units. We are also improving the SRM by using more sustainable sourcing and the circular economy. Global We have successfully obtained replies from almost detailed sustainability information on our suppliers, implementation of these practices in our development all our relevant suppliers, the vast majority of whom collected via the IntegrityNext portal. Exemplary processes continues and is driven by a dedicated either declared that 3TG minerals and/or cobalt are evaluation criteria include information on the process manager. not contained in the products they supply to us or that supplier’s energy management and carbon footprint Circularity: p. 20 any 3TG minerals and/or cobalt have been properly management. sourced, as evidenced by an attached CMRT and/ or EMRT. Furthermore, we have established a clear Step 3 Raw materials due diligence & process in which a supplier is contacted directly supply chain reliability through the Sourcing Excellence Team if they do not After evaluating our entire supplier portfolio, the third respond to our CMRT and EMRT requests, or if the step focuses on sustainability initiatives for individual We are aware that we currently process various requested CMRT and EMRT have not been completed material groups. materials in our products which may originate from correctly and fully. minerals sourced from con昀氀ict-affected and high-risk • During the reporting year, we deepened the areas (CAHRAs). At present, there is no equivalent Beyond the considerations of raw materials due cooperation with BASF SE, one of our key suppliers substitute for these minerals, the extraction of which diligence, another issue of growing concern is supply for engineering plastics. Engineering plastics, like may help 昀椀nance armed con昀氀icts or lead to political chain reliability. Unhindered and reliable access to polyamides, are a key pillar in our raw material instability, insecurity, widespread violence and certain raw materials is a growing concern across the portfolio and fully transparent regarding their product prevalent human rights violations in these areas. globe, as evidenced by the recent proposal for an carbon footprints (PCF). Together with our business EU Critical Raw Materials (CRM) Act, and by similar partner and based on the current PCF values, we are To mitigate associated risks, we ask our suppliers initiatives across G20 member states. As part of the de昀椀ning a road map to convert our entire engineering about the origins of their materials, and we require proposal for the EU CRM Act, a list of 36 strategic plastics portfolio into a more circular and sustainable them to critically assess their own supply chains, CRMs was published which highlighted materials one. The road map contains topics related to raw ensuring that no materials derived from regulated having a high supply risk and high technological materials, as well as improvements in production con昀氀ict minerals are present in our products. By using importance. From this list, cobalt, nickel, tantalum and processes. the Con昀氀ict Minerals Reporting Template (CMRT), tungsten are worth highlighting due to their relevance developed and maintained by the Responsible Minerals to current R&D activities mentioned below. Steps 4 and 5 Initiative (RMI), we gather information throughout the supply chain regarding the countries of origin and Our long-term objective remains to replace all materials In the fourth step, we have started to systematically the smelters and re昀椀ners utilized for processing tin, potentially linked to CAHRAs with less problematic expand our sustainable sourcing practices to include tantalum, tungsten and gold (commonly abbreviated ones and to reduce the use of CRMs as part of larger- our sub-suppliers, including the monitoring of their as “3TG”). In addition, by using the Extended Minerals scale efforts to align our product designs with our respective performance in our sustainability scores Reporting Template (EMRT) from the RMI, we also gain principles of sustainability. Within this scope, we would and awarding practices. Finally, the 昀椀fth step applies clarity on our cobalt supply chain. Both the CMRT and like to highlight four current R&D activities. model-driven sustainability engineering practices EMRT standards are designed to be aligned with the to in昀氀uence our product design and development OECD Due Diligence Guidance for Responsible Supply process, further promoting the integration of Chains of Minerals from Con昀氀ict-Affected and High- Risk Areas.