Sustainability Report and the Combined Separate Non-Financial Report for the WACKER Group and for Wacker Chemie AG

About this Report

This report provides details of how Wacker Chemie AG strikes a balance between its economic, ecological and social responsibilities. With a view to our future sustainability reporting, we have integrated the Sustainability Report into the separate non-financial report, which forms part of our Annual Report. Unless indicated otherwise, what we state here applies to all our business divisions and sites around the world, as well as to those subsidiaries in which WACKER holds a majority stake.

About WACKER

WACKER is a global company with state-of-the-art specialty chemical products. The Group Business Fundamentals section of the combined management report describes the company’s business model, legal structure, management and supervision as well as key products, services and business processes.

In the Group Business Fundamentals section of the combined management report, we provide information on competitiveness and value trends, on products, services and business processes, and on corporate management, supervision and governance.

Risk and compliance management at WACKER as well as the major risk areas affecting its business are presented in the risk management report, which forms part of the combined management report. Overall, we see no serious risks that might arise from environmental concerns, personnel matters, social issues, human rights, corruption or bribery. We see no serious sustainability risks that might arise from our business relationships, our business activities or our products.

Review of the Separate Non-Financial Report

This is the separate non-financial report – as defined in Sections 315c and 289c through 289e of the German Commercial Code (HGB) – for both the WACKER Group and Wacker Chemie AG for fiscal 2023. The sections highlighted within the gray separation lines constitute the contents of the separate non-financial report for the WACKER Group and Wacker Chemie AG.

The report was reviewed by the Supervisory Board of Wacker Chemie AG and, on its behalf, by KPMG AG Wirtschaftsprüfungsgesellschaft in compliance with the International Standard on Assurance Engagements – ISAE 3000 (Revised): “Assurance Engagements Other Than Audits or Reviews of Historical Financial Information” to obtain limited assurance relating to the disclosures legally required in accordance with Section 315c in conjunction with Sections 289c through 289e HGB.

The references in this report relate to more detailed information, with the exception of those relating to the Group management report.

Reporting Criteria

This separate non-financial report combined for the WACKER Group and for Wacker Chemie AG is guided by the sustainability reporting standards of the Global Reporting Initiative (GRI). We also take into account other aspects relevant to WACKER’s sustainability concerns. In addition, we publish information on our commitment to sustainability on our website.

Defining Material Issues

Every two years, we conduct an analysis in order to determine the content that is material to sustainability reporting. In 2022, WACKER employees were asked in an online survey to assess which topics are of significance to those interest groups with whom they are in close contact. The survey included experts on stakeholders such as analysts and investors, customers, suppliers, employees and politicians, as well as representatives of government authorities and non-governmental organizations (NGOs). Those responsible for the environment, security, sustainability, energy management, health, product safety, hazardous goods, export controls, HR, compliance management and human rights were involved in this indirect survey of stakeholders.

The following five material topics were determined:

• Competitiveness and value trends
• Product safety
• Safety of production plants
• Sustainable products and innovations
• Energy efficiency

In the respondents’ view, the following topics have the biggest influence on WACKER:

• Competitiveness and value trends
• Product safety
• Safety of production plants
• Sustainable products and innovations
• Risk management

According to the survey, WACKER has the biggest influence on:

• Safety of production plants
• Sustainable products and innovations
• Energy efficiency
• Resource consumption
• Competitiveness and value trends

Respondents saw these areas as having the greatest potential for improvement:

• Competitiveness and value trends
• Sustainable products and innovations
• Energy efficiency
• Recruiting and retaining employees
• Environmental standards within the supply chain

CSR Directive Implementation Act and GRI

We report on topics that are material as defined by the German Corporate Sustainability Reporting Directive Implementation Act (CSR-RUG) and GRI. These included 12 of the 28 concerns we asked about in our 2022 materiality analysis. We also report on the issue of human rights in line with the statutory requirements. This non-financial report contains additional topics that are not defined as material by the CSR-RUG or GRI, but which we have included in order to ensure continuity of content.

The following twelve material topics, which were identified in the 2022 materiality analysis, were examined in relation to 2023. They take account of their relevance to the company and the impact of our business activities on them.