IONOS : Sustainabillity Report 2023

Sustainability Report 2023

© IONOS GROUP SE 2024

CONTENTS

FOREWORD	3
KEY ESG FIGURES	4
IONOS BUSINESS MODEL	5
OUR APPROACH	6
SUSTAINABILITY FRAMEWORK	6
SUSTAINABILITY MANAGEMENT	7
OUR TARGETS	8
STAKEHOLDER ENGAGEMENT	11
ESG MATERIALITY	12
PLANET	14
OUR APPROACH	14
RENEWABLE ENERGY	14
SUSTAINABLE DESIGN	15
SUSTAINABLE OPERATIONS	16
CIRCULAR ECONOMY	16
IONOS 2030 CLIMATE STRATEGY	16
PEOPLE	17
OUR APPROACH	17
DIVERSITY AND INCLUSION	18
TRAINING & DEVELOPMENT	19
TALENT ATTRACTION & RETENTION	20
HEALTH & SAFETY	21
CORPORATE CITIZENSHIP	22
DIGITAL RESPONSIBILITY	23
OUR APPROACH	23
INFORMATION SECURITY	24
DATA PROTECTION	25
ARTIFICIAL INTELLIGENCE	26
CUSTOMER	27
OUR APPROACH	27
CUSTOMER CARE	27
DIGITAL PARTICIPATION	28
RESPONSIBLE GOVERNANCE	29
OUR APPROACH	29
CORPORATE GOVERNANCE	30
HUMAN RIGHTS & SUPPLY CHAIN	32
EU TAXONOMY	33
FACTS & FIGURES	36
ABOUT THIS REPORT	47

2

FOREWORD

As the European market leader in web hosting1 we are well aware of our responsibility as a corporate citizen. Sustainability is a core element of our corporate ethos, guiding our commitment to not only reduce our environmental footprint but also to cultivate a culture of inclusivity and digital responsibility. Our data centers, powered by 100% renewable electrici- ty, have embodied our dedication to environmental sustainability and energy efficiency for many years.

In 2023, we achieved a significant milestone with the launch of our 2030 Climate Strategy. This ambitious strategy underscores our commitment to further decrease carbon emissions, harness renewable energy directly at our data centers through photovoltaic technology and broaden our environmental initiatives to encompass all office locations.

Additionally, this year marked a significant step forward in enhancing our company's inclusivity and diversity. We introduced a comprehensive in-house diversity training program, now mandatory for all leadership, reinforcing our commitment to an inclusive workplace that fosters innovation and mirrors the diversity of the communities and customers we serve.

Recognizing that a sustainable and equitable digital landscape requires a broader approach, we are steadfast in our commitment to our five pillars of sustainability: Planet, People, Digital Responsibility, Customer, and Responsible Governance. Our journey towards integrating sustainability into every aspect of our operations is ongoing, and we are committed to investing in initiatives that bring us closer to achieving our comprehensive sustainability ob- jectives.

Sincerely,

Achim Weiß

CEO, IONOS Group SE

1 In terms of the number of hosted domains (approx. 12 million in Europe as at 31.12.2023)

3

KEY ESG FIGURES

	2019
PLANET (DATA CENTERS)
Share of renewable electricity (%)	100
Share of renewable energy (%)	98,9
Energy management system ISO 50001 coverage (%)	100
Power Use Efficiency (PUE) weighted	1,52
Energy consumption (MWh)	118157,7
Energy intensity (MWh/€ revenue million)	132,7
IT equipment refurbished (tons)	48,8
IT equipment recycled (tons)	121,6

	2022
PLANET (OFFICES)
Share of renewable electricity (%)	79,8
Energy consumption (MWh)	4098,5
PLANET (ALL OWN FACILITIES)
Share of renewable electricity (%)	99,5

2020

100

98,9

100

1,48

115133,2

121,4

79,8

80,3

2023

82,0

6569,5

99,5

2021	2022	2023
100	100	100
99,4	99,3	99,2
100	100	100
1,47	1,46	1,43
115087,5	120751,6	121016,8
104,3	93,4	85,0
25,3	30,5	33,7
103,4	28,6	53,9

PEOPLE

Employee headcount

% Women overall

Women in management (%)

Number of nationalities

Adjusted gender pay gap %

Managers trained on diversity (%)

Average tenure by years

DIGITAL RESPONSIBILITY

Information security management system coverage (%)

RESPONSIBLE GOVERNANCE

Employees trained on Code of Conduct (%)

Employees trained on Anti-Bribery & Corruption (%)

4210	4364
31,0	31,0
26,0	26,0
69	72
n/a	1,56
n/a	75,8
6,0	6,5
2023
84,0
83,5
83,5

Additional Detail on the KPIs can be found in the Facts & Figures section of this report.

4

IONOS BUSINESS MODEL

IONOS Group SE is an international digitalization partner and reliable cloud enabler for small and medium-sized enterprises (SMEs), but also for individual users (e.g., freelancers) and larger corporate customers. It offers a comprehensive product portfolio in Web Presence & Productivity as well as Cloud Solutions. This portfolio is supported by first-class customer care and infrastructure. Thus, the group is primarily active in the market for web hosting and cloud applications.

In the area of Web Presence & Productivity, IONOS Group SE offers professional design solutions for internet presences, such as domain registration, web hosting, website builders with artificial intelligence, and dedicated servers. This is supported by additional productivity products (e.g., e-commerce applications, email and marketing applications) and additional services such as search engine optimization, business applications, or storage and backup solutions.

The Cloud Solutions offering includes both public and private cloud solutions with a wide range of services in the areas of Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS). The Cloud Solutions product range from IONOS also includes a "Compute Engine" solution (a flexible IaaS solution for cloud computing applications), storage and backup, network services, managed services, and database solu- tions.

The products and solutions are developed in the company's own development centers or in cooperation with partner companies and operated on over 100,000 servers in 32 data cen- ters, including 11 owned data centers.

The target group-specific marketing of the product portfolio is carried out not only through the international main brand IONOS but also through differently positioned brands such as STRATO, arsys, fasthosts, home.pl, and World4You. In addition, there are several brands with extensive domain expertise like United Domains, InterNetX, and sedo, which offer professional services around active domain management. The brand we22 specializes in website builders as well as the construction of websites for private and small business customers.

5

OUR APPROACH

SUSTAINABILITY FRAMEWORK

IONOS is committed to embedding sustainability into our business practices because we view this as a long-term creator of value and as a win-win, not only for our business but also for the environment, our employees, our customers, and the communities where we oper- ate.

Our sustainability approach is aligned within five distinct pillars:

• Planet:
  We embed environmental sustainability across our operations to continuously reduce our environmental impact.
• People:
  We are committed to fostering a diverse and inclusive culture, where employees are valued, can grow professionally whilst striving to create a great place to work.
• Digital Responsibility:
  We are committed to ensuring the highest standards for data privacy and information secu- rity, whilst contributing to a safer and more accessible web.
• Customer:
  We empower and enable small businesses and entrepreneurs to be successful online, help- ing them to grow whilst providing the best customer and sustainable services possible.
• Responsible Governance:
  We enforce stringent governance standards to ensure responsible business practices, align- ing with our sustainability commitments.

The United Nation´s Sustainable Development Goals (SDGs) represent a commitment to deliver on global goals for people and the planet by 2030. To support the advancement of sustainable development, IONOS has identified and prioritized four SDGs which align with our business model, sustainability management and where we can have the greatest impact .

• Climate Action SDG 13:
  We take urgent action to combat climate change through reducing our carbon emis-

sions and environmental impact from our data center operations.

• Gender Equality SDG 5:
  We commit to achieving gender equality and empowering women through a culture of inclusion, increasing women in leadership as well as technical roles.

◼ Decent Work & Economic Growth SDG 8:

Promoting inclusive and sustainable economic growth by empowering individuals, en- trepreneurs, and SMB´s and helping them to succeed online.

• Industry, Innovation, and Infrastructure SDG 9:
  Building resilient infrastructure and fostering innovation through our data center infrastruc- ture as facilitators for economic growth and connectivity.

Memberships, Partnerships & External Sustainability Commitments

• WMWare Zero Carbon Committed Partner
• Carbon Disclosure Project
• Charter of Diversity
• Gaia-XTechnical Committee

6

SUSTAINABILITY MANAGEMENT

IONOS has integrated Environmental, Social, and Governance (ESG) management into its business operations and strategic planning. The Chief Operating Officer (COO) of IONOS Holding SE holds primary responsibility for ESG matters within the organization. The Management Board of IONOS Holding and IONOS Group SE convenes quarterly to discuss ESG, covering various areas such as strategy formulation and target setting,

To ensure effective implementation and oversight of sustainability initiatives, IONOS has established a dedicated ESG Team, which reports directly to the COO. This team plays a key role in advising and supporting various departments across the organization in aligning their activities with ESG objectives.

Furthermore, the execution and realization of ESG objectives are facilitated by the ESG Committee, composed of representatives responsible for core ESG pillars: Planet, People, Digital Responsibility, Responsible Governance, and Customer. The ESG Committee collaborates with additional departments such as Marketing and Investor Relations, leveraging their expertise to enhance the company's overall ESG strategy.

7

OUR TARGETS

In alignment with our sustainability framework, we have defined targets linked to our Envi- ronmental, Social, and Governance (ESG) pillars, material topics, and strategic objectives. These serve as the foundation for driving our sustainability initiatives, featuring a mix of short to medium-term actions and targets. Our approach ensures a comprehensive strategy, with activities monitored annually and a review of targets and actions for appropriateness and alignment with evolving sustainability criteria. Progress is measured through Key Performance Indicators (KPIs), enabling us to maintain a clear focus on achieving our sustainability objectives.

Planet targets

DATA CENTERS

OFFICES

VALUE CHAIN

KEY TARGETS

100% renewable electricity use long-term (2030)

>50% data centers using solar energy on-site (2030)

• 55% reduction in diesel lifecycle emissions (tons) (2030)
  1.41 PUE weighted average (2024)
  Establish environmental metrics and management systems (2024)
  100% renewable electricity use (2030)
  100% electric vehicles in carpool (2030)
  100% renewable electricity use in colocations (2030)
  90% data center suppliers by spend committed to climate targets (2030)

BASELINE

100% (2019)

0% (2019)

324,7 (2019)

1,52 (2019)

n/a

79,8 (2022)

0,7% (2022)

81,1% (2022)

n/a

2023

100%

27%

224,1

1,43

Initiated

82%

8,6%

91,3%

Initiated

8

Planet Actions

KEY TARGETS

100% renewable electricity use

50% data centers using solar energy on-site

55% reduction in diesel lifecycle emissions

1.41 PUE weighted average

Establish environmental metrics beyond energy and carbon for data centers

100% renewable electricity use

100% electric vehicles in carpool

100% renewable electricity use in colocation data centers

90% data center suppliers by spend committed to climate targets

Measure and mitigate Scope 3 carbon in areas of significant data center impact

KEY LEVERS

Renewable energy sourcing

Onsite photovolatics

Renewable fuel switching

Energy efficiency measures

Environmental management system roll-out

Renewable energy sourcing

Switching to electric vehicles

Renewable energy sourcing

Suppliers committing to climate targets

Establish Scope 3 baselines

2022 & 2023 KEY ACTIONS

100% renewable electricity use

UK data center (2022)

USA data center (2023)

French data center (2023)

UK data center (2022)

New energy efficient UK data center (2022)

Modernizations of cooling systems at multiple data centers (2023)

ISO 14001 Spanish Data Center (2023)

USA office (2022)

n/a

Colocations evaluated for current and future renewable electricity use (2023)

Renewable energy certificates purchased for two colocations (2023)

Collection of supplier data in sustainability supplier platform (2023)

Lifecycle inventory database purchased as initial step (2023)

PLANNED ACTIONS

Long-term commitment to maintain target

Continued evaluation of photovoltaics installation at existing and new data centers

Continued evaluation of biofuels use at existing and new sites

Continued operation of energy management system with related targets and measures

All own data centers certified to ISO14001

Water Use Efficiency (WUE) established

Feasibility evaluation of locations to switch to renewable electricity where and when possible

Establishment of new sustainable company car policy

Long-term switch to colocation suppliers only using 100% renewable electricity

Short-term favoring colocations with renewable electricity or related targets

Utilise supplier sustainability software to assess suppliers for climate relevant information

Continue to build upon and improve scope and quality of Scope 3 data

9

ESG Targets & Actions

TOPIC

DIVERSITY & INCLUSION

TALENT ATTRACTION & RETENTION

INFORMATION SECURITY

ARTIFICIAL INTELLIGENCE

CORPORATE GOVERNANCE

TARGET

Leadership trained on diversity & inclusion

Women in management

Reducing employee turnover

Increasing employee engagement

Information Security Management System (ISMS) coverage

Employees trained on artificial intelligence

Employees trained on code of conduct

Employees trained on anti- bribery & corruption

KEY ACTIONS CURRENT & PLANNED

Development and roll-out of first module (2023)

Development and roll-out of second module (2024)

Unconscious bias trainings for HR (2023)

Women Explore program (2023)

Continue employee engagement surveys and translate results into measures

Maintain ISMS coverage through regular audits and continuous improvement

Development and roll-out of AI training (2024)

Training roll-out

Training roll-out

TARGET

80%

28%

Continual

improvement

80%

25%

80%

80%

TARGET YEAR

Annual

2030

Annual

Annual

2024

Annual

Annual

2023

75,8%

26%

12,6%

84%

n/a

83,6%

83,6%

10