1&1 : Non-financial Group report 2023

Separate non-financial Group report 2023

1&1 in Key Figures

Decarbonization

Cooperation with business partners

(1) Due to a change in the calculation of the key figure, the previous year's data was adjusted retrospectively.

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Separate non-financial Group report 2023

Content

4 Foreword

1. About This Report
2. Business Model
3. Sustainability Management
4. Identification of the Key Topics for 1&1

11 Environmental Information

11 Decarbonisation

17 Material Efficiency and Circularity

22 Social Information

1. Access to Digitalisation

1. Privacy

1. Customer and product experience

1. Working Conditions

1. Diversity, Inclusion, Equality and Accessibility

1. Responsible supply chain

46 Governance Information

46 Responsible corporate management

1. Disclosure on EU-Taxonomy

1. Annex

1. Contact
2. Legal information

Key

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Separate non-financial Group report 2023

Dear Readers,

Thirty-five years ago, we laid the cornerstone for what is today 1&1 AG. We have made it our mission ever since to pursue innovation and responsibly mould our digital world. As one of the largest German telecommunications companies (more than 16.2 million customer contracts and around 3,320 employees) and as the operator of the fourth German mobile network, we regard ourselves as bridge builders to a digital future. We take the special corporate and social responsibility that accrues to our position very seriously.

Our goal is to provide services and products - secure, trustworthy and state-of-the-art - that open the door to the digital world for as many people as possible. Actively leading the way as a driver of innovation has evolved to become the core of our corporate DNA. We are the first network operator in Europe to rely on the groundbreaking Open RAN technology - fully virtualised, independent of dominant network outfitters such as Huawei and ready for real-time applications.

Our operation of the 1&1 Open RAN network is based on software running in the private cloud. The required resources will be provided by more than 500 regional edge data centres now under construction in the immediate vicinity of the antenna locations, connected with fibre optic lines and equipped with gigabit antennas, across all of Germany. This is the only network architecture that can offer the extremely short transmission paths that are indispensable for real-time applications. Unlike conventional networks, which are often provided by one sole supplier as a closed system, we utilise standardised interfaces that enable us to work flexibly with the most secure and best manufacturers. Our vision is clear: we want 1&1 Open RAN to make a noticeable difference and to contribute to preparing Germany for the applications of the future.

Operating sustainably as a company is a major element of our self-image and a part of our daily work at 1&1. The focus is not limited to our efforts to meet without exception the demands of ever-stricter regulations; we strive to continue our further development at all times. In 2023, we updated our materiality analysis for our Group with the objectives of defining even more clearly the areas of action

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Separate non-financial Group report 2023

that are most important to us, identifying challenges more specifically and taking effective steps with clear targets. This lays the groundwork for the strategic derivation and operationalisation of our sustainability measures and their unceasing growth.

Besides our digital responsibility, decarbonisation is one of our key areas of action. One important lever for the reduction of our CO2 emissions is the electricity consumption entailed by the operation of our networks. We have long since turned to renewable energies as the source of our electric power. Thanks to our employment of state-of-the-art energy management systems, we are able to track and optimise our energy efficiency during network operation continuously.

We conducted an in-depth assessment of our greenhouse gas emissions last year to obtain a precise picture of the situation and to discover measures for further improvement. The precise analysis will enable us to implement further targeted measures to reduce our corporate carbon footprint in the coming year. Our logistics also continue to focus consistently on the climate-neutral shipping of our products and the use of almost completely recyclable packaging materials as well as the active sale of refurbished devices. We endeavour to make a positive contribution to resource conservation in all areas of the Company by promoting the circular economy and constantly scrutinising internal processes.

Our employees actively collaborate in shaping the digital future at 1&1 and are the foundation of our Company's success. Openness, agility and fairness are only some of the pillars of a culture that fosters and challenges our teams in equal measure. As we work together in our search for ongoing improvement, we have further strengthened our internal communications concerning our sustainability efforts and created more opportunities for people to become personally involved and assume responsibility.

In the coming years, we want to face the changing social, economic and ecological opportunities and challenges with an open mind and move forward together. We look forward to an exciting future!

Best regards,

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Separate non-financial Group report 2023

In preparation for the implementation of the requirements of the Corporate Sustainability Reporting Directive (CSRD), 1&1 is publishing two reports on the company's sustainability activities for the 2023 reporting year. The combined Group (non-financial Group statement and ESG report). The non-financial Group statement in the form of this non-financial report presents all information in accordance with Section 289c315c HGB and was prepared with reference to the GRI Standards. In addition to the non-financial Group statement, no non-financial statement in accordance with Section 289c HGB is to be prepared, as the criteria of Section 289b (1) HGB are not fully met.

Reporting period and scope of application

This report covers the financial year from 1 January 2023 to 31 December 2023.

Since this is the Group Sustainability Report, the statements it contains apply essentially to all divisions and locations and to all 1&1 Group subsidiaries. This is true of all key figures published in the report. There are express indications of any instances in which certain disclosures do not yet apply to all companies, locations or divisions covered by this report. We intend to expand continuously the data pool on which the reporting is based. The non-financial report for the 2022 financial year was published in March 2023.

The non-financial group report was prepared and published by 1&1 AG's Management Board. In the course of its concluding independent review, the Supervisory Board addressed the report as a whole in depth and reviewed it for its legality, correctness and expediency. The Supervisory Board critically examined the content of the Sustainability Report and discussed it with the Management Board, which was available to answer supplementary questions and provide additional information. Following its own examination, the Supervisory Board came to the conclusion that there were no grounds for any objections to the non-financial group report.

This report will be available to any and all interested parties for downloading as a PDF file in German and English on 1&1 AG's website (www.1und1.ag/corporate-governance#nachhaltigkeitsbericht)as of the March 21, 2024.

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Separate non-financial Group report 2023

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Separate non-financial Group report 2023

The Sustainability department is responsible for organizing Group-wide sustainability management. The department's tasks include the strategic implementation of sustainability measures, as well as their development and enhancement, external sustainability communication and improving the relevant data quality. 1&1 has established an overarching Sustainability committee in order to ensure that all relevant specialist departments are involved and have a broad understanding of the content. In addition to the CFO, this includes various executives with interfaces to sustainability. The 1&1 AG CFO is in charge of sustainability activities and ensures that all pertinent sustainability issues are called to the attention of 1&1 AG's Management Board and that strategic decisions are made. The 1&1 AG Supervisory Board fulfils its control responsibility by conducting its own review of the non-financial report and the ESG report to assure their legality, regularity and expediency.

Focal topics

• We will promote a climate-neutral future [Decarbonisation].
• We will promote the return and use of recyclable materials [Material Efficiency and Circularity].
• We will remain a TOP employer [Working Conditions].
• We will offer an innovative customer and product experience [Customer and Product Experience].

The specific targets and measures for these focal topics are currently being finalized and will be published separately in the course of the 2024 financial year.

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Separate non-financial Group report 2023

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Separate non-financial Group report 2023

Owing to the initiated measures, there are no significant non-financial risks associated with the business activities, business relationships and products of 1&1 that are very likely to have or will have a serious negative impact on the non-financial aspects (pursuant to section 289c Commercial Code [Handels- gesetzbuch; HGB]).

Of the 15 relevant sustainability topics, eight are currently classified as material and can be seen in the table below, categorised by CSR-RUG aspect.

Table: List of Material Topics, Categorised by CSR-RUGNon-financial Aspects

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