Organizational anchoring Step 1 to signi昀椀cantly reduce the number of incomplete and/ or erroneous statements by 2024, and to continue Our Sourcing Excellence Team is responsible for In the 昀椀rst step, we focus on creating a high degree raising awareness of raw materials due diligence supplier sustainability for direct materials. A dedicated of transparency concerning our business partners. across our supply chain. For more information on global process manager is in place to coordinate The goal is to track and manage all product-related risk mitigation measures on minerals from con昀氀ict- sustainability in our supply chain and product design. compliance certi昀椀cates and declarations transparently affected and high-risk areas, refer to the sub-chapter This enables an effective and aligned global approach (e.g. RoHS and REACH). As a result, all company- “Raw materials due diligence & supply chain for sustainable sourcing and development activities. related environmental certi昀椀cates, the signed Code reliability” below. of Conduct for Suppliers, the results of our supplier The Global Procurement Indirect Materials function audits, and external ratings and validated supplier data Step 2 manages the topic of supplier sustainability for from, among others, Dun & Bradstreet, EcoVadis and indirect materials. This function is responsible for IntegrityNext, are on a single platform. The second step considers the sustainability ensuring that processes for supplier selection and assessments and the related key 昀椀gures of our supplier relationship management are in place and • We are aware that we currently process various suppliers in all procurement processes. Sustainability adhered to. Procurement Indirect Materials drives, materials in our products which may originate from assessments, such as those from EcoVadis and or is closely involved in, successful projects that are minerals sourced from con昀氀ict-affected and high- IntegrityNext, are part of a bonus-malus system, at the top of the sustainability agenda for Hilti, such risk areas. To mitigate associated risks, we ask which gives advantages to suppliers in the awarding as global renewable energy sourcing, travel demand our suppliers about the origins of their materials, process if they have proven to be more sustainable. management, offsetting projects for CO22 compensation, and we require them to critically assess their own The assessments deploy a structured and uniform shifting to lower emission vehicles and many more. supply chains, ensuring that no materials derived manner to compare suppliers more transparently and CO : p. 13; Circularity: p. 20 from regulated con昀氀ict minerals are present in our comprehensively. Sustainability is a central criterion in 22 products. In 2023, we instigated a more in-depth the bonus-malus system. review process for the replies provided by our Business Ethics: p. 56 2023 implementation examples suppliers. This was to ensure that the replies were complete and compliant with the standards set by • In 2021, we started to monitor the performance We follow a 昀椀ve-step strategy that gradually raises the Responsible Minerals Initiative. It also served and recognize the efforts of our supply partners in our activities to a higher sustainability level. With the to identify the most concerning suppliers and to one business unit via an internally created Supplier help of this strategy, we were able to maintain our put them at the top of the follow-up list. Within Recognition Model (SRM). In 2022 we began sustainable procurement sub-score, in the EcoVadis this scope, we set up an internal risk management awarding the top performing suppliers in four rating, of 70 out of 100 possible points in 2023, which process to contact relevant suppliers who either different categories, sustainability being one of them. is signi昀椀cantly above the average. did not reply to our inquiries or who provided In the current reporting year, we started to roll out Sustainability Management: p. 4 incomplete and/or erroneous information. We intend the SRM evaluation concept to additional business