Mayr Melnhof Karton AG

The MM Group reported on the financial year 2022 for the first time "in accordance" with the standards of the Global Reporting Initiative (GRI) and will continue to do so for 2023. The topics described below were identified in a materiality analysis in 2021, in which the interests of our stakeholders were taken into account. As there have been no significant changes in the business activities carried out since 2021, we assume that the analysis and definition of the material topics for the MM Group's sustainability strategy continue to apply in 2023. At the same time, we strive to continuously optimise and expand our transparency in an ongoing dialogue with internal and external stakeholders. The new requirements of the CSRD (Corporate Sustainability Reporting Directive) and the ESRS (European Sustainability Reporting Standards) will come into effect for the MM Group in the financial year 2024. Intensive preparations were therefore already made in 2023. An internal review of the materiality analysis and a subsequent ESRS gap analysis were carried out in order to integrate missing KPIs into the existing reporting structure in the best possible way. On this basis, we will carry out a materiality analysis in the first quarter of 2024 in order to define future key topics together with internal and external stakeholders. [...] The MM Group pursues science-based climate targets to mitigate climate change. In line with our officially recognised science-based targets, measures such as the MM Sustainability Bonus introduced in 2023 have also been taken. In addition, we submitted our Net Zero Target to SBTi in the fourth quarter of 2023 and officially committed to it. To this end, we not only determine the Group's direct and indirect greenhouse gas emissions, but also support our customers' sustainability initiatives through individual life cycle assessments. Life cycle assessments at product level are carried out in accordance with the international standards of the GHG Protocol and ISO 14040. We also use the standards of the Global Reporting Initiative (GRI) as recognised guidelines for reporting non-financial key figures. In preparation for the future mandatory requirements of the Corporate Sustainability Reporting Directive (CSRD), a gap analysis was carried out in the financial year 2023 with regard to the European Sustainability Reporting Standards (ESRS) and missing KPIs were integrated into the existing reporting system. In addition, the integration of climate-related risks and opportunities into the existing reporting structure is based on the TCFD (Task Force on Climate-Related Financial Disclosures) framework. As part of MM sustainability management, we are thus meeting the demand for increased transparency, international comparability and, as a result, the growing need for information on behalf of our stakeholders so that they are be able to assess the company in greater depth on the basis of ESG (environment, social, governance) criteria. The registration of MM as a TNFD (Task Force on Nature-Related Financial Disclosures) early adopter in 2023 was also an important step in this connection. We are committed to applying the TNFD framework to our consolidated non-financial report as of the financial year 2024. [...] Governance structure of sustainability In the financial year 2021, Group Sustainability was established as an independent department at Group level which reports directly to the Management Board and ensures that sustainability and impact management are implemented and operated throughout the Group on behalf of and in the interests of the Management Board. In the last reporting period, Group Sustainability was expanded with additional team members and a cross-departmental reorganisation. Through the integration of Group Product Safety, Group Safety and Group Quality Management, the department now operates as the Group Sustainability and Safety Department, reflecting the complexity of the areas of responsibility. The respective local management fulfils the management tasks and every employee is encouraged to contribute to the sustainable development of the MM Group. Sustainability management therefore does not take place in isolation, but as an integral part of the organisation and its processes. In order to further emphasise the topic of sustainability and our associated goals, additional key performance indicators were developed for management in 2022.They have been included in bonus payments since 2023. The ultimate responsibility for non-financial matters lies with the Management Board, in particular the EU taxonomy. The Supervisory Board is continuously informed about innovations in the area of sustainable development and is regularly involved in the monitoring of impact management (economic, environmental, social). This relates in particular to strategies and major investment projects but also to issues that affect the operating business. The Supervisory Board fulfils its statutory audit obligation and the disclosure of non-financial key performance indicators is audited and validated by third parties. PwC Wirtschaftsprüfung GmbH, Vienna, has conducted an independent audit of the Consolidated Non-financial Report with limited assurance. The corresponding report can be found on page 104.

The Supervisory Board also once again dealt with a number of sustainability issues, focusing on the current EU requirements. In light of the increased integration of financial and sustainability agendas, the responsibilities of the Audit Committee were expanded to include sustainability competences. This step is also reflected in the change of the Committee's name ("Audit and Sustainability Committee")."
"In view of climate change, we are committed to reducing our CO2e emissions in our own operations and our value chain, increasing the share of renewable/low-carbon electricity, improving energy efficiency and not investing in the expansion of fossil fuels or financing climate-damaging lobbying (see Environmental Policy and MM Supplier Code of Conduct). This relates to the significant impacts, risks and opportunities defined as material with regard to energy and climate protection and explicitly includes the areas of climate change mitigation, energy efficiency and the expansion of renewable energy. Adaptation to climate change is seen particularly in connection with the procurement of forest-related products. In this context, the goal is to achieve net-zero emissions by 2050, which is supported by targets for electricity from renewable energy sources and commitments to reduce energy consumption, as well as our internal carbon pricing system and the avoidance of investments in the expansion of fossil fuels (see Environmental Policy). Progress is continuously monitored by a monthly monitoring of energy consumption and associated Greenhouse Gas (GHG) emissions. The Management Board and Supervisory Board are informed of the developments on a monthly basis."
"The MM Group employs an AI-based supply chain risk monitoring tool to assess potential social and environmental risks and incidents. At the core of this tool is a 360° risk-scoring model that evaluates business partners based on industry and regional risks, previous incidents and annual spending. Suppliers are categorised accordingly, and institutionalised assessments will be conducted from 2025 onward. In case of an incident, MM Group immediately contacts the suppliers affected and takes appropriate action based on the severity of the issue. [...] The MM Group operates the MM Integrity Line, a whistleblower system that is actively promoted through various channels, including office screens, the intranet, and as a key component of the onboarding process. For external stakeholders, the MM Integrity Line is an integral part of the MM Code of Conduct. To institutionalise and emphasise whistleblower protection, a dedicated guideline was introduced to provide clear and well-defined information on reporting processes and whistleblower protection. These measures help mitigate risks related to the potential malfunction or lack of awareness of the MM Integrity Line. The MM Group encourages all employees and stakeholders to report misconduct through this system. The Legal department is responsible for its conceptual implementation, while the Internal Audit department handles initial responses and follow-up measures, involving local whistleblower teams as required by law. Regular coordination between Internal Audit, the Legal department and local whistleblower teams ensures a streamlined investigation process.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]The MM Group has ongoing mechanisms in place to ensure that engagement activities support its strategy regarding climate mitigation. MM´s commitment to climate mitigation is managed by its senior executives and is applied
by all employees. The Management Board is directly involved in influencing engagament activities in order to ensure
that they are consistent with the overall strategy regarding climate change. Another mechanism is the involvement of internal experts (e.g. Head of Group Sustainability) as well as external consultants to prove consistency with the comapny´s strategy. The Group Sustainability team of MM is also regularily involved in working groups and committees of various activities (e.g. working groups of CEPI and EUROPEN). Information regarding climate mitigation and the company´s strategy are available to the entire organisation. Therefore, we use various internal communication channels. There is also a specific internal training on climate change and sustainable development in general and specifically for MM´s strategy in place. With that mechanism, we ensure awareness among all our employees for any activies that are planned with regards to climate change. For any planned activities and/or communications on climate-related topics, we have established an internal approval process which is in the lead of the Group Sustainability and Marketing team.