A key aspect of MCH Group's annual reporting involves being transparent about the relevant sustainability topics and our sustainability performance (GRI 2-3). The Sustainability Report 2023 has been prepared in accordance with the latest 2021 GRI Standards and is being published in March 2024 as a separate report (GRI: Global Reporting Initiative). No corrections or restatements compared to previous years are required for the 2023 reporting year (GRI 2-4). External assurance has been conducted for the first time of some of the figures and information published in this report (GRI 2-5). The Sustainability Report is published in the context of the 2023 Business Report (Annual Report, Financial Report, Remuneration Report).

Reporting on non-financial matters has been given greater weight through the legal obligation set out in Art. 964a ff. of the Swiss Code of Obligations (CO). On January 1, 2022, new reporting, transparency and due diligence obligations came into force for companies domiciled in Switzerland as per the Swiss Code of Obligations (Art. 964a-c and 964j-l CO) and the associated implementing ordinance (Ordinance on Due Diligence and Transparency in relation to Minerals and Metals from Conflict-Affected Areas and Child Labor [VSoTr]). The obligation to report on non-financial matters applies to “public interest entities” as per Art. 2, letter c of the Audit Oversight Act (AOA). MCH Group is also subject to this obligation, since, together with the Swiss and foreign companies it controls, the group has an annual average of at least 500 full-time employees for two consecutive business years and reports a balance sheet total in excess of CHF 20 million or sales in excess of CHF 40 million.

These provisions now apply for the first time to MCH Group's reporting for the 2023 business year. In its report, the company must account for environmental, social and labor issues as well as for the respect of human rights and the fight against corruption (including due diligence and transparency obligations with regard to minerals/metals from conflict areas and child labor). MCH Group started its preparatory work in 2022 and continued it in 2023. The most important ESG aspects are as follows:

The Sustainability Report 2023 is being prepared under the leadership of Sarah Borrey, CSSO of MCH Group, in collaboration with the Sustainability Team and external support. KPMG is responsible for the independent limited assurance of certain data. Prior to publication, the report is submitted to the Group Management Team, the Executive Board and the Board of Directors for consultation. The Chairman of MCH Group signs the report. The report is to be submitted to the Shareholders' Meeting for approval.

MCH Group attaches great importance to competitiveness and value creation for its global group of companies in the interests of all stakeholders, shareholders and customers, partners and suppliers, our employees, the industry networks and the business locations of Basel and Zurich. Our strategic focus is on growth and expansion.

In 2023, we made significant efforts in the area of sustainability and laid the foundations for future action. Based on scientifically sound findings, we set ourselves the long-term goal of achieving net-zero emissions by 2050. The short and medium-term targets are currently being drawn up.

In order to achieve these goals, we are attaching great importance to defined material topics in the three dimensions of environment, society, and corporate governance. These material topics detail the areas in which we have the greatest impact on our environment and society. In 2024, we are defining quantitative and qualitative targets as well as a clear roadmap which can be monitored and evaluated by means of the appropriate key figures and indicators. The risk management system we introduced in 2023 also takes into account climate-related risks, including direct climatic impacts and the associated transition risks. In addition, our governance structures ensure that the company management acts responsibly and in accordance with our values. MCH Group aims to make its contribution to the United Nations' Sustainable Development Goals (UN SDGs) that we believe we can influence.

MCH Group intends to complete its transition to net-zero emissions by 2050 in accordance with the guidelines issued by the Science Based Targets initiative (SBTi). This includes the reduction of greenhouse gas emissions across all relevant areas: Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy) and, where feasible, Scope 3 (all other indirect emissions over the length of the value chain). We aim to drive innovation and sustainable growth while supporting our customers and partners in their efforts to achieve their net-zero targets. In pursuing this goal, we are contributing directly to Switzerland's climate goals. By ratifying the Paris Agreement, the country has pledged to meet the 1.5°C target.

In 2022, we conducted a survey of more than 200 external and internal stakeholders (customers, partners, employees, shareholders, experts). Respondents had to rate 30 pre-selected factors according to their actual and potential social, economic and environmental impacts, including their impact on human rights. Based on the survey results, we identified and prioritized the material topics for our sustainability strategy and/or reporting. These are strategic topics we are addressing or projects in progress. (GRI 3-1)

In determining the material topics, we are following the recommendations of the GRI Standard on materiality analysis and implementing these in accordance with 'GRI 3: Material Topics 2021' (GRI Global Reporting Initiative). No revision of the material topics took place in 2023.