Environmental Strategy and Management Systems

NORMA Group’s environmental strategy

To further structure and enforce its efforts in the area of environmental management, NORMA Group developed an environmental strategy in 2018.

The environmental strategy is based on the material topics identified in the materiality analysis conducted in accordance with the German Commercial Code, namely climate, water and waste generation STAKEHOLDERS AND MATERIALITY. The strategy clusters each of these topics into three levels: At the core is the management within NORMA Group’s own operations. The second level targets impact assessments along the value chain, followed by the outer level of pilot projects. This three-level approach allows the company to focus on those operations that lie in its direct sphere of influence while not neglecting impacts that arise in its supply chain or during the products’ use phase.

NORMA Group is continuously working on the further development of its existing environmental strategy as part of a CR strategy. The targets set in the environmental strategy have been integrated into the CR Roadmap. CR TARGETS Detailed approaches to the three different topics will be explained in the following chapters.

Certification of manufacturing sites according to ISO 14001

The increasing importance of environmental management in production processes is reflected in the increasing scarcity of resources, stricter regulatory requirements and the expectations of customers, capital markets and society towards the company. If not managed systematically and implemented throughout the entire Group, these trends might translate into risks for the company.

As of December 31, 2023, 92.0% (23 of 25) of these manufacturing sites were certified according to ISO 14001. The locations that had not been certified on the reporting date are the subsidiary Connectors in Switzerland and

the new Lithia Springs site in the USA, which opened in August 2023. The principles laid down in NORMA Group’s global ENVIRONMENTAL POLICY form the basis for management in accordance with ISO 14001.

Responsibility for the environmental management systems and the associated topics regarding climate, water and waste at NORMA Group’s manufacturing locations lies with the department for Environment, Health and Safety (EHS department), which is staffed with qualified personnel at all production sites. On the global level, EHS management reports to the Management Board member that is responsible for operations. CORPORATE GOVERNANCE REPORT

This structure allows for developing and implementing specific measures in accordance with local environmental challenges on the one hand and site-specific production processes on the other. To ensure compliance with ISO 14001 standards, sites are audited regularly every three years by external specialists. Progress on the achievement of targets in the areas of climate, water and waste is evaluated in regular management reviews on a local level and through the reporting of aggregated data to the Management Board on a global level.

Along the supply chain, similar environmental risks as for NORMA Group itself exist because most suppliers also come from the manufacturing industry. Assessment and verification of these potential sustainability and financial risks are the responsibilities of the purchasing department. SUSTAINABILITY IN PURCHASING PURCHASING AND SUPPLIER MANAGEMENT