Beiersdorf : Climate Transition Plan 2024

CLIMATE

TRANSITION

PLAN

OUR PATHWAY TO NET ZERO

CONTENT

Beiersdorf Aktiengesellschaft Beiersdorfstraße 1-9

22529 Hamburg, Germany

Tel.: + 49 40 4909-0, Fax: + 49 40 4909-3434

Internet: www.beiersdorf.de

CEO Statement	3
Our Climate Milestones	4
Emission Reduction Roadmap	5
Beiersdorf Group's GHG Emissions	6-7
Our Climate Targets	8
Key Actions of our Roadmap	9-16
Advocacy & Industry Collaboration	17-18
Financial Planning	19
Climate Governance	20
Beyond Value Chain Mitigation
& Neutralization	21

2

CEO Statement

It is the year 2024 and the fight against climate change is at a turning point. Will commitments turn into action? Will we succeed in redefining conventional value chains? Will we be able to transform entire industries?

Beiersdorf is here to declare that we are ready, willing, and able to take ambitious climate action. A declaration befitting of a world leader in its industries.

Our Group's Climate Transition Plan is the most long-term and comprehensive roadmap in the company's history. It lays out the program of how we will transform ourselves and become future-ready by cutting our emissions towards Net Zero in 2045. Across both business segments: Consumer and tesa. Across all brands. Across all regions. Across all functional levers. What is guiding us along this journey are three key convictions:

• Climate Action must be grounded in the science to limit global warming to 1.5°C. Therefore, we are proud to be one of the first companies in our industry to have a
  Net Zero target approved by the Science Based Targets initiative.
• Climate Action must be a business priority to make it reality. At Beiersdorf, our strategic ambition to lead in climate care and reinvent our iconic products is firmly anchored in our "Win With Care" strategy and lived as a priority by our teams every day.
• Climate Action must be transparent. That is why we are honored to be recognized with CDP's Triple A rating affirming our strong environmental efforts and corporate transparency.

Our Climate Transition Plan is more than a report. It is an invitation to all our partners along the value chain to join us in taking climate action. We are looking forward to shaping a climate caring future together.

VINCENT WARNERY

Chairman of the
Executive Board	Beiersdorf Executive Committee

3

Our Climate Milestones

Bolstered by a growing public consciousness regarding the urgency of addressing climate change, coupled with ongoing refinement of international standards governing target setting, emission tracking, and reporting, we have designated 2018 as the base year for our GHG reduction targets. Since then, we have made significant progress.

	Triple A Score by CDP -
Signatory of the UN	Consumer Business
	Segment
"Business Ambition
for 1.5° C"
		A LIST
		2022
		CLIMATE FORESTS WATER

2032 & Net Zero targets validated by SBTi

Release of Climate

Transition Plan

2018

2020

2023

2019

2022

2024

Base Year

Short-term 2025 climate targets validated by SBTi

100% electricity from

renewable sources

every year

Triple A Score	A Score for
by CDP -	Climate by CDP -
Consumer Business	tesa Business
Segment	Segment

A LIST

2023

CLIMATE FORESTS WATER

4

Emission Reduction Roadmap

Our Climate Transition Plan serves as our roadmap for achieving our mid-term GHG reduction targets and setting us on the path to Net Zero by 2045. We have identified the key actions to initiate in our decarbonization journey based on our assessment of technical and market readiness. Each of these actions will require sustained commitment and effort until we achieve Net Zero.

Recycled	Switch to	+
Packaging	Renewable Energy
Improve	Ingredients from	Increase Share of
Energy Efficiency	Sustainable Sources	Plant Feedstock

Product Format Shift

+

Transport Modes	Refill & Concentrated
Shift	Formulas
	Supplier & Industry
	Collaboration &
	Decarbonization

Zero Emission	Ingredients from	Ingredients from
Car Fleet & Transport	Upcycled Sources	Biotechnology
	Carbon Capture
	& Utilization

-90%

2018

2025

2032

2045

Beiersdorf Group's GHG Emissions in 2018

SCOPE 1, 2 & 3

Measuring our emissions forms the basis of our Climate Transition Plan, as understanding our impact is essential for taking effective action.

	5%
	Scope 1 & 2
Group GHG
95%
inventory by
Scope	Scope 3

	46%
Scope 1 & 2	Consumer
54%
emissions by
business segment	tesa

	74%
Scope 3	Consumer
emissions by	26%
business segment
tesa

SCOPE 1

Direct emissions from sources owned or controlled by us.

SCOPE 2

Indirect emissions from purchased energy such as electricity.

SCOPE 3

Indirect emissions up and down the value chain: From emissions caused by purchased raw materials to those caused by end of life.

6

Beiersdorf Group's GHG Emissions in 2018

WITHIN 2032 & NET ZERO TARGET BOUNDARY

Scope 1 & 2

Scope 3

Purchased

Purchased

Purchased

End of Life

Goods & Services

Goods & Services

Goods & Services

Product Packaging &

Packaging

Raw Materials

Other Services Logistics

Raw Materials

Other*

5%

18%

39%

6%

8%

20%

4%

* Fuel- and energy-related activities, waste generated in operations, business travel, employee commuting

7

Our Climate Targets

Group Targets

base year 2018

Consumer

Business Segment

tesa

Business Segment

SHORT-TERM TARGETS		MID-TERM TARGETS

-30% GHG emissions		-70% GHG emissions
Scope 1 + 2
Climate neutral	Scope 1 + 2
-10% GHG emissions	in production	-40% GHG emissions
Scope 3
	Scope 3

2025

2030

2032

-30% GHG emissions	-50% GHG emissions
Scope 1, 2 + 3	Scope 1, 2 + 3

-20% GHG emissions

Scope 3

LONG-TERM TARGETS

-90% GHG emissions

Scope 1 + 2

-90% GHG emissions

Scope 3

2045

Beiersdorf has set ambitious climate targets in acknowledgment of the disastrous consequences of climate change on our planet and society as well as of the risks that climate change poses to its business. Our Group- level targets for 2025, 2032, and 2045, have been validated by the Science Based Targets initiative (SBTi). The SBTi has confirmed that our climate targets are in line with the 1.5-degree scenario of the Paris Climate Agreement.

The Consumer and tesa Business Segments

have set separate climate targets, which correspond to their distinct business contexts and contribute to the overall Beiersdorf Group climate targets.

All Beiersdorf's emissions reduction targets are in absolute terms, regardless of business growth. We continually report on our progress in reaching our 2032 and 2045 targets in our Annual Reports.

Target Boundary

The following Scope 3 categories are included in our 2032 and Net Zero targets which in total covers

90% of Beiersdorf Group's base year Scope 3 GHG emissions:

• Purchased goods & services: raw & packaging materials, third-party manufacturing, media, co-packing and POS material
• Fuel- and energy-related activities
• Upstream transportation and distribution
• Waste generated in operations
• Business travel
• Employee commuting
• End of Life

8

The target boundary for the Consumer Business Segment in 2025 differs from the aforementioned targets. Purchased goods and services (raw materials, packaging, third-party manufacturing), upstream transportation and distribution, and business travel emissions are included in the target boundary which sums up to 70% of the base year Scope 3 emissions of the Consumer Business Segment.

Key Actions

of our

Roadmap

Our roadmap outlines the path to our 2032 targets. Our action plan encompasses our entire value chain and reflects cross-functional strategies to reduce emissions. The focus is on our direct operations, packaging, raw materials, product format transformation and logistics along with stakeholder engagement, emphasizing suppliers, customers,

and consumers.

9

Beiersdorf Group Emissions Reduction Pathway

Our decarbonization pathway is grounded in our current understanding of technological advancements and changes in consumer behavior. While we recognize the uncertainties inherent in our assumptions, we believe the key actions identified will enable us to achieve our 2032 targets.

GHG Emissions

2018	2032	Operations	Packaging	Raw	Product	Logistics	Supplier	2032
baseline	estimated			Materials	Format Shift	Decarbonization	target
	with volume
	growth

10