Governance and oversight of sustainability and ESG is the responsibility of the Board, headed by the Chair of the Board, with specific aspects covered by the Board's committees. The Audit and Compliance Committee (ACC) and its chair oversee the reporting and assurance process for ESG, as well as risk oversight, including Enterprise Risk Management (ERM), and Ethics and Compliance. The Remuneration Committee (RemCo) sets the ESG targets within the Lonza compensation system and oversees the achievements of such targets and respective incentive payouts on an annual basis. The Nomination and Governance Committee (NGC) is responsible for overseeing governance, talent development and succession planning for the Board and Executive Committee. The Innovation and Technology Committee (ITC) reviews innovation and technology, including related and relevant ESG developments. [...] While the Board acts as sponsor and overall owner of the ESG program, implementation is the responsibility of the EC. The Board and its Committees review and endorse Lonza's sustainability program and reporting, including a regular update on status and key performance indicators, such as climate-related risks. The Board also receives regular updates on regulatory and other developments relating to ESG which are of importance to our business and stakeholders. Lonza's climate-related targets and results are discussed several times during the year and at year-end in the context of sustainability reporting. The Board also has oversight of enterprise risks that are identified through the company's Enterprise Risk Management program, which are reviewed annually. [...] The Sustainability and Risk Committee (SRC), led by the Lonza Group General Counsel and Company Secretary, manages identified material topics (as shown in the Materiality section) and oversees sustainability reporting. Reporting to Lonza's Group General Counsel, the Head of Global Sustainability and the Head of Global Environment, Health and Safety (EHS) teams are responsible for proposing the corporate sustainability strategy and for implementing the Safety and Sustainability Policy. At a divisional level, sustainability representatives report to each Division Operations Head to support the implementation of ESG initiatives and divisional programs. [...] Sustainability governance at corporate level is assured by the SRC and the Safety and Sustainability Steering Board (SSSB). The SRC meets monthly and includes members from Global Sustainability, Ethics and Compliance, EHS, Corporate Responsibility and Enterprise Risk Management. Its responsibilities include the following: - Defining Lonza's sustainability strategy implementation and alignment with global functions - Providing leadership, driving awareness and engagement in sustainability, including changes in the regulatory and reporting landscape - Overseeing the design and execution of programs aligned with the seven SDGs - Serving as a link and source of dialogue between internal networks and external stakeholders - Encouraging sharing of best practice across divisions and functions [...] The SSSB deals with the operational aspects of safety and sustainability and meets quarterly. It includes global leaders from EHS, Sustainability, Operations, Engineering, Corporate Responsibility and Enterprise Risk Management, as well as the Head of Group Operations (an EC member). Its responsibilities include: - Monitoring the EHS and sustainability performance of the group, the divisions and aligning group and divisional targets, programs and initiatives - Identifying significant operational EHS and sustainability risks, emerging issues, regulatory developments and compliance matters - Endorsing global EHS and sustainability procedures and standards and ensuring involvement of the business divisions - Reviewing quarterly audit summaries and significant governmental enforcement notices, citations and actions to drive appropriate corrective actions and programs [...] The SRC continues to drive our ESG agenda by working with the Board and EC on the SDG-aligned targets integrated in our compensation framework. The Board and the RemCo conduct an independent evaluation of the ESG program annually, with a direct impact on compensation. [...] The Annual General Meeting (AGM) is an opportunity for our shareholders to provide feedback. The election or re-election of each Board member provides an evaluation of Board performance. The Sustainability Report is reviewed by the RemCo and the ACC with final approval by the Board and is published together with the Annual Report ahead of the AGM. The sustainability report is assured in relevant parts by the Auditors applying a limited assurance process. At the AGM 2025, our shareholders will have the opportunity to vote on non-financial disclosures with respect to the Swiss legal requirements (Art. 964b CO).