3.1

How E3 guides our sustainability actions

The double materiality assessment identified where Hager’s responsibilities are greatest. What follows is how those responsibilities are organised into a coherent operating model. The E3 framework connects environmental, social, and ethical commitments within a single structure, ensures they are resourced consistently, and makes progress visible across the organisation.

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Corporate sustainability at Hager defines where the company focuses, how it makes decisions, and what it holds itself accountable for: across operations, solutions, and relationships.

As outlined in section 1.2 Our sustainability journey continues, sustainability is one of the key enablers of how Hager grows and creates value. The E3 framework, based on Ethics, Employees, and Environment, translates this ambition into action. It provides the structure through which sustainability is embedded across operations, solutions, and relationships.

E3 defines how Hager upholds ethical business practices, creates an inclusive and healthy workplace, and delivers reliable, future-proof, low-carbon solutions in partnership with suppliers, customers, and other stakeholders.

Before turning to the detailed reports on the interconnected activities around Ethics, Employees, and the Environment, the following summaries provide a brief overview of each topic:

Ethics

Ethics is at the core of Hager’s approach to business, guiding responsible conduct across operations and the value chain. This commitment is reflected through ongoing ethics training, a secure integrity alert system, and clear expectations for all stakeholders upstream and downstream.

Hager seeks to uphold human rights, ensure fair and safe working conditions, and maintain transparent sourcing practices, reinforced by adherence to international standards such as the UN Global Compact and OECD Due Diligence Guidance.

Employees

This pillar reflects the commitment to creating a safe, inclusive, and future-ready workplace where people can thrive. Guided by the Human Sustainability approach, the People Ambition defines the direction: to make Hager a company where people can give their very best because they feel respected, safe, and genuinely valued.

This ambition is translated into action through the Care model, which defines how it is embedded in daily practice. The Care model turns values into observable behaviours, ensuring that physical and psychological safety, accountability, clear expectations, continuous feedback, support for growth, empathy, and fairness are consistently lived across all teams and locations.

Environment

The Environment pillar guides efforts to reduce greenhouse gas (GHG) emissions and minimise the environmental impact of operations. Through the Blue Planet Commitment, Hager implements robust action plans to minimise CO₂ emissions, reduce waste, and advance circular economy practices across the value chain. The company also prioritises eco-design, invests in innovative energy solutions, and leverages digital transformation to optimise resource use and operational efficiency.

By creating long-lasting products, by continuously improving their environmental performance, and by engaging partners and customers on this journey, Hager strives to enable low-carbon living and support the global climate targets set by the Paris Agreement.

Since 2021, the Blue Planet Commitment has been the operational programme for environmental delivery – setting targets, tracking performance, and coordinating action across decarbonisation, eco-design, and resource efficiency.

Each pillar is developed in full in Chapters 9–10 (Ethics), 8 (Employees), and 4–7 (Environment).

To ensure transparency and consistent execution across the E3 framework, priorities are translated into clear, measurable targets and tracked at Group level. The overview below summarises key commitments, the monitoring approach, and performance against targets, providing a structured view of how Hager is delivering on its sustainability ambitions.

3.2

Our contribution to UN SDGs

The E3 framework maps directly to the UN Sustainable Development Goals (SDGs) most relevant to the business. These have been identified through the double materiality assessment, which surfaces where operations create the greatest impact and where the most significant risks and opportunities lie.

Hager mapped the E3 framework to the relevant SDGs and integrated the disclosure requirements of ESRS and GRI standards, to ensure a consistent and transparent approach to sustainability management and reporting.

3.3

Sustainability governance

Commitments and targets define what Hager is working towards. Governance defines how those commitments are protected: through clear accountability, structured oversight, and decision-making processes that ensure sustainability is not deprioritised when other pressures arise.

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Hager’s governance model is built to translate strategy into action, from the Board of Directors to every employee. The structure is designed to be both accountable and responsive, ensuring that sustainability is embedded at every level of decision-making rather than managed as a separate function.

The E3 approach is embedded within this governance framework. This ensures that decisions and actions consistently reflect Hager’s values, support responsible business conduct, empower people, and promote environmental stewardship across the value chain.

The sustainability governance framework below illustrates how responsibilities are structured. It shows the roles of the highest governance bodies, management bodies, functional departments, networks, and employees in steering, coordinating, and implementing sustainability across the organisation.

With regards to the representation of the own workforce, the Chief Human Resources Officer (CHRO) plays a key role in the sustainability governance framework. The CHRO ensures that the human dimension of operations remains a strategic lever, and that broader value chain societal expectations are systematically integrated into sustainability discussions.

The administrative, management, and supervisory bodies comprise 11 members, of whom 4 (36%) are independent and 2 (18%) are women.

To ensure that appropriate sustainability-related skills and expertise are available within the highest governance body to oversee and manage material IROs, Hager applies a structured approach that aligns required competencies with the outcomes of its double materiality assessment and evolving market developments.

Based on this, targeted capability-building measures are implemented, including the Management Summer School (MSS). The MSS includes guest speakers, cross-industry learning expeditions, and site visits, providing diverse insights into transformation and best practices. This initiative brings together Board members, senior leaders, young talent, and external experts to strengthen knowledge on innovation, digitalisation, and sustainable development, ensuring that governance bodies remain equipped to effectively steer sustainability and business strategy.

Hager has also established governance mechanisms to collectively strengthen sustainability expertise. The Board of Directors regularly deliberates on strategy, policies, and corporate sustainability goals, supported by the Sustainability Council. The Sustainability Council oversees the management of sustainable development at Hager and is further described below.

Details of Hager’s administrative, management and supervisory board

3.3.1

Sustainability council: bridging vision and action

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The Council brings together the CHRO (people, culture, and social responsibility), the CTO (operational efficiency, technology, and sustainable product development), and the CMO (market trends, customer-centricity, and external stakeholder engagement). This composition ensures that sustainability decisions are grounded in commercial, technical, and human reality simultaneously.

The primary mandate of the Sustainability Council is to identify material sustainability impacts, risks, and opportunities that may impact or result from operations and the broader value chain. The Council sets strategic sustainability objectives aligned with the sectoral context and stakeholder expectations. It formulates and reviews key policies, such as the Sustainability Policy, ensuring these initiatives are both ambitious and actionable. The Council is chaired by the Chief Human Resources Officer.

The Council translates board-level direction into operational priorities and measurable actions. Sustainability-related matters addressed by the Council are systematically integrated into board and committee deliberations, supporting informed decision-making at the highest levels. This two-way exchange ensures that sustainability performance, risks, and emerging issues are regularly elevated to the Supervisory Board and Board of Directors for review and strategic alignment. This is how material IROs identified in the double materiality assessment are embedded into the Group’s strategic priorities, risk register, and relevant policies.

The Group risk management process also incorporates material sustainability-related risks into the Group risk framework. These risks are monitored, reviewed, and escalated through established governance and reporting channels, with defined responsibilities at management level.

3.3.2

Accountability for sustainability performance

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The Board of Directors is responsible for the management and oversight of targets related to material impacts, risks, and opportunities (IROs). Sustainability targets are either set directly by the Board (for example, Mission Zero) or approved by the Board through the Group’s policy commitments. Progress is monitored quarterly. Board members who chair these meetings challenge progress, assess deviations from targets, and steer corrective actions where necessary. Monitoring outcomes are reflected in follow-up actions and management decisions to ensure continued progress.

Related policies and internal controls are periodically reviewed to ensure continued relevance and effectiveness in addressing evolving sustainability risks and opportunities. Management and supervisory bodies explicitly consider trade-offs between competing objectives. In such cases, decisions are guided by the Group’s values, policy commitments, and risk appetite, with the objective of balancing economic performance with responsible business conduct and long-term sustainability.

3.3.3

Sustainability in our incentive schemes

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Hager’s remuneration policy for the highest governance body and senior executives is composed of a fixed salary and variable pay. The Hager Bonus Scheme is a lever for performance, aimed at enhancing both individual and collective performance to accelerate development and growth.

The structure of the scheme is based on the belief that overall performance is a combination of individual performance (achieved through focused objectives, the demonstration of Hager values, and leadership behaviours) and Group performance.

The remuneration framework incorporates key performance indicators (KPIs) linked to impact on Hager’s financial performance, annual business plan, and individual objectives. Group objectives encompass three domains: business, customers, and employees.

As part of the commitment to responsible growth, sustainability impact has also become a core component of performance culture. In 2025, 15% of the variable remuneration for the highest governance body and senior executives was directly tied to health and safety metrics in relation to employees and non-employees working at Hager sites. Specifically, it relates to the Lost Time Accident Rate (LTAR). This reflects the belief that long-term value creation must go hand-in-hand with environmental and social responsibility, aligning leadership incentives with the ambitions of the sustainability strategy.

3.3.4

Embedding sustainability in daily operations

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Hager’s sustainability policy is the operational instrument that connects E3 commitments to daily decisions across every function and location. It is grounded in the materiality assessment and supported by a set of charters and declarations, each covering a specific area of impact. This approach ensures that sustainability goals are both aspirational and actionable.

Equally important is collaboration with external stakeholders: suppliers, partners, and customers who play a critical role in amplifying impact. Through shared standards, transparent practices, and mutual commitment, systemic change is driven and progress toward collective goals is accelerated.

To address material topics in a structured and accountable way, the policy is supported by a set of dedicated charters and declarations. Each document provides clear principles, commitments, and guidelines tailored to specific areas of impact, ensuring consistency and alignment across the organisation and the value chain. The framework includes:

• Environment and Energy Charter
• Ethics Charter
• Declaration of Principles on Respect for Human Rights
• Sustainable Sourcing Charter
• Internal Mobility Charter
• Human Sustainability Charter

These policies are endorsed by the Board of Directors, apply to all entities within the scope of sustainability reporting, and are communicated internally via the Hager Live! platform and document management system.

For suppliers and business partners, adherence to these principles is contractually required via the Supplier Code of Conduct.

These policy commitments (with the exception of the Mobility Charter) apply throughout operations, value chain, and supplier relationships, and are grounded in internationally recognised standards such as the Universal Declaration of Human Rights, ILO Conventions, the UN Guiding Principles on Business and Human Rights, and the OECD Due Diligence Guidance.

Hager mandates regular risk-based due diligence aligned with the German Supply Chain Due Diligence Act (LkSG)¹, including supplier risk analysis, targeted conflict minerals reporting, preventative measures (such as employee training and updated contracts), and formal grievance mechanisms.

Hager applies the precautionary principle through systematic risk assessments, standardised controls, and robust training to proactively prevent harm to people and the environment.