Proportion of women in management positions (at management level) in % Employees who receive remuneration greater than or equal to the statutory minimum wage in % Pay gap between female and male employees in % Employees with collective bargaining coverage in % 2022 2023 2024 490 38 409 43 376 114 0 3.3 17.1 100 500 6 451 43 375 125 0 3.6 16.3 100 484 5 434 45 361 123 0 3.0 15.1 100 not applicable not applicable not applicable 91.5 91.3 91.6 A stable and future-oriented working environment is key to attracting and retaining qualified specialists in the long term. Nabaltec promotes the targeted professional and personal development of its employees in order to develop their potential effectively. We continuously monitor and analyze the fluctuation trend. Taking into account terminations, the end of training, the expiry of fixed-term contracts and the transition to retirement, a total of 37 employees left Nabaltec in financial year 2024. Employee turnover was 3.0%, slightly below the previous year’s figure and at a persistently low level overall. S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

42 O W N W O R K F O R C E In the long term, lower staff turnover contributes to stable employment relationships and promotes continuous cooperation within the company. It plays a key role in securing the location by counteracting a brain drain. Regardless of the current level, we align our corporate culture with the different pro- fessional and private life phases of our employees. As professional requirements and personal commitments change over time, we create a flexible and respectful working environment, that promotes a good balance between work and private life. We also attach particular importance to ethical principles and social responsibility. The entire Nabaltec workforce, including the Management Board and the Supervisory Board, is bound by the provisions of our Code of Conduct. We respect and protect human rights and are committed to fair working conditions and compliance with international standards at all our sites. Further information on our guidelines, standards and management systems can be found in the Sustainability guidelines and certifications section. Signiﬁcant impacts, risks and opportunities in connection with the company’s own workforce Employee recruitment and retention is associated with different challenges at the various company locations. At the Schwandorf site, we benefit from collectively agreed pay and a positive corporate image, while shift work remains a significant risk factor for the long-term retention and recruitment of skilled workers. We have implemented flexible working time models, remote working options and childcare services to increase our attractiveness as an employer and strengthen long-term employee loyalty, particularly in times of a shortage of skilled workers. These measures also improve the work-life balance and help to create sustainable working conditions. With rigid, inflexible working time models, Nabaltec would be exposed to high risks regarding the loss of talent and would be at a considerable competitive disadvantage compared to companies with more attractive working time models. N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

O W N W O R K F O R C E 43 To retain employees, Nabaltec offers additional financial and social benefits above the standard pay scale. Nevertheless, the shortage of skilled workers represents a strategic risk that could have a negative impact on production output and sales in the long term. While the risk for the next five years is classified as moderate, additional incentive systems, an adjustment to the shift system or increased automation may be necessary in the future. However, these measures involve considerable organizational and financial effort and are not always technically feasible in the short term. ESRS subtopic Category Description Working conditions | Work-life balance Positive impact Flexible working time models, remote working options and childcare models make the company more attractive as an employer and increase the possibility of retaining talent in the long term. Financial risk Loss of talent due to rigid, inflexible working time models. Lower employee satisfaction and higher staff turnover. Competitive disadvantages compared to companies with more attractive working time models. Time horizon Current Potential – medium term Central ﬁelds of action Our HR work focuses on the following areas of activity: ◆ Increasing employee satisfaction, in particular to retain highly qualified specialists in the company in the long term ◆ Promotion of work-life balance, in particular to support employees with family commitments ◆ Comprehensive occupational health and safety management system ◆ Highest safety standards in the workplace ◆ Promotion of training and further education for our employees ◆ Ensuring equal opportunities and equal treatment for all employees S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

44 O W N W O R K F O R C E Get more information about career opportunities at Nabaltec. Strategic goals and measures The main location of Schwandorf is characterized by a high quality of life, regional ties of its residents and stable employment relationships. At the same time, the rural location poses a structural challenge when it comes to attracting and retain- ing qualified specialists, particularly in view of the increasing shortage of skilled workers. In order to strengthen its attractiveness as an employer and position itself in the competition for skilled workers, Nabaltec invests specifically in mea- sures to recruit and retain employees. These include, in particular, initiatives to increase employee satisfaction and promote work-life balance, which contribute to the long-term stability and competi- tiveness of the company, for example: ◆ Flexitime models ◆ Part-time work and remote working ◆ Lifetime working time account ◆ Temporary leave of absence (e.g. special leave, care leave) ◆ Sabbatical ◆ Health programs and programs to increase well-being ◆ Fitness programs To better support the needs of families in particular, Nabaltec has set itself the following goals: ◆ Provision of company childcare facilities ◆ Organization of vacation programs or vacation camps for employees’ children ◆ Enabling tutoring or learning support for employees’ children Specifically planned measures up to 2030: ◆ Development of a vacation care concept ◆ Search for possible cooperation partners to offer tutoring services ◆ Creation of a meeting place including staff restaurant by 2030 Indicators: ◆ Provision of 20 vacation childcare places for a period of three weeks until 2030 ◆ Offer tutoring services until 2030 Compatibility of career and family Our measures to promote a family-friendly working environment include flexible part-time models, which can also be used in management positions and are reflected in a return rate of 100% after parental leave. In addition, the company offers mobile working, if the job allows it, in order to create additional flexibility for employees. N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

O W N W O R K F O R C E 45 Since 2007, Nabaltec has been a partner of the Local Alliance for Families in the district of Schwandorf, in which measures are jointly developed to improve the compatibility of work and family life. The company is also a long-standing member of the nationwide Success Factor Family network and the Bavarian Family Pact, an initiative of the Bavarian state ministries to promote family-friendly working structures. In accordance with legal and collective bargaining requirements, all Nabaltec employees (100%) at the Schwandorf site are entitled to time off for family reasons. In the 2024 financial year, 14.9% of the workforce took advantage of this option. Broken down by gender, 9.6% of men and 5.3% of women took time off. These figures illustrate the relevance of family-friendly measures and underline the strategic importance of work-life balance within the company. Training and further education as a strategic success factor (VSME B10–42d) In view of the increasing shortage of skilled workers, the targeted training and development of our own junior staff is an essential part of Nabaltec’s long-term personnel strategy. In particular, we aim to cover our personnel require- ments primarily with qualified specialists from our own ranks. As of 31 December 2024, Nabaltec employed 45 trainees (2022 and 2023: 43 trainees each). VSME B10–42d Nabaltec’s responsibility extends beyond training. We offer our employees a wide range of opportunities for further training and professional and personal develop- ment. Both managers and specialists are given targeted support through financial assistance, internal training programs and regular management and employee training in order to continuously develop their qualifications and ensure the long- term success of the company. The average number of training hours per employee in the 2024 financial year was 37.1 hours. According to a special analysis published by the German Economic Institute (IW) at the beginning of 2024 on further training in the chemical industry 1 in the year 2022, the average hours of further training per employee amounted to 13.7 hours. At 37.1 hours, Nabaltec is not only well above the average for the chemical industry, but also above the average for the economy as a whole (20.3 hours) and the industry 2 (16.6 hours). Comparison of average training hours per employee Ø training hours per employee (headcount) 37.1 13.7 20.3 16.6 Nabaltec Chemical industry Overall economy Industry 1 2 Institute of the German Economy (ed.) (2024): Further training in the chemical industry. Special evaluation of the IW Continuing Education Survey 2023 In addition to the chemical sector, industry includes manufacturing, energy, water supply, waste disposal and construction. S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

46 O W N W O R K F O R C E Promotion of health protection and occupational safety VSME B9- 41a-b (VSME B9-41a-b) In Germany, employers are required by law to ensure safe working conditions through occupational health and safety measures, risk assessments and workplace health promotion. To ensure the highest safety standards, Nabaltec implemented a comprehensive occupational health and safety management system in accordance with ISO 45001 at the Schwandorf site back in 2007. This system is continuously being developed and ensures the systematic prevention of work-related health risks. The safety standards defined therein apply equally to all international production sites. ISO certification also ensures that 100% of the workforce is involved in the occupational health and safety management system. This not only ensures legal compliance, but also creates a uniform and verifiable standard of protection for all employees. Nabaltec goes beyond the minimum legal requirements by implementing additional prevention and health measures to promote the well-being and long-term performance of the workforce. We promote and strengthen the physical and mental well-being of our employees through occupational health management. Measures such as health days, sports programs, running events and targeted prevention offers actively contribute to the promotion of health. Nabaltec complies with the applicable working time laws of the countries in which it operates and expects its suppliers to do the same. Unless national regulations provide for lower maximum working hours, employees are not expected to regularly work beyond the limits set out in the ILO standards, except in exceptional operational situations. As a result of our health and safety measures, the accident rate was reduced slightly compared to the average of recent years. In 2024, there were no cases of notifiable work-related illnesses and no fatalities. Labor force: Health and safety Number of reportable accidents at work Number of accidents with days lost LTIR (Lost Time Injury Rate) 1 Work-related fatalities Number of hours worked 1 LTIR = (number of accidents with days lost/number of hours worked) * 1,000,000 2022 2023 2024 18 28 39.93 0 11 12 16.69 0 13 20 28.04 0 701,302 718,967 713,375 N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

O W N W O R K F O R C E 47 Social partnership, social dialog and collective agreements (VSME B10-42a,c) Remuneration - including wages, overtime pay and social benefits - must at least meet or exceed the statutory requirements. The remuner- ation of full-time employees should ensure an appropriate income that is sufficient to cover the basic necessities of life. Nabaltec is a member of the employers’ association VBCI (Verein der Bayrischen Chemischen Industrie e.V.) and is subject to the collective agreements of the chemical industry. The collective agreement for the chemical industry provides benefits such as 30 days’ vacation, the future allowance and Christmas and vacation pay for a 37.5-hour week. VSME B10– 42a,c The remuneration set out in this collective agreement is higher than the statutory minimum wage in Germany. In addition, we supplement the collectively agreed benefits with company-specific regulations, including voluntary bonus payments, anniversary bonuses and special benefits for private events. Nabaltec also employs temporary workers at the Schwandorf site if required. The prerequisite for cooperation is a valid license for temporary employment and the service provider’s affiliation to one of the BAP/BZA or iGZ collective bargaining associations. We only work with companies that pay their employees the statutory minimum wage and ensure that their subcontractors also comply with this requirement. Nabaltec respects the right of employees to freedom of association and collective bargaining. In the 2024 financial year, 91.6% of employees were subject to collectively agreed working conditions, meaning that collective bargaining coverage was on a par with previous years (2023: 91.3%, 2022: 91.5%). The Works Council is involved in social, personnel and economic matters within the framework of co-determination in accordance with legal requirements and engages in dialog with the company management in a spirit of partnership. Equal opportunities and equal treatment Nabaltec is committed to the equal treatment of all employees and promotes a non-discriminatory working environment in which performance, qualifications and competence are the decisive criteria for professional development and decision- making processes. Compliance with legal requirements and international standards on equal opportunities is an integral part of our corporate strategy and is binding for all employees in our Code of Conduct. Further information on our Code of Conduct can be found in the chapters Sustainability guidelines and certifications and Governance. S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

48 O W N W O R K F O R C E For Nabaltec, equal opportunities also means that all forms of discrimination, harassment and violence - including physical, sexualized, psychological or verbal abuse - are consistently prevented. Personnel decisions are made according to objective, transparent criteria that ensure that all employees are offered equal development opportunities based on their individual skills and performance. In addition, Nabaltec is committed to reconciling work and family life and promotes an open corporate culture that fosters dialog and respectful cooperation. The aim is to give every person the opportunity to develop their full potential and actively contribute to the long-term success of the company. 15.1% of women in management positions at Nabaltec There are currently no women in the upper management levels of Nabaltec AG. Suitable female candidates should be given appropriate consideration for future appointments. As of the reporting date of 31 December 2024, 15.1% of women were in management positions at Nabaltec. We are increasing the proportion of qualified women through the targeted recruitment and development of internal and external talent. These include structured, skills-based selection procedures, targeted approaches (e.g. via university and network cooperations), mentoring/ leadership programs and transparent progress measurement. Nabaltec is actively committed to breaking down barriers and promoting equality for people with disabilities and other disadvantaged groups in order to foster an inclusive corporate culture. This commitment is in line with the legal requirements for equal treatment and inclusion, in particular the German General Equal Treat- ment Act (AGG) and the provisions of the German Social Code Book IX (SGB IX) on the participation of people with disabilities in working life. In 2024, the proportion of employees with disabilities was 3.5%. N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

O W N W O R K F O R C E 49 Reporting system for violations of company guidelines, laws or ethical standards Nabaltec does not accept any form of disadvantage, discrimination, corporal punishment or other physical, sexual, psychological or verbal harassment or abuse. A whistleblowing system has been implemented in collaboration with the external service provider Ratisbona Compliance to ensure that irregularities can be reported and rectified immediately. Further information on our whistleblowing system can be found in the Governance chapter. Social commitment Nabaltec has always been closely associated with its home base in Schwandorf and the region. We benefit from the local infrastructure and want to contribute to it. Accordingly, we see it as our duty to get involved in social projects in the region. Among other things, Nabaltec is one of the supporters of the annual Schwandorf Charity City Run, the proceeds of which are donated to charitable organizations. Nabaltec is also a partner of the Integration Schwandorf e.V. association, which was founded in 2024. The association, which emerged from the Integration Schwandorf initiative, which has been active since 2016, works to integrate migrants as well as socially disadvantaged people, promote volunteer work and social cohesion and support people in need. Nabaltec also supported the Night of Science at the Ostbayerische Technische Hochschule Amberg-Weiden in 2024. S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

50 G O V E R N A N C E GOVERNANCE At Nabaltec, the Chairman of the Management Board is responsible for implementing the measures and achieving the targets described in this chapter. Johannes Heckmann held this position during the reporting period. Corporate responsibility and key areas of action VSME B11–43 (VSME B11–43) Responsible and legally compliant corporate governance is essential for the long-term stability and competitiveness of Nabaltec. The company’s governance structures ensure that decision-making processes are transparent, compliant and aligned with the interests of all stakeholders. Further information on Nabaltec Group’s governance structures can be found in the chapter General information on administrative, management and supervisory bodies. Our corporate policy is based on a combination of entrepreneurial spirit with clearly defined value principles such as integrity, reliability and transparency. Nabaltec is committed to complying with legal requirements, regulatory require- ments and international standards. In addition to complying with legal and regulatory requirements, this also includes shaping our value chain responsibly and promoting innovations that combine sustainability and business success. We are committed to acting in an economically, ecologically and socially responsible manner. Our Code of Conduct defines binding Group-wide principles for ethical and com- pliant behavior. These include measures for compliance training, the protection of whistleblowers and anonymous reporting channels. By continuously evaluating our processes, we ensure that we identify risks at an early stage and promote an environment that supports ethical and sustainable business practices. Through our Code of Ethics, we transfer our standards and expectations for ethical behavior and responsible sourcing to our supply chain. We expect our suppliers to act with integrity and fairness, to respect human rights and to treat the environ- ment responsibly. N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

G O V E R N A N C E 51 Further information on our corporate guidelines can be found in the chapter Sustainability guidelines and certifications. Key ﬁgures for corporate management Nabaltec is expressly opposed to any form of corruption and bribery and acts in accordance with the principles of the UN Convention against Corruption (2005). This also includes a commitment to transparency, integrity and responsible corporate governance and control. When dealing with business partners, authorities and third parties, we ensure a clear separation between company interests and the private interests of employees. Actions and decisions within the company must therefore be made free of personal conflicts of interest and comply exclusively with legal and corporate requirements. Even though no increased exposure to corruption risks was identified at Nabaltec at the time of reporting, the topic is nevertheless anchored throughout the Group in order to sensitize all employees. This is done, for example, through training courses in which employees are comprehensively informed about typical risk situations in everyday working life, correct behavior when dealing with potential conflicts of interest and possible reporting channels for suspected cases or compliance violations. Anti-corruption and anti-bribery laws Number of convictions for violations of anti-corruption or anti-bribery laws in the reporting period Amount of total fines imposed for violations of anti-corruption and anti-bribery laws in EUR 2022 2023 2024 0 0 0 0 0 0 Central ﬁelds of action Our governance strategy focuses on the following areas of action, which we use to ensure that high ethical, social and environmental standards are maintained within the company and along our value chain: ◆ Securing long-term economic success ◆ Responsible supply chain design ◆ Sustainable procurement ◆ Integration of sustainability aspects in innovation and development S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

52 G O V E R N A N C E To this end, Nabaltec has already implemented the following preventive measures: ◆ Regular internal compliance training - for example on the Code of Conduct or special topics such as child and forced labor ◆ Code of conduct for suppliers to ensure common values and standards ◆ Policy on sustainable and responsible procurement that incorporates environmental and social criteria ◆ Regular risk assessment of our suppliers to identify potential problem areas at an early stage ◆ Availability of a whistleblowing system for the confidential reporting of grievances Signiﬁcant impacts, risks and opportunities in the area of governance Efficient supplier management is important in order to minimize financial, regu- latory and operational risks and take advantage of economic opportunities in a targeted manner. As part of our materiality analysis, company-specific material aspects were identified in the areas of sustainable procurement and innovation and development. In this way, the procurement of sustainable goods actively contributes to the reduction of environmental impact and thus makes a significant contribution to the conservation of resources. In the upstream value chain, risks arise from potential non-compliance with environmental, social and compliance requirements by suppliers. In the downstream value chain, there is potential in customer loyalty and market expansion, among other things. Sustainable procurement also helps to reduce CO2 emissions, waste and resource consumption, depending on the product group and evidence. To manage risk, Nabaltec relies on a clear governance framework consisting of guidelines, minimum contractual requirements, risk-based due diligence and audits. In the area of innovation and development, both opportunities and risks were identified in connection with products with an improved environmental footprint. In the medium term, Nabaltec expects that sales of high value-added, sustainable products are likely to increase revenues, as legal and customer requirements for environmentally friendly products continue to rise. In the long term, however, there is a significant financial risk if Nabaltec does not develop suitable products in time and loses customers or market share as a result. Nabaltec AG receives the Best Managed Companies Award again in 2025 and achieves platinum status as a seven-time award winner. N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

G O V E R N A N C E 53 ESRS subtopic Category Description Time horizon Potential – short-term Management of relationships with suppliers including payment practices Financial risk (upstream value chain) Non-compliance with legal requirements: by suppliers can lead to the exclusion of further orders. There is also a risk of legal disputes, including claims for damages, as well as considerable reputational damage for the company. Economic opportunity (downstream value chain) Customer retention and acquisition: Responsible supply chain management strengthens the trust and loyalty of existing customers and can help to attract new business partners. Potential – medium term Company-speciﬁc aspects Positive impact (own company) Reduction of environmental impact: Sustainable procurement helps to reduce CO2 emissions, waste and resource consumption by prioritizing the purchase of environmentally friendly products and services. Current Financial risk (own business) Financial risk (own business) Regulatory uncertainties: Changes to legal requirements and standards for sustainable procurement can cause considerable adjustment costs and influence operational planning. Innovation and development: Loss of customers and/or market share due to lack of products that meet legal, market and environ- mental requirements. Current/potential long-term Potential – long-term Economic opportunity (own business) Innovation and development: Development of products with an improved ecological footprint increases the potential for new applications, markets and customers. Potential – medium term Strategic goals and measures The focus of our strategic objectives and measures is on managing our supply chain and procurement in such a way that we meet our high standards of good corporate governance. Supply chain and procurement management (VSME C2–48) As part of its supplier management, Nabaltec ensures that ethical business practices, the protection of human rights, environmental standards and sustainable procurement criteria are observed throughout the entire value chain. New and existing suppliers are evaluated on the basis of ecological, social and economic criteria. This is done on the basis of a multi-stage risk analysis: VSME C2–48 1. Country evaluation: The first step is to assess the risk profile of the supplier’s country. Depending on the result, the risk is I. 2. Supplier-specific information: In the second step, specific information about the supplier is collected. Supporting one or more initiatives such as RMI, IRMA, ASI or sustainability benchmarking has a positive effect on the risk assessment. This results in risk II. S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

54 G O V E R N A N C E 3. On-site audit: If the assessment levels I and II result in a medium, high or very high risk, an on-site audit is carried out. 4. Final evaluation: If the sustainability risk remains high even after the three-stage risk assessment, this usually leads to the supplier not being commissioned. All contracted suppliers are required to sign a Code of Ethics that defines binding requirements for working conditions, environmental management and compliance structures. The supplier code is available in German and English. Violations of these requirements can lead to contractual sanctions and even termination of the business relationship. Through this structured approach, Nabaltec not only ensures legal compliance, but also minimizes potential financial, reputational and operational risks within the supply chain. Further information on our Code of Ethics can be found in the chapter Sustainability guidelines and certifications. Due to transparent payment practices, Nabaltec contributes to fair and reliable cooperation with suppliers - especially with small and medium-sized companies. Specifically planned for the coming financial year: ◆ Evaluation of our raw material suppliers with regard to their support of import- ant industry-related sustainability guidelines and standards that go beyond applicable national and international law. The initiatives we used for the evalua- tion include IRMA, RMI and ASI. ◆ Our key suppliers are checked and evaluated with regard to compliance with sustainability requirements. Key figures for supply chain management: ◆ Every year, we assess 100% of our raw material suppliers in terms of their support for key industry-related sustainability guidelines and standards. ◆ Every year, we review and evaluate our top 25 suppliers (key suppliers) by purchasing volume with regard to compliance with sustainability requirements. As a resource-intensive industrial company, procurement management is one of the most important levers for achieving our sustainability goals. The aim is to harmonize environmental protection, social responsibility and economic value. We minimize the environmental impact of our procurement activities by giving preference to products and services with a low footprint, paying attention to fair working conditions, the protection of human rights and the well-being of the community. At the same time, in addition to the purchase price, we also take long-term sustainability aspects into account in our decisions and pursue a sustainable packaging concept, for example for paper bags or pallets. N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

G O V E R N A N C E 55 Targets and key figures for procurement management: ◆ By 2030, 25% of paper sacks are to be made from raw materials from certified timber cultivation. ◆ By 2030, 10% of pallets should be made from recycled plastic pallets. As part of its responsible sourcing strategy, Nabaltec is committed to complying with internationally recognized labor and social standards along the entire supply chain. A central part of this commitment is the strict rejection of forced labor in any form - including prison labor, bonded labor or other forms of involuntary employment. These principles apply in particular to cooperation with suppliers in the field of raw materials extraction, for example in the context of mining and mining activities, where the corresponding risks may be increased. Nabaltec expects its business partners to implement suitable processes and control mechanisms to effectively exclude forced labor and comparable practices. Child labor is also not tolerated under any circumstances. In accordance with ILO Convention No. 138, Nabaltec does not employ any persons under the age of 15, unless local legal regulations stipulate an even higher minimum age. Special protective regulations apply to employees under the age of 18: They must not carry out any dangerous activities. Exceptions are only permitted if the activity is part of recognized training, takes place under controlled conditions and complies with all applicable health and safety regulations. Exemption from night work may also be granted if this is necessary to meet training requirements. Through these measures, we ensure that fundamental human rights and labor standards are upheld in our own business activities as well as in the upstream value chain. S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

56 G O V E R N A N C E Indicator of the risk of child labor or forced or compulsory labor: ◆ According to the supplier risk assessment, there is currently no risk of child labor or forced or compulsory labor among workers in our value chain. Innovation and development Nabaltec systematically integrates sustainability principles into the innovation process and the development of new products in order to ensure that economic, environmental and social factors are given equal consideration. The product strategy aims to minimize environmental impact through optimized production processes and to provide sustainable alternatives to conventional products. Our products should be characterized by durability, reusability and recyclability, whereby life cycle analysis is an essential part of the development process. Nabaltec has set itself the goal of ensuring that our solutions not only meet legal environmental standards, but exceed them and make a positive contribution to the taxonomy-related environmental goals.1 Our development and application technology teams are constantly driving innovation and providing new impetus. We consciously create space for creativity and have established structures that promote innovation throughout the company by allowing every employee to contribute ideas. In addition, Nabaltec supplements its in-house expertise by collaborating with renowned research institutions and universities, including the RWTH Aachen University, various Fraunhofer Institutes, the Saxon Textile Research Institute, the Research Institute for Glass and Ceramics (FGK) and various companies in the pre-competitive Refractories Research Association. We also carry out joint development work with our customers. When developing new products, we often support companies over long periods of time with demanding approval processes. By working closely with customers, trade associations and research institutions, Nabaltec ensures that current developments and regulatory requirements are recognized at an early stage and integrated into product development. This close networking with the target markets enables us to quickly translate technological advances into marketable solutions and thus give our customers a competitive advantage. Nabaltec’s ability to innovate can be seen, for example, in the field of electromobility. Here, boehmites from Nabaltec are used as coating materials for separator foils in lithium-ion batteries. These materials prevent overheating effects and help to further increase performance and safety standards in battery technology. Indicators: ◆ Nabaltec’s innovation rate (ratio of new product sales to total sales) is > 12%. ◆ The ratio of sales of sustainable new products to total sales of new products is > 95%. 1 The six environmental objectives of the EU taxonomy are: Climate protection, adaptation to climate change, sustainable use and utilization of water or marine resources, transition to a circular economy, prevention or control of pollution, protection and restoration of biodiversity and ecosystems. N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

G O V E R N A N C E 57 Data protection and business secrets Compliance with data protection policies based on the legal requirements is ensured within Nabaltec and is additionally monitored by an external data protection officer. Even though we have not formulated any specific targets in the area of data protection, we ensure that our data protection practices meet the highest security and quality criteria. Personal data is processed exclusively on the basis of the statutory data protection regulations. In addition to data protection, Nabaltec obliges all employees to maintain confidentiality when dealing with business and trade secrets. Confidential information or documents may only be passed on to third parties if express permission has been granted or if the information in question is publicly accessible. This regulation serves to protect sensitive company data and maintain the company’s competitiveness. Lobbying activities and association memberships For Nabaltec, lobbying activities and memberships in associations do not represent any significant entrepreneurial influence. However, participation in these structures is targeted in order to help shape relevant industry developments and anticipate regulatory requirements at an early stage. We see it as our corporate responsibility to contribute constructively to relevant topics and to represent our interests through transparent memberships in various trade associations. These associations not only serve as a platform for the exchange of experience and further training, but also provide important impetus for research and development. The trade associations in Germany and abroad of which Nabaltec is a member are listed below: ◆ ACerS - American Ceramic Society ◆ Bavaria Innovative ◆ DGK - German Ceramic Society ◆ EPSA - European Producers of Specialty Aluminas ◆ FGK - Research Association for Plastics ◆ pinfa (Phosphorous, Inorganic and Nitrogen Flame Retardants Association) ◆ PlasticsEurope Germany e.V. ◆ VBCI - Association of the Bavarian Chemical Industry ◆ VCI - German Chemical Industry Association ◆ VDFFI - Association of the German Refractories Industry S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

58 G O V E R N A N C E Whistleblowing - Whistleblowing Directive By strictly observing legal regulations and official requirements, Nabaltec ensures that our company acts responsibly, creates trust and grows sustainably. Our ethical principles are defined by a Code of Conduct, a Code of Ethics and a guideline for the sustainable and responsible procurement of goods and services. Nabaltec has set up appropriate reporting channels to draw attention to grievances in connection with our ethical principles. Further information on our guidelines and policies can be found in the Sustainability guidelines and certifications section. Nabaltec strongly encourages all of its employees to clearly address any behavior that may violate applicable law or the company’s ethical principles. Nabaltec has an official whistleblowing policy to promote employee confidence in a safe and transparent whistleblowing framework. To ensure maximum security for the whistleblowing process, we have also implemented a whistleblowing system together with the external service provider Ratisbona Compliance, which is available to all employees and other stakeholders at all times. This system can be used to provide information anonymously and confidentially. The whistleblowing system is managed by our compliance service provider, to whom Nabaltec is not authorized to issue instructions. Nabaltec encourages reporting grievances via the established internal reporting channels. Possible contacts here are, for example, store stewards, HR, the works council or the management board. N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

G O V E R N A N C E 59 If this is not possible, whistleblowers can contact the external operator anonymously. Through the whistleblower system with legal expertise from the operator, reports are made directly to the operator. Reports can be made digi- tally via a reporting platform, by telephone or in person. Ratisbona Compliance conducts an initial review and exchanges information anonymously with the whistleblower. The personal data will only be passed on to the company so that the case can be investigated with the express consent of the whistleblower. Ratisbona Compliance will inform the whistleblower of the company’s decision on how to proceed. The process guarantees compliance with the General Data Protection Regulation (GDPR). It also ensures that no one who submits a report has to fear negative consequences as a result. The following overview schematically shows the process for a potential whistleblowing scenario in our policy and in cooperation with Ratisbona Compliance: Find out more about our whistleblowing system Observation of a misconduct Internal company support Anonymous report to external compliance service provider Initial review by external compliance service provider With the whistleblower’s consent, transfer of personal data to the company Anonymous communication between external compliance service provider and the whistleblower Company decision on further action External compliance service provider informs the whistleblower DSGVO compliance guaranteed No internal or external complaints were submitted via our whistleblowing system or other channels in the 2024 financial year. S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

60 G L O S S A R Y GLOSSARY ASI (Aluminium Stewardship Initiative) International non-profit organization that develops sustainability standards for the aluminum value chain and certifies companies on this basis (ASI certification). Circular economy Economic model that keeps products, materials and raw materials in the cycle for as long as possible (design for longevity, reuse, repair, remanufacturing, recycling) and avoids waste. CoP (Communication on Progress) Annual, mandatory progress report from member companies of the UN Global Compact. The CoP documents how the ten principles of the UNGC are implemented in the areas of human rights, labor, environment and anti-corruption. Cradle-to-Gate System boundary in life cycle assessments that considers the life cycle of a product from the extraction of raw materials to the point at which the product leaves the manufacturer’s factory gate. Usage and end-of-life phases are not included. CSRD (Corporate Sustainability Reporting Directive) EU directive on extended sustainability reporting by companies. The aim is to increase the transparency and comparability of sustainability information within the EU and to anchor it on an equal footing with financial reporting. Double Materiality Assessment Method for identifying the sustainability issues relevant to a company. It assesses both the company’s impact on the environment and society (impact materiality) and the financial opportunities and risks that arise for the company from sustainability issues (financial materiality). EcoVadis (ESG rating) International platform that carries out sustainability assessments for companies. Based on the number of points achieved, companies can be awarded medals (bronze, silver, gold, platinum) or badges (Committed Badge, Fast Mover Badge). EFR AG (European Financial Reporting Advisory Group) Brussels-based advisory organization that supports the EU Commission in matters of financial and sustainability reporting. Among other things, EFRAG develops the ESRS standards and the voluntary VSME standard for SMEs. N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

G L O S S A R Y 61 Energy intensity Ratio of absolute energy consumption to an organization-specific parameter (e.g. number of employees, units produced, turnover). The indicator is used to put a company’s energy consumption in relation to its performance and thus make efficiency potential and ecological impact measurable and comparable. ESG (Environmental, Social, Governance) Refers to non-financial factors in the areas of environmental (E), social (S) and governance (G), which cover both the sustainability impacts and contributions of a company as well as sustainability- related risks and opportunities for a company. They are used by investors, rating agencies and other stakeholders to evaluate potential investments and assess the long-term development of the company. ESRS (European Sustainability Reporting Standards) EU sustainability standards that specify CSRD obligations and structure reporting requirements. EU Battery Regulation EU regulation on batteries and waste batteries, which came into force in 2023. It regulates the entire life cycle of batteries - from production and sustainability requirements to labeling, take-back, recycling and reuse. GADSL (Global Automotive Declarable Substance List) Industry-wide used, non-legal list declarations or banned substances for the automotive industry to reduce environmental and health risks in the supply chain. GHG Protocol (Greenhouse Gas Protocol) The world’s leading standard for accounting greenhouse gas emissions (Scope 1-3). Developed and coordinated by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). GHS (Globally Harmonized System of Classification and Labelling of Chemicals) An international classification and labeling system for chemicals that establishes uniform global safety standards for their handling and transport. ILO (International Labour Organization) Specialized agency of the United Nations, founded in 1919, with the aim of establishing globally binding labor and social standards. IRMA (Initiative for Responsible Mining Assurance) Multi-stakeholder initiative that develops standards for responsible mining and carries out independent audits and certifications on this basis. IRO (Impacts, Risks, Opportunities) Collective term for sustainability-related impacts, risks and opportunities along a company’s value chain. S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

62 G L O S S A R Y ISO 9001 (Quality Management) Certifies the implementation and continuous improvement of an efficient quality management system that ensures that products and services meet customer and regulatory requirements. ISO 14001 (Environmental Management) Certifies systematic environmental management that takes account of environmental aspects along the value chain and strives to continuously reduce environmental impact. ISO 14064 (Greenhouse Gases Reporting) International standard for quantifying and reporting greenhouse gas emissions and sinks at the organizational level. It forms the basis for greenhouse gas balances in accordance with recognized standards. ISO 45001 (Occupational Health and Safety) Confirms the implementation of an occupational health and safety management system that ensures safe working conditions, minimizes risks and protects the health of employees. ISO 50001 (Energy Management) International standard for energy management systems (EnMS); it offers a systematic approach to continuously improving energy efficiency, reducing energy consumption and cutting energy costs. LCA (Life Cycle Assessment) Life cycle assessment procedure for the systematic evaluation of environmental impacts along the entire life cycle of a product - from raw material extraction to disposal. PCF (Product Carbon Footprint) CO2 footprint of a product over defined life cycle phases. It shows the climate-relevant emissions of a product and serves as a basis for transparency and optimization. PDCA cycle (Plan-Do-Check-Act) Continuous improvement process in management systems. It describes the systematic planning, implementation, review and adaptation of measures in management systems. REACH Regulation (Registration, Evaluation, Authorization and Restriction of Chemicals) EU Chemicals Regulation, which ensures that chemical substances are registered, evaluated and approved in the EU in order to minimize risks to humans and the environment. Resilience analysis Assessment of a company’s resilience to external influences such as market changes, regulatory requirements or environmental and climate risks in order to identify risks at an early stage and develop adaptation strategies. N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

G L O S S A R Y 63 Responsible Care Global Charter Global voluntary commitment of the chemical industry to continuous improvement in the areas of health, safety and the environment (HSE). RMI (Responsible Minerals Initiative) Global industry initiative that develops standards and testing procedures for responsible mineral sourcing (e.g. conflict minerals). RoHS (Restriction of Hazardous Substances) EU Directive on the restriction of certain hazardous substances in electrical and electronic equipment in order to reduce environmental and health risks. Scope 1, Scope 2 and Scope 3 Emission categories according to the GHG Protocol: Scope 1 = direct emissions; Scope 2 = indirect emissions from purchased electricity/heat/steam/cooling; Scope 3 = other pre- and downstream emissions in the value chain. SDGs (Sustainable Development Goals) 17 globally agreed sustainable development goals adopted by the United Nations in 2015 as part of the 2030 Agenda. The SDGs serve as an orientation framework for states, companies and society to jointly tackle key challenges such as poverty, inequality, climate change and resource consumption. SVHC (Substances of Very High Concern) Substances of very high concern according to REACH, which are included in the candidate list. Their inclusion may lead to authorization requirements (Annex XIV) and/or restrictions (Annex XVII). UNGC (UN Global Compact) Voluntary corporate initiative of the United Nations with ten principles on human rights, labor, environment and anti-corruption as well as an annual CoP reporting obligation. VSME (Voluntary Sustainability Reporting Standard for SMEs) Voluntary standard developed by EFRAG for small and medium-sized enterprises (SMEs). The VSME offers a simplified, modular approach to sustainability reporting. S U S T A I N A B I L I T Y R E P O R T 2 0 2 4 N A B A L T E C A G

64 I M P R I N T IMPRINT Publisher Nabaltec AG Alustraße 50–52 92421 Schwandorf, Germany Phone: +49 9431 53- 298 E-mail: info@nabaltec.de Internet: www.nabaltec.de/en Text Nabaltec, Schwandorf, Germany cometis, Wiesbaden, Germany Concept & Design Silvester Group, www.silvestergroup.com Photos Herbert Bürger, C3 marketing agentur GmbH, Andre Forner, freepik, Stefan Hanke, Oliver Heinl, Dragan Ilic, David Janousch, Clemens Mayer, Nabaltec, Simone Schuller N A B A L T E C A G S U S T A I N A B I L I T Y R E P O R T 2 0 2 4

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Nabaltec AG Alustraße 50 – 52, 92421 Schwandorf, Germany Phone: +49 9431 53- 298, Email: info@nabaltec.de, www.nabaltec.de/en