Ams OSRAM : Sustainability Report 2023

Sustainability Report 2023

ams-osram.com

Report Profile	Company Profile	Sustainable Corporate Governance and Integrity	Environment and Climate Protection	Society	Responsibility to Employees	Appendix

Contents

Foreword			4.0	Environment and Climate Protection		6.0	Responsibility to Employees
	Report Profile			4.1	Environmental Management	23	6.1	Our Human Resources Work	46
1.0			4.2	Climate Protection	24	6.2	Occupational Health and Safety	49
				4.2.1	Energy Efficiency at the Group's Own Locations	24	6.3	Diversity and Equality of Opportunities	51
	Company Profile			4.2.2	Renewable Energies	25	6.4	People Development	53
2.0			4.2.3	Greenhouse Gas Emissions	26	6.5	Attractiveness as an Employer, Employee Satisfaction, and Remuneration	55
				4.2.4	Green Tech Development	27
2.1	Our Company	6		4.3	Circular Economy	30			Appendix
2.2	Our Portfolio	7		4.3.1	Resource Efficiency	30	7.0
2.2.1	Impact of Our Business Model	7		4.3.2	Conflict Minerals	31
2.2.2	Our Products' Contribution to the SDGs	8		4.3.3	Waste	31	7.1	Assurance Report	57
				4.3.4	Water	32	7.2	GRI Index and SASB	59
	Sustainable Corporate Governance and Integrity			4.4	EU Taxonomy	34	7.3	EU Taxonomy KPIs	67
3.0						7.4	TCFD Recommendations	70
				5.0	Society		7.5	Imprint and Contact	73
3.1	Sustainable Corporate Governance	10
3.1.1	Core Values	10
3.1.2	Executive Bodies of the Company	10		5.1	Respect for Human Rights	38
3.2	Implementing Sustainability within the Company	13		5.2	Supply Chain Management	39
3.2.1	Organization and Structures	13		5.3	Product Responsibility	42
3.2.2	Materiality Analysis	13		5.3.1	Customer Satisfaction	42
3.2.3	Sustainability Strategy	15	5.3.2	Product Safety and Quality	43
3.2.4	Dialog with Stakeholders	17	5.4	Social Engagement	44
3.2.5	Risk Management and Geopolitical Risks	18
3.3	Combating Corruption and Anti-Competitive Behavior	19
3.3.1	Data Protection	21

= Reference to external websites		= Reference within this document

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Foreword

Dear Readers,

In 2023, as we witnessed new records being set for extreme weather events, the need for consistent climate protection was brought home for us all. The semiconductor industry must and can make a significant contribution here: energy-efficient semiconductor components enable other industries to reduce their ecological footprint, thus supporting the transition to a carbon-neutral economy.

Energy-efficient optoelectronic products also contribute to solving other global chal- lenges: special sensors in electric cars support the transport transition to e-mobility, while others improve road safety. Our products enable new, affordable applications in the health care sector and resource-saving food production through intelligent, energy -saving plant lighting.

Our aim is to develop pioneering technologies in the fields of lighting, visualization, and sensor technology. We support our customers in bringing innovative products to the market that improve the quality of life in terms of health, safety, and mobility, and thus contribute to sustainable development. At the same time, we help our customers achieve their own sustainability goals by continuously working to improve the energy efficiency of our products and to minimize their environmental footprint.

We view sustainability not only as an important pillar of our "license to operate," but above all as an essential prerequisite for long-term success. Sustainability is therefore a key component of our corporate strategy.

In 2023, we launched the "Re-establish the Base" strategy program. As part of the realignment, the role of the sustainability function within the Company was enhanced, and the sustainability strategy was further developed. In addition to advancing sustainable solutions, the focus here is on reducing the actual and potential negative impacts of our business activities on people and the environment. The objectives

for our focus topics of climate change, circular economy, integrity, labor conditions

• diversity, and human rights have been expanded. We present the details of these objectives in this report, ensuring their implementation by defining measures and measuring their success.

We place particular emphasis on the issue of climate change. There is no doubt that as a manufacturing company, we contribute to climate change. We take our responsibility seriously, and in 2021, we set ourselves the goal of achieving carbon-neutral production by 2030. We have already achieved a reduction of 24% by 2023.

We launched our "Operations Sustainability Program" for our semiconductor production sites in 2023 and have set ourselves ambitious targets. By 2028, energy consumption and emissions at our own semiconductor sites are to be reduced by 20% through

efficiency measures, and our electricity supply is to be converted to 100% renewable energy.

The progress we have made in our sustainability activities is also reflected in the results of our ESG ratings from recognized agencies: we have achieved Gold status with Ecovadis and Prime status with ISS. In addition, ams OSRAM was once again included in the S&P Global Sustainability Yearbook.

Our sustainability endeavors are guided by the United Nations' 17 Sustainable Development Goals (SDGs). As a supporter of the UN Global Compact, we align our business activities and our sustainability strategy with these universally acknowledged principles, including zero tolerance of corruption.

As a company, we aim to contribute to a sustainable future through our innovations. We believe that the most effective way to achieve this is through collaborative dialog and cooperation. Therefore, I warmly invite you to get in touch with us.

Yours sincerely,

Rainer Irle

Chief Financial Officer

April 24, 2024

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	Report Profile	Company Profile	Sustainable Corporate Governance and Integrity	Environment and Climate Protection	Society	Responsibility to Employees	Appendix

1.0 Report Profile

About this Report

This 2023 Sustainability Report provides an insight into the Company's sustainability strategy, along with an overview of how our efforts are progressing. In doing so, we illustrate the impact of our business activity with regard to social, environmental, and economic aspects and describe the concepts we employ and action we take to mitigate negative effects on the environment and society and to reinforce positive effects.

• Unless otherwise stated in the report, our sustainability reporting includes all fully consolidated companies in the consolidated financial statements. Upcoming or past changes to the portfolio that impact on reporting are shown in line with the rules for financial reporting.

Portfolio Changes

The following portfolio changes are taken into account in this sustainability report:

However, for new report content or, in some cases, due to the availability of data, shorter reporting periods are presented.

- Macroeconomic and sector-specific developments are examined in the

ams OSRAM Annual Report ams OSRAM Annual Report, Management Report,

1 Overview of the Economic Environment and the Past Fiscal Year, and 9 Outlook.

- The number of employees is stated - unless shown otherwise - in employees

ams OSRAM is not subject to the provisions of the EU's Non-Financial Reporting Directive (NFRD) or the Austrian Sustainability and Diversity Improvement Act ("Nachhaltigkeits- und Diversitaetsverbesserungsgesetz," NaDiVeG) and is therefore currently not obliged to report. Rather, we report voluntarily in the form of a Sustainability Report to inform stakeholders about our sustainability activities and to meet the increasingly stringent reporting requirements in accordance with future regulations such as the Corporate Sustainability Reporting Directive (CSRD) or the EU Tax-

Unit

Sale of Clay Paky S.p.A.

Sale of automotive lighting systems business in Italy (AMLS, Italy)

Sale of Digital Systems (DS) business in Europe and Asia

Part of Reporting

no longer included from March 1, 2023

no longer included from August 1, 2023

complete, no longer included from September 1, 2023

(headcount) on the reporting date.

- The terms ESG, CSR, and sustainability are used interchangeably in the report.

This 2023 Sustainability Report was approved by the Company, represented by the Management Board, on April 24, 2024.

onomy Regulation (2020/852).

The 2023 Sustainability Report was prepared in accordance with the Sustainability Reporting Standards of the Global Reporting Initiative (GRI) in their currently valid form. It also takes account of the framework of the Sustainability Accounting Standards Board (SASB), with a separate index for the SASB "Semiconductors" industry standard1. The report also contains a chapter on the EU taxonomy eligibility of our product portfolio as well as a separate chapter1 in the appendix on the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).

Reporting Parameters

Essentially, the sustainability reporting follows the approach of financial reporting.

• In keeping with the consolidated financial statements, the reporting period for the
  2023 Sustainability Report is from January 1 to December 31, 2023.

General Information on Reporting

• The reported content has been chosen on the basis of the results of our 3.2.2 Materiality Analysis and the requirements of the GRI Standards.
• Financial data contained in the report are taken from the ams OSRAM Consoli- dated Financial Statements 2023.
• Financial data are presented in the Sustainability Report in EUR millions, rounded to the closest million.
• Rounding differences may occur in tables when totaling rounded amounts and percentages.
• In principle, it should be possible to identify a trend in KPIs. Therefore, wherever possible and/or relevant, KPIs are reported over a time frame of several years2.

KPMG Austria GmbH Wirtschaftspruefungs- und Steuerberatungsgesellschaft carried out a limited assurance review of the German PDF version of the report in compliance with the International Standard on Assurance Engagement (ISAE) 3000 (revised). The disclosures for 2023 were checked for compliance with the GRI Standards.

This report is available as a professionally laid-out PDF and can be downloaded at https://ams-osram.com/about-us/sustainability.

	2 For KPIs relating to 2020, it should be noted that OSRAM activities for the entire 2020 calendar year have been
1 Unaudited and therefore not part of the audit mentioned under "General Information on Reporting."	included. The sustainability reporting therefore deviates from the financial reporting, in which the full consolidation of
the OSRAM business was not completed until July 9, 2020.

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2.0 Company Profile

Our Company

Our Portfolio

Impact of Our Business Model

Our Products' Contribution to the SDGs

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2.1 Our Company

ams OSRAM is a leading provider of light and sensor technologies 2.2 Our Portfolio. We research technologies and develop innovative products and solutions based on these, which are marketed via a global sales network.

The operational implementation of the business primarily takes place through the two segments Semiconductors and Lamps and Systems. Our target customers are in the automotive, industrial and medical technology, and consumer markets. With the exception of the business for spare parts in the automotive segment, ams OSRAM exclusively serves business customers (B2B).

ams OSRAM at a Glance1

KPI		Unit of reported KPI	2021	2022	2023
Employees (average; FTE)		Average number of employees	26,130	23,322	20,530
Employees (headcount as of December 31)		Headcount as of December 31	24,499	22,461	20,378
	thereof outside Austria				23,125	21,101	19,059
	thereof Austria				1,374	1,360	1,319
Revenue		Total revenue in millions of EUR	5,038	4,819	3,590
Revenue (regional split)

Geographically, our corporate activities are split into three regions or regional mar- kets: "EMEA" (Europe, the Middle East, and Africa), "The Americas" (North and South America), as well as "Asia/Pacific."

ams-OSRAM AG, headquartered in Premstaetten (Austria), is a stock corporation under Austrian law, which is listed on the SIX Swiss Exchange. As the parent com- pany, it has active, unlisted, direct, and indirect holdings and subsidiaries. Shareholders in the Company with more than 3% of the voting rights are reported in the Annual Report ams OSRAM Annual Report, Corporate Governance, Significant Sharehold- ers, and can also be viewed at the Disclosure Office. There were no cross-share-

holdings during the reporting period ams OSRAM Annual Report, Corporate Gover- nance, Cross Shareholding.

In the 2023 fiscal year, ams OSRAM's business was negatively impacted by sustained geopolitical conflicts and their effects. The direct and indirect effects of these con-

• thereof EMEA
• thereof Americas
• thereof Asia/Pacific
  Revenue (segments)
• thereof Semiconductors
• thereof Lamps & Systems
  R&D expenses Total assets Equity Equity ratio Production site Subsidiaries
  Countries with business activities

Revenue by region in millions of EUR	1,413	1,455	1,053
Revenue by region in millions of EUR	962	849	755
Revenue by region in millions of EUR	2,663	2,515	1,783
Revenue by segment in millions of EUR	3,279	3,167	2,425
Revenue by segment in millions of EUR	1,760	1,652	1,165
in millions of EUR	692	630	480
in millions of EUR	9,644	8,832	7,401
in millions of EUR	3,150	2,833	1,905
Equity in percent of total assets	33%	32%	26%
Number of locations with own production (globally)	23	20	18
Number of subsidiaries (globally)	117	99	86
Number of countries with subsidiaries and participations consolidated in the financial statements	43	40	39

flicts and crises are reported in various places in the 2023 Annual Report.

ams OSRAMSustainability Report 2023

1 Detailed information and explanations on the key metrics contained in the overview can be found in the ams OSRAM Annual Report, which can be downloaded from the Company's website.

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2.2 Our Portfolio

The ams OSRAM technology portfolio comprises technologically complex, intelligent sensor and emitter components, including high-quality light emitters, sensors, and CMOS ICs with embedded software solutions. These are complemented by complete luminaires and complex systems, creating market-changing innovations in our end markets. One priority is the development of green tech products and solutions 4.2.4 Green Tech Development.

2.2.1 Impact of Our Business Model

The semiconductor industry is regarded as a key to digitalization. Optical semiconductors are on the way to replacing electronic components. They enable numerous applications that are used in a multitude of sectors 2.2 Our Portfolio and

ams OSRAM Annual Report, Management Report, 3 Research and Development.

The products and solutions for which end customers use semiconductors often have positive effects on nature, the climate, and society in general 2.2.2 Our Products' Contribution to the SDGs. The semiconductor industry is also an important economic sector that directly and indirectly creates jobs and contributes to economic development through high levels of investment.

For technological reasons, the manufacturing processes in the semiconductor industry are very energy- and water-intensive. As an example, ultrapure water is required. In addition, gases and rare raw materials, as well as some hazardous chemicals, are needed in production. There is a risk of human rights violations in the upstream supply chain, because of the minerals processed and their origin. The topics outlined are reflected in our 3.2.2 Materiality Analysis. How ams OSRAM deals with existing and potential impacts of its business activity on people and the environment and, by extension, on key stakeholders such as employees or users, and how negative effects

of business activity are to be mitigated or avoided, is described in the relevant chapters of this report.

Life cycle analyses (LCAs) have shown that our products have the biggest impact in the downstream supply chain, particularly in the use phase. For example, they are built into products and solutions as components that - as described below - have a positive impact on both the environment (in particular climate protection) and society. In 2023, we established a role dedicated to conducting LCAs. Due to the complexity of the analyses, we have developed a strategy to ensure that future LCAs cover customer requirements and the portfolio as effectively as possible. A pilot study has already been successfully completed. The first regular LCAs will be created in 2024.

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2.2.2 Our Products' Contribution to the SDGs

ams OSRAM is guided by the 17 Sustainable Development Goals (SDGs) of the United Nations and aims to make a contribution to achieving those goals with its product portfolio. We understand the SDGs as an indicator of our added value to society. At the same time, they serve as guidance in deducing business opportunities.

With our portfolio, we address global challenges, such as climate change, the scarcity of resources, or urbanization, and want to improve quality of life in various areas, such as health, safety, and mobility. In keeping with our business model, we develop increasingly efficient, ever-smaller solutions across all technologies 4.2.4 Green Tech Development, which contribute to the SDGs mentioned below.

Positive Impact of our Portfolio on the SDGs

Automotive & Mobility

LiDAR for advanced driver assistance enables safer driving, fewer accidents, etc.

Intelligent multi-pixelated forward lighting for better sight and projecting warning symbols

In-cabin sensing for driver monitoring and alert systems with fast detection, improved safety for driver and passengers

Energy-efficient and safer solutions for a more autonomous future mobility

Circular LED modules for automotive lighting

Industrial & Medical

Energy-savingUV-C disinfection solution without using chemicals or mercury (conventional UV-C solution) - less harm to the environment

Horticulture LEDs for a better yield, less resource and energy usage, enables vertical farming

High-performance medical imaging for better qual- ity/diagnostics with lower radiation for patients and doctors

Cutting-edge LEDs for high-performance lighting with low energy use

Consumer

Vital sign monitoring for several health measure- ments, very small and energy-saving device design

UV-A sensor for sun protection, to alert the user/ prevent sunburn

Behind-screen applications for improved display brightness and colors

Multiple energy-efficient light and sensor solutions/ high convenience with low power consumption

Small projection units for augmented reality (AR) devices in glasses

Energy-efficient image sensors for sensor applications in augmented reality (AR) and virtual reality (VR) glasses

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Report Profile	Company Profile	Sustainable Corporate Governance and Integrity	Environment and Climate Protection	Society	Responsibility to Employees	Appendix

3.0 Sustainable Corporate Governance and Integrity

Sustainable Corporate Governance

Core Values

Executive Bodies of the Company

Implementing Sustainability within the Company

Organization and Structures

Materiality Analysis

Sustainability Strategy

Dialog with Stakeholders

Risk Management and Geopolitical Risks

Combating Corruption and Anti-Competitive Behavior

Data Protection

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Report Profile	Company Profile	Sustainable Corporate Governance and Integrity	Environment and Climate Protection	Society	Responsibility to Employees	Appendix

3.1 Sustainable Corporate Governance

For ams OSRAM, responsible corporate governance is an essential foundation for achieving the corporate goals and robust growth in the value of the Company in the long term. Our core values and trusting collaboration between the Executive Bodies are central to this.

3.1.1 Core Values

We bear responsibility throughout the world because of our global business activity and its potential and actual impact on the economy, the environment, and society. Our actions are guided by the principles of the UN Global Compact and respect for international rights and laws. These are firmly embedded in our core values and leadership principles.

We rely on strategic, ambitious thinking and actions, and encourage trust, integ- rity, and diversity at our Company. These values and principles form the basis of our actions and our leadership style, as well as the decisions we make. They are anchored in the ams OSRAM Code of Conduct (CoC). They also determine how we behave as colleagues and business partners.

The CoC also takes account of statutory provisions, rules for publicly listed companies 1, and international agreements on human rights, anti-corruption, and other areas of responsible corporate governance. All employees undertake to comply with the CoC when they start working for the Company. The CoC basically summarizes how we live up to our ethical and legal responsibility as a company. We respect each individu- al's personal dignity, privacy, and personal rights, and do not tolerate any discrimination 6.3 Diversity and Equality of Opportunities. We have also formulated our commitment to respecting human rights with regard to people affected by our business activities, our supply chain, or our products in our Human Rights Policy.

1 Because it is listed on the SIX Swiss Exchange, ams-OSRAM AG is subject to corporate governance requirements for listed companies in Switzerland (Swiss Corporate Governance Directive). These requirements are fully observed, as are those of Austrian stock corporation law. ams-OSRAM AG also takes account of the recommendations of the Austrian Corporate Governance Code and developments in the respective regulations applicable to international investors and advisors on voting rights.

We also oblige our suppliers to comply with the values and principles defined in our CoC via our Code of Conduct for Suppliers 5.2 Supply Chain Management.

Potential risks and violations of our principles regarding human rights, labor condi- tions, and environmental protection, both in our own business area and at our sup- pliers, can be reported via the "Tell ams OSRAM" whistleblower system. We report on violations and how we deal with them in the relevant chapters, each of which are in the "Action Taken, Results, and KPIs" section: on breaches of labor conditions and human rights in 5.1 Respect for Human Rights, on environmental breaches in 4.1 Environmental Management, and on breaches of anti-corruption and antitrust law at 3.3 Combating Corruption and Anti-Competitive Behavior.

3.1.2 Executive Bodies of the Company

Corporate governance at ams OSRAM is shaped by the dual management system applicable under Austrian stock corporation law, consisting of a Management Board and a Supervisory Board.

Information about the working methods of the Supervisory Board, the committees, their members, and the resumes of the members of the Management Board and Supervisory Board can be viewed on the Company's website (see "About us" in the navigation bar.

Management Board

As the management body, the Management Board is responsible for corporate governance and decides on the fundamental issues of business policy and corporate strategy. Furthermore, individual areas of responsibility are assigned to each member of the Management Board, based on the rules of procedure. Within the Management Board, the Chief Financial Officer (CFO) is responsible for sustainability, and the head

of the Sustainability Department reports directly to him. Responsibility for the topics defined as "material" is explained in the relevant chapters of this report.

When filling management positions in the Company, the Management Board takes diversity and inclusion into account. Among other things, it aims to increase the proportion of women in management positions to at least 25% by 2026 6.3 Diversity and Equality of Opportunities.

In its regular reporting to the Supervisory Board, the Management Board also comments on sustainability issues.

Supervisory Board

The Supervisory Board monitors the work of the Management Board and regularly discusses - with or without the members of the Management Board - latest business developments and planning as well as the Company's long-term strategy and its implementation. Another of the Supervisory Board's tasks is to decide on appointments to, and the remuneration of the Management Board.

Within the Supervisory Board, various Committees are dedicated to specific top- ics. The Chairs of the Committees report on their work at the Supervisory Board meetings. The ESG Committee deals extensively with ESG requirements, strategic targets, and the associated action, and prepares any decisions to be made by the Supervisory Board. It works closely with the Audit Committee, which also deals with sustainability-related regulatory requirements and the future EU-wide mandatory sustainability reporting in accordance with the CSRD. The ESG Committee also coordinates with the Supervisory Board's Remuneration Committee to set ESG targets for Management Board remuneration and determine to what extent those targets are met each year. This structure ensures that the Supervisory Board reflects the various dimensions of sustainability in its work and oversees the Company's progress in those areas Charter of the ESG Committee.

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