diff --git "a/data/dataset_relevance_example.csv" "b/data/dataset_relevance_example.csv" new file mode 100644--- /dev/null +++ "b/data/dataset_relevance_example.csv" @@ -0,0 +1,5037 @@ +,report,paragraph,page,Question_0,Question_1,Question_2 +0,aramco.pdf,Investing in growth Innovating for sustainability Aramco Sustainability Report 2022,i,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +1,aramco.pdf,"We are Aramco, one of the world’s largest integrated energy and chemicals companies Our approach to sustainability reporting In this Sustainability Report, we provide an overview of how we have integrated sustainability within our corporate strategy and operations; the material sustainability issues that impact our business and stakeholders; and a summary of key initiatives and sustainability performance during 2022. Reporting standards The following sections of this report have been prepared with reference to and guidance from the following frameworks, standards and guidelines: • Reporting guidelines for our Environment, Social and Governance (ESG) disclosures: Ipieca; • For developing and reporting our materiality matrix: Global Reporting Initiative (GRI) Sustainability Reporting Principles; • For measuring and reporting on our greenhouse gas (GHG) emissions: Greenhouse Gas Protocol; and • For developing and reporting our health and safety performance metrics: Occupational Safety and Health Administration (OSHA) Standards and the American Petroleum Institute Recommended Practices. Reporting boundaries, scope and basis of preparation This report contains data for the full year 2022 (January 1 – December 31). Where available, we have compared 2022 performance with 2021 and 2020 data.",ii,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +2,aramco.pdf,"Where available, we have compared 2022 performance with 2021 and 2020 data. We have followed industry guidance on defining the boundary scope for performance data. For clarity and transparency, the specific reporting boundaries of each metric for 2022, 2021, and 2020 data have been noted in detail on page 86 in the Data section of this report. As we progress on our reporting journey and our controls around ESG data mature, we have expanded the scope of our reporting for some metrics, which were limited to the Kingdom of Saudi Arabia in 2021, to cover our operational control reporting boundary for 2022. Acquisitions made during the year will not be reportable until after the first full year of operation. Therefore, acquisitions made during 2022 will be reportable from FY2024 onwards. Any site that is not fully operational will be excluded from reporting to ensure effective data controls and systems are in place. The basis of preparation on how we measure and report on the sustainability performance metrics that undergo external independent assurance can be found online here. For the avoidance of doubt, SABIC and S-Oil’s non- financial performance data are not in the scope of this report.",ii,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +3,aramco.pdf,"For the avoidance of doubt, SABIC and S-Oil’s non- financial performance data are not in the scope of this report. Both subsidiaries are publicly listed and issue separate annual sustainability reports. Internal controls and data validation All figures in this report represent the latest available, internally validated data, unless specifically referenced. Some of the totals presented may reflect the rounding- down or rounding-up of subtotals. Aramco’s internal reporting systems capture and record the data used in this report. All data has been subject to internal validation, including data reviews by the reporting businesses and internal subject matter experts. Independent assurance Third-party independent assurance has been sought against 16 prioritized performance metrics, including GHG emissions and fatalities, in accordance with the revised International Standard on Assurance Engagements 3000 (ISAE 3000 revised). Data that has undergone assurance has been referenced throughout the report and the assurance statements can be found online here. More information on assured data and assurance statements can be found online here Cover image: To protect the highly sensitive ecosystem in Manifa, we followed strict environmental policies enforcing drilling, land, and air protection measures.",ii,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +4,aramco.pdf,We also designed a causeway to improve and increase the density of marine life. Learn more about Manifa oil field. About this report,ii,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +5,aramco.pdf,"Investing in growth Innovating for sustainability Our vision Aramco’s vision is to be the world’s preeminent integrated energy and chemicals company, operating in a safe, sustainable and reliable manner. Our mission Aramco strives to provide reliable, affordable, and more sustainable energy to communities around the world, and to deliver value to its shareholders through business cycles by maintaining its preeminence in oil and gas production and its leading position in chemicals, aiming to capture value across the energy value chain and profitably growing its portfolio.",1,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +6,aramco.pdf,"Contents Overview At a glance ........................................................................................... 02 Sustainability and our strategy .......................................................... 04 Chairman’s message ........................................................................... 06 President and CEO’s message ............................................................ 07 Executive summary ............................................................................. 08 Our stakeholders ................................................................................. 10 Sustainability framework ................................................................... 12 Materiality ............................................................................................ 13 Data Our metrics .......................................................................................... 86 Abbreviations, terms and glossary .................................................... 94 Forward-looking statements .............................................................. 99 Governance ................................................................................ 83 Our sustainability focus areas Climate change and the energy transition see page 19 Safe operations and people development see page 43 Minimizing environmental impact see page 57 Growing societal value see page 71 0101",1,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +7,aramco.pdf,"Our business in 2022 Net income $161 (billion) Total hydrocarbon reserves1 258.8 (billion boe) Net refining capacity 4.1 (MMbpd) Total hydrocarbon production2 13.6 (MMboed) Employees 70,496 as at December 31, 2022 R&D spend4 $1.2 (billion) Lost time injuries/illnesses rate5 0.014 (per 200,000 work hours) Countries 50+ in which we operate $1.5 billion Sustainability Fund As part of a long-term strategy of investing (e.g., via our contribution to the Oil and Gas Climate Initiative (OGCI)) in innovative solutions to achieve lower carbon and lower energy intensity, Aramco established a new $1.5 billion Sustainability Fund to invest in technologies needed to address climate challenges. Voluntary carbon market Aramco participated in the first carbon credit auction held in the MENA region through the Regional Voluntary Carbon Market.",2,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 " +8,aramco.pdf,"Voluntary carbon market Aramco participated in the first carbon credit auction held in the MENA region through the Regional Voluntary Carbon Market. Circular economy For the first time in the Middle East and North Africa (MENA) region, Aramco and its partners produced International Sustainability and Carbon Certification + (ISCC+) certified circular polymers from plastic waste derived oil at SATORP. 1. Hydrocarbon reserves of Saudi Arabian Oil Company (the Company) as at December 31, 2022, under the Concession agreement. 2. Total hydrocarbon production (mboed) is derived from MMscfd (for natural gas and ethane) by dividing the relevant product production by 5.400 (in the case of natural gas) and 3.330 (in the case of ethane). 3. Excludes SABIC Agri-Nutrients and Metals (Hadeed) businesses. 4. Total Group R&D including SABIC. 5. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here.",2,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +9,aramco.pdf,4. Total Group R&D including SABIC. 5. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. Maximum Sustainable Capacity (MSC) 12.0 (MMbpd) Capital expenditures $38 (billion) Net chemicals production capacity3 56.3 (MMtons/year) Upstream carbon intensity5 10.3 (Kg CO2e/boe) Nationalities 85+ globally Aramco Sustainability Report 2022 02 At a glance,2,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +10,aramco.pdf,"Reinforced supply chain Through its In-Kingdom Total Value Add (iktva) program, Aramco signed over 90 corporate procurement agreements valued at $17.3 billion (SAR 64.9 billion) with manufacturers in Saudi Arabia, which are expected to reinforce Aramco’s robust supply chain. Our Jafurah unconventional gas field Containing an estimated 200 trillion standard cubic feet (scf) of natural gas, the Jafurah unconventional gas field development is now underway, targeting one of the largest liquid-rich shale gas plays in the Middle East. The Jafurah facility is expected to play a key role in the Saudi Arabian domestic energy sector, displacing significant volumes of oil with gas and in turn lowering emissions. Maximizing liquids-to-chemicals value chain As part of plans to utilize more hydrocarbons for non-combustion uses, Aramco agreed to develop one of the world’s largest refinery-integrated petrochemical steam crackers in South Korea through its S-Oil affiliate, which will convert crude oil into petrochemical feedstock.",3,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +11,aramco.pdf,"Blue ammonia and blue hydrogen certification As we explore the development of blue hydrogen as a commercial opportunity that could support emissions reductions in hard-to- decarbonize sectors, two Aramco subsidiaries (SASREF and SABIC Agri-Nutrients (AN)) received the world’s first independent certification for production of blue ammonia and blue hydrogen. Manifa field development The Manifa field development project was recognized as the Upstream Project of the Year at the 2022 Middle East Energy Awards for its development, management, and production, and its innovative solutions for protecting the fragile marine ecosystem in Manifa Bay. Building one of the world’s largest carbon capture and storage hubs A joint development agreement between Aramco, SLB and Linde was signed to construct one of the world’s largest planned carbon capture and storage (CCS) hubs, in Jubail, Saudi Arabia, with a capacity target of 9 MMtpa by 2027. 0303",3,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +12,aramco.pdf,"Increasing shareholder and societal value sustainably Aramco supports the aims of the Paris Agreement; all of us have a vested interest in protecting the world from human-caused climate change while pursuing economic and social sustainable development. As one of the world’s largest integrated energy and chemicals companies, we have an important role to play along our value chains. As the world emerges from the effects of COVID-19 lockdowns and deals with the on-going impacts of the conflict in Ukraine, we are facing significant global energy challenges. In Aramco’s view, these challenges have confirmed the world’s need to increase oil and gas investments, especially capacity development. Importantly, investing in conventional resources does not mean that alternative energy resources and technologies should be ignored. We believe that any energy transition requires a new global energy consensus built on three long-term strategic pillars: • Recognition by policy makers and other stakeholders that supplies of affordable conventional energy will continue to be required over the longer term; • Further reductions in the carbon footprint of conventional energy and improved energy intensity across the economy are priorities, and technology will be a critical enabler for this; and • New, lower carbon energy sources, steadily complementing proven conventional resources.",4,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +13,aramco.pdf,"At Aramco, we are addressing all three. We are investing to increase our maximum sustainable oil production capacity to 13 million barrels per day by 2027. We are also growing our gas production, potentially increasing it by more than half through 2030 with a mix of conventional and unconventional gas. At the same time, we are working to lower our upstream carbon intensity, our gas flaring intensity, and our methane intensity, which are already among the lowest in the world. We are also intensifying efforts to advance key enabling technologies, particularly CCS, which is mission-critical to a sustainable future. Importantly, we are gradually adding new, lower carbon energy products to our own portfolio, such as blue hydrogen and blue ammonia, renewables, and low carbon synthetic fuels. Meanwhile, chemicals will become a much larger and more strategic part of our portfolio, growing the non-combustible, and lower emission, uses of oil. This is our plan to be part of a practical, stable, and orderly energy transition. We must partner to drive innovation and value on an unprecedented scale and speed to deliver results across the three pillars successfully.",4,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: Yes +[Confidence]: 0.9 " +14,aramco.pdf,"This is our plan to be part of a practical, stable, and orderly energy transition. We must partner to drive innovation and value on an unprecedented scale and speed to deliver results across the three pillars successfully. In our view, technologies of the Fourth Industrial Revolution are ripe for such partnerships, especially the rapid digital transformation of our industry. The right digital investments now could help deliver greater efficiency, lower costs, lower emissions, higher reliability, and higher profits over decades. Transforming the massive existing worldwide energy system, and delivering a secure and sustainable future for everyone, is a truly formidable task that will require both individual and collaborative efforts across industries, along value chains and involve governments, regulators and consumers. Positioning Aramco for the future Aramco Sustainability Report 2022 04 Sustainability and our strategy",4,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +15,aramco.pdf,"Our strategic themes Our key enablers Localization and the promotion of national champions Aramco focuses on four strategic themes across its businesses: The Company facilitates the development of a diverse, more sustainable and globally competitive in-Kingdom energy ecosystem to underpin the Company’s competitiveness and support the Kingdom’s economic development. People Aramco recognizes the need to prepare its workforce for the future, thereby ensuring its capabilities match the requirements of its strategies, by advancing technical and professional skills, developing commercial and leadership competencies and supporting the progress of localization, and focusing on diversity and inclusion. Technology Aramco’s technology program strives to develop new solutions for its Upstream and Downstream businesses, and to help in diversifying its product portfolio, grow its business sustainably and achieve its net zero ambition. Portfolio optimization Aramco seeks to unlock value, enhance its capital structure and reallocate capital to higher growth and return investments. Aramco has a comprehensive and disciplined internal approval process for capital expenditures, new projects and debt issuance.",5,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +16,aramco.pdf,"Aramco has a comprehensive and disciplined internal approval process for capital expenditures, new projects and debt issuance. Aramco’s strategy requires a number of enablers to be successful, including: As the principal engine of value generation, the Company intends to maintain its position as the world’s largest crude oil company by production volume and one of the lowest cost producers. The Company’s vast reserves base, spare capacity, and unique operational flexibility allow it to effectively respond to changes in demand. Upstream preeminence Downstream integration The Company has a dedicated linkage to domestic and internationally wholly-owned and affiliated refineries and chemicals operations that are critical to monetizing its upstream production. Through continued strategic integration, the Company captures additional value across the hydrocarbon chain. Lower carbon initiatives The Company plans to reduce the net carbon emissions of its operations and to support the global energy transition through the development of lower carbon products and solutions across the energy, chemicals, and materials sectors. Our sustainability focus areas Climate change and the energy transition See page 19 Safe operations and people development See page 43 Growing societal value See page 71 Minimizing environmental impact See page 57 Our strategy 0505",5,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: Yes +[Confidence]: 0.8 " +17,aramco.pdf,"Investing in growth When we talk about sustainability at Aramco, we understand that it is about balancing the economic benefits to our owners, the social value and utility that our activities and products generate for customers and consumers, and minimizing any negative environmental and social impacts, to build something that will last: a company that will still be standing strong, generations from now. At Aramco, we recognize the challenge of sustaining our business and supporting the world’s climate ambitions. As we set out in this report, all plausible pathways to global net zero show that ample supplies of conventional energy will still be needed in 2050 and beyond. With one of the lowest upstream carbon intensities per barrel of oil equivalent and an ambition for near zero routine flaring, Aramco is ideally placed to help meet that demand. Demand continues to rise, though not always reliably matched by global supply. 2022 provided an unwelcome reminder that high and volatile energy prices are deeply damaging to the global economy. This could also impede the energy transition itself by raising the costs related to energy policies as well as the cost of material inputs needed for a lower carbon energy system.",6,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +18,aramco.pdf,"This could also impede the energy transition itself by raising the costs related to energy policies as well as the cost of material inputs needed for a lower carbon energy system. At a time of great geopolitical stress and underinvestment across our industry, we view our commitment to invest in new upstream production as a responsible course. However, ensuring security of supply is not where Aramco’s responsibilities end. We also have a responsibility to the environment and to the communities in which we are privileged to operate. In 2022, we took further action to reduce Aramco’s emissions impact, by enhancing our energy efficiency, participating in the Kingdom’s inaugural carbon credit auction, and unlocking the Kingdom’s first large-scale carbon sequestration opportunity. All of these activities are designed to ensure that as long as oil is needed, a barrel of Aramco crude will be among the least carbon intensive on the market. We are also continuing to support a global orderly energy transition towards a lower carbon emissions future, as we seek to develop blue hydrogen, advanced fuel combustion systems and lower carbon synthetic fuels.",6,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.8 " +19,aramco.pdf,"We are also continuing to support a global orderly energy transition towards a lower carbon emissions future, as we seek to develop blue hydrogen, advanced fuel combustion systems and lower carbon synthetic fuels. While the climate challenge remains central, for Aramco, sustainability also means having a robust local supply chain, operating in resilient local communities, and being part of a vibrant Saudi economy that excels in many other fields besides crude oil. As you will see in this report, we continue to make progress in all these areas. The Company’s recent achievements in supply chain localization — including the first ever “made in Saudi Arabia” drilling rigs — are a personal highlight for me. As ever, our gratitude goes out to The Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud, and His Royal Highness Prince Mohammed bin Salman Al-Saud, Crown Prince and Prime Minister of the Kingdom of Saudi Arabia. Guided by their vision, Aramco is a global energy and chemicals powerhouse — securing our future as the world’s indispensable energy supplier. H.E.",6,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +20,aramco.pdf,"Guided by their vision, Aramco is a global energy and chemicals powerhouse — securing our future as the world’s indispensable energy supplier. H.E. Yasir O. Al-Rumayyan Chairman of the Board of Directors We are also continuing to support a global orderly energy transition towards a lower carbon emissions future, as we seek to develop blue hydrogen, advanced fuel combustion systems and lower carbon synthetic fuels.” Aramco Sustainability Report 2022 06 Chairman’s message",6,"[Guess]: No +[Confidence]: 0.95 higher","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +21,aramco.pdf,"Innovating for sustainability Over the last year, there has been increasing acceptance of the fact that there needs to be a better balance between maintaining energy security, energy affordability and environmental sustainability. As you will see in this year’s Sustainability Report, Aramco has strengthened its unique and central role in providing the world the reliable energy it requires for an orderly energy transition. In 2022, we made significant progress on interim targets toward our net zero ambition. We also proudly established a $1.5 billion Sustainability Fund through Aramco Ventures, which will invest in technologies that will make a difference in addressing the challenge of balancing energy security and sustainability. In addition, we announced plans for one of the largest scale CCS hubs in the world. Aramco, in partnership with SABIC Agri-Nutrients, shipped 25,000 metric tonnes of the world’s first commercially accredited blue ammonia to South Korea in 2022. We have made significant strides in increasing diversity in the workplace, employing more women and people with disabilities, including a 23% increase in the number of women in leadership roles at Aramco.",7,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +22,aramco.pdf,"We have made significant strides in increasing diversity in the workplace, employing more women and people with disabilities, including a 23% increase in the number of women in leadership roles at Aramco. As the world seeks to strike the right balance with the energy transition, Aramco is maintaining positive momentum through our ambitious chemicals program and a focus on the materials transition. We are striving to convert up to 4 million barrels of liquids-to-chemicals per day by 2030. In addition to significant advancements in CCS and hydrogen, we are also investing in renewables. We are also placing an enhanced focus on innovation and technology to maintain our leadership position as one of the lowest average upstream carbon intensive producers in the world, along with seeking to improve on our upstream methane intensity of 0.05% which is already well below the Oil and Gas Climate Initiative ambition (0.20% by 2025). Safety is one of Aramco’s core values, and each health and safety incident must be reported and investigated to avoid recurrence. While we recorded enhancements in a number of safety metrics in 2022, unfortunately, we suffered the loss of five lives from our dedicated team of employees and contractors.",7,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +23,aramco.pdf,"While we recorded enhancements in a number of safety metrics in 2022, unfortunately, we suffered the loss of five lives from our dedicated team of employees and contractors. These incidents underscore the critical importance of focusing on safety above all else, and we are fully committed to ensuring that we learn from these incidents, and that each and every person returns home safely, every day. As you will see in the following pages of this report, Aramco continues to make significant progress in key areas of sustainability, biodiversity, localization and more. These improvements are a direct result of the talented people who work for Aramco, and credit goes to them for their commitment, passion and drive to succeed. While our Company has plentiful oil and gas reserves, our number one asset is our people. Our successes are their successes, and I look forward to achieving and reporting continued progress as we advance on our sustainability journey together. Amin H. Nasser President and CEO Aramco has strengthened its unique and central role in providing the world the reliable energy it requires for an orderly energy transition.” 0707 President and CEO’s message",7,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +24,aramco.pdf,"Our sustainability performance 1. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. 2. The Jazan Refinery (our downstream refinery) is excluded from our current GHG reporting because in 2022, it remains in the startup and stabilization phase and is not fully operational. Aramco is working to stabilize the refinery’s operations and complete all necessary reporting configurations before the end of 2023. Reporting on the refinery’s environmental and sustainability elements will commence immediately thereafter, in line with the Company’s commitment to operational transparency. In line with our ambition to achieve net zero Scope 1 and Scope 2 GHG emissions across wholly-owned operated assets by 2050, we strive to provide reliable energy while maintaining leadership as one of the lowest carbon intensity producers of hydrocarbon products.",8,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.8 " +25,aramco.pdf,"• Committed to build one of the world’s largest CCS hubs (capacity target of 11 MMtpa by 2035) • Established a $1.5 billion Sustainability Fund to invest in technology to address climate challenges • An ambition to reduce our emissions by ~52 MMtCO2e and lower our upstream carbon intensity by 15% by 2035 • Delivered an upstream methane intensity of 0.05%, well below the OGCI ambition (0.20% by 2025) • Participated, and purchased credits, in the first carbon credit auction through the Regional Voluntary Carbon Market Climate change and the energy transition Our focus areas Aramco has an important role in helping the world navigate the energy transition. What we do as a global community will determine the legacy we leave for future generations. Our intention is to be a part of the solution that creates a stable energy environment which fosters innovation and growth opportunities in developing and developed countries. We are also committed to providing a healthy, safe, and rewarding environment for our people, our suppliers and communities where we operate while rehabilitating and mitigating the impact on our natural environment.",8,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +26,aramco.pdf,"We are also committed to providing a healthy, safe, and rewarding environment for our people, our suppliers and communities where we operate while rehabilitating and mitigating the impact on our natural environment. We have identified four focus areas: Minimizing environmental impact Growing societal value Climate change and the energy transition Safe operations and people development Each of these focus areas support Aramco’s strategic themes and align with both Saudi Arabia’s Vision 2030 and the UN Sustainable Development Goals (SDGs), directly and indirectly. These elements form our sustainability framework, which is presented on page 12. As part of ongoing materiality reviews and engagement with our stakeholders, we continue to build on this framework, and in 2022 we have measured and added an additional 25 ESG metrics (5 environmental metrics, 17 social metrics and 3 governance metrics) to the 36 metrics we reported in 2021. These metrics allow us to continue to prioritize key issues most material to our Company and our stakeholders, which we discuss further on page 10.",8,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +27,aramco.pdf,"These metrics allow us to continue to prioritize key issues most material to our Company and our stakeholders, which we discuss further on page 10. Scope 1 emissions2 (MMtCO2e) 55.7 (2021: 52.3) Scope 2 emissions2 (MMtCO2e) 16.1 (2021: 15.5) Upstream carbon intensity1 (kg CO2e/boe) 10.3 (2021: 10.7) For more details, see page 19 Aramco Sustainability Report 2022 08 Executive summary",8,"[Guess]: Yes +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +28,aramco.pdf,"1. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. 2. The Net positive impact (NPI) metric is a new KPI developed in 2022 and there is no prior year comparative. The purpose of the NPI is to aspire to achieve net gains for biodiversity and ecosystem services. This is when overall negative impacts on biodiversity are outweighed by the biodiversity gains that are achieved through conservation projects. For the formula of the metric, please refer to page 86 in the Data section of this report. * Metric reported for the first time externally. Growing societal value Minimizing environmental impact We seek to grow value wherever we operate. With our biggest footprint in Saudi Arabia, we have invested in the Kingdom’s oil and gas ecosystem to enhance the reliability of our supply chain, providing employment and economic opportunities to thousands of Saudi nationals.",9,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +29,aramco.pdf,"With our biggest footprint in Saudi Arabia, we have invested in the Kingdom’s oil and gas ecosystem to enhance the reliability of our supply chain, providing employment and economic opportunities to thousands of Saudi nationals. • Aramco entered into over 90 agreements with an estimated value of $17.3 billion to build long- term collaborative relationships with strategic local suppliers • Via our investments, encouraged suppliers to have an aggregate investment of over $600 million in capex, which also created over 4,000 jobs in our supply chain in Saudi Arabia • Via iktva, facilitated creation of 31 new local manufacturers • Spent $370 million on a range of global socio-economic and environmental initiatives We are committed to providing a safe and respectful working environment for all, on-site and within the community, supported by appropriate safety procedures, policies and resources. We strive to support, diversify, and empower our workforce.",9,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +30,aramco.pdf,"We strive to support, diversify, and empower our workforce. • 28% of direct hires were female • 50% of enrollment in Aramco’s college preparatory programs were female • 23% increase in female employees in leadership positions • 26% increase in apprentices (1,728 in 2022 versus 1,369 in 2021) • 66% increase in interns (3,190 in 2022 versus 1,922 in 2021) • Conducted over 1,100 exercises for emergency preparedness Safe operations and people development We strive to conserve natural resources, apply circular models across our value chain, and to have a legacy of projects that improve both natural habitats and shared resources. • Launching refurbishment and recycling programs for material streams and equipment • Over 20 initiatives incorporating circular economy principles • Ambition to deliver net positive biodiversity and ecosystem impacts • Continued investments in tail gas treatment facilities • ISO 14001 certification for 98%1 of applicable facilities in 2022,",9,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +31,aramco.pdf,"with a view to complete coverage in 2023 • Pursuing a water neutrality strategy • Planted 11 million mangroves and an additional one million trees Fatalities1 (number) 5 (2021: 1) Tier 1 process safety events (number) 11 (2021: 11) Female employees (%) 6.4 (2021: 5.61) Freshwater consumption (million m3) 93.6 1 (2021: 94.6) Hydrocarbon spills (number) 15 (2021: 13) Net positive impact on biodiversity*1,2 (%) 53 (2021: N/A) iktva spend (% in-Kingdom) 63 (2021: 59) Saudi nationals employed (%) 90.9 (2021: 90.5) Social investment* ($ million) 370 (2021: N/A) For more details, see page 43 For more details, see page 57 For more details, see page 71 0909",9,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +32,aramco.pdf,"Aramco recognizes that there is a social contract between our Company and the society within which it operates. Aramco interacts with a range of stakeholders to ensure that their perspectives are considered in the development of our business plans, sustainability plans and objectives; from project planning, to execution, long-term operations and of course, customer service. During the year, we engaged with key stakeholders on a diverse range of topics. Communication channels and examples of engagement: • Town halls • Employee engagement surveys • Employee networks • Young Leaders Advisory Board • Training • Intranet • Human Resources • Recognition events • Senior leadership meetings • Safety meetings • Quarterly engagement talks on current events Discussion topics: • Our vision and mission • Corporate ethics and values • Professional development • Career progress • Our strategy • Sustainability • Remuneration • HSE performance • Industry trends, current events • Community support/ volunteering Our people Communication channels and examples of engagement: • Business performance reviews • On-boarding program • Supplier facility visits • Workshops • Training programs Discussion topics: • Engagement on supply chain disruption and mitigation plans • Safety requirements • Agreeing ESG initiatives with suppliers to improve their capabilities • Performance on quality,",10,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +33,aramco.pdf,"delivery and price • Supplier Code of Conduct • iktva Our suppliers, partners and contractors Communication channels and examples of engagement: • Customer feedback forms • Face-to-face meetings • Regular engagement between sales teams and our business customers • Customer service centres • Trade shows and conferences • Email/newsletters Discussion topics: • Sustainability • Health and safety performance • Quality control Our customers Communication channels and examples of engagement: • Semi-annual earnings calls • External disclosures • Direct investor communication • Annual General Meeting • Annual insurance renewals • Revolving credit facility meetings • Engagement with ClimateAction100+ • Conferences and non-deal roadshows Discussion topics: • Climate change and the energy transition • Environmental performance • Human capital management • Financial and operational performance and outlook • Sustainability (including GHG emissions) related targets and performance • Risk management Investors, financial institutions, rating agencies,",10,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +34,aramco.pdf,"financial institutions, rating agencies, and insurers Communication channels and examples of engagement: • Volunteer events • Student mentoring • Community events • Citizen Advisory Panel meetings • Employee service on community boards Discussion topics: • Corporate donations • Matching contributions • Community needs Local charities and nonprofit organizations Stakeholder engagement Aramco Sustainability Report 2022 10 Our stakeholders",10,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +35,aramco.pdf,"Aramco’s Co-Chairmanship Aramco’s Co-Chairmanship of the Energy, Sustainability, and Climate Task Force was demonstrated through the year-long active negotiations that led to the publishing of a policy paper proposing three policy recommendations as part of the B20 communique to the G20, which were centred around enhancing global cooperation to: • Reducing carbon intensity of energy use through multiple pathways; • Ensuring a just, orderly, and affordable transition to sustainable energy use across developed and developing countries; and • Enhancing consumer level access and ability to consume clean, modern energy. Aramco B20 Co-Chairmanship’s message: “Meeting the world’s energy needs in a sustainable manner, without compromising energy security, reliability and affordability, is more essential today than ever before. The B20 Energy, Sustainability, and Climate Task Force plays a key role in leveraging existing capacities and aligning collectively to solve energy transition challenges.” What are we doing?",11,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +36,aramco.pdf,"The B20 Energy, Sustainability, and Climate Task Force plays a key role in leveraging existing capacities and aligning collectively to solve energy transition challenges.” What are we doing? Communication channels and examples of engagement: • Volunteer events • Student mentoring • Community events • Citizen Advisory Panel meetings • City Council meetings • School board meetings • Economic development associations • Local industry groups meetings • Quarterly community newsletters • Plant tours • Direct mailings • Conferences Discussion topics: • Social impacts of operations and expansion plans • Pipeline awareness • Workforce development • Local content • Community development and outreach • Economic and social investments • Charitable giving • Emergency response and preparedness • Environmental stewardship • Health and wellness programs • Mentoring programs and scholarships • Small business support Our local communities Communication channels and examples of engagement: • Business20 (B20) Energy,",11,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +37,aramco.pdf,"Sustainability and Climate Task Force under G20 Indonesia 2022 • Saudi ministries and regulators • Various working groups in Ipieca • US Environmental Protection Agency (EPA) • American Petroleum Institute • International Emissions Trading Association (IETA) • American Fuel and Petrochemical Manufacturers • American Society for Testing and Materials • Community of ESG Practitioners Working Group within the World Economic Forum (WEF) • OSHA • International Sustainability Standards Board (ISSB) • Saudi Organization for Chartered and Professional Accountants (SOCPA) • OGCI • Saudi Exchange, Capital Market Authority, London Stock Exchange Discussion topics: • Standards setting • Compliance with regulatory standards • Project specific discussions • Supply disruptions • Balancing the energy transitions • Permits • Knowledge sharing on best practices • Collaboration on industry standards Regulators and industry associations 1111",11,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +38,aramco.pdf,"Our sustainability framework Our sustainability framework sets out the areas that hold the greatest potential for our business to have long-term positive impacts, connecting the UN SDGs and Vision 2030 to our four focus areas, and which encapsulate the material ESG topics stakeholders expect us to address. United Nations’ Sustainable Development Goals Saudi Arabia's Vision 2030 Climate change and the energy transition Growing societal value Safe operations and people development Minimizing environmental impact Renewable Attractingtalent Increasing women's Reducing unemployment Diversifying the econom y m anagem ent W aste Reducing air pollution Preserving marine life Combating desertification Empoweringsociety Supporting small and medium enterprises Investing for the long term Alternative energy: hydrogen and am m onia Saudi Green Initiative participation in the workforce energy How we work Aramco’s sustainability focus areas Aramco Sustainability Report 2022 12 Sustainability framework",12,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +39,aramco.pdf,"Our material ESG topics During 2022, we performed an annual materiality1 refresh to assess whether our sustainability focus areas, ESG material topics, prioritized SDGs and metrics remain relevant and appropriate. The materiality assessment is an in-depth analysis of the risks and opportunities that we face in our stakeholders’ topics of interest and serves as an essential process for selecting key sustainability topics for Aramco. The exercise consisted of: • External stakeholder engagement (details on pages 10 and 11); • Internal stakeholder engagement (details on page 10); • Review of existing (e.g., Ipieca sustainability guidelines) and upcoming standards (particularly the ISSB); and • Peer benchmarking. From our benchmarking, internal analysis, and stakeholder engagement, we identified and evaluated over 150 ESG topics. The outcomes of these assessments were tested with external and internal stakeholders to evaluate the relative significance of multiple topics impacts on our business. Prioritizing topics enables us to focus on where we can make meaningful differences.",13,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +40,aramco.pdf,"The outcomes of these assessments were tested with external and internal stakeholders to evaluate the relative significance of multiple topics impacts on our business. Prioritizing topics enables us to focus on where we can make meaningful differences. Upon completion of our materiality refresh exercise and extensive stakeholder engagement, a summary of conclusions and subsequent actions, where appropriate, are provided below: • Our four focus areas and 13 material topics (plus our focus on corporate governance2) remain relevant and appropriate; • Greater quantitative and qualitative information is required on some material topics, e.g., biodiversity and human rights, which had no metrics in the prior year. Therefore, for this report, we have introduced metrics and more information on our approach toward biodiversity and human rights; • Reconfirmed that Aramco’s roadmap to establish additional metrics to better monitor and report on our performance under each focus area and material topic is correct. Due to the increasing maturity of existing KPIs and new metrics, we have increased the number of KPIs and metrics in this report to 61 (an increase of 25 metrics from the 36 metrics in the 2021 Sustainability Report); • Ensure our metrics present a more complete picture of our total footprint.",13,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +41,aramco.pdf,"Therefore, various metrics (e.g., water consumed and waste generated) have expanded in scope from Company in-Kingdom to the operational control boundary level; • Increase our prioritized SDGs from 10 to 12 by including SDG 4 (Quality Education) and SDG 17 (Partnerships for the Goals) — more details on how we’ve contributed to these are provided over the next few pages; and • Increasing the number of our metrics in our Sustainability Report undergoing external assurance; from 6 metrics in 2021 to 16 metrics in 2022. 1. The concept of “materiality” refers to the guidance on external reporting from the Global Reporting Initiative, and does not necessarily correspond to the concept of materiality used in connection with Aramco’s financial reports. 2. For more information on our governance, relevant material topics and our governance metrics, please refer to page 83 in this report and also page 90 in the 2022 Aramco Annual Report. United Nations’ Sustainable Development Goals 1313 Materiality",13,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +42,aramco.pdf,"Mapping our material ESG topics Relevant metric to monitor performance against each material topic Climate change (including GHG emissions) • Scope 1 emissions (million metric tonnes of CO2e) • Scope 2 emissions (million metric tonnes of CO2e) • Upstream carbon intensity (kg CO2e/boe) • Upstream methane emissions (metric tonnes of CH4) • Upstream methane intensity (%) • Flaring intensity (scf/boe) • Flared gas (MMscf) • Energy intensity (thousand Btu/boe) Example of our contributions to UN SDGs Investing in more than 12 GW in solar and wind energy by 2030, expanding CO2 storage capacity (e.g., CCS and CCUS) to support clean and affordable energy production, as well as investing in innovative flaring reduction technologies contribute to improved access to affordable, reliable and sustainable energy for all. Given the material impact climate change can have on human life and economic opportunities, Aramco continuously invests in lower carbon energy and alternative energy sources. This will create jobs and contribute to economic growth.",14,"[Guess]: Yes +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: Yes +[Confidence]: 0.8 " +43,aramco.pdf,"Given the material impact climate change can have on human life and economic opportunities, Aramco continuously invests in lower carbon energy and alternative energy sources. This will create jobs and contribute to economic growth. Being one of the world’s lowest upstream carbon intensity major producers in line with the Kingdom of Saudi Arabia’s Vision 2030 toward cleaner energy, having an ambition to reach net zero emissions by 2050 from wholly-owned operated assets, and also leveraging our influence in non-operated assets, within the timeframe set by the Paris Agreement. As part of our commitment to this SDG in 2022, we planted 11 million mangroves and have set a target to plant another 31 million mangroves by 2025 along the Arabian Gulf and Red Sea shorelines. Partnering with organizations with a climate focus, such as the OGCI, Ipieca and WEF, via collaboration with governments, the private sector across the different industries and civil society. Focus area Climate change and the energy transition Material topics Impact Climate change (including GHG emissions) For more details, see page 19 Impact on our business Very high High Moderate Impact on our stakeholders Aramco Sustainability Report 2022 14 Materiality",14,"[Guess]: No +[Confidence]: 0.9 +","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: Yes +[Confidence]: 0.8 " +44,aramco.pdf,"Relevant metric to monitor performance against each material topic Workforce protection • Number of fatalities • Lost time injuries/illnesses rate (number of LTI cases x 200,000/total work hours) • Total recordable case frequency (total recordable incidents x 200,",15,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +45,aramco.pdf,"000/total work hours) • Total recordable case frequency (total recordable incidents x 200,000/total work hours) • Health performance* (number of overdue major health findings) x (100)/total number of open major health findings) Process safety and asset integrity • Number of Tier 1 process safety events Human rights • Number of grievances raised* • Sites with a grievance mechanism in place* (%) Labor practices • Attrition rate* (%) • Number of company employees • Number of female employees* • Female (%) of total employees • Female (%) of total number of new hires* • Number of female employees in leadership positions* • Female employees (%) in leadership positions • Number of contractor employees* • Employee engagement score* (%) • Employees receiving regular performance reviews (%) • Number of hired graduates • Number of apprentices • Number of interns • Total hours of training and development* • Average hours of training and development* (per employee) Examples of our contributions to UN SDGs Aramco has various health and safety and well-being programs for our employees (mental health initiatives, workplace standards and technology to minimize exposing our workers to unnecessary risk).",15,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +46,aramco.pdf,"workplace standards and technology to minimize exposing our workers to unnecessary risk). Aramco believes in lifelong learning and development and continues to provide world-class learning experiences that drive personal growth and effective operations at all levels of the Company through innovative platforms such as corporate e-Learning, the Hosted University Programs, Advance Development Programs and others. Aramco is improving the gender balance of its workforce via a range of female empowerment initiatives. In Saudi Arabia, Aramco funds the STEMania program for school-age girls, offering university scholarships for science, technology, engineering and mathematical degrees. We have strong policies and processes to manage our ethics, bribery and corruption risks, and ensure a decent working environment for our workforce. Focus area Safe operations and people development Material topics Impact Workforce protection Process safety and asset integrity Human rights Labor practices For more details, see page 43 * Metric reported for the first time externally. Impact on our business Very high High Moderate Impact on our stakeholders 1515",15,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +47,aramco.pdf,"Mapping our material ESG topics Focus area Minimizing environmental impact Material topics Impact Local environmental impact Biodiversity and ecosystems Water management Product stewardship and waste management For more details, see page 57 Relevant metric to monitor performance against each material topic Local environmental impact • Number of hydrocarbon spills • Volume of hydrocarbon spills (bbl) • Recovered hydrocarbon* (%) • Hydrocarbon discharge to water (barrels) • SO 2 emissions (kilotonnes) • Number of sites with ISO 14001 certification* (%) Biodiversity and ecosystems • Net positive impact (%)* Water management • Freshwater consumption (million m3) • Freshwater withdrawal (million m3) Product stewardship and waste management • Industrial waste generated (metric tonnes) • Industrial waste recycled* (%) Examples of our contributions to UN SDGs Given water scarcity in Saudi Arabia, the Company has a large seawater treatment and injection network of facilities. Seawater is used as the primary source of water for oil production and to ensure clean water is available for our workforce and local communities. Embracing circular economy (reduce, reuse, recycle and remove) principles and business models across our operations and activities.",16,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +48,aramco.pdf,"Embracing circular economy (reduce, reuse, recycle and remove) principles and business models across our operations and activities. For example, our recent scrap-to-commodity program successfully recycled over 200,000 drum containers and over 80,000 tons of steel. Reintroducing these materials to local manufacturers as feedstocks eases the pressure on raw materials extraction and allowed us to recover over $30 million of value. For more information, please refer to Aramco’s circular economy section on our website. Aramco has systems in place to manage all discharged water to the sea, meeting Government requirements by investing in maintenance and monitoring systems while proactively managing operations to avoid hydrocarbon leaks and spills by maintaining asset integrity throughout the life cycle. Committed to delivering biodiversity net gain in support of SDG15, Vision 2030 and the Saudi Green Initiative. Partnering with organizations, such as Ipieca, WEF and others, to help promote good industry practice and better environmental performance. We are also working closely with our suppliers and creating incentives to reward them for improvements in their environmental performance. * Metric reported for the first time externally. Impact on our business Very high High Moderate Impact on our stakeholders Aramco Sustainability Report 2022 16 Materiality",16,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +49,aramco.pdf,"Relevant metric to monitor performance against each material topic Labor practices • Number of people on Aramco sponsored programs*1 National content • Saudization (%) • Saudization of construction contracts (%) • Saudization of service contracts (%) • iktva procurement spend in-Kingdom (%) Human rights (supply chain) • % of active suppliers signed up to Aramco’s Supplier Code of Conduct* • Number of active suppliers* Community and society • Social investment* ($ million) • Number of volunteers* • Number of volunteer hours* Economic contribution • Direct economic value generated and distributed ($ million) • Total R&D spend ($ million) Examples of our contributions to UN SDGs Aramco has various social investment programs, which look to improve the health and well-being of our host communities around the world. Aramco believes in lifelong learning and development and continues to provide world-class learning experiences in our community. With a mission to equip the Saudi market with a highly motivated and qualified Saudi workforce, the Company has historically been building and maintaining schools for children and is also creating market/demand driven national training centers, which offer high standard vocational training programs to sponsored trainees.",17,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +50,aramco.pdf,"The Company also has a history of supporting the community via financing various education centers for people with development disabilities, such as Hiba Center for Down Syndrome and the Abdullatif AlFozan Autism Center (the first community center of its kind in Saudi Arabia’s Eastern Province to support children on the autism spectrum). Supporting the economic development of our employees and communities in Saudi Arabia via our iktva spend, various home ownership and Aramco initiatives to seed micro industries (e.g., Roseyar, beekeeping in al-Baha, fisheries in Yanbu’ and Baish, olive products in al-Jouf, coffee cultivation in Jazan). Industry: Creating a world-class local supply chain to serve the needs of the Company and its partners, facilitating the development of a diverse, sustainable, and globally competitive energy sector in the Kingdom. Innovation: At the heart of our business lies a commitment to innovate and maximize production from our resources, to deliver energy as efficiently as possible from the wellhead to customers.",17,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +51,aramco.pdf,"Innovation: At the heart of our business lies a commitment to innovate and maximize production from our resources, to deliver energy as efficiently as possible from the wellhead to customers. Infrastructure: The Kingdom’s Master Gas System delivers natural gas to industry across Saudi Arabia; while Aramco has also built various roads, educational facilities, cultural centers (e.g., Ithra, which delivered over 8,000 programs and welcomed more than one million visitors during 2022) and numerous other facilities across the Kingdom. Partnering with governments, suppliers, non-profit organizations and education institutions. During 2022, $370 million was invested in various social initiatives, supporting more than 30 non-profit organizations around the world. Focus area Growing societal value Material topics Impact Labor practices National content Human rights (supply chain) Community and society Economic contribution For more details, see page 71 * Metric reported for the first time externally. 1. These programs include the Vocational College Internship Program (VCIP), University Internship Program (UIP), Summer enrichment program, Tomooh program, Advantage program, and ACCEL International Ajyal Center. Impact on our business Very high High Moderate Impact on our stakeholders 1717",17,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +52,aramco.pdf,Aramco Sustainability Report 2022 18,18,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +53,aramco.pdf,"Climate change and the energy transition As one of the world’s largest integrated energy and chemicals company, we have an important role to play to support energy security and promote sustainable practices in response to climate change. We are investing in technology needed for a stable energy transition that utilizes all sources of energy to meet the world’s growing energy demand while reducing GHG emissions. Our focus is on leading in lower carbon intensity energy production and supporting the development of non-fuel applications for crude oil, targeting the highest impact solutions across our value chain. The challenge is to develop and deploy technology solutions at speed and scale, to provide the benefits of oil and gas for future generations, while minimizing emissions. It is a complex, multidimensional, and capital intensive challenge that will span generations.",19,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +54,aramco.pdf,"It is a complex, multidimensional, and capital intensive challenge that will span generations. Material topics Relevant UN SDGs Climate change (including GHG emissions) Scope 1 emissions (million metric tonnes of CO2e) Scope 2 emissions (million metric tonnes of CO2e) Upstream carbon intensity (kg CO2e/boe) Upstream methane emissions (metric tonnes of CH4) Upstream methane intensity (%) Flaring intensity (scf/boe) Flared gas (MMscf) Energy intensity (thousand Btu/boe) Relevant metrics For more details on relevant metrics, see page 86. Learn more about Aramco’s GHG emissions management program. Scan here 1919",19,"[Guess]: Yes +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +55,aramco.pdf,"Navigating the energy transition Toward a low carbon system Aramco supports the aims of the 2015 Paris Agreement to limit global temperature increase in this century to 2 degrees Celsius, while pursuing efforts to limit the increase even further to 1.5 degrees, and the commitment of the Kingdom of Saudi Arabia to achieve net zero emissions in its economy by 2060. This requires a transition of the global energy system toward a low carbon system, requiring thousands of large-scale projects across multiple sectors. This presents unprecedented design, engineering, and implementation challenges. The McKinsey Global Institute has estimated that a net zero world will cost around $275 trillion by 20501. Policymakers, industrial suppliers and customers recognize that this transition will not be uniform across geographies. What might be achievable today in more developed economies will be distinct from what is appropriate and effective in emerging markets. Growing markets, particularly in developing countries, face additional challenges to their ability to achieve sustainable development while meeting their needs for affordable, reliable energy. Reduction in GHG emissions across Europe and North America will proceed at a different pace from developing countries.",20,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +56,aramco.pdf,"Reduction in GHG emissions across Europe and North America will proceed at a different pace from developing countries. What does unite all economies and societies is not only the desire to address the impacts of climate change, but also the need for affordable, reliable energy. Across any society, higher energy prices are a burden that disproportionately impacts lower income households. Balancing energy security, affordability and emissions Events of the last few years, particularly COVID-19 and the conflict in Ukraine, have highlighted the risks of under-investment in energy sources and underlined the importance of energy security and energy access. Alternatives to traditional hydrocarbon-based energy sources are progressing, but on their own will be insufficient to meet the world’s energy demands today and ensure an orderly energy transition. As COP27 in Sharm El Sheikh highlighted, many developing economies depend upon the low-cost and reliability of hydrocarbons to avoid energy shortages and cost inflation — and they need realistic solutions now to ensure economic security, even while the energy transition develops in parallel.",20,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +57,aramco.pdf,"Although global energy systems are becoming more efficient each year, requiring less energy to meet the same level of economic activity, the demands of a growing middle-class and facilitating access to economies and communities that lack access to energy is leading to a growing energy demand. The definition of “affordable, reliable energy” diverges depending on the society and its position in the development index. Accordingly, prudent solutions will require a variety of energy sources and technologies. For example, around 800 million people do not have access to electricity and some 3 billion people still depend on indoor fires for cooking2 — their requirements differ substantially from those living in a highly advanced economy. With the focus on energy security and affordability, Aramco’s continued investment and capital expenditure to increase supply, combined with our high level of reliability and low carbon intensity of production, will support a global orderly energy transition. Our 2050 net zero ambition and 2035 GHG emissions reduction targets keep us focused on advancing in lower carbon intensity and abatement technologies and supporting the development of non-fuel applications for crude oil. We also continue to invest in the ability to meet the world’s need for energy sourced from hydrocarbons.",20,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.9 " +58,aramco.pdf,"We also continue to invest in the ability to meet the world’s need for energy sourced from hydrocarbons. This includes expanding the gas supply in Saudi Arabia, and exploring new markets, including for blue hydrogen and additional non-combustible uses for oil. A parallel materials transition At the same time, the global economy is facing the realities of having to invest in new supply chains for minerals, metals, and materials. Without adequate investment in oil and gas, there remains the risk of raising the cost of the critical inputs needed for any transition. Hydrocarbons will increasingly be used without combustion or where carbon emissions can be captured and removed. Fuels, such as blue hydrogen, using CCS technologies, are projected to increase in demand. Petrochemicals will provide feedstock essential to the development of new materials that will play a significant role in the energy transition — advanced, durable materials are essential for manufacturing wind turbines, solar panels, all modes of transportation, McKinsey Global Institute has estimated that a net zero world will cost around $275 trillion by 20501 1. McKinsey Report: “The Net Zero Transition”, January 2022. 2.",20,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +59,aramco.pdf,"McKinsey Report: “The Net Zero Transition”, January 2022. 2. Overseas Development Institute ‘Oil and gas, poverty and energy access’. Aramco Sustainability Report 2022 20 The energy landscape",20,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +60,aramco.pdf,"Energy security Environmental sustainability Affordability storage devices, and infrastructure. The faster we accelerate the transition, the more of these materials we will need. Today, chemical products made from oil and gas enable over 90% of all manufactured goods. Energy transition scenarios Scenario planning has been integral to Aramco’s decision-making process for around a decade. The first scenarios were developed in 2014, depicting four pathways to the future energy landscape our business operates in. We have updated the scenarios five times since the start of this journey, each time successively incorporating the increasingly complex nature of our business amid a fast-paced transition. During this decade, the energy world has endured a major downturn in oil price cycles, a pandemic, and several geopolitical events. Scenarios and outlooks have been critically important to strategic dialogues within our Company. The Company employs in-house expert economists and analysts to develop these scenarios. A wide range of internal and external stakeholders are engaged to determine the drivers of future energy landscapes, our strategies, and investment decisions. These and other important determinants, such as policy developments and climate goals, and technological progress form the basis of our scenario pathways.",21,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.9 " +61,aramco.pdf,"These and other important determinants, such as policy developments and climate goals, and technological progress form the basis of our scenario pathways. Once the scenario pathways are defined, they are modeled using a proprietary energy analytics system. Scenario outputs include global economic indicators, energy market fundamentals, and GHG emission projections. In our latest set of scenarios, we have used the energy trilemma framework, first developed by the World Energy Council, to determine alternate pathways for the future. The framework utilizes affordability, energy security and environmental sustainability as three policy objectives that require balance and trade-offs. Each of our scenarios accentuates one dimension of the energy trilemma triangle, while a fourth scenario depicts a balanced approach to these trade-offs. Aramco’s integrated energy and economic modeling system Aramco developed its proprietary energy solutions platform in collaboration with a number of industry- leading energy data providers and modelers. The platform is a computer-based integrated solution comprised of global economic and energy models. These models represent energy supply (oil, gas, and coal), demand (transportation, residential, commercial, and industrial), conversion (refining, power, and petrochemicals), and macroeconomics.",21,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +62,aramco.pdf,"These models represent energy supply (oil, gas, and coal), demand (transportation, residential, commercial, and industrial), conversion (refining, power, and petrochemicals), and macroeconomics. The system operates in an integrated manner with eight different sub-modules including economics, energy demand, climate, oil supply, gas supply, coal supply, refining, and petrochemicals. The system is capable of modeling at a country-level on 26 sub-sectors, 25 fuel types, energy carriers including electricity and hydrogen, and GHG emissions. Macro- economy Climate model Natural gas Petro- chemicals Oil supply Prices Refining Energy demand 2121",21,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +63,aramco.pdf,"Leading in low carbon intensity operations GHG emissions management Flaring and methane reduction Energy management In-Company renewables Supporting the transition to low-impact energy pathways Lower carbon fuels and transport technologies Hydrogen Developing and growing low-impact value chains Non-metallics Liquids-to-chemicals Renewable energy investment Differentiate Sustain Diversify Collaboration with partners to develop and deploy technologies and infrastructure at speed and scale Carbon capture and storage Leveraging technology Developing offsets and supporting carbon markets Enable Our climate change and energy transition framework Our corporate strategy is based on producing hydrocarbons that have one of the lowest upstream production costs and carbon intensities in the world, and supporting a global orderly energy transition towards a lower carbon emissions future through investing in technologies and offering lower carbon products, including e-fuels. Our climate change and energy transition framework is informed by the circular carbon economy principles of reduce, reuse, recycle and remove. We have four areas of focus that provide the framework for our climate change initiatives and investments: Read about how Aramco seeks to adopt the principles of the circular carbon economy.",22,"[Guess]: No +[Confidence]: 0.9","[Guess]: No +[Confidence]: 0.8 ","[Guess]: Yes +[Confidence]: 0.9 " +64,aramco.pdf,We have four areas of focus that provide the framework for our climate change initiatives and investments: Read about how Aramco seeks to adopt the principles of the circular carbon economy. Scan here Aramco Sustainability Report 2022 22 Climate change and the energy transition,22,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +65,aramco.pdf,"GHG emissions management We recognize the need to reduce our GHG and methane emissions and have ambitions and targets to reduce carbon emissions associated with our operations. Our emissions reduction strategy includes investing in low-emission technologies, including CCS, energy efficiency programs and energy mix diversification. We are committed to developing and deploying innovative solutions, optimizing operations, and adopting efficient project designs. Aramco’s industry leading low carbon intensity production performance is the result of almost half a century of careful reservoir management and investment in efficiency, reducing flaring and produced water management. This has yielded an environmental advantage that forms a key pillar of our corporate strategy. We are confident that we can help the world meet its rising energy needs, while reducing emissions from our operations. Net zero ambition Aramco’s ambition is to reduce GHG emissions from our operations and achieve a net zero GHG emissions footprint by 2050 across our wholly-owned operated assets. Having undertaken analysis to support this corporate ambition, we know that achieving net zero operational emissions while we grow our business to meet global energy demand will be a huge challenge.",23,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.9 " +66,aramco.pdf,"Having undertaken analysis to support this corporate ambition, we know that achieving net zero operational emissions while we grow our business to meet global energy demand will be a huge challenge. It requires internal targets to be set for our businesses and assets, and for these targets to be embedded into our business planning, to ensure capital expenditure and resource requirements are in place. Leading in low carbon intensity operations What are we doing? Climate change risk and mitigation Climate change is considered a top corporate priority for us and we assess this on a medium to long-term horizon. Our response to climate change is embedded in our business strategy, supported by our climate change and energy transition framework and our five GHG reduction initiatives.",23,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 " +67,aramco.pdf,"Our response to climate change is embedded in our business strategy, supported by our climate change and energy transition framework and our five GHG reduction initiatives. Risk Mitigation Policy: Policies restricting or banning use of fossil fuels, or applying a cost on carbon • Climate-related demand scenarios to inform business decision making Technology: Adoption of disruptive technologies and/or slow development of GHG reduction technologies • Accelerated development of our technology portfolios, including synthetic fuels, CCUS and CCS technologies, e.g., Jubail CCS Hub Market: Loss of demand for hydrocarbons as customers move to achieve their GHG targets • Diversification into low GHG emitting products, e.g., chemicals and hydrogen Legal: Potential exposure to climate-related litigation • Accurate and transparent reporting and disclosures with independent assurance Reputation: Impact on corporate reputation • Stakeholder engagement, including independent external consultants and subject matter experts to advise on reporting and disclosures, and explain the Company’s energy transition pathway Emissions management starts at the subsurface Our philosophy of sustainable reservoir management is key in reducing our upstream carbon intensity. Instead of maximizing production from wells which could irreversibly damage them, we prioritize the long-term health of our reservoirs.",23,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: Yes +[Confidence]: 0.8 " +68,aramco.pdf,"Instead of maximizing production from wells which could irreversibly damage them, we prioritize the long-term health of our reservoirs. This entails producing our fields at low depletion rates to prevent premature water breakthrough, reducing the quantity of produced water. Using advanced reservoir modeling and real-time data, our geoscientists and engineers steer multilateral wells with maximum reservoir contact to ensure optimum well placement which help minimize water production. Additionally, these wells are equipped with smart completions which enable shutting off when detecting water. Such practices result in superior produced water management and low water oil ratios (WOR). When the production of water is minimized, less energy is required for fluid separation, treatment and disposal. These energy savings result in lower carbon emissions. As a consequence, Aramco’s average WOR is significantly lower than the global average, and hence our upstream carbon intensity is amongst the lowest globally. What are we doing? 2323 Differentiate Sustain Diversify Enable",23,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +69,aramco.pdf,"GHG emissions targets In parallel with our intensity targets, we are aiming to reduce our net annual Scope 1 and Scope 2 GHG emissions from both the upstream and downstream businesses by 52 MMtCO2e from our business as usual 2035 forecast emissions. By 2035, consistent with the corporate growth strategy in oil and gas production and development of new businesses, particularly hydrogen and liquids-to-chemicals, we forecast our business as usual Scope 1 and Scope 2 GHG emissions for our wholly-owned operated assets will increase to 119 MMtCO2e. Our goal is to mitigate this growth in emissions and reduce our emissions to 67 MMtCO2e by 2035. Targeted GHG reduction Our Yanbu’ Refinery facility successfully obtained the International Sustainability and Carbon Certification under its circular cracker oil initiative. The initiative drives the certification relates to an in-house sustainable circular route to produce circular cracker oil from waste oil to reduce our Scope 2 GHG carbon footprint. What are we doing?",24,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +70,aramco.pdf,"The initiative drives the certification relates to an in-house sustainable circular route to produce circular cracker oil from waste oil to reduce our Scope 2 GHG carbon footprint. What are we doing? During 2022, we have made progress toward achieving our 2035 and 2050 ambitions across our five identified levers: energy efficiency, reduced methane and flaring; increased renewables; CCS; and offsets to address emissions we cannot reduce or capture. For more information on our 2022 efforts and impact, please refer to pages 26 and 27. We have also been conducting site-level bottom-up assessments of what it would take to decarbonize our assets. Once this is completed in 2023, we will update our decarbonization strategy in the next report. GHG emissions The Company’s GHG emissions management program monitors direct (Scope 1) and indirect (Scope 2) emissions from wholly-owned operated assets, in a manner consistent with the GHG Protocol.",24,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: Yes +[Confidence]: 0.8 " +71,aramco.pdf,"GHG emissions The Company’s GHG emissions management program monitors direct (Scope 1) and indirect (Scope 2) emissions from wholly-owned operated assets, in a manner consistent with the GHG Protocol. Despite increased hydrocarbon production by 10% in 2022, total emissions (Scope 1 emissions and Scope 2 emissions) from the Company and its operationally controlled entities increased by only 6% (71.8 MMtCO2e in 2022 versus 67.8 MMtCO2e in 2021) compared to the previous year. This was enabled by more efficient operations and a reduction in flaring intensity by 17% compared to the previous year due to improved operations of the Company’s in-house flare gas recovery systems across several facilities. For more information on our flaring, please refer to page 28. Digital twins Our EXPEC Computer Center developed a solution to reduce energy intensity and emissions associated with operating subsurface artificial lift systems, leveraging digital twin technology by optimizing the performance of our electric submersible pumps (ESP).",24,"[Guess]: Yes +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +72,aramco.pdf,"The system was trial tested across 42 ESP lifted wells resulting in a 22% average reduction in power consumption, equivalent to 12 GWh of energy savings during 2022. It is projected that deploying this solution across all fields will result in a 25% average reduction in artificial lift energy intensity at Company level. What are we doing? Scope 1 and Scope 2 emissions upstream intensity: 15% reduction by 2035 (kg CO2e/boe) -15% 10.21 8.7 2018 2035 -15% Scope 1 and Scope 2 emissions GHG reduction targeted by 2035 (MMtCO 2e) 119 52 67 2035 2035 7222022 -52 Forecast business-as- usual growth Targeted GHG reduction Our Southern Area Oil Operations won a 2022 Society of Petroleum Engineers Regional Distinguished Corporate Support Award for reducing its emissions by 600,000 tCO2e 1. 2018 was the first year our GHG inventory was independently assured. 2. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised).",24,"[Guess]: Yes +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +73,aramco.pdf,2018 was the first year our GHG inventory was independently assured. 2. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. Aramco Sustainability Report 2022 24 Differentiate Sustain Diversify Enable,24,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +74,aramco.pdf,"1. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. 2. The Jazan Refinery (our downstream refinery) is excluded from our current GHG reporting because in 2022, it remains in the startup and stabilization phase and is not fully operational. Aramco is working to stabilize the refinery’s operations and complete all necessary reporting configurations before the end of 2023. Reporting on the refinery’s environmental and sustainability elements will commence immediately thereafter, in line with the Company’s commitment to operational transparency. 3. Fadhili Gas Plant is excluded from 2020 GHG emissions inventory. 4. These emission reductions were calculated from real vessel performance data at different speeds and application of the International Maritime Organization guidelines. Prior to implementation, terminals benchmarked the initiative with other worldwide ports, such as Los Angeles and San Diego in the United States, and other countries including Canada and Singapore.",25,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +75,aramco.pdf,"Prior to implementation, terminals benchmarked the initiative with other worldwide ports, such as Los Angeles and San Diego in the United States, and other countries including Canada and Singapore. Scope 1 emissions (MMtCO 2e) 55.7 55.71,2 2020 2021 2022 52.31,2 50.21,2,3 Scope 2 emissions (MMtCO 2e) 16 .1 16.11,2 2020 2021 2022 15.51,2 18.11,2,3 Upstream carbon intensity (kg CO2e/boe) 10 .3 10.31 2020 2021 2022 10.71 10.63 Upstream carbon intensity The Company’s 2022 upstream carbon intensity figure remains among the lowest in the industry at 10.31 kg CO2e/boe (2021: 10.71 kg CO2e/boe). This improvement is predominantly driven by energy efficiency, and reduced flaring across Upstream operations due to improved reliability and performance of our flare gas recovery systems (FGRS).",25,"[Guess]: Yes +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +76,aramco.pdf,"This improvement is predominantly driven by energy efficiency, and reduced flaring across Upstream operations due to improved reliability and performance of our flare gas recovery systems (FGRS). In 2022, two new FGRS became operational in both Abu Ali and Qatif central processing facility resulting in estimated annual flared gas recovery of over 1.0 bscf per year. Aramco is leveraging its R&D and technology initiatives to develop, and implement innovative approaches that could help lower emissions across our industry and have potential application in other industries. For more details on what we have done during 2022 regarding our progress on our five levers to meet our 2035 interim GHG targets, please refer to pages 26-27. Scope 3 — value chain emissions Our focus is on measurement, reporting, and management of those emissions within our direct control. To date, we have not reported Scope 3 emissions from our supply chain or from customers’ use of our products. We are working on supporting the global energy transition towards a lower carbon emissions future through investing in technologies and working with suppliers to integrate ESG performance measures through our iktva program.",25,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.8 " +77,aramco.pdf,"We are working on supporting the global energy transition towards a lower carbon emissions future through investing in technologies and working with suppliers to integrate ESG performance measures through our iktva program. Vessel Speed Program To support the national and corporate GHG reduction aspirations, our terminals instituted the Vessel Speed Program reducing the speed of vessels sailing through the Ras Tanura and Ju’aymah Port to 12 knots from 15 knots. 12 knots was determined as the optimal speed based on vessel engine efficiency, while minimizing impact on customers’ satisfaction or our reliability. It is estimated that the program has reduced the GHG emissions of visiting ships by more than 90,000 tCO2e per year4. What are we doing? Our investment in hydrogen, chemicals and renewable energy sources and the increasing share of gas in our production provide products that will support the global energy transition towards a lower carbon emissions future. We continue to invest in a number of product stewardship partnerships and technologies to reduce emissions, this includes research and development into low emissions transport solutions.",25,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 " +78,aramco.pdf,"We continue to invest in a number of product stewardship partnerships and technologies to reduce emissions, this includes research and development into low emissions transport solutions. During 2022, we increased our R&D spend on developing potential solutions that will assist the global energy transition towards a lower carbon emissions future — notably over a 45% increase in sustainable mobility R&D spend and over 380% increase in crude to chemicals R&D spend, reflecting the increasing importance of these areas to our future business. For more details on our R&D spend, please refer to pages 40-41. 2525",25,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +79,aramco.pdf,"GHG reductions targeted by 2035 ~52 1 MMtCO2e 1 MMtCO2e 11 MMtCO2e GHG reduction initiatives to 2035 Levers to achieve interim targets To achieve reductions in GHG emissions by 2035, we are focusing on five key levers: energy efficiency across our upstream and downstream assets; further reductions in methane and flaring; increased use of renewable energy sources; CCS; and development or purchase of offsets to help address hard-to-abate emissions. Energy efficiency Our plans • Continue to sustain/improve energy intensity • Optimize co-generation and steam systems • Ensure energy efficiency in new project design • Expand utilization and application of the energy efficiency digital solutions • Initiatives include gas turbine upgrades,",26,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.9 " +80,aramco.pdf,"boiler and fired heater efficiency improvements Our actions in 2022 • Achieving a 3% improvement in energy intensity performance compared to last year • Implementation of new energy efficiency technologies in our industrial and non-industrial facilities • Using modern low NOx burner technologies to boost fuel efficiency • Enhancing hydrogen blending capabilities for current boilers • Upgrading and optimizing operation of boilers, steam traps, and fired heaters • 36 organizations received the ISO 50001 certification for their energy management system • Introducing new strategies for implementing energy conservation initiatives for more than 700 buildings Flaring and methane Our plans • Commitment to OGCI near zero upstream methane intensity by 2030 and the World Bank’s “Zero Routine Flaring by 2030” initiative • Further enhance LDAR (Leak Detection and Repair) Program • Unmanned aerial vehicles and satellite methane detection Our actions in 2022 • Achieved our lowest ever flaring intensity • Upstream methane intensity of 0.05% • Implementing a Flaring Minimization Roadmap,",26,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +81,aramco.pdf,"05% • Implementing a Flaring Minimization Roadmap, with site-specific priorities across Aramco operations • Investing in and developing innovative flaring reduction technologies • Introducing a smart flaring monitoring system • Installing high efficiency burners • As part of the LDAR program, surveyed thousands of points across our operations in the Kingdom to minimize methane leaks • Installed two new Flare Gas Recovery Systems at Abu Ali and Qatif Central Processing Facility 1. This figure may not match up due to rounding. Aramco Sustainability Report 2022 26 Differentiate Sustain Diversify Enable",26,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +82,aramco.pdf,"14 MMtCO2e 11 MMtCO2e 16 MMtCO2e Renewables Our plans • Commitment to invest in 12 GW of solar and wind energy by 2030 for our business and also in support of the Kingdom’s National Renewable Program Our actions in 2022 • Sudair Solar PV Plant has reached 56% completion — power generation expected to start in Q4, 2024 • Approved installation of renewable systems to power 20 offshore water injection wells at Berri and Zuluf • Installing PV systems to power Aramco’s remote pipelines load CCS Our plans • Jubail CCS hub to capture up to 11 MMtpa by 2035 — contributing towards the Kingdom reaching its goal of 44 MMtpa of CCUS by 2035 • Jubail Hub targeted to store 9 MMtpa, with Phase 1 capturing around 6 MMtpa by 2027 from gas plants at Wasit, Fadhili and Khursaniyah,",27,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.9 " +83,aramco.pdf,"with Phase 1 capturing around 6 MMtpa by 2027 from gas plants at Wasit, Fadhili and Khursaniyah, plus circa 3 MMtpa from other industry sources • Phase 2 will capture around 5 MMtpa and may include CO2 from other facilities Our actions in 2022 • Joint Agreement signed with SLB and Linde to build the Jubail CCS hub • Identified 9 MMtpa of storage capacity with CO2 injection expected by 2027 • Captured around 238 MtCO2 from our pilot Hawiyah Natural Gas Plant resulting in a cumulative total of about 1,570 MtCO2 stored in the reservoir, since the CO2 injection started in 2015 Offsets Our plans • Develop carbon offsets from natural climate solutions • Ambition to plant 300 million mangroves in Saudi Arabia and 350 million mangroves outside the Kingdom by 2035 — expected to remove and offset an estimated 16 MMtCO2e by 2035 • Assist in developing a credible and functioning carbon credit market in the Kingdom for carbon offsets and credits produced in the MENA region Our actions in 2022 • Participated,",27,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: Yes +[Confidence]: 0.8 " +84,aramco.pdf,"and purchased credits, in the first carbon credit auction held in 2022 through the Regional Voluntary Carbon Market in Saudi Arabia 2727",27,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +85,aramco.pdf,"Upstream methane intensity (%) 0.05 0.05 2020 2021 2022 0.05 0.063 Flaring intensity (scf/boe) 4.60 4.601,2 2020 2021 2022 5.512 5.972,3 Flaring and methane Flaring of waste gases has long been recognized as one of the most significant contributors to GHG emissions in the oil and gas sector. Aramco has been a pioneer in gas flaring reduction and now has industry-leading methane intensity and gas flaring metrics. Minimizing flaring Aramco is a signatory to the World Bank’s “Zero Routine Flaring by 2030” initiative and is committed to sharing best practices with industry partners to accelerate global flaring reduction. During 2022, our flaring intensity fell by 17%, (4.601 scf/boe in 2022 versus 5.51 scf/boe in 2021) due to significant investments, installations and improved operations of our in-house flare gas recovery systems across several facilities and a reduction in routine and non-routine flaring.",28,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +86,aramco.pdf,"From April 2022, two new FGRS became fully operational in both Abu Ali and Qatif central processing facility, which will result in an expected annual reduction of 1.5 bscf per year. Substantial investments and developments in innovative flaring reduction technologies continued throughout 2022. These included implementing the Flaring Minimization Roadmap, which has identified priorities across Aramco operations, with every operating facility having a flare minimization plan and targets. Aramco’s operations are monitored in real-time at our Fourth Industrial Revolution (4IR) Center in Dhahran. This has enabled us to achieve near zero routine flaring already. We have maintained a flare volume of < 1% of total raw gas production since 2012. Methane Addressing methane emissions is one of the fastest, most effective ways to slow the rate of global temperature rise. An enhanced Leak Detection and Repair program for the Company’s methane emissions in the Kingdom prioritizes actions at operating facilities. Hundreds of thousands of points are surveyed across our operations to minimize potential methane leaks. We use drones to monitor and measure methane emissions from our operating facilities.",28,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +87,aramco.pdf,"Hundreds of thousands of points are surveyed across our operations to minimize potential methane leaks. We use drones to monitor and measure methane emissions from our operating facilities. In addition to LDAR, we are assessing and deploying remote detection solutions and technologies such as the use of satellite monitoring. Aramco’s upstream methane intensity measures the ratio of our upstream methane emissions for operated assets against the quantity of marketed natural gas. Our upstream methane intensity remained low in 2022 at 0.05% (0.05% in 2021) and is already well below the OGCI ambition to achieve at least 0.20% by 2025. Two technologies In 2022, two technologies were piloted to enhance the management of flaring emissions: • A flaring monitoring system detects flaring performance and optimizes burner feed inputs via cameras equipped with artificial intelligence programs. • We piloted portable ignition systems for on-demand flaring needs, replacing continuous flaring and emissions. What are we doing? We have maintained a flare volume of < 1% of total raw gas production since 2012 1. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised).",28,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +88,aramco.pdf,"We have maintained a flare volume of < 1% of total raw gas production since 2012 1. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. 2. The Jazan Refinery (our downstream refinery) is excluded from our current GHG reporting because in 2022, it remains in the startup and stabilization phase and is not fully operational. Aramco is working to stabilize the refinery’s operations and complete all necessary reporting configurations before the end of 2023. Reporting on the refinery’s environmental and sustainability elements will commence immediately thereafter, in line with the Company’s commitment to operational transparency. 3. Fadhili Gas Plant is excluded from our 2020 reporting. Aramco Sustainability Report 2022 28 Differentiate Sustain Diversify Enable",28,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +89,aramco.pdf,"As of 2022, we achieved an average thermal efficiency of 70.7% in our interconnected co-generation facilities Energy intensity (thousand Btu/boe) 146.2 146.2 1 2020 2021 2022 116.6 1,2,4 112.4 1,2,3,4 Energy management Co-generation Highly efficient co-generation plants enable us to produce electricity as a byproduct of our operations and are enabling self-sufficiency in electrical power generation for our own operating plants. We are retrofitting some of our existing plants with co-generation systems to create energy, as well as heat for oil and gas production processes. We analyze the real-time data of the power generated, which allows us to streamline our carbon footprint. We are harnessing what would otherwise be waste energy by maximizing the conversion of energy released from the combustion of fuel into power and steam to achieve improved thermal energy efficiency and reduce overall GHG emissions. In 2022, we achieved an average thermal efficiency of 70.7% (70.8% in 2021) in our interconnected co-generation facilities.",29,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +90,aramco.pdf,"In 2022, we achieved an average thermal efficiency of 70.7% (70.8% in 2021) in our interconnected co-generation facilities. Energy efficiency The Company seeks to reduce energy consumption at facilities, design new facilities to be energy efficient, and promote energy efficiency in Saudi Arabia. While our reporting boundary has expanded as per footnote 1 below, in 2022, at a Company in-Kingdom level, the energy intensity was 112.9 thousand Btu/boe (a fall of 3% from prior year), which demonstrates continued improvement in our energy efficiency initiatives across our business. We started an energy efficiency management program in 2000. The program has evolved through the implementation of energy efficiency initiatives such as process improvements, fuel gas optimization, higher co-generation utilization, continuous performance monitoring of significant energy users, reduction in energy for crude oil transportation, and load management of top energy users. Several initiatives have been planned to improve energy efficiency, including: • Upgrading of simple cycle gas turbines with energy efficient combined cycle systems; • Replacement of older inefficient boilers with highly efficient fast ramp up boilers; and • Implementation of advanced digital solutions to improve energy efficiency performance.",29,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +91,aramco.pdf,"At the end of 2022, all our operational facilities have received the ISO 50001 certification for their energy management system (EnMS). EnMS enables our facilities to focus on an ongoing, sustained improvement in energy efficiency, and reduction in greenhouse gas emissions, along with monetary savings as a result of smarter energy utilization and improved energy efficiency. 1. As we progress on our reporting journey and our controls around ESG data mature, for this metric from 2022 onwards, we have expanded the reporting boundary from Company in-Kingdom to operational control. The 2021 and 2020 figures are at a Company in-Kingdom level only. In 2022, at a Company in-Kingdom level, the energy intensity was 112.9 thousand Btu/boe. 2. The Jazan Refinery is excluded from our reporting because in 2022, it remains in the startup and stabilization phase and is not fully operational. Aramco is working to stabilize the refinery’s operations and complete all necessary reporting configurations before the end of 2023. Reporting on the refinery’s environmental and sustainability elements will commence immediately thereafter, in line with the Company’s commitment to operational transparency. 3. Fadhili Gas Plant is excluded from our 2020 reporting.",29,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +92,aramco.pdf,"Reporting on the refinery’s environmental and sustainability elements will commence immediately thereafter, in line with the Company’s commitment to operational transparency. 3. Fadhili Gas Plant is excluded from our 2020 reporting. 4. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. Innovative Energy Project of the Year Award Aramco won the Innovative Energy Project of the Year Award from the Association of Energy Engineers in recognition of implementing the Energy Demand Forecasting Solution in Oil and Gas facilities. The solution was recognized due to its novel machine learning capabilities that accurately forecast energy demand. What are we doing? 2929",29,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +93,aramco.pdf,"Aramco’s strategy is to increase its production of hydrocarbons while seeking to maximize opportunities for lower carbon products. We recognize the need to reduce emissions and support a global orderly energy transition towards a lower carbon emissions future through investing in technologies and offering lower carbon products, such as e-fuels, and working with suppliers, to integrate ESG performance measures through our iktva program. Low carbon fuels and transport technologies Achieving sustainable mobility requires collaboration across the value chain to meet consumer demand for affordable, low emission transport. Electric vehicles are fast growing and will play an important role in mitigating climate change when integrated with renewable electricity. However, in the near term, transport electrification alone is unlikely to be adequate to meet global CO2 mitigation goals. This has to be complemented by advanced combustion engines, fuel cell vehicles, and low carbon fuels, including renewable fuels and hydrogen. Sustainable mobility Aramco has around 100 scientists and engineers in four locations across the world working on the challenges of sustainable mobility.",30,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.8 " +94,aramco.pdf,"Sustainable mobility Aramco has around 100 scientists and engineers in four locations across the world working on the challenges of sustainable mobility. Through our global network, we are working to create breakthrough transportation technologies with the goal of improving efficiency that has the potential to reduce emissions — both CO2 and other air pollutants, including NOx and particulates. We are seeking to redesign internal combustion engines, and the fuels that power them including advanced combustion systems, novel engine architectures, and innovative after treatment systems. We have two flagship projects that aim to advance the development of low carbon synthetic fuels, one in Spain and another in Saudi Arabia. Aramco’s low carbon synthetic fuels plan is to combine CO2 captured from industrial processes or directly from the air with green hydrogen and target a CO2 reduction potential of at least 80% on a lifecycle basis.",30,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 " +95,aramco.pdf,"Aramco’s low carbon synthetic fuels plan is to combine CO2 captured from industrial processes or directly from the air with green hydrogen and target a CO2 reduction potential of at least 80% on a lifecycle basis. We are researching: Pathways to lower carbon energy Turbulent jet ignition Dilute boost engines Gasoline compression ignition Opposed piston engines For more information on advanced engine technologies see our website Scan here Demonstrating sustainable fuels through Formula racing Building on our strategic partnership with Formula 1 (F1) to accelerate our engineering excellence and achieve our respective net zero targets, we are working closely with F1 to support their goal of fully switching to sustainable fuels by 2026. In February 2022, Aramco entered into a strategic partnership with the Aston Martin Aramco Cognizant Formula One™ Team to promote the development of highly efficient internal combustion engines to accelerate high performance sustainable fuels and advanced lubricants, making use of the diverse technologies Aramco has developed. Beyond F1, Aramco signed a Memorandum of Understanding with Formula Motorsport Limited to introduce alternative, lower carbon fuels in the Formula 2 and Formula 3 racing championships beginning in 2023.",30,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +96,aramco.pdf,"Beyond F1, Aramco signed a Memorandum of Understanding with Formula Motorsport Limited to introduce alternative, lower carbon fuels in the Formula 2 and Formula 3 racing championships beginning in 2023. Through this collaboration, we plan to demonstrate the potential of liquid synthetic fuels to reduce emissions both in motorsport and the broader transportation sector. What are we doing? Aramco Sustainability Report 2022 30 Differentiate Sustain Diversify Enable",30,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +97,aramco.pdf,"Aramco Ventures and our $1.5 billion Sustainability Fund Aramco Ventures is our venture capital vehicle, that invests globally in innovative startup companies. Aramco Ventures supports three key elements of Aramco’s overall strategy: • Commitment to innovation and technology leadership. • Supporting our digitalization journey and use of Fourth Industrial Revolution (IR 4.0) technologies. • Supporting the Company’s sustainability ambitions and development of new lower carbon energy solutions. As we accelerate the implementation of our vision to become the world’s preeminent integrated energy and chemicals company, the breadth of our businesses, operations, and geographic presence offer unique opportunities to pilot and deploy the technologies created within the startup companies we invest in. Launched in 2022, Aramco Ventures’ new $1.5 billion Sustainability Fund will accelerate the Company’s progress towards developing and using innovative solutions to address the climate challenge, and represents a major expansion of our sustainability investment activities.",31,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +98,aramco.pdf,"The Sustainability Fund’s focus is on sectors closely aligned with Aramco’s decarbonization and lower carbon energy solutions business strategies, including: • Carbon capture, utilization and storage; • Renewable energy and energy storage; • Energy efficiency technologies; • Nature-based solutions; • Hydrogen and ammonia value chains; • Synthetic renewable fuels, including direct air capture; and • Digital sustainability solutions. What are we doing? The Sustainability Fund builds on Aramco Ventures’ existing strategic venturing program, which invests in companies developing technologies with strategic importance to Aramco to accelerate their development and deployment in Aramco’s operations. This fund has invested in various companies since inception, with three companies achieving IPO, six reaching “Unicorn1” status, and more than 25 technologies deployed in Aramco. This fund will continue to operate focusing on digital and industrial technology domains. Our $1.5 billion Sustainability Fund will be among the largest sustainability focused venture capital programs announced globally, and the largest by any oil and gas producer. It will join Aramco Ventures’ other investment programs: • As a founding member of the OGCI, Aramco participates in OGCI’s Climate Investments Fund.",31,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +99,aramco.pdf,"It will join Aramco Ventures’ other investment programs: • As a founding member of the OGCI, Aramco participates in OGCI’s Climate Investments Fund. This is a $1 billion fund that includes the participation of 11 major oil and gas companies. It is focused on investments in carbon capture, utilization, and storage, methane emissions reduction, and carbon dioxide emissions reduction in the oil and gas and transport sectors. • Prosperity7, Aramco’s $1 billion diversified growth venturing program invests in disruptive technologies and start-ups outside of the energy sector. The program focuses on investing in highly scalable start-ups in the U.S. and China. The program has made over 25 investments to date. 1. Unicorn companies are those that reach a valuation of $1 billion without being listed on the stock market. 3131",31,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +100,aramco.pdf,"Hydrogen Hydrogen is a primary element in oil and gas, and holds significant potential as a clean, affordable energy that could support emissions reductions in hard-to-decarbonize sectors such as heavy-duty transport, heating, and industrial applications. We believe hydrogen has significant potential to provide a material reduction in GHG emissions, as a global market develops over the next decade. Hydrocarbon’s crucial role in the development of a global hydrogen business Despite the interest and possibility of producing hydrogen from multiple energy sources, in the short and medium term, hydrocarbons will remain the primary feedstock for its production. Hydrogen has the potential to become a tradeable commodity, which opens commercial opportunities for our business over the medium to long term. At the same time, investments in low carbon hydrogen can help foster new technological and industrial development in economies around the world, while also creating skilled jobs. Natural gas and hydrogen Natural gas has the potential to be a viable, cost-effective feedstock for blue hydrogen production. Natural gas is the most used feedstock for hydrogen production today.",32,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +101,aramco.pdf,"Natural gas and hydrogen Natural gas has the potential to be a viable, cost-effective feedstock for blue hydrogen production. Natural gas is the most used feedstock for hydrogen production today. Aramco is a steering member of The Hydrogen Council, a CEO-led organization that promotes collaboration between governments, industry and investors to provide guidance on accelerating the deployment of hydrogen solutions globally. Blue hydrogen certification In 2022, Aramco and the SABIC Agri-Nutrients Company obtained the world’s first independent certifications recognizing “blue” hydrogen and ammonia production. The certification was granted by an independent testing, inspection and certification agency based in Germany, to SABIC AN, in Jubail, for 37,800 tonnes of blue ammonia and to Aramco’s wholly-owned refinery (SASREF), also in Jubail, for 8,075 tonnes of blue hydrogen. To certify ammonia and hydrogen as “blue” a significant part of the CO2 associated with the manufacturing process must be captured and utilized in downstream applications. Capitalizing on this agreement, we made the world’s first commercial shipment of blue ammonia to South Korea. What are we doing? Aramco Sustainability Report 2022 32 Differentiate Sustain Diversify Enable",32,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +102,aramco.pdf,"The energy transition offers challenges but also various opportunities for us to diversify our portfolio into new, lower impact value chains, including utilizing hydrocarbons for non- combustion uses, such as non-metallic materials and chemical applications, as well as investment in renewables projects. Such actions provide us with commercial opportunities and help improve our resilience to changes in customer demands caused by the energy transition. The materials transition According to a report issued this year by the Atlantic Council, a net zero energy system will be six times as mineral intensive as its hydrocarbon- based predecessor. However, the supply chains needed to deliver these minerals are significantly underdeveloped and undercapitalized; there is a projected $2 trillion investment gap over the next 15 years for the minerals needed to limit climate change — the world is underprepared for the risk of surging transition-related mineral demand. For example, one megawatt of installed renewable energy capacity utilizes eight to 11 tonnes of petrochemicals-based materials. Energy demand is projected to more than double from 79 gigatonnes in 2011 to 167 gigatonnes in 2060. Materials production, use, and eventual disposal already accounts for almost a quarter of all global CO2 emissions.",33,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +103,aramco.pdf,"Materials production, use, and eventual disposal already accounts for almost a quarter of all global CO2 emissions. The increase in materials use, even if decoupled from economic growth, will be accompanied by a further rise in CO2 emissions, particularly in hard-to-abate- industries. For example, emissions from concrete are projected to total almost four gigatonnes of CO2 by 2050 because of the growth in demand. Meanwhile, the iron and steel sector accounts for more emissions than the whole of road freight, and global demand for steel alone is expected to rise by more than a third by 2050. To achieve an accelerated materials transition, cutting-edge R&D, innovation, and the necessary investments are essential. At Aramco, we see opportunities arising from the materials transition. Steel, concrete and other traditional materials are responsible for significant CO2 emissions. Non-metallic materials, (e.g. polymers) and other carbon- based materials, can provide durable materials at a lower GHG impact with potential use in housing, construction, infrastructure, automotive, and renewables. At Aramco, we are working across them all.",33,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +104,aramco.pdf,"At Aramco, we are working across them all. No matter which energy transition scenario plays out, oil demand from the petrochemicals sector is likely to remain robust. In fact, under a net zero scenario, petrochemicals could account for more than half of total global oil demand by 2050. The more intense the transition, the more important petrochemicals will be to the oil and gas industry, and other industries. Our pursuit of sustainable materials is underpinned by a powerful business case that is driving our world leading chemicals growth ambitions — making our business portfolio even more robust. Developing and growing lower environmental impact value chains There is a projected $2 trillion investment gap over the next 15 years for the minerals needed to limit climate change 3333 Differentiate Sustain Diversify Enable",33,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +105,aramco.pdf,"Liquids-to-chemicals Our 2020 acquisition of a 70% stake in SABIC brought together two global companies committed to growth and value creation in petrochemicals. This propels our strategy to convert up to 4 million barrels per day of liquids-to-chemicals. More advanced, more sustainable materials would strengthen the power of our net zero ambition and our chemicals’ strategies. To earn a larger share of the materials market in high volume applications, we must be cost and GHG competitive. In 2022, we announced the first large-scale deployment of our crude to chemicals cracking technology at our S-Oil integrated downstream hub in Korea and a joint project between Aramco and SABIC to develop a crude-to- chemicals complex in Ras Al-Khair. These are major steps forward in our downstream business, and show the power of technical innovations to meet our ambitions. Conversion of crude oil into chemicals diverts our carbon from the transportation fuel value chain into durable goods. Our chemicals business spans production of basic chemicals such as aromatics, olefins, and polyolefins to more complex products such as polyols, isocyanates, and synthetic rubber.",34,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +106,aramco.pdf,"Our chemicals business spans production of basic chemicals such as aromatics, olefins, and polyolefins to more complex products such as polyols, isocyanates, and synthetic rubber. Our crude-to-chemicals technologies have the potential to deliver higher chemical yields. By converting crude oil directly to chemicals, we will optimize or eliminate several energy- intensive industrial processes, creating cost and operational efficiencies that result in high value chemical product streams. TC2CTM — Thermal Crude to Chemicals The TC2C™ platform was designed by Aramco and its partners to produce greater than 70% chemicals from every barrel of crude oil, while maintaining top tier efficiency. To reduce CO2 emissions while also improving profitability, TC2C™ deploys a simplification of the crude oil separation process, relative to a traditional fuels-directed refinery, thereby reducing energy and utility requirements. The reuse of heat from the steam cracking section reduces energy consumption even further. The optimized integration of the hydroprocessing reactor platforms into a single high-pressure loop enables a significant reduction of equipment count compared to more traditional approaches. Furthermore, through careful management of high-value streams such as hydrogen, and by internally recycling low-value streams, production of waste from the process is minimized.",34,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 " +107,aramco.pdf,"Furthermore, through careful management of high-value streams such as hydrogen, and by internally recycling low-value streams, production of waste from the process is minimized. Such efficiencies in energy and material use are major factors in reducing the carbon footprint and capital expenditure of a TC2C™ facility. TC2C™ was selected in 2022 for its first commercial deployment, as part of our S-Oil integrated downstream hub (Shaheen project) in South Korea. What are we doing? For more information on our chemicals business, please refer to our website Scan here Aramco Sustainability Report 2022 34 Differentiate Sustain Diversify Enable",34,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +108,aramco.pdf,"Non-metallics Non-metallics are materials such as plastics and other such applications, that can replace traditional materials and minerals. They can provide improved performance and lower maintenance costs and have potentially lower life cycle costs, with greater resistance to corrosion, and a lower carbon footprint than like-for-like alternatives. In the oil and gas industry, plastics are already being used for various applications, such as in pipelines. In the future, carbon fiber reinforced plastics will be used to manufacture large diameter pipelines with greater strength and operating efficiency than legacy steel-based pipelines. Today, the cost of advanced composite materials are becoming more competitive and we need to continue to invest in R&D in this sector — by finding new solutions and efficiencies, we can help drive the adoption of new materials at scale across the globe and thereby help meet net zero ambitions. Renewable energy investments Renewable energy, including power from solar and wind, is an energy source required under any energy transition scenario. With more than 320 sunny days per year and ample wind, Saudi Arabia’s geography and climate hold great potential for harnessing these renewable energy sources. Deployment of renewable resources within the Kingdom will reduce GHG emissions and support long-term prosperity.",35,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +109,aramco.pdf,"Deployment of renewable resources within the Kingdom will reduce GHG emissions and support long-term prosperity. The Saudi government has established a National Renewable Program with the goal of increasing the generation capacity of renewable energy sources to over 58 GW by 2030. 40 GW is planned from solar, 16 GW from wind energy and the balance from other renewable energy sources. Aramco is supporting the Kingdom on this journey and has committed to investing in 12 GW of solar and wind energy by 2030 by being part of a consortium led by ACWA Power to develop the 1.5 GW Sudair solar plant, a key project in Saudi Arabia’s renewable energy push. We will use the allocation of renewable energy credits from these investment toward offsetting the emissions associated with power supplied to our operations. Construction of the Sudair Plant has reached 56%. The project is expected to commence power generation in Q4, 2024. Microalgae Aramco is exploring various applications for microalgae. The Arabian Peninsula is ideal for microalgae production with its extensive, unique sabkha (salt flat) formations along the Arabian Gulf.",35,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +110,aramco.pdf,"Microalgae Aramco is exploring various applications for microalgae. The Arabian Peninsula is ideal for microalgae production with its extensive, unique sabkha (salt flat) formations along the Arabian Gulf. Through the photosynthesis process, algae efficiently converts sunlight, CO2, water, and the available nutrients in the wastewater into a carbohydrate and protein-rich biomass, and fresh oxygen, which is then released back into the atmosphere. The resulting biomass can then be converted into many useful products such as biofuel, animal feed, and pharmaceuticals. Sabkhas can be easily converted to saline algae production ponds. Sabkha areas are in close proximity to many of Aramco’s industrial facilities, meaning that emissions can be utilized to enrich algae ponds, increasing the potential for productivity and in turn reduce the Company’s emissions. Aramco also trialled an artificial carbon capture and algae production system, known as the “Clima Tree”. This uses a microalgae photobioreactor integrated with a patented CO2 scrubber to capture and store CO2 in the form of a carbonate mineral, and produce algae biomass as a byproduct. The Clima Tree has been designed by Aramco in collaboration with Greengroves Environmental Services.",35,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +111,aramco.pdf,"The Clima Tree has been designed by Aramco in collaboration with Greengroves Environmental Services. What are we doing? NEXCEL — Non-metallic Excellence and Innovation Center Aramco and the China Building Materials Academy (CBMA) launched NEXCEL, a new Non-metallic Excellence and Innovation Center, to further advance the use of non-metallic materials in the building and construction sector. NEXCEL promotes the development and application of non-metallic technologies by exploring opportunities for joint projects in research and development, standards development and adoption, professional development and certifications, advocacy and international outreach. NEXCEL joins the Aramco-launched NIC: Non-metallic Innovation Centre at The Welding Institute in Cambridge, U.K.; and NEx: A Center of Excellence for Non-metallic Building Materials at the American Concrete Institute, headquartered in Michigan, USA. What are we doing? 3535",35,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +112,aramco.pdf,"Collaboration with partners to develop and deploy technologies and infrastructure at speed and scale is necessary to support emissions reductions and the development of low carbon business opportunities. Working with other companies, including contractors, industry peers or companies in our product value chains, and with academia and research institutes, offers an opportunity to share learning and risk, and multiply the impact of investment. Carbon capture and storage CCS is identified as a major tool to achieve the global net zero emissions ambition. Industry and governments are responding to this. In 2022, more than 60 new CCS facilities were announced globally (around a 40% increase in CCS capacity since last year) and resulting in the CCS capacity of all CCS facilities under development globally to 244 MMtCO2 per annum1. We believe capturing and storing, and, where possible, reusing CO2 has the potential to significantly reduce global emissions. Saudi Arabia has the know-how and scale to capture and store large amounts of CO2, which could be reused and reutilized. It is an important part of the circular carbon economy and the central lever to support the decarbonization of our own business and operations.",36,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +113,aramco.pdf,"It is an important part of the circular carbon economy and the central lever to support the decarbonization of our own business and operations. It is also an essential element of an integrated blue ammonia and hydrogen program. Partnerships will be required for the development of commercial solutions. Aramco has set a goal of developing CCS capacity to capture up to 11 MMtCO2 annually by 2035. The ability to grow our CCS capacity is critical to our efforts to decarbonize, and will be supported by government incentives that will help to develop the infrastructure that will be required. In parallel, we are developing opportunities to use captured CO2 for conversion into other materials or products with higher economic value and where either combustion is avoided or lower levels of CO2 are emitted, e.g., plastics, concrete and biofuels. CO2 is a primary building block, which can be used both directly and as a feedstock. Current advanced CO2 utilization takes place in chemicals production, mineralization processes, and plastics and polymer production. We are also exploring direct air capture — a less mature technology — with technology partners.",36,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +114,aramco.pdf,"Current advanced CO2 utilization takes place in chemicals production, mineralization processes, and plastics and polymer production. We are also exploring direct air capture — a less mature technology — with technology partners. We realize the value that a decarbonization lever like CCS can achieve and as such we have fast-tracked the assessment and the development timeline for our first saline aquifer CO2 CCS project. The assessment entailed the deployment of multiple rigs to drill evaluation wells, and simultaneously acquiring all relevant subsurface data, in order to expedite the technical evaluation of the saline aquifer sink. This has lead to the announcement of our world-scale CCS hub that will have the capacity to deliver 9 MMtpa of CO2 by 2027 and sequester it in our saline aquifer sink. Collaboration with partners to develop and deploy technologies and infrastructure at speed and scale CO2 nanobubbles When CO2 is captured in liquid form, CO2 bubbles are formed. We are investigating CO2 nanobubbles (CO2 bubbles with diameters less than 200 nm) for near wellbore stimulation in conventional formations as they have the ability to sequester more CO2 in the same reservoir than common larger sized CO2 bubbles.",36,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +115,aramco.pdf,"CO2 nanobubbles are also being considered for green energy applications, such as algal biocrude production. For unconventional formations, carbon capture underground treatment and sequestration technology is being explored to chemically treat formations with the goal of increasing sequestration capacity. What are we doing? 1. Global CCS Institute – Global Status of CCS 2022 Report. Aramco Sustainability Report 2022 36 Differentiate Sustain Diversify Enable",36,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +116,aramco.pdf,"Jubail carbon capture and storage hub CCS is one of the key elements of the Saudi Green Initiative and a major contributor to the Kingdom’s plan to achieve its 2060 net zero ambition. In November 2022, the Ministry of Energy announced a target of capturing 44 MMtpa of CO2 by 2035. Aramco is a key partner supporting this ambition, and we signed a joint development agreement with SLB and Linde in building a CCS hub in the Jubail industrial zone in the Eastern Province of Saudi Arabia. This project will be one of the largest CCS hubs globally, and plans to capture up to 9 MMtpa of CO2 per year from 2027 onwards (Aramco’s share is around 6 MMtpa and our partners’ share is 3 MMtpa). What are we doing? To execute the project, Aramco has signed a joint development agreement with experts in the field to design, develop and construct the CCS hub, with a planned completion date of 2027. Phase one of the CCS hub is intended to capture around 6 MMtpa CO2 by 2027 from three Aramco gas plants (Fadhili, Khursaniyah, and Wasit).",37,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +117,aramco.pdf,"Phase one of the CCS hub is intended to capture around 6 MMtpa CO2 by 2027 from three Aramco gas plants (Fadhili, Khursaniyah, and Wasit). Phase 2 of the CCS hub is intended to capture around 5 MMtpa by 2035. By 2035 up to 11 MMtpa of CO2 will be captured from Aramco facilities and transported through a pipeline network via the Jubail CCS hub and stored below ground in saline aquifers. Aramco’s planned CCS facilities in Saudi Arabia Riyadh Fadhili Khursaniyah Wasit Saline aquifers Saudi Arabia Phase 1 2027 2035 Phase 2 Total ~6 MMtpa ~11 MMtpa ~5 MMtpa Jubail CCS hub 3737",37,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +118,aramco.pdf,"Offsets and carbon credits A carbon offset is a reduction in emissions of CO2 or other GHGs made to compensate for emissions made elsewhere. A carbon credit is an instrument traded in carbon markets representing this reduction and may take alternative names such as allowance, permit, or reduction unit. Aramco seeks to generate carbon credits by undertaking greenhouse gas reduction projects. The use of offsets is an important part of Aramco’s net zero planning as they enable the mitigation of hard to abate emissions. They also allow us to accelerate emissions reduction action, particularly where alternatives, such as CCS, are not fully mature. Carbon reduction operations may include a variety of techniques, such as natural climate solutions, or engineered carbon removal. Commercial arrangements can vary from directly financed projects and joint ventures, to fund investments, sustainable financing mechanisms in the form of carbon credits and direct purchases of carbon offsets from a voluntary carbon market. While all these techniques help to generate carbon offsets, our goal is to diversify the carbon offsets portfolio, balancing the carbon footprint with the value of co-benefits for the communities and ecosystems where we operate.",38,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +119,aramco.pdf,"While all these techniques help to generate carbon offsets, our goal is to diversify the carbon offsets portfolio, balancing the carbon footprint with the value of co-benefits for the communities and ecosystems where we operate. Aramco has planted 24 million mangroves along the Arabian Gulf and Red Sea coastlines and over 3 million terrestrial native trees — and we plan to plant millions more Concrete and CO2 capture The manufacture of cement — the principal ingredient of concrete — produces around 7% of annual global GHG emissions. If the global precast concrete industry implemented CO2 curing technology, it is estimated it could recycle at least 63 million tonnes of CO2 every year. The actual figure may potentially be as high as 246 million tonnes of CO2. At Aramco, we have developed a pilot program that has delivered storage of 150 to 200 kg of CO2 in a tonne of cement in precast concrete, or 60 to 80 kg of CO2 in 1 m3 of precast concrete, outside of the laboratory at a precast concrete plant. We achieved this by combining the CO2 with steam. What are we doing?",38,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +120,aramco.pdf,We achieved this by combining the CO2 with steam. What are we doing? Aramco Sustainability Report 2022 38 Differentiate Sustain Diversify Enable,38,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +121,aramco.pdf,"Natural climate solutions Natural climate solutions are conservation, restoration and improved land management actions that increase carbon storage or avoid GHG emissions in landscapes and wetlands across the globe. Combined with innovations in clean energy and other efforts to decarbonize the world’s economies, natural climate solutions can deliver significant support to combating to climate change. Aramco is exploring the use of natural climate solutions to generate offsets. To date, Aramco has planted 24 million mangroves along the Arabian Gulf and Red Sea coastlines and 3 million terrestrial native trees — and we plan to plant millions more. Mangroves and trees form a natural sink for CO2. Mangrove and native tree planting also restores natural habitats, encouraging biodiversity, and act as a natural barrier to coastal erosion. To develop useable offsets, Aramco plans to develop baselines, confirm methodologies and establish third-party measurement and verification of carbon stored in mangroves and other trees being planted in Saudi Arabia and abroad. Aramco is working with external experts to assess the baseline ecosystem carbon stock around our existing mangrove forests to support and facilitate current and future verification assessments of carbon offsets from natural climate solutions projects.",39,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +122,aramco.pdf,"Aramco is working with external experts to assess the baseline ecosystem carbon stock around our existing mangrove forests to support and facilitate current and future verification assessments of carbon offsets from natural climate solutions projects. A third-party assessment, using The Blue Carbon Initiative methodology1, was undertaken to quantify the cumulative levels of carbon sequestered through mangroves planted by Aramco alongside both coasts of Saudi Arabia over a number of decades. The assessment recorded an average carbon stock of around 340,000 tCO2e (between 276,000 tCO2e and 410,000 tCO2e.) In line with the Saudi Green Initiative, which has a target to plant 10 billion trees and increase the percentage of protected areas in Saudi Arabia to more than 30%, Aramco plans to invest in planting 31 million mangroves in the Kingdom by 2025, 300 million in Saudi Arabia by 2035, with a further and 350 million mangroves outside Saudi Arabia by the same date. Carbon markets Putting a price on carbon would be a key enabler for motivating investment in emerging technologies that are currently not cost-effective. Aramco favors and supports efficient and cost-effective ways to set a carbon price.",39,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +123,aramco.pdf,"Carbon markets Putting a price on carbon would be a key enabler for motivating investment in emerging technologies that are currently not cost-effective. Aramco favors and supports efficient and cost-effective ways to set a carbon price. We believe market mechanisms that address climate Captura Captura, one of the latest startups invested in by Aramco Ventures, is exploring and looking to scale-up the potential for low-cost atmospheric carbon removal by leveraging the world’s largest natural CO2 absorber — the ocean. With minimal impacts on the environment and using only renewable electricity and ocean water as inputs, its patented electrodialysis process generates a stream of pure CO2 that can then be sequestered or utilized to make other low carbon products. Captura’s ocean carbon capture represents an innovative and potentially cost-effective approach to reducing atmospheric CO2. It can also be integrated with desalination infrastructure, which is already deployed at large-scale in Saudi Arabia. What are we doing? change and sustainable development, and take the economic circumstances of developing countries into account, offer a good balance between driving emissions reductions and supporting economic growth.",39,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +124,aramco.pdf,"What are we doing? change and sustainable development, and take the economic circumstances of developing countries into account, offer a good balance between driving emissions reductions and supporting economic growth. To be effective, any framework or market-based mechanism should cover all emitting sectors and all types of GHG emissions, recognize carbon intensity differentiation, equity, and revenue neutrality, as well as transferability of potential credits. Voluntary markets enable private investors, governments, non-governmental organizations, and businesses to purchase carbon credits to offset their emissions. The Regional Voluntary Carbon Market In 2022, Aramco signed a Memorandum of Understanding (MoU) with Saudi Arabia’s Public Investment Fund to support the establishment of the Regional Voluntary Carbon Market in Riyadh and participated in its inaugural auction, where 1.4 million carbon credits were sold, of which 650,000 were purchased by Aramco. 1. For more information on The Blue Carbon Initiative methodology. 3939",39,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +125,aramco.pdf,"Total R&D spend1 ($ million) 1,178 1,178 2020 2021 2022 1,033 755 The credits sourced through the auction are accredited by reputable international standards bodies compliant with globally accepted offsetting schemes (CORSIA) and originate from a variety of carbon reducing projects in developing countries between 2018 and 2020. Use of carbon offsets Aramco is building a portfolio of carbon offsets that is either generated through the projects it invests in, or purchased in the voluntary carbon markets. These carbon offsets will be used to offset the Company’s residual emissions once we establish our annual targets. Aramco is actively engaging in the development of global carbon markets through its memberships of the International Emission Trading Association and OGCI. Additionally, through Aramco Venture’s Sustainability Fund, we are planning to invest in new technologies promoting the development of global voluntary carbon markets.",40,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +126,aramco.pdf,"Additionally, through Aramco Venture’s Sustainability Fund, we are planning to invest in new technologies promoting the development of global voluntary carbon markets. Leveraging technology We have a track record of innovation and technology development and we recognize that a successful energy transition requires collaboration with a wide range of business and technology partners to develop the solutions needed: • As the energy transition gathers pace, Aramco is leveraging technology and innovation toward a low carbon future and driving sustainable energy solutions across our business and the industries we supply; and • We are innovating toward more sustainable solutions to help drive our positive impact on society and boost the quality of life for future generations. Embracing data-driven decision making: Aramco’s Support for the Archie Initiative As part of our ongoing efforts to drive sustainability and transparency in the energy sector, we support the Archie Initiative, an innovative scientific project aimed at enhancing GHG emissions estimations and fostering transparency within the global energy supply chain. The Initiative brings together leading researchers, analysts, energy producers and thought leaders from academia and industry to collaborate and provide data on the carbon intensities of various energy sources, enabling better-informed decision-making.",40,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +127,aramco.pdf,"The Initiative brings together leading researchers, analysts, energy producers and thought leaders from academia and industry to collaborate and provide data on the carbon intensities of various energy sources, enabling better-informed decision-making. The Initiative utilizes widely accepted life cycle analysis methods to enable a scientifically robust assessment and quantification of GHG emissions from various stages of the energy supply chain worldwide. We believe our partnership can contribute to a more data-driven energy sector, promoting more sustainable and responsible energy choices for the benefit of shareholders, customers, and the global community. What are we doing? 1. Total Group R&D including SABIC. 2. Includes direct R&D program costs plus estimated overheads. 3. Does not include SABIC R&D expenses. In 2022, our sustainability-related R&D was $435 million2, which equated to 59% (an increase of 7% from 2021) of total 2022 R&D spend of $737 million3. Our R&D spend encompassed sustainability focused solutions to improve our business and energy efficiency, lower our carbon footprint and enhance company circularity, as well as supporting the global energy transition towards a lower carbon emissions future.",40,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +128,aramco.pdf,"Our R&D spend encompassed sustainability focused solutions to improve our business and energy efficiency, lower our carbon footprint and enhance company circularity, as well as supporting the global energy transition towards a lower carbon emissions future. R&D focus areas 2021 spend ($ million) 2022 spend ($ million) CCS 24.7 41.5 Renewable energy 9.3 6.4 Energy efficiency 55.9 64.8 Waste management and recycling 31.1 32.3 Water management 29.7 32.2 Gas treatment 21.4 40.5 Low carbon hydrogen 25.6 26.4 Sustainable mobility 94.0 136.6 Crude to chemicals 7.8 30.3 Non-metallic applications 15.5 24.2 Total R&D for sustainability technologies2,3 315 435 Total Aramco R&D2,3 607 737 % of sustainability-related R&D out of Aramco R&D spend2,3 52% 59% 4,10 0 oil fields analyzed 96 countries 92% global production Aramco Sustainability Report 2022 40 Differentiate Sustain Diversify Enable",40,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +129,aramco.pdf,"Examples of ongoing R&D initiatives include: • Innovative technologies and processes for the utilization of CO2 in various applications to deliver alternative sequestration pathways; • Cost-competitive technology for large-scale CO2 capture from air for reusing it for e-fuels or storage; • New technologies that optimize/aid in the integration of alternate energies into upstream operations, reducing emissions associated with power consumption; • Cost-effective and efficient onsite hydrogen and electricity generation systems to provide low carbon hydrogen and electricity for transport; • With leading engine manufacturers, developing and demonstrating efficiency – and therefore reduced emissions – in internal combustion engines utilizing CO2, and emissions solutions; • Converting crude oil directly to chemicals to optimize or eliminate several energy intensive industrial processes; • In plastics, develop technologies and processes to reduce material and chemical consumption, and increase recycling; and • Reduce emissions associated with water processing and disposal/re-injection through reduced water production, recycling and reuse. IR 4.0 — the Global Lighthouse Network Three of our larger facilities have been accredited by the Global Lighthouse Network, a group of industrial sites that the World Economic Forum has identified as pace-setting in implementing Fourth Industrial Revolution technology at scale.",41,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +130,aramco.pdf,"The latest addition to the network is our Abqaiq Plant, the largest crude stabilization plant in the world. It joins Khurais Producing facility and our ‘Uthmaniyah gas plant. Aramco is the only major energy firm represented — a testament to our commitment to IR 4.0 technologies and to the scale of our ongoing digital transformation. Aramco’s digital transformation has affected almost every aspect of our Abqaiq Plant’s operations, with three key changes: First, the use of robots and drones equipped with cameras, thermal imagers, and gas detectors reducing reliance on in-person checks. Second, the introduction of machine learning and AI powered algorithms has enabled a continuous and proactive digital adjustment of the oil stabilization process — leading to a 4.5% increase in energy efficiency since 2019, as well as a reduction in CO2 emissions. Third, the use of data analytics and predictive modeling has enabled our engineers to anticipate potential disruptions more effectively.",41,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +131,aramco.pdf,"Third, the use of data analytics and predictive modeling has enabled our engineers to anticipate potential disruptions more effectively. Real-time data acquisition from well to wheel Online monitoring and optimization of the Company’s facilities from source to sink 10,000+ Input data points 167 Aramco facilities 2,730 Facilities in-Kingdom 100 Refineries out-of-Kingdom Decarbonization enabled by digitalization Modeling and optimization Mixed integer optimization Forecasting Machine learning advanced analytics Monitoring Calculations aggregation Carbon footprint solutions 4141",41,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +132,aramco.pdf,Aramco Sustainability Report 2022 42,42,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +133,aramco.pdf,"Safe operations and people development At Aramco, safety is at the heart of everything we do. It is a core value that helps protect our people, assets, and environment. We are committed to a strong safety culture across our employees, contractors, and suppliers. We prioritize the training of our workforce to perform their jobs safely, while also promoting an open reporting culture. We empower our people to reach their full potential through providing a safe, respectful, and professionally challenging working environment. We are committed to respecting and protecting the rights of every single member of our workforce (employees and contractors); we expect and support our suppliers to do the same.",43,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +134,aramco.pdf,"We are committed to respecting and protecting the rights of every single member of our workforce (employees and contractors); we expect and support our suppliers to do the same. Material topics Relevant UN SDGs Workforce protection Number of fatalities Lost time injuries/illnesses rate (number of LTI cases x 200,000/total work hours) Total recordable case frequency (total recordable incidents x 200,000/total work hours) Health performance* (number of overdue major health findings) x (100)/total number of open major health findings) Process safety and asset integrity Number of Tier 1 process safety events Human rights Number of grievances raised* Sites with a grievance mechanism in place* (%) Labor practices Attrition rate* (%) Number of company employees Number of female employees* Female (%) of total employees Female (%) of total number of new hires* Number of female employees in leadership positions* Female employees (%) in leadership positions Number of contractor employees* Employee engagement score* (%) Employees receiving regular performance reviews (%) Number of hired graduates Number of apprentices Number of interns Total hours of training and development* Average hours of training and development* (per employee) Relevant metrics For more details on relevant metrics, see page 86.",43,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +135,aramco.pdf,Learn more about how Aramco developed a safety strategy and worked on imbedding it as part of its culture since the 1940s.Scan here * Metric reported for the first time externally. 4343,43,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +136,aramco.pdf,"Our approach Aramco is committed to providing a safe workplace for our people. We believe that all injuries are preventable. We conduct business in a manner that strives to prevent incidents that have the potential to impact people, damage assets, or harm the environment. We are committed to developing our people, embracing diversity, and strengthening global collaboration with industry leaders to share safety knowledge, build capabilities, and address emerging challenges. Visible management commitment to safety is a cornerstone of the successful implementation of Aramco’s global safety policy. The Executive Management Safety Review (EMSR) program has been in place for over 40 years. Every month the president and CEO, along with a team of executive management, visit one of the Company’s major operational areas. During the visit, the executive team meets with area management to review their HSE performance and engage with employees and contractors to discuss any safety issues or concerns. Safety performance The table below provides an overview of our HSE performance over the past three years.",44,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +137,aramco.pdf,"Safety performance The table below provides an overview of our HSE performance over the past three years. 2022 2021 2020 Number of fatalities1 52 12 12 Total recordable case frequency1 (total recordable incidents x 200,000/ total work hours) 0.050 0.054 0.044 Lost time injuries/ illnesses rate1 (number of LTI cases x 200,000/ total work hours) 0.0142 0.017 0.011 Sadly, we had five fatalities in our workforce (one employee and four contractors) during the year. One employee passed away due to heat exposure after their car became stranded in the desert. Within our contractors and partners, one contractor lost his life due to a motor vehicle accident, a second contractor was struck by rotating equipment on a drilling rig, a third contractor was involved in a pipe stack collapse incident, and a fourth contractor was involved in a pipeline rupture fire. Each case has been fully investigated and the lessons learned have been communicated to all parties. We continue to work closely with our contractors to build a strong safety culture and prevent such incidents.",44,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +138,aramco.pdf,"Each case has been fully investigated and the lessons learned have been communicated to all parties. We continue to work closely with our contractors to build a strong safety culture and prevent such incidents. Workforce protection Responsible Care Responsible Care is the global chemical industry’s voluntary initiative to continuously improve environmental, health, safety and security knowledge and performance. Our wholly-owned subsidiary ARLANXEO completed the Responsible Care® 14001:2015 certification process for all of its worldwide locations. This broadens the scope of ISO 14001 beyond environmental management systems to include health safety and security and other Responsible Care requirements — the culmination of a project that commenced in 2020. What are we doing? 1. For 2020, the reporting boundary was Company in-Kingdom. As we progress on our reporting journey and our controls around ESG data mature, for this metric from 2021 onwards, the reporting boundary has been expanded to operational control. Please refer to page 86 for more details on our metrics’ reporting boundaries. 2. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. Aramco Sustainability Report 2022 44 Safe operations and people development",44,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +139,aramco.pdf,"What are we doing? Transportation safety initiatives Safety at sea We operate a fleet portfolio of over 270 vessels with more than 7,000 employees and contractors traveling over 1.4 million nautical miles. Our strategy is to enable safe behavior through focused international maritime, safety, and environmental standards as well as cybersecurity compliance. Aramco is committed to enabling excellence in safety, both onshore and offshore. Aramco’s marine operations span along the Kingdom’s coastlines from the Arabian Gulf to the Red Sea, providing safe, reliable and, cost-effective integrated marine solutions. This supports the Company’s critical offshore operations such as exploration, drilling, producing, exportation, crew transfer, oil spill response, subsea repairs, offshore logistics, and offshore security. Safety in the air Aramco’s Aviation Department operates one of the world’s largest corporate fleets, consisting of 49 owned and leased aircraft (both fixed wing and rotary), that annually transport more than 900,000 passengers safely to Kingdom-wide destinations, and globally. During 2022, we carried our people on some 29,000 flights traveling some 4 million miles.",45,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +140,aramco.pdf,"During 2022, we carried our people on some 29,000 flights traveling some 4 million miles. Our flights support Aramco’s operations by providing transportation, special missions, search and rescue, and evacuation services to our onshore and offshore operations. We maintain the highest level of safety standards while being mindful of our responsibility toward the environment. Our flight operations are benchmarked against airline industry standards and best practices, and are continually audited by internal and third-party aviation assessors. Safety on the road Aramco has over 11,000 vehicles, including over 500 buses, to transport our people for business, and in 2022, our vehicles traveled over 199 million kilometers. We closely monitor and support the safety of our people on the road. In addition to mandatory traffic training and education, we use digital solutions aimed at improving traffic safety. The Company launched SafeTravel — a digital journey management tool that provides real-time journey data to supervisors and journey coordinators — that enables personnel to complete their journeys in a safe manner. In addition, we piloted a number of AI solutions in vehicle monitoring systems that detect fatigue, distractions, drowsiness, and other negative driving conditions.",45,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +141,aramco.pdf,"In addition, we piloted a number of AI solutions in vehicle monitoring systems that detect fatigue, distractions, drowsiness, and other negative driving conditions. Recent initiatives: • Introduced a “Safety Corridor” initiative to reduce accidents on an 80 km stretch of the Dhahran - Al-Hasa Highway. • A traffic safety campaign, “The Park,” was conducted at the Dhahran Expo to promote traffic safety within local communities. The campaign attracted more than 41,000 visitors in person and more than 6 million views across social media platforms. • An initiative to enhance traffic safety on the roadways leading to Qatar; 1,950 km of roads were surveyed and evaluated and the technical report was shared with relevant ministries. 4545",45,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +142,aramco.pdf,"Emergency preparedness Aramco invests heavily in incident prevention, while also taking every measure to ensure emergency readiness. The Company has a dedicated Corporate Emergency Management Taskforce to ensure resilience and readiness through pre-planning and risk-based site-specific emergency response plans. In 2022, over 1,100 emergency exercises were conducted to train people and evaluate improvement opportunities. Contractor safety Aramco is committed to maintaining the safety and well-being of its contractors. Our approach is focused on proactive engagement, effective field presence, performance measurement, and governance. This approach is supported by a suite of custom risk-based tools that monitor contractor safety performance to ensure compliance with safety requirements. Our Construction Safety Index (CSI) monitors our construction contractors’ safety performance to ensure compliance with construction-related safety requirements. In 2022, over 3,300 CSI inspections were conducted. Driven by this success, the Company implemented a Turnaround Safety Index (TSI) focused specifically on contractors performing turnaround and inspection. In 2022, over 670 TSI inspections were completed.",46,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +143,aramco.pdf,"Driven by this success, the Company implemented a Turnaround Safety Index (TSI) focused specifically on contractors performing turnaround and inspection. In 2022, over 670 TSI inspections were completed. During the fourth quarter of 2022, we launched the Rig Safety Index (RSI) that monitors onshore and offshore drilling rigs. Over 60 RSI inspections were completed since its launch. We recognize the importance that state-of-the- art technologies play in delivering a proactive approach to safety. The Smart Site Safety Solution (4S) combines innovation and technology to detect and prevent construction site incidents. It extends support to management to mitigate major risks through zone monitoring, collision avoidance, confined space monitoring, and heat stress management. Using custom- developed software, 4S collects and processes data in real-time through video analytics and smart wearables. A new vision for safety training and certification Safety training and development has always been a key focus area for Aramco. In line with the Company’s focus on digitalization, we are transforming our training from a conventional classroom-based learning experience to a hands-on competency-based learning approach.",46,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +144,aramco.pdf,"In line with the Company’s focus on digitalization, we are transforming our training from a conventional classroom-based learning experience to a hands-on competency-based learning approach. Through immersive virtual reality (VR) simulations, trainees are able to conduct exercises in real- time, and we have introduced a collaborative training environment that enables multiple individuals to participate in simulations together. Aramco has deployed VR environments that allow personnel to undergo practical testing virtually. For example, scaffolding supervisors and inspectors are now tested in a VR environment. These technologies offer a multitude of benefits when compared with traditional and more conventional training methods, including cost-effectiveness, just-in-time learning, and the experience of high consequence failures in a safe environment. Safety at the world’s largest oil field — Ghawar We have established the Ghawar Intelligence Center as a unified information and collaboration hub. This has enabled the deployment of more than 300 Fourth Industrial Revolution technologies across safety, environment, health, and corrosion. This includes drones taking preprogramed routes within the facility, which automatically confirm and check several safety and environmental aspects within the plant. Off-road navigation and trip management solutions are also deployed to enhance the safety of the workforce working off-road. What are we doing?",46,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +145,aramco.pdf,"Off-road navigation and trip management solutions are also deployed to enhance the safety of the workforce working off-road. What are we doing? In 2022, over 1,100 emergency exercises were conducted to train people and evaluate improvement opportunities Aramco Sustainability Report 2022 46 Safe operations and people development",46,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +146,aramco.pdf,"Safety Management System Aramco’s Safety Management System (SMS) drives our commitment to safety across our business. It provides a framework that integrates occupational and process safety, and assists business units in meeting safety expectations. Our SMS was developed following comprehensive benchmarking with industry peers. It is aligned with requirements outlined in Occupational Health and Safety Management System ISO 45001:2018, and has been evaluated by an independent third party to ensure alignment with international practices. All Aramco organizations are assessed against SMS expectations, through our internal corporate safety assessment program. With over 50 SMS assessments performed in 2022, this program has been expanded further to include both in-Kingdom and international affiliates. Process safety Aramco adopts strong process safety practices to protect people, assets, and the environment. We employ a proactive approach to managing process safety through well-established programs covering safe operations, preventative maintenance, and asset integrity. We maintain a dedicated program aimed at assessing and monitoring process safety risks throughout our facilities. Tier 1 process safety events In 2022, the Company recorded 11 Tier 1 process safety events, all of which were investigated, with root causes identified and corrective actions implemented.",47,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +147,aramco.pdf,"Tier 1 process safety events In 2022, the Company recorded 11 Tier 1 process safety events, all of which were investigated, with root causes identified and corrective actions implemented. 2022 2021 2020 Number of tier 1 process safety events1 11 11 9 Out of the 11 events, nine occurred at in-Kingdom wholly-owned operated assets and two at an entity under Aramco’s operational control. None of the Tier 1 incidents in 2022 resulted in operational interruption. Two incidents were classified as major with the remaining classified as moderate. Six incidents resulted in injuries, including one fatality. Process safety and asset integrity Closed loop well testing A new closed loop well testing equipment design was developed to provide a remote interaction in sour environments. The design includes equipment and fluid monitoring devices that operate remotely to control the flow and measure the fluid properties. The design also minimizes personnel exposure to toxic gases during operations. This technology is now being rolled out for all sour wells in Saudi Arabia. What are we doing? 1. For 2020, the reporting boundary was Company in-Kingdom.",47,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +148,aramco.pdf,"This technology is now being rolled out for all sour wells in Saudi Arabia. What are we doing? 1. For 2020, the reporting boundary was Company in-Kingdom. As we progress on our reporting journey and our controls around ESG data mature, for this metric from 2021 onwards, the reporting boundary has been expanded to operational control. Please refer to page 86 for more details on our metrics’ reporting boundaries. 4747",47,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +149,aramco.pdf,"Our people Aramco is home to over 70,000 individuals from all over the world, comprising more than 85 nationalities. We are proud of the multiculturalism and diverse thinking that our community brings to the Company and strive to maintain an environment of respect and understanding. As per our commitment to the UN SDG 5 (Gender Equality) and UN SDG 8 (Decent Work and Economic Growth), along with our support for Saudi Vision 2030, we provide our people with opportunities and a safe environment to develop personally and professionally. Human rights in the workplace To be treated with dignity and respect is the right of everyone. We strive to uphold human rights in the workplace by acknowledging our role as a corporate citizen and promoting a positive culture that adheres to those values. We are committed to ensuring that employees are not subject to abusive or inhumane practices. We are opposed to all forms of slavery and exploitation, and child labor. Our corporate strategy involves engaging with stakeholders to prevent incidents that negatively impact human rights. We seek to make positive and lasting contributions in the areas of governance, transparency, respect for the rule of law, and social and economic development.",48,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +150,aramco.pdf,"We seek to make positive and lasting contributions in the areas of governance, transparency, respect for the rule of law, and social and economic development. We comply with local laws and respect international human rights principles, such as, the Universal Declaration of Human Rights, the Fundamental Conventions of the International Labor Organization, the UN Guiding Principles on Business and Human Rights, and the principles of the UN Global Compact. Aramco strives to ensure employees feel respected and safe. Our Code of Business Conduct lays out the minimum expectations we have of our people, our suppliers, and key stakeholders. The Code articulates our values: integrity, excellence, safety, accountability, and citizenship. We strive with our suppliers to ensure that all goods or services meet country of origin standards for human rights, including health and safety as a minimum. Aramco is home to over 70,000 people comprising more than 85 nationalities Human rights Aramco Sustainability Report 2022 48 Safe operations and people development",48,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +151,aramco.pdf,"Workers’ Committee Aramco Workers’ Committee is a team of selected employees who voluntarily represent all workers. The Workers’ Committee mandate is to present recommendations to management related to the areas listed below: • Promoting safety and occupational health; • Improving workers’ health and hygiene; • Improving work conditions and circumstances; and • Enhancing workers’ productivity and work-life balance. What are we doing?Employee relations To ensure our people enjoy working at Aramco, we engage with them regularly via various communication channels, such as town hall meetings, engagement surveys, recognition events, the intranet, periodic performance reviews, and the Young Leaders Advisory Board. We have a Workers Committee, which is managed by a voluntary team of elected employees to ensure our employees are heard and hold management accountable. Wherever we operate, we strive to comply with all labor laws with the goal of providing equal employment opportunities to employees and job applicants, while maintaining a workplace free from discrimination, harassment, and retaliation. We hire and promote the most qualified individuals, regardless of age, disability, gender, nationality, race, religion, or any other applicable protected category.",49,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +152,aramco.pdf,"We hire and promote the most qualified individuals, regardless of age, disability, gender, nationality, race, religion, or any other applicable protected category. Aramco has a non-retaliation policy which empowers our people to speak freely and confidently about issues and concerns that could improve our operations and to act with integrity. People who come forward with concerns play an important role in maintaining our ethical workplace. Employees are expected to report suspected violations of the law, policies, and the Code. To encourage an open, candid culture, Aramco offers several channels for employees to ask questions and speak up: • Management escalation; • Personnel department, Compliance department, Internal Audit department; • Corporate Security Division; and • An anonymous hotline. Grievances Aramco has a formal grievance process, which is overseen by our Personnel Department. This process ensures all items raised are fairly and objectively assessed. At Aramco, we believe that speaking up is an employee’s right. We ensure that all sites have grievance mechanisms in place for our employees to raise any concerns in confidence.",49,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +153,aramco.pdf,"At Aramco, we believe that speaking up is an employee’s right. We ensure that all sites have grievance mechanisms in place for our employees to raise any concerns in confidence. 2022 2021 2020 Number of grievances raised* 293 236 297 Sites with a grievance mechanism in place* (%) 100% 100% 100% * Metric reported for the first time externally. 4949",49,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +154,aramco.pdf,"Employees receiving a pe/r.altformance review (%) 90.6 98.4 96.8 90.6 2020 2021 2022 Attrition rate* (%) 2.4 7.8 2.8 2.4 2020 2021 2022 Our 2022 Forbes award For the third year in a row, Aramco was ranked number one on the 2022 Forbes “Top Companies to Work for in the Middle East” list and the highest rated company in the construction, oil and gas, mining and chemicals sectors. This is reflected in our low attrition rate. What are we doing? Employee engagement In October 2022, the corporate-wide Employee Engagement Census Survey was launched across Aramco to over 75,000 employees and contractors. The survey closed with a 59% response rate, which represents a healthy corporate response as validated against external benchmarks through an independent vendor. An analysis of our most recent engagement surveys concluded that employees wanted leaders who enable, care for, recognize and develop their teams. To assist leadership in enhancing the engagement of their people, a new set of Employee Experience Tools for leaders was created in relation to each key theme.",50,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +155,aramco.pdf,"To assist leadership in enhancing the engagement of their people, a new set of Employee Experience Tools for leaders was created in relation to each key theme. In total, 16 new tools were created as part of an interactive online toolkit. These include one-to-one conversation and team conversation guides. These tools have been downloaded more than 10,000 times. In addition, to support leaders at every level, a new virtual training, “An Introduction to Employee Experience for Leaders” was created in-house. The workshop provides useful definitions for employee experience and employee engagement, and shares practical steps chief position holders can implement to improve employee engagement. In addition to leaders, employee engagement is also supported by over 250 Employee Experience Champions who are embedded across the business. As a final step in the performance management program year-end cycle, annual employee performance reviews are facilitated by senior management during the months of January and February. For the 2022 business cycle, 90.6% of employees received a performance review. * Metric reported for the first time externally. Aramco Sustainability Report 2022 50 Safe operations and people development",50,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +156,aramco.pdf,"What are we doing? 2020 2021 2022 6.4 5.61 5.11 Labor practices Diversity and inclusion We are proud of the diversity and inclusivity our community brings to the Company with our people being from more than 85 different nationalities. We strive to maintain an environment of mutual respect and understanding. We are focused on continuing to build on our diverse workforce by increasing the number of opportunities for women. A major contributor to Aramco’s success in boosting diversity has been the establishment of diversity and inclusion corporate targets, metrics on female representation, females in leadership, and people with disabilities representation. This focus and effort, led by a dedicated diversity and inclusion team has resulted in the number of female hires increasing year-on-year for the past five years.",51,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +157,aramco.pdf,"This focus and effort, led by a dedicated diversity and inclusion team has resulted in the number of female hires increasing year-on-year for the past five years. 2022 2021 2020 Number of female employees* 4,503 3,802 3,400 Female (%) of total employees 6.4% 5.6%1 5.1%1 Female (%) of total number of new hires* 28.4% 31.2% 34.1% Number of female employees in leadership positions* 176 136 110 Female employees (%) in leadership positions 3.8% 3.1% 2.7% Visible progress on diversity In 2022, we achieved an 18% increase compared to 2021 in the number of female employees in our workforce. Aramco female employees include engineers and scientists across our operations, and in our research and development centers. In 2022, 50% (208 out of 414) of overall enrollments in our College Preparatory Program were female students. The CPP is a 10-month college preparatory program where students receive support to prepare them for the challenges of a top-tier university.",51,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +158,aramco.pdf,"The CPP is a 10-month college preparatory program where students receive support to prepare them for the challenges of a top-tier university. During 2022, our Security organization and Industrial Services organizations have developed and hired women into roles they had not traditionally held previously, e.g., security guards. 28.4% of direct new hires are female* 18% increase in female representation compared to the previous year 23% increase in female employees in leadership positions Female employees at Aramco (%) * Metric reported for the first time externally. 1. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. 5151",51,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +159,aramco.pdf,"Hired graduates (number) 1,459 460 1,447 1,459 2020 2021 2022 Apprentices (number) 1,728 1,001 1,369 1,728 2020 2021 2022 Interns (number) 3,190 641 1,922 3,190 2020 2021 2022 Embracing diversity and inclusion • Launched a Global Diversity Awareness Campaign. • Conducted a Disability Inclusion Awareness Campaign, in collaboration with Johns Hopkins Aramco Healthcare. • Recognized World Autism Awareness Day on April 2, 2022. • Hosted the Company’s first-ever Saudi Sign Language training. • Partnered with an international school to establish an in-Kingdom center to provide therapeutic and educational services for individuals with special needs (children and adults). Investing in our workforce Our success is based on having a happy, healthy, motivated, skilled, and diverse workforce. During 2022, we welcomed over 6,000 new people joining us either full-time or part-time.",52,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +160,aramco.pdf,"During 2022, we welcomed over 6,000 new people joining us either full-time or part-time. There was a: • 26% increase in the number of apprentices (1,728 in 2022 versus 1,369 in 2021); and • 66% increase in the number of interns (3,190 in 2022 versus 1,922 in 2021) joining Aramco. Education and training As a global energy and chemicals company, we are faced with addressing some of the world’s biggest technical, logistical, and environmental challenges. To ensure that our workforce can handle these challenges, we invest in talent development. We have a proud history, spanning decades, of providing opportunities for educating and training Saudi nationals, as well as our international workforce. Depending on employees’ training and development requirements, Aramco provides sponsored training to MBA level and specialized master’s programs at prestigious institutions around the world. The Company has delivered leadership and targeted development programs to over 18,500 participants through The Leadership Center, a world-class facility located in Ras Tanura and through affiliation with top-ranked business schools and world-class development partners such as Harvard, Wharton, and the London Business School.",52,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +161,aramco.pdf,What are we doing? Aramco Sustainability Report 2022 52 Safe operations and people development,52,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +162,aramco.pdf,"Total hours of training and development* (million hours) 2020 2021 2022 13.012.8 12.1 In 2022, we recorded 13 million T&D hours provided to upskill our workforce and ensure they are provided with strong support to perform their roles effectively. In 2022, over $200 million was invested in the following training programs: Workforce well-being A healthy working environment is critical for employee health, positive engagement, and operational safety. To support our employees, dependents, and their families, medical services are provided across all Aramco sites and made easily accessible to our people. In 2022, a review of the existing well-being programs and activities at Aramco identified an opportunity to broaden the scope to reflect the Company’s size and scale. This resulted in the creation of new well-being strategy that focused on four key elements of well-being: physical, emotional, social, and financial. In addition, to support our contractor workforce, we have developed a Contractor Well-Being Program that provides a range of free services including a 24/7 hotline, video counseling and online resources.",53,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +163,aramco.pdf,"In addition, to support our contractor workforce, we have developed a Contractor Well-Being Program that provides a range of free services including a 24/7 hotline, video counseling and online resources. The program is complimented further by the Contractor Passport Solution that tracks salary payments and living conditions, which are assessed through a comprehensive contractor accommodation inspection program. Hosted University Programs Assessment Centers Leadership Programs Executive Leadership Programs Regular Development Program Non-Employee Programs The Company has delivered leadership and targeted development programs to over 18,500 participants * Metric reported for the first time externally. 5353",53,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +164,aramco.pdf,"Riyadh Jeddah Al-Hasa Abqaiq Dammam Ju’aymah Jubail Nairyah Khafji National Training Centers National Training Centers (NTCs) are the product of a strategic partnership between Aramco, selected government entities, and the private sector, which started in 2008. The established NTCs focus on the training of young Saudis. The centers prepare men and women to join different industry sectors, including oil and gas, drilling and workover, maritime, aviation, construction, inspection, IT, facility and hospitality management, power, and finance. The mission of the partnership is to equip Saudi Arabia with a highly motivated and qualified Saudi workforce. What are we doing? Total graduates as of December 31, 2022 48,048 42,553 ■ Male (89%) ■ Female (11%) 5,495 Aramco Sustainability Report 2022 54 Safe operations and people development",54,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +165,aramco.pdf,"To enable front-line leaders to provide greater support for their employees, Aramco introduced the “Supporting Employee Well-Being for Leaders” training, together with a globally recognized third-party vendor. During the year, over 600 leaders were trained in the pilot phase of the project, with a goal to train all leaders within two years. In addition, demand for well-being training continued in 2022 reaching over 5,000 employees. As a provider of both retirement and savings benefits for our employees, we encourage financial literacy and provide regular access to financial well-being programs and on-site financial consultants. We also provide unique amenities to promote a healthy work-life balance, including leisure activities, recreational facilities, self-directed groups, and nutrition and fitness coaching. We strive to ensure that all of our facilities are accessible to staff with disabilities. Mental health Mental health forms an important part of the overall well-being program at Aramco, and a dedicated team provides regular seminars to support employees, including: • Release Your Stress; • Move for Energy; • Human Energy Management; • Digital Detox; and • Resiliency and Thriving Our “Work-Life Support Program” provides 24/7 access to mental health services for employees and their families.",55,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +166,aramco.pdf,"The program works with a qualified vendor to link to a global network of mental health professionals who provide one-on-one counseling, life coaching, digital health programs, and many more offerings. The service is completely confidential and has been invaluable in helping employees to manage stress, mental health, work-life balance, and personal relationships. Since its inception, it has been accessed over 73,000 times. 5555",55,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +167,aramco.pdf,Aramco Sustainability Report 2022 56,56,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +168,aramco.pdf,"Minimizing environmental impact We aspire to create a legacy of projects that improve natural habitats and protect shared resources, through best practice environmental management systems and initiatives that promote positive outcomes. We apply technology, innovation, and resources to invest in environmental protection and nature-based solutions, and we embed circular economy principles across our operations. Material topics Relevant UN SDGsRelevant metrics Local environmental impact Number of hydrocarbon spills Volume of hydrocarbon spills (bbl) Recovered hydrocarbon* (%) Hydrocarbon discharge to water (barrels) SO2 emissions (kilotonnes) Number of sites with ISO 14001 certification* (%) Biodiversity and ecosystems Net positive impact* Water management Freshwater consumption (million m3) Freshwater withdrawal (million m3) Product stewardship and waste management Industrial waste generated (metric tonnes) Industrial waste recycled* (%) For more details on relevant metrics, see page 86. Learn more about how Aramco is taking real steps to protect the environment, and engaging in a range of projects and initiatives. * Metric reported for the first time externally. Scan here 5757",57,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +169,aramco.pdf,"SO 2 emissions2,3 (kilotonnes) 167 163 141 1671 2020 2021 2022 Environmental management systems Since 2012, our operations have been supported by a strong environmental management system based on ISO 14001 standards. As we strive to be consistent with local environmental regulations while following international best practices, our environmental management system provides a systematic and planned approach to achieve the desired outcomes. To support the certification process we appointed an independent third party to assess our systems against the requirements of the standard. During 2022, we achieved ISO 14001 certification* for 98%1 of facilities under our operational control. In 2023, we will continue to progress our efforts to achieve 100% certification. We also conducted more than 30 environment and health site assessments during 2022 to minimize any negative environmental and safety impact of our operations. Corporate circular economy roll-out program In 2021, we commenced the roll-out of a corporate execution plan to apply the principles of circular economy across the Company value chain. We are embedding circularity models in activities ranging from circular material management to environmental performance management to our investment master plan.",58,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +170,aramco.pdf,"We are embedding circularity models in activities ranging from circular material management to environmental performance management to our investment master plan. To date, we have launched over 20 initiatives, in critical areas such as water conservation, waste management, circular procurement services, circular construction and built infrastructure. We are developing our first integrated waste management facility that aims to deploy waste management technologies to recover, treat and manage the waste generated by our communities and operations. This includes a planned waste-to energy plant, so that Aramco’s waste can become a potentially usable source of energy for the Company. Please see page 67 for more details on our waste management initiatives. SO2, NOx, and VOCs We continued the development of the Sulfur Recovery Units Dashboard, which monitors all Aramco sulfur recovery units (SRUs) to ensure safe and optimal operations. The real-time dashboard shows key SRU performance tracking parameters that are used to ensure the highest possible overall sulfur recovery efficiencies. We also continued our SRU upgrades with tail gas treatment units to reduce SO2 emissions. We are expediting these projects in line with our commitment to environmental stewardship and to support our efforts in fulfilling our compliance obligations.",58,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +171,aramco.pdf,"We are expediting these projects in line with our commitment to environmental stewardship and to support our efforts in fulfilling our compliance obligations. Tail gas treatment is gaining importance as the preferred technology to address stipulations on sulfur recovery systems in the latest revision of environmental regulations in the Kingdom and as we explore economic opportunities for sulfur itself. We are focused on ensuring these technical improvements are implemented at scale to achieve their full potential. In 2022, our SO2 emissions were 18% higher than in 2021 due to increased production of gas from our facilities. As we continue to scale up our operations, technologies like SRU tail gas treatment will support our efforts in keeping our SO2 emissions low relative to our production. Local environmental impact * Metric reported for the first time externally. 1. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. 2. For this metric, the reporting boundary has been reclassified from operational control excluding ATC, ASC, AOC and SAAC to operational control for 2022, 2021 and 2020.",58,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +172,aramco.pdf,"2. For this metric, the reporting boundary has been reclassified from operational control excluding ATC, ASC, AOC and SAAC to operational control for 2022, 2021 and 2020. This is because ATC, ASC, AOC and SAAC are office-based entities and therefore, have no SO2 emissions 3. The Jazan Refinery (our downstream refinery) is excluded from our SO2 emissions reporting. In 2022, it remains in the startup and stabilization phase and is not fully operational. Aramco is working to stabilize the refinery’s operations and complete all necessary reporting configurations before the end of 2023. Reporting on the refinery’s environmental and sustainability elements will commence immediately thereafter, in line with the company’s commitment to operational transparency. During 2022, we achieved ISO 14001 certification* for 98%1 of facilities under our operational control Aramco Sustainability Report 2022 58 Minimizing environmental impact",58,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +173,aramco.pdf,"We are working to quantify NOx emissions from our point sources and ensure they follow corporate and governmental mandates. We have improved our relative accuracy testing from every two years to every quarter on all applicable facilities. Increased frequency of testing will allow us to identify the NOx emissions from all applicable operating facilities and address exceedances, if any. Our vapor recovery system helps to minimize emissions of volatile organic compounds (VOCs) from our bulk loading operations, including new and established refined product distribution depots, which continue to operate efficiently to reduce VOCs from the ambient environment. Spills to the environment Aramco operates across Saudi Arabia with many operations in remote areas. This increases the complexity of detecting spills onshore and offshore and providing a swift response to spill sites. We mitigate these challenges by employing rigorous inspection programs of assets, putting fail-safe measures in place, training employees, and utilizing advanced technologies to predict possible failures. While Aramco strives to achieve zero spills, we encourage the reporting to provide lessons learned and prevent future incidents. Regrettably there were 15 hydrocarbon spills that occurred in 2022 with a total hydrocarbon volume of 142,8851 barrels.",59,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +174,aramco.pdf,"Regrettably there were 15 hydrocarbon spills that occurred in 2022 with a total hydrocarbon volume of 142,8851 barrels. Two major onshore oil spills were responsible for more than 99% of the total oil spills. A volume of 130,000 barrels was spilled due to a ruptured pipe in the pipeline corridor near Shedgum in Saudi Arabia, due to nearby heavy equipment-related work. Aramco managed to rehabilitate the affected area. Further clean-up operations continued at year-end. A volume of more than 11,900 barrels was also spilled due to equipment failure that led to a flow line rupture in the ‘Uthmaniyah area; however, the spread of the spill was halted quickly by the response team by isolating the damaged section of the pipe and the team was able to recover the liquid in full. Remediation activities were ongoing at year-end to rehabilitate the affected area. We continuously invest in efforts to ensure lessons are learned from any hydrocarbon spills and shared across our business.",59,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: Yes +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +175,aramco.pdf,"Remediation activities were ongoing at year-end to rehabilitate the affected area. We continuously invest in efforts to ensure lessons are learned from any hydrocarbon spills and shared across our business. In 2022, we improved our asset integrity, process safety and prevention measures through the Company’s engagement with regional, national and international entities to carry out oil spill drills to evaluate our response capabilities. In the event of any spills and resultant pollution, we have response plans that enable rapid mitigation. Our management processes are particularly aligned to minimize the impacts of hazardous chemicals and air, water, and soil pollution and contamination. We have completed an upgrade on our containment and recovery equipment to ensure we have access to flexible solutions and the latest technology. Currently, we are engaged in efforts to introduce major upgrades to our existing aerial dispersant spray systems with the acquisition of advanced large aircraft. 2022 2021 2020 Number of hydrocarbon spills 15 13 6 Volume of hydrocarbon spills (barrels) 142,8851 14,447 134 1. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. 5959",59,"[Guess]: No +[Confidence]: 0.95","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +176,aramco.pdf,"Governance framework With the planet experiencing a dangerous decline in nature as a result of human activity, the United Nations Biodiversity Conference (COP 15) concluded in Montreal, Canada, in December 2022 with 196 countries, including Saudi Arabia, signing up to the Kunming- Montreal Global Biodiversity Framework (GBF). The GBF aims to address biodiversity loss, restore ecosystems and protect indigenous rights, providing a refreshed roadmap for delivering the Global Goal for Nature. One of the key levers of the GBF is the protection and restoration of ecosystems to deliver 30 by 30 i.e. 30% of land and sea protected and 30% of degraded ecosystems restored by 2030. This principle lies at the center of Aramco’s Corporate Biodiversity Protection Policy and standard operating procedures developed in 2021 and applied as governance in 2022. These provide the framework and responsibilities of relevant Company organizations to ensure protection of biodiversity and ecosystem services wherever the Company operates and to restore degraded areas. The Company continues to work to update its operating procedures and standards to ensure we meet the commitments of the Biodiversity Protection Policy and support the aims of the GBF.",60,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +177,aramco.pdf,"The Company continues to work to update its operating procedures and standards to ensure we meet the commitments of the Biodiversity Protection Policy and support the aims of the GBF. We have continued to invest in biodiversity and in 2022 established a dedicated biodiversity team by forming our Environmental Biodiversity Division. Under the governance framework, Aramco strives to achieve a net positive impact on biodiversity and ecosystem services. In all our new projects we implement the biodiversity mitigation hierarchy, with enhanced outcome requirements for new projects to deliver net positive impacts for biodiversity and ecosystem services. In 2022, we developed a biodiversity KPI to help track the Company’s biodiversity performance. Biodiversity and ecosystems Achieving a net positive impact 1 Aramco’s Biodiversity Protection Corporate Policy provides the road map for all the Company’s operational areas to achieve a Net Positive Impact for biodiversity and ecosystem services. During the year, Aramco developed a new metric to measure and monitor its biodiversity footprint. The NPI is a metric that seeks to achieve net gains for biodiversity and ecosystem services. This occurs when the biodiversity gains through our conservation projects outweigh the overall negative impacts on biodiversity as a result of our operations on our owned land.",60,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.9 " +178,aramco.pdf,"This occurs when the biodiversity gains through our conservation projects outweigh the overall negative impacts on biodiversity as a result of our operations on our owned land. In 2022 (our baseline), our NPI* was 53%2 and we have set a target to increase the NPI by 30% by 2025. What are we doing? The KPI is based on spatial area of operational footprint versus the area of biodiversity projects, and so does not include aspects such as ecological quality and condition data. However, it represents the best proxy evaluation of Company’s biodiversity currently available. The biodiversity KPI is being further developed to reflect the complexity of biodiversity measurement and assessment. The most effective way to conserve biodiversity is to avoid operating in high-quality habitat. Where Company activities must interact with biodiversity, we seek to minimize negative impacts by refining our standard operating procedures. When habitats have been impacted, the degraded areas are restored. Finally, unavoidable and long-lasting impacts need to be offset, for example by creating new habitat. These workstreams are delivered by investing in four enabling elements: a strong governance framework, targeted mapping and monitoring, applied research, and education and awareness.",60,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +179,aramco.pdf,"These workstreams are delivered by investing in four enabling elements: a strong governance framework, targeted mapping and monitoring, applied research, and education and awareness. This biodiversity framework aligns with Ipieca guidelines on biodiversity protection and the LEAP (Locate, Evaluate, Assess, Prepare) approach from the Taskforce for Nature-related Financial Disclosures. * Metric reported for the first time externally. 1. Please refer to page 86 in the Data section of this report for the formula of this metric. 2. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. Aramco Sustainability Report 2022 60 Minimizing environmental impact",60,"[Guess]: No +[Confidence]: 0.9 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +180,aramco.pdf,"We will not operate in designated world heritage sites, strict nature reserves, or wilderness areas, and will ensure our operations result in no net loss of biodiversity and ecosystems services in national parks, key biodiversity areas and vulnerable bird habitats. During 2022, we designated an additional two Biodiversity Protection Areas; we now have 12 Biodiversity Protection Areas covering 985 km2. Together, these sites protect more than 500 species of plants and animals, including at least 55 species or subspecies that are unique to Saudi Arabia. We reintroduced locally extinct species at the Shaybah Wildlife Sanctuary, and restored degraded wetlands at Abqaiq. Whenever we have to offset our impacts, we seek to get our offsets assessed by a credible third party. We conduct applied research The Company conducts applied research aimed at ensuring its activities do not cause undue impacts on biodiversity, including collaborative research partnerships with King Fahd University of Petroleum and Minerals and King Abdullah University of Science and Technology. We invest in biodiversity education and awareness The Company constructed educational visitor centers at our Mangrove Eco-Park in Rahimah Bay and Shaybah Wildlife Sanctuary in the Rub’ al-Khali.",61,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +181,aramco.pdf,"We invest in biodiversity education and awareness The Company constructed educational visitor centers at our Mangrove Eco-Park in Rahimah Bay and Shaybah Wildlife Sanctuary in the Rub’ al-Khali. Minimize We minimize our impacts Restore We restore degraded habitat Offset What we cannot avoid, minimize, or restore, we offset Avoid We avoid high quality habitat We map and monitor to understand the biodiversity around us In 2022, we mapped and monitored the area around us in the Berri Gas Plant identifying various species (see the following page for more details). Governance framework Our biodiversity mitigation hierarchy 6161",61,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +182,aramco.pdf,"4 5 3 2 6 7 1 8 9 10 11 12 Saudi Arabia Biodiversity at Aramco An impressive array of biodiversity exists within Saudi Arabia, including over 2,400 plant species, 1,230 marine fish species, 499 bird species, 266 coral species, 117 mammals, 107 reptiles, eight amphibians, eight freshwater fish, and numerous invertebrates. It is inevitable that our activities will at times overlap and potentially impact areas of biodiversity value and much of this biodiversity can be found in our operations and reservation areas. Our operating areas, including fenced areas, along coastlines and around offshore platforms, are home to significant patches of remnant biodiversity. These provide high quality habitat for threatened, endemic (unique to Arabia), and/ or migratory species. By conserving these valuable natural resources, the Company helps to fortify the Kingdom’s biodiversity for current and future generation, and replenish terrestrial and marine ecosystems and their ecosystem services, including promoting well-being within our workforce. We coordinate with and contribute to national biodiversity strategies within Saudi Arabia and wherever we operate.",62,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +183,aramco.pdf,"We coordinate with and contribute to national biodiversity strategies within Saudi Arabia and wherever we operate. We have created digital habitat models that identify and show the potential habitat of every species that resides in the Kingdom. These habitat models enable Aramco to identify, prioritize, avoid, and reserve high quality habitat on Company land and reduce impacts on biodiversity, as well as targeting resources for restoration and biodiversity protection. In 2022, at our Berri Gas Plant in northern Saudi Arabia, we conducted a comprehensive biodiversity survey to map species and habitats found within the area of the facility (32 km2). The study identified 431 species; 204 plants, 163 birds, 41 mammals, and 23 reptiles. Of these 45 species were recorded as High Conservation Priority Species, as per the International Union for Conservation of Nature Red List of Threatened Species. Biodiversity Protection Areas The Company identifies and designates its own Biodiversity Protection Areas over valuable patches of habitat, which we avoid operating in.",62,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +184,aramco.pdf,"Biodiversity Protection Areas The Company identifies and designates its own Biodiversity Protection Areas over valuable patches of habitat, which we avoid operating in. An internal procedure outlines the steps required to designate Aramco Biodiversity Protection Areas over high quality habitat, requiring a third-party consultant to confirm that a proposed site is of sufficient ecological quality to warrant designation as a corporate Biodiversity Protection Area. Aramco’s Biodiversity Protection Areas The most effective way to conserve biodiversity is to avoid high-quality habitat. Under the Corporate Biodiversity Protection Policy, Aramco will not operate in designated World Heritage Sites, Strict Nature Reserves, or Wilderness Areas, and will ensure our operations result in no net loss of biodiversity and ecosystem services in National Parks, designated Important Bird and Biodiversity Areas, Important Plant Areas, and Aramco Biodiversity Protection Areas. Biodiversity Protection Areas contain at least 55 endemic species or subspecies (plants and animals that are found only in the Arabian Peninsula).",62,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +185,aramco.pdf,"Biodiversity Protection Areas contain at least 55 endemic species or subspecies (plants and animals that are found only in the Arabian Peninsula). Our protected sites: 1 Shaybah Wildlife Sanctuary 2 Rahimah Bay Mangrove Eco-Park 3 Abu Ali Island 4 Tanajib Biodiversity Protection Area 5 Manifa Biodiversity Protection Area 6 Abqaiq Wetlands 7 Udhailiyah Biodiversity Protection Area 8 Abha Biodiversity Protection Area 9 Bahra Biodiversity Protection Area 10 Madina Biodiversity Protection Area 11 Khurais Biodiversity Protection Area 12 Bagga Bird Oasis As at the end of 2022, there were over 985km2 of Biodiversity Protected Areas Aramco Sustainability Report 2022 62 Minimizing environmental impact",62,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +186,aramco.pdf,"In 2022, the Company increased its Biodiversity Protection Network by 20%, and currently has twelve designated sites totaling over 985 km2. Each of these sites is recognized as fulfilling International Union for Conservation of Nature protected area criteria and protects regionally or internationally significant biodiversity, such as the presence of threatened, migratory and/or endemic species. Over 500 species of birds, reptiles, mammals, amphibians, and plants are protected within Aramco’s Biodiversity Protection Areas, including at least 55 endemic species or subspecies. Many of these species are globally endangered; others are highly migratory, flying 10,000 km or more to forage at Company protected areas; some exist in Arabia and nowhere else on earth — and all of them need our ongoing stewardship. Wetlands strategy Water plays a vital role in the ecology and environmental health of the nation.",63,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +187,aramco.pdf,"Wetlands strategy Water plays a vital role in the ecology and environmental health of the nation. In 2022, a Company-wide wetlands strategy was developed, consisting of two major themes that reflect the intersection of the Company with Saudi Arabia’s environment: • Restoration and protection of natural wetlands on Company land, primarily for biodiversity conservation outcomes (but with co-benefits such as carbon sequestration); and • Creation of constructed wetlands that provide nature-based solutions for sustainable and efficient wastewater treatment (with biodiversity and other ecosystem service co-benefits). Fact-finding missions to constructed wetlands in the Middle East region established the feasibility and parameters for their development. All the natural wetlands and evaporation ponds with potential for conversion to constructed wetlands were mapped in the Kingdom and on Aramco reservation land. Using Aramco’s bespoke biodiversity heat map for the Kingdom, we identified the most important natural wetlands on Company land to protect. This led to the designation of a new wetland Biodiversity Protection Area in 2022. We will continue designating priority natural wetlands as Biodiversity Protection Areas.",63,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +188,aramco.pdf,"This led to the designation of a new wetland Biodiversity Protection Area in 2022. We will continue designating priority natural wetlands as Biodiversity Protection Areas. We are also developing ecosystem service assessments to measure the full range of benefits from constructed wetlands in addition to their wastewater treatment and energy efficiency attributes. Manifa Bay At the 2022 Middle East Energy Awards, Aramco won the Upstream Project of the Year Award, for its development, management, and production of the Manifa field, and its innovative solutions for protecting the fragile marine ecosystem in Manifa Bay. When planning the development of the Manifa field, residents and fishing communities of Manifa Bay were considered carefully, using a multifaceted approach to field development and balancing sustainable production operations with the preservation of Manifa Bay’s ecosystem. What are we doing? 6363",63,"[Guess]: No +[Confidence]: 1.0","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +189,aramco.pdf,"Mangroves planted (millions) 2020 2021 2022 24 13 6 Nature-based solutions Nature-based solutions are actions that protect, sustainably manage and restore natural and modified ecosystems in ways that address societal challenges effectively and adaptively, to provide both human well-being and biodiversity benefits. Mangrove forests are one of nature’s most powerful ecosystems, providing life-sustaining habitats for plants, birds, nursery areas for marine life, and supporting local communities relying on these productive ecosystems for their food security and well-being. They may also serve as an underwater nursery where juvenile fish and shrimp can grow in relative security before venturing out into the open ocean. Also, the complex and deep descending mangroves’ root structures can prevent shoreline erosion from waves and heavy storm surges, providing a natural adaptation to climate change impacts. As vast stretches of Saudi Arabia’s coastline are suitable for this forestation (and reforestation), we have invested significant resources in planting millions of mangroves. Tree planting using drones We have piloted drone technology for planting native trees and monitoring growth of these trees and the mangroves.",64,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +190,aramco.pdf,"Tree planting using drones We have piloted drone technology for planting native trees and monitoring growth of these trees and the mangroves. The pilot: • Enabled seed germination technique for drone plantation; • Conducted soil and water analysis; • Planted 100,000 native trees using drones; and • Achieved a plantation success rate exceeding 88%. Coral reefs Coral reefs are the most diverse ecosystems in the world. Aramco has been actively promoting the growth of marine life with artificial reefs. In addition to the offshore oil and gas facilities that act as artificial reefs by providing substrate for marine communities, we are working together with the Okinawa Coral Reef Conservation Consortium, Japan. Building on 11 years of research, we conducted studies on how to restore coral reefs, and ran educational programs. Aramco Singapore is working with the National Parks Board on the trial application of CoralAID Mineral Accretion units to enhance coral growth. Under this technology, corals are subjected to low-voltage electricity to stimulate their growth. We are also helping to rescue and rebuild important reefs in the coastal waters of the United States, the Caribbean, and Mexico through grants by the National Fish and Wildlife Foundation’s Coral Reef Conservation Fund.",64,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +191,aramco.pdf,"We are also helping to rescue and rebuild important reefs in the coastal waters of the United States, the Caribbean, and Mexico through grants by the National Fish and Wildlife Foundation’s Coral Reef Conservation Fund. Seaweed Seaweed is a carbon negative crop and has a high potential for climate change mitigation. The Intergovernmental Panel of Climate Change (IPCC) Special Report on the Ocean and Cryosphere in a Changing Climate recommends “further research attention” as a mitigation tactic. We developed a sustainable seaweed farming facility at Yanbu’, and to date, we have spent over $1.5 million using this project to remove GHG and NOx by producing macro algae (seaweed). The laboratory, nursery and workshop have been built, but the farm is still under development. Mangroves We have an ambition to plant 300 million mangroves in KSA and 350 million mangroves outside KSA by 2035. In 2022, we set an interim target to plant another 31 million mangroves along the Arabian Gulf and Red Sea shorelines by 2025.",64,"[Guess]: No +[Confidence]: 0.995 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +192,aramco.pdf,"In 2022, we set an interim target to plant another 31 million mangroves along the Arabian Gulf and Red Sea shorelines by 2025. This plantation target will support marine ecosystems adjacent to the Company’s operation in Abu Ali, Rahima, Yanbu’, and Jazan. To date, we have planted accumulatively 24 million mangroves. What are we doing? 11 million mangroves and 1 million trees were planted in 2022 Aramco Sustainability Report 2022 64 Minimizing environmental impact",64,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +193,aramco.pdf,"Water management Aramco’s approach to water Headquartered in one of the most arid environments in the world, water management has been an essential focus of our business since our inception. Today, that means: • Assigning an economic value to groundwater allocated for projects to incentivize the use of alternative sources; • Reducing our dependence on groundwater by using alternative water sources, such as seawater, treated sewage effluent, and treated reject streams, including significant investment in desalination; and • Ensuring the safety of the drinking water supply for our own and our host communities through water safety plans, which require the producer to conduct comprehensive risk assessments from the source to the consumer tap. In 2022, we completed the utilization of treated sewage effluent as make up water for cooling systems across several air conditioning plants in our communities. We also evaluated and deployed water efficient irrigation technologies to reduce irrigation water demand. Hydrogel technologies were deployed at the Khurais Producing facility and the irrigation water demand at that site is expected to reduce substantially as the technology increases water holding capacity, aeration balance and improves soil structure.",65,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +194,aramco.pdf,"We also conducted water conservation assessments to reduce freshwater consumption through the identification of gaps, and the implementation of best practices and water conservation initiatives. As part of our efforts to improve our monitoring and reporting of all our operations, we expanded the reporting boundaries of our two water metrics1 from Company in-Kingdom only to operational control for 2022. During the year, our freshwater consumption was 93.62 million m3; a small decrease from the prior year (94.6 million m3) and our freshwater withdrawn fell by 3.5% (136.6 million m3 in 2022 compared to 137.3 million m3 in 2021). The slightly lower trend in freshwater withdrawn performance is mainly due to our continued water conservation efforts, despite the increase in production. Deploying new technologies to conserve groundwater Two technologies were pilot tested in 2022: Crude desalting technologies were deployed at several of our facilities to enhance the process, improve crude quality, and optimize de-emulsifier consumption, reducing demand for wash water, thereby reducing the consumption of groundwater.",65,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +195,aramco.pdf,"Produced water treatment technologies, in which a high salinity water is pretreated then desalinated using one of these processes, eliminating the need to use groundwater as wash water altogether. 2 1 Wastewater and discharges to water We recognize the need to responsibly manage and treat water prior to returning it to the environment, and have a comprehensive wastewater effluents management program. Sustained performance has been achieved over the years by maintaining figures within targets. In 2022, we recorded a 47% reduction (16.42 barrels in 2022 versus 30.7 barrels in 2021) in our hydrocarbon discharge to water (HC2W). This is as a result of various activities, including: • Pro-active measures to avoid any incidental discharge; • Preventive maintenance of aging equipment; and • Enhanced monitoring and tracking of the metrics through the HC2W corporate dashboard.",65,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +196,aramco.pdf,"2022 2021 2020 Hydrocarbon discharge to water1 (barrels) 16.42 30.7 20.2 Freshwater consumption1 (million m3) 93.62 94.6 90.2 Freshwater withdrawal1 (million m3) 136.6 137.3 142.9 1. As we progress on our reporting journey and our controls around ESG data mature, for this metric, we have expanded the reporting boundary from Company in-Kingdom to operational control. To allow comparability, we have restated the 2021 and 2020 figures in line with the expanded reporting boundary. 2. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. In 2022, we recorded 47% reduction in our hydrocarbon discharge to water 6565",65,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +197,aramco.pdf,"The Company continues monitoring hydrocarbon discharge to water data through the HC2W dashboard. In 2022, we further developed the dashboard to enhance the use of data and reduce the chance of error while reporting data. The HC2W metric is the total amount of hydrocarbons in barrels (bbl) that the Company systematically releases to surface water through regulated industrial wastewater discharge and excludes hydrocarbon releases from accidental oil spills, which are tracked separately. This has given us greater control over the wastewater we generate, thereby enhancing our capacity to improve water quality by reducing pollution, eliminating dumping and minimizing the release of hazardous chemicals and materials. Since 2021, the Company has been holding workshops with relevant facilities to provide clear guidelines of the reporting methodology. In 2022, we also augmented our management processes with updates to our Company’s asset integrity, process safety and prevention measures. These measures enhance our precautionary approach and risk management practices toward the environmental management of our operations, which require us to maintain specific environmental assessments and promote these best practices with our supply chain partners.",66,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +198,aramco.pdf,"These measures enhance our precautionary approach and risk management practices toward the environmental management of our operations, which require us to maintain specific environmental assessments and promote these best practices with our supply chain partners. Drilling fluids recycling Over the years, we have continued using drilling fluids recycling techniques, where properties of drilling fluids such as oil-based, water-based, and brine-based fluids are adjusted to fulfill specific operational requirements, as well as completion activities. These fluids are stored after being used, and in many cases treated, to be used on other wells, avoiding building new volumes from the scratch. As part of our effort, and to share lessons with other energy companies, we are a member of Ipieca’s Water Working Group. Winner at the World Oil Awards At the 2022 World Oil Awards, Aramco won The Best Water Management Technology Award for the Zero Liquid Discharge Technology. With relatively large volumes of water produced along with hydrocarbons in oil and gas fields, a sustainable produced water management solution was developed and piloted to recycle and reuse water by transforming its ionic properties.",66,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +199,aramco.pdf,"With relatively large volumes of water produced along with hydrocarbons in oil and gas fields, a sustainable produced water management solution was developed and piloted to recycle and reuse water by transforming its ionic properties. The technology comprises a unique combination of a custom-designed pretreatment system to remove residual oil, hydrogen sulfide, and a dynamic vapor recovery technology for salt removal from hypersaline oil field produced waters. Such technology would enable the adequate and effective recycling and reusing of produced water. What are we doing? Avoiding groundwater use at Jafurah Our plans for the development of the Jafurah unconventional gas field (a gigantic basin with an estimated 200 trillion standard cubic feet of gas, with wells drilled with long horizontal lateral lengths, which require significant water use) incorporate avoiding the need to draw on groundwater by building a dedicated seawater treatment facility to supply enough water for the process. What are we doing? What are we doing? Aramco Sustainability Report 2022 66 Minimizing environmental impact",66,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +200,aramco.pdf,"Waste management Aramco’s approach to waste In 2022, we developed a Corporate Waste Management Strategy with a goal to minimize and divert waste from landfill and provide short- and long-term targets. The strategy has incorporated national waste management targets for minimizing waste disposal to landfills and maximizing recycling and energy recovery within the Company and within the framework of a circular economy and digital transformation. Additionally, we have enhanced the online corporate waste management system for better data capture and reporting. Our waste management strategy is the foundation for waste generated by Aramco in five focus areas: municipal, industrial, drilling, naturally occurring radioactive material (NORM), and plastic waste management. Industrial waste We continue to conduct waste minimization assessment studies as part of a project’s Environmental Impact Assessment, including existing facilities. These studies identify opportunities to eliminate or minimize waste. As for operating facilities, Aramco performs waste minimization opportunity assessments three to five years after commissioning.",67,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +201,aramco.pdf,"These studies identify opportunities to eliminate or minimize waste. As for operating facilities, Aramco performs waste minimization opportunity assessments three to five years after commissioning. Our waste management is guided by the Aramco Hazardous Waste Code, which has been prepared to define consistent requirements and best practices for the management of waste materials that are considered hazardous to human health or the environment, due to their ignitability, reactivity, corrosivity, or toxicity. These Company requirements are in accordance with the recently published Saudi Government regulations (Environmental Law, Waste Management Law and their regulations). We employ the waste management hierarchy to manage our waste, which ranks waste management options in a manner that minimizes environmental impacts and supports circular economy objectives. Waste is categorized into three management streams: hazardous, non- hazardous (including municipal), and inert. Management options are ranked by their potential environmental impact, with the highest priority accorded to waste prevention and reduction. In 2022, Aramco generated 318,656 metric tonnes of industrial waste (2021: 240,225) which was disposed of at licensed and Company qualified industrial waste management service providers.",67,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +202,aramco.pdf,"In 2022, Aramco generated 318,656 metric tonnes of industrial waste (2021: 240,225) which was disposed of at licensed and Company qualified industrial waste management service providers. The increase in waste has been driven by an increase in our hydrocarbon production and the oil spills during the year. In 2022, we recycled* 39.9%2 of our industrial waste (an increase in waste recycled compared to the prior year, despite the 33% rise in industrial waste). Measures that have contributed to the increase in recycling, primarily of oily wastewater and oily sludge waste streams, include adopting industry best practices and technologies for managing generated industrial waste and recovering hydrocarbons, such as automatic tank cleaning methods. Based on our strict quality criteria when selecting third-party partners, we included 18 industrial waste transporters and 12 industrial waste management third-party service providers for efficient disposal of our waste. We have initiated a process of setting internal targets for recycling industrial waste. We also identified an opportunity for recycling spent- claus catalyst through the cement industry. We are trialling a technology that can be used to condition NORM waste and recover material from the NORM waste stream, including hydrocarbons and water.",67,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +203,aramco.pdf,"We are trialling a technology that can be used to condition NORM waste and recover material from the NORM waste stream, including hydrocarbons and water. Automated NORM waste management Naturally occurring radioactive material occurs across a variety of oil and gas waste streams, including in sludge from oil/gas separation and in debris from pipeline scrapings. In 2022, we initiated a system to track NORM waste from generation to storage and to final disposal by utilizing radio frequency identification (RFID) tracking technology. This will interface with our SAP waste manifesting and provide a real-time NORM inventory, shifting from a manual process to a fully automated one, delivering detailed information of each NORM waste container from our facilities. The system enhances our accountability and ensures compliance with government regulations. What are we doing? 2022 2021 2020 Industrial waste generated1 (metric tonnes) 318,656 240,225 313,348 Industrial waste recycled* (%) 39.92 39.8 49.5 * Metric reported for the first time externally. 1. As we progress on our reporting journey and our controls around ESG data mature, for this metric, we have expanded the reporting boundary beyond just Company in-Kingdom.",67,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +204,aramco.pdf,"1. As we progress on our reporting journey and our controls around ESG data mature, for this metric, we have expanded the reporting boundary beyond just Company in-Kingdom. To allow comparability, we have restated the 2021 and 2020 figures in line with the expanded reporting boundary. 2. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. 6767",67,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +205,aramco.pdf,"Municipal waste Aramco has established a joint venture with Veolia, an international waste, water, and energy management company, to develop an integrated waste management facility in the Kingdom. The facility is intended to treat all of the Company’s municipal and industrial waste generated in the Kingdom, and in the future expand to treat other wastes in the Kingdom and the region. A suitable site for the first phase of the project has been identified and all necessary geotechnical and environmental impact assessment studies have been carried out. Waste characterization studies, masterplans for both municipal and industrial wastes, and feasibility studies to identify the best available technologies to maximize recycling and minimize disposal to landfill have also been completed. SafeChem Some chemicals used in our operations are rated as high security concerns and need to be tracked and reported to the relevant governmental entity. SafeChem, an IR 4.0 solution, was developed to track chemicals of government security concern throughout their life cycle across our facilities. Utilizing RFID technology, chemicals can be tracked in real-time providing accurate information about their inventory, consumption, transportation, disposal, and location.",68,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +206,aramco.pdf,"Utilizing RFID technology, chemicals can be tracked in real-time providing accurate information about their inventory, consumption, transportation, disposal, and location. What are we doing?Through our Namaat industrial investment arm, we launched IK Metals Reclamation and Catalyst Manufacturing as a non-equity investor. With a consortium of investors, the state-of-the-art recycling complex will integrate manufacturing facilities for fresh residue upgrading for catalysts and energy storage batteries in the Kingdom. The IK Supercenter is planned across three discrete phases: Phase 1 will see the construction of hydrometallurgical technology for vanadium reclamation to be used for producing vanadium electrolytes, for use in energy storage batteries. Phase 2 will see the expansion of the IK Supercenter to include a hybrid hydro-pyrometallurgical technology for metals reclamation of spent residue upgrading catalyst feedstock. Phase 3 will further expand the IK Supercenter to include a fresh residue upgrading catalyst manufacturing facility. 1 Phase 2 Phase 3 Phase Aramco Sustainability Report 2022 68 Minimizing environmental impact",68,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +207,aramco.pdf,"Plastic waste management Our vision is to play a meaningful role in eliminating plastic waste and leakage to the environment, and it is informed by four key points: Aramco continues to promote the use of recycled plastics in the construction industry. For example, synthetic rubber from waste tyres was deployed in asphalt pavement construction as a partial replacement to bitumen (up to 10%). We are also exploring methods and ways to increase the circular economy in the plastic industry in collaboration with key stakeholders, including recycling companies and local authorities. We are currently assessing the development of a plastic recycling investment that aims to recycle post-consumer waste plastic into recycled pellets. The demand for plastic is projected to grow faster than the available supply of recycled materials due to increasing population, urbanization and economic development. Plastic waste cannot be solved only by consuming less and recycling more — we need a re-engineering of the whole plastic value chain. Plastic products need to be better designed with a focus on circularity with greater efficiency, reusability and improved recyclability. Innovative technologies, such as the “refinery of the future” concept can address reusability by converting plastic waste into sustainable fuels or adopting chemical recycling technologies.",69,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +208,aramco.pdf,"Innovative technologies, such as the “refinery of the future” concept can address reusability by converting plastic waste into sustainable fuels or adopting chemical recycling technologies. 2 3 4 1 With our subsidiary SABIC, we are developing alternative uses for plastic waste and its recovery, ranging from mechanical to chemical recycling and new material design to provide more circular plastics. Durable and non-metallic materials are an integral part of the auto industry, and demand is expected to grow significantly as we transition to hybrid and electric vehicles. Most of the plastics used in automobiles come from polymers — and our affiliate, SABIC, introduced the world’s first circular polymer. In addition to our individual efforts to address the challenges related to plastic waste management, we support involvement with collective prevention work directly or via our subsidiaries. We partner or engage with a range of industry associations, regulators, and non- government bodies. 6969",69,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +209,aramco.pdf,Aramco Sustainability Report 2022 70,70,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +210,aramco.pdf,"Growing societal value Material topics Relevant UN SDGs For more details on relevant metrics, see page 86. Labor practices Number of people on Aramco sponsored programs*1 National content Saudization (%) Saudization of construction contracts (%) Saudization of service contracts (%) iktva procurement spend in-Kingdom (%) Human rights (supply chain) % of active suppliers signed up to Aramco’s Supplier Code of Conduct* Number of active suppliers* Community and society Social investment* ($ million) Number of volunteers* Number of volunteer hours* Economic contribution Direct economic value generated and distributed ($ million) Total R&D spend ($ million) Relevant metrics From the first discovery of oil in Saudi Arabia in 1933, we have created sustainable opportunities for the welfare of the Kingdom and the global communities where we operate. Citizenship, and contributing to growing societal value, is a firmly established principle that Aramco dedicates resources and capabilities to. In 2022, Aramco invested $370 million in a range of initiatives that will positively benefit thousands of people around the world. Many of these projects have been realized through strategic collaboration and partnerships with businesses, non-profit organizations, charities, governments, and stakeholders.",71,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +211,aramco.pdf,"Many of these projects have been realized through strategic collaboration and partnerships with businesses, non-profit organizations, charities, governments, and stakeholders. In line with our commitment to relevant UN SDGs and Saudi Vision 2030, we enable citizens and businesses to unleash their full potential, helping to diversify the economy, supporting local content, and developing innovative opportunities for the future. Learn more about how Aramco is mobilizing capabilities, and allocating resources to make a tangible and a positive difference in people’s lives. * Metric reported for the first time externally. 1. These programs include the Vocational College Internship Program (VCIP), University Internship Program (UIP), Summer enrichment program, Tomooh program, Advantage program, and ACCEL International Ajyal Center. Scan here 7171",71,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +212,aramco.pdf,"Growing societal value wherever we operate Nearly a century after the Kingdom’s founding, the Saudi economy continues to grow and prosper thanks in part to the leading role that businesses, particularly Aramco, have played in the country’s development. As Aramco’s business continues to evolve and expand across the Kingdom and the world, the Company has focused its vast energy on creating and developing a local workforce and supply chain infrastructure that can support the Company’s plans for future growth. We are proud of the significant contributions that our dedication to training, development, and in-Kingdom partnerships have provided to the overall economy and society in Saudi Arabia. This continued effort creates a positive feedback loop for our business: it brings our supply chain closer to home; it creates a pipeline of talent to support our business; and it enhances the development of qualified local partners. As our business expands around the world, we seek to apply the same principles and values that made Aramco a success at home. One example of these efforts is our ownership of Motiva (the largest refinery in the U.S.) where we contribute significantly to the American economy through local employment, tax revenues, and a wide range of community projects.",72,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +213,aramco.pdf,"where we contribute significantly to the American economy through local employment, tax revenues, and a wide range of community projects. More information on our contributions abroad are provided on pages 78 and 79. Building the local workforce in the Kingdom of Saudi Arabia Labor practices While Aramco’s current workforce consists of more than 85 nationalities, given that the Company is headquartered in the Kingdom of Saudi Arabia, a large part of our revenues come from the Kingdom. We therefore need to ensure that we build local capacity and capability, not just by investing in socio-economic projects, but by investing in local citizens. Saudization In line with the Kingdom of Saudi Arabia’s government Saudization program, and as part of Vision 2030, we have continued to invest in the national population. At the end of 2022, 90.9% of the Company’s employees were Saudi nationals (90.5% in 2021).",72,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +214,aramco.pdf,"At the end of 2022, 90.9% of the Company’s employees were Saudi nationals (90.5% in 2021). 2022 2021 2020 Saudization (% of Saudi nationals as part of Aramco’s workforce) 90.9% 90.5% 89.6% Within Saudi Arabia, we support a number of preparatory programs, with a particular focus on education and preparing the leaders of the future for further education and employment. In 2022, we led an outreach campaign to high school graduates, promoting the Apprenticeship Program for Non-Employees and the College Degree Program for Non-Employees to more than 317,000 high school students, including over 178,000 young women in 31 cities and governorates across the Kingdom. This positively impacted the quality and number of applications for the non-employees’ programs. The number of applications was more than three times that received in 2021, including an 87% increase in applications from females.",72,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +215,aramco.pdf,"The number of applications was more than three times that received in 2021, including an 87% increase in applications from females. 2022 2021 2020 Number of people on Aramco sponsored programs*1 12,160 9,010 7372 Labor practices and national content 87% increase in applications by females to our education programs * Metric reported for the first time externally. 1. These programs include the Vocational College Internship Program (VCIP), University Internship Program (UIP), Summer enrichment program, Tomooh program, Advantage program, and ACCEL International Ajyal Center. 2. The 2020 figure is significantly lower than the 2021 and 2022 figures due to the global COVID-19 pandemic. Aramco Sustainability Report 2022 72 Growing societal value",72,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +216,aramco.pdf,"Localizing our supply chain In-Kingdom Total Value Add program Our iktva program is a national success story that we are immensely proud of. We are on track to meet our in-Kingdom target of spending 70% of all our procurement spend locally by the end of 2025. Through the program, the local component of our overall 2022 expenditure across our supply chain stood at 63% (2021: 59%). During the year, Aramco entered into over 90 agreements with an estimated value of $17.3 billion (SAR 64.9 billion) to build long-term collaborative relationships with strategic, local suppliers. As a result of our partnerships and local spend, our suppliers had an aggregate invested capex of more than $600 million (SAR 2,250 million) in 2022, which also created over 4,000 jobs for the local workforce. In addition, 31 new local manufacturers were established. Items manufactured for the first time in the Kingdom, included: • A chemical reaction plant; • Frac equipments; • Welding wires; • Venturi flow meters; • Firefighting foams; and • Drilling rigs.",73,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +217,aramco.pdf,"Items manufactured for the first time in the Kingdom, included: • A chemical reaction plant; • Frac equipments; • Welding wires; • Venturi flow meters; • Firefighting foams; and • Drilling rigs. We also introduced three new requirements in the iktva formula to drive emerging focus areas. Incentives are provided to help suppliers meet these requirements, which include: • An Environmental, Social, and Governance factor to drive ESG practices in the local supply chain; • A Cybersecurity factor to drive supply chain and cybersecurity compliance; and • A Regional Headquarter (RHQ) factor to accelerate RHQ migration to the Kingdom, in alignment with Vision 2030. By building a strong supply chain program, we mitigate risks and strengthen Aramco’s position as a reliable and secure supplier of energy. Mainly driven by the iktva program, Aramco’s total domestic spending is estimated to have contributed $166 billion in GDP since the program’s inception Beyond spending locally, we have proactively been building local capabilities in our workforce and supply chain.",73,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +218,aramco.pdf,"To date, this encompasses 965 organizations across 43 different sectors, including oil field services, chemicals, drilling, pipes, steel, and non-metallics. Aramco procurement of domestically produced goods and services has benefited the Saudi Arabian economy. Mainly driven by the iktva program, Aramco’s total domestic spending is estimated to have contributed $166bn in GDP since the program’s inception, when considering the direct and supply chain contribution to the Kingdom’s economy. 7373",73,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +219,aramco.pdf,"Saudization of construction contracts (%) 28.0 21.6 25.6 28.0 2020 2021 2022 Saudization of service contracts (%) 57.2 51.0 56.6 57.2 2020 2021 2022 The Saudization of construction contracts reached 28.0% in 2022, exceeding the 2021 year-end number of 25.6%. The Saudization of service contracts reached 57.2%, exceeding the 2021 year-end number of 56.6%. National Champions In support of the Kingdom’s Vision 2030 to deliver economic diversification and development, an internal National Champions organization was established to be at the forefront of Aramco’s support to the national economy. Our goal is to create a world-class cluster of innovative businesses that drives business and job creation, and national economic growth. Our mission is simple: convert lucrative business ideas into national champions, or large companies that can become leaders in their respective sectors. In doing so, we anticipate that thousands of new private sector jobs will be created across the country, benefiting the national GDP in the process.",74,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +220,aramco.pdf,"In doing so, we anticipate that thousands of new private sector jobs will be created across the country, benefiting the national GDP in the process. Aramco’s National Champions program encompasses a set of unique programs focused around five strategic domains — sustainability, digital, industrial, manufacturing, and social innovation — that drive development from an initial idea to a small- and medium-enterprise (SME) through to global businesses, and aligns with the Kingdom’s Vision 2030 and its Shareek1 Private Sector Partnership Reinforcement Program. 1. A cooperative Government program that is providing job opportunities and diversifying the economy and strengthening cooperation between public and private sectors. Spare Parts Reverse Engineering To sustain equipment spare parts availability, cost and know-how, we developed an in-house digital inventory of equipment spare parts. The inventory is created by multiple automated reverse engineering processes. Approximately 500 digital parts were developed as an initial trial with thousands of additional spare parts targeted in the coming year. Eleven local vendors have been qualified to produce spare parts from the digital inventory whenever needed. With this newly established system, a new source of spare parts has been established to ensure parts availability, reduce cost and improve delivery times. What are we doing?",74,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +221,aramco.pdf,"With this newly established system, a new source of spare parts has been established to ensure parts availability, reduce cost and improve delivery times. What are we doing? Aramco Sustainability Report 2022 74 Growing societal value",74,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +222,aramco.pdf,"What are we doing? National Champions Artificial intelligence In 2022, with a private sector partner, we established the Global AI Corridor to build local capacity and grow talent, nurture Saudi AI startups, and attract high-impact intellectual property and capital investment to the Kingdom. The Corridor is intended to launch several initiatives in the domains of AI research, solutions, upskilling, training, and venturing that augments other Aramco and in-Kingdom initiatives to create a vibrant AI ecosystem, which will assist us in seeking innovative energy management solutions. Arabian Rig Manufacturing Company Two onshore rigs, manufactured in-Kingdom and delivered by Aramco’s joint venture, the Arabian Rig Manufacturing Company (ARM), were successfully commissioned and spudded on well location. Operations have started in Manifa for rig no.1 and Hawyah for rig no.2, representing two of a total of 50 committed onshore rig purchases to date. Locally built drilling rigs will enable additional resilience to our Company, while also providing significant employment opportunities for locals. Taleed Launched in 2022, “Taleed” strives to accelerate the growth of SMEs in Saudi Arabia — helping boost their contribution to economic development and support job creation.",75,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +223,aramco.pdf,"Taleed Launched in 2022, “Taleed” strives to accelerate the growth of SMEs in Saudi Arabia — helping boost their contribution to economic development and support job creation. The program targets sustainable SME growth across multiple sectors through a portfolio of 20 initiatives, providing a wide range of support from capability building and strategy development to training, market access, advisory services, and business planning. Taleed also strives to deliver funding and financial solutions across multiple funds with a combined capital exceeding $800 million (SAR 3 billion). The funds are being established in collaboration with partners to support SME development in sustainability, digital, manufacturing, industrial, and social innovation. 7575",75,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +224,aramco.pdf,"Human rights in the supply chain Human rights is not just relevant for our employees, but also for our broader stakeholders, especially our supply chain. In addition to our Code of Business Conduct (page 85), our Supplier Code of Conduct provides more details on the standards we expect our suppliers to conform to in relation to ethical sourcing, labor conditions and human rights. To mitigate the risk of any of our suppliers falling short of our values, we require all suppliers in Saudi Arabia to sign the Supplier Code of Conduct, which along with the Company supplier contractual agreement terms, set our commitments to prohibiting all forms of child and forced labor, illegal working and living conditions, and violations of locally applicable minimum wages. Over the past three years, all our suppliers in Saudi Arabia have agreed and signed up to the Code of Conduct, which requires Aramco’s suppliers to ensure and respect human rights in Saudi Arabia, such as providing end of service benefits or medical insurance that comply with the labor law of the Kingdom. We recognize due diligence in human rights and complying with the Code of Conduct requires thoroughness, to ensure the implementation of our values and standards.",76,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +225,aramco.pdf,"We recognize due diligence in human rights and complying with the Code of Conduct requires thoroughness, to ensure the implementation of our values and standards. Therefore, Aramco regularly examines its businesses, suppliers, government relationships, acquisitions, mergers and divestitures. Our contracting teams inspect our suppliers, especially in high-risk locations, to check for any malpractice, e.g., contractors being paid below minimum wage and/or unsafe living conditions. As mentioned on page 73, this year we incorporated an ESG element in the iktva program to drive better ESG practices in the local supply chain and by awarding suppliers an incentive factor through the iktva formula. As part of a two-way engagement process, our suppliers have access to a hotline to report concerns, which are reviewed and investigated to limit the risk of inappropriate activities. Human rights Aramco Sustainability Report 2022 76 Growing societal value",76,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +226,aramco.pdf,"Social investment The Company’s citizenship strategy is defined by two key pillars: People and Planet. People social investment activities focus on two key areas of support: knowledge and creativity, and socio-economic development. Planet social investment activities prioritize the protection of diverse biospheres, including reforestation, mangrove and tree plantation, and coral reef regeneration, among other projects. In 2022, we made social investments of $370 million in Saudi Arabia and abroad. Examples of the types of projects we invested in are provided on pages 78 and 79. Socio-economic development: Micro-industries programs The primary focus of this effort is to identify, evaluate, and incubate high potential micro- enterprises across the Kingdom with the goal of creating a self-sufficient, value-generating businesses that supports community economic growth. Saudi coffee plantation and production In 2022, Aramco signed MoU to build a National Coffee Development Center that will enable coffee farmers in several ways. The center intends to provide farmers with the training and resources to produce higher quantities of coffee beans. The center will also support farmers through the different stages of production, from treating the coffee beans all the way to the packaging stage.",77,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +227,aramco.pdf,"The center will also support farmers through the different stages of production, from treating the coffee beans all the way to the packaging stage. The center is currently being built in partnership with the Jazan Mountain Development Authority, and Al-Dayer Ber Charity. Community and society Rosyar factory The Rosyar factory produces high quality FDA approved body care products from al-Taif rose oil. The factory provides employment for socially disadvantaged women and provides them with a sustainable means of income. In 2022, the factory increased the number of beneficiaries from 50 to 100 women. Additionally, over 40 new jobs were created. Over 1.5 million students in 28,000 schools participating in the F1 in Schools challenge Enabling people: Focus on STEM F1 Schools is a global STEM challenge where a team of 3-6 students design, manufacture and race a miniature Formula 1 car of the future and teams follow a systematic engineering design process using technology. The challenge inspires learning in STEM including project management, marketing, teamwork and innovation. Teams submit their cars, project portfolios, designs and are judged by SMEs.",77,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +228,aramco.pdf,"The challenge inspires learning in STEM including project management, marketing, teamwork and innovation. Teams submit their cars, project portfolios, designs and are judged by SMEs. The winners progress at each stage with only the top teams from each country attending the annual Aramco F1 in Schools World Finals. To date, there are over 1.5 million students in 28,000 schools across 60 countries. Aramco, which became a title sponsor of the F1 in Schools world finals last year, is supporting its introduction to Saudi Arabia as part of the Company’s efforts to promote education, foster a culture of innovation and creativity, and accelerate human potential. The Saudi team selected for the national finals are supported by Ithra, Aramco’s flagship corporate citizenship initiative, as well as the Technology Advancement and Prototyping Center at King Fahd University of Petroleum and Minerals (KFUPM). Saudi students participated in the Global Finals for the first time in the event held in the UK in 2022. The initial cohort of 18 male and female students was drawn from public and private schools through a selection criteria. The training hubs included specialist facilitators and a state-of-the-art research and development lab.",77,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +229,aramco.pdf,The initial cohort of 18 male and female students was drawn from public and private schools through a selection criteria. The training hubs included specialist facilitators and a state-of-the-art research and development lab. The students went through an intensive training program with three teams chosen to go to the global final and won the Best Newcomers Award 2022. What are we doing? 7777,77,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 " +230,aramco.pdf,"Asia In Asia, Aramco supported 11 organizations across China, Malaysia, Singapore, Japan, Korea, and India, with various environmental, education, social, and medical initiatives. Textile industry  People Established in the second half of 2022, Imprint is a local factory producing government uniforms. Established in collaboration with Alanamel Almobdeah Charity, the center provides training and employment, with a specific focus on garment production for government personnel, and includes employment opportunities to rehabilitate newly released prisoners. Children Benefit  People Established in 2010, the CCAFC is a nationwide non-profit organization, committed to improving the livelihood of underprivileged children in China. The goal is to provide medical checkups and necessary follow-up treatment for underprivileged children in rural areas with inadequate access to professional health care facilities. Approximately 1,300 underprivileged children will benefit from the project, which also provides repetition, dental care and eye care in the Fujian, Liaoning, Shandong, and Jiangsu provinces. Global Environment Centre  Planet The Global Environment Centre is a Malaysian non-profit organization established to address key environmental issues.",78,"[Guess]: No +[Confidence]: 1.0 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +231,aramco.pdf,"Global Environment Centre  Planet The Global Environment Centre is a Malaysian non-profit organization established to address key environmental issues. The funding will enable support for community-based mangrove conservation and rehabilitation in two areas in Pengerang, Johor: Tanjung Surat Island and Johor River Forest reserve. Saudi Arabia In Saudi Arabia, one of Aramco’s key initiatives is to evaluate and incubate Saudi-based micro-enterprises that can potentially grow at scale and make a significant community economic impact. Artificial reef deployment in the  Planet Arabian Gulf The deployment of three mega reefs is an initiative with a goal to improve the fisheries in the Gulf and enhance biodiversity by providing habitat for fish and other marine life. In 2022, we completed the development of the artificial reef blocks and deployment will begin when pending government permits are issued. During 2022, Aramco made $370 million of social investment around the world across various initiatives. The map and case studies below present some highlights of our people and planet projects during the year. Global citizenship Aramco Sustainability Report 2022 78 Growing societal value",78,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +232,aramco.pdf,"Europe In Europe, Aramco supported eight non-profit organizations across Spain, the Netherlands and the U.K. Americas In the Americas, Aramco supported 13 non-profit organizations, including national and regional/state charities, in environmental, STEM and social projects. Houston Food Bank  People The Houston Food Bank is a non-profit organization serving 18 counties, almost 93,000 households, and 159 million meals a year. Aramco’s donation will provide the equivalent of 150,000 meals to communities in need in the Greater Houston area. Geology Camp  Planet A Texas A&M University program investing in teacher’s professional development, enriching the classroom experience for students. Aramco sponsors this program with our Upstream and Geology teams. Leiden University  People Collaborating with education institutions (including schools and universities) to increase public awareness, knowledge and understanding of Islam and Middle East. Fundación Global Nature  Planet The Fundación Global Nature is a non-profit foundation dedicated to nature protection. The foundation aims to restore and expand the El Hito, a priority salt flat and wetland area in southeast Spain. The program looks to purchase traditional farmland around steppe wetlands to implement pilot programs of sustainable agriculture to train local farmers. 7979",79,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +233,aramco.pdf,"King Abdulaziz Center for World Culture (ithra) In 2022, our largest social investment was ithra, Saudi Arabia’s leading destination for cross- cultural experiences. Since opening in Dhahran in 2018, ithra has been a catalyst for cultivating innovation, developing talent, expanding human potential and empowering creativity. In 2022, ithra delivered over 8,000 programs and welcomed more than one million visitors. For example, the Tanween Bio-tech Fashion Challenge invited designers to create unique garments exploring the potential of new biomaterials and sustainable business models; and the Idea Lab produced initiatives dedicated to environmental and economic sustainability. ithra’s Content Commissioning Program provides Saudi freelancers and small enterprises with opportunities to develop creative content including literature, film, translation and music. It includes the flagship Tanween Creativity Season and the immersive-tech oriented Creative Solutions program. Matched giving In 2022, the Corporate Donation Program celebrated its 20th anniversary, reaching another record number of donations (2022: $1.7 million/ SAR 6.3 million versus 2021: $1.6 million/ SAR 6.0 million).",80,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +234,aramco.pdf,"Aramco’s matched giving program enabled these donations to be doubled; thus $3.4 million/SAR 12.6 million in 2022 and $3.2 million/SAR 12 million in 2021 being donated by Aramco. There were 18,500 participants in this program with 41,000 beneficiaries. Volunteering days Along with engaging with our communities via business activities, matched giving and social investments, we encourage our management and employees to engage with communities through volunteering. In December 2021, we also launched a structured year-round volunteering portal to help identify volunteering activities that match Company employees’ talents. 2022 2021 2020 Number of volunteers* 4,9411 4,153 1,503 Number of volunteer hours* 168,5901 136,284 52,408 What are we doing? In 2022, Aramco’s employees delivered 168,590 volunteer hours*. In addition, an MoU was signed with the Alfozan Academy to train more than 90,000 volunteers in 2023, 2024, and 2025. Going forward, the plan is to increase our volunteering initiatives across a range of social and environmental projects.",80,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +235,aramco.pdf,"Going forward, the plan is to increase our volunteering initiatives across a range of social and environmental projects. AFAC Autism Center A supportive community center for children aged 3 to 16 on the autism spectrum and their families. Al-Madina Association for Autism (Tamakkon) A facility that provides diagnosis, care, education and rehabilitation for people on the autism spectrum. Hiba Center for Down Syndrome An education and rehabilitation center for children with Down Syndrome. ACCEL Ajyal Center for children with disabilities Provides educational, therapeutic, employment, behavioral, life skills, and transitional services. Shamaah Autism Center A supportive educational environment that promotes the inclusion of people on the autism spectrum in education and society. Supporting people with disabilities In Saudi Arabia, Aramco has a history of supporting children and adults with developmental disabilities, particular in Autism and Down Syndrome. The Company has provided support to a number of specialist organizations and treatment centers, including: Aramco supported events delivering 168,590 volunteer hours* * Metric reported for the first time externally. 1.",80,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +236,aramco.pdf,"The Company has provided support to a number of specialist organizations and treatment centers, including: Aramco supported events delivering 168,590 volunteer hours* * Metric reported for the first time externally. 1. As we progress on our reporting journey and our controls around ESG data mature, for this metric from 2022 onwards, we have expanded the reporting boundary from Company in-Kingdom to operational control. The 2021 and 2020 figures are at a Company in-Kingdom level only. In 2022, at a Company in-Kingdom level, the number of volunteers were 4,397 and the number of volunteer hours were 166,734. Aramco Sustainability Report 2022 80 Growing societal value",80,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +237,aramco.pdf,"Economic contribution Aramco’s value to local economies With our operations in more than 30 countries and activities throughout the value chain, Aramco creates value and makes significant positive economic contributions, wherever we operate. Beyond our $30 billion iktva spend, $370 million global social investment and leveraged capex of more than $600 million via our value chain, we increased our payments to governments by 52% ($226 billion in 2022 versus $149 billion in 2021) and our global R&D spend by 14% ($1.2 billion in 2022 versus $1 billion in 2021). Our R&D spend enables us to support projects that have the potential to positively change the way we do business and enables us to contribute positively to the communities we operate in, as well as increase the number of potential job opportunities available. Our R&D spend is not limited to providing economic benefits but they also have the potential to provide sustainability benefits. Similar to last year where 52% of our total R&D was sustainability-related, in 2022, 59% of our total R&D was linked to sustainability related projects, which can help us reduce our environmental footprint (CCS, methane, biodiversity, etc.)",81,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +238,aramco.pdf,"as well as help us focus on new energies (hydrogen, renewables, etc.) Revenue $535 (2021: $359 billion) Net income $161 (2021: $110 billion) R&D spend $1.2 (2021: $1 billion) Employee wages $15 (2021: $14 billion) Social investments* $370 (million) Payments to governments1 $226 (2021: $149 billion) Dividends2 $79 (2021: $77 billion) * Metric reported for the first time externally. 1. Figure includes income taxes, royalties and dividends. 2. Dividends paid includes dividends to shareholders and non-controlling interests. 8181",81,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +239,aramco.pdf,Aramco Sustainability Report 2022 82,82,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +240,aramco.pdf,"Material topics Relevant UN SDGs Corporate governance Board composition by average age Board composition by average tenure Board members’ average attendance* (%) Number of independent Board members* Board diversity* (number of females on the Board) Ethics, anti-bribery and anti-corruption (compliance) Number of allegations received through the 24-hour hotline Anti-bribery and anti-corruption training In this section, we discuss sustainability governance. Please see our 2022 Annual Report for greater details of our corporate governance. Relevant metrics For more details on relevant metrics, see page 86. The Board of Directors (Board) of the Company acts as an oversight body for Company management, including providing strategic leadership and guidance, as well as assessing opportunities, risks, and risk mitigation controls. The Board also oversees the Company’s governance, risk, compliance regime and sustainability performance. The Chairman of the Board is H.E. Yasir O. Al-Rumayyan. The current members of the Board include high-ranking Saudi Government officials and former senior executives from the international oil and gas, chemical, petroleum refining, petrochemical, and finance industries. Governance Learn more about our corporate governance structure.",83,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +241,aramco.pdf,Governance Learn more about our corporate governance structure. Scan here * Metric reported for the first time externally in our Sustainability Report. 8383,83,"[Guess]: No +[Confidence]: 0.9 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +242,aramco.pdf,"2022 2021 2020 Board composition by average age 63 62 61 Board composition by average tenure 6 5 5.6 Board members’ average attendance* (%) 100 97 98 Number of independent Board members* 5 5 5 Board diversity* (number of females on the Board) 1 1 1 Our Board and senior executives Our Board members and senior executives have strong oversight of the Company’s financial and sustainability strategy and performance. In 2022, there was 100% attendance* at Board meetings. Five of the eleven Board members are independent. Executive remuneration Senior executive remuneration is linked to the Company’s sustainability performance. The remuneration framework for senior executives is designed to provide a balanced remuneration package that includes fixed and variable remuneration. The variable remuneration is market-aligned and subject to the fulfillment of predefined performance goals. Performance goals include sustainability metrics, such as GHG emissions intensity, flaring and safety.",84,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +243,aramco.pdf,"The variable remuneration is market-aligned and subject to the fulfillment of predefined performance goals. Performance goals include sustainability metrics, such as GHG emissions intensity, flaring and safety. Two variable pay plans are used: (i) Short-Term Incentive Plan (STIP) — an annual cash-based plan designed to reward performance in four areas (financial, operational, safety, and sustainability); and (ii) Long-Term Incentive Plan (LTIP) — designed to reward key financial, strategic and environmental/sustainability performance over a three-year period. Sustainability governance Our sustainability governance model strives to align our sustainability aspirations with the corporate business strategy and goals. Board Sustainability, Risk and HSE Committee The Board Sustainability, Risk and HSE (Health, Safety and Environment) Committee provides oversight and review of Company plans and performance, and advises on our sustainability, risk and HSE policies and practices to ensure that these are discussed, understood, owned and promoted at Board level. This includes advising on the Company’s response to climate change. This Committee meets quarterly to review the HSE performance (including health and safety incidents).",84,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +244,aramco.pdf,"This includes advising on the Company’s response to climate change. This Committee meets quarterly to review the HSE performance (including health and safety incidents). Our sustainability governance Board Sustainability, Risk and HSE Committee Sustainability Steering Committee Management Committee Strategy Council HSSE Committee Board of Directors President and CEO Strategy and Corporate Development ESG Strategy and Reporting Department Sustainability governance management framework In 2022, there was 100% attendance at Board meetings* * Metric reported for the first time externally in our Sustainability Report. Aramco Sustainability Report 2022 84 Governance",84,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +245,aramco.pdf,"Corporate committees Overall accountability for sustainability within Aramco lies with the chief executive officer, the Management Committee and the Strategy Council. They are supported by the Health, Safety, Security and Environment Committee (HSSE) and the Sustainability Steering Committee (SSC). The Company’s HSSE Committee is led by the president and CEO. It establishes the Company’s health, safety, security, and environmental policies and reviews key issues. This includes Company-wide safety initiatives, environmental and safety performance, compliance and conformance reviews, major HSSE incidents, insurance survey results, and cybersecurity. Sustainability Steering Committee The SSC, led by the executive vice president of Strategy and Corporate Development, reports to both the Strategy Council and Management Committee. The committee is comprised of senior vice presidents representing key Business Lines and Administrative Areas in the Company. The role of the SSC is to identify issues linked to sustainability and enable Aramco to categorize any potential impact on long-term value creation for stakeholders and the business. The SSC has specific accountability for the review of the Company’s climate strategy, decarbonization plans, and corporate risk assessments. The outcome of these reviews are then presented and endorsed by the Management Committee prior to the final review by the Board.",85,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +246,aramco.pdf,"The outcome of these reviews are then presented and endorsed by the Management Committee prior to the final review by the Board. Ethics and compliance Aramco maintains a zero tolerance policy for unethical behavior and conduct. Aramco expects its employees, and any party it does business with, to adhere to the principles contained in this policy. The policy includes, but is not limited to, anti-bribery, anti-corruption, and anti-fraud. Code of Business Conduct Aramco’s Code of Business Conduct is the foundation of our compliance program, which includes specific principles regulating anti- bribery and anti-corruption. Aramco has a mandatory enterprise-wide online Code of Conduct training program. The Code of Conduct is supported by compliance policies, implementing procedures and guidelines. Procedures have been developed to operationalize and support our anti-bribery and anti-corruption policies, which prohibits bribery and corruption in all forms. It includes, but is not limited to, procedures for third-party due diligence, gifts, meals, entertainment, and travel.",85,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +247,aramco.pdf,"It includes, but is not limited to, procedures for third-party due diligence, gifts, meals, entertainment, and travel. An anonymous 24-hour hotline, the General Auditor Hotline is open to employees, suppliers, and all stakeholders to report any suspected misconduct, including allegations related to bribery or corruption. Information about the hotline is available on Aramco’s public webpage and enables reporting via email, telephone, facsimile, or the Company’s intranet. Aramco has zero tolerance for retaliation, in any form, for good faith reporting of suspected misconduct. As part of our continued enhancements to our compliance program, we maintain committees to review findings of misconduct committed by personnel or third parties to ensure timely implementation of appropriate and consistent remedial measures. In 2022, there were 655 allegations (2021: 539) relating to a range of different topics, such as breach of the Aramco Code of Conduct, conflicts of interest/ethics (including alleged bribery and fraud) and misuse of IT equipment.",85,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +248,aramco.pdf,"2022 2021 2020 Number of allegations received through the 24-hour hotline 655 539 619 The number of allegations received from Aramco employees increased during the year, whereas allegations from anonymous sources has decreased significantly, especially when compared to prior years. We believe this indicates that employees have a growing level of awareness and trust regarding ethics matters, policy compliance expectations, and the channels for reporting and communicating concerns. The proliferation of digital technology and data analytics tools across Aramco has also been a major contributor to the increase in the number of allegations received in 2022. 8585",85,"[Guess]: No +[Confidence]: 1.0 +","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +249,aramco.pdf,"Data The following table presents Aramco’s sustainability metrics for the years 2022, 2021, and 2020. Reporting boundaries for each metric and for each year are shown for transparency, and where possible, comparability. There are three common terms used in reference to the metrics’ reporting boundaries and the definitions of the commonly used terms are: Company in-Kingdom — Saudi Arabian Oil Company in-Kingdom wholly-owned operated assets. Operational control — Saudi Arabian Oil Company in-Kingdom wholly- owned operated assets, SASREF, Motiva, ARLANXEO, Aramco Trading Company (ATC), Aramco Services Company (ASC), Aramco Overseas Company B.V. (AOC) and Saudi Aramco Asia Company Ltd. (SAAC). Group — Saudi Arabian Oil Company, together with its consolidated subsidiaries, and where the context requires, its joint operations, joint ventures and associates. For more information on our metrics, see our sustainability data on our website. Scan here Aramco Sustainability Report 2022 86",86,"[Guess]: No +[Confidence]: 0.9 +user","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +250,aramco.pdf,"Our metrics Material topic Metric definition (unit of measure) 2022 actual 2022 boundaries 2021 actual 2021 boundaries 2020 actual 2020 boundaries Climate change and the energy transition Climate change Scope 1 emissions (million metric tonnes of CO2e) 55.71,2 Operational control excluding ATC, ASC, AOC and SAAC 52.31,2 Operational control excluding ATC, ASC, AOC and SAAC 50.21,2,3 Operational control excluding ATC, ASC, AOC and SAAC Climate change Scope 2 emissions (million metric tonnes of CO2e) Location-based 16.11,2 Operational control excluding ATC, ASC, AOC and SAAC 15.51,2 Operational control excluding ATC, ASC, AOC and SAAC 18.11,2,3 Operational control excluding ATC, ASC, AOC and SAAC Climate change Scope 2 emissions (million metric tonnes of CO2e) Market-based*4 10.31,2 Operational control excluding ATC, ASC,",87,"[Guess]: Yes +[Confidence]: 0.9 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +251,aramco.pdf,"AOC and SAAC Climate change Scope 2 emissions (million metric tonnes of CO2e) Market-based*4 10.31,2 Operational control excluding ATC, ASC, AOC and SAAC Metric not disclosed previously Climate change Upstream carbon intensity5 (ratio of total upstream GHG emissions (Scopes 1 and 2) to production marketed6, kg CO2e/ boe) Location-based 10.31 Operational control 10.71 Operational control 10.63 Operational control Climate change Upstream methane emissions5 (metric tonnes of CH4) 29,193 Operational control 26,754 Operational control 26,4243 Operational control Climate change Upstream methane intensity5 (methane emissions from upstream operations per volume of marketed natural gas, %) 0.05 Operational control 0.05 Operational control 0.063 Operational control * Metric reported for the first time externally. 1. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. 2.",87,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +252,aramco.pdf,"1. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. 2. The Jazan Refinery (our downstream refinery) is excluded from our GHG reporting. In 2022, it remains in the startup and stabilization phase and is not fully operational. Aramco is working to stabilize the refinery’s operations and complete all necessary reporting configurations before the end of 2023. Reporting on the refinery’s environmental and sustainability elements will commence immediately thereafter, in line with the company’s commitment to operational transparency. 3. Fadhili Gas Plant is excluded from 2020 GHG emissions inventory. 4. In 2022, we also adopted a market-based methodology for our Scope 2 emissions, as per the GHG Protocol Scope 2 Guidance. 5. For this metric, the reporting boundary has been reclassified from Company in-Kingdom to operational control for 2022, 2021 and 2020. All of the company’s upstream operations are in the Kingdom of Saudi Arabia, therefore for this metric, Company in Kingdom and operation control are the same. 6. The methodology of this metric is the same as previous years and no change in figures.",87,"[Guess]: No +[Confidence]: 0.99 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +253,aramco.pdf,"6. The methodology of this metric is the same as previous years and no change in figures. However, the term ‘production sold’ has been renamed to ‘production marketed’ to align with our reporting to the OGCI Reporting Framework (Version 3.6, March 2022). 8787",87,"[Guess]: No +[Confidence]: 0.99 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +254,aramco.pdf,"Material topic Metric definition (unit of measure) 2022 actual 2022 boundaries 2021 actual 2021 boundaries 2020 actual 2020 boundaries Climate change and the energy transition Climate change Flaring intensity2 (volume of hydrocarbon gas flared per barrel of oil equivalent produced, scf/boe) 4.601,3 Operational control 5.513 Operational control 5.973,4 Operational control Climate change Flared gas2 (MMscf) 23,8183 Operational control 25,8253 Operational control 26,9953,4 Operational control Climate change Energy intensity (ratio of total net energy consumption and total production, thousand Btu/boe) 146.25 Operational control 116.61,3 Company in-Kingdom 112.41,3,4 Company in-Kingdom Safe operations and people development Workforce protection Number of fatalities 51 Operational control 11 Operational control 11 Company in-Kingdom Workforce protection Lost time injuries/ illnesses rate (number of LTI cases x 200,000/total work hours) 0.0141 Operational control 0.",88,"[Guess]: No +[Confidence]: 0.9","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +255,aramco.pdf,"000/total work hours) 0.0141 Operational control 0.017 Operational control 0.011 Company in-Kingdom Workforce Protection Total recordable case frequency (total recordable incidents x 200,000/total work hours) 0.050 Operational control 0.054 Operational control 0.044 Company in-Kingdom Workforce protection Health performance* (number of overdue major health findings) x (100)/ total number of open major health findings) (%) 151 Operational control excluding ATC, ASC, AOC and SAAC 15 Operational control excluding ATC, ASC, AOC and SAAC 20 Operational control excluding ATC, ASC, AOC and SAAC Process safety and asset integrity Number of Tier 1 process safety events 11 Operational control 11 Operational control 9 Company in-Kingdom * Metric reported for the first time externally. 1. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. 2.",88,"[Guess]: No +[Confidence]: 0.9","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +256,aramco.pdf,"1. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. 2. For this metric, the reporting boundary has been reclassified from operational control excluding ATC, ASC, AOC and SAAC to operational control for 2022, 2021 and 2020. This is because ATC, ASC, AOC and SAAC have no flaring emissions. 3. The Jazan Refinery (our downstream refinery) is excluded from our GHG reporting. In 2022, it remains in the startup and stabilization phase and is not fully operational. Aramco is working to stabilize the refinery’s operations and complete all necessary reporting configurations before the end of 2023. Reporting on the refinery’s environmental and sustainability elements will commence immediately thereafter, in line with the company’s commitment to operational transparency. 4. Fadhili Gas Plant is excluded from 2020 GHG emissions inventory. 5. As we progress on our reporting journey and our controls around ESG data mature, for this metric from 2022 onwards, we have expanded the reporting boundary from Company in-Kingdom to operational control. The 2021 and 2020 figures are at a Company in-Kingdom level only.",88,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +257,aramco.pdf,"The 2021 and 2020 figures are at a Company in-Kingdom level only. In 2022, at a Company in-Kingdom level, the energy intensity was 112.9 thousand Btu/boe. Aramco Sustainability Report 2022 88 Our metrics",88,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +258,aramco.pdf,"Material topic Metric definition (unit of measure) 2022 actual 2022 boundaries 2021 actual 2021 boundaries 2020 actual 2020 boundaries Safe operations and people development Human rights Number of grievances raised* 293 Company in-Kingdom 236 Company in-Kingdom 297 Company in-Kingdom Human rights Sites with a grievance mechanism in place* (%) 100 Company in-Kingdom 100 Company in-Kingdom 100 Company in-Kingdom Labor practices Attrition rate* (%) 2.4 Company in-Kingdom 2.8 Company in-Kingdom 7.8 Company in-Kingdom Labor practices Number of company employees 70,496 Company in-Kingdom 68,493 Company in-Kingdom 66,800 Company in-Kingdom Labor practices Number of female employees* 4,503 Company in-Kingdom 3,802 Company in-Kingdom 3,400 Company in-Kingdom Labor practices Female (%) of total employees 6.4 Company in-Kingdom 5.61 Company in-Kingdom 5.",89,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +259,aramco.pdf,"400 Company in-Kingdom Labor practices Female (%) of total employees 6.4 Company in-Kingdom 5.61 Company in-Kingdom 5.11 Company in-Kingdom Labor practices Number of female employees in leadership positions* 176 Company in-Kingdom 136 Company in-Kingdom 110 Company in-Kingdom Labor practices Female (%) of total number of new hires* 28.4% Company in-Kingdom 31.2% Company in-Kingdom 34.1% Company in-Kingdom Labor practices Female employees (%) of leadership positions 3.8 Company in-Kingdom 3.1 Company in-Kingdom 2.7 Company in-Kingdom Labor practices Number of contractor employees* (Supplementary man power) 7,639 Company in-Kingdom 6,339 Company in-Kingdom 6,365 Company in-Kingdom Labor practices Employees receiving regular performance reviews (%) 90.6 Company in-Kingdom 96.8 Company in-Kingdom 98.",89,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +260,aramco.pdf,"365 Company in-Kingdom Labor practices Employees receiving regular performance reviews (%) 90.6 Company in-Kingdom 96.8 Company in-Kingdom 98.4 Company in-Kingdom Labor practices Employee engagement score* (%) 85% Company in-Kingdom N/A as this survey is done every two years 85% Company in-Kingdom Labor practices Number of hired graduates 1,459 Company in-Kingdom 1,447 Company in-Kingdom 460 Company in-Kingdom Labor practices Number of apprentices 1,728 Company in-Kingdom 1,369 Company in-Kingdom 1,001 Company in-Kingdom Labor practices Number of interns 3,190 Company in-Kingdom 1,922 Company in-Kingdom 641 Company in-Kingdom Labor practices Total hours of training and development* (million) 13.0 Company in-Kingdom 12.8 Company in-Kingdom 12.",89,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +261,aramco.pdf,0 Company in-Kingdom 12.8 Company in-Kingdom 12.1 Company in-Kingdom Labor practices Average hours of training and development* (per employee) 183 Company in-Kingdom 188 Company in-Kingdom 176 Company in-Kingdom * Metric reported for the first time externally. 1. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. 8989,89,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +262,aramco.pdf,"Material topic Metric definition (unit of measure) 2022 actual 2022 boundaries 2021 actual 2021 boundaries 2020 actual 2020 boundaries Minimizing environmental impact Local environmental impact Number of hydrocarbon spills Total number of accidental release events of liquid petroleum hydrocarbon into the environment, where the spill incident is > 1 bbl 15 Operational control 13 Operational control 6 Operational control Local environmental impact Volume of hydrocarbon spills Total volume of liquid petroleum hydrocarbon accidentally released into the environment, where the spill incident is > 1 bbl 142,8851 Operational control 14,447 Operational control 134 Operational control Local environmental impact Recovered hydrocarbon Percentage of liquid petroleum hydrocarbon removed from the environment through recovery methods* (%) 91 Operational control 94 Operational control Metric not disclosed previously Local environmental impact Hydrocarbon discharge to water2 The total of hydrocarbons that are systematically released to surface water through regulated industrial wastewater discharges (barrels) 16.41 Operational control 30.",90,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.95 " +263,aramco.pdf,"41 Operational control 30.7 Operational control 20.2 Operational control Local environmental impact SO2 emissions3,4 Quantity of sulfur dioxide (SO2) (kilotonnes) 1671 Operational control 141 Operational control 163 Operational control Local environmental impact Number of sites with ISO 14001 certification* (%) 981 Operational control Metric not disclosed previously * Metric reported for the first time externally. 1. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. 2. As we progress on our reporting journey and our controls around ESG data mature, for this metric, we have expanded the reporting boundary from Company in-Kingdom to operational control. To allow comparability, we have restated the 2021 and 2020 figures in line with the expanded reporting boundary. 3. The Jazan Refinery (our downstream refinery) is excluded from our SO2 emissions reporting. In 2022, it remains in the startup and stabilization phase and is not fully operational. Aramco is working to stabilize the refinery’s operations and complete all necessary reporting configurations before the end of 2023.",90,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +264,aramco.pdf,"In 2022, it remains in the startup and stabilization phase and is not fully operational. Aramco is working to stabilize the refinery’s operations and complete all necessary reporting configurations before the end of 2023. Reporting on the refinery’s environmental and sustainability elements will commence immediately thereafter, in line with the company’s commitment to operational transparency. 4. For this metric, the reporting boundary has been reclassified from operational control excluding ATC, ASC, AOC and SAAC to operational control for 2022, 2021 and 2020. This is because ATC, ASC, AOC and SAAC are office-based entities and therefore, have no SO2 emissions. Aramco Sustainability Report 2022 90 Our metrics",90,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +265,aramco.pdf,"Material topic Metric definition (unit of measure) 2022 actual 2022 boundaries 2021 actual 2021 boundaries 2020 actual 2020 boundaries Minimizing environmental impact Biodiversity Net positive impact* (total biodiversity areas (km2)/Footprint area (km2) x 100) (%) 531 Operational control Metric not disclosed previously Water management Freshwater consumption2 (million m3) The difference between the volume of freshwater removed from the environment, incl. surface water, groundwater, for use in operations, and freshwater returned to the source. The total dissolved solids concentration of this type of water is up to 2,000 mg/l 93.61 Operational control excluding ATC, ASC, AOC and SAAC 94.6 Operational control excluding ATC, ASC, AOC and SAAC 90.2 Operational control excluding ATC, ASC, AOC and SAAC Water management Freshwater withdrawal2 (million m3) 136.6 Operational control excluding ATC, ASC, AOC and SAAC 137.3 Operational control excluding ATC, ASC,",91,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +266,aramco.pdf,"6 Operational control excluding ATC, ASC, AOC and SAAC 137.3 Operational control excluding ATC, ASC, AOC and SAAC 142.9 Operational control excluding ATC, ASC, AOC and SAAC Product stewardship and waste management Industrial waste generated2 The total amount of industrial waste, hazardous and non-hazardous, generated from operating facilities, not including waste recycling, re-using, and recovery (metric tonnes) 318,656 Operational control 240,225 Operational control 313,348 Operational control Product stewardship and waste management Industrial waste recycled* (%) 39.91 Operational control 39.8 Operational control 49.5 Operational control * Metric reported for the first time externally. 1. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. 2. As we progress on our reporting journey and our controls around ESG data mature, for this metric, we have expanded the reporting boundary beyond just Company In-Kingdom.",91,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +267,aramco.pdf,"The assurance report can be found online here. 2. As we progress on our reporting journey and our controls around ESG data mature, for this metric, we have expanded the reporting boundary beyond just Company In-Kingdom. To allow comparability, we have restated the 2021 and 2020 figures in line with the expanded reporting boundary. 9191",91,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +268,aramco.pdf,"Material topic Metric definition (unit of measure) 2022 actual 2022 boundaries 2021 actual 2021 boundaries 2020 actual 2020 boundaries Growing societal value Labor practices Number of people on Aramco sponsored programs*1 12,160 Company in-Kingdom 9,010 Company in-Kingdom 737 Company in-Kingdom National content Saudization (%) 90.9 Company in-Kingdom 90.5 Company in-Kingdom 89.6 Company in-Kingdom National content Saudization of construction contracts (%) Percentage of construction saudi contractors relative to the total construction contractors workforce in Saudi Arabia 28.0 Company in-Kingdom 25.6 Company in-Kingdom 21.6 Company in-Kingdom National content Saudization of service contracts (%) Percentage of Saudi service contractors relative to the total service contractors workforce in Saudi Arabia 57.2 Company in-Kingdom 56.6 Company in-Kingdom 51.0 Company in-Kingdom National content iktva procurement spend within the Kingdom (%) 63.",92,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +269,aramco.pdf,"2 Company in-Kingdom 56.6 Company in-Kingdom 51.0 Company in-Kingdom National content iktva procurement spend within the Kingdom (%) 63.0 Company in-Kingdom 59.0 Company in-Kingdom 57.5 Company in-Kingdom Human rights % of active suppliers signed up to Aramco’s Supplier Code of Conduct* 100% Company in-Kingdom 100% Company in-Kingdom 100% Company in-Kingdom Human rights Number of active suppliers* 3,199 Company in-Kingdom Metric not disclosed previously Community and society Social investment*2 ($ million) 370 Operational control Metric not disclosed previously Community and society Number of volunteers* 4,9413 Operational control 4,153 Company in-Kingdom 1,503 Company in-Kingdom Community and society Number of volunteer hours* 168,5903 Operational control 136,284 Company in-Kingdom 52,408 Company in-Kingdom Economic contribution Direct economic value generated and distributed2: Group Group Group – Revenue ($ million) 535,188 359,",92,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +270,aramco.pdf,"284 Company in-Kingdom 52,408 Company in-Kingdom Economic contribution Direct economic value generated and distributed2: Group Group Group – Revenue ($ million) 535,188 359,181 204,829 – Other income related to sales ($ million) 69,178 41,287 25,062 * Metric reported for the first time externally. 1. These programs include the Vocational College Internship Program (VCIP), University Internship Program (UIP), Summer enrichment program, Tomooh program, Advantage program, and ACCEL International Ajyal Center. 2. This metric is converted at a fixed rate of U.S. dollar 1.00 = SAR 3.75 for convenience only. 3. As we progress on our reporting journey and our controls around ESG data mature, for this metric from 2022 onwards, we have expanded the reporting boundary from Company in-Kingdom to operational control. The 2021 and 2020 figures are at a Company in-Kingdom level only. In 2022, at a Company in-Kingdom level, the number of volunteers were 4,397 and the number of volunteer hours were 166,734. Aramco Sustainability Report 2022 92 Our metrics",92,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +271,aramco.pdf,"Material topic Metric definition (unit of measure) 2022 actual 2022 boundaries 2021 actual 2021 boundaries 2020 actual 2020 boundaries Growing societal value Economic contribution – Operating costs ($ million) 299,279 194,624 127,662 – Employee wages and benefits ($ million) 14,665 14,066 13,670 – Dividends paid ($ million) 78,863 76,911 69,841 – Payments to government ($ million) 225,866 148,542 110,076 Economic contribution Total R&D spend1 ($ million) 1,178 Group 1,033 Group 755 Group Governance Corporate governance Board composition by average age 63 Group 62 Group 61 Group Corporate governance Board composition by average tenure 6 Group 5 Group 5.",93,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +272,aramco.pdf,"6 Group Corporate governance Board members’ average attendance* (%) 100 Group 97 Group 98 Group Corporate governance Number of independent Board members* 5 Group 5 Group 5 Group Corporate governance Board diversity* (number of females on the Board) 1 Group 1 Group 1 Group Ethics, anti-bribery and anti- corruption (compliance) Number of allegations received through the 24-hour hotline 655 Company in-Kingdom 539 Company in-Kingdom 619 Company in-Kingdom Ethics, anti-bribery and anti- corruption (compliance) Anti-bribery and anti-corruption training hours 22,575 Company in-Kingdom 7,300 Company in-Kingdom Metric not disclosed previously * Metric reported for the first time externally in our Sustainability Report. 1. This metric is converted at a fixed rate of U.S. dollar 1.00 = SAR 3.75 for convenience only. 9393",93,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +273,aramco.pdf,"Currencies Currency conversion All financial amounts in SAR and USD in this Report are reported in line with the exchange rates reported in Saudi Aramco’s 2022 Annual Report. SAR/Saudi Riyal Saudi Arabian riyal, the lawful currency of the Kingdom $/USD/US$/Dollar US dollar Units of measurement Barrel (bbl) Barrels of crude oil, condensate or refined products boe Barrels of oil equivalent bscf Billion standard cubic feet bscfd Billion standard cubic feet per day Btu British thermal unit GW Gigawatts Mboed Thousand barrels of oil-equivalent per day MMboed Million barrels of oil-equivalent per day MMscf Million standard cubic feet MMtpa Million metric tonnes per annum per day Volumes are converted into a daily basis using a calendar year (Gregorian) scf Standard cubic feet tscf Trillion standard cubic feet Terms and glossary Affiliate With respect to financial information, the term Affiliate is defined by IFRS, meaning the Company’s subsidiaries, joint arrangements and associates. Aramco Namaat Aramco’s industrial investment program.",94,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +274,aramco.pdf,"Aramco Namaat Aramco’s industrial investment program. ARLANXEO ARLANXEO Holding B.V., a wholly-owned specialty chemicals subsidiary. ATC Aramco Trading Company, a wholly-owned subsidiary of Aramco. Carbon credit A carbon credit is a tradable instrument that represents either; a permit to emit one tonne of CO2 or equivalent GHG (tCO2e) into the atmosphere or; a certificate that represents the avoidance or removal of one tonne of CO2 or equivalent GHG (tCO2e) from the atmosphere. Carbon dioxide (CO2) A naturally occurring gas, and also a byproduct of burning fossil fuels and biomass, as well as land-use changes and other industrial processes. It is the principal human-caused greenhouse gas that affects the Earth’s radiative balance. It is the reference gas against which other greenhouse gases are measured and therefore has a Global Warming Potential of 1. Carbon capture, and storage (CCS) A set of technologies that can reduce CO2 emissions from new and existing coal- and gas-fired power plants, industrial processes, and other stationary sources of CO2.",94,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +275,aramco.pdf,"Carbon capture, and storage (CCS) A set of technologies that can reduce CO2 emissions from new and existing coal- and gas-fired power plants, industrial processes, and other stationary sources of CO2. It is a three- step process that includes capture of CO2 from power plants or industrial sources; transport of the captured and compressed CO2 (usually in pipelines); and underground injection and geologic sequestration, or permanent storage, of that CO2 in rock formations that contain tiny openings or pores that trap and hold the CO2. Sequestration and Storage are often used interchangeably. Utilization is where CO2 is reused in other applications, e.g., food preparation, carbonated drinks manufacturing, etc. Carbon dioxide equivalent (CO2e) A metric measure used to compare the emissions from various greenhouse gases based upon their global warming potential (GWP). Carbon dioxide equivalents are commonly expressed as “million metric tonnes of carbon dioxide equivalents (MMtCO2Eq).” The carbon dioxide equivalent for a gas is derived by multiplying the tonnes of the gas by the associated GWP. MMtCO2Eq = (million metric tonnes of a gas) * (GWP of the gas). Aramco Sustainability Report 2022 94 Abbreviations, terms and glossary",94,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +276,aramco.pdf,"Carbon intensity A measure of greenhouse gas emissions in carbon dioxide (CO2) equivalent per barrel of oil equivalent. Carbon markets Two types of carbon market exist: (1) Regulatory compliance markets — used by companies and governments that by law have to account for their GHG emissions. It is regulated by mandatory national, regional or international carbon reduction regimes. (2) Voluntary markets — the trade of carbon credits is on a voluntarily basis. Carbon offset Reduction credits generated in one location that are transferred to another location or entity, and are usually denominated in metric tonnes of a reduced emission or megawatt hours of renewable energy produced. CHP Combined Heat and Power. Circular carbon economy A circular carbon economy is a framework for managing and reducing emissions. It is a closed loop system involving 4Rs: reduce, reuse, recycle, and remove. Circular economy A circular economy is an economic model of closed loops designed to retain the maximum value of resources, assets and products by design, improve environmental performance and systems thinking is at the core. Climate Usually defined as the “average weather,” or more rigorously, in terms of the mean and variability of relevant quantities over a period of time ranging from months to thousands of years.",95,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +277,aramco.pdf,"Climate Usually defined as the “average weather,” or more rigorously, in terms of the mean and variability of relevant quantities over a period of time ranging from months to thousands of years. Climate change Any significant change in the measures of climate lasting for an extended period of time. Climate change includes major changes in temperature, precipitation, or wind patterns, among others, that occur over several decades or longer. Company/Aramco/Saudi Aramco As used herein, and unless the context or additional text suggests otherwise, the terms “Aramco,” “Saudi Aramco,” “Company,” “we,” “us,” or “ours” refer to Saudi Arabian Oil Co. and its consolidated subsidiaries. Concession As defined and discussed on page 126 of the Saudi Aramco Annual Report 2022. CO2 Carbon dioxide. CO2e Carbon dioxide equivalent. Condensate Light hydrocarbon substances produced with raw gas, which condenses into liquid at normal temperatures and pressures associated with surface production equipment. Decarbonization The process of reducing CO2 (GHG) emissions from the company’s operations. Direct Air Capture (DAC) Technologies and processes that extract CO2 directly from the atmosphere.",95,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +278,aramco.pdf,"Decarbonization The process of reducing CO2 (GHG) emissions from the company’s operations. Direct Air Capture (DAC) Technologies and processes that extract CO2 directly from the atmosphere. The CO2 can be permanently stored in geological formations or used as a feedstock in the production of fuels, chemicals, building materials, and other products containing CO2. Domestic Refers to the Kingdom of Saudi Arabia. Emissions The release of a substance (usually a gas when referring to the subject of climate change) into the atmosphere. Emissions reduction Carbon reduction projects result in a net reduction in absolute CO2/GHG emissions relative to current emission levels or relative to an historical baseline. Energy efficiency Using less energy to provide the same service. Energy efficiency is one of the core strategies for reducing greenhouse gas emissions from fossil fuels. Energy intensity An index for measuring the total energy consumed to generate a unit of product, represented in thousand Btus per total production in barrel of oil equivalent. Energy transition A significant structural change in an energy system. Environment The natural world, as a whole or in a particular geographical area, especially as affected by human activity. ESG Environmental, social and governance.",95,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +279,aramco.pdf,"Energy transition A significant structural change in an energy system. Environment The natural world, as a whole or in a particular geographical area, especially as affected by human activity. ESG Environmental, social and governance. Flaring intensity Volume of gas flared per barrel of oil equivalent produced (scf/boe). Freshwater Non-brackish water with total dissolved solids concentration up to 2,000 mg/l. 9595",95,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +280,aramco.pdf,"G20 Group of Twenty is an intergovernmental forum comprising 19 countries and the European Union (EU). GDP Gross domestic product. The broadest quantitative measure of a nation’s total economic activity, representing the monetary value of all goods and services produced within a nation’s geographic borders over a specified period of time. Greenhouse gas (GHG) Any gas that absorbs infrared radiation in the atmosphere rather than allowing it to radiate into space. Greenhouse gases include CO2, methane, nitrous oxide, ozone, chlorofluorocarbons, hydrochlorofluorocarbons, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride. GHG avoidance The avoidance of GHG emissions that would otherwise occur without the protective actions implemented by an offset project. GHG reduction Quantified absolute decrease in GHG emissions specifically related to/arising from an activity. GHG removal Withdrawal of a GHG and/or a precursor from the atmosphere by a GHG sink or GHG removal technology. Government The Government of the Kingdom of Saudi Arabia (and “Governmental” shall be interpreted accordingly).",96,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +281,aramco.pdf,"Government The Government of the Kingdom of Saudi Arabia (and “Governmental” shall be interpreted accordingly). Greenhouse gas (GHG) emissions Any gaseous compound in the atmosphere that is capable of absorbing infrared radiation. Generally, consists of water vapor, CO2, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride. Aramco’s inventory includes CO2, methane and nitrous oxide. Greenhouse Gas Protocol GHG Protocol establishes comprehensive global standardized frameworks to measure and manage greenhouse gas emissions from private and public sector operations, value chains and mitigation actions. It was a product of the collaboration between the World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD). Group Saudi Arabian Oil Company, together with its consolidated subsidiaries, and where the context requires, its joint operations, joint ventures and associates. HSSE Health, Safety, Security and Environment. Hydrocarbons Substances containing only hydrogen and carbon. Fossil fuels are made up of hydrocarbons.",96,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +282,aramco.pdf,"HSSE Health, Safety, Security and Environment. Hydrocarbons Substances containing only hydrogen and carbon. Fossil fuels are made up of hydrocarbons. Hydrocarbons law Law governing hydrocarbons, hydrocarbon resources, and hydrocarbon operations existing within the territory of the Kingdom, enacted by Royal Decree No. M/37, dated 2/4/1439H (corresponding to December 20, 2017), as amended. IFRS International Financial Reporting Standard(s) that are endorsed in the Kingdom and other standards and pronouncements endorsed by SOCPA. iktva In-Kingdom Total Value Add. The company’s program to promote the development of a localized energy/industrial eco-system. Income tax law/tax law Income Tax Law issued under Royal Decree No. M/1 dated 15/1/1425H (corresponding to March 6, 2004) and its Implementing Regulations issued under Ministerial Resolution No. 1535 dated 11/6/1425H (corresponding to August 11, 2004), as amended from time to time. IPIECA International Petroleum Industry Environmental Conservation Association. IPO The initial public offering.",96,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +283,aramco.pdf,"IPIECA International Petroleum Industry Environmental Conservation Association. IPO The initial public offering. ISO International Organization for Standardization. Joint venture/JV The term joint venture, as defined by IFRS, means a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement. KAUST King Abdullah University of Science and Technology. KFUPM King Fahd University of Petroleum and Minerals. Kingdom Kingdom of Saudi Arabia. KPIs Key performance indicators. LTI Lost time injuries/illnesses. Master Gas System (MGS) An extensive network of pipelines that connects Aramco’s key gas production and processing sites throughout the Kingdom. Ministry of Energy Ministry of Energy of the Kingdom. Successor to MEIM. Aramco Sustainability Report 2022 96 Abbreviations, terms and glossary",96,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +284,aramco.pdf,"Methane (CH4) A hydrocarbon that is a greenhouse gas with a global warming potential most recently estimated at 25 times that of carbon dioxide (CO2). Methane is produced through anaerobic decomposition of waste in landfills, animal digestion, decomposition of animal wastes, production and distribution of natural gas and petroleum, coal production, and incomplete fossil fuel combustion. Motiva Motiva Enterprises LLC — located in the US. National Refers to the Kingdom of Saudi Arabia. Natural gas Underground deposits of gases consisting of 50–90% methane (CH4) and small amounts of heavier gaseous hydrocarbon compounds such as propane (C3H8) and butane (C4H10). Net zero emissions This is achieved when anthropogenic GHG emissions to the atmosphere are balanced by anthropogenic removals. NGL Natural gas liquids, which are liquid or liquefied hydrocarbons produced in the manufacture, purification and stabilization of natural gas. For purposes of reserves, ethane is included in NGL. For purposes of production, ethane is reported separately and excluded from NGL. Nitrogen oxides (NOx) Gases consisting of one molecule of nitrogen and varying numbers of oxygen molecules.",97,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +285,aramco.pdf,"For purposes of production, ethane is reported separately and excluded from NGL. Nitrogen oxides (NOx) Gases consisting of one molecule of nitrogen and varying numbers of oxygen molecules. Nitrogen oxides are produced in the emissions of vehicle exhausts and from power stations. In the atmosphere, nitrogen oxides can contribute to formation of photochemical ozone (smog), can impair visibility, and have health consequences; they are thus considered pollutants. Operational control Saudi Arabian Oil Company in-Kingdom wholly-owned operated assets, SASREF, Motiva, ARLANXEO, Aramco Trading Company (ATC), Aramco Services Company (ASC), Aramco Overseas Company B.V. (AOC) and Saudi Aramco Asia Company Ltd. (SAAC). Original concession See definition to “Concession.” Paris Agreement The United Nations Framework Convention on Climate Change Paris Agreement. PIF Public Investment Fund of Saudi Arabia. Production costs The sum of operating costs and depreciation, reflecting both the erosion of asset value over time on an accounting basis and the cost of operating the business. R&D Research and development.",97,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +286,aramco.pdf,"Production costs The sum of operating costs and depreciation, reflecting both the erosion of asset value over time on an accounting basis and the cost of operating the business. R&D Research and development. Reserves Those quantities of liquids and gas, which by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible — from a given date forward, from known reservoirs, and under existing economic conditions, operating methods and government regulations — prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time. Reliability Total products volume shipped/delivered within 24 hours of the scheduled time, divided by the total products volume committed. Any delays caused by factors that are under the company’s control (e.g., terminal, pipeline, stabilization, or production) negatively affect the score, whereas delays caused by conditions that are beyond the company’s control, such as adverse weather, are not considered.",97,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +287,aramco.pdf,"A score of less than 100% indicates there were issues that negatively impacted reliability. SABIC Saudi Basic Industries Corporation. SASREF Saudi Aramco Jubail Refinery Company, a subsidiary of Aramco, formerly known as Saudi Aramco Shell Refinery Company. Saudi Aramco/Aramco Saudi Arabian Oil Company, together with its consolidated subsidiaries, and where the context requires, its joint operations, joint ventures and associates. Any reference to “us,” “we,” or “our” refers to Aramco except where otherwise stated. Unless otherwise stated, the text does not distinguish between the activities and operations of the company and those of its subsidiaries. Saudi Green Initiative (SGI) A national initiative for the Kingdom that strives to increase the Kingdom’s reliance on clean energy, offset the impact of fossil fuels and combat climate change. Scope 1 GHG emissions Direct emissions, which include GHG emissions from on-site fuel combustion, flaring, venting and fugitive emissions. Scope 2 GHG emissions Indirect emissions, which account for GHG emissions from offsite power generation including electricity and steam. 9797",97,"[Guess]: Yes +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +288,aramco.pdf,"Scope 3 GHG emissions All indirect emissions (not included in Scope 2) that occur in the value chain, including both upstream and downstream emissions. Senior executives/Management Committee The members of the senior management of Aramco holding the title of president (CEO) or senior vice president. Senior management The senior management and other officers of Aramco who, while subordinate to the senior executives, are still involved in the management of Aramco and participate in driving its strategies, decisions or operations. Shareholder Any holder of shares. Shareek program A cooperative government program that is designed to provide support via various pillars, including financial, monetary, operational and regulatory cooperation and asset investment, striving to enhance the development and resilience of the Saudi economy by increasing the gross domestic product, providing job opportunities, diversifying the economy and strengthening cooperation between public and private sectors. SME Small- and medium-enterprise SOCPA Saudi Organization for Chartered and Professional Accountants. S-Oil S-Oil Corporation. SSC Sustainability Steering Committee.",98,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +289,aramco.pdf,"SME Small- and medium-enterprise SOCPA Saudi Organization for Chartered and Professional Accountants. S-Oil S-Oil Corporation. SSC Sustainability Steering Committee. Subsidiaries Except with respect to financial information, the term subsidiaries means the companies that Aramco controls through its ability to influence the actions or decisions of another person through, whether directly or indirectly, alone or with a relative or affiliate (i) holding 30% or more of the voting rights in a company, or (ii) having the right to appoint 30% or more of the Board of a company. With respect to financial information, the term subsidiaries is defined by IFRS, meaning entities over which the company has control. Tier 1 process safety event An unplanned or uncontrolled release of any material, including non-toxic and non-flammable materials, from a process that results in one or more of the consequences listed in API Recommended Practice-754. Total recordable case (TRC) frequency Sum of recordable cases that occurred in the workplace per 200,000 work hours. UN SDGs United Nations Sustainable Development Goals. U.S./United States/USA United States of America.",98,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +290,aramco.pdf,"UN SDGs United Nations Sustainable Development Goals. U.S./United States/USA United States of America. Zero carbon Applies only to energy sources, processes, products, projects, etc., that emit zero GHG emissions. Aramco Sustainability Report 2022 98 Abbreviations, terms and glossary",98,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +291,aramco.pdf,"This Sustainability Report (the “Report”) may contain certain forward-looking statements with respect to Aramco’s financial position, results of operations and business and certain of Aramco’s plans, intentions, expectations, assumptions, goals and beliefs regarding such items. These statements include all matters that are not historical fact and generally, but not always, may be identified by the use of words such as “believes,” ��expects,” “are expected to,” “anticipates,” “intends,” “estimates,” “should,” “strive,” “will,” “shall,” “may,” “is likely to,” “plans,” “targets,” “goals,” “outlook” or similar expressions, including variations and the negatives thereof or comparable terminology. These statements include, among other things, statements about expectations in connection with the company’s ESG initiatives, including the targets and goals set forth in this Report. The company cautions that its forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Our ability to reach our goals, including our goals related to ESG and minimizing our environmental impact,",99,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +292,aramco.pdf,"Our ability to reach our goals, including our goals related to ESG and minimizing our environmental impact, safe operations and people development and growing societal value within the Kingdom could be affected by factors including, but not limited to: the inability to successfully meet the targets set forth in this Report, including through the management GHG emissions; the inability to meet our plastic waste and water management targets or successfully protect biodiversity; the inability to develop and deploy technology solutions to allow us to deliver the benefits of oil and gas hydrocarbons for future generations; the success of our partnerships with local and global organizations; the inability to ensure a healthy and safe environment for employees; natural disasters and public health pandemics or epidemics (such as COVID-19); competition in the industries in which Aramco operates; conditions affecting the transportation of products; operational risk and hazards common in the oil and gas, refining and petrochemicals industries, including with respect to the iktva program; the cyclical nature of the oil and gas, refining and petrochemicals industries; weather conditions; political and social instability and unrest and actual or potential armed conflicts; managing Aramco’s growth; risks in connection with projects under development and recent and future acquisitions and joint ventures,",99,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +293,aramco.pdf,"weather conditions; political and social instability and unrest and actual or potential armed conflicts; managing Aramco’s growth; risks in connection with projects under development and recent and future acquisitions and joint ventures, including with respect to SABIC; managing Aramco’s subsidiaries, joint operations, joint ventures, associates and entities in which it holds a minority interest, including their performance with respect to ESG initiatives; risks related to operating in a regulated industry and changes to oil, gas, environmental or other regulations that impact the industries in which Aramco operates; and international trade litigation, disputes or agreements. In light of these and other risks, uncertainties and assumptions, the forward-looking events described in this Report may not occur. The forward-looking statements speak only as of the date of this Report. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the cautionary statements referred to above and contained elsewhere in this Report. Except where noted, the information covered in this Report highlights the company’s performance and initiatives in fiscal year 2022.",99,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +294,aramco.pdf,"Except where noted, the information covered in this Report highlights the company’s performance and initiatives in fiscal year 2022. The inclusion of information in this Report should not be construed as a characterization regarding the materiality or financial impact of that information. Sections of this Report have been prepared with reference to and guidance from various reporting frameworks, standards and guidelines, as outlined at the start of this report. The Company’s application of the various frameworks, standards and guidelines is based on its interpretation and judgment. This Report may contain links to or information from other internet sites. Such links and information are not endorsements of any products or services in such sites, and no information in such site has been endorsed or approved by Aramco. 9999 Forward-looking statements",99,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +295,aramco.pdf,Aramco Sustainability Report 2022 100,100,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +296,aramco.pdf,"This document should be read together with Aramco’s public reporting, including our Annual Report, our website and our policies. Contact us We hope you find this Report engaging and informative, and we continue to welcome your input and views: We are also active on the below social media platforms, so please follow us to learn more about Aramco and our sustainability journey: Social media This Report is printed on paper certified in accordance with the FSC® (Forest Stewardship Council®) and is recyclable and acid-free. sustainability@aramco.com linkedin.com/company/aramco@aramco Please see our 2022 Annual Report at www.aramco.com/en/investors/reports- and-presentations Please visit www.aramco.com/sustainability for more information on our approach to sustainability, our basis of preparation and our independent assurance statements for 2019, 2020, 2021 and 2022 Please visit www.aramco.com for more information",101,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +297,aramco.pdf,aramco.com,102,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 1.0 " +0,audi.pdf,Combined Annual and Sustainability Report 2024,1,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +1,audi.pdf,"FinanceStrategy & Company ESG Appendix 2 Audi Report 2024 Cover: AUDI AG | Photo: AUDI AG Our 2024 annual and sustainability report is being published at a time when Germany and Europe are viewing their international competitiveness with a degree of apprehension. As an economic driver and one of the largest employers, the automotive industry is particularly in the spotlight – in terms of responsibility, too. The Audi Group’s business performance in the past year also reflects the difficult overall situation. Although I share this critical assessment, there is also good news. The entry of new competitors into the automotive market shows how attractive it remains to build cars. The value customers place on premium quality and design is undiminshed. At the same time, the innovation potential of the relatively new technology of elec- tric mobility is far from exhausted – especially when it comes to efficiency. The development of in-car digital features and innova- tive software also offers us completely new opportunities. With its brand core “Vorsprung durch Technik,” Audi is ready to embrace these opportunities for itself and its customers. We already started on this journey in 2024, when we successfully launched our model initiative with the backing of an impressive team performance.",2,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +2,audi.pdf,"We already started on this journey in 2024, when we successfully launched our model initiative with the backing of an impressive team performance. The total number of new models will exceed 20 by the end of 2025 – half of which will be electric. The Audi Q6 e-tron and Audi A6 e-tron mark milestones in the efficiency of electric powertrains. In addition, the new future-proof software architecture will bring digital features and connectivity in our models to the next level. With the Audi A5, A6 and Q5 models, we launched a completely new generation of combustion engine vehi- cles and plug-in hybrids in parallel. We have therefore positioned ourselves robustly and flexibly for the transition to an all-electric product range. Apart from rejuvenating our portfolio, we also embarked on a fundamental renewal program in the company. With stream- lined processes and faster decisions, we are picking up the pace in the face of intensifying global competition. We are fundamentally changing the way we develop cars, because the cars of the future need different structures than we had in the past.",2,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +3,audi.pdf,"We are fundamentally changing the way we develop cars, because the cars of the future need different structures than we had in the past. The reorganization of our Technical Development and our Dear Readers, product lines as of January 1, 2025, represents a paradigm shift toward software-centered development, in other words the software-defined vehicle, and therefore the launching pad for wide-reaching changes throughout the company. We are also upping the pace through strategic cooperations and new forms of collaboration. With the launch of the new AUDI sister brand for electric models in China, we were a pioneer again in the Chinese market and have taken a bold and progressive step together with our joint venture partner SAIC toward reaching tech-savvy target groups. In addition, at the end of 2024 we began producing electric models specifically for the Chinese market at our new plant in Changchun together with partner First Automo- tive Works (FAW). And to help us to get ahead faster in the area of software-defined vehicles, the Volkswagen Group founded a joint venture with US electric car manufacturer Rivian. The cooperation – in which Audi is playing a leading role – will help Audi gather speed in this competition-defining discipline.",2,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +4,audi.pdf,"The cooperation – in which Audi is playing a leading role – will help Audi gather speed in this competition-defining discipline. Together we will develop high-performance software archi- tectures quickly, efficiently and cost-effectively. All of these steps show that Audi has the right answers to the new realities. The entire team is shaping the future with a high degree of willingness to change. Our overriding goal in this respect is sustainable development. We take responsibility beyond our own sphere of action – for em- ployees and their families, for suppliers and partners and also for future generations and our home base in Germany as well as our international production locations. For me, our business performance in 2024 is therefore the result of major changes and our starting point toward a new era of strength. Above all, however, it motivates us to continue to accelerate our program of renewal. We will continue our model initiative in 2025 and, by the end of the year, will have the youngest portfolio in our competitive segment. With the courage to forge new paths and trust in our traditional strengths, we will continue to set technological standards.",2,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +5,audi.pdf,"With the courage to forge new paths and trust in our traditional strengths, we will continue to set technological standards. Sincerely, Gernot Döllner Chairman of the Board of Management of AUDI AG Audi RS e-tron GT: electric power consumption (combined): 21.1–18.4 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A.",2,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +6,audi.pdf,"FinanceStrategy & Company ESG Appendix 3 Audi Report 2024 T he combined annual and sustainability report of the Audi Group (hereinafter referred to as the Audi Report) provides information on material business and sus- tainability activities in 2024. The Audi Report is available in PDF format on the official Audi website at audi.com and in the Audi MediaCenter; it contains links to further online information. In addition, Audi provides a Quarterly Update and Fact Pack to download from the website at audi.com. These documents contain key financial figures. The information and data for the Audi Report 2024 were compiled to the best of the company’s knowledge and belief and are free from material errors. In those cases where insufficient data was available, a corresponding explanation of omission was included in accordance with GRI Standards. The information in the report refers to the Audi Group.¹ If the report refers to individual companies, sites or brands only, this is noted accordingly. Unless indicated otherwise, key figures for em- ployees are as of the end of the respective year. All EUR figures are rounded off, which may lead to minor deviations when added up. The report is available in German and English. In the event of any deviations between the two versions, the German document shall prevail.",3,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +7,audi.pdf,"All EUR figures are rounded off, which may lead to minor deviations when added up. The report is available in German and English. In the event of any deviations between the two versions, the German document shall prevail. Editorial deadline: February 20, 2025 Publication: March 18, 2025 Publication date of last report: March 19, 2024 Report cycle: annual ESG reporting standard Since 2024, the Corporate Sustainability Reporting Directive (CSRD) has governed the sustainability reporting requirements for companies in the EU.² Companies now have to provide a detailed report of non-financial information on environmental, social and governance issues in their management reports. As with financial reporting, sustainability reports should focus on meaningful information and topics that are relevant and assess- able for stakeholders.³ This limitation is referred to as materiality. The Sustainability Reporting standard of the Global Reporting Initiative (GRI) also imposes this requirement on companies’ ESG reporting. Audi voluntarily publishes an annual and sustainability report that combines financial and ESG aspects. The Audi Report is based on the internationally established GRI standard and also takes up aspects of the European CSRD, including in particular the required key figures, and addresses the material topics specified by the GRI and CSRD.",3,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +8,audi.pdf,"Restatement of information The materiality analysis that AUDI AG conducted in 2024 was the first to be carried out in accordance with the CSRD guide- lines. This approach also meets the GRI Standards for materiality analyses. In addition, selected sustainability key figures in the Audi Report 2024 were reported in accordance with CSRD requirements for the first time. If similar key figures were already reported in previous years for which the basis for calculation or re- porting scope has changed as a result of the new requirements, this is indicated accordingly with a footnote. No comparative figures are provided for key figures recorded for the first time in 2024. Auditor’s reports on ESG reporting The Audi Group reports on the period from January 1, 2024, to December 31, 2024, in accordance with the GRI Standards. The information in this report was chosen on the basis of the materiality analysis performed in 2024.",3,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +9,audi.pdf,"The information in this report was chosen on the basis of the materiality analysis performed in 2024. For the Content Index – Essentials Service, GRI Services reviewed that the GRI content in- dex has been presented in a way consistent with the requirements for reporting in accordance with the GRI Standards, and that the information in the index is clearly presented and accessible to the stakeholders.³ The German version of the Audi Report was used for this review and awarded the GRI quality seal. In addition, Audi commissioned an audit of selected sus- tainability key figures in the Audi Report 2024. The audited key figures are identified by a red check mark ( ). The selected sustainability key figures for the reporting period from January 1 to December 31, 2024, were subjected to a limited assurance engagement. Contacts for the Audi Report Robert Schwarzl Head of Financial Communication/Analytics, Investor Relations AUDI AG Email: ir@audi.de Website: audi.com/investor-relations ¹ The Audi Group is equivalent to the Brand Group Progressive with the brands Audi, Bentley, Lamborghini and Ducati. The terms “Audi Group” and “Brand Group Progressive” are used synonymously below. Material consolidated companies can be found in the Audi Fact Pack.",3,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +10,audi.pdf,"The terms “Audi Group” and “Brand Group Progressive” are used synonymously below. Material consolidated companies can be found in the Audi Fact Pack. ² Only certain corporations and commercial partnerships where all partners have limited liability are affected by the reporting obligation. The requirements will initially apply to a limited circle of companies for fiscal years commencing from January 1, 2024, and will then be gradually extended. The CSRD had not yet been transposed into national law in Germany by the editorial deadline. The Audi Group nevertheless reports voluntarily on ESG topics. It is likely to remain exempt from any reporting obligation in the future too because it is covered by the reporting obligations of the Volkswagen Group as its parent company. ³ Audi regards material stakeholder groups as internal and external groups of individuals that are affected directly or indirectly by the company’s business activities. The selection of the respective stakeholders is fundamentally based on their expertise and their ability to influence Audi. Audi differentiates the stakeholders according to different groups: customers, analysts and investors, press and media, business partners, employees, neighbors and local residents, politics and associations as well as employees’ organizations, science and sustainability experts as well as non-governmental organizations (NGOs) and other groups.",3,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +11,audi.pdf,"The basis for determining and selecting stakeholders is the Stakeholder Engagement Standard AccountAbility 1000 (AA1000SES) and its associated principles of inclusivity, materiality and responsiveness. About this report GRI 2-2, 2-3, 2-4, 2-5",3,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +12,audi.pdf,"FinanceStrategy & Company ESG Appendix 4 Audi Report 2024 Strategy & Company 06 Brief portrait Plants, production figures and models 2024: key facts about the Brand Group Progressive 10 Audi on the offensive With the Audi Agenda, the Board of Management team has taken important steps to ensure the company’s success into the future. New models, technolo- gies and partnerships demonstrate the program’s initial successes in 2024 28 Brand Group Progressive Strategies, new products and successes: the highlights of the Bentley, Lamborghini and Ducati brands from 2024 Finance 33 Key figures at a glance Revenue, ROS and cash flow: financial highlights in 2024 and forecast for the Brand Group Progressive for 2025 40 Financial situation Analysis of the financial performance of the Audi Group in the 2024 fiscal year 48 EU taxonomy Audi publishes a voluntary report according to the classification system for ecologically sustainable economic activities: the most important results and activities Content Audi Report 2024 Combined Annual and Sustainability Report Audi A6 Avant e-tron: electric power consumption (combined): 17.5–14.4 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A.",4,"[Guess]: No +[Confidence]: 0.9 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +13,audi.pdf,"5–14.4 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. Top 4 online topics Recycling: Audi is increasingly rely- ing on the circular economy in the early development phase audi.com Road safety: A visit to the Audi experts for active safety functions audi.com Sustainable mobility: Felix Neureuther and Rüdiger Recknagel in interview audi.com Audi Genuine Exchange Parts: Recycling parts with the aid of indus- trial remanufacturing audi.com ESG Appendix 61 Materiality analysis 15 topics show what is important to Audi and its stakeholders and what impact the company has on the environment and society 66 Environmental Decarbonization, circular economy, reduction in environmental pollution: how Audi is tackling material environmental issues 108 Social How does Audi meet its responsibility in the supply chain, what defines its corporate culture and what priority does vehicle safety have?",4,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +14,audi.pdf,"reduction in environmental pollution: how Audi is tackling material environmental issues 108 Social How does Audi meet its responsibility in the supply chain, what defines its corporate culture and what priority does vehicle safety have? Insights into material topics in the field of social issues 142 Governance How Audi is ensuring its sustainable business development and governance and strengthening compliance and integrity 160 UN Global Compact and the UN Sustainable Development Goals (SDGs) 161 Consumption and emission figures 163 Auditor’s report 165 GRI index 180 Publication details Photos: AUDI AG",4,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +15,audi.pdf,FinanceStrategy & Company ESG Appendix 5 Audi R eport 2024 Audi SQ6 e-tron: electric power consumption (combined): 18.6–17.2 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. Photo: AUDI AG Strategy & Company 06 // Brief portrait 10 // Audi on the offensive 28 // Brand Group Progressive,5,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +16,audi.pdf,"Overview of deliveries to customers 2024² 1,671,218 (1,895,240) 10,643 (13,560) 10,687 (10,112) 54,495 (58,224) 6 Audi R eport 2024 FinanceStrategy & Company ESG Appendix Illustration: C3 Visual Lab T he Brand Group Progressive¹ with the Audi, Bentley, Lamborghini and Ducati brands stands for outstanding per- formance, pioneering technologies, fascinating design and powerful emotions. With vehicles from the premium, luxury and super sports segments, the Audi Group has been making individual mobility a unique experience for decades. Always with the focus on customer satisfaction, premium quality as well as ecological, social and eco- nomic sustainability. The Audi Group’s business model covers the development, production and selling of vehicles and the associated services. The Brand Group Progressive¹ is managed by AUDI AG. As of December 31, 2024, 88,604 employees were working for the Audi Group all over the world, 56,428 of them in Germany. The head office of the Audi Group is located in Ingolstadt.",6,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +17,audi.pdf,"The head office of the Audi Group is located in Ingolstadt. With its sales partners, the Brand Group Progressive¹ is present in more than 100 markets around the world and operated at 22 sites³ in 13 countries in 2024 with its production partners. The Audi Group worldwide: active in more than 100 markets Brief portrait Overview of sites for 2024 Overview of deliveries to customers 2024² ¹ The Brand Group Progressive describes the Audi Group with the brands Audi, Bentley, Lamborghini and Ducati. The terms “Audi Group” and “Brand Group Progressive” are used synonymously below. Material consolidated companies can be found in the Audi Fact Pack. ² The figures for fuel/electric power consumption and CO₂ emissions: see pages 161–162. The allroad, PHEV and CNG (g-tron) models are not declared specifically. ³ Sites as of December 31, 2024. The production site in Map Yang Phon (Ducati Motor (Thailand) Co., Ltd.) is a new addition in the reporting period. The pro- duction site in Amphur Pluakdaeng is no longer included.",6,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +18,audi.pdf,"is a new addition in the reporting period. The pro- duction site in Amphur Pluakdaeng is no longer included. GRI 2-1, GRI 2-6 22 production sites 13 countries",6,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +19,audi.pdf,"Crewe Brussels⁴ Neckarsulm Zwickau Ingolstadt Bratislava Győr Sant’Agata Bolognese Bologna Martorell ⁴ Pr oduction at the Brussel plant was discontinued at the end of February 2025. 7 Audi R eport 2024 FinanceStrategy & Company ESG Appendix Europe 930,302 49,857 Cars produced: Motorcycles produced: Illustration: C3 Visual Lab Key Vehicles produced in 2024 0 to 10,000 10,001 to 50,000 50,001 to 150,000 150,001 to 450,000 450,001 to 700,000 161,985 Győr, Hungary, Audi Hungaria Zrt. Q3 SUV, RS Q3 SUV Q3 Sportback, RS Q3 Sportback 103,070 Bratislava, Slovakia VOLKSWAGEN SLOVAKIA, a.s. Q7 SUV , SQ7 SUV Q8 SUV, SQ8 SUV, RS Q8 SUV 68,014 Martorell, Spain, SEAT, S.A.",7,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +20,audi.pdf,"Q7 SUV , SQ7 SUV Q8 SUV, SQ8 SUV, RS Q8 SUV 68,014 Martorell, Spain, SEAT, S.A. A1 allstreet, A1 Sportback RS 3 Sedan 49,857 Bologna, Italy Ducati Motor Holding S.p.A. Deser tX, Diavel, Hypermotard, Monster, Multistrada, Panigale (Superbike), Scrambler, Str eetfighter, SuperSport 12,200 Sant’Agata Bolognese, Italy Automobili Lamborghini S.p.A. Hur acán Coupé, Huracán Spyder Revuelto Coupé Urus 11,224 Crewe, United Kingdom Bentley Motors Ltd. Benta yga Continental GT, Continental GTC Flying Spur 15,212 Brussels, Belgium AUDI BRUSSELS S.A./N.V.⁴ Q4 SUV e-tron Q8 SUV e-tron, SQ8 SUV e-tron Q8 Sportback e-tron, SQ8 Sportback e-tron 135,307 Neckarsulm, Germany AUDI AG,",7,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +21,audi.pdf,"SQ8 SUV e-tron Q8 Sportback e-tron, SQ8 Sportback e-tron 135,307 Neckarsulm, Germany AUDI AG, Audi Sport GmbH A4 Sedan A5 A vant, S5 Avant A5 Cabriolet, S5 Cabriolet A5 Sedan, S5 Sedan A6 allroad quattro A6 Avant, S6 Avant, RS 6 Avant A6 Sedan, S6 Sedan A7 Sportback, S7 Sportback, RS 7 Sportback A8, S8, A8 L , S8 L e-tron GT quattro, S e-tron GT, RS e-tron GT R8 Coupé, R8 Spyder 86,507 Zwickau, Germany Volkswagen AG Q4 SUV e-tron, Q4 Sportback e-tron 336,783 Ingolstadt, Germany AUDI AG A3 allstreet A3 Sedan, S3 Sedan, RS 3 Sedan A3 Spor tback, S3 Sportback, RS 3 Sportback A4 allr oad quattro A4 Avant, S4 Avant,",7,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +22,audi.pdf,"RS 3 Sedan A3 Spor tback, S3 Sportback, RS 3 Sportback A4 allr oad quattro A4 Avant, S4 Avant, RS 4 Avant A4 Sedan, S4 Sedan A5 Coupé, S5 Coupé, RS 5 Coupé A5 Sportback, S5 Sportback, RS 5 Sportback A6 A vant e-tron, S6 Avant e-tron Q2 SUV, SQ2 SUV Q6 SUV e-tron, SQ6 SUV e-tron",7,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 " +23,audi.pdf,"Ningbo Map Yang Phon Chhatrapati Sambhajinagar Qingdao Anting Foshan Tianjin Changchun 8 Audi Report 2024 FinanceStrategy & Company ESG Appendix Asia 615,853 4,481 Cars produced: Motorcycles produced: Changchun, China FAW-Volkswagen Automotive Co., Ltd. A4 L Sedan A6 L Sedan Q5 L SUV Q5 L Sportback Tianjin, China FAW-Volkswagen Automotive Co., Ltd. Q3 SUV Q3 Sportback Qingdao, China FAW-Volkswagen Automotive Co., Ltd. A3 L Sedan A3 Sportback Foshan, China FAW-Volkswagen Automotive Co., Ltd. Q2 L SUV Q4 SUV e-tron Anting, China SAIC Volkswagen Automotive Co., Ltd. A7 L Sedan Q5 e-tron Ningbo, China SAIC Volkswagen Automotive Co., Ltd.",8,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +24,audi.pdf,"A7 L Sedan Q5 e-tron Ningbo, China SAIC Volkswagen Automotive Co., Ltd. Q6 7,317 Chhatrapati Sambhajinagar, India ŠKODA AUTO Volkswagen India Private Limited A4 Sedan A6 Sedan Q3 SUV, Q3 Sportback Q5 SUV Q7 SUV 4,481 Map Yang Phon, Thailand Ducati Motor (Thailand) Co., Ltd. DesertX, Diavel, Hypermotard, Monster, Multistrada, Panigale (Superbike), Scrambler, Streetfighter, SuperSport China 608,536 Illustration: C3 Visual Lab Key Vehicles produced in 2024 0 to 10,000 10,001 to 50,000 50,001 to 150,000 150,001 to 450,000 450,001 to 700,000",8,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +25,audi.pdf,"Manaus São José dos Pinhais Córdoba San José Chiapa 9 Audi Report 2024 FinanceStrategy & Company ESG Appendix ⁵ Production of semi-knocked-down (SKD) vehicles. With this procedure, the cars are completely assembled to start with. Then they are partially dismantled and transported as kits to São José dos Pinhais. Assembly is carried out in accordance with the technical and quality specifications of AUDI AG. ⁶ Production of completely knocked-down (CKD) vehicles. In this process, the motorcycles are disassembled into parts kits in their country of origin, Italy, and then assembled in Córdoba after being transported to Argentina. North and South America 145,997 1,618 Cars produced: Motorcycles produced: Illustration: C3 Visual Lab Key Vehicles produced in 2024 0 to 10,000 10,001 to 50,000 50,001 to 150,000 150,001 to 450,000 450,001 to 700,000 538 6 Córdoba, Argentinia Volkswagen Argentina S.A.",9,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +26,audi.pdf,"DesertX, Multistrada, Scrambler 1,080 Manaus, Brazil DUCATI DAFRA da Amazônia Indústria e Comércio de Motocicletas Ltda. DesertX, Diavel, Multistrada, Panigale (Superbike), Scrambler, Streetfighter 1,359 5 São José dos Pinhais, Brazil Audi do Brasil Indústria e Comércio de Veículos Ltda. Q3 SUV Q3 Sportback 144,638 San José Chiapa, Mexico Audi México S.A. de C.V. Q5 SUV, SQ5 SUV Q5 Sportback, SQ5 Sportback",9,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 " +27,audi.pdf,"10 Audi Report 2024 FinanceStrategy & Company ESG AppendixFinanceStrategy & Company ESG Appendix Audi on the offensive With a host of new models and innovative technologies unveiled in 2024, Audi clearly demonstrated what goal the company is pursuing: unique products and uncompromising quality. At the same time, Audi is undergoing the most significant transformation in its history. With the Audi Agenda, the Board of Management team has taken important steps to ensure the company’s success into the future. Following the program’s initial successes in 2024, the focus will be firmly on its implementation in 2025. Audi A6 Avant e-tron: electric power consumption (combined): 17.5–14.4 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. Photo: AUDI AG 10 Audi Report 2024",10,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +28,audi.pdf,"11 Audi Report 2024 FinanceStrategy & Company ESG AppendixFinanceStrategy & Company ESG Appendix E lectrifying elegance”⁴ was how the trade press described the new Audi A6 e-tron models, lauding them as “business class with the win- ning combination of high battery capacity and powerful charging performance.”⁵ For Audi, the unveiling of the new Audi A6 e-tron models in July 2024 represented another important milestone in its large-scale model initiative. They show what Audi stands for: emotional design, quality, sporty performance, driving dynamics and comfort as well as a digital customer experience. Audi Agenda: pressed ahead at speed Innovative and inspiring vehicles are one of the four pillars of the Audi Agenda. The transformation and strategy program launched by the Board of Management in 2023 supports the entire Audi team in tackling important issues in the short and long term: The Audi Agenda centers on products, technologies, the brand and the core markets of North America and China. “Audi is undergoing the largest transformation in its history,” says Audi CEO Gernot Döllner.",11,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +29,audi.pdf,"“Audi is undergoing the largest transformation in its history,” says Audi CEO Gernot Döllner. “With the Audi Agenda, we began this transformation in good time and are pressing ahead at speed with its imple- mentation.” Sustainability is also playing an increasingly important role in this context. “We want customers to experience this in our vehicles: with an electrified portfolio, efficient and high-performance drive systems, powerful batteries and practical charging performance.” Audi is also looking beyond the utilization phase. For example, the circularity of the materials used and the subsequent recyclability of vehicle parts are already being considered in the first vehicle projects as early as the development stage. Audi A6 e-tron sets new standards The new Audi A6 Sportback e-tron⁶ is a prime example of future Audi models. Its design not only highlights the progressive brand image, it also boosts efficiency. With its exceptionally low drag coefficient of 0.21, the Audi A6 Sportback e-tron⁶ is, in terms of aerodynamics, the best Audi of all time and currently the best vehicle in the Volkswagen Group. This also makes it incredibly efficient.",11,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +30,audi.pdf,"This also makes it incredibly efficient. With a range of up to 756 kilometers (WLTP), the Audi A6 Sportback e-tron performance¹ is the strongest model in its segment in this discipline. The Audi Agenda In the spotlight: product, technology, strong brand and the China and North America markets With the Audi Agenda, the company is focusing on what is important for customers: product, technology and brand. While that applies worldwide, the priorities for the core markets of Europe, China and North America differ. In Europe, the company wants to consolidate its established position among premium competitors. As regards China, Audi has positioned itself strongly with the partner companies SAIC and FAW, and is working with other partners on the ground to develop vehicles and functions specifically for customers locally. On the North American market, Audi wants to benefit in coming years from the numerous model launches and is currently looking into further localization options. The Audi Agenda serves as the roadmap here for the entire Audi team and addresses challenges in the short and long term. Specific work packages and responsibilities have been defined for each field of action.",11,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +31,audi.pdf,The Audi Agenda serves as the roadmap here for the entire Audi team and addresses challenges in the short and long term. Specific work packages and responsibilities have been defined for each field of action. And there are already signs of success: The world premiere of the Audi Q6 e-tron in March 2024 marked the start of the largest model initiative in the company’s history. ¹ Audi A6 Sportback e-tron performance: electric power consumption (combined): 15.9–14.0 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. ² Audi A6 Avant e-tron performance: electric power consumption (combined): 17.0–14.8 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. ³ Audi S6 Sportback e-tron: electric power consumption (combined): 16.7–15.7 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. ⁴ Source: auto-medienportal.net: Audi A6 e-tron: Electrifying elegance.,11,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +32,audi.pdf,"⁴ Source: auto-medienportal.net: Audi A6 e-tron: Electrifying elegance. (in German only) ⁵ Source: n-tv.de: Ultraefficient, ultrafast: On tour with the new Audi A6 e-tron – will it surprise? (in German only) ⁶ Audi A6 Sportback e-tron: electric power consumption (combined): 16.7–13.6 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. As the second model family based on the Premium Platform Electric (PPE), all variants of the Audi A6 e-tron draw on the familiar product strengths of the PPE in terms of performance, range, efficiency and charging: Audi A6 Sportback e-tron performance,¹ Audi A6 Avant e-tron performance² and Audi S6 Sportback e-tron³ (from right to left). Photo: AUDI AG",11,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +33,audi.pdf,"12 Audi Report 2024 FinanceStrategy & Company ESG AppendixFinanceStrategy & Company ESG Appendix This is also accounted for by the high-performance and highly efficient electric motors, a newly developed, lighter and especially powerful high-voltage battery, the improved ability to recuperate energy and the pow- erful charging performance. The sophisticated thermal management of the high-voltage battery, the 800-volt electrical system and its ecosystem ensure a charging performance suitable for everyday use. For example, the Audi A6 Sportback e-tron performance¹ only needs 10 minutes at a fast-charging terminal to generate a range of up to 310 kilometers (WLTP) with a maxi- mum charging capacity of 270 kW.⁸ In just 21 min- utes, the high-voltage battery can be charged from 10 to 80 percent.⁸ The media was quick to praise the Audi A6 Sportback e-tron,⁶ describing it as the “Bavarian Miles Master.”⁹ According to the trade press, the new model series sets “new standards”10 in terms of dynamic handling and comfort, too.",12,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +34,audi.pdf,"Following initial road tests, journal- ists praise the Audi A6 e-tron as “impressively good on bends”10 and are enthusiastic about its “incredible power”10 and excellent driving and noise quality.11 A precisely defined strategy for tuning the suspension has long since been part of the Audi DNA. In addition, the air suspension with controlled damping⁷ gives the vehicle a wide range between a high level of ride comfort and sporty handling. The new and efficient Audi A6 e-tron family thus shows its everyday and long-distance capability and its ability to handle confi- dently in all driving situations. It therefore appeals to many different customer segments. Gernot Döllner Chairman of the Board of Management of AUDI AG Audi is undergoing the most significant transformation in its history. With the Audi Agenda, we began this trans- formation in good time and are pressing ahead at speed with its implementation. * Audi A6 Avant e-tron performance: electric power consumption (combined): 16.3 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A.",12,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +35,audi.pdf,"* Audi A6 Avant e-tron performance: electric power consumption (combined): 16.3 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. ¹ Audi A6 Sportback e-tron performance: electric power consumption (combined): 15.9–14.0 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. ⁶ Audi A6 Sportback e-tron: electric power consumption (combined): 16.7–13.6 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. ⁷ This function can be configured optionally and is available for an extra charge. ⁸ Battery charging time and power can vary depending on various factors such as ambient and battery temperature, use of other country-specific plugs, use of the preconditioning function (e.g., remote-controlled air conditioning of the vehicle), power availability at the charging terminal, charge status and age of the battery. The charging power decreases as the charge status increases. Charging losses are included. ⁹ Source: autoflotte.de: Audi A6 Sportback e-tron: Bavarian Miles Master. (in German only) 10 Source: efahrer.com: Electric full-size class sets new standards.",12,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +36,audi.pdf,"⁹ Source: autoflotte.de: Audi A6 Sportback e-tron: Bavarian Miles Master. (in German only) 10 Source: efahrer.com: Electric full-size class sets new standards. (in German only) 11 Source: autozeitung.de: Hopes pinned on the A6 e-tron: Test drive summary for the Audi S6 Avant. (in German only) An innovation from Audi: the virtual exterior mirrors,⁷ here on the Audi A6 Avant e-tron performance.* Photos: AUDI AG",12,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +37,audi.pdf,"13 Audi Report 2024 FinanceStrategy & Company ESG AppendixFinanceStrategy & Company ESG Appendix new models are being presented by Audi in 2024 and 2025. There is still much to do until the new models start to impact volume and profit globally. The Performance Program 14 is all the more important in order to keep Audi on track financially. >20 Audi A6 Avant: fuel consumption (combined): 9.1–5.1 l/100 km; CO₂ emissions (combined): 206–133 g/km; CO₂ class: G–D. Economic development deteriorated further in the regions in 2024, especially in Germany. Additional challenges such as intensified competition and tighter legislation were a strain on the automotive industry. As a result, numerous car manufacturers and suppliers had to adjust their profit forecasts and introduce structural measures. At the same time, Audi launched the biggest model initiative in its history – an enormous task for the entire organi- zation. Despite this difficult environment, we man- aged to keep Audi on track and achieved a robust financial performance in 2024. The main steps in the coming years will include future-proofing Audi in the face of increased global competition.",13,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +38,audi.pdf,"The main steps in the coming years will include future-proofing Audi in the face of increased global competition. With the Audi Agenda, we have de- fined a clear plan and are setting about the right tasks. We are continuing to pursue our unprece- dented model initiative and focusing increasingly again on “Vorsprung durch Technik,” quality and design as our brand core. And we are realigning our business model in China together with our partners. All of this requires extensive financial resources. To free up these resources, we launched the Perfor- mance Program 14. The program establishes the foundation for necessary investments and secures our profitability. Since the program was launched in 2023, we have already been able to achieve sig- nificant progress. I am well aware, however, that further difficulties lie ahead and we must remain consistent in order to achieve our profitability targets in the long term. This is why we are driving the fundamental transfor- mation of Audi with full force: We are streamlining structures and processes and reducing complexity wherever we can. Together we will seize the oppor- tunity and embrace the necessary changes so we can take Audi to the top again.",13,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +39,audi.pdf,"Together we will seize the oppor- tunity and embrace the necessary changes so we can take Audi to the top again. Jürgen Rittersberger Member of the Board of Management of AUDI AG, Finance, Legal Affairs and IT Economic performance as the basis for future viability Photos: AUDI AG 13 Audi Report 2024",13,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +40,audi.pdf,"14 Audi Report 2024 FinanceStrategy & Company ESG AppendixFinanceStrategy & Company ESG Appendix Technical innovations in areas such as performance, charging and digitalization are thanks, among other rea- sons, to the new Premium Platform Electric (PPE). Devel- oped specifically for electric models, its architecture allows for use of a flat-shaped battery and therefore ideally fulfills requirements for an especially sporty design. A complete- ly new drive system and a new, powerful and modular high-voltage battery were developed for the PPE. The vehicle platform offers a great deal of flexibility so that both low-floor models, such as the Audi A6 e-tron, and high-floor models, such as the Audi Q6 e-tron, are possible in the midsize and full-size segments. The platform strategy enables Audi to offer innovative products and leverage synergies at the same time. This means that the company can focus to a greater extent on the product features that set Audi apart, including progressive design and premium handling characteristics. New electronics architecture creates rich digital customer experience In March 2024, the Audi Q6 e-tron was the first high-floor model based on the PPE to be unveiled by Audi.",14,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +41,audi.pdf,"New electronics architecture creates rich digital customer experience In March 2024, the Audi Q6 e-tron was the first high-floor model based on the PPE to be unveiled by Audi. The Audi A6 e-tron and Audi Q6 e-tron models not only share the same vehicle architecture, they also have the same electronics architecture (E³ 1.2). The models in the Audi Q6 family combine everyday usability, strong emotionality and driving pleasure thanks to sporty powertrains. Test winner: The Audi SQ6 SUV e-tron12 was awarded “German Car of the Year” in the New Energy Vehicle category in 2025. 12 Audi SQ6 e-tron: electric power consumption (combined): 18.6–17.2 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. Photos: AUDI AG",14,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +42,audi.pdf,"15 Audi Report 2024 FinanceStrategy & Company ESG AppendixFinanceStrategy & Company ESG Appendix This completely new architecture is scalable and used by several brands in the Volkswagen Group. The individual software components were customized by Audi for each specific model. The core elements of the new E³ 1.2 are five high-performance computers, which cover all vehicle functions – from the drive and assist systems to the info- tainment and convenience systems through to the safety systems and backend networking. All five computers are designed to accommodate future functional and system enhancements. In addition, the new electronics architecture is equipped for future over-the-air updates. Among other features, the E³ 1.2 offers a fully connected digital interior. For example, a learning intelligent voice assistant (Audi assistant13) in Audi A6 e-tron models can control a large number of vehicle functions, learn from the driver’s behavior and actions and make predictive sug- gestions adapted to the situation. The Audi assistant13 is augmented by the integrated ChatGPT function,14 which can read content while driving and allows interaction with the car in natural language.",15,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +43,audi.pdf,"The Audi assistant13 is augmented by the integrated ChatGPT function,14 which can read content while driving and allows interaction with the car in natural language. A further highlight is the new augmented reality head-up display.15 It gives drivers the impression that the elements displayed, such as naviga- tion instructions, are hovering up to 200 meters away and interacting directly with the environment. The displays can be understood quickly, without irritating or distracting the driver – a great help, especially in poor visual conditions. 13 This function is available optionally for an extra charge. Availability is dependent on vehicle model and model year. Part of Audi connect navigation & infotainment (IT3). Language availability is country-specific. For information on country and language availability, please contact an Audi Partner or visit the Audi configurator at www.audi.de (in German only). Further information on the Audi assistant at www.audi.de/technologie (in German only). 14 Part of Audi connect navigation & infotainment (IT3). Language availability is country-specific. For information on country and language availability, please contact an Audi Part- ner or visit the Audi configurator at www.audi.de (in German only). Further information on the Audi assistant at www.audi.de/technologie (in German only).",15,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 " +44,audi.pdf,"Further information on the Audi assistant at www.audi.de/technologie (in German only). ChatGPT is provided via Microsoft Azure® OpenAI Service. Microsoft, Azure and their logos are registered trademarks of Microsoft Corporation in the United States of America and/or other countries. The name “OpenAI” and the brand ChatGPT are the property of OpenAI. For technological reasons, the provision of incorrect information by AI systems cannot be completely ruled out. On matters relating to the vehicle, always consult the Owner’s Manual in case of doubt. 15 This function can be configured optionally and is available for an extra charge. Further information in the Audi configurator at www.audi.de (in German only). The MMI panoramic display featuring a curved design and OLED technology consists of the 11.9-inch Audi virtual cockpit and the 14.5-inch MMI touch display. Together with the 10.9-inch MMI front passenger display, it forms a visually well-defined digital stage. Photos: AUDI AG The front passenger benefits too, thanks to a separate display with privacy mode. They can enjoy entertainment content on the optional front passenger display during the journey, for example, they can watch movies or stream se- ries without distracting the driver.",15,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +45,audi.pdf,"They can enjoy entertainment content on the optional front passenger display during the journey, for example, they can watch movies or stream se- ries without distracting the driver. Thanks to the third-party store for apps, users can install many of their favorite apps directly in the car and use them on the vehicle display. It is also possible in part to interact with these apps via voice input. Customers can also order new vehicle functions, such as driver assist systems or sound functions, in the usual manner as part of the functions on demand offering. “The digital customer experience must be simple, intuitive and innovative – just like quattro drive,” says Gernot Döllner. “The foundation for this is high-end technology that offers customers maximum driving pleasure and comfort.” Being flexible counts: Attractive combustion engine models complement the BEV portfolio Audi customers can also experience the innovations in the area of digitalization and the new interior in combustion engine models. In addition to extending the all-electric portfolio, Audi is launching a new generation of models with efficient combustion engines. The Audi A5 family in the Sedan and Avant body styles were the first models to be presented in July 2024.",15,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +46,audi.pdf,"16 Audi Report 2024 FinanceStrategy & Company ESG AppendixFinanceStrategy & Company ESG Appendix Geopolitical uncertainties, turbulent financial markets and an unprecedented level of competition. The automo- tive industry is facing massive challenges. At Audi we are currently tackling what is probably the largest transfor- mation in the company’s history. And it is not just about new products and technologies, rather the consistent realignment of the entire organization. The goal and the direction are clear: if we want to successfully compete in the future, Audi needs to be faster and more effective. With this in mind, we have made important structural changes. Our focus is a streamlined organization with flat hierarchies and clear responsibilities, fast decision- making processes and competitive cost structures. The transformation of Technical Development and the product lines toward a matrix organization acted as the launching pad for reorganizing all of the divisions. 2025 will then focus entirely on its implementation. Topics such as electric mobility, digitalization and sus- tainability are also fundamentally changing our working world and entire professions. We have established clear target visions for transformation of the workforce based on our corporate strategy, which precisely define the direction we want to take.",16,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +47,audi.pdf,"We have established clear target visions for transformation of the workforce based on our corporate strategy, which precisely define the direction we want to take. They highlight the task areas that will cease to apply and also the areas where we want to increase personnel and build expertise. With this in mind we will develop new key competences and invest strategically in training and development for our employees – around EUR 400 million in 2022, 2023 and 2024 alone. We know that as a company we can only continue to evolve if the people who work for us join us on this path. Our corporate values – trust, responsibility, courage and enthusiasm – guide us on this path while the extended job security up until the end of 2033 provides sound prospects. I am aware that major challenges lie ahead for the entire Audi team, which will involve significant changes for many employees. The Audi spirit is paramount for me in this respect. To ensure a successful transformation, it is crucial that all employees are committed and identify with Audi. We will overcome the challenges ahead and achieve our goals together within the Audi team.",16,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +48,audi.pdf,"To ensure a successful transformation, it is crucial that all employees are committed and identify with Audi. We will overcome the challenges ahead and achieve our goals together within the Audi team. Xavier Ros Member of the Board of Management of AUDI AG, Human Resources We are driving the transformation within the Audi team were invested by Audi in employee training and development in 2022, 2023 and 2024 EUR million 400 Photos: AUDI AG 16 Audi Report 2024",16,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +49,audi.pdf,"17 Audi Report 2024 FinanceStrategy & Company ESG AppendixFinanceStrategy & Company ESG Appendix Audi is taking a further step toward electrifying its combustion engine models. With the Premium Platform Combustion (PPC), MHEV plus technology is being used for the first time in the Audi A5 family. It offers customers partially electric driving with a powertrain generator. The new Audi Q516 and Audi SQ517 models impress with their dynamic design and modern technology. All available drive systems use the MHEV plus mild-hybrid system. They dazzled the trade press with their “impressive per- formance and optimized handling.”18 The new Audi Q5 models made their debut later in the year, while the new Audi A6 Avant19 is set to premiere in March 2025. The new combustion engine models are based on the Premi- um Platform Combustion (PPC). What sets them apart is the exceptional driving pleasure and a technologically advanced drive system. The partly electrified, enhanced mild hybrid powertrains improve responsiveness and enable partially electric driving, for example, when maneuvering into a parking space. This reduces CO₂ emissions. Plug-in hybrids will be added to the Audi A5 and Audi Q5 family in 2025.",17,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +50,audi.pdf,"This reduces CO₂ emissions. Plug-in hybrids will be added to the Audi A5 and Audi Q5 family in 2025. The Audi A3, Audi Q7 and Audi Q8 were already presented as plug-in hybrids in 2024. Audi will continue to expand the fully electric model range in parallel. The company already had 10 BEVs (battery electric vehicles) model in its portfolio in the year under review, six of which were presented in 2024 alone. As well as the Audi A6 e-tron and Audi Q6 e-tron family, these include new Audi e-tron GT models. CEO Döllner confirms: “We are continuing to work consistently on electrifying our model range.” He adds: “By the end of 2025, we will have tackled the largest model initiative in the history of Audi and then have the youngest portfolio in our competitive segment.” 16 Audi Q5 SUV: fuel consumption (combined): 8.8–5.9 l/100 km; CO₂ emissions (combined): 200–148 g/km; CO₂ class: G–E.",17,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +51,audi.pdf,17 Audi SQ5 SUV TFSI: fuel consumption (combined): 8.8–8.1 l/100 km; CO₂ emissions (combined): 200–185 g/km; CO₂ class: G. 18 Source: motor1.com: Audi A5 and S5 (2025) put to the test: Does it really have what it takes to be a bestseller? (in German only) 19 Audi A6 Avant: fuel consumption (combined): 8.0–5.0 l/100 km; CO₂ emissions (combined): 181–130 g/km; CO₂ class: G–D. Photo: AUDI AG,17,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +52,audi.pdf,"18 Audi Report 2024 FinanceStrategy & Company ESG AppendixFinanceStrategy & Company ESG Appendix 8 Battery charging time and power can vary depending on various factors such as ambient and battery temperature, use of other country-specific plugs, use of the preconditioning function (e.g., remote-controlled air conditioning of the vehicle), power availability at the charging terminal, charge status and age of the battery. The charging power decreases as the charge status increases. Charging losses are included. 20 Source: topgearitalia.com: Audi RS e-tron GT performance test – a grand tourer with flair. (in Italian only) 21 Audi RS e-tron GT performance: electric power consumption (combined): 20.8–18.7 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 22 Audi RS e-tron GT: electric power consumption (combined): 22.1–18.4 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 23 Audi RS Q e-tron: This vehicle is the Dakar Rally race car; it is not available for purchase. At the same time, the company is facing increasingly volatile customer demand for BEV models and intense competition in many markets.",18,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +53,audi.pdf,"At the same time, the company is facing increasingly volatile customer demand for BEV models and intense competition in many markets. As further electric models are introduced, the company is anticipating that BEV models will make up an additional portion of vehicle sales. Nonetheless, Audi is still in a transition period and therefore remains flexible in the medium term as regards its powertrain strategy. This means that the response to different customer require- ments and regulatory constraints will vary on a regional basis and that production of the last combustion engine models will be managed in line with global market trends. “We continue to offer our customers highly competitive combustion engine, plug-in hybrid and electric models,” Döllner summarizes. All-electric: the product portfolio of the future The company laid important groundwork for future Audi models in 2024. The focal point will be all-electric low- floor and high-floor models in the core Audi midsize and full-size segments. In addition, Audi plans to launch iconic models on the market – cars that drive “Vorsprung durch Technik” to new highs, are unique in their segment and will also remain desirable for a long time.",18,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +54,audi.pdf,"In addition, Audi plans to launch iconic models on the market – cars that drive “Vorsprung durch Technik” to new highs, are unique in their segment and will also remain desirable for a long time. As was the case in the past with the Audi R8, the Audi TT or currently with the Audi RS e-tron GT.22 The next icon will be an electric entry- level model in the A segment with impressive efficiency. “Regardless of the model, emotional design, quality, sporty performance, driving dynamics and comfort as well as a dig- ital customer experience – this is what sets an Audi apart.” Brand core: technology that impresses Audi needs a strong brand in addition to an attractive prod- uct portfolio. For Audi, “Vorsprung durch Technik” means challenging the status quo with inspiring technologies. This can also be seen in the world of motorsport: Audi won the legendary Dakar Rally with the Audi RS Q e-tron23 in early 2024, thus making motorsport history. The racing car combines an electric powertrain with an energy converter system based on the TFSI engine and a generator. It became the first car to win the legendary desert race with this type of drive system.",18,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +55,audi.pdf,"The racing car combines an electric powertrain with an energy converter system based on the TFSI engine and a generator. It became the first car to win the legendary desert race with this type of drive system. When Audi joins the top tier of motorsport in 2026, it will face its most challenging task yet in terms of the combination of sustainability, innovation and maximum performance. Formula 1 is a rapidly growing racing series, which offers significant potential for the brand owing to “Monstrous performance and velvety-smooth driving experience. Two seemingly irreconcilable souls co-exist. In short: the pure essence of the Gran Turismo.”20 This was the trade press con- clusion after test driving the Audi RS e-tron GT performance.21 With this model, Audi is offering its customers a progressive sports car and, at the same time, a four-seater touring sedan with long-distance capability thanks to a charging capacity of 320 kW.8 Photo: AUDI AG Gernot Döllner Chairman of the Board of Management of AUDI AG We continue to offer our customers highly competitive combustion engine, plug-in hybrid and electric models.",18,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +56,audi.pdf,"19 Audi Report 2024 FinanceStrategy & Company ESG AppendixFinanceStrategy & Company ESG Appendix For Audi, 2024 marked the beginning of a transition period – this is also reflected in our delivery figures. That said, I remain firmly convinced that we will achieve our long-term goals. We are consistently rejuvenating our product portfolio – with more than 20 new models in 2024 and 2025. By focusing on the three key aspects of electric cars, plug-in hybrids and combustion engine models, we are in a strong posi- tion for the future and can offer our customers a wide range of premium vehicles globally. Our global dealerships play a key role in this forward- looking approach. They are the backbone of our sales and distribution and are critical for market penetration in more than 110 countries. Our dealerships are the key interface to our customers, whether in relation to sales and consultancy services or after sales services such as maintenance and repairs. The entire automotive industry is in the midst of an extensive transformation driven by technological prog- ress and changing customer preferences. Digitalization will continue to significantly impact the dealer net- work, with increasingly more digital offers coming on stream. The dealership is a crucial asset in the context of such change.",19,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +57,audi.pdf,"Digitalization will continue to significantly impact the dealer net- work, with increasingly more digital offers coming on stream. The dealership is a crucial asset in the context of such change. Our dealerships are the very backbone of our sales and are critical for ensuring customer sat- isfaction. Our global service partner network supports more than 82,000 customers every day, with more than 20 million vehicles passing through the work- shops globally in 2024. At the heart of this is a con- sistently premium customer experience at all points of contact and across the entire usage phase of the vehicle. Thanks to this personal contact and individual consultancy, our service partners strengthen customer retention, generate enthusiasm and inspire brand loy- alty. This gives Audi a competitive edge and allows us to sustainably strengthen our global market position. Marco Schubert Member of the Board of Management of AUDI AG, Sales and Marketing The importance of our dealership network: present and future perspectives on average are supported every day by the global Audi service partner network 82,000 customers Photo: AUDI AG 19 Audi Report 2024",19,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +58,audi.pdf,"20 Audi Report 2024 FinanceStrategy & Company ESG AppendixFinanceStrategy & Company ESG Appendix Photos: AUDI AG Flat hierarchies, clear responsibilities, faster decision-making processes for enhanced collaboration – these are the goals of the reorganization taking place. The transformation of Technical Development, the product lines and participating interface partners toward a matrix organization acted as the launching pad for reorganizing all of the divisions. 24 Audi Q8 e-tron: electric power consumption (combined): 28.0–19.5 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 25 Negotiations had not been completed by the editorial deadline of the Audi Report on February 20, 2025. its continued global expansion, huge popularity with fans and the enormous marketing opportunities. During the past year, Audi assembled its factory team for Formula 1, laying the groundwork for future sporting successes. Internal transformation under way The transformation toward a manufacturer of all-electric and fully connected vehicles is the most significant change in the company’s history. At the same time, economic conditions are becoming increasingly tough. Competitive pressure and political uncertainty are posing unprecedented challenges for the company.",20,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +59,audi.pdf,"At the same time, economic conditions are becoming increasingly tough. Competitive pressure and political uncertainty are posing unprecedented challenges for the company. “We can no longer develop and produce cars using the same processes as 20 years ago,” says Döllner. “We therefore must and will make Audi more efficient, more competitive and more resilient for the future.” Already in 2024, the company reduced the number of commit- tees, accelerated processes and began to extensively reorga- nize corporate structures. The goals are clear: flat hierarchies, clearly defined responsibilities, fewer interfaces, faster deci- sions. The transformation of Technical Development, the prod- uct lines and participating interface partners toward a matrix organization acted as the launching pad for reorganizing all of the divisions. The new collaboration model minimizes inter- faces, accelerates decision-making processes and therefore also vehicle development, and promotes innovation. Audi will continue to stand for emotional design in the future. Responsibility for achieving this was placed in the hands of Massimo Frascella and his team on June 1, 2024. Organizationally too, Audi Design has been strengthened. As a brand-building unit of strategic relevance, it reports directly to the Chairman of the Board of Management.",20,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +60,audi.pdf,"Organizationally too, Audi Design has been strengthened. As a brand-building unit of strategic relevance, it reports directly to the Chairman of the Board of Management. To free up the resources needed for its transformation, Audi launched the Performance Program 14. It addresses central cost and revenue potential and therefore provides the finan- cial basis for implementing the company’s strategy. In parallel, the company initiated further far-reaching changes in 2024. These include the premature end of pro- duction of the Audi Q8 e-tron24 and the termination of pro- duction in Brussels. Company management and the Works Council began joint negotiations in the year under review to ensure that the German sites are well positioned for the future. These talks focused on content-driven changes to the structural reorganization of the company.25",20,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +61,audi.pdf,"21 Audi R eport 2024 FinanceStrategy & Company ESG AppendixFinanceStrategy & Company ESG Appendix More than 20 new Audi models will celebrate their world premiere in 2024 and 2025. This product initiative presents many technical high- lights, especially in the areas of efficiency, range, performance and driving dynamics. The new Audi A6 Sportback e-tron⁶ is a shining example of this. With a drag coefficient of 0.21, it is the most aerodynamic Audi of all time. The Audi Q6 e-tron features a world innovation with the active digital light signature. This sets new standards in lighting technology, enables Car-to-X communication and can increase safety in road traffic. The plan for the future is to continue to build on established Audi strengths such as design, chassis construction and the quattro all-wheel drive sys- tem. At the same time, we want to give our promise of “Vorsprung durch Technik” a broader perspective. We will increase investment in innovations and focus on delivering a holistic customer experience: from drive efficiency and driving dynamics to the digital ecosystem through to highly connected driver assist systems.",21,"[Guess]: No +[Confidence]: 1.0 +","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +62,audi.pdf,"We will increase investment in innovations and focus on delivering a holistic customer experience: from drive efficiency and driving dynamics to the digital ecosystem through to highly connected driver assist systems. In addition, we will offer vehicles that are developed uncompromisingly around software and digital efficiency – these are referred to as software-defined vehicles (SDV). To achieve this goal, we need efficient and competitive development processes. We have already made considerable progress with the introduction of the matrix organization as well as the transformation of Technical Development and the product line or- ganization. Moreover, we have defined an ambitious innovation roadmap – with a clear promise: simple, intuitive solutions for our customers. That’s innova- tion. That’s “Vorsprung durch Technik.” Geoffrey Bouquot Member of the Board of Management of AUDI AG, Technical Development Reinforcing “Vorsprung durch Technik” and innovative strength Photos: AUDI AG ⁶ Audi A6 Spor tback e-tron: electric power consumption (combined): 16.7–13.6 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A.",21,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +63,audi.pdf,21 Audi R eport 2024 were in the Audi portfolio in 2024 10 BEVs,21,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +64,audi.pdf,"22 Audi Report 2024 FinanceStrategy & Company ESG AppendixFinanceStrategy & Company ESG Appendix 26 The vehicle mentioned is a concept vehicle that is not available as a series-production vehicle. All possible uses of the technical systems and functions described represent only a possible concept and are dependent on the respective legal regulations in the relevant country. Photos: AUDI AG China market: two partners, twice the strength The Chinese market is an excellent example of how Audi is upping the pace at present. As early as 1988, Audi demon- strated its pioneering status in China as the first premium automotive brand. In 2024, the company showed its cour- age once more and its pioneering spirit, when Audi became the first global car manufacturer to launch a premium brand for intelligent and interconnected e-vehicles, specifically tailored to the Chinese premium market. The AUDI sister brand and its first AUDI E concept26 showcar debuted at the Guangzhou Motor Show. Positioned in and tailored to China, the brand and the car represent the best of both worlds – the unmistakable Audi DNA combined with innovations from China. The public response was also very positive, with the product launch of the AUDI E concept26 proving extremely successful in terms of media reach.",22,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +65,audi.pdf,"The public response was also very positive, with the product launch of the AUDI E concept26 proving extremely successful in terms of media reach. The company is developing further new models under the new sister brand AUDI together with its partner SAIC. Audi deliberately founded the brand in order to tap into younger, tech-savvy Chinese customer groups. The joint venture com- bines the traditional strengths of Audi in the area of design and driving dynamics with SAIC’s speed of innovation and expertise in China-specific digital features. The AUDI E concept26 showcar is the first concept vehicle from the new AUDI sister brand. The series-production version of the AUDI E concept26 is due to be unveiled as early as April 2025 – a midsize model fea- turing the latest charging technology, a smart cockpit and advanced driver assist systems. It will go on sale in the same year. In collaboration with SAIC, Audi was able to reduce the development time for the model by 30 percent. The company plans to introduce two additional AUDI models in the C segment onto the market within the next two years – an SUV and a Sportback. The front and rear design of the AUDI E concept26 are radically new, iconic and charismatic.",22,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +66,audi.pdf,"The front and rear design of the AUDI E concept26 are radically new, iconic and charismatic. At the same time, AUDI – without the Four Rings logo, but written in capital letters – signals the connection to and differentiation from the sister brand.",22,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 " +67,audi.pdf,"23 Audi R eport 2024 FinanceStrategy & Company ESG AppendixFinanceStrategy & Company ESG Appendix In December 2024, we reached an important milestone for Audi in China with the start of production in the new Audi FAW NEV Company. The new production site in Changchun, which we will operate together with our long-standing partner FAW, sets new standards in the Audi production network thanks to its cutting-edge, digitalized and net carbon-neutral 27 production. The first vehicle to roll off the production line here will be the Audi Q6 e-tron model that was specifically developed for China, to be followed later on by the Audi A6 e-tron. Producing market-specific models locally was always the key to our success in China. And proximity to our customers will also become more im- portant in terms of the global perspective – especially in politically uncertain times. That is why we are focus- ing even more on market-based production in the three core regions of Europe, North America and China. As well as our focus on location, we are adopting a holistic approach with the 360factory strategy, by modernizing and transforming our production sites.",23,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +68,audi.pdf,"As well as our focus on location, we are adopting a holistic approach with the 360factory strategy, by modernizing and transforming our production sites. To secure the competitiveness of Audi in the long term, we want to significantly reduce our factory costs by 2033 – for example, by reducing complexity, increasing automation and pushing ahead with the digitalization of production. We also want to minimize our carbon footprint in production and logistics. Since January 1, 2025, production operations at all Audi production sites worldwide have been net carbon-neutral. 27 But decar- bonization is not our only focus. We are also commit- ted to the efficient use of resources, economical water usage and protection of biodiversity. I am aware that these are ambitious goals that we can only achieve together with a top team. And that is why we want to further increase our attractiveness as an employer, for example through more flexible working hours, also for employees who work fixed-cycle shifts. Gerd Walker Member of the Board of Management of AUDI AG, Production and Logistics Future production is flexible and sustainable.",23,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 " +69,audi.pdf,"Gerd Walker Member of the Board of Management of AUDI AG, Production and Logistics Future production is flexible and sustainable. 27 Audi r egards net carbon neutrality as a state in which, following the exhaustion of other possible measures aimed at reducing the still remaining CO₂ emissions caused by the products or activities of Audi and/or currently unavoidable CO₂ emissions within the scope of the supply chain, manufacturing and recycling of Audi vehicles, at least quantitative compensation is provided through voluntary and globally conducted compensation projects. Throughout the utilization phase of a vehicle, meaning from when a vehicle is delivered to a customer, CO₂ emissions produced are not taken into account. Model illustrated: Audi A6 Sportback e-tron: electric power consumption (combined): 16.7–13.6 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. Photos: AUDI AG production operations at all Audi production sites have been net carbon-neutral 27 2025 Since January 1, 23 Audi R eport 2024",23,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: Yes +[Confidence]: 0.8 " +70,audi.pdf,"24 Audi Report 2024 FinanceStrategy & Company ESG AppendixFinanceStrategy & Company ESG Appendix24 Audi Report 2024 27 Audi regards net carbon neutrality as a state in which, following the exhaustion of other possible measures aimed at reducing the still remaining CO₂ emissions caused by the products or activities of Audi and/or currently unavoidable CO₂ emissions within the scope of the supply chain, manufacturing and recycling of Audi vehicles, at least quantitative compensation is provided through voluntary and globally conducted compensation projects. Throughout the utilization phase of a vehicle, meaning from when a vehicle is delivered to a customer, CO₂ emissions produced are not taken into account. 28 Audi Q6 L e-tron: This vehicle is manufactured locally by associated companies and available and sold exclusively in China. 29 Audi A5 L: This vehicle is manufactured locally by associated companies and available and sold exclusively in China. Agnateca temporro quatque volorehendae vernam rem ever- cidus issinci dolorem que nullendam, niendit, cus, seraerum Photos: AUDI AG Another important milestone in the strategy for the Chinese market: the start of production of the Audi Q6 L e-tron28 family in Changchun in collaboration with First Automotive Works (FAW) at the end of 2024.",24,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +71,audi.pdf,"The new production site is the first in China to exclusively produce fully electric Audi models based on the PPE. The Audi Q6 L e-tron family will be the first to roll off the production line here, followed later by a market-specific version of the Audi A6 e-tron. The new models stand out not only in relation to the traditionally longer wheelbase, but also offer additional design features and digital experiences tailored to Chinese customers. “The start of production in Changchun represents a signif- icant step forward in our electrification strategy. We are therefore upholding our commitment to the Chinese mar- ket,” explains Gernot Döllner. “The models produced here will play a crucial role in our local portfolio and strengthen our position in this key market.” With its state-of-the-art, fully digitally integrated and eco-friendly production, the plant is setting new standards across the entire Audi production network, and contributing to Mission:Zero, the global environmental program for all Audi production sites. Production at the plant is planned to be net carbon-neutral27 from the beginning with an annual capacity of more than 150,000 vehicles.",24,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +72,audi.pdf,"Production at the plant is planned to be net carbon-neutral27 from the beginning with an annual capacity of more than 150,000 vehicles. Since the end of December 2024, the Audi Q6 L e-tron28 has been produced exclusively for the Chinese market by Audi FAW NEV Company, a cooperation project between Audi and FAW. As a combustion engine model specially for the Chinese market, the Audi A5 L29 is based on the Premium Platform Combustion (PPC).",24,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +73,audi.pdf,"25 Audi R eport 2024 FinanceStrategy & Company ESG AppendixFinanceStrategy & Company ESG Appendix Our supply chain is long and globally spread. We are currently working with more than 12,400 suppliers in over 60 countries. This requires responsible and intelligent supply chain management – especially in challenging times when geopolitical crises and a weak economy are putting automotive markets and supply chains under pressure. Added to this are other disruptive factors such as the increased risk of decoupled trade relations as well as site-specific pressures such as strikes and natural disasters. All the more important in this context is an end-to- end procurement strategy, which focuses on creat- ing value for Audi. Our primary goal is to procure the right parts in the right quality at the right time – and under the best possible economic conditions and in close collaboration with the Volkswagen Group. We focus above all on innovative strength in addition to certainty of supply in the supply chain. In close coordination with Technical Development, we are focusing even more strongly on long-term collaboration with highly innovative suppliers. This helps us to implement our ambitious technology roadmap and bring vehicles to market that offer the best possible benefit for customers. In addition, we want to increase sustainability in our supply chain together with our partner companies.",25,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +74,audi.pdf,"This helps us to implement our ambitious technology roadmap and bring vehicles to market that offer the best possible benefit for customers. In addition, we want to increase sustainability in our supply chain together with our partner companies. Audi has implemented various processes, guidelines and measures here in order to continually improve and enhance standards in the supply chain. For example, suppliers have to successfully complete the Sustainability Rating (S-Rating) on a risk basis in the areas of environment, social issues and in- tegrity before we begin the contract award process. Another concern in terms of reducing our ecological footprint is the responsible handling of resources, focusing on the circular economy and the use of re- cycled materials in our vehicle parts. In this respect, we are pushing ahead with the reuse of aluminum, steel, glass, plastic and batteries.",25,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.8 " +75,audi.pdf,"In this respect, we are pushing ahead with the reuse of aluminum, steel, glass, plastic and batteries. Renate Vachenauer Member of the Board of Management of AUDI AG, Procurement Robust and sustainable supply chains >12,400 Photos: AUDI AG make up the global Audi supplier network suppliers 25 Audi R eport 2024 Audi A6 Avant e-tron performance: electric power consumption (combined): 17.0–14.8 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A.",25,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +76,audi.pdf,"26 Audi Report 2024 FinanceStrategy & Company ESG AppendixFinanceStrategy & Company ESG Appendix California Dreamin’: The Audi RS 6 Avant GT30 represents the pinnacle of its model series. Now in its fourth generation, it enjoys cult status in the US. 26 Audi Report 2024 Gernot Döllner Chairman of the Board of Management of AUDI AG Our previous achievements give me reason to be confident. Now it’s about staying the course, acting consistently and putting Audi back on top again. Photos: AUDI AG 30 Audi RS 6 Avant GT: fuel consumption (combined): 12.7–12.2 l/100 km; CO₂ emissions (combined) 289–277 g/km; CO₂ class: G. US market: foundation laid for future success Besides China, it is above all the US market that will drive global demand for premium cars for the foreseeable future. Audi is underscoring its commitment in the region of North America and is currently looking into further localization options, including potential for cooperation as part of the Volkswagen Group’s North America strategy – also in areas such as battery production and charging infrastructure. The switch to BEVs presents a unique opportunity in North America.",26,"[Guess]: No +[Confidence]: 0.995 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +77,audi.pdf,"The switch to BEVs presents a unique opportunity in North America. And this opportunity must be seized systemati- cally. Audi is working intensively to set the right strategic course in order to maximize market penetration. Attractive models will be available for customers in the USA in upcom- ing months with the model families of the Audi A6 e-tron, Audi Q6 e-tron, Audi A5, Audi Q5 and Audi A6. Focus on software A core element of the Audi Agenda is the systematic accel- eration of development work through the introduction of a matrix organization. This involves a paradigm shift toward integral development of vehicles with software as a leading element – so-called software-defined vehicles. The focus is shifting to include software functions in the development process in addition to hardware components such as the body, powertrain and suspension. Software and electronics are set to become the primary drivers of innovation in the future. With this in mind, a separate “Innovation and Software- Defined Vehicle” division was established in the year under review under the leadership of Geoffrey Bouquot, which was then integrated into Technical Development on January 1, 2025. Geoffrey Bouquot took over responsibility for the combined division from this date, too.",26,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +78,audi.pdf,"27 Audi Report 2024 FinanceStrategy & Company ESG AppendixFinanceStrategy & Company ESG Appendix Gernot Döllner Chairman of the Board of Management of AUDI AG With the Audi Agenda, we have defined a clear plan. We are a strong team and are tackling the challenges together. 31 Audi Q6 Sportback e-tron: electric power consumption (combined): 18.9–15.6 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. You can find more information at audi.com. Strong partnerships globally Strong partnerships are also an important success factor on the path to the software-defined vehicle (SDV). With the joint venture between the Volkswagen Group and Rivian, Audi now has a clear roadmap for the future. The Volkswagen Group and Rivian are bundling the innovative strength of both companies in the newly founded company and plan to jointly develop a new electronics architecture for the SDV. Rivian’s software and electrical hardware technol- ogy complements the global presence and competence of the Volkswagen Group in the area of vehicle platforms. This should reduce development costs and help to scale new technologies faster. The architecture will enable over-the-air updates and offer scalability across all segments.",27,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +79,audi.pdf,"This should reduce development costs and help to scale new technologies faster. The architecture will enable over-the-air updates and offer scalability across all segments. The first cars featuring the new architecture will be introduced onto the market in 2027. Audi is playing a leading role in this respect, with teams from Audi and Rivian having already demonstrated the technological potential of the joint endeavor in the form of a roadworthy demonstration model of the Audi Q6 e-tron. Audi also benefits from other partnerships in the Group, such as with Mobileye for developing autonomous driving functions for Europe and North America, or with Horizon Robotics in China. The company develops infotainment functions with Cariad in the European and North American market and with ThunderSoft in China. This means that Audi can offer tailored solutions for its customers in different markets. According to Döllner: “Working with strong part- ners we can improve our products, reduce costs and increase the pace of development.” 27 Audi Report 2024 Audi on the offensive The political and overall economic situation along with strong competitive pressure, especially in the core markets of Europe, China and the US, pose major challenges for Audi. At the same time, the company is facing an unprecedented internal transformation.",27,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +80,audi.pdf,"At the same time, the company is facing an unprecedented internal transformation. “We are facing the future with confidence,” says Döllner. “With the Audi Agenda, we have defined a clear plan. We are a strong team and are tackling the challenges together.” Courage, pioneering spirit and innovative strength are values that characterize the Audi team – and have already allowed it to celebrate success in 2024. “Our previous achievements give me reason to be confident. Now it’s about staying the course, acting consistently and putting Audi back at the top again.” New platform, electronics architecture, charging and battery technology: The Audi Q6 Sportback e-tron31 epitomizes the transformation of the Audi brand to a leading premium provider in the field of electric mobility. Photo: AUDI AG",27,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +81,audi.pdf,"Strategy & Company Finance ESG Appendix 28 Audi R eport 2024 Photos: AUDI AG, Bentley Motors Ltd., Automobili Lamborghini S.p.A., Ducati Motor Holding S.p.A. W ith Audi, Bentley, Lamborghini and Ducati, the Brand Group Progressive combines strong and in- dependent brands from the premium, luxury and supersport segments. What unites the four brands is their absolute commitment to high-class products in their respective segments as well as a clear and unconditional focus on customer expectations. Audi, Bentley, Lamborghini and Ducati are positioned differently in the market, with each having its own strategic focus. The key parameters for this collabo- ration are defined by the Volkswagen Group and brand group management at Audi. Audi not only assumes respon- sibility within the Supervisory Board of the respective brands, but also draws on the personal networking between managers. For example, the Audi Board of Management meets the boards of the respective brands locally twice a year to discuss their strategic and operational focus.",28,"[Guess]: No +[Confidence]: 1.0","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +82,audi.pdf,"For example, the Audi Board of Management meets the boards of the respective brands locally twice a year to discuss their strategic and operational focus. All four manufacturers collaborate transparently, where useful and expe- dient – for example, in relation to the transfer of key technologies, the shared use of platforms and architectures and the bundling of services. This not only increases efficiency, but ultimately also benefits the customer. They profit from products that reflect the expertise of the entire company group, with synergies sought at each stage of the value chain. For example, the Audi Q7,¹ Audi Q8,² Bentley Bentayga and Lamborghini Urus³ models share the modular longitudinal matrix (MLB) as a platform. This in turn enables greater differentiation in cus- tomer-relevant fields such as display and operating concept, driving dynamics and design. Information is also shared on a regular, needs-driven basis in relation to key technology and product matters such as electrification technologies and customization strategies for vehicle models. Wherever reasonably possible, the brands also strive to achieve synergies in production.",28,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +83,audi.pdf,"Wherever reasonably possible, the brands also strive to achieve synergies in production. In the year under review, not only did the sports car production facility at Böllinger Höfe in Neckarsulm construct the Audi e-tron GT⁴ models, the team in the body shop also worked simultaneously on the body of the Lamborghini Temerario.⁵ In the area of procurement, the brands bundle their demand for carry-over parts in numerous fields, procure these parts collectively and thus benefit from better terms and conditions. Advances in ESG factors can also be achieved in the supply chain thanks to the use of a Group-wide sustainability rating for suppliers. ¹ Audi Q7: fuel consumption ( weighted combined): 12.7–1.2 l/100 km; electric power consumption (weighted combined): 29.1–27.8 kWh/100 km; CO₂ emissions (weighted combined): 289–28 g/km; CO₂ class (weighted combined): G–B; fuel consump- tion with empty battery (combined): 10.5–9.8 l/ 100 km; CO₂ class with empty battery: G.",28,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +84,audi.pdf,² Audi Q8: fuel consumption ( weighted combined): 13.6–1.2 l/100 km; electric power consumption (weighted combined): 30.4–27.7 kWh/100 km; CO₂ emissions (weighted combined): 310–27 g/km; CO₂ class (weighted combined): G–B; fuel consump- tion with empty battery (combined): 10.9–9.8 l/ 100 km; CO₂ class with empty battery: G. ³ Lambor ghini Urus: fuel consumption (weighted combined): 14.9–2.1 l/100 km; electric power con- sumption (weighted combined): 39.5 kWh/100 km; CO₂ emissions (weighted combined): 320–51.3 g/km; CO₂ class (weighted combined): G–B; fuel consump- tion with empty battery (combined): 12.9 l/100 km; CO₂ class with empty battery: G. ⁴ Audi e-tr on GT: electric power consumption (com- bined): 21.1–18.0 kWh/100 km; CO2 emissions (combined): 0 g/km; CO2 class: A.,28,"[Guess]: No +[Confidence]: 0.9","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +85,audi.pdf,"⁵ Lambor ghini Temerario: Data on CO₂ emissions and fuel consumption for EU27 are still pending, subject to EU type approval. Perfect partnership: Bentley, Lamborghini and Ducati are powering their way to an electric future 2 1 4 3 1 Audi S6 Spor tback e-tron: electric power consump- tion (combined): 16.7–15.7 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 2 Bentley Flying Spur Speed: fuel consumption (weighted combined): 1.4 l/100 km; electric power consumption (weighted combined): 29.3 kWh/ 100 km; CO₂ emissions (weighted combined): 33 g/km; CO₂ class (weighted combined): B; fuel consumption with empty battery (combined): 10.7 l/100 km; CO₂ class with empty battery: G.",28,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +86,audi.pdf,3 Lamborghini R evuelto: fuel consumption (weighted combined): 11.9 l/100 km; electric power consump- tion (weighted combined): 10.1 kWh/100 km; CO₂ emissions (weighted combined): 276 g/km; CO₂ class (weighted combined): G; fuel consumption with empty battery (combined): 17.8 l/100 km; CO₂ class with empty battery: G. 4 Ducati DesertX Brand Group Progressive,28,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +87,audi.pdf,"Strategy & Company Finance ESG Appendix 29 Audi Report 2024 Bentley Continental GT Convertible:⁸ The ultimate combination of supercar performance, handcrafted luxury and everyday suitability. Photos: Bentley Motors Ltd. I n the year under review, Bentley presented its Beyond 100+ strategy roadmap. The roadmap provides for a new plug-in hybrid model or battery elec- tric vehicle every year up to 2035. The first battery-electric Bentley will be launched in 2026 – and is set to establish a new segment as the world’s first real luxury SUV for urban living. At the same time, the British luxury brand is extending the life cycle of its plug-in hybrid models, before all-electric vehicles are to be exclusively offered from 2035. In addition, Bentley is investing sustainably in its “Dream Factory” in Crewe, where it is developing a flexible, digital plant for high-quality next-generation products. Since July 2024, responsibility for implementing the Beyond100+ strategy has been in the hands of the new Chairman and CEO Frank-Steffen Walliser, who succeeds Adrian Hallmark.",29,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.9 " +88,audi.pdf,"Since July 2024, responsibility for implementing the Beyond100+ strategy has been in the hands of the new Chairman and CEO Frank-Steffen Walliser, who succeeds Adrian Hallmark. Defining premieres in 2024 Two new vehicles were launched by the luxury car manufacturer in the year under review. With the new Bentley Flying Spur,⁶ the brand presented the most powerful Bentley four-door of all times – now in ⁶ Bentley Flying Spur Speed: fuel consumption (weighted combined): 1.4 l/100 km; electric power consumption (weighted combined): 29.3 kWh/100 km; CO₂ emissions (weighted combined): 33 g/km; CO₂ class (weighted combined): B; fuel consumption with empty battery (combined): 10.7 l/100 km; CO₂ class with empty battery: G. ⁷ Bentley Continental GT Speed: fuel consumption (weighted combined): 1.3 l/100 km; electric power consumption (weighted combined): 27.7 kWh/100 km; CO₂ emissions (weighted combined): 29 g/km; CO₂ class (weighted combined): B; fuel consumption with empty battery (combined): 10.3 l/100 km; CO₂ class with empty battery: G.",29,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +89,audi.pdf,"⁸ Bentley Continental GTC Speed: fuel consumption (weighted combined): 1.4 l/100 km; electric power consumption (weighted combined): 27.9 kWh/100 km; CO₂ emissions (weighted combined): 31 g/km; CO₂ class (weighted combined): B; fuel consumption with empty battery (combined): 10.6 l/100 km; CO₂ class with empty battery: G. Read more about sustainability in the Bentley Sustainability Report 2023. Sustainability is a top priority its fourth generation. At the heart of the new Flying Spur, which will debut first as the performance-oriented Speed model, is Bentley’s new Ultra Performance Hybrid powertrain with 782 PS and 1,000 Nm of torque. The vehicle also has a range of up to 76 kilometers (in the WLTP driving cycle) in all-electric mode – ideal for green zones or city traffic. The fourth generation of the two-door Continental GT Speed⁷ also celebrated its debut. It continues the 21-year tradition of the Continental GT product line and redefines the synthesis of supercar perfor- mance, handcrafted luxury and everyday use. Outstanding performance is guaran- teed thanks to the new Ultra Performance Hybrid powertrain.",29,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +90,audi.pdf,"Outstanding performance is guaran- teed thanks to the new Ultra Performance Hybrid powertrain. The result is accelera- tion from 0 to 100 km/h in 3.2 seconds, an all-electric range of 81 kilometers and a total range of 859 kilometers (in the WLTP driving cycle). The Cabriolet (GTC⁸) is set to be launched at the same time as the Coupé (GT⁷).",29,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +91,audi.pdf,"Strategy & Company Finance ESG Appendix 30 Audi R eport 2024 5 Lambor ghini Temerario: Data on CO₂ emissions and fuel consumption for EU27 are still pending, subject to EU type approval. ⁹ Lambor ghini Lanzador: The vehicle mentioned is a concept vehicle that is not available as a series-production vehicle. All possible uses of the technical systems and functions described represent only a possible concept and are dependent on the respective legal regulations in the relevant country. 10 Lamborghini Revuelto: fuel consumption (weighted combined): 11.9 l/100 km; electric power consumption (weighted combined): 10.1 kWh/100 km; CO₂ emissions (weighted combined): 276 g/km; CO₂ class (weighted combined): G; fuel consumption with empty battery (combined): 17.8 l/100 km; CO₂ class with empty battery: G.",30,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +92,audi.pdf,"11 Lambor ghini Urus SE: fuel consumption (weighted combined): 2.1 l/100 km; electric power consumption (weighted combined): 39.5 kWh/100 km; CO₂ emissions (weighted combined): 51.3 g/km; CO₂ class (weighted combined): B; fuel consumption with empty battery (combined): 12.9 l/100 km; CO₂ class with empty battery: G. 12 Audi regards net carbon neutrality as a state in which, following the exhaustion of other possible measures aimed at reducing the still remaining CO₂ emissions caused by the products or activities of Audi and/or currently unavoidable CO₂ emissions within the scope of the supply chain, manufacturing and recycling of Audi vehicles, at least quantitative compensation is provided through voluntary and globally conducted compensation projects. Throughout the utilization phase of a vehicle, meaning from when a vehicle is delivered to a customer, CO₂ emissions produced are not taken into account. 13 T o achieve net carbon neutrality, clearly defined interim targets have been outlined that depend heavily on market developments and the pace at which electric mobility is expand- ed. Volatile markets and the uncertain economic and political climate stand in the way of making reliable statements about interim targets up to the year 2050. Photo: Automobili Lamborghini S.p.A.",30,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +93,audi.pdf,"Volatile markets and the uncertain economic and political climate stand in the way of making reliable statements about interim targets up to the year 2050. Photo: Automobili Lamborghini S.p.A. A utomobili Lamborghini’s mission is to inspire and encourage others to tackle modern-day challenges. During the year under review, the brand demonstrated just how important sustain- able visions are. Lamborghini refined its Direzione Cor Tauri strategy, which acts as the brand’s basis for delivering a pact to future generations. The strategy aims to take another significant step forward in the company’s growth, further improve profit- ability and maintain the brand’s strong position compared with the competition, while also acting as a roadmap for innova- tion and sustainable progress. The end of the decade heralds the start of the era of all-electric Lamborghini vehicle models: A fourth product line will debut based on the Lamborghini Lanzador⁹ concept car, followed by the first all-electric Super SUV. During the year under review, the hybrid- ization of all three product lines marked the first milestone on the path toward electrification of the fleet.",30,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 " +94,audi.pdf,"During the year under review, the hybrid- ization of all three product lines marked the first milestone on the path toward electrification of the fleet. Following the Lamborghini Revuelto,¹⁰ the brand presented its second High Performance Electrified Vehicle (HPEV) model with the Lamborghini Temerario.⁵ The hybrid powertrain combines a completely new twin-turbo V8 powertrain with three elec- tric motors, which deliver a total output of 920 PS (676 kW). The V8 is the first and only series-production engine of any supercar to reach an rpm of 10,000. The maximum speed is more than 340 km/h; acceleration from 0 to 100 km/h takes just 2.7 seconds. The Lamborghini Urus SE¹¹ is the brand’s first plug-in hybrid Super SUV.",30,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +95,audi.pdf,"The Lamborghini Urus SE¹¹ is the brand’s first plug-in hybrid Super SUV. The hybrid system incorporates a 4.0-liter twin-turbocharged V8 engine paired with an electric motor, giving it a total output of 800 PS and 950 Nm of torque (fuel consumption (weighted combined): 2.08 l/100 km; electric power consumption (weighted combined): 39.5 kWh/100 km; CO₂ emissions (weighted combined): 51.25 g/km; CO₂ class (weighted combined): B; fuel consumption with empty battery (combined): 12.9 l/100 km; CO₂ class with empty battery: G). Finally, the Lamborghini Revuelto Opera Unica¹⁰ series continued its journey with the unveiling of its second masterpiece in Shanghai. Following the debut of the Euro- pean edition in Porto Cervo in early August 2024, the Shanghai edition, thoughtfully tailored to resonate with the Chinese market, highlights Lamborghini’s unwav- ering commitment to art, craftsmanship and innovation.",30,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +96,audi.pdf,"With the V12 plug-in hybrid PHEV (fuel consumption (weighted combined): 11.9 l/100 km; electric power consumption (weighted combined): 10.1 kWh/100 km; CO₂ emissions (weighted combined): 276 g/km; CO₂ class (weight- ed combined): G; fuel consumption with empty battery (combined): 17.8 l/100 km; CO₂ class with empty battery: G), the brand is accentuating its Ad-Personam customi- zation program. The decarbonization of Lamborghini’s fleet aligns seamlessly with the introduction of its new models. The commitment to reduc- ing CO₂ emissions extends across the entire product life cycle, encompassing supply chains, production processes, logistics and the utilization phase of each vehicle. With this comprehensive approach, Automobili Lamborghini is aiming to achieve net car- bon neutrality¹² by 2050.¹³ Lamborghini Temerario:⁵ The first Lamborghini supercar with a twin-turbo V8 in combination with three electric motors and a total output of 920 PS. Pure emotions with sustainable vision",30,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.9 " +97,audi.pdf,"Strategy & Company Finance ESG Appendix 31 Audi Report 2024 T he technical superiority of Ducati continued in 2024 in the world of on-road motorcycle racing, while the brand also made its debut in off-road racing: Ducati claimed victory for the third succes- sive time in the MotoGP (World Motorcycle Championship). But winning the world championship rider’s title was by no means the end of the story: Ducati riders also claimed second, third and fourth spots. In the WorldSBK (World Superbike Championship), Ducati lifted the manufac- turer and team title, and in the WorldSSP (Supersport World Championship), Ducati also came out on top in the rider and manufacturer rankings. With the prototype of the off-road Desmo450 MX motocross bike, the motorcycle manufacturer shone in national motocross competitions on its debut, while the new Ducati DesertX Rally prevailed in the twin-cylinder category in the prestigious Erzbergrodeo.",31,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +98,audi.pdf,"From racetrack to road Unbelievably fast in electric mode too: In its second season as the sole official supplier of bikes competing in the FIM Enel MotoE World Championship, Ducati illustrated the standards it expects of its future electric motorcycles. The company’s commitment to the race series is part of its roadmap to electrification. Premiere celebrations in Italy Not only was victory on the racetrack celebrated in 2024, customers were also treated to the biggest launch of new mod- els in the company’s history. With the all-new Panigale V4, Ducati is adding a new dimension to the perfor- mance of its supersport motorcycles: new solutions for chassis, electronics, aerody- namics and ergonomics and an improved engine – all in an unmistakable sporty Italian look. The fastest Panigale ever. Its “stripped” version, the Streetfighter V4, is the most powerful Streetfighter of all times and also offers new solutions in relation to design, aerodynamics, ergonomics, suspension and electronics.",31,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +99,audi.pdf,"Its “stripped” version, the Streetfighter V4, is the most powerful Streetfighter of all times and also offers new solutions in relation to design, aerodynamics, ergonomics, suspension and electronics. More efficient, more comfortable, more powerful: the new Multistrada V4, V4 S and V4 Pikes Peak are lining up in 2025 to dominate the maxi-adventure category. A new twin-cylinder engine, the lightest ever in Ducati history, powers all three models. The completely redesigned Multistrada V2, thanks to an optimized chassis and an impressive weight reduction, guarantees balanced, comfortable and precise han- dling while traveling. Thanks to a manic search for weight reduction, the new Panigale V2 and its roadster version, the Streetfighter V2, are both the lightest ever made by Ducati and have an impressive power-to-weight ratio in their category. The Scrambler family is expanding with the Icon Dark and the new Full Throttle. The “10° Anniversario RIZOMA EDITION” is a limited and numbered edition, intended for collectors to celebrate this milestone of 10 years of Scrambler history.",31,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 " +100,audi.pdf,"The “10° Anniversario RIZOMA EDITION” is a limited and numbered edition, intended for collectors to celebrate this milestone of 10 years of Scrambler history. With the Hypermotard 698 Mono, Ducati is presenting its first single-cylinder road supermotard, while the Panigale V2 Su- perquadro Final Edition is being launched as a limited-edition collector’s item to celebrate the racing legacy of this glorious engine. Customers can unleash their ad- venturous spirit on the new Ducati DesertX Rally und DesertX Discovery and in the travel enduro category. Ducati Panigale V2: With the lightest model that Ducati has ever built. Photo: Ducati Motor Holding S.p.A. Dominance as standard",31,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +101,audi.pdf,FinanceStrategy & Company ESG Appendix 32 Audi Report 2024 Audi A6 Avant: fuel consumption (combined): 8.0–5.0 l/100 km; CO₂ emissions (combined): 181–130 g/km; CO₂ class: G–D. Photo: AUDI AG 33 // Key figures at a glance 35 // Markets & volume 40 // Financial situation 47 // Brand Group Progressive 48 // EU taxonomy 54 // Report on expected developments 56 // Report on risks and opportunities Finance,32,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +102,audi.pdf,"FinanceStrategy & Company ESG Appendix 33 Audi Report 2024 Financial highlights Brand Group Progressive 2024 Revenue Net cash flow Investment ratioROS (return on sales) Operating profit Decrease mainly due to lower sales – partly as a result of model changes and product launches Down in particular due to lower profit and negative development in working capital Investments continue to include high upfront expenditure on new models and technologies Operating return on sales reflects challenging fiscal year, also impacted by numerous launches of new models Heavily influenced by restructuring expenses in connection with the termination of production at the Brussels site EUR 64.5 billion EUR 3.1 billion 12.5%6.0% EUR 3.9 billion –35.2% Deliveries Decline due to challenging economic conditions, a highly competitive market environment and limited supply ability 1.7 million –7.6% –37.9% –3.0 ppt. cars +0.1 ppt. Year-on-year change To the outlook: fiscal year 2025 –11.8%",33,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +103,audi.pdf,"FinanceStrategy & Company ESG Appendix 34 Audi R eport 2024 Outlook: fiscal year 2025 EUR 67.5 to 72.5 billion Anticipated development in the key performance indicators of the Brand Group Progressive Deliveries Revenue 1.7 to 1.8 million cars Key figures at a glance ¹ The investment r atio describes research and development activities and capital expen- diture as a proportion of revenue. All of the key financial figures in the Finance chapter are based on the Audi consolidat- ed financial statements prepared voluntarily in accordance with IFRS. These consoli- dated financial statements are included in the consolidated financial statements of Volkswagen AG. The figures in brackets represent the respective prior-year figures. The amendments to the IFRS in 2024 had no material impact on the Audi Group’s net worth, financial position and financial performance. Internet sources refer to the status as of February 15, 2025. The following section on the financial situation and the forecast contains statements on expected developments. These statements are based on current assessments and are by their nature subject to risks and uncertainties. Actual outcomes may differ from those predicted in these statements. AUDI AG has made use of the option under Section 289b. Para.",34,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +104,audi.pdf,"Actual outcomes may differ from those predicted in these statements. AUDI AG has made use of the option under Section 289b. Para. 2 and Section 315b. Para. 2 of the German Commercial Code (HGB) exempting it from submission of a non-financial declaration and non-financial Group declaration and refers readers to the combined separate non-financial report of Volkswagen AG for the 2024 fiscal year, which will be available on the Internet in German and English by no later than March 30, 2025. Additional information on production, delivery and financial figures can be found in the Audi Fact Pack available for download on the Audi Investor Relations website. EUR 3 to 4 billion Return on sales Net cash flow 7 to 9 % Investment ratio¹ 10 to 12 %",34,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +105,audi.pdf,"FinanceStrategy & Company ESG Appendix 35 Audi Report 2024 Economic environment Markets & volume The global economy continued to see solid growth in fiscal year 2024 with clear regional differences. Worldwide demand for vehicles slightly exceeded the prior-year level. The world and the core regions in detail: 2024 2023 2024 2023 ∆ in % 2024 2023 ∆ in % Europe 1.0 0.7 14,294,580 13,901,608 2.8 670,859 754,549 –11.1 of which Germany –0.2 –0.1 2,817,331 2,844,609 –1.0 200,009 253,920 –21.2 China3 5.0 5.3 23,411,007 22,340,281 4.8 653,016 732,893 –10.9 USA4 2.8 2.9 16,041,352 15,619,226 2.7 202,969 235,178 –13.7 Worldwide 2.7 2.8 79,181,505 77,044,347 2.8 1,692,548 1,918,",35,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +106,audi.pdf,"969 235,178 –13.7 Worldwide 2.7 2.8 79,181,505 77,044,347 2.8 1,692,548 1,918,912 –11.8 Real GDP growth in % Car markets in vehicles Deliveries to customers of the Brand Group Progressive in cars Growth in the gross domestic product, car markets and deliveries of the Brand Group Progressive in selected countries/regions2 ² The prior-year figures may have changed as a result of updated data; provisional figures for 2024. ³ Chinese car market including Hong Kong. ⁴ Sales figures for passenger cars and light commercial vehicles (up to 6.35 t). Photo: shutterstock",35,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 1.0 " +107,audi.pdf,"FinanceStrategy & Company ESG Appendix 36 Audi Report 2024 USA Economy > Surprisingly robust development of gross domes- tic product in the US in the reporting year; growth rate only slightly down on the strong previous year > Greater focus on maintaining a restrictive mone- tary policy by the US Federal Reserve until the first interest rate cut in September 2024 due to more persistent inflation by global standards and a tight labor market Car market > Sales figures for passenger cars and light com- mercial vehicles (up to 6.35 t) on a par with the previous year; availability and affordability of new vehicles improved on average China Economy > Growth in economic output remains at a very high level compared with the rest of the world, but with de- clining momentum – due in particu- lar to structural growth obstacles in China’s domestic market > GDP development in the reporting year therefore slightly weaker than in the previous year Car market > Slight overall increase year on year in the number of new registrations, with electrified vehicles performing strongly;",36,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +108,audi.pdf,"with electrified vehicles performing strongly; comprehensive purchase incentives and intensive price com- petition as the main drivers Economy > Global economy continues to grow at a slightly slower pace compared with the previous year > Similar development in both advanced econ- omies and emerging markets > Economic development remains subdued in many places due to declining, but in some cases still relatively high core inflation rates combined with an increasingly loose, but still restrictive mone- tary policy on the part of major central banks Car market > Global passenger car market volume slightly above the previous year’s level > Positive development in most regions > Further normalization of the supply situa- tion coupled with an improvement in the affordability of vehicles in some regions around the world World Economy > Growth slightly positive overall, but below aver- age in historical compar- ison; slightly above the previous year’s level > Another decline in gross domestic product in Ger- many with development even slightly weaker than in the previous year > Inflation rates falling;",36,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +109,audi.pdf,slightly above the previous year’s level > Another decline in gross domestic product in Ger- many with development even slightly weaker than in the previous year > Inflation rates falling; four key interest rate cuts by the European Central Bank since June 2024 Europe Car market > Increase in new car regis- trations in the reporting year; largely positive development in the major individual markets for passenger cars > Number of new car reg- istrations in Germany at previous year’s level > End of subsidies for battery electric vehicles in Germany at the end of 2023 with a dampening effect on the develop- ment of new registrations for fully electric vehicles Photos: AUDI AG ⁵ Audi Q4 e-tron: electric power consumption (combined): 19.2–16.1 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 6 Audi RS 6 Avant GT: fuel consumption (combined): 12.7–12.2 l/100 km; CO₂ emissions (combined): 289–277 g/km; CO₂ class: G. Audi RS 6 Avant GT⁶ Audi Q4 e-tron⁵,36,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +110,audi.pdf,"FinanceStrategy & Company ESG Appendix 37 Audi Report 2024 Production I n the reporting period, the Brand Group Progressive manufac- tured 1,692,152 (1,960,442) cars, a decline of 13.7 percent compared with the previous year. The Audi brand built 1,668,728 (1,937,187) vehicles and therefore 13.9 percent fewer than in the year before. This figure includes 608,536 (669,902) Audi vehicles manufactured local- ly by associated Chinese companies, a decrease of 9.2 percent. Lamborghini produced 12,200 (10,014) supercars and super SUVs and closed 2024 with a significant increase of 21.8 percent on the previous year. The Lamborghini Revuelto7 also made a major contribution to this. The Bentley luxury brand produced 11,224 (13,241) vehicles in the period under review, a decline of 15.2 percent compared with 2023. Ducati produced 55,956 (55,226) motorcycles, a slight increase of 1.3 percent. The Brand Group Progressive significantly scaled back its production in 2024 compared with the previous year.",37,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +111,audi.pdf,"Ducati produced 55,956 (55,226) motorcycles, a slight increase of 1.3 percent. The Brand Group Progressive significantly scaled back its production in 2024 compared with the previous year. The reduction was mainly due to challenging market conditions, new model ramp-ups and temporary supply constraints. Illustration: C3 Visual Lab Production of fully electric vehicles (battery electric vehicles, BEVs) fell sharply in 2024. In the reporting year, 158,343 (196,761) BEVs were manufactured, a decrease of 19.5 percent. The share of fully electric vehicles as a percentage of total car production of the Brand Group Progressive thus amounted to 9.4 (10.0) percent. The decline was due mainly to a challenging over- all market environment, tougher competition and significantly lower overall demand for fully electric vehicles. In the year under review, the number of plug-in hybrids (PHEVs) produced was down by 19.1 percent to 77,144 (95,401) vehicles. Production at global sites in 2024 In 2024, a total of 558,597 (667,753) vehicles were produced at the German sites, a significant decline of 16.3 percent compared with the previous year.",37,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +112,audi.pdf,"The model ramp-ups for the Audi A5, Audi A6 e-tron and Audi Q6 e-tron in the reporting year had a negative impact on production volume. 336,783 (403,874) vehicles were manufactured at the Ingolstadt site. The Audi brand produced 135,307 (162,734) premium models in Neckarsulm. During the reporting period, a total of 86,507 (101,145) fully electric models of the Audi Q4 e-tron line were produced at the Volkswagen multi-brand site in Zwickau. In Europe, production at the Bratislava site was also down by 15.1 percent to 103,070 (121,418) vehicles. In the first half of the year, supply constraints with V6 and V8 engines severely impacted the production volume of Audi premium SUVs at the Volkswagen multi-brand site. A total of 15,212 (53,555) fully electric models were built at the Audi site in Brussels in the 2024 reporting year. This sharp drop was due to necessary production adjustments for the Audi Q8 e-tron8 as a result of declining incom- ing orders. Production at the Brussels site was discontinued at the end of February 2025.",37,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +113,audi.pdf,"This sharp drop was due to necessary production adjustments for the Audi Q8 e-tron8 as a result of declining incom- ing orders. Production at the Brussels site was discontinued at the end of February 2025. The plant in Győr, Hungary, produced 161,985 (176,338) Audi vehicles, a decrease of 8.1 percent, partly due to the end of pro- duction of the Audi TT. At the Mexican plant in San José Chiapa, the brand group manu- factured 144,638 (175,626) vehicles of the Audi Q5 product line, with production down 17.6 percent and therefore well below the previous year’s level. This reduction in production volume was due to the model ramp-up of the Audi Q5. In China, the associated companies FAW-Volkswagen and SAIC Volkswagen produced a total of 608,536 (669,902) Audi brand vehicles in 2024. The year-on-year decline of 9.2 percent reflected the fiercer competitive environment on the Chinese market. Produktion 1.692.152 Gesamt 2024 1.960.442 Gesamt 2023 501 469 453 402 514 415 in Tsd.",37,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +114,audi.pdf,"Produktion 1.692.152 Gesamt 2024 1.960.442 Gesamt 2023 501 469 453 402 514 415 in Tsd. Automobilen 2023 2024 493 405 Q1 Q2 Q3 Q4 -13,7 % Production of the Brand Group Progressive, quarterly trend – 13.7% Total 2024 Total 2023 1,692,152 1,960,442 ⁷ Lamborghini Revuelto: fuel consumption (weighted combined): 11.9 l/100 km; electric power consumption (weighted combined): 10.1 kWh/100 km; CO₂ emissions (weighted combined): 276 g/km; CO₂ class (weighted combined): G; fuel consumption with empty battery (combined): 17.8 l/100 km; CO₂ class with empty battery: G.",37,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +115,audi.pdf,"⁸ Audi Q8 e-tron: electric power consumption (combined): 28.0–19.5 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. in thousand cars Produktion 1.692.152 Gesamt 2024 1.960.442 Gesamt 2023 501 469 453 402 514 415 in Tsd. Automobilen 2023 2024 493 405 Q1 Q2 Q3 Q4 -13,7 %",37,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +116,audi.pdf,"FinanceStrategy & Company ESG Appendix 38 Audi Report 2024 Deliveries Deliveries by the Brand Group Progressive fell due to challenging economic conditions, a highly competitive market environment and limited supply ability. I n fiscal year 2024, the Brand Group Progressive delivered a total of 1,692,548 (1,918,912) cars, a decline of 11.8 percent compared with the previous year. Deliveries of the Audi brand amounted to 1,671,218 (1,895,240) vehicles, also a decline of 11.8 percent. A difficult macroeconomic environment, intense competition and temporary supply difficulties, especially in con- nection with V6/V8 engines, were all negative factors. The delivery figures in the reporting year were also influenced by a large num- ber of model changes and model launches, as new models will only gradually impact volumes in the markets. These included the fully electric Audi Q6 e-tron and Audi A6 e-tron models, the new Audi A5 and the new Audi Q5. The past year was therefore part of a transi- tion phase towards a new product portfolio.",38,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +117,audi.pdf,"The past year was therefore part of a transi- tion phase towards a new product portfolio. With a clear product and technology roadmap, the Audi brand is rejuvenating its product portfolio with over 20 new Audi models in 2024 and 2025. Lamborghini continued the strong development of recent years and posted another record year with 10,687 (10,112) vehicles delivered and growth of 5.7 percent. The Lamborghini Revuelto7 contributed to this successful development with 1,406 units in the year of its market launch. Under challenging market condi- tions and likewise impacted by model changes, the Bentley brand delivered 10,643 (13,560) luxury cars to customers, 21.5 percent fewer than in the previous year. With 54,495 (58,224) motor- cycles delivered, Ducati saw a decline of 6.4 percent. The Brand Group Progressive delivered 164,480 (178,429) fully electric Audi models (BEVs) to customers in the reporting year, 7.8 percent fewer than in the previous year. Nevertheless, fully electric vehicles increased their share of deliveries from the Brand Group Progressive from 9.3 percent to 9.7 percent.",38,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +118,audi.pdf,"Nevertheless, fully electric vehicles increased their share of deliveries from the Brand Group Progressive from 9.3 percent to 9.7 percent. The best-selling fully electric model line was again the Audi Q4 e-tron with 107,697 (111,735) vehicles. A total of 14,991 units of the new Audi Q6 e-tron were handed over to customers in 2024, with the market launch taking place in the third quarter of 2024. A total of 88,148 plug-in hybrids (PHEVs) were also delivered, bringing the share of electrified vehicles to 14.9 percent in the reporting year. Deliveries of high-performance models from Audi Sport GmbH fell by 13.7 percent to 41,227 (47,768) vehicles in the 2024 reporting year. Besides model changes, which will only gradually affect vol- umes, the limited availability of parts for individual product lines also had a negative impact on delivery figures. In the SUV segment, the brand group delivered a total of 851,212 (943,548) vehicles to customers, 9.8 percent fewer than in the previous year. The SUV share rose slightly compared with the previous year to 50.3 (49.2) percent.",38,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +119,audi.pdf,"The SUV share rose slightly compared with the previous year to 50.3 (49.2) percent. At 297,912 (331,928) vehicles, the Audi Q5 was once again the best-selling Audi model in the reporting year despite the model change. Overview of delivery figures in the core regions In Europe, the Brand Group Progressive delivered 670,859 (754,549) vehicles, a decrease of 11.1 percent compared with the previous year. Deliveries in the German domestic market fell substantially by 21.2 percent to 200,009 (253,920) units. Deliveries also fell in major Western European markets includ- ing the UK (–10.9 percent to 124,255 vehicles), France (–3.2 percent to 48,599 vehicles) and Spain (–4.2 percent to 39,215 vehicles), while Italy (+1.1 percent to 67,837 vehicles) recorded a slight increase. In the US automotive market, deliveries were down by 13.7 percent to 202,969 (235,178) vehicles. In China – the world’s largest single market – the brand group ended 2024 with 653,016 (732,893) vehicles delivered.",38,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +120,audi.pdf,"In China – the world’s largest single market – the brand group ended 2024 with 653,016 (732,893) vehicles delivered. This decline of 10.9 percent was due in particular to the intensive competitive situation. The above figure includes 598,778 (664,607) vehicles manufactured locally by associated Chinese companies. Illustration: C3 Visual Lab ⁷ Lamborghini Revuelto: fuel consumption (weighted combined): 11.9 l/100 km; electric power consumption (weighted combined): 10.1 kWh/100 km; CO₂ emissions (weighted combined): 276 g/km; CO₂ class (weighted combined): G; fuel consumption with empty battery (combined): 17.8 l/100 km; CO₂ class with empty battery: G. in Tsd.",38,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +121,audi.pdf,"Automobilen 1.692.548 Gesamt 2024 1.918.912 Gesamt 2023 2023 2024 422 402 498 442 485 407 514 441 Q1 Q2 Q3 Q4 -11,8 % Deliveries of the Brand Group Progressive, quarterly trend – 11.8% Total 2024 Total 2023 1,692,548 1,918,912 in thousand carsin Tsd. Automobilen 1.692.548 Gesamt 2024 1.918.912 Gesamt 2023 2023 2024 422 402 498 442 485 407 514 441 Q1 Q2 Q3 Q4 -11,8 %",38,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +122,audi.pdf,"FinanceStrategy & Company ESG Appendix 39 Audi Report 2024 7 Lamborghini Revuelto: fuel con- sumption (weighted combined): 11.9 l/100 km; electric power consump- tion (weighted combined): 10.1 kWh/100 km; CO₂ emissions (weighted combined): 276 g/km; CO₂ class (weighted combined): G; fuel consumption with empty battery (com- bined): 17.8 l/100 km; CO₂ class with empty battery: G. 8 Audi Q8 e-tron: electric power consumption (com- bined): 28.0–19.5 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 9 Detailed figures for fuel/electric power consumption and emissions can be found on page 161. 10 The table includes deliveries of 598,778 (664,607) vehicles manufac- tured locally by Chinese associated companies and available and sold exclusively in China.",39,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +123,audi.pdf,"10 The table includes deliveries of 598,778 (664,607) vehicles manufac- tured locally by Chinese associated companies and available and sold exclusively in China. 11 Vehicle is/was man- ufactured locally by associated compa- nies and available and sold exclusively in China. 12 The Audi e-tron is no longer offered for sale as a new pas- senger car on the German market. 13 Audi e-tron GT: electric power consumption (com- bined): 21.1–18.0 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 2024 2023 ∆ in % Audi A1 59,363 72,221 –17.8 Audi Q2 71,637 90,823 –21.1 Audi Q2 L e-tron11 18 250 –92.8 Audi A3 197,622 234,547 –15.7 Audi Q3 215,174 221,398 –2.8 Audi Q4 e-tron 107,697 111,735 –3.6 Audi TT 1,826 9,",39,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +124,audi.pdf,"7 Audi Q3 215,174 221,398 –2.8 Audi Q4 e-tron 107,697 111,735 –3.6 Audi TT 1,826 9,233 –80.2 Audi A4 193,780 236,744 –18.1 Audi A5 71,817 77,474 –7.3 Audi Q5 297,912 331,928 –10.2 Audi Q5 e-tron11 6,002 5,207 15.3 Audi Q6 e-tron 14,991 462 X Audi Q611 5,300 4,561 16.2 Audi A6 243,364 266,932 –8.8 Audi A7 38,314 32,910 16.4 Audi Q8 e-tron8 / Audi e-tron12 28,216 49,001 –42.4 Audi e-tron GT13 7,097 11,203 –36.7 Audi Q7 57,262 72,396 –20.9 Audi Q8 36,983 43,760 –15.5 Audi A8 14,",39,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +125,audi.pdf,"203 –36.7 Audi Q7 57,262 72,396 –20.9 Audi Q8 36,983 43,760 –15.5 Audi A8 14,955 20,293 –26.3 Audi R8 1,429 1,591 –10.2 Vehicles before market introduction 459 571 –19.6 Audi brand 1,671,218 1,895,240 –11.8 Bentley Continental 3,741 4,215 –11.2 Bentley Flying Spur 2,544 3,405 –25.3 Bentley Bentayga 4,358 5,940 –26.6 Bentley brand 10,643 13,560 –21.5 Lamborghini Urus 5,662 6,087 –7.0 Lamborghini Huracán 3,609 3,962 –8.9 Lamborghini Aventador 10 63 –84.1 Lamborghini Revuelto7 1,406 0 X Lamborghini brand 10,687 10,112 5.7 Total cars 1,692,548 1,918,912 –11.",39,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +126,audi.pdf,"406 0 X Lamborghini brand 10,687 10,112 5.7 Total cars 1,692,548 1,918,912 –11.8 Car deliveries to customers by model series9, 10 Fully electric vehicles (BEV)",39,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +127,audi.pdf,"FinanceStrategy & Company ESG Appendix 40 Audi Report 2024 T he revenue of the Audi Group declined to EUR 64,532 (69,865) million in the 2024 fiscal year. This 7.6 percent decline year on year is primarily due to lower vehicle sales – also influenced by temporary supply constraints, a large number of model changes and model launches – as well as intense competition. Revenue from the sale of cars of the Audi brand dropped to EUR 41,577 (49,091) million, with the fully electric Audi Q8 e-tron8 in particular recording a sharp decline due to the early termination of production at the Brussels site and the Audi Q5 underperforming as a result of the model changeover. Conversely, the new Audi Q6 e-tron made a positive contribution to the overall figure. The Lamborghini brand once again increased its revenue from the vehicle business in the reporting period, achieving growth of 15.5 percent to EUR 2,848 (2,466) million. The Bentley brand recorded a drop in revenue from the sale of automobiles to EUR 2,422 (2,772) million.",40,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +128,audi.pdf,"The Bentley brand recorded a drop in revenue from the sale of automobiles to EUR 2,422 (2,772) million. Financial situation With revenue of EUR 840 (888) million, the motorcycle business of the Ducati brand suffered a slight decline. Other revenue of the Audi Group amounted to EUR 16,450 (14,853) million, an increase of 10.7 percent. Within this figure, parts deliveries for local production in China increased substan- tially, while the genuine parts business continued the positive trend of previous years with further revenue growth. Revenue by region showed a heterogeneous picture in the year under review. The Audi Group posted a decline in revenue of 5.5 percent in Europe, to EUR 32,925 (34,836) million. Revenue in the US also fell noticeably by 16.0 percent to EUR 12,511 (14,892) million. In China,14 on the other hand, revenue grew slightly by 2.9 percent to EUR 11,767 (11,430) million. The cost of goods sold fell by almost the same percentage as a result of the lower sales volume. This figure also includes lower material and purchase costs.",40,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 1.0 " +129,audi.pdf,"The cost of goods sold fell by almost the same percentage as a result of the lower sales volume. This figure also includes lower material and purchase costs. Financial performance Operating profit of the Audi Group down in a difficult market environment, due in part to restructuring expenses; net cash flow at a solid level. Condensed income statement, Audi Group EUR million 2024 2023 ∆ in % Revenue 64,532 69,865 –7.6 Cost of goods sold –54,419 –58,576 –7.1 Gross profit from sales 10,113 11,289 –10.4 Distribution expenses –3,352 –3,377 –1.5 Administrative expenses –762 –771 –1.2 Other operating result –2,123 –860 146.8 Operating profit 3,903 6,280 –37.9 ROS (return on sales) in % 6.0 9.0 –3.0 ppt.",40,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 1.0 " +130,audi.pdf,"Financial result 1,097 1,423 –22.9 Profit before tax 5,000 7,703 –35.1 Income tax expense –811 –1,443 –43.8 Profit after tax 4,189 6,260 –33.1 8 Audi Q8 e-tron: electric power consumption (combined): 28.0–19.5 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 14 As well as the revenue from Audi vehicles exported to China (FBU), this line item also includes revenue from deliveries of parts to China. Other income from the China business is reported in the financial result.",40,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +131,audi.pdf,"FinanceStrategy & Company ESG Appendix 41 Audi Report 2024 Key figures for research and development Both distribution expenses and general administrative expenses remained almost unchanged compared with the previous year. The other operating result decreased very significantly compared with the previous year. This was mainly due to the expenses incurred in connection with restructuring following the termina- tion of production at the Brussels site in February 2025. Increased residual value risks as a result of falling prices on the used car market also had a negative impact compared with the previous year. By contrast, currency effects had a positive impact. Valuation effects from commodity hedging were of minor importance in the reporting year, as commodity futures were put into a hedging relationship in the current financial year and therefore transferred to hedge accounting. The effects of changes in fair value are now mainly recognized in equity. Operating profit marked by restructuring expenses At EUR 3,903 (6,280) million, the operating profit of the Audi Group was well below the previous year’s figure. The operating return on sales amounted to 6.0 (9.0) percent. Restructuring expenses of around EUR 1.6 billion in connection with the termi- nation of production at the Brussels site, as described above, were the largest negative factor here.",41,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +132,audi.pdf,"Restructuring expenses of around EUR 1.6 billion in connection with the termi- nation of production at the Brussels site, as described above, were the largest negative factor here. In addition to early deprecia- tion and amortization, expenditure from a change in production methods and legal and consulting costs, this figure also includes employee-related provisions such as social plans. 15 This ratio shows research and development activities relative to revenue. 16 This ratio expresses capitalized development costs in relation to research and development activities. EUR million 2024 2023 ∆ in % Research and development activities 4,603 5,436 –15.3 Capitalized development costs 2,141 2,705 –20.8 Amortization of and impairment losses on capitalized development costs 1,683 1,292 30.2 = Research and development expenditure 4,144 4,024 3.0 Key figures for research and development in the Audi Group The research and development ratio15 in the year under review was 7.1 (7.8) percent. Research and development activities declined significantly. This was due, among other things, to fewer alloca- tions within the Volkswagen Group for new platforms and modu- lar systems due to vehicle ramp-ups that had already taken place.",41,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +133,audi.pdf,"Research and development activities declined significantly. This was due, among other things, to fewer alloca- tions within the Volkswagen Group for new platforms and modu- lar systems due to vehicle ramp-ups that had already taken place. The capitalization ratio16 of 46.5 (49.8) percent was slightly below the prior-year level. The ratio reflects the present product life cycle of the model range and also demonstrates the ability of the future product portfolio to retain its value. The slight decrease in the ratio is due to the largely completed development of the PPE (Pre- mium Platform Electric) and PPC (Premium Platform Combustion). Amortization of and impairment losses on capitalized develop- ment costs rose sharply by 30.2 percent due to the new model ramp-ups in the reporting year. Overall, research and development expenditure was therefore slightly up on the previous year.",41,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +134,audi.pdf,"FinanceStrategy & Company ESG Appendix 42 Audi Report 2024 Financial result, Audi Group EUR million 2024 2023 ∆ in % Result from investments accounted for using the equity method 1 173 –99.7 Net interest result 395 464 –14.9 Other financial result 701 785 –10.8 Financial result 1,097 1,423 –22.9 of which China business18 651 915 –28.8 17 Financial brand settlement agreed between AUDI AG and Volkswagen AG and performance-related income for China business in connection with associated companies. 18 Includes the result from investments accounted for using the equity method: FAW-Volkswagen Automotive Co., Ltd., Volkswagen Automatic Transmission (Tianjin) Co., Ltd., SAIC Volkswagen Automotive Co., Ltd., Audi FAW NEV Co., Ltd., and brand settlement for China business. Financial result of the Audi Group The financial result of the Audi Group decreased to EUR 1,097 (1,423) million in the past fiscal year. This was driven by the decline in the net interest result. Increased interest expenses due to the compounding of non-current provisions were not offset by higher interest income.",42,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +135,audi.pdf,"This was driven by the decline in the net interest result. Increased interest expenses due to the compounding of non-current provisions were not offset by higher interest income. In addition, the profit from participations accounted for using the equity method also fell, mainly due to ramp-up losses recognized on a pro rata basis for Audi FAW NEV Co. in Changchun, China, which started production in December 2024. The other financial result, mainly comprising the brand settlement17 agreed with Volkswagen AG for the China business, also decreased slightly. The Chinese business included in the financial result amounted to EUR 651 (915) million in 2024. Profit after tax considerably lower than in the previous year In the 2024 fiscal year, the Audi Group posted a profit before tax of EUR 5,000 (7,703) million. The return on sales before tax was 7.7 (11.0) percent. Profit after tax came to EUR 4,189 (6,260) million.",42,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +136,audi.pdf,"FinanceStrategy & Company ESG Appendix 43 Audi Report 2024 Illustration: C3 Visual Lab Quarterly development > Deliveries impacted by model changes and product launches > Operating profit adversely impacted by substantial restructuring expenses for Brussels site > Strong year-end with best quarterly result in 2024 > Deliveries stabilizing thanks to improved model avail- ability > Further increase in resid- ual value risks for used vehicles > Improved supply situation leads to first positive mix effects > Supply difficulties, particu- larly for high-margin V6/V8 engines, logistics delays in the US and strike at the Mexico plant > BEV deliveries declining in Europe, partly due to cancel- lation or reduction of subsidy programs for fully electric vehicles Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 20232024 Operating profit in EUR million, ROS in % Revenue in EUR million Deliveries in cars Q1 Q2 Q3 Q4 1,692,548 (1,918,912) 484,880 514,484 421,824 497,724 407,390 441,167 402,048 441,943 (69,865)64,",43,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +137,audi.pdf,"692,548 (1,918,912) 484,880 514,484 421,824 497,724 407,390 441,167 402,048 441,943 (69,865)64,532 17,286 16,221 19,475 16,883 17,214 15,322 18,271 13,725 (6,280)3,903 6.0% (9.0%) 1,601 9.3% 106 0.7% 466 3.4% 1,686 8.7%1,515 8.8% 1,816 10.8% 1,815 9.9% 1,178 7.3% Q1 Q2 Q3 Q4",43,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 1.0 " +138,audi.pdf,"FinanceStrategy & Company ESG Appendix 44 Audi Report 2024 Net worth T otal assets of the Audi Group as of December 31, 2024, were down to EUR 73,097 (73,447) million. The non-current assets of the Audi Group remained virtually unchanged. The increase in property, plant and equipment and in- tangible assets was offset by decreases in investments accounted for using the equity method and lower other financial assets. Current assets were down slightly as of December 31, 2024. While cash and cash equivalents decreased substantially and invento- ries were slightly lower, trade receivables recorded a noticeable increase. Equity ratio remains high As of December 31, 2024, the equity of the Audi Group increased to EUR 35,882 (33,839) million, giving an equity ratio of 49.1 (46.1) percent. Profit after tax had a positive effect on retained earnings. Non-current liabilities decreased significantly at the end of 2024, mainly due to lower non-current provisions. Current liabilities fell mainly as a result of reduced liabilities from profit and loss transfers and performance-related remuneration as well as a decrease in trade payables.",44,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +139,audi.pdf,"Current liabilities fell mainly as a result of reduced liabilities from profit and loss transfers and performance-related remuneration as well as a decrease in trade payables. This was offset by a marked increase in provisions, primarily in connection with the termina- tion of production at the Brussels site. Condensed balance sheet, Audi Group EUR million Dec. 31, 2024 Dec.",44,"[Guess]: No +[Confidence]: 1.0","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 1.0 " +140,audi.pdf,"This was offset by a marked increase in provisions, primarily in connection with the termina- tion of production at the Brussels site. Condensed balance sheet, Audi Group EUR million Dec. 31, 2024 Dec. 31, 2023 ∆ in % Non-current assets 35,318 35,230 0.3 Current assets 37,703 38,199 –1.3 of which inventories 7,837 7,966 –1.6 of which trade receivables 5,932 5,598 6.0 of which cash and cash equivalents 12,229 13,436 –9.0 Assets held for sale 76 18 X Total assets 73,097 73,447 -0.5 Equity 35,882 33,839 6.0 Liabilities 37,215 39,608 -6.0 of which non-current liabilities 14,332 15,228 –5.9 of which current liabilities 22,884 24,380 –6.1 of which trade payables 8,275 8,839 –6.4 Total equity and liabilities 73,097 73,447 –0.5",44,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +141,audi.pdf,"FinanceStrategy & Company ESG Appendix 45 Audi Report 2024 Additions to capitalized development costs in the reporting period were down, partly due to the current product life cycle of the model range and the many product launches. At the same time, invest- ments in participations were also lower than in the previous year. Net cash flow remains solid and net liquidity high Net cash flow of the Audi Group in the year under review came to EUR 3,072 (4,740) million, which was clearly below the strong prior-year level. Cash flow from investing activities totaled EUR –5,994 (–2,799) million and, in addition to the investing activities attributable to operating activities described above, included the investment of fixed-term deposits. In the previous year, this item was primarily impacted by the proceeds from maturing fixed-term deposits. Cash flow from financing activities amounted to EUR –4,099 (–4,312) million. It mainly comprised the profit transfer to Volkswagen AG of EUR –3,831 million for 2023. As of the reporting date, cash funds were down to EUR 12,229 (13,436) million.",45,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +142,audi.pdf,"It mainly comprised the profit transfer to Volkswagen AG of EUR –3,831 million for 2023. As of the reporting date, cash funds were down to EUR 12,229 (13,436) million. The net liquidity of the Audi Group as of December 31, 2024, was EUR 22,847 (23,554) million. I n the 2024 fiscal year, the Audi Group generated cash flow from operating activities of EUR 8,674 (11,135) million. In addition to the decline in profit before tax, the year-on-year decrease was also due to the negative development of working capital in the reporting year. This was primarily attributable to a very steep fall in liabilities, partly as a result of reduced production at the end of the year. The previous year saw an increase in liabilities. Receivables also in- creased noticeably compared with the beginning of 2024, whereas this item had virtually no impact on working capital in 2023. By contrast, a marked increase in provisions had a positive ef- fect, particularly in connection with the termination of production at the Brussels site. The previous year saw a decline in this area.",45,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 1.0 " +143,audi.pdf,"By contrast, a marked increase in provisions had a positive ef- fect, particularly in connection with the termination of production at the Brussels site. The previous year saw a decline in this area. The modest reduction in inventories, which had already fallen slightly in the previous year, also had a positive effect on working capital in the reporting year. Capital expenditure impacted by upfront expenditure for future models Investing activities attributable to operating activities came to EUR –5,602 (–6,395) million in the year under review. Capital expenditure rose noticeably to EUR –3,487 (–3,251) million. This rise was primarily due to licenses acquired within the Volkswagen Group in the fourth quarter for the future use of the Rivian soft- ware architecture. The capex ratio in the year under review was 5.4 (4.7) percent. The investment ratio of the Audi Group, which describes research and development activities as well as capital expenditure as a proportion of revenue, was 12.5 (12.4) percent in the year under review.",45,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +144,audi.pdf,"The investment ratio of the Audi Group, which describes research and development activities as well as capital expenditure as a proportion of revenue, was 12.5 (12.4) percent in the year under review. Financial position Photo: AUDI AG Net cash flow –35.2% EUR 3,072 million Audi Q6 Sportback e-tron: electric power consumption (combined): 18.9–15.6 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A.",45,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +145,audi.pdf,"FinanceStrategy & Company ESG Appendix 46 Audi Report 2024 Condensed cash flow statement, Audi Group 19 Capital expenditure includes investments in property, plant and equipment, investment property and other intangible assets according to the cash flow statement. EUR million 2024 2023 ∆ in % Cash and cash equivalents as of January 1 13,436 9,599 40.0 Cash flow from operating activities 8,674 11,135 –22.1 Investing activities attributable to operating activities –5,602 –6,395 –12.4 of which capital expenditure19 –3,487 –3,251 7.3 of which additions to capitalized development costs –2,141 –2,705 –20.8 of which change in participations –22 –504 –95.6 of which disposal of fixed assets 48 64 –25.1 Net cash flow 3,072 4,740 –35.2 Change in cash deposits and loans extended –392 3,596 X Profit transfer to the Volkswagen Group –3,831 –3,546 8.0 Lease payments, change in miscellaneous financial liabilities –268 –767 –65.0 Change in cash and cash equivalents due to changes in exchange rates 213 –186 X Change in cash and cash equivalents –1,",46,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +146,audi.pdf,"0 Lease payments, change in miscellaneous financial liabilities –268 –767 –65.0 Change in cash and cash equivalents due to changes in exchange rates 213 –186 X Change in cash and cash equivalents –1,207 3,838 X Cash and cash equivalents as of December 31 12,229 13,436 –9.0 Net liquidity as of December 31 22,847 23,554 –3.0 Cash flow from investing activities –5,994 –2,799 114.2 Cash flow from financing activities –4,099 –4,312 –4.9",46,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +147,audi.pdf,"FinanceStrategy & Company ESG Appendix 47 Audi Report 2024 Brand Group Progressive Comparison of deliveries, revenue, operating profit and return on sales: key performance indicators 2024 Audi Deliveries –11.8% 1,671,218 Operating profit EUR million 2,654 –45.3% Revenue EUR million –8.4% 58,129 Return on sales (ROS) 4.6% –3.0 ppt. Bentley Operating profit EUR million 373 –36.6% Return on sales (ROS) 14.1% Deliveries 10,643 –21.5% Revenue EUR million 2,648 –9.9% –6.0 ppt. Year-on-year change Lamborghini Deliveries 10,687 +5.7% Revenue EUR million 3,095 +16.2% Operating profit EUR million 835 +15.5% Return on sales (ROS) 27.0% –0.2 ppt.",47,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +148,audi.pdf,"Ducati Operating profit EUR million –18.4% 91 Deliveries 54,495 –6.4% Revenue EUR million 1,003 –5.8% Return on sales (ROS) 9.1% –1.4 ppt.",47,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +149,audi.pdf,"FinanceStrategy & Company ESG Appendix 48 Audi Report 2024 T he European Union (EU) is increasing its focus on climate change mitigation. The “European Green Deal” and the goal of becoming climate-neutral by 2050 are an expres- sion of the EU’s great ambition and provide the framework for a broad package of measures. The EU taxonomy represents the next logical step on this path and, at the same time, is one of the central measures in the aforementioned package. Its goal is to re- direct capital to sustainable investments while fostering transpar- ency and the long term in financial and economic activity. To this end, the EU Taxonomy Regulation and the associated delegating acts define criteria to make companies’ sustainable business operations uniformly measurable and comparable. At the same time, the EU taxonomy goes beyond the climate change mitiga- tion aspect to require additional compliance with social aspects, for example. The Audi Group is committed to the Paris Climate Agreement and aligns its activities with the 1.5-degree goal. The company plans to be net carbon-neutral by 2050. Voluntary reporting by the Audi Group¹ The Audi Group is a fully consolidated Volkswagen Group company and is therefore not required to provide a separate report in accor- dance with EU taxonomy criteria.",48,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +150,audi.pdf,"Voluntary reporting by the Audi Group¹ The Audi Group is a fully consolidated Volkswagen Group company and is therefore not required to provide a separate report in accor- dance with EU taxonomy criteria. Since fiscal year 2021, the Audi Group has been fostering transparency by publishing a voluntary report of the key figures relating to the EU taxonomy, thus reflect- ing the priority the brands give to ESG (Environmental, Social and Governance) criteria. Sustainability has a central role for the Audi Group and this is to be demonstrated visibly. ¹ For more detailed information on the EU taxonomy, please also read the Annual Report of the Volkswagen Group for 2024. Photo: AUDI AG The EU taxonomy makes sustainable business operations measurable and comparable. Audi makes voluntary disclosures in accordance with the EU Taxonomy Regulation. EU taxonomy Audi Q5 Sportback: fuel consumption (combined): 8.8–5.9 l/100 km; CO₂ emissions (combined): 199–148 g/km; CO₂ class: G–E.",48,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +151,audi.pdf,FinanceStrategy & Company ESG Appendix 49 Audi Report 2024 What makes an economic activity EU taxonomy-eligible or EU taxonomy-aligned? Economic activity YES NO Is listed in the EU taxonomy? Activity is “not taxonomy-eligible” NO Activity is “not taxonomy-eligible” Contributes to achieving one of the following environmental objectives? Climate change mitigation Climate change adaptation Sustainable use and protection of water and marine resources Pollution prevention and control Transition to a circular economy Protection and restoration of biodiversity and ecosystems Activity is “EU taxonomy-eligible” Fulfills the screening criteria? Has no negative impact on other environmental objectives? Complies with the minimum safeguards? Activity is “EU taxonomy-aligned” YES YES YES YES NO Activity is “not taxonomy-aligned” NO Activity is “not taxonomy-aligned” NO Activity is “not taxonomy-aligned” Illustration: C3 Visual Lab,49,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +152,audi.pdf,"FinanceStrategy & Company ESG Appendix 50 Audi Report 2024 The Audi Group’s business model covers the development, production and selling of vehicles and the associated activities. Within the meaning of the EU Taxonomy Regulation, activities in these areas are suited to making a substantial contribution to the environmental goal of climate change mitigation through the expansion of clean or climate- neutral mobility. Under the “climate change mitigation” environmental objective, the Audi Group allocates all the itemized activities to the economic activities “Manufacture of low-carbon technologies for transport” and “Manufac- ture of automotive and mobility components.” These apply to all cars and motorcycles produced, irrespective of their drive technology, and also cover genuine parts. The second economic activity permits the consideration of components as well because these play a key role in reducing green- house gas emissions. This relates in particular to the sale to third parties of produced engines and powertrains for fully electric vehicles. In the Audi Group’s current estimation, hedging transac- tions and individual activities of subordinate importance, which are reported as other sales revenue in Audi’s consol- idated financial statements, should not be assigned to an economic activity and are therefore not deemed in the first instance to be taxonomy-eligible.",50,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +153,audi.pdf,"Other activities which are directly connected with the aforementioned vehicle-related business and, in Audi’s estimation, should also be assigned to these economic activities, are currently classified as not taxonomy-eligible. On the basis of the requirements pub- lished by the EU, it was not clear which economic activity they should be assigned to in accordance with the EU taxon- omy. These activities particularly include the sale of other engines and powertrains, as well as parts deliveries and production under license by third parties, which are also reported as other sales revenue. Taxonomy-eligible > Contribution to the environmental goal of climate change mitigation > Manufacture of low-carbon technologies for transport > Manufacture of automotive and mobility components 1 The key performance indicator for fulfilling the screening criteria is the CO₂ emissions of the vehicles produced by the Audi Group. For this reason, CO₂ emissions in our vehicle-related business have been analyzed in accordance with WLTP by model and powertrain type. In this way, those vehicles have been identified among all of the tax- onomy-eligible vehicles that meet the screening criteria and with which the substantial contribution to climate change mitigation is measured. Until December 31, 2025, a threshold value of < 50 g/km CO₂ (WLTP) will apply.",50,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +154,audi.pdf,"Until December 31, 2025, a threshold value of < 50 g/km CO₂ (WLTP) will apply. These vehicles include the Audi Group’s fully electric vehicles (BEV): > Audi Q4 e-tron, Audi e-tron²/Audi Q8 e-tron,³ Audi e-tron GT,⁴ Audi Q6 e-tron and Audi A6 e-tron In addition, most of the plug-in hybrids (PHEV) produced by the Audi Group generally fulfill the screening criteria: > Vehicles of the model lines Audi A3, Q3, A6, A7 and most of the Audi Q5, Q7, Q8 and A8 model lines as well as the Bentley Continental For fulfilling the screening criteria, a CO₂ threshold of 0 g/km already applies to motorcycles. None of the motorcycles in the Ducati product range met this require- ment. At the same time, development activities for fully electric motorcycles also took place in the 2024 fiscal year.",50,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +155,audi.pdf,"None of the motorcycles in the Ducati product range met this require- ment. At the same time, development activities for fully electric motorcycles also took place in the 2024 fiscal year. Fulfillment of screening criteria 2 > Vehicle CO₂ emissions > BEV = 0 g/km CO₂ and PHEV < 50 g/km CO₂ by 2025 ² The Audi e-tron is no longer offered for sale as a new passenger car on the German market. ³ Audi Q8 e-tron: electric power consumption (combined): 28.0–19.5 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. ⁴ Audi e-tron GT: electric power consumption (combined): 21.1–18.0 kWh/100 km; CO2 emissions (combined): 0 g/km; CO2 class: A. Illustration: C3 Visual Lab CO₂",50,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +156,audi.pdf,"FinanceStrategy & Company ESG Appendix 51 Audi Report 2024 The minimum safeguards consist of the OECD Guidelines for Multinational Enterprises, the United Nations Guiding Principles on Business and Human Rights, the Fundamen- tal Conventions of the International Labour Organization (ILO) and the International Bill of Human Rights. The Audi Group is aware of its corporate responsibility for human rights, is committed to these conventions and declarations and affirms its acceptance of the content and principles specified therein. The Volkswagen Group has carried out and completed human rights risk assessments for all Audi Group companies. This also includes all sites reviewed as part of the DNSH criteria. This risk analysis took account of the results and risk assessments from the previous year. For the risks identified in the analysis, the companies received risk-specific measures which had to be imple- mented. The Group constantly monitors the status of implementation of these measures. The result of these assessments is that the requirements of the minimum safeguards were fulfilled in the year under review.",51,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +157,audi.pdf,"The Group constantly monitors the status of implementation of these measures. The result of these assessments is that the requirements of the minimum safeguards were fulfilled in the year under review. Minimum safeguards Compatibility with other environmental objectives (Do No Significant Harm, DNSH) Ecologically sustainable economic activities within the meaning of the EU taxonomy must not only contribute to at least one of the defined environmental objectives but may also have no negative impact on the other environ- mental objectives. The DNSH (Do No Significant Harm) criteria for economic activities define the minimum requirements which must be fulfilled in order to exclude any significant harm to any of the other environmental objectives. In the year under review, the DNSH criteria for the economic activities “Manufacture of low-carbon tech- nologies for transport” and “Manufacture of automotive and mobility components” for the Audi Group were ana- lyzed to the greatest possible extent at the higher level of the Volkswagen Group. For the vehicle-related business, the analysis was performed at the level of the individual production sites which manufacture or will in the future manufacture Audi vehicles that fulfill the screening crite- ria named under step 2 above or will do so in the future in accordance with the five-year plan.",51,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +158,audi.pdf,The Volkswagen Group’s Annual Report presents the key interpretations and analyses used by the Volkswagen Group to examine whether any substantial harm has been done to the other environmental objectives. The result of these assessments is that the Audi Group’s vehicle-producing sites as well as the fully electric vehicles produced there and their compo- nents fulfilled the DNSH criteria in the year under review. 4 > No significant harm to the other environmental objectives > Central Volkswagen assessment: requirements fulfilled for fully electric Audi models > Upholding human rights and meeting minimum social standards > Central Volkswagen assessment: criteria fulfilled by Audi 3 Illustrations: C3 Visual Lab,51,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +159,audi.pdf,"FinanceStrategy & Company ESG Appendix 52 Audi Report 2024 Audi Group key figures in accordance with the EU taxonomy5 Revenue of the Audi Group in 2024 totaled EUR 64.5 (69.9) billion (see page 33). Of this amount, EUR 52.5 (59.3) billion, or 81.3 (84.9) percent, was attributable to the economic activities “Manufacture of low-carbon technologies for transport” and “Manufacture of automotive and mobility compo- nents” and is therefore classified as taxonomy- eligible. This mainly includes the sales revenue from new and used vehicles, including motorcycles, from genuine parts, from extended warranties, and from the rental and lease business. Of this amount, EUR 6.6 (11.4) billion, or 10.2 (16.3) percent, fulfilled the screening criteria. Because it satisfies the DNSH criteria and minimum safeguards, this proportion of sales revenue can be classified as taxonomy-aligned.6 Revenue ⁵ The EU taxonomy contains wording and terms which are still subject to interpretation. Their later clarification by the EU may result in reporting changes. There is a risk that key figures reported as taxonomy-aligned might need to be assessed differently.",52,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +160,audi.pdf,"Their later clarification by the EU may result in reporting changes. There is a risk that key figures reported as taxonomy-aligned might need to be assessed differently. The Audi Group’s interpretation is shown below. ⁶ In the reporting year, the focus of the DNSH audit was on fully electric vehicles (BEV) and associated automotive components. As a result of the extensive changes to the require- ments, it was no longer possible to provide evidence for PHEVs. EUR 64.5 billion 10.2% 81.3% Revenue, Audi Group of which taxonomy-aligned of which taxonomy-eligible Photo: AUDI AG | Illustration: C3 Visual Lab Audi S e-tron GT: electric power consumption (combined): 19.7–18.0 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A.",52,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +161,audi.pdf,"FinanceStrategy & Company ESG Appendix 53 Audi Report 2024 In accordance with the EU taxonomy, operating expen- diture covers non-capitalized research and develop- ment costs, expenditure for maintenance and repair, and short-term leases. All operating expenditure at- tributable to the vehicle-related business is associated with the economic activity “Manufacture of low-carbon technologies for transport” and was therefore classi- fied as taxonomy-eligible. Thus, of the Audi Group’s total operating expenditure: > taxonomy-eligible operating expenditure: EUR 2.9 (3.1) billion or 100 (100) percent > taxonomy-aligned operating expenditure: EUR 1.4 (1.3) billion or 46.0 (41.0) percent The slight increase in taxonomy-aligned operating expenditure – both absolute and proportionate – is attributable to the growing number of environmen- tally sustainable projects in accordance with the EU taxonomy. Operating expenditure 46.0% of which taxonomy-aligned EUR 2.9 billion 100% taxonomy-eligible operating expenditure Illustrations: C3 Visual Lab In accordance with the EU taxonomy, capital expendi- ture covers additions to intangible assets, property, plant and equipment as well as leasing and rental assets.",53,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +162,audi.pdf,"All capital expenditure attributable to the vehicle-related business was associated with the economic activity “Manufacture of low-carbon technol- ogies for transport.” No substantial capital expenditure was assigned to the other activities in the vehicle- related business (especially engines, powertrains, parts deliveries and franchises) that were initially not included. In fiscal year 2024, additions in the Audi Group amounted to > EUR 3.1 (3.3) billion from property, plant and equipment > EUR 2.7 (3.0) billion from intangible assets > EUR 0.1 (0.1) billion from leasing and rental assets Taxonomy-eligible capital expenditure thus totaled EUR 5.9 (6.4) billion or 100 percent. Capital expen- diture relating to vehicles that meet the screening criteria amounted to EUR 2.0 (2.8) billion. Taking into account the DNSH criteria and minimum safeguards, 33.9 (43.2) percent of total capital expenditure was taxonomy-aligned in 2024. The percentage decrease is largely attributable to the lower investments in fully electric vehicles. Capital expenditure 33.9% of which taxonomy-aligned EUR 5.9 billion 100% taxonomy-eligible capital expenditure",53,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +163,audi.pdf,"FinanceStrategy & Company ESG Appendix 54 Audi Report 2024 Report on expected developments The global economy is expected to grow at a slightly slower pace in 2025 than in the reporting year. Global demand for passenger cars is likely to develop unevenly from region to region and be slightly above the previous year’s level. Audi expects another challenging fiscal year in 2025 in an environment that remains volatile and challenging. T he Audi Group assumes that, overall, global economic output will grow with slightly less momentum in 2025 than in 2024. Declining inflation in key economic regions and the resulting easing of monetary policy should have a positive effect on private demand. Audi continues to see risks in the increasing fragmentation of the global economy and protectionist tendencies, as well as in turbulence on the financial markets and structural deficits in individual countries. Growth prospects will also be adversely affected by ongoing geopolitical tensions and conflicts, with risks in particular from the Russia-Ukraine conflict, the disputes in the Middle East and uncertainties in connection with the political direction of the US. The Audi Group assumes that both advanced economies and emerging markets will be slightly less dynamic on average than in the reporting year. Development in the automotive industry is closely tied to the course of the global economy.",54,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +164,audi.pdf,The Audi Group assumes that both advanced economies and emerging markets will be slightly less dynamic on average than in the reporting year. Development in the automotive industry is closely tied to the course of the global economy. Audi expects the intensity of com- petition in the international automotive industry to continue Photo: AUDI AG Audi RS Q8 SUV performance: fuel consumption (combined): 13.6–13.1 l/100 km; CO₂ emissions (combined): 310–297 g/km; CO₂ class: G.,54,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +165,audi.pdf,"FinanceStrategy & Company ESG Appendix 55 Audi Report 2024 to rise. Crisis-related disruptions of the global supply chain and the resulting effects on vehicle availability could have a negative impact on new registrations. Sudden or escalating geopolitical tensions and conflicts could also result in rising material prices and falling energy availability in particular. The Audi Group expects passenger car markets to develop at different rates in the various regions in 2025 but that this development will be largely positive. Overall, global sales volumes for new vehicles are likely to be slightly higher than those of the previous year. In Europe, the Brand Group Progressive expects new registra- tions in the overall passenger car market in 2025 to be noticeably above the level of the year under review. In view of challenging CO₂ regulations, increased competitive pressure is to be expected for electrified vehicles. For the German passenger car market, it is expected that the volume of new registrations will slightly exceed the prior-year level. In the markets for passenger cars and light commercial vehicles (up to 6.35 t) in the US, sales volumes in 2025 are expected to be on a par with the previous year. Models in the SUV and pickup segments are likely to stay the main focus of demand.",55,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +166,audi.pdf,"Models in the SUV and pickup segments are likely to stay the main focus of demand. In addition, it is to be expected that new registrations of fully electric vehicles will see very significant growth. The brand group continues to anticipate that the market volume in China will be on a par with the 2024 figure. Demand for fully electric vehicles is expected to continue and for long-range plug- in hybrid models to grow. Weaker economic development and heightened geopolitical tensions could have a negative impact. In particular, the trade conflict between China and the US will likely continue to weigh on business and consumer confidence unless a solution emerges. Outlook for 2025 Subject to the expected development of the economic environ- ment, the Audi Board of Management currently anticipates that the key performance indicators for the 2025 fiscal year will devel- op as follows: Deliveries of Brand Group Progressive cars to cus- tomers are expected to be between 1.7 and 1.8 million vehicles. The Audi Group expects revenue in the range of EUR 67.5 to 72.5 billion. The operating return on sales (ROS) is likely to be between 7 and 9 percent. The Audi Group is anticipating a net cash flow corridor of EUR 3 to 4 billion.",55,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +167,audi.pdf,"The operating return on sales (ROS) is likely to be between 7 and 9 percent. The Audi Group is anticipating a net cash flow corridor of EUR 3 to 4 billion. In addition, an investment ratio² of between 10 and 12 percent is forecast for fiscal year 2025. The Audi management and the Works Council have agreed on key points for the future-oriented realignment of the German sites. This agreement for the future has created the conditions for a sustainable improvement in efficiency and profitability. Audi is now working with the social partners on the concrete implementation. A financial assessment of all components of the agreement is not possible at this time; the matter is therefore not included in the forecast of the key performance indicators. Anticipated development in the key performance indicators of the Audi Group ¹ This includes delivered Audi models produced locally by associated companies in China and available and sold exclusively in China. ² The investment ratio describes research and development activities and capex as a proportion of revenue.",55,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +168,audi.pdf,² The investment ratio describes research and development activities and capex as a proportion of revenue. Actual 2024 Forecast 2025 Deliveries of cars of the Brand Group Progressive to customers1 1.7 million cars between 1.7 and 1.8 million cars Revenue EUR 64.5 billion between EUR 67.5 and 72.5 billion Operating return on sales (ROS) 6.0% between 7 and 9% Net cash flow EUR 3.1 billion between EUR 3 and 4 billion Investment ratio2 12.5% between 10 and 12%,55,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +169,audi.pdf,"FinanceStrategy & Company ESG Appendix 56 Audi Report 2024 Report on risks and opportunities Early detection and management of risks and opportunities are decisive factors for ensuring the sustained success of the Audi Group. A comprehensive Risk Management System (RMS) and an Internal Control System (ICS) provide the basis for this. Risk Management System in the Audi Group Addressing risks and opportunities constructively and openly is vital for the Audi Group in order to ensure the lasting success of its entrepreneurial activities. The purpose of an effective risk management system is to: > safeguard the company’s strategic, operational and financial goals over the long term, > stabilize and develop the company in accordance with the wishes of its interest groups, > protect long-term viability and competitiveness, > fulfill the company’s far-reaching duty of care with respect to how it handles risks and > fulfill legal requirements, especially the establishment of an early warning system. The Audi Group’s responsible and transparent approach to risks is reflected, among other things, in the formulation of ambitious corporate goals that are based comprehensively on risk/return considerations. These are synchronized both within the Brand Group Progressive and with the Volkswagen Group.",56,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +170,audi.pdf,"These are synchronized both within the Brand Group Progressive and with the Volkswagen Group. In addition to the RMS, the ICS ensures that processes within the Audi Group are compliant and stable and is continuously developed. The ICS covers all material risk-carrying business processes including asso- ciated control activities across division boundaries. The effective- ness of the control activities is verified regularly. Operating principle of the Risk Management System The Risk Management System of the Audi Group is based on the internationally recognized standard of the Committee of Sponsor- ing Organizations of the Treadway Commission (COSO). Risks are Photo: AUDI AG Audi Q7 SUV TFSI e: fuel consumption (weighted combined): 1.4–1.2 l/100 km; electric power consumption (weighted combined): 29.1–27.8 kWh/100 km; CO₂ emissions (weighted combined): 33–28 g/km; CO₂ class (weighted combined): G–B; fuel consumption with empty battery (combined): G.",56,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +171,audi.pdf,"FinanceStrategy & Company ESG Appendix 57 Audi Report 2024 The “Three Lines” model to be identified, evaluated and appropriately managed by those responsible. They are communicated to the people responsible in each division and to the Audi Board of Management in a trans- parent, appropriate and timely manner. All divisions and material subsidiaries of Audi are integrated into the Risk Management Sys- tem in order to satisfy both corporate and statutory requirements. Changes in the legal framework with respect to risk management are also continually monitored and accordingly implemented promptly in the company’s RMS as well as the ICS. Central tasks of risk management The central tasks of risk management are to identify and analyze risks, ensure transparent reporting of these risks and improve their controllability using suitable risk management tools. Risks are generally reported quarterly through the quarterly risk pro- cess, which maps the current risk situation in the Audi Group. In accordance with the COSO framework, risk-appropriate internal controls are also defined along the entire value chain and their implementation is monitored within the ICS. The Audi Group pro- motes the further development of the RMS/ICS through cross- divisional and cross-company projects.",57,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +172,audi.pdf,"The Audi Group pro- motes the further development of the RMS/ICS through cross- divisional and cross-company projects. The priority here is to inter- link the system closely with corporate financial planning and man- agement, as well as with accounting. In view of its high strategic relevance, the regulatory framework for the RMS/ICS is firmly established both in an internal Corporate Policy of AUDI AG and in a Brand Group Policy to be implemented by material subsidiaries. To systematically structure its risk management architecture, the Audi Group follows the “Three Lines” model – a recommendation of the European Confederation of Institutes of Internal Auditing (ECIIA). On this basis, the RMS/ICS of the Audi Group features three lines that are intended to protect the company against the occurrence of material risks. The risk early warning system that is part of the RMS and the RMS/ICS for accounting are subject to scrutiny by the independent auditor of the consolidated financial statements.",57,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +173,audi.pdf,"The risk early warning system that is part of the RMS and the RMS/ICS for accounting are subject to scrutiny by the independent auditor of the consolidated financial statements. Supervisory Board Board of Management Divisions Operational risk management Risk management program Coordination of standard processes Compliance program Audit of RMS/ICS/CMS Reports on risk management Reporting: GRC annual report Audit reports Internal Audit as an impartial body examines the security, regularity and economic effec- tiveness of the risk manage- ment, compliance and control activities. The central Governance, Risk & Compliance (GRC) organiza- tion is responsible for the overarching functionality of the Risk Management System (RMS), the Internal Control Sys- tem (ICS) and the Compliance Management System (CMS). The tasks involve > managing regular processes in the RMS/ICS and CMS, > consolidating risk information and > reporting on the risk situation and effectiveness of the systems to the Board of Management and the Supervisory Board. In addition, the central GRC organization handles the Group-wide ongoing development of governance, com- pliance and risk management tools.",57,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +174,audi.pdf,"In addition, the central GRC organization handles the Group-wide ongoing development of governance, com- pliance and risk management tools. As well as providing methods and standards, these tasks include advising on how to improve risk steering as well as raising awareness of risk management, compliance and integrity, and providing training on such matters in the divisions and companies. As the risk managers, the divisions are independently responsible for managing risks and countermeasures as well as for performing and reporting on controls. They thus make the key contribution to the early identification and management of risks. Central GRC organization Internal Audit Illustration: C3 Visual Lab First Line Second Line Third Line",57,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +175,audi.pdf,"FinanceStrategy & Company ESG Appendix 58 Audi Report 2024 The main operative risks and opportunities for the Audi Group are described below. Based on current assess‑ ments, these have been categorized as materially relevant to future development and may lead to negative or positive deviations from the key performance indicators forecast. The most significant risks at present relate to the im‑ plementation of the ambitious product program, which could subsequently lead to delays in the ramp‑up of new vehicle models and thus result in negative financial effects. These risks are largely related to the introduction of new platforms for electric and combustion models and to the growing complexity of the software architecture. In addition, significant supply and logistics risks remain and could impact production volumes at the sites in 2025 as well. Other risks are associated with the legal require‑ ments relating to products and services, such as planned legislation on prohibited substances (including PFAS) and cybersecurity regulations. Moreover, general economic risks may arise that could prevent positive growth in global economic output. From Audi’s perspective, these could derive from a further increase in geopolitical tensions. Turbulence on the financial, energy and commodity markets, increasingly protectionist tendencies and structural deficits may also jeopardize the development of individual advanced economies and emerging markets.",58,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +176,audi.pdf,"Turbulence on the financial, energy and commodity markets, increasingly protectionist tendencies and structural deficits may also jeopardize the development of individual advanced economies and emerging markets. In connection with the agreement for the future, short-term financial burdens may impact the financial figures of the Audi Group; in the medium term, the company expects a substantial improvement in its cost base and thus a strengthening of its competitiveness. Material opportunities may arise from a more lively global economy, declining inflation and an easing of the general supply situation. In addition, further synergies may develop within the Volkswagen Group and in particular within the Audi Group. These synergy effects relate above all to the areas of development, procurement and production. A further improvement in the positioning of the brands of the Audi Group represents an additional opportunity. Overall risk situation of the Audi Group Compared with the previous year, the overall risk situation of the Audi Group has grown slightly in terms of the number and aggregate assessment of the risks, especially in light of the demanding ramp‑up situations for new models in the years ahead. On the basis of the information available at present, however, there continue to be no risks that could pose a threat to the Audi Group and material Group companies as going concerns.",58,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +177,audi.pdf,"On the basis of the information available at present, however, there continue to be no risks that could pose a threat to the Audi Group and material Group companies as going concerns. Risks and opportunities of the Audi Group In addition to managing risks effectively, it is necessary in all long‑term corporate decisions to identify and use opportunities in order to secure the sustained success of the Audi Group. Opportunities management – which includes such aspects as optimizing revenue and costs and improving products – is integrated into the opera‑ tional and organizational structure of the Audi Group and is closely aligned with our strategic objectives. To that end we continuously analyze the international context for potential impacts on the business model in order to identify trends and industry-specific key factors early on. Relevant developments are studied in detail with the help of scenario analyses, which are used to estimate possi‑ ble effects on the Audi Group. This work is performed in conjunction with Strategic Corporate Planning, the divisions affected and the Controlling area. The long-term competitiveness and future viability are to be safeguarded through the corporate strategy as well as through, among other things, efficiency and opportunities initiatives such as the Performance Program 14, and ad hoc through benchmarking.",58,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +178,audi.pdf,"In addition, the divisions identify and operationalize medium‑ and short‑term potential opportunities on an ongoing basis. Operating principle of opportunities management",58,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +179,audi.pdf,FinanceStrategy & Company ESG Appendix 59 Audi R eport 2024  ¹ The  internal  decarbonization  index  (DCI)  is  a  key  performance  indicator  (KPI)  with  which  the V olkswagen  Group  records  and  manages  CO₂  emissions  along  the  entire  automotive  value  chain.,59,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +180,audi.pdf," It  describes  the  average  emissions  (measured  in  CO₂  equivalents)  over  the  entire  life  cycle  of  the  Audi  passenger  car  portfolio  in  the  regions  of  Europe  (EU  27,  United  Kingdom,  Norway  and  Iceland),  China  (FBU,  fully  built  up)  and  USA  and  is  stated  in  metric  tons  of  CO₂  equivalents  per  vehicle.",59,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +181,audi.pdf,The  DCI  includes  the  direct  and  indirect  emissions  that  are  produced  at  the  individual  production  sites  (Scope  1  and  2)  as  well  as  further  direct  and  indirect  emissions  that  occur  over  the  life  cycle  of  Audi  vehicles  (Scope  3).,59,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +182,audi.pdf,"The  utilization  phase,  as  part  of  the  life  cycles  of  Audi  vehicles,  is  calculated  over  200,000  kilometers  and  with  reference  to  legal  requirements  for  fleet  values  in  the  sales  regions.  The  CO₂  intensity  of  the  charging  current  for  electrified  and  partly  electrified  vehicles  is  also  calculated  on  the  basis  of  region-specific  electricity  mixes.",59,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +183,audi.pdf,"The  basis  for  calculat- ing  supply  chain  and  recycling  emissions  is  provided  by  verified  vehicle  life  cycle  assessments  (according  to  standards  ISO  14040  and  ISO  14044,  see  life  cycle  assessments:  Documents  &  Policies  |  audi.com). Sustainability in the spotlight Sustainabilityisaglobalissueandthereforeplays an  important  role  throughout  the  entire  automotive  value  chain.  For  this  reason,  the  Audi  Group  has  deeply  embedded sustainability in its str ategy and in the man- agement  of  the  whole  company  group.",59,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +184,audi.pdf," For  example,  sustainability aspects ar e taken into account in import- ant  decision - making  processes.  Audi  therefore  also  considers  CO₂  effects  when  making  product  decisions.  The  decarbonization  index  (DCI¹),  the  BEV share  and  k ey  figures  in  line  with  the  EU  taxonomy  all  contribute  significantly  to  managing  the  company  in  accordance  with  sustainability  criteria.  Risks  and  opportunities  in  connection  with  climate  change  are  also  identified  and  assessed.",59,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +185,audi.pdf," Activities  relating  to  a  holistic  ESG  risk  man- agement  system  were  further  intensified  in  the  year  under  review. The  material  medium-  and  long - term  oppor tunities and risks associated with climate change are  explained  below.  The challenge facing car manufactur ers is to comply with  differing  and  constantly  changing  global  regula- tions  and  legislation  such  as  those  relating  to  vehicle  emissions ,  the  use  of  materials  and  supply  chains.",59,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +186,audi.pdf,"This  r esults,  for  example,  in  a  risk  for  Audi,  too,  that  it  will  fail  to  meet  the  average  target  for  CO₂  fleet  emissions  in  various  regions  of  the  world.  In  addition,  there  are  risks in connection with the speed of the gener al shift to  electric  mobility,  particularly  with  regard  to  the  het- erogeneous  development  of  demand  for  electric  mod- els  in  the  different  regions.",59,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +187,audi.pdf,"This  results  from,  among  other  things,  the  slow  development  of  the  charging  infr astructure  for  electric  vehicles,  as  well  as  from  the  r espective  price  and  subsidy  policies  and  the  associated  low  acceptance  of  electric  mobility.  At  the  same  time,  the  supply  of  electric  vehicles  is  still  at  a  high  level.",59,"[Guess]: No +[Confidence]: 1.0 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +188,audi.pdf," In  addition,  there  are  challenges  in  establishing a  sustain- able  circular  economy,  especially  in  relation  to  the  pr oduction  and  disposal  of  high-voltage  batteries  for  fully  electric  vehicles. Electrification and the technologies of the future as opportunities Theconsistentdevelopmentoffullyelectricdrive concepts  is  a  pillar  of  the  corporate  strategy  and  long- term  success  of  the  Audi  Group.",59,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +189,audi.pdf,"The  market  introduc- tion  of  the  Audi  Q6  e-tron  in  2024  marks  the  start  of  a  major  model  initiative  for  fully  electric  vehicles. The  oppor tunities  from  the  electrification  of  the  product  por tfolio  can  be  found,  for  example,  in  a  more  stable  supply  situation,  an  improved  cost  position,  advances  in batter y technology and the systematic expansion of the  global  charging  infrastructure.",59,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +190,audi.pdf,"The  development  of  highly  automated  drive systems  can  help  to  increase  vehicle  safety  and  allow  the  more  efficient  use  of  vehicles.  Moreover,  the  deployment  of  artificial  intelligence  and  automation  can  optimize  production  times  and  thus,  among  other  things ,  also  reduce  CO₂  emissions  from  production. Sustainable Development Goals ThefollowingSDGs ar e at the focus of this company commitment: Further  information  on  Audi  and  the  UN  sustainability goals can be found on page  160.",59,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +191,audi.pdf,Photo:AUDIAG TheAudiA5modelfamily:fuelconsumption(combined):8.0–4.8l/100km; C O₂  emissions  (combined):  182–125  g/km;  CO₂  class:  G–D.,59,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +192,audi.pdf,60 Audi Report 2024 FinanceStrategy & Company ESG Appendix Photo: AUDI AG ESG 61 // Materiality analysis of AUDI AG 66 // Environmental 108 // Social 142 // Governance,60,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +193,audi.pdf,61 Audi Report 2024 FinanceStrategy & Company ESG Appendix The 15 most important sustainability topics E Environmental S Social G Governance Sustainable corporate governance Page 144 Compliance and integrity Page 147 Sustainable business development Page 151 Fair working conditions and modern working forms Page 110 Corporate culture and equal opportunities Page 119 Occupational health and safety Page 116 Responsibility in the supply chain Page 125 Corporate citizenship Page 138 Climate change and energy efficiency Page 68 Water stewardship Page 85 Reduction in environmental pollution Page 81 Illustration: C3 Visual Lab Resource management and circular economy Page 97 Biodiversity Page 92 Vehicle safety Page 134 Responsible digitalization Page 130,61,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +194,audi.pdf,"62 Audi Report 2024 FinanceStrategy & Company ESG Appendix A s a global company, AUDI AG op- erates in a complex environment – a continuous review of its own ESG and corporate goals is essential for world- wide success. It is important to the compa- ny to keep an eye on the opportunities and risks of its actions in order to strengthen its positive influences on the environment and society and to keep negative impacts on the company to a minimum. Since 2024, the Corporate Sustainability Reporting Directive (CSRD) has governed the sustainability reporting requirements for companies in the EU.1 Companies now have to provide detailed non-financial information on environmental, social and governance issues in their management reports. The CSRD provides the regulatory framework for this reporting. The content to be reported and the report structure are defined by the European Sustainability Reporting Standards (ESRS). As with finan- cial reporting, sustainability reports should focus on meaningful information and topics that are relevant and assessable for stakeholders.2 This limitation is referred to as materiality. The sustainability reporting standard of the Global Reporting Initiative (GRI) also requires ESG reporting to be organized by material topics.",62,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +195,audi.pdf,"The sustainability reporting standard of the Global Reporting Initiative (GRI) also requires ESG reporting to be organized by material topics. Audi voluntarily publishes a report that combines financial and ESG aspects. The Audi Report is based on the internationally established GRI Standard, but also takes up aspects of the European CSRD, includ- ing in particular the required key figures, and addresses the material topics specified by the GRI and CSRD. The materiality analysis that Audi has been conducting for over 11 years serves to de- termine these topics, since it creates trans- parency on relevant ESG topics in the con- text of sustainability. A significant change in the reporting year is the introduction of the concept of double materiality. This principle requires companies to consider the materiality of sustainability topics from two perspectives. The inside-out perspective (impact materiality) is used to determine the actual and potential positive and negative impacts of the company’s activities on various sustainability topics. The outside-in perspective (financial materiality) is used to determine the opportunities and risks that sustainability The new materiality analysis of AUDI AG What impact does Audi make on the environment and society? Which environmental and social issues influence the company’s financial performance?",62,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +196,audi.pdf,"Which environmental and social issues influence the company’s financial performance? And how do external stakeholders assess these two topic areas? Audi’s new materiality analysis provides the answers. The premium car manufacturer draws important impulses for its sustainability efforts from this analysis. topics pose for the company’s financial performance. Audi uses the double materiality analysis as a strategic tool. It makes a contribution to the regular review of objectives and resource management and therefore to the further development of the company. It provides an even better understanding of the interaction between economic success and sustainable action, thereby helping to mesh these two aspects more closely. The idea is as follows: If the company is aware of its impacts and can manage accordingly, it can act optimally both with regard to risk minimization and opportunity maximiza- tion as well as resource allocation. Double materiality analysis for more transparency The materiality analysis that AUDI AG con- ducted in 2024 was the first to be carried out in accordance with the CSRD guide- lines. This approach also meets the GRI requirements for materiality analyses. In terms of the materiality analysis’s content, Audi took its lead from the ESRS and the Volkswagen Group’s requirements.",62,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +197,audi.pdf,"This approach also meets the GRI requirements for materiality analyses. In terms of the materiality analysis’s content, Audi took its lead from the ESRS and the Volkswagen Group’s requirements. ¹ Only certain corporations and commercial partnerships where all partners have limited liability are affected by the reporting obligation. The requirements will initially apply to a limited circle of companies for fiscal years commencing from January 1, 2024, and will then be gradually extended. The CSRD had not yet been transposed into national law in Germany by the editorial deadline. The Audi Group nevertheless reports voluntarily on ESG topics. It is likely to remain exempt from any CSRD reporting obligation in the future too because it is covered by the CSRD reporting obligations of the Volkswagen Group as the parent company. ² Audi regards material stakeholder groups as internal and external groups of individuals that are affected directly or indirectly by the company’s business activities. The selection of the respective stakeholders is fundamentally based on their expertise and their ability to influence Audi. Audi differentiates the stakeholders according to different groups: custom- ers, analysts and investors, press and media, business partners, employees, neighbors and local residents, politics and associations as well as employees’ organizations, science and sustainability experts as well as non-governmental organizations (NGOs) and other groups.",62,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +198,audi.pdf,"The basis for determining and selecting stakeholders is the Stakeholder Engagement Standard AccountAbility 1000 (AA1000SES) and its associated principles of inclusivity, materiality and responsiveness.",62,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +199,audi.pdf,"63 Audi Report 2024 FinanceStrategy & Company ESG Appendix Audi ESG topics The double materiality analysis covers the company’s impacts on the environment and society (impact materiality, inside-out) as well as the opportunities and risks for the company arising from environmental and societal impacts (financial materiality, outside-in), taking into account the perspectives of both internal and external stakeholders. Four-step approach The ESRS are divided into 37 subtopics, which form the basis for the company’s materiality analysis. During the reporting year, the company also carried out a com- parison with the topics used by competi- tors and the Volkswagen Group as well as those found in external ESG frameworks and ESG ratings. Two additional topics were derived from this comparison that go beyond the ESRS: social commitment and sustainable business development. As a second step, stakeholder interviews3 were conducted to identify potential posi- tive and negative impacts of Audi business activities on the environment and society for each subtopic (impact materiality). In addition, opportunities and risks for the company were identified for each subtopic (financial materiality). The third step was to have the subtop- ics evaluated by internal experts.",63,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +200,audi.pdf,"In addition, opportunities and risks for the company were identified for each subtopic (financial materiality). The third step was to have the subtop- ics evaluated by internal experts. One example: The inside-out analysis (impact materiality) for the topic “Working con- ditions – own workforce” (ESG topic area: social) identified the opportunity “Modern forms of work lead to a higher quality of life for employees” and the risk “Insuffi- cient work instructions for new employees lead to a risk to life and limb, for example in the context of hazardous materials or safety requirements” and rated them both as important. The outside-in analysis (fi- nancial materiality) for the topic “Working conditions – own workforce” identified the opportunity “Guaranteeing the health and safety of our own workforce can reduce employee fluctuation, which saves costs for recruitment and induction training” and the risk “Reputational and legal risks in the event of child and forced labor.” An evalua- tion of these factors, among other things, led to the assessment “very important” for the success of AUDI AG.",63,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +201,audi.pdf,"Topics that fell short of the “informative” threshold in terms of both financial and impact materiality were deemed immaterial by the Audi experts in the course of the analysis. This was the case for the nine topics of pol- lution of soil, pollution of living organisms and food resources, substances of concern, marine resources, economic, social and cultural rights of communities, civil and political rights of communities, rights of indigenous peoples, social inclusion of end users and animal welfare. In a fourth step, the results of the Audi materiality analysis were synchronized within the Volkswagen Group and approved by the Board of Management of AUDI AG. The Audi Strategy team then assigned the 39 material topics to a total of 17 topic clusters and the three fields of environ- mental, social and governance (ESG). Central question: To what extent do Audi’s business activities have an impact on people and the environment in the short, medium or long term, including impacts upstream and downstream in the value chain? Guiding question: To what extent do ESG topics have a material financial impact on Audi’s cash flow, financial position or financial performance in the short, medium or long term?",63,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +202,audi.pdf,"Guiding question: To what extent do ESG topics have a material financial impact on Audi’s cash flow, financial position or financial performance in the short, medium or long term? Inside-Out Outside-In Audi’s impact on environment and society Financial impacts of ESG topics on Audi Impact Materiality Financial Materiality (Risks and Opportunities) + - Positive and negative impacts were identified and opportuni- ties and risks were assessed. + - Illustration: C3 Visual Lab ³ For the stakeholder interviews, the company identified a total of 11 relevant stakeholder groups, prioritized them based on the dimensions of “stakeholder influence on the company” and “stakeholder dependency on the company,” and then conducted qualitative one-on-one interviews.",63,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +203,audi.pdf,64 Audi Report 2024 FinanceStrategy & Company ESG Appendix Microplastics p. 81 Financial Materiality Impact Materiality very important significant criticalimportantinformative very important significant criticalimportantinformative Social commitment p. 138 Sustainable corporate governance p. 144 Pollution of air p. 81 Social standards and human rights in the supply chain p. 125 Substances of very high concern p. 81 Responsible digitalization p. 130 Vehicle safety p. 134 Water stewardship p. 85 Circular economy p. 97 Biodiversity p. 92 Climate change and energy efficiency p. 68 Sustainable business development p. 151 Compliance and integrity p. 147 Occupational health and safety – own workforce p. 116 Fair working conditions and modern working forms p. 110 Equal treatment and opportunities for all – own workforce p.,64,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +204,audi.pdf,"116 Fair working conditions and modern working forms p. 110 Equal treatment and opportunities for all – own workforce p. 119 The matrix visualizes how the 17 relevant topic clusters are evaluated in terms of the impact of the company’s activities on the environment and society (impact materiality, x-axis) as well as in terms of their opportunities and risks for the company’s financial position (financial materiality, y-axis). First stage: context analysis and topic collection An internal team of Audi experts drew on the ESRS to identify 37 sustainability topics that are relevant to the company and added two further topics. Second and third stages: collection and evaluation of impacts, risks and opportunities A stakeholder survey was carried out to identify the environmental and social impacts of the company’s activities (impact materiality, inside-out) as well as the opportunities and risks for Audi (financial materi- ality, outside-in) with regard to the 39 topics. A team of internal experts evaluated and weighted these opportunities, risks and impacts. Fourth stage: validation of the results and clustering The results of the Audi materiality analysis were coordinated with the Volkswagen Group and approved by the Board of Management of AUDI AG.",64,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +205,audi.pdf,Fourth stage: validation of the results and clustering The results of the Audi materiality analysis were coordinated with the Volkswagen Group and approved by the Board of Management of AUDI AG. The team of Audi experts then assigned the 39 topics to 17 topic clusters. Audi materiality matrix Field of activity: Environment Social Governance Illustration: C3 Visual Lab The matrix is based on the following four-stage process:,64,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +206,audi.pdf,65 Audi Report 2024 FinanceStrategy & Company ESG Appendix Assignment of topics Environment 1. Climate change and energy efficiency 2. Reduction in environmental pollution Pollution of air Substances of very high concern Microplastics 3. Water stewardship 4. Biodiversity 5. Resource management and circular economy Circular economy Social 6. Employees 6.1 Fair working conditions and modern working forms 6.2 Occupational health and safety Occupational health and safety – own workforce 6.3 Corporate culture and equal opportunities Equal treatment and opportunities for all – own workforce 7. Responsibility in the supply chain Social standards and human rights in the supply chain 8. Customers 8.1 Responsible digitalization 8.2 Vehicle safety 9. Corporate citizenship Social commitment Governance 10. Corporate governance 10.1 Sustainable corporate governance 10.2 Compliance and integrity 11. Sustainable business development The 17 topic clusters of the materiality analysis are addressed in the following chapters of the Audi Report:,65,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +207,audi.pdf,FinanceStrategy & Company ESG Appendix 66 Audi Report 2024 2 1 Environmental Photo: AUDI AG,66,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +208,audi.pdf,FinanceStrategy & Company ESG Appendix 67 Audi Report 2024 Photo: AUDI AG Content E Audi A6 Sportback e-tron performance: electric power consumption (combined): 16.7–13.6 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 68 Climate change and energy efficiency 81 Reduction in environmental pollution 85 Water stewardship 92 Biodiversity 97 Resource management and circular economy,67,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +209,audi.pdf,"68 Audi Report 2024 FinanceStrategy & Company ESG Appendix Climate change and energy efficiency By 2050¹ at the latest, the Audi Group aims to achieve net carbon neutrality² across the entire value chain. Production at all Audi sites³ has been net carbon-neutral² since January 1, 2025. ¹ To achieve net carbon neutrality, Audi has defined a transformation pathway with clearly defined interim targets that depend heavily on market developments and the pace at which electric mobility is expanded. Volatile markets and the uncertain economic and political climate stand in the way of making reliable statements about interim targets up to the year 2050. ² Audi regards net carbon neutrality as a state in which, following the exhaustion of other possible measures aimed at reducing the still remaining CO₂ emissions caused by the products or activities of Audi and/or currently unavoidable CO₂ emissions within the scope of the supply chain, manufacturing and recycling of Audi vehicles, at least quantitative compensation is provided through voluntary and globally conducted compensation projects. Throughout the utilization phase of a vehicle, meaning from when a vehicle is delivered to a customer, CO₂ emissions produced are not taken into account. ³ Audi production sites in Ingolstadt and Neckarsulm (Germany), Brussels (Belgium), Győr (Hungary), San José Chiapa (Mexico).",68,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.9 " +210,audi.pdf,"³ Audi production sites in Ingolstadt and Neckarsulm (Germany), Brussels (Belgium), Győr (Hungary), San José Chiapa (Mexico). Production at the Brussels plant was discontinued at the end of February 2025. GRI 302, 305 Photo: AUDI AG",68,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +211,audi.pdf,"69 Audi R eport 2024 FinanceStrategy & Company ESG Appendix 5 2 1 3 4 Illustration: C3 Visual Lab C limate change is one of the great- est challenges of the present time. Audi is conscious of the impacts of its products and business operations on the environment and society. Greenhouse gas (GHG) emissions occur at all stages of the automotive value chain and may have negative environmental impacts. The company is committed to the Paris Climate Agreement and its goals. Audi is a member of the United Nations Global Compact (UNGC), the world’s largest initia- tive for sustainable corporate governance, and promotes the implementation of the UN Sustainable Development Goals (SDGs) within this framework. The decarbonization of the entire value chain is an integral part of the regenerate+ sustainability strategy and the Volkswagen Group’s goTOzero environmental mission statement. The targets set in this connection are aligned with the requirements of the Science Based Targets initiative (SBTi), which develops climate pathways for various industry sectors on the basis of scientific findings with the goal of making the ambitions of the Paris Climate Agreement measurable and of implementing these ambitions in each sector.",69,"[Guess]: No +[Confidence]: 0.9 +user","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +212,audi.pdf,"The statement on the Common Corporate Policy of AUDI AG applies for all products, ¹ T o achieve net carbon neutrality, Audi has defined a transformation pathway with clearly defined interim targets that depend heavily on market developments and the pace at which electric mobility is expanded. Volatile markets and the uncertain economic and political climate stand in the way of making reliable statements about interim targets up to the year 2050. ² Audi r egards net carbon neutrality as a state in which, following the exhaustion of other possible measures aimed at reducing the still remaining CO₂ emissions caused by the products or activities of Audi and/or currently unavoidable CO₂ emissions within the scope of the supply chain, manufacturing and recycling of Audi vehicles, at least quantitative compensation is provided through voluntary and globally conducted compensation projects. Throughout the utilization phase of a vehicle, meaning from when a vehicle is delivered to a customer, CO₂ emissions produced are not taken into account. ³ Audi pr oduction sites in Ingolstadt and Neckarsulm (Germany), Brussels (Belgium), Győr (Hungary), San José Chiapa (Mexico). Production at the Brussels plant was discontinued at the end of February 2025.",69,"[Guess]: No +[Confidence]: 0.9 +user","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.9 " +213,audi.pdf,"Production at the Brussels plant was discontinued at the end of February 2025. ⁴ The internal decarbonization index (DCI) is a k ey performance indicator (KPI) with which the Volkswagen Group records and manages CO₂ emissions along the entire automotive value chain. It describes the average emissions (measured in CO₂ equivalents) over the entire life cycle of the Audi passenger car portfolio in the regions of Europe (EU 27, United Kingdom, Norway and Iceland), China (FBU, fully built up) and USA and is stated in metric tons of CO₂ equivalents per vehicle. The DCI includes the direct and indirect emissions that are produced at the individual production sites (Scope 1 and 2) as well as further direct and indirect emissions that occur over the life cycle of Audi vehicles (Scope 3). The utilization phase, as part of the life cycles of Audi vehicles, is calculated over 200,000 kilometers and with reference to legal requirements for fleet values in the sales regions. The CO₂ intensity of the charging current for electrified and partly electrified vehicles is also calculated on the basis of region-specific electricity mixes.",69,"[Guess]: No +[Confidence]: 0.9","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +214,audi.pdf,"The CO₂ intensity of the charging current for electrified and partly electrified vehicles is also calculated on the basis of region-specific electricity mixes. The basis for calculating supply chain and recycling emissions is provided by verified vehicle life cycle assessments (according to standards ISO 14040 and ISO 14044, see life cycle assessments: Documents & Policies | audi.com). ⁵ C O₂ equivalents (CO₂e) are a unit of measurement used to standardize the climate impact of various greenhouse gases. Greenhouse gas emissions are converted into CO₂ equivalents and summarized. services and activities. The Audi Code of Conduct for Audi Group employees iden- tifies environmental protection as one of the key issues for the organization. On the basis of the Code of Conduct for Business Partners, Audi also requires its suppliers to implement suitable measures to reduce emissions into the air that represent a hazard to the environment and health – including GHG emissions. In the context of environmental management, the com- pany uses its Environmental Compliance Management System to identify, evaluate and control environmental risks and in this way ensures compliance with envi- ronmental protection guidelines. In its environmental declarations, AUDI AG reports annually on continuous improve- ments in environmental management.",69,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +215,audi.pdf,"In its environmental declarations, AUDI AG reports annually on continuous improve- ments in environmental management. Reducing GHG emissions along the entire value chain GHG emissions are generated along the entire automotive value chain. They can be divided into five phases: supply chain, production, logistics, utilization phase and end of life. Audi strives to reduce GHG emissions in all phases of the value chain in order to achieve effective decarbonization. By 2050¹ at the latest, the Audi Group aims to achieve net carbon neutrality² across the entire value chain. Progress is measured using the decarbonization index (DCI),⁴ with measurements performed for the individual Volkswagen Group brands and the Group as a whole. The DCI⁴ is a strategic indicator on the path to net carbon neutrality.² With the aid of the DKI,⁴ Audi calculates the average emissions of CO₂ and CO₂ equivalents⁵ over the entire life cycle of its passenger car portfolio and states them in metric tons of CO₂ per vehicle. The DCI includes both Sustainable Development Goals The following SDGs are at the focus of this company commitment: Further information on Audi and the UN sustainability goals can be found on page 160.",69,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: Yes +[Confidence]: 0.8 " +216,audi.pdf,"The DCI includes both Sustainable Development Goals The following SDGs are at the focus of this company commitment: Further information on Audi and the UN sustainability goals can be found on page 160. 5 2 1 3 4 Net carbon-neutral² Audi sites³ (2024) Looking back at 2024, Audi already had net carbon-neutral² production operations in Ingolstadt, Győr and Brussels. The reported figures in the diagram establish the amount of GHG emissions already saved at the sites by using renewable and low-GHG energy sources in relation to theoretical maximum GHG emissions based on an energy supply that relies solely on fossil energy sources. * Pr oduction at the Brussels plant was discontin- ued at the end of February 2025. ** Since Januar y 1, 2025, production at the Neckarsulm and San José Chiapa sites has been net carbon-neutral² (100%). 5. Brussels* 100 % 2. Neckarsulm 65%** 1. Ingolstadt (incl . Münchsmünster) 100% 3. Győr 100% 4. San José Chiapa 80%**",69,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +217,audi.pdf,"70 Audi Report 2024 FinanceStrategy & Company ESG Appendix direct and indirect GHG emissions at indi- vidual production sites (Scopes 1⁶ und 2⁷), as well as all other direct and indirect GHG emissions over the life cycle of the vehicles (Scope 3⁸). DCI⁴ target values are relevant to the remu- neration of the members of the Board of Management of AUDI AG. In this way, the company underscores the relevance of GHG reduction measures. One approach to identifying reduction potential for the environmental impacts of vehicles is the life cycle assessment.⁹ This examines the environmental impacts of selected vehicles throughout their entire life cycle (cradle-to-grave), with all steps along the value chain for each individual part being considered in the generic life cy- cle assessment. Based on this assessment, GHG reduction measures and optimization potential are identified, evaluated and im- plemented across the entire life cycle. Us- ing this process, it was possible to reduce the carbon footprints of the Audi Q6 55 e-tron quattro10 and Audi A6 Avant e-tron11 by 35 percent, for example.",70,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +218,audi.pdf,"Us- ing this process, it was possible to reduce the carbon footprints of the Audi Q6 55 e-tron quattro10 and Audi A6 Avant e-tron11 by 35 percent, for example. A substantial contribution came from GHG-reducing measures in the production and the use of green electricity in the utilization phase. In the reporting year, Audi published GHG savings in the production phase in the life cycle assessment for the first time. The results are also included in the DCI.⁴ Phase 1: Decarbonization of the supply chain The proportion of GHG emissions in the supply chain is increasing due to the con- sistent electrification of the Audi vehicle portfolio.12 To counter this increase, the Audi CO₂ program was launched in 2018. In cooperation with supplier companies, it identifies CO₂ mitigation measures and op- timization potential throughout the entire production process for materials and com- ponents. So-called hotspots are used to identify specific materials or components in the company that are expected to offer the greatest savings potential. The biggest emissions driver in the supply chain for an electric vehicle is the high-voltage battery, followed by parts made of aluminum and steel.",70,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +219,audi.pdf,"The biggest emissions driver in the supply chain for an electric vehicle is the high-voltage battery, followed by parts made of aluminum and steel. All of the components in these three areas together are generally responsible for approximately 70 percent of the carbon footprint in the supply chain of an electric vehicle. In the future, Audi plans to increase the proportion of raw material loops and the use of recycled materials in vehicle proj- ects. An example of this is the Aluminum Closed Loop, which has been implemented since 2017. Aluminum sheet offcuts that are produced in the press shop are sent straight back to the suppliers. The suppli- ers recycle these into aluminum sheets of equal quality, which Audi then uses again ² Audi regards net carbon neutrality as a state in which, following the exhaustion of other possible measures aimed at reducing the still remaining CO₂ emissions caused by the products or activities of Audi and/or currently unavoidable CO₂ emissions within the scope of the supply chain, manufacturing and recycling of Audi vehicles, at least quantitative compensation is provided through voluntary and globally conducted compensation projects. Throughout the utilization phase of a vehicle, meaning from when a vehicle is deliv- ered to a customer, CO₂ emissions produced are not taken into account.",70,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +220,audi.pdf,"Throughout the utilization phase of a vehicle, meaning from when a vehicle is deliv- ered to a customer, CO₂ emissions produced are not taken into account. ⁴ The internal decarbonization index (DCI) is a key performance indicator (KPI) with which the Volkswagen Group records and manages CO₂ emissions along the entire automotive value chain. It describes the average emissions (measured in CO₂ equivalents) over the entire life cycle of the Audi passenger car portfolio in the regions of Europe (EU 27, United Kingdom, Norway and Iceland), China (FBU, fully built up) and USA and is stated in metric tons of CO₂ equivalents per vehicle. The DCI includes the direct and indirect emissions that are produced at the individual production sites (Scope 1 and 2) as well as further direct and indirect emissions that occur over the life cycle of Audi vehicles (Scope 3). The utilization phase, as part of the life cycles of Audi vehicles, is calculated over 200,000 kilometers and with reference to legal requirements for fleet values in the sales regions. The CO₂ intensity of the charging current for electrified and partly electrified vehicles is also calculated on the basis of region-specific electricity mixes.",70,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +221,audi.pdf,"The CO₂ intensity of the charging current for electrified and partly electrified vehicles is also calculated on the basis of region-specific electricity mixes. The basis for calculating supply chain and recycling emissions is provided by verified vehicle life cycle assessments (according to standards ISO 14040 and ISO 14044, see life cycle assessments: Documents & Policies | audi.com). ⁵ CO₂ equivalents (CO₂e) are a unit of measurement used to standardize the climate impact of various greenhouse gases. Greenhouse gas emissions are converted into CO₂ equivalents and summarized. ⁶ Scope 1: direct CO₂ emissions. This figure is made up of CO₂ emissions generated by the use of fuel at the plant and CO₂ emissions produced by the operation of test rigs. These emissions account for a significant portion of Scope 1 according to the GHG Protocol. ⁷ Scope 2: indirect CO₂ emissions. This figure measures the CO₂ emissions generated during the production of purchased energy (electricity, heating, cooling). These emissions account for a significant portion of Scope 2 according to the GHG Protocol. ⁸ A distinction is made in Scope 3 between upstream and downstream activities.",70,"[Guess]: Yes +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +222,audi.pdf,"These emissions account for a significant portion of Scope 2 according to the GHG Protocol. ⁸ A distinction is made in Scope 3 between upstream and downstream activities. Upstream activities relate, for example, to emissions generated on the supplier side (from manu- facturing the product from raw materials up to the point of delivery to Audi, so-called cradle-to-gate). Business trips and waste produced are also included in this scope category. Downstream activities include, for example, emissions from transporting products sold and those generated by end customers in the use phase of sold goods. ⁹ Audi prepares a life cycle assessment (LCA) when it commences production of a new vehicle model. This assessment is a standardized, systematic analysis of the environmental impact of a product over its entire life cycle in accordance with the international ISO 14040ff. series of standards. The life cycle includes all conceivable impacts, from the required raw materials to logistics to production, from the first to the last kilometer on the road, from de-registration to recycling. 10 Audi Q6 55 e-tron quattro: electric power consumption (combined): 19.6–17.0 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A.",70,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +223,audi.pdf,"10 Audi Q6 55 e-tron quattro: electric power consumption (combined): 19.6–17.0 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 11 Audi A6 Avant e-tron: electric power consumption (combined): 17.5–14.4 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 12 Whereas an average of about 20 percent of GHG emissions in the life cycle of an Audi model with combustion engine are attributable to production, in other words the phases supply chain, production and logistics (assuming production in the EU), and roughly 80 percent to the utilization phase, this ratio changes with Audi BEV (battery electric vehicle) models. In this case, an average of around 50 percent of GHG emissions are attributable to production (assuming production in the EU) and roughly 50 percent to the utilization phase (assuming the average electricity mix in the EU). This is one reason why the carbon footprint has to be improved in the supply chain.",70,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +224,audi.pdf,"This is one reason why the carbon footprint has to be improved in the supply chain. Environmental declarations of the Audi Ingolstadt and Neckarsulm sites for 2024 Environmental Declaration 2024 Audi sites Ingolstadt, Münchsmünster, Neuburg, Neustadt Audi Standort Neckarsulm Aktualisierte Umwelterklärung 2024 Photos: AUDI AG | Illustrations: C3 Visual Lab in production. Compared with production of primary aluminum, the energy require- ment is reduced by up to 95 percent, with a corresponding reduction in CO2 emis- sions. Like the press shops in Ingolstadt, Neckarsulm and Győr, the plant at the Münchsmünster site has been part of the Aluminium Closed Loop since 2024. More- over, the recertification of the Ingolstadt, Neckarsulm and Győr sites in the reporting year demonstrated the responsible han- dling of aluminum. The Chain of Custody certificate awarded by the Aluminium Stewardship Initiative was bestowed again in 2024. The Performance Standard was recertified in 2025.",70,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +225,audi.pdf,"The Chain of Custody certificate awarded by the Aluminium Stewardship Initiative was bestowed again in 2024. The Performance Standard was recertified in 2025. Audi Hungaria received the Effekt 2030 Award for its Aluminum Closed Loop project. This award recog- nizes companies in Hungary that set stan- dards in the environmental, social and",70,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +226,audi.pdf,"71 Audi Report 2024 FinanceStrategy & Company ESG Appendix governance (ESG) areas with sustainable and innovative solutions. In 2024 alone, the Aluminum Closed Loop process as well as other measures delivered net savings in the supply chain of approximately 350,000 metric tons of CO₂e.⁵ These measures include the use of CO₂e⁵-reduced materials and the use of green electricity in the pro- duction of high-voltage battery cells. Phase 2: Decarbonization of production The Mission:Zero environmental program combines all the company’s initiatives for reducing the ecological footprint in pro- duction and logistics. There are four action areas: water usage, biodiversity, resource efficiency and decarbonization. The goal of the decarbonization action area, to achieve net carbon-neutral production² at all Audi production sites³ from January 1, 2025, was reached.",71,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: Yes +[Confidence]: 0.9 " +227,audi.pdf,"The goal of the decarbonization action area, to achieve net carbon-neutral production² at all Audi production sites³ from January 1, 2025, was reached. Since January 1, 2025, production at the plants in Neckarsulm (Germany) and San José Chiapa (Mexico) – and thus all Audi production sites³ – has been net carbon-neutral.² The other sites had already achieved this goal in previous years: Ingolstadt (Germany) in 2024, Győr (Hungary) in 2020 and Brussels (Belgium) in 2018. Net carbon-neutral² production includes GHG emissions generated directly at the site (Scope 1),⁶ and indirect GHG emissions from energy purchased through external utilities (Scope 2).⁷ External au- diting companies are called on annually to verify and certify the net carbon neutrality² of the Audi production sites.³ The net carbon neutrality² of the Audi production sites³ was achieved with the following steps: 1. Increase energy efficiency 2. Produce own renewable energy 3. Purchase renewable energy 4.",71,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +228,audi.pdf,"Increase energy efficiency 2. Produce own renewable energy 3. Purchase renewable energy 4. Offset the currently unavoidable GHG emissions through climate action projects Increase energy efficiency In order to increase energy efficiency, plant- and site-related energy manage- ment is an integral part of the business processes at the production sites.³ Energy management is monitored and continuous- ly improved using a structured energy and compliance management system (EnCMS) in accordance with statutory requirements and the requirements of the globally appli- cable ISO 50001 standard. This ensures Audi Hungaria: photovoltaic system on the roofs of the two logistics halls. ² Audi regards net carbon neutrality as a state in which, following the exhaustion of other possible measures aimed at reducing the still remaining CO₂ emissions caused by the products or activities of Audi and/or currently unavoidable CO₂ emissions within the scope of the supply chain, manufacturing and recycling of Audi vehicles, at least quantitative compensation is provided through voluntary and globally conducted compensation projects. Throughout the utilization phase of a vehicle, meaning from when a vehicle is delivered to a customer, CO₂ emissions produced are not taken into account.",71,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: Yes +[Confidence]: 0.8 " +229,audi.pdf,"Throughout the utilization phase of a vehicle, meaning from when a vehicle is delivered to a customer, CO₂ emissions produced are not taken into account. ³ Audi production sites in Ingolstadt and Neckarsulm (Germany), Brussels (Belgium), Győr (Hungary), San José Chiapa (Mexico). Production at the Brussels plant was discontinued at the end of February 2025. ⁵ CO₂ equivalents (CO₂e) are a unit of measurement used to standardize the climate impact of various greenhouse gases. Greenhouse gas emissions are converted into CO₂ equiva- lents and summarized. ⁶ Scope 1: direct CO₂ emissions. This figure is made up of CO₂ emissions generated by the use of fuel at the plant and CO₂ emissions produced by the operation of test rigs. These emissions account for a significant portion of Scope 1 according to the GHG Protocol. ⁷ Scope 2: indirect CO₂ emissions. This figure measures the CO₂ emissions generated during the production of purchased energy (electricity, heating, cooling). These emissions account for a significant portion of Scope 2 according to the GHG Protocol. Photo: AUDI AG Energy intensity of the Audi Group – Automotive segment* in MWh/veh.",71,"[Guess]: Yes +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +230,audi.pdf,"These emissions account for a significant portion of Scope 2 according to the GHG Protocol. Photo: AUDI AG Energy intensity of the Audi Group – Automotive segment* in MWh/veh. The energy intensity of the Audi Group relating to automotive production including component manufacturing was 2.84 MWh per vehicle* (MWh/veh.) for the year under review. Compared with the previous year, the energy intensity has increased per vehicle. This is due to the reduction in the number of units produced. However, a range of effective energy-saving measures led overall to lower energy consumption compared with the previous year. * The energy intensity indicated refers to automo- tive production (including component manufac- turing). This is calculated by dividing the overall energy consumption of car and component plants by the number of cars built at the sites. 2022 2023 2024 2.74 2.46 2.84 Energy consumption within the Audi Group, total by type** in MWh Due to energy-saving measures and the reduction in the number of units produced, the total energy consumption within the Audi Group fell slightly.",71,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +231,audi.pdf,"The percentage of energy from renewable sources increased significantly, for example, due to the use of biogas. The prior-year figures for 2023 were adjusted in accordance with the final data status. ** Total energy consumption: This key figure is made up of electricity and heat consumption as well as the use of fuel gases for production processes and externally supplied refrigera- tion at the plant. *** From renewable energy sources. 1,692,488***1,726,851*** 1,799,021*** 2,372,7022,472,1002,507,115 2023 20242022",71,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +232,audi.pdf,"72 Audi Report 2024 FinanceStrategy & Company ESG Appendix compliance with all relevant energy legis- lation, standards and commitments. Audi has set itself an annual energy-saving tar- get of at least two percent compared with the consumption values from the previous year. In the year under review, the company cut energy consumption at the production sites³ by just under 73,000 megawatt hours compared with the previous year. This is equivalent to a CO₂ reduction of more then 7,700 metric tons and cost sav- ings of around EUR 8.4 million. As a result, achievement of the energy-saving target was 108 percent in 2024. The basis for this was over 470 implemented efficiency mea- sures from the Mission:Zero program. One such efficiency measure was the partially refurbished paint shop in Neckarsulm. The new drying and paint separation process can result in savings of as much as 190 kilowatt hours of energy per vehicle. In addition, an AI solution is being tested to reduce energy losses in the drying process. In the course of restructuring the paint shop at the Ingolstadt site, a new top coat line was deployed in series production in the year under review.",72,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +233,audi.pdf,"In the course of restructuring the paint shop at the Ingolstadt site, a new top coat line was deployed in series production in the year under review. Previously, gas dry- ers were used to cure the coating. This has now been replaced with an electric dryer powered by electricity from renewable sources. As a result, annual gas consump- tion will likely by reduced by more than 30 gigawatt hours. The new top coat line also uses cardboard filters instead of a water curtain to collect overspray. It is estimated that this will reduce water consumption by 31,700 cubic meters per year compared with the old technology. In addition, the air circulation and innovative paint separa- tion technology, coupled with an exhaust air cleaning system, will greatly reduce emissions of air pollutants (volatile organic compounds or VOCs). Produce own renewable energy At the following production sites,³ Audi expanded capacities to produce its own renewable energy: > Győr: The Audi plant in Hungary so far has a photovoltaic facility that covers an area of around 160,000 square meters. 36,000 solar cells deliver a peak output of 12 megawatts. This will now be expanded.",72,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +234,audi.pdf,"36,000 solar cells deliver a peak output of 12 megawatts. This will now be expanded. Just under 85,000 square meters of solar modules will be installed on the vehicle assembly building and around 75,000 square meters of solar modules on part of the site’s green space. The new photovoltaic facility is expected to deliver a peak output of 18 megawatts. In addition, there is a geothermal plant. The production site is the largest user of industrial geothermal energy in Hungary and has covered more than 80 percent of its thermal energy requirement with geothermal energy since 2015. This system currently sup- plies at least 82,000 megawatt hours of thermal energy to the site annually and even supplies the neighboring city of Győr via a district heating pipeline. At the HVG Green Leaders Awards in 2024, Audi Hungaria received the special envi- ronmental prize in the REC (Renewable Energy Certificate) rate category for covering an extremely large proportion of the company’s energy needs through renewable energy sources. > Ingolstadt: The existing photovoltaic surface at the Ingolstadt plant is around 23,000 square meters.",72,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +235,audi.pdf,"> Ingolstadt: The existing photovoltaic surface at the Ingolstadt plant is around 23,000 square meters. Roughly 41,000 square meters are currently under con- struction or at the planning stage. > Neckarsulm: Several photovoltaic facil- ities are currently under construction at the site. They currently cover a surface of around 35,000 square meters and have an output of some 3.2 megawatts. > San José Chiapa: A photovoltaic facility with an output of 5.2 megawatts is currently under construction. More than 8,400 solar panels are being installed on an area of 67,000 square meters. Purchase renewable energy When purchasing energy, Audi ensures that it comes from renewable sources. Since 2021, all Audi production sites³ have used electricity from renewable energy sources only. The Ingolstadt production site, for example, switched to green elec- tricity back in 2012. Offset the currently unavoidable emissions through climate action projects Despite the large number of measures implemented, GHG emissions remain that have been unavoidable until now due to technical, process-related or economic limitations.",72,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +236,audi.pdf,"Offset the currently unavoidable emissions through climate action projects Despite the large number of measures implemented, GHG emissions remain that have been unavoidable until now due to technical, process-related or economic limitations. This is the case, for example, for the operation of test rigs on which diesel and gasoline engines are tested. The company offsets these GHG emissions by purchasing offset certificates for GHG emissions from external climate action projects, which have to fulfill strict quality standards. Phase 3: Decarbonization of logistics Measures to reduce GHG emissions in logistics are likewise part of the Audi Mission:Zero environmental program. In collaboration with Volkswagen Group Logistics, the company is following a long- term roadmap to organize transport to and from the plant in such a way that as little CO₂ as possible is emitted. The following measures contribute to achieving this goal: By using smart control methods to consolidate shipments, Audi is able to avoid transport operations. In addition, capacity utilization and routes are optimized continuously to reduce transport operations and CO₂ emissions. As a way of achieving further savings, Audi uses more climate-friendly forms of transport such as rail.",72,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.8 " +237,audi.pdf,"In addition, capacity utilization and routes are optimized continuously to reduce transport operations and CO₂ emissions. As a way of achieving further savings, Audi uses more climate-friendly forms of transport such as rail. The combination of different forms of transport, such as rail and road, allows the most varied logistics requirements to be addressed flexibly and more efficiently. In April 2024, Audi commenced operation of its first block train between Regensburg and Lébény (Hungary) in combination with upstream and downstream transportation by truck. This train links the Ingolstadt and Neckarsulm plants as well as the vehicle and engine plant in Győr. Thanks to the use of innovative wagon handling tech- nology, the block train can be operated independently of the equipment that is usually necessary at the terminals. This has reduced truck transportation by around 185,000 kilometers per week, which will make it possible to reduce CO₂ emissions by up to 11,500 metric tons per year in the future. In close collaboration with truck manu- facturing companies, fuel producers and forwarding agents, Audi is deliberately focusing on biogenic fuels, such as bio- LNG and HVO100, as important bridging technology.",72,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +238,audi.pdf,"In close collaboration with truck manu- facturing companies, fuel producers and forwarding agents, Audi is deliberately focusing on biogenic fuels, such as bio- LNG and HVO100, as important bridging technology. These fuels generate up to 85 percent fewer CO₂ emissions compared with the use of diesel in road transport. Truck transportation in Germany up- stream and downstream of the block train has already been switched to the use of HVO100 biogenic fuel. With its Green Deal Day event in March 2024, Audi created a dialogue platform for freight carriers, fuel producers and truck manufacturers aimed at promoting the use of biogenic ³ Audi production sites in Ingolstadt and Neckarsulm (Germany), Brussels (Belgium), Győr (Hungary), San José Chiapa (Mexico). Production at the Brussels plant was discontinued at the end of February 2025.",72,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +239,audi.pdf,"73 Audi Report 2024 FinanceStrategy & Company ESG Appendix fuel in the supply chain. This resulted in more than 120 further transport routes switching to biogenic fuel. In addition, use of Battery Electric Trucks (BET) is being piloted in inbound logistics (procurement and production logistics). At the start of 2025, BETs were introduced on two test routes and cover a total distance of some 120,000 kilometers each year. The goal is to prepare for the deployment of BETs in series production at other Audi locations. Overseas transport represents the largest single lever for decarbonizing finished vehicle logistics. Step by step, Audi is increasingly focusing here on alternative drive systems such as ships that run on LNG (liquefied natural gas). Phase 4: Decarbonization in the utilization phase A significant proportion of GHG emissions that a vehicle emits over its life is generat- ed at the utilization phase, in other words by actually driving the vehicle. Electric cars are operated without causing any local GHG emissions and can therefore contrib- ute significantly to reducing GHG emis- sions.",73,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +240,audi.pdf,"Electric cars are operated without causing any local GHG emissions and can therefore contrib- ute significantly to reducing GHG emis- sions. And if they are also charged with green electricity, this improves the carbon footprint over the entire life cycle of the vehicle. Audi is successively expanding its e-portfolio. In the year under review, the company already had 10 BEVs in its port- folio, six of which were presented in 2024. In addition, fully electric vehicles will become more efficient. For example, vehi- cles based on the new Premium Platform Electric (PPE) are up to 30 percent more efficient in terms of energy consumption than the Audi e-tron13 (first generation). This is due to the use of cutting-edge technologies and systematic optimization of the entire system, consisting of electric motor, transmission and power electron- ics as well as improved aerodynamics. Compared with the electric drive systems that have been developed and installed to date, all the PPE drive components are more compact and more efficient. The PPE electric motors need around 30 percent less space and their weight is some 20 per- cent lower than the powertrains in existing electric models.",73,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +241,audi.pdf,"The PPE electric motors need around 30 percent less space and their weight is some 20 per- cent lower than the powertrains in existing electric models. With high-performance, compact and highly efficient electric motors, a newly developed lithium-ion battery consisting of 12 modules and 180 prismatic cells with a total gross capacity of 100 kilowatt hours (94.9 net kilowatt hours), the Audi Q6 e-tron,15 for example, is the first PPE series-production model with a range of up to 625 kilometers ac- cording to WLTP. With a drag coefficient of 0.21, the Audi A6 Sportback e-tron16 is the most aerodynamic Audi vehicle ever and in this regard also tops its segment within the Volkswagen Group as a whole. In terms of Audi combustion engine mod- els, DIN-compliant synthetic fuels can be used to fill all Audi vehicles. The process of validating technological compatibility was successfully completed in the year under review and contributes to decarbon- izing the product portfolio. The first fuel suppliers, such as Repsol, have started to introduce low-CO₂ alternative fuels in selected markets. This measure will enable an additional reduction in CO₂ in the exist- ing fleet, too.",73,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +242,audi.pdf,"The first fuel suppliers, such as Repsol, have started to introduce low-CO₂ alternative fuels in selected markets. This measure will enable an additional reduction in CO₂ in the exist- ing fleet, too. Moreover, virtually all engines in Audi models17 were examined retroactively to the 2015 model year to determine further levels of development with respect to alternative fuels (ethanol content up to 20 percent (E20)), although this has not yet been standardized. The percentage of engines also suitable for E20 in relation to the total volume of Audi models produced is expected to remain above 99.1 percent up to 2030. With a drag coefficient of 0.21, the Audi A6 Sportback e-tron14 is writing Audi history. 13 The Audi e-tron is no longer offered for sale as a new passenger car. 14 Audi A6 Sportback e-tron: electric power consumption (combined): 16.7–13.6 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 15 Audi Q6 SUV e-tron: electric power consumption (combined): 19.7–17.0 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A.",73,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +243,audi.pdf,"15 Audi Q6 SUV e-tron: electric power consumption (combined): 19.7–17.0 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 16 Audi A6 Sportback e-tron: electric power consumption (combined): 16.7–13.6 kWh/100 km, CO₂ emissions (combined): 0 g/km; CO₂ class: A. 17 An exception is the powertrain in the Audi S3 (EA888 Gen.3 and evo4). Photo: AUDI AG",73,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +244,audi.pdf,"74 Audi Report 2024 FinanceStrategy & Company ESG Appendix At Audi, one key lever for reducing CO₂ emissions is the electricity used to charge the company’s electric fleet. Even today, for example, Audi customers can use green electricity offered by the Volkswagen subsidiary Elli (Electric Life) for charging at home. Meanwhile, the charging network operated by Ionity supplies green electric- ity for charging on the road. The joint ven- ture, of which the Volkswagen Group is a member with the Porsche and Audi brands, operates more than 4,500 charging points in 24 European countries, making it the largest pan-European high-power charging network with a charging capacity of more than 250 kW that is available for all elec- tric vehicle brands. In addition, Audi offers customers a service for charging at public charging terminals with Audi charging.18 Audi drivers therefore have access to around 700,000 charging points in 29 countries in Europe. The Audi network of fast-charging stations, or Audi charging hubs as they are known, was expanded in 2024.",74,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +245,audi.pdf,"The Audi network of fast-charging stations, or Audi charging hubs as they are known, was expanded in 2024. In addition to the charging points in Berlin, Munich, Nuremberg, Salzburg and Zurich, others in Bremen, Frankfurt and Tokyo came into operation during the reporting period. A second Audi charging hub in Tokyo and others in Germany are already planned. Audi is supporting the expansion of renewable energies. In cooperation with VW Kraftwerk GmbH, Audi is co-funding various projects aimed at developing renewable energy such as photovoltaics or wind power – all told some 26 green elec- tricity projects in nine European countries. Since this voluntary initiative was launched in 2021, these green electricity projects have fed around 1.8 terawatt hours into the European electricity grid. VW Kraft- werk GmbH is driving the expansion of renewable energy across Europe. Support is currently being provided for 18 photo- voltaic facilities and eight wind farms in Finland, Germany, Italy, the Netherlands, Poland, Portugal, Spain, Sweden and the United Kingdom. This support is intended to be long term, usually lasting 10 years.",74,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +246,audi.pdf,"This support is intended to be long term, usually lasting 10 years. The projects contracted up to and including 2024 now continuously produce around one terawatt hour of green electricity annually. Audi is also pushing for a reduction in CO₂ emissions in retail together with the Volkswagen Group. The Volkswagen Group dealership network for all brands is present in more than 150 markets world- wide with over 17,000 dealer and service locations that generate a corresponding amount of CO₂ emissions. For this reason, a number of Volkswagen Group brands initiated the goTOzero RETAIL project in 2021. The vision is a dealer and service network with a minimum of negative environmental impacts. To this end, the 18 The Audi Charging Service is available from Volkswagen Group Charging GmbH (Elli), Mollstrasse 1, 10178 Berlin, Germany. Further information on the number of charging points as well as current price plans and contract information can be found at audi.co.uk. AUDI AG assumes no warranty for the operation, availability, charging capacity and/or other fea- tures of the charging infrastructure in question. Access to the Audi Charging Service Portal is only possible with a myAudi account.",74,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +247,audi.pdf,"AUDI AG assumes no warranty for the operation, availability, charging capacity and/or other fea- tures of the charging infrastructure in question. Access to the Audi Charging Service Portal is only possible with a myAudi account. Depending on the individual mobile data plan, additional fees may be charged by the respective mobile phone provider. Photo: AUDI AG",74,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +248,audi.pdf,"75 Audi Report 2024 FinanceStrategy & Company ESG Appendix The Impact Points method has been used since 2023 to demonstrate the environmental performance of the sites as a whole, taking account of all the different environmental aspects. Seven quantifiable envi- ronmental aspects – primary energy consumption, CO₂ equivalents, air pollutants, local water consumption, water pollutants, volume of waste and power plant emissions – are used to categorize and weight the environmental impacts. Through the use of the Impact Points method, the Volkswagen Group aims to reduce the negative environmental impacts of its production sites compared with 2018. Audi has set itself the target of halving these negative environmen- tal impacts by 2030 compared with the base year of 2018. In 2025, this target will replace the environmental impact of production (UEP). Impact Points method Volkswagen Group has set its global dealer and service network ambitious targets for reducing its carbon footprint.",75,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +249,audi.pdf,"In 2025, this target will replace the environmental impact of production (UEP). Impact Points method Volkswagen Group has set its global dealer and service network ambitious targets for reducing its carbon footprint. Starting from the first measurement in 2020, which gave a baseline value of 3.22 metric tons of CO₂ emissions, the aim is to reduce the carbon footprint by at least 30 percent by 2030, at least 55 percent by 2040 and, lastly, at least 75 percent by 2050. Unavoidable CO₂ emissions will be offset. Training courses and manuals are made available to the businesses to help them identify and successfully implement essen- tial decarbonization measures. In addition, an assessment system was developed called “goTOzero RETAIL certification.” It is based on the ISO 14001 standard and on requirements of certification institutes for buildings and ESG rating agencies such as MSCI, ISS and Sustainalytics. The “goT- Ozero RETAIL certification” has now been rolled out in 18 markets worldwide and has been performed successfully at 67 dealers.",75,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.9 " +250,audi.pdf,"The “goT- Ozero RETAIL certification” has now been rolled out in 18 markets worldwide and has been performed successfully at 67 dealers. A total of four levels (bronze, silver, gold and platinum) are possible and reflect the level of compliance with the underlying list of requirements. The first platinum certifi- cate was awarded to a dealer in France. Whereas the “goTOzero RETAIL” initiative has the goal of supporting the global deal- er and service locations on their path to reducing CO₂ emissions, the Audi-specific “e-Readiness check” is a comprehensive assessment of the current status of the charging infrastructure offered by a dealer or service partner. Each participating dealership is provided with an individual implementation plan to help achieve its goals, such as improving charging capacity. It was introduced in 2023 and has been implemented successfully in 13 markets and more than 650 dealerships across Europe. Other markets in Europe as well as in Central America and the Middle East will follow in the course of 2025.",75,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +251,audi.pdf,"Other markets in Europe as well as in Central America and the Middle East will follow in the course of 2025. Phase 5: Decarbonization in the end of life: circular economy and second life AUDI AG is also optimizing the last phase of the life cycle of a vehicle by returning some materials to the value chain follow- ing the utilization phase of the vehicles. This should allow key resource cycles to be closed gradually. In terms of electric cars, the lithium-ion battery is one part that is of particular importance with regard to recycling. High-voltage batteries can con- tinue to be used meaningfully even after many years of service on the road. Audi is pursuing three possible reuse objectives in cooperation with the Volkswagen Group: firstly remanufacturing, which involves using recycled high-voltage batteries again in electric vehicles. The second involves so-called second-life concepts, which give batteries a second life for years outside of an electric vehicle – for instance in the Audi charging hub in Bremen: Audi is setting a new milestone in the expansion of its urban charging infrastructure. Photo: AUDI AG fast-charging stations of an Audi charging hub. And the third is efficient recycling.",75,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +252,audi.pdf,"Photo: AUDI AG fast-charging stations of an Audi charging hub. And the third is efficient recycling. This is done in Germany, for example, at a Volkswagen pilot plant in Salzgitter.",75,"[Guess]: No +[Confidence]: 1.0 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +253,audi.pdf,"76 Audi Report 2024 FinanceStrategy & Company ESG Appendix Key figures Climate change and energy efficiency ¹ Figures refer to the Ingolstadt, Münchsmünster, Neustadt proving ground, Neuburg an der Donau driving experience center, Neckarsulm, Brussels (partially), Győr, San José Chiapa, Sant’Agata Bolognese (Lamborghini), Bologna (Ducati), Map Yang Phon (Ducati) and Crewe (Bentley) (included since 2024) sites. ² Figures refer to the Ingolstadt, Münchsmünster, Neustadt proving ground, Neuburg an der Donau driving experience center, Neckarsulm, Brussels, Győr, San José Chiapa, Sant’Agata Bolognese (Lamborghini), Bologna (Ducati) and Amphur Pluakdaeng (Ducati) sites.",76,"[Guess]: No +[Confidence]: 0.9 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +254,audi.pdf,"Energy Unit 2024¹ 2023² 2022 Reduction in energy consumption as a direct consequence of energy-saving and energy-efficiency initiatives MWh 88,261 81,858 – Electricity MWh 43,207 34,046 – Heat MWh 18,780 13,287 – Natural gas MWh 26,274 34,248 – Oil MWh 0 277 –",76,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +255,audi.pdf,"77 Audi Report 2024 FinanceStrategy & Company ESG Appendix Key figures³ Climate change and energy efficiency Energy Unit 2024 2023 2022 Total energy consumption4 MWh 2,396,033 2,472,100 2,507,115 Automotive segment (incl. components) MWh 2,372,702 2,449,544 2,482,612 MWh/veh. 2.84 2.46 2.74 of which from renewable energy sources Automotive segment (incl. components) MWh 1,799,021 1,692,488 1,724,326 MWh/veh. 1.70 1.70 1.90 Electricity MWh 1,426,448 1,464,670 1,448,444 Automotive segment (incl. components) MWh 1,409,272 1,448,563 1,431,628 MWh/veh. 1.69 1.46 1.58 Heating (incl. district heating) MWh 656,547 669,480 712,403 Automotive segment (incl.",77,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +256,audi.pdf,"1.69 1.46 1.58 Heating (incl. district heating) MWh 656,547 669,480 712,403 Automotive segment (incl. components) MWh 650,536 663,031 704,716 MWh/veh. 0.78 0.67 0.78 of which district heating MWh 303,649 236,826 339,333 Automotive segment (incl. components) MWh 303,566 236,303 338,766 MWh/veh. 0.36 0.24 0.37 Combustion gases for production processes MWh 312,888 337,809 346,006 Automotive segment (incl. components) MWh 312,744 337,809 346,006 MWh/veh. 0.37 0.34 0.38 Refrigeration (externally sourced) MWh 150 141 262 Automotive segment (incl. components) MWh 150 141 262 MWh/veh.",77,"[Guess]: No +[Confidence]: 0.9 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 1.0 " +257,audi.pdf,"components) MWh 150 141 262 MWh/veh. 0.0002 0.0001 0.0003 Exported energy MWh 3,499 1,563 2,733 Automotive segment (incl. components) MWh 3,301 1,302 1,858 MWh/veh. 0.0040 0.0013 0.0020 ³ Figures refer to the Ingolstadt, Münchsmünster, Neckarsulm, Brussels, Győr, San José Chiapa, Crewe (Bentley) since 2022, Sant’Agata Bolognese (Lamborghini), Bologna (Ducati), Neustadt proving ground and Neuburg an der Donau driving experience center (included since 2024) sites. Only car-producing sites including component manufacturing are considered for the specific key figures. The environmental key figures for the current year are data as of February 4, 2025. The figures may contain estimates if, for example, they are based on statements from energy suppliers that were not available when data was collected. If deviations between the actual values and the reported data are identified in the following year, the data is updated.",77,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +258,audi.pdf,"If deviations between the actual values and the reported data are identified in the following year, the data is updated. The individual key figures for 2023 were updated in this report using the actual values for 2023. ⁴ This key figure is made up of electricity and heat consumption as well as the use of fuel gases for production processes and externally supplied refrigeration at the plant.",77,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +259,audi.pdf,"78 Audi Report 2024 FinanceStrategy & Company ESG Appendix Key figures³ Climate change and energy efficiency Fuels Unit 2024 2023 2022 Total fuel use MWh 950,169 1,031,624 950,334 Automotive segment (incl. components) MWh 919,780 1,000,759 916,236 MWh/veh. 1.1 1.01 1.01 of which from renewable energy sources MWh 635,781 217,649 239,303 Automotive segment (incl. components) MWh 635,614 217,649 239,303 MWh/veh. 0.76 0.22 0.26 Natural gas MWh 223,779 581,884 562,873 Automotive segment (incl. components) MWh 195,449 552,821 530,883 MWh/veh. 0.23 0.56 0.59 Biomethane MWh 635,614 217,649 239,303 Automotive segment (incl. components) MWh 635,614 217,649 239,303 MWh/veh.",78,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +260,audi.pdf,"components) MWh 635,614 217,649 239,303 MWh/veh. 0.76 0.22 0.26 Heating oil MWh 3,915 142,096 55,188 Automotive segment (incl. components) MWh 3,915 142,096 55,188 MWh/veh. 0.005 0.143 0.061 Diesel (test rigs) MWh 12,764 14,342 14,481 Automotive segment (incl. components) MWh 12,764 14,342 14,481 MWh/veh. 0.02 0.01 0.02 Gasoline (test rigs) MWh 73,898 73,898 77,923 Automotive segment (incl. components) MWh 72,005 73,109 75,815 MWh/veh.",78,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +261,audi.pdf,"components) MWh 72,005 73,109 75,815 MWh/veh. 0.09 0.07 0.08 ³ Figures refer to the Ingolstadt, Münchsmünster, Neckarsulm, Brussels, Győr, San José Chiapa, Crewe (Bentley) since 2022, Sant’Agata Bolognese (Lamborghini), Bologna (Ducati), Neustadt proving ground and Neuburg an der Donau driving experience center (included since 2024) sites. Only car-producing sites including component manufacturing are considered for the specific key figures. The environmental key figures for the current year are data as of February 4, 2025. The figures may contain estimates if, for example, they are based on statements from energy suppliers that were not available when data was collected. If deviations between the actual values and the reported data are identified in the following year, the data is updated. The individual key figures for 2023 were updated in this report using the actual values for 2023.",78,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +262,audi.pdf,"79 Audi Report 2024 FinanceStrategy & Company ESG Appendix Emissions5 Unit 2024 2023 2022 Greenhouse gas emissions (Scope 1 and 2)6, 7 t CO₂e 162,177 253,035 230,488 Automotive segment (incl. components) t CO₂e 156,288 247,431 224,676 kg CO₂e/veh. 187 249 248 Greenhouse gas emissions (Scope 1)7 t CO₂e 115,525 218,513 186,232 Automotive segment (incl. components) t CO₂e 111,060 213,983 181,580 kg CO₂e/veh. 133 215 200 Greenhouse gas emissions (Scope 2)8 t CO₂e 46,652 34,523 44,256 Automotive segment (incl. components) t CO₂e 45,228 33,449 43,096 kg CO₂e/veh.",79,"[Guess]: Yes +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +263,audi.pdf,"components) t CO₂e 45,228 33,449 43,096 kg CO₂e/veh. 54 35 48 CO₂ reductions in logistics t CO₂e –⁹ 8,744 9,622 CO₂ emissions of the European (EU 27+2) fleet of new passenger cars for the Audi brand; EU excl. UK from 2021 onwards¹⁰ g CO₂/km (WLTP) 121.16 122.59 120.76 Key figures³ Climate change and energy efficiency ³ Figures refer to the Ingolstadt, Münchsmünster, Neckarsulm, Brussels, Győr, San José Chiapa, Crewe (Bentley) since 2022, Sant’Agata Bolognese (Lamborghini), Bologna (Ducati), Neustadt proving ground and Neuburg an der Donau driving experience center (included since 2024) sites. Only car-producing sites including component manufacturing are considered for the specific key figures. The environmental key figures for the current year are data as of February 4, 2025. The figures may contain estimates if, for example, they are based on statements from energy suppliers that were not available when data was collected.",79,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +264,audi.pdf,"The environmental key figures for the current year are data as of February 4, 2025. The figures may contain estimates if, for example, they are based on statements from energy suppliers that were not available when data was collected. If deviations between the actual values and the reported data are identified in the following year, the data is updated. The individual key figures for 2023 were updated in this report using the actual values for 2023. ⁵ The process of selecting relevant emissions and the emission factors applied are anchored – like the entire key figure collection process – in the Volkswagen standard 98000. Generally, Audi uses the real emission factors of the energy suppliers. If this is not possible, calculations are made on the basis of the VDA’s standard factors. Note: This footnote does not relate to the key figure for “CO₂ reductions in logistics.” ⁶ GHG emissions (Scope 1 and 2) in the Automotive segment (incl. components) per vehicle; corresponds to the intensity quotient for greenhouse gas emissions shown in previous reports. ⁷ CO₂ emissions for the purchased biomethane certificates were calculated in accordance with the requirements of the internationally recognized Greenhouse Gas Protocol. Scope 2 was calculated on a market-related basis. ⁸ Calculated according to the Greenhouse Gas Protocol.",79,"[Guess]: No +[Confidence]: 0.9 +","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +265,audi.pdf,"Scope 2 was calculated on a market-related basis. ⁸ Calculated according to the Greenhouse Gas Protocol. Scope 2 was calculated on a market-related basis. ⁹ Since 2020, the key figure “CO₂ reductions in logistics” has only been reported in the following year. The reason for this is the change in the reporting process, as a result of which the key figure cannot be evaluated by the publication date at present. ¹⁰ Subject to the official data of the European Commission in the annual CO₂ fleet monitoring report of the Volkswagen emissions pool.",79,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +266,audi.pdf,"80 Audi Report 2024 FinanceStrategy & Company ESG Appendix Extended environmental key figures for all sites at which models of the Audi brand are produced¹¹, ¹², ¹³ Climate change and energy efficiency 4 This key figure is made up of electricity and heat consumption as well as the use of fuel gases for production processes and externally supplied refrigeration at the plant. 11 Figures refer to the Ingolstadt, Münchsmünster, Neckarsulm, Brussels, Győr and San José Chiapa (Audi), Martorell (Seat), Chhatrapati Sambhajinagar, Bratislava (Škoda), São José dos Pinhais and Zwickau (Volkswagen Passenger Cars), Anting and Ningbo (SAIC VW), Changchun, Tianjin, Qingdao and Foshan (FAW-Volkswagen sites. Only car-producing sites including component manufacturing are considered for the specific key figures. 12 Calculation of the key figures was adjusted for the reporting year as well as for the prior-year figures. 13 The underlying key figures for each site are calculated on a pro rata basis according to the number of units of the Audi brand produced at the site.",80,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +267,audi.pdf,"13 The underlying key figures for each site are calculated on a pro rata basis according to the number of units of the Audi brand produced at the site. 14 The process of selecting relevant emissions and the emission factors applied are anchored – like the entire key figure collection process – in the Volkswagen standard 98000. Calculated according to the Volkswagen CSRD Handbook. Scope 2 was calculated on a market-related basis. Unit 2024 2023 2022 Total energy consumption4 MWh 3,246,992 3,549,439 3,416,092 of which from renewable energy sources MWh 1,946,099 – – Total energy consumption (specific) MWh/veh. 1.95 1.83 2.02 Gas consumption (not from renewable sources) MWh 581,629 – – Total GHG emissions (Scope 1 and 2)14 t CO₂e 628,425 771,261 734,438 Total GHG emissions (Scope 1 and 2, specific) t CO₂e/veh. 0.38 0.40 0.43",80,"[Guess]: Yes +[Confidence]: 0.9 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +268,audi.pdf,"81 Audi Report 2024 FinanceStrategy & Company ESG Appendix R educing environmental pollution is one of the major challenges of the present time. A clean envi- ronment is the basis for a high quality of life and biodiversity. Illnesses and chron- ic damage to health can be prevented by reducing emissions of air pollutants and the discharge of microplastics and substances of very high concern into the environment. The global relevance of environmental protection is also evidenced by the United Nations Sustainability Goals. Moreover, the significance of the issue is underscored by the European Union’s Zero Pollution Action Plan. Air pollutants include, for example, nitrogen oxides (NOx), particulate matter, sulfur dioxide (SO₂) and ozone. NOx, SO₂ and particulate matter are produced by the combustion processes in engines, among other things. Particulate matter is also discharged into the air as the result of the abrasion of brake pads and disks. This results in the risk of health impacts. Microplastics are tiny particles formed by the abrasion or decomposition of plastics. They are found all over the world and accumulate in food products, water, the air and soil.",81,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +269,audi.pdf,"Microplastics are tiny particles formed by the abrasion or decomposition of plastics. They are found all over the world and accumulate in food products, water, the air and soil. Vehicle tire abrasion also in- creases the amount of microplastics in the environment. Substances of very high concern (SVHCs) – like the phthalates used as plasticizers in plastics – may have irreversible effects on human health and the environment. For this reason, their use is strictly regulated. Sustainable Development Goals The following SDGs are at the focus of this company commitment: Further information on Audi and the UN sustainability goals can be found on page 160. During production and in the use of its vehicles, Audi is committed to improving air pollution control and to reducing the occurrence of microplastics and substances of very high concern (SVHCs). Reduction in environmental pollution GRI 305 Photo: AUDI AG",81,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +270,audi.pdf,"82 Audi R eport 2024 FinanceStrategy & Company ESG Appendix Regulations to reduce environmental impacts Audi views environmental protection as an element of its corporate responsibility. Regulatory requirements and voluntary commitments in this regard apply to all Audi products, services and operations. Complying with ethical and statutory requirements is a matter of course and the minimum that Audi can do. The company takes various approaches in fulfilling its responsibility to reduce environmental pollution in production and during the use of the vehicles it manufactures. It does so independently of the available technical options and legal requirements. To minimize the negative impacts of its business operations on the environment, the Audi Group has adopted an extensive range of rules and regulations based on the corresponding legislation. In the Audi Code of Conduct (CoC), for example, the Group commits to protecting the environment. Contributions to this come from its efforts to control air pollution and avoid the discharge of microplastics, pollutants and hazardous materials. Also applicable are the Audi Statements of Principle, which focus on sustainable corporate governance. Their provisions include the requirement that vehicle development and production must be based on a comprehensive analysis of potential environmental impacts.",82,"[Guess]: No +[Confidence]: 0.9 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +271,audi.pdf,"Also applicable are the Audi Statements of Principle, which focus on sustainable corporate governance. Their provisions include the requirement that vehicle development and production must be based on a comprehensive analysis of potential environmental impacts. A further contribution comes from the Common Corporate Policy, which gives high priority to the measures aimed at reducing environmental impacts. In order to implement regulatory requirements and voluntary commitments and monitor compliance, Audi has established a validated Energy and Environmental Compliance Management System. Measures to improve environmental protection relate to the supply chain and logistics, the production of vehicles and the phase of utilization by customers. Reduction in environmental pollution in the supply chain and logistics Audi requires its suppliers to comply with the Code of Conduct for Business Partners (CoCBP). This also relates to measures for reducing air emissions that represent a hazard to the environment and health as well as to measures aimed at entire- ly avoiding the use of substances and materials with detrimental impacts on the environment or health. Pollutants may be emitted into the air when transporting goods using trucks with internal combustion engine, ships or aircraft. This applies both to supplies to Audi and to the delivery of Audi vehicles. A well-designed logistics system can therefore reduce harmful air emissions.",82,"[Guess]: No +[Confidence]: 0.99 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +272,audi.pdf,"This applies both to supplies to Audi and to the delivery of Audi vehicles. A well-designed logistics system can therefore reduce harmful air emissions. Audi is committed to avoiding transport operations. In those cases where this is not possible, environmental compatibility must be considered when selecting the mode of transport and transport opera- tions should be shifted from road to rail, for example. Intelligent logistics man- agement helps steer necessary transport operations. Further information can be found in the chapter Climate change and energy efficiency. Reduction in environmental pollution in production In its production processes, Audi ensures compliance with all statutory requirements in respect of the emission of air pollutants. As far as possible, it also seeks to minimize the emission of air pollutants from pro- duction. The company monitors emissions by way of regular measurement to ensure compliance with the thresholds defined by authorities and create the ability to inter- vene in and optimize processes at an early stage. Documentation obligations require that the quantities of refrigerants, nitro- gen oxides (NO x), particulate matter (PM), sulfur dioxide (SO₂) and volatile organic compounds (VOC) are recorded in addition to greenhouse gas emissions.",82,"[Guess]: No +[Confidence]: 0.9 +user","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +273,audi.pdf,"During vehicle painting operations, VOCs are released in the paint booth. High concentrations of particles in the overspray can trigger respiratory illnesses or allergic reactions, for example. In order to reduce the emission of paint particles and VOCs into the air, Audi uses modern separation processes in the paint shops in Ingolstadt and Neckarsulm. As part of the paint shop modernization in Ingolstadt, the company is installing a new top coat unit with two parallel painting lines. The first line will be commissioned in the first quarter of 2025, with the second line set to follow in 2027. In the modernized paint shops, the paint separation process is being switched from water to an air filter technology which captures the overspray in cardboard filters. The purified exhaust air is returned to the spray booth via an air circulation system. This technology makes it possible to reuse more than 90 percent of the process air and results in an improved water, energy and waste balance overall. The concentrated VOC-contaminated exhaust air from the spray booth is puri- fied in a regenerative thermal oxidation process, which uses high temperatures to break down the VOCs.",82,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +274,audi.pdf,"The concentrated VOC-contaminated exhaust air from the spray booth is puri- fied in a regenerative thermal oxidation process, which uses high temperatures to break down the VOCs. The process is virtually self-sufficient in energy: The heat from the treated exhaust air is transferred to a regenerator, which in turn heats the untreated exhaust air. Reduction in SVHCs in Audi vehicles The use of substances of very high concern (SVHCs) is governed by the European Union’s REACH Regulation (1907/2006). This regulates the registration, evaluation, authorization and restriction of chemical substances in the EU member states. SVHCs are included in the Candidate Modernized paint shop in Ingolstadt. Photo: AUDI AG",82,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +275,audi.pdf,"83 Audi Report 2024 FinanceStrategy & Company ESG Appendix List of substances requiring authoriza- tion, which contained 247 substances or substance groups as of the reporting date. Substances on the Candidate List are eligible for possible authorization in accor- dance with REACH Annex XIV. A company may only use Annex XIV substances if it has received authorization to do so from the European Chemicals Agency (ECHA). As of the reporting date, Annex XIV included 59 substances or substance groups. As a matter of principle, Audi wants to reduce SVHCs in its products and its own production processes. The basis for this are Volkswagen Group standards VW 91101 “Environmental Standard for Articles – Material and Chemical Conformity,” which applies to all component suppliers, and VW 50156 “Conditions for Verification and Release of Chemicals,” which applies for chemical substances. In accordance with Article 33 of the REACH Regulation, Audi provides its customers on request with information about which SVHCs may be present in a vehicle. The main obligations imposed on the company by the REACH Regulation have also been incorporated into the Audi REACH Handbook and the Audi Corporate Regulations.",83,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +276,audi.pdf,"The main obligations imposed on the company by the REACH Regulation have also been incorporated into the Audi REACH Handbook and the Audi Corporate Regulations. To ensure compliance with the requirements, a working group has been established under the leadership of the head of Chemical Safety (REACH manager). Also represented in the working group are URBANFILTER A project funded by the Audi Environmental Foundation and TU Berlin: During four years of research, laboratory and field tests demonstrate the efficiency of the filter system in keeping microplastics out of gullies. You can find more information at audi-umweltstiftung.de. Procurement, Legal Affairs, Quality Assurance, Development, Sales and Environmental Protection. The working group has identified key tasks and pressed ahead with their execution. At Audi pro- duction facilities, all chemical products are tested in-house and may only be used once they have been released. Hazards to people and the environment can be largely avoided if these substances are used for their intended purpose. The SVHCs include substances that are carcinogenic, mutagenic or toxic to repro- duction (CMR1 substances) such as lead or cadmium compounds.",83,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +277,audi.pdf,"The SVHCs include substances that are carcinogenic, mutagenic or toxic to repro- duction (CMR1 substances) such as lead or cadmium compounds. Audi has committed to not using CMR1 substances in vehicle production. These substances may only be used in justified exceptional cases and taking account of the principle of substi- tution. Reduction in environmental pollution in the utilization phase Air pollutants – mainly nitrogen ox- ides (NOx) and particulate matter – are produced during the utilization of vehi- cles powered by fossil fuels. Advances in internal combustion engines and the use of modern filter technologies to purify exhaust gases reduce the emission of air pollutants during the utilization phase as well. In diesel vehicles, a multi-stage puri- fication process is used, combining AdBlue additive and an oxidation catalyst (NSC). This type of exhaust gas treatment Photos: AUDI AG, DNM Dreinullmotion GmbH",83,"[Guess]: No +[Confidence]: 0.9","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +278,audi.pdf,84 Audi Report 2024 FinanceStrategy & Company ESG Appendix Emissions2 Unit 2024 2023 2022 VOC emissions3 t 708 672 977 Automotive segment (incl. components) kg/veh. 0.85 0.68 1.08 Direct NOx emissions4 t 180 195 189 Automotive segment (incl. components) kg/veh. 0.22 0.19 0.21 Sulfur dioxide Automotive segment (incl. components) t 1.42 1.69 0.96 kg/veh. 0.002 0.002 0.001 Total dust Automotive segment (incl. components) t 37 44 47 kg/veh.,84,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +279,audi.pdf,"0.002 0.002 0.001 Total dust Automotive segment (incl. components) t 37 44 47 kg/veh. 0.04 0.04 0.05 Key figures1 Reduction in environmental pollution ¹ Figures refer to the Ingolstadt, Münchsmünster, Neckarsulm, Brussels, Győr, San José Chiapa, Crewe (Bentley) since 2022, Sant’Agata Bolognese (Lamborghini), Bologna (Ducati), Neustadt proving ground and Neuburg an der Donau driving experience center (included since 2024) sites. Only car-producing sites including component manufacturing are considered for the specific key figures. The environmental key figures for the current year are data as of February 5, 2025. The figures may contain estimates if, for example, they are based on statements from energy suppliers that were not available when data was collected. If deviations between the actual values and the reported data are identified in the following year, the data is updated. The individual key figures for 2023 were updated in this report using the actual values for 2023.",84,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +280,audi.pdf,"If deviations between the actual values and the reported data are identified in the following year, the data is updated. The individual key figures for 2023 were updated in this report using the actual values for 2023. ² The process of selecting relevant emissions and the emission factors applied are anchored – like the entire key figure collection process – in the Volkswagen standard 98000. ³ This key figure consists of emissions from paint shops, test rigs and other facilities. ⁴ This key figure consists of NOX emissions caused by plant boiler houses, paint shops and the operation of test rigs. reduces nitrogen oxide emissions from TDI engines, for example. Gasoline vehicles are equipped with a gasoline particulate filter to purify the exhaust gases. Reduction in microplastics In addition to the air pollutants described above, emissions to the environment also include microplastics resulting from brake and tire abrasion. Each year, tire abrasion on German roads alone generates around 110,000 metric tons of microplastics. Audi aims to reduce environmental pollu- tion with microplastics resulting from the use of vehicles. A current project on the topic of micro- plastics is being supported by the Audi Environmental Foundation, which has been committed to research into environ- mental protection technologies for more than 15 years.",84,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +281,audi.pdf,"A current project on the topic of micro- plastics is being supported by the Audi Environmental Foundation, which has been committed to research into environ- mental protection technologies for more than 15 years. It is supporting scientists at the Technical University of Berlin (TU Berlin) in developing a filter system for road gullies. This is aimed at reducing the amount of pollutant particles that enter the sewer system or aquatic environment together with rainwater. The project has been named URBANFILTER. The system consists of up to nine modules, enabling the filter to be adapted to the respective location and capture microplastics before they can enter the water cycle. The filter is subsequently emptied and the particles disposed of properly. The URBANFILTER has already been tested successfully at an ADAC (German Automobile Club) site and in real conditions on a busy Berlin street. The filter used in these tests captured up to 97 percent of solid matter and 66 percent of particulate matter, even during heavy rain. The first practical application of a near-production prototype outside Germany started in Copenhagen (Den- mark) in November 2024.",84,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +282,audi.pdf,"The first practical application of a near-production prototype outside Germany started in Copenhagen (Den- mark) in November 2024. Following this pilot phase, the system is to be rolled out in several stages and its performance assessed and validated scientifically by TU Berlin and the URBANFILTER SUSTAIN- ABILITY HUB.",84,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +283,audi.pdf,"85 Audi Report 2024 FinanceStrategy & Company ESG Appendix Sustainable Development Goals The following SDGs are at the focus of this company commitment: Further information on Audi and the UN sustainability goals can be found on page 160. Water stewardship Audi is committed to the responsible use of water as a resource: Ecologically weighted water consumption¹ at the Audi production sites² is to be cut by around half by 2035 compared with the baseline year 2019. C lean drinking water is one of our most valuable resources. It is the basis for human life and promotes biodiversity. As a resource, water is char- acterized by its scarcity and inequitable availability globally. It must therefore be handled responsibly. Even though more than two-thirds of our planet is covered by water, less than one percent of this is readily accessible fresh water. Inefficient water management, increasing pollution and events such as droughts and extreme fluctuations in precipitation as a result of climate change are leading in many regions to rising levels of water stress. Access to clean water is therefore regarded as one of the 17 global sustainability goals of the United Nations.",85,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +284,audi.pdf,"Access to clean water is therefore regarded as one of the 17 global sustainability goals of the United Nations. The careful use of natural resources, in- cluding water, is set out in the Volkswagen Group’s regenerate+ sustainability strate- gy. Building on this, the Volkswagen Group regulates support for closed water loops at its production sites in the goTOzero GRI 303 ¹ Ecologically weighted water consumption makes it possible for AUDI AG to compare absolute water requirements at all Audi sites worldwide, while taking into account the prevail- ing local water stress factors and the use of rainwater. This allows the company to prioritize savings in areas where water availability is particularly short. ² Audi production sites in Ingolstadt and Neckarsulm (Germany), Brussels (Belgium), Győr (Hungary), San José Chiapa (Mexico). Production at the Brussels plant was discontinued at the end of February 2025. Photo: AUDI AG",85,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +285,audi.pdf,"86 Audi Report 2024 FinanceStrategy & Company ESG Appendix Fresh water consumption in the Audi Group in m³ and in m³/veh. Careful use of resources such as water is a key component of the Audi Mission: Zero environmental program. Parallel operation of water-consuming facilities (for example, paint shops) due to the modernization of production equipment resulted in a temporary increase in water consumption compared with the previous year. In the year under review, this – in combination with lower unit volumes – resulted in higher fresh water require- ments per vehicle. environmental mission statement. The Group’s environmental mission state- ment also sets out to protect ecosystems by reducing the discharge of pollutants via wastewater. The Zero Impact Factory strategy for the production sites of the Volkswagen Group aims to reduce fresh water extraction, promote the efficient use of water and minimize the discharge of substances hazardous to water, while also ensuring that the ecological and chemical quality of the waterways into which the wa- ter flows does not deteriorate. The Impact Points method has been used since 2023 to show the environmental performance of the Volkswagen sites as a whole, taking account of all the different environmental aspects.",86,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +286,audi.pdf,"The Impact Points method has been used since 2023 to show the environmental performance of the Volkswagen sites as a whole, taking account of all the different environmental aspects. Seven quantifiable environmental aspects are used to categorize and weight the environmental impacts, including local water consumption and the discharge of pollutants via wastewater. Further infor- mation on the methodology can be found in the section “Climate change and energy efficiency.” With its Mission:Zero environmental program, AUDI AG addresses a number of fields of action,³ including the responsible use of water. Further key guidelines for Audi are the Common Corporate Policy and the Booklet of Policies. The careful use of natural resources is also an integral part of the Audi Code of Conduct, which is binding for all employees. Through the Code of Conduct for Business Partners, Audi also places obligations on its suppliers with respect to the responsible use of water. The company uses its Environmental Compliance Management System to identify, evaluate and control environmen- tal risks and in this way helps to ensure compliance with environmental protection guidelines.",86,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +287,audi.pdf,"The company uses its Environmental Compliance Management System to identify, evaluate and control environmen- tal risks and in this way helps to ensure compliance with environmental protection guidelines. In addition to strategic alignment and compliance with statutory and in-house requirements, Audi fosters relationships with its stakeholders and actively involves them in striving to meet its sustainability objectives. In 2023, Audi became the first premium car manufacturer to become a member of the Alliance for Water Stewardship (AWS). This global network of companies, NGOs and public-sector the production facility in San José Chiapa (Mexico) was the first car manufacturing plant in the world to be certified by the AWS for its considerate use of the resource water.⁴ In 2018, Audi became the automo- tive industry’s first premium manufacturer worldwide to produce vehicles without any wastewater in Mexico. Water use in the supply chain Regional differences in the availability of clean water are particularly challenging when it comes to developing a water strat- egy for the supply chain. Audi therefore pursues a risk-based approach that takes regional availability into account. This approach was piloted in Mexico in the year under review, a region with a high level of water stress.",86,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +288,audi.pdf,"Audi therefore pursues a risk-based approach that takes regional availability into account. This approach was piloted in Mexico in the year under review, a region with a high level of water stress. Based on an analysis of the material groups and components that require a significant amount of water to manufacture, Audi identified relevant suppliers with local production operations. These suppliers were offered a series of training measures on the topic of sustain- able water management that were devel- oped and implemented in order to raise awareness of the topic and to build know- how locally. Down the line, these suppliers were surveyed on their water consumption and the measures they had already taken. Based on the results of this survey, Audi chose suppliers it believed offered specific potential to jointly develop solutions. Audi is conducting in-depth discussions and workshops with these suppliers with a view to developing additional measures for sustainable water management. Five levers for improving water protection at the Audi production sites² Water is indispensable in automotive production, for example in the paint shop or when testing for leaks. On average, it currently takes around two to three cubic meters of water to produce a vehicle.",86,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +289,audi.pdf,"On average, it currently takes around two to three cubic meters of water to produce a vehicle. Reducing the amount of water used in pro- duction is therefore one of the focal points of the Audi Mission:Zero environmental program. The responsible use of water helps to increase security of supply in the surrounding regions and preserve the ² Audi production sites in Ingolstadt and Neckarsulm (Germany), Brussels (Belgium), Győr (Hungary), San José Chiapa (Mexico). Production at the Brussels plant was discontinued at the end of February 2025. ³ The action areas of Mission:Zero comprise decarbonization, resource efficiency, water management and the promotion of biodiversity. 4 The Alliance for Water Stewardship (AWS) standard is an internationally applicable set of rules for companies and organizations aiming to use water as efficiently as possible (water management) and with due consideration of all relevant interest groups in the respective catchment area (responsibility for water resources). Further information on the AWS standard can be found here. Illustration: C3 Visual Lab 2024 2023* 2022 2,909,700 2,875,161 2,963,797 * The prior-year figure was adjusted in accordance with the final data status.",86,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +290,audi.pdf,"Total fresh water consumption in m³ 2024 2023 2022 3.11 2.82 3.46 Fresh water consumption, Automotive segment (incl. components) in m³/veh. bodies is committed to the responsible use of water resources across the value chain. The AWS standard is an internation- ally applicable set of rules for companies and organizations aiming to use water as efficiently as possible and with due con- sideration of all relevant interest groups in the respective catchment area. In 2023,",86,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +291,audi.pdf,"87 Audi Report 2024 FinanceStrategy & Company ESG Appendix quality of drinking water. By 2035, Audi intends to reduce ecologically weighted water consumption¹ at its production sites² by around 50 percent compared with 2019. The company sources water from water supply companies or extracts it itself from rainwater, surface water and groundwater. Already today, water is recycled following its first use in Audi production processes and reused multiple times in the cycle. Wastewater produced that cannot be re- used internally within the plant is properly discharged. This generally takes place indi- rectly via a municipal wastewater disposal company. All legal requirements regarding wastewater load are complied with; these are based on national and local legislation in the countries and regions in which Audi has Audi production sites.² Audi is not aware of any negative impacts due to the discharge of wastewater. Any such impacts would be identified in the course of discus- sions with stakeholders such as authorities, for example. The company’s strategic approach to water management concentrates on five key levers: 1. Process optimization: Water that is not needed does not have to be sourced in the first place. Audi therefore wants to optimize all production processes in terms of water consumption.",87,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +292,audi.pdf,"Process optimization: Water that is not needed does not have to be sourced in the first place. Audi therefore wants to optimize all production processes in terms of water consumption. 2. Expansion of water cycles: Reusing wastewater reduces fresh water consump- tion and the discharge of wastewater. Audi production sites² are committed to closed water loops in order to minimize environ- mental impact. 3. Drinking water-free production: Drinking water is a very high-quality and therefore valuable resource. Initiatives have therefore been rolled out at the production sites² to reduce the use of drinking water in production and thus make the use of drinking water the exception rather than the rule. ¹ Ecologically weighted water consumption makes it possible to compare absolute water requirements at all Audi sites worldwide, while taking into account the prevailing local water stress factors and the use of rainwater. This allows the company to prioritize savings in areas where water availability is particularly short. ² Audi production sites in Ingolstadt and Neckarsulm (Germany), Brussels (Belgium), Győr (Hungary), San José Chiapa (Mexico). ⁵ Pollution loads are constituents in the water that arise, for example, as a result of essential process steps in vehicle production and development.",87,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +293,audi.pdf,"⁵ Pollution loads are constituents in the water that arise, for example, as a result of essential process steps in vehicle production and development. These constituents are reduced through water treatment up to the legally required limit before being discharged into the sewer system or drainage channel. 4. Use of rainwater: Rainwater should pri- marily be able to re-enter the groundwater. Where this is not possible, Audi aims to collect and reuse rainwater. 5. Reducing pollution loads:⁵ Pollutants should be prevented from entering the water in the first place. Audi complies with the statutory requirements relating to the discharge of pollutants into water at its production sites² and furthermore strives to minimize such discharge. With all levers, the company takes not only water consumption into account in production, but also regional differences such as water scarcity in the respective re- gion. It establishes in which regions water is particularly precious and prioritizes the implementation of new measures there. In the year under review, Audi implement- ed measures at the following production sites aimed at ensuring sustainable water management: Photo: AUDI AG",87,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +294,audi.pdf,"88 Audi Report 2024 FinanceStrategy & Company ESG Appendix Total volume of wastewater discharge of the Audi Group in m³/veh. The volume of wastewater is approx- imately at the prior-year level. At the same time, the volume of wastewater per vehicle is increasing due to the paral- lel operation of production facilities as a result of modernization measures. Volume of wastewater, Automo- tive segment (incl. components) in m³/veh. Neckarsulm Audi is building a new waterworks system at its site in Neckarsulm, which is due to go into operation in 2025. The shell of the building was already completed in the year under review. The new facility enables a closed water cycle with the wastewater treatment plant of the “Unteres Sulmtal” wastewater association adjacent to the plant. Water that has been purified by the wastewater treatment plant is further processed for production with the help of filter systems and membranes. After being used in production processes, the resulting wastewater is returned to the wastewa- ter treatment plant.",88,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +295,audi.pdf,"After being used in production processes, the resulting wastewater is returned to the wastewa- ter treatment plant. The resulting water cycle should then reduce total fresh water consumption at the Neckarsulm site by up to 70 percent (baseline year 2010). Water consumption in the painting process is particularly high compared with other sub-processes in the production of vehi- cles. For this reason, the paint shop at the Neckarsulm site is being equipped with the very latest, water-efficient technology. This technology is expected to consume around 20 percent less energy and water com- pared with current levels. The new primer facility was launched, for example, in the year under review. Thanks to a sophis- ticated treatment process, rinse waters can be re-used here many times. Two-fold bath agitation and different maintenance measures, such as bag and magnetic filters, ensure that the 600,000 liters can be reused multiple times in the cathodic dip-painting tank. In the area of the top coat line too, the company has already carried out restructuring work.",88,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +296,audi.pdf,"In the area of the top coat line too, the company has already carried out restructuring work. A new paint separation process using filters instead of water has been introduced, which allows Audi to make energy savings of roughly 50 kilowatt hours per vehicle. The overspray is collected by modern filters as a result of the change. Up to now, any particles that did not end up on the car body were absorbed in water and disposed of. The change has resulted in an improved waste balance and a significant reduction in the amount of fresh water used. Following thorough cleaning, a disused refrigerant tank now acts as a rainwater storage tank in Neckarsulm. It can collect 25 cubic meters of water from the roofs of the neighboring production hall by means of newly installed pipework. If needed, the stored rainwater is taken by tanker trucks provided by site services and used to water the green spaces on the plant premises. In this way, Audi is reducing the amount of treated process water it uses. In addition, re-use of the former refrigerant tank prevents the need for scrapping and thus saves resources.",88,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +297,audi.pdf,"In this way, Audi is reducing the amount of treated process water it uses. In addition, re-use of the former refrigerant tank prevents the need for scrapping and thus saves resources. Ingolstadt The construction of a new treatment plant for rainwater and cooling tower waste- water began in the year under review. The plan is for it to replace the old plant from the first quarter of 2027, when it will be used to generate around 300,000 cubic meters of process water a year. The use of more modern technology improves the quality of the process water, thus expand- ing the range of possible uses to additional production areas. Various optimizations were carried out at the process water supply center (commis- sioned in 2019) – for example, a waste- water line was re-routed and changes were made to the circuitry in the process water storage tank. AUDI AG is now saving roughly 60,000 cubic meters of fresh water annually as a result. San José Chiapa Concentrated wastewater is dried and thickened in an evaporation pond until the residual materials can be disposed of.",88,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +298,audi.pdf,"San José Chiapa Concentrated wastewater is dried and thickened in an evaporation pond until the residual materials can be disposed of. In 2024, an additional cleaning stage was installed upstream of the evaporation pond (reverse osmosis) to reduce the load on the evaporation pond. Some 15,000 cubic meters of process water can now also be generated per year and supplied to production and for irrigation. Győr In Győr, the water consumption of the cool- ing towers was optimized in the year under review. The measure is expected to save up to 1,000 cubic meters of fresh water per year in the future. Illustration: C3 Visual Lab 2024 2023 2022 1.88 1.71 2.07",88,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +299,audi.pdf,"89 Audi Report 2024 FinanceStrategy & Company ESG Appendix Key figures¹ Water stewardship Water Unit 2024 2023 2022 Total fresh water extraction² m³ 2,963,797 2,875,161³ 2,909,700 of which in regions with an extreme risk of water stress⁴ m³ 66,660 58,349 83,430 of which in regions with a high risk of water stress⁴ m³ 359,964 122,096 432,938 of which in regions with a medium risk of water stress⁴ m³ 1,752,430 1,946,305 1,680,720 of which in regions with a low risk of water stress⁴ m³ 784,743 749,838 712,613 of which in regions with an extreme risk of water stress⁴ Percent 2 2 3 of which in regions with a high risk of water stress⁴ Percent 12 4 15 of which in regions with a medium risk of water stress⁴ Percent 59 68 58 of which in regions with a low risk of water stress⁴ Percent 26 26 24 Total fresh water consumption² m³ 2,963,",89,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +300,audi.pdf,"963,797 2,875,161³ 2,909,700 of which in Europe m³ 2,790,819 2,653,985 2,726,602 of which in North America m³ 157,407 216,201 178,056 of which in Asia m³ 15,571 6,402 5,042 ¹ Figures refer to the Ingolstadt, Münchsmünster, Neckarsulm, Brussels, Győr, San José Chiapa, Crewe (Bentley) since 2022, Sant’Agata Bolognese (Lamborghini), Bologna (Ducati), Neustadt proving ground and Neuburg an der Donau driving experience center (included since 2024) sites. ² All purchased and produced fresh water can be assigned to the category “fresh water (≤1000 mg/l total dissolved solids).” ³ The prior-year figures were adjusted in accordance with the final data status. ⁴ Information on the water stress risk according to the Maplecroft Water Stress Index.",89,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 1.0 " +301,audi.pdf,"90 Audi Report 2024 FinanceStrategy & Company ESG Appendix Key figures¹ Water stewardship Wastewater recirculation² Unit 2024 2023 2022 Total wastewater m³ 1,742,577 1,716,377 – of which recirculation to surface water m³ 13,199 8,519 – of which recirculation to sea water m³ 0 0 – of which recirculation to other organization m³ 1,729,378 1,707,858 – Total wastewater m³ 1,742,577 1,716,377 – of which recirculation to regions with an extreme risk of water stress³ m³ 19,369 14,766 – of which recirculation to regions with a high risk of water stress³ m³ 180,928 96,861 – of which recirculation to regions with a medium risk of water stress³ m³ 924,627 1,005,358 – ¹ Figures refer to the Ingolstadt, Münchsmünster, Neckarsulm, Brussels, Győr, San José Chiapa, Crewe (Bentley) since 2022, Sant’Agata Bolognese (Lamborghini),",90,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +302,audi.pdf,"Münchsmünster, Neckarsulm, Brussels, Győr, San José Chiapa, Crewe (Bentley) since 2022, Sant’Agata Bolognese (Lamborghini), Bologna (Ducati), Neustadt proving ground and Neuburg an der Donau driving experience center (included since 2024) sites. If deviations between the actual values and the reported data are identi- fied in the following year, the data is updated. The individual key figures for 2023 were updated in this report using the actual values for 2023. ² All purchased and produced fresh water can be assigned to the category “fresh water (≤1000 mg/l total dissolved solids).” ³ Information on the water stress risk according to the Maplecroft Water Stress Index. 4 The prior-year figures were adjusted in accordance with the final data status. Water² Unit 2024 2023 2022 Total fresh water consumption m³ 2,963,797 2,875,161⁴ 2,909,700 Automotive segment (incl. components) m³ 2,881,566 2,810,410 2,821,228 m³/veh.",90,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +303,audi.pdf,"components) m³ 2,881,566 2,810,410 2,821,228 m³/veh. 3.46 2.82 3.11 Fresh water consumption, internal catchment m³ 1,884,144 1,743,941 1,716,820 Automotive segment (incl. components) m³ 1,836,294 1,701,838 1,648,922 m³/veh. 2.2 1.71 1.82 Precipitation used m³ 175,771 130,755 157,608 Surface water from lakes, rivers, oceans m³ 591,598 583,577 543,445 Groundwater m³ 1,116,775 1,029,609 1,015,767 Fresh water consumption, externally sourced m³ 1,079,654 1,131,289 1,192,880 Automotive segment (incl. components) m³ 1,045,273 1,108,641 1,172,306 m³/veh. 1.25 1.11 1.29",90,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +304,audi.pdf,"91 Audi Report 2024 FinanceStrategy & Company ESG Appendix Wastewater Unit 2024 2023 2022 Volume of wastewater m³ 1,742,577 1,716,552 1,723,787 Automotive segment (incl. components) m³ 1,722,706 1,716,377 1,705,373 m³/veh.",91,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +305,audi.pdf,"components) m³ 1,722,706 1,716,377 1,705,373 m³/veh. 2.07 1.71 1.88 Direct discharge² m³ 13,199 8,519 4,711 Indirect discharge² m³ 1,729,378 1,707,858 1,719,076 Wastewater load Chemical oxygen demand kg 677,473 548,815 441,125 Total phosphorous content as phosphorous (P) kg 8,000 7,297 6,661 Total nitrogen as nitrogen (N) kg 74,223 65,836 62,054 Zinc kg 480 478 536 ¹ Figures refer to the Ingolstadt, Münchsmünster, Neckarsulm, Brussels, Győr, San José Chiapa, Crewe (Bentley) since 2022, Sant’Agata Bolognese (Lamborghini), Bologna (Ducati), Neustadt proving ground and Neuburg an der Donau driving experience center (included since 2024) sites.",91,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +306,audi.pdf,"If deviations between the actual values and the reported data are identi- fied in the following year, the data is updated. The individual key figures for 2023 were updated in this report using the actual values for 2023. ² Direct dischargers: Münchsmünster site; indirect dischargers: Ingolstadt, Münchsmünster, Neckarsulm, Brussels, Győr, Crewe (Bentley), Sant’Agata Bolognese (Lamborghini), Bologna (Ducati), Map Yang Phon (Ducati) sites. ³ Figures refer to the Ingolstadt, Münchsmünster, Neckarsulm, Brussels, Győr and San José Chiapa (Audi), Martorell (Seat), Chhatrapati Sambhajinagar and Kaluga (up to 2022) (Skoda), Bratislava, São José dos Pinhais and Zwickau (Volkswagen Passenger Cars), Anting and Ningbo (SAIC VW), Changchun, Tianjin, Qingdao and Foshan (FAW-VW) sites. Only car-producing sites including component manufacturing are considered for the specific key figures.",91,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +307,audi.pdf,"Only car-producing sites including component manufacturing are considered for the specific key figures. ⁴ The underlying key figures for each site are calculated on a pro rata basis according to the number of units of the Audi brand produced at the site. ⁵ All purchased and produced fresh water can be assigned to the category “fresh water (≤1000 mg/l total dissolved solids).” ⁶ Calculation of the key figure was adjusted for the year under review as well as for prior-year figures. ⁷ Key figure is being reported for the first time in the year under review. Extended environmental key figures for all sites at which models of the Audi brand are produced³, ⁴ Water stewardship Unit 2024 2023 2022 Total fresh water consumption⁵, ⁷ m³ 4,480,088 5,107,946 4,966,447 Total fresh water consumption (specific)⁵, ⁶ m³/veh. 2.68 2.64 2.94 Total volume of wastewater⁷ m³ 2,833,152 3,034,827 2,781,079 Total volume of wastewater (specific)⁷ m³/veh. 1.70 1.57 1.64 Key figures¹ Water stewardship",91,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +308,audi.pdf,"92 Audi Report 2024 FinanceStrategy & Company ESG Appendix Biodiversity is a key element of sustainability efforts at Audi: The company is committed to preserving biodiversity along the entire value chain. Biodiversity B iodiversity refers to the diversity of all living organisms, their genetic variation and their habitats. It is one of the foundations of human life on earth. People’s quality of life and health depend on it. Protecting biodiversity, genetic variation and ecosystem diversity therefore safeguards the long-term basis for human life and the needs of present and future generations. Only if biodiversity is successfully preserved can nature pro- vide vital ecosystem services for humans. These include, for instance, ensuring clean air and water, providing resources and food and regulating climate and weather events. The automotive industry impacts biodi- versity worldwide through its products and manufacturing processes as well as the associated effects along the entire value chain. Examples here include carbon dioxide and nitrogen oxide emissions or extraction of mineral resources such as metals and rare earths – often in regions that are regarded as biodiversity hotspots. The Audi Group also has an influence on the environment along the entire value chain through the production and opera- tion of vehicles and through services.",92,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +309,audi.pdf,The Audi Group also has an influence on the environment along the entire value chain through the production and opera- tion of vehicles and through services. Sustainable Development Goals The following SDGs are at the focus of this company commitment: Further information on Audi and the UN sustainability goals can be found on page 160. GRI 304 Photo: AUDI AG,92,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +310,audi.pdf,"93 Audi Report 2024 FinanceStrategy & Company ESG Appendix The business activities of Audi require, for example, the construction and use of production facilities that have an impact on local biodiversity. Biodiversity plays a key role in the regenerate+ sustainability strategy of the Volkswagen Group. Through its goTOzero environmental mission statement and the Biodiversity Commitment, the Volkswagen Group is committed to protecting, preserv- ing and promoting biodiversity and pur- sues this aim additionally in its strategic vision for the Zero Impact Factory. At all Volkswagen Group sites where passenger cars and light commercial vehicles are pro- duced, this vision provides the framework for continuously reviewing the imple- mentation status of 143 environmental criteria using the Site Checklist – including projects and measures aimed at preserv- ing biodiversity. In 2024, the Volkswagen Group introduced the Biodiversity Land Use Indicator (BLI) in order to measure the effectiveness of biodiversity measures and the progress made toward improving biodiversity. The BLI provides information on the percentage share and quality of natural open spaces at the site. The total surface area used at a site is compared with natural open spaces that have been created by the site.",93,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +311,audi.pdf,"The BLI provides information on the percentage share and quality of natural open spaces at the site. The total surface area used at a site is compared with natural open spaces that have been created by the site. The enhanced areas can be located on the plant premises or within a radius of up to 30 kilometers around the site. They have to be owned or managed by the site and primarily serve to promote biological diversity. Areas that are man- aged in cooperation with partners can also be considered, provided that the scope of joint management is clearly defined. The first Group-wide recording of the BLI in 2024 produced a result of approximately 30 percent, taking into account the quality of the areas. A target value for the BLI in the Volkswagen Group is currently being defined. Furthermore, the Volkswagen Group intends to launch a biodiversity fund of up to EUR 25 million annually for external projects from 2025. The selection of projects for funding will be managed by an independent decision-making commit - tee. With its Mission:Zero environmental program, AUDI AG addresses a number of fields of action, including the conservation of biodiversity.",93,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +312,audi.pdf,"The selection of projects for funding will be managed by an independent decision-making commit - tee. With its Mission:Zero environmental program, AUDI AG addresses a number of fields of action, including the conservation of biodiversity. Further key guidelines for Audi are the Common Corporate Policy ¹ Audi production sites in Ingolstadt and Neckarsulm (Germany), Brussels (Belgium), Győr (Hungary), San José Chiapa (Mexico). ² Brownfield projects involve repurposing or redesigning previously developed land, while a greenfield project involves the construction of a new building on land not previously developed. and the Booklet of Policies. Environmental protection is also an integral part of the Audi Code of Conduct, which is binding for all employees. The company’s suppli- ers are also obliged to observe the Code of Conduct for Business Partners . This includes protection of natural ecosystems and endangered wildlife habitats as well as sustainable use of natural resources. The company uses its Environmental Com- pliance Management System to identify, evaluate and control environmental risks and in this way ensures compliance with environmental protection guidelines. Promoting biodiversity The United Nations has declared the years 2021 to 2030 the Decade on Ecosystem Restoration.",93,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +313,audi.pdf,"Promoting biodiversity The United Nations has declared the years 2021 to 2030 the Decade on Ecosystem Restoration. Audi welcomes the efforts to create a global framework to enable effec - tive protection of biodiversity, also includ- ing the involvement of economic stake- holders. As early as in the run-up to the UN Biodiversity Conference (CBD COP 15), which took place in 2022, Audi commit - ted itself to promoting biodiversity at its production sites¹ worldwide. To measure the company’s commitment to maintaining biodiversity at its production sites,¹ Audi has developed a biodiversity index together with the Volkswagen Group. The index covers around 50 bio- diversity parameters. Audi uses these key figures that are specific to the environ- ment to evaluate its production sites¹ and define binding targets. This allows the effectiveness of measures to be assessed and progress to be recorded more easily. The following questions, for example, play a role: Are there green facades or roofs? How are the outdoor areas landscaped? Are employees made aware of the issue, for example through training?",93,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +314,audi.pdf,"The following questions, for example, play a role: Are there green facades or roofs? How are the outdoor areas landscaped? Are employees made aware of the issue, for example through training? This allows the company to determine, on the one hand, the extent to which its production sites¹ promote biodiversity and follow a strict plan for a better environmental foot - print and, on the other hand, the index measures its implementation. The goal is to raise the biodiversity index for the pro- duction sites¹ on average by 25 percentage points in the baseline year 2020 to 60 percentage points by the end of 2025. The original target value of 50 percentage points was raised following a reassess- ment, with more ambitious goals being defined. With this in mind, Audi is actively involved in the following three areas: Design of natural open spaces and buildings Audi is carrying out a number of measures at its plants in Ingolstadt and Neckarsulm (Germany), Győr (Hungary) and San José Chiapa (Mexico) aimed at actively promot- ing biodiversity.",93,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 " +315,audi.pdf,"These measures range from conversion of repetitive grass areas to biodiverse flowering meadows through to integration of dead wood as a nesting aid for inspects and renaturation of for - merly developed areas. Ingolstadt In 2024, Audi implemented a number of measures at its headquarters in Ingolstadt including vertical greening or creation of further natural open spaces. The concept and measures on the incampus, around eight kilometers south-east of the head- quarters, are particularly noteworthy. Over an area of 75 hectares, it offers space for innovative companies and partners in the field of mobility, digitalization and sus- tainability – such as Audi, Cariad and the Technical University of Ingolstadt. Opened in 2023 following successful remediation, it provides a perfect example of land recy- cling. Up until 2008, petroleum products were still being produced on the former refinery site. Revitalizing the former brownfield site involved excavating and washing 600,000 metric tons of earth, cleaning more than 22 hectares of ground and extensively processing the ground- water.",93,"[Guess]: No +[Confidence]: 1.0 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +316,audi.pdf,"Revitalizing the former brownfield site involved excavating and washing 600,000 metric tons of earth, cleaning more than 22 hectares of ground and extensively processing the ground- water. More than 900 metric tons of heavy oil, 200 metric tons of benzine and 100 kilograms of toxic chemicals had to be removed. 15 hectares of land will remain undeveloped permanently and designed as natural open spaces. Thanks to its forward-looking approach, the incampus was honored in the year under review with the Brownfield² Award, winning Gold for its particularly sustainable reactivation of industrial wasteland. The incampus technology park scooped first prize in the “Best Commercial and Industrial Project” category. The Brownfield",93,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +317,audi.pdf,"94 Audi Report 2024 FinanceStrategy & Company ESG Appendix Award is considered one of the most prestigious awards for sustainable land revitalization in Germany. It is awarded by Brownfield24 in cooperation with the German Brownfield Association. As part of the Natur auf Zeit (Temporary Nature) project of the Federal Ministry for the Environment and the Federal Agency for Nature Conservation, Audi is tempo- rarily turning over unused areas of the incampus to nature, thus creating valuable habitats for flora and fauna. While 15 hectares of land are permanently protect- ed, 40 hectares at the incampus are to be set aside for biologically diverse natural habitats, such as low-nutrient meadows and hedge and tree structures, until the areas are needed for construction projects in the course of further development of the site. Even though these 40 hectares at the incampus are only to be temporarily turned over to nature until they are built on, Audi is making an important contribution to promoting biodiversity with the project. If the underlying concept of ���Natur auf Zeit” is considered on a national level, it is clear how effective it can be: The more players involved, the more temporary natural areas that are created nationwide.",94,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +318,audi.pdf,"If the underlying concept of “Natur auf Zeit” is considered on a national level, it is clear how effective it can be: The more players involved, the more temporary natural areas that are created nationwide. And while these areas will eventually be built on, new temporary protected spaces are continually being created on existing industrial sites. This is an important boost for pioneer species, in particular, which are highly adaptable to dynamic habitat changes. The end result is an overall increase in the available natural habitats. Representa- tives of IN-Campus GmbH, a subsidiary of AUDI AG, together with the government of Upper Bavaria and the city of Ingolstadt signed a cooperative contract in the year under review, which legally protects the “Natur auf Zeit” project on the incampus. This ensures that the unused areas on the site will be available as natural habitats un- til such time as they are needed for future construction projects. Münchsmünster The Audi Münchsmünster site is situated around 25 kilometers to the east of the Ingolstadt site and is a center of excellence for high-tech chassis parts, aluminum structural components and pressed parts.",94,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +319,audi.pdf,"Roughly six hectares of land have already been temporarily set aside here for bio- diversity measures since 2019 as part of the “Natur auf Zeit” project. In 2024, ephemeral streams as they are known were created on the site. These are special water structures without vegetation, which can dry up during hot Audi Environmental Foundation Through the Audi Environmental Foundation, the company has been actively involved in numerous biodiversity projects for more than 15 years, also beyond its factory gates. Audi Stiftung für Umwelt GmbH – the Audi Environmental Foundation – is a not-for-profit company that actively promotes research in new technologies and scientific methods for a livable future. Its declared aim is to help protect the environment and to create and promote opportunities for sustainable action. The foundation focuses in particular on the promotion and development of environmentally compatible technologies, on educational measures for environ- mental topics and on the protection of the natural resources for humans, animals and plants. It was established by AUDI AG in 2009 as a wholly owned subsidiary and is part of its social and environmental commitment. summers. Such temporary areas of water have become rare and are used as spawn- ing waters for particularly endangered amphibian species.",94,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +320,audi.pdf,"summers. Such temporary areas of water have become rare and are used as spawn- ing waters for particularly endangered amphibian species. In addition, a pond was created and planted with vegetation, which offers ideal habitats for flora and fauna. Neckarsulm At the Neckarsulm site, the roofs of the smoker booths and the shuttle bus shelters within the factory premises were planted with hardy sedum plants and native flowering plants. The plants serve a variety of purposes: They act as a source of food and shelter for insects and therefore have a positive effect on biodiversity. In addition, they absorb fine dust and CO₂, store rainwater, acts as a heat shield in summer and cushion noise. A similar effect is achieved with moss mats, which are used for planting on the roofs of parking garages.",94,"[Guess]: No +[Confidence]: 1.0 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +321,audi.pdf,"A similar effect is achieved with moss mats, which are used for planting on the roofs of parking garages. Győr Some areas of the site were renaturalized in the year under review and habitats created for insects and birds in a variety of ways, such as the planting of wild shrub hedges, integration of dead wood and dry-stone walls as a habitat for different animal species, maintenance and repair of a swallow house and the installation of bird and bat boxes as well as more than 20 insect hotels. In addition, the number of invasive trees was successfully reduced. San José Chiapa A raft of measures were also introduced at the Audi production site in Mexico to promote biodiversity. These included reforestation measures and workshops on making nesting aids for insects. Cooperations with science, research, associations and NGOs Audi promotes exchanges with external stakeholders in the context of its member- ships of networks and initiatives in order to collectively minimize the impact on biodiversity along the entire value chain. Biodiversity thrives on a clean environment, which is why Audi strives to reduce environ- mental pollution. By joining the Alliance for Water Stewardship, Audi is demonstrating its further commitment to responsible han- dling of water as a resource.",94,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +322,audi.pdf,"By joining the Alliance for Water Stewardship, Audi is demonstrating its further commitment to responsible han- dling of water as a resource. Audi has been involved in the Aluminium Stewardship Initiative since 2013 in a bid to minimize production waste. AUDI AG has been a member of the German Biodiversity in Good Company initiative since 2015 and promotes the preservation of biodiversity as part of its membership. As a signatory to the associated leadership declaration, the company is committed to the three goals of the international agreement on biological diversity: the conservation of biological diversity, the sustainable use of its components and the fair and equitable sharing of the benefits arising from the use of genetic resources. Within the scope of its membership, Audi publishes a Progress Report every two years, which provides transparency in relation to its commitment to promoting biodiversity. In Peru, the Audi Environmental Foundation supported a biodiversity monitoring project in the year under re- view. While a wealth of data is available You can find more information here.",94,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +323,audi.pdf,"95 Audi Report 2024 FinanceStrategy & Company ESG Appendix on the species diversity on the forest floor of the rainforest, the upper layers remain virtually unexplored even though a large proportion of the biodiversity can be found here. In cooperation between the Wilder- ness International foundation and scien- tists at the Environmental Robotics Lab of ETH Zurich, the project involves taking DNA samples from the treetops of the Pe- ruvian rainforest using drone technology. The species inventory carried out as part of the pilot project provides insights into the biodiversity in the difficult-to-reach treetops of the rainforest, with the aim of identifying the different native animal and plant species. Every organism leaves behind traces in its environment. A DNA analysis of these traces allows the respec - tive animal and plant species to be deter - mined. Thanks to the use of drones, the process is minimally invasive and precise. In addition, the drones allow unexplored regions to be accessed to take samples, thus closing research gaps. Information on biodiversity can therefore be gathered quickly and relatively inexpensively.",95,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +324,audi.pdf,"In addition, the drones allow unexplored regions to be accessed to take samples, thus closing research gaps. Information on biodiversity can therefore be gathered quickly and relatively inexpensively. The Audi Environmental Foundation contribut - ed to the project costs and also financed solar panels for the research and forest ranger stations in the Peruvian rainforest. Generators were previously used here to produce electricity. Now, thanks to the so- lar panels, roughly 3,500 liters of gasoline is saved annually. Communication and creating awareness Audi offers a range of different initiatives and programs at all of its locations to increase awareness among its employees of the need for comprehensive biodiversity protection. These include themed weeks, employee participation programs such as joint planting initiatives, urban gardening promotions, communication and aware- ness campaigns and training offers. Under the motto “MachMIT!” (Join in), AUDI AG employees can apply to sponsor an environmental project with a non-profit partner. The Audi Environmental Founda- tion offers funding of 75 percent of project costs up to a maximum of EUR 2,009, which commemorates the year in which the Foundation was established (2009).",95,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +325,audi.pdf,"The Audi Environmental Founda- tion offers funding of 75 percent of project costs up to a maximum of EUR 2,009, which commemorates the year in which the Foundation was established (2009). To date, 46 external projects have been carried out, including several wild bee colonies, flower meadows, raised beds and planting campaigns. Ingolstadt The topic of environmental protection and climate action has been an intrinsic part of training at Audi for many years – for instance during Environment Days, when young Audi employees get to explore the topic in theory and practice. In the AzuBioTop project, 1.24 hectares of land outside the Ingolstadt factory gates have been the primary focus of around 1,400 Ingolstadt apprentices since 2022. A new habitat for endangered animal and plant species was developed here, with the creation of orchard and flower meadows, for example, as well as a substitute habitat for sand lizards. In 2024, the apprentices planted Benjes hedges (hedges made of dead wood), designed a nature trail and created a maintenance concept for the vegetation with the support of scientists.",95,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +326,audi.pdf,"In 2024, the apprentices planted Benjes hedges (hedges made of dead wood), designed a nature trail and created a maintenance concept for the vegetation with the support of scientists. In addition, awareness-raising talks were given by Audi biodiversity experts for the first time in 2024 to raise awareness at schools in the region. Neckarsulm On the initiative of the Audi Environmental Foundation, a project was launched with the Heidelberg University of Education, the city of Neckarsulm and Audi apprentices at the Neckarsulm site. Under the title Preserving and designing orchard meadows together, this project contrib- utes to conserving biodiversity. Orchard meadow stands have become increasingly endangered in the Neckarsulm region over recent decades, for reasons including urban sprawl and more intensive agricultural practices. Moreover, management of Space for nature: Audi is temporarily setting aside unused areas of the incampus for nature. Photo: AUDI AG",95,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +327,audi.pdf,"96 Audi Report 2024 FinanceStrategy & Company ESG Appendix Biodiversity project supported by Audi in Neckarsulm: Drones are used to monitor the health of the orchard trees. orchard meadows is increasingly un- profitable in comparison with large fruit plantations. As a result of these devel- opments, habitats for animal and plant species are becoming endangered. Scien- tists at the university want to conserve the orchard tree stands and, with this in mind, are examining the health, vitality and potential diseases in orchard trees. Apprentices at Audi are assisting with the project and, for example, supporting the use of drones to monitor the health of the orchard trees. The aim here is to raise awareness among the apprentices of the importance of protecting valuable cultural landscapes and to arouse their interest in the topic of sustainability – even beyond their apprenticeship. Production site3 Size in m² Region Directly adjacent protected regions Protected regions within a radius of 4,500 meters Number Size in ha Number Size in ha Ingolstadt, DE 2,859,883 Europe 0 0 4 2,094,409 Neckarsulm, DE 1,422,",96,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +328,audi.pdf,"DE 2,859,883 Europe 0 0 4 2,094,409 Neckarsulm, DE 1,422,125 Europe 0 0 4 3,485,633 Győr, HU 5,161,158 Europe 1 2,881 1 17,182 Brussels, BE 560,413 Europe 0 0 3 401,757 San José Chiapa, MX 995,495 North America 0 0 0 0 Crewe, UK 551,074 Europe 0 0 1 160 Sant’Agata Bolognese, IT 500,660 Europe 0 0 2 36,843 Bologna, IT 116,495 Europe 0 0 2 124,914 Amphur Plukdaeng, TH 96,226 Asia 0 0 0 0 Audi Global 1 2,881 17 6,160,899 Key figures Biodiversity Photo: AUDI AG Győr In the year under review, a wide range of awareness-raising measures were introduced in Győr, including, for example, integration of the topic of biodiversity into the apprentices’ training schedule,",96,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +329,audi.pdf,"a wide range of awareness-raising measures were introduced in Győr, including, for example, integration of the topic of biodiversity into the apprentices’ training schedule, the construction of nesting boxes or the joint collection of waste on an external nature trail by Audi employees. ³ The data relates to the 2024 fiscal year. No information is available at this time for the Münchsmünster, Neuburg and Neustadt sites. The database was updated for 2024.",96,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +330,audi.pdf,"97 Audi Report 2024 FinanceStrategy & Company ESG Appendix Resource management and circular economy GRI 301, 306 The Earth’s resources are finite, necessitating their efficient use and recycling. For this reason, Audi is seeking to integrate the principles of the circular economy into the automotive value chain. T he circular economy contrasts with the tradi- tional linear economy, which focuses primarily on easily accessible primary raw materials. Linear in this context means that raw materials are processed once and disposed of following use. In the circular economy, on the other hand, parts and materi- als are reused through maintenance and repair, reman- ufacturing or recycling. The paradigm shift toward a functioning circular economy therefore offers potential from a social, economic and ecological point of view. This means, for example, that climate change and other global challenges, such as the loss of biodiversi- ty, raw material wastage and environmental pollution, can be mitigated. It also provides many opportunities for the economy. For example, by reusing valuable resources, it is possible to cut dependency on critical primary raw materials, reduce the carbon footprint of products and develop new business models.",97,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +331,audi.pdf,"It also provides many opportunities for the economy. For example, by reusing valuable resources, it is possible to cut dependency on critical primary raw materials, reduce the carbon footprint of products and develop new business models. Reducing the consumption of primary raw materials is also a focus of the Volkswagen Group’s regenerate+ sustainability strategy. Likewise, the circular economy is a core aspect of the Volkswagen Group’s goTOzero environmental mission statement. Moreover, the Sustainable Development Goals The following SDGs are at the focus of this company commitment: Further information on Audi and the UN sustainability goals can be found on page 160. Photo: AUDI AG",97,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +332,audi.pdf,"98 Audi Report 2024 FinanceStrategy & Company ESG Appendix Photo: AUDI AG | Illustration: C3 Visual Lab strategic vision of the Zero Impact Factory concentrates on resource-friendly production across the entire Volkswagen Group. For Audi, the Common Corporate Policy, Audi Code of Conduct and Code of Conduct for Business Partners are key internal company policies in respect of the circular economy. AUDI AG also addresses resource efficiency as an important field of action in its Mission:Zero environmental program. In 2023, internal target values for the proportion of secondary material and post-consumer secondary material at whole vehicle level were anchored in the company for future vehicle generations. Additionally, AUDI AG adopted a binding company process standard to ensure the achievement of the target values it has set for itself. Since 2024, the company has applied the process to set voluntary, self-imposed environmental targets in vehicle projects. The standard defines these target values for secondary materials (minimum content) and CO₂ (threshold values) in vehicle projects, broken down for the suppliers of relevant components and materials. Audi worked with the respective suppliers to develop the target values for materials and components.",98,"[Guess]: No +[Confidence]: 0.9 +user","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +333,audi.pdf,"Audi worked with the respective suppliers to develop the target values for materials and components. They are bind- ing for suppliers to AUDI AG in the context of the tender process and an integral part of the contract documents. Audi does not award contracts unless the prescribed tar- gets values for CO₂ and secondary materi- als are fulfilled. This process is applied for the key materials aluminum, steel, plastic, glass and the raw materials for manufac- turing high-voltage batteries. Rethink, reduce, reuse, recycle – the circular economy at Audi The responsible handling of raw materials is a cornerstone of forward-looking auto- motive production for Audi. The company is committed to reducing the use of pri- mary materials and closing resource cycles both internally and externally. Audi adopts a holistic approach in this respect in line with the principles of rethink, reduce, reuse and recycle. This means considering factors such as resource efficiency and the recyclability of components during the development phase (rethink), producing vehicles in a resource-friendly manner (reduce) and either reutilizing usable com- ponents at the end of the product life cycle (reuse) or recycling them in the optimal way (recycle).",98,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +334,audi.pdf,"Total weight of waste by disposal method in t Wherever possible, the Audi Group closes material cycles in order to reduce waste. The total volume of waste (excluding scrap) has decreased compared with the previous year. In the 2024 reporting year, 278,751 metric tons of metallic waste were generated throughout the Group, all of which is destined for recycling. This is down on the previous year due, for exam- ple, to the number of units produced and delays in collection by disposal companies. The reduction in disposable waste can be attributed to the absence of ad hoc waste fractions that arose in the previous year (e.g., tank cleaning, asbestos from build- ing demolition, etc.). Rethink: Design for Circularity You can find more information at audi.com. Audi is committed to the responsible use of resources along the value chain. The company therefore wants to ensure that the principles of the circular economy are also increasingly applied in the early stages of product development, for seat upholstery, for example. A visit to the Audi experts who consider disassembly, repair, maintenance and recycling from the start. * The prior-year figures were adjusted in accordance with the final data status.",98,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +335,audi.pdf,"A visit to the Audi experts who consider disassembly, repair, maintenance and recycling from the start. * The prior-year figures were adjusted in accordance with the final data status. 2022 274,558 2023 302,817 2024 278,751 Metallic waste (scrap; completely recyclable) Total volume of waste (excluding scrap) 2022 2023* 2024 193,038 155,054 142,988 Recyclable waste 2022 2023* 2024 187,841 140,648 140,641 Disposable waste 2022 2023* 2024 5,197 14,406 2,348",98,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +336,audi.pdf,"99 Audi Report 2024 FinanceStrategy & Company ESG Appendix Rethink: Thinking about the end right from the start The rethink principle is applied in the early phase of product development. Parts that are developed according to this principle already consider later recyclability as early as their design phase. This resource- friendly approach to the development of components creates the basis for the sub- sequent principles. The following features are at the forefront of the rethink principle: > Reparability with the goal of ensuring longevity (the condition for reduce) > Suitability for disassembly, upgrade, update and maintenance (the condition for reuse) > Recyclability (the condition for recycle) A range of measures have been deployed to anchor the rethink principle within the company. Design is of particular importance in the early phase of product development. The Audi designers have therefore developed an internal hand- book on sustainable design including best practices. This describes, for example, how parts can be produced with fewer resourc- es and how simpler disassembly makes it easier to return components to the circular economy. Audi developers have an equally large influence on the recyclability of a vehicle’s selected components.",99,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +337,audi.pdf,"Audi developers have an equally large influence on the recyclability of a vehicle’s selected components. Detailed material-specific guidelines support them in selecting more recycling-friendly materials or joining techniques – for ex- ample through the use of monomaterials, composite materials that can be separated easily or joining techniques that enable non-destructive dismantling. A web-based training program and a guideline, for ex- ample, were created in collaboration with polymer experts on the recycling-friendly product development of plastic parts. This guideline is also available to suppliers and provides suggestions and information for the recycling-friendly design of compo- nents. Moreover, the plan is to make it possible to quantify and compare the recyclability of parts and vehicles in the future. Thanks to this methodology, Audi could then optimize the recyclability of new vehicles and the parts used in them in a second step. Reduce: Reducing the need for primary materials, extending the utilization phase The reduce principle involves measures during both the production process and the downstream utilization phase. There are essentially two aspects to consider here: firstly, the efficient use of materials, and secondly, the extension of the product life cycle, for example, by repairing vehicles.",99,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +338,audi.pdf,"There are essentially two aspects to consider here: firstly, the efficient use of materials, and secondly, the extension of the product life cycle, for example, by repairing vehicles. Material efficiency: The reduce principle is applied in vehicle production among other areas. It is implemented, for example, on the basis of the Audi Mission:Zero envi- ronmental program in the action area of resource efficiency. Audi Logistics implements the following measures: > Packaging is avoided whenever possible. If packaging material has to be used, it is preferable to use recyclable and/or re- newable resources. From 2030, the goal is to increase the proportion of recycla- ble packaging materials in new vehicle projects to more than 90 percent. With this in mind, Audi is already focusing on sustainable packaging concepts in the early planning phase of new vehicle projects. To ensure these are optimized comprehensively, requirements are in- corporated in the product specifications for suppliers. Contracts with suppliers define, for example, that no polysty- rene should be used and that packaging should be designed to be recyclable. > In the year under review, a program was initiated to provide support in avoiding the use of packaging materials.",99,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +339,audi.pdf,"> In the year under review, a program was initiated to provide support in avoiding the use of packaging materials. The database-supported application docu- ments optimized packaging solutions by providing examples of best practices. Integrated photographic documenta- tion of the situation before and after implementation enables the program to search for efficient packaging concepts. This ensures cross-site sharing of best practice solutions in order to leverage synergies. For Audi PPE (Premium Plat- form Electric) models, it was possible to reduce the plastic packaging for a defined range of parts by almost 50 percent. In the future, the program is to be used for other vehicle projects to calculate the potential savings in pack- aging at the parts level. For new vehicle projects, a key figure has been defined to describe and monitor the proportion of plastic in the packaging for selected vehicle parts. The Audi Genuine Sustainable Parts pro- gram offers customers a reliable and Photo: AUDI AG The circular economy in practice For the benefit of customers: Audi Genuine Exchange Parts are a resource-friendly alternative to new parts – ensuring optimal quality in compliance with approved Audi standards. The company has decades of experience in remanufacturing parts.",99,"[Guess]: No +[Confidence]: 0.995 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +340,audi.pdf,The company has decades of experience in remanufacturing parts. They are an example of how AUDI AG is turning ideas for the circular economy into reality. You can find more information at audi.com.,99,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +341,audi.pdf,"100 Audi Report 2024 FinanceStrategy & Company ESG Appendix inexpensive way of maintaining their ve- hicles with reusable parts. Alongside Audi Genuine Parts Repair, which is based on the reduce principle, Audi Genuine Exchange Parts and Audi Genuine Used Parts are two further pillars that satisfy the reuse principle. Individual repair of Audi Genuine Parts – Audi Genuine Parts Repair: Audi sets the highest standards for the quality and longevity of the parts used. If a defect oc- curs nevertheless, infotainment systems, displays in the dashboard area and diesel particulate filters can be refurbished in a one-to-one repair. Once the Audi dealer has removed the defective part correctly, it is sent to the repair service for recondition- ing within five working days. The repaired part is then returned and reinstalled by the dealer. Customers also benefit from a two-year warranty on the repair (with the exception of diesel particulate filters). Reuse: Enabling continued use The reuse principle is based on the reuse of parts, either on the basis of remanufactur- ing or use in a new function.",100,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +342,audi.pdf,"Reuse: Enabling continued use The reuse principle is based on the reuse of parts, either on the basis of remanufactur- ing or use in a new function. Industrial remanufacturing of defec- tive Audi Genuine Parts – Audi Genuine Exchange Parts: In 89 markets, owners of an Audi model are offered resource- friendly Audi Genuine Exchange Parts with a two-year warranty as an alternative to new parts during the routine service process. Audi Genuine Exchange Parts are Audi Genuine Parts that are no longer functional and have been remanufactured. The defective part is removed and sent to an internal remanufacturing center. In return, the customer receives a part that has already been remanufactured. If it is not directly possible to remanufacture old parts as part of the Audi Genuine Exchange Parts program, they are replaced with new parts (Audi Genuine Parts). Remanufactur- ing makes it possible to reuse many of the still functioning individual items in a part, thereby prolonging the utilization phase of originally defective Audi Genuine Parts and saving resources. For this reason, Audi Genuine Exchange Parts are 20 percent less expensive on average than new parts (Audi Genuine Parts) and are usually available immediately.",100,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +343,audi.pdf,"For this reason, Audi Genuine Exchange Parts are 20 percent less expensive on average than new parts (Audi Genuine Parts) and are usually available immediately. One example: For more than 70 years, powertrains have been remanufactured at the Audi plant in In- golstadt. What is new is that, since 2024, Audi has been remanufacturing electric motors as well as generators, starters and mechatronics in Ingolstadt. The goal is to remanufacture around 5,000 electric mo- tors at the company’s main site each year, enabling them to be used as Audi Genuine Exchange Parts. Some 81 kilograms of material goes into the production of a new electric motor. By contrast, remanufactur- ing requires only around 2.47 kilograms of additional material. Remanufacturing reuses the material-intensive housing, rotor and stator but replaces items such as seals, screws and bearings. Used and functioning Audi Genuine Parts without remanufacturing – Audi Genuine Used Parts: Audi Genuine Used Parts are an inexpensive and reliable option for cus- tomers who want to replace body, lighting, engine, transmission, suspension, interior or electronic components.",100,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +344,audi.pdf,"They also use fewer resources than new parts. The parts originate from, for example, test vehicles or vehicles that have reached the end of their life cycle. In order to guarantee their quality, the parts are checked in specialist centers by trained experts in accordance with Audi guidelines. Moreover, there is a two-year warranty on Audi Genuine Used Parts. Accident repairs are an important use case in this respect. Replacing all defective parts in a damaged vehicle with new parts is often no longer economically viable. However, a repair may make eco- nomic sense if less expensive used parts can be used. This means that vehicles that would otherwise be treated as a write-off can continue to be used. The reuse principle is especially important with electric vehicles, particularly when it comes to the lithium-ion battery. Even after many years of use, high-voltage bat- teries can continue to be used before recy- cling. Within the Volkswagen Group, Audi is pursuing two possible reuse objectives Volume of raw materials processed by Audi in vehicles in 2024 Diagram is based on the production figures of AUDI AG in 2024 and current disassembly studies for selected models in the various product lines.",100,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +345,audi.pdf,All vehicle segments were considered; figures may not add up due to rounding. Illustration: C3 Visual Lab Steel and ferrous materials Polymers Light alloys Liquids Other Non-ferrous metals Process polymers Special metals Electronics 52.09% 19.21% 15.29% 4.48% 3.78% 2.69% 1.54% 0.64% 0.28%,100,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +346,audi.pdf,"101 Audi Report 2024 FinanceStrategy & Company ESG Appendix in the future: firstly remanufacturing, which involves continuing to use high- voltage batteries in electric vehicles. And secondly, second-life concepts, which allow batteries to have a second life for years outside of an electric vehicle – for instance in the fast-charging stations of an Audi charging hub. Recycle: The end as a new beginning The recycle principle involves measures concerning both the production of a vehicle and the phase following its end of life, if reuse of the vehicle as a whole or its indi- vidual components is no longer possible. The motto is: reuse as many materials as possible, including from end-of-life vehicles, in the form of secondary mate- rials and avoid downcycling as much as possible. The quality of a new product produced from recycled material is not as high in the case of downcycling as that of the original product.",101,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +347,audi.pdf,"The quality of a new product produced from recycled material is not as high in the case of downcycling as that of the original product. The company is following two approaches in respect of the recycle principle: > Recovery of high-quality post-consumer secondary materials from end-of-life ve- hicles at the end of the utilization phase (end-of-life recycling): disassembly of vehicles into individual components and subsequent remanufacturing of used raw materials, ideally without any loss of quality. > Use of secondary material in new vehi- cles: secondary materials – preferably from a post-consumer source – should be used wherever technically feasible, environmentally sound and economically justifiable. AUDI AG carried out a number of projects to test the product maturity of post-con- sumer material cycles for steel, alumi- num, plastic, glass and batteries. These materials are in the spotlight because, in some cases, they play a special role in ex- isting and future legislation and in internal requirements and make up a high percent- age of the overall weight of the vehicle. Findings from these projects are used to increase the use of secondary materials in new vehicle generations.",101,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +348,audi.pdf,"Findings from these projects are used to increase the use of secondary materials in new vehicle generations. > Steel: In the Audi Q6 e-tron, a propor- tion¹ of the steel used for the exterior roof section is scrap steel from post- consumer sources.² Such materials are also used for selected parts (for example, the roof frame) of the Audi A6 e-tron. > Aluminum: The aluminum for selected parts of the Audi A6 e-tron contains a proportion¹ of recycled post-consumer secondary material. It is used, for example, to produce the outer section of the aluminum front flap. Apart from recycling post-consumer materials, post-industrial materials are also recy- cled. From as early as 2017, AUDI AG has demonstrated its commitment to the responsible handling of aluminum Global Battery Alliance Through its involvement in the Global Battery Alliance, Audi is clearly committed to the values of the Global Battery Alliance of the World Economic Forum. The alliance was founded in 2017 and consists of public and private-sector partners from along the entire battery supply chain.",101,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +349,audi.pdf,"The alliance was founded in 2017 and consists of public and private-sector partners from along the entire battery supply chain. Its goal is to ensure that both social and ecological sustainability aspects are taken into account in the value chain for the raw materials used in batteries. The Global Battery Alliance is working on issues such as the conditions for mining raw materials, sustainable recycling concepts in the spirit of a circular economy and innovations that promote battery sustainability. Audi has been a member of the cooperation platform since it was founded in 2017. ¹ The material originates from a production process in which a proportion of secondary materials from a post-consumer source is used. Secondary materials are added to the process in such quantities that the source material used to produce the relevant part contains an average post-consumer recycled content (mass balance approach). However, this means that the actual percentage used in the individual part may also be lower. ² The proportion of post-consumer steel used in steel production for this part averages up to 15 percent (mass balance approach based on currently planned production figures). Photo: AUDI AG through the Aluminium Closed Loop project. Aluminum sheet offcuts that are produced in the press shop are returned to the material cycle.",101,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +350,audi.pdf,"Photo: AUDI AG through the Aluminium Closed Loop project. Aluminum sheet offcuts that are produced in the press shop are returned to the material cycle. Compared with the production of primary aluminum, recy- cling aluminum waste allows savings of up to 95 percent in terms of the energy needed to produce the aluminum. > Plastics: In the Audi A6 e-tron, plastic parts such as the frunk (luggage com- partment under the front hood) and the adjacent covers in the front end of the vehicle are made partly¹ from recycled material. Other parts made from recy- cled plastic include the sound genera- tors and the water container for the air conditioning fresh air intake at the front of the vehicle. As was the case for mod- els in the Audi Q6 e-tron product line, a previously used conventional sheet metal component has been replaced by plastic components containing a large proportion of secondary material. > Glass: GlassLoop is a project in collabo- ration with Reiling Glas Recycling, Saint- Gobain Glass and Saint-Gobain Sekurit in which Audi demonstrates how material cycles can be implemented in series pro- duction.",101,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +351,audi.pdf,"Together the companies tested how to produce new windshields from defective automotive glass. Since Sep- tember 2023, windshields made from recycled material are being used in the series production of the Audi Q4 e-tron. The windshield in the Audi Q4 e-tron uses glass with a recycled content¹ of up to 30 percent recovered from car windows that can no longer be repaired. Audi is the first premium manufacturer to have established such a glass cycle in the automotive industry together with partner companies. > Battery: Volkswagen AG is working on a recycling concept for batteries within the Group. Volkswagen is also exploring strategic partnerships with a number of stakeholders in the battery value chain to close the loop comprehensively for the Group. The goal is the industrialized recovery of valuable raw materials",101,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +352,audi.pdf,"102 Audi Report 2024 FinanceStrategy & Company ESG Appendix such as lithium, nickel, manganese and cobalt in a closed loop as well as alumi- num, copper and plastic. It is planned to make the Salzgitter site the battery center for the Volkswagen Group. Here, Volkswagen is operating a pilot plant for the recycling of high-voltage vehicle batteries. > MaterialLoop: In 2023, Audi took a further step toward closing material loops in the future with MaterialLoop program. Together with 15 partner companies from research, the recy- cling sector and the supply industry, the project examined the possibility of reusing post-consumer materials from 100 end-of-life vehicles to produce new vehicles. Attention focused on materials such as steel, aluminum and plastic, among others, in terms of their recyclability. After confirming the technical feasibility, the focus in 2024 was on assessing and implementing an economically sound concept. As a result, Audi has developed the first economical- ly feasible concept for recovering steel recyclate from end-of-life vehicles, which it has implemented in partnership with TSR Resource.",102,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +353,audi.pdf,"As a result, Audi has developed the first economical- ly feasible concept for recovering steel recyclate from end-of-life vehicles, which it has implemented in partnership with TSR Resource. In this way, the scrap steel from these vehicles is remanufactured into high-quality post-consumer second- ary material for reuse in the automotive supply chain. From 2025, as part of the first phase, Audi will provide several thousand pre-series vehicles for steel recycling. These will be broken down by TSR Resource to recover high-quality recycling raw materials for further use by the automotive industry. In return, Audi will receive access to the second- ary steel material obtained from these vehicles. This will be credited to a digital material account, which can be drawn on by potential material and parts suppliers during a tender process. In this way, Audi contractual partners receive exclusive access to high-quality recycled steel. In the future, the process will be rolled out to other materials and vehicles. It could be applied to all raw materials for which Audi currently specifies a binding con- tent of recycled material for its vehicles – or intends to do so in the future.",102,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +354,audi.pdf,"It could be applied to all raw materials for which Audi currently specifies a binding con- tent of recycled material for its vehicles – or intends to do so in the future. The recovery concept makes the company less dependent on market-related price fluctuations when procuring these raw materials. At the same time, Audi is fostering high-quality recycling and sus- tainable vehicle production of consistent high quality. > Recycling plastics from end-of-life vehicles: In practice, the plastics from end-of-life vehicles are recycled only to a limited extent, restricted mainly to the polypropylene (PP) used in bumpers, for example. Since 2021, AUDI AG has been working with various partners to develop innovative sorting and recycling technologies that make it possible to recover high-quality raw materials Recycled monomaterial seat covers can be used to make new yarn.",102,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +355,audi.pdf,"103 Audi Report 2024 FinanceStrategy & Company ESG Appendix > Downcycling The qualitative properties of a new product made from recycled material are lower in the case of downcycling than those of the original product. For example: steel from end- of-life vehicles is reused as structural steel. This process contrasts with upcycling where materials are converted to a higher-value product. > Post-consumer Post-consumer material refers to recycled materials from products that have already been used by the end user for one product cycle and then disposed of. > Post-industrial (alternative: Pre-consumer) Post-industrial material denotes recycled materials that originate from industrial production waste and that arise during the production process, e.g., offcuts. > Primary raw material A primary raw material is a natural, untreated raw material, which is obtained directly from the environment and without prior processing (e.g., metal ores). > Remanufacturing Remanufacturing involves in-depth reworking and reconditioning of used parts. The objective is that the resulting quality is the same as that of a new replacement part.",103,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +356,audi.pdf,"> Remanufacturing Remanufacturing involves in-depth reworking and reconditioning of used parts. The objective is that the resulting quality is the same as that of a new replacement part. > Recycled material or secondary material Materials recovered either from recycling a product used by an end customer (post-consumer recycled material) or by recycling production waste (post-industrial recycled material). Recycled metal materials include aluminum offcuts, for example, which are collected, remelted and transformed into new raw material. > Second use/second life Second use is a concept that aims to extend the value of products by reusing them in a new context. This gives them a second life. Glossary Photo: AUDI AG³ The following material groups were sorted: polypropylene, polyamide (PA6 and PA66) and polycarbonate including PC+ABS, ABS, ASA. from mixed and often contaminated plastic waste like that found in end-of- life vehicles. To ensure that the recy- cling process can deliver high quality, the shredded material mix must be sorted into recyclable material groups. This makes it possible to leverage the potential for recycling other types of plastic.",103,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +357,audi.pdf,"To ensure that the recy- cling process can deliver high quality, the shredded material mix must be sorted into recyclable material groups. This makes it possible to leverage the potential for recycling other types of plastic. In the year under review, a pilot project with the Fraunhofer Institute for Process Engineering and Packaging (IVV) succeeded in sorting other types of plastic³ and remanufacturing them using the physical recycling process. The plastics are dissolved in solvents and separated from other solids. The advantage is that this preserves the basic polymer structure and thus the pro- cessing energy it contains. The solvents used are then recovered by evaporation and reused. The end result following drying is a very pure plastic granulate of a similar quality to new goods. On a pilot scale, it was possible for the first time to recover high-purity polycarbonate/acry- lonitrile-butadiene-styrene (PC/ABS) – a thermoplastic polymer composite – from shredded end-of-life vehicles using the physical recycling process. For demon- stration purposes, this material was used to produce trim frames that were tested successfully in the quality laboratory.",103,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +358,audi.pdf,"For demon- stration purposes, this material was used to produce trim frames that were tested successfully in the quality laboratory. The pilot project proved that the material produced using the physical recycling process is also suitable for reuse in vehicle interiors. Once it is available on a industrial scale, the tested process could contribute to closing future plastic loops.",103,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +359,audi.pdf,"104 Audi Report 2024 FinanceStrategy & Company ESG Appendix Key figures¹ Resource management and circular economy Unit 2024 2023 2022 Recyclable waste t 140,641 140,648 187,841 of which other recyclable waste t 53,336 58,521 – of which substitute raw materials and preparation for reuse t 13,441 16,169 – of which recycling following mechanical pre-treatment t 18,292 18,246 – of which recycling following physicochemical pre-treatment t 10,450 11,452 – of which thermal recovery t 10,763 12,267 – of which backfilling t 391 387 – of which hazardous recyclable waste t 38,572 38,170 – of which substitute raw materials and preparation for reuse t 2,965 3,476 – of which recycling following mechanical pre-treatment t 12,458 9,354 – of which recycling following physicochemical pre-treatment t 16,187 17,348 – of which thermal recovery t 6,302 7,",104,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +360,audi.pdf,"458 9,354 – of which recycling following physicochemical pre-treatment t 16,187 17,348 – of which thermal recovery t 6,302 7,229 – of which backfilling t 659 762 – of which non-production-specific recyclable waste t 48,733 43,661 – of which substitute raw materials and preparation for reuse t 11,912 5,263 – of which recycling following mechanical pre-treatment t 35,503 37,479 – of which recycling following physicochemical pre-treatment t 89 47 – of which thermal recovery t 1,229 873 – Metallic waste t 278,178 302,817 – of which internal recycling t 110,680 14,421 – of which external recycling t 168,063 287,893 – ¹ Figures refer to the Ingolstadt, Münchsmünster, Neckarsulm, Brussels, Győr, San José Chiapa, Crewe (Bentley) since 2022, Sant’Agata Bolognese (Lamborghini), Bologna (Ducati),",104,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +361,audi.pdf,"Neckarsulm, Brussels, Győr, San José Chiapa, Crewe (Bentley) since 2022, Sant’Agata Bolognese (Lamborghini), Bologna (Ducati), Neustadt proving ground and Neuburg an der Donau driving experience center (included since 2024) sites. If deviations between the actual values and the reported data are identi- fied in the following year, the data is updated. The individual key figures for 2023 were updated in this report using the actual values for 2023. ² All waste was generally treated outside the company sites. Recyclable waste² (waste diverted from disposal)",104,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +362,audi.pdf,"105 Audi Report 2024 FinanceStrategy & Company ESG Appendix Key figures³ Resource management and circular economy Unit 2024 2023 2022 Disposable waste t 2,348 14,402 – of which other disposable waste t 1,206 1,086 – of which thermal disposal t 829 820 – of which landfill t 377 266 – of which hazardous disposable waste t 438 587 – of which thermal disposal t 438 587 – of which landfill t 0 0 – of which non-production-specific disposable waste t 703 12,728 – of which thermal disposal t 69 522 – of which landfill t 634 12,206 – Waste Unit 2024 2023 2022 Total volume of waste (excluding scrap) t 142,988 155,054 193,038 Automotive segment (incl. components) t 141,893 153,930 191,449 kg/veh. 170.13 154.64 211.11 Recyclable waste t 140,641 140,648 187,841 Automotive segment (incl.",105,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +363,audi.pdf,"170.13 154.64 211.11 Recyclable waste t 140,641 140,648 187,841 Automotive segment (incl. components) t 139,576 139,570 186,312 kg/veh. 167.36 140.22 205.45 Other recyclable waste t 53,336 58,521 53,566 Automotive segment (incl. components) t 52,453 57,640 52,183 kg/veh. 62.89 57.91 57.54 Key figures⁴ Circular economy and resource management ² All waste was generally treated outside the company sites. ³ Figures refer to the Ingolstadt, Münchsmünster, Neckarsulm, Brussels, Győr, San José Chiapa, Crewe (Bentley) since 2022, Sant’Agata Bolognese (Lamborghini), Bologna (Ducati), Neustadt proving ground and Neuburg an der Donau driving experience center (included since 2024) sites.",105,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +364,audi.pdf,"⁴ Figures refer to the Ingolstadt, Münchsmünster, Neckarsulm, Brussels, Győr, San José Chiapa, Crewe (Bentley) since 2022, Sant’Agata Bolognese (Lamborghini), Bologna (Ducati), Neustadt proving ground and Neuburg an der Donau driving experience center (included since 2024) sites. Only car-producing sites including component manufacturing are consid- ered for the specific key figures. The environmental key figures for the current year are data as of February 4, 2025. The figures may contain estimates if, for example, they are based on statements from energy suppliers that were not available when data was collected. If deviations between the actual values and the reported data are identified in the following year, the data is updated. The individual key figures for 2023 were updated in this report using the actual values for 2023. Disposable waste² (waste diverted from disposal)",105,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +365,audi.pdf,"106 Audi Report 2024 FinanceStrategy & Company ESG Appendix Hazardous recyclable waste t 38,572 38,219 35,673 Automotive segment (incl. components) t 38,442 38,088 35,582 kg/veh. 46.09 38.27 39.24 Non-production-specific recyclable waste t 48,733 43,888 98,602 Automotive segment (incl. components) t 48,680 43,842 98,547 kg/veh. 58.37 44.05 108.67 Disposable waste t 2,348 14,406 5,197 Automotive segment (incl. components) t 2,318 14,359 5,136 kg/veh. 2.78 14.43 5.66 Other disposable waste t 1,206 1,086 898 Automotive segment (incl. components) t 1,206 1,086 890 kg/veh. 1.45 1.09 0.98 Hazardous disposable waste t 438 587 942 Automotive segment (incl.",106,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +366,audi.pdf,"1.45 1.09 0.98 Hazardous disposable waste t 438 587 942 Automotive segment (incl. components) t 409 548 890 kg/veh. 0.49 0.55 0.98 Non-production-specific disposable waste t 703 12,732 3,357 Automotive segment (incl. components) t 703 12,726 3,356 kg/veh. 0.84 12.78 3.70 Metallic waste (scrap; completely recyclable) t 278,751 302,817 274,558 Automotive segment (incl. components) t 278,178 302,313 273,952 kg/veh.",106,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 1.0 " +367,audi.pdf,"components) t 278,178 302,313 273,952 kg/veh. 333.54 303.72 302.09 Extended environmental key figures for all sites at which models of the Audi brand are produced⁵,⁶ Resource management and circular economy ⁵ Figures refer to the Ingolstadt, Münchsmünster, Neckarsulm, Brussels, Győr and San José Chiapa (Audi), Martorell (Seat), Chhatrapati Sambhajinagar and Kaluga (up to 2022) (Skoda), Bratislava, São José dos Pinhais and Zwickau (Volkswagen Passenger Cars), Anting and Ningbo (SAIC VW), Changchun, Tianjin, Qingdao and Foshan (FAW-VW) sites. Only car-producing sites including component manufacturing are considered for the specific key figures. ⁶ The underlying key figures for each site are calculated on a pro rata basis according to the number of units of the Audi brand produced at the site. ⁷ Key figure is being reported for the first time in the year under review. ⁸ Recording of the key figure was adjusted for the year under review as well as for prior-year figures.",106,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +368,audi.pdf,"⁷ Key figure is being reported for the first time in the year under review. ⁸ Recording of the key figure was adjusted for the year under review as well as for prior-year figures. Unit 2024 2023 2022 Total waste (production-specific)⁷ t 109,250 111,999 121,973 Total recyclable waste (production-specific)⁷ t 105,068 104,385 114,342 Total disposable waste (production-specific)⁸ t 4,182 7,614 7,631 Total waste (production-specific, specific)⁷ t/veh. 0.065 0.058 0.072",106,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +369,audi.pdf,"107 Audi Report 2024 FinanceStrategy & Company ESG Appendix Extended key figures within the scope of ESRS reporting¹ Unit 2024 2023 2022 Total energy consumption in connection with own business activities² MWh 2,734,897.72 – – Total energy consumption of which from renewable energy sources MWh 2,062,797.98 – – GHG emissions (Scope 1+2)³ tCO₂e 289,023.46 – – VOC emissions⁴ t 780.5 – – Direct NOX emissions⁵ t 182.99 – – Total water consumption⁶ m³ 1,220,561.30 – – Total amount of pollutants emitted into water⁷ kg 232,040.44 – – Total amount of waste t 421,739.47 – – Total amount of recycled waste t 371,730.41 – – ¹ Figures refer to the Ingolstadt, Münchsmünster, Neckarsulm, Brussels, Győr, San José Chiapa, Crewe (Bentley) since 2022, Sant’Agata Bolognese (Lamborghini), Bologna (Ducati),",107,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +370,audi.pdf,"Neckarsulm, Brussels, Győr, San José Chiapa, Crewe (Bentley) since 2022, Sant’Agata Bolognese (Lamborghini), Bologna (Ducati), Neustadt proving ground and Neuburg an der Donau driving experience center (included since 2024) sites. The environmental key figures for the current year are data as of February 5, 2025. The figures may contain estimates if, for example, they are based on statements from energy suppliers that were not available when data was collected. Recording of the key figures was changed in 2024 due to new reporting criteria (ESRS). ² The key figure also includes mobile systems and comprises energy use rather than energy consumption. ³ Calculated according to the Volkswagen CSRD Handbook. Scope 2 was calculated on a market-related basis. ⁴ This key figure consists of emissions from paint shops, test rigs and other facilities. ⁵ This key figure consists of NOX emissions caused by plant boiler houses, paint shops and the operation of test rigs. ⁶ Water consumption is calculated on the basis of fresh water usage less wastewater and results, for example, from evaporation, seepage, delivery to the product. ⁷ Key figure includes nickel, chemical oxygen demand, fluoride.",107,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +371,audi.pdf,FinanceStrategy & Company ESG Appendix 108 Audi Report 2024 1 2 3 Social Photo: AUDI AG,108,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +372,audi.pdf,FinanceStrategy & Company ESG Appendix 109 Audi Report 2024 Photo: AUDI AG Content S 110 Fair working conditions and modern working forms 116 Occupational health and safety 119 Corporate culture and equal opportunities 125 Responsibility in the supply chain 130 Responsible digitalization 134 Vehicle safety 138 Corporate citizenship,109,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +373,audi.pdf,"FinanceStrategy & Company ESG Appendix 110 Audi Report 2024 Fair working conditions and modern working forms At the heart of the AUDI AG working world are its employees. Fair working conditions and modern working forms lay the foundation for high job satisfaction. F air working conditions, modern working forms and a corporate culture based on shared values all make a significant contribution to em- ployee satisfaction. They are an important prerequisite for retaining productive and qualified employees in the long term, despite the shortage of skilled workers and international competition. Qualified, high-performing and motivated employ- ees can have an impact on the company’s productivity, financial success, ability to innovate and thus ultimately on customer satisfaction and the company’s image. Excessive staff turnover, on the other hand, could lead to production downtime or a loss of important expertise, for example. GRI 401, 402, 404 Sustainable Development Goals The following SDGs are at the focus of this company commitment: Further information on Audi and the UN sustainability goals can be found on page 160. Photo: Getty Images AUDI AG is therefore continuously devel- oping measures to provide an attractive working environment for its employees.",110,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +374,audi.pdf,Photo: Getty Images AUDI AG is therefore continuously devel- oping measures to provide an attractive working environment for its employees. These measures include flexible working time models and a wide range of training and development opportunities.,110,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +375,audi.pdf,"FinanceStrategy & Company ESG Appendix 111 Audi Report 2024 In principle, guidelines and policies, such as the Audi Code of Conduct or various corporate policies and works agreements, govern the internal employment and working conditions at Audi. For example, the “Training” works agreement that came into force in 2023 emphasizes the signifi- cance of learning within the company and offers flexible opportunities for advanced training. But the Audi Group also champi- ons these causes outside the company: The Code of Conduct for Business Partners, for example, lays down rules for employment and working conditions in the supply chain. Boost in employer attractiveness Audi has committed unequivocally to electric mobility. However, this transfor- mation requires more than just technolog- ical innovation. The company also needs to retain experts and attract new specialists and talent. For this reason, AUDI AG intro- duced measures in the year under review that specifically target talented individu- als. These include networking events and direct interaction with experts from the technology industry. In the long term, AUDI AG aims to position itself as a top tech employer in order to actively meet the challenges of the future.",111,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +376,audi.pdf,"These include networking events and direct interaction with experts from the technology industry. In the long term, AUDI AG aims to position itself as a top tech employer in order to actively meet the challenges of the future. To boost its attractiveness as an employer, AUDI AG offers a wide range of company benefits in addition to those provided for by collective agreements. Examples include retirement benefits, partial retire- ment, medical care, leave funded from the time asset bond¹ and attractive leasing and purchase offers for new and near-new used Audi vehicles. These company benefits are available to all full-time and part-time employees of AUDI AG who are covered by a collective wage agreement. Within AUDI AG, which includes all of the company’s German sites, there is an employment guarantee until 2033 and ter- minations for operational reasons are ruled out. In addition, employment contracts at AUDI AG are essentially permanent.² The company also pledges to inform employees about operational changes, such as busi- ness restructuring, at an early stage. In the case of the terminations for operational reasons in Brussels, the company is pro- viding comprehensive offers that go well beyond what is legally required.",111,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +377,audi.pdf,"In the case of the terminations for operational reasons in Brussels, the company is pro- viding comprehensive offers that go well beyond what is legally required. For exam- ple, employees affected by the closure of the Audi Brussels plant are being offered additional payments and access to support services such as coaching programs. Training and development Additional opportunities for AUDI AG to boost its attractiveness as an employer lie in training and development as well as in modern working forms. The Audi Akademie plays a central role in training and development at Audi, bundles all of the company’s training activities – from vocational training to dual study programs and further training. The company has expanded its range of digital training formats in order to make learning opportunities as accessible as possible. For example, the Audi Learning Experience (Audi LXP) platform introduced in 2023 as the central digital entry point for all learning opportunities was further expanded in 2024. Audi LXP combines over 25,000 such opportunities. There is a wide range of formats, including live online training (LOT), e-learning and self-motivat- ed learning on one of the various learning platforms, such as LinkedIn Learning, Speexx and, since 2024, Haufe Akademie.",111,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +378,audi.pdf,"Employees can select their individual skills and find the courses that are relevant to them. In addition, there are a number of curated learning plans for selected topics. Since 2024, the company has offered its employees a web-based training (WBT) course called “Introduction to ESG at Audi” via the Audi LXP. The WBT course covers the fundamentals of sustainability in the context of the premium car manufacturer, thus helping to raise awareness of the topic among the company’s employees. Developing its workforce is a key priority for AUDI AG. At least once a year, there- fore, staff and their supervisors sit down to discuss professional development oppor- tunities and other training options as part of the employee development dialogue. This is true for employees with variable, performance-based pay as well as for employees not covered by collective wage agreements. Moreover, AUDI AG offers its workforce various transformation training measures that are designed to prepare employees for the challenges of the fu- ture. The focus here is on strategic areas of expertise such as digitalization and electrification. Since 2019, more than 50 topic-specific and needs-based transfor - mation training programs have already prepared several thousand employees for the future.",111,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +379,audi.pdf,"Since 2019, more than 50 topic-specific and needs-based transfor - mation training programs have already prepared several thousand employees for the future. The individual programs of- fered measures ranging from WBT courses to on-site training and on-the-job coach- ¹ The time asset bond gives employees the option of foregoing payment of salary components above the collective agreement pay scale in favor of a reduction in working life. ² Exceptions may apply to certain positions, such as student employees. Illustration: C3 Visual Lab ing. In 2024 alone, employees completed over 200,000 hours of training. For exam- ple, the year under review saw employees at the main plant in Ingolstadt receiving training and further qualifications in battery production in order to meet the requirements of the transformation in the field of powertrain technology. Promoting privately organized further education (usually in the form of studies) also plays an important role for AUDI AG in the context of employee retention. The company supports its employees in a number of ways, including educational leave, temporary employment termination with a guarantee of reinstatement or Audi employee scholarships.",111,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +380,audi.pdf,"The company supports its employees in a number of ways, including educational leave, temporary employment termination with a guarantee of reinstatement or Audi employee scholarships. AUDI AG offers the latter for accredited courses of study in the areas of digitalization, technology and engineering or interdisciplinary Transformation-related training 45,859 216,733 936,740 training hours Transformation-related training hours Training hours with a focus on energy systems/ e-mobility",111,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +381,audi.pdf,"FinanceStrategy & Company ESG Appendix 112 Audi Report 2024 functions, such as law or procurement management. Programs that combine an apprenticeship with a high-school diploma, work-study degree programs, the trainee program and vocational training at AUDI AG are constantly being adapted to the topics of the future and the strategic alignment of the company. In 2024, a total of around 650 young people started their vocational training at the AUDI AG sites in Ingolstadt and Neckarsulm, for example as digitaliza- tion management specialists or production mechanics. Professions in the field of digi- talization already account for more than 25 percent of the total training on offer. Additionally, more than 150 students began a dual study program at AUDI AG in 2024, including future-oriented courses of study such as artificial intelligence or robotics. Through the Audi Global Graduate Pro- gram, AUDI AG recruits highly qualified junior staff for strategically important areas of the company from colleges and universities all over the world. Among the main focal points are AI-supported soft- ware development or UI/UX development. The English-language program thus plays a significant role in the company’s trans- formation and promotes a diverse range of perspectives.",112,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +382,audi.pdf,"Among the main focal points are AI-supported soft- ware development or UI/UX development. The English-language program thus plays a significant role in the company’s trans- formation and promotes a diverse range of perspectives. Modern working forms Audi is convinced that modern working forms are a major factor in how attractive an employer is and also help strength- en the long-term loyalty of employees. Options for family care, collaboration and mobile working not only make it easier to strike a healthy work-life balance, they can also boost employee motivation, produc- tivity and job satisfaction. Family care options In the context of work-life balance, reliable and logistically straightforward childcare is especially important for many employ- ees who have children. For this reason, AUDI AG already provides around 280 places in several daycare centers close to the Ingolstadt and Neckarsulm sites. The company offers a range of information and support options to make life easier for employees who act as carers. Employ- ees can take advantage of individual care advice, year-round online presentations and dialogue formats as well as regular awareness-raising and prevention cam- paigns.",112,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +383,audi.pdf,"Employ- ees can take advantage of individual care advice, year-round online presentations and dialogue formats as well as regular awareness-raising and prevention cam- paigns. The Ingolstadt site also supports Photo: AUDI AG the rooms, spaces can be easily adapted to the requirements of both short- and long-term projects. This enables projects to progress quickly while also allowing for continuous collaboration. And for tasks that can be easily completed from home – for example, because they do not require extensive coordination with the team – there is the additional option of mobile working. AUDI AG thus offers the best of both worlds: the dynamics of effective col- laboration in the office and the flexibility of working from home. During the year under review, a pilot project at the Ingolstadt site led to the development and successful implemen- tation of measures to also make working hours more flexible for employees who work fixed-cycle shifts. These employees now have the option of starting their shifts later or finishing earlier, all while remain- ing firmly integrated in the shift system.",112,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +384,audi.pdf,"These employees now have the option of starting their shifts later or finishing earlier, all while remain- ing firmly integrated in the shift system. Following successful implementation at the paint shop in Ingolstadt, the concept was also rolled out to part of the body shop during the year under review, with further rollouts planned for 2025. Moreover, a number of rooms at the Ingolstadt and Neckarsulm sites were refurbished during the year under review, with new furniture and an attractive color scheme producing a more pleasant environment for employees. On top of this, around 700 IT points were set up for staff working in production, thereby creating additional personalized access options to the digital ecosystem of AUDI AG. employees by providing places in a care facility for their relatives if they need short-term relief from caring for them at home. In addition, AUDI AG goes be- yond the legal requirements by enabling employees to take a full or partial leave of absence for up to three years to care for family members. They also have the option of extending their leave of absence by up to four additional years with a guarantee of reinstatement if they wish to care for relatives or prolong their parental leave.",112,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +385,audi.pdf,"They also have the option of extending their leave of absence by up to four additional years with a guarantee of reinstatement if they wish to care for relatives or prolong their parental leave. Flexible working Another factor that contributes signifi- cantly to a good work-life balance and thus to an employer’s attractiveness is flexible working. For some tasks – in particular work on vehicle projects – collaborating in a team and therefore on site offers many advantages: speed, efficiency and, last but not least, the fun of working together. In the 2024 reporting year, AUDI AG set up modern project houses in Ingolstadt that are specifically designed to promote productive teamwork. As well as flexible office spaces, these project houses offer customizable concept rooms that can be used for both presentations and collabo- rative workshop-style working methods thanks to their state-of-the-art equipment and furnishings. The houses’ location right in the middle of Technical Development as well as the proximity of the rooms to each other foster synergies in project work, enabling teams to develop solu- tions quickly and efficiently, even across divisions. Thanks to the flexible design of",112,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +386,audi.pdf,"FinanceStrategy & Company ESG Appendix 113 Audi Report 2024 Workforce, Audi Group1, 2 Unit 2024 2023 2022 Audi Group Number 88,604 – – Domestic companies Number 56,428 – – AUDI AG Number 55,413 – – Foreign companies Number 32,176 – – Audi Brussels S.A./N.V. Number 2,855 – – Audi Hungaria Zrt. Number 11,431 – – Audi México S.A. de C.V. Number 5,660 – – Automobili Lamborghini S.p.A. Number 2,872 – – Bentley Motors Ltd. Number 4,254 – – Ducati Motor Holding S.p.A.",113,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +387,audi.pdf,"Number 5,660 – – Automobili Lamborghini S.p.A. Number 2,872 – – Bentley Motors Ltd. Number 4,254 – – Ducati Motor Holding S.p.A. Number 1,862 – – Structural data, Audi Group Female employees Number 14,978 – – Male employees Number 73,625 – – Other employees Number 1 – – Number of permanent employees Number 86,611 – – Female employees Number 14,565 – – Male employees Number 72,046 – – Other employees Number 0 – – Number of temporary employees Number 1,993¹ – – Female employees Number 413 – – Male employees Number 1,579 – – Other employees Number 1 – – Number of full-time employees Number 81,718 – – Female employees Number 11,217 – – Male employees Number 70,500 – – Other employees Number 1 – – Key figures Fair working conditions and modern working forms ¹ Recording of the key figures was changed in 2024 due to new reporting criteria (ESRS). ² As of December 31 of the year under review.",113,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +388,audi.pdf,"FinanceStrategy & Company ESG Appendix 114 Audi Report 2024 Structural data, Audi Group Unit 2024 2023 2022 Number of part-time employees² Number 6,886 – – Female employees Number 3,761 – – Male employees Number 3,125 – – Other employees Number 0 – – Number of employees without guaranteed working hours Number 0 – – Female employees Number 0 – – Male employees Number 0 – – Other employees Number 0 – – New hires Number 4,585 4,662 4,575 Turnover Number 2,760 – – Number of turnovers due to voluntary leave Number 1,304 – – Number of turnovers due to dismissal Number 398 – – Number of turnovers due to retirement Number 964 – – Number of turnovers due to death Number 94 – – Turnover rate Percent 3.131 – – Number of non-employees Number 3,997 – – Number of employees earning below the reference value for an adequate wage², ³ Number 0 – – Percentage of employees earning below the reference value for an adequate wage²,",114,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +389,audi.pdf,"997 – – Number of employees earning below the reference value for an adequate wage², ³ Number 0 – – Percentage of employees earning below the reference value for an adequate wage², ³ Percent 0 – – Key figures Fair working conditions and modern working forms ¹ Recording of the key figure was changed in 2024 due to new reporting criteria (ESRS). ² As of December 31 of the year under review. ³ In countries with a statutory minimum wage, the statutory minimum wage is used as the reference value for an adequate wage.",114,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 1.0 " +390,audi.pdf,"FinanceStrategy & Company ESG Appendix 115 Audi Report 2024 Structural data, AUDI AG Unit 2024 2023 2022 New hires Number 1,261 2,047 925 Audi profit share per employee⁴ EUR 5,310 8,840 8,510 Number of employees covered by collective bargaining agreements Number 51,934 – – Percentage of employees covered by collective bargaining agreements Percent 93.8 – – Training figures, AUDI AG¹ Number of training hours offered to and completed by employees Hours 936,740 – – Female employees Hours 155,782 – – Male employees Hours 780,958 – – Average training time per employee Hours 16.93 – – Female employees Hours 16.51 – – Male employees Hours 17.01 – – Production employees Hours 13.12 – – Non-production employees Hours 21.16 – – Employees in management positions Hours 13.63 – – Key figures Fair working conditions and modern working forms ¹ Recording of the key figures was changed in 2024 due to new reporting criteria (ESRS). ⁴ Payment in the following year; average figure for a skilled worker at AUDI AG.",115,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +391,audi.pdf,"116 Audi Report 2024 FinanceStrategy & Company ESG Appendix O ccupational health and safety plays an important role in today’s working world. After all: More than ever, employees expect their employ- er to provide a safe and healthy working environment. If this is not provided, the company may not succeed in attracting and retaining the required qualified skilled workers. Satisfied, healthy and therefore productive employees, on the other hand, can reach their full potential, stay with the company for longer and therefore contrib- ute to the long-term success of a company. Occupational health and safety is therefore an important pillar of sustainable corpo- rate governance. This applies in particular to industrial manufacturing companies such as AUDI AG where part of the work - force performs physically strenuous tasks and faces particular dangers, for example when working with hazardous substances or on highly automated machines. Occupational health and safety AUDI AG believes that motivated and high-performing employees are the key to sustainable success. A comprehensive system for occupational health and safety makes a critical contribution towards achieving this goal and is therefore a high priority for the company.",116,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +392,audi.pdf,A comprehensive system for occupational health and safety makes a critical contribution towards achieving this goal and is therefore a high priority for the company. GRI 403 Photo: AUDI AG Sustainable Development Goals The following SDGs are at the focus of this company commitment: Further information on Audi and the UN sustainability goals can be found on page 160.,116,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +393,audi.pdf,"117 Audi Report 2024 FinanceStrategy & Company ESG Appendix The absence of protective measures or insufficient instructions would endanger the health of the employees. AUDI AG therefore takes its responsibility for occupational health and safety very seriously, which is reflected in various guidelines that apply to all company employees, such as the Audi Code of Conduct, the Statement of Principle on Occupational Health and Safety, specific operating and work instructions and in the corporate policies “Occupational Safety” and “Occupational Health/Corporate Health.” Clear requirements have also been defined for external firms that work in the operational areas of AUDI AG sites. The Board of Management is responsi- ble for compliance with the regulations. Furthermore, each operations supervisor is responsible for occupational safety in their supervisory and functional area. The supervisors are assisted in their task by more than 1,300 safety officers. Continuous development of occupational health and safety is essential for AUDI AG. Therefore, important KPIs are monitored regularly and, if required, measures are developed. Moreover, the Works Council,¹ management, HR and the employees are involved in the continuous enhancement of the company’s occupational health and safety standard.",117,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +394,audi.pdf,"Moreover, the Works Council,¹ management, HR and the employees are involved in the continuous enhancement of the company’s occupational health and safety standard. Occupational safety At AUDI AG, all measures and regulations that help to prevent accidents, injuries and other health impairments are consolidated in the area of occupational safety. A key element of this is the systematic assessment of hazards, including mental stress factors. Hazards are assessed for all work stations and activities. New machines or production equipment are also sub- jected to a risk assessment prior to their introduction. They are inspected regularly to ensure they remain in a safe condition. In addition, employees are instructed re- garding the risk situation at their particular work station and the associated protective measures, as the need arises but at least once per year. In addition to clear regulations, which are required for risk assessments, for exam- ple, AUDI AG strives for a safety culture in which every member of staff pays atten- tion to safety in their environment on their own initiative. For instance, the company’s employees have access to several channels for reporting ideas, suggestions or even potential safety risks. Audi places great value on informing and training all employ- ees.",117,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +395,audi.pdf,"For instance, the company’s employees have access to several channels for reporting ideas, suggestions or even potential safety risks. Audi places great value on informing and training all employ- ees. This is why, for example, the program “du.bist.sicher@audi” (you.are.safe@audi) was launched just under three years ago. It aims to deepen the understanding of oc- cupational safety and to motivate employ- ees to behave in a more safety-conscious manner. As part of the campaign, podcasts and videos illustrating best practice exam- ples, among other things, were published in 2024. In these, employees report on situations in which they were able to protect others against harm or changed their safety awareness through personal experiences. The objective of these formats is to encourage people to reflect on their own safety behavior and thus contribute to a long-term change in behavior. The ergonomic design of work stations represents another pillar of occupational safety.² This includes measures to reduce physical strain (for example, through mechanical support) and mental stress (for example, through more diverse activities) as well as to increase employee satisfac- tion (such as through more flexible work- ing hours for employees working shifts).",117,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +396,audi.pdf,"The success of efforts in the area of occupational safety was also clear to see in 2024: There has not been a single fatal industrial accident within AUDI AG for six years.³ Occupational health Promoting the health of employees, help- ing them to maintain that health or to re- cover from health issues is a top priority for AUDI AG. Building on occupational health medicals and the support of the company medical service, the company has estab- lished a comprehensive prevention pro- gram. This extends from the Audi Checkup and mental health care to programs for a healthy lifestyle. In this context, a modular program was offered for all employees and managers in 2024, for example, in which internal and external experts explained the factors influencing the maintenance and improvement of mental health. ¹ Members of the Works Council and/or employees are represented in committees and working groups. Additionally, the Works Council exercises its rights in accordance with the Labor Management Relations Act and organizes itself by location into its own committees on occupational health and safety and environmental protection. ² AUDI AG understands ergonomics as the adaptation of working conditions to people. ³ Workplace accidents involving temporary workers or employees of external companies are not included in the reported “accident frequency” figure for reasons of confidentiality and data protection.",117,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +397,audi.pdf,"² AUDI AG understands ergonomics as the adaptation of working conditions to people. ³ Workplace accidents involving temporary workers or employees of external companies are not included in the reported “accident frequency” figure for reasons of confidentiality and data protection. Photo: AUDI AG To ensure a high level of safety within AUDI AG, employees wear special protective clothing in some areas of production.",117,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +398,audi.pdf,"118 Audi Report 2024 FinanceStrategy & Company ESG Appendix Participants benefited above all from the experts’ practical advice and from exchang- ing ideas with each other. The Audi Checkup, which has been offered since 2006 and allows employees to obtain a comprehensive overview of their health at regular intervals and using the most modern diagnostics, helps to detect both acute and also any developing illness- es as quickly as possible. In addition, employees can also take advantage of the Mental Health Checkup. In consultation with psychologists and psychotherapists, interested parties can reflect on their own mental health. The aim is to be able to detect psychological stresses and anom- alies at an early stage and to help those affected by providing them with recom- mendations and resources. The Mental Health Checkup was developed by experts at AUDI AG. An ongoing research project with Düsseldorf University Hospital aims to investigate the long-term health effects of this service in order to further develop the Checkup. In the case of acute medical problems, the range of services offered has been rounded off with the acute care provided by the medical service and the Audi emergency service.",118,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +399,audi.pdf,"In the case of acute medical problems, the range of services offered has been rounded off with the acute care provided by the medical service and the Audi emergency service. The company has its own emer - gency vehicles, which are available both for internal emergencies and also for external use to provide peak coverage. Thanks to the good rescue service infra- structure and well-organized processes, an Audi emergency vehicle in Ingolstadt, for example, generally requires just three minutes to reach the scene of an emer - gency within the Audi plant. Alongside professional rescue specialists, AUDI AG attached considerable importance to the training and development of first-aiders; in 2024 alone, 2,763 first-aiders received basic and further training.",118,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 1.0 " +400,audi.pdf,"Alongside professional rescue specialists, AUDI AG attached considerable importance to the training and development of first-aiders; in 2024 alone, 2,763 first-aiders received basic and further training. Key figures, Audi Group Unit 2024 2023 2022 Number of employees covered by health and safety management system Number 87,849 – – Number of recordable work-related accidents for employees Number 1,335⁴ – – Rate of work-related accidents for own workforce (TRIR) Events/ million h 10.5⁴, ⁵ – – Number of fatalities as a result of work-related injuries of employees Number 1 – – Number of fatalities as a result of work-related injuries of non-employees Number 0 – – Number of fatalities as a result of work-related injuries of other workers working at the company’s sites Number 0 – – Key figures Occupational health and safety 2,763 first-aiders received basic and further training in 2024. Photo: AUDI AG 4 Recording of the key figure was changed in 2024 due to new reporting criteria (ESRS). 5 Only own employees are included in the key figure for 2024.",118,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +401,audi.pdf,"119 Audi Report 2024 FinanceStrategy & Company ESG Appendix I n today’s business world, corporate culture and equal opportunities are crucial to a company’s entrepreneurial and economic success. Companies that promote a positive corporate culture and equal opportunities for all can benefit from higher produc- tivity and an enhanced image. They create an inclusive working environment – one in which all employees, regardless of personal characteristics such as gender, have the same opportunities to contribute their skills and talents. This increases employee satisfaction and promotes innovation. Neglecting these issues, on the other hand, can lead to dissatisfaction, causing the company to lose employees along with their expertise, innovative strength and productivity. Another risk is that the potential offered by diverse and integrative teams is not utilized – with negative effects on a com- pany’s economic success. What’s more, ignoring these topics also carries a legal risk. That is why corporate culture and equal opportunities play a particularly important role for an international company like AUDI AG. More than 55,000 people with different backgrounds, different views, and abilities, people of different genders and ages as well as dif- ferent sexual orientations work at Audi in Germany alone.",119,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +402,audi.pdf,"More than 55,000 people with different backgrounds, different views, and abilities, people of different genders and ages as well as dif- ferent sexual orientations work at Audi in Germany alone. They are all united by a common understanding of the company’s culture and values. These values and principles are enshrined in various guidelines – includ- ing in the Volkswagen Group Essentials, the Audi Code of Conduct, the Statement of Principle on Diversity & Inclusion and in other corporate policies. The Audi corporate values The Audi corporate values – trust, responsibility, courage and enthusiasm – form the backbone of the corporate culture at Audi. They guide both Corporate culture and equal opportunities Shared values and the Audi Team Spirit are the foundation of the corporate culture at AUDI AG. The company is committed to diversity and integration, equal opportunities and protection from discrimination as well as to responsible leadership principles. GRI 405, 406-1 Sustainable Development Goals The following SDGs are at the focus of this company commitment: Further information on Audi and the UN sustainability goals can be found on page 160. Photo: AUDI AG",119,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +403,audi.pdf,"120 Audi Report 2024 FinanceStrategy & Company ESG Appendix employees and managers in their daily work and describe what living a modern and successful corporate culture looks like at Audi: > Trust is the foundation for fruitful col- laboration – whether internally within a team or in dealings with customers and business partners. Trust means commu- nicating openly and transparently and honoring the agreements we make. It creates an environment in which each of us can show initiative, take respon- sibility, rise above ourselves and be courageous. > Taking responsibility and being reliable: AUDI AG strives to apply its innovative strength to actively contribute to the well-being of people and nature. The topic of sustainability is therefore given special consideration in many deci- sions. But AUDI AG also feels a sense of responsibility to the company itself as well as its employees. An entrepre- neurial mindset focused on performance is therefore essential and ensures the company’s future viability. For this, the company needs to show persistence and be open to addressing even uncomfort- able topics, as well as to take initiative when new opportunities, challenges or risks arise. > Courage has led Audi to many ground- breaking innovations and iconic models.",120,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +404,audi.pdf,"> Courage has led Audi to many ground- breaking innovations and iconic models. And that same courage is now helping to shape the company’s future. Part of this is the courage to try out new things, Photo: AUDI AG to address issues openly and to fight for one’s ideas, along with the courage to make quick decisions, to collaborate across the Group and to foster an open culture in which mistakes can be admit- ted without shame. After all, only those who are not afraid of failure can break new ground. > Enthusiasm for products, services and the brand has long been a driving force at Audi when it comes to progress, innovation, design and quality. This en- thusiasm ignites a pioneering spirit and motivates employees to find innovative solutions – and to always give their best. Leadership culture Managers play a crucial role in anchoring the corporate values in the day-to-day work at AUDI AG. By embracing and upholding these values, they set a positive example for all employees. Managers at Audi see themselves primarily as enablers: They create scope for employ- ees to make their own decisions within their area of responsibility.",120,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +405,audi.pdf,"Managers at Audi see themselves primarily as enablers: They create scope for employ- ees to make their own decisions within their area of responsibility. In addition, managers cultivate a working environment in which everyone acts on an equal footing, different opinions are welcome and calculated risks can be taken. Mistakes are viewed as opportunities to learn, grow and develop. In this way, superiors encourage employees to realize their individual potential. AUDI AG is strengthening its leadership culture with a number of initiatives, such as the Role Model Program. This program offers managers a wide range of activities, including various workshops and review meetings, to further strengthen the cul- ture of dialogue and collaboration in their teams. In addition, managers are given the opportunity to reflect on and develop their own leadership style, for example through formats such as leadership feedback, where managers receive input from their employees, colleagues and superiors. Feedback culture and personal initiative AUDI AG seeks to create an environment in which all employees can bring their respective strengths to the fore. Promoting an open speak-up and feedback culture is a central pillar for this.",120,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 " +406,audi.pdf,"Promoting an open speak-up and feedback culture is a central pillar for this. For example, Audi regularly conducts surveys to find out what its employees think about relevant compa- ny issues or specific events or processes. What’s more, employees of AUDI AG have access to several (anonymous) grievance channels, including the anonymous whis- tleblower system. Employees are urged to report potential misconduct since the com- pany does not tolerate misconduct of any kind, whether it be workplace harassment or other improper behavior. All reported concerns are investigated and appropriate solutions sought, regardless of the report- ing channel used. Finally, Audi consistently encourages em- ployees to show initiative. The Audi Ideas Program (AIP) is a way for employees",120,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +407,audi.pdf,"121 Audi Report 2024 FinanceStrategy & Company ESG Appendix Photo: AUDI AG to contribute their ideas – including, since 2023, in the new category of sustainability. In the 2024 reporting year, the AIP cele- brated its 30th anniversary in its current form with an impressive record: More than one million ideas have been submitted, of which more than half a million have been implemented, generating measurable benefits for the company of around EUR 1.7 billion. A single idea for reducing transport costs resulted in savings of more than EUR 1.1 million in the first year alone. Launched in the 1960s as the Company Suggestion Scheme, the program continues to contribute to the company’s progress. Equal opportunities AUDI AG is committed to ensuring that all employees – regardless of gender, origin or other personal characteristics – have the same opportunities to develop their talents and abilities. This commitment to equal opportunities is not just a matter of fairness, but also a key factor of innova- tion, creativity and ultimately corporate success.¹ With this in mind, Audi is pursuing a holistic approach to diversity and inclusion (D&I).",121,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +408,audi.pdf,"AUDI AG has already established many measures on its way to becoming an inclusive company: The Human Resources division, for example, has had its own D&I team since March 2017, which deals with a wide range of topics. Among other things, it organizes training and awareness-raising formats, reviews HR processes, cooperates with international diversity initiatives and develops New Work projects. Three mea- sures were particularly notable in the 2024 reporting year: > We.Together – International Diversity & Inclusion Days 2024: Employees from across the Group took part in this international campaign week to jointly promote diversity and openness. The event offered 60 digital sessions in eight languages, including lectures, work- shops, networking events and panels. Around 7,500 international participants explored the question of what role diver- sity and inclusion can play in overcoming the current challenges in the automotive industry. For example, the participants discussed issues such as protection against bullying and psychological safety as a driver for team performance. ¹ McKinsey study: Diversity matters even more: The case for holistic impact (2023). > Audi inclusion survey: Another inclu- sion survey was conducted in the 2024 reporting year.",121,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +409,audi.pdf,"¹ McKinsey study: Diversity matters even more: The case for holistic impact (2023). > Audi inclusion survey: Another inclu- sion survey was conducted in the 2024 reporting year. The aim of the Group- wide survey was to measure progress compared with the previous year’s sur- vey and to identify further potential for improving inclusion within the company. Some 11,500 employees took part in the survey – an increase of more than 2,500 over the previous year. > Anti-Discrimination Office: In response to the results of the 2023 inclusion survey, a new point of contact was set up for anti-discrimination issues. This office supplements the existing points of con- tact within the company and is intended to help create a discrimination-free environment. By means of preventive and educational measures, the Anti- Discrimination Office helps ensure that the principles of non-discrimination are upheld throughout the company. Another important goal of the human resources work at AUDI AG lies in the in- clusion of people with severe disabilities.",121,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +410,audi.pdf,"Another important goal of the human resources work at AUDI AG lies in the in- clusion of people with severe disabilities. In this context, the company has put in place a systematic and transparent approach that uses various measures (for example, workplace adjustments, training) to enable severely disabled people to realize their full potential. The measures are developed individually for each employee, tracked and reviewed annually by an interdisciplinary committee of experts. Proportion of women An important aspect of equal opportunities is the appointment of women to leadership positions. Essential levers here include setting targets and linking management remuneration to the extent to which these targets are met. Regular discussions are held within the Board of Management as well as at the management levels",121,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 " +411,audi.pdf,"122 Audi Report 2024 FinanceStrategy & Company ESG Appendix regarding the degree of target achieve- ment and any further measures that may be required. The Supervisory Board’s target for 2025 is for women to make up 30 percent of its members. This target is to be met individually on the shareholder and employee sides. As of December 31, 2024, the proportion of women on the Supervisory Board was 35 percent. The Supervisory Board has set a target of two women on the Board of Management by 2026. There was one woman on the Board Sending a message for more diversity in the supply chain Audi also promotes diversity in terms of sexual orientation and gender identity in the supply chain. In 2023, the company became the first German company to join the European LGBTIQ+ Chamber of Commerce (EGLCC). AUDI AG has also joined the WEConnect International network, which campaigns for better opportunities for women in business. By joining this network, Audi wants to make it easier for suppliers with diverse leadership to gain access to the company. Read more about the topic of responsibility in the supply chain here. of Management of AUDI AG at the end of 2024.",122,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +412,audi.pdf,"Read more about the topic of responsibility in the supply chain here. of Management of AUDI AG at the end of 2024. Audi also aims to increase the proportion of women at the lower levels of management: At the first level below the Board of Management, the proportion of women is to increase to 12 percent by the end of 2025. The target for the second management level is 20 percent. AUDI AG is taking a variety of measures to increase the proportion of women, includ- ing job sharing in leadership positions, better opportunities for reconciling work and family life and programs such as “Sie und Audi,” an orientation program for young female talent. In addition, the company offers training for managers and employees on avoiding unconscious bias. As the name suggests, this refers to prej- udices people have about the abilities and skills of individuals or groups that arise from unconscious thought patterns associ- ating people with certain stereotypes. Audi also offers training on many other topics in the area of diversity and inclusion, either in person or via an interactive, digital online platform.",122,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +413,audi.pdf,"Audi also offers training on many other topics in the area of diversity and inclusion, either in person or via an interactive, digital online platform. To be able to objectively measure the prog- ress made in implementing its diversity, equity and inclusion, Audi regularly sub- mits to external evaluations – for example, by means of the Germany-wide Women’s Career Index (FKi). This index examines to what extent companies promote equal op- portunities in the workplace. Among other things, it takes into account the framework conditions for reconciling work and family life as well as opportunities for personal development. In the 2024 reporting year, AUDI AG was ranked among the 10 best companies that took part in the FKi. Photo: AUDI AG",122,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 " +414,audi.pdf,"123 Audi Report 2024 FinanceStrategy & Company ESG Appendix Workforce, Audi Group², ³ Unit 2024 2023 2022 Workforce Number 88,604 – – Production employees Percent 47.0 – – Non-production employees Percent 50.1 – – Number of apprentices Number 2,585 – – Average age Years 42.0 – – Employees under 30 years old Percent 15.03 – – Employees between 30 and 50 years old Percent 57.84 – – Employees over 50 years old Percent 27.12 – – Management, Audi Group³ Number of top management employees Number 82 – – Female employees Number 10 – – Percentage of female employees Percent 12.2 – – Male employees Number 72 – – Percentage of male employees Percent 87.8 – – Other employees Number 0 – – Percentage of other employees Percent 0 – – Key figures Corporate culture and equal opportunities ² Recording of the key figures was changed in 2024 due to new reporting criteria (ESRS). ³ As of December 31 of the year under review.",123,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +415,audi.pdf,"124 Audi Report 2024 FinanceStrategy & Company ESG Appendix Key figures Corporate culture and equal opportunities ² Recording of the key figures was changed in 2024 due to new reporting criteria (ESRS). ³ As of December 31 of the year under review. ⁴ There was one case concerning discrimination and harassment in the reporting period that was categorized as a potentially serious regulatory violation. There were no confirmed cases of serious regulatory violations in the reporting period. In addition, 20 cases relating to discrimination/bullying/stalking and harassment were recorded in the disciplinary statistics and sanctioned in the reporting period. ⁵ Statistical recognition of the total benefit was changed in 2023. With the change, ideas with a total benefit of > EUR 30,000 are not statistically recognized until after the first year of use, when the total benefit of the idea has actually been realized, rather than as before in the month following completion of the idea. Proportion of women, Audi Group², ³ Unit 2024 2023 2022 Audi Group Percent 16.9 – – AUDI AG Percent 17.1 – – Audi Brussels S.A./N.V. Percent 7.9 – – Audi Hungaria Zrt. Percent 13.0 – – Audi México S.A.",124,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +416,audi.pdf,Percent 7.9 – – Audi Hungaria Zrt. Percent 13.0 – – Audi México S.A. de C.V. Percent 16.6 – – Automobili Lamborghini S.p.A. Percent 20.6 – – Bentley Motors Ltd. Percent 19.8 – – Ducati Motor Holding S.p.A.,124,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +417,audi.pdf,"Percent 16.6 – – Automobili Lamborghini S.p.A. Percent 20.6 – – Bentley Motors Ltd. Percent 19.8 – – Ducati Motor Holding S.p.A. Percent 18.1 – – Incidents of discrimination and remedial measures taken, Audi Group Number of incidents of discrimination and remedial measures taken Number 20⁴ – – AUDI AG Ideas Program Total benefit EUR million 59.7 68.8⁵ 80.1 Implementation quota Percent 56.6 58.0 59.2 Persons in the organization’s governance bodies from each of the following diversity categories:³ Gender Age groups Supervisory Board Board of Management Supervisory Board Board of Management 65.0% men 35.0% women 85.7% men 14.3% women > 50 years: 70.0% 30–50 years: 30.0% < 30 years: 0% < 30 years: 0% 30–50 years: 28.6% > 50 years: 71.4% Illustration: C3 Visual Lab",124,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +418,audi.pdf,"125 Audi Report 2024 FinanceStrategy & Company ESG Appendix Responsibility does not end at the factory fence. The Audi Group systematically promotes more sustainable supply chains and has set itself the goal of going beyond mere compliance with statutory requirements. The aim is to uphold human rights and meet both environmental and social standards. ¹ Global production sites of Audi vehicles. ² AUDI AG and selected subsidiaries, defined by internal policies. Responsibility in the supply chain GRI 204, 308, 414 C ompanies not only bear responsibil- ity for their own employees, society and the environment; together with their suppliers and business partners, they are committed to ensuring fair work- ing conditions for all and to protecting the environment – throughout the entire supply chain. Audi¹ currently works with more than 12,400 suppliers in 62 countries. Vehicle production is based on global and widely branched supply chains. Various situations may arise that violate the principles of the Audi Group² with regard to social, labor and environmental issues and could thus potentially harm the company’s reputa- tion. In recent years, regulations have been introduced at several political levels to enshrine this responsibility in law.",125,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +419,audi.pdf,"In recent years, regulations have been introduced at several political levels to enshrine this responsibility in law. The German Supply Chain Due Diligence Act, which entered into force in 2023, focuses on protecting human rights and the envi- ronment. On May 24, 2024, the Council of the European Union adopted the Corporate Sustainability Due Diligence Directive (CSDDD). Besides environmental and hu- man rights aspects, it also sets out require- ments for climate change mitigation. Photo: AUDI AG Sustainable Development Goals The following SDGs are at the focus of this company commitment: Further information on Audi and the UN sustainability goals can be found on page 160.",125,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +420,audi.pdf,"126 Audi R eport 2024 FinanceStrategy & Company ESG Appendix The provisions of the German Supply Chain Due Diligence Act will therefore have to be extended, resulting in further obligations for companies. The Audi Group² seeks to achieve a more sustainable economy in which business success is based on corporate values, compliance and integrity. Strong part- ners along the supply chain are crucial to successfully reaching the defined environ- mental, human rights and due diligence targets. Three fields of action in the Audi Group² To fulfill its responsibility in the supply chain, the Audi Group² has established appropriate structures and is working on measures in three fields of action: environment, innovation and people. All aspects of the first field of action can be found in the Environment chapter of this report. Measures in the “Innovation” field of action are aimed at improving transparency – for example of violations of the Code of Conduct for Business Partners (CoCBP) in the complex global supply chains – through increased integration of new technologies and proactively promot- ing cooperation with suppliers. Specifically, AUDI AG – for instance as part of the Act4Impact sustainability initiative – has built a network together with suppliers to work on joint solutions for a more sustainable supply chain.",126,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +421,audi.pdf,"Specifically, AUDI AG – for instance as part of the Act4Impact sustainability initiative – has built a network together with suppliers to work on joint solutions for a more sustainable supply chain. The Act4Impact Playbook provides information and specific starting points for sustainable improve- ments: It is divided into several modules that familiarize suppliers with basic theory on the topics of people, the environment and innovation, and give them the tools they need to make their own processes more sustainable. In the 2024 report- ing year, for example, in-depth supplier training was offered in the areas of circular economy, decarbonization and water. Audi also offers suppliers further learning for- mats such as workshops, training courses, seminars and train-the-trainer sessions. Principles of cooperation Certain basic requirements must be fulfilled for collaboration with the Volkswagen Group – and thus with AUDI AG and selected subsidiaries. Risk assessment First, a risk analysis is carried out. This is based on a multi-stage process that initially considers industry-specific risks in relation to protected human rights and natural resources. In this way, higher-risk industries are identified.",126,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +422,audi.pdf,"This is based on a multi-stage process that initially considers industry-specific risks in relation to protected human rights and natural resources. In this way, higher-risk industries are identified. By combining the industry risk with a country risk, suppliers can be assigned to a low, medium or high sustainability risk category. This risk assessment, which is updated an- nually or whenever there is cause to do so, serves as the basis for a series of standard and more in-depth measures: Code of Conduct for Business Partners The sustainability requirements of the Volkswagen Group – and thus also the expectations of the Audi Group² – with respect to partner companies are summa- rized in the CoCBP. It governs the obliga- tions of suppliers with regard to envi- ronmental protection, human and labor rights, business ethics and sustainability requirements to ensure responsible supply chains.",126,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +423,audi.pdf,"It governs the obliga- tions of suppliers with regard to envi- ronmental protection, human and labor rights, business ethics and sustainability requirements to ensure responsible supply chains. The obligations are based in particular on the following national and international standards and conventions: > T en Principles of the United Nations (UN Global Compact) > UN Guiding Principles on Business and Human Rights > OECD Guidelines for Mul tinational Enterprises > OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas > C onventions of the International Labour Organization (ILO), in particular the fundamental labor rights > Guiding Principles of the Drive Sustainability Initiative By working with the Audi Gr oup,² busi- ness partners agree to comply with the CoCBP and thus, for example, to treat all employees equally and recognize labor-related rights such as freedom of association, occupational health and safety, and legally prescribed working hours. In addition, the CoCBP condemns all forms of modern slavery and child labor and prohibits all forms of discrimination, whether based on age, origin, gender or other aspects.",126,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +424,audi.pdf,"In addition, the CoCBP condemns all forms of modern slavery and child labor and prohibits all forms of discrimination, whether based on age, origin, gender or other aspects. Reporting channels for potential violations All stakeholders – including employees of supplier companies or members of civil society – can report potential violations of the CoCBP through various reporting chan- nels. With the help of the Supply Chain Grievance Mechanism (SCGM), reports can be submitted to the Audi Group at any time – also anonymously if desired – through various channels: by email, via an online reporting channel and, since November 2024, also by telephone voice message and via the “SpeakUp – Listen for a change” app. The reporting channels can be accessed via the Audi web page on the Whistleblower System. Additionally, an ombudsperson is available as an external reporting point. The procedural principles of the Audi Group’s grievance mechanism specify, among other things, that reports of viola- tions must be treated confidentially and that whistleblowers must be protected from discrimination and reprisals. During the reporting period, the SCGM was used to process 213 reports of violations within the Volkswagen Group.",126,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +425,audi.pdf,"During the reporting period, the SCGM was used to process 213 reports of violations within the Volkswagen Group. Sustainability Rating One of the main risk-based tools for check- ing whether suppliers are complying with the Audi Group’s² sustainability require- ments is the Sustainability Rating, also known as the S-Rating. The S-Rating is a standardized tool of the Volkswagen Group that is used to assess the sustainability performance of relevant suppliers in the areas of the environment, social issues and integrity and, in further stages, to mitigate the associated risks. It is directly relevant to the awarding of contracts. The result of the S-Rating is divided into three catego- ries: suppliers with an A or B rating fulfill the requirements of the Volkswagen Group to a sufficient extent and are therefore eligible for being awarded contracts. If a supplier company does not meet the ² AUDI AG and selected subsidiaries, defined by internal policies. You can find more information in the Volkswagen Group Sustainability Report 2024.",126,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +426,audi.pdf,"127 Audi Report 2024 FinanceStrategy & Company ESG Appendix requirements (C rating), it is generally not eligible to be awarded a contract. There is therefore a direct incentive for suppliers to improve their sustainability performance. The rating is based on a self-assessment questionnaire (SAQ) – a standardized questionnaire that was developed together with several automotive partner companies as part of the Drive Sustainability initiative. The aim is to identify shortcomings and encourage suppliers to make improve- ments by giving them specific pointers. It is the suppliers’ responsibility to actively eliminate any deviations from the required standards. In the SAQ, suppliers must provide specific information on manage- ment systems and company guidelines and policies. For example: Any supplier with manufacturing operations employing more than 100 employees at a single site must provide evidence of a certified environmen- tal management system. If the evaluation of the SAQ – possibly in combination with a country risk score – indicates an increased risk, the supplier may be subjected to an on-site audit. Such an audit takes about eight hours and covers various key audit areas, including child labor, supply chain management, working hours and handling of hazardous materials.",127,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +427,audi.pdf,"Such an audit takes about eight hours and covers various key audit areas, including child labor, supply chain management, working hours and handling of hazardous materials. In matters of wages, an auditor checks – for example by examining documents and interviewing employees – whether workers in the supply chain receive a record of their wage payments, whether there are any unlawful deductions from their wages or whether overtime pay regulations are being disregarded. Once the audit has been completed, a final report – the Corrective Action Plan (CAP) – is drawn up and signed by the audited suppli- er and the auditor. The corrective actions set out in the CAP must be implemented within a specified period of time. Implementation must be documented and, in the case of more serious violations, verified by means of re-audits. If the corrective actions prove unsuccessful, the business relationship with the supplier in question may be terminated as a last resort. Further information can be found in the S-Rating Info Hub. To supplement these on-site audits, AUDI AG and a number of other automo- tive companies have joined forces under the umbrella of the Responsible Supply Chain Initiative (RSCI) and developed an addi- tional industry-wide audit standard.",127,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +428,audi.pdf,"These third-party on-site audits are gradually being implemented at AUDI AG and within the Volkswagen Group and are intended to replace the existing on-site audits in the long term. Between the introduction of the S-Rating and the end of the reporting period, more than 19,000 direct suppliers of the Volkswagen Group had completed an SAQ. According to their feedback, 8,093 suppliers have been able to improve their sustainability performance through target- ed corrective actions. Media screening and supplier training Alongside the measures mentioned, the Audi Group² uses media screening as a standard measure to monitor suppliers with a medium or high risk profile and identify any risks that may arise. The cata- log of measures is rounded off by training for direct suppliers on sustainability stan- dards in the supply chain, covering topics such as human rights and environmental issues.",127,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +429,audi.pdf,"The cata- log of measures is rounded off by training for direct suppliers on sustainability stan- dards in the supply chain, covering topics such as human rights and environmental issues. Systematic approach to due diligence in the upstream supply chain In addition to the standard measures de- signed to ensure a responsible supply chain – such as the CoCBP, the S-Rating, media screening and the Supply Chain Grievance Mechanism – there are more deep dive measures for both direct Illustration: C3 Visual Lab Risk analysis Measures Industry-based sustainability risk assessment Standard measures, preventive and reactive Deep dive measures Supplier-based allocation to sustainability risk high medium low Country risk filter Relates to the production site Sustain- ability Rating Code of Conduct for Business Partners Supply Chain Grievance Mechanism Media screening Supplier training Human Rights Focus System (HRFS) Raw Materials Due Diligence Management System (RMDDMS) Analysis Deep dive Measures Assessment Mitigation Impact evaluation + n-tier + n-tier ² AUDI AG and selected subsidiaries, defined by internal policies.",127,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +430,audi.pdf,"128 Audi Report 2024 FinanceStrategy & Company ESG Appendix suppliers and upstream (n-tier) suppliers in the globally distributed supply chains. These deep dive measures include, in particular, the Human Rights Focus System (HRFS) and the Raw Materials Due Dili- gence Management System (RMDDMS). Human Rights Focus System (HRFS) The HRFS is a specific management approach to identify systematic issues in the supply chain – by using internal data from the S-Rating, SCGM or on-site audits, as well as by evaluating external informa- tion from studies and NGOs. It serves to pinpoint and address human rights and environmental risks that require more in- depth analysis. In 2023, this approach led to the identification of three focus topics for the Volkswagen Group, which were followed up more closely during the year under review: forced labor, living wages and supplier management. The basic approach to dealing with these focus topics always starts with a structured investiga- tion of the causes, in order to develop and then implement corrective actions based on the results. AUDI AG and Volkswagen are working together on the focus topic of living wages. The CoCBP calls on suppliers to pay their employees an adequate wage.",128,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +431,audi.pdf,"AUDI AG and Volkswagen are working together on the focus topic of living wages. The CoCBP calls on suppliers to pay their employees an adequate wage. This wage should at least cover the basic needs of the employees so that they and their fami- lies can make a decent living – including adequate food, clothing and accommoda- tion, as well as a steady improvement in their living conditions. In 2024, the Group developed a method for calculating living wages in the supply chain. It also analyzed which industry- or country-specific risks stand in the way of a living wage. Step by step, the findings of this analysis are to be integrated into the standard procurement processes by means of suitable measures. One example of this would be to take living wages as the lower limit in wage calcula- tions. Raw Materials Due Diligence Management System (RMDDMS) The RMDDMS is used to address human rights and environmental risks in raw ma- terial supply chains. Certain raw materials are extracted and processed under condi- tions that pose a particularly high risk of violating the Audi sustainability standards, whether through discrimination or inade- quate occupational safety precautions.",128,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +432,audi.pdf,"Certain raw materials are extracted and processed under condi- tions that pose a particularly high risk of violating the Audi sustainability standards, whether through discrimination or inade- quate occupational safety precautions. The Volkswagen Group has identified 18 raw The Audi Group has considered respect for and compliance with human rights to be part of its corporate responsibility for many years. This is enshrined in the binding Audi Code of Conduct as well as in the Compliance Management System and the sustainability requirements for its global supply chains. At Audi, the topic of business and human rights is overseen by the Compliance department – with many interfaces to experts and specialist areas throughout the company. Since 2023, the Audi Group Human Rights Officer has been responsible for monitoring respect for human rights within the Group and along the supply chain. He and his team review, analyze and monitor all activities of the Audi Group that are relevant to human rights. The company comprehensively updated its Statement of Principle: Respect for and Observance of Human Rights to reflect the requirements of the German Supply Chain Due Diligence Act as early as 2023. Since then, the content has been reviewed annually.",128,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +433,audi.pdf,"Since then, the content has been reviewed annually. Moreover, AUDI AG published its first Report on the Fulfillment of Due Diligence Obligations (in German only) in accordance with the German Supply Chain Due Diligence Act in June 2024. In addition, Audi publishes a statement annually on the company’s website in relation to the measures taken and management approaches for avoiding forms of modern slavery (Slavery and Human Trafficking Statement). Other human rights-related activities include a “Human Rights Expert Group” comprising one representative each from the fields of science, business and supranational institutions, which was set up by the Human Rights Officer. The group meets at least four times a year, advising the company on selected aspects of the Audi human rights strategy and its implementation, as well as on specific issues and challenges. During on-site visits, the Human Rights Officer verifies that the obligations arising from the German Supply Chain Due Diligence Act are being met at the respective sites. In the year under review, the Human Rights Officer visited Audi México and Audi Hungaria, for example. Employees of the Audi Group learn about respect for human rights through a self-study program and a mandatory online training course.",128,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +434,audi.pdf,"In the year under review, the Human Rights Officer visited Audi México and Audi Hungaria, for example. Employees of the Audi Group learn about respect for human rights through a self-study program and a mandatory online training course. An exchange with stakeholders takes place in various forms, including the annual Human Rights Stakeholder Dialogue. You can find more information at audi.com. Focus on human rights materials as being particularly risk-prone, including cobalt, copper and aluminum, and these are dealt with specifically in the RMDDMS. The due diligence process is based on the five steps of the OECD Due Diligence Guidance for Responsible Business Conduct and the requirements of the OECD Due Diligence Guidance for Re- sponsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. In addition, risk-based audits are also carried out at n-tier suppliers. Within the Volkswagen Group, AUDI AG bears responsibility for the raw materi- als aluminum and copper – and thus for analyzing the risks associated with these raw materials throughout the Group and for devising measures to minimize those risks.",128,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +435,audi.pdf,"In view of its responsibility for the raw material aluminum, AUDI AG has joined the Aluminium Stewardship Initiative (ASI), which was formed from an alliance of vari- ous stakeholders in the aluminum industry. Its goal is to promote responsible ² AUDI AG and selected subsidiaries, defined by internal policies.",128,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +436,audi.pdf,"129 Audi Report 2024 FinanceStrategy & Company ESG Appendix extraction, processing and use of alumi- num. Audi is the first car manufacturer worldwide to have been certified according to both the ASI Performance Standard (2018) and the ASI Chain of Custody Stan- dard (2021). The current status, progress and targets of the RMDDMS are reported annually in the Responsible Raw Materials Report. This report also details the company’s involve- ment in various industry initiatives, such as the ASI and The Copper Mark. These standard and more in-depth mea- sures, when used in combination, can help identify and appropriately address human rights and environmental risks. Procurement with Purpose for diverse supply chains Through Procurement with Purpose, the Audi Group² seeks to support diverse supply chains. Potential new partners are identified on the basis of two criteria. First: They can create added value at the social level by offering solutions for social or ecological challenges (social businesses). And sec- ond: They are run by members of groups that are underrepresented in the business world (minority-owned businesses), such as women, people with disabilities or members of the LGBT_IQ³ community.",129,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +437,audi.pdf,"And sec- ond: They are run by members of groups that are underrepresented in the business world (minority-owned businesses), such as women, people with disabilities or members of the LGBT_IQ³ community. The company’s needs are screened against what the suppliers offer by means of a matching process in order to identify potential for collabo- ration. In 2024, the Audi Group² awarded contracts to social businesses internationally, for example at Audi Hungaria, Italdesign or Lamborghini. Further impetus for Procurement with Purpose in the year under review came from the company’s membership in the European LGBTIQ+ Chamber of Commerce, which promotes sexual and gender diversity in a procure- ment context, and the WEConnect International network, which is commit- ted to creating more equal opportunities for women in business. ² AUDI AG and selected subsidiaries, defined by internal policies. ³ Lesbian, gay, bisexual, transgender, intersex, queer. The underscore in LGBT_IQ symbolizes the range of transgender people. ⁴ Within the Volkswagen Group. ⁵ Training for Procurement employees at AUDI AG has been offered since 2019. This key figure was included for the first time in the Audi Report 2023.",129,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +438,audi.pdf,"⁴ Within the Volkswagen Group. ⁵ Training for Procurement employees at AUDI AG has been offered since 2019. This key figure was included for the first time in the Audi Report 2023. Unit 2024 2023 2022 Self-assessment questionnaire (SAQ): direct suppliers with completed SAQ⁴ Number > 19,000 > 14,900 > 16,000 Self-assessment questionnaire (SAQ): percentage of new suppliers that were screened using social and environmental criteria⁴ Percent 20 26 12 S-Rating: revenue share of direct suppliers with a positive S-Rating (A and B rating) of the total procurement volume⁴ Percent 83 79 75 Audits (on-site): number of audits carried out in the course of the S-Rating⁴ Number 85 89 252 Training and certification: direct suppliers that received training on the subject of sustainability⁴ Number > 9,800 > 7,700 > 2,900 Training and certification: Procurement employees of AUDI AG who participated in training on the subject of sustainability Number 305 6215 – Key figures Responsibility in the supply chain",129,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +439,audi.pdf,"FinanceStrategy & Company ESG Appendix 130 Audi Report 2024 Responsible digitalization Audi is driving digitalization forward in a systematic and responsible manner – in the vehicle and the customer experience as well as in production and in company processes. Sustainable Development Goals The following SDG is at the focus of this company commitment: Further information on Audi and the UN sustainability goals can be found on page 160. GRI 418 D igitalization and networking influence the daily lives of billions of people and affect all links in the value chain. They drive technological advances and help to create efficient work processes. The increasing digitalization of services and functions in the vehicle not only en- ables new offerings and useful equipment elements, it also makes mobility smarter and more personal. Customers are increas- ingly keen for digital services and functions to be tailored to their personal needs – this is an important factor in their purchasing decision. In addition, digitalization can help reduce the risk of accidents, for example through assisted, semi-auto- mated and, in the future, fully automated driving, as well as through the increasingly close networking of vehicles with their environment. Digitalization also makes it easier to design efficient work processes, such as in production and logistics.",130,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +440,audi.pdf,"Digitalization also makes it easier to design efficient work processes, such as in production and logistics. Photo: AUDI AG Across the entire value chain, increasing digitalization means an increasing exchange of data. Handling data responsi- bly is therefore a top priority for Audi. Digitalization of services and functions in the vehicle The connected models of the Audi brand offer customers a wide range of digital ser- vices that can provide greater convenience and safety. Four examples from the year under review: > Audi has significantly expanded voice control and made it even more conve- nient with the Audi assistant,¹ a ¹ Availability is dependent on vehicle model and model year. Part of Audi connect navigation & infotainment (IT3). Language availability is country-specific. For information on country and language availability, please contact an Audi Partner or visit the Audi configurator at www.audi.de (in German only). Further information on the Audi assistant at www.audi.de/technologie (in German only).",130,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +441,audi.pdf,"FinanceStrategy & Company ESG Appendix 131 Audi Report 2024 AR HUD⁶ in the Audi Q6 e-tron: The displays can be understood quickly without distracting the driver. Status area Augmentable area up to 200 meters in front of the vehicle ¹ Availability is dependent on vehicle model and model year. Part of Audi connect navigation & infotainment (IT3). Language availability is country-specific. For information on country and language availability, please contact an Audi Partner or visit the Audi configurator at www.audi.de (in German only). Further information on the Audi assistant at www.audi.de/technologie (in German only). ² Further information can be obtained from an Audi Partner or via the Audi configurator at www.audi.de (in German only). ³ Part of Audi connect navigation & infotainment (IT3). Language availability is country-specific. Please contact an Audi partner or visit the Audi configurator at www.audi.de (in German only) for information on country and language availability. Further information on the Audi assistant is available at www.audi.de/technologie (in German only). ChatGPT is provided via Microsoft Azure® OpenAI Service. Microsoft, Azure and their logos are registered trademarks of Microsoft Corporation in the United States of America and/or other countries.",131,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 " +442,audi.pdf,"ChatGPT is provided via Microsoft Azure® OpenAI Service. Microsoft, Azure and their logos are registered trademarks of Microsoft Corporation in the United States of America and/or other countries. The name “OpenAI” and the brand ChatGPT are the property of OpenAI. For technological reasons, the provision of incorrect information by AI systems cannot be com- pletely ruled out. On matters relating to the vehicle, always consult the Owner’s Manual in case of doubt. ⁴ ChatGPT is integrated automatically in all Audi models from model year 2021 onward that are equipped with the third-generation modular infotainment matrix (MIB 3) and have a valid license for Audi connect navigation & infotainment (plus) (IT3). No action is required by Audi customers. Further information can be obtained from an Audi Partner or via the Audi configurator at www.audi.de (in German only). ⁵ Polarized sunglasses restrict the use of the head-up display. ⁶ This function may be optionally configured for the Audi Q6 e-tron model line and is available for an extra charge. Further information is available via the Audi configurator at www.audi.de (in German only).",131,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 " +443,audi.pdf,"⁶ This function may be optionally configured for the Audi Q6 e-tron model line and is available for an extra charge. Further information is available via the Audi configurator at www.audi.de (in German only). Photo: AUDI AG self-learning voice assistant that is avail- able in both current and future models.² Vehicle occupants can interact with the car in natural language, control the info- tainment, navigation and climate control systems, or ask general knowledge questions.¹ To do this, they activate the assistant as usual by saying “Hey Audi” or by pressing the push-to-talk button on the steering wheel, and then ask any question they like. The Audi assistant¹ automatically recognizes whether the occupant wants to activate a vehicle function, search for a destination or ac- cess a weather forecast, for example. As an option, it can be proactive and learn from the user’s behavior: Certain recur- ring operating sequences can be recog- nized and automated, such as the use of seat ventilation above a certain outside temperature.",131,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +444,audi.pdf,"As an option, it can be proactive and learn from the user’s behavior: Certain recur- ring operating sequences can be recog- nized and automated, such as the use of seat ventilation above a certain outside temperature. The Audi Q6 e-tron, Audi A6 e-tron and new Audi A5, as well as all future models based on the E³ 1.2 electronics architecture, also feature a direct link to ChatGPT³ – an artificial intelligence (AI)-based chatbot solution – as an extension of the Audi assistant.¹ If the Audi system is unable to answer general knowledge questions, for exam- ple, they are forwarded to ChatGPT.³ And because all the functions are integrated into the Audi assistant,¹ this happens seamlessly and imperceptibly for the driver and passengers. ChatGPT³ is also available for Audi models equipped with the third-generation modular infotain- ment matrix (MIB 3) and produced from model year 2021 onward.⁴ > Thanks to the new E³ 1.2 electron- ics architecture, Audi customers can experience digitalization in the vehicle more directly than ever before.",131,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 " +445,audi.pdf,"A new introduction in the year under review was the second-generation augmented reality head-up display AR-HUD),⁵ as featured in the Audi Q6 e-tron.⁶ The technology gives drivers the impression that the elements displayed in the AR- HUD are hovering up to 200 meters away and interacting directly with elements in the environment. This enables them to quickly take in information such as navi- gation instructions, driver assist systems or song titles. From a technical perspec- tive, this effect is achieved by means of a tilted image plane and a large virtual image distance. > Smart technology is becoming more and more prevalent, not only in assist and infotainment systems but also in bat- tery management. The smart thermal management system for high-voltage (HV) batteries that Audi has developed for vehicles on the Premium Platform Electric, such as the Audi Q6 e-tron, plays a major role in optimizing charging performance and extending the service life of the HV battery. The system works predictively – in other words, it reacts in advance. It uses data from the departure timer, the navigation input, the route being driven and the Audi customer’s usage behavior to prepare the HV bat- tery for the charging process.",131,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +446,audi.pdf,"It uses data from the departure timer, the navigation input, the route being driven and the Audi customer’s usage behavior to prepare the HV bat- tery for the charging process. When the vehicle reaches the charging terminal, the HV battery is at the ideal tempera- ture, enabling short charging times. In addition, the thermal management system monitors the temperature of the HV battery throughout its lifetime and maintains the battery in the optimal temperature range, even when the",131,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +447,audi.pdf,"FinanceStrategy & Company ESG Appendix 132 Audi Report 2024 Responsible use of AI In the 2024 reporting year, Audi established a new organizational unit called Data Driven Enterprise. This unit is in charge of fine-tuning the company’s digital and transformation strategy and has central control over the data and AI strategy program at Audi. Its responsibilities include laying down strategic guidelines and managing compliance with statutory requirements for the use of data and AI in the company’s various divisions. In addition, the organization- al unit is the central point of contact and driving force for the compliant use of data and AI within the company. To support employees in their day-to-day work with AI, Audi has also issued a Statement of Principle on the responsible use of AI. The three guiding prin- ciples it contains – “Respect,” “Security” and “Transparency” – are aligned with the European Union’s Ethics Guidelines for Trustworthy AI. These guidelines have been incorporated into business practice through internal regulations and effective management systems. Further information can be found in the chap- ter Compliance & Integrity. vehicle is stationary, to ensure a longer service life – for example, when it is very hot or very cold outside.",132,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +448,audi.pdf,"Further information can be found in the chap- ter Compliance & Integrity. vehicle is stationary, to ensure a longer service life – for example, when it is very hot or very cold outside. > The dynamic interaction light (IAL⁶), which is available in the Audi Q6 e-tron, among other models, supports in- teraction between the vehicle and its occupants. The light strip, made up of 84 LEDs, extends around the interior and cockpit and offers three functions: It enhances safety by additionally visual- izing the turn signal inside the vehicle. Furthermore, it indicates how much bat- tery power is left and how far an ongoing charging process has progressed. And finally, it accentuates the interior with a welcome function and lights up when the vehicle is locked and unlocked. Transformation to a software-centric organization Electric, autonomous and highly connected driving all play an increasingly import- ant role in the automotive industry. In addition, there is growing demand among customers for digital services and func- tions that are tailored to their personal needs.",132,"[Guess]: No +[Confidence]: 1.0 +","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +449,audi.pdf,"In addition, there is growing demand among customers for digital services and func- tions that are tailored to their personal needs. Consequently, more and more software-based elements are finding their way into vehicles, making it necessary to reconsider the vehicle development pro- cess: The focus is shifting from hardware components such as the body, powertrain and suspension to customer functions. That is why the development of a software- defined vehicle (SDV) starts with the soft- ware and digital functionalities and then works its way up to the hardware. To speed up the development process and sharpen the focus on software, Audi has reorganized its structure. The trans- formation of Technical Development at AUDI AG is a clear sign that the company is forging ahead with its reorientation as a software-centric organization. As another step in this direction, the new “Innovation and Software-Defined Vehicle” division es- tablished during the year under review was incorporated into Technical Development under the leadership of Geoffrey Bouquot on January 1. Beyond that, AUDI AG will benefit from the Volkswagen Group’s joint venture with US car manufacturer Rivian.",132,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +450,audi.pdf,"Beyond that, AUDI AG will benefit from the Volkswagen Group’s joint venture with US car manufacturer Rivian. Together, the partners will accelerate software develop- ment and engineer the next generation of software-defined vehicle architectures that can be used by different brands of the Volkswagen Group. The aim is to maximize customer benefit through innovation, scalable architectures and cost-saving potential for both sides, as well as to increase cost efficiency in research and development. In addition, Rivian’s software and electronics hardware technology ideal- ly complement the global reach and vehicle platform expertise of the Volkswagen Group. Cariad will remain an important partner for Audi within the Volkswagen Group but will focus much more strongly on the develop- ment of cross-brand software solutions in the areas of autonomous driving, infotain- ment, cloud-based services, connectivity and data. Use of AI in business processes Artificial intelligence is a key technology that can help optimize processes and reduce complexity in various areas of the company. More than 100 use cases for AI have been identified in Production and Logistics alone, with their maturity levels ranging from the idea stage to testing all the way to series operation. But AI is also used in administrative areas.",132,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +451,audi.pdf,"But AI is also used in administrative areas. > IRIS (Intelligent Recognition and Inspection System) uses an image- processing AI during vehicle assembly to ensure that labels have been correctly applied to the relevant vehicle parts, for example to inform customers where to mount a child seat. While a camera takes pictures of the stickers, the AI in the background evaluates whether the label is stuck on the correct part and whether the content and language are appropriate for the vehicle’s destination country. Previously, the labels had to be checked manually by workers on the production line, which was more Photo: AUDI AG IRIS: The camera system with image-processing AI saves valuable production time. ⁶ This function may be optionally configured for the Audi Q6 e-tron model line and is available for an extra charge. Further information is available via the Audi configurator at www.audi.de (in German only).",132,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +452,audi.pdf,"FinanceStrategy & Company ESG Appendix 133 Audi Report 2024 time-consuming. IRIS is expected to save about one minute of production time per vehicle. At present, IRIS is being integrated and tested in pro- duction operations in Ingolstadt and Neckarsulm, with plans to deploy it in series production soon. > For administrative departments at AUDI AG, a modular system for chatbots has been developed, known as LLM⁷ Blueprints. An LLM Blueprint consists of programming modules that can be used in a variety of individual chat- bots. Thanks to this approach, certain functions, such as connectors to data sources, do not have to be created from scratch every time a new chatbot is developed. Instead, developers can build on what already exists. The LLM Blueprints thus provide a universal solution for customized, efficient and easily scalable chatbots in the special- ist areas. A number of subject-specific chatbots based on these LLM Blueprints are already in use: For example, the Audi Service Desk Chatbot assists employees in matters of IT, while the Corporate Regulations Chatbot offers support by drawing on a variety of documents relat- ed to Audi Corporate Regulations.",133,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +453,audi.pdf,"Obligations and guidelines for data protection and data security Whether customer, vehicle or company data: It is part of the corporate respon- sibility of AUDI AG to handle data with care, and this is anchored in its corporate policies and the Audi Code of Conduct. The focus here is on information security and data privacy. With respect to information security, Audi meets high quality standards, continuously enhances its security systems and relies on a high level of security awareness among its workforce. Audi builds high-frequency center New cars nowadays are fully con- nected and communicate with other vehicles and their surroundings. A wide range of technologies, including Wi-Fi, Bluetooth and 5G, means that some vehicles may have more than 30 antenna systems and a large num- ber of state-of-the-art control units. Functions such as autonomous driving or over-the-air (OTA) updates also rely heavily on radio systems. The task of employees at the new high-frequency center, which Audi has been building on the Technical Development site in Ingolstadt since October 2024, will be to test and optimize these systems, to ensure that they are optimally aligned with one another and to guarantee their immunity to interference in an electromagnetic environment.",133,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +454,audi.pdf,"By these means, the company seeks to prevent attacks on its IT landscape as far as possible, to recognize such attacks at an early stage and to minimize their conse- quences. This is enshrined in an IT security strategy and underpinned by targets. In doing so, Audi complies fully with legal requirements. Audi is bound by international informa- tion security standards – for example, the ISO/IEC 27000 series, on the basis of which Audi has implemented an effective Information Security Management System (ISMS). The ISMS is designed to ensure information security within the organiza- tion through suitable technical and orga- nizational measures. AUDI AG operates an ISMS for all of its divisions and sites. Additionally, an ISMS has been established at all sites of the Brand Group Progressive. ⁷ LLMs are large language models that are trained using vast amounts of data. They provide the technological basis for many modern chatbots, such as ChatGPT or Microsoft Copilot. LLMs are powerful AI models designed to understand and generate human language and images. ⁸ Transparency means that Audi informs its customers in a suitable manner regarding the use of their personal data.",133,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +455,audi.pdf,"LLMs are powerful AI models designed to understand and generate human language and images. ⁸ Transparency means that Audi informs its customers in a suitable manner regarding the use of their personal data. This includes, in particular, which personal data is collected and processed, what purposes underly processing of the data and whether the data is transferred to third parties. Transparency also includes informing customers what personal data about them is held by Audi. Naturally, personal data is subject to data secrecy. Audi collects, stores, transfers and uses personal data solely as permitted by legal provisions. As a matter of principle, personal data is only processed for the specific purposes for which it was originally collected and for the purpose defined by the customer. Self-determination means that Audi customers can always determine by themselves which data may be used for which purpose. Further, Audi follows the principle of data minimization: The company only processes the personal data that is necessary for a specific legitimate purpose. In addition, AUDI AG employs mechanisms for anonymizing or pseudonymizing personal data. And AUDI AG has also defined and con- tractually anchored requirements for the supply chain with regard to the imple- mentation of information security and an appropriate ISMS.",133,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 " +456,audi.pdf,"And AUDI AG has also defined and con- tractually anchored requirements for the supply chain with regard to the imple- mentation of information security and an appropriate ISMS. As a result, the company can rely on effective and verifiable control and monitoring mechanisms in the area of information security at all times. An equally essential aspect for Audi is to protect its vehicles against cybersecurity threats. AUDI AG has implemented an Automotive Security Management System (ASMS) and thus complies with all appli- cable regulations. The aim of the ASMS is to minimize cybersecurity risks to vehicles throughout their life cycle and to enable secure and comprehensibly documented software updates. The ASMS is divided into the Cybersecurity Management System (CSMS) and the Software Update Manage- ment System (SUMS). To ensure that personal data is protected, Audi has introduced a Data Protection Man- agement System (DPMS). Any processing of personal data is permanently recorded by the Data Protection Management Sys- tem and evaluated to ensure compliance with data protection law. If necessary, technical and organizational measures are implemented to protect personal data. Audi is continuously developing the DPMS.",133,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +457,audi.pdf,"If necessary, technical and organizational measures are implemented to protect personal data. Audi is continuously developing the DPMS. Elements of the DPMS include, for exam- ple, maintaining a directory of procedures, implementing internal reporting processes in the event of data protection violations, ensuring the rights of data subjects and establishing appropriate risk management processes. Legal certainty is a crucial factor: The com- pany fulfills the statutory requirements in terms of transparency, self-determination and data minimization, in particular when dealing with personal data.⁸ As in the pre- vious year, AUDI AG did not receive any val- id complaints in 2024 regarding infringe- ments of customer data protection.",133,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +458,audi.pdf,"134 Audi Report 2024 FinanceStrategy & Company ESG Appendix Audi is committed to improving overall road safety. That is why the company is investing in the development of new and improved vehicle safety features and working to high standards with the aim of protecting vehicle occupants and other road users. ¹ Source: WHO: Road-traffic-injuries. ² Experts define “active safety” as all the elements of a vehicle that can help avoid an accident. In addition to the suspension, tires, braking system and lighting technology, such elements include assistance functions that provide early warning of potential hazards, issue a warning in the event of acute danger and, if the driver does not react in time, auto- matically initiate emergency braking or an emergency steering maneuver. “Passive safety” involves elements that can reduce the risk of injury or eliminate it entirely, for example: seat belts, airbags, stable passenger compartments and energy-dissipating vehicle structures. ³ Assist systems can only assist the driver in the task of driving within the respective system limits. The driver is always responsible for driving the vehicle and is required to be attentive at all times.",134,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +459,audi.pdf,"³ Assist systems can only assist the driver in the task of driving within the respective system limits. The driver is always responsible for driving the vehicle and is required to be attentive at all times. M obility of people and goods is an essential element of a func- tioning economic system and shapes the prosperity and quality of life of all of us. At the same time, it harbors risks. When it comes to individual pas- senger transport, this includes risks that arise from or are influenced by the general traffic conditions, as well as those that are caused by the particular means of trans- port itself. According to the World Health Organi- zation (WHO), approximately 1.2 mil- lion people worldwide die in road traffic accidents and between 20 and 50 million people suffer non-fatal injuries each year.1 Vehicle safety can help protect the lives and physical integrity of road users and thus increase overall road safety. Car buy- ers also appreciate this. For many, safety standards are an important criterion when purchasing a vehicle. AUDI AG invests in the development of new and improved vehicle safety features and works to high standards with the aim of protecting vehicle occupants and other road users.",134,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +460,audi.pdf,"AUDI AG invests in the development of new and improved vehicle safety features and works to high standards with the aim of protecting vehicle occupants and other road users. The company’s active and passive safety technologies² can make a significant contribution to reducing the risk of accidents and injuries. In the field of active vehicle safety, this is to be achieved by the wide range and continuous new and further development of predictive assistance and safety systems3 at one Sustainable Development Goals The following SDGs are at the focus of this company commitment: Further information on Audi and the UN sustainability goals can be found on page 160. Vehicle safety Photo: AUDI AG Audi Q6 SUV e-tron: electric power consumption (combined): 19.8–16.0 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. GRI 416",134,"[Guess]: No +[Confidence]: 0.9","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +461,audi.pdf,"135 Audi Report 2024 FinanceStrategy & Company ESG Appendix end of the scale through to automated and autonomous driving4 at the other end. In the field of passive safety, around 220 specialists perform more than 800 elabo- rate crash tests and around 20,000 virtual accident simulations every year, while also working continuously on new and en- hanced safety functions. Increasing road safety for all road users Vehicle safety is a high priority at Audi: With the Audi model families present- ed in the year under review, including the Audi Q6 e-tron and the Audi A5, the company has introduced several new developments and advancements in the field of automotive safety systems.5 The second generation of digital OLED rear lights6 extends the range of functions offered by Audi and enables targeted com- munication with the immediate surround- ings: The proximity indication7 function already familiar from other Audi models is being extended in the Audi Q6 e-tron, among others, to include the communi- cation light. It warns other road users of accidents and breakdowns.",135,"[Guess]: No +[Confidence]: 1.0","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +462,audi.pdf,"It warns other road users of accidents and breakdowns. In addition to the regular taillight design, the communi- cation light in the digital OLED rear light displays a specific static taillight signature with integrated warning symbol in advance in critical driving or traffic situations. In other words, this assist system3 does not help the Audi driver directly, but warns road users traveling behind. In the interior, the dynamic interaction light (IAL)6 offers a range of communica- tion functions and thus supports interac- tion between the vehicle and its occu- pants. In addition, the second-generation augmented reality head-up display,6 which can be found in the Audi Q6 e-tron, among other models, allows the driver to see information such as navigation instructions or entertainment information more quick- ly. Both functions can reduce distractions and enable drivers to concentrate even better on the road. ³ Assist systems can only assist the driver in the task of driving within the respective system limits. The driver is always responsible for driving the vehicle and is required to be attentive at all times. ⁴ At the moment, piloted/automated driving is not legally approved for use on public roads in most countries.",135,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +463,audi.pdf,"The driver is always responsible for driving the vehicle and is required to be attentive at all times. ⁴ At the moment, piloted/automated driving is not legally approved for use on public roads in most countries. It should be noted in general that assist systems can only assist the driver in the task of driving within the respective system limits. The driver is always responsible for driving the vehicle and is required to be attentive at all times. ⁵ Some system and functions can be configured optionally and are available for an extra charge. ⁶ This function can be configured optionally and is available for an extra charge. ⁷ If a road user approaches a stationary Audi from behind to within less than two meters, all OLED segments activate to warn the driver. When the Audi starts up again, the original light signature automatically appears. The systems work only within system limits and assist with driving. The driver remains responsible for driving the vehicle and is required to be attentive at all times. With regard to driver assist systems,3 Audi offers a wide range of functions that can increase road safety for all road users by helping to prevent accidents or reduce acci- dent severity. Current Audi models such as the Audi Q6 e-tron and the Audi A5 can be optionally configured with adaptive cruise assist plus.",135,"[Guess]: No +[Confidence]: 1.00 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +464,audi.pdf,"Current Audi models such as the Audi Q6 e-tron and the Audi A5 can be optionally configured with adaptive cruise assist plus. Alongside various sensors, including radars and a front camera to continuously monitor the vehicle surround- ings, the assist system3 also uses high-res- olution map data and cloud- calculated swarm data from other vehicles. This data is generated anonymously by several hundred thousand vehicles from the Volkswagen Group. The vehicle fleet collects mapping material with specif- ic road environment features – such as boundary lines and traffic signs – and automatically transmits them to a cloud. From there, the data is customized and sent to the participating Audi vehicles that are currently driving on the corresponding sections. The large number of vehicles Active safety functions: driver assist systems of the future You can find more information at audi.com. Automatic emergency braking or emergency steering, early notification of potential hazards and warnings in the event of acute danger: digitalization, networking and new technologies are major drivers of active vehicle safety. Four experts from Technical Development talk about challenges, advancements and the reasons why and how all road users benefit. Photo: AUDI AG",135,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +465,audi.pdf,"136 Audi Report 2024 FinanceStrategy & Company ESG Appendix Systematic improvement of passive safety The investment in the new Vehicle Safety Center (AFZ) in Ingolstadt is paying off: Since November 2023, several models have already been or are being homologated here, including the Audi A5, the Audi Q6 e-tron and the Audi A6 e-tron. The AFZ is one of the most important Audi development facilities in the field of passive safety. Established teams of experts carry out one to two crash tests per day, five days a week. results in an ever-growing database, which the system uses to assist with acceleration, maintaining speeds and distances, and lane guidance, among other things. Awards from consumer protection organizations In the field of vehicle safety, Audi endeav- ors at all times to achieve the best possible endorsement from external consumer protection organizations in the various core markets (e.g., IIHS (USA), China NCAP, Euro NCAP).",136,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +466,audi.pdf,"The awards received are testament to the success achieved through decades of experience, research and development: In the Euro NCAP (European New Car Assessment Programme), almost all Audi models tested since 2009 – including all electric models – have received a five-star rating and thus the top score.8 This success story continued in the 2024 reporting year with the Audi Q6 e-tron and the Audi A5: Euro NCAP awarded both models its highest five-star rating. The vehicles were rated in the categories of adult occupant protection, child safety, vulnerable road user protection and standard safety assist systems.9 With a rating of 92 percent in the child safety category, the Audi Q6 e-tron scored the highest among all vehicles from the years 2023 and 2024 that were tested in this category.10 This result is also due to functions that go beyond legal and consumer protection requirements: The front passenger seat in the Audi Q6 e-tron automatically deactivates the front passenger airbag when a rear-facing child seat is used. Essentially, the car thinks along with the driver, helping to ensure the best possible protection for children of all sizes.",136,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +467,audi.pdf,"Essentially, the car thinks along with the driver, helping to ensure the best possible protection for children of all sizes. Audi also performed well on the American continent: In the 2024 reporting year, the Audi Q4 SUV e-tron11 and Audi Q4 Sportback e-tron12 were recognized in the “Midsize Luxury SUV” category, while the Audi Q7 SUV, Audi Q8 SUV e-tron13 and Audi Q8 Sportback e-tron14 received the IIHS TOP SAFETY PICK Award from the US Insurance Institute for Highway Safety (IIHS) in the “Large SUV” category. Aspects tested included crash performance, but also other categories such as pedestrian protection and lighting technology.15 Audi Accident Research Unit Audi supports the “Vision Zero” strategy of road safety organizations in many countries around the world to continually enhance the safety of Audi customers and other road users globally. It is a vision that is also pursued by the United Nations, the WHO, the EU and the German Road Safety Council (DVR).",136,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +468,audi.pdf,"It is a vision that is also pursued by the United Nations, the WHO, the EU and the German Road Safety Council (DVR). The primary goal is to eliminate all traffic fatalities and severe injuries.16 In addition to the new and fur- ther development of its active and passive vehicle safety systems, AUDI AG also contributes actively to accident research as part of an interdisciplinary research project in collaboration with the University Medical Center in Regensburg. The Audi Accident Research Unit (AARU) is committed to better understanding causes, circum- stances and consequences of accidents in order to develop proposals and measures to enhance road safety. Audi shares these findings with authorities and public orga- nizations and uses them to progressively develop new models. Internal regulations and management systems Audi places very strict quality demands on vehicle safety. It focuses primarily on customer requirements, on statutory and official stipulations and on the company’s own binding regulations and code of conduct. Every Audi model fulfills strict internal standards, including the Audi Code of Conduct, the Quality Manage- ment Statement of Principle and internal corporate policies on, among other things, Product Safety and Product Conformity and on Automotive Security.",136,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +469,audi.pdf,Photo: AUDI AG ⁸ Source: Euro NCAP: Euro NCAP | Latest Safety Ratings. ⁹ Source: Euro NCAP: Euro NCAP test results for the Audi Q6 e-tron and Audi A5. 10 Source: Euro NCAP: Euro NCAP | Latest Safety Ratings. 11 Audi Q4 e-tron: electric power consumption (combined): 19.2–16.1 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 12 Audi Q4 Sportback e-tron: electric power consumption (combined): 18.7–15.5 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 13 Audi Q8 SUV e-tron: electric power consumption (combined): 28.0–20.1 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 14 Audi Q8 Sportback e-tron: electric power consumption (combined): 27.3–19.5 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 15 Source: IIHS: 2024 TOP SAFETY PICKs. 16 Source: DVR: Vision Zero | German Road Safety Council.,136,"[Guess]: No +[Confidence]: 0.9","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +470,audi.pdf,15 Source: IIHS: 2024 TOP SAFETY PICKs. 16 Source: DVR: Vision Zero | German Road Safety Council. You can find more information in the Audi MediaCenter.,136,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +471,audi.pdf,"137 Audi Report 2024 FinanceStrategy & Company ESG Appendix In general, it can be said that all divisions formulate their quality requirements in goals, manage these based on key figures, are subject to independent controls and therefore contribute to the achievement of corporate goals. In relation to vehi- cle safety, this means that all product categories are reviewed in the context of quality controls regarding their impact on health and safety before they are delivered to customers. And Audi continues to keep an eye on its products even after they have been delivered – in line with the product monitoring obligations incumbent on a car manufacturer. In addition to interfaces to the Environ- mental Compliance Management System (ECMS), the Product Compliance Manage- ment System (PCMS) and the Committee for Product Safety (APS), the interface to the Compliance Management System (CMS) should also be highlighted, in par- ticular, in terms of continually optimizing the response to the effects of products and services on health and safety. The goals of interdisciplinary collaboration include exchanging information on process weaknesses, initiating improvement measures when necessary and therefore minimizing compliance risks related to product safety and product conformity.",137,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +472,audi.pdf,"The goals of interdisciplinary collaboration include exchanging information on process weaknesses, initiating improvement measures when necessary and therefore minimizing compliance risks related to product safety and product conformity. Audi has firmly established the PCMS in the company as a regulatory framework for guaranteeing product compliance and con- tinues to develop this permanently. Every employee plays their part in ensuring that product compliance risks are minimized, by observing regulations in specific corporate policies. Audi also monitors its products after they have been placed on the market. If this results in indications of potential deviations in the required product safety or conformity, the Committee for Product Safety (APS) sees to the requisite clari- fication of facts and initiates necessary measures, among other things, in coordi- nation with the relevant authorities where applicable. This includes any necessary product corrections.",137,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +473,audi.pdf,"This includes any necessary product corrections. Intuitively recognizable warning symbol on the communication light of the Audi Q6 e-tron.17 Photo: AUDI AG Key figures Vehicle safety Vehicle safety at AUDI AG18 Unit 2024 2023 2022 Percentage of relevant product and service categories where the impact on health and safety was checked with respect to opportunities for improvement Percent 3.7 – – Total number of regulatory violations and/or breaches of voluntary codes of conduct in connection with the impact of products and services on health and safety in the 2024 reporting period: Regulatory violations that resulted in a fine or a sanction Number 0 – – Regulatory violations that resulted in a warning Number 0 – – 17 Audi Q6 SUV e-tron: electric power consumption (combined): 19.8–16.0 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 18 Recording of data as of December 5, 2024.",137,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +474,audi.pdf,"FinanceStrategy & Company ESG Appendix 138 Audi Report 2024 C ustomers and investors are at- taching more and more impor- tance to corporate citizenship, i.e., whether a company donates money, materials or human resources to support projects with social or environmental goals. And employees, suppliers and society, too, have an interest in compa- nies helping to solve social challenges. As such, actively doing something for the common good is a key factor in building long-term relationships. It shows that the company is living up to its respon- sibilities and working to bring about positive change in society. Participating in voluntary social activities, for exam- ple, also makes employees feel that they are part of a community. If a company demonstrates little or no social commit - ment, on the other hand, this can have a negative impact on its reputation and expose it to additional financial risks. Corporate citizenship AUDI AG considers itself to be a responsible member of society. For this reason, the company supports social causes in a variety of ways, such as through education and training projects, social interaction or charitable and humanitarian aid.",138,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +475,audi.pdf,"For this reason, the company supports social causes in a variety of ways, such as through education and training projects, social interaction or charitable and humanitarian aid. Photo: AUDI AG Sustainable Development Goals The following SDGs are at the focus of this company commitment: Further information on Audi and the UN sustainability goals can be found on page 160.",138,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +476,audi.pdf,"FinanceStrategy & Company ESG Appendix 139 Audi Report 2024 Corporate citizenship has therefore been a major concern of AUDI AG for many years. The company’s activities in this area are based on the Audi Code of Conduct, the Support Guidelines for Corporate Citizenship and the Audi donation policy. Guiding principles of the Audi commitment To ensure that the company’s activities make a measurable contribution to society, all corporate citizenship initiatives at AUDI AG and its production sites¹ adhere to three guiding principles: Engage, Educate and Empower. Engage encompasses sponsorship, events and cooperation with non-profit organi- zations. Some notable examples from the year under review are the Audi Summer Concerts, a cultural event that attracted more than 20,000 visitors, and the com- pany’s support for regional amateur and professional sports. The latter included sponsoring the Heilbronn Trollinger Mar- athon and the Győri Audi ETO KC handball club in Hungary. In addition, AUDI AG organized various donation campaigns under the motto “Engage” during 2024.",139,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +477,audi.pdf,"In addition, AUDI AG organized various donation campaigns under the motto “Engage” during 2024. Apart from the traditional Christmas appeal, which saw the company top up the workforce donation of EUR 490,716 to a total of EUR 1 million, one project worthy of spe- cial mention during the year under review was the “Team spirit – cultural diversity” campaign. A total of EUR 100,000 went to 58 clubs and associations in the Ingolstadt and Neckarsulm regions that promote social integration and international under- standing and stand up against racism. The donations were presented to the recipients in July 2024 at the Festival of Cultures in Ingolstadt and at the Audi Forum Neckarsulm. After floods hit southern Germany in mid-2024, the company and its work- force donated over EUR 1 million to 56 non-profit organizations that had provided assistance during the summer floods or had suffered damage themselves in the area around the German production sites.² Employees donated a total of around EUR 285,000, which the company topped up to EUR 750,000. Educate unites all training and education programs that are offered or supported by Audi.",139,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +478,audi.pdf,"Educate unites all training and education programs that are offered or supported by Audi. A good example: Audi Hungaria staff can take part in a volunteer program and choose from five main focus areas, includ- ing #care4environment or #helptoimprove. The latter sees Audi employees helping out at events like children’s summer camps or tutoring students during the school year. Thanks to the commitment of these employees, the participating children benefit from long-term and sustainable improvements in their education. Apart from local projects like these, AUDI AG also works with a number of national and international universities to help shape progress in research and teaching – for example, by funding endowed professor- ships. Among other things, the company is currently funding a professorship at the Technical University of Ingolstadt on the topic of artificial intelligence in production. Empower refers to all measures where AUDI AG acts as an amplifier. Through various projects, the company supports multipliers such as employees, customers or other stakeholders. These groups are actively encouraged by Audi to advocate sustainable practices and lifestyles – for example through volunteering or social ac- tivities.",139,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +479,audi.pdf,"These groups are actively encouraged by Audi to advocate sustainable practices and lifestyles – for example through volunteering or social ac- tivities. AUDI AG is particularly keen to get young talent involved at an early stage: For example, to mark World Refugee Day 2024, Audi apprentices in Ingolstadt built two ref- ugee housing units designed by the UN that offer refugees in crisis areas emergency shelter. Anyone who was interested had the opportunity to take a look at the accommo- dation at Audi in Ingolstadt and learn more about how it works and about the living conditions of refugees in crisis areas.",139,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +480,audi.pdf,"Anyone who was interested had the opportunity to take a look at the accommo- dation at Audi in Ingolstadt and learn more about how it works and about the living conditions of refugees in crisis areas. In addition, apprentices working for the company were involved in the “Schanzen- Geber-Camp” during the year under Illustration: C3 Visual Lab Engage Educate Empower Guiding principles Fields of activity Corporate citizenship (site-based) Donations of goods and money to regional associations and aid organizations, as well as community sponsorships Financial donations to international aid organizations in crisis situations Support of the research of new technologies and environmental protection activities Educational projects Promotion of research and education, for example through the endowment of professorships Projects focused on environmental education, for example events like “Let’s talk Greenovation” Volunteer employee campaigns Promotion of global sustainability initiatives and social start-ups Promotion of green start-ups and granting stipends for participation in international conferences such as the One Young World Summit Global impact (cross-site) Audi Environmental Foundation (nonprofit) ¹ Audi production sites in Ingolstadt and Neckarsulm (Germany), Brussels (Belgium), Győr (Hungary), San José Chiapa (Mexico).",139,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +481,audi.pdf,² Production sites of AUDI AG in Ingolstadt and Neckarsulm (Germany).,139,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +482,audi.pdf,"FinanceStrategy & Company ESG Appendix 140 Audi Report 2024 review, a soccer vacation camp for children with and without special needs. This camp is regularly organized by FC Ingolstadt, a soccer club sponsored by Audi, along with the Audi Schanzer Football School, the St. Vinzenz Caritas Center, the City of Ingolstadt and Audi. The company also makes a point of continuously promoting the volunteer work of its employees. In 2024, nearly 1,000 employees at the Ger- man production sites² alone got involved in around 100 team projects benefiting social institutions in Ingolstadt and Neckarsulm. Audi not only provides the platform for employees to organize and participate in these activities, but also makes a donation for each initiative, which can then be used, for example, to purchase the necessary materials. The number of team activities in 2024 was double that of the previous year.",140,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +483,audi.pdf,"The number of team activities in 2024 was double that of the previous year. Fields of activity of the Audi commitment All projects relevant to corporate citizen- ship that are pursued by AUDI AG and its production sites¹ can be assigned to at least one of the three guiding principles of +100% of employees volunteered at social institutions in Ingolstadt and Neckarsulm compared with the previous year “Engage,” “Educate“ and “Empower.” Three fields of activity are relevant for implementing the projects. Corporate citizenship: Corporate citizen- ship bundles all activities at the AUDI AG production sites.¹ And because each site has its own specific needs, it also has its own corporate citizenship officers. These officers ensure that the help and support provided goes exactly where it is most urgently needed at the site in question. Global impact: This field of activity relates to activities outside of the Audi production sites.¹ One highlight worth mentioning here is the collaboration with the Social Team spirit campaign: Audi supports employees who engage in volunteer work. ¹ Audi production sites in Ingolstadt and Neckarsulm (Germany), Brussels (Belgium), Győr (Hungary), San José Chiapa (Mexico).",140,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +484,audi.pdf,"¹ Audi production sites in Ingolstadt and Neckarsulm (Germany), Brussels (Belgium), Győr (Hungary), San José Chiapa (Mexico). ² Production sites of AUDI AG in Ingolstadt and Neckarsulm (Germany). Photo: AUDI AG Impact Start-up Academy (SISTAC e. V.), which organizes learning partnerships between companies and social start-ups. In the context of such a partnership, Audi employees provided consulting services to eWAKA Mobility Limited, an African start- up that offers electric last-mile transport of goods and people in Kenya and Rwanda. The Audi team analyzed the start-up’s business model over an extended period of time and, based on their findings, developed a concept for a B2B platform that enables drivers and customers to connect with each other as quickly and easily as possible. The project came to a successful conclusion in 2024. Audi Environmental Foundation: The Audi Environmental Foundation was established as a charitable organization in 2009 to expand the company’s social and, in particular, environmental commitment. It sponsors research into new technolo- gies and scientific methods for a future worth living.",140,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +485,audi.pdf,"It sponsors research into new technolo- gies and scientific methods for a future worth living. In doing so, it opens up new avenues for acting sustainably and shows how technology, environmental protection and social commitment can complement",140,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +486,audi.pdf,"FinanceStrategy & Company ESG Appendix 141 Audi Report 2024 each other. One example of this is the partnership between the Brazilian NGO Litro de Luz, Audi do Brasil and the Audi Environmental Foundation. Litro de Luz supports people living in remote areas without electricity by providing them with access to solar lighting. The collaboration kicked off in 2022 with an initiative for Key figures Corporate citizenship Unit 2024 2023 2022 Employee donations³ EUR 1,237,156 953,815 968,386 Expenditure on corporate citizenship EUR million 40.0 46.8 50.5 ³ Includes AUDI AG Christmas donation, flood donation, “Last Cents” campaign and special donations. Photo: AUDI AG three settlements in the Amazon region. The installation of 30 solar poles and more than 150 solar lamps benefited over 600 people in the communities of Nova Canaã, Nova Jerusalém and Lindo Amanhecer. In 2023 and 2024, the initiative provided further villages with energy-efficient, sus- tainable lighting solutions – most recently Audi Environmental Foundation, Audi do Brasil and Litro de Luz bring solar lighting to remote villages in Brazil.",141,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +487,audi.pdf,"in the Lower Xingu indigenous reserve in the Brazilian state of Mato Grosso. Here, 20 indigenous communities, 140 families and over 600 residents were provided with solar lighting in 2024 alone. Working with locals and volunteers from Audi do Brasil, Litro de Luz was able to install 170 com- pact lighting and energy solutions.",141,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +488,audi.pdf,FinanceStrategy & Company ESG Appendix 142 Audi Report 2024 2 3 Governance Photo: AUDI AG Audi S6 Sportback e-tron: electric power consumption (combined): 16.7–15.7 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A.,142,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +489,audi.pdf,FinanceStrategy & Company ESG Appendix 143 Audi Report 2024 Photo: AUDI AG Content G Audi S6 Sportback e-tron: electric power consumption (combined): 16.7–15.7 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 144 Sustainable corporate governance 147 Compliance and integrity 151 Sustainable business development,143,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +490,audi.pdf,"FinanceStrategy & Company ESG Appendix 144 Audi Report 2024 Sustainable corporate governance Ecological, social and economic sustainability has a significant influence on the strategic alignment of Audi. The ESG (environmental, social and governance) criteria are a key foundation for decision-making. GRI 2-12, 2-13 Photo: AUDI AG A udi views sustainability as the creation of long-term value on the basis of responsible innova- tion, thereby minimizing negative impacts on the environment, society and the economy. To achieve this, the company applies ESG criteria to assess and manage its activities and performance in respect of environmental impact, social responsibility and corporate governance. Sustainable corporate governance is an integrated and holistic approach that translates this concept into suitable guid- ing principles. This is particularly import- ant, on the one hand, because statutory requirements are growing and becoming increasingly stringent, a process that is expected to continue in the future. On the other hand, stakeholders more frequently measure companies by their commit- ment to sustainability and the way they implement this.",144,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +491,audi.pdf,"On the other hand, stakeholders more frequently measure companies by their commit- ment to sustainability and the way they implement this. For example, consumers increasingly value sustainably produced goods when making their purchase deci- sions and implicitly expect companies to not only promise but also actively promote action on climate and environmental pro- tection. On the capital market as well, sus- tainability plays an important role along- side economic factors in decision-making by investors and analysts. Sustainable corporate governance therefore not only contributes to the future viability of society but also has positive effects for companies themselves. Com- panies that are managed sustainably are more likely to be successful and innovative Sustainable Development Goals The following SDGs are at the focus of this company commitment: Further information on Audi and the UN sustainability goals can be found on page 160. in the long term and are better able to manage their risks and operate efficiently. For Audi, a focus on sustainability criteria is crucial to the company’s future viability and offers the opportunity to position itself more strongly with respect to its custom- ers and the competition, thereby tapping into additional market potential.",144,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +492,audi.pdf,"FinanceStrategy & Company ESG Appendix 145 Audi R eport 2024 Advertising and communication principles Sustainable corporate governance at Audi also includes the area of market- ing. The Booklet of Policies, which consolidates all the company’s statements of principle in respect of sustainable and ethical corporate governance, also includes the advertising and communication principles. These reinforce the implementation of respectful communication by outlining the expectations AUDI AG has of its employees and business partners when providing advertis- ing and communication services for the company. The requirements set out in this guideline are consistent with the ethical standards and corporate values of AUDI AG. Further information can be found here. ¹ Audi r egards net carbon neutrality as a state in which, following the exhaustion of other possible measures aimed at reducing the still remaining CO₂ emissions caused by the products or activities of Audi and/or currently unavoidable CO₂ emissions within the scope of the supply chain, manufacturing and recycling of Audi vehicles, at least quantitative compensation is provided through voluntary and globally conducted compensation projects. Throughout the utilization phase of a vehicle, meaning from when a vehicle is deliv- ered to a customer, CO₂ emissions produced are not taken into account.",145,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +493,audi.pdf,"Throughout the utilization phase of a vehicle, meaning from when a vehicle is deliv- ered to a customer, CO₂ emissions produced are not taken into account. ² Audi pr oduction sites in Ingolstadt and Neckarsulm (Germany), Brussels (Belgium), Győr (Hungary), San José Chiapa (Mexico). ³ T o achieve net carbon neutrality,¹ Audi has defined a transformation pathway with clearly defined interim targets that depend heavily on market developments and the pace at which electric mobility is expanded. Volatile markets and the uncertain economic and political climate stand in the way of making reliable statements about interim targets up to the year 2050. relevant interest groups in the respective catchment area. To measure commitment to biodiversity at its production sites,² Audi has developed a biodiversity index together with the Volkswagen Group. This index covers around 50 parameters. This allows the effectiveness of measures to be assessed and progress to be recorded more easily. Further information can be found in the article entitled Biodiversity. Human rights: Compliance with human rights is an integral part of responsible corporate governance, not only within the company itself but also across the supply chain and in relation to business partners.",145,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 " +494,audi.pdf,"Human rights: Compliance with human rights is an integral part of responsible corporate governance, not only within the company itself but also across the supply chain and in relation to business partners. The company requires its suppliers and business partners to respect human rights and performs risk-based audits in this regard. The sustainability requirements of the Volkswagen Group are summarized in the Code of Conduct for Business Partners (CoCBP). Important aspects of this include prohibiting child labor and all forms of discrimination and ensuring occupational safety and fair remuneration. Further infor- mation can be found in the article entitled Responsibility in the supply chain. Diversity & inclusion: AUDI AG is commit- ted to ensuring that all employees – regardless of gender, origin or other personal characteristics – have the same opportunities to develop their talents and abilities. Appointing women to leadership positions is one of the main levers in rein- forcing equal opportunities. Anchoring sustainability within the company Sustainable corporate governance at Audi is based on statutory provisions and requirements as well as on clear, self- imposed guidelines and obligations – for example, internal policies on sustainability management.",145,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +495,audi.pdf,"For Audi, complying with ethical princi- ples as well as statutory requirements is a matter of course and the minimum it can do. The company has set itself the goal of integrating sustainability effectively and efficiently into its management structures and decision-making processes. Implementing sustainability The three ESG fields – environmental, social and governance – are considered extensively in corporate governance at the Audi Group. To ensure that the organiza- tion has the best possible impact on the environment, people and the economy, the Board of Management has created suitable structures and participates in the pursuit of the goals that are set. This is aimed at incorporating effective measures into the corporate strategy and integrating them into the company’s business operations. In this way, Audi not only complies with regulatory requirements but also focuses specifically on the following aspects: Efficiency: At Audi, vehicle efficiency has long been a key topic that customers can experience directly in the product. As an ex- ample, the new fully electric Audi Q6 e-tron and Audi A6 e-tron models on the Premium Platform Electric (PPE) set standards for efficiency, range and charging speed.",145,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +496,audi.pdf,"As an ex- ample, the new fully electric Audi Q6 e-tron and Audi A6 e-tron models on the Premium Platform Electric (PPE) set standards for efficiency, range and charging speed. The main contributors to this efficiency are the 800-volt architecture, an innovative powertrain and modern battery and charge management. At the same time, Audi launched a new generation of efficient internal combustion engines in the year under review. Its advanced MHEV plus mild hybrid technology improves response char- acteristics and, because it allows drivers to cover longer distances electrically, can help reduce CO 2 emissions from vehicle opera- tion. Further information can be found in the article Audi on the offensive. Circular economy/resource efficiency: Audi is working on many projects that foster the transition to the circular econ- omy, both within the company and by cus- tomers – for example, with guidelines for recycling-friendly product development, in- ternal targets for the proportion of second- ary material in future vehicle generations and Audi Genuine Exchange Parts, which represent a resource-friendly alternative to new parts.",145,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +497,audi.pdf,"In light of the forecast shortage of raw materials for primary and secondary materials, the company is committed not only to early, forward-looking planning but also to the efficient use of materials. Further information can be found in the article entitled Resource management and circular economy. Decarbonization: The company aims to reduce the CO 2 emissions throughout the life cycle of its models and along the entire value chain. This is to be achieved above all through the net carbon neutrality¹ of all production sites² as well as the electrifica- tion of the model portfolio. Audi aims to be net carbon-neutral¹ by 2050 at the latest.³ Biodiversity: Audi supports various initiatives to preserve biodiversity. One of these is the Alliance for Water Stewardship (AWS), which works toward the sustain- able use of local water resources. The AWS standard is an internationally applicable set of rules for companies and organiza- tions aiming to use water as efficiently as possible and with due consideration of all",145,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: Yes +[Confidence]: 0.8 " +498,audi.pdf,"FinanceStrategy & Company ESG Appendix 146 Audi Report 2024 Management remuneration is tied to the associated targets and their achievement. Regular discussions are held within the Board of Management as well as at the management levels regarding the degree of target achievement and corresponding measures. Further information can be found in the article entitled Corporate culture and equal opportunities. Managing sustainability Audi uses the Sustainability Steering Model (SSM) to manage sustainability topics on the basis of targets. The model fosters regular dialogue between the Sustainability department and specialist areas, serving as the basis for integrating sustainability matters in processes. The central instance of the SSM is the Sustainability Council, which is chaired by the Sustainability Strategy depart - ment. The Council organizes the flow of information, ensures interaction between different sustainability projects, assigns additional budget resources and prepares decisions for higher-level instances. Its other tasks include the systematic anal- ysis and anticipation of future regulatory developments – known as regulatory foresight. The SSM is being constantly refined, the effectiveness of the measures reviewed and processes adapted as required. In this way, Audi ensures that the measures taken not only have a positive impact in the short term, but also contribute to long-term sustainable development.",146,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +499,audi.pdf,"In this way, Audi ensures that the measures taken not only have a positive impact in the short term, but also contribute to long-term sustainable development. Collaboration with stakeholders It takes the collaboration of all stakehold- ers – within and outside the company – to make progress in the aforementioned focus topics. That is why Audi fosters good rela- tionships with its stakeholders, encouraging their active participation. To ensure effective stakeholder management, relevant internal and external stakeholders are identified and suitable sustainability dialogue formats arranged. Audi communicates the progress achieved, continuously and transparently. In this way, the company is able to consider the different interests of stakeholders in its decision-making and strategy processes. In 2024, Audi organized more than 35 stakeholder dialogue events attended by more than 21,000 people and participated in existing events such as the German gov- ernment initiative concerning the respect of human rights in the supply and value chains of the German automotive industry and the Greentech Festival in Berlin. The top issues addressed were: climate- neutral mobility and the transition to elec- tric mobility, sustainability in the supply chain and human rights and the circular economy and resource-friendly materials.",146,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +500,audi.pdf,"The top issues addressed were: climate- neutral mobility and the transition to elec- tric mobility, sustainability in the supply chain and human rights and the circular economy and resource-friendly materials. The company also contributes to initiatives aimed at achieving progress in environ- mental, economic and social issues. Unit 2024 2023 2021 Trust value of external stakeholders⁴ Percent 74 74 – Key figures Sustainable corporate governance ⁴ The value is calculated from the Trust & Like Score. Various stakeholders are asked to what extent they value and trust the company. In the reporting year, Audi reached a score of 71 percent for the German market among 10,502 people surveyed (international: 74 percent among 31,595 people surveyed). Special focus on human rights In the year under review, stakeholder dialogue focused on human rights. As a global company in the automotive industry, Audi closely examines the human rights risks and challenges at various stages of the supply chain with the goal of understanding and improving the human rights situation. In a moderated panel discussion, the company and various stakeholders discussed which mechanisms to involve stakeholder groups are already successful and where there are still bar- riers that prevent the sustained participation of potential persons of interest.",146,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +501,audi.pdf,"In a moderated panel discussion, the company and various stakeholders discussed which mechanisms to involve stakeholder groups are already successful and where there are still bar- riers that prevent the sustained participation of potential persons of interest. The event in Berlin in November 2024 brought the Human Rights Officer of AUDI AG together with representatives of the Federal Ministry for Economic Cooperation and Development, the UN Global Compact and non-governmental organiza- tion Germanwatch e.V. This dialogue demonstrates that Audi – as a responsible enterprise – is actively shaping sustainability topics. Progress is communicated transparently to stakeholders and the resulting feedback enables Audi to success- fully implement solutions in the context of specific projects, regions and persons of interest.",146,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +502,audi.pdf,"147 Audi Report 2024 FinanceStrategy & Company ESG Appendix Illustration: C3 Visual Lab C ompliance in a legal sense means observance of legal provisions, requirements of regulatory au- thorities, internal company policies and voluntary commitments by the company, its bodies and employees. The risks that can potentially arise as a result of legal and regulatory violations are varied and can damage a company from an economic, eco- logical and social perspective. For example, failure to comply with laws may result in human rights violations, or violations of en- vironmental regulations may increase the concentration of CO₂ in the atmosphere – both scenarios could result in reputation loss for companies, as well as legal and financial consequences, such as fines. If no specific rules are in place, companies are often faced with a dilemma. To stand firm in these situations, regardless of eco- nomic or social pressure, requires integrity – in other words, responsible and entrepre- neurial action geared toward values and principles that are recognized in society and agreed on within the company.",147,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +503,audi.pdf,"Compliance and integrity together are therefore an important foundation for companies and have a positive impact on the reputation of a brand, the confidence of customers and business partners, the well-being of employees and not least on sustained economic success. Compliance and integrity in the Audi Group mean combining entrepreneurial action with applicable rules and legislation as well as with social and company-specific values. To this end, Audi specifies binding compliance regulations and also places clear demands on its suppliers and busi- ness partners. Compliance and integrity are anchored in the business processes and are revised continually. Compliance and integrity At Audi, compliance and integrity are an integral part of all business processes and decisions. The focus here is on anti-corruption, human rights and fair competition. GRI 2-16, 205, 206 Sustainable Development Goals The following SDGs are at the focus of this company commitment: Further information on Audi and the UN sustainability goals can be found on page 160. Principles of cooperation The Audi Group commits its employees and business partners to comply with the binding Audi Code of Conduct (CoC) or the Volkswagen Code of Conduct for Business Partners (CoCBP).",147,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +504,audi.pdf,"Principles of cooperation The Audi Group commits its employees and business partners to comply with the binding Audi Code of Conduct (CoC) or the Volkswagen Code of Conduct for Business Partners (CoCBP). These documents set out the duties of care of companies and business partners, among other things. They also include the commitment to equal opportunities and equality, to respecting human rights and to compliance with environmental protection and occupational health and safety. On January 1, 2024, an updated version of the CoC was published, with additions covering topics such as artificial intelligence and a commitment to values-based leadership. In addition, the Volkswagen Social Charter applies in the Audi Group. This declaration on social rights, industrial relations and economic Learn from mistakes Act Decide Identify solutions Recognize signs social values Corporate and Personal values Understand the situation 6 1 2 34 5 Make decisions with integrity Make decisions with integrity Six steps to integrity in decision-making",147,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +505,audi.pdf,"148 Audi Report 2024 FinanceStrategy & Company ESG Appendix CMS 3 4 5 2 17 6 and human rights represents a further commitment to corporate responsibility. A shared sense of integrity In 2018, the Volkswagen Group launched the global integrity and compliance program Together4Integrity (T4I). The aim was to raise employee awareness of integrity and compliance across all Group companies. By 2024, the program had achieved its goals and was transitioned into the integrity and compliance activities of the departments and companies of the Volkswagen Group. Regular, dialogue-oriented communication measures and comprehensive training and participation formats help instill value- focused ways of thinking and acting in employees and managers. One example is the Integrity Summits, a series of events for managers that features external speakers to promote a change of perspective and dis- cussion of ethical issues. Monthly internal dialogue events on topics such as artificial intelligence, ESG, human rights, governance or business ethics pursue the same goal. Regular training sessions and workshops, for example on dealing with dilemma situ- ations or on ethical leadership, also impart important knowledge and competences for a modern success culture.",148,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +506,audi.pdf,"Regular training sessions and workshops, for example on dealing with dilemma situ- ations or on ethical leadership, also impart important knowledge and competences for a modern success culture. A network of around 100 integrity ambassadors works across hierarchies to promote integrity in the divisions, for example by offering opportunities for dialogue, mediating be- tween employees and managers or provid- ing advice on questions and uncertainties related to integrity. Regular online training sessions on integ- rity issues, some of them mandatory and some voluntary, create a common under- standing and the basis for ethically and legally sound behavior. During the report- ing period, 99.50 percent of the workforce completed the web-based training on the Audi Code of Conduct and 99.78 percent completed the training on anti-corruption and dealing with public officials. Control and management systems At Audi, corporate governance is under- pinned by extensive management systems and processes. In accordance with the provisions of company law, the Board of Management of AUDI AG has set up specific management systems: a Risk Management System (RMS) including a risk early warning system, a Quality Man- agement System (QMS) and a Compliance Management System (CMS).",148,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +507,audi.pdf,"All of these systems ensure that the company is able to identify and assess risks, comply with quality requirements and adhere strictly to laws and regulations. They are operation- alized through corporate and brand group policies, processes and work instructions. Among the management systems, the CMS plays a particularly important role in Compliance Management System effectively and sustainably implementing compliance and integrity within the Audi Group and thus meeting legal and ethical requirements. Since September 2024, Audi has been exploring options for combining the existing compliance management sys- tems. For this purpose, the company has established the Policies, Compliance and Integrity (PCI) committee. The PCI works across divisions to advance the develop- ment of the compliance and integrity man- agement systems and to ensure that these systems are appropriate and effective when used together. Another goal is to place an even greater focus on user benefits. Analysis of compliance risks Compliance risks are analyzed with the help of the Internal Compliance Risk Assessment (ICRA). This is a standard process of the Volkswagen Group for identifying, evaluat- ing and documenting compliance risks in the categories of corruption, money laun- dering and terrorism financing, as well as fraud and embezzlement.",148,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +508,audi.pdf,"Each Audi Group company participating in the ICRA was required to implement its own package of compliance measures by January 31, 2025. Every package of measures is structured to reflect the seven process steps of the CMS (see graphic). The individual packages com- prised up to 35 individual measures. The assessment is repeated every three years.",148,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +509,audi.pdf,"Every package of measures is structured to reflect the seven process steps of the CMS (see graphic). The individual packages com- prised up to 35 individual measures. The assessment is repeated every three years. In 2024, the Integrity, Compliance, Risk Management department at AUDI AG Illustration: C3 Visual Lab Compliance organization • Roles and responsibilities of the compliance and integrity functions • Structure of the compliance organi- zation within AUDI AG as well as at relevant subsidiaries 5 Compliance and integrity culture • Integrity management • Preparation/communication of the Code of Conduct • Promotion of a tone from the top and a tone from the middle 1 Compliance goals • Preventive advisory function as the Second Line 2 Compliance risks • Recording and evaluation of compliance risks in the company • Development and review of countermeasures 3 Compliance programs and processes • Risk prevention in compliance focal areas through target group-specific and needs-oriented consulting, communication and training measures 4 Compliance communication • Defined reporting lines to the Audi Board of Management, the Group Board of Management and the Group Chief Integrity & Compliance Officer • Risk-based compliance, communi- cation and training measures 6 Compliance monitoring/ improvement • Monitoring of compliance measures within the divisions and at subsidiaries • Continuous and lasting improvement of the CMS 7",148,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +510,audi.pdf,"149 Audi Report 2024 FinanceStrategy & Company ESG Appendix successfully passed an external audit. Within the framework of an independent, risk-based review, 15 measures from the ICRA Compliance Measure Set were used to assess whether the goals, requirements and standards of the Volkswagen Group are effectively met. The auditors confirmed that AUDI AG maintains a CMS that is ef - fectively anchored within the company and that it has a well-developed compliance culture. Audits of this kind are part of the Volkswagen Group’s regular monitoring and improvement process and a corporate governance tool. In addition, the Automated Compliance Risk Analysis (ACRA) serves to identify division-specific compliance risks within the Audi Group. It received a comprehen- sive update in the year under review to en- sure that it is fit for practical use in 2025. This analysis targets top management and, in addition to traditional compliance topics such as anti-corruption, outsourcing, human rights and business partner due diligence, has also covered new topics such as working hours (HR compliance) since 2024.",149,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +511,audi.pdf,"Far-reaching changes made during the reporting year, such as a modular structure that makes it easy to add new topics, are aimed at further increasing the efficiency and effectiveness of the ACRA and improving the identification, assess- ment and management of compliance risks. By standardizing the risk assessment, adequate risk mitigation measures can be planned in the departments using a risk- based approach. The process is accompa- nied by dialogue formats with the division coordinators for the topics of compliance and integrity. In addition to system queries, the data basis also includes inventory data and systemic anomalies from the compliance organization, such as feedback from train- ing courses or analyses of serious regula- tory violations. The ACRA is carried out every one to three years, depending on the risk and hazard potential. The compliance and integrity activities also include regular targeted communi- cation. Regular and ad-hoc reporting by the Chief Compliance Officer to the Board of Management and Audit Committee of the Supervisory Board of AUDI AG, to the Group Chief Integrity & Compliance Officer of the Volkswagen Group and, where need- ed, other management positions at Audi and Volkswagen ensures a continual flow and exchange of information.",149,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +512,audi.pdf,"This commu- nication includes the “Governance, Risk & Compliance” annual report and reporting on the Whistleblower System. Reports of potential violations The Whistleblower System is an indepen- dent and unbiased tool for reporting and receiving specific leads on potential mis- conduct by employees of the Audi Group. Potential violations of the CoCBP, including serious risks as well as human rights and environmental violations by direct and indirect suppliers, can be reported to the Audi Investigation Office – confidentially and, if required, anonymously. Reports can be submitted by email, via the online reporting channel and, since November 1, 2024, also by telephone voice message or via the “SpeakUp – Listen for a change” app – 24 hours a day, seven days a week and in over 65 languages. In addition, an ombudsperson is available as an external reporting point. The procedural principles of the Audi Group’s grievance mechanism specify, among other things, that reports of violations must be treated confidentially and that whistleblowers must be protected from discrimination and reprisals. Using artificial intelligence (AI) and data of any kind in a business environment presents great opportunities, but also risks.",149,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +513,audi.pdf,"Using artificial intelligence (AI) and data of any kind in a business environment presents great opportunities, but also risks. In its Statement of Principle on Artificial Intelligence, AUDI AG pledges to use AI, one of the key technologies of our time, responsibly. The company has set itself three guiding principles for trustworthy AI, which are based on the European Union’s “Ethics guidelines for trustworthy AI:” respect, security and transparency. With these principles in mind, Audi is working on a cross-divisional project aimed at developing a holistic data and AI strategy that will enable it to exploit the opportunities offered by the digital transformation while taking ethical and cultural aspects into account in the design of its IT systems and processes. One particular concern is to meet the new regulatory requirements. These include, for example, two pieces of legislation from the European Union: the EU AI Act¹ and the EU Data Act.² In the spotlight: uniform rules for AI and data access/use Qualified and experienced employees of the Audi Investigation Office review the information provided to determine whether potential regulatory violations have occurred. If so, appropriate action is taken. In 2024, AUDI AG received 907 reports of possible regulatory violations.",149,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +514,audi.pdf,"If so, appropriate action is taken. In 2024, AUDI AG received 907 reports of possible regulatory violations. This represents an increase compared with the previous year when there were 556 re- ported violations. In addition to reports of suspicious activity, the number of reports received also includes further concerns from customers and dealers covering a wide range of topics. Strict measures against corruption Internationally active companies like AUDI AG are continually exposed to corruption risks in their everyday business. Not only can the occurrence of such risks lead to significant financial losses, but also to reputation damage. Acting with integ- rity and engaging in fair competition are therefore a fundamental pillar of the long- term success of the Audi Group – beyond all country borders. Corruption and bribery therefore have no place at Audi. The company has firmly embedded these principles in the Audi Code of Conduct, which is binding for all employees, and in its guidelines on the avoidance of conflicts of interest and corruption. ¹ The EU AI Act is designed to create awareness among companies for the conscious, ethical use and implementation of AI applications. It calls for employees to receive appropriate training and for AI systems to be classified on the basis of four defined risk classes and handled according to their classification.",149,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +515,audi.pdf,"It calls for employees to receive appropriate training and for AI systems to be classified on the basis of four defined risk classes and handled according to their classification. For example, all data used to train an AI must be documented transparently, while AI-generated responses by chatbots must be marked accordingly. Source: Regulation - EU - 2024/1689 - EN - EUR-Lex (europa.eu) (Dec. 18, 2024). ² The EU Data Act focuses on the rights of customers and third parties. It gives customers the right to request a copy of all data generated by connected services in and around the vehicle, for example when charging at a wallbox. This also includes the customer’s right to forward this data to third parties, such as an insurance company. Source: Regulation - EU - 2023/2854 - EN - EUR-Lex (Dec. 18, 2024).",149,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +516,audi.pdf,"150 Audi Report 2024 FinanceStrategy & Company ESG Appendix The Compliance unit provides the specialist departments with extensive advice on all corruption-related topics – with digital support from the Audi guide, an IT tool that employees can use to evaluate gifts and benefits themselves. In addition, training measures also constitute part of the preventive avoidance of corruption. 99.78 percent of non-production employ- ees as well as the Board of Management of AUDI AG successfully completed the spe- cially designed web-based training (WBT) on anti-corruption and dealing with public officials in the period under review. A broad and continually evolving portfolio of target group-specific communication and training measures strengthens awareness in the Group of the significance of compliance and integrity as a success factor for re- sponsible corporate governance. Suspected cases of corruption are handled by the Audi Investigation Office in coordi- nation with the Internal Audit department; measures are systematically derived and implemented. In the year under review, one report of potential corruption was submitted. In the year under review, two investigations due to suspected corruption took place as one report had been submit- ted at the end of 2023.",150,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +517,audi.pdf,"In the year under review, two investigations due to suspected corruption took place as one report had been submit- ted at the end of 2023. The proper imple- mentation of measures is verified as part of on-site inspections and through external audits. There were no on-site inspections or audits due to suspected corruption in 2024. Furthermore, a total of 68 national and international majority participations were supported in the area of anti-corruption in the course of consultancy inquiries, the im- plementation of policies and the execution of training programs. Fundamentally, all those entities where the Audi Group holds Photo: AUDI AG Audi has made a clear commitment to responsible corporate governance. The company’s understanding of compliance and integrity is publicized on the Audi website, among other places. The multilingual content is regularly updated and accessible to all Audi employees and external stakeholders at all times. Compliance and Integrity at audi.com You can find more information at: audi.com. a majority interest or has management responsibility are included in the process. Another key topic in the area of compliance is antitrust law. Compliance with anti- trust regulations is vital to the company’s success.",150,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +518,audi.pdf,"a majority interest or has management responsibility are included in the process. Another key topic in the area of compliance is antitrust law. Compliance with anti- trust regulations is vital to the company’s success. The company therefore expressly requires its employees to observe antitrust law, as stated in the CoC and in internal company regulations. Training courses as well as specialized legal consultants of AUDI AG help employees to recognize situations relevant to antitrust law and to act in accordance with the rules.",150,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +519,audi.pdf,"151 Audi R eport 2024 FinanceStrategy & Company ESG Appendix Sustainable business development Resilient, robust and fit for the future: These are the qualities that help Audi ensure its success in the long-term. Sustainable Development Goals The following SDGs are at the focus of this company commitment: Further information on Audi and the UN sustainability goals can be found on page 160. Photo: AUDI AG T o stay successful in the market over the long term, companies need to keep transforming themselves. The foundation of sustainable business development for the Audi Group is a healthy economic performance: Stable profits and positive cash flows allow the company to finance the necessary investments and ensure its future viability. Among the guiding principles for sustainable business development are the 17 Sustainable Development Goals of the United Nations (UN). In an effort to combat climate change and achieve the two-degree goal, national govern- ments, industrial enterprises, research insti- tutions and non-governmental organizations (NGOs) are also working to transform the global economy.",151,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +520,audi.pdf,"For automotive companies, the trans- formation of mobility is of particular importance: Continuing urbanization, digitalization and, last but not least, the already tangible and anticipat- ed impacts of climate change are causing a shift in user needs and expectations. On top of this come existing and increasingly stringent laws on issues such as CO₂ emissions. The development and implementation of future-proof and sustain- able business models are firmly anchored in the strategic initiatives of the Audi Group (including in the Audi Agenda, the Common Corporate Policy, the AUDI AG Environmental and Energy Policy and internal policies on sustainability management), the management of the entire brand group and the corporate strategy of the Volkswagen Group. On the offensive with a strengthened product portfolio The key elements of the Audi business model are innovative vehicles and services that offer customers worldwide more sustainable mobility and deliver on the brand promise of “Vorsprung durch Technik.” During the year under review, a number of new Audi models gave customers the opportunity to experience what it feels like when a brand promise turns into a tangible reality.",151,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +521,audi.pdf,Audi A6 Avant e-tron: electric power consumption (combined): 17.5–14.4 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A.,151,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +522,audi.pdf,"152 Audi Report 2024 FinanceStrategy & Company ESG Appendix Photos: AUDI AG Audi on the offensive These models made their debut in 2024. Numerous new electric models In the upper midsize class, the new Audi A6 Sportback e-tron⁵ and the Audi A6 Avant e-tron⁶ demonstrate the versatility of the PPE: They are the first models with low-floor concept on this platform. Powerful, compact and efficient electric motors, coupled with a lithium-ion battery developed specially for the PPE as well as outstanding aerodynamics, give the cars a range of up to 756 kilometers.⁷ The Audi Q6 e-tron was launched as the first vehicle on the new platform for all-electric vehicles (Premium Platform Electric, PPE). It was followed later in the year by the Audi Q6 Sportback e-tron.¹ Following in 2025 is the Audi Q6 L e-tron² model, which was developed specifically for the Chinese market.",152,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +523,audi.pdf,"It was followed later in the year by the Audi Q6 Sportback e-tron.¹ Following in 2025 is the Audi Q6 L e-tron² model, which was developed specifically for the Chinese market. With the Audi Q6 e-tron models, the company wants to set new standards in the premi- um midsize SUV segment with respect to performance, range, charging, dynamic handling and design. Another innovation is the E³ 1.2 electronics architecture, which takes digitalization to a new level in Audi vehicles, for example through the new Audi Assistant³ with an integrated interface to ChatGPT.⁴ ¹ Audi Q6 Sportback e-tron: electric power consumption (combined): 18.9–15.6 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. ² This vehicle is manufactured locally by associated companies and available and sold exclusively in China. ³ Availability is dependent on vehicle model and model year. Part of Audi connect navigation & infotainment (IT3). Language availability is country-specific. For information on country and language availability, please contact an Audi Partner or visit the Audi configurator at www.audi.de (in German only).",152,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +524,audi.pdf,"Language availability is country-specific. For information on country and language availability, please contact an Audi Partner or visit the Audi configurator at www.audi.de (in German only). Further information on the Audi assistant at www.audi.de/technologie (in German only). ⁴ Part of Audi connect navigation & infotainment (IT3). Language availability is country-specific. For information on country and language availability, please contact an Audi Part- ner or visit the Audi configurator at www.audi.de (in German only). Further information on the Audi assistant at www.audi.de/technologie (in German only). ChatGPT is provided via Microsoft Azure® OpenAI Service. Microsoft, Azure and their logos are registered trademarks of Microsoft Corporation in the United States of America and/or other countries. The name “OpenAI” and the brand ChatGPT are the property of OpenAI. For technological reasons, the provision of incorrect information by AI systems cannot be completely ruled out. On matters relating to the vehicle, always consult the Owner’s Manual in case of doubt. ⁵ Audi A6 Sportback e-tron: electric power consumption (combined): 16.7–13.6 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A.",152,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +525,audi.pdf,⁵ Audi A6 Sportback e-tron: electric power consumption (combined): 16.7–13.6 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. ⁶ Audi A6 Avant e-tron: electric power consumption (combined): 17.5–14.4 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. ⁷ Range refers to the Audi A6 Sportback e-tron performance: electric power consumption (combined): 15.9–14.0 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A.,152,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +526,audi.pdf,153 Audi Report 2024 FinanceStrategy & Company ESG Appendix Photos: AUDI AG Electric model offensive 8 Audi Q4 35 e-tron: electric power consumption (combined): 19.2–17.0 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 9 Audi Q4 Sportback 35 e-tron: electric power consumption (combined): 18.7–16.4 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 10 Audi S e-tron GT: electric power consumption (combined): 19.7–18.0 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 11 Audi RS e-tron GT: electric power consumption (combined): 22.1–18.4 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 12 Audi RS e-tron GT performance: electric power consumption (combined): 20.8–18.7 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 13 The model illustrated is a prototype that is not available as a series-production vehicle.,153,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +527,audi.pdf,"13 The model illustrated is a prototype that is not available as a series-production vehicle. The Audi Q4 35 e-tron⁸ and Audi Q4 Sportback 35 e-tron,⁹ available since mid-2024, give customers easy access to premium electric mobility. These two well-equipped entry-level models increase the attractiveness of the product line even further. The Audi Q4 e-tron has already become the best-selling electric vehicle from Audi. The new Audi e-tron GT models are setting new performance standards. From now on, the model family will consist of three variants: the Audi S e-tron GT,¹⁰ the Audi RS e-tron GT¹¹ and the Audi RS e tron GT performance.¹² The Audi RS e-tron GT performance,¹² which was introduced in 2024, is the most powerful series-production vehicle available from Audi: Customers can enjoy an output of up to 680 kW (925 PS). China saw not only the debut of a spectacular show car in the form of the AUDI E concept,13 but also the first appearance of the new sister brand AUDI.",153,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +528,audi.pdf,"China saw not only the debut of a spectacular show car in the form of the AUDI E concept,13 but also the first appearance of the new sister brand AUDI. Developed in China to meet the needs of local customers, the brand and the car offer the best of both worlds – the unmistakable Audi DNA combined with innovations from China.",153,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +529,audi.pdf,"154 Audi Report 2024 FinanceStrategy & Company ESG Appendix Photos: AUDI AG Among the company’s plug-in hybrids, the Audi A3 Sportback TFSI e,16 with its all-electric range of up to 143 kilometers (WLTP), enables sections of the route to be covered with zero local emissions. A smart drive management system and a powerful high-voltage battery ensure efficient driving. Expansion of the plug-in hybrid range A powerful liquid-cooled lithium battery gives the plug-in hybrids Audi Q7 TFSI e quattro14 and Audi Q8 TFSI e quattro15 an electric range of up to 90 kilometers (WLTP). 14 Audi Q7 SUV 55 TFSI e quattro: fuel consumption (weighted combined): 1.4–1.2 l/100 km; electric power consumption (weighted combined): 29.1–27.8 kWh/100 km; CO₂ emissions (weighted combined): 33–28 g/km; CO₂ class (weighted combined): B; fuel consumption with empty battery (combined): 10.5–9.8 l/100 km; CO₂ class with empty battery: G.",154,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +530,audi.pdf,15 Audi Q8 SUV 55 TFSI e quattro: fuel consumption (weighted combined): 1.6–1.2 l/100 km; electric power consumption (weighted combined): 30.4–27.7 kWh/100 km; CO₂ emissions (weighted combined): 37–27 g/km; CO₂ class (weighted combined): B; fuel consumption with empty battery (combined): 10.9–8.9 l/100 km; CO₂ class with empty battery: G. 16 Audi A3 Sportback TFSI e: fuel consumption (weighted combined): 0.4–0.3 l/100 km; electric power consumption (weighted combined): 16.6–14.6 kWh/100 km; CO₂ emissions (weighted combined): 9–6 g/km; CO₂ class (weighted combined): B; fuel consumption with empty battery (combined): 5.4–4.9 l/100 km; CO₂ class with empty battery: D–C.,154,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +531,audi.pdf,"155 Audi Report 2024 FinanceStrategy & Company ESG Appendix New efficient combustion-engine models Another model to be launched on the new platform for combustion-engine vehicles (Premium Platform Combustion, PPC) in the year under review was the new Audi A5.18 Its improved mild hybrid technology enables drivers to cover some distances electrical- ly, for even greater efficiency. Another special feature is the optional quattro ultra all- wheel-drive system. With this quattro technology, the drive torque can be distributed flexibly to maximize efficiency while also providing all the advantages of all-wheel drive for enhanced driving safety and dynamic handling. The Audi A6 stands for the long and successful history of Audi in the full-size class. The new Audi A6 Avant19 celebrated its world premiere in March 2025. The Audi Q5 has ranked among the most popular B-segment SUVs in Germany and Europe for more than 15 years. In the year under review, Audi launched the third generation of this successful model with the new Audi Q5 SUV.17 It is the first SUV model on the PPC. 17 Audi Q5 SUV: fuel consumption (combined): 8.8–5.9 l/100 km; CO₂ emissions (combined): 200–148 g/km; CO₂ class: G–E.",155,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +532,audi.pdf,17 Audi Q5 SUV: fuel consumption (combined): 8.8–5.9 l/100 km; CO₂ emissions (combined): 200–148 g/km; CO₂ class: G–E. 18 Audi A5: fuel consumption (combined): 7.8–4.8 l/100 km; CO₂ emissions (combined): 178–125 g/km; CO₂ class: G–D. 19 Audi A6 Avant: fuel consumption (combined): 8.0–5.0 l/100 km; CO₂ emissions (combined): 181–130 g/km; CO₂ class: G–D. Photos: AUDI AG,155,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +533,audi.pdf,"156 Audi Report 2024 FinanceStrategy & Company ESG Appendix Audi battery expertise Launching forward-looking technologies and mastering key elements of automotive engineering – these are two factors that contribute to sustainable business development in the Audi Group. That is why the company is consistently expanding its core competences in the field of high-voltage batteries: For example, Audi operates the center of excellence for high-voltage batteries in Neckarsulm, where prototypes of new high-voltage battery modules are tested for various electric vehicles, and the battery testing center in Gaimersheim for designing and devel- oping battery cells. Audi also assembles batteries itself, with the Ingolstadt site currently putting together up to 1,000 high-voltage batteries a day, initially for the Audi Q6 e-tron series. The company is thus gaining important experience that it intends to use in the future to produce its own battery modules. Photo: AUDI AG Consistent implementation of the Audi BEV strategy The models presented during the year under review are milestones in the company’s electrification strategy: > Dynamic handling, aerodynamics, efficiency, digital customer experience, design and quality – these are the hallmarks that define every Audi model, regard- less of its drive system.",156,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +534,audi.pdf,"The company thus offers its customers attractive vehicles for each segment that all carry the Audi DNA. > Audi clearly committed to electric mobility at an early stage. In the year under review, the company already had 10 all-electric models in its portfolio, six of which were presented in 2024 alone. > Audi will expand its electric portfolio successively in the coming years. In the medium term, the company wants to offer an all-electric vehicle in all core segments. > A total of around 20 new models with different powertrain types are celebrating their market intro- duction in 2024 and 2025. Audi is thus positioning itself robustly and flexibly for the transition period from combustion engine to electric drive. > Audi subjects every model to a comprehensive life cycle assessment (LCA), which reveals the envi- ronmental impact of the models throughout their entire life cycle. The results are recorded in the decarbonization index20 (DCI), among other places. The DCI is a strategic indicator on the path to net carbon neutrality.21 It quantifies the average emis- sions of CO₂ and CO₂ equivalents22 over the entire life cycle of the Audi passenger car portfolio and is stat- ed in metric tons of CO₂ per vehicle.",156,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.8 " +535,audi.pdf,"The Audi Group intends to reduce the DCI to zero across the entire value chain by 205023 at the latest. Structural realignment to accelerate vehicle development The company revised its structures in the year under review in order increase the pace of innovation: > By establishing the “Innovation and Software- Defined Vehicle” (SDV) division in the year under review, under the leadership of Geoffrey Bouquot, AUDI AG is accelerating its transformation into a software-centric organization. Audi intends to continue the brand’s signature “Vorsprung durch 20 The internal decarbonization index (DCI) is a key performance indicator (KPI) with which the Volkswagen Group records and manages CO₂ emissions along the entire automotive value chain. It describes the average emissions (measured in CO₂ equivalents) over the entire life cycle of the Audi passenger car portfolio in the regions of Europe (EU 27, United Kingdom, Norway and Iceland), China (FBU, fully built up) and USA and is stated in metric tons of CO₂ equivalents per vehicle. The DCI includes the direct and indirect emissions that are produced at the individual production sites (Scope 1 and 2) as well as further direct and indirect emissions that occur over the life cycle of Audi vehicles (Scope 3).",156,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +536,audi.pdf,"The DCI includes the direct and indirect emissions that are produced at the individual production sites (Scope 1 and 2) as well as further direct and indirect emissions that occur over the life cycle of Audi vehicles (Scope 3). The utilization phase, as part of the life cycles of Audi vehicles, is calculated over 200,000 kilometers and with reference to legal requirements for fleet values in the sales regions. The CO₂ intensity of the charging current for electrified and partly electrified vehicles is also calculated on the basis of region-specific electricity mixes. The basis for calculating supply chain and recycling emissions is provided by verified vehicle life cycle assessments (according to standards ISO 14040 and ISO 14044, see life cycle assessments: Documents & Policies | audi.com). 21 Audi regards net carbon neutrality as a state in which, following the exhaustion of other possible measures aimed at reducing the still remaining CO₂ emissions caused by the products or activities of Audi and/or currently unavoidable CO₂ emissions within the scope of the supply chain, manufacturing and recycling of Audi vehicles, at least quantitative compensation is provided through voluntary and globally conducted compensation projects. Throughout the utilization phase of a vehicle, meaning from when a vehicle is delivered to a customer, CO₂ emissions produced are not taken into account.",156,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +537,audi.pdf,"Throughout the utilization phase of a vehicle, meaning from when a vehicle is delivered to a customer, CO₂ emissions produced are not taken into account. 22 CO₂ equivalents (CO₂e) are a unit of measurement used to standardize the climate impact of various greenhouse gases. Greenhouse gas emissions are converted into CO₂ equiva- lents and summarized. 23 To achieve net carbon neutrality, Audi has defined a transformation pathway with clearly defined interim targets that depend heavily on market developments and the pace at which electric mobility is expanded. Volatile markets and the uncertain economic and political climate stand in the way of making reliable statements about interim targets up to the year 2050.",156,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.9 " +538,audi.pdf,"157 Audi Report 2024 FinanceStrategy & Company ESG Appendix New mobility concepts In the coming years, the Volkswagen Group wants to com- bine all of its brands’ mobility services on one platform. The aim is that automated driving together with new mobility concepts will enable the Group’s transition to a leading provider of new mobility in the future. A vehicle fleet that can realize the different services from car rental to car subscription through to ride pooling should ensure high availability, capacity utilization and profitability. Audi has the different needs of customers firmly in its sights and is currently focusing on developing new mobility concepts in two areas: vehicle on demand (VOD) and mobility on demand (MOD). MOD focuses on getting the commuter where they want to go without driving there themselves, for example, in a taxi. In the long term, fully automated driving is to enable this new mobility concept. In contrast, VOD involves actually driving the vehicle. In this scenario, customers are given access to a vehicle for a limited period of time. Audi is already offering such ser- vices in certain regions with its “Audi on demand rent” and “Audi on demand subscribe” solutions and showing how Mobility as a Service works in practice.",157,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +539,audi.pdf,"Audi is already offering such ser- vices in certain regions with its “Audi on demand rent” and “Audi on demand subscribe” solutions and showing how Mobility as a Service works in practice. The special thing about this is that “Audi on demand rent” allows custom- ers to find the perfect Audi for every occasion. They can choose the vehicle model, the interior equipment and the color to suit their needs. “Audi on demand rent” and “Audi on demand subscribe” complement the classic leasing of vehicles by offering a more flexible alternative. In addition to the “Audi on demand” services that have already been successfully launched in Germany, a further mobility service was piloted in 2024. The mobility platform Giravolta allows customers of a car dealership to view the dealership’s available fleet and book vehicles at short notice. Some other use cases trialled in this pilot project include employees booking vehicles from their employer’s fleet as well as special use cases in local tourism. Further pilot projects along these lines are planned for 2025. Technik” – a slogan largely inspired by technologies such as quattro drive and Aluminum Space Frame – and carry it forward into the digital age.",157,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +540,audi.pdf,"Further pilot projects along these lines are planned for 2025. Technik” – a slogan largely inspired by technologies such as quattro drive and Aluminum Space Frame – and carry it forward into the digital age. Bouquot also took over as head of Technical Development on January 1, 2025, as the division was merged with his previous area of responsibility. > In the year under review, Audi consistently aligned its Technical Development division with the princi- ples of a matrix organization. As a result, product line management now bears more entrepreneurial responsibility, while the lines of responsibility within Technical Development are more clearly structured. The intention behind this is to speed up the process of bringing models to market maturity, while also supporting the paradigm shift toward software- centric vehicle development. Strengthening innovation management worldwide The Audi Group has teams at its international hubs that continuously monitor mobility trends and analyze new technologies. Synergies are created by Group-wide collaboration across all Volkswagen Group brands.",157,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +541,audi.pdf,"Strengthening innovation management worldwide The Audi Group has teams at its international hubs that continuously monitor mobility trends and analyze new technologies. Synergies are created by Group-wide collaboration across all Volkswagen Group brands. Within Germany, innovation is spearheaded by the innovation departments of Audi Development in Neckarsulm and Ingolstadt, with support from Audi Business Innovation GmbH (Munich) as well as from A4nXT Venture Clienting and P-Lab for product innovations (both in Ingolstadt). In China, this topic is being driven forward by the R&D Innovation Hub and the Audi Innovation Research Office (AIR), in the USA by the ADAS Hub (Advanced Driving Assistance System), among others, and in Israel by the Konnect Innovation Hub (Volkswagen Group). Audi launched a number of new projects and initiatives in the year under review aimed at identifying future technologies, developing them to market maturity and reliably integrating them into its vehicles. > New formats such as the “New Innovation” initia- tive and the “Minds & Makers Innovation Partner Day” give internal innovators the opportunity to engage directly with established global companies and start-ups that have been selected for their expertise in cutting-edge technologies.",157,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +542,audi.pdf,"The aim here is for Audi to familiarize itself with its partners’ innovations and to enable quick decisions on future collaborations. > Audi works together with Volkswagen Group Innova- tion, the Group-wide incubator for innovative vehicle and mobility solutions. Among other activities, the unit operates innovation hubs all over the world and is responsible for the cross-brand open innovation platform, which is designed to bring together the ideas and partnerships of all Group brands for the purpose of leveraging synergies between the brands in the early development phase. > Audi plays an active role in AI Lab, including on its Supervisory Board. Established within the Volkswagen Group, this new company identifies new product ideas related to artificial intelligence (AI) across the globe. AI Lab then develops promis- ing concepts into early prototypes, if necessary Photo: AUDI AG",157,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +543,audi.pdf,"158 Audi Report 2024 FinanceStrategy & Company ESG Appendix Photo: AUDI AG together with external partners. These prototypes are submitted to the Group brands so they can review them and reach a decision. Strong partnerships for worldwide success Audi and the Volkswagen Group rely on strong partner- ships around the world to quickly and cost-effectively develop smart, connected vehicles that are precisely tailored to market-specific customer requirements: > Jointly creating the electronics architecture and soft- ware for next-generation software-defined vehicles (SDVs): that is the goal of the joint venture Rivian and Volkswagen Group Technologies. This joint venture combines Rivian’s market-leading software and electri- cal hardware technology with the Volkswagen Group’s global reach and technological leadership in vehicle platforms. Innovations emerging from the joint ven- ture are also to be used in Audi models in future. > Mobileye is a global provider of autonomous driving technologies based in Jerusalem. The Volkswagen Group and Mobileye have been collaborating on advanced driver assist systems for some time. In the year under review, an agreement was reached that Mobileye will also provide technologies for advanced level 2 driving functions (partly automated driving) for the Volkswagen Group in the future.",158,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +544,audi.pdf,"In the year under review, an agreement was reached that Mobileye will also provide technologies for advanced level 2 driving functions (partly automated driving) for the Volkswagen Group in the future. In addition, Volkswagen is working with Mobileye on level 3 functions (highly automated driving). Within the Audi Group, the Audi, Bentley and Lamborghini brands are planning to incorporate new premium-oriented driving functions based on this technology into their model portfolio. > Carizon, a joint venture between Cariad – that is, the software unit of the Volkswagen Group – and Horizon Robotics, was established to rapidly develop automated driving solutions tailored to the Chinese market. Horizon Robotics is one of the leading providers of software solutions for advanced driver assist systems and autonomous driving in China. The joint venture between Cariad and Thundersoft – Carthunder – is also strengthening the Volkswagen Group’s regional development expertise under the motto “in China for China.” Carthunder was set up to quickly and efficiently produce customized software products and solutions for the Chinese market, of- fering customers a smarter and more intuitive digital mobility experience. Both joint ventures will also benefit Audi models destined for the Chinese market.",158,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +545,audi.pdf,"Both joint ventures will also benefit Audi models destined for the Chinese market. > In the year under review, the company introduced the new sister brand AUDI – without the Four Rings logo, but written in capital letters. This new brand, under which Audi will work with its local partner SAIC, is intended to cement the company’s pio- neering role in the Chinese market. AUDI aims to appeal explicitly to young, tech-savvy customers in China. The first show car, the AUDI E concept,24 was unveiled in November 2024, with production sched- uled to start in 2025. 24 The model mentioned is a prototype that is not available as a series-production vehicle. AI in vehicle production Artificial intelligence (AI) is a key technology for Audi – in particular with a view to the future of production. By using AI, the company aims to boost the speed, sustainability and quality of its manufacturing operations. The first AI application was used in series production at Audi as early as 2018, and in the year under review the company identified more than 100 AI use cases at various maturity levels.",158,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +546,audi.pdf,"The first AI application was used in series production at Audi as early as 2018, and in the year under review the company identified more than 100 AI use cases at various maturity levels. At pres- ent, the company is focusing on the use of AI in areas such as production process monitoring, system control and quality control, as well as on generative AI.",158,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +547,audi.pdf,Photo: AUDI AG Appendix 160 // Sustainable Development Goals (SDGs) of the United Nations 161 // Consumption and emission figures 163 // Auditor’s report 165 // GRI index,159,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +548,audi.pdf,"160 Audi Report 2024 FinanceStrategy & Company ESG Appendix Audi is working on a robust infrastructure, promoting sustainable industrialization and supporting innovations. Audi meets the challenges of urbanization with intelligent, sustainable and urban mobility concepts. With production as environmen- tally friendly as possible, Audi also fosters sustainable consumption. Re- source and energy efficiency are two key elements in this context. Audi produces and develops products with the goal of enabling climate-friendly individual mobility. Audi is committed to long-term, wide-scale economic growth, full and produc- tive employment and humane work for everyone. Audi links its sustainability activities to the Sustainable Development Goals of the United Nations. In doing so, it places the spotlight on the five goals where the biggest difference can be made. A At the 2015 United Nations (UN) General Assembly, 193 states adopted Agenda 2030, which lays out 17 goals – the “Sustainable Development Goals” (SDGs). SDGs combine the social, environmental and economic dimensions of sustainable development.",160,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +549,audi.pdf,"SDGs combine the social, environmental and economic dimensions of sustainable development. The underlying rationale is that social progress is not possible in the long run if the limits of the planet are not respected. In this context, Agenda 2030 explicitly states that the focus should be on the weakest and most vulnerable so as to leave no one behind. Agenda 2030 stands for a global understanding of prosperity that extends beyond the constricting concept of per capita income. At issue is reshaping economies toward more sustainable development, for example through responsible consumption and produc- tion patterns and clean as well as affordable energy. For instance, it is becoming clear that climate policy, sustainable development and the eradication of poverty are inseparably connected. The SDGs provide an essen- tial compass for the entire international community. Audi aligns its activities with the Sustainable Devel- opment Goals. Internal workshops were organized to determine which five sustainability goals the company can influence the most (see below). For this purpose, the topics and results of the Audi materiality analysis were compared with the SDGs. Of course, Audi endeav- ors to make a comprehensive contribution.",160,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +550,audi.pdf,"For this purpose, the topics and results of the Audi materiality analysis were compared with the SDGs. Of course, Audi endeav- ors to make a comprehensive contribution. The compa- ny therefore also works toward SDGs other than the five central ones listed below, and the Audi Report contains examples of this for each material topic. Audi is a participant of the United Nations Global Compact (UN GC), the world’s largest initiative for sustainable corporate governance. This membership in one of the most active platforms for dialogue among industry, civil society and politics is an important pillar of stakeholder management. Audi reports on its progress with regard to the implementation of the 10 principles of the Global Compact and its activities to promote sustainable development as part of its annual Communication on Progress, which is available on the website of the UN Global Compact. AUDI AG | UN Global Compact Audi supports the UN Global Compact SDGs at a glance All Agenda 2030 goals can only be achieved if nobody is left behind: 17 Sustainable Development Goals (SDGs) of the United Nations",160,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +551,audi.pdf,"FinanceStrategy & Company ESG Appendix 161 Audi Report 2024 Fuel consumption, combined (l/100 km) CO₂ emissions, combined (g/km) CO₂ class Models WLTP specification WLTP specification Audi A1 allstreet 6.2–5.7 141–130 E–D Audi A1 Sportback 6.5–5.2 149–118 E–D Audi Q2 8.3–4.8 189–125 G–D Audi A3 Sedan 9.4–4.4 213–115 G–D Audi A3 Sportback 9.5–4.4 217–117 G–D Audi A3 allstreet 6.2–5.0 141–123 E–D Audi Q3 9.1–5.4 207–140 G–E Audi Q3 Sportback 9.0–5.4 205–142 G–E Audi A5 Sedan 7.8–4.8 178–125 G–D Audi A5 Avant 8.0–4.9 182–128 G–D Audi Q5 SUV 8.8–5.",161,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +552,audi.pdf,"8–4.8 178–125 G–D Audi A5 Avant 8.0–4.9 182–128 G–D Audi Q5 SUV 8.8–5.9 200–148 G–E Audi Q5 Sportback 8.8–5.9 199–148 G–E Audi A6 Avant 12.7–5.3 289–138 G–E Audi A6 Sedan 9.1–5.1 206–133 G–D Audi A7 Sportback 12.6–5.3 285–138 G–E Audi Q7 SUV 12.7–7.8 289–204 G Audi A8 12.3–7.0 278–183 G Audi Q8 SUV 13.6–8.0 310–210 G Bentley Bentayga 13 296 G Lamborghini Urus 14.1 320 G Lamborghini Huracán 14.9–13.9 338–328 G All data apply to features of the German market. As of: February 12, 2025 Consumption and emission figures",161,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +553,audi.pdf,"FinanceStrategy & Company ESG Appendix 162 Audi Report 2024 Consumption and emission figures Models Fuel consumption weighted, combined (l/100 km) Electric power consumption weighted, combined (kWh/100 km) CO₂ emissions weighted, combined (g/km) CO₂ class weighted, combined Fuel consumption with empty battery, combined (l/100 km) CO₂ class with empty battery Plug-in hybrid vehicles WLTP specification WLTP specification WLTP specification WLTP specification Audi A3 allstreet TFSI e 0.4–0.3 16.0–15.0 8–7 B 5.3–5.0 D–C Audi A3 Sportback TFSI e 0.4–0.3 16.6–14.6 9–6 B 5.4–4.9 D–C Audi A6 Avant TFSI e 1.7–1.4 21.5–20.0 37–31 B 8.3–7.7 G Audi A6 Sedan TFSI e 1.6–1.1 21.",162,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +554,audi.pdf,7–1.4 21.5–20.0 37–31 B 8.3–7.7 G Audi A6 Sedan TFSI e 1.6–1.1 21.1–18.7 36–24 B 8.2–7.1 G–F Audi A7 Sportback TFSI e 1.6–1.1 21.3–18.9 37–25 B 8.2–7.2 G–F Audi Q7 SUV TFSI e 1.4–1.2 29.1–27.8 33–28 B 10.5–9.8 G Audi A8 TFSI e 2.2–1.7 23.8–21.9 49–39 B 9.5–8.7 G Audi Q8 SUV TFSI e 1.6–1.2 30.4–27.7 37–27 B 10.9–9.8 G Bentley Flying Spur 1.4 29.3 33 B 10.7 G Bentley Continental GT 1.3 27.7 29 B 10.,162,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 " +555,audi.pdf,"8 G Bentley Flying Spur 1.4 29.3 33 B 10.7 G Bentley Continental GT 1.3 27.7 29 B 10.3 G Bentley Continental GT Convertible 1.4 27.9 31 B 10.6 G Lamborghini Revuelto 11.9 10.1 276 G 17.8 G Lamborghini Urus SE 2.1 39.5 51.3 B 12.9 G Models Electric power consumption, combined (kWh/100 km) CO₂ emissions, combined (g/km) CO₂ class Fully electric vehicles WLTP specification WLTP specification Audi Q4 e-tron 19.2–16.1 0 A Audi Q4 Sportback e-tron 18.7–15.5 0 A Audi S e-tron GT 19.7–18.0 0 A Audi RS e-tron GT 21.1–18.4 0 A Audi A6 Avant e-tron 17.5–14.4 0 A Audi A6 Sportback e-tron 16.7–13.",162,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +556,audi.pdf,1–18.4 0 A Audi A6 Avant e-tron 17.5–14.4 0 A Audi A6 Sportback e-tron 16.7–13.6 0 A Audi Q6 SUV e-tron 19.8–16.0 0 A Audi Q6 Sportback e-tron 18.9–15.6 0 A,162,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +557,audi.pdf,"163 Audi Report 2023 FinanceStrategy & Company ESG Appendix Auditor’s report The assurance engagement performed by EY relates exclusively to the German version of the combined annual and sustainability report of AUDI AG. The following text is a translation of the original German independent assurance report. To AUDI Aktiengesellschaft, Ingolstadt We have performed a limited assurance engagement on selected sustainability key figures for the year 2024 in the “Audi Report | Combined annual and sustainability report” of the AUDI Aktien- gesellschaft, Ingolstadt, (hereinafter the “Company”), which have been marked with the symbol “ ” in the report for the period from 1st of January to 31st of December 2024 (hereinafter the “report”). Our engagement exclusively refers to the disclosures marked with the “ ” symbol in the German PDF version of the report. Not subject to our assurance engagement are other references to disclosures made outside the report as well as further prior-year disclosures. Responsibilities of the executive directors The executive directors of the Company are responsible for the preparation of the report, which includes the selected key figures, with reference to the “GRI Sustainability Reporting Standards” (hereinafter “applicable criteria”).",163,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +558,audi.pdf,"These responsibilities of the Company’s executive directors include the selection and application of appropriate methods for the preparation of the report and making assumptions and estimates about individual non-financial disclosures that are reasonable in the circumstances. Furthermore, the executive directors are responsible for such internal control as the execu- tive directors consider necessary to enable the preparation of a report that is free from material misstatement, whether due to fraud (manipulation of the report) or error. Independence and quality assurance of the auditor’s firm We have complied with the German professional requirements on independence as well as other professional conduct requirements. Our audit firm applies the national legal requirements and professional pronouncements – in particular the BS WP/vBP [“Berufssatzung für Wirtschaftsprüfer/vereidigte Buchprüfer”: Professional Charter for German Public Accountants/German Sworn Auditors] in the exercise of their Profession and the IDW Standard on Quality Management issued by the Institute of Public Auditors in Germany (IDW): Requirements for Quality Management in the Audit Firm (IDW QMS 1 (09.2022)) and accordingly main- tains a comprehensive quality management system that includes documented policies and procedures with regard to compliance with professional ethical requirements, professional standards as well as relevant statutory and other legal requirements.",163,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +559,audi.pdf,"Responsibilities of the auditor Our responsibility is to express a conclusion with limited assurance on the key figures and disclosures that are marked with the symbol “ ” in the report based on our assurance engagement. We conducted our assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised): “Assurance Engagements other than Audits or Reviews of Historical Financial Information” issued by the IAASB. This standard requires that we plan and perform the assurance engagement to obtain limited assurance about whether any matters have come to our attention that cause us to believe that the selected key figures and disclosures that are marked with the symbol “ ” in the report of the Company are not prepared, in all material respects, in accordance with the GRI criteria. In a limited assurance engagement, the procedures performed are less extensive than in a reasonable assurance engagement, and accordingly, a substantially lower level of assurance is obtained. The selection of the assurance procedures is subject to the professional judgment of the auditor. GRI 2–5",163,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +560,audi.pdf,"164 Audi Report 2023 FinanceStrategy & Company ESG Appendix In the course of our assurance engagement we have, among other things, performed the following assurance procedures and other activities: > Gain an understanding of the structure of the sustainability organization and stakeholder engagement, > Inquiries of the executive directors and relevant employees involved in the preparation of the report about the preparation process, about the internal controls related to this process as well as disclosures in the report, >   Identification and assessment of risks of material misstatement  in the report, >   Analytical procedures on selected key figures and disclosures  marked with “ ” in the report, > Critical review of the draft report for plausibility and consistency >   Assessment of the presentation of the selected key figures  marked with the symbol “ ” in the report.",164,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +561,audi.pdf,"Assurance conclusion Based on the assurance procedures performed and the evidence obtained, nothing has come to our attention that causes us to believe that the selected key figures and disclosures that are  marked with the symbol “ ” in the report from 1st of January to 31st of December 2024 are not prepared, in all material respects, in accordance with the applicable criteria. Restriction of use We draw attention to the fact that the assurance engagement was conducted for the Company’s purposes and that the report is intended solely to inform the Company about the result of the assurance engagement. As a result, it may not be suitable for another purpose than the aforementioned. Accordingly, the report is not intended to be used by third parties for making (financial)  decisions based on it. Our responsibility is to the Company alone. We do not accept any responsibility to third parties. Our assurance conclusion is not modified in this respect.",164,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +562,audi.pdf,"Our responsibility is to the Company alone. We do not accept any responsibility to third parties. Our assurance conclusion is not modified in this respect.  General Engagement Terms and Liability The enclosed “General Engagement Terms for Wirtschafts­ prüferinnen, Wirtschaftsprüfer and Wirtschaftsprüfungsgesell­ schaften [German Public Auditors and Public Audit Firms]” as issued by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany] on 01 January 2024 are applicable to this engagement and also govern our relations with third parties in the context of this engagement (ey­idw­aab­en­2024.pdf).   In addition, please refer to the liability provisions contained there in no. 9 and to the exclusion of liability towards third parties. We accept no responsibility, liability or other obligations towards third parties unless we have concluded a written agreement to the contrary with the respective third party or liability cannot effectively be precluded.",164,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 " +563,audi.pdf,"We accept no responsibility, liability or other obligations towards third parties unless we have concluded a written agreement to the contrary with the respective third party or liability cannot effectively be precluded.  We make express reference to the fact that we will not update the report to reflect events or circumstances arising after it was  issued, unless required to do so by law. It is the sole responsibility of anyone taking note of the summarized result of our work contained in this report to decide whether and in what way this information is useful or suitable for their purposes and to supplement, verify or update it by means of their own review procedures. Stuttgart, 17 March 2025 EY GmbH & Co. KG Wirtschaftsprüfungsgesellschaft Hinderer Rodriguez Wirtschaftsprüfer Wirtschaftsprüferin [German Public Auditor] [German Public Auditor]",164,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 " +564,audi.pdf,"FinanceStrategy & Company ESG Appendix 165 Audi Report 2024 GRI index The Audi Group reported on the period from January 1, 2024, to December 31, 2024, in accordance with the GRI Standards. The information in this report was chosen on the basis of the materiality analysis performed in 2024. For the Content Index – Essentials Service, GRI Services reviewed that the GRI index has been presented in a way consistent with the requirements for reporting in accordance with the GRI Standards, and that the information in the index is clearly presented and accessible to the stakeholders. The German version of the Audi Report was used for this service.",165,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +565,audi.pdf,"FinanceStrategy & Company ESG Appendix 166 Audi R eport 2024 GRI 2: General Disclosures 2021 Disclosure Page Comments/omissions 1. The organization and its reporting practices Disclosure 2-1 Organizational details 6 Disclosure 2-2 Entities included in the organization’s sustainability reporting 3 Disclosure 2-3 Reporting period, frequency and contact point 3, 180 Disclosure 2-4 Restatements of information 3 Disclosure 2-5 External assurance 3, 163 2. Activities and workers Disclosure 2-6 Activities, value chain and other business relationships 6 Disclosure 2-7 Employees 113 Information unavailable/incomplete: 2-7 b) Information by region is not available. These figures are not relevant for control purposes and are therefore not collected. Disclosure 2-8 Workers who are not employees Information unavailable/incomplete: Workers who are not employees only play a subordinate role at Audi. Key figures relating to workers who are not employees are therefore not relevant for control purposes and are not available. Universal Standards GRI 1: Foundation 2021",166,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +566,audi.pdf,FinanceStrategy & Company ESG Appendix 167 Audi R eport 2024 GRI 2: General Disclosures 2021 Disclosure Page Comments/omissions 3. Governance Disclosure 2-9 Governance structure and composition Company Management | audi.com Methods and Practices of the Board of Management and Supervisory Board | audi.com Disclosure 2-10 Nomination and selection of the highest governance body Methods and Practices of the Board of Management and Supervisory Board | audi.com Disclosure 2-11 Chair of the highest governance body The Chairman of the Supervisory Board of AUDI AG is a Member of the Board of Management of Volkswagen AG. He does not hold a management position at AUDI AG. Disclosure 2-12 Role of the highest governance body in overseeing the management of impacts 144 Disclosure 2-13 Delegation of responsibility for managing impacts 144 Disclosure 2-14 Role of the highest gover- nance body in sustainability reporting The Audi Board of Management approves and bears overall responsibility for the Audi Report.,167,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +567,audi.pdf,Disclosure 2-15 Conflicts of interest Methods and Practices of the Board of Management and Supervisory Board | audi.com Disclosure 2-16 Communication of critical concerns 147 Disclosure 2-17 Collective knowledge of the highest governance body Methods and Practices of the Board of Management and Supervisory Board | audi.com Disclosure 2-18 Evaluation of the performance of the highest governance body Remuneration of the Board of Management and Supervisory Board | audi.com Disclosure 2-19 Remuneration policies Remuneration of the Board of Management and Supervisory Board | audi.com Disclosure 2-20 Process to determine remuneration Remuneration of the Board of Management and Supervisory Board | audi.com Disclosure 2-21 Annual total compensation ratio Information unavailable/incomplete: A separate remuneration report is not published at Audi Group level by reason of an exemption by Volkswagen AG.,167,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +568,audi.pdf,"FinanceStrategy & Company ESG Appendix 168 Audi Report 2024 GRI 2: General Disclosures 2021 Disclosure Page Comments/omissions 4. Strategy, policies and practices Disclosure 2-22 Statement on sustainable development strategy 2, 5, 10, 23 144 Sustainability | audi.com Disclosure 2-23 Policy commitments 147 Compliance and integrity | audi.com Disclosure 2-24 Embedding policy commitments 147 Compliance and integrity | audi.com Disclosure 2-25 Processes to remediate negative impacts 147, 125 Compliance and integrity | audi.com Disclosure 2-26 Mechanisms for seeking advice and raising concerns 147 Compliance and integrity | audi.com For all important corporate decisions, statements from Com- pliance & Integrity as well as from other experts – for example from the Sustainability, Corporate Strategy and Legal Service departments – are a fixed component of the submissions to the Board of Management. Disclosure 2-27 Compliance with laws and regulations Confidentiality constraints: Any known cases of actual and suspected compliance viola- tions are isolated cases without a systemic cause. The total number of cases is not reported for confidentiality reasons (to protect business secrets).",168,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +569,audi.pdf,"The total number of cases is not reported for confidentiality reasons (to protect business secrets). Disclosure 2-28 Membership associations Audi participates in a variety of volunteering initiatives, associations and community work groups to discuss ecological, economic and social issues with stakeholders. The main memberships in Germany can be found in the Lobbying Register for the Representation of Special Interests vis-à vis the German Bundestag and the Federal Government. Additionally, the company is active in major international multistakeholder initiatives with the focus on sustainability, such as the Aluminium Stewardship Initiative or the Global Battery Alliance. 5. Stakeholder engagement Disclosure 2-29 Approach to stakeholder engagement 61 Stakeholder Management | audi.com Disclosure 2-30 Collective bargaining agreements The proportion of AUDI AG employees to whom collective bargaining agreements apply is 93.8 percent. (Calculation of the key figure was changed in 2024.) The working and employment conditions of employees of AUDI AG who are not subject to collective bargaining agreements are determined based on the collective bargaining agreements that apply to other employees.",168,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +570,audi.pdf,"FinanceStrategy & Company ESG Appendix 169 Audi Report 2024 GRI 3: Material Topics 2021 Disclosure Page Comments/omissions Disclosure 3-1 Process to determine material topics 61 Stakeholder Management | audi.com Disclosure 3-2 List of material topics 64 Climate change and energy efficiency, reduction in environmental pollution (air pollution, substances of very high concern, microplastics), water stewardship, biodiversity, resource management and circular economy, fair working conditions and modern working forms, occupational health and safety (occupational health and safety – own workforce), corporate culture and equal opportunities (equal treatment and opportunities for all – own workforce), responsibility in the supply chain (social standards and human rights in the supply chain), responsible digitalization, vehicle safety, corporate citizenship (social commitment), sustainable corporate governance, compliance and integrity, sustainable business development.",169,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +571,audi.pdf,"Topic-specific disclosures Disclosure Page Comments/omissions Environmental Climate change and energy efficiency GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 68 GRI 302: Energy 2016 Disclosure 302-1 Energy consumption within the organization 68 Information unavailable/incomplete: 302-1 f) The process of collecting key figures including definition of scope is anchored in the Volkswagen standard 98000 (see Environmental Management at Audi | audi.com) and does not provide for extrapolation at overall site level. 302-1 g) The process of selecting relevant emissions and the emission factors used are anchored in Volkswagen standard 98000, as is the entire key figure collection process (see Environmental Management at Audi | audi.com). Generally, Audi uses the real emission factors of the energy suppliers. If this is not possible, calculations are made on the basis of the VDA’s standard factors. Disclosure 302-2 Energy consumption outside of the organization Information unavailable/incomplete: The information is not currently available and we are working toward making it available in the coming reporting periods.",169,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +572,audi.pdf,Disclosure 302-2 Energy consumption outside of the organization Information unavailable/incomplete: The information is not currently available and we are working toward making it available in the coming reporting periods. Disclosure 302-3 Energy intensity 68 Disclosure 302-4 Reduction of energy consumption 68 Disclosure 302-5 Reductions in energy requirements of products and services 68 Information unavailable/incomplete: The information for the key figures from 302-5 b) and c) is not currently available and we are working toward making it available in the coming reporting periods.,169,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +573,audi.pdf,FinanceStrategy & Company ESG Appendix 170 Audi Report 2024 GRI 305: Emissions 2016 Disclosure 305-1 Direct (Scope 1) GHG emissions 68 Disclosure 305-2 Energy indirect (Scope 2) GHG emissions 68 Disclosure 305-3 Other indirect (Scope 3) GHG emissions Decarbonization | audi.com Information unavailable/incomplete: Some of the information (305-3 c bis g) is not currently available and we are working toward making it available in the coming reporting periods. Disclosure 305-4 GHG emissions intensity 68 Disclosure 305-5 Reduction of GHG emissions 68 Information unavailable/incomplete: Some of the information (305-5 c und 305-5 e) is not currently available and we are working toward making it available in the coming reporting periods. Disclosure 305-6 Emissions of ozone- depleting substances (ODS) Information unavailable/incomplete: The information is not currently available and we are working toward making it available in the coming reporting periods.,170,"[Guess]: Yes +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +574,audi.pdf,"Disclosure 305-6 Emissions of ozone- depleting substances (ODS) Information unavailable/incomplete: The information is not currently available and we are working toward making it available in the coming reporting periods. Reduction in environmental pollution GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 81 GRI 305: Emissions 2016 Disclosure 305-7 Nitrogen oxides (NOx), sulfur oxides (SOx) and other significant air emissions 81 Information unavailable/incomplete: Some of the information (305-7 c) is not currently available and we are working toward making it available in the coming reporting periods. Topic-specific disclosures Disclosure Page Comments/omissions Environmental Climate change and energy efficiency",170,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +575,audi.pdf,"FinanceStrategy & Company ESG Appendix 171 Audi Report 2024 Water stewardship GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 85 GRI 303: Water and Effluents 2018 Disclosure 303-1 Interactions with water as a shared resource 85 Disclosure 303-2 Management of water discharge-related impacts 85 Disclosure 303-3 Water withdrawal 85 Information unavailable/incomplete: A breakdown of total water withdrawal from each of the sources indicated in Disclosures 303-3 a) and 303-3 b) and types indicated in Disclosure 303-3 c) is not possible at present. Disclosure 303-4 Water discharge 85 303-4 a) Information is not available for ii. & iv. 303-4 c) All production sites are weighted according to the water stress present in the region. Necessary water manage- ment measures are derived from the assessment. 303-4 d) As with the entire process for collecting key figures, the process for identifying the relevant wastewater load and wastewater limits is anchored in the Volkswagen standard 98000 (see Environmental Management at Audi | audi.com). Owing to the size of the Group, Audi sites are subject to differ- ent legislation.",171,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +576,audi.pdf,"Owing to the size of the Group, Audi sites are subject to differ- ent legislation. Some incidents are dealt with at a local level. There is no Group data available on incidents at present for this reason. Disclosure 303-5 Water consumption 85 Information unavailable/incomplete: 303-5 b) & c) The information is not currently available and we are working toward making it available in the coming reporting periods. Topic-specific disclosures Disclosure Page Comments/omissions Environmental",171,"[Guess]: No +[Confidence]: 0.95 0","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +577,audi.pdf,"FinanceStrategy & Company ESG Appendix 172 Audi Report 2024 Biodiversity GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 92 GRI 304: Biodiversity 2016 Disclosure 304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas 92 Disclosure 304-2 Significant impacts of activities, products and services on biodiversity Audi endeavors to minimize the impacts of its business opera- tions and plants on biodiversity by implementing numerous biodiversity measures that go beyond the legal requirements and by preferring brownfield over greenfield projects whenever possible. Brownfield projects involve repurposing or redesign- ing previously developed land, while a greenfield project in- volves the construction of a new building on land not previous- ly developed. Impacts in terms of the introduction of invasive species, pests and pathogens, loss of biodiversity or changes to ecological processes that go beyond natural variations are not known and are estimated to be low. Disclosure 304-3 Habitats protected or restored 92 Topic-specific disclosures Disclosure Page Comments/omissions Environmental",172,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +578,audi.pdf,"FinanceStrategy & Company ESG Appendix 173 Audi Report 2024 GRI 306: Waste 2020 Disclosure 306-1 Waste generation and significant waste-related impacts 97 The Mission:Zero environmental program comprises a number of additional measures to reduce and avoid waste. Any waste that remains unavoidable is disposed of properly and in strict compliance with the legal requirements applicable at the site in question. The disposal method of the waste is documented. Waste data is recorded in the ABIS system at German sites and in similar systems at international sites, and is reported to the relevant authorities. All waste is disposed of by specialist waste management companies in order to reduce the impact of the waste generated at Audi. These specialist companies are audited and assessed by employees of the Audi environmental protection departments. Audi is not aware of any significant negative waste-related impacts during the reporting period.",173,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +579,audi.pdf,These specialist companies are audited and assessed by employees of the Audi environmental protection departments. Audi is not aware of any significant negative waste-related impacts during the reporting period. Disclosure 306-2 Management of significant waste-related impacts 97 Disclosure 306-3 Waste generated 97 Disclosure 306-4 Waste diverted from disposal 97 Disclosure 306-5 Waste directed to disposal 97 Topic-specific disclosures Disclosure Page Comments/omissions Environmental Resource management and circular economy GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 97 GRI 301: Materials 2016 Disclosure 301-1 Materials used by weight or volume 97 The materials used are calculated based on the production figures of AUDI AG in 2024 and current disassembly studies for selected models in the various product lines. No further information for 2024 is available. It is currently not possible to break down the total weight into renewable and non- renewable materials. Use of renewable materials is to be continuously expanded in the future. Disclosure 301-2 Recycled input materials used Information unavailable/incomplete: The percentage of recycled input materials is currently not calculated for all models in the product portfolio.,173,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +580,audi.pdf,"Disclosure 301-2 Recycled input materials used Information unavailable/incomplete: The percentage of recycled input materials is currently not calculated for all models in the product portfolio. Audi plans to continuously increase the proportion of recycled input materi- als. Selected pilot projects, for example MaterialLoop, analyze the feasibility for potential use in series production. Disclosure 301-3 Reclaimed products and their packaging materials Information unavailable/incomplete: Information is currently not available in the required level of detail.",173,"[Guess]: No +[Confidence]: 1.0 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +581,audi.pdf,"FinanceStrategy & Company ESG Appendix 174 Audi Report 2024 Fair working conditions and modern working forms GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 110 GRI 401: Employment 2016 Disclosure 401-1 New employee hires and employee turnover 110 Information unavailable/incomplete: The key figures are currently not calculated by age group, gender and region. These are not relevant for control purposes. Disclosure 401-2 Benefits provided to full- time employees that are not provided to temporary or part-time employees 110 Disclosure 401-3 Parental leave 110 Information unavailable/incomplete: In general, all employees of AUDI AG are entitled to parental leave in accordance with the legal regulations. These key figures are not relevant for control purposes and are therefore not collected.",174,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +582,audi.pdf,These key figures are not relevant for control purposes and are therefore not collected. GRI 402: Labor/Management Relations 2016 Disclosure 402-1 Minimum notice periods regarding operational changes 110 GRI 404: Training and Education 2016 Disclosure 404-1 Average hours of training per year per employee 110 Disclosure 404-2 Programs for upgrading employee skills and transition assistance programs 110 Disclosure 404-3 Percentage of employees receiving regular performance and career development reviews 110 Topic-specific disclosures Disclosure Page Comments/omissions Social,174,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +583,audi.pdf,"FinanceStrategy & Company ESG Appendix 175 Audi Report 2024 Occupational health and safety GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 116 GRI 403: Occupational Health and Safety 2018 Disclosure 403-1 Occupational health and safety management system 116 Disclosure 403-2 Hazard identification, risk assessment and incident investigation 116 Disclosure 403-3 Occupational health services 116 Disclosure 403-4 Worker participation, consultation and communication on occupational health and safety 116 Disclosure 403-5 Worker training on occupational health and safety 116 Disclosure 403-6 Promotion of worker health 116 Disclosure 403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships 116 Disclosure 403-8 Workers covered by an occupational health and safety management system 116 Disclosure 403-9 Work-related injuries 116 Information unavailable/incomplete: Information is currently not available in the required level of detail. Disclosure 403-10 Work-related ill health Legal prohibitions: For reasons of data privacy, we cannot publish any key figures related to work-related ill health. Topic-specific disclosures Disclosure Page Comments/omissions Social",175,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +584,audi.pdf,"FinanceStrategy & Company ESG Appendix 176 Audi Report 2024 Corporate culture and equal opportunities GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 119 GRI 405: Diversity and Equal Opportunity 2016 Disclosure 405-1 Diversity of governance bodies and employees 119 Disclosure 405-2 Ratio of basic salary and remuneration of women to men 119 Through collective bargaining agreements involving the unions and management, AUDI AG undertakes to ensure that part- time and full-time employees receive equitable and fair pay; the activity alone determines remuneration. GRI 406: Non-discrimination 2016 Disclosure 406-1 Incidents of discrimination and corrective actions taken 119 Confidentiality constraints: 406-1 iii, 406-1 iv: Details are not published for confidentiality reasons. Responsibility in the supply chain GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 125 GRI 204: Procurement Practices 2016 Disclosure 204-1 Proportion of spending on local suppliers 125 Audi is an internationally operating company and maintained production facilities in 13 different countries around the world during the reporting period.",176,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +585,audi.pdf,"Services and products are pro- cured on the basis of a global supplier base, with a focus on resource-optimized procurement. The term “major operations” is used to refer to sites in Europe and North America; associated companies in China are not included in this analysis. The term “local” refers to the entire region in which the respective operation is located. Under these assumptions, the volume of products and services pro- cured locally by major operations accounted for 61.1 percent of the total Audi procurement volume in the year under review. Of that figure, Europe accounted for 52.2 percent (Germany: 35.3 percent) and North America for 8.9 percent. GRI 308: Supplier Environmental Assessment 2016 Disclosure 308-1 New suppliers that were screened using environmental criteria 125 Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken 125 Topic-specific disclosures Disclosure Page Comments/omissions Social",176,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +586,audi.pdf,FinanceStrategy & Company ESG Appendix 177 Audi Report 2024 GRI 414: Supplier Social Assessment 2016 Disclosure 414-1 New suppliers that were screened using social criteria 125 Disclosure 414-2 Negative social impacts in the supply chain and actions taken 125 Responsible digitalization GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 130 GRI 418: Customer Privacy 2016 Disclosure 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data 130 Vehicle safety GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 134 GRI 416: Customer Health and Safety 2016 Disclosure 416-1 Assessment of the health and safety impacts of product and service categories 134 Disclosure 416-2 Incidents of non-compliance concerning the health and safety impacts of products and services 134 Confidentiality constraints: 416-2 iii: The total number of cases is not reported for confidentiality reasons.,177,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +587,audi.pdf,Corporate citizenship GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 138 Topic-specific disclosures Disclosure Page Comments/omissions Social,177,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +588,audi.pdf,"FinanceStrategy & Company ESG Appendix 178 Audi Report 2024 Governance Sustainable corporate governance GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 144 GRI 207: Tax 2019 Disclosure 207-1 Approach to tax As a Group with international operations, Audi is aware of its social responsibility to comply with tax regulations (tax compliance) and regards it as its duty to be a responsible and reliable taxpayer (tax governance). It is of the utmost importance for the company to duly fulfill its tax obligations worldwide and minimize tax risks while safeguarding its shareholders’ interests. AUDI AG therefore regards tax governance and tax compliance as important tasks and integrates them comprehensively into its risk management processes and systems. In order to deal with tax risks in a responsible manner, an internal Tax Compliance Management System has been introduced throughout the Group. Transactions between Group companies are carried out in accordance with the arm’s length principle so as to comply with the applicable OECD guidelines for multinational companies. Inappropriate legal arrangements are to be avoided; this applies in particular to aggressive tax planning.",178,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +589,audi.pdf,"Inappropriate legal arrangements are to be avoided; this applies in particular to aggressive tax planning. Further information on the company’s approach to tax (based on GRI 207: Tax 2019) is available at audi.com Disclosure 207-2 Tax governance, control and risk management audi.com Disclosure 207-3 Stakeholder engagement and management of concerns related to tax audi.com Disclosure 207-4 Country-by-country reporting audi.com Compliance and integrity GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 147 GRI 205: Anti-corruption 2016 Disclosure 205-1 Operations assessed for risks related to corruption 147 Disclosure 205-2 Communication and training about anti- corruption policies and procedures 147 The key figures are not broken down by region for the information on the governance body, as it is located in Germany. Topic-specific disclosures Disclosure Page Comments/omissions",178,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +590,audi.pdf,"FinanceStrategy & Company ESG Appendix 179 Audi R eport 2024 Disclosure 205-3 Confirmed incidents of corruption and actions taken 147 GRI 206: Anti-competitive Behavior 2016 Disclosure 206-1 Legal actions for anti- competitive behavior, antitrust and monopoly practices Confidentiality constraints: Any cases of actual and suspected violations of antitrust law are isolated cases. The total number of cases is not reported for confidentiality reasons. GRI 415: Public Policy 2016 Disclosure 415-1 Political contributions Donations to political parties are not permitted in line with the funding criteria set out in the AUDI AG “Support Guidelines for Corporate Citizenship.” Further information can be found at: Support Guidelines for Corporate Citizenship | audi.com Sustainable business development GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 151 GRI 201: Economic Performance 2016 Disclosure 201-1 Direct economic value generated and distributed 32 Disclosure 201-2 Financial implications for the organization and other risks and opportunities due to climate change 56 Disclosure 201-4 Financial assistance received from government Audi Fact Pack Topic-specific disclosures Disclosure Page Comments/omissions Governance",179,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +591,audi.pdf,"Publication details AUDI AG Financial Communication/ Analytics, Investor Relations I/FU-5 Auto-Union-Straße 1 85045 Ingolstadt Germany Email: ir@audi.de audi.com/investor-relations LinkedIn: linkedin.com/company/audi-ag Concept & layout: C3 Creative Code & Content GmbH Berlin Read how AUDI AG lives sustainability in practice, background information on the Audi Agenda and further details about products and services at audi.com. Photo: AUDI AG",180,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +0,nestle.pdf,Refresh the World. Make a Difference. 2022 BUSINESS & SUSTAINABILITY REPORT,1,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +1,nestle.pdf,"2THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CONTENTS CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY SUSTAINABLE AGRICULTURE 47 We build loved brands that bring joy to our consumers’ lives with beverage choices for all occasions, tastes and lifestyles. Our growth strategy is grounded in our core values and commitment to social and environmental responsibility. CHAIRMAN & CEO MESSAGE 3 BOARD OF DIRECTORS 5 EXECUTIVE SUMMARY 6 OUR COMPANY 12 At a Glance 13 How We Operate 14 Innovation 15 Financial Highlights 17 Governance & Management 18 Priority Topics 21 Stakeholder Engagement & Partnerships 22 PORTFOLIO: BEVERAGES FOR ALL 31 WATER LEADERSHIP 24 PACKAGING: WORLD WITHOUT WASTE 36 PEOPLE & COMMUNITIES 51 CLIMATE 43 ABOUT THIS REPORT 69 DATA APPENDIX 70 Financial and Portfolio Data 71 Packaging 76 Water 77 Greenhouse Gas Emissions & Waste 78 Workplace,",2,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +2,nestle.pdf,"Safety & Giving Back 80 Human Rights & Agriculture 83 Definitions of Priority Topics 84 Assurance Statements 86 REPORTING FRAMEWORKS & SDGs 87 Human Rights 52 Safety & Health 55 Diversity, Equity & Inclusion 56 Giving Back to Our Communities 60 Economic Empowerment 62 OPERATIONS HIGHLIGHTS 63 Asia Pacific 64 Europe, Middle East & Africa 65 Latin America 66 North America 67 Global Ventures/Bottling Investments Group 68 SCOPE OF THIS REPORT This 2022 Business & Sustainability Report is The Coca-Cola Company’s fifth report to integrate overall business and sustainability performance, data and context, reflecting our continued journey toward driving sustainable business practices into our core strategy. Except as otherwise noted, this report covers the 2022 performance of The Coca-Cola Company and the Coca-Cola system (our company and our bottling partners), as applicable.",2,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +3,nestle.pdf,"Except as otherwise noted, this report covers the 2022 performance of The Coca-Cola Company and the Coca-Cola system (our company and our bottling partners), as applicable. As used in this report, the terms “material,” “materiality,” “immaterial,” “substantive,” “significant” and other similar terminology are not used, or intended to be construed, as they have been defined by or construed in accordance with the securities laws or any other laws of the United States or any other jurisdiction or as they are used in the context of financial statements and financial reporting. For detailed information on the scope of this report, please see About This Report on page 69.",2,"[Guess]: No +[Confidence]: 0.9 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +4,nestle.pdf,"3THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY CHAIRMAN & CEO MESSAGE The Coca-Cola Company’s purpose is to refresh the world and make a difference. We have remained true to that purpose for 137 years, and I am as encouraged today about the future of our business as I have ever been. Our strategy is clear. It’s centered around people— our consumers and employees—and driving sustainable solutions that build resilience into our business to respond to current and future challenges, while creating positive change for the planet. GREAT BRANDS, BOLD EXPERIMENTATION As a total beverage company, we are committed to offering people more of the drinks they want across a range of categories and in a variety of sizes. In 2022, we launched 246 low- or no-sugar beverages and continued to see double- digit growth for Coca-Cola Zero Sugar, which is now available in more than 170 markets. This helped to drive our volume of low- and no-calorie beverage sales to 29% of total volume.",3,"[Guess]: No +[Confidence]: 0.9 the paragraph does","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +5,nestle.pdf,"This helped to drive our volume of low- and no-calorie beverage sales to 29% of total volume. We’re driving the most significant marketing transformation in our history, focused on digital-first engagement with consumers. We’re combining partnerships, technology and our consumers’ passions to create unforgettable experiences in music, gaming and sports, including: •  Coca-ColaCreations: This global innovation platform lends the iconic Coca-Cola brand to new expressions, driven by collaboration, creativity and cultural connection. Launched in 2022, we introduced five limited-edition drinks that drew inspiration from music, gaming and culture. These were complemented with experimental packaging designs and various digital experiences. • SpriteLimelight: A music and cultural extension of the brand’s global platform “Heat Happens,” Sprite Limelight aims to unite fans from different cultures and lifestyles by bringing together different artists from around the world. We’re also experimenting with new drinks. We’ve launched Jack Daniel’s & Coca-Cola as a ready-to-drink cocktail through a relationship with Brown-Forman. This is one example of our ongoing journey to bring Coke to consumers in new and dynamic ways. We take the new responsibilities that come with our entry in this space very seriously.",3,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +6,nestle.pdf,"This is one example of our ongoing journey to bring Coke to consumers in new and dynamic ways. We take the new responsibilities that come with our entry in this space very seriously. As a result, we’ve embedded our Global Policy on Alcohol Responsibility into our business processes to ensure we grow our alcohol brands in a responsible and sustainable way. SUSTAINABILITY IS CORE TO OUR BUSINESS STRATEGY Water: Water is a priority for our company because it is the first ingredient in all our beverages and is essential to the communities we serve. As a local business operating in more than 200 countries and territories, we have a responsibility to help protect critical resources. Our 2030 Water Security Strategy focuses on increasing water security. We work with partners to provide access to a steady supply of clean water for people and ecosystems in the areas where we operate and source ingredients. We recently announced a more focused effort to prioritize the most water- stressed regions. As we’ve done since 2015, we’ll continue to replenish the water we use in our finished beverages to nature and communities. In 2022, we replenished 159%. JamesQ uincey Chairman and CEO",3,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +7,nestle.pdf,"4THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY Packaging: We seek to drive a circular economy for our packaging because this helps to reduce waste and carbon emissions. We’re working to use more recycled content in our packaging, to expand our use of refillable bottles, and to collect packaging for recycling through our World Without Waste initiative. We also partner to design new solutions for packaging. For example, we licensed our technology for a 100% plant-based plastic bottle to a company building a commercial- scale facility in Germany. This bio-based plastic packaging has a lower carbon footprint than other plastics. While we’re making progress, we know there is more work to be done. In 2022, we collected 61% of the equivalent bottles and cans that we introduced into the market and used 15% rPET in our bottles. To galvanize collective action, we invest in solutions and partnerships across industry, governments and society. In 2022, we became a Strategic Partner of the Ellen MacArthur Foundation.",4,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +8,nestle.pdf,"To galvanize collective action, we invest in solutions and partnerships across industry, governments and society. In 2022, we became a Strategic Partner of the Ellen MacArthur Foundation. This group includes companies within key industry sectors that can help drive the transition to a circular economy. Climate: Our water, packaging and climate goals are interconnected. For example, by creating a circular economy for packaging, we can lower our carbon footprint. By approaching water stewardship from a basin perspective, we participate in initiatives that increase communities’ resilience to extreme weather events, alongside our partners. Our approach to climate is rooted in science, and we’ve set a science-based target to reduce absolute greenhouse gas emissions by 25% by 2030, against a 2015 baseline. As of 2022, we have reduced our emissions by 7% against this baseline. A COMPANY FOR FUTURE GENERATIONS We’re committed to creating a culture of inclusion and belonging and to driving meaningful change in our communities. By 2030, we aspire to be 50% led by women globally. Today, 39% of our senior leaders are women.",4,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 " +9,nestle.pdf,"By 2030, we aspire to be 50% led by women globally. Today, 39% of our senior leaders are women. The Coca-Cola Foundation, the philanthropic arm of The Coca-Cola Company, contributed $94.8 million to 301 organizations around the world in 2022 to help create a better shared future for the communities our business serves. Our continued success would not be possible without our people. I am grateful for the company and system employees who live our purpose every day. Their collective passion and focus to build loved brands and make a difference in the world is how our business will continue to thrive for generations to come. JamesQ uincey Chairman and Chief Executive Officer April 26, 2023 Our strategy is clear. It’s centered around people—our consumers and employees—and driving sustainable solutions that build resilience into our business to respond to current and future challenges, while creating positive change for the planet.”",4,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +10,nestle.pdf,"5THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY BOARD OF DIRECTORS Note: Board composition and committee positions reflected as of April 25, 2023. * M s. Millhiser will join the Board on July 1, 2023 after her retirement from her current role, at which time she will join the Audit Committee. DAVID B. WEINBERG A Chairman and Chief Executive Officer, Judd Enterprises, Inc. ANA BOTÍN Executive Chair, Banco Santander, S.A.",5,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 " +11,nestle.pdf,"DAVID B. WEINBERG A Chairman and Chief Executive Officer, Judd Enterprises, Inc. ANA BOTÍN Executive Chair, Banco Santander, S.A. HELENE D. GAYLE President, Spelman College AMITY MILLHISER* Vice Chair, PricewaterhouseCoopers LLP (Not pictured) From left to right: ALEXIS M. HERMAN Chair and Chief Executive Officer, New Ventures LLC HERB ALLEN President, Allen & Company LLC CAROLYN EVERSON Senior Advisor, Permira MARC BOLLAND Chairman, Blackstone Europe CAROLINE J. TSAY Technology Company Advisor/ Limited Partner of Venture Capital Funds CHRISTOPHER C. DAVIS Chairman, Davis Selected Advisers, L.P. JAMES QUINCEY Chairman and Chief Executive Officer, The Coca-Cola Company BARRY DILLER Chairman and Senior Executive, IAC Inc. and Expedia Group, Inc. MARIA ELENA LAGOMASINO Lead Independent Director Chief Executive Officer and Managing Partner, WE Family Offices Our Board of Directors is proud of our company’s ongoing success.",5,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 " +12,nestle.pdf,"and Expedia Group, Inc. MARIA ELENA LAGOMASINO Lead Independent Director Chief Executive Officer and Managing Partner, WE Family Offices Our Board of Directors is proud of our company’s ongoing success. As the business continues to grow and evolve, our Board also continues to evolve. Through our Board refreshment efforts, we strive to maintain a balance of skills, tenure and diversity among our Directors. I am extremely proud that in 2022 we achieved gender parity in the composition of our Board. And as this report demonstrates, our actions and our business success remain grounded in our strong values and purpose: to refresh the world and make a difference.” MARIA ELENA LAGOMASINO Lead Independent Director Audit Committee Corporate Governance and Sustainability Committee Executive Committee Finance Committee Talent and Compensation Committee Chair Member",5,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 " +13,nestle.pdf,"Executive Summary OUR PRIORITIES & PROGRESS We focus on the highest-priority sustainability issues facing our company, stakeholders and communities, with the goal of maximizing collective impact. These issues, which we review on a regular basis in collaboration with leading NGO partners, are integrated into both our business strategy and system- wide operations to simultaneously build resilience and drive growth. They also inform our ambitious sustainability goals and how we report on progress against these interconnected goals. 6THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY",6,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +14,nestle.pdf,"7THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY OUR SUSTAINABILITY GOALS WATER LEADERSHIP PORTFOLIO PACKAGING CLIMATE SUSTAINABLE AGRICULTURE PEOPLE & COMMUNITIES OUR KEY GOALS Achieve 100% regenerative water use across 175 facilities identified as facing high levels of water stress by 2030 Work with partners to help improve the health of 60 watersheds identified as most critical for the system’s operations and agricultural supply chains by 2030 Aim to return a cumulative total of 2 trillion liters of water to nature and communities globally,",7,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +15,nestle.pdf,"between 2021–2030 Offering drinks with reduced added sugar Offering more drinks with nutrition and wellness benefits Providing clear nutrition information on packaging and in our communications Marketing our drinks responsibly Make 100% of our packaging recyclable globally by 2025 Use at least 50% recycled content in our packaging by 2030 Collect and recycle a bottle or can for each one we sell by 2030 Reduce our use of virgin plastic derived from non-renewable sources by a cumulative 3 million metric tons between 2020–2025 1 By 2030, we aim to have at least 25% of our beverages worldwide by volume sold in refillable/ returnable glass or plastic bottles or in fountain dispensers with reusable packaging Reduce absolute emissions by 25% by 2030 against a 2015 baseline Ambition to achieve net zero emissions by 2050 Sustainably source 100% of priority agricultural ingredients over time Mirror the markets we serve by 2030 • Aspire to be 50% led by women globally • Align U.S. race/ethnicity representation to U.S.",7,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 " +16,nestle.pdf,"S. race/ethnicity representation to U.S. census data across all job levels 2022 PROGRESS Replenished 159% of the water we use in our finished beverages 291 billion liters of water returned to nature and communities in 2022 ~68% of the products in our beverage portfolio have less than 100 calories per 12-ounce serving 29% of our volume sold in 2022 was low- or no-calorie 90% of our packaging is recyclable 15% of PET used is recycled PET (rPET) 61% of our packaging collected for recycling 2 7% decline in absolute emissions since 2015 toward a 25% science- based reduction target by 2030 Renewable electricity usage increased from 12% in 2021 to 21% in 2022 64% of priority ingredients sustainably sourced to Leader standard in line with our Principles for Sustainable Agriculture 39% of senior leadership positions held by women 4 COMMITTED TO INDUSTRY LEADERSHIP CDP Water Security Score: A– Replenished 100% of the water used in our finished beverages globally every year since 2015 We support more than 50 calorie and sugar reduction pledges globally,",7,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +17,nestle.pdf,"in collaboration with industry peers Coca-Cola Zero Sugar has delivered double-digit volume growth in five of the last six years Investing in refillable and dispensed solutions More than 40 markets currently offer at least one brand in 100% rPET3 packaging, excluding caps and labels Target aligned to Science-Based Targets initiative (SBTi) CDP Climate Change Score: A– Engagement with suppliers to implement Principles for Sustainable Agriculture framework and drive progress on other key sustainability issues such as water As part of our efforts to create a diverse, equitable and inclusive workplace, we are partnering with the Valuable 500’s Generation Valuable initiative, a mentoring program designed to promote inclusion in the workplace for people with disabilities 1 R eduction measured from historical usage modeled with 2018–2020 data. 2 The c ollection rate represents the average collection rate for select primary consumer packaging, which is the percentage of our packaging that was collected for recycling (or refill). 3 Ex cept where otherwise indicated, where reference is made in this report to 100% recycled PET, 100% rPET, or 100% recycled plastic beverage packaging, we are referring to the material from which the plastic bottle is made, not the cap and label.",7,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +18,nestle.pdf,"4 Da ta as of December 31, 2022, for salaried and hourly employees. Race/ethnicity data is for U.S. workforce only. This data excludes Bottling Investments Group (BIG), Global Ventures, fairlife and BODYARMOR. The Coca-Cola SystemThe Coca-Cola Company",7,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +19,nestle.pdf,"8THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY WATER LEADERSHIP PORTFOLIO: BEVERAGES FOR ALL Water is a priority for The Coca-Cola Company because it is essential to life, our beverages and the communities we serve. We have operations nearly everywhere in the world—in more than 200 countries and territories. That means we have a responsibility to help those who face water scarcity and to protect local water resources where we operate, especially in places with the biggest challenges. Our 2030 Water Security Strategy is focused on accelerating the actions needed to increase water security where we operate, source ingredients and touch people’s lives. We do that by contributing toward sustainable, clean water access that improves livelihoods and wellbeing while protecting against water-related disasters. We understand water challenges are different in each region, so we are focused on doing what matters most locally, where the challenges are greatest.",8,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +20,nestle.pdf,"We understand water challenges are different in each region, so we are focused on doing what matters most locally, where the challenges are greatest. Wehavesetthr ee  key goals  designed t o  achieve  ourvision: • A chieve 100% regenerative water use across 175of our facilities, identified as facing high levels of water stress by 2030. • Impr ove the health of 60w atersheds identified as most critical for our operations and agricultural supply chain by 2030. • R eturn a cumulative total of 2trillion  liters of water to nature and communities globally over the life of our strategy, between 2021–2030. READ MORE WATER LEADERSHIP 1 Substan tially all replenish data is internally validated and verified; the equivalent volume for 100% Replenish rate (182.9 Billion litres BL) is externally assured. Peer-reviewed methodologies were used to calculate volumetric benefits per project and operating unit for all externally assured data; one exception was approved for internally validated and verified data. The replenish benefit is typically estimated as a long-term, average annual volume, but for some project activities it varies annually.",8,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +21,nestle.pdf,"The replenish benefit is typically estimated as a long-term, average annual volume, but for some project activities it varies annually. Replenish benefits fall under three categories: Watershed Protection and Restoration (233.5 BL), Water for Productive Use (40.9 BL) and Water Access and Sanitation (17.4 BL). Due to joint venture or merger and acquisition activities between 2019–2022, certain brands may not be accounted for in this metric. Unless otherwise stated, in this report finished beverages is based on global sales volume. Approximately 13.5 BL (approx. 7%) of the water used in our beverages that we returned to nature and communities is from 7 projects located in Ukraine and Belarus where since May 2019 we have not been able to monitor projects on intervals aligned with internal guidelines due to COVID and the ongoing war. As a total beverage company, we are committed to offering people more of the drink choices they want across a range of categories and in a variety of packages. Evolving consumer tastes and preferences help steer our business strategy and shape the lineup of beverages we bring to market. We take a disciplined approach to product innovation and portfolio management, ensuring we develop and deliver preferred, great-tasting beverages for all occasions and lifestyles.",8,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +22,nestle.pdf,"We take a disciplined approach to product innovation and portfolio management, ensuring we develop and deliver preferred, great-tasting beverages for all occasions and lifestyles. This includes offering drinks with reduced added sugar and more brands with nutrition and wellness benefits; providing small package options and clear nutrition information on packaging and in our communications; and marketing our drinks responsibly.",8,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +23,nestle.pdf,"This includes offering drinks with reduced added sugar and more brands with nutrition and wellness benefits; providing small package options and clear nutrition information on packaging and in our communications; and marketing our drinks responsibly. READ MORE PORTFOLIO: BEVERAGES FOR ALL 291B LITERS OF WATER RETURNED TO NATURE AND COMMUNITIES IN 2022 10% WATER EFFICIENCY IMPROVEMENT ACROSS ALL SYSTEM OPERATIONS COMPARED TO 2015 19 OF TOP 20 BRANDS ARE REDUCED-SUGAR OR ZERO-SUGAR, OR HAVE A REDUCED-SUGAR OR ZERO-SUGAR OPTION 29% OF OUR VOLUME SOLD IN 2022 WAS LOW- OR NO-CALORIE 900,000 + TONS OF ADDED SUGAR REMOVED FROM OUR GLOBAL PORTFOLIO CUMULATIVELY THROUGH EFFORTS TO REFORMULATE MORE THAN 1,000 BEVERAGES FROM 2017–2022 ~68% OF THE PRODUCTS IN OUR BEVERAGE PORTFOLIO HAVE LESS THAN 100 CALORIES PER 12-OUNCE SERVINGWe have exceeded our 100% replenishment goal every year since 2015.",8,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +24,nestle.pdf,"159% OF THE WATER USED IN OUR FINISHED BEVERAGES RETURNED TO NATURE AND COMMUNITIES IN 2022 1 PortfolioMarketing We continue to use our marketing to drive growth of our low- and no-calorie portfolio. Coca-Cola Zero Sugar has experienced double-digit growth in five of the last six years. In 2022, several leading low- and no-calorie brands in North America launched consumer campaigns with celebrity partners and sponsorship assets.",8,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +25,nestle.pdf,"9THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY PACKAGING We recognize our responsibility to help solve complex plastic waste challenges facing our planet and society. Our ambitious strategy to drive change through a circular economy for our packaging is called World Without Waste. This strategy is a global sustainable packaging platform focused on these fundamental goals: Making 100% of our packaging recyclable globally by 2025—and using at least 50% recycled material in our packaging by 2030 (Design); collecting and recycling a bottle or can for each one we sell by 2030 (Collect); and bringing people together to support a healthy, debris-free environment (Partner). We are making progress against each of these objectives, which are embedded in how we operate as a business, and we take a transparent approach to reporting our actions, results and learnings. Local teams are executing in ways appropriate for their markets, and we are using a networked approach to deliver impact at scale.",9,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +26,nestle.pdf,"Local teams are executing in ways appropriate for their markets, and we are using a networked approach to deliver impact at scale. READ MORE PACKAGING COLLECT: GOAL 2022 STATUS Collect and recycle a bottle or can for each one we sell by 2030 61%4 61% PARTNER: GOAL 2022 STATUS We bring people together to support a healthy, debris-free environment. See our 2022 partnership highlights here DESIGN: GOALS 2022 STATUS Make 100% of our packaging recyclable globally by 2025 90% globally1 90% Use at least 50% recycled content in our packaging by 2030 25%2 recycled material in our packaging globally; 15% of PET used is recycled PET 25% 15% Reduce our use of virgin plastic derived from non-renewable sources by a cumulative 3 million metric tons from 2020–20253 In 2022, we avoided around half a million metric tons of virgin plastic usage through our efforts on lightweighting and use of recycled content with an incremental avoidance of over 50,000 metric tons compared to 2021.",9,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +27,nestle.pdf,"However, growth of plastic packaging has outpaced these efforts, so we did not reduce virgin plastic usage overall in 2022 By 2030, we aim to have at least 25% of our beverages worldwide by volume sold in refillable/returnable glass or plastic bottles or in fountain dispensers with reusable packaging Approximately 14% of total beverage volume was served in reusable packaging in 2022 14% CLIMATE Taking well-informed, decisive action to help address climate change is a priority for our company. Climate change poses risks to our business and our stakeholders. By implementing an interconnected approach across our priority sustainability issues, we are reducing the Coca-Cola system’s greenhouse gas (GHG) emissions and building resilience in our business, value chain and local communities. We are working to reduce our carbon footprint in line with science to help avoid the worst impacts of climate change. We do this by analyzing and prioritizing the sources of GHG emissions across our value chain and by partnering with stakeholders to drive down emissions. As of 2022, we reduced our absolute emissions by 7% against a 2015 baseline, making progress toward our science-based reduction target of 25% by 2030 against the baseline.",9,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: Yes +[Confidence]: 0.8 " +28,nestle.pdf,"As of 2022, we reduced our absolute emissions by 7% against a 2015 baseline, making progress toward our science-based reduction target of 25% by 2030 against the baseline. Our ambition also includes achieving net zero emissions by 2050. Several of our bottling partners and suppliers have set or committed to setting their own science-based reduction targets to drive climate action across our value chain. READ MORE CLIMATE GOAL 2022 STATUS Reduce absolute greenhouse gas (GHG) emissions by 25% by 2030, against a 2015 baseline 7% decline in absolute emissions since 2015 1 7% AMBITION To achieve netzero emissions by 2050 1 Onl y recyclable where infrastructure exists. 2 Incl udes select primary consumer packaging materials. 3 R eduction measured from historical usage modeled with 2018–2020 data. 4 The c ollection rate represents a weighted average of national collection rates, collected for recycling rates or refillable rates by packaging type to TCCS’s sales in units to express the percent of equivalent bottles and cans introduced into the market that were collected and refilled or collected for recycling for the year.",9,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +29,nestle.pdf,1 This figur e is calculated using the market-based emissions method and therefore includes purchased renewable electricity as part of the system’s overall emissions reduction. The Coca-Cola Company applies the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in this report and in a TCFD Index and provides comprehensive disclosures to CDP on Climate Change. 378 OF OUR SUPPLIERS (OUT OF 495 REQUESTED) PROVIDED CLIMATE DATA TO CDP IN 2022 (A 12% INCREASE FROM 2021) 21% RENEWABLE ELECTRICITY USAGE IN OUR SYSTEM—AN INCREASE FROM 12% IN 2021,9,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +30,nestle.pdf,"10THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY 93% 2020 93% 2019 99% 2022 95% 2021 0 20 40 60 80 100 Percentage of company operations that achieved compliance with our Supplier Guiding Principles 0 20 40 60 80 100 90% 2020 92% 2019 93% 2022 93% 2021 Percentage of bottling partners that achieved compliance with our Supplier Guiding Principles 0 20 40 60 80 100 87% 2020 91% 2019 91% 2022 92% 2021 Percentage of direct suppliers that achieved compliance with our Supplier Guiding Principles SUSTAINABLE AGRICULTURE HUMAN RIGHTS Our products and some of our packaging are made from a wide variety of agricultural ingredients, which we source from around the world. This complex global supply chain includes many kinds of suppliers, from multinational companies to smallholder farmers.",10,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +31,nestle.pdf,"This complex global supply chain includes many kinds of suppliers, from multinational companies to smallholder farmers. Our Principles for Sustainable Agriculture (PSA) communicate our expectations for environmental, social and economic performance to our agricultural suppliers at the farm level. The PSA, introduced in 2021, take a long-term perspective and reflect the most recent science, our total beverage company portfolio, and our increasingly diverse supply chain. The PSA are designed to encourage continuous improvement in farming practices and lead to more ethical and sustainable sourcing. Our goal is to sustainably source all our ingredients over time—such as sugar cane, corn, fruit, coffee, tea and soybeans. Sustainably sourcing our ingredients increases the resilience of our supply chain, helps to conserve nature, and empowers producers and farm workers. In practice, we encourage and support our ingredient suppliers to drive continuous improvement in sustainable farming practices, based on our PSA. READ MORE SUSTAINABLE AGRICULTURE Respecting human rights is one of our core values. The Coca-Cola Company was among the first companies to commit to the United Nations Guiding Principles on Business and Human Rights, and we have strived to inspire and drive responsible business practices ever since.",10,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +32,nestle.pdf,"The Coca-Cola Company was among the first companies to commit to the United Nations Guiding Principles on Business and Human Rights, and we have strived to inspire and drive responsible business practices ever since. READ MORE HUMAN RIGHTS 1 L eader standard represents supply volume verified to a company-approved, third-party validation, that is aligned with our PSA. 2 Da ta is based on supplier reporting according to our PSA governance requirements. 0 20 40 60 80 100 SOYBEANS COFFEE LEMONS ORANGES PULP AND PAPER SUGAR BEETS TEA CORN APPLES SUGAR CANE GRAPES MANGOES 37% 36% 40% 55% 70% 74% 80% 86% 89% 96% 99% 100% 2022 Progress on Sustainable Sourcing2 To make our ambition concrete, Real IMPACT includes three signature initiatives. Real IMPACT Toward a Better Tomorrow Driving meaningful and enduring change in the lives of everyone touched by the commodities at the heart of our products — from smallholder farmers and their families to the communities we serve.",10,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +33,nestle.pdf,"Empowering workers across our value chain — from upstream supply chain workers and our 700,000+ system employees to down- stream informal waste collection workers supporting recycling around the world. IMPACT AgricultureIMPACT Work Developing transformative due diligence and remediation programs through emerging technologies and creative partnerships with stakeholders and experts. IMPACT Innovation 2Real IMPACT: Toward A Better Tomorrow IN 2022, 64% OF OUR GLOBAL PRIORITY INGREDIENT VOLUMES WERE SUSTAINABLY SOURCED TO OUR LEADER STANDARD 1, IN LINE WITH OUR PRINCIPLES FOR SUSTAINABLE AGRICULTURE. We are proud to introduce Real Impact, a new vision for the company’s human rights program. Our mission is to take actions that lead toward a better tomorrow. We will take the lessons learned from existing programs and partnerships and seek to scale and adapt best practices across more geographies to deliver real impact to more people across our value chain. We will work to drive progress across our company, our industry and beyond through rigorous analysis, creative partnerships and constant innovation to turn commitment into action.",10,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +34,nestle.pdf,"We will work to drive progress across our company, our industry and beyond through rigorous analysis, creative partnerships and constant innovation to turn commitment into action. 2,770 AUDITS CONDUCTED IN 2022",10,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +35,nestle.pdf,"11THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY DIVERSITY, EQUITY & INCLUSION GIVING BACK TO OUR COMMUNITIES We help create a better shared future for everyone our brands and business system touches by working to provide access to equal opportunity and fostering belonging both in our workplaces and the communities we serve. We partner with global, national and local organizations—plus our network of bottling partners— to improve people’s lives. While we continued to make meaningful progress in 2022, our work is an ongoing journey in an ever-changing landscape. That’s why we continue to prioritize listening and learning; executing our strategy consistently; and holding ourselves accountable for continuous progress. READ MORE DIVERSITY, EQUITY & INCLUSION The Coca-Cola Foundation’s mission is to make a difference in communities where our company operates and where our employees live and work. As the independent philanthropic arm of The Coca-Cola Company, The Coca-Cola Foundation supports transformative ideas and institutions that address pressing and complex global challenges.",11,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +36,nestle.pdf,"As the independent philanthropic arm of The Coca-Cola Company, The Coca-Cola Foundation supports transformative ideas and institutions that address pressing and complex global challenges. Our goal is to leave a measurable and lasting impact in local communities through a focus on the environment and society. In 2022, The Coca-Cola Foundation contributed $94.8 million to 301 organizations globally. READ MORE GIVING BACK TO OUR COMMUNITIES 2022Race/Ethnicity Representation  by Level  (U.S.",11,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +37,nestle.pdf,"READ MORE GIVING BACK TO OUR COMMUNITIES 2022Race/Ethnicity Representation  by Level  (U.S.  only)1 SENIOR LEADERSHIP MIDDLE MANAGEMENT PROFESSIONALS TOTAL American Indian/Alaskan Native 0.0% 0.3% 0.4% 0.3% Asian 10.0% 10.4% 5.4% 8.1% Black/African American 8.6% 16.1% 30.3% 22.0% Hispanic/Latino 9.9% 8.7% 21.2% 14.6% Native Hawaiian/Other Pacific Islander 0.1% 0.1% 0.5% 0.3% Not specified 9.1% 5.2% 2.4% 4.3% Two or more races 0.9% 2.2% 3.0% 2.5% White 61.4% 57.1% 36.7% 48.1% 1 Da ta as of December 31, 2022, for salaried and hourly employees. Race/ethnicity data is for U.S. workforce only.",11,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +38,nestle.pdf,"Race/ethnicity data is for U.S. workforce only. This data excludes Bottling Investments Group (BIG), Global Ventures, fairlife and BODYARMOR. For exclusions, please view the criteria statement in the Independent Accountants’ Review Report. Note: The percentages in each column in these charts may not sum to 100% due to rounding. 2022Gender Representation  by Level  (global)1 SENIOR LEADERSHIP MIDDLE MANAGEMENT PROFESSIONALS TOTAL Female 39.0% 51.3% 36.0% 44.0% Male 61.0% 48.7% 64.0% 56.0% Our Refreshed  Giving Appr oach As of 2022, our giving is focused on impacting these areas: ENVIRONMENTAL SOCIAL ASPIRE TO CREATE a workforce that mirrors the markets we serve. ENABLE an inclusive culture where our employees thrive. ADVANCE equity within our business, communities, and the marketplace.",11,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +39,nestle.pdf,"ENABLE an inclusive culture where our employees thrive. ADVANCE equity within our business, communities, and the marketplace. Weapproachour DEI  strategythr ough  thelensofthr ee  core  ambitions: $94.8M 2022 Contributions $31.8M $14.1M$13.0M $12.0M $10.1M $7.0M $6.8M 33% Water & Environment 11% Community Well-Being 7% Women’s Empowerment 7% Matching Gifts 15% Disaster Relief & Humanitarian Aid 14% Education & Youth Development 13% Recycling TheCoca-ColaFoundation:2022Contributions",11,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +40,nestle.pdf,"HOW WE OPERATEAT A GLANCEOVERVIEW INNOVATION FINANCIAL HIGHLIGHTS GOVERNANCE & MANAGEMENT PRIORITY TOPICS STAKEHOLDER ENGAGEMENT & PARTNERSHIPS Our Company We are a total beverage company with products sold in more than 200 countries and territories. We are constantly transforming our portfolio, from reducing added sugar in our drinks to bringing innovative new products to market. We seek to positively impact people’s lives, communities and the planet through water replenishment, packaging recycling, sustainable sourcing practices and carbon emissions reductions across our value chain. Together with our bottling partners, we employ more than 700,000 people, helping bring economic opportunity to local communities worldwide. 12THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY",12,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +41,nestle.pdf,"13THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT HOW WE OPERATEAT A GLANCEOVERVIEW INNOVATION FINANCIAL HIGHLIGHTS GOVERNANCE & MANAGEMENT PRIORITY TOPICS STAKEHOLDER ENGAGEMENT & PARTNERSHIPS CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY AT A GLANCE COMPANY FACTS 137 YEARS of refreshing the world and making a difference ATLANTA, GEORGIA Global headquarters 200 + Countries and territories where our products are sold ~ 200 Master brands OUR SUSTAINABILITY BUSINESS PRIORITIES Water Leadership Packaging Sustainable Agriculture Reducing AddedSugar Climate People& Communities 11% 2022 Net Operating Revenue Growth $43.0B 2022 Net Operating Revenues 2022 PERFORMANCE THE COCA-COLA SYSTEM ~ 200 Bottling partners worldwide ~ 950 Production facilities 700K + System employees ~ 30M Retail customer outlets 2022 GLOBAL UNIT CASE VOLUME MIX BY OPERATING SEGMENT 28% Europe,",13,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +42,nestle.pdf,"Middle East & Africa 27% Latin America 17% North America 24% Asia Pacific RETAIL VALUE UNIT CASE VOLUME Trademark Coca-Cola Sparkling Flavors Water, Sports, Coffee & Tea Juice, Value-Added Dairy & Plant-Based Beverages Emerging & Other 0 10 20 30 2022 32.7 2021 31.329.0 2020 30.3 2019 29.6 2018 29.2 2017 29.3 2016 29.2 2015 28.6 2014 28.2 2013 Total Company Unit Cases (in billions) 4% Global Ventures",13,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +43,nestle.pdf,"14THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT HOW WE OPERATEAT A GLANCEOVERVIEW INNOVATION FINANCIAL HIGHLIGHTS GOVERNANCE & MANAGEMENT PRIORITY TOPICS STAKEHOLDER ENGAGEMENT & PARTNERSHIPS CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY HOW WE OPERATE 1 The C oca-Cola Company and its bottling partners are collectively known as the Coca-Cola system. The Coca-Cola Company does not own, manage or control most local bottling companies. The Coca-Cola Company markets, manufactures and sells: • Be verage concentrates and syrups • F inished beverages (including sparkling soft drinks; water, sports, coffee & tea; juice, value- added dairy & plant-based beverages; and emerging beverages). In our concentrate operations, The Coca-Cola Company typically generates net operating revenues by selling concentrates and syrups to authorized bottling partners. Our bottling partners combine the concentrates and syrups with still or sparkling water and sweeteners (depending on the product), to prepare, package, distribute and sell finished beverages.",14,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +44,nestle.pdf,"Our bottling partners combine the concentrates and syrups with still or sparkling water and sweeteners (depending on the product), to prepare, package, distribute and sell finished beverages. Our finished product operations consist primarily of company-owned bottling and distribution operations. We also operate retail outlets through Costa Limited (Costa), which has nearly 4,000 Costa coffee shops and over 14,000 Costa Express self-serve coffee bars worldwide. Costa’s portfolio also includes ready-to-drink and at- home coffee solutions. BOTTLERS DISTRIBUTION CUSTOMERS& CONSUMERS 2.2B SERVINGS PER DAY The Coca-Cola System1 INNOVATION / CREATION / MARKETING COMPANYTHE Concentrates andSyrups Finished Products BOTTLING PARTNERS WORLDWIDE ~2 0 0 PRODUCTION FACILITIES WORLDWIDE ~950",14,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +45,nestle.pdf,"15THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT INNOVATION HOW WE OPERATEAT A GLANCEOVERVIEW INNOVATION FINANCIAL HIGHLIGHTS GOVERNANCE & MANAGEMENT PRIORITY TOPICS STAKEHOLDER ENGAGEMENT & PARTNERSHIPS CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY INNOVATION BOLD BEVERAGES AND NEW EXPERIENCES We’re taking global innovation to the next level. In 2022, we combined partnerships, technology and our consumers’ passions to create unforgettable experiences in music, gaming and sports. Coca-ColaCreations Coca-Cola Creations is a new global innovation platform that lends the iconic Coca-Cola brand to new expressions, driven by collaboration, creativity and cultural connection. In 2022, we launched five limited-edition drinks: Coca-Cola Starlight, Coca-Cola Byte, the artist Marshmello’s Limited Edition Coca-Cola, Coca-Cola Dreamworld, and Coca-Cola Soul Blast. Coca-Cola Creations draws inspiration from music, gaming and culture, and is complemented with experimental packaging designs, digital experiences and more.",15,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +46,nestle.pdf,"Coca-Cola Creations draws inspiration from music, gaming and culture, and is complemented with experimental packaging designs, digital experiences and more. “RecycledRecords” Legendary music producers Mark Ronson and Madlib teamed up with Sprite, Fresca and Seagram’s to showcase the parallels between recycling sounds and beverage bottles. “Recycled Records” is an original EP created almost entirely from “recycled” sound samples captured during the PET bottle-to-bottle recycling process. The project is a creative, culturally relevant way to celebrate the brands’ switch from green to clear PET packaging. CokeStudio Coke Studio expanded into a global, digital-first platform. Seven diverse artists from seven countries teamed up on a remake of Queen’s “A Kind of Magic” to kick off the platform. Coke Studio launched in 2008 in Pakistan as a TV series featuring live collaborations between established and emerging musical artists before growing into an international music franchise with editions in India, the Philippines, Africa and the Middle East. CostaCoffeeSmartCafé Launched in the United States in 2022, the Costa Coffee Smart Café delivers a range of more than 200 drink options, from espresso to hot chocolate.",15,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +47,nestle.pdf,"CostaCoffeeSmartCafé Launched in the United States in 2022, the Costa Coffee Smart Café delivers a range of more than 200 drink options, from espresso to hot chocolate. These innovative touch-screen machines always use fresh milk and freshly ground Signature Blend beans.",15,"[Guess]: No +[Confidence]: 1.0 +","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +48,nestle.pdf,"16THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT HOW WE OPERATEAT A GLANCEOVERVIEW INNOVATION FINANCIAL HIGHLIGHTS GOVERNANCE & MANAGEMENT PRIORITY TOPICS STAKEHOLDER ENGAGEMENT & PARTNERSHIPS CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY A Metaverse  Milestone Coca-Cola thanked fans who participated in the brand’s journey into the metaverse with a special digital collectible drop on International Friendship Day 2022. The collectible, featuring a design inspired by the bubbles inside a Coke bottle as well as themes of connection and unity, airdropped to the digital wallets of Coca-Cola collectible owners in July. Recipients could share a second International Friendship Day collectible with a friend to build Coke’s community of fans. SpriteLimelight Sprite Limelight launched as the music and cultural extension of “Heat Happens,” the brand’s global platform unveiled in 2022.",16,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +49,nestle.pdf,"SpriteLimelight Sprite Limelight launched as the music and cultural extension of “Heat Happens,” the brand’s global platform unveiled in 2022. Grammy-winning producer James Blake crafted a lyrical hook rooted in keeping life’s “heat” at bay, and three distinctive global artists—American rapper Coi Leray, African singer-songwriter and social media sensation Omah Lay, and Chinese pop/rock singer Hua Chenyu—used the hook as inspiration for their own original songs. LilNasX and vitamin water Global superstar Lil Nas X teamed up with vitaminwater’s “Nourish Every You” campaign to showcase six videos featuring his unreleased track, “Give Me One Chance.” Each featured a unique vitaminwater flavor—focus, shine, energy, xxx zero, gutsy and ice—to create a fantasy world inspiring fans to nourish all of their “yous.” “Nourish Every You” was inspired by the insight that vitaminwater fans want to take care of themselves, but are living with fluctuating physical, emotional and spiritual needs.",16,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 " +50,nestle.pdf,POWERADE: ‘PauseisPower’ POWERADE celebrated the power of the pause—prioritizing wellbeing over winning—with a global communications platform featuring USA gymnast Simone Biles and other accomplished athletes and coaches spanning a variety of sports. The campaign kicked off in March 2022 during NCAA March Madness.,16,"[Guess]: No +[Confidence]: 1.0 +","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 " +51,nestle.pdf,"17THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT HOW WE OPERATEAT A GLANCEOVERVIEW INNOVATION FINANCIAL HIGHLIGHTS GOVERNANCE & MANAGEMENT PRIORITY TOPICS STAKEHOLDER ENGAGEMENT & PARTNERSHIPS CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY FINANCIAL HIGHLIGHTS Note: See pages 72–74 for reconciliations of non-GAAP financial measures to our results as reported under accounting principles generally accepted in the United States (U.S. GAAP). 1 R eported net operating revenues grew 9%, declined 11%, grew 17% and grew 11% for the years ended December 31, 2019, 2020, 2021 and 2022, respectively. 2 R eported operating income grew 10%, declined 11%, grew 15% and grew 6% for the years ended December 31, 2019, 2020, 2021 and 2022, respectively.",17,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +52,nestle.pdf,"3 R eported diluted earnings per share grew 38%, declined 13%, grew 26% and declined 3% for the years ended December 31, 2019, 2020, 2021 and 2022, respectively. 4 A djusted free cash flow conversion ratio = free cash flow adjusted for pension contributions divided by net income adjusted for noncash items impacting comparability. (in millions except per share data) 2019 2020 2021 2022 Summary of Operations Net operating revenues $37,266 $33,014 $38,655 $ 43,004 Operating income 10,086 8,997 10,308 10,909 Net income attributable to shareowners of The Coca-Cola Company 8,920 7,747 9,771 9,542 Per Share Data Basic earnings per share $2.09 $1.80 $2.26 $2.20 Diluted earnings per share 2.07 1.79 2.25 2.19 Cash dividends 1.60 1.64 1.68 1.76 Balance Sheet Data Total assets $86,381 $87,296 $94,354 $ 92,763 Long-term debt 27,516 40,125 38,116 36,",17,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +53,nestle.pdf,"68 1.76 Balance Sheet Data Total assets $86,381 $87,296 $94,354 $ 92,763 Long-term debt 27,516 40,125 38,116 36,377 -10 -5 0 5 10 15 20 16% 2022 16% 2021 6% 2019 (9%) 2020 Organic Revenue Growth (Non-GAAP)1 2022 17%17% 2021 9% 2019 (2%) 2020 -5 0 5 10 15 20 Comparable Currency Neutral Diluted Earnings Per Share Growth (Non-GAAP)3 19% 2022 12% 2021 13% 2019 0% 2020 0 5 10 15 20 Comparable Currency Neutral Operating Income Growth (Non-GAAP)2 89% 2022 116% 2021 108% 2020 96% 2019 0 20 40 60 80 100 120 Adjusted Free Cash Flow Conversion Ratio (Non-GAAP)4",17,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +54,nestle.pdf,"18THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT GOVERNANCE & MANAGEMENT HOW WE OPERATEAT A GLANCEOVERVIEW INNOVATION FINANCIAL HIGHLIGHTS GOVERNANCE & MANAGEMENT PRIORITY TOPICS STAKEHOLDER ENGAGEMENT & PARTNERSHIPS CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY GOVERNANCE & MANAGEMENT THE COCA-COLA COMPANY including progress toward the company’s sustainability goals. The Committee assesses a range of issues relevant to the company’s business, our shareowners, the broader stakeholder community or the general public. This entails evaluating and reviewing information pertaining to social, political and environmental trends, in addition to oversight of the company’s sustainability goals and human rights practices. The Corporate Governance and Sustainability Committee oversees our plans and strategies on climate-related issues. For a deeper dive into our climate governance, visit the Climate section. The Committee also oversees and reviews, at least annually, the company’s public policy agenda, its position on significant public policy matters, political contributions and lobbying activities.",18,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 " +55,nestle.pdf,"The Committee also oversees and reviews, at least annually, the company’s public policy agenda, its position on significant public policy matters, political contributions and lobbying activities. The Committee reviews shareowner proposals on sustainability issues to be included in the company’s proxy statements and makes recommendations to the Board. In addition, the Committee receives updates on priority sustainability issues, including actions and progress toward goals. The Audit Committee oversees certain processes related to external sustainability disclosures and works jointly with the Corporate Governance and Sustainability Committee to oversee sustainability risks facing the company. Finally, the Talent and Compensation Committee oversees the company’s human capital management policies and strategies. This includes talent management, leadership and company culture initiatives, such as those promoting diversity, equity and inclusion (DEI). This Board-level commitment and alignment drives top-down accountability toward our DEI goals and helps support a positive company culture. To reinforce the importance of meeting our sustainability goals, the Talent and Compensation Committee approved plans to link sustainability performance to our annual and long-term incentive programs for executives in 2022.",18,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +56,nestle.pdf,"To reinforce the importance of meeting our sustainability goals, the Talent and Compensation Committee approved plans to link sustainability performance to our annual and long-term incentive programs for executives in 2022. In the annual incentive program, we have reinforced our commitment to DEI by incorporating quantitative and qualitative components tied to our 2030 aspirations to be 50% led by women globally and, in the United States, to align race and ethnicity representation to U.S. census data. Similarly, in the long-term incentive program, predefined goals related to our World Without Waste packaging strategy and our 2030 Water Security Strategy were incorporated into the 2022–2024 incentive awards. CORPORATE GOVERNANCE The Coca-Cola Company’s innovative and collaborative culture is underpinned by a robust framework of policies and processes to promote ethical behavior, accountability and transparency. Our Board of Directors is responsible for overseeing our governance framework as part of its risk oversight function. Board Committee charters, our Code of Business Conduct, Corporate Governance Guidelines, Certificate of Incorporation and Corporate By-Laws can be viewed on our website.",18,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +57,nestle.pdf,"Board Committee charters, our Code of Business Conduct, Corporate Governance Guidelines, Certificate of Incorporation and Corporate By-Laws can be viewed on our website. SUSTAINABILITY GOVERNANCE The Board has delegated oversight of sustainability matters to its various committees in order to leverage each committee’s experience and subject-matter strengths in overseeing the varied and technical matters encompassed by sustainability. The Corporate Governance and Sustainability Committee has primary responsibility for overseeing the company’s sustainability strategies and initiatives—and related risks—that concern environmental, social, legislative, regulatory and public policy matters, BoardCommittees • A udit • C orporate Governance and Sustainability • Ex ecutive • Finance • T alent and Compensation DrivingSustainability Performancethr ough  Executive  Compensation Beginning in 2022, performance as it relates to diversity, packaging and water goals is reflected in our incentive programs for executives. SECTIONSCOPE: This section refers to governance, disclosure and policies of The Coca-Cola Company.",18,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +58,nestle.pdf,"19THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT HOW WE OPERATEAT A GLANCEOVERVIEW INNOVATION FINANCIAL HIGHLIGHTS GOVERNANCE & MANAGEMENT PRIORITY TOPICS STAKEHOLDER ENGAGEMENT & PARTNERSHIPS CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY Learn about our transparent approach to stakeholder engagement and scientific research. PUBLIC POLICY & POLITICAL ENGAGEMENT Integrity, transparency and nonpartisanship underpin our approach to engagement in the public policy and political process. In the United States and Canada, we promote public policy solutions about key issues for our business that include environmental sustainability, consumer preference, tax and trade, and workplace and economic inclusion. Our advocacy often involves education, participation and thought leadership within industry, business and policy forums. When significant to our business interests, we share our policy positions through advocacy initiatives. Consistent with U.S. federal law, the company does not use corporate funds to contribute to federal candidates, political parties or political committees, or otherwise employ its resources, including in-kind, even when permitted by law.",19,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +59,nestle.pdf,"federal law, the company does not use corporate funds to contribute to federal candidates, political parties or political committees, or otherwise employ its resources, including in-kind, even when permitted by law. The company has a long-standing policy against use of corporate funds for independent expenditures or super PACS, including toward electioneering communications. Effective as of January 1, 2021, the company does not use corporate funds to directly support state or local political candidates, even if permitted by law. OUR APPROACH TO DISCLOSURE We have a comprehensive sustainability reporting process that spans many years, and we aim to provide stakeholders with complete, transparent and candid information in all our public communications. This is our fifth annual Business & Sustainability Report, which combines financial and sustainability performance in one publication. We also respond to the CDP climate, water and forests questionnaires and make those disclosures publicly available. We recognize there is a desire for standardization across reporting frameworks, and we’re continually evaluating reporting options and listening to stakeholder feedback. This report is prepared in accordance with the Global Reporting Initiative (GRI) Standards, a globally recognized framework.",19,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +60,nestle.pdf,"This report is prepared in accordance with the Global Reporting Initiative (GRI) Standards, a globally recognized framework. In addition, we provide indexes for the Sustainability Accounting Standards Board (SASB), the Task Force on Climate-related Financial Disclosures, the United Nations Sustainable Development Goals (SDGs), the United Nations Global Compact (UNGC) and the United Nations Guiding Principles Reporting Framework (UNGPRF). We also submit packaging data to the Ellen MacArthur Foundation/UN Environment Programme’s New Plastics Economy Global Commitment, the WWF ReSource Plastic disclosure platform and the U.S. Plastics Pact. The company follows all national laws regarding political engagement and discloses political contributions according to each country’s legal framework and through the relevant national regulatory authorities. In early 2023, the company enhanced its disclosures to include links to our non-U.S. political contributions. The Corporate Governance and Sustainability Committee of the Board of Directors annually reviews our public policy agenda and advocacy program. These reviews ensure that our activities align with our business interests and serve the needs of our shareowners and broader stakeholder community.",19,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +61,nestle.pdf,"These reviews ensure that our activities align with our business interests and serve the needs of our shareowners and broader stakeholder community. The North America Operating Unit Vice President of Public Policy, Federal Government Relations & Political Engagement is responsible for management of our public policy agenda and political engagement, in consultation with the North America Operating Unit Senior Vice President & Chief of Public Affairs, Communications and Sustainability, and the Legal Department. Our political participation is conducted in an open and nonpartisan manner and in strict compliance with the Code of Business Conduct, the U.S. Political Engagement Policy, and applicable laws and regulations. The Coca-Cola Company was recognized as a Trendsetter in the 2022 CPA-Zicklin Index of Corporate Political Disclosure and Accountability. The Center for Political Accountability (CPA) aims to encourage responsible corporate political activity, protect shareholders and strengthen the integrity of the political process.",19,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +62,nestle.pdf,"20THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT HOW WE OPERATEAT A GLANCEOVERVIEW INNOVATION FINANCIAL HIGHLIGHTS GOVERNANCE & MANAGEMENT PRIORITY TOPICS STAKEHOLDER ENGAGEMENT & PARTNERSHIPS CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY OUR SUSTAINABILITY APPROACH The Coca-Cola Company works closely with approximately 200 bottling partners across more than 200 countries and territories to achieve our sustainability goals. We have established internal processes and an internal control environment that help us identify and manage risks. One hallmark of our approach is regular communication between the Board, our Chairman and CEO, and internal teams such as the Enterprise Risk Management team, the Risk Steering Committee and the Networked Corporate Sustainability team, which includes Technical, Innovation and Supply Chain; Public Affairs, Communications and Sustainability; Global Human Rights; and Procurement. The company’s Compliance, Legal and Finance functions serve in an advisory role.",20,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +63,nestle.pdf,"The company’s Compliance, Legal and Finance functions serve in an advisory role. Our networked teams also collaborate with operating units, bottling partners, NGOs, governments, investors and people in communities all around the world to identify risks and make progress toward our sustainability goals. For more about our approach to risk management and priority issues, see Priority Topics.",20,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +64,nestle.pdf,"For more about our approach to risk management and priority issues, see Priority Topics. EXECUTIVE LEADERSHIP TEAM Chairman and Chief Executive Officer Chief Communications, Sustainability and Strategic Partnerships Offi cer Chief Technical and Innovation Officer President and Chief Financial Officer Audit Committee Talent and Compensation Committee Corporate Governance and Sustainability Committee Board of Directors CROSS-FUNCTIONAL STEERING GROUPS Global Environmental Council Sustainable Sourcing Committee Packaging Core Team Climate Core Team Water Core Team Global Health & Safety Council OPERATINGUNITLOCALSUSTAINABILITY TEAMS NETWORKED CORPORATE SUSTAINABILITY TEAM Public Affairs, Communications & Sustainability Technical, Innovation & Supply Chain Global Human Rights Procurement ADVISORY ROLE Compliance Legal Finance Enterprise Risk Management Sustainability Governance  at T he  Coca-Cola  Company STEERING COMMITTEES Sustainability Steering Committee Risk Steering Committee",20,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +65,nestle.pdf,"21THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT HOW WE OPERATEAT A GLANCEOVERVIEW INNOVATION FINANCIAL HIGHLIGHTS GOVERNANCE & MANAGEMENT PRIORITY TOPICS STAKEHOLDER ENGAGEMENT & PARTNERSHIPS CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY PRIORITY TOPICS During 2022, we undertook a comprehensive review of the highest priority topics for our company, system and stakeholders. Identifying and prioritizing our material topics, in collaboration with a cross-functional internal team and key external stakeholders, is a foundational step in how we develop our corporate strategy, conduct and evolve our business, and report on progress. Prior to 2022, our last comprehensive review was conducted in 2019, with refreshes being undertaken in 2020 and 2021 to establish closer alignment between priority topics and business- relevant issues and practices. Our 2022 review included a robust analysis and broader engagement guided by ERM, a leading sustainability consultancy. This was followed by interviews with more than 30 internal and external stakeholders and an online survey that had 90 responses from across the globe.",21,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +66,nestle.pdf,"This was followed by interviews with more than 30 internal and external stakeholders and an online survey that had 90 responses from across the globe. Stakeholders we talked to represent a diversity of views and have deep expertise across a range of issues and sectors. The stakeholders included investors and financial institutions, NGOs, bottling partners, trade and industry associations, business peers, customers and suppliers. Our comprehensive 2022 review process resulted in an updated priority topics matrix, which reflects adjustments to several key issues in response to feedback from both internal and external stakeholders. The updated matrix continues to demonstrate that our priority topics are Packaging & Circularity and Water Stewardship, followed by Health & Nutrition and Climate Change. Responsible Sourcing and Talent Attraction, Retention and DEI increased in importance versus the prior year. We have implemented management initiatives to address these priority topics. We also continue to evolve our strategic approach to effectively manage associated business risks and opportunities in light of the ongoing changes to both our business and the external context in which we operate. This is detailed in the individual sections of the report.",21,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +67,nestle.pdf,"This is detailed in the individual sections of the report. IMPACT TO THE COCA-COLA COMPANY IMPORTANCE TO EXTERNAL STAKEHOLDERS LABOR & HUMAN RIGHTS RESPONSIBLE MARKETING CORPORATE GOVERNANCE CLIMATE CHANGE HEALTH & NUTRITION WATER STEWARDSHIP TALENT ATTRACTION, RETENTION & DEI PACKAGING & CIRCULARITY BUSINESS CONTINUITY & RESILIENCE PRODUCT QUALITY & SAFETY SUSTAINABLE COMMUNITIES ADVOCACY & REGULATORY ENGAGEMENT BIODIVERSITY & DEFORESTATION STAKEHOLDER, SYSTEM & BUSINESS PARTNER ENGAGEMENT RESPONSIBLE SOURCING The horizonal axis represents impact to the company and the vertical axis represents the importance to stakeholders. The quadrants help identify where the combined views of the priority topics fall. FOR FURTHER DETAILS INCLUDING THE FULL DEFINITIONS OF EACH TOPIC, PLEASE SEE THE DATA APPENDIX",21,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +68,nestle.pdf,"22THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT HOW WE OPERATEAT A GLANCEOVERVIEW INNOVATION FINANCIAL HIGHLIGHTS GOVERNANCE & MANAGEMENT PRIORITY TOPICS STAKEHOLDER ENGAGEMENT & PARTNERSHIPS CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY STAKEHOLDER ENGAGEMENT & PARTNERSHIPS As one of the world’s largest and most recognized companies, we have an opportunity to use our size and scale to help address global challenges. While we strive to make progress on our own, we are committed to fostering partnerships that drive collective impact in areas including water stewardship, packaging circularity, climate action and many more. As a global business that operates locally, we can extend our impact and reach because of the strength of the Coca-Cola system, which includes our approximately 200 bottling partners worldwide. We engage with stakeholders, including governments, NGOs, communities, suppliers, investors, business partners, customers and consumers around the world and throughout our network, in many forums and formats. Feedback from our stakeholders allows us to learn and improve, and informs our business and sustainability strategy.",22,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +69,nestle.pdf,"Feedback from our stakeholders allows us to learn and improve, and informs our business and sustainability strategy. In all our engagements with stakeholders, we are committed to upholding the principles of transparency, consistency, accountability and integrity. PartnershipHighlights • C oca-Cola Philippines and Indorama Ventures partnered to establish PETValue Philippines, a full operation recycling facility that is the first of its kind in the country. The facility is helping to drive collective action toward a circular economy for PET plastic, by providing more than 800 collection points for PET bottles in the country. PETValue’s projected capacity, or the amount of used plastic bottles it can process, is 30,000 metric tons per year, which requires around 2 billion PET bottles as input to be recycled. • In partner ship with WWF-Pakistan, we are working to address water scarcity and quality issues for approximately 360,000 people in Lahore, Pakistan who rely on the Ravi River as a freshwater source.",22,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +70,nestle.pdf,"• W e partnered with the CEO Water Mandate, denkstatt and others to help build the business case for Nature-Based Solutions (NBS) by developing a standardized methodology to quantify the co-benefits of NBS projects and calculate the social return on investment. • W e joined the Supplier Leadership on Climate Transition initiative along with 18 other companies to mobilize collective climate action by providing suppliers with resources, tools and knowledge to accelerate their decarbonization. Ten suppliers that we sponsored, who completed the program, have set or committed to setting emissions reduction targets through the Science-Based Targets initiative. • W e joined with the Business Coalition for a Global Plastics Treaty and the International Council of Beverages Associations in support of a UN Global Plastics Treaty. The Business Coalition is supporting the treaty negotiations around the vision of a circular economy in which plastic never becomes waste or pollution, and the value of products and materials is retained in the economy. In 2022, as COVID-19 restrictions eased, we were able to attend several global events in person. We used these opportunities to engage with diverse stakeholders, to listen and to explore ways to drive collective action to positively impact people, communities and our environment.",22,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +71,nestle.pdf,"We used these opportunities to engage with diverse stakeholders, to listen and to explore ways to drive collective action to positively impact people, communities and our environment. GlobalLeadershipEvents WorldEconomicForum Davos, Switzerland WorldW ater W eek Stockholm, Sweden TheConsumer Goods  Forum  GlobalSummit Dublin, Ireland MAY AUGUSTJUNE BusinessCoalitionfor a  Global  PlasticsT reaty Launch  New York, NY, U.S. SEPTEMBER PARTNERING FOR IMPACT ForbesSustainability Summit  New York, NY, U.S. SEPTEMBER UNClimateChangeConference Sharm El Sheikh, Egypt NOVEMBER SECTIONSCOPE: In this section our stakeholder engagement and partnership work refers to actions by the company as well as our owned and independent bottling partners and our independent suppliers and partners.",22,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +72,nestle.pdf,"23THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT HOW WE OPERATEAT A GLANCEOVERVIEW INNOVATION FINANCIAL HIGHLIGHTS GOVERNANCE & MANAGEMENT PRIORITY TOPICS STAKEHOLDER ENGAGEMENT & PARTNERSHIPS CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY CONVENING MEANINGFUL CONVERSATIONS KEY REGIONAL EVENTS IN 2022 NIGERIA AfricaSocialImpactSummit We partnered with Sterling One Foundation to hold the inaugural Africa Social Impact Summit under the theme “rethink, rebuild, recover— accelerating growth for the sustainable development goals (SDGs)” in Abuja, Nigeria in July. The summit provided a platform for dialogue on regional inclusive development aimed at stimulating the private sector and impact investors, to shape market-led solutions for the SDGs. Breakthe  Ceiling T ouch  theSky Coca-Cola is a World Sponsor of House of Rose Professional’s Break the Ceiling Touch the Sky®, a global women's leadership platform.",23,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +73,nestle.pdf,"In September, the 2022 Middle East edition brought together over 300 women from top companies across the region to Dubai to learn, network, share and apply best practices on leadership, success, diversity and inclusion. UNITED ARAB EMIRATES OPENConversation Coca-Cola Netherlands held its fifth OPEN conversation in October involving our local bottling partner and key stakeholders to discuss topics such as packaging, water, climate, diversity, equity and inclusion and how we can all contribute to a healthier living environment. THE NETHERLANDS The Coca-Cola Company became a Strategic Partner of the EllenMacArthur Foundation with the announcement shared during its annual Summit on July 5, 2022. The Foundation’s Strategic Partners include some of the world’s largest and most influential organizations, with transformative potential to demonstrate what’s possible to accelerate the transition to a circular economy.",23,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +74,nestle.pdf,"1 The pr eviously reported figure of 18.5 million people provided access to safe drinking water, sanitation and hygiene since 2010, was through working collectively with The Coca-Cola Foundation, bottlers, implementing partners and other co-funders. 2 Substan tially all replenish data is internally validated and verified; the equivalent volume for 100% Replenish rate (182.9 Billion litres BL) is externally assured. Peer- reviewed methodologies were used to calculate volumetric benefits per project and operating unit for all externally assured data; one exception was approved for internally validated and verified data. The replenish benefit is typically estimated as a long-term, average annual volume, but for some project activities it varies annually. Replenish benefits fall under three categories: Watershed Protection and Restoration (233.5 BL), Water for Productive Use (40.9 BL) and Water Access and Sanitation (17.4 BL). Due to joint venture or merger and acquisition activities between 2019–2022, certain brands may not be accounted for in this metric. Unless otherwise stated, in this report finished beverages is based on global sales volume. Approximately 13.5 Billion liters (approx.",24,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +75,nestle.pdf,"Unless otherwise stated, in this report finished beverages is based on global sales volume. Approximately 13.5 Billion liters (approx. 7%) of the water used in our beverages that we returned to nature and communities is from 7 projects located in Ukraine and Belarus where since May 2019 we have not been able to monitor projects on intervals aligned with internal guidelines due to COVID and the ongoing war. 3 Man y of our water replenishment projects are funded by The Coca-Cola Foundation. SECTION SCOPE: In this section our water leadership work refers to actions by the company, The Coca-Cola Foundation as well as our owned and independent bottling partners and our independent suppliers and partners. Water Leadership Water is a priority for The Coca-Cola Company because it is essential to life, our beverages and the communities we serve. It is also critical to public health, food security, biodiversity and the climate crisis. The world is experiencing increased water insecurity, which is evident through water scarcity, with demands for safe, usable water exceeding supply in certain areas. We have operations nearly everywhere in the world— in more than 200 countries and territories.",24,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +76,nestle.pdf,"We have operations nearly everywhere in the world— in more than 200 countries and territories. That means we have a responsibility to accelerate our efforts to help address water stress, protect local water resources and help build community climate resilience—communities’ ability to adapt to these changing conditions. That’s why our 2030 Water Security Strategy is focused on accelerating the actions needed to increase water security where we operate, source ingredients and touch people’s lives. 1 24THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY 291B LITERS OF WATER RETURNED TO NATURE AND COMMUNITIES IN 2022 159% OF THE WATER USED IN OUR FINISHED BEVERAGES RETURNED TO NATURE AND COMMUNITIES IN 2022 2, 3 WE HAVE REPLENISHED MORE THAN 100% OF THE WATER USED IN OUR FINISHED BEVERAGES EVERY YEAR SINCE 2015",24,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +77,nestle.pdf,"25THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY 2030 WATER SECURITY STRATEGY Vision: Our 2030 Water Security Strategy is focused on accelerating the actions needed to increase water security where we operate, source ingredients and touch people’s lives. We do that by contributing toward sustainable, clean water access that improves livelihoods and wellbeing while protecting against water-related disasters. We also work to preserve nature and biodiversity as well to promote advanced water management practices. Our2030strategyisgroundedinthefactthatwaterisasharedresource. Assuch,ourworkisorganizedtoaddresswatersecurityin: Over the last couple of years, we followed a process to segment and prioritize our operating facilities, commercial regions, sourcing regions for global priority ingredients, watersheds, and communities based on those with the highest water-related risks (read more on the following page).",25,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +78,nestle.pdf,"As a result of this work, we have set three key goals designed to achieve our vision: OUR COMMUNITIES OUR WATERSHEDS OUR OPERATIONS GOAL 1 Achieve 100% regenerative  water use across 175 of our facilities identified as facing high levels of water stress by 2030. GOAL 2 Improve the health of 60 watersheds identified as most critical for our operations and agricultural supply chain by 2030.  GOAL 3 Return a total of 2 trillion liters of water to nature and communities globally between 2021 and 2030. Allthreegoalscontributetoourcommitmenttomaintainatleast100%global replenishmentofthewaterusedinourfinishedbeverages. To achieve our goals, collective action is critical.",25,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +79,nestle.pdf,"To achieve our goals, collective action is critical. Wew ork  collaborativelywith  partners  across  sectors t o  implementactionsinour operations, w atersheds  (including  agriculturalingredientsourcingregions)andcommunities: Actionswithin  Our Operations • Use less water • Reuse and treat wastewater ActionsinOurW atersheds  & Our Communities • Support na ture-based solutions • In vest in landscape solutions (gray infrastructure) • Help f armers use less water and implement sustainable agriculture practices • Help pr ovide communities with access to safe water, sanitation and hygiene (WASH) • A dvocate for good water governance and smart policies OpenCallt o A ccelerate A ction  onW ater The Coca-Cola Company and our bottling partners Coca-Cola FEMSA, Coca-Cola Europacific Partners and Arca Continental joined the “Open Call to Accelerate Action on Water”, an initiative of the UN Global Compact, the CEO Water Mandate, and others.",25,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +80,nestle.pdf,"This means we will partner to build water resilience across operations and supply chains, and we will work together to achieve collective positive water impact in at least 100 vulnerable water basins by 2030.",25,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +81,nestle.pdf,"26THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY In 2022, we completed our analysis of water- related risks in areas where we can make the greatest impact 1. We prioritized our operating facilities, commercial regions, sourcing regions for global priority ingredients, watersheds and communities. Operations We analyzed water sourcing risks across approximately 700 operational locations (mainly concentrate plants and bottling facilities) and mapped the minor river basins and sourcing basins of these facilities. We catalogued these locations based on the detailed mapping and results from an Enterprise Water Risk Assessment from the World Resources Institute’s Aqueduct 3.0 tool and from Facility Water Vulnerability Assessments—our site-level, internal proprietary tool. As a result, each facility has been placed within one of three categories: •  LEADERSHIP LOCATIONS: Approximately 25% of our facilities face the highest level of water-related risks and are on a path to 100% regenerative water use by 2030.",26,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +82,nestle.pdf,"• ADVANCEDEFFICIENCY LOCATIONS: System facility locations in a water-stressed context that will drive advanced water efficiency improvements in operations. • CONTRIBUTINGLOCATIONS: System facility locations in areas with low water-related risks. These will contribute to water security overall by implementing the Coca-Cola system's Water Resource Sustainability Standard, achieving industry benchmark water efficiency and 100% compliance with wastewater discharge standards. Watersheds Similarly, we undertook a comprehensive process to identify priority watersheds across our system. These include our Leadership Locations and their water sources, where we source global priority ingredients, key growth markets and priority communities. Communities We also began mapping priority communities, based on their lack of access to water, sanitation and hygiene (WASH) and resilience to water- related impacts of climate change (e.g., floods and droughts), with a focus on communities close to our facilities, and/or in urban growth centers where we sell our products, and/ or in rural farming communities where we source ingredients.",26,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +83,nestle.pdf,"By mapping and overlaying our priority facilities, watersheds and communities, we have developed a framework of prioritization and a deeper understanding of risks, which will help us develop holistic, integrated and context-based approaches to help increase water security where it matters the most in our business, operations and supply chains. DefiningRegenerativeW ater Use  Regenerative water use means facilities must reduce, reuse, recycle and replenish the water used in operations in the local correlated watersheds for beneficial social, economic and/or environmental uses by other stakeholders and nature. 1 During the course of implementation of our 2030 Water Security Strategy we will review our prioritization periodically, as risks evolve and/or new data emerges. This may lead to changes in the prioritized facilities, watersheds and communities.",26,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +84,nestle.pdf,"This may lead to changes in the prioritized facilities, watersheds and communities. PRIORITIZING OPERATIONS, COMMUNITIES AND WATERSHEDS Makingthe  Greatest  Impact Wher e  It  Matters  Most  by Doing Wha t  Matters  Most Prioritizing operations, watersheds and communities in Türkiye In Türkiye, we identified an operating facility located in a water- stressed area as a priority facility (Leadership Location) in the city of Bursa in the north-west of the country. The facility is owned and operated by our bottling partner Coca-Cola İçecek. Further, we identified the Bursa/Balikesir watershed as a priority because it not only serves as a water source for our facility but also because it supports the growing of apples, peaches and nectarines that we source as ingredients in our products. In addition, we identified seven farming villages in the same province as priority communities, based on their location in ingredient sourcing and key market growth regions. The watershed faces high levels of water scarcity and pollution of water sources from local industries, including textiles and agriculture (e.g., use of insecticides).",26,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +85,nestle.pdf,"The watershed faces high levels of water scarcity and pollution of water sources from local industries, including textiles and agriculture (e.g., use of insecticides). Rural farming communities have relatively low levels of access to clean water. The operating facility is driving water efficiency improvements by conducting a gap assessment against the Coca-Cola system’s Water Resource Sustainability Standard compliance process and working with a third-party consultancy to screen options for improving water efficiency in our operations. We developed a watershed stewardship plan which includes supporting farmers to improve irrigation efficiency and reduce water contamination, reforestation efforts to help filter water pollution and regulate precipitation and evaporation flows, and helping communities to install rainwater harvesting systems. In this way we are working to help improve water security by focusing on actions we can take both within and outside our operations to help improve water efficiency and watershed health as well as support local communities and farmers through interventions that are relevant to the local context. See the Sustainable Agriculture section for more details on how we are supporting farmers to improve water management in growing our ingredients in this region.",26,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.8 " +86,nestle.pdf,See the Sustainable Agriculture section for more details on how we are supporting farmers to improve water management in growing our ingredients in this region. Bursa SEA OF MARMARA BURSA/BALIKESIR WATERSHED Simav Emet Orhaneli Nilüfer Lake Ulubat Lake Iznik Lake Manyas Koca Bursa SEA OF MARMARA BURSA/BALIKESIR WATERSHED Simav Emet Orhaneli Nilüfer Lake Ulubat Lake Iznik Lake Manyas Koca TÜRKIYE 1 Operating Facility 4 Orchards 7 Farming Villages,26,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +87,nestle.pdf,"27THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY All our production operations will continue to implement the Coca-Cola system’s Water Resource Sustainability Standard. The purpose of this standard is to identify and reduce water quality- and quantity-related challenges for our operations. To decrease water use in our operations, we use internal tools such as the Water Efficiency Catalogue, which assesses technical standards (e.g., on-line flow monitoring, water collection and reuse capabilities) and team culture (e.g., training and communication on the importance of water efficiency) regarding water efficiency in our production facilities and provides innovative best practices (e.g., water reuse for package rinsing and water-free lubrication of conveyor belts). In the development of new plants, we leverage our Sustainability by Design Tool to ensure that water-efficient processes are implemented and that we achieve best-in-class water efficiency . We have set an ambitious target to reduce our water use ratio by 20% by 2030 from a 2015 baseline for all operations across the system.",27,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +88,nestle.pdf,"We have set an ambitious target to reduce our water use ratio by 20% by 2030 from a 2015 baseline for all operations across the system. We are focused on water efficiency improvements in Leadership Locations and Advanced Efficiency Locations that operate in water-stressed contexts, which has resulted in a water use ratio of 1.79 liters of water used per liter of beverage in 2022. This is our highest achievement in water efficiency to date and significantly better than the industry average for carbonated soft drinks of 1.91 l/l of beverages. 1 CostofW ater We have partnered with denkstatt to develop a “Cost of Water” tool for our teams. This tool will help us get a better understanding of the cost of water by evaluating the costs associated with potential water risks in addition to the operational costs associated with water use. Better understanding of these costs will help strengthen decision making and the business case for investment in initiatives that respond to local challenges. In 2022, we also worked with Bluerisk and Valuing Impact and a number of peer companies to better understand how projects returning water to communities and nature help create societal value.",27,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +89,nestle.pdf,"In 2022, we also worked with Bluerisk and Valuing Impact and a number of peer companies to better understand how projects returning water to communities and nature help create societal value. Across the 22 projects analyzed, we learned that these projects not only generated 210 million cubic meters of volumetric water benefits, but also delivered $39 million in societal value, with an average societal return on investment (SROI) of 3.9. We have a goal to achieve 100% regenerative water use in all our 175 Leadership Locations globally by 2030. In 2022, we included progress against water replenishment in Leadership Locations as a metric for the Long-Term Incentive (L TI) plan for our executive leadership team. Over the past year, our Talent and Compensation Committee approved the inclusion of a metric related to water replenishment in Leadership Locations in line with the goals of our 2030 Water Security Strategy.",27,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +90,nestle.pdf,"Over the past year, our Talent and Compensation Committee approved the inclusion of a metric related to water replenishment in Leadership Locations in line with the goals of our 2030 Water Security Strategy. 1 2021 BIER (Beverage Industry Environmental Roundtable) Benchmarking report REDUCING WATER CHALLENGES IN OUR OPERATIONS IMPROVING WATERSHED HEALTH Water Stewardship  in  ConcentratePlants Within our 18 concentrate production plants, which produce the concentrates used to make many of our sparkling beverages, the company has committed to driving water efficiency improvements. In 2022, we achieved a 7% average water efficiency improvement across all our concentrate plants compared to a 2015 baseline. These facilities have worked as a network to review and assess the implementation of best practices and governance of water use, known as “Water Efficiency Maturity Assessments.” As an example, in 2022, one of our concentrate plants in Ireland reduced its water consumption by more than 13,000 cubic meters compared to the previous year by implementing circular washing in its clean-in-place process.",27,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +91,nestle.pdf,"A monitor-to- improve mindset in our local team is also key to achieving and sustaining this level of performance. As a member of the Alliance for Water Stewardship (AWS), we are proud to be a part of a global movement to advance good water stewardship practices. The AWS certification confirms that the highest global standard for responsible water stewardship has been met in support of social, cultural, environmental and economic benefits at both the site and catchment level. We plan to certify all our 18 concentrate production sites against the latest AWS Standard by 2025. Wehavecontinuedt o  improve the  efficiency of ourw ater use. 10% IMPROVEMENT in water efficiency across all system operations compared to 2015. In 2022, The Coca-Cola Foundation provided support to Ceres for the Valuing Water Finance Initiative to drive investor leadership on valuing water and to broaden investors’ perspective on the role that water plays in many industries’ value chains.",27,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +92,nestle.pdf,"WatershedStewardshipPlans MEXICO In Chihuahua, Mexico, we partnered with The Nature Conservancy, a global environmental nonprofit organization, to develop a watershed stewardship plan for the Lago Bustillo y de los Mexicanos watershed. It was identified as a priority watershed because it supplies water to a manufacturing facility owned by our bottling partner Corporación del Fuerte, which is a Leadership Location. In addition, the watershed includes orchards from which the system sources apples. The agricultural sector and the city of Cuauhtémoc are major water users. The watershed is forecasted to face increasing water quality and quantity challenges in the coming years due to population growth and rising temperatures. With funding from Fundación Coca-Cola Mexico, our projects in this watershed have helped to improve rural communities’ access to water, mainly through rainwater harvesting systems and check dams. The watershed stewardship plan completed in 2022 helped identify key context-specific interventions to consider for future projects including, reforestation, rainwater harvesting, dams, plant nurseries, conservation of springs and community access to WASH, as well as the need to strengthen local partnerships.",27,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +93,nestle.pdf,"These plans will also help us to track improvements in watershed health and co- benefits of projects (e.g., enhanced biodiversity and carbon sequestration). One project currently in the pipeline is working with an agri-tech partner, Kilimo, to help local farmers save water by adopting technology-enabled irrigation management tools. READ MORE ABOUT OUR WORK TO IMPROVE WATERSHED HEALTH IN PAKISTAN Developing watershed stewardship plans at the catchment-scale is critical to helping water users in a particular region identify and address the drivers of water risk. Working with partners to implement solutions, stakeholders can take an effective science- based approach to improve water resilience for both people and nature.” ALEJANDRA LÓPEZ RODRÍGUEZ Director, The Nature Conservancy Mexico Water Program Community members transport materials for the construction of water storage tanks",27,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +94,nestle.pdf,"28THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY Protecting watersheds and recognizing the unique challenges and characteristics of water sources around the world has long been a focus of our work. Watersheds supply water for drinking, agriculture and manufacturing; provide habitat for plants and animals; and offer opportunities for recreation. Based on our 2030 Water Security Strategy, we are placing even greater emphasis on the holistic improvement of watershed health. We set a goal to improve watershed health in 60 watersheds identified as most critical for our operations and agricultural supply chain by 2030. OUR AGRICULTURAL WATER FOOTPRINT Producing the ingredients used in our beverages accounts for an estimated 92% of our total blue water 1 footprint, which is the volume of surface water and groundwater consumed in producing our finished products (evaporated or embedded in the product).",28,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +95,nestle.pdf,"That’s why, in 2022, we expanded our analysis and prioritization to include watersheds that support our priority ingredient sourcing, in addition to our operating facilities and those necessary for key market growth. IMPROVING WATERSHED HEALTH (continued) 1 Sour ce: Water Footprint Network. 5 1 3 2 4 7 6 8 9 USA: – Riparian habitat restoration – Invasive species removal – Wet meadow restoration – Reforestation – Floodplain reconnection – Beaver dam analogs – Community rain barrel distribution – Native prairie protection – Tallgrass prairie restoration – Stream channel restoration NORTH AMERICA 1 Brazil: Ecological restoration Mexico: – Reforestation – Infiltration trenches for groundwater replenishment Peru: Forest protection LATIN AMERICA 2 Austria: Soda lake protection Bulgaria: Wetland restoration and protection Croatia/Serbia: – Oxbow restoration – Wetland restoration and floodplain reconnection Hungary: – Oxbow restoration – Floodplain restoration  Italy: Irrigation efficiency improvement Romania: Floodplain wetland restoration Spain: – Wetland restoration –",28,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +96,nestle.pdf,reconnection Hungary: – Oxbow restoration – Floodplain restoration  Italy: Irrigation efficiency improvement Romania: Floodplain wetland restoration Spain: – Wetland restoration – Irrigation system improvements EUROPE 3 Egypt: Soil improvement to reduce irrigation demand South Africa: Invasive species removal AFRICA 4 India: Check dams for groundwater recharge India/Nepal: Rainwater harvesting and aquifer recharge INDIA & SOUTHWEST ASIA China: Wetland water level management GREATER CHINA & MONGOLIA Japan: Forest protection JAPAN & SOUTH KOREA Indonesia: Infiltration wells for aquifer recharge Thailand: Check dams and water supply for agriculture Vietnam: Floodwater retention ASEAN & SOUTH PACIFIC 6 Türkiye: Sustainable agricultural practices Pakistan: Community water treatment EURASIA & MIDDLE EAST 5 7 8 9 ExamplesofW atershed  Projects  in  PriorityW atersheds Many projects have multiple locations. The Coca-Cola Foundation and the Coca-Cola system have a long history of watershed projects.,28,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +97,nestle.pdf,"atershed  Projects  in  PriorityW atersheds Many projects have multiple locations. The Coca-Cola Foundation and the Coca-Cola system have a long history of watershed projects. A selection of these projects is shown below. These projects include support for nature-based solutions such as reforestation, wetland and meadow restoration, as well as irrigation system improvements, invasive species removal and check dam construction. Many of the projects work in agricultural contexts to improve availability of water for irrigation and more efficiently use water in agriculture. Water Quality We’re working with several partners, including the World Resources Institute (WRI) and The Nature Conservancy, to develop a Water Quality Benefit Accounting (WQBA) methodology that seeks to provide guidance on identifying shared water quality challenges, activity selection, and recommended water quality indicators and benefit calculation methods.",28,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +98,nestle.pdf,"29THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY We adopt a human-rights based approach to water and communities. We recognize the connection between our social license to operate and functional, resilient water infrastructure. Insufficient access to water, sanitation and hygiene (WASH) infrastructure and poor water quality are key challenges faced by communities around the world. These challenges are being exacerbated by population growth, climate change, political conflict and forced migration. For more than a decade, The Coca-Cola Company has established strong leadership in community water programs with the support of The Coca-Cola Foundation and many nonprofits, governments, customers and other partners. We are updating our reporting methodology for our community water programming data to align with our 2030 Water Security Strategy and upcoming external frameworks, and we will apply it to future data reporting when ready. In 2022, our operating units began the identification of priority communities based on communities’ access to WASH and/or their resilience to the impacts of climate change (e.g., floods and droughts).",29,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +99,nestle.pdf,"In 2022, our operating units began the identification of priority communities based on communities’ access to WASH and/or their resilience to the impacts of climate change (e.g., floods and droughts). We aim to support our priority communities in addressing shared water challenges by identifying and implementing interventions focused on: 1. Impr oving access to safe drinking water, sanitation and hygiene. 2. E nabling adaptation to water-related climate change impacts. 3. E nsuring rapid recovery from crises. TheCo-BenefitsofW ASH A ccess We’re working with WASH4Work, an initiative hosted by the CEO Water Mandate, to develop a standardized methodology of accounting for the co-benefits of WASH projects (e.g., health, income, nutrition, safety and security, and education) and strengthen the business case for investments in WASH programs. INTEGRATING GENDER INTO WASH PROGRAMS Gender has always been a core focus for our WASH programs because we know that women and girls suffer disproportionately from poor access to clean water, sanitation and hygiene.",29,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +100,nestle.pdf,"INTEGRATING GENDER INTO WASH PROGRAMS Gender has always been a core focus for our WASH programs because we know that women and girls suffer disproportionately from poor access to clean water, sanitation and hygiene. In 2018, The Coca-Cola Foundation partnered with Global Water Challenge (GWC), USAID and Ipsos through the Water and Development Alliance (WADA) on a study across three countries in Africa—Nigeria, Rwanda, and Eswatini—of the impact of improved WASH on women’s empowerment. This “Ripple Effect” study found that improved WASH had positive impacts on a number of important facets of women’s lives including time savings. The research established that of women who utilized time savings for economic activities, 91% saw an increase in income. Providing women with greater economic opportunity helps build resilience in their families and communities. In 2022, we were pleased to build on this work and help develop, along with WaterAid and Diageo, practical guidance to help companies and their implementing partners turn strategic commitments on community WASH and gender equality into integrated projects that result in better, more sustainable outcomes which are critical parts of the pathway to gender equality and women’s empowerment.",29,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +101,nestle.pdf,"Aliadospor el A gua  (Allies  forW ater) In Latin America and the Caribbean, 25% of the population lack access to safely managed drinking water services.1 Climate change, urbanization, accelerated water usage, and inadequate infrastructure are among the leading causes. In response to this, Coca-Cola Latin America, in alliance with the Global Environment Technology Foundation (GETF) and local civil society organizations, designed and launched a platform called Aliados por el Agua (Aliados) to help improve access to water, sanitation and hygiene (WASH) for 2 million people across 18 countries by 2030. In 2022, Aliados implemented more than 30 projects across 12 countries, in partnership with 26 civil society organizations, as well as local municipalities, utility providers and communities, and funding from The Coca-Cola Foundation. In addition, Coca-Cola Latin America partnered with Global Water Challenge and its women for water platform to develop theW omen  forW ater Framework forA ction—which is based on the Ripple Effect Study—and helps to integrate gender and women’s empowerment into the Aliados por el Agua platform by focusing projects on three key areas: income generation, health and wellbeing, and resilience.",29,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +102,nestle.pdf,"With our partners and support from The Coca-Cola Foundation, we are piloting the framework across four projects in Mexico, Bolivia and Brazil to empower women through water-related programming. BUILDING COMMUNITIES’ WATER RESILIENCE CollectiveA ction The shared nature of water resources requires collective action to help solve water challenges.",29,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +103,nestle.pdf,"BUILDING COMMUNITIES’ WATER RESILIENCE CollectiveA ction The shared nature of water resources requires collective action to help solve water challenges. Some of our key partnerships are with: • 2030 Water Resources Group, hosted by the World Bank • Allianc e for Water Stewardship (AWS) • CE O Water Mandate, a partnership between the UN Global Compact and the Pacific Institute • denk statt • Gl obal Water Challenge • Scienc e Based Targets Network (SBTN) • The Na ture Conservancy • The Water Resilience Coalition, an initiative of the CEO Water Mandate • W ASH4Work, an initiative hosted by the CEO Water Mandate • W aterAid • W orld Wildlife Fund (WWF) 1 Sour ce: https://www.unwater.org/sites/default/files/app/ uploads/2021/07/jmp-2021-wash-households-LAUNCH- VERSION.pdf Recognition In 2022 the Company scored an “A–” on Water, which indicates a strong water security strategy and best-in-class governance, including tying executive compensation to our water replenish targets. For details, read our 2022 CDP Water Response.",29,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +104,nestle.pdf,"For details, read our 2022 CDP Water Response. Our bottling partner Coca-Cola Europacific Partners (CCEP) was recognized with the highest score of A, while Swire Coca-Cola Limited, Coca-Cola HBC and Coca-Cola Bottlers Japan Inc. (CCBJI) received a score of A–. Our smartwater brand, in partnership with Global Water Challenge and its women for water platform, launched smartsolutions: globalw ater  challenge, a grant program in 2022 to support non-profits to improve communities’ access to WASH, improve watershed health and empower women through water-based activities. Read more. READ MORE ABOUT OUR APPROACH TO STAKEHOLDER ENGAGEMENT AND PARTNERSHIPS",29,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +105,nestle.pdf,"30THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY SPOTLIGHT: INVESTING IN NATURE-BASED SOLUTIONS 1 Sour ce: WWF-Philippines | Ipo Watershed Recognizing that nature itself often offers the best mechanisms for restoring watershed health, the company, The Coca-Cola Foundation and our bottling partners invest in nature-based solutions (NBS), such as forest protection and floodplain management, which build on natural processes to manage water systems. Through our work, we have learned that NBS projects often have multiple co-benefits, such as better water quality, carbon sequestration, increased climate resilience, and enhanced richness and variety of life of natural habitats (biodiversity). We worked with denkstatt to develop a methodology to help us quantify and test the co- benefits of NBS projects.",30,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +106,nestle.pdf,"We worked with denkstatt to develop a methodology to help us quantify and test the co- benefits of NBS projects. In 2022, we partnered with the CEO Water Mandate, denkstatt and others to help build the business case for NBS by developing a standardized methodology to measure benefit accrual and a means to value social return on investment. The methodology has been tested across several of our water replenishment projects in key geographies. This valuation methodology supports the broader Benefit Accounting of Nature-Based Solutions for Watersheds project, including The NBS Benefits Explorer tool, led by the Pacific Institute and CEO Water Mandate, in partnership with The Nature Conservancy and LimnoTech. Our aim is to support public, private and non-profit sectors in developing effective policies and programs to incentivize greater implementation of and investment in NBS because water is at the nexus of many goals, including protecting habitats, increasing biodiversity, sequestering carbon and promoting community resilience in the face of changing weather patterns.",30,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +107,nestle.pdf,"ReforestationHelpsRestoreW atershed  Health  inthe  Philippines The Ipo Watershed in Bulacan in the Philippines supplies water to Metro Manila, the second most populous region of the country. Forest cover within the watershed has dramatically dropped from 85% to just 40% in recent years1 due to illegal logging and unsustainable forest practices, which has resulted in a reduction in the natural water storage capacity of the basin. Malnutrition is also a pervasive challenge in local communities. Since 2016, The Coca-Cola Foundation and Coca-Cola Foundation Philippines have worked in partnership with WWF-Philippines to protect rainforests of the area, replant trees and provide livelihood opportunities. The project has reforested 165 hectares of degraded land in the watershed and supported local communities to start household gardens to grow food. In 2022 the project was assessed using the NBS valuation methodology. Overall, the project provided a very positive return on social investment and its specific co-benefits included: • WATERQUANTITY: The replenishment of approximately 400 million liters of water per year due to decreased runoff and improved water access for local communities.",30,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +108,nestle.pdf,"• CARBONSEQUESTRATION: Approximately 2,500 metric tons of CO2e per year from reforestation. • FOODSUPPLY: Household gardens helped to tackle food insecurity and some of the trees planted have edible fruits (e.g., rambutan, coffee). In order to achieve large-scale impact globally, we partner with governments, NGOs, communities and other companies. We share resources to increase all our efforts and to generate a bigger impact. We encourage others to join us.” MADHU RAJESH Senior Director–Water & Agriculture, The Coca-Cola Company",30,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +109,nestle.pdf,"31THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY TRADEMARK COCA-COLA SPARKLING FLAVORS WATER, SPORTS, COFFEE AND TEA JUICE, VALUE-ADDED DAIRY AND PLANT-BASED BEVERAGES EMERGING Portfolio: Beverages for All We currently offer ~200 master brands worldwide in five beverage categories: Major Milestone  for fairlife  In 2022, fairlife became our first-ever $1 billion dairy brand. Over the last decade, fairlife—now available in the United States and Canada—has focused on innovation and providing consumers with high-quality nutrition through a growing portfolio of value-added dairy products, including ultra-filtered, lactose- free milks; protein shakes; and sports recovery drinks. This builds on beverages available in other markets in the juice, value-added dairy and plant-based beverages category, such as AdeS, Chi, Santa Clara, Toni and Nutriboost.",31,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +110,nestle.pdf,"This builds on beverages available in other markets in the juice, value-added dairy and plant-based beverages category, such as AdeS, Chi, Santa Clara, Toni and Nutriboost. As a total beverage company, we are committed to offering people more of the drink choices they want across a range of categories and in a variety of packages. Ever-evolving consumer tastes and preferences help steer our business strategy and shape the lineup of beverages we bring to market. We take a disciplined approach to product innovation and portfolio management, ensuring we develop and deliver preferred, great-tasting beverages for all occasions and lifestyles. This includes offering drinks with reduced added sugar and more brands with nutrition and wellness benefits; providing small package options and clear nutrition information on packaging and in our communications; and marketing our drinks responsibly. SECTIONSCOPE: In this section our Portfolio work refers to actions by the company as well as our owned and independent bottling partners and our independent suppliers and partners.",31,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +111,nestle.pdf,"32THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY LESS SUGAR, MORE CHOICES 1 Sour ce: Nielsen IQ, U.S. All Measured Channels, 2022 full year We support the recommendations of leading health authorities that individuals should consume less than 10% of their total calories from added sugar. That’s why, from 2017–2022, we removed more than 900,000 tons of added sugar from our global portfolio through more than 1,000 beverage reformulations. We support more than 50 calorie and sugar reduction pledges globally, in collaboration with industry peers. In 2022, we joined an updated industry-wide pledge in Australia to reduce the sugar content in our portfolio by 25% by 2025. In Kazakhstan, we are among nine members of the national beverage association to sign an industry pledge to reduce average added sugar in our drinks by 10% by the end of 2026.",32,"[Guess]: No +[Confidence]: 1.0 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +112,nestle.pdf,"In Kazakhstan, we are among nine members of the national beverage association to sign an industry pledge to reduce average added sugar in our drinks by 10% by the end of 2026. And we support guidelines released by the Health Ministry of Türkiye and Federation of Food and Drink Industry Associations of Türkiye to reduce sugar in nonalcoholic beverages and certain food categories by 10% by 2025. In Europe, we are leading the soft drinks industry in voluntarily committing to sugar reduction. Together with peers through the industry association UNESDA Soft Drinks Europe, we have reduced average added sugars in soft drinks by 28.6% across the European Union and United Kingdom since 2000. In June 2021, as part of the EU Code of Conduct for Responsible Food Business and Marketing Practices, we joined a UNESDA Soft Drinks Europe pledge to reduce the sugar in our drinks by an additional 10% by 2025, which will represent a 33% average sugar reduction when completed by 2025 compared to 2000. The European soft drinks sector is the only sector to have made an additional sugar reduction commitment under the EU Code of Conduct.",32,"[Guess]: No +[Confidence]: 1.0 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +113,nestle.pdf,"The European soft drinks sector is the only sector to have made an additional sugar reduction commitment under the EU Code of Conduct. EUROPE By 2025, we aim for 50% of the drinks we sell in Europe to be low- and no-calorie drinks (we’re currently at 45%) in support of the EU Commission’s Farm-to-Fork strategy to accelerate the transition to sustainable food systems. UNITED STATES We’re offering more low- and no- calorie options in more places. For example, 99.7% of U.S. outlets carry our low- and zero-sugar SKUs—and, on average, 24 zero-sugar sparkling soft drink SKUs are found per store.",32,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +114,nestle.pdf,"For example, 99.7% of U.S. outlets carry our low- and zero-sugar SKUs—and, on average, 24 zero-sugar sparkling soft drink SKUs are found per store. 1 900,000+ tons of added sugar removed from our global portfolio cumulatively through efforts to reformulate more than 1,000 beverages from 2017–2022 19 OF TOP 20 brands are reduced-sugar or zero-sugar, or have a reduced-sugar or zero-sugar option ~1,400 tons of added sugar removed on an annualized basis through recipe changes in 2022 ~68% of the products in our beverage portfolio have less than 100 calories per 12-ounce serving 12 recipe changes to reduce added sugar in 2022 29% of our volume sold in 2022 was low- or no-calorie 246 low- or no-sugar products launched in 2022",32,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +115,nestle.pdf,"33THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY FLAVOR BREAKTHROUGHS Several of our core brands took creative approaches to promoting zero-calorie choices to younger consumers in 2022 through flavor innovations, packaging designs and digital experiences. The global Coca- Cola Creations platform introduced a series of limited-edition offerings inspired by consumer passion points of music, gaming and sports—starting with the outer space-inspired Coca-Cola Starlight, which offered fans a taste of outer space. In the United States, a limited-edition lineup of mysteriously flavored Fanta beverages was anchored by a zero-sugar option. SWEETENER INNOVATION One of the ways we achieve great taste without sugar is by using low- and no-calorie sweeteners. We only use sugar alternatives that have been thoroughly tested through scientific studies and confirmed as safe by globally recognized food safety authorities, including the U.S.",33,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +116,nestle.pdf,"We only use sugar alternatives that have been thoroughly tested through scientific studies and confirmed as safe by globally recognized food safety authorities, including the U.S. Food and Drug Administration (FDA), the European Food Safety Authority (EFSA) and F ood Standards Australia and New Zealand (FSANZ). When used as part of a healthy diet and lifestyle, we believe the science shows that sugar alternatives can help meet public health recommendations to reduce added sugar. Additionally, food additives such as non-sugar sweeteners help make food systems more sustainable by both reducing sugar and lowering our carbon emissions. Our recent efforts have focused on collaborating with an ecosystem of suppliers and research organizations to develop, continuously improve and commercially scale stevia and other naturally derived sugar alternatives. A global list of more than 70 published journal articles dating back to 2008, reflecting research we have directly funded or authored, can be found on our website. We continue to use our marketing to drive growth of our low- and no-calorie portfolio. Coca-Cola Zero Sugar has delivered double- digit volume growth in five of the last six years.",33,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +117,nestle.pdf,"We continue to use our marketing to drive growth of our low- and no-calorie portfolio. Coca-Cola Zero Sugar has delivered double- digit volume growth in five of the last six years. In 2022, several leading low- and no-calorie brands in North America launched consumer campaigns with celebrity partners and sponsorship assets: SpriteZeroSugar teamed up with Marvel Studios’ Black Panther: Wakanda Forever for the “Infinite Potential. Zero Limits” campaign. Read more. Coca-ColaZeroSugartook center court during the 2022 Men’s and Women’s NCAA College Basketball Final Four tournaments in the United States with March Madness-themed “Best Coke Ever?” ads showcasing the brand’s reformulated taste. Read more. smartwater and global ambassador Zendaya, an acclaimed actor and performer, celebrated those who define “smart” on their own terms. Together, smartwater and Zendaya are also helping address the water crisis in communities across the world by partnering with the Global Water Challenge’s women for water platform, which focuses on mobilizing clean water access for every woman and her community. Read more.",33,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +118,nestle.pdf,"Read more. vitaminwatertapped global superstar Lil Nas X for the “Nourish Every You” campaign encouraging self-expression and self-care. Read more. Simply and actor/comedian Eugene Cordero invited consumers to “Say Yes to Simple” in a new campaign showcasing the brand’s fast- growing lineup of juices, ades, plant-based milk alternatives, smoothies and more. Read more. GoldPeak ready-to-drink tea collaborated with Grammy- and Oscar-winning artist Questlove on the “Tea is for Trying” campaign. Read more. PortfolioMarketing Since 2008, we have invested more than $100 million in sweetener innovation and sugar reduction research.",33,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +119,nestle.pdf,"34THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY 34THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT We’re bringing teas, juices, waters, and dairy and plant-based beverages to more people in more places. Some of these beverages are enhanced by fortifying them with vitamins and minerals. NUTRITION AND WELLNESS BENEFITS Chun Yue launched as first-ever functional soda water in China, with added vitamins and minerals. Two zero-sugar, zero- calorie options offer a slightly sweet, fruity taste. They are also fortified with niacin or zinc. Minute Maid sparkling juice gives consumers in China a zero-sugar option made with real fruit juice and refreshing bubbles, along with B3 vitamins and zinc to supplement nutritional needs. Fuze Tea launched in Pakistan in two flavors— lemon and peach. The innovative brand is a fusion of reinvigorating tea extract from 100% sustainably sourced tea leaves and fruit flavors.",34,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +120,nestle.pdf,"The innovative brand is a fusion of reinvigorating tea extract from 100% sustainably sourced tea leaves and fruit flavors. Cappy Immunity Support is a wellness beverage in Europe powered by fruit multi-blends (orange, carrot and peach mix) along with vitamins C and B12, and zinc. Minute Maid Honey Infused ready-to-drink fruit drinks in India contain added dietary fiber to support healthy digestion. The new preservative-free line is available in three delicious flavors: apple, mixed fruit and guava. Nutriboost flavored milks have calcium, vitamin D and no added sugar. fairlife Core Power Elite contains 42g of high- quality protein to help build muscle and replenish, repair and rebuild. It is available in North America in three flavors: chocolate, strawberry and vanilla.",34,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +121,nestle.pdf,"CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY Our commitment to offering more consumer choice includes our expansion into the fast- growing alcohol ready-to-drink (ARTD) market. In 2022, we launched Jack Daniel’s & Coca-Cola in Mexico, with more markets to follow in 2023 through our relationship with Brown-Forman. Jack Daniel’s & Coca-Cola joins our growing portfolio of ARTD offerings including Lemon-Dou, Topo Chico Hard Seltzer and Schweppes Pre-Mixed Cocktails. In the United States, we authorize third parties to produce and sell Topo Chico Hard Seltzer, Simply Spiked Lemonade and Fresca Mixed. We take the new responsibilities that come with our entry in this space very seriously. Recognizing the risks associated with alcohol consumption, we created guardrails outlined in our Global Policy on Alcohol Responsibility to ensure we grow our alcohol brands in a responsible and sustainable way. The policy articulates our commitment to: 1. E nsure the responsible marketing of our alcohol brands; 2.",35,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +122,nestle.pdf,"The policy articulates our commitment to: 1. E nsure the responsible marketing of our alcohol brands; 2. Support local responsible consumption partnerships and communications programs to help reduce the harmful use of alcohol; 3. Provide tools and information to enable people to make informed choices; and 4. Enable our employees and partners to be ambassadors for responsible consumption. Our responsible alcohol marketing policy determines how we innovate and bring to market ARTD brands. This policy has been reviewed by the World Federation of Advertisers and endorsed by the International Alliance for Responsible Drinking. At the heart of our approach is ensuring that our alcohol brands are only directed at adults over the legal purchasing age who choose to drink, and encouraging only drinking in moderation. This means our brands will never be directed to minors below the legal purchasing age. We run regular trainings for our people and our partners, and always apply the appropriate safeguards across all channels of communications and sales. In 2022, we joined the International Alliance for Responsible Drinking (IARD), a consortium of leading beer, wine and spirits producers committed to reducing harmful drinking and promoting moderation through robust responsibility standards.",35,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +123,nestle.pdf,"In 2022, we joined the International Alliance for Responsible Drinking (IARD), a consortium of leading beer, wine and spirits producers committed to reducing harmful drinking and promoting moderation through robust responsibility standards. In Brazil, we are working with three NGO partners on the Pega Leve (“Take it Easy”) program, which promotes moderation by communicating the risks of drinking and driving and excessive consumption, with a focus on 18- to 29-year-olds. The Coca-Cola Company is also a member of Drinkwise in Australia and Drinkaware in the United Kingdom and the Republic of Ireland, which are independent not-for- profit organizations that work with partners and members to reduce alcohol-related harm in those countries. 35 THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT MORE INFORMATION FOR MORE INFORMED DECISIONS We are committed to providing transparent nutrition information about all of our products, in line with local regulations, so consumers can make informed decisions. We were the first beverage company to place calorie information on the front of nearly all our packaging worldwide. Today, we provide nutrition information on product labels, with the exception of certain returnable bottles, fountain beverages and waters (unsweetened, unflavored).",35,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +124,nestle.pdf,"Today, we provide nutrition information on product labels, with the exception of certain returnable bottles, fountain beverages and waters (unsweetened, unflavored). For these beverage and packaging types, we offer nutrition information through websites and consumer hotlines. RESPONSIBLE MARKETING We respect the role of parents and caregivers as the primary decision-makers for what their children drink, and we do not market any of our products directly to children under 13, regardless of nutritional profile. Effective January 1, 2022, we raised the age threshold from under 12 to under 13 and reduced the audience threshold from 35% to 30%. This means we will not place our marketing or advertising in any media, platform or event where more than 30% of the audience is under 13. Our policy goes beyond media and includes packaging, in-store and point of sale. Our approach is consistent with the International Chamber of Commerce Marketing & Advertising Code and its Framework for Responsible Food and Beverage Marketing Communication. We hold everyone involved in our marketing and communications accountable to our Global Responsible Marketing Policy, from employees and bottling partners to agency and media partners.",35,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +125,nestle.pdf,"We hold everyone involved in our marketing and communications accountable to our Global Responsible Marketing Policy, from employees and bottling partners to agency and media partners. We are a founding member of the International Food & Beverage Alliance (IFBA), a group of leading companies that self-regulate globally on responsible marketing to children. Additionally, we collaborate with industry peers at regional and local levels to scale collective action in responsible marketing pledge programs. SMALLER PACKAGING People can enjoy our drinks in sizes that help control portions and added sugar intake. These include 7.5-oz. mini cans and 8-oz. glass bottles in many markets. We continue to expand availability of these packages and introduce newer offerings, including 150-ml mini cans and 250-ml slim cans, so people can enjoy the same great tastes in sizes that are right for them. In 2022, we kicked off a pilot of a Coca-Cola Freestyle compact fountain dispenser at on-the- go and at-work locations in France, Belgium, Great Britain and the Netherlands. In addition to giving consumers an expanded array of personalized, on-demand beverage choices—including low- and no-calorie options—the innovation helps reduce our carbon and packaging footprints.",35,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +126,nestle.pdf,"In addition to giving consumers an expanded array of personalized, on-demand beverage choices—including low- and no-calorie options—the innovation helps reduce our carbon and packaging footprints. ResponsibleGrowthIntoA lcohol Today, about 44% of our sparkling soft drink brands come in packages of 8.5 ounces or less. In North America, 10-pack mini cans grew 39% in 2022.",35,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +127,nestle.pdf,"SECTIONSCOPE: In this section, our packaging strategy refers to actions by the company as well as our owned and independent bottling partners and our independent suppliers and partners. Packaging WORKING TOWARD A WORLD WITHOUT WASTE We recognize our responsibility to help solve complex plastic waste challenges facing our planet and society. That’s why, in 2018, we launched an ambitious strategy called World Without Waste to drive systemic change through a circular economy for our packaging. World Without Waste is a global sustainable packaging platform focused on measurable and interconnected goals, each of which are supported by additional targets: • M aking 100% of our packaging recyclable globally by 2025—and using at least 50% recycled material in our packaging by 2030 (DESIGN); • C ollecting and recycling a bottle or can for each one we sell by 2030 (COLLECT); • B ringing people together to support a healthy, debris-free environment (PARTNER).",36,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +128,nestle.pdf,"36THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY IN 2022, WE ANNOUNCED A NEW GLOBAL REUSABLE PACKAGING GOAL. BY 2030, WE AIM TO HAVE AT LEAST 25% OF OUR BEVERAGES SOLD BY VOLUME WORLDWIDE IN REFILLABLE/ RETURNABLE GLASS OR PLASTIC BOTTLES OR IN FOUNTAIN DISPENSERS WITH REUSABLE PACKAGING ONE OF OUR PACKAGING DESIGN GOALS IS TO REDUCE OUR USE OF VIRGIN PLASTIC DERIVED FROM NON-RENEWABLE SOURCES BY A CUMULATIVE 3M METRIC TONS BETWEEN 2020 AND 2025",36,"[Guess]: No +[Confidence]: 0.99 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +129,nestle.pdf,"37THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY We are making progress against each of our objectives, which are embedded in how we operate as a business, and we are taking a transparent approach to reporting our actions, results and learnings. Local teams are executing in ways appropriate for their markets, and we are using a networked approach to deliver impact at scale. Our work has also shown us where the major challenges are, and some of our markets will have challenges meeting goals as quickly as others. Because packaging accounts for approximately 30% of our carbon footprint, nearly all of our World Without Waste efforts align with our 2030 science-based climate target and net zero ambition. When we lightweight our packaging, incorporate more recycled and bio-based material, invest in local recycling programs and increase our use of reusable packaging, we can reduce both waste and our greenhouse gas (GHG) emissions.",37,"[Guess]: No +[Confidence]: 0.9","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +130,nestle.pdf,"When we lightweight our packaging, incorporate more recycled and bio-based material, invest in local recycling programs and increase our use of reusable packaging, we can reduce both waste and our greenhouse gas (GHG) emissions. WORLD WITHOUT WASTE: DESIGN Our Packaging  Portfolio We deliver our beverages in a variety of packaging formats—from glass and PET bottles, to aluminum cans, to refillable packaging. Just as we offer drink choices for a range of occasions, our packaging portfolio gives consumers multiple ways to enjoy our brands conveniently and safely. Since glass, aluminum and PET plastic are all recyclable materials, they all can play a role in a circular economy. Refillable packages, both glass and plastic, can have the lowest carbon footprints of our packaging options. PET packages with recycled content can have a lower carbon footprint than aluminum and glass, which require more energy to produce, recycle and transport. • In Scotland, Costa Limited (“Costa”) carried out a 14-store pilot of an on-the-go reusable cup scheme, which invited consumers to rent a cup by scanning a QR code before enjoying their drink and then returning the cup for it to be washed and reused.",37,"[Guess]: No +[Confidence]: 0.9 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +131,nestle.pdf,"The effort supports Costa’s global goal for 25% of its drinks to be served in reusable or refillable packaging by 2030. We tailor our refillable packaging approach by market, based on local conditions. In 2023, we launched an end-to-end refillables operations guide to help local teams implement more effective strategies and plans. Our Design goals establish a foundation for enabling a circular economy for our packaging materials. Creating a circular economy requires designing out waste by using, collecting and reusing recycled materials, which have inherent value. It also means embracing refillable and fountain/dispensed packaging solutions. REFILLABLE PACKAGING Reusable packaging can reduce single-use packaging waste. Expanding refillable packaging options helps ensure high levels of collection of beverage containers. In 2022, we were proud to announce an industry-leading goal to have at least 25% of our beverage volume worldwide sold in refillable/returnable glass or plastic bottles or in fountain dispensers with reusable packaging by 2030.",37,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +132,nestle.pdf,"We continue to test and scale returnable glass bottle (RGB) and reusable PET pilot programs, including: • In LatinAmerica, the “Let’s Be Different” campaign kicked off on World Environment Day 2022, inviting consumers to trade any recyclable PET bottle for a refillable bottle of Coca-Cola Zero Sugar. In Brazil, returnable, refillable PET bottles of Coca-Cola, Fanta and Sprite can be returned, cleaned and refilled up to 25 times. The package gives shoppers an affordable option and drives repurchase rates. • In France, a 250-ml returnable glass bottle (RGB) launched in hotels, restaurants and cafes for Fuze Tea, Tropico, Sprite, Fanta and Minute Maid. Additionally, Coca-Cola and Coca-Cola Zero Sugar are now offered in RGBs nationwide, eliminating more than 15 million single-use glass bottles in 2022. • In the UnitedStates, a 500-ml returnable glass bottle pilot program in approximately 100 retail and foodservice outlets in El Paso, Texas, generated a 75% return rate, and we are exploring expansion capabilities in 2023.",37,"[Guess]: No +[Confidence]: 0.9 +user","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +133,nestle.pdf,"We also are working with Reuse Seattle to reduce single-use plastic waste by encouraging customers to transition to reusable cups for our dispensed products, as part of a broader multi- stakeholder effort on foodservice packaging across the metro region. • In SouthA frica , we extended the rollout of refillable 2-liter and 1.5-liter PET plastic bottles. • In SriLanka, we responded to the ongoing economic crisis by introducing the Large Returnable Glass Bottle (LRGB), nicknamed the “Big Buddy Pack,” to provide an affordable and returnable, mealtime-focused option for families. Coca-Cola, Fanta and Sprite are offered in the 750-ml bottles, which feature paper labels and aluminum caps. • In Sweden, we are collaborating with Reitan Convenience on a reusable packaging pilot in Stockholm. Shoppers who visit the sustainability- focused PDX store can choose from more than 60 fountain beverages, many of which are not available in bottles or cans. Shoppers are encouraged to bring their own refillable vessels or purchase a reusable stainless steel tumbler.",37,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +134,nestle.pdf,"Shoppers are encouraged to bring their own refillable vessels or purchase a reusable stainless steel tumbler. • In HongKong,China, we have installed almost 100 Bonaqua Water Stations along hiking trails and in shopping malls and transportation hubs. Consumers pay a small fee to fill their own bottles with hot or cold Bonaqua water. DESIGN: GOALS 2022 STATUS Make 100% of our packaging recyclable globally by 2025 90% globally 1 90% Use at least 50% recycled content in our packaging by 2030 25% 2 recycled material in our packaging globally and 15% of PET used is recycled PET (rPET) 25% 15% Reduce our use of virgin plastic derived from non-renewable sources by a cumulative 3 million metric tons from 2020–2025 3 In 2022, we avoided around half a million metric tons of virgin plastic usage through our efforts on lightweighting and use of recycled content, with an incremental avoidance of over 50,000 metric tons since last year.",37,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +135,nestle.pdf,"However, growth of plastic packaging has outpaced efforts on lightweighting and use of recycled content, so that we have not reduced our use of virgin plastic overall By 2030, we aim to have at least 25% of our beverages worldwide by volume sold in refillable/ returnable glass or plastic bottles or in fountain dispensers with reusable packaging Approximately 14% of total beverage volume was served in reusable packaging in 2022 14% 1 Onl y recyclable where infrastructure exists. 2 Incl udes select primary consumer packaging materials. 3 R eduction measured from historical usage modeled with 2018–2020 data. Read more in the Data Appendix.",37,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +136,nestle.pdf,"38THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY FRANCE INFINEO, a JV between Coca-Cola Europacific Partners and PlastikPak JAPAN JAPAN FIGP, a JV between Ishizuka Glass Co., Ltd and Far Eastern New Century THE PHILIPPINES PETValue, a JV between Coca-Cola Beverages Philippines and Indorama Ventures INDONESIA Amandina, a JV between Coca-Cola Europacific Partners and Dynapack Asia HONG KONG, CHINA New Life Plastics, a JV between ALBA, Baguio and Swire Coca-Cola AUSTRALIA A JV between Coca-Cola Europacific Partners, Cleanaway Waste Management Ltd, Asahi Beverages and Pact Group AUSTRIA PET2PET, a JV between Coca-Cola Hellenic and several Austrian partners SOUTH AFRICA PETCO, a collaboration between Coca-Cola Africa,",38,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +137,nestle.pdf,"a JV between Coca-Cola Hellenic and several Austrian partners SOUTH AFRICA PETCO, a collaboration between Coca-Cola Africa, Coca-Cola Beverages Africa and several CPGs to finance PET collection MEXICO PetStar, a JV between Coca-Cola Mexico and ARCA Continental IMER, a JV between Coca-Cola Mexico, Coca-Cola FEMSA and Alpla Planeta, a JV between Coca-Cola FEMSA and Alpla VIRGIN PET REDUCTION In 2021, we set a goal to reduce our use of virgin plastic derived from nonrenewable sources by avoiding a cumulative 3 million metric tons by 2025 compared to 2020. We are pursuing this goal, which represents about 20% of our virgin plastic use, through more than 150 lightweighting projects and advancements on use of recycled and renewable materials. In 2022, we avoided around half a million metric tons of virgin plastic usage through these efforts with an incremental avoidance of over 50,000 metric tons since last year.",38,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +138,nestle.pdf,"In 2022, we avoided around half a million metric tons of virgin plastic usage through these efforts with an incremental avoidance of over 50,000 metric tons since last year. However, growth of plastic packaging has outpaced efforts on lightweighting and use of recycled content, so that we have not reduced our use of virgin plastic overall. MOVING TOWARD 100% rPET1 Demand for recycled PET plastic for food-grade applications currently exceeds supply, so we need to help build a sustainable pipeline of high-quality material. We work with communities to boost PET recycling and collection; collaborate with recycling partners; and secure rPET to help ensure material for our bottles is used again and again. In recent years, system partners and suppliers have announced significant investments, both individually and through joint ventures, to boost the global rPET infrastructure. Many investments are coming online in the next two years and will change the rPET landscape, particularly in Asia. We continue to work with industry peers to advocate for government regulations permitting the use of rPET in food and beverage packaging.",38,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +139,nestle.pdf,"We continue to work with industry peers to advocate for government regulations permitting the use of rPET in food and beverage packaging. Notable countries with food-grade recycled plastics acceptance standards for use in 1 Ex cept where otherwise indicated, where reference is made in this report to 100% Recycled PET, 100% rPET, or 100% Recycled Plastic Beverage Packaging, we are referring to the material from which the plastic bottle is made, not the cap and label. beverages now include Bahrain, Bangladesh, Indonesia, Kuwait, Nigeria, Oman, Qatar, Saudi Arabia, South Korea, Thailand and Yemen. Coca-Cola Beverages Philippines Inc. and Indorama Ventures—the world’s largest recycled PET flake producer—began operations at the new PETValue recycling facility. The country’s first bottle-to-bottle production site will process 2 billion clear PET plastic bottles into new bottles for Coca-Cola brands. Indorama Ventures will open a similar facility in Indonesia in 2023. Around the world, many of our biggest brands are taking major steps to support a circular economy for plastic packaging. More than 40 markets currently offer at least one brand in 100% rPET packaging.",38,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +140,nestle.pdf,"Around the world, many of our biggest brands are taking major steps to support a circular economy for plastic packaging. More than 40 markets currently offer at least one brand in 100% rPET packaging. A few highlights from 2022 include: • In the UnitedStatesandCanada, we recently began offering the majority of DASANI bottles— from 20-oz. and 1.5-liter singles to 10-oz. and 12-oz. multipacks—in 100% rPET plastic. The shift supports the DASANI brand's pledge to remove the equivalent of 2 billion virgin plastic bottles from production by 2027 compared to 2021 levels. The announcement followed the launch of 100% rPET bottles in New York, California and Texas, which also included Coca-Cola 20- oz. bottles. Bold, on-pack labels drive consumer awareness with “100% Recycled Bottle” and “Recycle Me Again” calls to action. • Eigh t markets in Europe ( Austria, Belgium, Iceland, Luxembourg, Netherlands, Norway, Sweden, Switzerland) offer their entire locally produced portfolios in 100% rPET.",38,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +141,nestle.pdf,"• Eigh t markets in Europe ( Austria, Belgium, Iceland, Luxembourg, Netherlands, Norway, Sweden, Switzerland) offer their entire locally produced portfolios in 100% rPET. • In Qatar, Coca-Cola, Sprite, Fanta and Arwa water were sold in 100% rPET bottles in FIFA World Cup 2022 stadiums and fan zones. This marked both the FIFA World Cup debut of the sustainable packaging format and the Middle East’s first 100% rPET rollout. Dedicated recycling bins and on-site communication ensured proper collection of all bottles to be recycled and converted locally back into new ones, closing the loop and leaving behind a green legacy. BuildingaGlobalrPET Supply Chain  Through joint ventures and long-term supplier agreements, our system is making strategic investments to boost recycling capacity, unlock new supplies of recycled plastic and scale new technologies. Active P lanned",38,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +142,nestle.pdf,"39THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY • In Vietnam, we launched 100% rPET Coca-Cola bottles, which is projected to avoid 2,000 metric tons of virgin plastic usage annually. • In Japan, we achieved our World Without Waste goal of 50% recycled material use in Q1 2022. Four brands are now offered in 100% recycled PET and supported by an educational marketing campaign. SPRITE TRANSITIONS FROM GREEN TO CLEAR PET We continued to transition Sprite plastic bottles from green to clear PET to help increase the efficiency of recycling systems. The move, which the brand has completed or is in process in over 100 countries, improves the efficiency of recycling systems and boosts availability of food-grade rPET. As one example, Coca-Cola North America’s entire green plastic portfolio—including packaging for Sprite, Fresca, Seagram’s and Mello Yello— made the transition to clear PET in 2022.",39,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +143,nestle.pdf,"As one example, Coca-Cola North America’s entire green plastic portfolio—including packaging for Sprite, Fresca, Seagram’s and Mello Yello— made the transition to clear PET in 2022. SustainableInnovation We continue to deliver breakthrough technologies to lightweight our plastic packaging: Label-lessbottles are now available across a range of brands in Japan, South Korea and China. Laser engraving technology used directly on the bottle helps improve recyclability and reduce carbon emissions. Our technology is being licensed for a 30% plant-basedplasticbottle to a company building a commercial facility in Germany, which is scheduled to deliver material in 2024. A 100% plant-basedplasticbottleprototype has been developed with plans to explore scalability of a 100% biobased PET resin and bottle (bottle, not cap and label). Biobased plastic packaging can have a lower carbon footprint than petroleum- based packaging. Bottles with tetheredcaps, which enable bottles and caps to be collected together for recycling, are being piloted for our entire portfolio in Germany, Bulgaria and Italy.",39,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +144,nestle.pdf,"Bottles with tetheredcaps, which enable bottles and caps to be collected together for recycling, are being piloted for our entire portfolio in Germany, Bulgaria and Italy. Additionally, a new lightweighted bottle neck finish in Europe will save an estimated 9,100 tons of plastic per year by 2024. The KeelClip® 1packagingsolution made from recyclable cardboard replaces plastic rings for multi-packs. Following a successful rollout across Europe, the first-of-its-kind solution is being piloted in select U.S. markets. 1 K eelClip is a trademark of Graphic Packaging International, LLC As The Coca-Cola Company’s second-largest brand, Sprite is proud to demonstrate its commitment to circularity through our packaging by ensuring every bottle we make can be recycled and made into a new one. We can only achieve our World Without Waste goals by creating closed-loop packaging streams, and that starts with clear PET.” SHRENIK DASANI Global Senior Director, Sprite Trademark",39,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +145,nestle.pdf,"40THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY WORLD WITHOUT WASTE: COLLECT We work with partners across business, government and civil society to create or support closed-loop systems that ensure our packages are collected and recycled or reused. Delivering a circular economy will require significant and urgent improvement in waste management and recycling systems around the world. Preserving the inherent economic value of our packaging—and ensuring circularity— requires robust collection and recycling systems across packaging types. Collection challenges vary, as every country has unique governments, regulatory environments and consumer behaviors. Though some countries have high recycling rates across packaging types, in many regions the recycling rate for PET bottles lags that of some other materials. While we continue to focus on national collection rates, in 2022, with input from key external stakeholders, we updated our collection tracking guidance to account for material collected through system- led efforts.",40,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +146,nestle.pdf,"While we continue to focus on national collection rates, in 2022, with input from key external stakeholders, we updated our collection tracking guidance to account for material collected through system- led efforts. Company and bottler teams in markets with limited recycling infrastructures (including parts of Latin America, Africa and Asia) are financing system-led collection initiatives to supplement national systems and are launching our own tracking systems. In 2023, we will start incorporating Coca-Cola system-led collection data into our aggregate numbers. GOAL 2022 STATUS Collect and recycle a bottle or can for each one we sell by 2030 61%1 61% 1 The c ollection rate represents a weighted average of national collection rates, collected for recycling rates or refillable rates by packaging type to TCCS’s sales in units to express the percent of equivalent bottles and cans introduced into the market that were collected and refilled or collected for recycling for the year. In emerging markets, we advocate for government regulations permitting the use of rPET in food and beverage packaging, and we seek ways to empower the informal waste collection sector in the circular economy.",40,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +147,nestle.pdf,"In emerging markets, we advocate for government regulations permitting the use of rPET in food and beverage packaging, and we seek ways to empower the informal waste collection sector in the circular economy. In developed markets, we are working with industry peers to build collection infrastructures—including our more than 40 years of experience operating 40+ local Deposit Return Systems (DRS). Countries with a well-designed DRS scheme, like Germany, can achieve high levels of collection (approximately 97% collection for non-refillable packages in Germany). Material Mix Collection Rates by Packaging Type1 of the equivalent bottles and cans we introduced into the market in 2022 were collected and refilled or collected for recycling. 1 61% 26% 61% ALUMINUM & STEEL 0.5% 6% POUCHES 3% 17% CARTONS/JUICE BOXES 47% 58% PET PLASTIC Our Packaging T ypes NON-REFILLABLE GLASS 2% 35% REFILLABLE GLASS & PET PLASTIC 10% 93%",40,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +148,nestle.pdf,41THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY CANADA 75% UNITED STATES 28% BRAZIL 56% URUGUAY 26% HONDURAS 29% PERU 54% GHANA 50% DOMINICAN REPUBLIC 49% SOUTH AFRICA 62% SOUTH KOREA 79% ARGENTINA 30% ECUADOR 79% JAMAICA 25% BARBADOS 60% BELIZE 50% AUSTRALIA 57% NEW ZEALAND 66% INDIA 80% NEPAL 80% ITALY 65% HUNGARY 26% BELGIUM 95% POLAND 47% CROATIA 83% PAKISTAN 75% UZBEKISTAN 83% ESTONIA 88% TÜRKIYE 66% EGYPT 45% ISRAEL 68%,41,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +149,nestle.pdf,"66% EGYPT 45% ISRAEL 68% BANGLADESH 30% GREECE 56% ICELAND 90% SPAIN 71% JAPAN 98% VIETNAM 45% MALAYSIA 56% INDONESIA 62% THE PHILIPPINES 48% LAOS 35% KENYA 45% TANZANIA 29% MAURITIUS 40% 2022W orldwide  Collection  Rates1 We advocate for well-designed Extended Producer Responsibility (EPR) schemes, in which companies that produce packaging fund collection, sorting and recycling with the goal of increasing recycling rates. Recognizing that industry cannot achieve a circular economy on its own, we are part of a Consumer Goods Forum (CGF) coalition of 40 companies supporting the development of EPR programs in collaboration with governments. The coalition has published guiding principles and key design parameters for optimal EPR programs. In the United States, we’re making progress one community at a time, through our industry initiative Every Bottle Back. As of November 2022, the initiative has launched over 25 projects which are projected to collect and capture nearly 700 million pounds of PET over ten years.",41,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +150,nestle.pdf,"As of November 2022, the initiative has launched over 25 projects which are projected to collect and capture nearly 700 million pounds of PET over ten years. We also work with peers and partners to advocate for legislation that enables a circular economy, like a recent EPR law passed in Colorado and minimum recycled content laws passed in California, Washington and New Jersey. However, collection rates in the United States trail those of many other countries, and we know there is much more work to do. Ensuring respect for the human rights of vulnerable workers in the informal waste sector is an important pillar of our Collection efforts. Over the last two years, we have partnered with industry peers and Tearfund, an NGO advocating for improved livelihoods for informal waste sector workers, on the Fair Circularity Initiative to develop human rights principles and guidelines for engaging with the informal waste collection industry. For more information, see the Human Rights section. Additional2022highlights: • In the Philippines, we partnered with the Technical Education and Skills Development Authority to pilot a certified skills training program for workers in the informal waste collection sector.",41,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +151,nestle.pdf,"Additional2022highlights: • In the Philippines, we partnered with the Technical Education and Skills Development Authority to pilot a certified skills training program for workers in the informal waste collection sector. These workers have access to training, tools and equipment for efficient waste collection and connections to materials recovery facilities (MRF) that buy the waste that is collected. We also are creating more than 2,000 collection hubs in sari-sari (convenience) stores and other retail outlets where community members can drop off used, clear PET bottles in return for incentives. Participating retailers earn income from selling collected PET bottles to waste management companies and recyclers. Similar programs are in place in Malaysia, Myanmar and Thailand. • In Brazil, SustentaPET collection centers take in more than 700,000 PET bottles a day to produce recycled resin that ultimately becomes new packaging. In its first three years, the program has recycled more than 83,000 metric tons of PET—and will expand to additional states in 2023.",41,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +152,nestle.pdf,"In its first three years, the program has recycled more than 83,000 metric tons of PET—and will expand to additional states in 2023. • In Egypt, we partner with BariQ, the largest bottle-to-bottle recycling plant in the Middle East, to recycle 14,000 metric tons of plastic waste annually to food-grade product compatible with the European Food Safety Authority (EFSA), Food and Drug Administration (FDA) and Egyptian Organization for Standardization (EOS). • In India, we’re teaming with bicycle grocery delivery service Zepto for the “PET Return and Recycle” initiative. Using the Zepto mobile app, consumers can return up to four empty PET bottles (across any brand) to be collected by Zepto riders during home delivery trips. Following a successful pilot in Mumbai, the program will expand to additional cities. 1 These c ollection rates represent non-refillable PET packaging only.",41,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +153,nestle.pdf,"42THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY WORLD WITHOUT WASTE: PARTNER Tackling the global plastic waste crisis requires cross-sector collaboration and alignment on common principles and targets. We work with a range of stakeholders at a global, regional and local level. This includes partnering with governments and community organizations to strengthen recycling infrastructures and boost collection rates; collaborating with customers, peers and industry associations to shape public policy that supports a circular economy; and teaming up with suppliers, startups and R&D partners to fuel sustainable packaging innovation. In 2022, we enhanced our partnership with the Ellen MacArthur Foundation by becoming a Strategic Partner alongside some of the world’s largest and most influential organizations, with transformative potential to demonstrate what’s possible in the transition to a circular economy. As a Strategic Partner we support the Foundation’s mission to develop and promote a circular economy beyond our work on plastics and deepen our engagement globally, regionally and locally.",42,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +154,nestle.pdf,"As a Strategic Partner we support the Foundation’s mission to develop and promote a circular economy beyond our work on plastics and deepen our engagement globally, regionally and locally. We have been working with the Foundation on plastics across a range of projects and initiatives, including as a signatory to their Global Commitment in collaboration with the UN Environment Programme. In the past couple of years, we increased our ambition and set virgin plastics reduction and reusable packaging targets. In September 2022, we also joined the Business Coalition for a Global Plastics Treaty convened by the Ellen MacArthur Foundation and WWF , and we have an active role as a Co-Chair of the Coalition’s Policy Working Group. Over 80 organizations, including businesses from across the plastics value chain, financial institutions and NGOs, are supporting the development of an ambitious, effective and legally binding UN treaty to end plastic pollution—which will set common goals, rules and obligations for member states, and in turn, for businesses. Through a shared vision we believe that a legally binding treaty must set the right enabling conditions to successfully scale a circular economy for plastic and end plastic pollution, and in doing so, will level the playing field across countries and industries.",42,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +155,nestle.pdf,"This will help ensure all plastics users participate in the funding of collection systems and will set consistent targets for areas such as recyclability, recycled content and collection. We continue to play an active role in the AB InBev 100+ A ccelerator program, a global open innovation program committed to crowdsourcing and piloting sustainability-focused startups and solutions. The program’s 2022 cohort is supporting 46 startups with funding, training, mentoring and other hands-on support to execute pilot projects in a partner company’s supply chain. Within the Coca-Cola system, we are pursuing six pilot projects, building on the five pilots from last year. We have focused our investments in concepts that support a circular economy, water and climate. And while we are early in the process, we are seeing promise. Pilot projects from the last cycle (2021–2022) with ReciVeci (Ecuador) and RecyclePoints (Nigeria) resulted in ongoing partnerships that are helping to further our World Without Waste plans. In the Philippines, we are partnering with Save Philippine Seas on a campaign to find and scale community-based plastic waste solutions.",42,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +156,nestle.pdf,"In the Philippines, we are partnering with Save Philippine Seas on a campaign to find and scale community-based plastic waste solutions. In 2022, five startups—Barrio Studios, Sagip Kalikasan, KAKASIE Eco-Park, #RefillNotLandfill and Alon and Araw—received grants from The Coca-Cola Foundation to advance their collection, recycling and education projects. In Morocco, we are collaborating with WWF on the Plastic Smart Cities project, which brings together cities and tourism destinations to fight plastic pollution. The partnership in Tangier aims to reduce leakage of plastic waste into nature by 30%. In 2021 and 2022, the partners and the local waste management department have collected more than 3,900 metric tons of plastic waste. We look forward to partnering with more like- minded organizations and communities to make the vision of a World Without Waste a reality. We now have five years of experience implementing the World Without Waste program. With targets for both 2025 and 2030, in 2023 we are taking stock of our current status across markets to ensure our local teams have the plans and investments in place to continue to make progress.",42,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +157,nestle.pdf,"With targets for both 2025 and 2030, in 2023 we are taking stock of our current status across markets to ensure our local teams have the plans and investments in place to continue to make progress. Our experience in a handful of markets that are already achieving high performance against specific goals, or the full suite of targets, indicates that these goals can be met. However, we are not currently on track to meet the World Without Waste targets for 2030. Package design and the use of recycled materials are areas that are ultimately in our control, but costs, quality, technology and consumer preferences are dynamic factors that affect our ability and timelines for implementation. The key challenge for us is collection for recycling of beverage packaging, which is the key step to ensure a functioning circular economy. We will continue to invest in innovation for the small percentage of our packaging that currently has recycling challenges, including juice pouches, opaque packaging currently used for dairy beverages, and cartons. And, we will invest in new recycling technologies for PET plastic and other packaging materials.",42,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.8 " +158,nestle.pdf,"And, we will invest in new recycling technologies for PET plastic and other packaging materials. We see a significant opportunity to work more proactively with global and regional customers, many of which have announced their own sustainable packaging goals that can only be achieved in collaboration with key suppliers. Looking ahead, we will build on our longstanding relationships to make collective progress. WHAT’S NEXT DESIGN PARTNERS A&W ANZPAC Plastics Pact Burger King® and Loop™ Coca-Cola Europacific Partners & Pact Group, Cleanaway and Asahi Beverages Changchun Meihe Science & Technology Tesco and Loop™ UPM Virent COLLECT PARTNERS AB InBev 100+ Accelerator BanQu Benioff Ocean Institute Circular Solutions Advisors Circulate Capital Global Plastic Action Partnership & World Economic Forum GPAP Indorama Ventures PETCO Project RECAPP Solar Coca-Cola The Ocean Cleanup™ Collaboratingfor Impact In 2022, we continued to strengthen existing partnerships and establish new ones to align strategically with our World Without Waste priorities and collectively drive progress toward a circular economy. Here are a few examples: We have no time to waste.",42,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +159,nestle.pdf,"Here are a few examples: We have no time to waste. The need for global coordination to tackle the plastic pollution crisis has never been more urgent. A Business Coalition for a Global Plastics Treaty will push strongly for a framework that leaves the business-as- usual approach at the door and ushers us into a new era where ending plastic pollution is finally within reach.” ERIN SIMON Vice President and Head of Plastic Waste and Business, WWF",42,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +160,nestle.pdf,"378 OF OUR SUPPLIERS (OUT OF 495 REQUESTED) PROVIDED CLIMATE DATA TO CDP IN 2022 (A 12% INCREASE FROM 2021) 21% SYSTEM-WIDE RENEWABLE ELECTRICITY USAGE IN 2022 SECTIONSCOPE: In this section our climate emissions reduction work refers to actions by the company as well as our owned and independent bottling partners and our independent suppliers and partners. Climate Taking well-informed, decisive action to help address climate change is a priority for our company. Climate change poses risks to our business and our stakeholders. By implementing an interconnected approach across our priority sustainability issues, we are reducing the Coca-Cola system’s greenhouse gas (GHG) emissions and building resilience in our business, value chain and local communities. 43THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY 7% DECLINE IN IN ABSOLUTE EMISSIONS SINCE 2015 TOWARD A 25% SCIENCE-BASED REDUCTION TARGET BY 2030",43,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: Yes +[Confidence]: 0.8 " +161,nestle.pdf,"44THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY 2030 SCIENCE-BASED TARGET PACKAGING 30–35% A circular economy helps reduce GHG emissions. We are incorporating more recycled material, lightweighting our packaging, investing in recycling infrastructure and using more reusable packaging. In 2023, we are building our capabilities in life cycle assessment (LCA) to further drive synergies between our work on packaging and climate. INGREDIENTS 10–15% We work with our agricultural suppliers to increase energy efficiency and realize carbon sequestration benefits from Nature-Based Solutions (NBS). We also work with leading sustainable sourcing schemes to quantify the impact of sustainable sourcing on emissions reduction. See Sustainable Agriculture for more. MANUFACTURING & OTHER FACILITIES 10–15% We provide system guidance to improve energy efficiency and increase the generation and purchase of renewable energy.",44,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +162,nestle.pdf,"See Sustainable Agriculture for more. MANUFACTURING & OTHER FACILITIES 10–15% We provide system guidance to improve energy efficiency and increase the generation and purchase of renewable energy. In 2022, there has been new renewable energy generation at system bottling plants in Europe, Latin America, the Philippines, India and the Middle East. DISTRIBUTION 5–10% We’re working to increase fuel efficiency and the use of hybrid and electric vehicles across the system. Coca-Cola Europacific Partners (CCEP) increased their use of hybrid and electric cars and vans in Europe from 12% in 2021 to 20% in 2022 and introduced 30 electric trucks to make last mile deliveries to customers in Belgium, covering approximately 40% of the country’s local delivery routes. REFRIGERATION 30–35% We are continuing to replace older equipment with hydrofluorocarbon (HFC)-free and more energy-efficient coolers. In 2022, 88% of all new coolers placed were HFC-free. This is an increase from 61% of coolers placed in 2016.",44,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +163,nestle.pdf,"In 2022, 88% of all new coolers placed were HFC-free. This is an increase from 61% of coolers placed in 2016. We are working to reduce our carbon footprint in line with science to avoid the worst impacts of climate change. We do this by analyzing and prioritizing the sources of GHG emissions across our value chain and by partnering with stakeholders to drive down those emissions. As of 2022, we reduced our emissions across Scopes 1, 2 and 3 by 7%, 1 making progress toward our science-based reduction target of 25% by 2030 against a 2015 baseline 1. Our ambition is to achieve net zero emissions by 2050. Several of our bottling partners have announced their own science-based targets and net zero pledges to drive climate action across the global Coca-Cola system. In 2022, our scope 1 emissions were 4.4 million metric tons, scope 2 emissions were 3.5 million metric tons 2 and scope 3 emissions were 57.0 million metric tons.",44,"[Guess]: Yes +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: Yes +[Confidence]: 0.8 " +164,nestle.pdf,"In 2022, our scope 1 emissions were 4.4 million metric tons, scope 2 emissions were 3.5 million metric tons 2 and scope 3 emissions were 57.0 million metric tons. Our Carbon  Footprint  and the A ctions W e Ar e T aking NetworksSupport Our Net  Zero J ourney We are part of a number of business networks that are supporting our journey to net zero. As a member of the WWF Climate Business Network, we share best practices to drive collective ambition and scale action together. Participation in the Clean Energy Buyers Association (CEBA) allows us to help deploy market and policy solutions toward a carbon-free energy system. Membership in Ceres’ Company Network has helped to identify opportunities to drive further progress toward net zero emissions. CLIMATE CHANGE GOVERNANCE The Corporate Governance and Sustainability Committee of our Board of Directors oversees climate-related issues. The Committee assists our Board in overseeing the company’s environmental, social, legislative, regulatory and public policy matters, including progress against our science-based emissions reduction target.",44,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +165,nestle.pdf,"The Committee assists our Board in overseeing the company’s environmental, social, legislative, regulatory and public policy matters, including progress against our science-based emissions reduction target. The committee reports regularly to the full Board on these and other matters. To learn more about our governance structure, see the Governance section. For more on climate- related governance, see our CDP 2022 Climate Change response, Section C1. TheCoca-ColaSystem’sEmissionPercentagesby Scope  in  2022 1 This figur e was calculated using the market-based emissions method and therefore includes purchased renewable electricity as part of the system’s overall emissions reduction. For exclusions, please see the criteria statement in the Independent Accountant’s Review Report. 2 This figur e was calculated using the market-based emissions method and therefore includes purchased renewable electricity. 7% SCOPE 1 DIRECT EMISSIONS SCOPE 2 INDIRECT EMISSIONS SCOPE 3 UPSTREAM AND DOWNSTREAM SOURCES 5% 88% Fossil fuels Fleet vehicles Electricity Heat and steam Purchased goods and services Business travel Processing of sold products Downstream transportation and distribution",44,"[Guess]: Yes +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +166,nestle.pdf,"45THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY MANAGING CLIMATE RISK Our Risk Steering Committee oversees regular system-wide risk assessments. We integrate climate risk planning into this cross-functional and cross-company Enterprise Risk Management (ERM) process. We regularly evaluate commodity- specific risks and resilience associated with climate impacts on water and our supply chain. Risks that could materially affect our business, financial condition and results of operations are disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022. This includes risks related to the effects of climate change and legal or regulatory initiatives to address climate change. Our management team works to mitigate these risks through, among other things, business continuity planning, setting targets that drive efficiency and making investments to improve our performance and increase resilience. Ultimately, the Corporate Governance and Sustainability Committee of our Board of Directors oversees climate-related risks.",45,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.8 " +167,nestle.pdf,"Ultimately, the Corporate Governance and Sustainability Committee of our Board of Directors oversees climate-related risks. The involvement of our bottling partners and suppliers is essential to achieving our science- based target to reduce absolute scope 1, 2 and 3 GHG emissions by 25% by 2030. The following are examples of how we are working on climate initiatives with partners across our value chain. INCREASING RENEWABLE ENERGY (ELECTRICITY) IN MANUFACTURING One critical strategy for reducing emissions in our system is the increased use of renewable energy in our manufacturing processes. Renewable electricity usage, which was third- party assured for the first time in 2021, increased from 12% in 2021 to 21% in 2022. To build knowledge across our system and increase the generation, procurement and accurate reporting of renewable energy, we published a Renewable Energy Implementation Guidebook in March 2022. This guidebook provides a step-by-step process for associates across the system to implement on-site solar photovoltaic and solar hot water and steam systems, on-site and off -site renewable energy power purchase agreements (PPAs), coupled with energy attribute certificates to align with GHG Protocol Scope 2 quality criteria.",45,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 " +168,nestle.pdf,"In addition to the guidebook, we launched a future-facing initiative called the Renewable Energy Project Pipeline in 2022, where we work closely with bottling partners to increase the number of renewable energy projects throughout our system. Approximately 20 bottling partners and 13 concentrate plants have developed 2023–2025 renewable energy plans. As the number and scope of these projects expands, we will look for opportunities to collaborate and share best practices. Coca-ColaEuropacificPartners SignsLandmark Renewable  ElectricityA greement Coca-Cola Europacific Partners (CCEP) in Australia signed an eight-year agreement with Alinta Energy, which includes large-scale generation certificates and 13,000 MWh per year of renewable electricity supplied from the Yandin Wind Farm. The long-term agreement started in January 2023 and will help CCEP move closer to its goal of using 100% renewable electricity across all of its markets by 2030. BOTTLING PARTNERS SET SCIENCE-BASED EMISSIONS TARGETS Given the size of our network of bottling partners, they are critically important in making progress toward our climate ambitions.",45,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: Yes +[Confidence]: 0.8 " +169,nestle.pdf,"BOTTLING PARTNERS SET SCIENCE-BASED EMISSIONS TARGETS Given the size of our network of bottling partners, they are critically important in making progress toward our climate ambitions. Our bottling partners have a major influence on emissions reductions based on what they buy, make and deliver for our shared customers and consumers. In September 2022, Arca Continental committed to setting a science-based target. This adds to the growing list of our bottlers with approved emissions reductions goals through the Science- Based Targets initiative (SBTi). This list includes Coca-Cola Hellenic Bottling Company (CCHBC), Coca-Cola Europacific Partners (CCEP), AB Inbev, Swire Coca-Cola Limited and Coca-Cola FEMSA. We will be working to grow this list in 2023. ENGAGING WITH SUPPLIERS TO TAKE ACTION ON CLIMATE We continue to find new ways to collaborate and support our suppliers to collectively reduce emissions. In 2022, we joined the Supplier Leadership on Climate Transition (Supplier LoCT) initiative, led by Guidehouse along with 18 other companies to mobilize collective climate action by providing suppliers with resources, tools and knowledge to accelerate their decarbonization.",45,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +170,nestle.pdf,"As of the end of 2022, there were 94 suppliers to the Coca-Cola system participating in the initiative. The company is directly sponsoring 56 of these suppliers. The program is showing signs of success—10 suppliers that we sponsored, who successfully completed the program, have since set or committed to setting their own SBTi- approved emissions targets. In total, more than 160 of our suppliers have set or committed to setting SBTi-approved emissions targets. ReducingEmissionsfromCoolers Coolers have long been a key opportunity because approximately one-third of our emissions comes from cold-drink equipment and dispensing. In early 2023, building on analysis we conducted in 2022, we published internal guidance for coolers used across our value chain. The guidance sets specific energy usage limits, which will require increasing energy efficiency between now and 2030 and help drive the replacement of older, less efficient coolers. We are also installing more “intelligent connected” coolers that can transmit data such as product throughput, maintenance status, temperature and energy use, which has operational benefits in addition to helping reduce emissions. In 2022, 88% of all new coolers placed were HFC-free.",45,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +171,nestle.pdf,"In 2022, 88% of all new coolers placed were HFC-free. This is an increase from 61% of coolers placed in 2016. TakingA ction A cross  OurV alue  Chain Thanks to The Coca-Cola Company, in April 2022 we had the great opportunity to join the Supplier LoCT initiative. This program helped us to improve the way we calculate our Scope 1 & 2 emissions and to calculate our Scope 3 emissions for the first time. Last November, we committed to setting a science-based emissions target.” NICOLAS LOOTENS Group Sustainability Manager, Vetropak",45,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +172,nestle.pdf,"46THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY WHAT’S NEXT? Accountingfor Land  Use  Emissions In line with the launch of the SBTi’s Forest, Land and Agriculture (FLAG) requirements, we are working to update our current science-based target in line with this methodology and a more ambitious trajectory. This new target would consider emissions from land use change in our supply chain as part of our overall GHG footprint and would consider carbon sequestration from land-based projects we implement in our supply chain. While we already work closely with suppliers to engage on water and sustainable agriculture, accounting for land use emissions would require an even closer partnership with our agricultural suppliers. As we incorporate more work across the agricultural supply chain, this would also help us meet evolving climate risk and data disclosure requirements.",46,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +173,nestle.pdf,"As we incorporate more work across the agricultural supply chain, this would also help us meet evolving climate risk and data disclosure requirements. Coca-ColaBallinaPlant RecognizedbyW orld  EconomicForum The World Economic Forum’s Global Lighthouse Network recognized The Coca-Cola Company’s concentrate manufacturing facility in Ballina, Ireland, as a manufacturer showing leadership in applying Fourth Industrial Revolution technologies at scale to drive step-change financial, operational and sustainability improvements by transforming factories, value chains and business models. Investments in the facility’s IT infrastructure, advanced technologies and employee training has led to a 6.8% increase in production in three years (2019–2022) and a 29% energy reduction, which brought emissions back to 2011 levels. The Ballina team’s learnings are being shared globally. IMPROVING DATA SCOPE AND ACCURACY Gathering complete and accurate data is critical to identifying a path to achieving our science- based target. We are continuously improving the scope and detail of our data collection to ensure all significant sources of emissions across our value chain are included in our inventory.",46,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +174,nestle.pdf,"We are continuously improving the scope and detail of our data collection to ensure all significant sources of emissions across our value chain are included in our inventory. We are updating our 2015 baseline data due to recent acquisitions. Improving our data helps us prioritize projects and programs with the greatest impact, including more detail on renewable energy usage and more data from suppliers. ValidateRenewableEnergy Claims One area of focus has been to validate the accuracy and completeness of our renewable energy claims. We have done this through assuring our claims to the GHG Protocol. This work began in 2021 and continued through 2022. SuppliersDiscloseDataandT argets Because approximately 85% of our total carbon emissions come from goods and services we buy, it is essential to engage with suppliers to accurately capture our full scope 3 emissions and ensure our suppliers join our decarbonization journey. Each year, we encourage key suppliers to complete CDP’s Supply Chain Climate Change questionnaire, which provides useful data on GHG emissions in our supply chain and information on supplier targets and initiatives to reduce emissions.",46,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +175,nestle.pdf,"Each year, we encourage key suppliers to complete CDP’s Supply Chain Climate Change questionnaire, which provides useful data on GHG emissions in our supply chain and information on supplier targets and initiatives to reduce emissions. In 2022, 378 suppliers provided climate data to CDP out of 495 requested, a 12% increase from 2021. Additionally, we are working to improve data accuracy in partnership with several major suppliers across ingredients and packaging, starting with sugar and aluminum, in order to develop supplier-specific emissions factors for the commodities we procure. This allows us to better understand our supply chain, drive change and more accurately track emissions reductions of specific suppliers and commodities in key areas. Even deeper in our supply chain, work is underway to map and understand how land, water use and farming practices in our major agricultural sourcing regions both generate emissions and have the potential to reduce emissions. Costa began its own work in 2022, launching a Climate Smart coffee project in partnership with the Rainforest Alliance. Phase 1 of the project has been to conduct a GHG feasibility study to better understand the carbon footprint of coffee farms from Costa’s key sourcing origins, including Colombia and Brazil.",46,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +176,nestle.pdf,"Phase 1 of the project has been to conduct a GHG feasibility study to better understand the carbon footprint of coffee farms from Costa’s key sourcing origins, including Colombia and Brazil. This study is being used to inform the design of scalable climate mitigation interventions.",46,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +177,nestle.pdf,"1 L eader standard represents supply volume verified to a company-approved, third-party validation, that is aligned with our PSA. SECTIONSCOPE: In this section our Sustainable Agriculture work refers to actions by the company as well as our owned and independent bottling partners and our independent suppliers and partners. Sustainable Agriculture Our products and some of our packaging are made from a wide variety of agricultural ingredients which we source from around the world. Our goal is to sustainably source all our ingredients over time. We publicly report on our 12 global priority ingredients—such as sugar, corn, fruit, coffee, tea and soybeans. Sustainably sourcing our ingredients increases the resilience of our supply chain, helps to conserve nature and empowers producers and farm workers. In practice, we encourage and support our ingredient suppliers to drive continuous improvement in sustainable farming practices, based on our Principles for Sustainable Agriculture (PSA).",47,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +178,nestle.pdf,"In practice, we encourage and support our ingredient suppliers to drive continuous improvement in sustainable farming practices, based on our Principles for Sustainable Agriculture (PSA). 47THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY IN 2022, 64% OF OUR GLOBAL PRIORITY INGREDIENT VOLUMES WERE SUSTAINABLY SOURCED TO OUR LEADER STANDARD1, IN LINE WITH OUR PRINCIPLES FOR SUSTAINABLE AGRICULTURE",47,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +179,nestle.pdf,"48THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY PRINCIPLES FOR SUSTAINABLE AGRICULTURE IMPROVING WATER MANAGEMENT TO GROW OUR INGREDIENTS 1 These appr oved standards, which can be found on our website, currently include Bonsucro for sugar; the Sustainable Agriculture Initiative Platform—Farm Sustainability Assessment (FSA) for crops including sugar cane, sugar beets and fruit; the Round Table for Responsible Soy for soybean; the Rainforest Alliance for coffee and tea; the Forest Stewardship Council for pulp and paper; and Field to Market for U.S. corn, among other crops. 2 Da ta is based on supplier reporting according to our PSA governance requirements. 3 Sour ce: Food and Agriculture Organization of the United Nations: Water for Sustainable Food and Agriculture, a report produced for the G20 Presidency of Germany In 2022, 64% of our global priority ingredient volumes were sustainably sourced to our Leader standard, in line with our PSA. We currently only report our Leader-level volumes publicly.",48,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +180,nestle.pdf,"We currently only report our Leader-level volumes publicly. We do not currently report Mover or Improver volumes publicly. Thriving farmers and farming communities are critically important for our supply chain. Our ability to deliver quality products depends on having a sustainable and secure supply of agricultural ingredients. Our complex supply chain spans the globe and includes many kinds of suppliers, from multinational companies to smallholder farmers. Our Principles for Sustainable Agriculture (PSA) communicate our expectations for environmental, social and economic performance to our agricultural suppliers at the farm level. The PSA, introduced in 2021 to replace our Sustainable Agriculture Guiding Principles (SAGP), take a long-term perspective and reflect the most recent science, our total beverage portfolio, and our increasingly diverse supply chain. The PSA are designed to encourage continuous improvement in farming practices and lead to more ethical and sustainable sourcing. The PSA framework for evaluating the compliance and performance of our supply farm base recognizes the on-the-ground realities in sustainable farming practices across a diversity of supply chains, farm structures and risk contexts. Based on the PSA framework, suppliers are designated as either a Leader, Mover or Improver.",48,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +181,nestle.pdf,"Based on the PSA framework, suppliers are designated as either a Leader, Mover or Improver. We are currently analyzing against the PSA framework the volume of the 12 global priority ingredients we procure. This mapping, which we aim to complete by the end of 2025, will help determine how we engage with suppliers to drive continuous improvement. Our long-term  ambition  is tw o-fold:  • All o f our agricultural-based suppliers will demonstrate continuous improvement and will be categorized by The Coca-Cola Company as either a Leader, Mover or Improver. • All o f our global priority ingredient suppliers and their farm supply base will work toward achieving “Leader” status over time. Basedonthe  PSA framework,  suppliersaredesignatedas: •  LEADER: Supply volume is verified to company approved standards, with third- party assurance aligned with the PSA.1 •   MOVER: Supply volume is sourced from farms using other agricultural farming standards, effectively identifying and addressing key sustainability issues and advancing sustainable practices.",48,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +182,nestle.pdf,"•  IMPROVER: Supply volume is sourced from smallholder/small-scale producers participating in a support program to continuously improve their priority sustainability practices. Irrigated agriculture remains the largest user of water globally, accounting for 70% of water use worldwide,3 and has significant impacts on watershed health. Agriculture is also one of the sectors most impacted by water stress and drought. Water use within our agriculture supply chain accounts for the vast majority of the surface water and groundwater consumed in the production of our beverages. Therefore, we are working with our suppliers to help promote the long-term sustainability of water resources through the implementation of advanced water management practices at the farm level. In addition, we are including our priority sourcing regions as part of our water replenishment programs. For example, in 2022, in partnership with Doktar, an agri-tech company, and with funding from The Coca-Cola Foundation, we launched a project in the regions of Bursa and Tekirdağ in Türkiye, which are priority sourcing regions for apples.",48,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +183,nestle.pdf,"The project aims to improve irrigation efficiency and agricultural practices on approximately 500 acres of land growing apples, peaches, nectarines and tomatoes, which are major water users. Sensors will be installed to monitor climate and soil moisture conditions and satellite data (Sentinel-2 and PlanetScope) will be used to calculate levels of evapotranspiration. All of this data will be combined to provide personalized irrigation programs for participating farmers and help to avoid excessive watering. Drip irrigation infrastructure will be built on selected sites, which helps to reduce water use, and artificial reservoirs will be constructed to capture and hold rainwater to be used for irrigation purposes.",48,"[Guess]: No +[Confidence]: 1.0 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +184,nestle.pdf,"Drip irrigation infrastructure will be built on selected sites, which helps to reduce water use, and artificial reservoirs will be constructed to capture and hold rainwater to be used for irrigation purposes. It is estimated that drip irrigation will lead to a 20% increase in water efficiency for apple, peach and nectarine production and a 50% increase for 0 20 40 60 80 100 SOYBEANS COFFEE LEMONS ORANGES PULP AND PAPER SUGAR BEETS TEA CORN APPLES SUGAR CANE GRAPES MANGOES 37% 36% 40% 55% 70% 74% 80% 86% 89% 96% 99% 100% 2022 Progress on Sustainable Sourcing2 tomato growing as farmers shift from a flood- based irrigation system. We estimate the project will replenish approximately 500 million liters of water per year. The improvements in water-use efficiency are expected to help reduce costs and increase profitability for the farmers. Over the past year, we have worked closely with our suppliers to map our sourcing regions for our global priority ingredients.",48,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +185,nestle.pdf,"The improvements in water-use efficiency are expected to help reduce costs and increase profitability for the farmers. Over the past year, we have worked closely with our suppliers to map our sourcing regions for our global priority ingredients. While we recognize that traceability is not always perfect, and our supplier base is dynamic, we have begun to understand sourcing regions for our global priority ingredients that are exposed to high or extremely high water stress. We are focusing on engagement with suppliers in these priority sourcing watersheds. In 2022 and early 2023, we approached more than 45 suppliers that source ingredients from regions facing high or extremely high water stress, to gather data on their water management practices. In 2023, we plan to analyze this information to develop a baseline that will feed a supplier engagement strategy and collective action plan. This partnership has guided us with a focus on the right solutions for young farmers in highly water-stressed regions of Türkiye.” TANZER BILGEN Doktar Co-Founder and CEO",48,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +186,nestle.pdf,"49THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY 1 Sour ce: https://revistacultivar.com.br/noticias/centro-de- citricultura-do-iac-obtem-certificacao-internacional-de- sustentabilidade For details on how we address human rights risks in our agricultural supply chain, see the Human Rights section. For details on how we address deforestation risks in our agricultural supply chain, see our CDP Forests disclosure. Smallholder farmers play an essential role in our supply chain. Their livelihoods can be particularly vulnerable because they lack the resources and scale of commercial farmers. We partner with a range of nonprofits, communities, industry organizations and other companies to support smallholder farmers in becoming more efficient and productive while improving water and climate footprints, managing soil health, maintaining crop protection, and respecting the human rights of their workforce and labor contractors.",49,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +187,nestle.pdf,"The “Improver” category of our PSA segmentation includes smallholders who may never be able to gain formal certification but who can, with appropriate support, contribute to more sustainable and regenerative agriculture while increasing their own incomes and resilience. ApplyingCompostDrivesPositiveOutcomes for Egyptian V egetable  Farmers Agriculture in Egypt faces many challenges, including water scarcity, water pollution, desertification and land degradation. Through a grant from The Coca-Cola Foundation to Global Water Challenge (GWC), United Nations Development Programme (UNDP) and the Egypt Network for Sustainable Development (ENID) implemented a project in the Qena governorate in Upper Egypt to demonstrate the value of using a greenhouse cultivation model to produce vegetables (e.g., eggplants and tomatoes), and the recycling and use of crop residues (materials left over after a crop harvest, e.g., stalks and stems) as compost on local farms. Local farmers and laborers received equipment and training in these improved farming techniques. The application of compost increased the soil moisture holding capacity on farmland and reduced the need for synthetic fertilizer. It is estimated that composting reduced the use of water for irrigation by as much as 23%.",49,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +188,nestle.pdf,"The application of compost increased the soil moisture holding capacity on farmland and reduced the need for synthetic fertilizer. It is estimated that composting reduced the use of water for irrigation by as much as 23%. This decreased farming costs and generated an additional revenue stream for farmers. The recycling of crop residues provided income and short-term job opportunities for local residents along with longer-term employment prospects for approximately 500 individuals, including almost 100 women, who received training in the production and application of compost. The project also reduced the need for burning, which is the traditional way of disposing of agricultural waste. Regenerative agriculture is often referred to as a system of farming that focuses on positive outcomes that ensure the long-term viability of land to sustain production by working “with nature” rather than against it. A number of our completed and ongoing projects promote sustainable agriculture practices (e.g., use of cover crops) and contribute to positive outcomes, including reduced soil erosion and the buildup of organic matter. We will use key learnings from these projects to inform the design of future projects and incorporate regenerative agriculture principles and practices.",49,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +189,nestle.pdf,"We will use key learnings from these projects to inform the design of future projects and incorporate regenerative agriculture principles and practices. As a founding member of the SAI Platform’s Regenerative Agriculture Framework, we are supporting the development of an industry solution for measuring outcomes of regenerative agriculture practices at the farm level. We are also actively involved with SAI Platform’s work on the Farm Sustainability Assessment (FSA), a global verification framework and benchmark reference designed to accelerate sustainable agriculture. The latest version, FSA 3.0, includes a self-assessment questionnaire and a continuous improvement module that offers guidance for developing, implementing and monitoring performance improvement plans. StrengtheningSustainable Productionof Oranges  in  Brazil We are working with partners to support smallholder farmers in Brazil’s citrus sector, which is the largest in the world. Many smallholder farmers in Brazil have struggled, particularly during the COVID-19 pandemic.",49,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +190,nestle.pdf,"Many smallholder farmers in Brazil have struggled, particularly during the COVID-19 pandemic. As part of an industry initiative named Fruto Resiliente, which began in 2019, we are partnering with Eckes-Granini, Cutrale, one of our citrus juice suppliers, Solidaridad and innocent drinks, with co-funding from The Coca-Cola Foundation, to support nearly 500 smallholder farmers. The project aims to improve sustainable agriculture practices in the production of oranges by providing training to smallholders, including female farmers, in topics such as water, soil management and labor standards. Technical materials and resources (including booklets, podcasts, and videos) are shared for free online, and smallholders benefit from field visits to a demonstration farm operated by Sylvio Moreira Citrus Research Center (CCSM) of the Agronomic Institute (IAC). With project support, this state experimental farm reached the FSA/SAI gold level 1. In 2022, the project directly assisted approximately 200 orange farms. SUPPORTING SUSTAINABLE AGRICULTURAL PRACTICESSUPPORTING SMALLHOLDER FARMERS",49,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +191,nestle.pdf,"50THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY USA/Arizona, Colorado, Nebraska, Florida, Georgia: Farm irrigation efficiency (alfalfa, corn, peanuts, cotton, pecans) USA/Montana: Water distribution system improvement (alfalfa, barley, beet) USA/Indiana, Michigan, Iowa: Water retention and quality improvement (corn, soybean) USA/California: Groundwater recharge basins (fruits, nuts) USA/Illinois, Iowa, Minnesota: Treatment wetland (corn, soybean) NORTH AMERICA Brazil/Sao Paolo: Improved agricultural practices (oranges) Honduras/San Pedro Sula: Agroforestry and forest protection (fruits) Panama/Colon: Agroforestry and forest protection (coffee, plantain) Paraguay/Canindeyú: Sustainable agricultural practices (black oats,",50,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +192,nestle.pdf,"plantain) Paraguay/Canindeyú: Sustainable agricultural practices (black oats, perennial crops) LATIN AMERICA Spain/Sevilla: Irrigation efficiency (oranges) UK/East Anglia: Water quality improvement (sugar beet) Spain/Huelva, Valencia: Irrigation efficiency (strawberries, oranges) Italy/Sicily: Irrigation efficiency (citrus fruits) EUROPE Egypt/Qena: Irrigation efficiency (banana) Egypt/Qena: Hydroponics (vegetables, quinoa) Kenya/Turkana: Improved irrigation (many crops) Morocco/Tata, Demnate, Nicer, Assa, Ourika Valley: Irrigation efficiency (date palm, fruits, nuts, medicinal and aromatic plants) South Africa/Eastern Cape: Sustainable agriculture (rosemary, lavandin, livestock) AFRICA Bangladesh: Irrigation efficiency (rice, mango) India/Uttar Pradesh, Karnataka Maharashtra: Yield improvement and water use efficiency (sugar cane) India/12 states: Yield improvement and water use efficiency (many fruits) INDIA & SOUTHWEST ASIA China/Sichuan,",50,"[Guess]: No +[Confidence]: 1.0 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +193,nestle.pdf,"Karnataka Maharashtra: Yield improvement and water use efficiency (sugar cane) India/12 states: Yield improvement and water use efficiency (many fruits) INDIA & SOUTHWEST ASIA China/Sichuan, Guangxi, Tarim Basin: Irrigation efficiency (tea, pear, sugarcane, cotton, wheat) China/Jilin: Irrigation efficiency (corn) GREATER CHINA & MONGOLIA Japan/Kumamoto, Kanagawa: Water retention and recharge (rice) JAPAN & SOUTH KOREA Australia/Queensland: Water quality improvement (sugarcane) Vietnam/Mekong: Improved flood-based agriculture (rice, lotus, fish) Indonesia/Central Java, East Nusa Tenggara: Improved irrigation (fruits, grains) ASEAN & SOUTH PACIFIC Türkiye/Konya: Conservation agriculture (wheat, barley, rye, oats, corn) Türkiye/Sanliurfa, Bursa: Improved irrigation (cotton, apple, pear, peach, nectarine) Kyrgyzstan/Naryn: Improved irrigation (wheat, barley,",50,"[Guess]: No +[Confidence]: 1.0 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +194,nestle.pdf,"Bursa: Improved irrigation (cotton, apple, pear, peach, nectarine) Kyrgyzstan/Naryn: Improved irrigation (wheat, barley, potatoes) Uzbekistan/Navoy: Water-saving technologies (cotton, wheat) Gaza: Greywater reuse for irrigation (fruits, alfalfa) Kazakhstan/Kyzylorda, South Kazakhstan: Water-saving technology (many crops) Kazakhstan/Kyzylorda, Karoy, Eskeldi, Jambyl: Improved irrigation (many crops) Pakistan: Wastewater treatment and reuse for irrigation (sugarcane, wheat, cotton) Pakistan/Western Himalaya: Conservation agriculture and forest conservation (vegetables) Pakistan/Gilgit-Baltistan: Improved irrigation (many crops) Pakistan/Lahore: Floating wetlands (sugarcane, wheat,",50,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +195,nestle.pdf,"wheat, barley) EURASIA & MIDDLE EAST 1 2 3 4 5 6 7 8 9 5 6 1 3 2 4 7 8 9 The Coca-Cola system and The Coca-Cola Foundation have a long history of supporting projects that help improve efficiency of water use in irrigation, promote advanced water management, and drive improvement in sustainable farming practices. Below is a snapshot of some of our projects. ImprovingW ater Use  in A griculture Many projects have multiple locations, and many projects have the same description. Many of these projects support agricultural ingredients that are not tied directly to our supply chain. Many of these projects have been funded by The Coca-Cola Foundation.",50,"[Guess]: No +[Confidence]: 1.0","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +196,nestle.pdf,"Many of these projects support agricultural ingredients that are not tied directly to our supply chain. Many of these projects have been funded by The Coca-Cola Foundation. DemonstratingSustainable SugarcaneProduction In partnership with Biofábrica Siglo XXI, an agro-biotechnological company, and Unión Nacional de Cañeros, A.C.–CNPR, one of the most important canegrower organizations in Mexico, we developed a project in 2021–2022 in Huasteca Potosina and the state of Morelos in Mexico to demonstrate the positive outcomes of regenerative agriculture practices in the production of sugarcane. Farming practices promoted include the use of biofertilizers—made from microorganisms—and compost. The 24-month project is expected to show that such a production model can increase productivity, reduce the need for chemical fertilizer, improve soil health and increase carbon sequestration and retention. In 2022, the project was one of the winners of the Bonsucro Impact Fund.",50,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +197,nestle.pdf,"SAFETY & HEALTHHUMAN RIGHTSOVERVIEW DIVERSITY, EQUITY & INCLUSION GIVING BACK TO OUR COMMUNITIES ECONOMIC EMPOWERMENT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY 1 As o f December 31, 2022. People & Communities OUR PEOPLE POWER OUR PURPOSE Our focus on people starts with our employees. They steward our beloved beverage brands, fuel our innovation agenda, drive our sustainability priorities and programs, and create a multiplier effect in local communities through partnerships with governments, nonprofits, industry peers and other stakeholders. We remain committed to caring for the people across our value chain who contribute to our success— by respecting human rights across our operations and supply chain, empowering access to equal opportunities, supporting more sustainable agriculture practices, and giving back to communities through our philanthropic initiatives. And we use our global scale as a force for progress and for good.",51,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +198,nestle.pdf,And we use our global scale as a force for progress and for good. 51THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT ~700K EMPLOYED BY THE COCA-COLA COMPANY AND OUR APPROXIMATELY 200 BOTTLING PARTNERS ~82.5K EMPLOYED BY THE COCA-COLA COMPANY 1,51,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +199,nestle.pdf,"52THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT SAFETY & HEALTHHUMAN RIGHTSOVERVIEW DIVERSITY, EQUITY & INCLUSION GIVING BACK TO OUR COMMUNITIES ECONOMIC EMPOWERMENT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY HUMAN RIGHTS OUR COMMITMENT TO HUMAN RIGHTS As a part of our Real Impact framework, we are renewing and refining our Human Rights Policy. The new Policy will draw on our stakeholder engagement and risk assessment to better align with the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. The rights underpinning our commitment are drawn from the International Bill of Human Rights, the ILO Core Conventions, and other instruments foundational to the dignity of vulnerable stakeholders. While we are committed to respecting all human rights, we have identified 10 of our most salient issues: 1. Sa fe and healthy workplace 2. Div ersity and inclusion 3. F reedom of association 4. P rohibition on slavery and forced labor 5. P rohibition of child labor 6.",52,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +200,nestle.pdf,"Sa fe and healthy workplace 2. Div ersity and inclusion 3. F reedom of association 4. P rohibition on slavery and forced labor 5. P rohibition of child labor 6. W ork hours, wages, and benefits 7. Land righ ts 8. W ater and environmental stewardship 9. P rivacy 10. C onsumer wellbeing Our Human Rights Policy is embedded in expectations of our employees through the company’s Code of Business Conduct, and its precepts are extended through our supply chain through the Supplier Guiding Principles (SGP) and our Principles for Sustainable Agriculture (PSA). In line with the UN Guiding Principles, we carry out human rights due diligence across our value chain. We regularly assess our key human rights risks to ensure that we are taking sufficient steps to identify and address them and, if needed, to support remediation of impacts. Respecting human rights is one of our core values.",52,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +201,nestle.pdf,"We regularly assess our key human rights risks to ensure that we are taking sufficient steps to identify and address them and, if needed, to support remediation of impacts. Respecting human rights is one of our core values. The Coca-Cola Company was among the first companies to commit to the United Nations Guiding Principles on Business and Human Rights in 2011, and we have strived to inspire and drive responsible business practices ever since, embedding respect for human rights across our business and value chain. REAL IMPACT: SETTING THE STAGE FOR THE FUTURE The foundation of our human rights program is our commitment to continuous improvement. That’s why, in 2022, we engaged a human rights advisory firm to conduct a holistic and rigorous review of our human rights program to ensure that we remain at the vanguard of responsible business. The process included extensive engagement with internal and external stakeholders to understand their primary human rights concerns and their expectations of an industry-leading program. We also conducted a global risk assessment to identify salient human rights risks 1 across our global value chain and evaluate the strength of our governance to meet future challenges. The aim of this extensive analysis was to establish a framework to drive meaningful human rights progress across our operations and value chain.",52,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +202,nestle.pdf,"The aim of this extensive analysis was to establish a framework to drive meaningful human rights progress across our operations and value chain. The result of our year-long assessment is Real Impact, a new vision for the company’s human rights program. Our mission is to take actions that lead to a better tomorrow. We will take the lessons learned from existing programs and partnerships and seek to scale and adapt best practices across more geographies to deliver real impact to more people across our value chain. We will work to drive progress across our company, our industry and beyond through rigorous analysis, creative partnerships and constant innovation to turn commitment into action. 1 Salien t human rights risks are human rights at risk of the most severe negative impact through a company’s activities and business relationships. Thefutureof human  rights  at T he  Coca-Cola  Company is  empowerment. Real Impact is our new framework for tomorrow. It is about respecting rights while working to drive progress. We will seek to bring enduring changes to the lives of those we touch around the world. To make our ambition concrete, Real Impact is grounded in three signature initiatives.",52,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +203,nestle.pdf,"It is about respecting rights while working to drive progress. We will seek to bring enduring changes to the lives of those we touch around the world. To make our ambition concrete, Real Impact is grounded in three signature initiatives. Our New Frameworkt o T ransform T omorrow For more information about our vision for the future, click on the icon. To make our ambition concrete, Real IMPACT includes three signature initiatives. Real IMPACT Toward a Better Tomorrow Driving meaningful and enduring change in the lives of everyone touched by the commodities at the heart of our products — from smallholder farmers and their families to the communities we serve. Empowering workers across our value chain — from upstream supply chain workers and our 700,000+ system employees to down- stream informal waste collection workers supporting recycling around the world. IMPACT AgricultureIMPACT Work Developing transformative due diligence and remediation programs through emerging technologies and creative partnerships with stakeholders and experts.",52,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +204,nestle.pdf,"IMPACT AgricultureIMPACT Work Developing transformative due diligence and remediation programs through emerging technologies and creative partnerships with stakeholders and experts. IMPACT Innovation 2Real IMPACT: Toward A Better Tomorrow SECTIONSCOPE: In this section, our Human Rights Policy and Supplier Guiding Principle audits refer to actions by the company as well as our owned and independent bottling partners and our Tier 1 independent suppliers and partners.",52,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +205,nestle.pdf,"53THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT SAFETY & HEALTHHUMAN RIGHTSOVERVIEW DIVERSITY, EQUITY & INCLUSION GIVING BACK TO OUR COMMUNITIES ECONOMIC EMPOWERMENT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY EMBEDDING HUMAN RIGHTS ACROSS OUR NETWORK Our industry-leading global audit program is a key component of our long-term, ongoing commitment to supporting human rights. We use the same rigorous SGP protocols to audit our own operations as we do our bottling partners and Tier 1 suppliers (packaging and ingredients). In 2022, we conducted 2,770 audits and found that 99% of our own operations, 93% of system bottlers and 91% of our Tier 1 suppliers complied with our SGP protocols. These audit results are reviewed by the Corporate Governance and Sustainability Committee of our Board of Directors on an annual basis. While this process helps us hold our company and partners accountable, we also focus on building capacity to support respect for human rights across our value chain.",53,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +206,nestle.pdf,"While this process helps us hold our company and partners accountable, we also focus on building capacity to support respect for human rights across our value chain. This includes providing training and resources such as checklists, toolkits and guidelines. In 2022, we conducted bottler and supplier human rights-focused training across seven of our operating units, attended by over 1,000 participants. COLLABORATING TO COMBAT FORCED LABOR Forced labor is a human rights issue that plagues global supply chains and is a risk in virtually every company’s value chain. No company can solve this systemic failure alone—collaboration is the cornerstone of progress. We have joined with other companies as part of The Consumer Goods Forum to support its Human Rights Coalition (HRC). Serving as Co-Chair of the HRC, The Coca-Cola Company has helped HRC drive action to: • Help mak e Human Rights Due Diligence (HRDD) the norm in our industry by implementing forced labor-focused HRDD systems; • Impl ement HRDD systems in certain targeted high-risk supply chains, starting with palm oil in the People Positive Palm Project; and • Support the development of responsible recruitment markets through capacity building and government advocacy.",53,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +207,nestle.pdf,"We also collaborate with leading responsible businesses as part of the Leadership Group for Responsible Recruitment. This business group works closely with international organizations, trade unions, and key NGOs such as the Institute for Human Rights and Business and Verité to eliminate all worker fees in recruitment, both in law and in practice, by 2026. Our Value Chain Examples of Human Rights Due Diligence Approaches FARMS GROWING INGREDIENTS PRINCIPLES FOR SUSTAINABLE AGRICULTURE (PSA) VALIDATION Third-party validation programs approved under our PSA SELF-ASSESSMENT ECOVADIS PLATFORM Validated self-assessments to monitor environmental and social performance—over 2,000 system suppliers on the platform SUPPLIER GUIDING PRINCIPLES (SGP) AUDITS Audits against our SGP protocols at facilities— ~2,700 audits annually SGP AUDITS FOR WASTE MANAGEMENT Customized audit module to understand and improve the economic conditions and practices for people working across the waste collection sector INDIRECT SUPPLIERS (e.g.,",53,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +208,nestle.pdf,"700 audits annually SGP AUDITS FOR WASTE MANAGEMENT Customized audit module to understand and improve the economic conditions and practices for people working across the waste collection sector INDIRECT SUPPLIERS (e.g., information technology) TIER 1 SUPPLIERS (Packaging & Ingredients) MANUFACTURING (Company-owned facilities & bottling partners) END-OF-USE PACKAGING COLLECTION HumanRightsDueDiligenceAppr oaches A cross  OurV alue  Chain 2,770 AUDITS conducted in 2022 See our Human Rights 2022 Overview for comprehensive disclosures of our human rights policies, governance, due diligence, as well as access to remedy and grievance mechanisms.",53,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +209,nestle.pdf,"54THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT SAFETY & HEALTHHUMAN RIGHTSOVERVIEW DIVERSITY, EQUITY & INCLUSION GIVING BACK TO OUR COMMUNITIES ECONOMIC EMPOWERMENT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY 1 Sour ce: https://www.pewtrusts.org/en/research-and-analysis/ articles/2020/07/23/breaking-the-plastic-wave-top-findings LIVING WAGE As part of our commitment to respect human rights, we are actively engaging on the topic of a living wage. Over the past year, we have partnered with Business for Social Responsibility (BSR) to conduct a rigorous living wage gap analysis across our global offices and company- owned manufacturing sites. While further analysis is needed, we are proud to meet or exceed the BSR living wage benchmark in the vast majority of our own operations. Where gaps exist, we will be developing a roadmap to progress toward a living wage.",54,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +210,nestle.pdf,"Where gaps exist, we will be developing a roadmap to progress toward a living wage. We have also been working with peers through AIM-Progress, a forum of fast-moving consumer goods companies enabling and promoting responsible sourcing practices, to advance industry understanding and progress toward living wages in global supply chains. Visit AIM-Progress for additional information about our work. SPORTS & HUMAN RIGHTS The Coca-Cola Company is a long-time sponsor of global sporting events, including the Olympic Games and the FIFA World Cup. As a sponsor, the company has worked consistently with sport governing bodies, NGOs, governments, and unions to embed respect for human rights into the life cycle of these events. This work includes our leadership in the Centre for Sport & Human Rights, an organization that promotes human rights in the world of sport. We have seen progress in this space, including the International Olympic Committee issuing its first Strategic Framework on Human Rights, and FIFA adopting its own human rights policy and establishing a dedicated human rights program.",54,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +211,nestle.pdf,"We have seen progress in this space, including the International Olympic Committee issuing its first Strategic Framework on Human Rights, and FIFA adopting its own human rights policy and establishing a dedicated human rights program. Leading up to the 2022 FIFA World Cup in Qatar, the company and other sponsors engaged with FIFA, the Government of Qatar, and NGOs to help improve labor rights in the country, with important developments including Qatar’s enactment of significant labor reforms and FIFA’s announcement of a Legacy Fund to establish a labor excellence hub in partnership with the International Labor Organization. INFORMAL WASTE COLLECTION WORKERS & HUMAN RIGHTS The Coca-Cola Company has been a leader in driving ambitious sustainable packaging through our World Without Waste program. We have collaborated with peers across our industry, government, and civil society to tackle the issue of ocean-bound plastics. Informal waste workers—or grassroots recyclers— collect and sort up to 60% of plastic waste that is recycled around the world. 1 They are integral to the functioning of an efficient, circular economy for packaging. They are also extremely vulnerable to human rights abuse. The severity and complexity of human rights impacts on grassroots recyclers makes multi-stakeholder collaboration essential.",54,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +212,nestle.pdf,"They are also extremely vulnerable to human rights abuse. The severity and complexity of human rights impacts on grassroots recyclers makes multi-stakeholder collaboration essential. In 2022, we partnered with other leading consumer goods companies and NGOs to launch the Fair Circularity Principles, which apply the expectations and responsibilities in the UN Guiding Principles to grassroots recycling. For more information, see the Packaging section. HUMAN RIGHTS CONFERENCE In October, The Coca-Cola Company was delighted to host the 14th Annual Engaging Business Forum at our headquarters in Atlanta. Sponsored by the International Organization of Employers, the United States Council for International Business and the U.S. Chamber of Commerce, the Forum has become one of the preeminent business and human rights conferences, where business leaders and experts from civil society, trade unions and governments hold candid discussions on business experience in respecting human rights across their operations and supply chains. The theme of this latest Forum was The Future of Responsible Business Conduct, with stakeholder panels discussing subjects such as the increasing regulation of human rights, grievance mechanisms and effective remedy collaborations, and the growth of investor benchmarks.",54,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +213,nestle.pdf,"ImprovingSustainableandResponsibleLabor Practices  inOur Sugar Supply Chain  in  Pakistan  Our company has been working with Bonsucro, a leading international NGO, as well as other local and international experts to address human rights risks in the sugarcane supply chain in Pakistan. Our partners include GoodWeave International, a non-profit with expertise in stopping child, forced and bonded labor in global supply chains, and AgNovate, a respected local organization and licensed Bonsucro trainer. This two-and-a-half-year project, which runs to the end of 2024, aims to improve the adoption of sustainable and responsible labor practices in sugar production and develop remediation plans to address child labor and forced labor prevalent in the industry. In November 2022, AgNovate delivered the first training session of the project to 31 participants, including managers of sugar mills. The training was based on GoodWeave’s best practices on ending child and worker exploitation. Gap assessments were then conducted of the six partner sugar mills and selected smallholder farmers on their compliance with the requirements of the Bonsucro Production Standard, which includes ensuring workers do not suffer from forced labor and there is no child labor.",54,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +214,nestle.pdf,"The project will support the mills to develop their own action plans toward continuous improvement and compliance with version 5.1 of the Bonsucro Production Standard. UsingT echnology-Led  Solutions  for Deeper Supply Chain  Due  Diligence The Coca-Cola Company has developed a digital platform that identifies recruitment-related human rights risks within supply chains together with our partners Diginex, an impact technology company, and Reckitt, another consumer goods company. The platform aims to improve respect for human rights in the hiring process through due diligence and ethical recruitment. The platform evolved to include a multilingual worker- voice tool, diginexAPPRISE, which allows companies to conduct digital worker interviews in supply chains at scale, increasing transparency and preventing unethical recruitment practices. The use of smartphone technology allows a greater number of workers to be reached and helps ensure that foreign migrant workers with low literacy levels are included in the interview process. We were pleased to convene the Fair Circularity Initiative, which was launched by The Coca-Cola Company and three of their peers in late 2022.",54,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +215,nestle.pdf,"We were pleased to convene the Fair Circularity Initiative, which was launched by The Coca-Cola Company and three of their peers in late 2022. When companies adopt and advance the new Fair Circularity Principles in their value chains, engaging meaningfully with waste pickers, it will lead to human rights being respected, including better incomes and working conditions, and inclusion in decision-making processes that affect their lives.” NIGEL HARRIS Chief Executive, Tearfund",54,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +216,nestle.pdf,"55THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT SAFETY & HEALTHHUMAN RIGHTSOVERVIEW DIVERSITY, EQUITY & INCLUSION GIVING BACK TO OUR COMMUNITIES ECONOMIC EMPOWERMENT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY SAFETY & HEALTH We make and deliver our products and provide services with a goal of zero work-related injuries for our employees, contractors and communities. Providing our employees with a safe workplace environment is among the company’s greatest responsibilities and is part of our commitment to employees, customers and consumers. Our employees are our most valuable partners, sources of best practices and the implementors of our strategy to embed safe habits and strengthen our safety culture.",55,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +217,nestle.pdf,"Our employees are our most valuable partners, sources of best practices and the implementors of our strategy to embed safe habits and strengthen our safety culture. ACT PLAN 4-TIER ACTION PLAN DO CHECK Set safety expectations Support strong safety culture Define metrics Engage stakeholders Execute plan Audit, set actions and report Review and refine results Continuous improvement ZeroIsPossible—Our Safety Framework Our “Zero Is Possible” vision aims to identify risks and control preventable serious incidents in our system facilities, fleet and distribution operations. We are focused on creating safe and healthy workplaces and supporting a culture of continuous learning and improvement. Management commitment and strong employee engagement are foundational to establishing this culture. We have implemented comprehensive, preventative programs to further identify and mitigate the potential for serious incidents to occur in our facilities. We are integrating operational learning while also demonstrating progress and embedding safety as a key organizational value.",55,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +218,nestle.pdf,"We have implemented comprehensive, preventative programs to further identify and mitigate the potential for serious incidents to occur in our facilities. We are integrating operational learning while also demonstrating progress and embedding safety as a key organizational value. In2022,w e  focused  on thr ee  key pillars  of our safety program: • CULTURE: We revamped our Safety Training Academy in 2022, providing enhanced resources, tools and training which include operational safety and road safety programs. As part of our approach to safety culture across the Coca-Cola system, we incorporated a new Human and Organizational Performance (HOP) philosophy that focuses on critical and interconnected aspects including people, culture, equipment, work systems and processes. • SERIOUSINCIDENT PREVENTION: We expanded our self- assessments and governance audits beyond production operations to include fleet and distribution operations (route-to-market). We continue our focus on identifying, implementing and strengthening controls to prevent serious injuries. We also continue to build unique solutions (i.e., toolkits, guidance) to enhance the capacity and capability of our system in identifying and mitigating risks.",55,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +219,nestle.pdf,"We also continue to build unique solutions (i.e., toolkits, guidance) to enhance the capacity and capability of our system in identifying and mitigating risks. •  TECHNOLOGYAND  INNOVATION: We continued investing in new technologies and shared learnings across the organization. We completed more than 20 technology pilots globally, which are now being implemented by many of our bottling partners. These include AI technology camera systems to detect unsafe conditions and driver simulators to train and prepare drivers, among others. OVERARCHING GOALS Keep safety at the center Reinforce through leadership HumanandOrganizational Performance We have strengthened our health and safety strategy with multi-year purposeful actions across our end-to-end supply chain. We have committed to integrating the Human and Organizational Performance (HOP) philosophy into our operational learning processes; building an environment of active employee engagement; accelerating learning and improvement processes; building better controls based on work in practice; and supporting the right culture. Several of our bottling partners across regions have deployed HOP operational learning into their organizations.",55,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +220,nestle.pdf,"Several of our bottling partners across regions have deployed HOP operational learning into their organizations. To date, over 100 operations across our system have begun integrating HOP principles with significant improvements, and this journey will continue in 2023 and onwards. The Coca-Cola Company’s global Lost-Time Incident Rate (LTIR) was 0.25 in 2022. 1 1 This is c ompany-owned data. For exclusions, please view the criteria statement in the Independent Accountants’ Review Report. Safe, high-quality drinks people can trust, and a safe, secure workplace are an essential part of who we are at The Coca-Cola Company. Although we have seen significant improvements in our safety performance, we know there is more to be done. By building capabilities across our system, identifying where we need to improve, leveraging industry best practices and engaging with our employees, we are working toward our vision of “Zero Is Possible” as it relates to serious injuries in the workplace.” ZOLTAN SYPOSS Chief Quality, Safety & Environmental Offi cer SECTIONSCOPE: In this section our safety and health strategy refers to actions by the company as well as our owned and independent bottling partners.",55,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +221,nestle.pdf,The data reported for LTIR only includes company- owned facilities.,55,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +222,nestle.pdf,"56THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT SAFETY & HEALTHHUMAN RIGHTSOVERVIEW DIVERSITY, EQUITY & INCLUSION GIVING BACK TO OUR COMMUNITIES ECONOMIC EMPOWERMENT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY DIVERSITY, EQUITY & INCLUSION As a purpose-driven company, we help create a better shared future for everyone our brands and business system touches by working to provide access to equal opportunity and fostering belonging both in our workplaces and the communities we serve. Together with global, national and local organizations—plus our network of bottling partners—we remain focused on investing to improve people’s lives, from our employees to those our business system touches to the communities we call home. While we continued to make meaningful progress in 2022, our work is an ongoing journey in an ever-changing landscape. That’s why we continue to prioritize listening and learning; executing our strategy consistently; and holding ourselves accountable for continuous progress.",56,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +223,nestle.pdf,"That’s why we continue to prioritize listening and learning; executing our strategy consistently; and holding ourselves accountable for continuous progress. EQUAL PAY FOR EQUAL WORK Pay equity is defined as compensating employees fairly and equitably, without regard to gender (globally), or race and ethnicity (in the United States). On an annual basis, we conduct audits to ensure our employees are paid equitably. Additionally, we are diligent and stay aware of the changing regulatory landscape. In 2022, we published our first-ever pay gap report for Coca-Cola Ireland. We are working to embed our philosophy into our business practices and processes, and to extend our analyses beyond base pay to broader aspects of our total rewards policies. Read more about our pay equity philosophy. BUILDING AN INCLUSIVE CULTURE In 2022, we added specific inclusion-related questions to our annual Culture & Engagement Survey. Responses serve as a baseline for an Inclusion Index reflecting employee sentiment about belonging, fairness, respect and psychological safety, as well as conditions and behaviors that create an inclusive environment at our company. Our employee-led Inclusion Networks serve as valuable resources to both employees and our company by providing opportunities to connect with colleagues who share similar interests and backgrounds.",56,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +224,nestle.pdf,"Our employee-led Inclusion Networks serve as valuable resources to both employees and our company by providing opportunities to connect with colleagues who share similar interests and backgrounds. They also create diverse sounding boards for business strategies and initiatives, capturing input on potential actions through the lens of diversity, equity and inclusion. These regionally structured, globally connected employee groups help build affinity and allyship that enhance our ability to recruit, retain, engage and develop diverse talent. Inclusion Networks enable associates to participate in professional and personal growth opportunities through training and education, community projects, networking events, cultural heritage month celebrations and management opportunities. InclusionNetworks In2022,w e  continued t o  embed  our DEI  priorities  across  our business. Weapproachour DEI  strategythr ough the  lens  of threecoreambitions: ADVANCE equity within our business, communities, and the marketplace. ASPIRET O CREATE a workforce that mirrors the markets we serve. ENABLE an inclusive culture where our employees thrive.",56,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +225,nestle.pdf,"ASPIRET O CREATE a workforce that mirrors the markets we serve. ENABLE an inclusive culture where our employees thrive. • JAPAN: We earned a “Rainbow”, the highest rating in the 2022 PRIDE Index, for our LGBTQI+-friendly workplace initiatives. • SOUTHAFRICA: We participated in Johannesburg Pride by partnering with Pride of Africa, an umbrella brand born out of need for LGBTQI+ representation in Africa. • I TA LY : As a continuation of a longstanding partnership, we were the primary sponsor of the XXXVII edition of the Special Olympics National Summer Games in Turin, where athletes with intellectual disabilities competed in 20 sports. More than 90 Coca-Cola system volunteers supported the event, which also included a communications campaign celebrating participating athletes. • As part o f our efforts to create a diverse, equitable and inclusive workplace, we are partnering with the Valuable 500’s Generation Valuable initiative. This program, which kicks off in 2023, is designed to accelerate opportunities for people with disabilities t o become the talented voices of tomorrow’s C-Suite.",56,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +226,nestle.pdf,"This program, which kicks off in 2023, is designed to accelerate opportunities for people with disabilities t o become the talented voices of tomorrow’s C-Suite. UNITED STATES LATIN AMERICA ASEAN & SOUTH PACIFIC JAPAN & SOUTH KOREAINDIA & SOUTHWEST ASIA AFRICA EURASIA & MIDDLE EAST EUROPE Diversity, equity and inclusion is in our DNA. It’s woven into all aspects of how we do business and function as a team—from talent acquisition, to supply chain, to the processes that shape our strategy and operations. It fosters greater creativity, innovation and connection to the wider community. This journey requires ongoing determination, and we are committed to developing lasting change through sustainable and measurable actions.” TAMEKA HARPER Global Chief Diversity, Equity & Inclusion Offi cer SECTIONSCOPE: In this section, our DEI actions refer to actions by the company, but exclude our independent bottling partners and independent suppliers and partners.",56,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +227,nestle.pdf,"57THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT SAFETY & HEALTHHUMAN RIGHTSOVERVIEW DIVERSITY, EQUITY & INCLUSION GIVING BACK TO OUR COMMUNITIES ECONOMIC EMPOWERMENT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY MIRRORING THE MARKETS WE SERVE By 2030, we aspire to be 50% led by women globally and, in the United States, to align race and ethnicity representation to U.S. census data. While these metrics are important indicators of our progress, we are taking an iterative and holistic approach focused on continuous learning. Here’s a 2022 update on our progress against these aspirations: 1 Da ta as of December 31, 2022, for salaried and hourly employees. Race/ethnicity data is for U.S. workforce only. This data excludes Bottling Investments Group (BIG), Global Ventures, fairlife and BODYARMOR. For exclusions, please view the criteria statement in the Independent Accountants’ Review Report. Note: The percentages in each column in these charts may not sum to 100% due to rounding.",57,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +228,nestle.pdf,"For exclusions, please view the criteria statement in the Independent Accountants’ Review Report. Note: The percentages in each column in these charts may not sum to 100% due to rounding. 2022Race/Ethnicity Representation  by Level  (U.S.  only)1 SENIOR LEADERSHIP MIDDLE MANAGEMENT PROFESSIONALS TOTAL American Indian/Alaskan Native 0.0% 0.3% 0.4% 0.3% Asian 10.0% 10.4% 5.4% 8.1% Black/African American 8.6% 16.1% 30.3% 22.0% Hispanic/Latino 9.9% 8.7% 21.2% 14.6% Native Hawaiian/ Other Pacific Islander 0.1% 0.1% 0.5% 0.3% Not specified 9.1% 5.2% 2.4% 4.3% Two or more races 0.9% 2.2% 3.0% 2.5% White 61.4% 57.1% 36.7% 48.",57,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 " +229,nestle.pdf,"4% 4.3% Two or more races 0.9% 2.2% 3.0% 2.5% White 61.4% 57.1% 36.7% 48.1% 2022Gender Representation  by Level  (global)1 SENIOR LEADERSHIP MIDDLE MANAGEMENT PROFESSIONALS TOTAL Female 39.0% 51.3% 36.0% 44.0% Male 61.0% 48.7% 64.0% 56.0% In 2022, our global female representation increased 1.1% overall, with increases across all levels. In the United States, we saw an increase in Asian and Black/African American representation. CHALLENGING OURSELVES TO EMPOWER COMMUNITIES The Coca-Cola North America operating unit recently launched Asian Pacific, Black and Hispanic Equity Accountability Councils (EACs) to guide community engagement and investment, with an emphasis on economic equity. The EACs are designed to drive quality of life improvements in under-resourced communities through economic mobility, financial stability and the well-being of individuals and households.",57,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +230,nestle.pdf,"The EACs are designed to drive quality of life improvements in under-resourced communities through economic mobility, financial stability and the well-being of individuals and households. The councils will identify initiatives that reflect diversity in communities which have direct links to our DEI strategy. DRIVING ACCOUNTABILITY To continue progress toward achieving our sustainability goals, the Talent and Compensation Committee approved DEI links to executive compensation as part of the annual incentive for our executive officers, which will help drive our 2030 DEI aspirations. The links to executive compensation are based on achieving predefined qualitative and quantitative DEI components. TRANSPARENCY AND REPORTING We believe in full transparency and disclosure. We share diversity metrics quarterly with senior leaders, and we externally publish our representation data annually by race/ ethnicity (U.S.) and gender (globally) for our overall workforce and leadership. We publish data submitted to the U.S. Equal Employment Opportunity Commission (EEO-1 survey results) on our website.",57,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 " +231,nestle.pdf,"58THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT SAFETY & HEALTHHUMAN RIGHTSOVERVIEW DIVERSITY, EQUITY & INCLUSION GIVING BACK TO OUR COMMUNITIES ECONOMIC EMPOWERMENT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY RECRUITING AND DEVELOPING DIVERSE TALENT In 2022, we continued to enhance our diversity hiring efforts through equitable recruitment, interviewing and onboarding processes. We expanded our partnerships with Historically Black Colleges and Universities as well as leadership development organizations, including the National Black MBA Association, Executive Leadership Council and Thurgood Marshall National Black Talent Bank. Crowdfundingfor Minority-Owned SmallBusiness We are a founding sponsor of Rise Up Crowdfunding, an equity crowdfunding portal focused on women and minority-owned businesses. The platform connects diverse startups with investors to expand access to capital while also providing business management resources and coaching. SUPPLIER DIVERSITY Coca-Cola is working to maximize procurement opportunities and proactively engaging and building partnerships with diverse- owned suppliers spanning a range of industries.",58,"[Guess]: No +[Confidence]: 1.0 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +232,nestle.pdf,"SUPPLIER DIVERSITY Coca-Cola is working to maximize procurement opportunities and proactively engaging and building partnerships with diverse- owned suppliers spanning a range of industries. We are focused on increasing the overall diversity of our suppliers and are working to spend at least $1 billion annually with diverse suppliers. We aspire to join the Billion Dollar Roundtable—the gold standard of supplier diversity, currently with only 27 member companies. In 2022, our supplier diversity team connected independent Coca-Cola bottlers in the United States and Canada with business partners to boost our overall impact via sponsored matchmaking events at the National Minority Supplier Development Council and Women’s Business Enterprise National Council conferences. The team is exploring ways to expand our supplier diversity program internationally. $900M+ spent in 2022 with diverse Tier 1 suppliers in the United States, an increase over prior years and progress toward our $1 billion annual goal. $200M of incremental spend with Black-owned enterprises in the United States, contributing to the company’s overall goal of $500 million. We share Rise Up’s mission to support businesses and underrepresented groups within the communities we serve.",58,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +233,nestle.pdf,"We share Rise Up’s mission to support businesses and underrepresented groups within the communities we serve. This much-needed resource can, in many cases, help small businesses scale up or expand their operations, open new locations and grow their brands.” FERNANDO HERNANDEZ Senior Director, Supplier Diversity",58,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +234,nestle.pdf,"59THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT SAFETY & HEALTHHUMAN RIGHTSOVERVIEW DIVERSITY, EQUITY & INCLUSION GIVING BACK TO OUR COMMUNITIES ECONOMIC EMPOWERMENT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY LEVERAGING THE POWER OF OUR BRANDS AND PARTNERSHIPS Coca-ColaBacklotMovieExperience For the sixth consecutive year, Coca-Cola sponsored Univision’s “Premios Juventud” awards show in 2022, expanding the Coca-Cola Backlot Movie Experience at La Marqueta in Puerto Rico. Attendees enjoyed Coca-Cola and Latin food pairings, cooking demos, live music performances and more. ExtendingOur Partnership With  ESSENCE Coca-Cola returned for its 26th year as Presenting Sponsor of the 2022 ESSENCE Festival of Culture in New Orleans as part of a five-year partnership extension with ESSENCE Communications, a leading media, technology and commerce company dedicated to serving Black women and communities.",59,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +235,nestle.pdf,"In 2021, we committed to doubling our spend with minority-owned media companies—to 8% of our total annual media budget—by 2024. By working with legacy partners like ESSENCE, along with new minority-owned and minority-led media companies, we are on track to meet this commitment. MulticulturalMarketing In 2022, our brands further expanded into diverse and inclusive marketing. In the United States, smartwater and vitaminwater launched brand ambassador partnerships with Zendaya and Lil Nas X, respectively, and Minute Maid Aguas Frescas (a Latin-inspired fruit drink innovation) partnered with Mexican NASCAR driver Daniel Suárez for a Hispanic Heritage Month activation. Sprite Zero Sugar teamed up with Marvel Studios’ Black Panther: Wakanda Forever on the “Infinite Potential. Zero Limits” campaign, which highlighted underrepresented Black and Latino creators from STEAM (Science, Technology, Engineering, Arts and Mathematics) communities. Globally, our Coca-Cola campaign for the FIFA World Cup 2022™ was anchored by a multicultural music anthem recorded by female artists from the Middle East and Latin America.",59,"[Guess]: No +[Confidence]: 1.0 +","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +236,nestle.pdf,"60THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT GIVING BACK TO OUR COMMUNITIES SAFETY & HEALTHHUMAN RIGHTSOVERVIEW DIVERSITY, EQUITY & INCLUSION GIVING BACK TO OUR COMMUNITIES ECONOMIC EMPOWERMENT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY GIVING BACK TO OUR COMMUNITIES In 2022, The Coca-Cola Foundation, the philanthropic arm of The Coca-Cola Company, contributed $94.8 million to 301 organizations around the world to help create a better shared future for the communities our business serves. Grants funded by the Foundation complement the contributions of our company operating units and bottling partners. Standingwith  Ukraine The Coca-Cola Foundation awarded more than $3 million in grants to support the International Federation of Red Cross and Red Crescent Societies (IFRC) and other humanitarian organizations providing on- the-ground emergency relief to millions of people impacted by the war in Ukraine. These grants will also provide support to displaced people and refugees in surrounding countries.",60,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +237,nestle.pdf,"These grants will also provide support to displaced people and refugees in surrounding countries. The Coca-Cola Foundation, along with The Coca-Cola Company and its global bottling partners, committed to contributions totaling more than $20 million to support employees and humanitarian relief efforts. Disaster Relief We have a long history of supporting local communities in times of crisis— a commitment we continued in 2022. In addition to our support for Ukraine, the Foundation provided approximately $4 million in funding for natural disaster and humanitarian relief efforts in 11 countries around the world, complementing financial and in-kind donations from The Coca-Cola Company and bottling partners. In addition to supporting local communities, the Coca-Cola system’s top priority following a natural disaster is to ensure the safety of all associates and their families. The Coca-Cola Employee Disaster Relief Fund (EDRF) provided nearly $5 million (including humanitarian relief for Ukraine) through more than 4,000 grants to company and bottling partner employees impacted by natural disasters and humanitarian crises in 2022. The EDRF consists of contributions from The Coca-Cola Company, The Coca-Cola Foundation, bottling partners and system associates.",60,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +238,nestle.pdf,"The EDRF consists of contributions from The Coca-Cola Company, The Coca-Cola Foundation, bottling partners and system associates. $94.8M 2022 Contributions $31.8M $14.1M$13.0M $12.0M $10.1M $7.0M $6.8M 33% Water & Environment 11% Community Well-Being 7% Women’s Empowerment 7% Matching Gifts 15% Disaster Relief & Humanitarian Aid 14% Education & Youth Development 13% Recycling TheCoca-ColaFoundation:2022Contributions 1.4% of operating income invested back into local communities from The Coca-Cola Company and The Coca-Cola Foundation in 2022—above our annual goal of 1% 1 $1.5B+ DONATED by The Coca-Cola Foundation since its inception in 1984 1 This per centage was calculated based on the company’s prior year operating income (excluding the Bottling Investments Group operating segment). SECTIONSCOPE: The philanthropic giving refers to contributions from The Coca-Cola Foundation.",60,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +239,nestle.pdf,"61THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT SAFETY & HEALTHHUMAN RIGHTSOVERVIEW DIVERSITY, EQUITY & INCLUSION GIVING BACK TO OUR COMMUNITIES ECONOMIC EMPOWERMENT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY A Refreshed  Giving Appr oach The Coca-Cola Foundation’s mission is to make a difference in communities where our company operates and where our employees live and work. The Foundation supports transformative ideas and institutions that address pressing and complex global challenges. Our goal is to leave a measurable and lasting impact in local communities through a focus on the environment and society.",61,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +240,nestle.pdf,"The Foundation supports transformative ideas and institutions that address pressing and complex global challenges. Our goal is to leave a measurable and lasting impact in local communities through a focus on the environment and society. As of 2022, our giving is focused on impacting these areas: Thefollowingthr ee  grants  reflect the  Foundation’s  new giving  strategy: $1milliont o  fund the  CARE HumanitarianSurgeFund, a global reserve fund to support life-saving relief efforts immediately following natural disasters, plus preparedness efforts such as prepositioning supplies, training staff and partnering with local and national organizations to develop crisis plans. $1milliont o the American  Red  Cross to support the Global Disaster Preparedness Center (GDPC) in seven countries facing significant climate risks and social vulnerability: Bangladesh, El Salvador, Guatemala, Honduras, Indonesia, Nepal and the Philippines.",61,"[Guess]: No +[Confidence]: 1.0 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +241,nestle.pdf,"$1.25milliont o  Imagine  H20 to launch the Sustainable Access Solution Fund, a fund that will support water and climate-focused innovation projects in both emerging markets and the United States with a focus on ensuring sustainable access to safe drinking water. HometownSupport Atlanta—where the first Coca-Cola was served in 1886—is a thriving city we are proud to call home.",61,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +242,nestle.pdf,"HometownSupport Atlanta—where the first Coca-Cola was served in 1886—is a thriving city we are proud to call home. In 2022, the Foundation continued to invest in community organizations working to create a better shared future for our hometown: •  $3  million to fund scholarship programs at 10 Atlanta institutions of higher learning •  $1  million to the Atlanta Police Foundation to expand youth development services for at-risk youth •  $500,000 to the Atlanta Women’s Foundation to educate, train and prepare 1,000 women for employment or to become entrepreneurs •  $500,000 to the National Center for Civil and Human Rights to expand its civil rights education curriculum • $300,000 to the Latin American Association to expand entrepreneurial education throughout the state of Georgia ENVIRONMENTAL SOCIAL The Coca-Cola Foundation remains committed to making a difference by addressing the complex global challenges that impact our communities around the world.” SAADIA MADSBJERG President of The Coca-Cola Foundation and Vice President of Global Community Affairs for The Coca-Cola Company",61,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +243,nestle.pdf,"62THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT SAFETY & HEALTHHUMAN RIGHTSOVERVIEW DIVERSITY, EQUITY & INCLUSION GIVING BACK TO OUR COMMUNITIES ECONOMIC EMPOWERMENT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY ECONOMIC EMPOWERMENT The Coca-Cola Company has a long history of enhancing the livelihoods of the people in the communities we proudly serve. We continue to help enable the economic empowerment of a diverse network of customers, suppliers and communities across our value chain. This includes smallholder farmers that supply agricultural ingredients used in our beverages and juice processors and sugar millers—to warehousing, construction engineering, transportation and facilities management partners, IT, marketing and other service providers. We embrace the Organization for Economic Co-operation and Development (OECD) definition of economic empowerment, which we see as fundamental to strengthening human rights and enabling all people, particularly vulnerable and underrepresented groups, to have control over their lives and positively influence society.",62,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +244,nestle.pdf,"Our economic empowerment efforts deliver tangible results in markets around the world, where we harness partnerships and deliver programs tailored to local needs and nuances. This work builds on the momentum created by our decade-long 5by20® program, created in 2010 to enable the economic empowerment of 5 million women entrepreneurs. Together with our public and private sector partners, including our bottling partners and The Coca-Cola Foundation, we exceeded our target, enabling the economic empowerment of more than 6 million women. We have seen evidence that helping female entrepreneurs overcome social and economic barriers to success creates a ripple effect in local communities with both societal and commercial impacts. According to a 2015 McKinsey Global Institute report, if women were to play an identical role in the global labor market to that of men, it is estimated that $28 trillion could be added to the global gross domestic product (GDP). While women’s entrepreneurship continues to play an active role in business sustainability, we are broadening economic empowerment efforts to help create shared value—and a better shared future—through training, networking and mentoring programs aimed at working with underrepresented groups.",62,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +245,nestle.pdf,"These programs focus on building financial and digital literacy and enabling access to opportunities through our supplier diversity work. Economic empowerment is one of The Coca-Cola Foundation’s six new priority giving pillars. The Coca-Cola Foundation envisions inclusive economies around the world with expanded opportunities for shared prosperity, especially for the communities that face the greatest barriers to advancing their well-being. KAZAKHSTAN The Belesteri (“Stepping Stones”) program has empowered more than 50,000 aspiring business owners in rural areas over the last 10 years. An annual competition awards financial grants to women entrepreneurs to launch or expand their enterprises. The program, which is supported by The Coca-Cola Foundation, has helped create more than 300 jobs and has provided life-changing income streams for hundreds of families. More than 15,000 women were trained in 2022. LATIN AMERICA In 2022, the Coca-Cola system in Latin America continued to support small retailers to rebound from the adverse economic impacts of COVID-19 through business and financial skills training programs in Bolivia, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, Mexico, Paraguay and Peru.",62,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +246,nestle.pdf,"AFRICA Coca-Cola Beverages Africa recently expanded its approach to promoting economic inclusion across its value chain to include under-served women, youth and persons with disabilities. Our bottling partner has worked with local non-profits to launch entrepreneurship and employability programs in Ethiopia, Kenya, South Africa, Tanzania and Uganda. NEPAL The Saksham initiative has provided skills training, planning tools and networking opportunities to help over 1,000 small-scale women entrepreneurs from three provinces grow their retail businesses. THE PHILIPPINES An estimated 1,500 micro-entrepreneurs from Davao del Norte have completed iSTAR, an enhanced digital version of the Sari-Sari Store Training and Access to Resources (STAR) program featuring entrepreneurship training, access to financial resources and online business development tools. The collaboration with the Technical Education and Skills Development Authority (TESDA) and Tagum City Council of Women Foundation supports Coca-Cola Philippines’ broader economic empowerment strategy to break the cycle of generational poverty.",62,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +247,nestle.pdf,"The collaboration with the Technical Education and Skills Development Authority (TESDA) and Tagum City Council of Women Foundation supports Coca-Cola Philippines’ broader economic empowerment strategy to break the cycle of generational poverty. EmpoweringCommunitiesAr ound the W orld SECTIONSCOPE: In this section our economic empowerment work refers to actions by the company, The Coca-Cola Foundation, our owned and independent bottling partners and our independent suppliers and partners.",62,"[Guess]: No +[Confidence]: 1.0 0","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +248,nestle.pdf,"63THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT EUROPE, MIDDLE EAST & AFRICAASIA PACIFICOVERVIEW LATIN AMERICA NORTH AMERICA GLOBAL VENTURES/BOTTLING INVESTMENTS GROUP 2022 GLOBAL UNIT CASE VOLUME MIX By Operating Segment 28% Europe, Middle East & Africa 27% Latin America 17% North America 24% Asia Pacific 4% Global Ventures 2.2B servings per day in more than 200 countries and territories around the world CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY Operations Highlights Our networked organization is comprised of nine operating units that are focused on regional and local execution and sit under four geographic operating segments—Asia Pacific; Europe, Middle East & Africa; Latin America; and North America—plus Global Ventures and Bottling Investments Group. This structure is supported by our Platform Services organization and center functions, which collectively provide global services and expertise across a range of critical capabilities. The following pages offer a look at our operations, their business results and some key activities from 2022.",63,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +249,nestle.pdf,"64THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT EUROPE, MIDDLE EAST & AFRICAASIA PACIFICOVERVIEW LATIN AMERICA NORTH AMERICA GLOBAL VENTURES/BOTTLING INVESTMENTS GROUP CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY ASIA PACIFIC 11% 2022 9% 2021 5% 2019 (12%) 2020 -12 -8 -4 0 4 8 12 Organic Revenue Growth (Non-GAAP)1 Greater China and Mongolia   ASEAN and South Pacific India and Southwest Asia Japan and South Korea 26% 15% 20% 39% 2022 Unit Case Volume Mix by Operating Unit Trademark Coca-Cola  Sparkling Flavors Water, Sports, Coffee and Tea Juice,",64,"[Guess]: No +[Confidence]: 0.99 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +250,nestle.pdf,"Sports, Coffee and Tea Juice, Value-Added Dairy and Plant-Based Beverages 33% 8% 28% 31% 2022 Unit Case Volume Mix by Category -8 -4 0 4 8 9% 2022 4% 2021 3% 2019 (6%) 2020 Comparable Currency Neutral Operating Income Growth (Non-GAAP)2 2022 HIGHLIGHTS • In 20 22, the company gained value share in total nonalcoholic ready-to-drink beverages, led by share gains in India, Australia, Japan and South Korea. • W e made significant progress on World Without Waste initiatives in the Maldives by launching a returnable glass bottle and commissioning a can line, scaling up collection and recycling, and advocating for Extended Producer Responsibility regulation embracing circularity. • With funding fr om The Coca-Cola Foundation, we supported Planet Water Foundation in scaling the deployment of AquaTower community water filtration systems in Cambodia, providing communities in need with clean water access and hygiene education. • Our Unnati Grapes initiative in India trained over 3,000 smallholder farmers to increase the quality and yield of grape cultivation, and supported an all-women farmer producer company.",64,"[Guess]: No +[Confidence]: 1.0","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +251,nestle.pdf,"• Our Unnati Grapes initiative in India trained over 3,000 smallholder farmers to increase the quality and yield of grape cultivation, and supported an all-women farmer producer company. • C oca-Cola Australia and Coca-Cola Europacific Partners Australia pledged to reduce the sugar content in their nonalcoholic beverage portfolio by 25% by 2025, as part of an updated industry-wide pledge announced by the Australian Beverages Council.RenewableEnergy in J apan Coca-Cola Japan Company has taken steps to transform their offices and concentrate plant to renewable energy sources for their electricity use. The headquarters in Shibuya has been running on renewable electricity since May 2021. Note: See pages 72–74 for reconciliations of non-GAAP financial measures to our results as reported under U.S. GAAP . 1 R eported net operating revenues grew 3%, declined 11%, grew 12% and grew 3% for the years ended December 31, 2019, 2020, 2021 and 2022, respectively.",64,"[Guess]: No +[Confidence]: 1.00 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +252,nestle.pdf,"2 R eported operating income was even, declined 7%, grew 9% and declined 1% for the years ended December 31, 2019, 2020, 2021 and 2022, respectively. 2022UnitCaseV olume  Mix by Country China 37% India 18% Japan 12% Philippines 8% Thailand 6% Australia 4% South Korea 3% Indonesia 2% Vietnam 2% Other 8% 2022UnitCase VolumeGrowth Trademark Coca-Cola 6% Sparkling Flavors 8% Water, Sports, Coffee and Tea 4% Juice, Value-Added Dairy and Plant-Based Beverages 9%",64,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +253,nestle.pdf,"65THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT EUROPE, MIDDLE EAST & AFRICAASIA PACIFICOVERVIEW LATIN AMERICA NORTH AMERICA GLOBAL VENTURES/BOTTLING INVESTMENTS GROUP CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY EUROPE, MIDDLE EAST & AFRICA -5 0 5 10 15 20 18% 2022 13% 2021 9% 2019 (1%) 2020 Comparable Currency Neutral Operating Income Growth (Non-GAAP)2 -15 -10 -5 0 5 10 15 20 18% 2022 18% 2021 5% 2019 (13%) 2020 Organic Revenue Growth (Non-GAAP)1 2022 HIGHLIGHTS • F or the year, the company gained value share in total nonalcoholic ready- to-drink beverages, led by share gains in France, Spain and Poland. • The C oca-Cola Foundation funded a partnership between the Water and Development Alliance, the Global Environment and Technology Foundation, U.S.",65,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +254,nestle.pdf,"• The C oca-Cola Foundation funded a partnership between the Water and Development Alliance, the Global Environment and Technology Foundation, U.S. Agency for International Development and the Soran Water Directorate to improve water access and quality and to reduce water losses in Iraq.  • W e launched the Coca-Cola “Believing is Magic” global campaign for FIFA World Cup Qatar 2022 by creating end-to-end, digitally driven experiences. Our digital platform, the Coca-Cola Fan Zone, was activated in 41 markets and featured social experiences for soccer fans. • In Es watini, The Coca-Cola Foundation supported the Ministry of Health’s Project Last Mile to strengthen the government’s capacity to store ultra- cold chain COVID-19 vaccines. • C oca-Cola Europacific Partners is supporting the hospitality industry across Spain to measure their emissions, identify emissions reduction opportunities and offset emissions to help reach carbon neutrality through the Hosteleria #PorElClima campaign.",65,"[Guess]: No +[Confidence]: 1.0","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +255,nestle.pdf,"Europe Africa Eurasia and Middle East 48% 27% 25% 2022 Unit Case Volume Mix by Operating Unit Trademark Coca-Cola  Sparkling Flavors Water, Sports, Coffee and Tea Juice, Value-Added Dairy and Plant-Based Beverages 55% 5% 14% 26% 2022 Unit Case Volume Mix by Category Note: See pages 72–74 for reconciliations of non-GAAP financial measures to our results as reported under U.S. GAAP . 1 R eported net operating revenues declined 1%, declined 14%, grew 19% and grew 5% for the years ended December 31, 2019, 2020, 2021 and 2022, respectively. 2 R eported operating income declined 4%, declined 7%, grew 13% and grew 6% for the years ended December 31, 2019, 2020, 2021 and 2022, respectively.",65,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +256,nestle.pdf,"2022UnitCaseV olume  Mix by Country Germany 7% South Africa 7% Türkiye 7% Great Britain 6% Spain 5% Nigeria 5% Pakistan 5% France 4% Italy 3% Other 51% 2022UnitCase VolumeGrowth Trademark Coca-Cola 4% Sparkling Flavors 2% Water, Sports, Coffee and Tea 6% Juice, Value-Added Dairy and Plant-Based Beverages (13%) ImprovingW atershed  Health  in  Pakistan  We worked with WWF-Pakistan to develop a watershed stewardship plan for the Ravi River watershed, a sub-basin of the Indus River Basin, and a priority watershed because it is a key ingredient sourcing (sugarcane) and market growth region. The river extends through both India and Pakistan and supports approximately 38 million people. Our analysis found that the river faces increasing water scarcity and quality challenges. The plan addresses infrastructure and ecosystems, community well- being, information management, policy and regulations, finance and planning. One project already underway is a partnership with WWF-Pakistan to address the identified water issues for approximately 360,000 people in Lahore.",65,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +257,nestle.pdf,"One project already underway is a partnership with WWF-Pakistan to address the identified water issues for approximately 360,000 people in Lahore. Between 2022–2023, the project will install household rainwater harvesting systems, recharge wells to replenish a groundwater aquifer, reforest urban areas and construct floating treatment wetlands. The treatment wetlands will allow wastewater to be reused for agriculture purposes and remove pollutants and excess nutrients from village ponds.",65,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +258,nestle.pdf,"66THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT EUROPE, MIDDLE EAST & AFRICAASIA PACIFICOVERVIEW LATIN AMERICA NORTH AMERICA GLOBAL VENTURES/BOTTLING INVESTMENTS GROUP CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY LATIN AMERICA 24% 2022 19% 2021 13% 2019 (1%) 2020 -5 0 5 10 15 20 25 Organic Revenue Growth (Non-GAAP)1 19% 2022 18% 2021 12% 2020 17% 2019 0 5 10 15 20 Comparable Currency Neutral Operating Income Growth (Non-GAAP)2 Trademark Coca-Cola  Water, Sports, Coffee and Tea Sparkling Flavors Juice, Value-Added Dairy and Plant-Based Beverages 57% 6% 21% 16% 2022 Unit Case Volume Mix by Category Note: See pages 72–74 for reconciliations of non-GAAP financial measures to our results as reported under U.S. GAAP .",66,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +259,nestle.pdf,"GAAP . 1 R eported net operating revenues grew 3%, declined 15%, grew 18% and grew 19% for the years ended December 31, 2019, 2020, 2021 and 2022, respectively. 2 R eported operating income grew 2%, declined 11%, grew 20% and grew 13% for the years ended December 31, 2019, 2020, 2021 and 2022, respectively. 2022UnitCaseV olume  Mix by Country Mexico 45% Brazil 23% Argentina 6% Chile 4% Colombia 4% Peru 3% Bolivia 2% Guatemala 2% Ecuador 2% Other 9% 2022UnitCase VolumeGrowth Trademark Coca-Cola 5% Sparkling Flavors 6% Water, Sports, Coffee and Tea 10% Juice, Value-Added Dairy and Plant-Based Beverages 10% EncouragingConsumerst o  Shop  Local Coca-Cola launched the “Little Giants” or “Pequeños Gigantes” campaign in Latin America to encourage consumers to buy from their local store or market.",66,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +260,nestle.pdf,"The project demonstrates the importance of these mini markets in every neighborhood and the role of consumers and companies to contribute to their growth. This campaign was launched in Colombia, Peru, Costa Rica, Guatemala, the Dominican Republic and other countries in Latin America as part of our efforts to promote the economic development and empowerment of the traditional trade. 2022 HIGHLIGHTS • C oca-Cola Brazil joined the Yes to Racial Equality program run by the Identities of Brazil Institute to help generate opportunities for 3 million people in the coming years, and 10,000 new leadership positions for black people by 2030. • C oca-Cola Argentina and four bottling partners launched “Ruta Verde” or the “Green Road”, a recycling project that aims to increase the recovery of materials at collection points. This new project connects 28 municipalities across three provinces and helps more than 590,000 people access public places to recycle plastic, paper, cardboard, glass and cans.",66,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +261,nestle.pdf,"This new project connects 28 municipalities across three provinces and helps more than 590,000 people access public places to recycle plastic, paper, cardboard, glass and cans. • In the face of the 2022 water shortage in Nuevo Leon, Mexico, Coca-Cola and its bottling partners responded quickly to implement additional measures including rehabilitating 15 public water wells, with the goal of expanding water access to families throughout the city of Monterrey and its more than 5 million inhabitants. We also continued to provide clean drinking water, at all times, free of charge, to local families through an outdoor faucet at the Topo Chico bottling plant. • F unded by The Coca-Cola Foundation, the Safe Water project in Pucusana, Peru, focused on providing running water systems for the soup kitchens in the district, guaranteeing adequate hygienic conditions for meal preparation. The project installed elevated water tanks and piping for each community kitchen, allowing proper washing of the ingredients. Safe Water for Pucusana has installed 19 running water systems, guaranteeing safe meal preparation for more than 1,600 neighbors and users of the community kitchens.",66,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +262,nestle.pdf,"67THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT EUROPE, MIDDLE EAST & AFRICAASIA PACIFICOVERVIEW LATIN AMERICA NORTH AMERICA GLOBAL VENTURES/BOTTLING INVESTMENTS GROUP CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY NORTH AMERICA -5 0 5 10 15 20 13% 2022 14% 2021 3% 2019 (5%) 2020 Organic Revenue Growth (Non-GAAP)2 2022 HIGHLIGHTS • The c ompany gained value share in total nonalcoholic ready-to-drink beverages for the year, driven by the continued recovery in away-from- home channels along with strong performance in at-home channels for sparkling soft drinks and value-added dairy beverages. • In 20 22, Sprite began shifting all of its plastic packaging from green to clear, which helps with the recycling process and increases the material’s likelihood of being remade into new beverage bottles. Coca-Cola North America’s entire green plastic portfolio—including packaging for Fresca, Seagram’s and Mello Yello—is also making the transition to clear PET.",67,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +263,nestle.pdf,"Coca-Cola North America’s entire green plastic portfolio—including packaging for Fresca, Seagram’s and Mello Yello—is also making the transition to clear PET.  • The Coca-Cola Company donated $2 million to support the Smithsonian’s landmark new National Museum of the American Latino and Molina Family Latino Gallery. The museum will showcase Latino achievements and stories in U.S. art, history, culture and science, and will be built over a 10-year period. • Minut e Maid launched Aguas Frescas, a Latin American-inspired, noncarbonated beverage made with real fruit juices and natural flavors. The juice drinks deliver a bold, “refreshing AF” sensorial experience tailored to Gen Z tastes. 18% 2022 19% 2021 6% 2020 5% 2019 0 5 10 15 20 Comparable Currency Neutral Operating Income Growth (Non-GAAP)3 Trademark Coca-Cola  Water, Sports, Coffee and Tea Sparkling Flavors Juice, Value-Added Dairy and Plant-Based Beverages 44% 13% 20% 23% 2022 Unit Case Volume Mix by Category Note: See pages 72–74 for reconciliations of non-GAAP financial measures to our results as reported under U.S.",67,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +264,nestle.pdf,"GAAP .1 Ex cluding cap and label 2 R eported net operating revenues grew 2%, declined 4%, grew 15% and grew 19% for the years ended December 31, 2019, 2020, 2021 and 2022, respectively. 3 R eported operating income grew 12%, declined 5%, grew 35% and grew 12% for the years ended December 31, 2019, 2020, 2021 and 2022, respectively. 2022UnitCaseV olume  Mix by Country United States 95% Canada 5% 2022UnitCase VolumeGrowth Trademark Coca-Cola 1% Sparkling Flavors 3% Water, Sports, Coffee and Tea 0% Juice, Value-Added Dairy and Plant-Based Beverages 3% DASANI100%rPET Launch A majority of DASANI bottles in the United States—from 20-oz. and 1.5-liter singles to 10-oz. and 12-oz. multipacks— are now offered in 100% recycled plastic1. In Canada, this innovation spans all DASANI bottles.",67,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +265,nestle.pdf,"and 12-oz. multipacks— are now offered in 100% recycled plastic1. In Canada, this innovation spans all DASANI bottles. The brand’s transition to 100% recycled plastic1 is projected to save more than 20 million pounds of new plastic, compared to 2019, and cut more than 25,000 metric tons of greenhouse gas emissions in 2023 alone.",67,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +266,nestle.pdf,"68THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT EUROPE, MIDDLE EAST & AFRICAASIA PACIFICOVERVIEW LATIN AMERICA NORTH AMERICA GLOBAL VENTURES/BOTTLING INVESTMENTS GROUP CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY GLOBAL VENTURES/ BOTTLING INVESTMENTS GROUP GLOBAL VENTURES Global Ventures includes Costa Limited (Costa), Monster beverages, innocent, and doğadan tea. The majority of Global Ventures’ revenue consists of Costa and innocent, which together account for approximately 90% of total Global Ventures’ revenue. BOTTLING INVESTMENTS GROUP In January 2006, our company-owned bottling operations were brought together to form the Bottling Investments Group, or BIG. BIG ensures these operations receive the appropriate investments and expertise to foster long-term success. Our current footprint of bottlers exists in Southeast and Southwest Asia, the Middle East, and parts of Africa. We continue to drive strong performance within BIG while maximizing returns on our investments.",68,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +267,nestle.pdf,"Our current footprint of bottlers exists in Southeast and Southwest Asia, the Middle East, and parts of Africa. We continue to drive strong performance within BIG while maximizing returns on our investments. 2022 HIGHLIGHTS • T o celebrate the Christmas spirit, Costa launched Costa Expressions, a unique platform that celebrates and nurtures young artists in India. • C osta Coffee was voted the Nation’s Favorite Coffee Shop in the UK for the 12th consecutive year, according to a World Coffee Portal survey. • In 20 22, innocent launched its Revitalise super smoothie, the lowest sugar smoothie recipe it has ever launched. It has 11% less sugar than the brand’s other super smoothies. • In 20 22, innocent launched the Big Rewild, its first pan-European campaign to give nature a helping hand. Together with 11 NGOs and local organizations, innocent is aiming to protect and restore 2 million hectares of land by 2025. • In 20 22, doğadan made all packaging for its tea products plastic-free and added a “plant-based teabag” badge to inform consumers. 2022 HIGHLIGHTS • Gained shar e in sparkling soft drinks in India, Bangladesh and Singapore.",68,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +268,nestle.pdf,"2022 HIGHLIGHTS • Gained shar e in sparkling soft drinks in India, Bangladesh and Singapore. • Str engthened supply chain resilience and operational efficiency . Coca-ColaBeveragesA frica Other BIG  Bottlers GHANA ETHIOPIA UGANDA TANZANIA KENYA SOUTH AFRICA NAMIBIA ZAMBIA BOTSWANA MOZAMBIQUE ESWATINI COMOROS LESOTHO MAYOTTE SRI LANKA INDIA OMAN MYANMAR THE PHILIPPINES MALAYSIA SINGAPORE NEPAL BANGLADESH",68,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +269,nestle.pdf,"69THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY ABOUT THIS REPORT SCOPE OF THE REPORT This 2022 Business & Sustainability Report is The Coca-Cola Company’s fifth report to integrate overall business and sustainability performance, data and context, reflecting our continued journey toward driving sustainable business practices into our core strategy. This report has been prepared in accordance with Global Reporting Initiative (GRI) Standards: Core option. In addition, we provide indices for the standards set by the Sustainability Accounting Standards Board (SASB), the Task Force on Climate-related Financial Disclosures, the United Nations Sustainable Development Goals (SDGs), the United Nations Global Compact (UNGC) and the United Nations Guiding Principles Reporting Framework (UNGPRF). Limited assurance under attestation standards American Institute of Certified Public Accountants over select sustainability metrics was obtained from Ernst & Young LLP (as indicated in the Independent Accountant’s Review Report). Except as otherwise noted, this report covers the 2022 performance of The Coca-Cola Company and the Coca-Cola system (our company and our owned and independent bottling partners), as applicable.",69,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +270,nestle.pdf,"Except as otherwise noted, this report covers the 2022 performance of The Coca-Cola Company and the Coca-Cola system (our company and our owned and independent bottling partners), as applicable. Therefore, references to “currently,” “to date” or similar expressions reflect data and information as of December 31, 2022. Some initiatives that were launched in early 2023 are included to provide the most relevant information to stakeholders. In this report, any use of the terms “material,” “materiality,” “immaterial,” “substantive,” “significant” and other similar terminology refers to topics that reflect important economic, environmental and social impacts of The Coca-Cola Company or the Coca-Cola system or to topics or standards designated as “material” or “substantive” under the GHG Protocol, GRI or SASB standards. These terms as used in this report are not used, or intended to be construed, as they have been defined by or construed in accordance with the securities laws or any other laws of the United States or any other jurisdiction, or as these terms are used in the context of financial statements and financial reporting.",69,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +271,nestle.pdf,"The data presented in this report is collected using accepted and relevant scientific and industry accepted methodologies, which in some instances, are based on assumptions and estimates. Although our data has been internally vetted, there are inherent uncertainties and limitations in the collection and presentation of our data. For example, certain information in this report regarding the Coca-Cola system’s progress against our sustainability goals comes from third-party sources and operations outside of our control. While we believe such information is reasonably accurate and is based on generally accepted principles and methodology, the collection of this data is beyond our direct influence. In addition, the achievement of certain of our sustainability goals and targets that are discussed in this report are dependent on the actions of our bottling partners, suppliers and other third parties, all of which are outside of our control. Historical performance data may be revised due to reasons such as new data availability; industry-driven changes to methodologies; improvement in data collection and measuring systems; or activities such as joint ventures, mergers and acquisitions or divestitures. In cases where historical information is revised, we will footnote the change with a clear explanation. Statements about future developments and past occurrences are based on information and assumptions available as of the date of publication.",69,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +272,nestle.pdf,"In cases where historical information is revised, we will footnote the change with a clear explanation. Statements about future developments and past occurrences are based on information and assumptions available as of the date of publication. While we are committed to providing timely updates, the company holds no obligation to update information or statements. COMMON STOCK The Coca-Cola Company common stock is listed on the New York Stock Exchange, traded under the ticker symbol KO. The company has been one of the 30 companies in the Dow Jones Industrial Average since 1987. As of December 31, 2022, there were approximately 4.33 billion shares outstanding and 188,068 shareowners of record. DIVIDENDS At its February 2023 meeting, the Board of Directors increased our quarterly dividend 4.5% to $0.46 per share, equivalent to an annual dividend of $1.84, up from $1.76 in 2022. The company has increased its dividend per share in each of the last 61 years. Dividends are normally paid four times a year, usually in April, July, October and December. The company has paid 407 consecutive dividends, beginning in 1920.",69,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 " +273,nestle.pdf,"Dividends are normally paid four times a year, usually in April, July, October and December. The company has paid 407 consecutive dividends, beginning in 1920. DIRECT STOCK PURCHASE AND DIVIDEND REINVESTMENT Computershare Trust Company, N.A., sponsors and administers a direct stock purchase and dividend reinvestment plan for common stock of The Coca-Cola Company. The Computershare Investment Plan allows investors to directly purchase and sell shares of company common stock and reinvest dividends. To view or request plan materials please log on to www.computershare. com/investor and click on “invest now.” SHAREOWNER ACCOUNT ASSISTANCE For information and maintenance on your shareowner of record account, please contact: Computershare Investor Services P.O. Box 43078 Providence, RI 02940-3078 Telephone: (888) COKE-SHR (265-3747) or (781) 575-2653 Hearing Impaired: (800) 952-9245 Email: coca-cola@computershare.com Internet: www.computershare.com/coca-cola SHAREOWNER INTERNET ACCOUNT ACCESS For account access via the internet, please log on to www.computershare.com/investor.",69,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 " +274,nestle.pdf,"Once registered, shareowners can view account history and complete transactions online. ELECTRONIC DELIVERY If you are a shareowner of record, you have an opportunity to help the environment by signing up to receive your shareowner communications, including proxy materials, account statements and tax forms, electronically. To enroll in e-delivery, please log on to your account at www.computershare.com/investor and click on “View and update your profile” and then click on “Communication Preferences.” As a thank you, the company will have a tree planted on your behalf through American Forests. FORWARD-LOOKING STATEMENTS This report may contain statements, estimates or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause The Coca-Cola Company’s actual results to differ materially from its historical experience and our present expectations or projections. These risks include, but are not limited to, unfavorable economic and geopolitical conditions,",69,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +275,nestle.pdf,"These risks include, but are not limited to, unfavorable economic and geopolitical conditions, including the direct or indirect negative impacts of the conflict between Russia and Ukraine; increased competition; an inability to be successful in our innovation activities; changes in the retail landscape or the loss of key retail or foodservice customers; an inability to expand our business in emerging and developing markets; an inability to successfully manage the potential negative consequences of our productivity initiatives; an inability to attract or retain a highly skilled and diverse workforce; disruption of our supply chain, including increased commodity, raw material, packaging, energy, transportation and other input costs; the negative impacts of, and continuing uncertainties associated with the scope, severity and duration of the global COVID-19 pandemic and the substance and pace of the post-pandemic economic recovery; an inability to successfully integrate and manage our acquired businesses, brands or bottling operations or an inability realize a significant portion of the anticipated benefits of our joint ventures or strategic relationships; failure by our third-party service providers and business partners to satisfactorily fulfill their commitments and responsibilities; an inability to renew collective bargaining agreements on satisfactory terms, or we or our bottling partners experience strikes, work stoppages, labor shortages or labor unrest;",69,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +276,nestle.pdf,"an inability to renew collective bargaining agreements on satisfactory terms, or we or our bottling partners experience strikes, work stoppages, labor shortages or labor unrest; obesity and other health-related concerns; evolving consumer product and shopping preferences; product safety and quality concerns; perceived negative health consequences of certain ingredients, such as non- nutritive sweeteners and biotechnology-derived substances, and of other substances present in our beverage products or packaging materials; failure to digitalize the Coca-Cola system; damage to our brand image, corporate reputation and social license to operate from negative publicity, whether or not warranted, concerning product safety or quality, workplace and human rights, obesity or other issues; an inability to successfully manage new product launches; an inability to maintain good relationships with our bottling partners; deterioration in our bottling partners’ financial condition; an inability to successfully manage our refranchising activities; increases in income tax rates, changes in income tax laws or the unfavorable resolution of tax matters, including the outcome of our ongoing tax dispute or any related disputes with the U.S. Internal Revenue Service (“IRS”);",69,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 1.0 " +277,nestle.pdf,"increases in income tax rates, changes in income tax laws or the unfavorable resolution of tax matters, including the outcome of our ongoing tax dispute or any related disputes with the U.S. Internal Revenue Service (“IRS”); the possibility that the assumptions used to calculate our estimated aggregate incremental tax and interest liability related to the potential unfavorable outcome of the ongoing tax dispute with the IRS could significantly change; increased or new indirect taxes; changes in laws and regulations relating to beverage containers and packaging; significant additional labeling or warning requirements or limitations on the marketing or sale of our products; litigation or legal proceedings; conducting business in markets with high-risk legal compliance environments; failure to adequately protect, or disputes relating to, trademarks, formulas and other intellectual property rights; changes in, or failure to comply with, the laws and regulations applicable to our products or our business operations; fluctuations in foreign currency exchange rates; interest rate increases; an inability to achieve our overall long-term growth objectives; default by or failure of one or more of our counterparty financial institutions; impairment charges; an inability to protect our information systems against service interruption, misappropriation of data or cybersecurity incidents; failure to comply with privacy and data protection laws;",69,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 1.0 " +278,nestle.pdf,"impairment charges; an inability to protect our information systems against service interruption, misappropriation of data or cybersecurity incidents; failure to comply with privacy and data protection laws; failure to achieve our sustainability goals and targets or accurately report our progress due to operational, financial, legal and other risks, many of which are outside our control and are dependent on the actions of our bottling partners and other third parties; increasing concerns about the environmental impact of plastic bottles and other packaging materials; water scarcity and poor quality; increased demand for food products, decreased agricultural productivity and increased regulation of ingredient sourcing due diligence; climate change and legal or regulatory responses thereto; adverse weather conditions; and other risks discussed in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2022, which filing is available from the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statements. Design: Ideas On Purpose, NYC. Content: Buzzword, Inc.",69,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.8 ","[Guess]: No +[Confidence]: 0.9 " +279,nestle.pdf,"Data Appendix To respond to stakeholder interest and provide greater disclosure and transparency, we have prepared this Data Appendix. It provides additional financial and sustainability data, including performance data for our sustainability goals as well as other important topics. Some data provided is for The Coca-C ola Company, while some is for the Coca-C ola system. This is noted with color-c oded circles. THE COCA-COLA COMPANY C OCA-COLA SYSTEM 70THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT WATERPACKAGINGFINANCIAL AND PORTFOLIO DATAOVERVIEW GREENHOUSE GAS EMISSIONS & WASTE WORKPLACE, SAFETY & GIVING BACK HUMAN RIGHTS & AGRICULTURE DEFINITIONS OF PRIORITY TOPICS ASSURANCE STATEMENTS CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY FOR MORE INFORMATION ON THE COCA COLA SYSTEM",70,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +280,nestle.pdf,"71THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY WATERPACKAGINGFINANCIAL AND PORTFOLIO DATAOVERVIEW GREENHOUSE GAS EMISSIONS & WASTE WORKPLACE, SAFETY & GIVING BACK HUMAN RIGHTS & AGRICULTURE DEFINITIONS OF PRIORITY TOPICS ASSURANCE STATEMENTS FINANCIAL AND PORTFOLIO DATA 2019–2022NetOperatingRevenues,OperatingIncomeandUnitCaseVolumebyOperatingSegment Year ended December 31, 2019 2020 2021 2022 (In millions) Net Operating Revenues Operating Income Unit Case Volume Growth Net Operating Revenues Operating Income Unit Case Volume Growth Net Operating Revenues Operating Income Unit Case Volume Growth Net Operating Revenues Operating Income Unit Case Volume Growth Europe, Middle East & Africa $ 7 ,058 $ 3,551 2% $ 6 ,057 $ 3 ,",71,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +281,nestle.pdf,"Middle East & Africa $ 7 ,058 $ 3,551 2% $ 6 ,057 $ 3 ,313 (6%) $ 7 ,193 $ 3 ,735 9% $ 7 ,523 $ 3 ,958 3% Latin America 4,118 2,375 1% 3,499 2,116 (2%) 4,143 2,534 6% 4,910 2,870 6% North America 11,915 2,594 0% 11,477 2,471 (7%) 13,190 3,331 5% 15,674 3,742 2% Asia Pacific 5,327 2,282 5% 4,722 2,133 (9%) 5,291 2,325 10% 5,445 2,303 6% Global Ventures 2,562 334 7% 1,991 (123) (13%) 2,805 293 17% 2,843 185 13% Bottling Investments 7,440 358 24% 6,",71,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +282,nestle.pdf,"991 (123) (13%) 2,805 293 17% 2,843 185 13% Bottling Investments 7,440 358 24% 6,265 308 (15%) 7,203 473 11% 7,891 487 12% EquityMethodInvestmentsinPubliclyTradedBottlingCompanies (Top 5 based on unit case volume) P ercent of Company’s 2022 Worldwide Unit Case Volume C ompany’s Ownership Interest as of Dec. 31, 2022 Coca‑Cola FEMSA S.A.B. de C.V. 12% 28% Coca-C ola FEMSA is the largest independent Coca -C ola bottler in the world by volume. Coca -C ola FEMSA operates in Mexico and nine other countries in Central America and South America.",71,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +283,nestle.pdf,"Coca -C ola FEMSA operates in Mexico and nine other countries in Central America and South America. Coca‑C ola Europacific Partners 10% 19% Coca-Cola Europacific Partners is the second largest independent Coca -C ola bottler by volume and the largest independent bottler by revenues, operating in 29 countries in Europe and the South Pacific—serving a population of more than 600 million people. Coca‑Cola HBC AG (Coca‑Cola Hel lenic) 8% 21% Coca-C ola Hellenic is the third largest independent Coca -C ola bottler by volume, operating in 29 countries across three continents—serving a population of more than 715 million people. Coca‑Cola Icecek A.S. 5% 20% Coca-C ola Icecek is one of the largest independent Coca -C ola bottlers, with operations in 11 countries across Eurasia and the Middle East—serving a population of more than 430 million people. Coca‑Cola Bottlers Japan Holdings Inc. 3% 19% In 2017, Coca-C ola West Co., Ltd. and Coca-C ola East Japan Co., Ltd.",71,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +284,nestle.pdf,"Coca‑Cola Bottlers Japan Holdings Inc. 3% 19% In 2017, Coca-C ola West Co., Ltd. and Coca-C ola East Japan Co., Ltd. integrated their businesses to establish Coca -C ola Bottlers Japan, the largest Coca-C ola bottler in Japan, serving a population of more than 100 million people. The Coca-C ola Company Coca-C ola System",71,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +285,nestle.pdf,"72THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY WATERPACKAGINGFINANCIAL AND PORTFOLIO DATAOVERVIEW GREENHOUSE GAS EMISSIONS & WASTE WORKPLACE, SAFETY & GIVING BACK HUMAN RIGHTS & AGRICULTURE DEFINITIONS OF PRIORITY TOPICS ASSURANCE STATEMENTS ReconciliationofGAAPandNon-GAAPFinancialMeasures The company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP” or referred to herein as “reported”). However, management believes that certain non-GAAP financial measures provide investors with additional meaningful financial information that should be considered when assessing our underlying business performance and trends. Management also uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions and in evaluating the company’s performance. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the company’s reported results prepared in accordance with GAAP. Our non-GAAP financial measures do not represent a comprehensive basis of accounting.",72,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +286,nestle.pdf,"Our non-GAAP financial measures do not represent a comprehensive basis of accounting. For additional details regarding the reconciliation of GAAP and non-GAAP financial measures below, see the company’s Current Reports on Form 8-K filed with the SEC on Feb. 14, 2023, Feb. 10, 2022, Feb. 10, 2021 and Jan. 30, 2020. This information is also available in the “Investors” section of the company’s website, www.coca-colacompany.com . Year ended December 31, 2019 2020 2021 2022 (Percent change) Net Operating Revenues Reported Net Operating Revenues (GAAP) 9 (11) 17 11 Less: Adjustments to Reported Net Revenues Currency Impact (4) (2) 1 (7) Impact of Acquisitions, Divestitures and Structural Changes,",72,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +287,nestle.pdf,"Divestitures and Structural Changes, Net 7 0 0 2 Organic Revenues (Non-GAAP) 6 (9) 16 16 Operating Income Reported Operating Income (GAAP) 10 (11) 15 6 Less: Adjustments to Reported Operating Income Items Impacting Comparability 5 (5) 1 (5) Currency Impact (8) (6) 2 (8) Comparable Currency Neutral Operating Income (Non-GAAP) 13 0 12 19 EPS Reported EPS (GAAP) 38 (13) 26 (3) Less: Adjustments to Reported EPS Items Impacting Comparability 37 (6) 7 (9) Currency Impact (8) (6) 2 (10) Comparable Currency Neutral EPS (Non-GAAP) 9 (2) 17 17 The Coca-C ola Company Coca-C ola System Note:  Certain columns may not add due to rounding.",72,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +288,nestle.pdf,"73THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY WATERPACKAGINGFINANCIAL AND PORTFOLIO DATAOVERVIEW GREENHOUSE GAS EMISSIONS & WASTE WORKPLACE, SAFETY & GIVING BACK HUMAN RIGHTS & AGRICULTURE DEFINITIONS OF PRIORITY TOPICS ASSURANCE STATEMENTS ReconciliationofGAAPandNon-GAAPFinancialMeasures The company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP” or referred to herein as “reported”). However, management believes that certain non-GAAP financial measures provide investors with additional meaningful financial information that should be considered when assessing our underlying business performance and trends. Management also uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions and in evaluating the company’s performance. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the company’s reported results prepared in accordance with GAAP. Our non-GAAP financial measures do not represent a comprehensive basis of accounting.",73,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +289,nestle.pdf,"Our non-GAAP financial measures do not represent a comprehensive basis of accounting. For additional details regarding the reconciliation of GAAP and non-GAAP financial measures below, see the company’s Current Reports on Form 8-K filed with the SEC on Feb. 14, 2023, Feb. 10, 2022, Feb. 10, 2021 and Jan. 30, 2020. This information is also available in the “Investors” section of the company’s website, www.coca-colacompany.com . The Coca-C ola Company Coca-C ola System 1 C ash flow conversion ratio is calculated by dividing net cash provided by operating activities by net income attributable to shareowners of The Coca-Cola Company. 2 A djusted free cash flow conversion ratio is calculated by dividing adjusted free cash flow by adjusted net income attributable to shareowners of The Coca-Cola Company. FreeCashFlowandAdjustedFreeCashFlowConversionRatio Year ended December 31, 2019 2020 2021 2022 (In millions) Net Cash Provided by Operating Activities $ 1 0,471 $ 9 ,844 $ 12,625 $ 1 1,018 Purchases of Property,",73,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +290,nestle.pdf,"471 $ 9 ,844 $ 12,625 $ 1 1,018 Purchases of Property, Plant and Equipment (2,054) (1,177) (1,367) (1,484) Free Cash Flow (Non-GAAP) 8,417 8,667 11,258 9,534 Plus: Cash Payments for Pension Plan Contributions — — — — Adjusted Free Cash Flow (Non-GAAP) $ 8 ,417 $ 8 ,667 $ 1 1,258 $ 9, 534 Net Income Attributable to Shareowners of The Coca ‑C ola Company $ 8 ,920 $ 7 ,747 $ 9,771 $ 9, 542 Noncash Items Impacting Comparability: Asset Impairments 773 493 62 153 Equity Investees 96 216 23 33 Transaction Gains/Losses (463) (933) (1,",73,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +291,nestle.pdf,"109) 589 CCBA Unrecognized Depreciation and Amortization (67) — — — Other Items (148) 291 555 526 Certain Tax Matters (331) 207 410 (128) Adjusted Net Income Attributable to Shareowners of The Coca -C ola Company (Non-GAAP) $ 8 ,780 $ 8 ,021 $ 9 ,712 $ 1 0,715 Cash Flow Conversion Ratio 1 117% 127% 129% 115% Adjusted Free Cash Flow Conversion Ratio (Non-GAAP) 2 96% 108% 116% 89%",73,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 " +292,nestle.pdf,"74THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY WATERPACKAGINGFINANCIAL AND PORTFOLIO DATAOVERVIEW GREENHOUSE GAS EMISSIONS & WASTE WORKPLACE, SAFETY & GIVING BACK HUMAN RIGHTS & AGRICULTURE DEFINITIONS OF PRIORITY TOPICS ASSURANCE STATEMENTS ReconciliationofGAAPandNon-GAAPFinancialMeasures The company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP” or referred to herein as “reported”). However, management believes that certain non-GAAP financial measures provide investors with additional meaningful financial information that should be considered when assessing our underlying business performance and trends. Management also uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions and in evaluating the company’s performance. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the company’s reported results prepared in accordance with GAAP. Our non-GAAP financial measures do not represent a comprehensive basis of accounting.",74,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +293,nestle.pdf,"Our non-GAAP financial measures do not represent a comprehensive basis of accounting. For additional details regarding the reconciliation of GAAP and non-GAAP financial measures below, see the company’s Current Reports on Form 8-K filed with the SEC on Feb. 14, 2023, Feb. 10, 2022, Feb. 10, 2021 and Jan. 30, 2020. This information is also available in the “Investors” section of the company’s website, www.coca-colacompany.com . NetOperatingRevenuesbyGeographicOperatingSegment Year ended December 31, 2019 2020 2021 2022 (Percent change) Europe, Middle East & Africa Latin America North America Asia Pacific Europe, Middle East & Africa Latin America North America Asia Pacific Europe, Middle East & Africa Latin America North America Asia Pacific Europe,",74,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +294,nestle.pdf,"Middle East & Africa Latin America North America Asia Pacific Europe, Middle East & Africa Latin America North America Asia Pacific Europe, Middle East & Africa Latin America North America Asia Pacific Reported Net Operating Revenues (GAAP) (1) 3 2 3 (14) (15) (4) (11) 19 18 15 12 5 19 19 3 Less: Adjustments to Reported Net Operating Revenues Currency Impact (9) (10) 0 (1) (2) (14) 0 0 1 0 0 3 (14) (5) 0 (9) Impact of Acquisitions, Divestitures and Structural Changes, Net 3 0 0 (1) 0 0 2 0 0 0 0 0 0 0 6 0 Organic Revenues (Non-GAAP) 5 13 3 5 (13) (1) (5) (12) 18 19 14 9 18 24 13 11 OperatingIncomebyGeographicOperatingSegment Year ended December 31,",74,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +295,nestle.pdf,"2019 2020 2021 2022 (Percent change) Europe, Middle East & Africa Latin America North America Asia Pacific Europe, Middle East & Africa Latin America North America Asia Pacific Europe, Middle East & Africa Latin America North America Asia Pacific Europe,",74,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +296,nestle.pdf,"Middle East & Africa Latin America North America Asia Pacific Europe, Middle East & Africa Latin America North America Asia Pacific Europe, Middle East & Africa Latin America North America Asia Pacific Reported Operating Income (GAAP) (4) 2 12 0 (7) (11) (5) (7) 13 20 35 9 6 13 12 (1) Less: Adjustments to Reported Operating Income Items Impacting Comparability 0 0 7 (2) (2) (1) (10) 0 (2) 1 16 1 3 0 (5) (2) Currency Impact (12) (14) 0 (1) (4) (21) 0 (1) 1 1 0 4 (15) (6) 0 (8) Comparable Currency Neutral Operating Income (Non-GAAP) 9 17 5 3 (1) 12 6 (6) 13 18 19 4 18 19 18 9 Note: Certain columns may not add due to rounding. The Coca-C ola Company Coca-C ola System",74,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +297,nestle.pdf,"75THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY WATERPACKAGINGFINANCIAL AND PORTFOLIO DATAOVERVIEW GREENHOUSE GAS EMISSIONS & WASTE WORKPLACE, SAFETY & GIVING BACK HUMAN RIGHTS & AGRICULTURE DEFINITIONS OF PRIORITY TOPICS ASSURANCE STATEMENTS 1 2022 IFBA Marketing Report Year ended December 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 Volume (in billions) Volume — Unit Cases 28.6 29.2 29.3 29.2 29.6 30.3 29.0 31.3 32.7 Volume — Liters 162.4 165.8 166.4 165.8 168.1 172.0 164.5 177.5 185.8 Responsible Marketing (Market responsibly, including no advertising to children under the age of 13 anywhere in the world.",75,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +298,nestle.pdf,"1) Print 100% 100% 100% 100% not available not available not available not available not available Online 99.5% 99.8% 100% 99.8% not available not available not available not available 99.8% Television 88.5% 97.0% 95.2% 95.0% not available not available not available not available 91.3% Low- and No-Calorie Portfolio Low- or no-calorie sales (percent of volume sold that is low- or no-calorie) 25.2% 27.3% 27.2% 29.0% 28.2% 28.0% 28.7% Percent of the company’s sparkling soft drink brands available in packages of 250 milliliters (8.5 ounces) or less about 40% > 40% 44% 42% 42% 41% 44% Front of Package Labeling Provide transparent nutrition information, featuring calories on the front of all of our packages.",75,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +299,nestle.pdf,nearly all markets nearly all markets nearly all markets nearly all markets nearly all markets nearly all markets nearly all markets nearly all markets nearly all markets Portfolio The Coca-C ola Company Coca-C ola System,75,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +300,nestle.pdf,"76THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT PACKAGING CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY WATERPACKAGINGFINANCIAL AND PORTFOLIO DATAOVERVIEW GREENHOUSE GAS EMISSIONS & WASTE WORKPLACE, SAFETY & GIVING BACK HUMAN RIGHTS & AGRICULTURE DEFINITIONS OF PRIORITY TOPICS ASSURANCE STATEMENTS 1 T his is the focused scope of Primary Consumer Packaging (PET, Glass, Cans, Cartons). 2 T his number has been updated following the completed assurance process for the 2020 World Without Waste Report, which was completed post-publication of the 2020 Business & ESG Report. 3 I ncludes select Primary Consumer Packaging materials. 4 I n 2019, we modified the methodology we use for calculating the amount of recycled material used in our Primary Consumer Packaging. These changes are designed to integrate a more accurate dataset, including primary data where it is available. Moving forward, we expect that these numbers will continue to evolve as data sources improve, at the same time that we work to increase rates of recycled material use.",76,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +301,nestle.pdf,"Moving forward, we expect that these numbers will continue to evolve as data sources improve, at the same time that we work to increase rates of recycled material use. 5 W e changed our method to track the packaging collection rate against our World Without Waste goal beginning with 2018 data. With better data available, we expanded the metric to encompass all of our packaging types, including beverage cartons, juice boxes and pouches, etc. 6 C ollection rate represents a weighted average of national collection rates, collected for recycling rates or refillable rates by packaging type to TCCS’s sales in units to express the percent of equivalent bottles and cans introduced into the market that were collected and refilled or collected for recycling for the year. Collection rates are determined by country for each packaging type based on either national studies (approximately 82%), plant standards (approximately 17%), and internal estimates (approximately 1%). 7 O nly recyclable where infrastructure exists. Corrections sinceissuanceofreportinApril2023: Page 39 was updated to correct details about the plant- based plastic bottle technology licensed to a company in Germany and plant-based plastic bottle prototypes. Page 40 was updated to correct information about the collection rate in Germany and the types of packaging to which the collection rate applies.",76,"[Guess]: No +[Confidence]: 1.0 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +302,nestle.pdf,"Page 40 was updated to correct information about the collection rate in Germany and the types of packaging to which the collection rate applies. Year ended December 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 World Without Waste Total weight of our packaging (metric tons)1 5.10M2 5.30M 5.95M Percentage of recycled material in our packaging 3 30% 20%4 22% 23% 25% Percentage of recycled material used in our PET plastic packaging globally 9% 9.4% 11.5% 13.6% 15% Percentage of bottles and cans we collected and refilled or collected for recycling 5 61% 59% 59% 59% 58% Percentage of bottles and cans we collected and refilled or collected for recycling 6 56% 60% 60% 61% 61% Percentage of packaging recyclable globally  7 85% 88% 88% 90% 90% 90% Packaging Mix (by units) Plastic (primarily PET) bottles 45.5% 45.2% 44.9% 47.3% 47.",76,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +303,nestle.pdf,5% 45.2% 44.9% 47.3% 47.4% Aluminum and steel bottles and cans 23.5% 23.8% 24.7% 25.7% 25.9% Other 12.1% 11.8% 13.4% 9.7% 11.3% Refillable glass bottles 11.7% 11.1% 9.3% 9.4% 9.0% Non-refillable glass bottles 2.3% 2.0% 1.4% 1.6% 1.6% Beverage cartons and juice boxes 2.5% 2.8% 2.7% 3.0% 2.9% Refillable (primarily PET) plastic bottles 1.6% 1.5% 1.6% 1.5% 1.4% Pouches 0.6% 0.5% 0.4% 0.4% 0.,76,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +304,nestle.pdf,6% 1.5% 1.6% 1.5% 1.4% Pouches 0.6% 0.5% 0.4% 0.4% 0.5% Number of Packages Plastic (primarily PET) bottles ~117B ~120B ~112B ~125B ~134B Aluminum and steel bottles and cans ~60B ~63B ~62B ~68B ~73B Refillable glass bottles ~30B ~30B ~23B ~25B ~25B Non-refillable glass bottles ~6B ~5B ~4B ~4B ~4.5B Refillable (primarily PET) plastic bottles ~4B ~4B ~4B ~4B ~4B Beverage cartons and juice boxes ~6.7B ~7.3B ~6.8B ~7.9B ~8B Pouches ~1.7B ~1.3B ~0.9B ~1.0B ~1.3B The Coca-C ola Company Coca-C ola System,76,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +305,nestle.pdf,"77THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY WATERPACKAGINGFINANCIAL AND PORTFOLIO DATAOVERVIEW GREENHOUSE GAS EMISSIONS & WASTE WORKPLACE, SAFETY & GIVING BACK HUMAN RIGHTS & AGRICULTURE DEFINITIONS OF PRIORITY TOPICS ASSURANCE STATEMENTS WATER 1 S ubstantially all replenish data is internally validated and verified; the equivalent volume for 100% Replenish rate (182.9 Billion litres BL) is externally assured. Peer-reviewed methodologies were used to calculate volumetric benefits per project and operating unit for all externally assured data; one exception was approved for internally validated and verified data. The replenish benefit is typically estimated as a long-term, average annual volume, but for some project activities it varies annually. Replenish benefits fall under three categories: Watershed Protection and Restoration (233.5 BL), Water for Productive Use (40.9 BL) and Water Access and Sanitation (17.4 BL). Due to joint venture or merger and acquisition activities in 2019–2022, certain brands may not be accounted for in this metric.",77,"[Guess]: No +[Confidence]: 0.95","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +306,nestle.pdf,"Due to joint venture or merger and acquisition activities in 2019–2022, certain brands may not be accounted for in this metric. Unless otherwise stated, in this report finished beverages is based on global sales volume. Approximately 13.5 BL (approx. 7%) of the water used in our beverages that we returned to nature and communities is from 7 projects located in Ukraine and Belarus where since May 2019 we have not been able to monitor projects on intervals aligned with internal guidelines due to COVID and the ongoing war. Note: Due to joint venture or merger and acquisition activities, certain brands may not be accounted for in The Coca-Cola Company-specific metrics included on this page. Year ended December 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 Water Use and Water Withdrawn Water Use Ratio (liters of water used per liter of product produced) 2.03 1.98 1.96 1.92 1.89 1 . 8 5 1 .84 1 .81 1.79 1 .88 1 .96 1 . 9 4 1.97 Total Water Withdrawn (megaliters) 301,",77,"[Guess]: No +[Confidence]: 0.95 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +307,nestle.pdf,"9 4 1.97 Total Water Withdrawn (megaliters) 301,068 300,733 294,925 288,990 298,797 29 5,014 2 81,991 298,235 308,736 4 0,375 3 6,946 40,473 44,500 Fresh Surface Water Sources (megaliters) 15,058 12,986 1 2,777 1 0,554 12,025 13,048 3 ,554 2 ,152 2,899 3,420 Brackish Surface Water (megaliters) 2,681 2,738 4 ,377 5 ,654 5,725 4,946 1 ,151 1 ,046 351 336 Third-Party Sources (megaliters) 140,588 135,217 1 47,430 1 39,581 144,256 147,642 2 0,317 1 9,475 21,706 24,144 Ground Water — Renewable (megaliters) 130,",77,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +308,nestle.pdf,"581 144,256 147,642 2 0,317 1 9,475 21,706 24,144 Ground Water — Renewable (megaliters) 130,663 147,857 1 30,430 1 26,202 136,195 143,099 1 5,352 14 ,273 15,491 16,599 Water Consumption (megaliters) 182,455 186,642 1 87,132 1 67,301 170,358 183,616 2 3,889 2 1,687 24,918 25,562 Percentage of Water Consumption in Regions With High or Extremely High Baseline Water Stress 2 1% 20% 2 1% Wastewater 106,534 112,154 107,883 1 14,690 1 27,877 125,120 Wastewater Discharged (megaliters) 16,486 15 ,257 15,555 18,938 Water Returned to Nature and Communities Percentage1 94% 115% 132.",77,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +309,nestle.pdf,"120 Wastewater Discharged (megaliters) 16,486 15 ,257 15,555 18,938 Water Returned to Nature and Communities Percentage1 94% 115% 132.9% 150% 155% 160.7% 1 70% 167% 15 9% Amount (billions of liters)1 153.6 190.9 221.2 248.3 257 2 73.7 2 77.8 293.3 2 91 The Coca-C ola Company Coca-C ola System",77,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +310,nestle.pdf,"78THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY WATERPACKAGINGFINANCIAL AND PORTFOLIO DATAOVERVIEW GREENHOUSE GAS EMISSIONS & WASTE WORKPLACE, SAFETY & GIVING BACK HUMAN RIGHTS & AGRICULTURE DEFINITIONS OF PRIORITY TOPICS ASSURANCE STATEMENTS GREENHOUSE GAS EMISSIONS & WASTE Year ended December 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 Reduce our absolute emissions by 25% by 2030 against a 2015 baseline 7% GHG Emissions 1 Direct, from manufacturing sites (metric tons) (in millions) 1 .7 1 .7 1 .6 1 .78 1.79 1 .83 1 .49 1 .61 1.65 Indirect, from electricity purchased and consumed (without energy trading) at manufacturing sites (metric tons) (in millions) 3.6 3.8 3.8 3.76 3.76 3 .",78,"[Guess]: Yes +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +311,nestle.pdf,"65 Indirect, from electricity purchased and consumed (without energy trading) at manufacturing sites (metric tons) (in millions) 3.6 3.8 3.8 3.76 3.76 3 .73 3 .75 3 .88 3.91 Indirect, from electricity purchased and consumed (without energy trading) at manufacturing sites (using GHG protocol market-based method) 2 (metric tons) (in millions) 3.44 3.35 3 .88 3 .28 3 .56 3.33 Total, from manufacturing sites (metric tons) (in millions) 5.55 5.58 5.45 5.54 5.55 5 .56 5 .24 5 .49 5.56 Total, from manufacturing sites (using GHG protocol market-based method) 2 (in millions) 5.22 5.14 5 .71 4 .77 5 .18 4.97 Emissions Ratio (gCO2 /L) 36.89 36.23 35.29 33.96 34.83 3 4.74 33 .96 33 .33 28.",78,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +312,nestle.pdf,"89 36.23 35.29 33.96 34.83 3 4.74 33 .96 33 .33 28.85 Business & Sustainability Report and CDP Manufacturing Emissions Reconciliation Reported Manufacturing Emissions in Business & Sustainability Report (millions of MT CO2e)–TCCS Reporting Entity 3 Scope 1 emissions per Business & Sustainability Report 1.61 1.65 Scope 2 emissions per Business & Sustainability Report 3.88 3.91 Total manufacturing emissions per Business & Sustainability Report 5.49 5.56 Reported Manufacturing Emissions in CDP (MT CO 2e)–TCCC Reporting Entity 3, 4 Scope 1–Manufacturing per CDP C7.3c 325,833 304,144 Scope 2 (location-based)–Manufacturing per CDP C6.3 869,832 890,400 Scope 3–Franchises per CDP C6.5 4,299,247 4,363,071 Total manufacturing emissions per CDP 5,494,912 5,577,615 Total manufacturing emissions per CDP (in millions) 5.49 5.",78,"[Guess]: Yes +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +313,nestle.pdf,"5 4,299,247 4,363,071 Total manufacturing emissions per CDP 5,494,912 5,577,615 Total manufacturing emissions per CDP (in millions) 5.49 5.56 Energy Use5 Total Energy Use (megajoules) (in millions) 6 1,764.0 6 1,037.4 6 1,558.7 5 9,070.9 61 ,464.0 6 2,419.9 5 8,888.1 6 3,735.8 65,389 1 1,758.9 10,985.2 1 2,731.5 10,680 Percentage renewable (electricity) 1 5% 17 % 12 % 21% Energy Use Ratio (megajoules per liter of product) 0.42 0.41 0.40 0.40 0.39 0. 39 0. 38 0. 39 0.38 0. 54 0.",78,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +314,nestle.pdf,"41 0.40 0.40 0.39 0. 39 0. 38 0. 39 0.38 0. 54 0. 58 0 .61 0.57 1 T he direct, Scope 1 and indirect Scope 1 manufacturing emissions results shown in this section exclude fugitive emissions and flavor manufacturing plants. However, for the system-wide GHG results reported, these emissions sources are included. 2 T his metric accounts for renewable energy usage. 3 T he GHG emissions reported in the Business & Sustainability report represent the Coca-Cola system’s manufacturing emissions, which include emissions from activities which are under the Company’s operational control and activities that are related to Coca-Cola brands that are under direct control of franchise bottlers. Our CDP reporting is aligned with an operational control approach as defined by the GHG Protocol, which includes only emissions from activities within The Coca-Cola Company’s operational control as Scope 1 and 2 emissions, while manufacturing emissions from franchise bottlers are categorized as “Scope 3- Franchises”. 4 T he below emissions figures will be reported in the Company's forthcoming 2023 CDP Climate Change response. 5 S ystemwide total based on estimated total use.",78,"[Guess]: No +[Confidence]: 0.9 +","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +315,nestle.pdf,"4 T he below emissions figures will be reported in the Company's forthcoming 2023 CDP Climate Change response. 5 S ystemwide total based on estimated total use. Note: Due to joint venture or merger and acquisition activities, certain brands may not be accounted for in The Coca-Cola Company-specific metrics included on this page. The Coca-C ola Company Coca-C ola System",78,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +316,nestle.pdf,"79THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY WATERPACKAGINGFINANCIAL AND PORTFOLIO DATAOVERVIEW GREENHOUSE GAS EMISSIONS & WASTE WORKPLACE, SAFETY & GIVING BACK HUMAN RIGHTS & AGRICULTURE DEFINITIONS OF PRIORITY TOPICS ASSURANCE STATEMENTS GREENHOUSE GAS EMISSIONS & WASTE (continued) Fleet Fuel Management Fleet fuel consumed (liters of diesel equiv.) 1 .01B1 1.10B 0.77B HFC-Free Coolers Number of pieces of HFC-free refrigeration equipment placed 623,160 730,876 886,693 9 18,009 5 71,753 8 03,602 1,070,739 Percentage of all coolers introduced in year that are HFC -f ree2 61% 65% 80% 82 % 8 3% 87 % 88% Waste2 Total Waste Generated (kilograms) (in millions) 1,441.3 1,360.5 1,",79,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +317,nestle.pdf,"441.3 1,360.5 1,297.4 1 ,367.8 1 ,269.9 1,490.3 1,749.6 Total Waste Ratio (grams per liter of product) 9.42 9.42 8.89 9 .17 8 .82 8.89 9.74 Total Waste Recovered (kilograms) (in millions) 1,264.6 1,181.3 1,134 1 ,212 1 ,135 1,324.8 1,587.3 Waste Recovered Percentage 87% 86% 87% 89 % 8 9% 88.6% 90.7% 1 T his 2020 figure has been adjusted. 2 S ystemwide total based on estimated total use.",79,"[Guess]: No +[Confidence]: 0.995 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +318,nestle.pdf,"6% 90.7% 1 T his 2020 figure has been adjusted. 2 S ystemwide total based on estimated total use. The Coca-C ola Company Coca-C ola System Year ended December 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 Corrections sinceissuanceofreportinApril2023: Page 79 was updated to enter information that was not available at the time of report issuance related to equivalent liters of diesel fuel consumed by Fleet Fuel Management.",79,"[Guess]: No +[Confidence]: 0.9","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +319,nestle.pdf,"80THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY WATERPACKAGINGFINANCIAL AND PORTFOLIO DATAOVERVIEW GREENHOUSE GAS EMISSIONS & WASTE WORKPLACE, SAFETY & GIVING BACK HUMAN RIGHTS & AGRICULTURE DEFINITIONS OF PRIORITY TOPICS ASSURANCE STATEMENTS WORKPLACE, SAFETY & GIVING BACK 1 F or exclusions, please view the criteria statement in the Independent Accountants’ Review Report . 2 C orporate employees are included in the geographic area in which they work. Bottling Investments is an operating segment with employees located in two of our four geographic operating segments. Numbers are approximate and as of December 31, 2022. 3 D ata as of December 31, 2022, for salaried and hourly employees. This data excludes Bottling Investments, Costa, fairlife and BODYARMOR employees. For exclusions, please view the criteria statement in the Independent Accountants’ Review Report . Year ended December 31,",80,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +320,nestle.pdf,"This data excludes Bottling Investments, Costa, fairlife and BODYARMOR employees. For exclusions, please view the criteria statement in the Independent Accountants’ Review Report . Year ended December 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 Lost-Time Incident Rate 1.9 1.6 1.29 0.57 0.38 0.32 0.34 0.281 0.25 1 Number of Employees Global Workforce 2 129,200 123,200 100,300 61,800 62,600 86,200 80,300 79,000 82,500 North America 7,000 10,000 10,700 11,000 12,100 10,800 10,000 10,000 9,600 Bottling Investments 64,700 57,200 46,600 7,700 — — — — — Latin America 2,500 2,400 2,500 2,500 2,400 2,400 2,200 2,400 2,",80,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +321,nestle.pdf,"500 2,400 2,500 2,500 2,400 2,400 2,200 2,400 2,600 Bottling Investments 2,200 2,000 2,000 1,900 — — — — — Europe, Middle East & Africa 5,100 4,900 4,400 4,100 4,300 5,700 5,300 5,500 5,800 Bottling Investments 10,400 10,700 — 15,300 15,400 17,000 17,300 16,300 16,500 Asia Pacific 2,800 2,600 2,600 2,600 2,600 2,900 2,700 2,900 3,100 Bottling Investments 34,500 33,400 31,500 16,700 25,800 25,700 23,800 22,900 21,300 Global Ventures 21,700 19,000 19,000 23,",80,"[Guess]: No +[Confidence]: 0.9 +user","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +322,nestle.pdf,"500 16,700 25,800 25,700 23,800 22,900 21,300 Global Ventures 21,700 19,000 19,000 23,600 Gender Representation by Level (global) 3 Female(global) S enior Leadership 34% 38.7% 39.0% M iddle Management 49% 50.5% 51.3% P rofessionals 36% 35.3% 36.0% Total 42% 42.9% 44.0% Male(global) S enior Leadership 66% 61.3% 61.0% M iddle Management 51% 49.5% 48.7% P rofessionals 64% 64.7% 64.0% Total 58% 57.1% 56.0% The Coca-C ola Company Coca-C ola System",80,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +323,nestle.pdf,"81THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY WATERPACKAGINGFINANCIAL AND PORTFOLIO DATAOVERVIEW GREENHOUSE GAS EMISSIONS & WASTE WORKPLACE, SAFETY & GIVING BACK HUMAN RIGHTS & AGRICULTURE DEFINITIONS OF PRIORITY TOPICS ASSURANCE STATEMENTS WORKPLACE, SAFETY & GIVING BACK (continued) The Coca-C ola Company Coca-C ola System 1 T his percentage represents People of Color. For exclusions, please view the criteria statement in the Independent Accountants’ Review Report . Year ended December 31, 2020 2021 2022 Race/Ethnicity Representation by Level (U.S. only)  S enior L eadership 29%1 Asian 10.0% 10.0% Hispanic/Latino 9.4% 9.9% Black/African American 8.2% 8.6% American Indian/Alaskan Native 0.2% 0.0% Native Hawaiian/Other Pacific Islander 0.2% 0.",81,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +324,nestle.pdf,9% Black/African American 8.2% 8.6% American Indian/Alaskan Native 0.2% 0.0% Native Hawaiian/Other Pacific Islander 0.2% 0.1% White 62.7% 61.4% Two or more races 0.9% 0.9% N ot specified 8.4% 9.1%  Mi ddle M anagement 35%1 Asian 10.4% 10.4% Hispanic/Latino 8.9% 8.7% Black/African American 15.4% 16.1% American Indian/Alaskan Native 0.3% 0.3% Native Hawaiian/Other Pacific Islander 0.2% 0.1% White 58.0% 57.1% Two or more races 2.0% 2.2% N ot specified 4.8% 5.2%  P rofessionals 51%1 Asian 4.2% 5.4% Hispanic/Latino 20.6% 21.2% Black/African American 27.4% 30.3% American Indian/Alaskan Native 0.,81,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +325,nestle.pdf,2% 5.4% Hispanic/Latino 20.6% 21.2% Black/African American 27.4% 30.3% American Indian/Alaskan Native 0.6% 0.4% Native Hawaiian/Other Pacific Islander 0.3% 0.5% White 42.3% 36.7% Two or more races 2.5% 3.0% N ot specified 2.1% 2.4% Total 43%1 Asian 7.2% 8.1% Hispanic/Latino 14.8% 14.6% Black/African American 20.9% 22.0% American Indian/Alaskan Native 0.5% 0.3% Native Hawaiian/Other Pacific Islander 0.2% 0.3% White 50.4% 48.1% Two or more races 2.2% 2.5% N ot specified 3.8% 4.3%,81,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 1.0 " +326,nestle.pdf,"82THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY WATERPACKAGINGFINANCIAL AND PORTFOLIO DATAOVERVIEW GREENHOUSE GAS EMISSIONS & WASTE WORKPLACE, SAFETY & GIVING BACK HUMAN RIGHTS & AGRICULTURE DEFINITIONS OF PRIORITY TOPICS ASSURANCE STATEMENTS WORKPLACE, SAFETY & GIVING BACK (continued) 1 I ncludes reports and allegations raised through The Coca -C ola Company’s Human Rights Policy reporting process. 2 I n 2019, Employee Relations redefined how cases were captured in the case management tool of record. Therefore, the reported figure includes only those allegations that required investigations only as opposed to generalized questions raised to Employee Relations. Please note, however, that all questions presented to Employee Relations were answered even if the question did not warrant an investigation. While we previously reported on all cases and questions raised through our case management tool, we no longer capture that data. This helps us to ensure that we have more accurate visibility to annual Human Rights cases. This change accounts for the 2019 variance when compared to previous years.",82,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +327,nestle.pdf,"This helps us to ensure that we have more accurate visibility to annual Human Rights cases. This change accounts for the 2019 variance when compared to previous years. 3 T his amount includes charitable grants awarded by The Coca-Cola Foundation and donations made by The Coca -C ola Company. 4 T his percentage was calculated based on the company’s prior year operating income (excluding the Bottling Investments operating segment). Year ended December 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 Human Rights Cases Reported by Category 1 Ask a Workplace Rights Question 20 11 8 2 — — — — Child Labor 1 — — — — — — — Discrimination 88 55 42 59 452 30 42 27 Forced Labor 3 — — — — — — 1 Freedom of Association 3 4 1 1 — — — 2 Retaliation 47 37 23 17 172 17 22 11 Safe and Healthy Workplace 55 33 22 31 52 74 50",82,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 " +328,nestle.pdf,— 2 Retaliation 47 37 23 17 172 17 22 11 Safe and Healthy Workplace 55 33 22 31 52 74 50 37 Work Hours and Wages 64 42 34 36 182 5 7 11 Workplace Security 20 10 13 15 122 9 8 — Total Cases 300 192 143 161 972 135 129 89 Investment Back Into Local Communities Amount of charitable contributions made by The Coca-Cola Company and The Coca-Cola Foundation (in millions)3 $ 1 26 $ 1 17 $ 1 06 $ 1 38 $ 1 25 $ 1 25 $ 1 86.1 $ 1 73.5 $ 1 39.0 Percentage of the company’s operating income 4 1.3% 1.9% 1.2% 1.6% 1.5% 1.3% 1.9% 2.0% 1.,82,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +329,nestle.pdf,3% 1.9% 1.2% 1.6% 1.5% 1.3% 1.9% 2.0% 1.4% The Coca-C ola Company Coca-C ola System,82,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +330,nestle.pdf,"83THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY WATERPACKAGINGFINANCIAL AND PORTFOLIO DATAOVERVIEW GREENHOUSE GAS EMISSIONS & WASTE WORKPLACE, SAFETY & GIVING BACK HUMAN RIGHTS & AGRICULTURE DEFINITIONS OF PRIORITY TOPICS ASSURANCE STATEMENTS HUMAN RIGHTS & AGRICULTURE 1 I ndependent third-party audits. 2 P rogress toward total sustainable sourcing of all 12 priority ingredients, combined, using third-party validation programs against The Coca-Cola Company’s previous Sustainable Agriculture Guiding Principles (SAGP) effective for 2013–2020. 3 P rogress toward total sustainable sourcing of all 12 priority ingredients, combined, using third-party validation programs approved under The Coca-Cola Company’s Principles for Sustainable Agriculture (PSA) effective for 2021–2022. Sustainably sourced volumes reported through 2020 were against the former Sustainable Agriculture Guiding Principles. Data reported for 2022 represents key ingredients that are sustainably sourced to our Leader standard in line with our PSA.",83,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +331,nestle.pdf,"Sustainably sourced volumes reported through 2020 were against the former Sustainable Agriculture Guiding Principles. Data reported for 2022 represents key ingredients that are sustainably sourced to our Leader standard in line with our PSA. 4 W e paused ingredient level reporting for 2021, and resumed this reporting for 2022. Year ended December 31, 2014 2015 2016 2017 2018 2019 2020 2021 2022 Human Rights Audits by Region 1 Total 2,318 2,789 3,204 2,823 2,778 2,279 2,848 2,",83,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +332,nestle.pdf,"318 2,789 3,204 2,823 2,778 2,279 2,848 2,770 Africa 120 188 259 236 206 165 297 259 Eurasia 116 93 133 109 78 89 124 141 Europe 218 339 356 280 376 296 385 345 Latin America 563 705 775 627 698 571 795 748 Middle East & North Africa 57 77 109 107 95 56 62 161 North America 171 180 266 208 161 124 156 146 Pacific 1,073 1,207 1,306 1,256 1,164 978 1,029 970 Number of Women Economically Enabled (cumulative) 864,996 1,237,734 1,751,626 2,413,079 3,278,866 4,602,033 6,073,117 2020",83,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 1.0 " +333,nestle.pdf,"996 1,237,734 1,751,626 2,413,079 3,278,866 4,602,033 6,073,117 2020 goal achieved 2020 goal achieved Agriculture Sustainably source our key agricultural ingredients %ofkeyingredientssustainablysourced(SAGP)2 not available not available 44% 54% 56% 61% — %ofkeyingredientssustainablysourced(PSA)3 58% 64% Apples not available 0–25% 26–50% 50% 60% —4 55% Coffee 76–100% 76–100% 76–100% 90% 97% —4 99% Corn 0–25% 0–25% 51–75% 67% 67% —4 70% Grapes not available 26–50% 26–50% 31% 39% —4 37% Lemons 51–75% 51–75% 51–75% 79% 82% —4 96% Mangoes not available not available 0–25% 19% 34% —4",83,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +334,nestle.pdf,51–75% 51–75% 51–75% 79% 82% —4 96% Mangoes not available not available 0–25% 19% 34% —4 36% Oranges 0–25% 0–25% 26–50% 44% 44% —4 89% Soybeans not available not available 76–100% 100% 100% —4 100% Sugar Beets 51–75% 51–75% 51–75% 69% 83% —4 80% Sugar Cane 0–25% 0–25% 0–25% 32% 31% —4 40% Tea 76–100% 76–100% 76–100% 82% 84% —4 74% Pulp & Paper not available not available not available 75% 92% —4 86% The Coca-C ola Company Coca-C ola System,83,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +335,nestle.pdf,"84THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT DEFINITIONS OF PRIORITY TOPICS CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY WATERPACKAGINGFINANCIAL AND PORTFOLIO DATAOVERVIEW GREENHOUSE GAS EMISSIONS & WASTE WORKPLACE, SAFETY & GIVING BACK HUMAN RIGHTS & AGRICULTURE DEFINITIONS OF PRIORITY TOPICS ASSURANCE STATEMENTS Topic name Subtopic(s) Definition Advocacy & Regulatory Engagement Advocacy & Political Engagement How a company contributes to or engages with efforts in favor of or against policies and laws. This involves lobbying on issues such as taxes, trade policies, and regulation, including on sustainability issues. It also encompasses corporate stances and actions on social issues and world events. Regulatory Engagement & Responsiveness How a company monitors risks and opportunities derived from emerging policies and laws and interacts with governments and political bodies to shape or respond to them.",84,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +336,nestle.pdf,"Regulatory Engagement & Responsiveness How a company monitors risks and opportunities derived from emerging policies and laws and interacts with governments and political bodies to shape or respond to them. Biodiversity & Deforestation Biodiversity & Deforestation  How a company implements policies to sustainably manage, preserve, and restore the variety of living organisms on earth for the benefit of human beings, the planet, and climate. Involves the effects of the production of agricultural raw materials used in a company’s system and value chain on biodiversity. Business Continuity & Resilience Adapting and Thriving in a Digital Environment How a company manages the digital landscape, evolving shopping preferences and patterns, incorporating technology into business processes, and the enhanced capacity to conduct operations online. Also involves measures to ensure the necessary skills transformation of their workers and those in their value chain. Business Continuity & Resilience  How a company manages potential disruptions to business operations, including the workforce and supply chains, caused by geopolitical and geoeconomic tensions, social issues, including rising inequality or refugee migration, demographic changes, or economic crises. Also involves anticipating and adapting to changing environments to ensure the necessary skills transformation of their workers and those in their value chain.",84,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +337,nestle.pdf,"Also involves anticipating and adapting to changing environments to ensure the necessary skills transformation of their workers and those in their value chain. Cybersecurity & Data Privacy How a company protects and remediates information systems and networks from accidental or illegal breaches. Also includes how information is collected, used and transferred and respecting a data subject's privacy rights.   Innovation & Competitiveness  How a company is able to continually transform business operations and develop products in response to increasing competitive pressure in the marketplace. Climate Change Climate Change Risk & Resilience How a company manages the physical impacts and risks of climate change due to changes in weather patterns and increased frequency and severity of natural disasters, which could decrease agricultural productivity, exacerbate water scarcity, impair production capabilities, disrupt the supply chain, and impact demand for products. Also incorporates transition risks and the ability to manage and adapt to new policies and markets connected to the low-carbon economy transition. GHG Emissions How a company manages its direct and indirect emissions of greenhouse gases throughout the value chain, and mitigates contributions to climate change in line with net zero methodologies.",84,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +338,nestle.pdf,"GHG Emissions How a company manages its direct and indirect emissions of greenhouse gases throughout the value chain, and mitigates contributions to climate change in line with net zero methodologies. Examples of this include transition to renewable energy, use of alternative fuels, and energy efficiency through new equipment and processes, such as HFC-free equipment, as well as through reducing the environmental footprint of buildings and facilities across their life-cycles. Topic name Subtopic(s) Definition Corporate Governance Business Ethics & Compliance How a company implements policies and procedures surrounding compliant and lawful corporate conduct and competition in the marketplace. Includes the systems and channels in place to collect, process, and address complaints regarding suspected violations. Corporate Governance How a company implements policies and standards that determine how it operates, including its business strategy and goals, risk management, and sustainability integration. Includes the processes for ensuring the knowledge, skills, experience and diversity of board members. Transparency & Sustainability Data Validity How a company discloses robust and credible sustainability data based on globally accepted metrics in the face of increasing calls for sustainability data and assurance.",84,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +339,nestle.pdf,"Transparency & Sustainability Data Validity How a company discloses robust and credible sustainability data based on globally accepted metrics in the face of increasing calls for sustainability data and assurance. Health & Nutrition Consumer Preference Alignment  How a company responds to and aligns with evolving consumer preferences and concerns, including health, wellness, and nutrition considerations, expectations of transparency, as well as increased demand for sustainable products. Health & Nutrition How a company manages the impact its products have on the health and nutrition of consumers, not only in relation to the product offering, but also in relation to education, information, and research. Labor & Human Rights Human Rights How a company respects the rights of employees, workers in the supply chain, consumers, and communities the company interacts with. Includes alignment with human rights due diligence principles in the UN Guiding Principles on Business and Human Rights. Labor Rights & Relations How a company upholds worker's rights, including stipulations of employment, working conditions, and freedom of association. Occupational Health & Safety How a company implements policies, practices, and training in place to mitigate risks and uphold workplace health and safety.",84,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.95 " +340,nestle.pdf,"Occupational Health & Safety How a company implements policies, practices, and training in place to mitigate risks and uphold workplace health and safety. Packaging & Circularity Packaging & Circularity  How a company supports a circular economy, such as reusable/recyclable materials, collection and recycling, partnerships and innovation. Involves integrating sustainability considerations in the production and consumption of products and services across a company, system and value chain. Operational Waste How a company manages the waste and effluents generated from operations that are not able to be reused or recycled, and the associated management practices. Product Quality & Safety Product Quality & Safety How a company meets industry and consumer standards for quality and safety. This includes both fulfilling consumers' needs and complying with food safety, considering ingredients and their effects on health, and relevant certifications that verify environmental or social aspects of products.",84,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +341,nestle.pdf,"85THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY WATERPACKAGINGFINANCIAL AND PORTFOLIO DATAOVERVIEW GREENHOUSE GAS EMISSIONS & WASTE WORKPLACE, SAFETY & GIVING BACK HUMAN RIGHTS & AGRICULTURE DEFINITIONS OF PRIORITY TOPICS ASSURANCE STATEMENTS DEFINITIONS OF PRIORITY TOPICS (continued) Topic Name Subtopic(s) Definition Responsible Marketing Responsible Marketing How a company responsibly and accurately sells and markets products and communicates with consumers. Includes compliance with marketing regulations and restrictions (e.g., not marketing to children under 13). Alcohol Responsibility How a company markets alcohol products, engages in alcohol responsibility programs, and shares information with consumers about alcohol so that they can make informed decisions. Also includes responsible guidelines for associates and partners. Responsible Sourcing Responsible Sourcing & Supply Chain How a company sets policies, controls and market incentives in place to procure goods and raw materials that have been produced respecting the environment, workers and communities.",85,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +342,nestle.pdf,"Responsible Sourcing Responsible Sourcing & Supply Chain How a company sets policies, controls and market incentives in place to procure goods and raw materials that have been produced respecting the environment, workers and communities. Includes efforts to have a positive impact and ensure alignment by suppliers and distributors with sustainability policies.  Sustainable/ Regenerative Agriculture How a company implements policies and procedures in its agricultural supply chain to have a net-positive impact in an attempt to mitigate the impacts of climate change. Involves an approach to farming that aims to improve soil health and preserve biodiversity. Animal Welfare How a company implements practices and policies surrounding the physical and emotional treatment of animals involved in business operations along the value chain. Stakeholder, System & Business Partner Engagement Stakeholder Engagement How a company identifies, involves, and communicates with certain groups of people who may impact or be impacted by business activities, and building trust-based relationships. System Engagement How a company manages business and sustainability partnerships with The Coca-Cola Company’s bottling partners (e.g., independent entities responsible for manufacturing and/or distributing Coca-Cola packaged beverage products). Third-Party Service Provider & Business Engagement How a company manages business and sustainability partnerships, opportunities and challenges.",85,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +343,nestle.pdf,"Third-Party Service Provider & Business Engagement How a company manages business and sustainability partnerships, opportunities and challenges. This includes ensuring compliance with anti-corruption provisions, and relevant business and sustainability policies and regulations. Sustainable Communities Community Impact & Sustainable Communities How a company positively or negatively impacts communities with which it interacts through its operations and business transactions, including in the value chain, as well as voluntary community initiatives. Topic Name Subtopic(s) Definition Water Stewardship Water Stewardship How a company manages water resources in order to meet business and community needs. Includes a company's processes for water withdrawal, water use rights, mitigating water risk, and replenishing water used in a system and value chain. Talent Attraction, Retention & DEI Diversity, Equity & Inclusion How a company ensures there is diversity, equity, and inclusion in the workforce and throughout the value chain. It also includes how business operations approach diversity, equity and inclusion through marketing, sales and corporate citizenship. Talent Attraction & Retention How a company recruits, engages, and maintains employees in the face of increasing competition for talent and the evolving expectations from workers on the future of work and generational mindsets.",85,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +344,nestle.pdf,"Talent Attraction & Retention How a company recruits, engages, and maintains employees in the face of increasing competition for talent and the evolving expectations from workers on the future of work and generational mindsets. It also includes the strategies in place to maintain a diverse workforce. StakeholderPriorityTopics The topics stakeholders identified in order of priority are as follows: (Score out of seven) Packaging & Circularity 5.91 Talent Attraction, Retention & DEI 2.14 Water Stewardship 5.36 Labor & Human Rights 2.11 Health & Nutrition 4.28 Product Quality & Safety 1.89 Responsible Sourcing 3.53 Biodiversity & Deforestation 1.89 Climate Change 2.96 Business Continuity & Resilience 1.84 Sustainable Communities 2.67 Corporate Governance 1.57 Advocacy & Regulatory Engagement 2.61 Stakeholder, System & Business Partner Engagement 1.29 Responsible Marketing 2.27",85,"[Guess]: No +[Confidence]: 1.0 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +345,nestle.pdf,"86THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY WATERPACKAGINGFINANCIAL AND PORTFOLIO DATAOVERVIEW GREENHOUSE GAS EMISSIONS & WASTE WORKPLACE, SAFETY & GIVING BACK HUMAN RIGHTS & AGRICULTURE DEFINITIONS OF PRIORITY TOPICS ASSURANCE STATEMENTS ASSURANCE STATEMENTS 2022 Business & Sustainability Report Independent Accountants’ Review Report 2022 Greenhouse Gas Emissions Assurance Statement",86,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +346,nestle.pdf,"87THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY Global Reporting Initiative (GRI) Task Force on Climate-related Financial Disclosures Sustainability Accounting Standards Board (SASB) United Nations Global Compact (UNGC) United Nations Guiding Principles Reporting Framework (UNGPRF) United Nations Sustainable Development Goals (UNSDGs) GRI provides a globally recognized framework for companies to measure and communicate their environmental, economic, social and governance performance. We prepared this report in accordance with the GRI Standards: Core option. This is the twelfth consecutive year that these reporting principles have informed our reporting process, and we regularly assess our progress against these guidelines. In this report, the GRI General Disclosures are solely for The Coca-Cola Company. For all other indicators, the scope is identified in the referenced documents. Beyond reporting on performance indicators required by the GRI, we report on additional indicators important to our broad range of stakeholders. This report also meets the requirements of the UNGC Advanced Communication on Progress and aligns with the UNGPRF, which addresses reporting on human rights.",87,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +347,nestle.pdf,"This report also meets the requirements of the UNGC Advanced Communication on Progress and aligns with the UNGPRF, which addresses reporting on human rights. We review our reporting regularly and aim to be as responsive as possible to our stakeholders’ feedback. Reporting Frameworks & SDGs In a separate PDF document available here, we index the contents of this report to several reporting frameworks and standards.",87,"[Guess]: No +[Confidence]: 0.95 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 " +348,nestle.pdf,COCA-COLACOMPANY.COM Version 2,88,"[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 ","[Guess]: No +[Confidence]: 0.9 "