Non-Financial Report 2025

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Art. 964b et seqq. Swiss Code of Obligations

2|67 Table of Contents

Statement by the Chair of the Board of Directors 3

Sustainability as a Strategic Priority 3

Double Materiality Assessment 3

Focus Areas Going Forward 4

Basis for preparation 5

Legislation and reporting standards 5

Reporting Scope and Boundary 5

Data Collection and Methodological Approach 6

Data Approximation 6

Estimations and Uncertainties 6

Reporting Changes 6

Incorporation by Reference 6

Guiding Principles 7

Strategy & Governance 8

Strategy, Business Model, and Value Chain 8

Stakeholder Engagement 9

Sustainability Governance Structure 11

Due Diligence 13

Risk Management 15

Sustainability Strategy 16

Double Materiality Assessment 16

PLANET 19

Climate Disclosures Based on the Recommendations of the "Task Force on

Climate-related Financial Disclosures" (TCFD) 19

Climate Change 20

PEOPLE 42

Own Workforce 42

Workers in the Value Chain 51

Consumers and End Users 55

GOVERNANCE 59

Business Conduct 59

Annex 64

‌3|67 Statement by the Chair of the Board of Directors

‌Heinz Kundert, Chair of the Board of Directors

Following the significant expansion and consolidation of the Group in 2024, the past year has been shaped by the successful integration of our expanded business and the realization of early synergies. This consolidation has strengthened our operational platform, broadened our capabilities, and enhanced our ability to serve customers across markets. As a result, R&S Group is today better positioned to respond to changing customer needs and to pursue sustainable, long-term growth.

The markets in which we operate continue to undergo rapid transformation, driven by technological progress, higher regulatory expectations, and growing demand for resilient and sustainable solutions. Customers are increasingly seeking reliable partners that combine innovation, quality, and responsibility. These developments create both challenges and opportunities, and we view them as a strong affirmation of our strategic direction and our focus on future-oriented products and services.

Sustainability as a Strategic Priority

Sustainability has become a defining factor for long-term business success. For R&S Group, environmental steward ship, social responsibility, and sound governance are not standalone topics, but integral elements of how we operate and create value. As the R&S Group has grown, so has our responsibility to manage our environmental and social impacts in a structured and transparent manner. We are committed to embedding sustainability considerations more deeply into our strategy, operations, and decision-making processes.

Double Materiality Assessment

In 2025, the R&S Group conducted its first comprehensive double materiality assessment. This exercise enabled us to identify and prioritize the sustainability topics that are most significant from both an impact and a financial risk and opportunity perspective. The results of the assessment are presented in this report and provide a clear and robust foundation for our sustainability strategy, reporting, and governance going forward.

‌4|67 Focus Areas Going Forward

Guided by the outcomes of the Double Materiality Assessment, R&S Group will focus its efforts on a defined set of priority topics. These include the management and reduction of environmental impacts, the continued promotion of health, safety, and employee development, and the strengthening of ethical conduct and responsible business practices along the value chain. By concentrating on these focus areas, we aim to further enhance our resilience, meet rising stakeholder expectations, and create sustainable value over the long term.

‌5|67 Basis for preparation

‌Legislation and reporting standards

R&S Group prepares this Non-Financial Report as part of its Annual Report in accordance with the applicable legal requirements in Switzerland, including the Swiss Code of Obligations (Swiss CO) and the Swiss Ordinance on Climate Disclosures.

R&S Group has considered the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), as mandated by the Swiss Ordinance on Climate Disclosures. The R&S Group has conducted a qualitative assessment of key climate-related risks, developed scenario analyses, and assessed the potential impacts of climate risks on its business model and corporate strategy.

Swiss Code of Obligations

This Non-Financial Report provides an overview of the R&S Group's performance in the areas of environmental protection, social responsibility, labour practices, human rights, and anti-corruption, supported by key performance indicators used to monitor sustainability progress. The content is structured around environmental topics, social matters, and governance topics within the Double Materiality Assessment. The report describes the R&S Group's material impacts, risks, opportunities, policies, due diligence processes, and the measures implemented, including their effectiveness, as well as the relevant performance indicators for each non-financial topic. R&S Group is subject to the provisions of the Ordinance on Due Diligence and Transparency in relation to Minerals and Metals from Conflict-affected Areas and Child Labor (DDTrO).

R&S Group does not import or process an annual quantity of minerals and metals exceeding the quantities set out in Annex 1 of the DDTrO. As these materials may nevertheless be used in components or products that are incorporated into transformers, the R&S Group monitors its supply chain to identify potential instances of conflict mineral sourcing from smelters located in areas of concern. The results of this high-level assessment are presented in section Conflict Minerals Reporting. R&S Group is subject to the DDTrO and does not fall under the exemptions of Art. 6, 7, or 9 DDTrO. In accordance with Art. 5 DDTrO, the Group assessed potential child-labour risks and identified no reasonable grounds for suspicion in its own operations or supply chain. Further details are provided in Workers in the Value Chain section.

This year, the Non-Financial Report under the Swiss Ordinance on Climate Disclosures has not been published in a machine-readable electronic format, as there is currently no taxonomy standard for digital climate reporting in Switzerland. At present, the legislator allows for flexibility, and PDF is provisionally accepted as a standard format.

‌Reporting Scope and Boundary

The Non-Financial Report covers R&S Group's global operations for the 2025 calendar year, from 1 January 2025 to 31 December 2025. The organizational and operational boundaries are defined in line with the R&S Group's consolidated financial reporting structure as mentioned in the R&S Annual Report 2025. No business units are excluded.

6|67 Basis for preparation

‌Data Collection and Methodological Approach

The individual definitions and methodologies for the metrics disclosed in the Report are provided in the respective sections of the sustainability chapter under the main topics of Planet, People, and Governance. These pillars provide a clear structure for classifying and managing sustainability priorities. Each topic is assigned to clear ownership and accountability, ensuring that responsibilities are defined and actions are coordinated across the organization.

‌Data Approximation

The R&S Group works with primary data wherever possible. Where primary data is not available, estimations based on indirect sources are used, for example in the calculation of Scope 3 greenhouse gas emissions. For the current reporting year, Scope 3 emissions are calculated using a spend-based approach, and only three Scope 3 categories -business travel, waste generated in the operations, upstream and downstream transportation, and distribution-categories are included in the assessment.

Currently, emissions calculations rely on limited primary data from third-party suppliers and partners, with some figures rounded or estimated. R&S Group is committed to improving the availability and quality of primary third-party data and is taking steps to support this. The transition to a Scope 3 assessment based more on primary data will be gradual and applied where reasonable, resulting in a hybrid approach combining primary and estimated data. Where updated or higher-quality data becomes available after the reporting year, the R&S Group will assess its materiality and, where appropriate, incorporate such data into emissions calculations through updates or adjustments in subsequent reporting cycles.

‌Estimations and Uncertainties

A high level of uncertainty exists in the Scope 3 data collected. Individual estimates and uncertainties are provided under the specific sections within this Report.

‌Reporting Changes

In response to evolving ESG regulations, R&S Group enhanced its reporting approach in 2025 by including selected ESRS-aligned disclosures in the area of emissions, energy consumption, employee data and business conduct. This is supporting future CSRD compliance and reinforcing its commitment to transparency and recognized sustainability standards.

‌Incorporation by Reference

Any information incorporated by reference from other parts of the Non-Financial Report is clearly identified to provide transparency and facilitate traceability. Accordingly, references in this document to the "Report" shall mean the present Non-Financial Report. References to R&S Group shall mean the "Group", and references to Rauscher & Stoecklin AG, Tesar S.r.l., Tesar Polska Sp. z o.o., Tesar Gulf, ZREW Transformatory S.A., Rauscher & Stoecklin Polska Sp. z o.o., and Kyte Powertech Ltd. shall mean "Rauscher & Stoecklin", "Tesar Italy", "Tesar Poland", "Tesar Gulf", "ZREW", "Rauscher & Stoecklin Polska", and "Kyte", respectively.

7|67 Basis for preparation

‌Guiding Principles

R&S Group's activities are generally guided by

• the UN Guiding Principles on Business and Human Rights require companies to respect human rights, comply with laws, provide remedies for violations, and prevent or mitigate adverse impacts linked to their operations;

• the OECD Due Diligence Guidance for Responsible Business Conduct, which provides guidance to companies regarding the practical implementation of the OECD Guidelines for Multinational Enterprises, among other things, regarding the observation of human rights, employment, the environment, and the fight against corruption;

• ten of the 17 UN Sustainable Development Goals.

  
  
  

  ‌8|67 Strategy & Governance

  ‌Strategy, Business Model, and Value Chain

  R&S Group is a leading provider of electrical infrastructure products such as transformers, switches, and connectors. The company is headquartered in Sissach, Switzerland, employs over 1'300 people, and operates seven production, assembly, and testing facilities in Europe and the Middle East as well as a sales office in South America.

• The product portfolio consists of three categories of transformers with a variety of applications serving multiple industries:

• Power transmission and distribution of electricity

• Renewable energy, including hydro, wind, and solar power

• Transport and e-mobility

• Data centres

• Construction and infrastructure

R&S Group strategically targets attractive segments within the low- to medium voltage transformer market. The main markets are currently concentrated in Switzerland, Italy, Poland, Ireland, the UK, and the Middle East, with efforts under way to enter new markets, mainly Germany and the Nordic and Baltic countries. R&S Group operates a B2B business and sells directly to distribution network operators, engineering, procurement, and construction (EPC) companies, wind, and solar power producers, industrial customers, power generators, and transmission system operators (TSOs). An additional channel to market is a global network of more than 120 distributors and wholesalers worldwide.

The business model of R&S Group is dynamic and customer-centric, with a strong focus on addressing the specific requirements of customers and niche markets. Its production strategy emphasizes small-batch manufacturing and high levels of customization, supported by structural advantages such as low overhead costs, personalized local service, and short lead times. Combined with a strong commitment to quality, these strengths position R&S Group as a frontrunner in the evolving electrical infrastructure industry.

One of the Group's strategic key pillars is a focus on e-mobility and renewable energy. A wide range of R&S products contribute to clean-technology solutions and are mission-critical to the successful transition toward renewable sources of electricity generation, including solar, hydropower, and wind energy. This transition presents significant challenges for power grids worldwide, as systems shift from a small number of large, centrally located power plants to decentralized networks capable of integrating numerous smaller and geographically dispersed renewable energy sources.

In addition, many power grids across Europe and other regions require substantial modernization not only to accommodate changing grid demands but also to replace aging infrastructure. Further pressure on electricity networks is being driven by rapidly increasing energy demand from data centres, fuelled by the advancement of artificial intelligence technologies.

Harbor electrification serves as a clear example of R&S Group's strategic commitment in

this area. The Group has supported ports in Italy, Germany, the United Kingdom, and

9|67 Strategy & Governance

other European coastal countries in implementing cold ironing technology, which enables ships to connect to onshore power while in port, thereby reducing noise levels and air pollution caused by shipping emissions.

• To manufacture its products, R&S Group relies on essential resources such as aluminum, copper, steel, electricity, fossil energy, fresh, and land. The Group places strong emphasis on working with suppliers that adhere to sustainable practices, particularly those capable of providing materials with lower carbon emissions -especially steel - prioritizing the use of recycled materials such as aluminum, copper, and recycled oils, and offering organic or biodegradable solutions, including organic oils.

• R&S Group maintains close and long-standing relationships with its key suppliers, many of which have been in place for several years and, in some cases, decades. These partnerships enable stable supply chains, consistent quality, and ongoing collaboration on sustainability improvements.

• Employees are regarded as the Group's most important resource. R&S Group is committed to long-term collaboration with its workforce, recognizing employees as integral to their continued success. Beyond the products it delivers to customers, the Group contributes to the economic well-being of communities in the regions where it operates by providing valuable employment opportunities.

• R&S Group maintains a safe and healthy working environment, actively minimizing occupational risks and promoting a culture of inclusivity, respect, and fair treatment. The Group is dedicated to employee development and empowerment, encouraging collaboration and supporting individuals in achieving both personal growth and shared organizational objectives.

‌Stakeholder Engagement

Understanding the expectations and concerns of those affected by the Group's activities is essential to achieving its sustainability objectives. Stakeholder engagement supports the identification of material topics, the assessment of impacts, risks and opportunities, and the alignment of corporate actions with societal needs and regulatory requirements.

10|67 Strategy & Governance

11|67 Strategy & Governance

‌Sustainability Governance Structure

R&S Group has established a sustainability governance structure to ensure that environmental, social, and governance (ESG) principles are consistently integrated across all business units. The structure is designed to embed sustainability across all levels of the organization. Oversight is provided by the Board of Directors, with strategic direction and decision-making supported by the Executive Committee. A Sustainability Technical Committee coordinates topic-specific committees covering Planet, People, and Governance priorities, ensuring alignment across functions and business units. Functional experts and local teams are responsible for implementation, with clear accountability and regular reporting flows to management and the Board.

As a newly established structure, it plays a central role in formalising sustainability responsibilities and creating uniform ESG policies, standards, and procedures across the Group. It ensures that sustainability practices are aligned across all subsidiaries while maintaining consistency in governance, reporting, and performance.

The governance structure ensures that sustainability is integrated into core business activities, influencing investment decisions, risk, product development, supply chain, and stakeholder engagement. By aligning sustainability objectives with business goals, the Group seeks to create long-term value for shareholders while contributing positively to society and the environment and minimizing adverse impacts across its operations and value chain.

R&S Group has a Compliance Officer (CCO) who oversees compliance with applicable laws, ethical standards, and due diligence processes, and reports regularly to the Executive Committee and the Board. The structure supports compliance with environmental and social regulations across all operating regions through consistent Group-wide policies, while allowing subsidiaries flexibility to address local requirements. It also enhances transparency through clear reporting channels, standardised ESG indicators and regular internal and external disclosures.

12|67 Strategy & Governance

This allows progress to be effectively measured, monitored and communicated to stakeholders. At the same time, cross-functional collaboration, knowledge sharing between subsidiaries and regular reviews of sustainability risks and opportunities promote continuous improvement.

Board of Directors

The Board of Directors has ultimate responsibility for overseeing the Group's sustainability strategy, priorities, and performance, including climate related and other ESG risks and opportunities. All key sustainability topics, including the results of the TCFD assessment and the Double Materiality Assessment, are regularly reported to and discussed by the Board as part of its strategy and risk oversight.

In 2025, the Board of Directors held 18 meetings, whereof five were regular meetings, plus a number of shorter, topic-specific calls. The elevated number of meetings reflects the Kyte integration, portfolio realignment and strategic capacity expansion decisions, rather than a structural increase in Board workload. Two of these meetings were dedicated to sustainability matters, focusing on the results of climate-related risks, opportunities, and impacts as assessed through the TCFD framework and the DMA. These meetings were attended by the CEO, the CFO, the CCO, all members of the board members and a member of the sustainability technical committee.

The Board conducted its annual review of climate-related risks identified through the TCFD assessment carried out in 2024, and reviewed the progress made against the Group's long-standing climate-related target. In addition, the Board reviewed the results of the Double Materiality Assessment and discussed how the Group should prioritize and address the identified material topics. Emphasis was placed on the need for a focused and structured approach to ensure ongoing regulatory compliance, effective oversight of sustainability-related risks and opportunities, and continuous alignment with evolving sustainability requirements and emerging industry trends.

Board and Executive Committee Composition

The Board of Directors of the R&S Group comprises five independent, non-executive members who bring a broad range of expertise and perspectives to the table. The Board of Directors is responsible for overseeing sustainability practices, including the approval of the Non-financial report, and plays an active role in promoting the company's ESG (Environmental, Social, and Governance) initiatives. A detailed overview of the members of the Board of Directors, their expertise and experience, as well as the Executive Committee, can be found in the 'Corporate Governance' section of the 2025 Annual Report.

13|67 Strategy & Governance

Sustainability Technical Committee

Reporting directly to the Board of Directors is the Sustainability Technical Committee. This committee includes one Board member as well as senior representatives from relevant functions (finance, procurement, compliance and sustainability) across the organization. Its role is to provide structured, expert-level oversight of sustainability topics and to ensure that ESG matters are addressed in a coordinated and consistent manner across the Group.

The Sustainability Technical Committee meets at least quarterly and prepares structured sustainability updates, recommendations, and key topics for discussion and decision-making at Board level. Its work ensures that material ESG topics are consistently integrated into strategic planning, capital allocation and risk management.

In addition, the Executive Committee (CEO and CFO) maintains oversight of the Sustainability Technical Committee to ensure alignment between sustainability initiatives and the Group's overall business strategy, operational priorities, and financial planning. This dual oversight strengthens accountability and ensures that sustainability is embedded across both strategic and operational levels of the organization.

Functional Experts and Local Teams

Functional experts and local teams across the Group support the implementation of sustainability initiatives within their respective areas of responsibility.

They are aligned through clear topic accountability, ensuring that sustainability policies, targets, and actions are consistently applied across all business units and subsidiaries.

In addition, these teams are responsible for executing the sustainability action plans that are derived from the strategic objectives identified through the Group's Double Materiality Assessment. This ensures that the most relevant environmental, social, and governance topics identified for the business are addressed through concrete, site-level measures and operational improvements.

These teams provide operational insights, collect ESG data, and support the delivery of sustainability initiatives at the local level. Their input is consolidated through the Sustainability Technical Committee and reported upward to the Executive Committee and the Board of Directors, ensuring alignment between strategic priorities and on-the-ground implementation.

‌Due Diligence

At R&S Group, due diligence is an integral part of how sustainability responsibilities are managed. It guides the identification, prevention, mitigation, and addressing of actual and potential negative impacts on people and the environment across the Group's own operations and value chain. The following table represents how due diligence is integrated across the material topics.

14|67 Strategy & Governance

15|67 Strategy & Governance

‌Risk Management

R&S Group has established a structured Enterprise Risk Management (ERM) framework to identify, assess, and manage sustainability-related risks affecting the reliability of sustainability reporting. The results of the Double Materiality Assessment, including climate-related risks and impacts, are integrated into the ERM framework and guide target setting, capital allocation, and the development of policies and initiatives. Risk management follows the principles of ISO 31000.

Responsibility for sustainability-related risks is embedded across all organisational levels, from the Board of Directors to employees. Management is accountable for comprehensive risk identification, accurate assessment, and timely reporting. Sustainability risks in the supply and subcontractor chain are addressed through regular engagement with business partners. The Risk Committee, comprising heads of corporate functions, oversees risks within their areas, supports operational sites, and prepares an annual risk report for the Board as part of the strategy process.

As part of the strategic process, the Risk Committee prepares an annual risk report for the Board of Directors. This report covers significant sustainability-related risks, mitigation measures, and assigned responsibilities. The Board monitors sustainability-related risks and reviews the Group's approach by approving the Code of Conduct for employees, agents, and suppliers and by conducting regular audits of its implementation.

An effective system of internal controls supports reliable sustainability reporting. The Sustainability Technical Committee oversees the preparation of sustainability disclosures and ensures compliance with legal requirements, internal guidelines, and DMA objectives.

16|67 Strategy & Governance

‌Sustainability Strategy

R&S Group's sustainability strategy is based on a long-standing commitment to supporting the energy transition through e-mobility, renewable energy, and responsible business practices. The company focuses on enabling clean power generation, modernizing electricity infrastructure, reducing environmental impacts along the value chain, and fostering a safe, inclusive, and people-centred workplace.

The Group's mission is to guarantee a reliable energy supply by providing customers with a highly dependable product portfolio, offering employees an attractive and supportive working environment, and delivering sustainable, growing earnings for shareholders. At its core, the company's sustainability strategy is based on a people-first philosophy, recognizing employees as its most asset. By fostering a safe, inclusive, and attractive working environment, investing in long-term collaboration, and supporting professional development, the company ensures a motivated, skilled, and engaged workforce.

The strategy is aligned with Switzerland's Long-Term Climate Strategy and the Swiss Climate and Innovation Act, supporting the national objective of achieving net-zero by 2050.

‌Double Materiality Assessment

In 2025, a comprehensive Double Materiality Assessment (DMA) was conducted to support the Group's preparedness for upcoming CSRD requirements. The material Impacts, Risks and Opportunities (IROs) identified through the Double Materiality Assessment directly inform the Group's sustainability priorities and action plans across the Planet, People and Governance pillars. These IROs have been assessed based on their potential impact on people and the environment, as well as their financial relevance to the Group.

In conducting the DMA, the Group applied a structured three-phase approach covering preparation, assessment, and validation to identify the most significant impacts, risks, and opportunities across its entire value chain. The process combined value chain mapping, ESG topic clustering, analysis of internal and external sources, and targeted stakeholder consultations to assess both impact materiality and financial materiality in a transparent and consistent manner.

For each stakeholder category an assessment was then made as to whether direct consultation was required with selected stakeholders, or if the perspective of stakeholders could be determined internal R&S Group contacts' knowledge of the stakeholder's perspective.

The final selection of stakeholders to engage with in interviews was based on the following criteria:

• Representation of different stakeholder groups;

• Relevance and proximity to R&S Group;

• Expertise in ESG and broad understanding of the sustainability agenda of R&S Group;

• Expectation of potentially material IROs within value chain, or relevant perspective on IROs of R&S Group's operations.

17|67 Strategy & Governance

The following topics were identified as material, with strategic alignment detailed in the Planet, People, and Governance sections: Climate Change (E1), Biodiversity and Ecosystems (E4), Circular Economy (E5), Own Workforce (S1), Workers in the Value Chain (S2), Consumers and End Users (S4), and Business Conduct (G1).

The Group's mission is to guarantee a reliable energy supply by providing customers with a highly dependable product portfolio, offering employees an attractive and supportive working environment, and delivering sustainable, growing earnings for shareholders. At its core, the company's sustainability strategy is based on a people-first philosophy, recognizing employees as their most valuable asset. By fostering a safe, inclusive, and attractive working environment, investing in long-term collaboration, and supporting professional development, the company ensures a motivated, skilled, and engaged workforce.

The strategy is aligned with Switzerland's Long-Term Climate Strategy and the Swiss Climate and Innovation Act, supporting the national objective of achieving net-zero by 2050.

18|67 Strategy & Governance

ESRS E1: Climate

Change

Climate Change Mitigation

Energy

Climate Action

Clean Energy & Efficiency

ESRS E4:

Biodiversity and ecosystems

Direct impact drivers of

biodiversity loss

Biodiversity risks in the

supply chain

Resource inflows, including

resource use

Responsible Resources

ESRS E5: Circular

Economy

Waste

Waste Management &

Reduction

Environmental

Pillar

ESRS Topic

ESRS Sub-Topic

R&S Theme SDG

Working Conditions

Decent Work & Social

Dialogue

ESRS S1: Own

Workforce

Other Work-related

Rights

Workforce Rights & Data

Privacy

Equal Treatment and

Opportunities for all Inclusive Employment & Equal Opportunity

Social

ESRS S2:

Workers in the Value Chain

Other Work-related Rights Human & Labour Rights

in the supply chain

ESRS S4:

Consumers and end users

Information-related Impacts for Consumers and/or End-Users

Transparent Communication

Corporate Culture

ESRS G1:

Business Conduct

Corruption and bribery

Ethical Governance &

Responsible Business Conduct

Protection of whistleblowers

Governance

Customer Health & Safety

19|67

‌Climate Disclosures Based on the Recommendations of the "Task Force

on Climate-related Financial Disclosures" (TCFD)

Climate resilience has been assessed by analysing the Group's ability to anticipate, withstand, and adapt to climate-related physical risks under different climate scenarios, considering short-, medium-, and long-term time horizons, as part of the Group's TCFD-aligned assessment. Climate mitigation has been assessed by evaluating transition risks and opportunities associated with climate change, including regulatory, market, and technology-related factors, rather than through the measurement of greenhouse gas emissions.

Governance

R&S has embedded climate-related risks and opportunities into its corporate governance and decision-making processes during 2025. Climate-related topics continued to be overseen by the Board of Directors and addressed as part of strategic guidance, risk, capital allocation, and business planning, with progress against climate-related targets reviewed at Board level.

Progress in 2025 included:

• Improved coordination of climate-related data collection and reporting processes, including closer collaboration between sustainability, finance, and compliance functions.

• Further integration of climate considerations into the ERM processes.

• Ongoing discussions of climate-related risks and opportunities at leadership team meetings.

• Continued efforts to maintain sustainability considerations within procurement and operational decision-making.

  In addition, R&S has established a Technical Committee for Sustainability, which monitors and coordinates all issues related to sustainability. The committee is responsible for managing sustainability initiatives at the operational and technical levels and reports directly to the Board of Directors. This strengthens oversight, accountability and coordination between decisions at the board level, as outlined in the Sustainability Governance Structure.

  Outlook for 2026:

  While R&S Group has not yet reported on the status of a transition plan or its alignment with Swiss climate goals, the Group is committed to developing this as part of its upcoming TCFD disclosures. R&S Group commits to contributing to Switzerland's Long-Term Climate Strategy and the Swiss Climate and Innovation Act, supporting the country's efforts to achieve net-zero by 2050 and a target of achieving this is provided under the operational (Scope 1 & 2) GHG reduction target.

  
  
  

  ‌20|67 Climate Change

  Strategy

  The Group conducted a qualitative climate risk assessment aligned with the TCFD framework, evaluating transition risks and opportunities as well as physical risks affecting its own operations and wider value chain. In line with best practice, potential climate risks and opportunities were assessed using the following scenario analysis:

  • +1.5°C scenario ("Net Zero")

  • +4°C scenario ("Fossil-fuelled Development," based on the IPCC's SSP5-8.5)

The analysis was conducted using defined time horizons, with 2025 -2030 considered the short term, 2030-2040 the medium term, and 2040-2050 the long term.

Key climate-related transition risks identified

R&S Comment: R&S effectively reduces upstream raw material costs by diversifying its sourcing, committing to European suppliers and partnerships for non-carbon materials and exploring the recyclability of metals to manage climate-related risks.

R&S Comment: R&S proactively incorporates the potential impact of future carbon taxes and considerations in investment strategies to safeguard against the financial implications of evolving climate policies.

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