#### Political Dialog
Fair political conditions are crucial for successfully positioning companies engaged in global competition. In
times of global trade flows, highly complex, industrial value chains require reliable rules as essential factors in
entrepreneurial activity.
Multilateral agreements and institutions are being increasingly called into question against the background of
growing protectionist measures in (steel) exports. A lack of standards or different norms around the world in
numerous political areas, in environmental, climate, energy and labor policy, for instance can be the cause of
considerable distortion in competition. We therefore lobby political decision-makers for an international level
playing field which provides fair production conditions for German industry.
To do so, we follow the political debate systematically, maintain contact with relevant political institutions and
contribute our expertise to political processes. In our dialog with communal, regional, national and European
bodies, we rely on precise information and credible, transparent communication. In this context, we would
refer to our corporate policy of giving no donations or payments to political parties. Due to the shareholding of
the State of Lower Saxony, we see ourselves obliged to maintain political neutrality, also with regard to open
dialog with all democratic parties.
The independent tracking of issues relevant to the Group by means of political monitoring forms the basis for
effective communication: parliamentary bills are already substantially drafted at a European level. It is
therefore crucially important to identify legislative measures which directly or indirectly affect Group
activities or its business environment at an early stage. To intensify this area of responsibility and the
representation of the Group's interests at EU level, the Salzgitter Group has its own liaison office in Brussels.
Due to these political activities, Salzgitter AG (SZAG) has been registered in the EU's Transparency Register
since 2014. Interested parties can obtain insights here into the resources spent for its political work at
European level. A public transparency register has now been introduced at a national level effective January 1,
2022, and Salzgitter AG has its own entry.
Besides policies on energy, the environment and climate protection (e.g. the transposition acts governing EU
emissions trading from 2021, border adjustment mechanisms, low carbon technologies), the main political
issues of the last few years actively followed by the Group included trade policy (EU trade protection
procedures and instruments, in particular EU safeguards, and reform of the WTO), EU research and innovation
policy (for instance, the ETS Innovation Fund, Important Projects of Common European Interest and Clean Steel
Europe), including the EU subsidy system, as well as employment and social policies.
The Salzgitter Group has been trustfully working for years as a know-how incumbent with associations and
cross-sectoral initiatives to follow legislative procedures and promote constructive cooperation between
politics, industry and society. Representatives of the Group are actively engaged in political umbrella
associations both at a national and European level. Among the most important of these are the Federation of
German Industries, the Business Confederation of Lower Saxony, the European Steel Association Eurofer, the
German Steel Federation, as well as the European Hydrogen Association Hydrogen Europe and the German
Hydrogen and Fuel-Cell Association (DWV). The foundation of all work in associations is a set of rules on
compliance meeting legal requirements and the observance of a lawful code of conduct (see "Society",
"Conduct compliance with laws and directives", section "Corporate compliance"). Beyond its participation in
associations, SZAG is actively engaged in advisory groups in the public sector and the EU. Government
commissions on important issues relating to policies on the environment and energy have a long tradition,
especially in Lower Saxony. Experts from SZAG are regularly represented in these advisory bodies to the state
government as well as in the working groups assigned to it. SZAG also played an active role in the development
of the Federal Government's "Action Plan for Steel – For a strong Steel Industry in Germany and Europe", and it
is involved in its continuing implementation.
SZAG regularly participates on the employers' side in the "Sectoral social dialog – Steel" set up by the European
Commission. Furthermore, delegates from the company take part in expert groups set up by the European
Commission such as the "RFCS – Steel Advisory Group (SAG)", "RFCS – Technical Group (TGS9)". For this purpose,
SZAG is a regular member of the German delegation in the OECD Steel Committee.