Sustainability Report 2025

B K W GR O U P

Sustainability Report

W e c r e a t e s p a c e s f o r l ife .

Our contribution

Our focus is on climate, nature, and people.

We use a holistic approach to address the energy transition and offer solutions along the entire energy, infrastructure, and building value chain.

We create spaces for life.

Title page

Johanna Nowak, site manager at LTB Leitungsbau GmbH, BKW Infra Services, at the construction site of the East Coast Line - one of the most important infrastructure projects currently underway in Germany.

‌Table of Contents‌

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I N T R O D U C T I ON

We Anchor Sustainability in Our Activities

In 2025, BKW worked on pursuing strategic sustainability-related goals in

our "Solutions 2030" strategy. We have achieved our first successes:

clear responsibilities, integration into business processes, and last but not least, internal training.

Dear readers of the Sustainability Report,

In 2024 we anchored sustainability as a core strategic element of our "Solutions 2030" strategy at BKW. In 2025, we worked on implementing the BKW sustainability framework with its five fronts of climate, energy, nature, people, and governance. In spring 2025, the executive committee also defined the responsibilities for all fronts and set out the measures

and next milestones. Implementation work is now underway in the support functions and business areas. In order to specifically promote the topic of people, BKW has adopted a new HR strategy. And, of course, we want to regularly review how far we have already come in terms of sustainability. An annual progress measurement will be introduced for this purpose in spring 2026. As part of the further development of our management and reporting, selected quantitative key performance indicators (KPIs) were audited externally for the first time in 2025.

The Group-wide management and governance of sustainability is based on the Group Sustainability Management Directive, which was adopted by the BKW Group Executive Committee in October 2025. However, a document alone does not create sustainability. It is important that all BKW employees understand how we want to tackle the issue

together. What is key for me is to systematically integrate the principle of sustainability set out

in the directive into the relevant business processes. This applies equally to the development of new products and the procurement of materials and services. In procurement, the Supplier Code of Conduct was also updated this year. Sustainability is therefore not just a management task at the highest level, but a shared objective that is to be practiced throughout the entire company and implemented in day-to-day work.

Let me pick out one more aspect of our work for greater sustainability at BKW that I was particularly pleased with last year: I was able to persuade the entire BKW Board of Directors to invest two half-days in their own further training in sustainability. The Board of Directors called in external and internal experts for this purpose. We gained valuable insights and learned a lot.

Kind regards,

Roger Baillod

Chairman of the Board of Directors

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"Sustainability is not just a management task at the highest level, but a shared objective that is to be practiced throughout the entire company."

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At a Glance: Sustainability at BKW

BKW sees sustainability as a core element of its strategy. To this end, it is pursuing ambitious sustainability-related goals on the climate, energy, nature, people, and governance fronts. The latter forms the foundation for all sustainability-related activities.

On the climate front, BKW is aiming for net-zero emissions in Scopes 1 and 2 as a Group by 2040 and halving greenhouse gas (GHG) intensity by 2030 compared to 2022. To this end, it is looking into phasing out coal early and electrifying its fleet of over 3,500 vehicles by 2030. In terms of emissions from the upstream and downstream value chain (Scope 3), BKW aims to achieve net zero by 2050.

On the energy front, BKW is focusing on investments in renewable and efficient energy infrastructures. It aims to increase the installed capacity from renewable energies from 2.7 gigawatts (GW) in 2024 to 3.4 GW by 2030.

On the nature front, BKW aims to strengthen its commitment to natural ecosystems and biodiversity, including through increasingly nature-oriented management of its land.

The people front stands for the importance of BKW stakeholders. The more than 12,000 employees ✓ are BKW's greatest asset, and their health and safety are the top priority. BKW therefore invests in occupational safety, attractive development opportunities, appreciative leadership, equal opportunity, and flexible work conditions.

More information at: bkw.ch/sustainability

Climate

Energy

People

Nature

• Audited (limited assurance) by PwC in 2025. The audit report can be found in the section Independent Auditor's Report.

‌137

General Information

Arzberg battery storage

Laura Wilkat, Project Manager, and Thomas Braun, Technical Manager, both BKW Storage Solutions GmbH, BKW Infra Services.

TABLE OF CONTENT S

‌Basis for Preparation

ESRS 2 BP-1 ESRS 2 BP-2

ABOUT THIS REPORT

The scope of consolidation for sustainability reporting corresponds to that of financial reporting. Unless specified otherwise in an individual case, all information and figures relate to the entire BKW Group and the period from January 1, 2025, to December 31, 2025.

BKW's sustainability reporting meets the requirements of the Swiss Code of Obligations and complies with the requirements of the Ordinance on Climate Disclosures. An overview of the reported Swiss disclosure requirements can be found in the Appendix starting on page 250.

The report is not yet fully compliant with ESRS reporting. In terms of content and structure, however, already uses the ESRS as reference Framework, to which it will be subject in the future. As a reading aid, the report refers to the respective disclosure requirements of the ESRS 1, even if these have not yet been fully implemented in individual cases as of the end of 2025. A complete list of the reported ESRS disclosure requirements can be found in the Appendix starting on page 246.

The contents of the sustainability report are based on a double materiality analysis, which BKW carried out in 2024 at the topic level based on ESRS requirements and the available implementation aids. BKW's overall value creation was analyzed, along with the upstream and downstream value chains. Where material, the impacts, risks, and opportunities in the value chain are addressed in the respective sections.

In some cases, disclosures in the sustainability report are subject to significant uncertainties with respect to outcomes. This applies in particular to forward-looking statements (for example in the context of climate scenarios) and quantifications of GHG emissions. These uncertainties result from incomplete scientific knowledge about the measurement of GHG and from the limited availability and quality of data, particularly from the upstream and downstream value chains.

BKW endeavors to reduce such uncertainties as far as possible.

In this fiscal year, a selection of numerical key performance indicators (KPIs) was subjected to an external audit for the first time. These KPIs are indicated by ✓ in the report. The audit report can be found on pages 254 to 259 Going forward, the company's sustainability reporting is to be prepared fully in accordance with the ESRS and audited externally. This would exempt all BKW Group companies based in EU Member States from their respective possible individual reporting obligations.

BKW is committed to the ten principles of the UN Global Compact (UNGC). As a participant, the company publishes a corresponding annual Communication on Progress ("COP") on the UNGC website.

More information at: globalcompact.ch

1. The report is based on the ESRS in accordance with Commission Delegated Regulation (EU) 2023/2772 dated July 31, 2023. The planned ESRS amendments are to be applied in the next reporting cycles once the corresponding EU delegated act has entered into force.

   ‌Sustainability Governance

   ESRS 2 GOV-1

SUSTAINABILITY MANAGEMENT AT BKW

The board of directors is the highest management body of the BKW Group. Its members contribute substantial knowledge and experience from a wide range of areas to the strategic management of the Group. The board of directors bears ultimate responsibility for the material sustainability impacts, risks, and opportunities associated with BKW's business activities for society and the environment and approves the sustainability-re-lated goals and the annual sustainability report.

Composition of the board of directors by

executive and non-executive members

0 ✓

8 ✓

8 ✓

0% ✓

100% ✓

100% ✓

Function Number Share in %

Executive members

Non-executive members

Total

Composition of the board of directors by gender

Gender distribution Number Share in %

The executive committee is responsible for ensuring that sustainability-related goals are developed and implemented. As an overall body, it makes strategic decisions on the management of sustainability-related impacts, risks, and opportunities for the entire BKW Group. The executive com-mittee's members are also responsible for implementing the sustainability requirements, goals, and targets in their respective business areas.

Further information on the composition, independence, and competencies of the board of directors and executive committee can be found in the Corporate Governance Report starting on page 276 and in the ESRS 2 GOV-2 section on page 140.

Group Sustainability, which is part of Group Strategy & Sustainability, supports the organization in Group-wide sustainability management as a support function. As a staff unit of the CEO, Group Sustainability coordinates BKW's sustainability activities, ensures their coherence with the Group strategy, and advises the board of directors and executive committee.

Depending on the topic, different support functions or business areas are responsible for dealing with sustainability-related impacts, risks, and opportunities. They report to the executive committee in accordance with their reporting lines (see the relevant section of the sustainability report).

• Audited (limited assurance) by PwC in 2025. The audit report can be found in the section Independent Auditor's Report.

SUSTAINABILITY TOPICS AT THE BOARD OF DIRECTORS AND EXECUTIVE COMMITTEE LEVEL

In 2024, the members of the executive committee completed additional training on topics such as sustainability trends and their relevance, sustainability management models, and strategic sustainability governance for BKW. In 2025, the board of directors and executive committee continued to address a wide range of sustainability topics. In addition, the members of the board of directors took part in two further trainings on sustainability with several external partners, which covered

topics including regulatory issues, sustainability governance, sustainable finance, sustainability as a value driver, sustainability communication, and the sustainability framework (see also

page 144).

The board of directors and executive committee addressed the following sustainability topics in 2025 (not exhaustive):

Sustainability topics addressed in Group committees

2024 Sustainability Report

2024 Integrity Report Group risk report

Sustainability framework, including Sustainability Implementation Planning Corporate Sustainability Performance Goal

HR strategy (including diversity, equity & inclusion strategy) Board of directors sustainability training

Board of directors sustainability governance

New or updated policies: Occupational Health and Safety, Human Resources, Cybersecurity & Data Privacy, and Human Rights policy

Directive Management Concept, including Group policies

New or updated Group directives: Sustainability Management, Human Rights, and Procurement Management

Supplier Code of Conduct

Internal/external compliance investigations and actions Corporate Sustainability Reporting Directive (CSRD) audit ESG regulatory requirements

Monthly compliance status report Occupational safety status report Group Security update

Board of Directors

Human Resources & Compensation Committee (HRCC)

Audit & Risk Committee (ARC)

Executive Committee

ESRS 2 GOV-3 ESRS E1 GOV-3

SUSTAINABILITY-RELATED COMPONENTS OF REMUNERATION

Since the 2024 fiscal year, BKW has linked progress in sustainability to its incentive and remuneration system. In the 2025 fiscal year, the corresponding performances were again comprehensively evaluated by an external rating agency. The progress of the 2025 rating results compared to 2024 serves as the baseline for measuring target achievement. The rating assesses corporate governance, social aspects, and the environment and compares these areas with the previous year's rating. As part of the environment area, direct climate, and energy-related factors, such as the development of GHG emissions, energy consumption, and climate change mitigation management, are also assessed. In addition, indirect climate and energy-related factors are included in various overarching assessment categories such as organizational anchoring, sustainability strategy, and responsible supply chains.

For the members of the executive committee, the achievement of sustainability-related targets determines 20% of the short-term incentive remuneration (STI). The targeted relative improvement was determined by the Human Resources

& Compensation Committee (HRCC) at the beginning of the year and assessed at the end of the year based on the external rating. Further information on the remuneration of the executive committee can be found on page 314 of the Annual Report (Remuneration Report).

In addition to the members of the executive committee, sustainability performance influences 25% of the variable remuneration component

for senior management and 50% of the performance bonus for other employees of BKW Energie AG 2 and BKW Management AG.

ESRS 2 GOV-4

STATEMENT ON DUE DILIGENCE

BKW's Executive Committee is aware of its responsibility for the health and safety of its employees and customers. This includes ensuring compliance with human rights and international labor standards along the company's value chain. BKW is also responsible for data security, combating corruption, and protecting natural resources within its sphere of influence. To fulfill the relevant due diligence obligations and legal requirements, different management systems and control mechanisms have been established depending on the topic and business segment.

BKW fulfills its obligations in connection with child labor and minerals and metals from conflict areas in accordance with the provisions of the Swiss Code of Obligations. The due

diligence and reporting obligations relating to conflict minerals and metals do not apply to BKW, as the Group neither imports nor processes these raw materials. With regard to child labor

in BKW's own business activities, there are no reasonable grounds to suspect violations of applicable regulations in BKW companies. However, certain categories of goods in BKW's upstream supply chain may contain raw materials with a potential risk with regard to child labor.

BKW has reviewed this risk, as well as other social and environmental risks in the supply chain, and obtained appropriate information from relevant suppliers. It also found no reasonable suspicion of child labor in the supply chain. Further detailed information can be found on pages 221 to 225.

1. Including subsidiaries. As management responsibility increases, so does the variable remuneration component, making sustainability performance more important.

   ESRS 2 GOV-5

RISK MANAGEMENT OF SUSTAINABILITY TOPICS

In the 2025 reporting year, BKW further intensified the review of sustainability-related risks and opportunities at the Group level. Sustainability-related risks have been explicitly reported as part of the risk report to the Audit & Risk Committee (ARC) 3 and the executive committee since 2023. In 2024, Risk Management was given the mandate to fully integrate sustainability topics into the risk management framework. Further information on Group Risk Management can be found on page 292 of the Annual Report.

In order to meet the requirements of the Swiss Ordinance on Climate Disclosures, BKW conducted a comprehensive assessment of its climate-rela-ted risks and opportunities in 2024. A selected portfolio of assets was examined in detail in the context of three different climate scenarios. This

analysis was further developed in 2025 and methodologically sharpened to meet the requirements of the expected disclosure obligations under the ESRS. The aim was to refine the measurement approaches, increase the informative value of the results, and ensure greater consistency with European reporting standards. Further information on the procedure and the findings can be found in the Climate Change Mitigation section on pages 164 to 168.

Sustainability risks in the upstream supply chain are continuously managed by Procurement Services. To this end, the supply chain risk analysis carried out in 2023 was refined and extended to other product groups. Additional information on this can be found on pages 221 to 225.

1. For responsibilities of the ARC, see the Corporate Governance report on page 288.

   ‌Strategy

   ESRS 2 SBM-1

STRATEGY, BUSINESS MODEL, AND VALUE CHAIN

BKW is a leading Swiss energy and infrastructure company with more than 12,000 employees✓ and branches with their own staff in eleven countries 4. It has a broad portfolio of products and services in the Energy Solutions, Power Grid, and Infrastructure & Buildings Business Segments. It serves a wide range of customer groups, including private households, companies, and public institutions.

BKW's business model comprises the generation, marketing, and distribution of energy 5 as well

as the planning, realization, and maintenance of infrastructure and buildings (see also page 6). BKW's activities are part of a value chain that extends from the extraction of resources by suppliers, to customers, and ultimately to the dis-

posal or recycling of products at the end of their life cycle. BKW's solutions make a significant contribution to a reliable and renewable supply of electricity and heat, and at the same time support the resource-efficient and sustainable design of buildings and infrastructures.

In 2024, BKW updated its corporate strategy and defined new targets up to 2030. Alongside growth and excellence, sustainability is one of three core elements of the strategy. As part of the double materiality analysis (see also pages 156 to 157), in 2024 BKW analyzed its sustainability-related impacts, risks, and opportunities along the entire value chain and updated its sustainability framework on this basis.

Marketing

Business and private

customers

Stakeholder

Power production

Energy

distribution

Operation and

maintenance

Disposal and

recycling

Employees

Raw

material/resource extraction

Concept and

planning

Suppliers

Production and

manufacturing

Construction and

installation

Transport

BKW's business model and value chain

BKW business model

1. Switzerland, Germany, France, Italy, Croatia, Norway, Austria, Romania, Singapore, Spain, Vietnam.

2. In Switzerland, BKW also physically supplies small quantities of natural gas to end customers.

   • Audited (limited assurance) by PwC in 2025. The audit report can be found in the section Independent Auditor's Report.

   ‌This framework consists of five strategic fronts and takes into account BKW's key sustainability matters (see below). BKW has defined strategic targets for all five fronts, which will be pursued during implementation of the new corporate strategy6.

   Strong governance is the basis for achieving the sustainability-related goals. BKW understands

   this to mean adherence to all regulatory requirements and internal guidelines (compliance), clearly defined responsibilities, and professional risk and data management.

   In 2025, BKW pressed ahead with the planning and implementation of actions in all areas of the sustainability framework.

   Sustainability framework

   Renewable energies

   Energy efficiency

   Security of energy supply

   Climate change mitigation

   Climate change adaptation

   Biodiversity loss

   Ecosystems Water use Resource inflows

   Emergency preparedness

   Relationships with suppliers

   Governance

   Occupational health and safety

   Talent, competence and leadership development Diversity and inclusion

   Work conditions

   Protection of employee data Protection of customer data

   Nature

   People

   Energy

   Climate

   
   
   

3. See page 252 for the contribution from these fronts to the Sustainability Development Goals (SDG) of the 2030 Agenda.

   Sustainability framework - overview of the status of target achievement

   Strategic front	Material topics	Strategic targets	as of 31.12.2025
   Climate	Climate change	Scopes 1 and 2 reduction to net zero by 2040, Scope 3 by 2050.	Being
   	mitigation		implemented
   		Reduce Scopes 1 and 2 GHG intensity (in t CO2/kWh) by at least 50% by 2030 compared to 2022.	- 24%
   	Climate change	Climate-related risks were assessed for all new strategically relevant projects	Being
   	adaptation	from 2025 onwards.	implemented
   Energy	Renewable energies	Expansion to 1.5 GW of wind and PV capacity by 2030.	1,022 MW
   		Targeted installed capacity from renewable energy (hydro, wind, solar,	2.8 GW
   		biomass) of 3.4 GW by 2030.
   		Expansion of battery storage capacity to 500 MW by 2030 to accelerate	0 MW
   		the integration of renewable energies.
   	Energy efficiency	Increase in energy efficiency (MWh/employee) within BKW by 15% by 2030	+ 0.2%
   		compared to 2022, excl. energy for electricity and heat production.
   	Security of supply	BKW maintains the high availability level in its distribution grid.	Being
   			implemented
   		We are investing more than CHF 1 billion (CAPEX) in grid expansion by 2030	CHF 166.9
   		to enable the energy transition and maintain the distribution grid.	million
   Nature	Biodiversity loss	Negative impacts of our own 7 energy and infrastructure projects on biodiver-	Being
   		sity are reduced beyond the statutory requirements, and BKW is aiming for a	implemented
   	Ecosystems	net positive impact 8 when implementing projects from 2030 onwards.
   		Increasingly nature-oriented management of land owned and managed by BKW	Being
   		(influenced in the longer term).	implemented
   	Water use	Create a data basis for water use and water efficiency at all locations by 2026.	Being

   Resource inflows Establishment of Environmental Product Declarations (EPDs) 9 as a procurement criterion in all five risk areas defined by Procurement Services (photovoltaics, wind, large-scale batteries, power grids, and hydro) by 2027.

   By 2028, the life cycle costs will provide a structured basis for decision-making for Asset Management to increase the service life (in terms of new construction, replacement, and repair) of photovoltaics, wind, large-scale batteries, power grids, and hydro.

   implemented Being implemented

   Being implemented

4. Facilities in which BKW holds a majority interest.

5. A Net Positive Impact (NPI) is achieved when negative impacts on biodiversity are not only mitigated but overall exceeded through measures to avoid and reduce these impacts, as well as through restoration actions benefiting the affected species and ecosystems.

6. Standardized, objective environmental assessment of products.

   Strategic front

   Material topics Strategic targets as of 31.12.2025

   People Occupational health and safety

   Focus on prevention and promoting a culture of occupational safety. All managers take part in mandatory training on "Resilience and safety in leadership."

   Being implemented

   Avoidance of serious accidents at work and no work-related fatalities. Being

   implemented

   Talent, competence, and leadership development

   By 2030, BKW aims to be able to fill 50 % of all top management positions

   with internal applicants in the event of succession.

   Being implemented

   Diversity and inclusion By the end of 2027, 90% of all employees will have completed the diversity, inclusion, and unconscious bias training.

   Being implemented

   By 2030, 30% of the top management level across the Group will be women. Being

   implemented

   The proportion of women (currently 22.34 %) in the BKW Group will increase

   by 2030.

   Work conditions By the end of 2026, an additional 120 employees will receive training on the early detection of mental stress (ensa - Mental Health First Aid).

   Being implemented

   Being implemented

   Protection of employee data

   Protection of customer data

   Governance Relationships with

   suppliers

   Emergency preparedness

   BKW will have a uniform, standardized, and Group-wide privacy information management system in place by 2028.

   All relevant Group-wide suppliers (with potential environmental and social risks) have a sustainability rating that is at least equivalent to the industry average by 2026.

   Responsible procurement practices, including due diligence procedures, will be standardized across the Group by the end of 2025 through a robust set of rules and implemented in all procurement organizations from 2026.

   Annual cybersecurity training and campaigns implemented and continually developed for all employees.

   Being implemented

   46 %

   Being implemented

   Being implemented

   ESRS 2 SBM-2

STAKEHOLDERMANAGEMENT

BKW builds respectful, appreciative relationships based on mutual trust with its internal and external stakeholders. BKW relies on long-term partnerships: BKW participates in the UN Global Compact initiative and is a member of the Swiss Association for Sustainable Business (öbu). The Code of Conduct and the values it contains form the basis of daily action for management and

all employees (see also page 219).

In the reporting year, BKW continued to use the platforms that have existed for many years

for dialog with employees. As part of the 2024

materiality analysis, selected employees from all business areas and various support functions were asked about their assessment of BKW's impacts, risks, and opportunities on numerous sustainability matters (see also pages 156 to 157).

BKW also fosters exchanges with external stakeholders in various ways, as the following table shows. As part of the 2024 materiality analysis, many of them were invited to assess BKW's impacts on sustainability matters (see also pages 156 to 157).

Interactions with stakeholders

MATERIAL SUSTAINABILITY-RELATED IMPACTS, RISKS, AND OPPORTUNITIES

In 2024, BKW updated its double materiality analysis in accordance with the European Sustainability Reporting Standards (ESRS, for the procedure see pages 156 to 157). Impacts, risks, and opportunities were assessed as material in 17 sustainability topics relating to seven of the ten ESRS topic standards and two company-specific topics (see materiality matrix below) 10.

The following tables describe the material sustainability topics with relevant impacts, risks, and opportunities for each ESRS topic standard. The impacts can be both positive and negative. Detailed information on the management of these impacts, risks, and opportunities can be found in the following sections.

Against this backdrop, BKW regularly reviews the resistance and resilience of its strategy vis-à-vis external influences. A stress test was carried out in 2024 as part of the strategy development process in which the Group-wide and business-specific risks, including individual climate risks, were taken into account. By continuously developing the climate scenario analysis (see page 164), BKW can identify potential challenges at an early stage and incorporate them into its strategic decisions in a targeted manner. The analysis thus helps achieve long-term sustainability-related goals and ensures the compa-ny's success.

high

BKW's materiality matrix pursuant to ESRS

E3 Water use

E4 Biodiversity and Ecosystems

S4 Customers

(focus topic data protection) Security of energy supply

E1 Climate change and energy transition

S1 Employees

Emergency preparedness

E5 Resource Use and Circular Economy

G1 Responsible business practices

Financial materiality

low

Impact materiality high

1. The topics of emergency preparedness and security of supply were also included as company-specific topics. Information on this is reported in separate sections (from page 228 and 232).

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   ESRS E1

   Climate change mitigation and energy transition

   Topic Impacts Risks Opportunities

   Climate change mitigation Reducing GHG emissions in step with Swiss climate targets

   • GHG emissions from energy production from coal, gas, and wood

   • GHG emissions from commercial vehicles

   • GHG emissions from switchgear

     • Higher CO2 prices/levies

     • Higher raw material and material costs and supply bottlenecks

     • Reputational risks

   • Increasing demand for climate-friendly and/or energy-efficient products and services

   • Promotion of energy

     efficiency actions

   • High demand for renewable energy production

     Climate change adaptation The capacity to adjust the business model to climate changes and to developments or uncertainties related to climate change

   • Solutions in the areas of flood protection, heavy rainfall precautions, and green architecture

   • Implementation of ecological remediations

   • Increase in extreme weather events such as heat waves, heavy precipitation, etc.

   • Shift in climatic conditions, e. g., thawing of permafrost

   • Increasing demand for climate-resilient and efficient building solutions

   • More resilient value chain

     Renewable energies Expansion of renewable energy production (water, wind, solar, biomass)

   • Planning, operation, and expansion of power plants for electricity from renewable energies

   • Expansion of decentralized renewable energy production for customers

   • Decreasing diversification of the electricity generation mix

   • High costs in the expansion of the company's own distribution grid

   • Decrease in GHG intensity of own energy production

   • Technological progress in distribution grid expansion, e. g., smart grid

     Energy efficiency Increasing energy efficiency in the company's overall energy use and offering efficiency services relating to buildings and infrastructure to third parties

   • Increasing efficiency for customers (energy-effi-cient heating, ventilation, automation)

   • Increased efficiency in

     own business activities

   • Declining energy sales

   • Increased energy costs for own business activities

   • Demand for services to

     increase energy efficiency,

     e. g., in-house production, smart control

   • Declining energy requirements in own business activities

     ESRS E3

     Water use

     Topic Impacts Risks Opportunities

     Water use

     Use of water that is dammed or extracted for energy generation or cooling, and after use, released back into the environment clean

     • Water damming and extraction for energy production in hydropower plants

     • Water withdrawal for cooling thermal power plants

   • Restricted access to water (availability and regulations)

     • Reputation and long-term access with efficient, clean use

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       ESRS E4

       Biodiversity and ecosystems

       Topic Impacts Risks Opportunities

       Biodiversity loss due to changes in land and freshwater use

       Impact on biodiversity by activities that change the use of land or freshwater,

       e. g., soil sealing, fragmentation, management of previously unmanaged forests, planning and construction of facilities, power plants

   • Land-use change due to the construction of power plants and grid systems

   • Change in water use due to the construction of hydropower plants

   • Land required for new construction of own sites, such as warehouses

   • Land required for resource extraction and processing (value chain)

   • Increasingly restricted access to land and freshwater (regulations and objections)

   • Delays in projects

   • Additional costs for the use of land

     • High acceptance of energy projects where high standards for biodiversity protection are satisfied

       Impacts on the extent and condition of ecosystems Impact on ecosystems through activities that cause land-use change, land degradation, desertification, and soil sealing

   • Restoration of habitats through renaturation, revitalization, dismantling, and ecological rehabilitation of infrastructures

   • Habitat modification due to the construction of power plants, grid systems, and infrastructure

   • Impacts on suppliers and their suppliers due to the extraction of raw materials (value chain)

   • Delays in projects

   • Penalties and reputational damage in the event of damage to ecosystems in direct operations or in

     the value chain

   • Demand for renaturation services

   • Enhanced reputation through stringent biodiversity standards

     ESRS E5

     Resource use and circular economy

     Topic Impacts Risks Opportunities

     Resource inflows Procurement of raw materials in the form of goods, operating materials, and property, plant and equipment required for business activities

   • Demand for resources for the construction and operation of power plants and power grids

   • Demand for resources in the Services business,

     e. g., vehicles, electrical equipment, safety clothing

   • Legal and reputational risks in the event of violations of environmental, social, and ethical standards in the value chain

   • Project risks due to delays in delivery by suppliers

   • Cost savings through efficient resource use and procurement of secondary raw materials, as well as a switch to less critical resources

   • Market advantages through the establishment of a circular economy

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     ESRS S1

     Employees

     Topic Impacts Risks Opportunities

     Appropriate work

     conditions

     Offering attractive and secure jobs with adequate/ fair wages and regulated work and rest time, social protection against loss of income in the event of major life events, and job security

   • Market-driven and transparent work conditions and non-discriminatory remuneration models

   • Ensuring social security and compliance with labor rights

     • Lack of competitiveness as an employer

     • Legal and compliance risks

     • Increase in employer attractiveness

     • Reduction in employee turnover

     • Increase in employee satisfaction

       Occupational health and

       safety

       Actions and practices aimed at protecting the physical and mental health of employees. This includes the safest possible workplace design and work conditions that promote health.

     • Health risks from high-risk activities at heights, near water, when working with electricity, and in contact with harmful substances

     • Prevention of accidents through high safety standards and protocols

     • Increasing the well-being and health of employees

     • Professional integration

     • High costs due to downtime and rising insurance costs

     • Loss of reputation

     • Reduction in employee productivity (lack of, but also excessive protective measures)

     • High productivity

     • Reduction in healthcare and downtime costs

     • Increasing resilience and employee health

     • Improved employee retention

       Diversity and inclusion Inclusive corporate culture to promote diversity among employees, provide work-life balance with flexible work models, and ensure equal opportunities and a non-discriminatory work environment

     • Training for managers and employees on diversity and inclusion topics

     • Personal and anonymous channels for cases of potential discrimination and zero-tolerance policy

     • Transparent and non-discriminatory human resources processes

     • Flexible work models for a better work-life balance

     • Low productivity and commitment

     • Damage to image and reputation

     • Limited competitiveness

       • Higher productivity and

         efficiency

       • Increase in employee satisfaction

       • Increase in labor market participation

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         Topic Impacts Risks Opportunities

         Talent, competence, and leadership development BKW's initiatives to improve the skills and knowledge of its own workforce and open up career prospects

     • Regular development meetings

     • Promotion of training and further education opportunities

     • Internal mobility programs

     • Targeted management development

     • Establishment of a learning culture

     • Decline in the qualification

       level of employees

     • Reduced productivity and innovative ability

     • Reduced competitiveness

     • Increase in employer attractiveness

     • Increase in adaptability and future viability

     • Increase in employee retention

       Protection of employee data Protection of personal employee data that is collected, stored, processed,

       or transferred by BKW

     • Impacts on informational self-determination

     • Social, health, and financial impacts of inadequate data protection

     • Reputational damage, negative reporting, and loss of trust among employees

     • Criminal investigations, orders by supervisory authorities, and fines

     • Liability vis-à-vis employees

       • Employee loyalty

         ESRS S4

         Customers (focus topic: data protection)

         Topic Impacts Risks Opportunities

         Protection of customer data Protection of personal customer data that is collected, stored, processed, or transferred by BKW

     • Impacts on informational self-determination

     • Social, health, and financial impacts of inadequate data protection

     • Reputational damage, negative reporting, and loss of trust among customers

     • Criminal investigations, orders by supervisory authorities, and fines

     • Liability vis-à-vis customers, affected persons, or shareholders

       • Increased customer trust and reputation gains through the implementation of strict data protection actions

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         ESRS G1

         Responsible business practices

         Topic Impacts Risks Opportunities

         Relationships with suppliers

         Proactively shaping sustainability with suppliers for long-term partnerships based on trust

       • Potential linking of BKW with negative impacts on people and the environment through supplier relationships

       • BKW as a partner to suppliers in achieving sustainability-related goals

       • Increase in regulatory and reputational risks, particularly in the area

         of due diligence

       • Hampered availability of suppliers due to burdensome sustainability requirements

       • Greater attractiveness for customer acquisition (sustainability as a unique selling point)

       • Greater resilience in procurement projects due to clear requirements and deep supplier relationships

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         Company-specific sustainability matters

         Topic Impacts Risks Opportunities

         Security of supply Contribution to ensuring a stable power supply at

         all times, even during peak loads and in the event of planned or unplanned outages in the entire grid

         and in BKW's power plants

         • Expansion, operation, and maintenance of the distribution grid in Switzerland

         • Expansion, operation, and maintenance of power plants

         • Preventive maintenance strategy for critical infrastructures

       • Disruptions in the grid and grid control

       • Outage of production facilities

       • Reputational damage in the event of supply outage

       • Increasing regulation and overriding of corporate decisions

       • High investment and maintenance costs

         to maintain security of supply

       • High level of trust and undisputed "license to operate" thanks to high availability levels and forward-looking planning

       • Energy transition and/or expansion of the distribution grid as an opportunity for growth

         Emergency preparedness (incl. cybersecurity) Preventive protection as well as emergency and disaster planning to ensure the functionality of (critical) energy supply structures, including IT and Operational Technology (OT) infrastructures, data security, and cybersecurity

       • Functioning emergency and crisis organization

       • Redundancies for IT and OT structures

       • Strengthening security awareness among employees

         • High costs and loss of confidence if critical supply structures fail

         • Insufficient responsiveness

         • Costs due to bad investments in the use of new technologies

         • Customer losses in the event of insecure digital products

       • Business potential through a high level of trust from business partners and customers

       • Adequate emergency preparedness in crisis situations

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   Management of Impacts, Risks, and Opportunities

   ESRS 2 IRO-1

METHODOLOGY TO IDENTIFY AND ASSESS THE MATERIAL TOPICS

In 2024, BKW carried out a double materiality analysis to identify and assess the material impacts, risks, and opportunities according to the ESRS requirements. The analysis was

supported methodologically by external expertise and based on input from a large number of internal and external stakeholders.

The analysis of the value chain was the basis for determining double materiality (see page 143). Based on internal expertise, findings from the 2022 materiality analysis and an external peer analysis, the potential and actual impacts, risks, opportunities, and dependencies in the compa-ny's own business activities and in the upstream and downstream value chain were described qualitatively. The affected stakeholders were also identified. For this analysis, BKW drew

on expertise from all business areas and from

all affected support functions 11.

Along the entire value chain, 56 sustainability matters were identified in which either relevant impacts by BKW or risks and opportunities for BKW may exist. The company assessed these sustainability matters along the two materiality dimensions (impact and financial materiality) and proceeded as described below.

Impact materiality

BKW conducted a comprehensive stakeholder survey to assess the impact materiality. In addition to internal experts, stakeholders from the six categories listed below were involved, which resulted from the analysis of the value chain:

• Customers

• Suppliers

• Investors, shareholders

• Workforce in the value chain

• Affected communities/local environment

  (e. g., municipalities)

• Environmental organizations

BKW was able to identify suitable representatives for all stakeholder categories. Of 192 stakeholders contacted, 34% participated in the materiality analysis. This means that the assessments

of 28 internal and 38 external stakeholders were

included in the materiality assessment.

To measure the impacts, all stakeholders were given the opportunity to categorize all 56 sustainability matters according to the respective severity of the impacts using an online questionnaire. This assessment was made up in equal parts according to the specified ESRS criteria of scale, scope, and irremediability, each of which was rated on a four-point scale. To simplify the survey, the probability of occurrence of the impacts

was not assessed, and a probability of occurrence of 100% was assumed in accordance with the principle of prudence.

For each category, the ratings of the external stakeholders were averaged and then aggregated at a 1:1 ratio to the rating of the internal stakeholders to produce an overall value.

The materiality threshold was defined by Group Sustainability in consultation with the executive committee in such a way that sustainability matters are material if they are associated with rather high to very high impacts.

Financial materiality

Internal experts from the support functions and all business areas were involved in the assessment of financial materiality. For reasons of complexity, external stakeholders were not surveyed on this materiality dimension. Internal stakeholders were asked to provide their assessment of the proba-

bility of occurrence (in years) and the level of financial impacts (in CHF million) with regard to the 56 sustainability topics using an online questionnaire on a four-point scale. The mean value was calculated from this assessment for each sustainability matter.

1. Group Strategy and Sustainability, Group Finance including Risk Management, Group Human Resources, Group

   Health & Safety, Group Communications, Group Compliance, Group Legal Services, Group Procurement Services, Group Security.

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   Group Sustainability, with the inclusion of Risk Management, has defined the materiality threshold such that sustainability matters with rather high to very high financial risks and opportunities for BKW are material.

   Stakeholder and management review

   As part of its materiality analysis, BKW identified a total of 15 sustainability matters, four of

   which were identified as material in both reviewed dimensions: climate change mitigation, renewable energy production, occupational health and safety, and emergency preparedness. The results were

   presented to various support functions, in particular Risk Management, Group Procurement Services, and Group Human Resources, for validation of the respective strategic priority. As a result

   of this validation step, the topics of diversity and inclusion as well as talent, skills, and leadership development were also determined to be material due to their strategic relevance.

   The final result of the analysis, with a total of

   17 material sustainability matters, was approved by the executive committee and the board of directors.

   ‌159

   Environmental Information

   Sousbach

   The hydropower plant supplies around 6,700 households with renewable electricity.

   TABLE OF CONTENT S

   160	EU Taxonomy
   162	Climate Change Mitigation and Energy Transition
   182	Water Use
   186	Biodiversity and Ecosystems
   192	Resource Use and Circular Economy

   
   
   

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   EU Taxonomy

   In 2025, BKW continued its work on reporting its environmentally sustainable economic activities (implementation of the EU Taxonomy), taking into account the new regulations (Omnibus I simplification package). Pursuant to these new requirements, the date for the first disclosure of the key figures under the EU Taxonomy Regulation (Regulation (EU) 2020/852) has been postponed to the 2027 fiscal year at the earliest ("stop-the-clock" directive).

   The classification system of the EU taxonomy distinguishes between "taxonomy-eligible" and "taxonomy-aligned" economic activities: taxonomy-eligible economic activities are those that can, in principle, be assigned to one of the defined ecologically sustainable economic activities ("eligibility"). Taxonomy-aligned activities are the share of eligible activities that also fulfill the associated criteria (see below) ("alignment").

   Going forward, BKW will report the taxonomy-eli-gible and taxonomy-aligned proportion of each relevant economic activity for the taxonomy KPIs of revenue, operating expenses, and capital expenditures. To this end, BKW started identifying its taxonomy-eligible economic activities

   and implementing processes and analyses to review taxonomy alignment in 2024. This work was continued in the 2025 fiscal year.

   In total, BKW performs 21 economic activities that are taxonomy-eligible under the EU Delegated Acts. The identification process is ongoing, and activities may be added or dropped in subsequent years.

   Pursuant to the EU's Omnibus I simplification package, economic activities are exempt from the mandatory assessment of their taxonomy eligibility and alignment if they account for less than

   ten percent of total revenue, operating expenses, or capital expenditures.

   EU Regulation 2020/852, Article 3, defines the criteria that an economic activity must meet in order to qualify as taxonomy-aligned:

   • The economic activity contributes substantially to at least one of the six EU environmental objectives of climate change mitigation, climate change adaptation, sustainable use of water resources, transition to a circular economy, pollution prevention, and protection of ecosystems and biodiversity.

   • The economic activity does not significantly harm any other environmental objectives ("do no significant harm").

   • The economic activity complies with minimum safeguards.

   BKW took important steps to strengthen minimum safeguards in the 2025 fiscal year. Status assessments were carried out in the areas of human rights due diligence, consumer interests, anti-corruption, competition, and taxation.

   Based on this, new guidelines were developed or revised where necessary, and the documentation was supplemented. BKW has also improved processes and initiated further actions. The focus in the 2025 fiscal year was on human rights due diligence, for which actions have already been planned for the coming years.

   In 2026, BKW will continue the preparatory work on the EU Taxonomy. The focus here is on the process of collecting the KPIs in order to meet the expected reporting obligation starting from the 2027 fiscal year.

   Taxonomy-eligible economic activities of the BKW Group 12

   Environmental objective (EO)

   EO1 Climate change mitigation

   EO1 Climate change mitigation

   EO1 Climate change mitigation EO1 Climate

   change mitigation

   EO1 Climate change mitigation EO1 Climate

   change mitigation

   EO1 Climate change mitigation EO1 Climate

   change mitigation

   EO1 Climate change mitigation EO1 Climate

   change mitigation

   EO1 Climate change mitigation EO1 Climate

   change mitigation

   EO1 Climate change mitigation EO1 Climate

   change mitigation

   EO1 Climate change mitigation EO1 Climate

   change mitigation

   EO1 Climate change mitigation EO1 Climate

   change mitigation

   EO2 Climate change adaptation

   EO2 Climate change adaptation

   EO2 Climate change adaptation

   Activity

   number Activity as per the EU taxonomy

   3.1 Manufacture of renewable energy technologies

   3.20 Manufacture, installation, and servicing of high, medium, and low voltage electrical equipment for electrical transmission and distribution that results in or enables a substantial contribution to climate change mitigation

   4.1 Electricity generation using solar photovoltaic technology

   4.3 Electricity generation from wind power

   4.5 Electricity generation from hydropower

   1. Transmission and distribution of electricity

   2. Storage of electricity

   1. District heating/cooling distribution

   2. Installation and operation of electric heat pumps

   1. Electricity generation from nuclear energy in existing installations

   2. Electricity generation from fossil gaseous fuels

   6.5 Transport by motorbikes, passenger cars and light commercial vehicles

   1. Infrastructure for rail transport

      1. Installation, maintenance, and repair of energy efficiency equipment

      2. Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings)

      3. Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings

      7.7 Acquisition and ownership of buildings

      1. Data processing, hosting, and related activities

   2. Infrastructure enabling road transport and public transport

   1. Provision of information technology services

   14.2 Flood risk prevention and protection infrastructure

2. Without taking the materiality thresholds of the Omnibus I simplification package into account.

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   ESRS E1

   Climate Change Mitigation and Energy Transition

   As an energy and infrastructure service provider, BKW operates in areas that are relevant to the energy transition. For example, BKW supports the expansion of renewable energy and is assessing an early phase-out of coal-fired power generation. In the Infrastructure & Buildings Business Segment, BKW provides energy-efficient products and services. BKW is also working to improve its own energy efficiency, reduce its GHG emissions, and and implement measures to adapt to the impacts of climate change.

   Strategy

   ESRS E1-1

TRANSITION PLAN RELATED TO CLIMATE CHANGE MITIGATION

BKW strengthened its net-zero commitment in 2024 with the further development of its "Solu-tions 2030" corporate strategy and adopted a transition plan for climate change mitigation. The transition plan aims to systematically address climate-related risks and take strategic opportunities into account. Its implementation depends in part on external conditions.

BKW aims to reduce its own emissions Group-wide in Scopes 1 and 2 to net zero by 2040. To achieve this, it plans to reduce its GHG intensity by 50% by 2030 and by 93% by 2040 compared

to 2022. In terms of emissions from the upstream and downstream value chain (Scope 3), BKW aims to achieve net zero by 2050. BKW thus fulfills the requirement of the Swiss Ordinance on Climate Disclosures to present a transition plan comparable with the Swiss climate targets. In the coming years, BKW regularly reviews the option of having its reduction path certified externally for its coherence with limiting global warming to 1.5°C

in accordance with the Paris Agreement [for example through the Science Based Targets initiative (SBTi)]. However, the first priority is to achieve the targets already set and to improve the data situation for Scope 3 emissions.

BKW is focusing on its largest sources of emis-

sions to reduce Scopes 1 and 2 GHG intensity.

Of the 861 kilotonnes of Scopes 1 and 2 emissions in 2025, 97% came from investments in power plants in Germany and Italy that run on fossil

fuels. In addition, the combustion of fossil fuels through the operation of our own vehicles

and properties is the main relevant source of emissions. Against this backdrop, BKW has defined the following three priority actions:

• Expansion of renewable electricity production

  to around 3.4 GW by 2030

• Examination of an early phase-out of coal before the statutory phase-out in Germany (2038)

• Electrification of the entire own vehicle fleet of all BKW Group companies by 2030

The transition plan for climate change mitigation was approved by BKW's Executive Committee and Board of Directors in the fall of 2024 and is a key component of the new "Solutions 2030" corporate strategy.

As part of the implementation planning of the sustainability framework, the implementation

of the transition plan was also clearly defined and

then approved by the executive committee

in spring 2025. The implementation plan specifies the responsibilities for each action and defines the milestones to be achieved. Annual progress measurement in the form of an implementation report is planned to ensure target achievement for the first time in spring 2026. Additional information on the risks, opportunities, actions,

and objectives that form part of the transition

plan can be found on pages 164 to 174.

MATERIAL RISKS AND OPPORTUNITIES IN THE AREA OF CLIMATE CHANGE MITIGATION AND THE ENERGY TRANSITION

Climate change presents both risks and opportunities for BKW's strategy and business model. BKW therefore carried out a climate scenario analysis in 2024 in order to better understand the potential impacts of climate change on BKW's facilities and the associated risks. This first-time analysis focused in particular on physical risks such as extreme weather events, temperature increases, and changes in precipitation patterns to the distribution grid and power generation facilities 13. The calculations for the analysis are naturally subject to considerable uncertainty.

Based on this analysis, BKW introduced a standardized process for assessing climate risks in 2025 and consequently further developed its risk models in collaboration with the affected business areas.

Key findings from the three scenarios examined are presented below: The results of the climate scenario analysis by technology with regard

to the physical risks on which it focused are displayed in the table on the right.

Low emissions scenario (SSP1-2.6): Immediate and extensive decarbonization (0.9 to 2.3°C)

Medium emissions scenario (SSP2-4.5): Emissions peak around 2040 and then decline (1.7 to 3.2°C)

High emissions scenario (SSP5-8.5): Emissions will continue to rise steadily in the 21st century (3.2 to 5.4°C)

In a low emissions scenario, which is based on a strict global reduction in GHG emissions, BKW is primarily affected by transition risks. These arise, for example, when the economy and society have to implement political objectives in order to achieve the Swiss and EU climate goals.

In the low emissions scenario, demand for climate-friendly energy sources increases sharply, which offers BKW opportunities for a rapid expansion

of its renewable energy portfolio. A stronger focus on low-emission technologies also increases investment in innovations such as smart grids

and storage systems.

An assessment of selected transition risks and climate-related opportunities can be found in the tables on page 166.

In the medium emissions scenario, GHG emissions do not stabilize until the middle of the century. Political objectives for reducing emissions are being set only hesitantly. While transition risks exist, these are less pronounced than in the low emissions scenario. At the same time, the physical impacts of climate change are increasing, which means greater susceptibility to extreme weather events and therefore an increasing risk for BKW's assets.

Hesitant regulatory requirements, particularly gradual carbon pricing, are leading to a continual increase in demand for renewable energies. This offers BKW the opportunity to gradually expand its own portfolio and

drive forward strategic investments in renewable energies. The increasing importance of technologies such as energy storage and smart grids means that the necessary investments can be planned for the long term.

The high emissions scenario assumes a continued sharp rise in GHG emissions. This means that strong physical impacts of climate change are to be expected with fewer transition risks.

The demand for renewable energy remains limited. At the same time, it is expected that BKW's assets will be exposed to high physical risks, particularly as a result of extreme weather events and long-term changes in weather phenomena.

1. The methodological approach and data sources of the climate scenario analysis are described on pages 167 to 168.

   Physical risks for BKW's power generation facilities and distribution grid according to the climate scenario analysis

   Technology Climate risks Findings Actions

   Wind energy Changes in wind

   patterns (chronic)

   Outages and damage to facilities due to wind gusts (acute)

   There appear to be no significant changes to the wind patterns at the analyzed locations by 2050 compared to today. However, the strength of the wind gusts will tend to increase. The potential risk of an outage or physical damage to the facilities increases accordingly but remains at a low level even in the high emissions scenario.

   Conclusion of insurance policies. Wind power is a self-adapting technology, i. e., as a result of repowering, old turbines are replaced by new ones that are adapted to the changed operating conditions in the face of climate change.

   Thermal power plants

   Change in the efficiency of the plants (chronic) Extreme flood and drought events (acute)

   The increase in water and air temperatures can lead to a reduction in efficiency for all plants with water or air cooling. The greatest impacts are to be expected for nuclear power plants with continuous production (base profile). On the other hand, the anticipated impacts

   are much smaller for gas and coal-fired power plants, as the reduction in efficiency is particularly pronounced in summer and the power plants produce less during that time of year anyway.

   Nuclear power plants are designed to withstand rare weather events (one event in 10,000 years) 14. In the climate scenarios examined, only minor operational restrictions

   are therefore to be expected from flood and drought events for the two nuclear power plants in which BKW has a stake. Nor are any significant outages due to extreme weather events expected for the gas and coal-fired power plants examined.

   Among others, protective walls against coastal flooding for the Wilhelmshaven coal-fired power plant. Overall, the sites are only slightly susceptible to extreme weather events due to their design and the existing protective measures.

   Hydropower (Hydro)

   Glacier melt (chronic) Outages due to heavy precipitation (acute)

   The expected impacts from glacier melt are rather low for flexible pumped-storage power plants, while they tend to be higher for storage power plants with reduced flexibility.

   An increase in extreme precipitation can lead to increased water pollution and thus potentially to more shutdowns in order to avoid turbine damage.

   Among other things, protective actions for buildings below endangered slopes, slope stabilization, actions against glacial drift, deposits and sediments (e. g., flushing, dredging), seismic reinforcement, design of new small hydropower plants for

   HQ 300 (i. e., 300-year flood) including freeboard for adaptation to more extreme weather events.

   Distribution grid

   Extreme weather events (acute): e. g., avalanches, floods, landslides, and rockfalls

   It is expected that by 2050 there will be more and more hazard zones in which BKW assets are located.

   This includes seepage pits, protective walls on steep slopes, increasing the height of substations.

2. WENRA Guidance on Extreme Weather Conditions.

   Transition risks in the context of climate change

   Climate-related risk Assessment Time of occurrence 15

   Markets Higher raw material and material costs due to increased requirements (e. g., standards) for energy-efficient infrastructure. As a result, customers are potentially more reluctant to make decisions on new, expansion, or maintenance measures; and revenue may be lost.

   The expansion of the decentralized energy infrastructure requires a significant expansion of the grid infrastructure, which is associated with numerous uncertainties in terms of feasibility.

   Short-term

   Medium- and long-term

   Politics and legislation Potentially declining profitability of BKW's investments in fossil fuel

   power plants due to stricter emissions regulations and rising CO2 prices.

   An increase in the carbon tax on fossil fuels can lead to additional costs for operational activities, e. g., for fossil-fueled vehicles.

   Short-term

   Medium- and long-term

   Reputation Reputational damage possible due to non-compliance with strict legal requirements as well as customer and investor expectations.

   Short-, medium-, and long-term

   Transition opportunities in the context of climate change

   Climate-related opportunity Measurement Time of occurrence 15

   Resource efficiency Increased revenue due to the growing demand for integrated energy

   and building solutions for efficient and needs-based provision of

   electricity, heating, and cooling.

   Short-term

   Markets Increased revenue due to growing customer demand for BKW's climate-friendly and/or energy-efficient products and services. This leads to growth in new profitable business lines, e. g., e-mobility and battery storage.

   Short- and medium-term

   Politics and legislation Tapping into new market potential through climate-related public

   funding actions in the areas of energy, transportation, telecommunications, and water.

   Short- and medium-term

   Energy systems Increased revenue and growth opportunities due to the need to

   expand and convert the distribution grid as a result of decentralized energy supply.

   Medium- and long-term

   BKW continuously reviews its business model with regard to the growing significance of climate risks. Strategic considerations within the Group take into account both the contribution to the energy transition - for example by expanding renewable energies, strengthening grid stability, and securing supply - as well as the impacts of climate change on the Group's own business model.

   Based on a climate scenario analysis, BKW assesses how robust its value creation is against climate-related risks. These findings are incorporated into strategic planning and help to strengthen entrepreneurial resilience - i. e., the ability to adapt to new conditions and remain successful in the long term.

3. Short-term: 1 to 4 years, medium-term: 5 to 10 years, long-term: >10 years.

   Management of Impacts, Risks, and Opportunities

   ESRS 2 IRO-1

DESCRIPTION OF THE PROCEDURES TO IDENTIFY AND ASSESS THE MATERIAL CLIMATE-RELATED IMPACTS, RISKS, AND OPPORTUNITIES

BKW prepares an annual GHG balance sheet to identify and assess the climate-related impacts. It is based on the Greenhouse Gas Protocol.

Additional information on this can be found on

pages 178 to 181.

BKW carried out a climate scenario analysis in 2024 to identify and assess climate-related risks and opportunities. The analysis had a time horizon of 2030 and 2050 and focused on the distribution grid and on power generation facilities with high revenue, production, and risk relevance in BKW's portfolio 16. It fulfills the requirements of the Swiss Ordinance on Climate Disclosures and follows the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).

The climate scenario analysis considers various risk categories, including both chronic and acute physical risks. Chronic risks include long-term climate changes, such as changes in wind patterns or glacier melt, which can affect energy production. Acute risks include extreme weather events that can lead to network disruptions and physical damage to infrastructure.

Transition risks are also taken into account. Relevant risk factors were integrated into existing models based on their potential development under the various scenarios. For example, BKW expanded its price forecast models to include potential CO2 certificate prices under various scenarios. In addition, other factors that influence material transition risks, such as risks related to political decisions relating to fossil energy technologies, have been included in the Group risk management portfolio.

Opportunities arising from climate change are continuously analyzed from the perspective of the business unit and its strategic processes.

Three emission scenarios were modeled to assess the impacts. The scenarios were based on the "Shared Socioeconomic Pathways" (SSP) used by the Intergovernmental Panel on Climate Change (IPCC), which take into account socioeconomic developments and the associated emission trajectories. These scenarios help to assess different developments in GHG emissions and their potential impacts on energy infrastructure.

Low emissions scenario (SSP 2.6) Medium emissions scenario (SSP 4.5) High emissions scenario (SSP 8.5)

The low emissions scenario is characterized by strong climate change mitigation actions and low emissions. It aims to limit global warming to less than 2°C, ideally to 1.5°C.

The medium emissions scenario envisages a stabilization of emissions by the middle of the century and a slow reduction thereafter. The global temperature rises moderately, with a warming of around 2°C to 3°C by 2100.

There are no material climate change mitigation actions in the high emissions scenario. Global warming could exceed 4°C by 2100.

1. More than 50% of energy production covered, reference year 2023.

   Various impacts on BKW were examined as part of the scenario analysis. These include possible damage to the infrastructure, downtimes, changes in production output, and grid disruptions. BKW has started to integrate these metrics directly into its models in order to be able to estimate the potential financial impacts on

   assets and business activities in the future, such as the impacts of temperature changes on the efficiency of thermal power plants.

   Both internal information and external data sources were used for the analysis. These include Correntics climate data for Switzerland and Europe, scientific studies, and relevant climate indicators. This combination ensures that the forecasts and assessments are based on solid, well-founded data.

   Building on the original analysis in 2024, BKW

   introduced a standardized process for assessing

   climate-related risks in 2025. This new approach makes it possible to identify materiality and vulnerability in a structured and comprehensible manner and to clarify whether or to what extent BKW assets are exposed to climatic influences. The risks analyzed so far and those to be analyzed in the future largely correspond to the scenarios and risk categories listed by the Federal Office for the Environment (FOEN) in its "Climate Risk Analysis for Switzerland" report from 2025. This ensures that potential financial impacts are taken into account as realistically and comprehensively as possible. In addition, climate-related risks and opportunities are incorporated into

   the assessment of relevant investment decisions, thereby strengthening BKW's strategic focus

   and resilience. The gradual expansion of the climate risk analysis to other locations and business areas will ensure that all core areas of the company are fully covered in the future.

   ESRS E1-2

POLICIES AND ORGANIZATION RELATED TO CLIMATE CHANGE MITIGATION AND THE ENERGY TRANSITION

The BKW Group's Code of Conduct is the central frame of reference for the obligation of management and all employees to accept their responsibility towards the environment and climate. The requirements for managing the impacts, risks, and opportunities in the areas of climate change mitigation, climate change adaptation, renewable energy production, and energy efficiency are set out in BKW's Environmental and Climate policy. BKW uses a precautionary approach in that preventive actions are taken to avoid damage to the environment and climate wherever possible and otherwise to reduce damage as much as possible. It actively promotes the expansion and use of renewable energies and will make its business

activities increasingly environmentally and climate friendly. The Environmental and Climate policy was approved by the board of directors and is binding for all BKW Group companies.

The transition plan and the targets relating to climate change mitigation, climate change adaptation, renewable energy production, and energy efficiency were defined by the executive committee and approved by the board of directors. The members of the executive committee are responsible for implementing the objectives and targets through actions in their respective business areas. They are supported by Group Sustainability at Group level.

ACTIONS RELATED TO CLIMATE CHANGE MITIGATION AND THE ENERGY TRANSITION

BKW aims to vigorously promote its commitment to climate change mitigation in its own operations and in its value chain. The following key actions contribute directly or indirectly to the material topics in this area.

Examination of the early phase-out of coal-fired

power generation

BKW aims to significantly reduce its emissions from fossil electricity production by 2040 and thus make a contribution to climate change mitigation (see also pages 172 to 174). To this end, it is currently looking into phasing out the Wilhelmshaven coal-fired power plant before the statutory deadline in Germany (2038).

In addition to the Wilhelmshaven coal-fired power plant, BKW is also invested in two combined-cycle power plants in Italy. These flexible power plants will remain an important part

of the European electricity supply for the time being. In contrast to coal-fired power plants, BKW assumes that there will be financially viable solutions for the combined-cycle power plants

to gradually reduce GHG emissions during production. One conceivable solution is to replace fossil fuels with alternative fuels (e. g., "green gases"), possibly coupled with direct neutralization of residual emissions at the power plant, i. e., carbon capture and long-term storage after combustion. BKW is constantly reviewing possibilities and the use of new technologies.

Expansion of renewable energy production BKW continues to resolutely press ahead with the expansion of renewable energies. The Group

plans to expand its renewable energy production to 3.4 GW by 2030 and invest around CHF 1.5 billion to achieve this. The expansion has a direct impact on the GHG intensity of the overall energy production portfolio and thus contributes to BKW's climate change mitigation targets. At the end of 2025, the capacity of renewable energy production was 2.8 GW, an increase of 0.1 GW compared to the previous year.

In 2025, the following power plants were being

planned, realized, or newly commissioned:

Photovoltaics:

• Two solar farms in Genzano di Lucania and Tuscania, Italy (in planning)

• BelpmoosSolar open-space solar plant, Canton of Bern (in planning)

• "MontSol" alpine solar project, Canton of Bern (in planning)

  Wind power:

• Two wind farms in Cerignola, Italy (Cerignola North newly commissioned at the end of 2025; Cerignola South commissioning planned for early 2026)

• Tramelan wind farm, Canton of Bern (in planning)

• Jeanbrenin wind farm, Canton of Bern (in planning)

  Hydropower:

• Sousbach small hydropower plant, Canton of Bern (newly commissioned, final work in progress)

• Turbach small hydropower plant, Canton of Bern (in realization)

• Trift power plant, Canton of Bern (Oberhasli power plants) (in planning)

• Expansion of Lake Grimsel, Canton of Bern (Oberhasli power plants) (in planning)

• Handeck 4 power plant, Canton of Bern

  (Oberhasli power plants) (in planning)

• Grimsel 4 pumped-storage power plant, Canton

of Bern (Oberhasli power plants) (in planning)

In addition to projects for the expansion of renewable energy production, BKW is also enlarging its portfolio in the area of heating network and single plant contracting. The heating systems and individual plants are largely operated using renewable energy sources such as wood chips, waste wood, pellets, waste heat, and groundwater.

The following projects were being planned or

realized in 2025:

Heating systems:

• Kehrsatz heating network, Canton of Bern (in realization)

• Niederscherli heating network, Canton of Bern (in realization)

• Biel-Zentrum heating network, Canton of Bern (in realization)

• Biberist-Industrie heating network, Canton Solothurn (in realization)

• Bettlach heating network, Canton of Solothurn (in planning)

• Bützberg heating network, Canton of Bern (in realization)

• Oensingen-Industrie heating network, Canton of Solothurn (in realization)

• Ostermundigen heating network, Canton of Bern (in planning)

• Gerlafingen heating network, Canton of

  Solothurn (in planning)

• Lauterbrunnen - Wengen heating network, Canton of Bern (in planning)

  In 2025, BKW also set up a new business unit for the development, realization, construction, and operation of system-serving large-scale battery storage systems. BKW's goal is to build over

  500 MW of large-scale batteries by 2030, thereby increasing the share of non-fossil flexibility in

  its portfolio and supporting the integration of renewable energies 17.

  The following projects were being planned or

  realized in 2025:

  Large battery storage:

• Mühleberg Swissgrid (400 MW battery

  storage), Canton of Bern (under review)

• Mühleberg (60-100 MW battery storage),

  Canton of Bern (under review)

• Bickigen (100 MW battery storage), Wynigen,

  Canton of Bern (under review)

• Bassecourt (100 MW battery storage), Haute-

  Sorne, Canton of Jura (under review)

• Holenbrunn (20 MW battery storage), Bavaria, Germany (in realization according to SIA standards)

• Waltrop (300 MW battery storage facility 18), North Rhine-Westphalia, Germany (in planning)

  Support for the expansion of renewable energy production

  BKW supports the operation and expansion of renewable energy production by third parties with purchase products such as Power Purchase Agreements (PPA), Direct Marketing (DM),

  and tolling agreements for large-scale battery storage facilities.

  Through PPs and DM, BKW offers price and planning security for investors, developers, and operators of renewable plants (e. g., wind or solar) and thus creates reliable framework conditions for the expansion and operation of renewable capacities. Tolling agreements enable the construction of large-scale battery storage facilities that compensate for fluctuations in renewable energy generation and thus help to stabilize the energy system. BKW also connects producers

  of renewable energies with energy-intensive customers through structured supply models such

  as corporate PPA and supports them in achieving their climate targets.

  Through the combination of market expertise and long-term partnerships, BKW supports the integration of renewable energies into the energy system. BKW already manages a PPA, DM, and flexibility portfolio of more than 15 TWh with terms until 2040 in Germany, France, and Italy.

  More than 200 contracts were concluded in 2025, including:

• The direct marketing from the EMYN (Éoliennes en Mer des Îles d'Yeu et de Noirmoutier) offshore wind farm (500 MW installed capacity): BKW is responsible for balancing the 61 wind turbines.

1. The systems are operated exclusively with mains current. They are typically fed at times with a high proportion of renewable energies in the electricity mix and discharged at times of low renewable production, which is why the CO2 intensity of the stored electricity is, on average, significantly lower than that of fossil plants, especially in Germany, the current focus market.

2. This corresponds to BKW's share of 33.3%.