Bystronic AG

Sustainability is high on the agenda of the Board Board of Directors of Directors. From there, it is cascaded through the operational management committees and executed Executive

**Committee**

###### by the Sustainability Council.

**Extended Executive**
**Committee**

**GRI 2-9** **GRI 2-10** **GRI 2-11** **GRI 2-12** **GRI 2-13** **GRI 2-14** **Sustainability Council**

|Board of Directors Executive Committee Extended Executive Committee Sustainability Council|Board of Directors|Col3|
|---|---|---|
||||
||Exec Comm|utive ittee|
||||
||Extended Executive Committee||
||Sustainability Council||
||||

**GRI 2-15** **GRI 2-16** **GRI 2-17**

###### Organizational and sustainability governance

**GRI 2-23** **GRI 2-24** **GRI 2-26**

The Board bears responsibility for the overall

management, supervision, and control of the

this Sustainability Report have been presented

to the Board.

The next highest governance body is the

Executive Committee, consisting of the CEO,

CFO, Chief Service Officer, Chief Digital Officer,

and the regional Presidents, followed by the Ex

Extended Executive Committee consisting of the

Executive Committee members plus the heads

of the major corporate areas of responsibility

including Human Resources, Operations, Mar

keting, and Strategy.

The CEO oversees Bystronic's integrated

sustainability strategy including all measures to

mitigate climate change related to the commit

ments in line with the Paris agreement and GHG

emission reduction targets. The CEO receives

regular reports on sustainability issues from the

Chief ESG Officer.

In 2021, Bystronic established a Sustaina

bility Council, led by the Chief ESG Officer. This

Council consists of delegates from various func

tions and regions. The objective of the Council is

to decentralize the management of ESG topics

and to implement the ESG strategy. In 2021, the

focus of the Council was on setting targets and

the sustainability strategy. Next, the Council

will focus on the execution of the sustainability

ini­tiatives and various other topics within the

framework of ongoing projects.

The overall responsibility for sustainability,

including climate-related issues, has been dele

gated to the Chief ESG Officer.

The Board of Directors (Board) is Bystronic AG's

highest governance body. All its members are

non-executive. The Board may change its com

position based on an annual performance review

and proposes new candidates to the Annual

General Meeting of shareholders. As prescribed

by Bystronic's Organizational Regulations, the

Board reviews its own performance as well as the

performance of its committees. More detailed

information about Bystronic's Board composition

[can be found here.](https://ir.bystronic.com/en/corporate-governance/board-of-directors.php)

Group and its executive management, and it

monitors compliance with the applicable legal

provisions. It makes decisions on the strategic

targets of the Group and the financial and hu

man resources necessary to achieve the targets.

In doing so, the Board reviews the strategy and

targets, in particular in the context of Bystronic's

sustainability endeavors. In addition, the Board

determines the values and standards of the

Group and ensures that the duties towards share

holders and other stakeholders are complied with.

The Board and its Committees convene on a

regular basis. These meetings can be supple

mented by additional meetings (in person or via

conference call). The strategic transformation

focusing on the sheet metal processing seg

ment (Bystronic) and the divestment of all other

business operations announced by Conzzeta in

late 2019 was accompanied by a structural re

focusing of Bystronic's sustainability approach.

Bystronic's Board sets out the overall direction

for Bystronic's integrated sustainability strate

gy and receives regular ESG updates from the

Chief ESG Officer. The reporting process and

Sustainability is high on the agenda at Bystronic. It cascades throughout all levels of the organization, from the Board of Directors, the Chief Executive Officer, the Chief ESG Officer and the Sustainability Council, all the way to the corporate functions and plant managers that coordinate sustainability initiatives at the business level. [...] The Board of Directors is responsible for the supervision and control of the Group and its management and monitors compliance with regulations. This includes oversight of risks and opportunities, including climate-related topics. The Board decides on the Group's strategic targets and the financial and human resources necessary to achieve the targets. Additionally, the Board reviews the strategy and targets in the context of sustainability. The Board is also responsible for reviewing and approving the reported information (incl. material topics). [...] At least one Board member is closely involved in all sustainability matters via regular dialogue with the Chief ESG Officer. At least two Board members are also members of Boards of other companies with long-standing experience in sustainability and climate target setting. [...] The Chief ESG Officer oversees sustainability issues, including climate-related activities, and coordinates the overall sustainability strategy and implementation of action plans with various corporate functions. The Head of Operations is responsible for GHG emissions at the operational level (Scope 1 and 2), while the Sustainable Engineering Function within R&D and the Head of Global Supply Chain are accountable for indirect emissions (Scope 3). The Chief ESG Officer, who reports directly to the CEO, also leads Bystronic's Sustainability Council. [...] The Sustainability Council was established at the end of 2021 to implement Bystronic's integrated sustainability strategy. It is composed of delegates from various corporate functions and regions, ensuring diverse and inclusive representation. Its objective is to decentralize the sustainability strategy and implement action plans. The Council convenes monthly.

Sustainability is high on the agenda of the Board Board of Directors of Directors. From there, it is cascaded through the operational management committees and executed Executive

**Committee**

###### by the Sustainability Council.

**Extended Executive**
**Committee**

**GRI 2-9** **GRI 2-10** **GRI 2-11** **GRI 2-12** **GRI 2-13** **GRI 2-14** **Sustainability Council**

|Board of Directors Executive Committee Extended Executive Committee Sustainability Council|Board of Directors|Col3|
|---|---|---|
||||
||Exec Comm|utive ittee|
||||
||Extended Executive Committee||
||Sustainability Council||
||||

**GRI 2-15** **GRI 2-16** **GRI 2-17**

###### Organizational and sustainability governance

**GRI 2-23** **GRI 2-24** **GRI 2-26**

The Board bears responsibility for the overall

management, supervision, and control of the

this Sustainability Report have been presented

to the Board.

The next highest governance body is the

Executive Committee, consisting of the CEO,

CFO, Chief Service Officer, Chief Digital Officer,

and the regional Presidents, followed by the Ex

Extended Executive Committee consisting of the

Executive Committee members plus the heads

of the major corporate areas of responsibility

including Human Resources, Operations, Mar

keting, and Strategy.

The CEO oversees Bystronic's integrated

sustainability strategy including all measures to

mitigate climate change related to the commit

ments in line with the Paris agreement and GHG

emission reduction targets. The CEO receives

regular reports on sustainability issues from the

Chief ESG Officer.

In 2021, Bystronic established a Sustaina

bility Council, led by the Chief ESG Officer. This

Council consists of delegates from various func

tions and regions. The objective of the Council is

to decentralize the management of ESG topics

and to implement the ESG strategy. In 2021, the

focus of the Council was on setting targets and

the sustainability strategy. Next, the Council

will focus on the execution of the sustainability

ini­tiatives and various other topics within the

framework of ongoing projects.

The overall responsibility for sustainability,

including climate-related issues, has been dele

gated to the Chief ESG Officer.

The Board of Directors (Board) is Bystronic AG's

highest governance body. All its members are

non-executive. The Board may change its com

position based on an annual performance review

and proposes new candidates to the Annual

General Meeting of shareholders. As prescribed

by Bystronic's Organizational Regulations, the

Board reviews its own performance as well as the

performance of its committees. More detailed

information about Bystronic's Board composition

[can be found here.](https://ir.bystronic.com/en/corporate-governance/board-of-directors.php)

Group and its executive management, and it

monitors compliance with the applicable legal

provisions. It makes decisions on the strategic

targets of the Group and the financial and hu

man resources necessary to achieve the targets.

In doing so, the Board reviews the strategy and

targets, in particular in the context of Bystronic's

sustainability endeavors. In addition, the Board

determines the values and standards of the

Group and ensures that the duties towards share

holders and other stakeholders are complied with.

The Board and its Committees convene on a

regular basis. These meetings can be supple

mented by additional meetings (in person or via

conference call). The strategic transformation

focusing on the sheet metal processing seg

ment (Bystronic) and the divestment of all other

business operations announced by Conzzeta in

late 2019 was accompanied by a structural re

focusing of Bystronic's sustainability approach.

Bystronic's Board sets out the overall direction

for Bystronic's integrated sustainability strate

gy and receives regular ESG updates from the

Chief ESG Officer. The reporting process and

###### Sustainability governance

###### We recognize that effective gover­ nance is crucial to achieving our 2030 sustainability mid-term targets. Since the start of our sustainability journey, we have been taking steps to con­ tinuously improve our approach to governance.

We have set specific goals, established corpo­rate policies, and aligned our sustainability dis­closures to reporting frameworks such as the GRI [1], TCFD [2], and CDP [3]. In 2021, the Board of Di­rectors decided to link executive compensation with sustainability goals; and in 2023, it commit­ted to science-based emission reduction targets.

###### Oversight

Sustainability is high on the agenda at Bystronic. It cascades throughout all levels of the organiza­tion, from the Board of Directors, the Chief Exec­utive Officer, the Chief ESG Officer and the Sus­tainability Council, all the way to the corporate functions and plant managers that coordinate sustainability initiatives at the business level.

###### Board of Directors

Our Board of Directors (the Board) is responsible for the supervision and control of the Group and its management and monitors compliance with regulations. This includes oversight of risks and opportunities, including climate-­related topics. The Board decides on the Group's strategic targets and the financial and human resources necessary to achieve the targets. Additionally, the Board reviews the strategy and targets in the context of sustainability. The Board is also responsible for reviewing and approving the re­ported information (incl. material topics). The Board convenes as often as business requires, but no fewer than five times annually. The Board is informed in writing and verbally of the compa­ny's strategies, plans, and results. This includes regular updates on sustainability improvements and partnership progress.

At least one Board member is closely involved in all sustainability matters via regular dialogue with the Chief ESG Officer. At least two Board members are also members of Boards of oth­er companies with long-standing experience in sustainability and climate target setting. Further information about the Board can be found in the Corporate Governance Report within the 2023 Annual Report. See www.bystronic.com.

|Board of Directors Executive Committee Extended Executive Committee Sustainability Council|Board of Directors|Col3|
|---|---|---|
||||
||Executive|Committee|
||||
||Extended Executive Committee||
||Sustainability Council||
||||

###### Chief Executive Officer

As the driving force behind Bystronic's integrated sustainability strategy, the CEO is deeply com­mitted to all climate change mitigation-related commitments. This includes Bystronic's SBTi [1] setting and defined GHG emission [2] reduction targets. Bystronic's CEO receives regular reports on sustainability issues from the Chief ESG Of­ficer, ensuring a comprehensive and informed approach.

###### Chief ESG Officer

The Chief ESG Officer oversees sustainability issues, including climate-related activities, and coordinates the overall sustainability strategy and implementation of action plans with various corporate functions. The Head of Operations is responsible for GHG emissions at the operational level (Scope 1 and 2), while the Sustainable En­gineering Function within R&D and the Head of Global Supply Chain are accountable for indirect emissions (Scope 3). The Chief ESG Officer, who reports directly to the CEO, also leads Bystron­ic's Sustainability Council.

###### Sustainability Council

The Sustainability Council was established at the end of 2021 to implement Bystronic's inte­grated sustainability strategy. It is composed of delegates from various corporate functions and regions, ensuring diverse and inclusive rep­resentation. Its objective is to decentralize the sustainability strategy and implement action plans. The Council convenes monthly.

In this report, we outline our ambitions, ap­proach, and actions to advance sustainability for our industry in line and beyond compliance with sustainability regulation and disclosure frameworks. Above all, we are committed to enabling our ecosystem and stakeholders to advance on their sustainable journeys.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]All of our community engagement regarding climate is in line with the Paris agreement.