SIKA - COMMITTED TO SUSTAINABLE PERFORMANCE

APRIL 2024

TABLE OF CONTENTS

01 CORPORATE GOVERNANCE - STRUCTURES AND RESPONSIBILITIES

02 STRONG CORPORATE CULTURE

  1. NEW STRATEGY: STRATEGY 2028 / NON-FINANCIAL TARGETS STRATEGY 2028
  2. SIKA IS COMMITTED TO SUSTAINABILITY

05 PRODUCT SUSTAINABILITY

06 SOCIAL RESPONSIBILITY

07 REMUNERATION - WELL-BALANCED COMPENSATION SYSTEM

08 LINKS & ANNEX

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CORPORATE GOVERNANCE - STRUCTURES AND RESPONSIBILITIES

CORPORATE GOVERNANCE

COMMITMENT TO OPENNESS AND TRANSPARENCY

  • Good Corporate Governance safeguards the company sustainable development and performance
  • The Board regularly assesses
    Sika's Corporate Governance against regulatory developments, and best practice standards

Good

Corporate

Governance

Best practice standards

Openness and transparency

Stakeholders' needs and views

  • Sika provides information on structures, processes, areas of responsibility, procedures, rights and obligations of stakeholders
  • The Board aims to hold a transparent and open discussion with all stakeholders, considering their needs and views

4

CORPORATE GOVERNANCE

COMPLIANT WITH STANDARDS AND REGULATIONS

  • Adheres to the SIX Swiss Exchange's Directive on Information Relating to Corporate Governance
  • Follows the principles of the Swiss Code of Best Practice for Corporate Governance of Economiesuisse1
  • Aligned with various international frameworks (GRI, CDP, UN SDGs, UN Global Compact, WBCSD, TCFD, TNFD)
  • Complies with all applicable local laws and regulations where business is conducted
  • The Sika Code of Conduct is binding, even in cases where local laws are less stringent

An annual review is conducted to confirm the conformity with the Swiss Code of Obligations, the Ordinance against Excessive Remuneration (VegüV), the SIX Directive on Corporate Governance and the Sika Articles of Association concerning Board member independency and the number of external additional mandates

1Economiesuisse

5

CORPORATE GOVERNANCE FRAMEWORK STRUCTURES AND RESPONSIBILITIES

ARTICLES OF ASSOCIATION

CODE OF CONDUCT

VALUES & PRINCIPLES

ANNUAL GENERAL MEETING

BOARD OF DIRECTORS

CEO

ASIA/PACIFIC

EMEA

CONSTRUCTION

FINANCE

HR, LEGAL &

COMPLIANCE

INNOVATION &

SUSTAINABILITY

AUTOMOTIVE & INDUSTRY

PROCUREMENT

COMM & IR

ORGANIZATIONAL RULES

AMERICAS

OPERATIONS, QUALITY & EHS

6

CODE OF CONDUCT (COC)

SIKA CULTURE: INTEGRITY AND ETHICAL CONDUCT

  • Based on Sika's Values and Principles, available in 49 languages, read and signed by newly hired employees
  • In 2023, Sika rolled out the revised CoC which underscores its strong commitment to sustainable development, incl. human rights and environmental protection
  • It reflects all recent policy changes (e.g., Supplier CoC, Global Privacy Policy)
  • Bi-annualcommitment by Senior Management and General Managers, and regular trainings for all employees (incl. those joining through acquisitions)
  • Violations reported to management or viaSika Trust Line
    • HR & Compliance investigates reported misconduct, substantiated cases are reported to the Audit Committee
    • Substantiated compliance violations lead to disciplinary action and/or organizational measures

Source: Sika Code of Conduct

7

SUPPLIER CODE OF CONDUCT (SCOC)

RESPONSIBLE SOURCING

  • Commitment to high ethical standards and sustainability
  • Recurring evaluation and screening processes in place
  • Requirements include compliance with the following standards:
    • Universal Declaration of Human Rights
    • The core conventions of the ILO on labor standards
    • All applicable local, national and international laws concerning:

➢ Anti-corruption

➢

Sanctions, non-proliferation, and export controls

➢ Fair competition

➢

Environment, Health & Safety (EHS) protection

➢ Intellectual property, data and privacy protection

Source: Supplier Code of Conduct

8

RESPONSIBLE SOURCING

ENGAGEMENT IN "TOGETHER FOR SUSTAINABILITY"

  • Initiative based on the UN Global Compact and Responsible Care® principles
  • Sika is a member since 2020
  • Active collaboration to assess the sustainability performance and positively impact its progress within the supply chain of the chemical industry
  • Learning and sharing best practices in sustainability with other companies of the industry
  • Sika takes part in several workstreams within the initiative:
  • WS1: Governance and Partnerships
  • WS3: TfS Audits
  • WS5: GHG Emissions

Source: Together for Sustainability

9

BOARD RESPONSIBILITIES

BOARD COMPOSITION AND SUCCESSION PLANNING

The Nomination and Compensation Committee (NCC) holds the responsibility for the succession planning. The duties of NCC includes:

  • Identification and assessment of potential BoD candidates based on predefined criteria
  • Yearly assessment of the Board and the Board Committees regarding performance, constitution and independency
  • Yearly assessment of the performance of each member of the Group Management
  • Identification and assessment of potential candidates to the position of CEO
  • Review of candidates for other Group Management positions as proposed by CEO
  • Yearly review and assessment of the succession planning and emergency succession list for positions of Group Management

It is of high relevance to have a well-balanced composition of the Board - with an independent majority - and an appropriate mix of members representing consistency and renewal.

Source: Board Composition and Succession Planning

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Disclaimer

Sika AG published this content on 18 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 April 2024 12:21:06 UTC.