Transition plan for climate change mitigation

In line with the Paris Agreement's 1.5°C pathway to limit global warming, Heinzel Group has developed a transition plan for climate mitigation to significantly reduce its greenhouse gas emissions. Based on a comprehensive assessment of all relevant direct and indirect emission sources, defossilization pathways were developed, and the corresponding measures were integrated into corporate planning. In 2025, the planned actions were reassessed regarding their timing and expected impact in light of ongoing market volatility in the industry. This review confirmed both the targets and the overall transition plan.Heinzel Group aims to reduce its Scope 1 and Scope 2 emissions by at least 42% and its Scope 3 emissions by at least 25% by 2030.The company plans to reduce its total emissions by 90% by 2050, using 2021 as the base year. Progress has already been made; since 2021, emissions from Scope 1 and Scope 2 have been reduced by 39.9%, almost reaching the 2030 target already in 2025.The measures to achieve these goals include both technological innovations and strategic changes at its sites. A key lever for defossilization is the replacement of fossil fuels with renewable alternatives that address Scope 1 emissions. In addition, the company is investing in increasing energy efficiency within its production processes in order to reduce energy consumption and the associated emissions in the long term.An important lever for reducing Scope 2 emissions is the defossilization of purchased energy. This includes supporting energy suppliers through guarantees of origin and longterm power purchase agreements (PPAs) to enable further investment in lowemission renewable energy sources.Starting in the 2030s, Heinzel Group plans to increasingly focus on new technologies, such as industrial heat pumps hydrogen, investments in further electrification, and carbon capture plants in order to reduce remaining emissions towards net-zero. The remaining 10% of residual emissions are to be offset with flagship carbon sink projects in accordance with guidelines such as the European Carbon Removal Framework. These measures have been specifically integrated into the corporate strategy to achieve climate targets in line with the science-based targets. Diagrams for the transition plan can be found in the Annual Report, chapter 3: Climate change & Renewable energy.The following defossilization levers have been identified to date: