Management of impacts, risks and opportunities

S2-1 – Concepts related to value chain workers

Development of sustainable procurement

Adequate wages, health and safety

Content: In the 2024/25 fiscal year, a comprehensive project was launched to systematically analyse and optimise internal procurement structures. Both external factors – such as the increasing complexity of regulatory requirements (e.g. ESG, CSRD, CSDDD, NIS2) – and internal aspects were taken into account. A central internal focus has been the integration of the ‘LOOP’ Group Strategy into purchasing and the revision of existing processes. The concepts developed jointly with the entire purchasing team will be gradually implemented over the coming years and will form the foundation for further development towards sustainable procurement.

Particular attention will be paid to sustainability topics, in particular the full implementation of the Prewave supplier risk management system in ERP systems. This system systematically identifies and assesses environmental and social risks along the supply chain. Using artificial intelligence and machine learning, Prewave detects potential risks in the supply chain at an early stage, helping the company meet sustainability and compliance requirements.

Another key field of action is the gradual automation of capturing Scope 3 emissions along the supply chain. The resulting metrics will in future provide an essential basis for Purchasing to identify potential areas for improvement and, together with suppliers, to implement targeted actions to reduce CO₂ emissions.

One of the key policies governing cooperation with suppliers of Energie AG is the ‘Code of Conduct for our Contractors’. It sets out clear rules for collaboration along the supply chain and defines binding principles for good corporate governance. The focus lies on shared values such as respect, integrity, non-discrimination, responsibility, reliability, transparency, quality awareness and sustainability.

To fulfil this responsibility, it is essential to ensure that these fundamental principles are put into practice. Accordingly, Energie AG expects its contractors to make an explicit commitment to these values. With its Code of Conduct, Energie AG sets out the guiding principles that contractors must adhere to in the course of their work.

The sustainable procurement approach takes human and environmental rights considerations into account.

General objectives: The development of Energie AG’s purchasing strategy is increasingly guided by the principles of sustainability. The aim is to consistently integrate environmental, social and economic criteria into the procurement process, thereby establishing a responsible and forward-looking purchasing strategy.

Material impacts, opportunities and risks:

Also see SBM-3 – Material impacts, risks and opportunities and their interaction with the strategy and business model.

Monitoring process: The further development of internal procurement processes and the integration of sustainable purchasing approaches are currently underway and will be progressively embedded into the procurement process. In the coming years, monitoring and control mechanisms will also be developed to ensure implementation of the concept and long-term adherence to sustainability objectives.

Scope: The scope of application covers all procurement activities of Energie AG in Austria.

Responsibilities: Overall responsibility for implementing the concept in Austria lies with the Procurement and Logistics Department, which forms part of the Services und Digital Solutions GmbH service unit.

S2-2 – Processes for engaging with value chain workers about impacts

The interests of the stakeholder group ‘Workers in the value chain’ are taken into account through the Code of Conduct, which is binding for all contractors. This Code of Conduct covers a broad range of protected interests derived from internationally recognised frameworks such as the United Nations Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises and the ILO Declaration on Fundamental Principles and Rights at Work. For further information on the integration of value chain workers, see also the following section.

S2-3 – Processes to remediate negative impacts and channels for value chain workers to raise concerns

The contact details of Energie AG’s Procurement department are available on the corporate website, with additional contact information published on www.energieag.cz. The channels are provided by Energie AG. They include email, telephone and a postal address to ensure accessibility.

If negative impacts on workers in the value chain are identified, an individual corrective action plan is initiated.

Depending on the nature of the report, the case is forwarded either to the responsible contact within the Group or jointly addressed with the relevant Group unit. In the year under review, the company was not made aware of any violations of the Supplier Code or any other indications of labour-related concerns within the value chain.

See G1-1 - Business conduct concepts and corporate culture, whistleblower protection for information on reporting channels and resolution processes provided to Energie AG's external stakeholders.

At present, no reliable information is available regarding the extent to which workers in the value chain are aware of or place trust in the existing contact channels.

S2-4 – Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions

Based on Energie AG’s approach to sustainable procurement as outlined in Section S2-1, the following section presents the measures that address the material impacts on value chain workers.

Supplier risk analysis

Adequate wages, health and safety

Code of conduct for contractors

Adequate wages, health and safety