we dotesa sustainability goals

Sustainability report 2023

Dear readers,
Helping to create a more sustainable future is our mostimportant task – as an international company, a manufacturer of innovative adhesive solutions, a business
partner, and an employer. We are fully committed to thisgoal with all of our expertise, relying on our sciencebased approach and the potential of our innovations.
To guide our sustainability initiatives, we follow international frameworks such as the UN Global Compact
and Sustainable Development Goals. We have also
set ambitious goals for ourselves, and we are proudand delighted to have been awarded the highest CDP
score, A, this year for our climate protection efforts.
By 2030, we aim to achieve carbon-neutral production(Scope 1 and 2) and reduce our indirect emissions along
the value chain by 20 percent compared to 2018. In all
six tesa plants worldwide, we are investing in the latest
technical standards and a more sustainable infrastructure. Since 2020, we have been purchasing electricity
from renewable energy sources for all our locations
worldwide. Currently, a solar park is being constructedat the tesa plant in Offenburg, which is expected to be
operational by the end of 2024 and will then coveraround 25 percent of the site's electricity needs. Additional solar parks in China, Italy, Germany, and the
USA are already under construction or in preparation.
For all these technical measures, we are investing 300
million euros in the coming years.
Our diverse workforce of 5,200 dedicated employees,
including over 600 scientists, engineers, and productdevelopers, operates around the globe, working daily
to contribute to our goals with innovative products andprocesses. This report provides detailed insights into themomentum we are harnessing, in part in cooperation
with our customers, to drive this transformation forward.
At our site in Sparta (USA), for instance, this year wecompletely switched our production to manufacturing
adhesive tape without solvents. Embedded in a holistic
concept with many other initiatives, this will enable
us to reduce CO2 emissions in production at the site2by 38 percent. As part of the strategy to regionalize
production and optimize supply chains, tesa has also
opened a new site in Haiphong, Vietnam. Our products
are now reaching our customers in Southeast Asia evenfaster. In addition, 50 percent of the products manufactured in Haiphong are water-based adhesive tapes.
The measures in Sparta and Haiphong are importantmilestones on our sustainability agenda, helping ourcustomers achieve greater sustainability.
Developing and improving adhesive tape solutions
with a focus on optimization for sustainability is anotherpart of our mission. Each year, we invest 6 percent
of our annual sales in developing new products andtechnologies. Last year, we launched approximately
40 new, more sustainable products. For our classic
product tesa® 4965 Original, we were able to reduce
CO2 emissions by 40 percent with our biomass balance
approach and by using 90 percent PCR material in the
PET base, in preparation for the launch of tesa® 4965
Original Next Gen. We want to increase the share of
bio-based or recycled raw materials across our productrange to 70 percent by 2030.
With more than 125 years of expertise, we at tesa areworking to manufacture adhesive tapes that are strong
and long-lasting. New approaches we have developed
aim to ensure that strong adhesive bonds can also beeasily debonded as needed. With this new, promisingtechnology of the future, tesa is setting significant
trends in the market and laying crucial foundations fora successful circular economy by simplifying productrepairs and recycling.
We also know that sustainability begins with responsible
sourcing. To ensure that fair working conditions, humanrights, and standards for environmental protection are
upheld in the supply chain, we rely on certifications
and aim for complete transparency within our supply
chains, setting a good example ourselves. Last year,
tesa was awarded the Gold Medal by EcoVadis, placing
us among the top 2 percent of companies evaluatedin our industry. We are also requiring our businesseditorial

tesa sustainability report 2023

partners to fulfill their social, ecological, and economic responsibilities. Since 2020, we have asked our
direct suppliers to carry out self-assessments throughplatforms such as EcoVadis. At least 80 percent of ourraw material expenditures should go to suppliers who
demonstrably share our standards – and we’re well on
our way at a current figure of 70 percent.
As CEO of tesa, I am proud that sustainability is deeply
embedded in the core of our corporate strategy. We
understand that our responsibility extends beyond
manufacturing high-quality products, and we are continuously improving our manufacturing processes,
procedures, and products to minimize our environmental footprint. The path to sustainability is an ongoingprocess – one we are pursuing with determination andcommitment. In a constantly changing world, we remaincommitted to our pledge for sustainability – because
we know that a sustainable business approach is not
only a successful and viable strategy for the future but
creates our legacy for generations to come.
Sincerely,

Dr. Norman Goldberg, CEO tesa SE,
on the relevance of sustainability.

Norman Goldberg

3tesa sustainability report 2023
Contents
Strategy	Sustainability as a key element of corporate strategy	Ratings and awards
Compliance

12
12
14
14

Environment16
Climate protection and emissions

16

Waste

22

Water

24

People26
Employee concerns

26

Occupational safety

29

Product sustainability

32

Product safety

36

Supply chain

38

Sustainable Development Goals Index

42

Read more aboutsustainability here

5

active inmore than

13

production
sites

100
countries(production andprocessing centers)

Site by site
Our adhesive solutions are manufactured in six different plants on three continents. Safety is the top
priority in all plants, and sustainability, digitalization,and the latest technical standards are also emphasized driven forward.

Sparta– U SA

Concagno– I taly

Offenburg– G ermany

around5,200

employees worldwide

		regional headquarters
		production centers		 plants		Customer Solution Centers			offices

Hamburg– G ermany

Suzhou– China

Haiphong– Vietnam

Fascinating
details
More than

7,000
adhesive solutions

130+
different
adhesive tapes

are used in the production of electric cars – forexample, in the bondingof battery packs.

are already improving thework, products, and livesof our customers.

More than125
years ofexperience

with innovative productsolutions are containedin every tesa product.

tesa sustainability report 2023

More than

100

Ratings and rankings confirm our clear
commitment to sustainability

Find out more athttps://www.tesa.com/de-de/ueber-uns/nachhaltigkeit/sustainability-ratings-assessments

products

are intoduced to themarket by tesa every
year.

Since 2014,

1.8 billion
smartphones

have been equipped with
innovative adhesive technology developed by tesa thatmakes it possible to replace
the battery.

600

engineers and developers
develop our tapes so they arein tune with the time, adapting
them to the needs of our customers in all areas.

9Strategy

Environment

PeopleProducts

Sourcing

Sustainability goals 2030
Taking on more responsibility for the world around us is becoming increasingly
important – for us as a company, for our employees, and for our business partners and customers. That is why we aim to make sustainability a priority at tesa
and get to work with this crucial transformation of our business significantly faster and more urgently than previously envisaged.

1

Read more about oursustainability strategy
and goals

102Reduction of emissions

Responsible sourcing

Tackling the global climate crisis and accelerating positive change are central elements ofour committment. Our mission to reduce global
emissions includes upstream and downstream
processes as well as our own production. Greenenergy is a key pillar of our commitment. Since
2020, we have sourced 100 percent of ourpurchased electricity from renewable energy
sources. In addition to reducing fossil-basedenergy consumption, increasing energy efficiency also plays an important role. To achieve
this goal, we are implementing technologies
that are particularly efficient in conserving resources and energy.

We want to ensure that fair working conditions,human rights, and environmental protection
are upheld along the supply chain. To thisend, we plan to use certifications, get involved in associations, and assess suppliers. In
the long term, we aim to achieve 100 percent
responsible and sustainable sourcing for all of
our raw materials.

Our major sustainability targets 2030

Our major sustainability targets 2030

■ Climate neutral production (Scope 1 and 2).

■ W
 e will target full transparency of our
supply chains.

■ Our indirect value chain emissions will
be reduced by at least 20 percent (Scope3) versus base year 2018.

■ At least 80 percent of our spend will go tosuppliers that are aligned with oursustainability standards.

tesa sustainability report 2023

3

4

5

Use of recycled and bio-basedmaterials

Circularity and reductionof waste

Enable sustainability at ourcustomers and consumers

tesa has set itself the goal of significantly increasing product sustainability and is working
on this every day. Over the next few years, forexample, we will be developing many new
products that make a sustainable contribution
to our top product ranges in the automotive,
electrical, and construction industries, as well
as for our consumers in the office and home.
In doing so, we are focusing on reducing nonrecycled fossil plastics and will increasingly use
recycled and bio-based materials.

tesa will contribute to the circular economy anduse resources as carefully as possible. First andforemost, this involves avoiding waste. Wherethat is not possible, we reduce it. Where waste
is unavoidable, we seek to reuse or recycle it byvarious means. By 2025, we want to eliminate
all landfill disposal of production-related waste.

Achieving a higher level of sustainability is
an important goal for many of our customers- just as it is for us. We are taking this path
together with them and supporting themwith innovative adhesive solutions. In addition to our own product sustainability, we areworking to ensure that our customers enjoy
ecological benefits through the use of our
products; for example, tesa® Bond & Detachmakes smartphone components recyclable
and can be removed easily without leaving
any residue. The aim is to make these contributions more visible in the future.

tesa will further invest significantly in the further
development of solvent-free and energyefficient production technology and capacity.
The facilities on which we currently coat withsolvents are to be technically upgraded sothat the solvents are fully recovered at the endof the process and thus remain in the cycle.

Our major sustainability targets 2030

Our major sustainability targets 2030

Our major sustainability targets 2030

■ 70 percent of the materials for our 		
products and packaging will be recycled
or bio-based.

■ By 2030, we will provide more productswith sustainable end-of-life solutions.

■ Innovative adhesive solutions will beavailable for our customers that contributeto sustainability of their processes andapplications.

■ We will cut the use of virgin fossil plastics
by half by 2030. In our packaging we 		
want to achieve this already by 2025.

■ We will invest in solvent-free processes
and full recovery of solvents.

■ W
 e will make these positive contributions
measurable.

11Strategy

Environment

PeopleProducts

Sourcing

Governance
We take our environmental and social responsibilities seriously. On the basis of thiscommitment, we seek to manage our company in line with sustainable principles.
We rely on international standards such as the UN Global Compact and the UN
Sustainable Development Goals as guidelines for aligning our business activities
with key principles of sustainability.

Sustainability as a key
element of corporate
strategyFirst and foremost, we see sustainability as anopportunity – the opportunity to think one stepahead, to continuously improve ourselves, andto take our ambitions to the next level again andagain. Sustainability is embedded into our corporate strategy as a key element. We want to use allof our expertise and passion to develop products
and adhesive solutions that are more sustainable.

Our sustainability strategy
Our comprehensive approach simultaneously allows us to create lasting value while also remaining
financially robust as a company. We have developed a sustainability agenda of our own in linewith the ten principles of the UN Global Compact(UNGC) and the UN Sustainable Development Goals(SDGs). This agenda reflects our commitment to aholistic understanding of sustainability and encompasses social, customer-related, product-related,and ecological aspects.

12Targets are crucial to the sustainability strategy
because they provide a clear framework for thecompany’s actions and ensure that progress ismeasurable. Our sustainability strategy is centeredaround five strategic action areas that reflect our
entire value chain and are based on long-termtargets for 2030.

Sustainability management
Our Global Executive Committee is an expanded
Executive Board committee consisting of Executive
Board members and additional managers such as
the Chief Sustainability Officer. The committee is
responsible for key sustainability subjects including
climate protection and meets regularly to discuss
our sustainability ambitions and targets in context
with other aspects of the company. The Chief Sustainability Officer also reports directly to the CEO.
We also maintain constant dialog with our external
stakeholders. Such discussions allow us to review
our sustainability efforts on an ongoing basis andto incorporate current social and ecological trends
into our strategic planning.

tesa sustainability report 2023

Fig. 1: tesa Sustainability AgendaForposit a clim
ive
fut ateure

circularfullys
For resource

goa s'
ls

ct
roduy
p
rds abilit
wa stain
o
T su

T
ONMEN
VIR
EN

CU
ST
OM
Enable our cus
Esustainability tomer

RS

The sustainability agenda
reflects our aspiration tounderstand sustainability
comprehensively and thus
includes topics that go beyond
the strategic action areas.

fe
sa w
h, t
a lt e n
He decov e n s ib
w a r s it i li t y
te y, la forr u ndse

SUSTAINABILITYAGENDA

sp i
Re iod db antor y an
k d

SO

C IE

For anin cl u siv e s o cie ty

TY13Strategy

Environment

PeopleProducts

Sourcing

Ratings and awards
Assessments by way of relevant ratings and rankings serve as an incentive for us to pursue constantimprovement. CDP collects environmental data fromcompanies at regular intervals on behalf of investors
and now maintains the world’s largest database ofthis type. CDP has recognized our efforts in thearea of climate protection over the reporting yearwith the best possible score of A (2022 score: B).
In the area of water, tesa received a score of B-.
We are continuing to prioritize various measures
to improve this rating (see Water, p. 24).

supports our corporate management with identifying compliance risks and preventing violations.
Compliance risk assessments are conducted on aregular basis in order to pinpoint key compliancerisk fields. Corporate Compliance Managementadvises our local compliance officers and helps
them implement the measures derived from theseassessments.

We also participated in the sustainability ratingsof EcoVadis, the well-known rating platform forcompanies with global procurement chains, once
again during the reporting year. For the first time,
EcoVadis has awarded us a gold medal in recognition of our sustainability efforts. This places tesa
among the top 2 percent of outstanding companies
on a sectoral basis. This motivates us and strengthens us in our continuing efforts to incorporate
sustainable practices and conscientious businessmethods into all areas of our company.

■ the United Nations' (UN) Universal

ComplianceStandards, statutory requirements, and internal
policies are our key source of guidance for crucial
areas of corporate management. We comply withthese fundamental provisions in a reliable andfaithful manner. This serves to create trust andmakes tesa a credible partner for all stakeholders
and interest groups.

Code of Conduct – basic values forresponsible action
We want to take our social responsibilities into
account and to help our employees, managers,
and executive bodies to internalize the principles
and values of our key business areas. Our Code of
Conduct (CoC) has been developed in the interestof ensuring the fulfillment of our strict compliancerequirements to the greatest possible extent. The
CoC guides our approach to all business activities
as an overarching value framework. In addition, ourCorporate Compliance Management department

14

The following international standards and guidelines are binding for us:

Declaration of Human Rights■ the guidelines of the Organisation for Eco-nomic Co-operation and Development 		
(OECD) for multinational enterprises■ the fundamental conventions of theInternational Labour Organization (ILO)

Our own Human Rights Policy Statement also
applies. It applies on a company-wide basis andalso addresses our supply chains (see Sourcing /supply chain, p. 38 et seq.). All employees undergoawareness training on matters of labor law suchas child and forced labor and other human rights
issues such as discrimination and harassment.
We do so in the interest of ensuring that our employees have a high level of awareness of thesesubjects. As a matter of course, this also includes
comprehensive knowledge of the purpose andfunction of our company-wide whistleblower system (see Compliance management system, p. 15).
We employ further target group-specific training
measures to anchor all compliance principles within
the company. We routinely train several thousand
employees worldwide on the Code of Conduct,
corruption prevention, antitrust law, and data protection. In the 2023 fiscal year, tesa achieved an
overall participation rate of 98 percent.

Learn more about the
topic here

tesa sustainability report 2023
Compliance management system
Our Group-wide compliance management system(CMS) is based on established standards such as
Audit Standard 980 of the Institute of Public Auditors in Germany (IDW), which sets out principles
for proper auditing of compliance management
systems (IDW PS 980). We pursue the central ideasof "avoidance and prevention," "recognition," and"reaction and improvement."
Avoidance and prevention: We have preventive
measures in place to avoid improper conduct.
Recognition: We use risk assessments in order to
identify and manage key compliance risks promptly
on a Group-wide basis. Additional control mechanisms ensure that irregular activities are brought
to light.

Reaction and improvement: We punish any violations of legislative or internal requirements asappropriate given the specific situation. We also
continuously identify improvement measures forthe entire CMS.
Our digital whistleblower system is available to all
employees and managers as well as customers,
suppliers, and other external stakeholders. The
whistleblower system allows violations to be reported directly, confidentially, and anonymously
if desired.
For further information about the areas of focus of
our CMS, please consult the Compliance sectionof the non-financial disclosure we submit jointlywith our parent company, Beiersdorf.

You can find more about
our guidelines andstandards here

15

Strategy

Environment

PeopleProducts

Sourcing

Environment
We view climate change as one of the greatest challenges of our time. Climate change
also presents risks and opportunities which have an impact on our business strategy
and our actions as a company. These can include effects on commodity prices andmaterial availabilities as well as those resulting from the introduction of new fiscal
measures.

Climate protectionand emissions
Our company is committed to limiting the risein global average temperatures, and we haveadopted the “Business Ambition for 1.5°C” voluntarylong-term commitment with the aim of achievinga climate-neutral business model by 2050 at thelatest. We are helping to protect the climate directly
by lowering our energy consumption, using energy more efficiently, and utilizing more renewableenergy. Under our environmental program, all tesa
plants define updated measures each year in order
to expand our contribution to climate protection.

Environment and energy
management systems
Energy consumption is an important control parameter for reducing our environmental impact. We
optimize energy-intensive processes continuously
by identifying energy-saving opportunities andthus reduce our CO2 emissions and related costs.
Corporate management regularly takes part inthese processes by way of a management review.
The environmental and energy experts at the respective locations bear operational responsibility.
We use ISO 14001-certified environmental management systems at seven sites. These sites are subject
to regular internal audits as well as external environmental audits in the context of matrix certification.
Three production facilities and Group headquarters
are also ISO 50001-certified. These account for
84 percent of the Scope 1 and 2 fossil fuel emissions

16of all ISO 14001-certified tesa sites. To facilitate
the continuous organization and planning of ouroperational measures to protect the environment,
we also employ energy management systems certified in accordance with internationally recognized
standards which allow us to work more energyefficiently and reduce our GHG emissions further.
We use our internal planning and reporting structures to identify, assess, and monitor risks andmeasures to reduce GHG emissions. We review
the effectiveness of our activities through monthly
tracking of site-specific energy consumption.
You can find more information on how we reduce ouremissions here

tesa sustainability report 2023
Climate goals
Climate protection is a key element of our sustainability strategy. Our management is responsible formonitoring climate-relevant decisions. This includes
monitoring progress towards the attainment of climate goals and carrying out corresponding climate
protection measures. Our climate goals formulated
for the target year 2025 together with our parent
company, Beiersdorf, have been confirmed by the
Science Based Targets Initiative (SBTi). In addition,
the two companies submitted a net-zero target to
the SBTi for validation at the end of 2023.
All of our offices and production facilities worldwide
have already been sourcing 100 percent of ourelectricity from renewable energy sources since2020. In the course of the 2023 reporting year, wehave already attained and surpassed our original
climate goal for 2025, a 30 percent reduction of
Scope 1 and 2 emissions relative to 2018 in absolute terms, two years ahead of schedule with the
reduction measuring 38% to date. This has inspired
us to set our original targets even higher and toaim for a reduction of Scope 1 and 2 emissions by
a further 20 percent by 2025, i.e. by a total of 50
percent. We intend to have fully climate-neutral
production by 2030. We plan to reduce our Scope
3 emissions by 20 percent in absolute terms by
2030 relative to the 2018 baseline.

Fig. 2: Total energy consumption
in GWh
327

2018

301

310

2019

2020

344

338
292

2021

2022

38%

2023

less Scope 1 andScope 2 emissions
compared to 2018

Fig. 3: Scope 1 and 2 CO2 emissions
in t CO2 e

69,89063,441
54,14053,36750,860●43,447

Scope 22●
Scope 1

20181

2019

2020

2021

2022

2023

Reduction of emissions

1 2018 is the baseline year2	Definitions according to the GHG Protocol Scope 2 standard; marketbased method

We record, consolidate, and analyze our energy
consumption and calculate our GHG emissions inaccordance with the guidelines of the Greenhouse
Gas Protocol (GHG Protocol). We employ the marketbased method in this context. We review the effectiveness of our measures and identify potential
savings for the future with the help of continuous
data collection.

Fig. 4: Scope 1 and 2 CO2emissionsin t CO2 e

2018

2019

2020

2021

2022

2023

Scope 1 emissions

55,63950,32054,12853,36750,85243,431

Scope 2 emissions1

14,251

13,121

12

0

8

16

Total

69,89063,441

54,14058,36750,86043,447

–

–

–

2,720

8,046

7,744

Between 2018 and 2023, we successfully reduced
Scope 1 and 2 emissions by 38 percent in absoluteterms. This represents a decrease by 15 percent
relative to the previous year (see Climate goals, p.
10). Together with continuous energy conservation
measures, the primary factors driving the reductionof emissions during the reporting year also included
the transition to solvent-free technologies as wellas economies of scale in the context of production.
2023 also saw our specific emissions per metricton of end product decrease by 23 percent relative
to the 2018 baseline.

Biogenic Scope 1 emissions

1 Definitions according to the GHG Protocol Scope 2 standard; market-based 		
method17

Strategy

Environment

We also further expanded our CO2 monitoring for
Scope 3 emissions along the value chain during thereporting year. As a manufacturing company, there
are various levers we can use to reduce emissions
upstream in the supply chain. As the principal generator, we have identified the procured commodities
and cases of energy consumption which are incurred
through the manufacture of procured materials. tesa
has initiated a wide range of projects and measures
to prevent or reduce Scope 3 emissions along the
supply chain. In this context, we are particularly focused on conserving materials in order to increase
efficiency and on transitioning from fossil fuelderived raw materials to recycled and bio-based alternatives. The optimization of transportation routes
also plays a crucial role in this context. We expect
our suppliers to transition to renewable energy
sources in the future (see below: supply chain, p.
38 et seq.). Overall, Scope 3 emissions decreased
by 15 percent from 2018 to 2023.

PeopleProducts

Sourcing

Fig. 5: Specific Scope 1 and Scope 2 CO2 emissions per
metric ton of end productin t CO2 e
0.94

0.91
0.82

0.80
0.69

2018

2019

2020

2021

2022

0.73

2023

Reduction and prevention of Scope 3 emissions – projects and measures
Transportation

We were able to reduce the share of air freight by over 60 percent in 2023, thus saving justunder 8,900 t of CO2. In the case of products that can only be transported within certain
temperature ranges, suitable sea freight containers have been introduced as an alternative.

PCR material

We have launched a RollMasker with 100 percent post-consumer recycling (PCR) PE film formasking large areas in the context of automotive painting. This resulted in a reduction of CO2
emissions by 60 t CO2 in 2023. The RollMasker employs a combination of adhesive tape andrecycled HDPE film that can be used for painting with wet-demasking processes or low oventemperatures.

Recycling instead of disposal

The process film tesa uses for the production of safety labels is now recycled rather than
discarded. This has resulted in the conservation of 28 t of waste, or 31 t CO2.

Use of recycled PET

We have increased the share of recycled PET to 80 percent for 5.6 million square meters of
Fleecetape. This conversion has allowed us to save an estimated 920 t of CO2 in total.

Process optimization

We have successfully optimized the coating process for multiple products at our Hamburg
plant. The new process reduces the CO2 footprint of end products by 25 percent, thus
contributing towards more sustainable manufacturing practices.

18

60%

reduction of air freightcompared to 2022

tesa sustainability report 2023
Fig. 6: E lectricity from renewable sources 1
in %

30

2018

50

52

2020

2021

1

66

65

2022

2023

This includes the purchase ofguarantees of origin for renewable electricity and internal
production through sources
such as photovoltaic systems
and CHP plants operated withbiogas.

34

2019

2018

2022

2023

Purchased goods and services

384,025

436,478

336,815

Fuel- and energy-related activities

13,581

12,665

12,573

Transportation and distribution (upstream)

46,338

48,68633,560

Waste

5,495

3,733

3,401

Business travel

7,710

1,803

2,967

Employee commuting

3,972

2,646

2,756

End-of-life treatment of sold products

142,088

157,656

120,434

Total

603,209

663,667

512,506

Fig. 7: S cope 3 emissions
in t CO2 e

19Strategy

Environment

PeopleProducts

Sourcing

Expansion of solar energy

Increasing efficiency

We also continued to work on expanding electricity generation with solar energy in 2023. New
photovoltaic plants have commenced operation at
our sites in China and India. We are also equipping
Group headquarters and our new plant in Vietnam
with photovoltaic plants. The construction of ourlargest photovoltaic plant yet, featuring a maximum
electrical output of 5.5 MWp, was approved for thetesa plant in Offenburg during the reporting year. The
new plant is projected to begin generating power
and advancing the decarbonization of the site further
in the course of 2024. Further investments in solar
energy are in preparation. We generated a total ofroughly 1,700 MWh of renewable energy ourselves
through the use of photovoltaic plants in 2023.

Another strategic priority is to increase energy
efficiency. This requires energy-saving and resourceconserving technologies. At the same time, a greater
focus is being placed on the efficient generation ofenergy in-house by tesa itself.
At several of our production facilities, we operate combined cooling, heat and power (CCHP) or
combined heat and power (CHP) plants. In thesesystems, we use not only the electricity generated,but also the heat that is produced for production
processes or for heating. The energy consumptionof the CHP plant at Group headquarters has been
fully covered with biogas certificates since 2021.
Our plants in Hamburg and Offenburg partially covered the operation of their CHP plants with biogas
certificates during the reporting year. The biogas inquestion is generated in Denmark and supplied to
the European gas grid. This allows us to continue
benefiting from the high efficiency of the CHP and,with the use of methane instead of natural gas, fromrenewable, more climate-friendly energy sources.
In 2023, we covered 65 percent of our overall
electricity needs with power from renewable energy
sources.

You can find further
information about our solarpark in Offenburg here20

tesa sustainability report 2023
VOCs
Our production processes also result in solvent emissions, i.e. emissions of volatile organic compounds(VOCs). Under certain conditions, these can have anegative impact on the formation of ground-levelozone. As such, we aim to reduce VOC emissions
to a minimum. To this end, we use regenerative
thermal oxidation systems for thermal exhaust gas
purification as well as adsorption and waste air
purification plants with solvent recovery. Our global
VOC emissions in 2023 measured 55 metric tons.

Fig. 8: VOC emissions
in t

156

152
111

123

55

2019

2020

2021

2022

2023

21

Strategy

Environment

PeopleProducts

Sourcing

Waste
We attach great importance to the efficient use ofresources. Measures for greater resource efficiency
are an integral part of our environmental protection
activities as a company. It is not yet possible to eliminate all waste during production. However, we arecommitted to reducing it effectively. In the spirit of
the circular economy, we also want to use materials
that can remain in circulation or can otherwise berecycled upon reaching the end of their useful lives.

Reduce, reuse, recycle"Reduce, reuse, recycle" is the tenet at the heart ofour waste and raw materials management. Avoiding
and reducing waste has the highest priority. In addition, we continuously identify various options forrecycling. Waste is disposed of only when this isunavoidable. We have set our plants the strategic
goal of eliminating all landfill disposal of productionwaste ("zero waste to landfill") by 2025. We havealready achieved this goal at six of our seven plants.
In order to use materials efficiently and recycle themwherever possible, our plants work to minimize
production-related losses of raw materials. Thisapplies just as much to adhesive manufacturing as
it does to coating and cutting. One of our planned
measures is to upgrade the technology in systems
that require the use of solvents by 2030 such thatsolvents can be fully recovered at the end of theprocess and thus remain in circulation.
Thanks to ongoing improvements to machineryand production processes, we are reducing ourwaste volumes. We have successfully optimized
the coating process for multiple products at our
Hamburg plant. This has resulted in annual savingsof two million square meters (roughly 127 metrictons) of PET process liner. The recycling processintroduced for release liners at the Hamburg site
in 2022, for example, also facilitated the reuse ofroughly nine metric tons of backing material there
during the reporting year.

22

Waste generated during the production process iscollected separately into various waste categories
according to the site in question and recycled to
the greatest extent possible. The waste is thenaggregated under the overarching categories of“non-hazardous”/”hazardous” and “for disposal”/”forrecycling.”
In the final accounting, the total volume of waste
generated by our plants decreased by 14 percent
relative to 2022. 87 percent of waste was recycled
during the reporting year (previous year: 88 percent).

2020

2021

2022

2023

Disposal of hazardous waste

0.6

1.0

1.3

1.3

Disposal of non-hazardous waste

1.2

1.1

1.2

1.0

Recycling of hazardous waste

5.9

6.4

6.0

4.2

Recycling of non-hazardous waste

9.7

11.5

12.4

11.5

Total

17.4

20.0

20.8

17.9

Fig. 9: Waste volumes by type anddisposal method
in 1,000 t

Packaging recycling
Our goal in the industrial sector is to eliminate all
packaging and packaging components that are notabsolutely necessary without compromising thequality, performance, or protection of our products.
In the packaging we use, we take care to ensurethat the materials used are recyclable. We label all
product packaging according to its content in the interest of ensuring proper disposal where necessary.

tesa sustainability report 2023
Involvement of our employees
It is also important to us to raise awareness among
our employees about how to prevent unnecessary
waste and how to recycle correctly and to actively
involve them in our efforts to continuously reduceenergy and resource consumption. Various ongoing
initiatives such as the “Big Ideas Instead of Waste”
campaign in Offenburg and the new end-wall reuseproject in Suzhou demonstrate that our efforts inthis context have succeeded.

Big Ideas Instead of Waste
We continued the successful “Big Ideas Instead of Waste” campaign at the tesa plant in
Offenburg in 2023. Employees from production, process development, and technology
are participating in the campaign. Project
meetings, in which the concrete feasibilityof proposed improvements is determined
and best practice solutions are discussed,
are held on a regular basis. The project also
encompasses communication measures serving to raise employee awareness about the
subject matter and the value of their individual
contributions. In 2023, a total of 20 projects
in the area of resource efficiency were implemented at tesa’s Offenburg plant. The six
largest projects collectively saved over
200,000 m² of waste. We also saved roughly
265,000 euros through projects implemented
during the reporting period.

Circular economy – pilot project at
tesa plant in Suzhou
Along with major structural considerations
and projects, we also invest in the impact ofindividual ideas. In 2023, we created a cycle
for the reuse of the plastic end-walls of thelarge cardboard boxes we use for roll transport. Roughly 25,000 end-walls were collectedfrom the first two major customers participating
and returned to us over the course of the year,with the result that undamaged polystyrene
end-walls (roughly 95 percent of returns) could
be reused at the plant.

25,000end-walls collected andreused23

Strategy

Environment

Water“Conserve resources and act responsibly and appreciatively”: We also follow this maxim in the way
we deal with water, a precious, and in some regions
scarce, resource. This includes protecting water
sources from pollution by our production activities.
The associated responsibility is also reflected in ourcomprehensive corporate guidelines on environmental protection.

Risk minimization
We disclose information on our water managementin the context of CDP (see Ratings and awards,
p. 14). During the reporting year, we received a scoreof B- (previous year: C) in the area of Water security.
We are striving to improve this rating. We would liketo reduce risks to water sources that result from our
production as effectively as possible. The World
Resources Institute (WRI) has created the Aqueduct
Water Risk Atlas, a data tool that we use to perform
an annual risk assessment on all of our production
facilities and our headquarters. We take preventive
measures against any conceivable accidents. For
example, liquids that pose a threat to water are
only ever emptied, refilled, or stored in areas thatare equipped with appropriate collection facilities.
If water-endangering substances leak, emergency
plans come into effect that define the precise courseof action to take. All measures are regularly reviewed
through external ISO 14001 audits.

24

PeopleProducts

Sourcing

Water volumes and sources
We are using water as an auxiliary material more
frequently, including in the production of adhesives,in cooling processes, and for steam generation.
The overall share of water-based products in our
portfolio has increased over the last several years.
As such, we are pursuing the goal of using water as
sparingly as possible with all the more urgency. We
have adopted a number of measures to this end.
We collect water-related data on aspects such as
water consumption and wastewater volumes at all
production facilities on an annual basis.
Fig. 10: Water data
in m3

2023

Water withdrawal

501,000

Well water

195,000

Water from municipal sources

306,000

Water consumption

156,000

The water we use is primarily obtained from the local
drinking water supply and from groundwater. Water
is reused multiple times in our cooling systems.
We implement appropriate measures to effectively
return used water to the water cycle at our sites.
Our wastewater is differentiated into sewage andrainwater, and concentration levels are monitoredcontinuously. Wastewater is also examined for prescribed parameters by an external laboratory eachmonth. Our plant in Vietnam has a rainwater treatment system. The treated water is used to irrigate
plants on the factory grounds.

tesa sustainability report 2023

Global Sustainability Week
For the second time, a Global Sustainability Week was held for tesa
employees in November 2023. Over the course of three days, there
were many opportunities to experience, participate, and ask questions.
The events, consisting of presentations, information stands, and tours,
took place around the tesa globe, either on site or virtually. During apanel discussion, tesa's top management team faced not only criticalquestions from the moderator, but also from the from the audiencearound the world.

Strategy

Environment

PeopleProducts

Sourcing

PeoplePeople deserve appreciation and respect. This belief is a fixed element of our corporate culture. Honesty, trust, tolerance, and integrity towards our employees and within
our workforce are our highest priority. We are committed to supporting diversity andequal opportunity.

Employee concerns
For a company such as tesa that prioritizes innovation and competitiveness, employees are the key tosuccess. They contribute new ideas, drive changes,
and shape our corporate culture. Their skills andcommitment are indispensable for the developmentof new products and solutions that set us apart fromthe competition. Through continuous professional
development and education opportunities, we aim
to promote the talents of our employees and thus
lay the foundations for sustainable success as acompany. Our goal is to recruit and retain dedicatedemployees.
Since the success of our company is highly dependent on the skills of our employees, our HR
strategy is designed to create an attractive working
environment that recognizes individual performanceand actively embraces the potential of a diverse
workforce. We want to ensure the long-term satisfaction of employees who show a great deal ofpotential. In the interest of creating the best possible
work environment for achieving these aims, weare expressly committed to maintaining a culturethat values diversity and equal opportunity. The
People Values describe our corporate culture inour day-to-day activities and are integrated into
annual employee performance appraisals and feedback discussions. We encourage all employees toparticipate in shaping our values and embodying
them in practice.

Family-friendliness and health
Our flex-time model and options to work at homeallow employees to structure their working hours
in ways that are flexible and family-friendly. We
have also established a parent-child office at tesa
headquarters. Employees at our corporate headquarters can also take advantage of opportunities
including a cleaning service, regular visits to market
stands stocked with regional fruit and vegetables,and various mobility concepts. A charging station
is available for electric cars and bikes, and there isalso a parking point for bicycles under Hamburg’s“Stadtrad” bike-sharing initiative. We encourage
employees to use their own bicycles through aleasing program.

26

tesa sustainability report 2023
Our workspaces are designed to be ergonomic
and modern, e.g. with adjustable sit/stand desks
and lighting and ventilation solutions. Our healthmanagement unit also provides employees at ourheadquarters in Norderstedt with offers such as
personal ergonomic consultations, colon cancer
screening appointments, a fitness studio, and massages that can be booked individually. These offers
also include care from the company medical service
and psychosocial counseling options

Continuing education and employee
retention
We encourage employees to pursue professional
development through various offerings and create
opportunities to take on responsibility. All employees
complete our basic training modules at regular intervals. An employee meeting is held with each individual employee once per year. These meetings help
us to integrate personal and professional concerns
and to effectively tailor employees' professional
development to their individual needs. A portal for
injobs advertised internally and externally provides
employees with the opportunity to apply for jobs indifferent countries and functional areas. In addition
to professional development programs for all employees, we also offer basic qualification courses for
new hires. Employees also have numerous opportunities to pursue professional development throughin-person seminars on overarching subjects such ascompliance, occupational safety, the environment,
sales, management, and leadership. Our digitallearning hub contains further courses on subjects
such as providing active feedback, self-learning,and more. Since 2021, all of our employees havealso had access to sustainability training on our
global learning platform. The mandatory training was
relaunched in 2023. More than 3,500 employees
completed the training in the reporting year. Offersfrom LinkedIn Learning are available as a supplement
to our own programs.

People Values
Our teamwork values
Focus on the customers
Be close to our customers so that we cananticipate and meet their needs.
Set the pace
Be self-driven and proactive.
Team up
Be open-minded and strive for success as
one team.
Achieve goals
Be willing at all times to improve your performance and achieve the best possible
results.
Challenge yourself
Be committed and open to change andchallenge yourself.
Act responsibly
Be fair and honest and act responsibly at
all times.

Training and youth talent promotion
Competition for skilled employees is fierce, particularly in scientific and technical areas, and theeffects of digitalization and internationalization are
also bringing about a rapid transformation in workrequirements and working methods. We need highly
qualified, dedicated, and performance-oriented
employees, which is why we are continuously

27

Strategy

Environment

developing our training and professional education
programs in the interest of meeting these challenges
as effectively as possible. By consistently promoting
youth talent, we aim to provide promising young
hires with targeted professional development andto build loyalty to the company.
The tesa Group offers independent training programs
at its production sites in Hamburg-Hausbruch andOffenburg. The key focus areas in this context are
in technical fields. In addition to courses offered
for training as chemical technicians, electronics
technicians for operational technology, industrial
mechanics, machinery operators, system operators,
and mechatronics technicians, there are also options
for commercial vocational training as well as cooperative university education in the areas of plastics
and elastomer engineering, electrical engineering,and IT for system integration.
On September 1, 2023, twelve cooperative university students (five master’s students and sevenbachelor’s students) commenced a new training
program in the areas of industrial engineering, data
science, business administration, green technologies,
and electrical engineering at tesa SE's corporate
headquarters in Norderstedt. In addition, four new
trainees have started their training as lab chemists.
In 2024, tesa SE plans to set up another such training program. Our goal is to retain our trainees as
full-time employees. The retention rates for 2023
were 54 percent for Hamburg-Hausbruch and 100
percent for Offenburg.
Promising interns and student employees with outstanding performance have the opportunity to join
our “tesa Talents” network. This allows us to maintaincontact with, and create additional opportunities for,potential young hires. Our talent network consistedof 53 young professionals during the reporting year.

28

PeopleProducts

Sourcing

Diversity and equal opportunity
Different perspectives help us to understand theneeds of our customers better and simultaneously
serve to enhance tesa’s innovative spirit. As such,our human resources departments and managers
worldwide are committed to preventing discrimination in any form. We are dedicated to promoting
diversity and equal opportunity in all company
matters. This also includes making greater efforts
to ensure equal opportunity for all genders at alllevels of the company. The targets we have set forourselves at tesa SE are 30 percent women at thefirst level below the Executive Board and 35 percent
women at the second level by mid-2027.
In the context of hiring, we also prioritize the recruitment of people with different cultural backgrounds. Between December 2020 and December
2023, the proportion of employees with a nationality
other than German rose by 5.4 percentage points to10.8 percent. We want to strengthen this trend, andare pursuing this aim through measures such as
advertising all roles not covered by collective bargaining agreements exclusively in English.
We also support programs aimed at integrating
disadvantaged groups. In Norderstedt, we work withthe company Elbe Nord, which trains and employs
people with disabilities.

tesa sustainability report 2023

Occupational health andsafetyAs an international company with around 5,200
employees, we bear responsibility for the welfare of
employees and contractors. Our aim is for them tobenefit from the highest health and safety standards.
We are pursuing the goal of reducing the numberof workplace accidents to zero. We seek to prevent
work-related illnesses and strain through effective
measures. This concern pertains to both physicaland psychological strain.
We assess if and how we can make our company
workplaces even safer and more conducive to good
health on a regular basis. In this context, we rely on
prevention and targeted occupational health andsafety measures. We raise our employees' awareness of possible risks – for their own protection
and for that of their colleagues.

Occupational safety management
Our internal management system in the area of occupational safety is based on the relevant statutory
provisions as well as our Group-wide occupationalsafety policy (”tesa Policy on Occupational Safety
and Health”), adopted in 2022, which centers on
six key topics: crisis and emergency management,

health care, risk assessment and analysis, accident
prevention, fire and explosion prevention, and plantsafety. The occupational safety policy is expanded
through further internal preventive measures andspecific operating instructions. All employees are
required to be informed about safety risks andpotential hazards through measures such as corresponding training. In this way, we aim to promotecorrect and responsible behavior and thus to prevent accidents and hazards to health.
The occupational safety policy also applies equally
to subcontractors who handle tasks at our production sites. Corporate management works with theoccupational safety unit in the context of occupational safety committees and the annual management review to assess the accidents that occurred in
the course of a given year and initiate corresponding
measures to further improve employee safety andreduce occupational hazards to health.
Our occupational safety management activities
are focused on our ISO 14001-certified production
facilities, as the risks of accidents and adverse
health effects are greater there than at our officelocations. We have defined a demanding roadmap
in our sustainability agenda: By 2025, we intend for
all tesa sites that already have an ISO 14001-certified

Read more about ourcertifications here29

Strategy

Environment

environmental management system to also obtain
ISO 45001 occupational safety certification. The
headquarters of tesa SE in Norderstedt and tesa
Manufacturing Hamburg successfully completed theinitial certification in 2023. This means that six of ourseven sites are now certified under DIN ISO 45001.

Cooperation across locations: Global
Operations Safety Manager

PeopleProducts

Sourcing

Personal protective equipment
As a matter of course, tesa provides suitable personal protective equipment to all employees who
require it. In order to ensure that individual circumstances are fully taken into account, items ofequipment are selected jointly with the employees
in question.

In the interest of promoting international exchange
between the safety specialists at our sites, we haveestablished the new Global Operations Safety Manager executive position. Key occupational healthand safety risks are discussed, joint projects are
initiated, successes and experiences are shared,
and standards are defined in annual meetings heldby the Global Operational Safety team. This procedure contributes to the continuous improvement ofaccident prevention measures at tesa.

Documentation of workplace accidents
We use the accident frequency rate (AFR) to document all work accidents that result in at least
one lost day. In 2023, the AFR of documented
accidents with at least three lost days was 1.2 per
million hours worked across all sites (2022: 2.1).
This was significantly below the German industry
average (BG RCI, the statutory accident insurance
and prevention institution for the raw materials andchemicals industries) of 11.6 (2022).

2020

2021

2022

2023

Work accidents ≥ 1 day (number)

18

21

20

15

Accident frequency rate ≥ 1 day (number / 1 million working hours)

3.6

4.1

3.6

2.7

Work accidents > 3 days (number)

9

6

12

7

Accident frequency rate > 3 days (number / 1 million working hours)

1.8

1.2

2.1

1.2

Fig. 11: Occupational safety figures30

tesa sustainability report 2023
Preventive measures
All employees are required to take part in basic occupational health and safety training. Safety training
for external service providers is also conducted at
all sites on a regular basis.
Systematic and ad hoc risk assessments serve as
the basis for the selection and configuration of work
resources, work processes, and workspaces suchthat technical and organizational flaws are prevented
and employees can work in a manner which protects
their health and safety. Ad hoc assessments are
typically called for in cases such as the introductionof new or modified machinery, working facilities, orprocesses, since these can have an influence on
the health and safety of our employees. We combat
such risks through systematic safety measures suchas safety-focused acceptance processes before thecommissioning of new machinery and/or regularinspections.

Fire safety

Any new machines and systems purchased mustsatisfy provisions including our requirements pertaining to noise emissions. Noise levels are regularly
measured in the various operational areas of theplants. The use of some monomers in the polymerization process may result in unpleasant odorsthat can cause stress. The countermeasures we
employ include examples such as the use of special
attachments for air filter systems.

Handling hazardous substances andaccident risks
The handling of hazardous substances is also regulated in detail. The occupational safety unit works
with the Corporate Regulatory Affairs unit and the
responsible personnel from research & development
and production to create a corresponding structure
for tesa-specific processes on the handling, labeling,storage, and transport of hazardous substances.
Equipment and workspaces are inspected forsafety and sources of emissions at regular intervals. At many locations, preventive health exams
can be carried out directly on-site by the company
medical service.

In 2023, we continued to focus on fire safety
and carried out evacuation and fireextinguishing training at our plants. In a
fire-extinguishing drill at tesa headquarters,
participants learned about fire prevention
and what to do in the event of a fire under
the guidance of a specialist.

Occupational health and safety day
We carried out an occupational safety andhealth day at the tesa Manufacturing Hamburg
site in 2023. All employees had the opportunity to learn about subjects such as personal
protective equipment, noise exposure, andsecuring pinch points in machinery.

31

Strategy

Environment

PeopleProducts

Sourcing

Product sustainability
With innovative product solutions, we aim to offer
our customers technological progress paired withthe opportunity to make an active contribution
towards greater sustainability. To this end, weare increasingly using recycled and bio-basedmaterials in our products and packaging. Our goal
is for 70 percent of the materials in our products
and packaging to originate from recycled or biobased sources by 2030. At the end of 2023, we
already had a share of 24 percent. We also wantto cut the use of non-recycled fossil plastics by halfby 2030 (end of 2023: -16 percent).
The use of bio-based commodities and the reuseof materials serve to reduce the need for new
resources, and can thus make a significant contribution towards greater sustainability.

New labels
Many of our customers are pursuing greater sustainability for their own products and services. As such,they want to be able to choose between different
options in the supply chain and opt for more sustainable solutions. We are just as focused on the needs
and expectations of our customers as we are on ourown sustainability targets. With this in mind, we havecreated a label for our more sustainable products
for industrial customers. This helps to identify products with more sustainable characteristics within
our portfolio. The logo is used to mark all products
in our portfolio which fulfill clearly defined criteria,
in the interest of staying a step ahead in terms ofsustainability without compromising quality.

24%

of our product andpackaging materials
are recycled or biobased

Project sustainability assessment
In 2020, we established a tool in the form of our“project sustainability assessment” which allows us
to promptly assess projects in the area of productand technology development in regard to theircontribution towards greater sustainability. All new
development projects must undergo the assessment.
We use the results to manage our development
portfolio in a more targeted manner. As of the end of2023, 25 percent of ongoing development projects
were making a measurable contribution towards thefulfillment of tesa’s sustainability targets. During thereporting year, we launched a total of 40 productsthat could make a substantial contribution towards
greater sustainability on the market.

You can find more
information about productsustainability here32

tesa sustainability report 2023
Focus on customer needs
Every product – including those that offer sustainability advantages – needs a buyer looking for exactly
those qualities which the product offers. By aligning
our products with the needs of our customers, we
contribute towards helping them achieve their own
sustainability goals.

Examples from the Industry andConsumer divisions

A crystal-clear commitment to sustainability –tesafilm® Eco & Crystal now with 90 percent recycled
PET backing
From now on, the well-known tesafilm® will be more sustainable and will bejoined by the new “tesafilm® Eco & Crystal” line. The backing is made from
90 percent recycled PET, the adhesive mass from water-based acrylate, andthe roll core from 100 percent industrially generated residues from plastic
processing. The 90 percent PCR-PET (post-consumer recycled PET) content
in the backing material of the new tesafilm® Eco & Crystal has been externallycertified by UL-Solutions to the UL ECVP 2809-2 standard. The certificate for
the INGEDE Method 12 is also available. The product can therefore be disposedof with packaging in paper waste without risk to the paper recycling process.

Industry: Bio-based and PCR elements in the Electronics segment
In the Electronics segment, we launched eight new products in
2023 which expand the range of more sustainable products,
including double-sided film tapes, masking tapes, and electrically conductive adhesive tapes, and cover a broad palette ofapplications for consumer electronics. The new double-sided
PET tesa® 6887x range, for example, employs 75 percent biobased acrylic adhesive and 100 percent post-consumer recycled(PCR) PET backings and cover films. Thanks to our innovative
solutions, the tesa® 6887x range not only guarantees secureand reliable adhesion in various devices, but also contributes
towards our customers’ sustainability agendas.

33

Strategy

Environment

Consumer: tesa ecoLogo®
Since 2010, we have offered products including adhesive rollers, adhesive films, packing
tape, glue sticks, and correction rollers manufactured primarily from recycled or bio-basedmaterials under our tesa ecoLogo® sub-brand.
The packaging used for these products is
also largely recycled. This product range isalso manufactured entirely without solvents.
New products are added to the tesa ecoLogo
range on an ongoing basis. The new tesafilm® Eco & Crystal joined the product line
during the reporting year. This product is our
first to use a backing film that consists of 90
percent post-consumer recycled (PCR) PET
material and is certified accordingly under
the UL 2809 Environmental Claim Validation
Procedure (ECVP). The roll core also consistsof 100 percent recycled plastic.

PeopleProducts

Sourcing

course of the reporting period. We are also working on the further standardization and validationof our methodology. Partners we are cooperatingwith in this context include the European Adhesive
Tape Association (AFERA), which is supporting an
industry-wide harmonized calculation of productCO2 footprints.
We are also in dialog with our suppliers in thiscontext in the interest of improving the accuracyof our calculations with the help of the most comprehensive primary data possible. The data wecollect in this way is used for internal management
and accounting purposes as well as for customer
information. Life cycle analyses for various products
were carried out and, in some cases, externallyvalidated over the course of the reporting year.
We successfully had CO2 savings independently
confirmed for two products, for example. These
were the reusable adhesive tesa® Twinlock sleeves
for flexo printing processes and the improved
double-sided tesa® 4965 adhesive tape.
We identified and quantified specific sources ofemissions among our suppliers during the reporting period in the interest of improving ourown emissions balance sheet through appropriate
measures in a targeted manner (see Reduction ofemissions, p. 17).

Certifications

The entire life cycle at a glance
We take the end of the product’s useful life into
account even at the earliest stages of development, and we invest in research and developmenton this subject. One focus area in this context isremovable adhesives which allow attached parts
to be repaired or reused. Our adhesive solutions
can thus enable products to be repaired or reused.
In this way, we help customers to minimize theirown waste volumes and reduce greenhouse gas
emissions.
We also intensively analyze the CO2 footprint our
products leave. To this end, we have continuously
expanded our databases in which all significant raw
materials and packaging materials are linked withprimary and secondary emissions factors over the34

tesa has adopted the goal of increasing the shareof bio-based/recycled materials to 70 percent by
2030 (end of 2023: 24 percent). Reliable guarantees of origin with high-quality certifications playa crucial role in this context. Since 2019, we havesourced materials from responsible, sustainable
forestry enterprises. This is what the FSC® seal
represents. This label is awarded by the independent Forest Stewardship Council® and is the bestknown symbol of responsible procurement of woodand paper worldwide. In the area of packaging,tesa aims to have at least 80 percent of products
certified accordingly. We are also continuously
launching new FSC®-certified products on the market.

tesa sustainability report 2023

FSC® certificates are also awarded at thelevel of entire locations. tesa SE has been
FSC®-certified since 2019, as have our plants
in Suzhou (China), Concagno (Italy), Offenburg,and Hamburg (Germany). Our plant in Vietnam
joined the list during the reporting year. The
first seven European sales organizations werealso certified. We will continue pursuing certifications for more sites in the future.
.

The ISCC-certified biomass balance sheet
is helping to increasingly replace fossil fuelbased raw materials with bio-based ones,
to conserve CO2 emissions, and to advancethe sustainable transformation of our manufacturing activities. We have converted theadhesive for tesa® 4965 Original Next Gen
to mass-balanced raw materials. Together
with the conversion to recycled backing film,
this has resulted in CO2 savings of 40 percent
relative to the previous.

Optimized packaging
We want to make packaging more sustainable –beyond the extent of typical optimizations. In thecase of fiber-based packaging materials such as
paper and cardboard, our goal is to reach an FSC®
certification rate of 80 percent by 2025. We arealso aiming to use 50 percent less non-recycled
fossil fuel-based plastic in our packaging by 2025
(relative to 2018). We achieved further progress
towards these targets during the reporting year. At
our Offenburg plant, for example, we have replaced
50 percent of the polyethylene (PE) shrink film usedwith equivalent PCR material. At our Hamburg andOffenburg plants, PE roll packaging bags and film
tubes have consisted of 80 percent and 40 percent
PCR material, respectively, since 2023.

Learn more abouttesa® 4965 Original
Next Gen heretesa® 4965 Original Next Gen

2023 saw the Hamburg plant become our first site
to be certified under the ISCC PLUS (”International
Sustainability and Carbon Certification”) standard.
ISCC PLUS offers a framework for ensuring the sustainability, traceability, and responsible procurementof biomass and bio-based raw materials along the
supply chain and provides transparent guidelines
for companies using the mass balance approach.
The tesa plant in which tesa® 4965 Original Next
Gen is manufactured is certified under ISCC PLUS
in order to ensure that tesa can apply the mass balance approach correctly and transparently and thatsufficiently biomass-balanced adhesive components
are used along the supply chain. We route partiallybio-based raw materials, e.g. from agricultural waste,
into the previously fully fossil fuel-based production
process.

35

Strategy

Environment

PeopleProducts

Sourcing

Product safety
Our goal is to manufacture and distribute productsthat satisfy the highest quality and safety requirements and conform to the diverse expectationsof stakeholders. All tesa production facilities havecertified management systems in line with quality
requirements, standards and regulations recognizedworldwide. In addition to the applicable laws andregulations, we adhere to the requirements of ourinternal Product Safety Guidelines. These describe
mandatory measures enabling us to further increase
the safety of our products.

Product Safety Officer
Product safety management is an essential component of quality management at tesa and is codirected by corporate management. Each of ourplants worldwide has a Product Safety & Conformity
Representative (PSCR) who reports to the corporate
officer responsible for product safety (Corporate
PSCR). All PSCRs must undergo accredited external training. PSCRs are typically also the quality
officers of their plants. Our Corporate Regulatory
Affairs department is responsible for assessing thematerials and substances used in our products. As
a general rule, there is an information sheet (e.g. a36safety data sheet) for each product which contains
safety-related information on aspects such as materials and substances, proper storage and handling,
and recommendations for disposal.

tesa sustainability report 2023
Risk assessments

AuditsThe prevention of product defects is a key priority
for us. For this reason, the Product Development andProduction departments conduct risk assessments or
failure mode and effects analyses (FMEA) for every
new project. This helps them to identify potential
defects in design, production, or even product instructions, e.g. inaccurate instruction manuals, during
the product development process. Once products
are already on the market, our business units continue to monitor them. If these units determine that anadditional risk analysis and evaluation or additionalor new measures are required, they initiate thenecessary steps to ensure the health and safety of
our customers and employees.

Under the auspices of our quality management
system, our sites are subject to internal and external
audits for conformity with ISO 9001 and IATF 16949.
Our Quality Management department and productsafety officers are responsible for our internal audits.
Audits are carried out regularly as well as on an ad
hoc basis. They assess product development andproduction, as well as further areas where necessary.
In the year under review, the production facilities of
the tesa Group were once again successfully audited
in line with globally recognized quality requirements
and standards. In particular, IATF 16949 certificationassesses the conformity of all products, processes,
systems, and services, as well as product safety.

37

Strategy

Environment

Supply chain
We prioritize long-term relationships with business
partners who share our principles for sustainable
and responsible business management and adhere
to them in a verifiable manner. As an international
company, we procure raw materials, products, andservices through global supply chains. By working
closely with actors within these supply chains, weseek to establish trusting long-term partnerships
with fixed suppliers. Our goal in doing so is toensure high product quality, security of supply,
and joint development towards compatible sustainability targets.

PeopleProducts

Sourcing

Human rights
If minimum social standards are not observed, thenthe safety, health, and well-being of employees isjeopardized. The same applies in regard to people
in the value chain. In addition to significant reputational losses, the entry of the German Supply Chain
Due Diligence Act (LkSG) into force means thatcompanies may also face fines for human rights
violations. In addition to the legal requirements ofhuman rights due diligence obligations, our own
high standards also contribute towards ensuring that
we conscientiously reevaluate the risk of violationsof the observance of human rights among our employees and in our supply chain on an annual basis.
A cross-functional task force of employees from our
Procurement, Compliance, Legal, and Sustainability
units is preparing our internal processes for additional requirements under the new law, and we are
adopting precautionary measures to ensure that
all human rights measures are taken into account.

70%

of our spend goes tosuppliers who haveundergone a sustainability assessment.

Our own “Human Rights Policy Statement” constitutes a voluntary commitment and a pledge toadhere to the principles of the “United Nations
Global Compact” (UNGC) and other frameworks
pertaining to our own business activities andcooperation with business partners such as theUN’s “Universal Declaration of Human Rights”, theconventions of the International Labour Organization(ILO), and the “OECD Guidelines for Multinational
Companies”, as well as other country-specific regulations and official requirements.
As a responsible company, tesa rejects any formof human rights violations; any reported violations
are dealt with immediately. We reserve the rightto terminate business relationships in the event ofserious violations.

38

Here you can learn
more about responsible sourcing

tesa sustainability report 2023
General requirements and dealing withviolations
We require our business partners to fulfill our standards and to pass them on to their upstream supply
chains. This pertains to both the required productquality and to transparent, fair, and responsible
business practices. In the event that we identify
violations of our standards, we proceed as follows:First, we prepare mandatory corrective measures
for the parties in question. If we are then unable toidentify any improvements, we reserve the right totemporarily or permanently terminate business relationships. In this way, we would like to ensure thatour business partners fulfill their social, ecological,
and economic responsibilities.
The provisions underpinning our global purchasing
processes are set out in our Purchasing Compliance
Guidelines (PCG), which form part of the Group-wide
Compliance Manual and contain binding rules ofconduct for tesa as a purchasing company. We reevaluate these guidelines on an ongoing basis. From2024 onwards, the guidelines will apply to all tesasites worldwide as the “Global Procurement Policy.”
Suppliers who deliver directly to us are required
to sign the Code of Conduct for Suppliers (CoCfS),
which sets out fundamental rules and obligations in
the area of human rights, labor standards, environmental protection, and corruption prevention. In
view of the new German Supply Chain Act (LkSG),
we expanded the CoCfS during the reporting year
and attributed even greater relevance to the topic
of human rights. The new COCfS has been in effectsince April 2023. Our buyers are trained on thePurchasing Compliance Guidelines, the Code of
Conduct for Suppliers, antitrust compliance, andsustainability.
.

Transparency in the supply chain
We aim to incrementally improve the transparency
and sustainability of the supply chain. Since 2020,
we have been inviting direct suppliers to undergo
a self-assessment via EcoVadis. This allows themto demonstrate the extent to which they adhere
to human rights, fair working conditions, and environmental aspects and responsibly produce andprocure their products, raw materials, and services.
As of the end of 2023, EcoVadis self-disclosure information was available for 70% (2022: 54%) of ourdirect purchasing volume. We intend to gradually
increase this share over the years ahead: Our goal
is to have self-disclosure information available fora total of 80% of our direct purchasing volume by2025. During the reporting year, we took anotherstep towards this target by establishing a two-stage
screening process in line with the EcoVadis Scorecard, a rating tool for assessing the sustainabilityof suppliers. Roughly 8,200 suppliers have alreadybeen screened. In the upstream first step, our Procurement and Sustainability departments annuallyassess whether a more in-depth risk analysis of a
supplier is necessary. Together with country- andindustry-specific risks, our annual purchasing volume
also plays a role in the corresponding classificationof risk on a scale from ”very low” to ”very high.”  

39

Strategy

Environment

We also regularly invite our buyers and suppliers
to undergo online training offered by EcoVadis onvarious aspects of sustainability. In the event that
suppliers exhibit risks according to our two-stage
evaluation, we initiate risk minimization measures.
Suppliers exhibiting a particularly high degree ofrisk are subject to audits under the SMETA 4-pillar
protocol. Our goal is to ensure that 80 percent of
our total purchasing volume is directed solely tosuppliers who have an EcoVadis rating of at least 45
points and meet our requirements for responsible
supply chains overall by 2030.

40

PeopleProducts

Sourcing

Fig. 12: Coverage direct spend through EcoVadis
in %

70

80

54
43
31

2020

2021

2022

2023

2025
targetRisk assessment
All of our suppliers undergoscheduled annual screening.
We also conduct event-driven
audits, for example when onboarding new suppliers. Country- and industry-specific risks
are identified in this context.
Purchasing volume is a factor
in the classification of risks
into six categories on a scalefrom ”very low” to ”very high.”
Factors such as strategic relevance also play a role, such as
when dealing with a supplier ofan important raw material or asingle-source supplier.

tesa sustainability report 2023

41

Sustainable Development Goals Index
We contribute to the following SDGs and their corresponding targets:

SDG

SDG targets

Our contribution

In thisreport5.5: Ensure women’s full and effective participationand equal opportunities for leadership at all levelsof decision making in political, economic, andpublic life

At tesa, all employees have the same opportunities - regardless of gender, age, origin,sexual orientation or religion. tesa is also committed to gender equality within the workforce and in management positions. By mid-2027, 30 percent of the first managementlevel and 35 percent of the second level are to be filled by women.

Page 28

7.2: By 2030, increase substantially the share of
renewable energy in the global energy mix

Since the end of 2020, renewable energy sources provide 100 percent of the electricity
purchased for all tesa sites worldwide. We are supporting the development of renewable energy by purchasing green electricity. In the future, we want to rely more on theuse of renewable fuel sources, such as biogas for our CHP systems.

Pages
16–20

7.3: By 2030, double the global rate of improvement in energy efficiency

The production facilities in Hamburg, Offenburg and Italy as well as our headquarters
are certified according to ISO 50001 for energy efficiency. The introduction of the energy
management systems paved the way for further increasing the energy efficiency of ourfacilities. Another strategic approach for tesa is the use of energy and resource-saving
technologies. This includes the efficient generation of our own energy through cogeneration and photovoltaic systems.

Page 16

8.4: Improve progressively, through 2030,
global resource efficiency in consumption
and production and endeavor to decouple
economic growth from envi­r onmental degradation, in accordance with the ten-year
framework of programs on sustainable consumption and production, with developed countries
tak­ing the leadOur products should be as harmless as possible to the environment over their
entire lifecycle. During development and manufacturing we take care to ensure
resource efficiency and to avoid production waste as much as possible. Measures
to this end are an integral part of our environmental protection activities as a company.
70 percent of the materials for our products and packaging should be made from recycled or bio-based materials by 2030. Reducing and avoiding packaging material also
helps to minimize waste and thus negative effects on the environment. For example,
we will halve the use of non-recycled fossil-based plastic in our packaging by 2025.

Pages
22–23
32–35

8.8: Protect labor rights and promote safe andsecure working environments for all workers,
including migrant work­ers, in particular women
migrants, and those in precarious employment

As a responsible employer, we see it as our duty to protect our employees fromrisks and hazards in the exercise of their activities. With a wide range of measures,
we contribute to preventing accidents and occupational illnesses. We have createda supplier program to increase transparency in our supply chain. We ask direct suppliers
to share their sustainability per­formance with us.

Pages
29–31

You can learn more
about our guidelines
and standards here

SDG

SDG targets

Our contribution

In thisreport12.2: By 2030, achieve the sustainable
management and efficient use of natural
resources

tesa develops eco-friendly, solvent-free production methods, and uses bio-based andrecycled raw materials wherever possible and sensible. We take care to ensure resource
efficiency and avoid production waste from the early stages of developing our products
and the methods used to produce them. By using raw materials with FSC®certification,tesa also supports sustainable and responsible forest management. Many of our products
are therefore already FSC® certified (FSC ® C148769).

Pages
22
34

12.4: By 2030, achieve the environ­men­tally soundmanagement of chemicals and all wastes throughout their life cycle, in accordance with agreed
international frameworks, and significantly reduce
their release to air, water, and soil in order tominimize their adverse impacts on human healthand the envi­ronment

There is no way to eliminate all waste when producing goods. Our waste and raw materials management activities are geared toward using materials efficiently and recycling
wherever possible. Therefore, we constantly work on minimizing production-related
losses in the raw materials we use. tesa recycles almost all non-hazardous waste andhazardous waste containing solvents. By 2025, no production waste is to be disposedof in landfills (zero waste to landfill).

Pages
22–24

13.1: Strengthen resilience and adap­tive capacity to climate-related hazards and natural disasters in all countries

We have set ourselves the target of reducing our Scope 1 and Scope 2 emissions by
30% in absolute terms by 2025 compared to 2018. We have already achieved thistarget in 2023. We want to achieve climate-neutral production by 2030. This goalis in line with the state of science (Science Based Targets initiative) to limit global
warming to 1.5 degrees Celsius. Scope 3 emissions are to fall by 20 percent in absolute terms by 2030 compared to 2018. We are aiming to achieve a completely
climate-neutral business model by 2050 at the latest.

Pages
7–19

15.1: By 2020, ensure the conservation,
restoration, and sustainable use of ter­res­trial andinland freshwater ecosystems and their services,in particular forests, wetlands, mountains, anddrylands, in line with obligations under international agreements

We aim to use water responsibly. Our primary concerns are using water
efficiently and protecting it against contamination. Every year, we keep track at our
production facilities of water data such as water consumption and effluent quantities andalso perform a regular water risk assessment. We also report the results through CDP.

Page 24

16.5: Substantially reduce corruption and bribery in all their forms

We reject any form of corruption, bribery, or other forms of unlawful conduct. Corruption prevention is one of tesa’s Core Compliance Fields and plays a central role in the
Compliance Management System.

Pages
14–15

Imprinttesa sustainability report 2023

Publishertesa SE
Hugo-Kirchberg-Straße 1
D-22848 Norderstedt

Contact Persons

Directorial Lead
Thorsten Sperlich
Chief Sustainability Officer
Dr. Stefan Röber
Editorial Director
Henrike Riemann
Art Director
Sandy Aileen Eggers
Text
Dr. Isabel Überhoff
Christian Behrendt

Contact
tesa SE
Corporate Communications
Tel.: + 49 (0) 40 888 99 0
responsibility@tesa.com
https://www.tesa.com/en/about-tesa/
sustainability

DesignB&E Bild und Ernte GmbH,
Hamburg

tesa.comtesa.com