Targets initiative (SBTi). We have set our near-term In 2023, we focused on reducing Scope 3 emissions, target to signi昀椀cantly reduce about 30 percent in our particularly regarding the transportation aspects We will reduce Scope 1, 2 and 3 emissions by 2032 and we aim to of our global supply chain. In North America, we our CO emissions reach net zero by 2050. optimized our logistics network, reducing delivery 2 distances and achieving an approximate 3000 ton in line with the To bring the SBTi to life, we estimate an investment of CO22 reduction. Additionally, we have the 昀椀rst trucking triple-digit million Swiss francs will be needed over the routes being converted to more eco-friendly HVO Science Based next decade to incorporate systematic changes into (hydrogenated vegetable oil), which contributes to our own business processes and to further encourage the CO savings in the logistics area. In the large our partners to develop in this regard. Decreasing 22 Target initiative Scope 3 area of purchased goods and services, we emissions along the entire value chain will support our made further advancements in data transparency and aim to reach customers’ sustainability initiatives and enable us to and are in preparation for raw material changes to contribute to the much-needed transformation of our more sustainable variants, which will take effect in net zero by 2050. industry. the following years. As illustrated in the table on page 19, the largest portion of our CO emissions originates from the 22 category of purchased goods and services (69 percent), speci昀椀cally the materials directly integrated into our Commitment to the Science Based products. During the reporting year, the organizational Targets initiative (SBTi) units responsible for product-related emissions were engaged in developing their respective CO22 reduction Achieving carbon neutrality in Scope 1, 2 and in plans. Furthermore, individual CO22 targets were business travel by 2023 marks an important initial developed in all market organizations. The in-depth milestone in our efforts to combat climate change. analysis uncovered opportunities for leveraging and We nonetheless recognize the vital importance of achieving CO22 savings, resulting in the implementation addressing emissions beyond our own operations. To of initial measures, such as the sourcing of greener align with the ambitious goals outlined in the 2015 Paris materials. Furthermore, we have established in-house Agreement, emissions must be reduced across the processes and tools to incorporate CO22 reduction entire value chain, encompassing Scopes 1, 2 and 3. targets into our product development practices. The We are committed to contributing to this extremely initial pilot projects have been successfully completed ambitious endeavor and have therefore pledged to and we are in the process of rolling out these practices establish targets in accordance with the Science Based company-wide.