Sustainability Notes

The sustainability notes provide comprehensive information on Belimo's environmental, social, and governance (ESG) performance indicators disclosed in this report. They include definitions, applied methodologies, assumptions and, if applicable, restatements.

We aim to maintain consistency in the definition and calculation of sustainability metrics over time. However, adjustments may occur to better align with strategic objectives or evolving industry standards. In such cases, or when material prior-year errors are identified, comparative figures will be restated. Restatement thresholds are assessed individually, considering the overall impact on the report. Any significant restatements are explained in the respective sustainability sections.

A base year recalculation is required when changes in GHG accounting methodology, divestments, acquisitions, or corrections of prior calculation errors result in a material deviation of at least 5% in reported emissions. For the current reporting period 2025, no base year recalculation was necessary.

The sustainability reporting period aligns with the financial reporting period, covering January 1 to December 31, 2025 for BELIMO Holding AG and all subsidiaries. Belimo discloses its non-financial information on sustainability annually.

Double Materiality Assessment

Background

In 2024, Belimo updated its materiality assessment methodology in line with the requirements of the European Union's CSRD and ESRS. The double materiality assessment (DMA) conducted for the first time helped to define the sustainability topics that are material for Belimo’s business and its stakeholders.

The DMA framework recognizes that materiality encompasses both financial (outside-in) risks and opportunities and environmental and social (inside-out) impacts. While financial materiality considers risks and opportunities that may affect the Company financially, impact materiality focuses on how Belimo’s activities affect the environment and society. The assessment encompasses Belimo's operations and its entire value chain. Stakeholder engagement was integral to the process, ensuring a balanced approach.

To ensure alignment between the sustainability strategy, reporting standards and stakeholder and regulatory expectations, Belimo will regularly review its double materiality assessment and the list of material sustainability topics. The applicability is revised on a regular basis. While not all material topics are addressed with the same level of maturity, Belimo is actively advancing on its sustainability program to systematically address these topics over time.

Stakeholder Engagement

Internal and external stakeholders were involved in the process of quantifying and scoring the impacts, risks, and opportunities. The senior management (Group Executive Committee and the Extended Executive Committee) was interviewed and highlighted important topics for the longlist. Internal workshops and external interviews were conducted to quantify the potential material issues and to assess the impacts, risks and opportunities. The internal workshops were held across different functions, business lines, and hierarchy levels. Interviews with external stakeholders included customers, suppliers, the financial community, academia, and associations. The senior management approved the outcome of the DMA as the 13 key sustainability topics.

Methodology

The following methodology for assessing double materiality was applied:

1. Business model analysis, desk research and value chain analysis to derive a longlist of potentially material topics (approx. 450 topics);
2. Shortening longlist to shortlist of potentially material topics (22 topics);
3. Identification of impacts, risks, and opportunities (IROs);
4. Validation and evaluation of potentially relevant material topics from an inside-out perspective (impact materiality) and outside-in perspective (financial materiality) through stakeholder engagement activities, including external interviews and internal business impact workshops;
5. Threshold setting to define which topics should be considered as material (13 topics);
6. Validation and approval of material topics by senior management.

Financial Risks and Opportunities

Financial risks and opportunities were assessed based on likelihood and (potential) magnitude of financial risk or opportunity.

Impacts

Impacts may be actual or potential, negative or positive, short-, medium-, or long-term, intended or unintended, and reversible or irreversible. "Actual" versus "potential" impact relates to the distinction between the impacts that have already occurred (actual impacts) versus the impacts that could occur under certain conditions or future scenarios (potential impacts). Belimo assessed scale, scope, irremediability, and likelihood of impacts. Scope, scale and irremediability of actual and potential negative impacts define the severity of an impact. For positive impacts, irremediability and severity is inherently not applicable.

Threshold Setting

The materiality threshold for actual positive impacts was determined based on the combined scores for scale and scope. For potential positive impacts, the threshold was set according to the likelihood of occurrence, in addition to the combined scale and scope scores.

The materiality threshold for actual negative impacts was set on the severity score (sum of scale, scope, irremediability). For potential negative impacts, the threshold was set according to the likelihood of occurrence, in addition to the severity scoring.

The materiality thresholds for financial risks and opportunities were set on the likelihood of occurrence and the magnitude of financial effects.

Overview of material topics to be checked against Annual Report 2024

Climate Change

Establishing a solid methodology for our Scope 1, 2, and 3 GHG emission accounting helps Belimo improve sustainability transparency, identify carbon hotspots, and reduce emissions along the value chain. This document summarizes the methodology applied by Belimo to quantifying and annually reporting Scope 1, 2, and 3 emissions.

Methodology

The methodology is aligned with the Greenhouse Gas Protocol (GHGP) and the net zero guidelines IWA 42:2022 by the International Organization for Standardization (ISO; IWA42:2022). Belimo accounts for its GHG emissions in accordance with the Green­house Gas Protocol: A Corporate Accounting and Reporting Standard (2004) and the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2011) (Corporate Standard | GHG Protocol; Corporate Value Chain (Scope 3) Standard | GHG Protocol).

Operational control approach (GRI 305-1 f, GRI 305-2 f)

An operational control approach is applied for the GHG emission calculation. Consequently, this undertaking is accountable for the emissions over which the organization has operational control. Scope 1 and 2 emissions cover all production, logistics and customization sites. Scope 3 emissions cover all entities in the group financial statement, except for Scope 3 Category 5, which covers all production, logistics and customization sites. Following this approach, the Company can ensure that more than 90% of the resource consumption and associated emissions are covered.

Reporting period

The GHG accounting is aligned with the financial reporting period of Belimo from January 1 to December 31. For Scope 3 Cat­egory 4 and 9 emissions, actual data from January to October is used and November / December emissions are estimated based on the YTD data available. The reason for this is the availability of data and extensive calculation methodology using the harmonized Global Logistics Emissions Council (GLEC) framework. The GLEC provides a standardized framework for reporting logistics emissions.

Market-based Scope 2 emissions (GRI 305-2 b)

Belimo procures Renewable Energy Certificates (RECs) to account for renewable electricity consumption. RECs adhere to the specific standards that ensure integrity and reliability of reported market-based emissions. It is an exclusive claim (no double-counting). The RECs are based on actual generation data from renewable energy sources (hydropower and wind). The RECs are generated within the same market and geographic boundary and reporting period as the electricity consumption took place.

For Scope 1 and 2 climate targets, the market-based Scope 2 emissions are considered.

CO₂ equivalents (GRI 305-1 b, GRI 305-2 c, GRI 305-3 b)

GHG emissions are reported in tCO₂e and include all relevant gases (CO₂, CH4, N2O, HFCs, PFCs, SF6, NF3, or all.)

Rationale for base year selection of climate targets (GRI 305-1 d, GRI 305-2 d, GRI 305-3 e)

For reasons of representativeness, 2022 was selected as the base year for both the Scope 1 and 2 as well as the Scope 3 climate targets.

Material emission categories (GRI 305-1 a, GRI 305-2 a, GRI 305-5 a, d)

The Company reports on Scope 1 and Scope 2 market-based and location-based emissions. The material Scope 3 categories cover over 90% of Scope 3 emissions (a requirement for climate targets in line with SBTi). The comprehensive GHG balance includes the following material Scope 3 categories:

Category 1: Purchased goods and services
Category 4: Upstream transport and distribution
Category 5: Waste generated in operations
Category 6: Business travel
Category 7: Employee commuting
Category 11: Use of sold products
Category 12: End-of-Life treatment of sold products

Coverage of total scope 1–3 emissions

• Very high: > 80%
• High: > 10%–80%
• Medium: 1–10%
• Low: < 1%

Degree of control over scope 1–3 category

• High: Belimo has a large influence on emissions
• Medium: Belimo is limited to control emissions
• Low: Belimo is strongly limited to control emissions

Calculation Scope 3 Category 1

Belimo relies on an asset-light business model, outsourcing 88% of production costs to maintain flexibility and ensure the timely delivery of high-quality field services. The calculation of Scope 3 Category 1 upstream emissions of purchased goods and services (cradle-to-gate) is based on a material classification system and weight-based emission factor (EF) application. Purchased articles or finished products in the procurement report are allocated to main material and sub-material categories. The net weight of the article / finished product is required and taken from the procurement report. For each sub-material category, the EFs (kg CO₂e / kg) are extracted from the lifecycle assessment (LCA) database ecoinvent. The latest EFs available were applied. When a specific sub-material category was unavailable in the LCA database, feasible proxies were chosen. Belimo is working with its suppliers to obtain supplier-specific data, but this is not taken into account in the methodology applied. Experts mapped sub-material categories, articles, and EFs to ensure data accuracy. For the emission calculation, the sub-material EFs in kg CO2e / kg are multiplied by the purchased sub-material quantities in kg.

Calculation Scope 3 Category 4

The scope of upstream transportation extends to shipments of material procured by all Belimo entities from external suppliers and delivered to Belimo Logistics and Customizing (L&C) locations or sub-contracted manufacturing locations. Also included in the scope are shipments sent between two Belimo locations e.g. Production location (e.g. Hinwil) to L&C locations and/or subsidiaries. Furthermore, outbound transportation and distribution services purchased by Belimo are included in category 4 meaning all finished goods customer shipments originating from a Belimo location for which Belimo is organizing and paying the transportation cost. Also included in scope are return shipments sent at Belimo’s cost from customers. Excluded are any orders whereby a customer collects or arranges transportation themselves (accounting in Scope 3 category 9). Scope 3 Category 4 emissions from upstream transportation and distribution are calculated based on the total weight of shipments. Belimo follows the GLEC framework v3.0, which is ISO14083 compliant. The GLEC framework is based on the “well-to-wheel” (WTW) concept. The calculation was performed by ecotransit (certified).

Calculation Scope 3 Category 5

The emission calculation related to the waste generated in production / logistics & customization (P/L&C) is based on the waste management input data obtained from the sustainability reporting system. Weight-based EFs are applied. Waste per waste type and treatment type is collected at the P/L&C level. Waste types from hazardous and non-hazardous sources are reported. The EFs per waste type and waste treatment are extracted from the LCA database or Defra. The weight of waste per waste type and waste treatment is multiplied by the corresponding EF (kg CO₂e / kg).

Calculation Scope 3 Category 6

The entities in the calculation scope cover more than 80% of the total expenditure for Belimo’s business travel and include Switzerland, the United States, Hong Kong, China, and Canada. For emissions generated through employee business travel by air, rail, and road, a hybrid (distance- and spend-based) approach is applied. Business air travel is based on flight reports from external providers, and the calculation is performed by myclimate following a distance-based (passenger kilometer) approach. EFs are applied by myclimate based on flight class and distance characteristics. Business travel by train, car, and taxi is based on expenditure data following a spend-based approach.

Calculation Scope 3 Category 7

The GHG emissions associated with employee commuting are estimated based on headcounts (HCs) and follow a distance-based approach. Belimo has run an employee survey on commuting behavior for Hinwil (HQ) and all Asia Pacific entities. The survey outcome was extrapolated based on the HC reported in the corporate reporting system. Americas and EMEA entities performed a separate assessment of the commuting distance per employee (HC) and assumed all employees commute to work by car. The percentage of time in home offices was estimated based on job profile. Distance-based EFs by Defra are applied. In line with the requirements of WBSCD sector guidance, 440 trips to work per reporting year (2 ways per day * 220 days) and the use of diesel as fuel are assumed.

Calculation Scope 3 Category 11

The emissions related to the use-phase of Belimo’s sold products are driven by the energy consumption over the products’ lifetime and calculated based on technical performance data available for products sold. Technical performance data on the product type level includes energy consumption in operation and in standby mode, cycle running time (actuators), and number of cycles per day (actuators). Based on those parameters and the assumption of a 15-year average lifetime per product, the total lifetime energy consumption (kWh) of sold product types per country is derived. EFs from IEA in kg CO₂e / kWh are applied at the country level. The Scope 3 Category 11 calculation is based on the technical product specifications that are defined, maintained and verified by Belimo. Supplier information is not required.

Calculation Scope 3 Category 12

Emissions from end-of-life treatment of sold products are calculated using a weight approach. Statistics published by the OECD on waste treatment scenarios in different geographical regions (EMEA, AM, and APAC) are applied. Each product category is allocated to its waste type (how the entire product is defined as waste by EWC). Statistics on waste treatment scenarios (incineration, recycling, landfill in %) are provided by the OECD and extracted per waste type and geographical region (EMEA, AM, and APAC). Relevant EFs in kg CO₂e / kg waste are taken from Defra and ecoinvent and applied at the level of products sold per region.

Rationale for omissions of Scope 3 emissions categories (GRI 303-5 a,d)

Emission factors (GRI 305-1 e, GRI 305-2 e. GRI 305-3 f)

The applied methodology ensures that up-to-date EFs from internationally recognized sources are used.

Quality of GHG inventory

Energy Management

Conversion factors (GRI 302-1 f, g)

The conversion factors applied to any of the indicators disclosed in the Energy Management chapter are indicated, along with the source of these factors:

Our Employees

Diversity (GRI 405-1)

Definition Management Level: When disclosing diversity indicators, a distinction is made between three employee categories: Executive Committee, Employee with management function and Employee without management function.

Employees (GRI 2-7)

Definition Employee: An employee is an individual who is in an employment relationship with the organization according to national law or practice.

Definition Contract and Employment Types: Definitions of permanent, temporary, full-time, and part-time employees vary across countries where the Group operates. To calculate country-level data, the Group applied the respective national legal definitions. These figures were then aggregated to determine total numbers, without standardizing for cross-country differences.

Temporary employees are primarily engaged to manage production peaks or support specific temporary projects. In some regions and functions, it is standard practice to offer a temporary or a temporary agency contract before extending an offer of permanent employment at Belimo.

Unadjusted Gender Pay Gap (GRI 405-2)

Definition Unadjusted: The unadjusted gender pay gap is the percentage difference in average remuneration between women and men, based on men’s average pay, without considering factors such as job role, experience, tenure, performance, or other characteristics that may influence compensation. It is calculated by comparing the average earnings of all female employees to those of all male employees across the organization.

To calculate the Unadjusted Pay Gap, the following methodology was applied:

• Remuneration Basis: The calculation includes basic salary and additional pay components such as variable compensation for the performance year 2025 (bonuses, incentives, awards), allowances of all types, and any other comparable remuneration components. For variable compensation elements payable after the reporting year, accrued amounts were considered.
• Annualization and FTE Adjustment: All amounts were annualized and converted to full-time equivalent values to ensure comparability across employees.
• Exclusions: Payments for overtime, benefits, and pension-related contributions were excluded from the calculation. Employees hired during the reporting year who were not eligible for bonus payments (typically those starting on or after October 1) were fully excluded.

Definition Employee Categories: When disclosing the unadjusted gender pay gap, a distinction is made between the three employee categories senior management, middle management and staff.

• Senior Management: Senior Management shapes long-term strategies and ensures business sustainability, balancing vision with execution while focusing on corporate governance and global impact. They lead major business functions and initiatives with an emphasis on strategy and growth, while also contributing expert knowledge and insights to influence critical decisions. They navigate complex organizational challenges, drive high-impact initiatives, and provide subject matter expertise to shape long-term outcomes across the organization.
• Middle Management: Middle management translates organizational strategy into operational plans and drives results within their area of responsibility, leading teams, departments, or smaller regional or functional units. They combine deep expertise with leadership, setting strategy, defining objectives, and providing directional guidance while also contributing hands-on knowledge to complex problems, processes, or Company-wide initiatives.
• Staff: Staff deliver operational results and contribute to organizational objectives, applying their expertise and skills to ensure quality, reliability, and efficiency. They execute tasks and initiatives with precision, support processes, and collaborate effectively across teams to solve problems and meet business or customer needs. By applying judgment and knowledge within their area of responsibility, they drive consistent outcomes, support continuous improvement, and contribute to the success of their teams and the broader organization.

To ensure equal pay for equal work, Belimo consistently monitors its remuneration system:

• Salaries and bonus payments are benchmarked against market standards and adjusted as needed.
• The internal remuneration system is reviewed for potential gender pay gaps, particularly during the annual salary review process.
• Equal pay practices for the Swiss entities are evaluated using the official “Logib” tool of the Swiss Confederation.

Occupational Health, Safety & Wellbeing

Injury Disclosures

Definition Work-related Injuries: Injuries that occurred due to work-related activities, regardless of severity. Injuries must be classified as work-related if they result from events or exposures in the work environment. Includes all types of injuries (e.g., cuts, fractures, burns) that require medical attention or result in lost work time.

Definition High-consequence Work-related Injuries: These are injuries that result in permanent disability, excluding fatality. A high-consequence work-related injury is one from which a worker cannot recover to their pre-injury health status within six months. This results in long-term, permanent or severe effects on the worker's physical condition. It excludes minor injuries and focuses on those with long-term impact.

Definition Lost-time Injuries: A lost-time injury results in absence from work for at least one day.

Main Type of Work-related Injuries:

• Fractures and broken bones – often resulting from falls, collisions, or heavy machinery.
• Cuts and lacerations – caused by sharp tools, equipment, or materials.
• Burns – due to exposure to heat, chemicals, or electricity.
• Sprains and strains – commonly from lifting, repetitive motion, or slips.
• Concussions or head injuries – from falling objects or accidents.
• Crush injuries – involving heavy equipment or materials.
• Hearing loss – from prolonged exposure to high noise levels.
• Respiratory issues – due to inhalation of hazardous substances.
• Eye injuries – from chemicals, particles, or radiation.
• Occupational diseases – such as skin conditions or musculoskeletal disorders.

Definition Recordable Injury Rate: The overall injury rate is calculated based on recordable cases relative to hours worked, ensuring transparency in performance monitoring. Each incident, where merited, was thoroughly investigated to identify root causes and implement corrective actions. Our proactive approach includes ergonomic improvements, enhanced machine guarding, targeted safety training, and continuous engagement with employees to strengthen hazard awareness and prevention measures.

Definition Lost-time Injury Frequency Rate: The LTIFR is calculated based on number of lost-time injuries per 200 000 hours worked. All FTEs working at P/L&C sites are covered in the calculation.

Hours worked and incidents are derived from a questionnaire completed by our subsidiaries, and no estimates were used; only confirmed cases are included. Rates are normalized per 200 000 hours worked to ensure comparability across reporting periods.