NORMA : Corporate Responsability Report (20240325_NORMA_GB_2023_en_CR-Bericht)

CORPORATE RESPONSIBILITY REPORT2

101 CR Performance Indicators

104 Assurance Report

Emitter with pressure equalization from NDS: It efficiently and sustainably delivers every drop of precious water exactly where it needs to go.

• The following information are part of the Non-Financial Group Report and were subject to limited assurance. The relevant sections are marked with a line in the margin.

1. INTRODUCTION
2. TO OUR SHAREHOLDERS
3. CORPORATE RESPONSIBILITY REPORT

• CORPORATE RESPONSIBILITY STRATEGY

1. GOVERNANCE

1. ENVIRONMENT

1. SOCIAL

82 COMBINED NON- FINANCIAL REPORT, EU TAXONOMY, GRI AND UN GLOBAL COMPACT

101 CR PERFORMANCE INDICATORS

104 ASSURANCE REPORT

1. CONDENSED MANAGEMENT REPORT
2. CONSOLIDATED FINANCIAL STATEMENTS
3. FURTHER INFORMATION

Corporate Responsibility Strategy

NORMA Group's Approach to Corporate Responsibility

Corporate Responsibility (CR), for NORMA Group, means reconciling the impact of its business with the needs of society. This is done by ensuring that the management and employees follow legal requirements and integrate social and ecological aspects into the company's strategy and processes. With a variety of products, NORMA Group already makes a valuable contribution to a more sustainable society by helping to reduce the negative effects of global challenges such as resource scarcity and climate change.

NORMA Group has been implementing the concept of CR since 2012. The goal is to act in a responsible, sustainable, and lawful manner in all areas of the company's functions. To ensure that NORMA Group as a whole remains oriented toward this goal, CR has been integrated as a core element of the corporate strategy. 4 STRATEGY AND GOALS The Group-wide :CR POLICY defines the basic understanding of responsibility as a company. It was revised in 2020 and comprises three key areas of action: "Environment", "Social" and "Governance". The policy is updated every year, including fiscal year 2023. The policy describes the strategic approach with the aim of coordinating NORMA Group's responsibility in a structured way and further developing it in a targeted manner. In its CR Policy, NORMA Group also reaffirms its commitment to the UN Global Compact, the United Nations' Sustainable Development Goals and ILO Fundamental Principles and Rights at Work.

Management of CR

To strategically align and further develop the CR measures, NORMA Group set up the CR Roadmap, which includes objectives for each area of action. 4 CR TARGETS AND SUSTAINABLE DEVELOPMENT GOALS For all material topics, the relevant departments propose targets, which are reviewed and approved by the Management Board.

4 GRAPHIC G007: 'MATERIALITY MATRIX'

The Chief Financial Officer of NORMA Group is responsible for Corporate Responsibility and ESG (Environment, Social, Governance) since January 2022. This also includes the cross-departmental and cross-location coordination of CR topics.

1. INTRODUCTION
2. TO OUR SHAREHOLDERS
3. CORPORATE RESPONSIBILITY REPORT

• CORPORATE RESPONSIBILITY STRATEGY

1. GOVERNANCE

1. ENVIRONMENT

1. SOCIAL

82 COMBINED NON- FINANCIAL REPORT, EU TAXONOMY, GRI AND UN GLOBAL COMPACT

101 CR PERFORMANCE INDICATORS

104 ASSURANCE REPORT

1. CONDENSED MANAGEMENT REPORT
2. CONSOLIDATED FINANCIAL STATEMENTS
3. FURTHER INFORMATION

Stakeholders & Materiality

Close exchange with stakeholders

NORMA Group sees itself as a transparent and open company. The Company specifically seeks exchange with its internal and external stakeholders as well as experts. This enables the Company to effectively implement the continuous improvement process, which is applied throughout the Group, for CR issues as well. NORMA Group's most important stakeholders and experts include its employees, customers, shareholders, and financial market players, as well as the media, politics, and non-profit organizations. The Company considers it part of its responsible corporate governance to incorporate the interests of stakeholders and the impact of its own business activities on stakeholders into its key decisions. Particularly in the strategic direction of the Company as well as in identifying material topics, NORMA Group values an open approach to stakeholder expectations.

Materiality analysis defines scope of CR activities

In 2020, NORMA Group carried out its last materiality analysis, in which it defined the most important social, environmental, and economic sustainability issues. The methodology was based on the requirements of the German Commercial Code (HGB) and the standards of the Global Reporting Initiative (GRI 2016): First, a comprehensive list of CR sub-topics was put together, based on requests from external stakeholder groups and on the GRI standards and the requirements of the German Commercial Code (HGB). The individual sub-topics were aggregated, and a total of 23 topics were defined, which were divided into the three areas of action "Environment," "Social" and "Governance."

1. INTRODUCTION
2. TO OUR SHAREHOLDERS
3. CORPORATE RESPONSIBILITY REPORT

• CORPORATE RESPONSIBILITY STRATEGY

1. GOVERNANCE

1. ENVIRONMENT

1. SOCIAL

82 COMBINED NON- FINANCIAL REPORT, EU TAXONOMY, GRI AND UN GLOBAL COMPACT

101 CR PERFORMANCE INDICATORS

104 ASSURANCE REPORT

1. CONDENSED MANAGEMENT REPORT
2. CONSOLIDATED FINANCIAL STATEMENTS
3. FURTHER INFORMATION

For each of the 23 defined sustainability topics, NORMA Group evaluated the relevance and impact. The relevance assessment was based on a survey of NORMA Group employees and the weighting of external customer and financial market ratings as well as an analysis of the assessment by the media and existing and future legislation (relevance axis). The impact analysis assessed both the extent to which NORMA Group's business activities influence the various topics and what risks could arise for the Group from these topics (impact risk axis). The latter was based on what are known as gross risks, i.e. those risks with which the NORMA Group is confronted if no suitable countermeasures are implemented. The assessment was deducted on a scale of 1 (irrelevant/no impact) to 6 (very relevant/major impact) and then prioritized (4 GRAPHIC G007: 'MATERIALITY MATRIX'). This was divided into topics that are a) managed globally, regionally and locally with measurable targets (right outer area), b) topics that are managed at the functional level through concrete measures (middle area) and c) those that are not considered material. The results can be broken down according to which topics are material according to the German Commercial Code and the GRI standard (climate protection, water, waste management/circular economy, employee satisfaction, training and development, compliance management, product quality and safety) as well as topics that were also classified as material according to the GRI standard (environmental management system, sustainable products, occupational health and safety, diversity and equal opportunities, human rights, responsible

1. INTRODUCTION
2. TO OUR SHAREHOLDERS
3. CORPORATE RESPONSIBILITY REPORT

• CORPORATE RESPONSIBILITY STRATEGY

1. GOVERNANCE

1. ENVIRONMENT

1. SOCIAL

82 COMBINED NON- FINANCIAL REPORT, EU TAXONOMY, GRI AND UN GLOBAL COMPACT

101 CR PERFORMANCE INDICATORS

104 ASSURANCE REPORT

1. CONDENSED MANAGEMENT REPORT
2. CONSOLIDATED FINANCIAL STATEMENTS
3. FURTHER INFORMATION

procurement, freedom of association). The results were validated internally with the top management of all regions and subsequently confirmed by NORMA Group's Management Board.

In 2023, the materiality analysis was again validated with the Management Board, the top management of the regions and the specialist departments. There were no changes.

In preparation for the EU Corporate Sustainability Reporting Directive (CSRD), NORMA Group has conducted a double materiality assessment, which will form the basis for reporting in accordance with CSRD from 2024. The topics identified as material will be reported in accordance with European Sustainability Reporting Standards (ESRS) from the next fiscal year.

1_The CO2 emissions for the target value are reported in accordance with the GHG Protocol (market-based, Scope 1 and Scope 2). Scope 1 only includes emissions from natural gas and liquefied natural gas and Scope 2 emissions from purchased electricity and district heating. When recording emissions, only emissions relating to the production sites are taken into account. Since January 2022, NORMA Group has purchased electricity from renewable energy sources at all production sites. NORMA Group purchases "Energy Attribute Certificates" for this purpose. These are also included in the target value.

2_Total amount of water withdrawn from the production sites.

3_Metal waste: Total weight of all metals generated by NORMA Group's operations that must be disposed of (excluding hazardous metals, including defective supplier parts that must be scrapped). Plastic waste: Total weight of plastics produced (excluding packaging material).

4_Calculation of the accident rate and number of medical treatments is based on the total workforce including temporary workers.

5_Personnel development activities in which employees acquire or develop skills.

6_Employees who leave the company voluntarily.

7_Number of confirmed defective parts divided by the number of parts delivered and multiplied by one million.

8_Total number of accepted customer complaints in the calendar month

1. INTRODUCTION
2. TO OUR SHAREHOLDERS
3. CORPORATE RESPONSIBILITY REPORT

• CORPORATE RESPONSIBILITY STRATEGY

1. GOVERNANCE

1. ENVIRONMENT

1. SOCIAL

82 COMBINED NON- FINANCIAL REPORT, EU TAXONOMY, GRI AND UN GLOBAL COMPACT

101 CR PERFORMANCE INDICATORS

104 ASSURANCE REPORT

1. CONDENSED MANAGEMENT REPORT
2. CONSOLIDATED FINANCIAL STATEMENTS
3. FURTHER INFORMATION

CR Targets and Sustainable Development Goals

CR targets 2024

Based on the topics identified as being material, NORMA Group formulates quantitative targets for each area of action. By integrating the findings of the materiality analysis into the CR Roadmap, NORMA Group ensures that the targets are also oriented towards stakeholders' expectations. Thus, the achievement of the specific CR targets is an indicator of NORMA Group's performance in CR.

An overview of the CR targets for 2024 can be found in the chart 4 GRAPHIC G008: 'CR ROADMAP 2024'. The Group-wide targets presented were approved by NORMA Group's Management Board and subsequently translated by the specialist departments into sub-targets for regions and individual sites. Progress in the material areas is regularly reviewed internally and reported externally.

Climate target 2024 integrated into Management Board's remuneration

NORMA Group developed an 4 ENVIRONMENTAL STRATEGY in 2018. A core component of this strategy is the reduction of greenhouse gas emissions at NORMA Group's manufacturing sites. In setting its climate target, NORMA Group followed the recommendations of the :SCIENCE-BASEDTARGETS INITIATIVE3. The target was tightened again in 2020 and now amounts to roughly 19.5% reduction in greenhouse gases compared to 2017 by the end of 2024, which corresponds to a target value of 44,434 tons4. Among other things, the target is part of the remuneration of NORMA Group's Management Board. 4 REMUNERATION REPORT

3 Links to external information are not part of the non-financial report and serve only as a source of further information

4 Carbon emissions for the target value are reported in accordance with the GHG Protocol (market-based, Scope 1 and Scope 2). Scope 1 includes only emissions from natural gas and LPG and Scope 2 emissions from purchased electricity and district heating. When recording emissions, only emissions relating to the production sites are taken into account. Since January 2022, NORMA Group has purchased electricity from renewable energies at all production sites. NORMA Group purchases "Energy Attribute Certificates" for this purpose. These are also included in the target value.

1. INTRODUCTION
2. TO OUR SHAREHOLDERS
3. CORPORATE RESPONSIBILITY REPORT

• CORPORATE RESPONSIBILITY STRATEGY

1. GOVERNANCE

1. ENVIRONMENT

1. SOCIAL

82 COMBINED NON- FINANCIAL REPORT, EU TAXONOMY, GRI AND UN GLOBAL COMPACT

101 CR PERFORMANCE INDICATORS

104 ASSURANCE REPORT

1. CONDENSED MANAGEMENT REPORT
2. CONSOLIDATED FINANCIAL STATEMENTS
3. FURTHER INFORMATION

Goal 9 - Industry, Innovation and Infrastructure:

4 INNOVATIONS form the basis for future growth and for developing environmentally friendly products. For this reason, NORMA Group sets internal incentives for its employees to generate new ideas.

Goal 12 - Responsible Consumption and Production:

NORMA Group seeks to reduce consumption of resources in production and conducts measures to do so at every plant. Furthermore, NORMA Group is increasingly taking sustainability criteria into account when purchasing

materials 4MATERIAL PROCUREMENT.

Goal 13 - Climate Action:

NORMA Group's environmental strategy focuses on 4 REDUCING GREENHOUSE GASES.

In addition, NORMA Group also contributes to the implementation of other objectives (such as "Goal 3 - Good Health and Well Being" as part of occupational health and safety measures, "Goal 5 - Gender Equality" as part of the 4 NORMA CLEAN WATER project with Plan International, e.g. by organizing equal opportunity workshops, and "Goal 11 - Sustainable Cities and Communities" through products in the area of infrastructure and water management). We have been acting on "Goal 17 - Partnerships for the goals" via sub-targets 17.16 and 17.17 through our past (India) and current partnerships (Brazil) with Plan International in the developing countries of the Global South and will continue to do so.

1. INTRODUCTION
2. TO OUR SHAREHOLDERS
3. CORPORATE RESPONSIBILITY REPORT

• CORPORATE RESPONSIBILITY STRATEGY

1. GOVERNANCE

1. ENVIRONMENT

1. SOCIAL

82 COMBINED NON- FINANCIAL REPORT, EU TAXONOMY, GRI AND UN GLOBAL COMPACT

101 CR PERFORMANCE INDICATORS

104 ASSURANCE REPORT

1. CONDENSED MANAGEMENT REPORT
2. CONSOLIDATED FINANCIAL STATEMENTS
3. FURTHER INFORMATION

Sustainability Ratings and Sustainable Finance

Positive feedback from sustainability ratings

In 2023, NORMA Group again received independent feedback from rating agencies on its performance in the area of CR. The questions asked of NORMA Group in this context are based on the most important sustainability indicators from the areas of environment, social affairs, and corporate governance. As a rule, NORMA Group is required to be able to substantiate its commitment to sustainability with documents and certificates. The results of the ratings are primarily used by two stakeholder groups: customers and financial market players.

The feedback received by NORMA Group was again positive in 2023. The CR measures received consistently good ratings from the rating agencies.

For NORMA Group, the positive results mean a confirmation of its approach to CR. At the same time, the company is using the feedback to continuously develop its CR strategy and organization.

Improved loan terms through progress in sustainability management

For the first time, NORMA Group set up a syndicated loan in 2019 that contained a sustainability component to partially refinance its business activities. In addition, a promissory note with three-, five- and seven-year terms with a corresponding ESG component was successfully placed on the market in summer 2023. The sustainability component links the terms of refinancing to NORMA Group's CR commitment. By demonstrating a lasting good sustainability performance, NORMA Group gains access to more favorable loan conditions.

The evaluation of the Sustainalytics rating agency serves as the basis for assessing the sustainability performance. It assesses NORMA Group holistically in various sustainability categories such as corporate governance, climate management and human rights. While the rating methodology for the standard Sustainalytics report is evolving, the methodology for the sustainability component of the syndicated loan remains largely unchanged compared to the base year 2019 and thus ensures comparability for the term of the loan.

1. INTRODUCTION
2. TO OUR SHAREHOLDERS
3. CORPORATE RESPONSIBILITY REPORT

• CORPORATE RESPONSIBILITY STRATEGY

1. GOVERNANCE

1. ENVIRONMENT

1. SOCIAL

82 COMBINED NON- FINANCIAL REPORT, EU TAXONOMY, GRI AND UN GLOBAL COMPACT

101 CR PERFORMANCE INDICATORS

104 ASSURANCE REPORT

1. CONDENSED MANAGEMENT REPORT
2. CONSOLIDATED FINANCIAL STATEMENTS
3. FURTHER INFORMATION

NORMA Group was in 2023 again able to demonstrate a strong management score. With a risk score of 16.7, NORMA Group belongs to the 50 :"ESGTOP-RATED" companies in the industry group and is ranked 19th out of a total of 591 rated companies within the industry group.

With a loan term of up to seven years (until 2026 for the syndicated loan and until 2030 at the latest for the promissory notes), the inclusion of the sustainability component in the refinancing strategy is an important step toward integrating sustainability aspects into NORMA Group's core business in the long term. Further information on refinancing can be found on NORMA Group's website :WWW.NORMAGROUP.COM.