VZ Holding AG

The Board of Directors reviews the achievement of the net zero target based on VZ Group's greenhouse gas balance. We calculated the balance for 2024 using the specialised carbon accounting software Ecospeed and had it checked for plausibility by Swiss Climate. It includes the development of direct emissions (Scope 1), indirect emissions (Scope 2) and indirect upstream and downstream emissions (Scope 3). In 2024, we also calculated and reported financed emissions (Scope 3.15) for the first time. [...] The standing Risk, Sustainability and Audit Committee (RSAC) of the Board of Directors supports the Board of Directors of VZ Holding Ltd in reporting on climate issues. It is responsible for reviewing and recommending the sustainability strategy and developing the transition plan. The tasks of the RSAC also include assessing the functioning and effectiveness of the internal control system (ICS) and risk management, in particular with regard to climate-related risks, the integration of climate issues into existing processes and the monitoring of progress towards achieving climate targets. [...] VZ Group's Executive Board is responsible for the operational implementation of the Board of Directors' strategic guidelines on sustainability issues. The Executive Board is supported by the Sustainability Committee, which includes representatives from various business units. A member of the Executive Board is responsible for this committee. The duties of the Sustainability Committee include advising and supporting the Executive Board in implementing VZ Group's sustainability strategy and transition plan. It ensures that the framework conditions established by the Board of Directors are taken into account and that sustainability and climate issues are integrated into existing processes. In addition, the committee monitors the ongoing implementation of the measures defined in the transition plan and monitors relevant regulatory developments in the area of sustainability. [...] The RSAC usually meets four times each year. At least once a year, the Head of the Sustainability Committee informs the RSAC on developments in ­sustainability and climate issues. The RSAC is informed about the progress of the transition plan once a year as part of sustainability reporting. The Chairperson of the RSAC reports on this to the Board of Directors of VZ Holding Ltd at its next meeting. The Chairperson of the RSAC informs the Chairperson of the Board of Directors of VZ Holding Ltd immediately of any important developments and findings with regard to climate-related risks.

As of 2023, the Board of Directors' Risk, Sustainability & Audit Committee is also responsible for ESG. [...] A member of the Group Executive Board is now responsible for sustainability. [...] A Sustainability Committee with members from different business areas deals with current topics on an ongoing basis. [...] On the Board of Directors, the Risk, Sustainability & Audit Committee will assume responsibility for all sustainability issues from 2023. In the reporting year, the Board of Directors appointed Manuel Rütsche as the Executive Board's sustainability officer. He has been a member of VZ Group's Executive Board since 2018 and is responsible for the group's asset management. In addition, a Sustainability Committee was formed, which is chaired by Manuel Rütsche and includes employees from Legal & Compliance and other business units. This committee meets at least once a month.

The Risk, Sustainability & Audit Committee supports the Board of Directors, among other things, in complying with legal and regulatory requirements and in overseeing risk management. With the help of the internal audit department, it reviews the effectiveness of the control systems and processes and informs the Board of Directors. [...] Internal and external auditors carry out annual audits of all VZ Group companies based on a comprehensive risk assessment and the requirements of the supervisory authorities as well as of the Risk, Sustainability & Audit Committee. Compliance requirements are audited annually. The auditors inform the Risk, Sustainability & Audit Committee and the Executive Board in writing about the results of their audits. If necessary, the appropriate measures are initiated immediately.