Hexagon AB

##### (4.11) In the reporting year, did your organization engage in activities that could directly or indirectly influence policy, law, or regulation that may (positively or negatively) impact the environment?

(4.11.1) External engagement activities that could directly or indirectly influence policy, law, or regulation that may impact the environment

_Select all that apply_
###### ☑ Not assessed

##### (4.11.2) Indicate whether your organization has a public commitment or position statement to conduct your engagement activities in line with global environmental treaties or policy goals

_Select from:_
###### ☑ Yes, we have a public commitment or position statement in line with global environmental treaties or policy goals

##### (4.11.3) Global environmental treaties or policy goals in line with public commitment or position statement

_Select all that apply_
###### ☑ Paris Agreement

##### (4.11.4) Attach commitment or position statement

_Public statement in line with Paris Agreement.docx_

##### (4.11.5) Indicate whether your organization is registered on a transparency register

_Select from:_

##### (4.11.8) Describe the process your organization has in place to ensure that your external engagement activities are consistent with your environmental commitments and/or transition plan

_The sustainability strategy of Hexagon is fully incorporated into the business strategy, which guides all decisions across the entire company. As such, all external_
_engagement activities are consistent with the environmental commitments that are set._

##### (4.11) In the reporting year, did your organization engage in activities that could directly or indirectly influence policy, law, or regulation that may (positively or negatively) impact the environment? [...] ##### (4.11.8) Describe the process your organization has in place to ensure that your external engagement activities are consistent with your environmental commitments and/or transition plan _The sustainability strategy of Hexagon is fully incorporated into the business strategy, which guides all decisions across the entire company. As such, all external engagement activities are consistent with the environmental commitments that are set._

#### ESG governance

###### Environmental, social and governance (ESG and sustainability) topics

• The main responsibility for sustainability at Hexagon lies within the Chief Strategy Officer (CSO) with oversight from the Board of Directors and Executive Leadership Team accountability.

• The Hexagon Audit Committee is the guidance body for sustainability-related business at Hexagon.

• Relevant ESG topics are reported and reviewed in the Quarterly Business Review (QBR) for all Hexagon's divisions.

ESG accountability and governance encompasses the entire Hexagon organisation Hexagon champions compliance with recognised principles of corporate governance, which are used as the foundation for sustainability management. Management of ESG topics is embedded across Hexagon's businesses, through the divisional units, operating functions and entities. This means that ESG criteria is included across the group functions to ensure the relevant sustainability topics are addressed by the teams that are best positioned to improve each given area.

In 2023, Hexagon significantly strengthened its sustainability organisation by introducing a clear organisational structure and responsibilities throughout the company. Each division has clearly allocated and mandated the responsibilities of sustainability.

###### Furthermore, sustainability has also been an integral part of the quarterly Business Reviews for all Divisions. The governance of sustainability is distributed as follows:

The Board of Directors (BoD) has the ultimate responsibility for Hexagon's sustainability strategy and ESG governance. The BoD is informed on relevant sustainability topics in all meetings, and it approves major changes to Hexagon's sustainability framework, including updates to ESG targets.

The Audit committee assesses risks and opportunities of strategic importance related to sustainability. It adopts appropriate measures to ensure company-wide implementation of the sustainability framework. The Audit committee also oversees Hexagon's ESG management and internal controls.

The ESG Steering Committee is formed by representatives from each of the divisions and key corporate functions. Its main purpose is to discuss topics of company-wide materiality. After prioritising needs, the key initiatives and investments are proposed to the Executive Leadership team.

The CSO oversees Hexagon's sustainability topics. The CSO is a member of the Hexagon Executive Leadership team and is invited to the Audit Committee on all sustainability meetings. The approval process for major investments and capital expenditures, acquisitions and/or divestitures includes sustainability considerations in the assessment. The CSO is also responsible for Hexagon's Sustainability department.

Hexagon's compliance function, overseen by the Chief Compliance Officer (CCO), operates independently and maintains direct access to the Board of Directors and Audit Committee leadership. The CCO routinely reports to these bodies on compliance matters, training activity, regulatory developments, and other pertinent activities of interest. This reporting mechanism ensures that compliance considerations are seamlessly integrated into strategic decision-making processes. [...] The Group Compliance Officer together with the Division and Regional Compliance Officers and assisted by a large network of selected compliance coordinators manage and lead the operational implementation of the Ethics and Compliance System within all Hexagon entities.

Governance Hexagon's compliance function, overseen by the Chief Compliance Officer (CCO), operates independently and maintains direct access to the Board of Directors and Audit Committee leadership. The CCO routinely reports to these bodies on compliance matters, training activity, regulatory developments, and other pertinent activities of interest. This reporting mechanism ensures that compliance considerations are seamlessly integrated into strategic decision-making processes. [...] The Hexagon compliance network provides guidance, advice, and supports all employees on any issue related to compliance. [...] Incentives and disciplinary measures Hexagon looks for ways to enforce its compliance standards through incentives for ethical behaviour and disciplinary measures for violations. This approach ensures accountability and promotes a culture where integrity and compliance are valued and rewarded. [...] Supplier Engagement Programs Hexagon is committed to fostering strong, long- lasting relationships with its suppliers through various engagement programmes. These initiatives are designed to recognise and reward supplier performance, provide financial incentives, and offer training and capacity-building opportunities. [...] Supplier audits In 2024, Hexagon reviewed 31 of its key suppliers through supplier audits. The purpose of these audits was to ensure that the suppliers live up to the expectation on environmental stewardship of Hexagon and to prevent any forced labour, child labour or human trafficking within the value chain. Of the 31 audits of new and existing suppliers, 15 were of suppliers in risk areas. Risk areas were considered as areas defined by the United Nations Environment Programme Finance Initiative (UNEPFI) and Transparency International, considering both environmental and social risks. The total number of suppliers in risk areas is 80, and all have been audited in the past three years. During 2024, no major non- conformances were found in the audits. When existing suppliers fail to comply with Hexagon's compliance requirements, Hexagon engages with the supplier and conducts an impact assessment to understand the root cause. Appropriate follow-up actions consist of taking suitable actions to ensure that the issue will not be repeated. Should infringements be deemed significant and intentional, Hexagon will terminate the supplier contract and seek an alternative sourcing option. Key suppliers of manufacturing entities are evaluated through internal formal visits, reviews, and assessments to ensure that they strictly follow the Supplier Code. Third-party assessment is used in cases where an issue cannot be verified directly with the supplier.

Hexagon's compliance function, overseen by the Chief Compliance Officer (CCO), operates independently and maintains direct access to the Board of Directors and Audit Committee leadership. The CCO routinely reports to these bodies on compliance matters, training activity, regulatory developments, and other pertinent activities of interest. This reporting mechanism ensures that compliance considerations are seamlessly integrated into strategic decision-making processes. [...] The Group Compliance Officer together with the Division and Regional Compliance Officers and assisted by a large network of selected compliance coordinators manage and lead the operational implementation of the Ethics and Compliance System within all Hexagon entities.

# ESG governance

###### Environmental, social and governance (ESG and sustainability) topics

- The main responsibility for sustainability at Hexagon lies within the Chief Strategy Officer (CSO) with oversight from the Board of Directors and Executive Leadership Team accountability.

- The Hexagon Audit Committee is the guidance body for sustainability-related business at Hexagon.

- Relevant ESG topics are reported and reviewed in the Quarterly Business Review (QBR) for all Hexagon's divisions.

###### ESG accountability and governance encompasses the entire Hexagon organisation
Hexagon champions compliance with recognised principles of corporate governance, which are used as the foundation for sustainability management. Management of ESG topics is embedded across Hexagon's businesses, through the divisional units, operating functions and entities. This means that ESG criteria is included across the group functions to ensure the relevant sustainability topics are addressed by the teams that are best positioned to improve each given area.

In 2023, Hexagon significantly strengthened its sustainability organisation by introducing a clear organisational structure and responsibilities throughout the company. Each division has clearly allocated and mandated the responsibilities of sustainability.

Furthermore, sustainability has also been an integral part of the quarterly Business Reviews for all Divisions. The governance of sustainability is distributed as follows:

The Board of Directors (BoD) has the ultimate responsibility for Hexagon's sustainability strategy and ESG governance. The BoD is informed on relevant sustainability topics in all meetings, and it approves major changes to Hexagon's sustainability framework, including updates to ESG targets.

The Audit committee assesses risks and opportunities of strategic importance related to sustainability. It adopts appropriate measures to ensure company-wide implementation of the sustainability framework. The Audit committee also oversees Hexagon's ESG management and internal controls.

The ESG Steering Committee is formed by representatives from each of the divisions and key corporate functions. Its main purpose is to discuss topics of company-wide materiality. After prioritising needs, the key initiatives and investments are proposed to the Executive Leadership team.

The CSO oversees Hexagon's sustainability topics. The CSO is a member of the Hexagon Executive Leadership team and is invited to the Audit Committee on all sustainability meetings. The approval process for major investments and capital expenditures, acquisitions and/or divestitures includes sustainability considerations in the assessment. The CSO is also responsible for Hexagon's Sustainability department.

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The Head of Sustainability leads the Hexagon Sustainability department. The Head of Sustainability reports to the CSO on Hexagon's sustainability topics, including the ESG strategy. The Head of Sustainability is part of the QBR and regularly informs the Hexagon Executive Leadership team on sustainability matters.

The Sustainability department of Hexagon AB is responsible for defining the group's sustainability strategy, including the specific targets. The department closely monitors any developments concerning sustainability by engaging with investors and analysts, customers, nongovernmental organisations and policy makers. All existing and new ESG programmes are supported by the Sustainability department of Hexagon AB. This includes designing the structure and processes, and developing the tools and trainings needed to address overarching sustainability topics for Hexagon's businesses. The implementation of the net-zero roadmap lies with the Sustainability department, and it also governs the purchase of credits related to renewables and carbon reduction.

In coordination with the Divisional Sustainability Council and the specific business functions, the Sustainability department supports the development and implementation framework of the related ESG initiatives. Responsibility for sustainability reporting and progress tracking is a key priority of the Divisional Sustainability responsible. All Divisional Sustainability Responsibles have a governance reporting line to their associated divisional President and a functional dotted reporting line to the Head of Sustainability. The Divisional Presidents are essentially responsible for the sustainability topics in their specific division. They are supported by their respective Divisional Sustainability Responsible to ensure progress and reach the goals.

###### ESG governance

- The main responsibility for sustainability at Hexagon lies within the Chief Strategy Officer (CSO) with oversight from the Board of Directors and Executive Leadership Team accountability.

- The Hexagon Audit Committee is the guidance body for sustainability-related business at Hexagon.

- Relevant ESG topics are reported and reviewed in the Quarterly Business Review (QBR) for all Hexagon's divisions.

###### ESG accountability and governance encompasses the entire Hexagon organisation
Hexagon champions compliance with recognised principles of corporate governance, which are used as the foundation for sustainability management. Management of ESG topics is embedded across Hexagon's businesses, through the divisional units, operating functions and entities. This means that ESG criteria is included across the group functions to ensure the relevant sustainability topics are addressed by the teams that are best positioned to improve each given area.

In 2023, Hexagon significantly strengthened its sustainability organisation by introducing a clear organisational structure and responsibilities throughout the company. Each division has clearly allocated and mandated the responsibilities of sustainability.

Furthermore, sustainability has also been an integral part of the quarterly Business Reviews for all Divisions. The governance of sustainability is distributed as follows:

The Board of Directors (BoD) has the ultimate responsibility for Hexagon's sustainability strategy and ESG governance. The BoD is informed on relevant sustainability topics in all meetings, and it approves major changes to Hexagon's sustainability framework, including updates to ESG targets.

The Audit committee assesses risks and opportunities of strategic importance related to sustainability. It adopts appropriate measures to ensure company-wide implementation of the sustainability framework. The Audit committee also oversees Hexagon's ESG management and internal controls.

The ESG Steering Committee is formed by representatives from each of the divisions and key corporate functions. Its main purpose is to discuss topics of company-wide materiality. After prioritising needs, the key initiatives and investments are proposed to the Executive Leadership team.

The CSO oversees Hexagon's sustainability topics. The CSO is a member of the Hexagon Executive Leadership team and is invited to the Audit Committee on all sustainability meetings. The approval process for major investments and capital expenditures, acquisitions and/or divestitures includes sustainability considerations in the assessment. The CSO is also responsible for Hexagon's Sustainability department.

The Head of Sustainability leads the Hexagon Sustainability department. The Head of Sustainability reports to the CSO on Hexagon's sustainability topics, including the ESG strategy. The Head of Sustainability is part of the QBR and regularly informs the Hexagon Executive Leadership team on sustainability matters.

The Sustainability department of Hexagon AB is responsible for defining the group's sustainability strategy, including the specific targets. The department closely monitors any developments concerning sustainability by engaging with investors and analysts, customers, nongovernmental organisations and policy makers. All existing and new ESG programmes are supported by the Sustainability department of Hexagon AB. This includes designing the structure and processes, and developing the tools and trainings needed to address overarching sustainability topics for Hexagon's businesses. The implementation of the net-zero roadmap lies with the Sustainability department, and it also governs the purchase of credits related to renewables and carbon reduction.

In coordination with the Divisional Sustainability Council and the specific business functions, the Sustainability department supports the development and implementation framework of the related ESG initiatives. Responsibility for sustainability reporting and progress tracking is a key priority of the Divisional Sustainability responsible. All Divisional Sustainability Responsibles have a governance reporting line to their associated divisional President and a functional dotted reporting line to the Head of Sustainability. The Divisional Presidents are essentially responsible for the sustainability topics in their specific division. They are supported by their respective Divisional Sustainability Responsible to ensure progress and reach the goals.