Sustainability risks (IRO)

TEST CHANGE: In the course of the ESRS materiality analysis for the CSRD reporting purposes, the impacts of material sustainability matters such as climate change, circular economy, own workforce, and business practices were systematically analyzed. This analysis was performed on the basis of double materiality taking into account both financial and impact factors. A key focus was on climate change and reducing CO2 emissions by measures such as switching to renewable energy sources, increasing energy efficiency, and increasingly using biomass to produce energy. The materiality analysis was performed in 2024 and not renewed in 2025, as HEINZEL GRROUP’s business model and its sustainability risks have not significantly changed and the regulatory requirements of the Omnibus package have not been finalized by the regulator.At the same time, climate transition risks such as rising CO2 costs, stricter regulatory requirements and physical climate risks were assessed based on different climate change scenarios in 2025. Although there are no material physical climate risks in the short and medium term, temperature- and water-related climate risks as well as changes in raw material supply can have a negative impact on Heinzel Group in the long term. However, the results of the physical climate risk and climate scenario analysis show that adaptation measures will become a focus at a later time.