Sustainability Report2023

ams-osram.com

Report Profile

Company Profile

Sustainable Corporate Governance and Integrity

Environment and Climate Protection

Society

Responsibility to Employees

AppendixContents
Foreword
1.0

2.0

Report Profile
Company Profile

4.0

Environment and Climate Protection

6.0

Responsibility to Employees

4.1

Environmental Management

23

6.1

Our Human Resources Work

46

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

4.2.2

Renewable Energies

25

6.4

People Development

53

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

7.0

Appendix

2.1

Our Company

6

4.3

Circular Economy

30

2.2

Our Portfolio

7

4.3.1

Resource Efficiency

30

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

4.4

EU Taxonomy

34

7.3

EU Taxonomy KPIs

67

7.4

TCFD Recommendations

70

7.5

Imprint and Contact

73

3.0

Sustainable Corporate Governance and Integrity

5.0

Society10

5.1

Respect for Human Rights

38Implementing 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

3.1

Sustainable Corporate Governance

10

3.1.1

Core Values

10

3.1.2

Executive Bodies of the Company

3.2= Reference to external websites

ams OSRAM Sustainability Report 2023

= Reference within this document2

Report Profile

Company Profile

Sustainable Corporate Governance and Integrity

Environment and Climate Protection

Society

Responsibility to Employees

Appendix

Foreword
Dear Readers,
In 2023, as we witnessed new records being set for extreme weather events, the needfor 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 challenges: 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 tothe market that improve the quality of life in terms of health, safety, and mobility, andthus 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.

ams OSRAM Sustainability Report 2023

We view sustainability not only as an important pillar of our “license to operate,” butabove 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 therealignment, 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 theseobjectives in this report, ensuring their implementation by defining measures andmeasuring their success.
We place particular emphasis on the issue of climate change. There is no doubt thatas 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% throughefficiency measures, and our electricity supply is to be converted to 100% renewableenergy.
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, 20243

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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 tomitigate negative effects on the environment and society and to reinforce positiveeffects.
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 meetthe increasingly stringent reporting requirements in accordance with future regulations such as the Corporate Sustainability Reporting Directive (CSRD) or the EU Taxonomy 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).

— 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 therules for financial reporting.
Portfolio Changes
The following portfolio changes are taken into account in this sustainability report:— Macroeconomic and sector-specific developments are examined in theams 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(headcount) on the reporting date.

Unit

Part of Reporting

Sale of Clay Paky S.p.A.

no longer included from March 1, 2023

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

no longer included from August 1, 2023

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

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

complete, no longer included from
September 1, 2023

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

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 Consolidated Financial Statements 2023.

KPMG Austria GmbH Wirtschaftspruefungs- und Steuerberatungsgesellschaft carriedout a limited assurance review of the German PDF version of the report in compliancewith 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 athttps://ams-osram.com/about-us/sustainability.

— Financial data are presented in the Sustainability Report in EUR millions, rounded
to the closest million.

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

— Rounding differences may occur in tables when totaling rounded amounts andpercentages.

— In keeping with the consolidated financial statements, the reporting period for the2023 Sustainability Report is from January 1 to December 31, 2023.

— 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.

1	Unaudited and therefore not part of the audit mentioned under “General Information on Reporting.”

2	For KPIs relating to 2020, it should be noted that OSRAM activities for the entire 2020 calendar year have been
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.

ams OSRAM Sustainability Report 2023

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

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2.0
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Appendix

Our Company
Our Portfolio
Impact of Our Business Model
Our Products’ Contribution to the SDGs

ams OSRAM Sustainability Report 2023

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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 onthese, which are marketed via a global sales network.
The operational implementation of the business primarily takes place through thetwo 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).
Geographically, our corporate activities are split into three regions or regional markets: “EMEA” (Europe, the Middle East, and Africa), “The Americas” (North and SouthAmerica), 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 company, 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 Shareholders, and can also be viewed at the Disclosure Office. There were no cross-shareholdings during the reporting period ams OSRAM Annual Report, Corporate Governance, 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 conflicts and crises are reported in various places in the 2023 Annual Report.

ams OSRAM Sustainability Report 2023

ams OSRAM at a Glance1
KPI

Unit of reported KPI

2021

2022

2023

Employees (average; FTE)

Average number of employees

26,13023,322

20,530

Employees (headcount as of December 31)

Headcount as of December 31

24,49922,461

20,378

thereof outside Austria

23,125

21,101

19,059thereof Austria

1,374

1,360

1,319

Total revenue in millions of EUR

5,038

4,819

3,590

thereof EMEA

Revenue by region in millions of EUR

1,413

1,455

1,053

thereof Americas

Revenue by region in millions of EUR

962

849

755

thereof Asia/Pacific

Revenue by region in millions of EUR

2,663

2,515

1,783

thereof Semiconductors

Revenue by segment in millions of EUR

3,279

3,167

2,425

thereof Lamps & Systems

Revenue by segment in millions of EUR

1,760

1,652

1,165

R&D expenses

in millions of EUR

692

630

480

Total assets

in millions of EUR

9,644

8,832

7,401

Equityin millions of EUR

3,150

2,833

1,905

Equity ratio

Equity in percent of total assets

33%

32%

26%

Production site

Number of locations with own production (globally)

23

20

18

Subsidiaries

Number of subsidiaries (globally)

117

99

86

Countries with business activities

Number of countries with subsidiaries and participations consolidated in the financial statements

43

40

39

Revenue
Revenue (regional split)

Revenue (segments)

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 fromthe 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 ourend 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 andams OSRAM Annual Report, Management Report, 3 Research and Development.

ams OSRAM Sustainability Report 2023

The products and solutions for which end customers use semiconductors often havepositive 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, areneeded 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 existingand potential impacts of its business activity on people and the environment and, byextension, on key stakeholders such as employees or users, and how negative effectsof 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 inthe 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 alreadybeen 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 productportfolio. 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.

Environment and Climate Protection

Society

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Appendix

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

Industrial & Medical

Consumer

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

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

Vital sign monitoring for several health measurements, very small and energy-saving device designIntelligent 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 moreautonomous future mobility
Circular LED modules for automotive lighting

Horticulture LEDs for a better yield, less resourceand energy usage, enables vertical farming
High-performance medical imaging for better quality/diagnostics with lower radiation for patients anddoctors
Cutting-edge LEDs for high-performance lightingwith low energy use

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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3.0
Sustainable
Corporate Governanceand Integrity

Environment and Climate Protection

Society

Responsibility to Employees

Appendix

Sustainable Corporate GovernanceCore 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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3.1 Sustainable Corporate Governance
For ams OSRAM, responsible corporate governance is an essential foundation forachieving the corporate goals and robust growth in the value of the Company in thelong 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 forinternational 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, integrity, and diversity at our Company. These values and principles form the basis of ouractions and our leadership style, as well as the decisions we make. They are anchoredin 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 companies1, and international agreements on human rights, anti-corruption, and other areasof responsible corporate governance. All employees undertake to comply with the
CoC when they start working for the Company. The CoC basically summarizes how welive up to our ethical and legal responsibility as a company. We respect each individual’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 businessactivities, our supply chain, or our products in our Human Rights Policy.

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.

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

Potential risks and violations of our principles regarding human rights, labor conditions, and environmental protection, both in our own business area and at our suppliers, can be reported via the “Tell ams OSRAM” whistleblower system. We reporton violations and how we deal with them in the relevant chapters, each of which arein the “Action Taken, Results, and KPIs” section: on breaches of labor conditions andhuman 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.

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.

3.1.2 Executive Bodies of the Company
Corporate governance at ams OSRAM is shaped by the dual management systemapplicable under Austrian stock corporation law, consisting of a Management Boardand 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 andSupervisory Board can be viewed on the Company’s website (see “About us” in thenavigation 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 memberof 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

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 andits 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 topics. 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 theSupervisory Board. It works closely with the Audit Committee, which also deals withsustainability-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 forManagement 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 thoseareas Charter of the ESG Committee.

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 theAustrian Corporate Governance Code and developments in the respective regulations applicable to international
investors and advisors on voting rights.

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Two-Tier Board Structure of ams-OSRAM AG1
Management Board

Supervisory Board

Management body

Close cooperation for the benefit of the Company

Composition:— 2 male members, one of whom with Dutch and
one with German nationality

Supervisory body
— 7 committees— ESG Committee with focus on sustainability

Informs and reports to— Both members are older than 50 years

Composition:— 12 members (8x shareholders; 4x employee representatives)— 7 male and 5 female members

Appoints, advises, supervises, approves— Nationalities: 6x Austrian, 2x Singaporean, 1x each German, Malaysian,German/Austrian, and USA/German— Age structure: 2 members are between 30 and 50 years old;
10 members are over 50 years oldreports togrants formal approval toreports to

Annual General Meeting— Each share corresponds to one voting right— Decisions, e.g. on the ratification of the acts of the Management Board and Supervisory Board, election of the auditors, appropriation of profits— At the Annual General Meeting (general debate), the Management Board and Supervisory Board respond to questions from shareholders

1 Status quo at the time of report release by the Management Board.

ams OSRAM Sustainability Report 2023

elects and grants formal
approval toSociety

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Appendix

The Supervisory Board regularly assesses the effectiveness of its work, as it did in
2023, and incorporates its findings in its future working methods. The next self-assessment is planned for 2024. In the 2023 fiscal year, too, the new members of the Supervisory Board attended compliance training, focusing on capital market compliance, aspart of the onboarding process. In addition, individual Supervisory Board members
took part in individual training measures, such as further training in the ESG environment. The members of the Supervisory Board also completed training on current
developments in the area of corporate governance in the 2023 fiscal year.
The attendance rates of Supervisory Board members at plenary and committee meetings are reported individually in the Annual Report ams OSRAM Annual
Report, Corporate Governance, Supervisory Board.
Composition of the Supervisory Board
The composition of the Board should be characterized by a broad mix of professional
qualifications as well as diverse personal characteristics of its members such as age,gender, and cultural background. Details are outlined in a skills profile based on threepillars, developed by the Supervisory Board, which is published in the principles for
the Composition and Diversity of the Supervisory Board Board Composition andDiversity Policy.
Independence of the Supervisory Board
As part of the elections of shareholder representatives to the Supervisory Board by
the 2023 Annual General Meeting on June 23, 2023, and the Extraordinary General
Meeting on October 20, 2023, all candidates standing for election submitted a declaration in accordance with Section 87 (2) of the Austrian Stock Corporation Act prior totheir election, in which they also declared their independence with regard to the exercise of their mandate.

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The Supervisory Board has also defined principles for its composition, which detailspecific requirements regarding the independence of Supervisory Board members.
Generally speaking, a member of the Supervisory Board is deemed to be independent if they have no business or personal relationships with the Company or its Management Board that would constitute a material conflict of interest and therefore becapable of influencing the member’s behavior. This requirement must be fulfilled at all
times by every member of the Supervisory Board. Details of the independence criteria
can be found in the policy mentioned in “Composition and Diversity of the Supervisory Board.”
The employee representatives on the Supervisory Board have an employment relationship with ams OSRAM, but no further restrictions of their independence are
known. Should any conflicts of interest arise for members of the Supervisory Board,they must be disclosed to the Chair of the Supervisory Board. If these turn out not to
be temporary, the Supervisory Board member in question should resign their seat. No
such conflicts of interest were registered in the 2023 fiscal year.
Business relationships with related parties (members of the Management Board andSupervisory Board) are reported on in the latest ams OSRAM Annual Report, Notes
to the Consolidated Financial Statements, 28 Related Parties.
Remuneration for the Management Board and Supervisory Board
The Supervisory Board decides on the remuneration system for the Management
Board by determining appropriate remuneration policies. These are then presented to
the Annual General Meeting for a vote. This procedure ensures that the Management
Board’s remuneration is commensurate with the Company’s financial performanceand with remuneration in similar positions in the semiconductor and technology sector. It must also support business strategy and the Company’s long-term development. In principle, the remuneration policy must be presented to the Annual General
Meeting for a vote at least once every four fiscal years and each time there is a sig-

Environment and Climate Protectionnificant change. At the Annual General Meeting on June 23, 2023, a fundamentallyrevised version of the Management Board’s remuneration policy was presented to theshareholders and approved by the Annual General Meeting. In particular, the feedback from ams OSRAM shareholders was taken into account. The Supervisory Board’s
Remuneration Committee, supported by an external independent consultant, conducted the review. This new remuneration policy came into force retrospectively fromJanuary 1, 2023, for all new Management Board service contracts to be concluded
and extended (“new contracts”) Remuneration Policy. In the 2023 fiscal year, theremuneration policy approved by the Annual General Meeting on June 2, 2021, continued to apply to existing Management Board service contracts (“old contracts”).
The remuneration of the Management Board of ams-OSRAM AG consists of fixed andvariable remuneration components. The fixed components comprise a basic salary
as well as benefits in kind and fringe benefits, while the variable remuneration components consist of a performance bonus and the LTIP (Long Term Incentive Plan). In
addition, malus and clawback regulations and a share ownership guideline are key
components of the Management Board’s remuneration policy. The ratio of remuneration between the Management Board and the workforce is disclosed in the Annual
Report ams OSRAM Annual Report, Remuneration Report, Change in Remunerationof the Management Board Compared to the Workforce.
As already announced in the 2022 Sustainability Report, the new remuneration policy
also includes the anchoring of an ESG-related target in the newly defined long-term
remuneration component (LTIP). ESG-related targets are taken into account with aweighting of 20%. The Remuneration Committee has the option of setting ESG targets
for each tranche of the LTIP based on a catalog of criteria, taking into account thecurrent priorities of the sustainability strategy. For the 2023 fiscal year, a Scope 1 andScope 2 CO2 emissions reduction target in line with the Company’s sustainability andclimate strategy was included in the LTIP program, with a weighting of 20%.

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In principle, under the current remuneration policy the members of the Management
Board do not receive any sign-on bonuses. Regulations on payments in connection
with the termination of Management Board contracts are contained in the current
remuneration policy.
The remuneration of the Supervisory Board is regulated in the aforementioned remuneration policy for the Supervisory Board. It consists of a standardized basic remuneration; annual bonuses and share options are not granted. In view of the broader
scope of activities and greater responsibility, the Chair of the Supervisory Board, theDeputy Chairperson, and members who chair a committee receive a higher basic
remuneration than other Supervisory Board members. The employee representatives
on the Supervisory Board perform their function on an honorary basis in accordancewith Section 110 (3) of the Labor Constitution Act (ArbVG) and do not receive any
remuneration.
Key Topics of the Board regarding Sustainability in 2023
Following its inaugural meeting, the ESG Committee met a further three times in 2023.
In particular, the committee dealt with the sustainability strategy, the integration of
ESG targets into Management Board remuneration, the results of sustainability ratings, sustainability reporting for the 2022 fiscal year, the further development of sustainability reporting, and the key sustainability topics for ams OSRAM. The Supervisory Board was regularly informed about the work of the ESG Committee.
Sustainability-related topics were regularly discussed at Management Board meetings, focusing in particular on the implementation of the sustainability strategy andthe challenges of future reporting obligations in accordance with the CSRD.
The Sustainability Council1 met twice in 2023 and dealt with the sustainability strategy
and the future reporting obligation in accordance with the CSRD.

¹	The composition and involvement of the Board in sustainability management are shown in the “Governance Framework for Sustainability” ( 3.2.1 Organization and Structures) diagram.

ams OSRAM Sustainability Report 2023

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Environment and Climate Protection

Society

Responsibility to Employees

Appendix

3.2 Implementing Sustainability within the Company
3.2.1 Organization and Structures
Governance Structure of Sustainability
Supervisory Board
ESG Committee

Audit Committee

Management Board

Sustainability Council as partof Management Team1(coordination:
Sustainability Department)

Sustainability Department(reporting to the CFO)

Cross-functional working groups for focus topics

Strategy and reporting(Sustainability Department)1	The ams OSRAM Management Team consists of two Management Board members, the business unit heads, and theheads of certain corporate functions.

ams OSRAM Sustainability Report 2023

The topic of sustainability and the associated requirements from our key stakeholders
such as customers, the capital market, or legislators are evolving at a very dynamic
pace. A special governance framework is in place to manage company-wide sustainability activities. This includes all relevant functions and business areas and covers theimplementation of the sustainability strategy 3.2.3 Sustainability Strategy as wellas progress updates. Proposals for decisions are prepared by the individual working
groups and are presented to the Management Board by the Sustainability Council
for approval. The Management Board reports significant decisions to the Supervisory
Board and its Committees responsible for sustainability 3.1.2 Executive Bodies of
the Company, Supervisory Board.
The Sustainability Department is involved in all aspects of our sustainability activities.
Together with the Sustainability Council, it also supports and advises other departments
in integrating sustainability into their areas of responsibility. The sus­tainability teamalso works to raise awareness of sustainability issues throughout the organization.
Responsibilities and processes for sustainability were documented in 2022 in a Sustainability guideline. To summarize the key principles, a Sustainability Policy was also
published Sustainability Policy.

3.2.2 Materiality Analysis
In 2021, a materiality analysis was undertaken as the basis for reporting and fordeveloping the sustainability strategy. This analysis rated individual topics for theirrelevance to stakeholders of ams OSRAM and their potential and actual positive or
negative effects on the environment, people, and society. The significance of the topics for the course of business was also included as a third dimension. Therefore, themateriality analysis covers not just the requirements of the GRI Standards, but also
takes into account the future European reporting obligation in accordance with CSRD.
Further information is provided in Chapter 3.2.4 Dialog with Stakeholders.

The process of the materiality analysis carried out in 2021 was subdivided into fourphases and was designed in such a way that it meets the requirements describedabove.
— Phase 1: Potential topics including their potential impacts were identified within
ams OSRAM’s area of responsibility. The basis for this was provided by an analysis
of competitors, customer and capital market requirements, relevant global standards, and foreseeable regulatory projects. Sector-specific topics were taken into
account for every value creation stage.
— Phase 2: These identified topics were then divided by the Sustainability Council
into focus topics in accordance with their ESG relevance (see diagram “Material
Topics and Contents of the Report”).
— Phase 3: By means of a questionnaire, these topic areas were assessed by internal
experts (representatives of relevant central functions, operations, and the business
units) at the Company with regard to their potential and actual positive and negative impact as well as opportunities and risks.
— Various perspectives were included in the assessment: stakeholder relevance, theCompany’s impact on the environment and society (inside-out), and the impact on
the Company (outside-in). The internal experts included the perspectives relevantto their respective topics in the questionnaires.
— Phase 4: The results of the questionnaire were then discussed with the experts in
two workshops and prioritized based on their significance and potential impact.
The results of the materiality analysis were presented to the Management Board andapproved by it. The Supervisory Board was also informed about this. The key issues
are presented to both bodies again each year. Both bodies are informed of any significant changes that arise during the annual review. The material topics are shown inthe diagram on the following page.

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The matrix presentation provides an overview of the prioritization1 of the material topics based on the three dimensions of stakeholder
relevance, impact of the Company on the environment and society (inside-out), and impact on the company (outside-in).

All the topics defined as material are covered by this Sustainability Report. In some instances, they
have been summarized, producing the following classification of the material topics:

Results of the Materiality Analysis

Material Topics and Contents of the Report

7
Labor conditions2

Water

Resource use and circular economy

601

Impacts on society and environment

5

Climate change

Human rights

Waste

Biodiversity and ecosystem services

Integrity andaccountability

Citizenship

EnergyGeopolitics

Product
stewardshipResource use andcircular economy

4

Water

Other air emissions & pollution
3

Waste

Labor conditions
2
Human rights

Product stewardship

1

1

2

3

4

5

6

7

Impacts on businesshighEnvironmental topics

Integrity andaccountability

Geopolitics

Grey area defines the material topics
Stakeholder relevance: low

Social topics

Governance & economic topics

CONTENTS OF THE REPORT

0403

FOCUS TOPICS( 3.2.3 Sustainability Strategy)

MATERIAL TOPICS

Climate change

EnergyHazardous substances302Greenhouse gas emissions, climate
strategy, and climate protection
Energy efficiency, green techdevelopment, use of renewable andnon-renewable energies

STRATEGIC ADDED VALUE FORSTAKEHOLDER GROUPS(see Company strategy
3.2.3 Sustainability Strategy)
Shareholders

ClimateCustomers
Society

Handling of critical sub­stances,
resource use and efficiency
Water use/consumption

Appendix

Customers
Circularity
Society

Waste for recycling/disposal
Diversity, compliance with corporate
principles such as right to freedomof association and collective agreements or anti-discrimination,
occupational health and safety,
fair remuneration, other benefits
granted by the employer, people
development

Labor conditions& diversity

Employees

Duty of care regarding humanrights, dealing with conflict minerals

Human rights(supply chain)

Society

Customer satisfaction, quality, andproduct safety
Avoiding corruption and bribery,fair competition
Geopolitical risks and their
management

Shareholders
Integrity

Customers
Society

Holistic topics¹ Some topics were prioritized equally, resulting in the following rankings being awarded twice: water and climate protection, labor conditions, and resource consumption
and circular economy.
2 Integrated in the chapters of 6.0 Responsibility to Employees
3 Integrated in the chapter 4.3.1 Resource Efficiency

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These material topics were also reviewed in 2023. Consideration was given to whether,
due to significant changes in external and internal influencing factors, an update or
adjustment of the materiality analysis was necessary. Ultimately, this was not deemednecessary.
This Sustainability Report also tackles other topics that could be of relevance forour stakeholders or contribute to an overarching understanding of sustainability at
ams OSRAM. For topics that are not included in the GRI Standards, we generally
defined our own indicators, or used indicators from other frameworks such as SASB.
In all areas we work towards contributing to steadily reducing negative impact andreinforcing positive impact using suitable guidelines, some of which are already implemented, and management systems as well as appropriate action. We describe how
we do this in detail in the following chapters.

ams OSRAM Sustainability Report 2023

Environment and Climate Protection

3.2.3 Sustainability Strategy
Sustainability is a key component of our corporate strategy. Besides commercial success, the requirements of our stakeholders such as customers, shareholders, employees, and society are also addressed.
Our sustainability strategy aims to overcome environmental, social, and economic
challenges; the latter, in particular by incorporating responsible corporate governance. This also includes topics such as increasing efficiency by reducing resource
consumption, employee satisfaction, attractiveness to potential employees, investor
and customer expectations, and legal requirements.
A comprehensive sustainability strategy was developed in 2022. This is based on thefocus topics defined in the materiality analysis: climate, circularity, labor conditions &diversity, human rights, and integrity. The following “Sustainability Strategy” diagram
depicts targets and progress in the year 2023.

Society

Responsibility to Employees

Appendix

ams OSRAM’s sustainability strategy encompasses the entire value chain — from our
supply chain and our own production facilities to our portfolio and added value forour customers. It aims for sustainable business practices, with which we hope to meet
our responsibility and minimize risks. The strategy is founded on deeply embedded
values and principles, clear structures, and defined processes.
For us, sustainability means minimizing our negative impact on the environment, using
resources responsibly, contributing to climate protection, offering attractive labor
conditions, protecting health and safety at work, and ensuring respect for humanrights. We have summarized our ambition in our Sustainability Vision. It reads: “Wecreate sustainable added value with innovative lighting and sensor solutions and havea positive impact on the environment and society,” aligning with the Company’s mission: “We pioneer differentiating lighting and sensing technologies. Customers trust
our innovation power and manufacturing capabilities. Together, we create long-termvalue while making our world safer, smarter, and more sustainable.” 2.2.2 Our Products’ Contribution to the SDGs.

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Environment and Climate Protection

Sustainability Strategy:“Creating sustainable value and positive impact with innovative light and sensor solutions”
Our portfolio contributes to:

UN Sustainable Development Goals

Society

Responsibility to Employees

Key Outcomes of the Individual Focus Topics
in Fiscal Year 2023
— Own business activities, Scope 3:
KPIs)— Emission reduction path:

Automotive
Consumer

us t rInd

Integrity
Ethical business practices and sustainable governance— 20% of long-term incentive plan of Management Board
remuneration tied to climate target— Coverage of code of conduct training extended to all direct
employees until end of 2024
— ESG Committee’s skills extended via training in 2023
— Cyber Security ISO 27001 certification

Human rights
Due diligence— Human rights training for all employees until 2024

y & M e di cal

ClimateLow carbon value chain— Carbon neutrality of own operations until 2030
– 100% renewable energy for electricity until 2028
– Implemented energy efficiency measures for 20%
CO₂e reduction until 2028
— Near- and long-term targets for science-based reductions of Scope 3 emissions (purchased goods/services)

Circularity
Responsible resource use— Annual human rights risk assessments of own sites— Annual risk classification of the entire purchasing volume— Regular water risk assessment

Responsible people management— 25% women in management by 2026
— All major production sites RBA-audited by 2030

ams OSRAM Sustainability Report 2023

4.2.3 Greenhouse Gas Emissions (action taken,

4.2.3 Greenhouse Gas Emissions (diagram)— Substrate recycling/plastic-free packaging:(action taken)— Water and waste reduction program to be further
developed

Labor & Diversity

Appendix

2.2.2 Our Products’ Contribution to the SDGs

— Circular Automotive portfolio:(diagram)— LCA approach:4.3.1 Resource Efficiency

2.2.1 Impact of our Business Model— Human rights risk assessments:

5.1 Respect for Human Rights (action taken)— Human rights training: 3.3. Combating Corruption and Anti-Competitive
Behavior (action taken, KPIs)— Risk classification:— RBA audits:

5.2 Supply Chain Management

5.1 Respect for Human Rights— Women in managerial roles:

6.3 Diversity and Equality of Opportunities (results)— Expand wafer substrate recycling— Climate-related management board incentivization: 3.1.2 Executive Bodies of
the Company, Remuneration for Management Board and Supervisory Board— Reduction of plastic by 200 t until 2026 within ourplastic-free packaging strategy for aftermarket— Code of conduct training: 3.3 Combating Corruption and Anti-Competitive
Behavior (action taken, KPIs)— Expansion of the circular portfolio of LED modules
for automotive lighting— ESG Committee’s skills and topics 2023:
Supervisory Board— Start LCA approach, first analysis in 2024

— Cyber security: ISO 27001 certification status:“Cyber security”)

3.1.2 Executive Bodies of the Company,
Company’s website (paragraph

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3.2.4 Dialog with Stakeholders
Within the current materiality analysis 3.2.2 Materiality Analysis, we checked whichstakeholders are relevant for ams OSRAM. In this process, potential impacts on stakeholders were individually assessed for each topic to determine their significance. We
look to improve our activities for more sustainability by engaging in dialog with our
stakeholders. Therefore, the feedback obtained from talking to our stakeholders wasincorporated in the strategy development process and decisions regarding action, forexample. By engaging in dialog with our stakeholders, we help at the same time tospread the word about proven practices and solutions.
We regularly talk to the following stakeholder groups throughout the world: employees, investors, customers, suppliers, analysts, journalists, scientists, neighbors, politicians and representatives of non-governmental organizations, authorities, andassociations. We hold dialog with people at various management levels, in different
locations, and through various departments. The interests of key stakeholders, suchas employees, customers, and suppliers, as well as investors are also taken into consideration by the Supervisory Board, since its members possess relevant expertiseand experience, and it is also composed of employee representatives. The frequencyof exchange varies depending on the format (see adjacent diagram “Key Communication Formats”) and can be regular, annual, or event-driven.
The impact of topics for stakeholders is assessed once a year by the Sustainability
Department. This department also examines the composition of our stakeholders,
identifies which channels exist for communicating with each group, and documents
the specific action to be taken. The Management Board and the Management Teamare informed of any significant changes.
We also share information for stakeholders in this report and in our communications.

ams OSRAM Sustainability Report 2023

Environment and Climate Protection

Society

Responsibility to Employees

Appendix

Key Communication Formats

Community
Chapter in the report:
5.4 Social Engagement

Associations and initiatives

Communication channels:– Exchange with local management– Cooperation with local authorities

Communication channels:– Exchange at events– Meetings with direct exchange

Owners and investors

Employees

https://ams-osram.com/about-us/investor-relations
Communication channels:– Annual General Meeting– Investor conferences/roadshows– Regular analyst calls

Chapter in the report:
3.2.4 Dialog with stakeholders

Dialogwith ourstakeholders

Chapter in the report:
6.5 Attractiveness as an Employer, Employee Satisfaction,
and Remuneration
Communication channels:– Interactive townhall meetings– Webchats/round table with board/management– Performance management process between management
and employees– Tech Talks

Journalists
https://ams-osram.com/news
Communication channels:– Press events– Response to press inquiries– Interviews
Suppliers
Chapter in the report:
5.2 Supply Chain Management

Customers
Chapter in the report:
5.3.1 Customer Satisfaction
Communication channels:– Key account management system– CRM system– Participation in trade fairs and direct exchange– Tech Days

Communication channels:– IT tool-based communication with inventory suppliers– Direct exchange with suppliers

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Political Engagement and Memberships
In line with our principles, we are committed not to give donations or other contributions, either directly or indirectly, to politicians, political parties, or organizations. Rules
to this effect are fixed in the Code of Conduct. ams OSRAM does not maintain its own
offices for the political representation of the Company’s interests or corresponding
agencies.
Sponsorship agreements, contributions to trade associations, and membership feesfor organizations that serve the Company’s interests do not count as donations.
Our political involvement is limited to memberships in industry associations. In termsof contributions, the following associations are most relevant: the German Electro
and Digital Industry Association (ZVEI), LightingEurope, and Semiconductor Climate
Consortium (SCC), a trade association within the semiconductor association Semiconductor Equipment and Materials International (SEMI), as well as compulsory memberships in employer and business associations or chambers of industry and commerce.
As part of its association work, ams OSRAM works towards ensuring that, in addition
to the overarching objectives of energy-efficient, resource-friendly, high-quality lightand sensor solutions, new specifications satisfy users’ requirements and can also be
implemented by the industry, through standardization or fair trading conditions, forexample.

Environment and Climate Protection

In 2023, membership fees came to around EUR 1.0 million (previous year: EUR 2.2 million). The decrease is related to portfolio changes 1.0 Report Profile.

3.2.5 Risk Management and Geopolitical Risks
ams OSRAM is exposed to a multiplicity of risks in the context of its global activities,
which are inextricably linked to its corporate activity. Due, among other things, toadvanced globalization and the attendant, increasing interlinking of social, economic,
and political interests (including financial), geopolitical risks and opportunities are
increasingly coming to the fore.
Guidelines, Responsibilities, Structures, and Processes
To identify, assess, and manage risks, ams OSRAM undertakes systematic risk management (enterprise risk management, ERM). Risks that could jeopardize the Company’s continuity or the achievement of its strategic, operational, financial, andcompliance-related goals must be identified at the earliest possible opportunity andrisk-mitigating measures taken. As part of the ERM process, non-financial risks suchas transition and physical climate risks are also taken into account. We are continually refining our risk management system to satisfy changing internal and externalrequirements.

Our commitment in various associations and organizations also includes collaborating in various sector-specific working groups on issues such as the circular economy,
the European Commission’s Green Deal, and sustainability in the electronics industry.
Besides exchanging our experiences, proposed solutions and plans for joint implementation are developed with these groups.

The central risk management function is part of the Audit, Compliance, and Risk Management Department and coordinates the ERM process and ERM reporting. The headof department reports directly to the Chief Financial Officer (CFO), and has a direct
reporting line to the Supervisory Board’s Audit Committee, which monitors the effectiveness of the risk management system. Internal audits are also carried out by the
Audit Department to check the effectiveness of the system.

ams OSRAM is also a voluntary member of organizations that are directly associatedwith our material topics. These include the UN Global Compact, the Responsible Business Alliance (RBA), the Responsible Minerals Initiative (RMI), the “Charta der Vielfalt”(Diversity Charter) Association, and the PROUT AT WORK Foundation.

At ams OSRAM, the ERM system is one component of interlocked processes and systems for corporate management. The focus of ERM is a systematic approach to theCompany’s material risks. Arising business opportunities and their realization are at
the heart of the strategy, planning, and controlling process.

ams OSRAM Sustainability Report 2023

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Responsibility to Employees

Appendix

Identifying, assessing, reporting, and managing material risks are the responsibility of the management of the respective corporate departments and business units.
Reported risks are assessed on the basis of their effects on business activity andthe probability of their occurring. Sensitivity analyses are also carried out for individual risks, such as foreign currency and interest rate risks ams OSRAM Annual
Report, Notes to the Consolidated Financial Statements, 19. Interest-bearing Loans
and Borrowings and 25. Financial Instruments and Financial Risk Management. Risks
are reported to the Management Board and the Audit Committee of the Supervisory
Board every six months, and if required also on an ad hoc basis. This ensures that theManagement Board and Supervisory Board are fully and promptly informed about
the material risks for the Group. The Management Board determines whether individual risks or the risks as a whole present a going concern risk, and whether there is a
substantial threat to the Company’s continuity.
Objectives and Action Taken
The overarching objective of ams OSRAM’s risk management is to recognize existingand potential risks at an early stage, to assess them, and to manage them in such a
way that, ideally, they do not occur, or negative impacts are kept to a minimum.
As part of the materiality analysis carried out in 2021 and confirmed in 2023 3.2.2
Materiality Analysis, non-financial risks were reflected on with respect to their impact
on the Company, society, and the environment. Climate risks and their assessment can be found under 7.4 TCFD Recommendations, 3. Risk Management andams OSRAM Annual Report, Notes to the Consolidated Financial Statements, 1
General Principles — Contingencies and Main Judgments.
Risks are recorded and assessed using a Company-wide IT tool. The risk report also
includes reports on environmental, compliance, and quality risks with regard to theirpotential impact on the Company.
Geopolitical risks and conflicts were identified as a material issue within the materiality analysis for the Company and also as a material risk in the risk management process for the 2023 reporting year. Geopolitical impacts on our business have become18Report Profile

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Environment and Climate Protection

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Appendix

3.3 Combating Corruption and Anti-Competitive Behavior
particularly apparent in recent years as a result of the Covid-19 pandemic and its
effects. The current geopolitical situation continues to be dominated by the ongoing
war in Ukraine. There could also be a further escalation in China’s claims of sovereignty over Taiwan and therefore an increased decoupling of the relationship between
the USA and China. The Middle East conflict, which escalated in the second half of theyear, also carries indirect risks to ams OSRAM’s business. These risks could have direct
effects on ams OSRAM’s existing procurement and sales markets, as well as indirectconsequences due to changing macroeconomic conditions.
ams OSRAM is monitoring developments very closely, so that it is well prepared andcan respond in a rapid manner to any changes in business conditions. In addition, theresources in the divisions and units involved have been and continue to be reviewed
and are adjusted where necessary. As the identified geopolitical risks also impact
on other types of risk, such as macroeconomic risks, business interruption risks, or
financial risks, they are observed and assessed by the Company from various angles,
and this is reflected in multi-layered defensive strategies and action ams OSRAM
Annual Report, Management Report, 8 Risk Management. In addition, geopoliticaldevelopments are also playing an increasingly important role in upcoming investment
decisions.

Corruption and anti-competitive behavior by individual actors impact negatively
on the market in general as well as the capital markets, jeopardize the commercial
success even of market participants that are not involved, weaken institutions and,ultimately, trigger negative developments in society. ams OSRAM is committed to faircompetition and to preventing corruption and bribery. We strongly believe that these
efforts also impact positively on the satisfaction of our employees and business partners and are a key prerequisite for the success of our company.
Guidelines, Responsibilities, Structures, and Processes
Our compliance management system is based on the elements prevent, detect, andrespond. It includes regulations (guidelines and policies), measures, and processes
to prevent legal violations in areas such as anti-corruption, competition and antitrust
law, money laundering prevention, data protection, and export control, as well as todetect any violations that have already occurred and to take necessary actions if
required.
From an organizational perspective, the compliance management system consists ofexperts at various locations throughout the world. The Head of Compliance, Audit, andRisk Management reports directly to the Chief Financial Officer (CFO), who is responsible for compliance within the Management Board. Reports on relevant complianceissues are presented to the Management Board every quarter and whenever appropriate. As part of its monitoring of the Management Board’s role, the Supervisory
Board also monitors the efficient functioning and appropriateness and effectivenessof the compliance management system. Within the Supervisory Board, this is handled
by the Audit Committee, to which the Head of Compliance, Audit, and Risk Management reports on current issues and potential risks on a quarterly and an ad hoc basis.
Our Code of Conduct, which is available in various languages, contains mandatory requirements for employees to comply with the aforementioned regulations. The
Group Compliance Policy specifies the conduct requirements set out in the Code of
Conduct and contains specific guidelines and process requirements on a number ofpoints, including:— Anti-corruption— Antitrust and competition law

ams OSRAM Sustainability Report 2023

— Conflicts of interest— Reporting and handling compliance cases— Prevention of money laundering
Internal compliance rules are supplemented by guidelines on data protection andexport controls.
In order to identify potential compliance risks at an early stage and counter themappropriately, annual risk assessments are carried out at selected entities on all compliance issues. After categorizing the Group companies into risk groups, the companies to be audited are selected according to a risk-based approach and then subjected to a risk analysis. Significant compliance risks are also the subject of risk management at Group level ams OSRAM Annual Report, Management Report, 8 Risk
Management.
ams OSRAM has various tool-based processes for dealing with corruption-relevant
behavior. For example, the tool-based business partner process requires due diligence for certain risk-related business partners before concluding a contract, and theappropriate approvals to be obtained in the dedicated business partner compliancetool. We also require our suppliers to sign the Code of Conduct for Suppliers which,among other things, contains a ban on corruption and bribery 5.2 Supply Chain
Management. To strengthen our compliance responsibility towards our suppliers, asa member we also use the tools of the Responsible Business Alliance (RBA), an industry organization dedicated to socially responsible entrepreneurship in global supply
chains 5.1 Respect for Human Rights.
There are also tools that support our employees with assessing the legality of benefits such as gifts, hospitality, and invitations to entertainment events, or guide themthrough the approval process.
The whistleblowing system “Tell ams OSRAM” is a central feature of the compliancemanagement system, and is available in various languages. Employees and third parties can report information on potential violations of anti-corruption, competition, andantitrust law, money laundering prevention, data protection, and export controls, aswell as risks and violations relating to human rights, working conditions, and environ-19

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mental protection in our own business areas and those of our suppliers, anonymously
if desired 3.1.1 Core Values. Reports can also be made via the usual internal Company channels: the compliance, HR, procurement, or EHS organization as well as therespective manager.
All reports of potential compliance violations will be investigated and possible retaliation against whistleblowers will not be tolerated. If there are concrete indicationsof a violation, the Company will conduct internal investigations. If an internal investigation reveals a violation, the compliance organization recommends measures toremedy any deficits identified and will monitor their implementation. In the eventof misconduct on the part of our employees, ams OSRAM may take disciplinary
action in accordance with labor law. There is a Corporate Disciplinary Committee at
ams OSRAM to ensure the appropriateness of proposed disciplinary action. It is thiscommittee’s task to apply documented standards and consistent decision-making
criteria in order to safeguard a fair process that treats all employees equally. Its decisions are binding for the whole Group.
Our multi-stage, target group-oriented training concept is another elementary component of the compliance management system. The aim of compliance training is tosensitize all employees1 to key compliance topics (see table on the left) and to help
them recognize compliance risks and behave correctly in critical situations.
The “Code of Conduct” online training is mandatory for all employees throughout theGroup (i.e. for salaried and/or indirect employees — including the Management Board— as well as for direct employees). The training must be completed annually and aims
to guide employees through all key topics of our Code of Conduct. In line with a riskbased approach, there is also additional standard online training on anti-corruption
and data protection, which is mandatory for all indirect employees. In addition, spe-

Environment and Climate Protection

cial online training courses are offered in the areas of antitrust law, export control,and money laundering prevention for selected target groups. The training cycle forthese courses is three years. In order to further strengthen the compliance culture
within the Company, management will also be offered personal “Compliance Leadership” training in the future.
Regular local and multi-location communication activities on current compliancedevelopments are also carried out to raise awareness among employees and tostrengthen the compliance culture.
Objectives, Action Taken, Results, and KPIs
Our objective is to promote a corporate culture that prevents breaches of criminaland civil laws to avoid sanctions, financial losses, and reputational damage to theCompany and its employees and prevent damage to society as a result of corruption
and other forms of white-collar crime. In doing so, we pursue the objective of consistently fighting corruption and bribery, clarifying any suspected cases without exception, and enforcing appropriate corrective actions if a suspected case is confirmed.
In 2023, the compliance management system was further developed in order to
respond appropriately to growing global regulatory and customer requirements.
Against a backdrop of the Company’s increasing focus on the semiconductor business, the export control team within the compliance organization was strengthened
and a reorientation of content was implemented due to relevant changes in legislationand trade restrictions resulting from the trade conflict between the USA and China.
Another focus in 2023 was on fulfilling the duty of care obligations arising from theGerman Act on Corporate Due Diligence Obligations in Supply Chains (“Lieferkettensorgfaltspflichtengesetz,” LkSG), the EU Whistleblower Directive and its national

Society

Responsibility to Employees

Appendix

implementation in the EU, as well as preparing for the planned EU Corporate Sustainability Due Diligence Directive (CSDDD). For example, the central whistleblower system “Tell ams OSRAM” was adapted in line with the new statutory supply chain andwhistleblower protection requirements.
Relevant employees received ongoing training on compliance topics, tailored to specific target groups and risks. Measured against our defined training cycle, the individual training courses achieved the following coverage rates at the end of 2022 and2023:
Training on Compliance and Ethical Standards
Compliance
Basic1

AntiCorruption

Data
Privacy

AntitrustTarget group2

10,191

10,191

10,191

10,191

Coverage rate according to training
cycle (status "on target")

96.9%

98.8%

98.6%

98.3%

Employees trained in 2022

3,847

1,734

1,934

1,720

Compliance
Basic1

Code of
AntiConduct1 Corruption

Data
Privacy

Antitrust

2022

2023
Target group2

9,181

11,456

11,456

11,456

3,310

Coverage rate according to training
cycle (status "on target")

97.8%

100.0%

94.1%

95.0%

97.6%

Employees trained in 2023

1,634

5,714

4,489

3,129

1,198

1 Compliance Basic training was replaced in October 2023 by the newly introduced Code of Conduct training, which
covers topics such as anti-corruption, antitrust, and conflicts of interest, as well as human rights, environmental protection, and whistleblower protection; at the same time the target group was expanded; the data for the Compliance
Basic training in 2023 covers the period until August 1, 2023.
2 The target group for the “Code of Conduct”, “Anti-Corruption”, and “Data Privacy” training courses includes all indirect employees; the target group for the special Antitrust training course includes all employees in sensitive functions.

¹	Includes salaried employees, indirect employees, as well as direct employees who work full- or part-time. In previous years’ reporting, the term “white collar” was also used as a synonym in connection with indirect employees. The
terminology was standardized in the 2023 fiscal year. The term “direct employees” refers to employees whose work
is directly related to production, while the term “indirect employees” refers to employees whose work is not directly
related to production (e.g. administration, sales, and research and development).

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The table below contains information about compliance processes at the Company
as well as legal actions due to anti-competitive behavior and legal actions due tobreaches of antitrust law or monopolistic practices. Proven violations are analyzed
on an ongoing basis and the resulting insights are taken into account in the continual
process of refining the compliance management system.
Compliance Incidents1
2021

2022

2023

Inventory of (unclosed) compliance incidents as of January 1

22

25

22

New compliance incidents

38

39

27

Compliance incidents closed during the year

35

42

35

 therein number of compliance incidents with provenviolations2

13

14

12

 therein number of consequences under labor law in theevent of proven violations

3

6

2

Inventory of (unclosed) compliance incidents as of December 31

25

22

14

Number of antitrust or monopoly lawsuits

0

0

0

Number of legal actions for other anti-competitive behavior

0

0

0

1 A compliance incident is in particular any conclusive allegation of a violation of legal provisions under criminal law or
the law on the imposition of fines with reference to the business activities of ams OSRAM.
2 Therein number of compliance incidents in 2023 with proven violations in the following fields: corruption or bribery: 0;
money-laundering or insider trading: 2; conflicts of interest: 0; offences against customs regulations: 2; offences
against foreign trade regulations: 1; asset/property crimes: 4.

Environment and Climate Protection

3.3.1 Data Protection
Guidelines, Responsibilities, Structures, and Processes
In organizational terms, data protection is part of the Compliance organization, andthe Company-wide data protection management system is a component of the compliance management system. Fundamental principles, regulations, and processes toprotect the personal data of our employees, customers, suppliers, and business partners are enshrined in the Group-wide data protection guideline.
The Head of Data Privacy coordinates and supports the implementation and monitoring of data protection provisions in the Group companies. They are a member of theInformation Security Operation Board (ISOB) established at ams OSRAM and report
directly to the Management Board on current developments. Data Protection Officers
or Data Protection Coordinators are designated, as required by the relevant legislation, within the individual Group companies.

Society

Responsibility to Employees

Appendix

In 2023, a new cookie management solution (cookie banner) was introduced on mostams OSRAM websites (including online stores) to create more transparency for visitors
to our sites and to meet regulatory requirements. In addition, a centralized and digital or automated solution was introduced for the process of employees signing confidentiality declarations. The harmonization of the indexes of procedures of ams and
OSRAM was also successfully completed.
In addition, as described in 3.3 Objectives, Action Taken, Results, and KPIs, training
measures in the area of data protection were continued in 2023. The training courses
were offered in both face-to-face and online formats. They covered essential generalcontent on data protection as well as target group-specific topics, such as new dataprotection requirements in certain countries (e.g. China), and video surveillance. In
2023, the focus of target group-specific training was on the ams OSRAM companies
in China (due to changes in legislation) and at manager level.
Protection and Security of Personal Data

Data protection as a topic is covered by in-person compliance training and integrated
into the regular compliance risk assessments.
All processes relating to personal data are documented in a so-called index of procedures. It is used for the risk assessment of internal processes with regard to the protection of the rights and freedoms of individuals.
Objectives, Action Taken, Results, and KPIs
Our objective is to protect the personal data of our employees, customers, suppliers,and business partners in all our products and processes and to avoid possible dataprotection breaches. Our employees are required to treat personal data confidentially.

2021

2022

2023

Governmental data protection requests

2

–

2

Customer complaints

–

2

–

in time

15

53

25

not in time

–

–

–

without sanctions

7

1

7

with sanctions

–

–

–

Requests for information1

Privacy incidents1	Requests for information are based on data subjects’ right to be informed (GDPR). This right allows natural persons(data subjects) to ask the entity responsible for data processing (here ams OSRAM) for information about which data
has been collected about them and how they are used.

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4.0
Environment andClimate Protection

ams OSRAM Sustainability Report 2023

Environment and Climate Protection

Society

Environmental Management

Circular Economy

Climate Protection

Resource Efficiency

Energy Efficiency at the Group’s Own Locations

Conflict Minerals

Renewable Energies

Waste

Greenhouse Gas Emissions

Water

Green Tech Development

EU Taxonomy

Responsibility to Employees

Appendix22

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Sustainable Corporate Governance and Integrity

Environment and Climate Protection

Society

Responsibility to Employees

Appendix

4.1 Environmental Management
Protecting the climate and the environment safeguards our livelihood and is essential
to sustainable business management. Therefore, at ams OSRAM we are committed
to complying with stringent environmental standards and responsible environmental
management. The objective is to make efficient use of resources and abide by statutory rules on environmental protection. Through our activities and by using a certified
environmental management system, we seek to meet the rising expectations of ouremployees and customers as well as the capital market and society at large. In
doing so, we not only want to fulfill legal requirements, but also to help maintainams OSRAM’s social “license to operate.”
Guidelines, Responsibilities, Structures, and Processes
Overall responsibility for environmental protection and occupational health and safety
6.2 Occupational Health and Safety within the ams OSRAM Group lies with theChief Executive Officer (CEO), who has delegated tasks and managerial authority to
the head of the corporate Environmental Protection, Health, and Safety (EHS) Department. At regular intervals, the EHS Department reports directly to the Management
Board on significant developments.
The EHS Department coordinates environmental protection requirements, monitors
their local implementation, and develops the environmental management system
on an ongoing basis. To this end, it issues the Group-wide EHS Manual (regulations
including EHS Policy) and defines supporting EHS processes in order to comply
with environmentally relevant regulations and laws at local and regional level as well
as global internal requirements. The manual takes into account industrial and product-related environmental protection, the transportation of hazardous goods, occupational safety, and occupational health and fire protection. Appropriate reviews arecarried out on these topics prior to mergers and acquisitions.

Our processes also take into account the relevant legislation that regulates the use
and declaration of specified hazardous substances in semiconductor components,
and in electrical and electronic equipment. Our requirements regulate the use andhandling of raw materials and substances at our locations and therefore protect
people’s health and the environment both inside and outside the Company 4.3.1
Resource Efficiency. The central EHS requirements are implemented by the Business
Units. The latter are also responsible for designing products to be environmentallycompatible and ensuring that both their manufacture and use are energy-efficient.
All production facilities and the headquarters in Premstaetten (Austria) have an environmental management system that is certified to the international standard ISO
14001. The locations in Regensburg, Berlin, Schwabmuenchen, Herbrechtingen, andMunich (Germany) and, for the first time this year, the Ang Mo Kio (Singapore) site arealso using an ISO 50001-certified energy management system.
All ams OSRAM employees are trained upon joining the Company on EHS-related issues and are then given further training at regular intervals. The aim is notjust to raise awareness of such issues but also to point out the consequences for
ams OSRAM of any regulatory breaches.

Our environmental reporting covers data on energy consumption, greenhouse gas
emissions, emissions of volatile organic compounds (VOC), water withdrawal, theamount of wastewater produced, and waste generation. The data published in thisreport covers more than 99% of our own environmental impact1 and the locations
where 89% of all employees work.
The data and target figures reported in chapters 4.2.1 Energy Efficiency at theGroup’s Own Locations, 4.2.3 Greenhouse Gas Emissions, 4.3.3 Waste, and4.3.4 Water comprise both absolute and relative KPIs. The latter relate environ­mental performance to the operating output.
ams OSRAM tracks the data collected and the attainment of relative targets at
Group level, as part of its quarterly EHS reporting. These relative KPIs express anabsolute target or actual figure in relation to generated or planned operating output2(operating output in EUR millions). The procedure permits us to define relative environmental parameters from our own operational activity, regardless of contract manufacturing.

The corporate EHS Department cooperates with government agencies and industrial
associations on a variety of topics. It also regularly reviews implementation of theregulations defined in the EHS Manual and further processes at the locations by carrying out site visits, inspections, and internal audits.

Objectives, Action Taken, Results, and KPIs
Each year, ams OSRAM sets itself targets for energy consumption, greenhouse gas
emissions, water withdrawal, and waste generation. These are documented for eachlocation and aggregated into overall global targets. Managers implement the actions
specified in the individual manufacturing locations. We present the results in therespective section of Chapter 4.

In our supply chain we use contractual regulations and the Code of Conduct for Suppliers to convey our expectations in terms of environmental and climate protection,and demand that they are implemented 5.2 Supply Chain Management.

In 2023, seven locations underwent successful external audits, five of them with ISO
14001 and three with ISO 50001 certifications. The corporate EHS Department carriedout a further eight EHS audits to check that the EHS management system is imple-

1 Estimates are made on the basis of energy consumption which, in the context of ams OSRAM’s environmental
impact, is seen as the most relevant metric.
2 Operating output is production output valued at standard costs, chiefly comprising material and personnel expenses,
depreciation, and value creation.

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Environment and Climate Protection

Society

Responsibility to Employees

Appendix

4.2 Climate Protection
mented permanently worldwide. These combined audits are based on the ISO 14001
and ISO 45001 standards (occupational health and safety) and in Germany and Singapore also on ISO 50001.
Capacity utilization remained low at some sites, notably at the semiconductor sites,
especially in the first half of the year. This had a positive impact on the environmental
KPIs. Details on economic development can be found in the ams OSRAM Annual
Report, Management Report, 2.2 Earnings. In Singapore, production at one site was
relocated at the beginning of 2023 and subsequently discontinued. In Italy, a site with
two operating units was sold. Another sale included two smaller R&D sites in China
and Germany, which are therefore also no longer included in EHS reporting. In contrast, a second production module was put into operation in Kulim (Malaysia), which
made a relevant contribution to our environmental KPIs in 2023.
No relevant penalties or fines of over EUR 10,000 were imposed on ams OSRAM
because of breaches of environmental protection rules in the reporting period.

To combat human-driven climate change, the international community has committed to limiting the global temperature increase to 1.5 degrees Celsius if possible but,in any event, to well below two degrees Celsius compared with the pre-industrial age,as part of the 2015 Paris Climate Agreement. In Europe, the European Commission’s
Green Deal is the most notable action. However, the capital market, customers, andthe general public also place demands on companies.
ams OSRAM takes its corporate responsibility seriously and is striving to reduce
emissions of polluting greenhouse gases in its own activities. In 2021, the decision
was made to aim for carbon-neutral operations by 2030 with regard to Scope 1
and Scope 2 (in accordance with the Greenhouse Gas Protocol). As part of the climate strategy, a reduction scenario was agreed for achieving our targets for Scope
1 and Scope 2, which is consistent with maximum warming of 1.5 °C. In 2023, weconsistently pursued the climate strategy developed to achieve this target in 2022
4.2.3 Greenhouse Gas Emissions. Additionally, ams OSRAM is committed to reducing emissions from the upstream Scope 3 category “Purchased goods and services”
by 47.5% per EUR of value added by 2030 and lowering them further to -97% by 2050
5.2 Supply Chain Management.
The Operations Sustainability Program was launched in 2023 for the semiconductor
sites, where 91% of our greenhouse gas emissions are generated. A separate function
was created to coordinate this. One focus is on implementing the climate strategy at
the semiconductor sites.

4.2.1 Energy Efficiency at the Group’s Own Locationsin post-combustion during gas treatment at the semiconductor locations. The production of lamps, such as halogen lamps (automotive), whose glass bodies are not madeof quartz glass, fundamentally depends on natural or liquefied gas. Furthermore, natural gas has always been used in Germany for several cogeneration units.
The climate strategy takes into account the increase in our own energy efficiency aswell as the use of green energy sources through direct purchasing and unbundled
Energy Attribute Certificates. We are investigating alternatives to fossil fuels for heating. We see offsetting through CO2 emission credits (carbon credits) as a subordinate
option for remaining unavoidable emissions from fuels and non-decomposed processgases.
It is the use phase of our products that is most relevant in terms of impact across ourvalue chain. Improving energy efficiency is therefore a key criterion in our customers’purchasing decisions and satisfaction, particularly in the area of light sources 4.2.4
Green Tech Development.
Processes, Objectives, Action Taken, Results, and KPIs
All production sites that constantly exceed the threshold of annual consumption of
1,400 megawatt-hours (MWh) are certified to ISO 14001 and thus also pursue energy
efficiency programs and measures. The assessment of regulatory requirements andof potential improvement measures is also compulsory for these locations. This will
reduce the burden on the environment and make production costs more competitive.
The relative target for energy consumption set for 2023 and the expected total
greenhouse gas emissions are compatible with the reduction path defined in 2022 toachieve our climate target.

As an industrial company, ams OSRAM consumes primary and secondary energy,
with electricity and natural gas playing a dominant role as energy sources. The production sites are particularly relevant here. These use electricity in all areas, fromproduction to administration, whereas natural gas is used primarily for heating andams OSRAM Sustainability Report 2023

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Energy Consumption
2021

2022

2023

Primary energy

173,900

175,500

162,100

137,300

Natural gas

149,000

149,200

136,300

118,500 Liquefied petroleum gas, diesel for on-site use,heating oil, hydrogen
Secondary energy
Electricity   thereof share of renewable energy in %District heating and steam
Renewable energy generated in-house (solar)
Total (primary and secondary energy)Specific energy consumption per EUR 1 million
operating output

24,90026,30025,80018,800725,400

716,900

668,300

648,100

697,800

689,500

645,100

628,700

30

32

39

49

27,20027,00022,80018,600

400

400

400

800

899,300

892,400

830,400

785,400

Selected key projects
Plant/location

Measure/result

Regensburg (Germany)

Installation of a combined heat pump/cooling unit poweredby just 1,000 MWh of green electricity

Kulim (Malaysia)

Optimization of the cooling water supply and the procedure for shutting down production processes, known as the“warm-down”

3,600 MWh

Conversion of room humidification from gas-generated
steam to an electrically operated system; also the installationof a heat recovery system on two compressors for compressed air generation

2,500 MWh

Energy efficiency measures to optimize the utilization of technical laboratory equipment and adjust the room temperature
in non-critical areas

1,200 MWh

Premstaetten (Austria)

425

418

473

412

452

Saving8,700

Other selected projects

31,50092,000— Various measures to save electricity and natural gas at the Foshan plant (China), including the replacement of two screw compressors with a modern, frequency-controlled solution, and the reduction ofburn-in time in the production of LEDs

3,600

14,700— Saving electricity and natural gas at the Exeter site (New Hampshire, USA) through a special energy
efficiency mode for clean room air conditioning

In 2023, energy consumption in absolute terms fell by 5.4%, while the relative target
scaled to operating output was missed by 4.6% (see influence of economic development on the KPIs in 4.1 Environmental Management). The closure of sites in 2022
and 2023 was largely responsible for the reduction. The new production module in
Kulim (Malaysia) mentioned above accounted for 4.7% of total energy consumption in
2023.

Appendix

In order to achieve our climate target by 2030, we are prioritizing energy efficiency
measures as well as green electricity, the use of which we intend to expand. However,the use of renewable energy does not currently make economic sense at all locations,for example in Singapore. Therefore, we are also using the option of Renewable Energy
Certificates (unbundled EACs) there to offset emissions.

5,500 MWh

— Optimization and streamlining of selected high-temperature processes at the Berlin plant (Germany)

Purchased I-RECs (International Renewable
Energy Certificates) or any similar instruments

Responsibility to Employees

4.2.2 Renewable Energies

Energy Efficiency Measures 2023

Penang (Malaysia)

Energy consumption (primary and secondary
energy) per EUR 1 million operating output

Savings through energy efficiency measures(significant projects, see “Energy Efficiency
Measures 2023” table)

Society

The following selected efficiency measures also contributed to the reduction:
2020

in MWhEnvironment and Climate Protection— Savings in natural gas and electricity at the Bruntál plant (Czech Republic) through a semi-automatic
system for heating and ventilation control; also savings in electricity and hydrogen by switching theheat treatment of the coils (annealing) to a different type of furnace— Saving electricity at the Nové Zámky plant (Slovakia) due to the reduction in pressure during nitrogenproduction

Action Taken, Results, and KPIs
In 2023, ams OSRAM purchased 306,700 MWh (previous year: 249,100 MWh) of electricity from renewable energy sources. This equates to a 49% share of the entire electricity
consumption (previous year: 39%). This breaks down as follows:— The Premstaetten location in Austria has been supplied with carbon-neutral electricity from hydroelectric power since 2011.
— In Germany, the locations in Munich, Berlin, Regensburg, Herbrechtingen, andSchwabmuenchen were switched to renewable energy sources at the start of 2020.
The Regensburg location has also adopted the policy of ensuring that electricity is
generated with the lowest possible negative impact on the environment (low-impact hydro) through guarantees of origin since the beginning of 2021.
— At the Calamba location in the Philippines, 5,000 MWh of electricity was generated
from solar power in the third and fourth quarters, which corresponds to around
30% of the electricity consumed.
— The Exeter and Hillsboro facilities are located in the state of New Hampshire in theUSA, in which electricity suppliers are obliged under the “Electric Renewable Portfolio Standard” to provide a minimum share of 23.4% of the electricity mix fromrenewable energies.
— At the Wuxi site in China, an electricity mix with a 7% renewable share was purchased for the first time in 2023. This corresponds to 5,000 MWh of green energy.
The proportion is to be gradually increased over the next few years.

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In addition to the Wuxi and Premstaetten sites, the Regensburg and Nové Zámky(Slovakia) sites also contributed to the Company’s own generation of renewableenergy for the first time in 2023, bringing the total volume to around 800 MWh. We
see further potential in the in-house generation of renewable energy.

Environment and Climate Protection

Society

Responsibility to Employees

Appendix

Climate Strategy

Scope 2

In addition, we partially offset the consumption of the Calamba and Ang Mo Kio(Singapore) sites and fully offset the consumption of the new module at the Kulim(Malaysia) site with a total of 92,000 green electricity certificates (unbundled EACs).
Scope 1

Indirect emissions caused by theuse of secondary energy sources
such as electricity or district heating
during production and processes
in our own Company

Direct emissions resulting
from the consumption ofenergy sources

4.2.3 Greenhouse Gas Emissions

Scope 3Emissions attributable to the Company in the
upstream and downstream value chains as wellas in upstream and downstream areas in thelife cycle of our products, such as emissions
resulting from the use of the products

The direct and indirect greenhouse gas emissions that result largely from our use ofenergy contribute to climate change. Climate-relevant emissions also occur in our
upstream and downstream value chains. Therefore, ams OSRAM is committed toreducing its emissions as part of its climate strategy (see the Objectives paragraph).
Guidelines, Structures, and Processes
ams OSRAM records and reports its greenhouse gas emissions in accordance withthe recognized standard of the Greenhouse Gas (GHG) Protocol and the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) 7.4 TCFD
Recommendations. We therefore divide our emissions into:— Scope 1: direct emissions from the use of energy sources and of gases with climate-relevant characteristics that are used in production processes and cannot becompletely broken down in the exhaust gas flow,— Scope 2: indirect emissions resulting from the use of secondary energy sources
such as electricity or district heating, and— Scope 3: emissions that occur further up or down the value chain that are attributable to the Company.

downstream

Reductions measures
Energy efficiency measure(-20% energy consumption
until 2028)

Renewable energies (100% renewableenergy for electricity by 2028, incl.
unbundled EACs such as IRECs)

2021
308,300 t CO2
Base year

-24%1

-37%1

upstream

Compensation(only certified
measures)

2030

2021

CO2-neutral

Base year

Our Scope 1 and 2 targets correspond to a reduction pathway in line with the Paris Climate Agreement.

Target year

2050
-47.5%1-97%1

Reduction pathway for emissions of the Scope 3 category “Purchased goods andservices”.

1 In comparison to base year

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We report our Scope 2 emissions using both market-based accounting, i.e. on thebasis of the vendor-specific emission factor, and location-based accounting, i.e. using
the regional and national specific emission factor in the electricity mix.

Objectives, Action Taken, Results, and KPIs
Our annual greenhouse gas emissions and energy efficiency targets are closely linked
in terms of Scope 1 and Scope 2. We calculate the overall global target in metric tonsof CO2 equivalents (t CO2e) in relation to operational output 4.1 Environmental Management.
We have prepared figures for individual Scope 3 categories for the entire ams OSRAM
Group for 2023. Goods and services purchased as well as capital goods were included
here. An approximation model1 recognized in the industry was used for this purpose.
To calculate greenhouse gas emissions from upstream transport and distribution as
well as business travel, we obtained data2 from our business partners and service providers.
For Scope 1 and Scope 2 as well as Scope 3 (“Purchased goods and services” category), 2021 has been set as the base year for the climate strategy. Following the completion of ams’ acquisition of OSRAM in March 2021, this reporting year represents theSociety

CO₂ Emissions
2020

2021

2022

2023

51,70046,60065,50051,70029,90029,60027,10023,600

2,800

2,600

2,600

1,800

19,00014,40035,80026,300264,100

261,700

230,500

229,400

258,000

256,000

225,300

225,900

6,100

5,700

5,200

3,500

GHG Scope 2 emissions (location-based)

332,300

321,400

291,000

292,900

Total GHG Scope 1 and 2 emissions(market-based)

315,800

308,300

296,000

281,100

in metric tons CO₂e
GHG Scope 1 emissions

Scope 1 and Scope 2 emissions are recorded on the basis of energy consumption.
Absolute figures are recorded at location level and converted using the corresponding conversion factors. Emissions resulting from residues of climate-relevant processgases are estimated from the quantities used, the operating period, and the efficiency of the waste gas treatment facilities at our locations in Premstaetten (Austria),
Kulim (Malaysia), and Regensburg (Germany). We are working on refining and consolidating these estimates through current measurements on our exhaust systems andcomparisons with data published elsewhere in the semiconductor industry.

Environment and Climate Protection

Natural gas Liquefied petroleum gas, diesel for on-siteuse, heating oil
Process gas emissions
GHG Scope 2 emissions (market-based)
Electricity
District heating and steam Metric tons of CO₂e emissions from own
activities (Scope 1 and 2) per EUR 1 million
operating output

146

149

first period in which ams OSRAM operated as a joint company for the majority of theyear, undergoing harmonization and adjustment of processes and reporting. Since only
a few locations emit volatile organic compounds (VOCs) and only in small amounts, weare striving to achieve a general reduction for these without any specific targets.
We were able to significantly reduce our greenhouse gas emissions in the reporting
period, partly by purchasing more green energy and certificates than planned. As aresult, we even exceeded our internally communicated interim target for 2023 on our
Climate Roadmap. The relative target scaled to operational output was missed by just
0.6%, which is a significantly lower deviation than the corresponding energy KPI.
So that our efforts can be externally assessed, we take part in the CDP annual survey, the world’s biggest ranking platform for climate protection. We were able to takeanother step forward this year and improve by one level.

169

140

168

 Avoidance of CO2e emissions by I-RECs(International Renewable Energy Certificates)or similar instruments

15,10046,700280,900

234,400

27,40073,90092460,50070,500108,900

4,600

1,800

5,200

1,071,300

1,106,400

1,119,800

718,300

Capital goods

54,10076,800199,100

301,200

Upstream transport and distribution

54,50059,70047,40042,200Business travel

4,000

2,600

7,200

5,400

VOC emissions

29

30

34

26

315,800

308,300

Absolute GHG reduction compared to baseyear 2021 (308,300 t CO₂e)
GHG reduction compared to base year 2021 in %Avoidance of CO2e emissions due to the use ofrenewable energies, incl. I-RECs

Appendix

CDP Climate Change Target for metric tons of CO2e emissions fromown activities (Scope 1 and 2) per EUR 1 million operating output

Net GHG Scope 1 and Scope 2 emissions(market-based)

Responsibility to Employees

62,800Prevention of GHG emissions through energy
efficiency projects (major projects)

2020

2021

2022

2023

C

B-

C

B

Score

4.2.4 Green Tech Development
At ams OSRAM we see green tech as the combination of environmentally friendly technology and innovation supporting carbon reduction, clean water, and a sustainable
lifestyle. Our research and development (R&D) experts develop products and solutions
that contribute to solving these global challenges and open up new business opportunities for us. Our green tech products are designed to make a positive contribution
throughout their life cycle.

GHG Scope 3 emissions
Purchased goods and services

1 estell 6, Systain
2 The data are based in part on estimates

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Responsibilities, Structures, and Processes
On the Management Board, the Chief Executive Officer (CEO) is responsible forresearch and development. The Corporate Quality and R&D Department under the
CEO’s responsibility is in charge of innovation management within the Group, communicates with the operational units, and regularly reports to the Supervisory Board’s
Technology Committee. Tech and product development are chiefly the responsibilityof the business units. The active management of the portfolio and focus on innovationand growth are the core elements of our strategic business model.
Corporate Development is responsible for the development and execution of thismodel, and reports to the CEO. The team prepares business portfolio scenarios for
decision-making by the Management Board. Portfolio decisions are primarily basedon market outlook, business profitability, and the strength of ams OSRAM’s competitive position. Sustainability criteria usually consider extended periods and are typicallyreflected separately in the evaluation.
Publicly available R&D funding is secured by means of globally coordinated subsidy
management and a strong associated network of research and development organizations as well as universities. Public investment projects exceeding the scope of pure
R&D projects are secured by cooperation models via a strongly established, global
network beyond the R&D organizations. This network consists of internal and external
stakeholders, academia, and public authorities.
Action Taken and Results
Many funded projects in which ams OSRAM is involved have a positive impact on
the ecological footprint both in the manufacturing process and in the application of
future products. These projects include the “Efficient Optoelectronics for a Sustainable and Resilient European Semiconductor Ecosystem” (OptoSuRe), financed by

ams OSRAM Sustainability Report 2023

Environment and Climate Protection“Important Project of Common European Interest” (IPCEI ME/KT), and the collaborative projects “Energy ECS” (Electronics, Components, Systems) and “Intelligent Reliability 4.0” (iRel40). The cooperation projects EdgeAI and SmartMan aim to use modern data analysis and artificial intelligence methods to make products and production
processes more energy and resource efficient. They reduce negative influences on
the environment both along the entire value chain as well as throughout the product’s
life cycle. Activities as part of the SILHOUETTE and Poly-Chrome projects support
research into photonic, integrated circuits as a basis, in the medium term, for energysaving computers and data processing. In many of ams OSRAM’s research and development projects, components are being developed that enable a better energy balance in end devices (tablets, smartphones, or AR/VR glasses) by reducing their power
consumption. In addition, ams OSRAM is researching materials and devices to replacemercury-containing UV lamps in UV-C projects. Further information on the projects
can be found on our Company website.
With the EU Green Deal and its associated programs and regulation, green techdevelopment will become even more important in the future. In addition to new funding opportunities, this also means extensive reporting requirements for companies
4.4 EU Taxonomy.
The R&D activities of ams OSRAM primarily comprise light and sensor technologies
for applications in the areas of sensor technology, lighting, and visualization. In 2023,
ams OSRAM launched a large number of new LED and laser products that increasecustomer benefits, enhance product performance, and lead to efficiency gains in use.
For example, ams OSRAM introduced ALIYOS™ technology (LED-on-film technology)
in the automotive sector in 2023. In addition to standard lighting functions such as
brake lights or indicators, individual, customer-specific shapes and animation effects

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can also be created. It is also possible to display symbols, words, or images as well as
information or warnings. The use of this technology can therefore also contribute toincreasing road safety.
EVIYOS 2.0 technology also contributes to increasing road safety. Products with thistechnology can selectively illuminate the road to maximize the driver’s visibility in highbeam mode without dazzling other road users. High-resolution images can also be
projected onto the road to display warning symbols for the driver or other road users
or to guide the driver past obstacles.
In the area of plant cultivation and greenhouse lighting (horticulture), ams OSRAM
introduced the fifth generation of OSLON® Square Hyper Red LEDs for plant lighting during the 2023 fiscal year. The new generation enables faster plant growth while
optimizing system costs and reducing the use of resources, thus contributing to thesustainable development of agriculture (Controlled Environment Agriculture).
New, highly innovative image sensors with industry-leading high performance andlow energy consumption are being used in the healthcare sector. In medical imaging,
fast and low-noise solutions from ams OSRAM provide unprecedented image quality with reduced radiation dose. In addition, these new image sensors can be used infuture photon counting technology, which will enable even higher resolution computed
tomography.
Also in the healthcare sector, the SFH 7018 LED developed by ams OSRAM enables
more precise heart rate and blood oxygen measurements for wearables compared tothe previous product.

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Environment and Climate Protection

Key Societal Megatrends Drive Demand for our Light and Sensor Solutions
Industrial

MedicalConsumer

Energy efficiency

Smart living, health,and wellbeing

Digitalization

Automotive and mobility

Advanced displays, smart surfaces,
head-up displays, projected lighting

Industrial automation,
robotics & drones

Medical imaging

Consumer 3D sensing,camera enhancement

ADAS/AD (LIDAR), in-cabin sensing, dynamic
forward & signal lighting

HABA, outdoor & industry lightingHome diagnostics

AR/VR glasses sensing & visualiziation,
vital signs monitoring

Ambient lighting, UV-C disinfection

Horticulture, UV-C disinfection,
LED & laser projection

UV-C disinfection

BOLED ALS/spectral display management,
microLED displays

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One focus of development in the reporting period was microLED technology. It ischaracterized by microscopically small LEDs and enables, among other things, stronger colors, a high contrast ratio, an improved display in unfavorable lighting conditions, and lower energy consumption. Looking ahead, the use of this technology
could have a positive impact on SDGs 9, 12, and 13. The microLED strategy is currently
being reassessed due to the unexpected cancellation of a key customer-specific project relating to microLED technology at the end of February 2024.
An up-to-date overview of R&D processes with details of expenditure and innovative new products can be found in the ams OSRAM Annual Report, Management
Report, 3 Research and Development or can be accessed via the Company website. The technologies that contribute to the SDGs are listed in 2.0 Company Profile,and the extent to which these save resources can be found in 4.3.1 Resource Efficiency.

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Appendix

4.3 Circular Economy
A functioning circular economy is one of the keys to counteracting global challenges
such as the scarcity of resources or high volumes of waste. Raw materials should berecycled wherever possible, recycling should be expanded, and resource efficiency
should be promoted.
For these reasons, it is important for ams OSRAM to deal with materials and substances in a way that conserves resources. It has a positive impact on the environmental balance and also on the cost position of our products, while at the same timeit increases the acceptance of our products among our customers.

4.3.1 Resource Efficiency
In particular, ams OSRAM concentrates on controlling and reducing hazardous andcritical substances that are used in product manufacture and, in part, also remain
within the products. In the same vein, the ams OSRAM product portfolio requires theuse of minerals which, potentially, could be classed as conflict minerals 4.3.2 Conflict Minerals.
As we market our products around the world, the raw and other materials used in
production and remaining within products must satisfy increasingly stringent requirements and laws. Many of our customers set further demands on us that are more
rigorous than the legal requirements. Therefore, at ams OSRAM resource efficiency
begins at the R&D stage for new processes, technologies, and products. Implementation is the responsibility of the business units.
Guidelines, Responsibilities, Structures, and Processes
The corporate Environmental Protection, Health, and Safety (EHS) Department issues
specifications for the environmentally compatible design of products in terms ofmaterials used in manufacture and materials remaining in the product during the usephase. The specified processes safeguard compliance with legal requirements andcustomer demands regarding environmental compliance, in particular the constituent
substances, for new products and for ongoing product optimization. EHS advises andinforms all business units on the relevant statutory requirements and monitors compliance with them.

Our involvement in a number of industry associations enables us to anticipate newand likely regulations early on 3.2.4 Dialog with Stakeholders, Political Engagement,
and Memberships. In accordance with current legislation, the recycling of products
should be facilitated and the use of harmful substances avoided or declared wherever
possible. This serves to protect customers, users, and the environment 5.3.2 Product
Safety and Quality.

Objectives, Action Taken, Results, and KPIs
Our objective is to reduce the resources used by our products across their various
life cycle phases. We describe our R&D approach and how portfolio decisions arereached in 4.2.4 Green Tech Development. These are implemented via technology
roadmaps. We invest in resource-efficient processes and technologies as well as thecorresponding production technologies.

The statutory requirements concerning prohibited, restricted, and declarable substances are continually monitored with regard to the development, acquisition, andmanufacture of our products. In order to fulfill our responsibility along the supply
chain, we also involve our suppliers. They are required to promptly provide the necessary declarations, measured values and information for the qualification of newmaterials and new parts as well as for changes in the relevant laws 5.2 Supply
Chain Management.

We are continually seeking ways to reduce our resource consumption through new
approaches to recycling and reuse. We have been recycling germanium since 2021. By
the end of 2023, 63,000 new 6-inch wafers had been produced from the pure germanium obtained. Wastewater filtration and collection have already been upgraded toenable future recycling of gallium. Initial studies and discussions with recycling companies are underway.

In terms of operational implementation, we distinguish between the Opto Semiconductors (OS) and CMOS Sensors & ASICs (CSA) business units in the Semiconductor
segment on the one hand, and the Automotive and Special Lamps (AMSP) business
unit in the Lamps and Systems segment on the other. For the Semiconductors business units, we provide new and existing suppliers for direct materials and external
manufacture with our requirements when relevant changes occur, such as prohibited
substances Company website (see ams OSRAM product responsibility and list ofcritical substances). Suppliers must confirm receipt of those requirements and provide
evidence of compliance, for example in the form of the results of analytical investigations. The business units provide a material declaration for all semiconductor products. In the case of the Lamps and Systems segment, we monitor the use of criticalsubstances at component level. Before these are used, the suppliers must confirm
their compliance with our requirements. Against a backdrop of ever stricter requirements, we use a special IT application to ensure that our electric and electronic
devices are compliant. We obtain compliance documents from suppliers when there
are relevant changes to the law. Cross-industry databases such as IMDS and BOMcheck1 provide a framework for this.

At the beginning of 2023, we launched our “Eco-Friendly Packaging” project and frommid-2024, we will switch all OSRAM brand automotive aftermarket packaging to aplastic-free cardboard packaging variant for the ELAMEA regions (Latin America,
Europe, and the Middle East). The aim is to have fully eco-friendly packaging for the
automotive aftermarket in those regions by 2025. We expect to be able to reduce theamount of plastic by at least 200 tons by 2026.
At the same time, we are working on fundamentally new technologies 2.2.2 Our
Products’ Contribution to the SDGs. One of our fundamental development goals is tomake our products increasingly smaller.
Where required by law, we inform customers and the public via our Company website,where the relevant declarations on the conformity of our products with essential legal
requirements can be found. Products in the Lamps and Systems segment are subject
to specific legal requirements: customers must be given information about the substances used. This information has been provided in the product catalog, which is also
published on the Company’s website.

1 IMDS is the materials data sharing and management system for the automotive industry. BOMcheck is a databasefor material declarations in the electronics industry. BOM stands for “bill of materials.”

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4.3.2 Conflict Minerals

Environment and Climate Protection

The ams OSRAM product portfolio also requires the use of materials that could potentially be classed as conflict minerals due to their origin. This is particularly true of the
Democratic Republic of the Congo and neighboring countries, as well as for conflict-affected and high-risk areas (CAHRAs) as defined in EU Regulation 2017/821. We
are aware of the associated risks and are mitigating them as follows.

to conflict minerals in our supply chain, we use specialized tools to verify complianceby our suppliers: missing declarations are automatically requested and the feedback
is verified. Non-compliant smelters are identified in this way and can be phased out
if necessary. We report on the achievement of transparency targets via the coveragerate of our purchasing volume with the Conflict Mineral Reporting Template (CMRT)
and the Extended Mineral Reporting Template (EMRT) in 5.2 Supply Chain Management.

Guidelines, Responsibilities, Structures, and Processes
In order to fulfill our human rights responsibilities in the area of conflict minerals, wehave put in place appropriate due diligence processes for procurement 5.1 Respectfor Human Rights and 5.2 Supply Chain Management.

In the 2023 reporting period, OSRAM GmbH, as an EU importer (“Union importer”
in accordance with EU/2017/821), exceeded the volume threshold for tungsten, while
ams OSRAM International GmbH exceeded the value for gold. Associated measures
to comply with due diligence obligations have been initiated.

For the Semiconductors segment, responsibility for conflict minerals rests with EHS
and for the Lamps and Systems segment, with Procurement. Globally, a joint Conflict
Minerals Policy applies, which can be accessed online Conflict Minerals Policy.

We update our Conflict Mineral Reporting Templates for the Lamps and Systems andSemiconductor segments annually on our Company website. In addition, we havebeen publishing a monthly due diligence report on the two segments for our customers and the public since 2023.

ams OSRAM is a member of the Responsible Minerals Initiative (RMI). The information that can be accessed via the RMI and the sharing of data within the RMI help
us permanently monitor our supply chains with regard to conflict minerals as well as
mica and cobalt. If necessary, we influence our suppliers to restore the conformityof the deliveries with the specifications. RMI training materials are available to our
suppliers via an online training portal. When purchasing raw materials, ams OSRAM
makes sure it uses qualified sources. For example, all our directly commissioned
smelters for conflict minerals are RMI-certified.
Objectives, Action Taken, and Results
We strive for full transparency with regard to conflict minerals, including mica andcobalt, for everything we purchase. We are committed to the OECD “Due Diligence
Guidance for Responsible Mineral Supply Chains.” To fulfill its requirements in regard

4.3.3 Waste
ams OSRAM uses numerous substances in production that have an impact on people
and the environment as a result of their procurement, transport, usage, and disposal.
In semiconductor production, various chemicals and gases are used whose by-products then require special treatment. In some of our traditional lamp manufacturing
sites and at the Schwabmuenchen plant (Germany) we also use low-level radioactive
and mercury-containing materials. The associated waste is also subject to special due
diligence and documentary evidence requirements. Our environmental management
system is the basis for our waste management 4.1 Environmental Management.

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We pursue the aim at all our locations of avoiding waste in production or reusing thewaste, or — if neither is possible — ensuring its professional disposal. In this way, we
ensure that valuable materials are recycled and negative effects on the environment
are minimized or avoided entirely.
Structures and Processes
We record locally the amounts of waste that are recycled1 or sent away for disposal,
drawing a distinction in these categories between hazardous and non-hazardous
waste. Reduction of waste requiring disposal is a priority. In most cases, the quantities are calculated on the basis of quantified receipts from waste disposal providers.
Waste that is sent for recycling includes glass, metals, and paper/card as well as
solutions containing gold and contaminated N-Methyl-2-pyrrolidone (NMP) that areused in the semiconductor industry. These are primarily separated on-site or, if nottechnically feasible, by a service provider. The recovery of these valuable resources isalways carried out by specialists.
In the case of waste for disposal, we use both the option of incineration and landfill.
The decisive factors are the local regulations and the technical and economic possibilities. For this reason, we do not record this information by disposal method, but
distinguish between hazardous and non-hazardous waste for disposal. The sites in
Singapore already distinguish quantities of waste for incineration from those to besent to landfill. Employees who work with waste are trained in the locally applicableregulations.
Waste is also generated in the upstream supply chain. To ensure that waste is handled appropriately and in a way that conserves resources, we check that suppliers
maintain an environmental management system certified to ISO 14001 5.2 Supply
Chain Management.

1 ams OSRAM does not reuse such waste, but sends it directly and exclusively for recycling.

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Objectives, Action Taken, Results, and KPIs

Environment and Climate Protection

Hazardous waste is recycled and disposed of carefully by specialists in compliancewith local regulations. We are not aware of any breaches of the relevant legal provisions and requirements in the 2023 reporting period.

Waste
in metric tons

2020

2021

2022

2023

Waste for disposal

6,800

7,200

6,000

5,700

thereof hazardous

4,600

4,400

3,900

4,000

thereof non-hazardous

2,200

2,800

2,100

1,700

3.37

3.04

3.41

3.53

3.25

Specific waste for disposal per EUR 1 million
operating output
Target for waste for disposal in metric tons
per EUR 1 million operating output
Waste for recycling

8,600

8,500

7,200

6,100

thereof hazardous

2,900

2,300

2,200

2,200

thereof non-hazardous

5,700

6,200

5,000

3,900

As described in Chapter 4.1 Environmental Management, economic developments
influenced the KPIs and the amounts of waste generated in 2023. The absolute quantities both for disposal and for reuse were significantly lower than in the previous year.
The target scaled to operating output was missed by 4.9%. Waste management at
the sites is supported by the local EHS programs, for example:— At our semiconductor plant in Premstaetten (Austria), used chemicals such as potassium hydroxide solution and sulphuric acid are used to neutralize acidic or alkaline
wastewater. This saves several cubic meters of chemicals in the neutralization plant.
— At the same site, the installation of a new cleaning station for special wafer boxes
will also save 80,000 m³ liters of nitrogen per year.
— At the plant in Exeter (New Hampshire, USA), the use of a solvent recycling systemsaves around 2,200 l of solvent per year.

4.3.4 Water
Water is an important resource that, due to climate change, is becoming increasingly scarce around the world. Water is also important to ams OSRAM: as a process
medium in the manufacture of semiconductors, for cooling in production, and for sanitary purposes. Rationing water at our locations would compromise our productivity.
Therefore, we focus on the efficient and careful use of water.

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Appendix

pliance with the relevant legislation in the countries concerned. Such legislation is inforce in all countries where ams OSRAM has production facilities and it provides thebasis upon which government authorities grant environmental permits. All our sites
have permits to discharge wastewater or, where applicable, to operate neutralization plants. These generally contain very specific requirements concerning permitted
quantities, temperature, and chemical composition of the wastewater and the tests
to be carried out. Part of the groundwater we use for cooling purposes is returned inchemically unchanged form. Periodic checks are also required here. In all cases, thewater is returned as fresh water in accordance with the above definition. Some of thewastewater is hazardous and therefore has to be professionally treated by external
companies. The rest is released into the atmosphere via evaporative coolers.
Objectives, Action Taken, Results, and KPIs

At all our locations, we are careful to withdraw water sparingly. We ensure waste­water is treated chemically and physically in accordance with the requirements specified, or that it is properly disposed of. ams OSRAM uses only fresh water with lessthan 1,000 mg/l total dissolved solids and takes the majority of it from public drinking
water supplies (third-party water) and from groundwater. We are aware of sensitive
sources and reservoirs that are close to our production sites, and these are not used.
Structures and Processes
In order to proactively identify potential issues with the availability of water, we review
the water requirements at our locations every year using the World Resources Institute’s Aqueduct Water Risk Atlas1. The analysis looks at the levels of water withdrawal
as well as the type and amount of wastewater discharges at the locations. Data on
the amount of wastewater produced at the individual locations are collected every
year. Most of this is discharged as industrial or sanitary wastewater into the sewage
system or into surface water.
Where the quality of the withdrawn water has been compromised by our production processes, we purify the water before it is discharged. This process is in com-

Water Withdrawal
2020

2021

2022

2023

Municipal water supply

3,497,000

3,407,000

3,283,000

3,312,000

Groundwater from own supply

706,000

701,000

697,000

650,000

2,000

2,000

0

0

4,205,000

4,110,000

3,980,000

3,962,000

1,965

2,005

2,386

2,057

2,152

1,010,000

1,193,000

in cubic meters

Other water
Total
Specific water withdrawal
per EUR 1 million operating output
Target for water withdrawal in cubic meters per
EUR 1 million operating output
Ultrapure water (UPW) consumption

877,000

1,053,000

Absolute water withdrawal in 2023 was at the previous year’s level. The target, scaled
to operating output, was missed by 11% (see influence of economic developments on
KPIs in 4.1 Environmental Management). Other influencing factors included signif-— In addition, process optimization has reduced hazardous waste there by around3 t per year.
1 The “business as usual” scenario (SSP2 RCP8.5) applied by the WRI Aqueduct tool assumes a rise in average global
temperatures of 2.6-4.8 °C compared with figures recorded between 1986 and 2005.

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icant reductions due to the closure and sale of production facilities in Singapore and
Italy. On the other hand, the new production module in Kulim (Malaysia) was responsible for a relevant increase.
ams OSRAM does not currently consider the availability of water to be very critical at
any of its locations. The aforementioned risk analysis revealed that, in the “businessas usual” scenario in the regions in China, Singapore, and Malaysia, where our semiconductor plants are based, water demand will at times increase greatly by 2030,
which could lead to increased water stress. We will continue to monitor developments.
Climate-related physical risks can be found in Chapter 7.4 TCFD Recommendations.
We do not pursue any specific targets for the discharge of wastewater. However, volumes are recorded and monitored within the framework of our EHS management.
Around 18% of total water withdrawal in 2023 was attributable to losses in waste
value streams or evaporation into the atmosphere.

Environment and Climate Protection

In the year under review, action taken to reduce water withdrawal included thefollowing:

Society

2020

2021

2022

2023

Into public sewers as industrial wastewater

2,507,000

2,282,000

2,274,000

2,411,000

Into public sewers as sanitary wastewater

564,000

595,000

473,000

413,000

Into saline surface water as industrial
wastewater

389,000

391,000

337,000

333,000

Into non-saline surface water as industrial
wastewater

30,00030,00022,00017,000Into the groundwater as chemically unchanged
wastewater from cooling processes

100,000

113,000

101,000

61,0003,590,000

3,411,000

3,208,000

3,235,000

615,000

699,000

772,000

727,000

in cubic meters— From 2023 onwards, around 1,100 m³ of demineralized (DI) water will be saved
each year at the plant in Penang (Malaysia) in the ultrapure water preparation
process through various optimization measures.
— At the plant in Schwabmuenchen (Germany), production changeovers have
reduced annual freshwater consumption by around 15,000 m³.
— At the Exeter plant (New Hampshire, USA), various water-saving measures, including in the area of clean room humidification, resulted in a reduction of 1,300 m³ ofwater.
The quality of the data on wastewater discharges from our neutralization plants isvery high. For other wastewater paths, however, data have to be estimated in somecases. The official monitoring values for water quality were mostly met. Containment
measures are taken immediately when these are exceeded and corrective actions toprevent future incidents are agreed with the authorities.

Appendix

Wastewater by Destination

Total
Consumption — through evaporation,
disposal as waste, other losses

So that our efforts can be externally assessed, we take part in the annual survey by
the CDP Water Security Initiative for reporting relevant data.
CDP Water Security

Score

ams OSRAM Sustainability Report 2023

Responsibility to Employees

2021

2022

2023

B-

B-

C

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Appendix

4.4 EU Taxonomy
One of the key aims of the EU Action Plan on Sustainable Finance is to redirect capital
flows into sustainable investments.
Against this backdrop, in July 2020 the EU Taxonomy Regulation (EU) 2020/852
entered into force. As a standardized and legally binding classification system, theRegulation stipulates which economic activities are considered “environmentally sustainable” in the EU. The Regulation requires companies to annually disclose the resultsof this classification in the form of revenues, investments, and operating expenses inconnection with sustainable activities.
ams OSRAM supports the EU agenda for redirecting capital flows into sustainable
investments and believes that the reports required by the Taxonomy Regulation are
a key tool in realizing the EU’s decarbonization and environmental objectives for 2030
and 2050. Being keen to achieve the necessary transparency in its own portfolio,
ams OSRAM is hereby publishing its second voluntary EU Taxonomy Report for 2023.
The obligation to report in accordance with the Taxonomy Regulation does not begin
for ams OSRAM until the 2025 fiscal year.
Article 9 of the Taxonomy Regulation lists the following six environmental objectives towhich a business activity must substantially contribute in order to be classified as sustainable:
1. Climate change mitigation
2. Climate change adaptation
3. Sustainable use and protection of water and marine resources
4. Transition to a circular economy
5. Pollution prevention and control
6. Protection and restoration of biodiversity and ecosystems
To classify an activity as “environmentally sustainable” for EU Taxonomy purposes, adistinction must be made between eligibility and alignment. Firstly, this entails investigating whether an activity is described in the Delegated Act and, as such, is eligible.

ams OSRAM Sustainability Report 2023

The next step is to establish whether an eligible economic activity fulfills the stipulated
criteria for making a significant contribution to one of the six environmental objectives,
does no significant harm to any other environmental objective, and complies with theminimum social safeguards. Only if all criteria are met is an activity considered asaligned and, therefore, “environmentally sustainable.”
As in the previous year’s reporting, only information on taxonomy eligibility isreported here. Pursuant to the Delegated Act on Article 8 of the EU Taxonomy Regulation 2020/852, the following KPIs must be reported: revenues, capital expenditure(CapEx), and operating expenditure (OpEx).
EU Taxonomy KPIs
In accordance with Section 245a (1) of the Austrian Companies Code, the consolidated financial statements of ams OSRAM were drawn up on the reporting date inaccordance with IFRS. The amounts used to calculate the revenues, CapEx, and OpEx
KPIs are based on the figures reported in the consolidated financial statements. The
EU Taxonomy Report takes account of the effect on the portfolio of the disposal ofcompanies. Therefore, in the report for EU Taxonomy purposes, the scope of consolidation includes all Group companies that have not been disposed of or are not being
made ready for disposal.
A project team of product and technical experts at ams OSRAM assessed the portfolio’s eligibility, recorded KPIs, and drew up the report according to EU Taxonomy rules.
In line with their areas of expertise, these experts reviewed the portfolio by carryingout a detailed investigation of the areas of application — comprising individual product families — and finalized the processes for accurate data collection. To avoid double counting, figures were only assigned to one activity.
Revenues
This KPI is based on net revenues as reported in the Consolidated Statement of
Income disclosed in the Annual Report 2023 ( ams OSRAM Annual Report, Notes
to the Consolidated Financial Statements, Note 2, EUR 3,590 million). These revenues

comprise revenues from contracts with customers pursuant to IFRS 15, fromwhich the Group companies not covered in the EU Taxonomy Report are deducted(EUR 113 million). The revenue denominator for Taxonomy purposes for the 2023
reporting year is therefore EUR 3,477 million.
The KPI for sustainable revenues as defined by the EU Taxonomy Regulation is calculated based on net revenues in connection with eligible activities (numerator), divided
by total net revenues (denominator).
Revenues of the consolidated Group companies were investigated by ams OSRAM
to ascertain whether they were made from eligible activities as per Annexes I and II
of Delegated Regulation (EU) 2021/2139 and Annexes I to IV of Delegated Regulation (EU) 2023/2486. The detailed analysis of the portfolio based on technology andproduct application fields enables the allocation of the respective revenue to eligible
economic activities at the level of product families per technology and application
field. The numerator is total revenues from eligible activities for 2023, which total
EUR 1,879 million. They are generated from the activities 3.4 “Manufacture of batteries,” 3.5 “Manufacture of energy efficiency equipment for buildings,” 3.6 “Manufactureof other low carbon technologies,” 1.2 “Manufacture of electrical and electronic equipment,” and 5.2 “Sale of spare parts.”
When calculating the KPIs for CapEx and OpEx, allocation formulas based on therevenues from defined eligible activities were used. To ensure these allocations are
as accurate as possible, the allocation formulas were assigned to, and calculated for,the lowest consolidation level in each case (Group, segment, business line, application,
product family level) based on their population.
CapEx
The population for the CapEx KPI is comprised of additions to property, plant,
and equipment ( ams OSRAM Annual Report, Notes to the Consolidated Financial
Statements, Note 11), intangible assets ( ams OSRAM Annual Report, Notes to theConsolidated Financial Statements, Note 12), and right-of-use assets ( ams OSRAM

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Annual Report, Notes to the Consolidated Financial Statements, Note 13), as well as
additions from business combinations ( ams OSRAM Annual Report, Notes to theConsolidated Financial Statements, Notes 11-13) in the explanatory notes to the balance sheet in the Annual Report (in all: EUR 790 million). For the 2023 reporting year,
the Taxonomy CapEx denominator amounts to EUR 790 million.
The CapEx KPI reflects the share of capital expenditure either directly connected with
an eligible activity, connected with a plan to expand or establish a sustainable activity, or relating to the production or acquisition of products and services from an eligible activity or individual measures to reduce greenhouse gas emissions.
Having considered investment expenditure in relation to its profit center per area of
application as well as in light of the project description of additions, eligibility wasthen analyzed based on Annexes I and II of Delegated Regulation 2021/2139 as wellas Annexes I to IV of Delegated Regulation (EU) 2023/2486. Eligible investments werethen assigned using allocation formulas for each lowest consolidation level and by
selecting individual, specific project descriptions for overarching, cross-cutting activities and for individual measures.
The sum of eligible investments yields the numerator for the CapEx KPI which, for theyear under review, is EUR 422 million.
OpEx
Operating expenditure (denominator) is based on direct, non-capitalized costs ofresearch and development, building renovation work, additions to short-term leasing,maintenance and repairs, and all other direct expenditure on regular maintenanceof property, plant, and equipment by the Company or third parties that is essential
to ensure their continuous, efficient functioning. These expenses were adjusted to

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Environment and Climate Protection

disregard the Group companies not covered by the EU Taxonomy Report. In orderto ensure the required level of detail of the OpEx components of the Taxonomy Regulation with regard to building renovation measures and maintenance and repair
expenses, including other direct expenses for the ongoing maintenance of property,
plant, and equipment, a data query was carried out at the Group companies consolidated in the EU Taxonomy reporting. For the 2023 reporting year, the Taxonomy OpEx
denominator is EUR 661 million.
The OpEx KPI reflects the share of operating expenditure for EU Taxonomy purposesthat relates to eligible activities, a described CapEx plan, or the production or acquisition of products and services from an eligible activity, or individual measures toreduce greenhouse gas emissions.
The numerator is obtained by analyzing the eligibility of the expenditure recorded in
the aforementioned accounts and query data, based on Annexes I and II of Delegated Regulation (EU) 2021/2139 as well as Annexes I to IV of Delegated Regulation(EU) 2023/2486. Eligible costs were calculated using assigned allocation formulas per
lowest consolidation level and by selecting individual, specific project descriptions foroverarching, cross-cutting activities and for individual measures.
The total eligible operating expenditure yields the numerator for the OpEx KPI which,for the year under review, is EUR 218 million.
Overview
The revenue, CapEx, and OpEx analyzed are classified by the economic activities
described in Delegated Regulation (EU) 2021/2139 Annex I and Delegated Regulation(EU) 2023/2486 Annex II. Products in the ams OSRAM portfolio contribute to the environmental goal “Climate change mitigation” with the activities described in 3.4 “Man-Society

Responsibility to Employees

Appendix

ufacture of batteries,” 3.5 “Manufacture of energy efficiency equipment for buildings,”
and 3.6 “Manufacture of other low-carbon technologies.” The products also contributeto the environmental goal “Circular economy” with the activities 1.2 “Manufacture ofelectrical and electronic equipment” and 5.2 “Sale of spare parts.” They can thus beidentified as eligible. Activities in the areas of new construction, building energy efficiency, transport, and IT were identified as overarching, eligible activities. No activities
were identified as being listed in Delegated Regulation (EU) 2021/2139 Annex II and
Delegated Regulation (EU) 2023/2486 Annex I, III, and IV.
Eligible Activities in the Context of the ams OSRAM Portfolio
As a leading provider of light and sensor technologies, we offer our customers adiverse product portfolio. Further information can be found in 2.2.1 Our Portfolio.
Product portfolios based on light emitting diode (LED) technology and sensor solutions are most relevant to the activities currently published in the Taxonomy Regulation. Eligible shares originate both from the semiconductor portfolio of ams OSRAM
and from the Automotive and Specialty Lamps Business Unit, including the automotive aftermarket and automotive and specialty lamps. The portfolio thus covers various applications, such as vehicle lighting, (vehicle) drive and building management, as
well as LED retrofit lamps and vehicle battery chargers.
In the field of energy-efficient design of buildings and rooms (activity 3.5 “Manufacture of energy efficiency equipment for buildings”), ams OSRAM offers LEDs, spectral,
and ambient light sensors. These enable not only the modulation of lighting scenes,
but also the implementation of presence detection and distance measurements.
These technologies help to reduce overall energy consumption and increase building efficiency — whether in workplaces, educational institutions, hospitals, or living
spaces.

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Our solutions for the automotive industry support battery management and contribute directly or indirectly to reducing greenhouse gas emissions. These products
can be allocated to activities 3.4 “Manufacture of batteries” and 3.6 “Manufacture ofother low-carbon technologies.” ams OSRAM also produces spare parts for the automotive industry, which can be allocated to activity 5.2 “Sale of spare parts.” We also
manufacture automotive accessories, which can be allocated to activity 1.2 “Manufacture of electrical and electronic equipment.”
Other Activities of ams OSRAM
In conclusion, we would like to point out that not all technologies that support andmay be capable of accelerating the EU’s decarbonization and environmental objectives are classified in the current EU Taxonomy. Enabling activities, in particular, canoften be identified as making an indirect contribution to decarbonization. Therefore,
ams OSRAM supports the addition of these enabling activities to the EU Taxonomy,such as electrical components, which are a key feature of our portfolio. The various
areas in which electrical components can be applied offer many industries the opportunity to design more energy-efficient applications and make a direct and indirectcontribution to reducing greenhouse gases, particularly during the use phase of theend product. Some examples are:— Agriculture and horticulture lighting — today, precision LED lighting and modern
sensor solutions enable the more intelligent, simple, and sustainable cultivationof crop plants. This opens up innovative opportunities to transfer cultivation tocontrolled environments and, irrespective of the natural surroundings, to the vicinity of large centers of consumption. Not only does this reduce the use of natural
resources, it also enables a reduction in greenhouse gases caused by long transport routes.

Environment and Climate Protection— Visualization — A strong sense of immersion will be crucial to the success of augmented reality/virtual reality, whether for virtual or mixed reality with pass-throughor see-through experiences. The photorealistic blending of digital and real-life content makes it possible to reduce private or professional travel, thus helping to lower
emissions. ams OSRAM is a world leader in near-to-eye projection systems that
display vivid, razor-sharp content for maximum realism.

Society

Responsibility to Employees

Appendix

Summary EU Taxonomy KPIs

46%
Revenues
54%

33%
47%

CapEx

OpEx

53%
67%

Not eligible  

0

1,000

2,000

Eligible

3,000

4,000

Revenues
3,477
1,879

CapEx
790
422

OpEx
661
218
Total KPI (denominator)  

ams OSRAM Sustainability Report 2023

Eligible (numerator)

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5.0
Society

Environment and Climate Protection

Society

Responsibility to Employees

Appendix

Respect for Human Rights
Supply Chain Management
Product Responsibility
Customer Satisfaction
Product Safety and Quality
Social Engagement

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Appendix

5.1 Respect for Human Rights
According to the United Nations, human rights are under greater threat today thanthey have been for many years. Companies too must step up and do whatever iswithin the scope of their influence to help protect human rights — both voluntarily aswell as in compliance with government regulations on aspects such as supply chains.

and the UN Guiding Principles for Business and Human Rights, the fundamental conventions of the International Labour Organization (ILO), and the principles of the UN
Global Compact. We require all employees to comply with this policy in their area of
responsibility.

fidentially and investigated in detail, and findings are derived and documented. If
reports prove to be justified, we take the necessary measures such as conflict mediation, improving working conditions, or legal consequences to stop, or prevent, or minimize the violation.

We are also increasingly being called upon by our investors and customers to identify
and, where applicable, prevent any adverse impact that our business activities andbusiness relationships may have on human rights. We fulfill these requirements not
only in our own business area, but also as part of our procurement strategy which,among other things, strives to continually increase transparency in our supply chain
5.2 Supply Chain Management.

The ams-OSRAM AG Management Board has appointed the Head of Compliance,
Audit, and Risk Management as the central human rights officer for the ams OSRAM
Group. They are responsible for monitoring the fulfillment of all due diligence obligations, including the risk management system under the German Act on Corporate Due
Diligence Obligations in Supply Chains (“Lieferkettensorgfaltspflichtengesetz,” LkSG),
throughout the ams OSRAM Group. They regularly inform the Management Board,
the Supervisory Board, and the management of the German Group companies thatfall under the scope of the LkSG, at least once a year.

Objectives, Action Taken, Results, and KPIs
Our aim is to make the organization even more aware of this important issue in order
to avoid risks or violations in the areas of human rights, fair working conditions, andthe principle of mutual respect.1 To this end, we use various preventive measures suchas providing regular training to our employees to raise awareness and ensure compliance with our Code of Conduct. Adjustments to our prevention measures may result
from audits as well as from regional and country-specific requirements (e.g. changes
in legislation).

Guidelines, Responsibilities, Structures, and Processes
At ams OSRAM we do not tolerate any form of modern slavery, child and forcedlabor, or human trafficking — either within our own business activities or involving our
suppliers or business partners.

Various central departments at ams OSRAM work closely together to continuously fulfill our human rights and environmental due diligence obligations. The Environmental
Protection, Health, and Safety (EHS) Department of the ams OSRAM Group is responsible for the operational fulfillment of the corresponding activities assigned to themat their own locations, including the subsidiaries. The Procurement Department is
responsible for implementing our due diligence obligations for the entire supply chain.
The Compliance Department is responsible for the “Tell ams OSRAM” whistleblower
system, which is a key element of our complaints management 3.3 Combating Corruption and Anti-Competitive Behavior. Furthermore, the internal Audit Department
continuously reviews the compliance, effectiveness, and efficiency of the risk management system throughout the Group.

Our Group-wide Policy for Human Rights sets out our position on respecting
human rights. It applies to all employees, i.e. permanent employees, temporary, andmigrant workers and students. We acknowledge and support internationally recognized human rights at all our locations and are committed to the principles of theUnited Nations Human Rights Charter, which we actively support as a member of
the UN Global Compact. This is based on the Universal Declaration of Human Rights

Risks or violations of human rights, such as violations of the principle of fair working
conditions or the principle of mutual respect, in particular through discrimination, bullying, and sexual or other harassment of any kind, can be reported to the relevant
manager, the Compliance Department, or other internal departments such as the
responsible local HR department, the Procurement Department, or the EHS Department via the “Tell ams OSRAM” whistleblower system. All reports are treated con-

In 2022, a methodology for identifying and evaluating potential human rights risks
in our own business area was developed in order to carry out standardized risk analyses at our locations and companies in Germany and abroad on an annual and ad
hoc basis in future. In 2023, we carried out this methodology for the first time at alocation in a high-risk country in Asia and examined another location or subsidiary inGermany. The risks identified were assessed and prioritized. Based on this, a concrete
action plan was drawn up to prevent or minimize the identified and prioritized risks
in the future. Implementation is continuously monitored. Indications of potential risks
or violations in the areas of human rights, fair working conditions, and the principleof mutual respect that were received via the “Tell ams OSRAM” whistleblower systemor other reporting channels were recorded, analyzed, and followed up. In the case ofproven and justified risks or violations, we have taken the necessary remedial measures (including possible compensation or consequences under labor law) to eliminate, minimize, or prevent the grievances.

As an international company with diverse products and complex global value chains,
we are aware that our business relationships present the risk of human rights violations, especially for groups such as migrant, temporary, and subcontract workers.
The ams OSRAM product portfolio also requires the use of materials that could
potentially be classed as conflict minerals due to their origin. To a very small extent,
for example in a traditional automotive product line, cobalt is also used, the mining of
which entails social risks 4.3.2 Conflict Minerals.

Prevention also includes training. As part of the annual training on the Code of Conduct 3.3 Combating Corruption and Anti-Competitive Behavior, all employees havealso received training on human rights and fair working conditions since October

1 See 3.2.3 Sustainability Strategy, diagram with targets: performance of RBA audits at our own locations and human rights training planned.

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Environment and Climate Protection

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Appendix

5.2 Supply Chain Management
Our value chain includes the purchase of materials and services 2.1 Our Company.
The main sourcing countries are Germany, Malaysia, Singapore, China, and the USA.
The largest material fields by volume are investments in construction, systems, andprimary materials for optical semiconductors.

2023. Previously, this topic was part of the personal “Compliance Basic” training
course.
Overview of Violations of Human Rights and Fair Working Conditions
2023
Incidents during the reporting period

33

Incidents closed during the reporting period

28

thereof number of incidents with proven violations17

thereof number of consequences under labor law in the event of proven violations

6

Inventory of (unclosed) incidents as of December 31st

5

1	Among the incidents with proven violations is no case of serious human rights violations such as child or forced laboror modern slavery. Rather, these are cases of discrimination, harassment, and non-serious work-related incidents.

Supplier Management Process
Ris
k

a

Phase out

rs
upplieCode of
Conduct

Monitoringsfor Classification,
qualification,
selectionet

Scouting

The following requirements are pivotal to responsible sourcing:— Neither humans nor the environment must be harmed in our upstream value chain.
Legal requirements, particularly those protecting human rights and the environment, must be fulfilled. We implement up-to-date regulatory requirements in processes and activities.

m

m
ge

Guidelines, Responsibilities, Structures, and Processes
The objective of our procurement strategy is to create resilient supply chains foundedon long-term cooperation with reliable partners. To fulfill our responsibility we alsoneed partners who share our values. Therefore, we have defined clear ethical rules
and incorporate social and environmental criteria in our procurement strategy, processes, and decisions. Implementation is carried out according to our Roadmap for
Responsible Sourcing.

The Group Procurement Guideline, our procurement policy, the Code of Conduct for
Suppliers, and the supplier management process form the framework for cooperation
with our suppliers.

na

Our specialist departments continuously monitor and review relevant national andinternational frameworks on human rights in order to implement any necessarychanges in a timely manner. As part of this, in 2023 we placed a significant focus on
fulfilling the requirements of the LkSG, such as expanding our risk management toinclude compliance with human rights due diligence obligations and the associatedregular risk analyses in our companies that fall under the law, regulating internal
responsibilities, and publishing a declaration of principles for the German Group companies that fall under the scope of the LkSG. The existing Group-wide human rights
policy was also updated in 2023.

For Tier 1 suppliers, social and environmental topics are the main source of potential
risk of negative effects arising from supply chain management, some examples being
possible breaches of fair labor conditions and non-compliance with environmental
regulations. As regards the wider supply chain (beyond Tier 1), raw material extraction
presents the greatest risk of potential human rights breaches.

Supplier Management
The importance of sustainability in procurement at ams OSRAM is reflected in definedrules, processes, and tools. The Procurement Excellence Department is responsible forsupplier management processes. Implementation takes place in the local procurement organizations.

– Risk analysis basedon indices of RBA
platform– Country-specific:
self-disclosure (CRSA)– Risk-based:
Corporate Responsibility (CR) audit– Category-based:certifications

Development— Decarbonization of our supply chain is to be accelerated.
The procurement function of ams OSRAM operates on a global scale. Depending on
the business unit concerned and the procurement markets for specific materials andservices, procurement activities take place either globally or regionally. The responsibility for semiconductor business procurement lies with the CFO. Responsibility for
procurement in Lamps and Systems rests with the segment’s Controlling unit, forwhich the CFO is responsible. The head of Procurement oversees the ESG program in
the supply chain.

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Code of Conduct
The Code of Conduct for Suppliers is the foundation of our cooperation with our suppliers. It takes into account international standards such as the UN Global Compact,
the Code of Conduct of the Responsible Business Alliance (RBA), and the conventions of the International Labour Organization (ILO). The commitment to the Code of
Conduct is mandatory for all suppliers with a procurement volume of EUR 50,000 or
more. It is also part of the qualification process for new suppliers.
Risk Management
Ongoing reviews of the procurement process to identify possible risks are a coreelement of supplier management. The handling of supply chain risks specific to procurement and sustainability is also embedded in the Company-wide risk management
system ams OSRAM Annual Report, Management Report, 8 Risk Management.
Risks in the supply chain are very complex. Firstly, there are procurement risks, which
are bound up with a supplier’s financial stability, the criticality of the material, or thegeopolitical situation. Continuous monitoring of these risks is carried out for suppliersof direct materials. The results of this, together with the purchasing volume and thestrategic relevance of the suppliers, are used to define critical suppliers.
Secondly, there are risks where the actions of a supplier could cause potential harmto people, the environment, or society. We use the risk assessment platform of the
Responsible Business Alliance (RBA) for the initial analysis of our procurement volume
with regard to governance-related (business ethics and human rights), social (labor,
health, and safety), and environmental risks. The risk assessment is based on a large
number of indices, which are used to carry out a geographical and product-related
risk classification. The result is an overall risk rating. The result is presented in a risk
mapping and serves as the basis for the further concrete review of the potential highrisk suppliers identified.
After analyzing existing certificates, self-assessments (Corporate Responsibility SelfAssessment, CRSA), and sustainability assessments, these high-risk suppliers can berequested to undergo a supplier audit (Corporate Responsibility Audit) — e.g. according to the RBA standard.

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Appendix

Foundation of Responsible Procurement
Laws
Compliance with all applicable laws

Supply Chain

Corruption

The express demand that these principles are implemented
and complied with in the supplier’s own supply chain

Combating corruption

Environmental Protection

Codeof
Conduct

Human Rights

Compliance with the relevant national laws and international
standards on environmental protection, establishment of afunctioning environmental management system, and continuous
improvement of environmental protection

Respect for the human rights of their employees;
compliance with laws against child labor;prohibition of all forms of modern slavery, forced labor, and human trafficking

Health and Safety

Fair Labor Conditions

Responsibility for employee health and safety

Compliance with minimum wages and maximum
permissible working hours; freedom of association;and right to collective agreements

Supplier Classification, Qualification, and Selection
To begin with, supplier classification and qualification involves identifying potential suppliers. In the ensuing selection phase, the foundations are laid for deciding
whether to add the vendor to ams OSRAM’s global supplier network. As well as business-related, product-specific, and formal decision-making criteria, sustainability-related requirements relating to human rights due diligence, environmental protection,and governance are also taken into account as part of supplier classification andqualification. These requirements depend on the material sourced, the country inwhich it is sourced (see 3.2.5 Risk Management and Geopolitical Risks), and the volume purchased from the suppliers. Some of the requirements are as follows:— Mandatory self-declaration of corporate responsibility by suppliers from countries
with increased social risks— Mandatory certification in accordance with ISO 14001 and compliance with RoHS
(Restriction of Hazardous Substances in Electrical and Electronic Equipment) and
REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals) by
suppliers of production materials— Mandatory auditing in accordance with VDA 6.3 (German Association of the Automotive Industry) for automotive suppliers in direct material purchasing (including
social and ecological criteria)

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Sustainable Corporate Governance and Integrity— Checking all new suppliers against international sanctions lists. These also include
suppliers flagged for human rights violations, such as those on the U.S. Department of Homeland Security’s entity list in connection with the Uyghur Forced
Labor Prevention Act (UFLPA). Existing suppliers are checked with every order andbefore every payment run.
— Inclusion of the expected energy consumption or CO2 emissions for energy-intensive equipment in the total cost of ownership calculation. This means that costsavings, for example through lower energy consumption over the entire service life,
are also taken into account.
If a potential supplier successfully makes it through this selection process, it is added to
ams OSRAM’s supplier network and, as such, continues to undergo regular monitoring
as a member.
Supplier Monitoring and Development
The supplier monitoring process contains mechanisms that systematically check compliance with the requirements. This includes, for example, carrying out sustainability
ratings for strategically relevant suppliers. Depending on the results, the strategicpurchasers work with the relevant suppliers to define measures for a set period aspart of the development process. If the review reveals excessive gaps compared to
ams OSRAM’s requirements, these suppliers will no longer be considered in the procurement process until further notice.
Training for our Employees
We rely on motivated and properly trained employees to enable us to implement andkeep developing the supplier management process. We regularly provide information and training to our global procurement teams on overarching topics, such as on
human rights, responsible sourcing, and specific changes. We regularly publish information and training documents in our Procurement Portal in order to pass on sustainability-specific expertise to our suppliers.
Objectives, Action Taken, Results, and KPIs
We have set ourselves various goals for responsible procurement, and we made good
headway with them in 2023:

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Appendix

Targets and Progress in Supply Chain Management
STRATEGIC
FOCUS

GOAL

PROGRESS/RESULTS 2023

— Purchasing volume fully covered by Code of Conduct for Suppliers.

—— Entire purchasing volume fully covered by risk classification.

— All ams OSRAM suppliers have undergone risk classification via RBA tool. The suppliers identified as high risk
(sector and country risk) have been further investigated.

— Improved protection of employees of on-site service providers.

— A mandatory supplement to our Code of Conduct was developed for on-site service providers in 2023. Thisobliges suppliers to comply with requirements regarding working hours, the prohibition of forced labor, and thecorrect handling of migrant labor. The roll-out is planned for 2024.

— Science-based reduction in Scope 3 emissions (purchased goods andservices).

—— Transparency regarding our suppliers’ carbon footprint.

— In the sustainability assessment of relevant¹ suppliers, their CO₂ emissions were taken into account. A process
to create transparency regarding the carbon footprint (Scope 1, Scope 2, and Scope 3) of relevant1 suppliers
was implemented in 2023 by means of a mandatory questionnaire.

Environmental
Protection— Increase of the ISO 14001 certification coverage rate of suppliers of directmaterials.

—

Society— Increase of the coverage rate of high-risk suppliers with self-disclosure on
the topics of combating corruption and bribery, human rights, health andsafety, working conditions, and the wider supply chain.

— As of December 31, 2023, 98% of the purchasing volume from suppliers in high-risk countries was covered by
self-certification (CRSA).

— Higher coverage of Corporate Responsibility (CR) audits.

— A series of CR audits were performed in 2023 by independent auditing firms. They covered our fulfillment ofour duty of care with regard to human rights and compliance with our Code of Conduct for Suppliers. The
audit findings were evaluated: Shortcomings were found in adherence to working hours and occupationalsafety. In the area of the environment, there were a few shortcomings with regard to adequate or effective
guidelines for environmental protection and control processes. Measures have been initiated; the implementation is still ongoing.

— Conflict minerals: increase of the Conflict Minerals Reporting Template(CMRT)/Extended Mineral Reporting Template (EMRT) coverage rates.

—— Conflict minerals: design and implementation of a process for a
conflict-free supply chain.

— In 2023, the yearly evaluation was switched to a monthly evaluation. Defined due diligence activities apply to
non-compliant suppliers. The monthly report is published on our website.

— Design and implementation of a scheme for monitoring on-site service
providers in high-risk countries to protect the human rights of employees.

— On-site service providers in high-risk countries are evaluated annually using a defined set of criteria on the
topics of migrant labor, forced labor, and working hours. A pilot took place in 2023; the roll-out is planned for2024.

— Building and improving expertise on sustainability-related topics in thepurchasing organization.

— In 2023, we provided both on-site and online training on the topic of sustainability for purchasing employees.

— Building and improving expertise on sustainability-related topics in our
supplier network.

— We provided self-learning and online training courses for suppliers on topics such as human rights, decarbonization, and the ams OSRAM sustainability strategy and Code of Conduct.

Governanceand Integrity

Decarbonization

Structures andProcesses“Procurement Key Figures” table

4.2.3 Greenhouse Gas Emissions“Procurement Key Figures” table“Procurement Key Figures” table

1 Relevant here means suppliers with the highest impact on our purchasing volume.

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Appendix

5.3 Product Responsibility
Procurement Key Figures

Number of suppliers
Procurement volume (goods and services purchased fromthird parties)
thereof accounted for by local suppliers1

2021

2022

2023

14,654

12,714

11,041

2.9

3.1

2.9

51%

53%

52%

Supplier Codes of Conduct
Newly signed codes of conduct

2662

430

550

 Coverage of procurement volume with Supplier Code of Conducts
in total

97%2

92%

98%

Proportion of direct procurement volume covered by ISO 14001

89%2

94%

95%

Conflict Minerals Reporting Template (CMRT) coverage

97%2

99%

99%

Extended Mineral Reporting Template (EMRT) coverage

81%

97%

Corporate Responsibility Self Assessment (CRSA) coverage

92%

98%

1 Local suppliers are defined as those that are based in the same country as the purchasing ams OSRAM location.
2 Only data on OSRAM activities were considered here. The information on OSRAM for 2020 and 2021 represents
around two-thirds of the Group-wide procurement volume. The coverage rate of the relevant procurement volumes
with regard to the respective criteria is shown.

ams OSRAM Sustainability Report 2023

We take responsibility for products throughout their entire life cycle — from the design
4.2.4 Green Tech Development and the materials used 4.3.1 Resource Efficiency,
4.3.2 Conflict Minerals to the customer 5.3.1 Customer Satisfaction and 5.3.2
Product Safety and Quality. The possible negative effects and how we strive to avoid
them are described below. The positive effects of our products are explained in
2.2.2 Our Products’ Contribution to the SDGs.

5.3.1 Customer Satisfaction
Our customers’ satisfaction is critical to our commercial success and constitutes anessential component of our customer-focused approach. Our aim with our portfolio
is to support them in their commercial and sustainability-related goals. This relies not
only on innovation, but also on the enduring and trusting partnerships we nurture withour customers in order to fulfill their expectations.
Responsibilities, Structures, and Processes
Our customer relationships are developed via a key account management modelusing processes applicable worldwide. These were defined in accordance with ourbusiness model 2.1 Our Company for the segments Semiconductors and Lamps
and Systems as part of our market to business strategy. A regionally positioned,
global sales and marketing team is responsible for the entire semiconductors business, and this team’s management reports to the CEO. The sales organization is working on an online customer platform for the whole Group. There are separate salesorganizations for the traditional automotive business and the entertainment/industry
segment.

Our customers are looked after by dedicated account managers, working with technical experts who also assist with quality issues. They liaise closely with customers,
ensuring they stay abreast of customer satisfaction. Key accounts (major customers
who are defined by share in revenues and growth potential) each have a designatedcontact who handles their current and future concerns. This “one face to the customer” principle is designed to ensure customer satisfaction.
The Customer Service team was integrated into the global sales team for the semiconductor business in 2023 in order to better serve both our direct customers and ourmass market customers. ams OSRAM values feedback on the satisfaction and loyalty
of its customers and continuously incorporates this feedback into the improvement ofprocesses and structures.
Defined processes are in place for customer feedback of any kind: for instance, theproduct or process manager within the business units is involved to work on a solution
when negative feedback is received. This also applies in the event that general communication to customers is necessary, for example in the form of a customer letter.
Action Taken and Results
We hold “Tech Days” to meet with customers, discuss joint roadmaps, and receive
their feedback on what we are doing. We also support our customers throughout theentire purchase decision-making process (customer journey) with various digital andnon-digital contact points. Here, company websites play a crucial role, as do social
media channels, newsletters, blogs, and digital communication, which we implementwith our distribution partners. As well as attending trade fairs, we also rely on digitalplatforms and formats, including a digital event platform and a showroom thatserves as a direct point of contact with customers.

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5.3.2 Product Safety and Quality
ams OSRAM strives to offer high levels of quality, safety, and reliability in its products
and solutions. In order to fulfill this promise to our customers and thus contribute to
the long-term success of our business, we have established corresponding guidelines
within the Company. Our automotive customers in particular set high standards thatmust be maintained to retain their business.
Guidelines, Responsibilities, Structures, and Processes
Product safety at ams OSRAM starts with product development; it plays a role in
the procurement and production process and is a key aspect for customers over theentire product life cycle.
At Management Board level, responsibility for product safety and quality lies with theChief Executive Officer (CEO), who has delegated tasks and authority to the Head of
R&D and Corporate Quality. In addition to being responsible for technical and product-related quality, they are also responsible for ensuring the proper functioning of
the quality management system.
The central Quality Management Department issues rules applicable to the wholeGroup and regularly reviews compliance with them. Our core practices are describedin our Quality Policy, which is available publicly. The guidelines and processes cover,for example, product safety and how this is taken into account in product development, and how we deal with any defective products and any necessary escalation
measures. Operational responsibility for implementing legislation and internal rules
regarding product safety and quality lies with the managers of the business units. At
regular intervals, the Quality Management Department reports to the CEO on significant developments. The CEO is also informed immediately of any incident classified
as a critical quality issue by the business unit responsible.

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Environment and Climate Protection

Product safety and quality play a key role at the product design stage. Certain methods designed to safeguard quality must therefore be applied to meet specific development milestones. Product approval is subject to standardized checklists that areused to identify risks. In addition, we regularly review the current product portfoliowith regard to its impact on health and safety.
Customers can return defective products at any time and will find the relevant information online. Employees can also report potential incidents, for example via easily accessible structures that are established in production. By involving employees,
potential quality issues can be identified in good time and, if necessary, escalated.
When a matter relevant to product safety is reported, we immediately check andassess the risks using a risk assessment matrix. The EU General Product Safety Directive (GPSD) 2001/95/EC, which sets out a structured framework for risk assessment,
provides the global basis for our evaluation of potential product safety violations andof action plans to remedy such violations. As soon as any product safety risks are
identified, appropriate processes are triggered to contain and eliminate these risks asquickly as possible. The corresponding internal and customer-oriented measures aredefined. They range from simple customer information to product recalls.
Our processes and management systems are regularly certified to quality management standard ISO 9001 and, for automotive customers, also to standard IATF 16949
of the International Automotive Task Force (IATF). In addition, ams OSRAM regularly
conducts internal audits of its factories, processes, and suppliers so that deficiencies
can be identified and corrected at an early stage. Most new suppliers from whom
products are purchased directly are audited before placing the first order, as prescribed by VDA 6.3 (Process audit in the automotive sector) 5.2 Supply Chain
Management.

Society

Responsibility to Employees

Appendix

All products for the automotive sector are tested in accordance with defined schedules in our environmental simulation laboratories, which are accredited to ISO/IEC
17025. Accreditation of the laboratories allows us to achieve compliance with global
standards. By testing product performance through accelerated aging processes
and environmental simulations, we can identify how long the products should last as
well as shortcomings in their design or components, and then initiate improvements
before failures occur in actual use. For us, considering safety requirements and evaluating the expected product quality in environmental simulations in the early development phase is the cornerstone for high-quality products.
Objectives, Action Taken, Results, and KPIs
ams OSRAM markets its products worldwide. Our key product safety objectives are,firstly, compliance with official requirements and, secondly, the safety of the usersof our products. Therefore, we follow up on possible indicators of breaches that may
affect our customers’ health or safety.
We are committed to complying with all legal requirements, standards, and norms
relating to products and their safety, including labeling, which apply in the individual
regions and markets in which we operate, and to implementing changes in good time.
We are vigilant in identifying new legal requirements, standards, and norms that are
relevant to our business in a timely and routine manner and in applying them to ourinternal product safety specifications.
We have implemented a zero defects strategy in line with our quality policy. Accordingly, the effectiveness and efficiency of our processes are checked and improved
continuously to reduce costs and to conserve resources.

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5.4 Social Engagement
The end-to-end processes in quality management are harmonized. The processes are
optimized Group-wide in such a way that the chronologically and logically sequential sub-processes required to meet specific customer needs are transparent for all
departments and functions involved. All certification-related checks went well andsupport our zero defects strategy. A total of 33 locations are certified to ISO 9001 and
13 to IATF 16949.
Quality and Product Safety
2022

2023

Reduction in the failure rate of products within the warranty period compared to prior year1

12%

4%

Reduction in the proportion of quality costs (non-conformance costs) in
sales compared to prior year

9%6%

Number of indications of possible violations regarding adverse effects ofproducts on the health or safety of customers or product recalls

0

1¹ Based on reports from business customers.

In 2023, we recalled the OSRAM BATTERYstart 360/260 and the RING Fast Charge
Jump Starter 360/260 RPPL360/2601 from the market. This was triggered by two customer complaints about overheated devices. No individuals or material assets were
harmed. The matter was reported to the relevant authorities in the countries concerned and the EU (RAPEX/Safety Gate). Customer information was disseminatedseveral times over a period of more than six months via online sales channels, stationary retail, print media, and social media. As a result,2 59% of the products sold havebeen successfully recalled so far. We have removed the product from our productrange. Because of this action, we consider our goal of supplying our customers withsafe products to have been achieved.

Wherever ams OSRAM is active, we are also committed to sustainable development
outside our business. We therefore engage at local level across the globe in initiatives
that foster sustainable development and a prosperous society (corporate citizenship).
Our social engagement activities follow a clear strategy and are aligned with our corporate principles.
ams OSRAM is committed to many different forms of social engagement. As wellas making cash donations and donations in kind, we sponsor or otherwise provide
support for events in the fields of culture, society, education, and sports, and we aremembers of associations, organizations, and clubs. Rules relating to corporate citizenship are integrated into our Code of Conduct and are supported by guidelines covering the specific topics 3.2.4 Dialog with Stakeholders, Political Engagement, andMemberships and 3.3 Combating Corruption and Anti-Competitive Behavior. Volunteering activities qualify as a citizenship activity if they contribute to an improvedsocial environment and if society as well as employees, customers, and suppliers
and the Company itself benefit from them. The criteria of the “Business for Societal
Impact” (B4SI) network define the framework for this. Sponsorship agreements must
be free of political contributions of any form, must meet transparency requirements,
be recorded as a written agreement, and be intended for a reputable business purpose and be appropriate to the quid pro quo.
We use an online tool to measure the costs and successes of our projects. This tool isalso used to approve projects, which may in some cases require clarification of theintended social impact or other such changes prior to approval.

Social Contribution by Category
in EUR millions

2022

2023

Cash contributions

2.1

79%

0.9

84%

In-kind giving product or services donations,projects/partnerships, or similar

0.4

17%

0.1

6%

Time employee volunteering during paid working hours

0.0

0%

0.0

0%

Management overhead

0.1

4%

0.1

11%

Total

2.7

100%

1.1

100%

In the Social category, the largest contribution in 2023 went to the German Red
Cross in support of earthquake victims in Syria and Turkey. Almost EUR 43,500 wascollected through an employee donation campaign. This amount was topped up to
EUR 100,000 by ams OSRAM. The donation was used to finance emergency shelters,
medical care, and the provision of essential goods such as water, food, and blankets.
In the area of education, ams OSRAM supported a number of local universities witha donation in kind via the Malaysian organization Collaborative Research in Engineering, Science, and Technology (CREST) in the form of special gloves. A scholarshipprogram also took place in Malaysia in 2023, in collaboration with the Penang Skills
Development Center (PSDC). ams OSRAM covered part of the costs. The program
enables Malaysian students to take part in a bachelor’s degree course in mechanicalengineering at a German university.

Action Taken and Results
In 2023, as part of its social engagement activities, ams OSRAM provided a total ofaround EUR 1.1 million (previous year: EUR 2.7 million) in donations, sponsorships, andmembership fees to projects, initiatives, organizations, and events.

1 This concerns two model series of a product that was on the market under two brand names — OSRAM and Ring. The
recall rate relates to OSRAM BATTERYstart 360. For the OSRAM BATTERYstart 260 model, the recall was not initiateduntil 2024.
2 As of 12.31.2023. Recalls are generally not time-limited.

ams OSRAM Sustainability Report 2023

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Environment and Climate Protection

6.0
Responsibility to Employees

Society

Responsibility to Employees

Appendix

Our Human Resources Work
Occupational Health and Safety
Diversity and Equality of Opportunities
People Development
Attractiveness as an Employer, Employee Satisfaction, and Remuneration

ams OSRAM Sustainability Report 2023

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Environment and Climate Protection

Society

Responsibility to Employees

Appendix

6.1 Our Human Resources Work
Our human resources (HR) work plays a key role in our efforts to drive sustainability.
We believe that employees who are satisfied, successful, and healthy provide the necessary foundation for achieving long-term business success.
We are currently facing two major challenges: internally, the integration process
between the former ams and OSRAM companies continues to lead to changes inwork processes. For example, a new system for data management in the HR area
was introduced worldwide in 2023. At the same time, the tense economic situation has
led to cost-cutting measures, which have also had an impact on HR work.
The objective of our human resources work is to be an attractive employer for current and future employees. This means offering a safe workplace 6.2 Occupational
Health and Safety with fair working conditions in a work atmosphere that is freefrom discrimination and sees diversity as an opportunity 6.3 Diversity and Equalityof Opportunities. It also means offering attractive benefits along with development
opportunities and prospects 6.4 People Development, thereby enhancing satisfaction and raising the retention rate 6.5 Attractiveness as an Employer, Employee Satisfaction, and Remuneration.

ams OSRAM Sustainability Report 2023

Guidelines and Responsibilities
Human Resources (HR) is responsible for all personnel matters. The Head of Global
HR assumes overall global responsibility for HR matters. They report directly to the
CEO and, as a member of the management team, have an influence on strategic
decisions. As well as the central HR functions, there are also local teams.
Our human resources work is based on longstanding, tried-and-tested rules and processes for employees and managers, covering such topics as recruitment, diversity
and inclusion, talent acquisition, development, training, remuneration, and benefits.
Mandatory requirements were documented in a Group-wide HR guideline to define
and communicate standards for human resources work worldwide as part of the integration process.

Staff turnover (see following table) was lower in 2023 than in the previous year,
despite the nonrecurring effects from the disposal of parts of the Company
1.0 Report Profile, Portfolio Changes. We monitor the turnover rate at short intervals. In summer 2022, we carried out a global employee survey to make sure that themood at each location is reflected 6.5 Attractiveness as an Employer, Employee
Satisfaction, and Remuneration. The number of temporary workers, most of whomare employed in manufacturing, fell by 21% to 287 as of December 31, 2023 (previous
year: 364).
Overall, at the end of 2023, ams OSRAM employed 20,378 employees (previous year:
22,461).

Merger and Integration
In 2023, the necessary reduction in personnel due to the merger and integration of
ams and OSRAM was completed. The provisions from the works agreements of theGroup, established in 2021, remained in effect. Staff reduction was carried out without
resorting to layoffs for operational reasons, opting instead for voluntary measures
such as severance and partial retirement agreements, ensuring social compatibility.

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Appendix

Employees by Contract Type
EMEA

AmericasAsia/Pacific

Total

2021

2022

2023

2021

2022

2023

2021

2022

2023

2021

2022

2023

9,183

9,010

7,905

1,478

1,008

1,023

9,974

9,085

10,643

20,635

19,103

19,571

2,963

2,951

2,639

447

299

314

5,113

4,616

5,420

8,523

7,866

8,373

201

247

142

0

1

-

3,663

3,110

665

3,864

3,358

807

92

115

75

0

1

-

2,168

1,803

512

2,260

1,919

587

9,384

9,257

8,047

1,478

1,009

1,023

13,637

12,195

11,30824,49922,461

20,378

3,055

3,066

2,714

447

300

314

7,281

6,419

5,932

10,783

9,785

8,960

Temporary workers

271

240

2

-

91

47

357

364

287

thereof female

95

84

1

-

45

23

141

107

Employees with permanent contracts
thereof female
Employees with temporary contracts
thereof female
Total
thereof female
Workers outside the Company

Employees by Age Category, Gender, and Region
EMEA
absolute figure and proportion of workforce

2021

Americas

2022

2023

2021

Asia/Pacific

2022

2023

2021

Total

2022

2023

2021

2022

2023

Male (total)

6,329

67%

6,191

67%

5,333

66%

1,031

70%

709

70%

709

69%

6,356

47%

5,776

47%

5,376

48%

13,71656%

12,67656%

11,41856%<30 years

499

5%

487

5%

510

6%

134

9%

76

8%

111

11%

984

7%

870

7%

989

9%

1,617

7%

1,433

6%

1,610

8%

30–49 years

3,534

38%

3,382

37%

2,966

37%

413

28%

257

25%

271

26%

4,646

34%

4,120

34%

3,754

33%

8,593

35%

7,759

35%

6,991

34%

>49 years

2,296

24%

2,322

25%

1,857

23%

484

33%

376

37%

327

32%

726

5%

786

6%

633

6%

3,506

14%

3,484

16%

2,817

14%

Female (total)

3,055

33%

3,066

33%

2,714

34%

447

30%

300

30%

314

31%

7,281

53%

6,419

53%

5,932

52%

10,783

44%

9,785

44%

8,960

44%

<30 years

237

3%

244

3%

258

3%

54

4%

34

3%

56

5%

1,815

13%

1,479

12%

1,430

13%

2,106

9%

1,757

8%

1,744

9%

30–49 years

1,712

18%

1,700

18%

1,546

19%

184

12%

118

12%

123

12%

4,832

35%

4,321

35%

3,952

35%

6,728

27%

6,139

27%

5,621

28%

>49 years

1,106

12%

1,122

12%

910

11%

209

14%

148

15%

135

13%

634

5%

619

5%

550

5%

1,949

8%

1,889

8%

1,595

8%

9,384

100%

9,257

100%

8,047

100%

1,478

100%

1,009

100%

1,023

100%

13,637100%

12,195100%

11,308100%

24,499100%

22,461

100%

20,378

100%

Total

ams OSRAM Sustainability Report 2023

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Appendix

New Hires by Age Category, Gender, and Region
EMEA

Americas
2023

2021

2022

2023

2021

Total

absolute figure and proportion of workforce

2021

Male (total)

365

61%

350

65%

178

59%

295

56%

108

68%

125

64%

670

47%

955

53%

523

56%

1,330

52%

1,413

57%

826

58%

<30 years

124

21%

85

16%

57

19%

119

23%

40

25%

57

29%

316

22%

378

21%

274

30%

559

22%

503

20%

388

27%

30–49 years

202

34%

227

42%

101

34%

125

24%

42

27%

46

23%

325

23%

538

30%

242

26%

652

26%

807

32%

389

27%

>49 years

39

7%

38

7%

20

7%

51

10%

26

16%

22

11%

29

2%

39

2%

7

1%

119

5%

103

4%

49

3%

Female (total)

231

39%

188

35%

123

41%

228

44%

50

32%

71

36%

759

53%

841

47%

404

44%

1,218

48%

1,079

43%

598

42%

<30 years

72

12%

62

12%

45

15%

98

19%

12

8%

31

16%

393

28%

445

25%

235

25%

563

22%

519

21%

311

22%

30–49 years

129

22%

107

20%

64

21%

92

18%

24

15%

27

14%

351

25%

379

21%

166

18%

572

22%

510

20%

257

18%

>49 years

30

5%

19

4%

14

5%

38

7%

14

9%

13

7%

15

1%

17

1%

3

0%

83

3%

50

2%

30

2%

596

100%

538

100%

301

100%

523

100%

158

100%

196

100%

1,429

100%

1,796

100%

927

100%

2,548

100%

2,492

100%

1,424

100%

Total

2022

Asia/Pacific
2022

2023

2021

2022

2023

Employee Turnover by Age Category, Gender, and Region
EMEA
absolute figure and proportion of workforce

2021

Americas

2022

2023

2021

Asia/Pacific

2022

2023

2021

Total

2022

2023

2021

2022

2023

Male (total)

1,047

17%

474

8%

1,124

21%

583

57%

327

46%

157

22%

1,764

28%

1,319

23%

986

18%

3,394

25%

2,120

17%

2,267

20%

<30 years

161

32%

76

16%

92

18%

121

90%

63

83%

40

36%

567

58%

333

38%

183

19%

849

53%

472

33%

315

20%

30–49 years

580

16%

266

8%

502

17%

294

71%

141

55%

68

25%

1,050

23%

883

21%

162

4%

1,924

22%

1,290

17%

732

10%

>49 years

306

13%

132

6%

530

29%

168

35%

123

33%

49

15%

147

20%

103

13%

641

101%

621

18%

358

10%

1,220

43%

Female (total)

965

32%

222

7%

512

19%

270

60%

131

44%

72

23%

2,277

31%

1,493

23%

896

15%

3,512

33%

1,846

19%

1,480

17%

<30 years

129

54%

30

12%

47

18%

74

137%

14

41%

15

27%

944

52%

531

36%

264

18%

1,147

54%

575

33%

326

19%

30–49 years

423

25%

129

8%

231

15%

103

56%

58

49%

29

24%

1,235

26%

832

19%

65

2%

1,761

26%

1,019

17%

325

6%

>49 years

413

37%

63

6%

234

26%

93

44%

59

40%

28

21%

98

15%

130

21%

567

103%

604

31%

252

13%

829

52%

2,012

21%

696

8%

1,636

20%

853

58%

458

45%

229

22%

4,041

30%

2,812

23%

1,882

17%

6,906

28%

3,966

18%

3,747

18%

Total

ams OSRAM Sustainability Report 2023

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Environment and Climate Protection

Society

Responsibility to Employees

Appendix

6.2 Occupational Health and Safety
As part of its EHS policy, ams OSRAM is committed to offering its employees a safeand healthy working environment. Minimizing the risk of occupational illnesses andaccidents at work is part of this. Thus, we fulfill our social responsibility and also
reduce economic damage.
Responsibilities, Structures, and Processes
Overall responsibility for environmental protection and occupational health and safety
within the Group lies with the CEO, who has delegated tasks and managerial authority to the head of the corporate Environmental Protection, Health, and Safety (EHS)
Department. The corporate EHS head regularly reports directly to the Management
Board on significant developments.
The corporate EHS Department has the power at ams OSRAM to issue guidelines in
the area of occupational health and safety 4.1 Environmental Management.
Regional Implementation and Certifications
The production sites in Ang Mo Kio (Singapore); Wuxi, Kunshan DO, and Foshan(China); Penang and Kulim (Malaysia); Calamba (Philippines); and the headquarters in
Premstaetten (Austria) are certified in accordance with ISO 45001, the standard for
occupational health and safety management systems. During the reporting period,
four locations passed external audits as part of the matrix certification that now
applies to both parts of the Company. Our internal requirements also oblige the otherproduction facilities to maintain a management system for occupational health andsafety in accordance with the ISO 45001 standard. The central EHS Department carried out seven additional corporate EHS audits to verify this requirement. The plant inFoshan was again additionally certified to amfori BSCI, an internationally recognized
standard for social accountability.
Development and sales locations with more than 50 employees operate a reduced
management system but also contribute data to the health and safety KPIs. The
EHS Department also includes in its reporting a selection of locations that do not

ams OSRAM Sustainability Report 2023

quite reach this headcount but might do so in future. Therefore, our reporting covers 95% of employees. Our responsibility for occupational health and safety also
encompasses employees of external companies who are working at our locations.
However, because we do not specifically record how many of them there are or how
many hours they work, the aforementioned figure only includes our own permanent
employees.
At the locations mentioned, the responsible managers must carry out a risk assessment for each area of activity in accordance with internal requirements. Managers are also provided with regular training on these matters. The quality and completeness of the risk assessments are audited internally and externally. Risks at
ams OSRAM can be of an ergonomic, mechanical, radiation-related, or chemical
nature. Specific measures are then adopted in line with the risk assessment. Thesemay include the use of safety barriers and rails, floor markings, or extraction andventilation systems. Where necessary, individual protective equipment is provided. To
support managers, the local medical personnel (Company doctors and nurses) and, insome instances, employee representatives are also involved in this risk assessment.
The quality assurance of the medical services starts with procurement or, at larger
locations where we have our own medical personnel, with the recruitment process.
Company doctors provide all reports required by law, always subject to doctorpatient confidentiality. Access to medical services for employees is regulated at
location level and the consulting hours are communicated to staff.
We have also formed committees for occupational health and safety, either in linewith local legal requirements or on a voluntary basis. The committees also incorporate
environmental issues in their work and hold regular meetings in accordance with local
requirements. Besides accident prevention experts (such as safety officers or safety
representatives), these committees also consist of local managers, employees, andmedical staff. Their resolutions are recorded in corresponding minutes and adopted
measures are followed up.

Employees’ Responsibilities and Obligations
Furthermore, each and every ams OSRAM employee has an obligation and a responsibility to be mindful of safety at their place of work. In accordance with the requirements of ISO 45001, employees are encouraged to report hazardous situations (without fear of reprisals) and shall take themselves out of harm’s way at all times without
having to ask for permission. They are also included in the process of creating or
updating risk assessments and determining the causes of incidents.
ams OSRAM employees are informed of potential hazards at their workplace when
they join the Company and then regularly thereafter. If they change jobs internally,
they can only commence their new activities once they have been retrained withregard to the new hazards to which they may be exposed. This applies increasingly toemployees who work remotely. Managers are asked to draw attention to the possible
ergonomic risks of working from home and/or provide recommendations for mitigating these risks.
ams OSRAM also attaches importance to the health and medical care of its employees outside of work. For this reason, in most of the countries in which we operate
and where there is no mandatory health insurance, we purchase such cover for our
employees on a voluntary basis.
Requirements for our Supply Chain
We oblige our suppliers to accept and sign our Code of Conduct for Suppliers, whichsets out occupational safety requirements. Depending on their country of origin, newsuppliers must also fill out an online questionnaire on aspects of sustainability, including occupational health and safety, which is evaluated by Procurement, if necessary
with the involvement of the EHS Department. Selected suppliers are also asked toundergo Corporate Responsibility audits 5.2 Supply Chain Management. We place
great focus on outsourced processes and their impact on environmental protection
and occupational health and safety, which are the subject of a special Appendix to
the Procurement Policy.

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Objectives, Action Taken, Results, and KPIs
Our goal is to offer our employees a safe and healthy workplace. We therefore
aim to continually improve the parameters that impact on occupational healthand safety, including recording work-related injury data at our locations as a basis
for calculating the internationally recognized KPIs Lost Time Injury Frequency
Rate (LTIFR) and Severity Rate (SR). Each accident involving lost time is analyzed
to determine the causes. This analysis, which at least involves using the “5-Why
method,” serves as a basis for corrective and preventive measures and for updating
the risk assessment.

— Workshops were held at the Schwabmuenchen and Munich sites in Germany toassess mental stress and define measures in accordance with the methodology
recommended by the Professional Association for Energy, Textile, Electrical, andMedia Products (BG ETEM, Germany).

In each case, objectives are set on a site-specific basis. For the LTIFR, the target
is based on achieving a reduction relative to the average figure for the past three
years. The SR target factors in the regional average duration of absence per injury.
The regional and global targets are then aggregated from the individual values. We
already expect a zero injury rate at non-production locations.

Of the accidents reported, one was so serious that the employee affected was unable
to recover in less than six months or is unlikely to be able to do so at all.

Numerous occupational health and safety measures were continued at a local andglobal level in 2023. Local examples of these measures include the following:— Various EHS activities such as drills, safety talks, and workshops were carried out
at the An Mo Kio site (Singapore), where employees were informed in detail about
potential sources of danger.
— The EHS team at the Kulim site (Malaysia) has introduced regular communications
to all employees to raise awareness of EHS.
— At the Bruntál location (Czech Republic), six workplaces were identified where
employees work alone. They have now been equipped with a system (smart watch)that they can use to request help if necessary or in the event of a fall.

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Responsibility to Employees

Appendix

The SR, however, was below the target, albeit at a slightly higher level compared tothe previous year. This KPI was yet again less affected by longer-term cases fromprior years.
As in the previous year, there were no fatalities caused by occupational accidents orillnesses among our own employees or employees of subcontractors at our locationsin the past fiscal year.

The global KPI LTIFR in 2023 was significantly below the previous year’s figure. However, the challenging target (see table) was not achieved. Compared to the previous
year, the absolute number of accidents fell, but this also applied to the working hours
to be taken into account.

In the reporting period, no relevant penalties or fines amounting to more than EUR
10,000 were imposed on ams OSRAM for breaches of occupational health and safety
regulations.

Occupational Health and Safety Key Figures
2020

2021

2022

2023

Target 2023

Global LTIFR1

0.31

0.23

0.27

0.24

0.21

LTIFR EMEA

0.34

0.39

0.47

0.42

LTIFR Americas

0.47

0.30

1.01

0.25

LTIFR Asia/Pacific

0.28

0.13

0.10

0.12

Global SR1

5.0

7.4

4.7

5.2

SR EMEA

9.6

13.2

9.4

10.6

SR Americas

15.4

14.6

7.0

7.6

SR Asia/Pacific

1.4

3.0

1.9

1.7

Number of accidents resulting in absence from work

87

63

64

51

Number of high-consequence accidents2

2

3

1

1

Number of cases of recognized occupational illness3

0

3

0

1

7.8

1 The LTIFR represents the number of accidents at work resulting in at least one day lost in relation to the total number of working hours during the fiscal year. The SR represents the total number of days lost in relation to the total number of working
hours during the fiscal year. Both KPIs are scaled to 200,000 working hours, excluding commuting accidents.
2 Accidents that result in an injury from which the worker cannot, does not, or is not expected to recover fully to pre-injury health status within six months.
3 Occupational diseases are illnesses suffered by employees as a result of their professional activity and which are recognized as such by authorities or insurance carriers. ams OSRAM adheres to local legislation with regard to the responsible
authorities and the procedures to be followed.

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Appendix

6.3 Diversity and Equality of Opportunities
As a global company with subsidiaries in 39 countries, diversity and inclusion are ofgreat importance to us. As at the end of 2023, employees from 84 (previous year:85) different nationalities were employed at ams OSRAM. We strongly believe thatdiversity has a positive impact on our business in different markets, as internationalcustomer and supplier relationships require cultural competence and flexibility. At thesame time, it is our experience that diverse teams are highly innovative. We define
diversity according to the “4 Layers of Diversity” model based on the dimensions ofculture, national and ethnic origin, age, social background, sexual orientation, genderand gender identity, physical and mental abilities, religion, and ideology.

The principle of equality of opportunity is also reflected in our HR work 6.1 Our
Human Resources Work: in the recruitment process, the performance management
process (PMP) 6.5 Attractiveness as an Employer, Employee Satisfaction, and Remuneration, in the selection for the talent programs, and the classification of applicants,
we work with standardized processes, clearly defined criteria, and the dual control
principle to avoid any possible unequal treatment. Diversity and inclusion is one of anumber of factors that are used at ams OSRAM in recruitment. Special programs topromote women and develop female managers are another important component ofour management approach.

Guidelines, Structures, and Processes
To reflect our commitment, OSRAM has been a signatory to the “Charter of Diversity”
since 2013, a voluntary commitment by German companies to diversity management,
which is continued by ams OSRAM. In addition, ams OSRAM is involved in other voluntary initiatives such as the PROUT AT WORK Foundation (since 2016), which aims toanchor and strengthen diversity and inclusion within the Company.

Globally, the “Women Leadership Forum” offers women in senior positions the opportunity to hone their management skills and establish a network within ams OSRAM
6.4 People Development.

We respect the human and personal rights of all employees, business partners, andcustomers and respect their personal dignity and privacy. In accordance with our corporate principles and the labor laws of the countries in which we operate, we do nottolerate discrimination, sexual harassment, bullying, or other personal attacks on individuals. These principles are set out in our ams OSRAM Code of Conduct 3.1.1 Core
Values and our Human Rights Policy 5.1 Respect for Human Rights. In this way, wewant to promote equal opportunities and exclude any possible discrimination against
employees based on the above-mentioned characteristics.

ams OSRAM Sustainability Report 2023

ams OSRAM also makes it easier to combine work and family life by offering parental
leave and flexible working models, such as the option of working part-time or fromhome. Employees dealing with special family needs, such as caring for relatives, havethe option to reduce their working hours. Furthermore, a number of locations offer
support in the form of childcare or arrange childcare for employees. For example,
ams OSRAM offers employees at the Regensburg site (Germany) a company kindergarten and a company crèche. At the OSRAM site in Premstaetten (Austria), employees are granted subsidies for school events (including accommodation costs) via theworks council fund.

At ams OSRAM, the principle of “equal pay for equal work” applies. A pilot project fora gender pay gap analysis was carried out at the end of 2022. We are currently working on improving data quality. From 2024, this analysis is to be carried out annually.
Objectives, Action Taken, Results, and KPIs
As part of our Diversity, Equity, and Inclusion (DEI) strategy, we aim to increase theproportion of women in management positions. To highlight the importance of diversity and equality of opportunities for the Company and to achieve further progress,
the Management Board set a target of 25% for the proportion of women in the firsttwo management levels of the entire Group for ams OSRAM in 2021. This target is tobe achieved by the end of 2026. In 2023, the figure was 22% (previous year: 21%).
To attract female talent, ams OSRAM, as a technology company, participates in
activities such as specialized recruiting fairs and events aimed at enhancing theattractiveness of technical professions for girls and women.
In line with our DEI strategy, we want to strengthen our diverse and inclusive corporate culture through additional specialized programs and initiatives. We haveappointed Diversity Ambassadors in the business units and regions to help implement them. This initiative also promotes integration throughout the Company ona decentralized level. Through various employee groups, we facilitate discussions
among all employees on specific topics or diversity aspects. We also successfully
implemented the Diversity Day/Month again in 2023.

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Appendix

Share of Female Managers
First management level1

Second management level2

Total

2021

2022

2023

2021

20223

2023

2021

2022

2023

347

351

336

2,217

4,161

3,776

24,49922,461

20,378<30 years

1

1

1

10

26

25

3,723

3,190

3,354

30–49 years

115

118

119

1,313

2,595

2,484

15,321

13,898

12,612>49 years

231

232

216

894

1,540

1,267

5,455

5,373

4,412

thereof female

47

45

44

482

890

869

10,783

9,785

8,960

Share (in %)

14%

13%

13%

22%

21%

22%

44%

44%

41%

<30 years

0

0

0

6

10

7

2,106

1,757

1,744

30–49 years

18

16

20

334

661

654

6,728

6,139

5,621

>49 years

29

29

24

142

219

208

1,949

1,889

1,595

Total

1 Senior managers who belong to the executive level of the organization
2 Managers above pay scale
3 In the course of the introduction of the career paths in fiscal year 2022, ams OSRAM decided to define the management career for the early development of talents up to and including grade 17 as level manager.

Full-Time and Part-Time Employees
EMEA

AmericasAsia/Pacific

Total

2021

2022

2023

2021

2022

2023

2021

2022

2023

2021

2022

2023

Full-time employees

8,301

8,186

7,022

1,456

976

953

13,637

12,195

11,30623,394

21,357

19,281

thereof female

2,368

2,380

2,069

440

290

292

7,281

6,419

5,930

10,089

9,089

8,291

1,083

1,071

1,025

22

33

70

0

0

2

1,105

1,104

1,097

687

686

645

7

10

22

0

0

2

694

696

669

9,384

9,257

8,047

1,478

1,009

1,023

13,637

12,195

11,30824,49922,461

20,378

3,055

3,066

2,714

447

300

314

7,281

6,419

5,932

10,783

9,785

8,960

Part-time employees
thereof female
Total
thereof female

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Environment and Climate Protection

Society

Responsibility to Employees

Appendix

6.4 People Development
In view of the shortage of skilled workers, people development that adapts to changing parameters and needs is one of the keys to economic success. Our various people
development measures are all intended to support our employees in forging a careerthat reflects their individual abilities and interests.

Objectives, Action Taken, Results, and KPIs
Our aim is to provide employees with development opportunities through appropriate measures. In this way, we strengthen our attractiveness as an employer anddevelop a pool of talent for the various career paths.

Structures and Processes
From professional development via a degree apprenticeship, assorted career paths
right up to those designed for talent and management development, our employees
have the opportunity to develop, both professionally and personally, throughout their
entire career at ams OSRAM. We also provide an extensive range of learning andtraining programs for all employees under the umbrella of the ams OSRAM University.

Our apprenticeships play a major role in securing the next generation of employees. We currently provide training in 16 recognized technical trades, one commercial
apprenticeship, and eight degree apprenticeships. In 2023, 164 (previous year: 161)
young people were employed at ams OSRAM as part of their training or apprenticeship.
Our career path model comprises five equivalent development paths: Engineering,
Leadership, Project Management, Sales, and Specialist. Our employees are offeredindividual training and development programs tailored to where they are in theircareers and according to their skills profile. For example, a vast range of management training — from the “New to Manager Program” through to the “Senior Leadership Program” — is available within the Leadership career path. As of December 31,
2023, 10,850 (previous year: 11,924) employees were assigned to the various career
paths.

ams OSRAM has established a performance management process (PMP) for
employee development, which involves regular and structured dialog between
employees and line managers. This is supported by two feedback meetings per year.
The aim of this process is to identify talented staff within the Company throughout
the world. This close dialog is a collaborative approach to agreeing on and implementing development targets.
Breakdown by Career Paths
2022

2023

2021

Total

Total

thereof female

Total

thereof female

Leadership

15

15

24

14

24

Sales

6

4

14

3

16

Engineering

58

58

20

59

21

Specialist

20

21

61

21

63

Project management

2

2

26

2

26

100

100

29

100

30

Total

We encourage employees with the potential for significant responsibilities within theGroup — irrespective of their particular career path — through local or global talent programs. In addition to professional development, these programs also focus(depending on the level of seniority) on personal development, preparation for
future roles at local or global level, and the opportunity to gain cross-functional andcross-cultural experience. In addition to Germany, China, and Malaysia, local talent
programs have been run in Austria and Singapore since 2022. In 2023, a total of 74(previous year: 148) employees worldwide took part in the local and global talent
program, which corresponds to 0.6% of the indirect workforce.

Recruitments to Management Positions2021

in % (rounded)

Anchoring our leadership principles and core values plays a key role in the Leadership career path. We offer managers the opportunity to further develop their leadership skills with the help of various programs. The opportunities to communicate on a
one-to-one basis with others on the programs and for tandem learning promote thedevelopment and expansion of a global managerial network. The success is reflectedin the rate of internal appointments to management positions (see table “Recruitments to Management Positions”).

2022

2023

Total

thereof female

Total

thereof female

Total

thereof female

Senior management positions1

33

3

63

10

46

8

thereof internal recruitments

18

1

47

7

31

6

213

60

520

139

181

53

thereof internal recruitments

146

44

286

85

76

22

Total management positions

246

63

583

149

227

61

164

45

333

92

107

28

Number of recruitments

Management positions2

thereof total internal recruitments
1 Senior managers who belong to the executive level of the organization
2 Managers above pay scale

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The annual performance management process (PMP) 6.5 Attractiveness as an
Employer, Employee Satisfaction, and Remuneration identifies talented individuals
who can be nominated for the talent programs.
The Key Expert Program is open to employees of the Engineering career path whowork in our R&D departments. So-called TechFields have been defined that reflectcurrent and future technological topics that are of central importance to ams OSRAM.
One focus is on networking so that our key experts can contribute their knowledge to
the Company, advise management on technological issues, and thus influence decisions. As of December 31, 2023, 355 (previous year: 236) key experts had been identified and appointed worldwide.

Environment and Climate Protection

Society

Responsibility to Employees

Appendix

Average Hours of Training per Employee by Function
Production and service

Research and development

Administration and selling

Total workforce

2021

2022

2023

2021

2022

2023

2021

2022

2023

2021

2022

2023

18,423

16,47914,098

3,445

3,453

3,144

4,262

3,389

3,289

26,13023,322

20,530

Average hours of training per employee

4.8

7.2

12.1

18.5

8.3

10.3

7.1

6.4

9.4

Average hours of training per female employee

3.1

4.8

16.4

26.6

10.2

11.5

4.0

7.5

Number of employees by function (in FTE)

The ams OSRAM University offers a Company-wide modern training program, containing over 16,000 learning modules. These offer a wide range of educational andtraining opportunities, which can be flexibly compiled. In light of new forms of work,
the goal is to make training content easily accessible.
In 2023, ams OSRAM spent a total of EUR 4.4 million (previous year: EUR 7.6 million)
on training its employees.

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Responsibility to Employees

Appendix

6.5 Attractiveness as an Employer, Employee Satisfaction, and Remuneration
Being perceived as an attractive employer is essential to the Company’s long-term
success 6.1 Our Human Resources Work. We believe that the satisfaction of ouremployees and our attractiveness as an employer are indicators of how we treat eachother within the Company and how we value our employees. We value our employees
and treat them with respect, and this includes offering them fair remuneration. Our
remuneration system is designed to ensure that pay is fair and commensurate withperformance. It does not discriminate on the basis of gender or other characteristics 6.3 Diversity and Equality of Opportunities. Further information on expenses inconnection with remuneration and benefits can be found in ams OSRAM Annual
Report, Notes to the Consolidated Financial Statements, 4 Expenses.
Guidelines, Structures, and Processes
The attractiveness of employers is becoming increasingly important. This is especiallytrue in view of the severe global shortage of skilled specialists. In 2023, we described
our employer promise in an Employer Branding Guide in order to establish uniform
standards across the Group. This focuses primarily on addressing talented people in
the labor market in a target group-specific manner and ensuring that ams OSRAM
has a uniform global employer brand presence.
Motivated and committed employees are one of the most important success factors
for a company. In order to retain our employees in the future — especially in lightof the shortage of skilled workers — it is important for management to know what
the mood in the Company is like and how satisfied and committed employees are.
To measure employee satisfaction, engagement, and loyalty, we conducted the firstworldwide employee survey at ams OSRAM in 2022. Based on the results, global,
local, and departmental measures were continuously implemented in 2023. Identified
key issues were discussed at Group level and within the responsible teams, leading
to the development of appropriate measures and their subsequent implementation.
As these measures have now largely been completed, a further employee survey
is planned for 2024. Findings from this are to be used for measures to increase theattractiveness of ams OSRAM as an employer and to improve employee satisfaction.

ams OSRAM Sustainability Report 2023

To create opportunities for dialog, we regularly hold town hall meetings with our management and organize webcasts with the Management Board and other management representatives, where employees can ask questions and give feedback.
ams OSRAM aspires to retain its employees by offering them a long-term remuneration concept. A profit-sharing program for all employees of ams OSRAM adds anattractive, immediate component to the existing stock option plans and remuneration programs. The profit-sharing program is ams OSRAM’s way of rewarding thejoint contribution of all employees to the success of the business. More information
about the profit-sharing bonus for employees can be found in ams OSRAM Annual
Report, Management Report, 5 Employees.
With regard to fair pay, we view it as self-evident that we comply with local legal
requirements. We measure our remuneration against benchmark data for comparable companies per country or location, which are reviewed annually and adjusted
if necessary. We promote the performance of our employees with clearly definedbonus programs based on globally defined guidelines for variable remuneration andsales bonuses. The definition of the respective remuneration is based on the corresponding job evaluation. This is carried out in a non-discriminatory manner on thebasis of the neutral criteria uniformly defined for the Group in 2021. In companies
with collective bargaining agreements, the respective collective bargaining agreement forms the basis for the evaluation and the remuneration system; this is the caseat ams OSRAM in Germany,1 for example. Depending on the national rules and regulations, ams OSRAM offers discretionary benefits over and above the legal requirements in areas such as health and accident insurance 6.2 Occupational Health and
Safety, an occupational pension, and forms of deferred remuneration.

Objectives, Action Taken, and Results
In order to increase our attractiveness as an employer, counteract the shortage ofskilled workers, and strengthen staff loyalty, we implemented various external andinternal measures in 2023:
External recruitment measures included participating in various career events, holding a global recruiting event series, participating in the annual AustroChip congress,
several content days to involve employees in employer branding activities, training the
global recruiting teams on “active sourcing” (proactively approaching candidates),
opening a TikTok channel to appeal to young talent in particular, and a general overhaul of social media formats.
In September 2023, we had more than 480,000 followers on our social media platforms. At the same time, we reached 15.5 million users via our HR social media platforms. This corresponds to an increase of 168% compared to September 2022 (September 2022: 5.8 million). Internal measures to retain employees included the continuation of the global smart working scheme, the streamlining of approval processes,
continuous town hall meetings by the Management Board, and the intensified marketing of the ams OSRAM University.
Collective bargaining agreements are in place at our European companies2 with thebiggest workforces. At the end of 2023, 98% of the workforce was covered by suchagreements within these companies. We also work closely with employee representatives (both works councils and trade unions). In Germany and Austria, for example,
this has resulted in a large number of works agreements.

Our understanding of fair working conditions includes the right to freedom of association and the possibility of concluding collective agreements, for example on remuneration issues.

In Germany, 100% of employees at OSRAM companies were covered by collective
bargaining agreements. 45% of employees of German ams companies were coveredby collective agreements. In Austria, 100% of the employees of ams OSRAM subsidiaries were covered.

¹ i.e. at former OSRAM companies

2 In Germany, Austria, Slovakia, Italy, and the Czech Republic

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7.0
Appendix

Sustainable Corporate Governance and Integrity

Environment and Climate Protection

Society

Responsibility to Employees

Appendix

Assurance ReportGRI Index and SASB
EU Taxonomy KPIs
TCFD Recommendations
Imprint and Contact

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Responsibility to Employees

Appendix

7.1 Assurance Report
To the Management Board
ams-OSRAM AG,
Premstaetten

Management’s Responsibility

This English language independent assurance report is a translation provided for
information purposes only. The original German text shall prevail in the event of any
discrepancies between the English translation and the German original. We do not
accept any liability for the use of, or reliance on, the English translation nor for any
errors or misunderstandings that may derive from the translation.

The Company’s management is responsible for the proper preparation of the NFIreport in accordance with the reporting criteria. The Company applies the sustainability reporting guidelines of the Global Reporting Initiative (GRI Standards) (option“in accordance with”) as reporting criteria. In addition, the Company prepares disclosures in accordance with the EU Taxonomy Regulation (Taxonomy eligibility), which
are published as part of sustainability reporting. The audit of the disclosures includedin the NFI report related to the TCFD recommendations (Annex 7.4) is not part of ourengagement.

Independent Assurance Report on theNon-financial Reporting according to
GRI Standards

The Company’s management is responsible for the selection and application of
appropriate methods for non-financial reporting (especially the selection of significant
matters) as well as the use of appropriate assumptions and estimates for individual
non-financial disclosures, given the circumstances. Furthermore, their responsibilities
include the design, implementation, and maintenance of systems, processes, andinternal controls that are relevant for the preparation of the sustainability report in a
way that is free of material misstatements — whether due to fraud or error.

We have performed an independent limited assurance engagement on the combined
consolidated non-financial report according to GRI Standards (“NFI report”) for
the financial year 2023, which has been published as Sustainability Report 2023 of
ams-OSRAM AG, Premstaetten (referred to as “ams OSRAM” or “the Company”).

Conclusion

Based on the procedures performed and the evidence we have obtained, nothing hascome to our attention that causes us to believe that the NFI report of the Company is
not in accordance with the sustainability reporting guidelines of the Global Reporting
Initiative (GRI Standards) (option “in accordance with”) and the provisions of Article
8 of the Regulation (EU) 2020/852 as amended and the supplementing delegatedRegulation (EU) 2021/2178 (Taxonomy eligibility only; hereafter “EU Taxonomy Regulation”) in all material respects.

ams OSRAM Sustainability Report 2023

Auditors’ Responsibility

Our responsibility is to state whether, based on our procedures performed and theevidence we have obtained, anything has come to our attention that causes us tobelieve that the Company’s NFI report is not in accordance with the sustainability
reporting guidelines of the Global Reporting Initiative (GRI Standards) (option “inaccordance with”) and the legal requirements of the EU Taxonomy Regulation (Taxonomy eligibility) in all material respects.
Our engagement was conducted in conformity with the International Standard on
Assurance Engagements (ISAE 3000) applicable to such engagements. These standards require us to comply with our professional requirements including independence
requirements, and to plan and perform the engagement to enable us to express a
conclusion with limited assurance, taking into account materiality.

An independent assurance engagement with the purpose of expressing a conclusion with limited assurance (“limited assurance engagement”) is substantially less inscope than an independent assurance engagement with the purpose of expressing
a conclusion with reasonable assurance (“reasonable assurance engagement”), thus
providing reduced assurance. Despite diligent engagement planning and execution,
it cannot be ruled out that material misstatements, illegal acts, or irregularities within
the non-financial report will remain undetected.
The procedures selected depend on the auditor’s judgment and included the following
procedures in particular:— Inquiries of personnel at the group level, who are responsible for the materiality
analysis, in order to gain an understanding of the processes for determining material sustainability topics and respective reporting threshholds of the Company;— A risk assessment, including a media analysis, on relevant information on the Company’s sustainability performance in the reporting period;— Evaluation of the design and implementation of the systems and processes for thecollection, processing, and monitoring of disclosures on environmental, social, andemployees matters, respect for human rights, anti-corruption as well as bribery
and also includes the consolidation of data;— Inquiries of personnel at the group level, who are responsible for providing, consolidating, and implementing internal control procedures relating to the disclosure ofconcepts, risks, due diligence processes, results, and performance indicators;— Inspection of selected internal and external documents, in order to determine
whether qualitative and quantitative information is supported by sufficient evidence and presented in an accurate and balanced manner;— Assessment of the processes for local data collection, validation, and reporting, as
well as the reliability of the reported data through a (remotely conducted) survey
performed on a sample basis at the Regensburg site.

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Sustainable Corporate Governance and Integrity— Analytical evaluation of the data and trend of quantitative disclosures regarding
the GRI Standards listed in the GRI-Index, submitted by all locations for consolidation at the group level;— Evaluation of the consistency of the GRI Standards (option “in accordance with”)
and the EU Taxonomy Regulation to disclosures and indicators of the NFI report,
which apply to the Company;— Evaluation of the overall presentation of the disclosures by critically reading the
NFI report.

ams OSRAM Sustainability Report 2023

Environment and Climate Protection

The procedures that we performed do not constitute an audit or a review. Our
engagement did not focus on revealing and clarifying illegal acts (such as fraud), nor
did it focus on assessing the efficiency of management. Furthermore, it is not partof our engagement to audit future-related disclosures, prior-year figures, statementsfrom external sources of information, expert opinions, or references to more extensive
external reporting formats of the Company.

Restriction on Use

Because our report will be prepared solely on behalf of and for the benefit of theprincipal, its contents may not be relied upon by any third party, and consequently,
we shall not be liable for any third-party claims. We agree to the publication of our
assurance certificate and NFI report. However, publication may only be performed inits entirety and as a version has been certified by us.

Society

Responsibility to Employees

Appendix

General Conditions of Contract

Our responsibility and liability towards the Company and any third party is subject
to paragraph 7 of the General Conditions of Contract for the Public Accounting
Professions.
Vienna, April 24, 2024
KPMG Austria GmbH
Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
signed by:
Johannes Bauer
Wirtschaftsprüfer(Austrian Chartered Accountant)58

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Appendix

7.2 GRI Index and SASB¹GRI Content Index
MATERIAL TOPICSGRI STANDARDS AND DISCLOSURESPAGECOMMENT

1Foundation 2021

2

General Disclosures 2021

2-1

Organizational details

6

2-2

Entities included in the organization’s sustainability reporting

4, 6

2-3

Reporting period, frequency and contact point

4, 73

2-4

Restatements of information4

2-5

External assurance

57/58

2-6

Activities, value chain and other business relationships

4, 6, 7, 39

2-7

Employees

47/48

2-8

Workers who are not employees

47/48

2-9

Governance structure and composition

10-12

No underrepresented groups are represented on the Management Board and Supervisory Board.
Different competencies and also stakeholder perspectives are covered by the elected Supervisory Board members; these can be viewed in the CVs
https://ams-osram.com/about-us/supervisory-board.

2-10

Nomination and selection of the highest governance body

10/11

Voting results for the Supervisory Board election can be viewed on the

2-11

Chair of the highest governance body

12

2-12

Role of the highest governance body in overseeing the management of impacts

12

2-13

Delegation of responsibility for managing impacts

10/11, 13

2-14

Role of the highest governance body in sustainability reporting

13

2-15

Conflicts of interest

12

2-16

Communication of critical concerns

19/20

2-17

Collective knowledge of the highest governance body

10

2-18

Evaluation of the performance of the highest governance body

10

2-19

Remuneration policies

12

2-20

Process to determine remuneration

12

Voting results for the remuneration policy can be viewed on the

2-21

Annual total compensation ratio–

The remuneration report for fiscal year 2023 ams OSRAM Annual Report, Compensation Report is generally based on the requirements of section 78cof the Austrian Stock Corporation Act. In accordance with this legal requirement, the average remuneration of employees is used to compare the development of remuneration, see section "4. Change in remuneration of the Managing Board compared to the workforce" of the remuneration report.

ams OSRAM has reported in accordance with the GRI Standards for the period 1.1.–31-12.2023.

Based on the Global Industry Classification Standards (GICS, a classification of industry into sectors), ams OSRAM is assigned to the Semiconductors andSemiconductor Equipment Industry Group within the Information Technology sector.

corporate website.

Due to our listing on the stock exchange, we generally pursue a congruent information policy. Information for all stakeholders is available on
the corporate website.

The results of the Supervisory Board’s self-evaluation are confidential.

corporate website.

¹ Sustainability Accounting Standards Board (SASB) Industry Standard “Semiconductors”

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MATERIAL TOPICS

Company Profile

Sustainable Corporate Governance and Integrity

Environment and Climate Protection

GRI STANDARDS AND DISCLOSURES

PAGE

2-22

Statement on sustainable development strategy

3

2-23

Policy commitments

3, 10, 38

2-24

Embedding policy commitments

10, 392-25

Processes to remediate negative impacts

10, 20, 38

2-26

Mechanisms for seeking advice and raising concerns

19/20

2-27

Compliance with laws and regulations

19/20

2-28

Membership associations

17/18

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Responsibility to Employees

Appendix

COMMENTThe Code of Conduct was signed by the Management Board.

— Our political commitment is limited to membership in industry associations. Measured in terms of contributions and importance of our activities the following associations are the most relevant:— German Electrical and Electronic Manufacturers’ Association (ZVEI)In this association, we are active in the semiconductor and light trade associations. There, we participate in the development of industrial positions,which are essential to our business activities. We pay particular attention to the impact of the EU Green Deal. We ensure that we comply with legal
requirements (directives/regulations), in particular when it comes to issues related to taking back, recycling, and/or repairing products or to the use ofmaterials (RoHS, REACH), that legal requirements (directives/regulations) can be complied with by us.
— LightingEurope
This association is particularly concerned with specific issues in the EU lighting sector. We are currently on the board of directors and in the most important working groups “Sound Product Rules,” “Value of Light,” and “Sustainability.”— IMAT e. V. — Innovative materials for sustainable high-tech electronics, photonics, and related industries
The members of IMAT e. V. are particularly affected by EU chemicals legislation. IMAT e. V. constantly monitors developments and analyzes the impact
through its network of experts. IMAT e. V. participates in the legislative processes of the EU, for example by participating in stakeholder consultations.
— SEMIWe are a member of the SEMI semiconductor association and a founding member of the Semiconductor Climate Consortium (SCC) initative within theassociation. SCC focuses on the decarbonization of the semiconductor value chain and its member companies, while at the same time seeking solutions
to accelerate greenhouse gas reductions in other sectors of the value chain.
— Compulsory membership of employers’ and employers’ associations
In these associations, we do not take an active role, but follow the decisions and general information that these associations provide. In Germany, forexample, we are subject to collective bargaining.
— VDA — Association of the German Automotive Industry, Manufacturer Group III
Through this association, technical specifications and standards in the automotive sector are drawn up, which are essential for the development of our
products and solutions. Apart from the acquisition of such information/authorizations/certificates, we are not active in this association.

2-29

Approach to stakeholder engagement

3, 17/18

2-30

Collective bargaining agreements

55

3-1

Process to determine material topics

13/14

3-2

List of material topics

14

ams OSRAM Sustainability Report 2023

60

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Company Profile

Sustainable Corporate Governance and Integrity

Environment and Climate Protection

Society

Responsibility to Employees

Appendix

MATERIAL TOPICSGRI STANDARDS AND DISCLOSURESPAGECOMMENT

Integrity & Responsibility

3-3Management of material topics

10, 19/20

b. In fiscal year 2023, no corresponding company disclosures on business relationships and their potential negative effects were published athttps://ams-osram.com/about-us/investor-relations/financial-news/financial-news-2023.

203

Indirect Economic Impacts 2016

203-1

Infrastructure investments and services supported

19/28, 44203-2

Significant indirect economic impacts

7/8, 44/45

205

Anti-corruption 2016

205-1

Operations assessed for risks related to corruption–

a. Information incompleteWith the upcoming introduction of reporting according to CSRD, ams OSRAM will examine a possible extension of reporting.
b. ams OSRAM Annual Report, Management Report , 8 Risk Management

205-2

Communication and training about anti-corruption policies and procedures

20/21

As part of a three-year training cycle, the employees of the relevant target group complete the scheduled and mandatory compliance training courses.
The company controls the implementation via the coverage rate disclosed in this sustainability report. In addition to this control-relevant indicator, ams
OSRAM discloses with this overview the regional overview of the employees trained in fiscal year 2023 as required by GRI.
Compliance Training by Region
Compliance Basic1

Code of Conduct1

Anti-Corruption

Data Privacy

Antitrust

1,634

5,714

4,489

3,129

1,198

thereof EMEA

618

2,279

1,731

1,146

627

thereof Americas

49

199

218

154

93

thereof Asia/Pacific

967

3,236

2,540

1,829

478

Employees trained in 2023

1 Compliance Basic training was replaced in October 2023 by the newly introduced Code of Conduct training, which covers topics such as anti-corruption, antitrust, andconflicts of interest, as well as human rights, environmental protection, and whistleblower protection; at the same time the target group was expanded. The data for theCompliance Basic training in 2023 covers the period until August 1, 2023.

205-3

Confirmed incidents of corruption and actions taken

206

Anti-competitive Behavior 2016

206-1

Legal actions for anti-competitive behavior, antitrust, and monopoly practices

415

Public Policy 2016

415-1

Political contributions

ams OSRAM Sustainability Report 2023

21

c. Information incomplete
We plan to expand our reporting in this area as part of the European Supply Chain Sourcing Obligations Act.

20

18

Expenditure on political campaigns and political organizations such as parties: EUR 0.
Internal expenditure for lobbying via associations, see Lobby register of the German Bundestag (available in German only)
External expenditure for association work 3.2.4 Dialog with Stakeholders, Political Engagement, and Memberships (paragraph on expenditure).
Breakdown of expenses by highest contributions: German Electrical and Electronic Manufacturers’ Association (ZVEI): EUR 56,000; SEMI: EUR 33,500;
LightingEurope: EUR 13,000; IMAT e. V.: EUR 10,000
An important substance policy issue in 2023 was the EU’s proposed general ban on PFAS (per- and polyfluorinated alkyl substances). ams OSRAM will beable to avoid these substances in its end products as far as possible, but they are currently necessary in the production of semiconductors and factory
infrastructure, which is why ams OSRAM formally participated in the public consultation conducted by the European Chemical Agency (ECHA).

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Company Profile

Sustainable Corporate Governance and Integrity

Environment and Climate Protection

Responsibility to Employees

Appendix

MATERIAL TOPICSGRI STANDARDS AND DISCLOSURES

Integrity & Responsibility

418

Customer Privacy 2016

418-1

Substantiated complaints concerning breaches of customer privacy and losses of customer data

21

3-3

Management of material topics

18, 41

The risks listed in chapter 3.2.5 Risk Management and Geopolitical Risks can have an impact on the supplier and customer structure. Information was
exchanged with customers and suppliers.

201

Economic Performance 2016

201-1

Direct economic value generated and distributed

6

ams OSRAM generates revenues from the sale of products. These revenues are offset by expenses for e.g. material procurement (suppliers), employees(wages and salaries), taxes and other charges (social security, etc.), financing costs (interest), and others. Reserves (which remain with ams OSRAM) areformed from the profits generated. Parts of the profit may also be distributed to shareholders in the form of dividends. For details, see ams OSRAM
Annual Report, Notes to the consolidated financial statement and 5.2 Supply Chain Management for material procurement.

201-2

Financial implications and other risks and opportunities due to climate change

7, 18, 70-72

3-3Management of material topics

23/24,
26/27

305

Emissions 2016

305-1

Direct (Scope 1) GHG emissions

7, 27

c. Information unavailable
The use of such energy sources is being examined. If required, we will review the medium-term recording as part of the preparation for future CSRD
reporting.
g. Source: Bavarian State Office for the Environment (available in German only)

305-2

Energy indirect (Scope 2) GHG emissions

7, 27

PFC emissions are not reported separately, but are included in Scope 1 emissions.
“Location-based” approach: emission factors from the International Energy Agency (IEA); “market-based” approach: emission factors reported by therespective electricity suppliers.

305-3

Other indirect (Scope 3) GHG emissions

26/27

c. Information unavailable
As part of the preparation for CSRD reporting, we are examining a possible medium-term survey.

305-4

GHG emissions intensity

27

305-5

Reduction of GHG emissions

27

305-7

Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions

26/27

3-3

Management of material topics

23-25

302

Energy 2016

302-1

Energy consumption within the organization

25

c. ii. Information incomplete
Due to the current data situation, we are unable to report consumption by category separately. With the imminent introduction of CSRD reporting, ams
OSRAM intends to expand its reporting in this regard in the medium term.
d. Not applicable (no sale)g. Source: Bavarian State Office for the Environment (available in German only)

302-2

Energy consumption outside of the organization–

Information unavailable
This data is not yet available to us. With the imminent introduction of CSRD reporting, ams OSRAM plans to expand its reporting in the medium term.

Geopolitics

Climate Change

Energyams OSRAM Sustainability Report 2023

PAGE

Society

COMMENT

62

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Company Profile

Sustainable Corporate Governance and Integrity

Environment and Climate Protection

Society

Responsibility to Employees

Appendix

MATERIAL TOPICSGRI STANDARDS AND DISCLOSURES

PAGE

Energy302-3

Energy intensity

25

302-4

Reduction of energy consumption

25

b. Information incompleteWith the imminent introduction of CSRD reporting, ams OSRAM will examine a possible expansion of reporting in the medium term.

302-5

Reductions in energy requirements of products and services–

Information unavailable
We intend to expand our reporting on this indicator in the medium term in connection with the creation of LCAs (LCAs enable the selection of energyefficient or energy-efficiently produced materials) 2.2.1 Impact of our Business Model

3-3Management of material topics

23, 29

Information unavailable
As part of future CSRD reporting, we plan to expand our reporting in this regard in the medium term.

306

Waste 2020

306-1

Waste generation and significant waste-related impacts

31/32

306-2

Management of significant waste-related impacts

31/32

306-3

Waste generated

32

306-4

Waste diverted from disposal

32

b. and c. Information incompleteWith the imminent introduction of CSRD reporting, ams OSRAM will examine a possible expansion of reporting in the medium term.

306-5

Waste directed to disposal

32

Information incomplete
We do not yet record waste data separately everywhere, but distinguish between hazardous and non-hazardous waste for disposal. With the imminent
introduction of CSRD reporting, ams OSRAM will examine a possible expansion of reporting in the medium term.

3-3Management of material topics

32/33

303

Water and Effluents 2018

303-1

Interactions with water as a shared resource

32/33

303-2

Management of water discharge-related impacts

32

303-3

Water withdrawal

32/33

303-4

Water discharge

32/33

303-5

Water consumption

32/33

3-3

Management of material topics

39

204

Procurement Practices 2016

204-1

Proportion of spending on local suppliers

414

Supplier Social Assessment 2016414-1

New suppliers that were screened using social criteria

42

414-2

Negative social impacts in the supply chain and actions taken

41/42

Use of Ressource &Circular Economy

Water

Human Rights

ams OSRAM Sustainability Report 2023

COMMENT

42

d. Information incomplete
Data collection is currently in preparation. With the imminent introduction of CSRD reporting, ams OSRAM will examine a possible medium-term
expansion of reporting.
e. Information unavailable
The information is not yet collected centrally. With the imminent introduction of reporting in accordance with CSRD, ams OSRAM will examine a possible
medium-term expansion of reporting.

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Company Profile

Sustainable Corporate Governance and Integrity

Environment and Climate Protection

Society

Responsibility to Employees

Appendix

MATERIAL TOPICSGRI STANDARDS AND DISCLOSURES

Human Rights

407

Freedom of Association and Collective Bargaining 2016

407-1

Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

408

Child Labor 2016

408-1

Operations and suppliers at significant risk for incidents of child labor

409

Forced or Compulsory Labor 2016409-1

Operations and suppliers at significant risk for incidents of forced or compulsory labor

308

Supplier Environmental Assessment 2016308-1

New suppliers that were screened using environmental criteria

41/42

308-2

Negative environmental impacts in the supply chain and actions taken

41/42

3-3

Management of material topics

42-43

416

Customer Health and Safety 2016

416-1

Assessment of the health and safety impacts of product and service categories

43/44

416-2

Incidents of non-compliance concerning the health and safety impacts of products and services

44

3-3

Management of material topics

49

401

Employment 2016

401-1

Employment

48

401-2

Benefits provided to full-time employees that are not provided to temporary or part-time employees–

Information unavailable
Due to our activities in many different countries, the collection of data is complex. With the imminent introduction of CSRD reporting, ams OSRAM will
examine a possible medium-term expansion of reporting.

401-3

Parental leave–

Information unavailable
Due to our activities in many different countries, the collection of data is complex. With the imminent introduction of CSRD reporting, ams OSRAM plans to
expand its reporting in this regard in the medium term.

403

Occupational Health and Safety 2018403-1

Occupational health and safety management system 2018

49

403-2

Hazard identification, risk assessment, and incident investigation

49/50

403-3

Occupational health services

49/50

403-4

Worker participation, consultation, and communication on occupational health and safety

49/50

403-5

Worker training on occupational health and safety

49/50

403-6

Promotion of worker health

49/50

Product Stewardship

Working Conditions

ams OSRAM Sustainability Report 2023

PAGE

COMMENT

38

The methodology for risk assessments described in 5.1 also includes the right to freedom of association and collective bargaining.

38

The methodology for risk assessments described in 5.1 also includes the risk of child labor.

38

The methodology for risk assessments described in 5.1 also includes the risk of forced or compulsory labor.

d./e. Information unavailable
We do not currently report any percentage figures on suppliers with negative impacts. We are planning to evaluate the self-assessments for potential
negative impacts in the next report. Information on the termination of business relationships due to negative environmental impacts by suppliers is not
currently collected centrally. With the forthcoming expansion of reporting in accordance with CSRD, ams OSRAM is examining a medium-term expansionof reporting.

All our products, that is 100%.

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Environment and Climate Protection

Society

Responsibility to Employees

Appendix

MATERIAL TOPICSGRI STANDARDS AND DISCLOSURESPAGECOMMENT

Working Conditions

403-7

Prevention and mitigation of occupational health and safety impacts directly linked by business relationships

49/50

403-8

Workers covered by an occupational health and safety management system

49

403-9

Work-related injuries

50

v. Information incomplete
Our responsibility for occupational health and safety also includes the employees of external companies at our sites. However, because we do not specifically record their number and working hours, the figure provided only includes our own permanent employees. With the imminent introduction of CSRD
reporting, ams OSRAM plans to expand its reporting in this regard in the medium term.

403-10 Work-related ill health50

b. Information incomplete
Our responsibility for occupational health and safety also includes the employees of external companies at our sites. However, because we do not specifically record their number and working hours, the figure provided only includes our own permanent employees. With the imminent introduction of CSRD
reporting, ams OSRAM plans to expand its reporting in this regard in the medium term.
a. iii. /b. iii. We explicitly reported on the exceptional corona virus situation in the past, but this is no longer material.

404

Training and Education 2016

404-1

Average hours of training per year per employee

54

404-2

Programs for upgrading employee skills and transition assistance programs

53/54

404-3

Percentage of employees receiving regular performance and career development reviews–

405

Diversity and Equal Opportunity 2016405-1

Diversity of governance bodies and employees

10, 47/48

405-2

Ratio of basic salary and remuneration of women to men–

Information incompleteWith the imminent introduction of CSRD reporting, ams OSRAM will examine a possible medium-term expansion of reporting.

406

Non-discrimination 2016406-1

Incidents of discrimination and corrective actions taken

20, 39a. Information incomplete
We are in the process of establishing reporting on violations of human rights and fair working conditions and do not currently report cases of discrimination separately. With the imminent introduction of CSRD reporting, ams OSRAM plans to expand its reporting in this regard in the medium term.

402

Labor/Management Relations 2016

402-1

Minimum notice periods regarding operational changes–

Information unavailable
Due to our activities in many different countries, the collection of data is complex. With the imminent introduction of CSRD reporting, ams OSRAM will
examine a possible medium-term expansion of reporting.

ams OSRAM Sustainability Report 2023

Information unavailable
Due to our activities in many different countries, the collection of data is complex. With the imminent introduction of CSRD reporting, ams OSRAM plans to
expand its reporting in this regard in the medium term.

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SASB
Greenhouse Gas Emissions

Company Profile

Sustainable Corporate Governance and Integrity

ACCOUNTING METRIC

CODE

Society

Responsibility to Employees

Appendix

COMMENT

Gross global Scope 1 emissions and4.2.3 Greenhouse Gas Emissions, Objectives, Action Taken, Results, and KPIs, table
TC-SC-110a.1

amount of total emissions from perfluorinated compounds
Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions,emissions reduction targets, and an analysis of performance against those targets
Energy Management in Manufacturing

Environment and Climate Protection

TC-SC-110a.2

Total energy consumed (Gigajoules (GJ))

GRI Index, 305-2
4.2.3 Greenhouse Gas Emissions, Objectives, Action Taken, Results, and KPIs
Reported in MWh, not in GJ;

percentage grid electricity,

TC-SC-130a.1

4.2.1 Energy Efficiency at the Group’s own Locations, Objectives, Action Taken, Results, and KPIs, table

4.2.1 Energy Efficiency at the Group’s own Locations, Objectives, Action Taken, Results, and KPIs, table

percentage renewable
Water Management

Total water withdrawn,

4.3.4 Water, Objectives, Action Taken, Results and KPIs, tabletotal water consumed,

TC-SC-140a.1
n.a. (no production site with high or extremely high water stress),

Percentage of each in regions with High or Extremely High Baseline Water Stress
Waste Management

Amount of hazardous waste from manufacturing, percentage recycled

Employee Health & Safety

Description of efforts to assess, monitor, and reduce exposure of employees to human health hazards

TC-SC-150a.1

Total amount of monetary losses as a result of legal proceedings associated with employee health and safety
violations. The entity shall briefly describe the nature, context, and any corrective actions taken as a result of themonetary losses
Recruiting & Managing a Global &Skilled Workforce

TC-SC-320a.1
TC-SC-320a.2

ams OSRAM reports according to GRI 306: Waste 2020; therefore, waste (hazardous and non-hazardous) is reported including the entire
activities of the organization and does not separately indicate waste not from manufacturing (which, as ams OSRAM is a production company,
is by far the bigger share) 4.3.3 Waste, Objectives, Action Taken, Results and KPIs, table
6.2 Occupational Health and Safety, Guidelines, Responsibilities, Structures, and Processes
6.2 Occupational Health and Safety, Objectives, Action Taken, Results, and KPIs

Percentage of employees that areforeign nationals and2.1 Our Company, table “ams OSRAM at a Glance”
TC-SC-330a.1

located offshore

5.1 Respect for Human Rights (management approach)Disclosure shall include a description of potential risks of recruiting foreign nationals and/or offshore employees,
and management approach to addressing these risks
Product Lifecycle Management

4.3.4 Water, Objectives, Action Taken, Results, and KPIs

Percentage of products by revenue that contain IEC 62474 declarable substances

Processor energy efficiency at a system-level for:servers,

desktops, andlaptops

TC-SC-410a.1

4.3.1 Resource Efficiency; as we market our products worldwide, increasingly strict specifications and laws must be observed for the raw
materials and materials used in production and those remaining in products. Many of our customers place further requirements on us. Due tothese priorities, we do not report sales according to IEC.

TC-SC-410a.2

Not applicable (not part of our portfolio)

Materials Sourcing

Description of the management of risks associated with the use of critical materials

TC-SC-440a.1

4.3.2 Conflict Minerals, Guidelines, Responsibilities, Structures, and Processes (incl. cobalt and mica)

Intellectual Property Protection &Competitive Behavior

Total amount of monetary losses as a result of legal proceedings associated with anticompetitive behavior
regulations

TC-SC-520a.1

ams OSRAM Annual Report, Management Report, 3. Research and Development, number of patents
3.3 Combating Corruption and Anti-Competitive Behavior, table with KPIs

ams OSRAM Sustainability Report 2023

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Company Profile

Sustainable Corporate Governance and Integrity

Environment and Climate Protection

Society

Responsibility to Employees

Appendix

7.3 EU Taxonomy KPIs
EU Taxonomy — Turnover
Financial year 2023
Economic activities (1)2023
Code (a)(2)

Substantial Contribution Criteria

Turnover (3)Proportionof Turnover

Climatechangemitigation(5)

Climatechangeadaptation
(6)

Y; N;
N/EL (b)(c)

Y; N;
N/EL (b)(c)

Water (7)Y; N;
N/EL (b)(c)

Pollution
(8)

Y; N;
N/EL (b)(c)

DNSH criteria (‚Does Not Significantly Harm‘) (h)Circular
Economy(9)

Y; N;
N/EL (b)(c)

Biodiversity (10)Y; N;
N/EL (b)(c)

Climatechangemitigation(11)

Climatechangeadaptation(12)

Water (13)

Y/N

Y/N

Y/N

Pollution(14)Circular
Economy(15)

Biodiversity (16)Minimum
Safeguards (17)Proportionof Taxonomyaligned (A.1)
or -eligible(A.2) turnover, year
2022 (18)

Y/N

Y/N

%

EURO million

%

0

–

–

of which Enabling

0

–

–

of which Transitional

0

–

–

Y/N

Y/N

Category
enabling
activity(19)

Categorytransitional
activity
(20)

E

T

A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Turnover of environmentally sustainable activities(Taxonomy-aligned) (A.1)

E
T

A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (g)Manufacture of electrical and electronic equipment

EL; N/EL(f)

EL; N/EL(f)

EL; N/EL(f)

EL; N/EL(f)

EL; N/EL(f)

EL; N/EL(f)

CE 1.2

42

1%

N/EL

N/EL

N/EL

N/EL

EL

N/EL

–

Manufacture of batteries

CCM 3.4

15

0%

EL

N/EL

N/EL

N/EL

N/EL

N/EL

1%

Manufacture of energy efficiency equipment for buildings

CCM 3.5

44

1%

EL

N/EL

N/EL

N/EL

N/EL

N/EL

2%

Manufacture of other low carbon technologies

CCM 3.6

1,300

37%

EL

N/EL

N/EL

N/EL

N/EL

N/EL

24%

CE 5.2

479

14%

N/EL

N/EL

N/EL

N/EL

EL

N/EL

–

Turnover of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2)

1,879

54%

72%

28%

26%

A. Turnover of Taxonomy-eligible activities (A.1 + A.2)

1,879

54%

72%

28%

26%

Turnover of Taxonomy-non-eligible activities

1,598

46%

Total

3,477

100%

Sale of spare parts

B. TAXONOMY-NON-ELIGIBLE ACTIVITIESams OSRAM Sustainability Report 2023

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Sustainable Corporate Governance and Integrity

Environment and Climate Protection

Society

Responsibility to Employees

Appendix

EU Taxonomy — CapEx
Financial year 2023
Economic activities (1)2023
Code (a)(2)

Substantial Contribution Criteria

CapEx (3)

Proportion of
CapEx

Climatechangemitigation
(5)

Y; N;
N/EL (b)(c)

Climatechangeadaptation (6)Y; N;
N/EL (b)(c)

Water (7)Y; N;
N/EL (b)(c)

Pollution
(8)

Y; N;
N/EL (b)(c)

DNSH criteria (‚Does Not Significantly Harm‘) (h)Circular
Economy(9)

Biodiversity (10)Y; N;
N/EL (b)(c)

Y; N;
N/EL (b)(c)

Climatechangemitigation(11)

Climatechangeadaptation(12)

Water (13)

Y/N

Y/N

Y/N

Pollution(14)Circular
Economy(15)

Biodiversity (16)Minimum
Safeguards
(17)

Y/N

Y/N

Y/N

Proportionof Taxonomyaligned (A.1) or-eligible (A.2)
CapEx, year
2022 (18)EURO million

%

0

–

–

of which Enabling

0

–

–

of which Transitional

0

–

–

Y/N

%

Category
enabling
activity(19)

Categorytransitional activity
(20)

E

T

A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
CapEx of environmentally sustainable activities(Taxonomy-aligned) (A.1)

E
T

A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (g)Manufacture of electrical and electronic equipment

EL; N/EL(f)

EL; N/EL(f)

EL; N/EL(f)

EL; N/EL(f)

EL; N/EL(f)

EL; N/EL(f)

CE 1.2

0.3

0%

N/EL

N/EL

N/EL

N/EL

EL

N/EL

–

Manufacture of batteries

CCM 3.4

0.4

0%

EL

N/EL

N/EL

N/EL

N/EL

N/EL

0%

Manufacture of energy efficiency equipment for buildings

CCM 3.5

4

0%

EL

N/EL

N/EL

N/EL

N/EL

N/EL

1%

Manufacture of other low carbon technologies

CCM 3.6

113

14%

EL

N/EL

N/EL

N/EL

N/EL

N/EL

11%

CE 5.2

4

1%

N/EL

N/EL

N/EL

N/EL

EL

N/EL

–

Production of heat/cool using waste heatCCM 4.25

0.1

0%

EL

N/EL

N/EL

N/EL

N/EL

N/EL

0%

Transport by motorbikes, passenger cars and light commercial
vehiclesCCM 6.5

4

1%

EL

N/EL

N/EL

N/EL

N/EL

N/EL

1%

Construction of new buildings

CCM 7.1

250

31%

EL

N/EL

N/EL

N/EL

N/EL

N/EL

42%

Installation, maintenance and repair of energy efficiency equipment

CCM 7.3

0.2

0%

EL

N/EL

N/EL

N/EL

N/EL

N/EL

0%

Installation, maintenance and repair of instruments and devices
for measuring, regulation and controlling energy performance ofbuildings

CCM 7.5

5

1%

EL

N/EL

N/EL

N/EL

N/EL

N/EL

0%

Acquisition and ownership of buildings

CCM 7.7

40

5%

EL

N/EL

N/EL

N/EL

N/EL

N/EL

5%

Data processing, hosting and related activities

CCM 8.1

1

0%

EL

N/EL

N/EL

N/EL

N/EL

N/EL

0%

CapEx of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2)

422

53%

99%

1%

59%

A. CapEx of Taxonomy-eligible activities (A.1 + A.2)

422

53%

99%

1%

59%

CapEx of Taxonomy-non-eligible activities

368

47%

Total

790

100%

Sale of spare parts

B. TAXONOMY-NON-ELIGIBLE ACTIVITIESams OSRAM Sustainability Report 2023

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Sustainable Corporate Governance and Integrity

Environment and Climate Protection

Society

Responsibility to Employees

Appendix

EU Taxonomy — OpEx
Financial year 2023
Economic activities (1)2023
Code (a)(2)

Substantial Contribution Criteria

OpEx (3)

Proportion of
OpEx

Climatechangemitigation
(5)

Y; N;
N/EL (b)(c)

Climatechangeadaptation (6)Y; N;
N/EL (b)(c)

Water (7)Y; N;
N/EL (b)(c)

Pollution
(8)

Y; N;
N/EL (b)(c)

DNSH criteria (‚Does Not Significantly Harm‘) (h)Circular
Economy(9)

Biodiversity (10)Y; N;
N/EL (b)(c)

Y; N;
N/EL (b)(c)

Climatechangemitigation(11)

Climatechangeadaptation(12)

Water (13)

Y/N

Y/N

Y/N

Pollution(14)Circular
Economy(15)

Biodiversity (16)Minimum
Safeguards(17)

Proportionof Taxonomyaligned (A.1) or-eligible (A.2)
OpEx, year 2022
(18)

Category
enabling
activity(19)

Categorytransitional activity
(20)

Y/N

Y/N

Y/N

%

E

T

EURO million

%

0

–

–

of which Enabling

0

–

–

of which Transitional

0

–

–

Y/N

A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)

E
T

A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (g)Manufacture of electrical and electronic equipment

EL; N/EL(f)

EL; N/EL(f)

EL; N/EL(f)

EL; N/EL(f)

EL; N/EL(f)

EL; N/EL(f)

CE 1.2

1

0%

N/EL

N/EL

N/EL

N/EL

EL

N/EL

–

Manufacture of batteries

CCM 3.4

1

0%

EL

N/EL

N/EL

N/EL

N/EL

N/EL

0%

Manufacture of energy efficiency equipment for buildings

CCM 3.5

4

1%

EL

N/EL

N/EL

N/EL

N/EL

N/EL

1%

Manufacture of other low carbon technologies

CCM 3.6

196

30%

EL

N/EL

N/EL

N/EL

N/EL

N/EL

15%

CE 5.2

10

2%

N/EL

N/EL

N/EL

N/EL

EL

N/EL

–

Installation, maintenance and repair of energy efficiency equipment

CCM 7.3

4

1%

EL

N/EL

N/EL

N/EL

N/EL

N/EL

0%

Installation, maintenance and repair of charging stations for electricvehicles in buildings (and parking spaces attached to buildings)

CCM 7.4

0

0%

EL

N/EL

N/EL

N/EL

N/EL

N/EL

0%

Installation, maintenance and repair of instruments and devices
for measuring, regulation and controlling energy performance ofbuildings

CCM 7.5

1

0%

EL

N/EL

N/EL

N/EL

N/EL

N/EL

0%

Acquisition and ownership of buildings

CCM 7.7

0.1

0%

EL

N/EL

N/EL

N/EL

N/EL

N/EL

0%

Data processing, hosting and related activities

CCM 8.1

0.4

0%

EL

N/EL

N/EL

N/EL

N/EL

N/EL

0%

OpEx of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2)

218

33%

95%

5%

17%

A. OpEx of Taxonomy-eligible activities (A.1 + A.2)

218

33%

95%

5%

17%

OpEx of Taxonomy-non-eligible activities

444

67%

Total

661

100%

Sale of spare parts

B. TAXONOMY-NON-ELIGIBLE ACTIVITIESams OSRAM Sustainability Report 2023

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Environment and Climate Protection

Society

Responsibility to Employees

Appendix

7.4 TCFD Recommendations
In addition to the requirements of the GRI Standards and the Greenhouse Gas (GHG)
Protocol, ams OSRAM’s reporting on greenhouse gases and climate change is also
based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), a G20 expert commission that has issued recommendations on standardized climate reporting for companies.
This Sustainability Report brings together ams OSRAM’s reporting on the status of
implementation in all four areas of the TCFD recommendations. Further information
is available in connection with the Company’s participation in the CDP Climate
Change Rating and under 4.2.3 Greenhouse Gas Emissions.
1. Governance: Disclosure of the Organization’s Governance concerning Climaterelated Risks and Opportunities
As an aspect of sustainability, responsibility for climate-related topics rests with theManagement Board. This is in line with its remit involving fundamental issues of business policy and corporate strategy 3.1.2 Executive Bodies of the Company. Accordingly, the Management Board is responsible for the climate strategy and its implementation, which it adopted in 2022 4.2 Climate Protection and 4.2.3 Greenhouse
Gas Emissions.
Within the Management Board, the Chief Financial Officer (CFO) is responsible forsustainability and makes the necessary decisions for the entire Management Board.
Specialist coordination is the responsibility of the Sustainability Department, in collaboration with the relevant specialist departments and business units. This is embeddedin the reporting line of the CFO 3.2.1 Organization and Structures.
As part of its remit as a governance body, the Supervisory Board deals with climate
protection in particular, in addition to other sustainability-related topics. Within the
Supervisory Board, the ESG Committee monitors, among other things, the implementation of the climate strategy and upcoming regulatory requirements in connection
with the Company’s climate reporting 3.1.2 Executive Bodies of the Company, Key
Topics of the Board Regarding Sustainability in 2023.

topics. It examines the trends, risks, opportunities, as well as future legal requirements
and embeds appropriate measures within the organization where necessary.
2. Strategy: Disclosure of the Actual and Potential Impacts of Climate-related
Risks and Opportunities on the Organization’s Businesses, Strategy, andFinancial Planning
Transition risks were systematically assessed for the first time in 2022. This was carried out by internal experts and extensively embedded in the methodology of theexisting risk management system. A review was carried out in 2023, which did not
result in any significant changes.
The time horizon used for ams OSRAM’s enterprise risk management (ERM) was taken
as the basis for analyzing the impact of transition risks, whilst physical risks are considered over a longer period:— Short term — transition risks: up to 3 years; physical risks: current situation— Medium term — transition risks: 3-5 years; physical risks: up to 2030
— Long term — transition risks: up to 10 years; physical risks: up to 2050 or 2100
Transition Risks and Opportunities
In the case of transition risks, the impact and probability levels provided for in enterprise risk management (ERM) were used to classify potential risks. No scenarios wereused yet. The focal topics were “Energy consumption and emissions” and “Water.”
The targets that ams OSRAM has set for itself in terms of climate protection are
another important step towards reducing our transition risks 4.2.3 Greenhouse Gas
Emissions.

Highest-rated Climate-related Transition Risks
TRANSITION RISKS

FOCUS

DESCRIPTION OF IMPACTRISK MITIGATION STRATEGY

Policy and Legal:
Enhanced emissions-reporting
obligations or mandates on andregulation affecting products

Energy consumption of the
products or emissions

Bans on inefficient technologies
or products and possible loss ofrevenues

Future regulations are monitored at various levels within the Company. To gain further insights, we are
involved in sector organizations such as the German Electro and Digital Industry Association (ZVEI).

Technology:
Substitution of existing products/
processes with more energyefficient or lower-emission
solutions/solutions with a lower
water footprint

Energy consumption of the
products or emissions andwater consumption during
manufacture

Increased costs (R&D, production
processes/equipment) and possible
loss of revenues

Energy: As far as our portfolio is concerned, we keep a close watch on technological developments in the
sector at various levels of the Company; we are continually optimizing our processes and, by extension,
our production footprint. New facilities are built to the very latest standards. As our product portfolio is
made up of high-tech products, the production processes also require modern, high-tech equipment, mostof which is sourced from appropriate manufacturers.

Market:Changing customer behavior

Energy consumption andemissions

Water: We monitor developments to stay abreast of state-of-the-art options on the market.
Lower demand for goods and services
and possible loss of revenues

Energy: Environmental footprint project started to create transparency regarding products’ carbon footprint; pilot project planned in automotive area to reduce carbon footprint 4.4 EU Taxonomy; Scope 3
target adopted to reduce carbon footprint in the supply chain.

The Sustainability Council ensures the broad anchoring of sustainability in the Company 3.2.1 Organization and Structures, diagram “Governance Structure of Sustainability”. The Council carries out strategic assessments of climate-related and otherams OSRAM Sustainability Report 2023

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As a company whose energy-efficient, intelligent products can make a contribution
to tackling climate change, there are also business opportunities for ams OSRAM
2.2 Our Portfolio, 4.2.4 Green Tech Development, and 4.4 EU Taxonomy.

Environment and Climate Protection

Society

Responsibility to Employees

Appendix

Highest-rated Climate-related Transition Opportunities
TRANSITION OPPORTUNITIESDESCRIPTIONSTRATEGY FOR CAPITALIZING ON THE OPPORTUNITIESResource Efficiency and Energy Sources:— Use of more efficient production processes

Lowering operating costs (e.g.
through efficiency improvements
and cost reductions)
Increased production capacity,
leading to higher revenues— The Operations Sustainability Program was launched in 2023 for the semiconductor sites, where 91% of our greenhousegas emissions are generated. A separate function was created to coordinate this. One focus is on implementing the climate strategy at the semiconductor sites ( Foreword).

— Use of clean energy— The share of electricity from renewable energy sources (2023: 49%) is to be increased to 100% by 2028 (— More efficient production processes
2023”

Foreword).

Energy Efficiency at the Group’s Own Locations, table “Energy Efficiency Measures— Consolidation in site structure: In Singapore, production at one site was relocated at the beginning of 2023 and subsequently discontinued. In Italy, a site with two operating units was sold. Two smaller R&D sites in China and Germany werepart of another sale ( 4.1 Environmental Management).

Physical Risks
For physical risks, the risks and their potential financial impact were qualitatively
scored along the value chain, based on two greenhouse gas scenarios and the relevant climate scenarios for the locations.
These physical risks were identified in a two-stage analysis carried out in 2020 and
2021, involving external experts and the relevant internal specialist functions. The
analysis found no acute risk at present and rated all risks as low until further notice.
Nonetheless, we will closely monitor developments. Chronic risks were also analyzed
but have no notable effects in any scenario or timescale.

Products and Services:
Development and/or expansion of portfolios of energyefficient products through R&D and innovation

Increased revenue stream
from demand for lower-emission
products

	 2.2 Our Portfolio,
defined key issues.

Resilience:
Ability to develop replacement products or energyefficient products

Guaranteed revenue stream
from demand for lower-emission
products— Substantial investment in R&D

2.2.2 Our Products’ Contribution to the SDGs,
4.4 EU Taxonomy

4.2.4 Green Tech Development; this is one of ourams OSRAM Annual Report, Management Report, 3 Research and Development.

— Development of energy-efficient products and systems based on semiconductors— LED-based solutions for the automotive spare parts business as a substitute for halogen lamps
Contribution to the SDGs.

2.2.2 Our Products’

Assessment of Physical Risks based on IPCC RCP 2.6 and 6.0 Scenarios for Greenhouse Gas Emissions and Climate Change
VALUE CHAIN

PHYSICAL RISKSDESCRIPTION OF
POTENTIAL IMPACTSCENARIOSRISK ASSESSMENT OF POTENTIAL
IMPACT AND TIMESCALERISK MITIGATION STRATEGY

Upstream value chain
and key suppliers

Acute risks: floods
following extreme
weather events (Asia) andhurricanes (Asia/USA)

Higher costs due to supply chain
imbalances and/or production
being disrupted

RCP 2.6

2030: low to medium
2050: medium to very high2100: high to very highMonitoring of selling markets and development of
measures such as supply chain diversification, business
continuity management

RCP 6.02030: medium
2050: high to very high2100: very highAcute risks: tropicalhurricanes, heat waves,and convective storms

Higher costs due to infrastructuredamage and/or production
disruption and loss of sales

RCP 2.6

2030: low
2050: low
2100: low to medium

RCP 6.02030: all business units: low
2050: Semi: low1
AM: medium
2100: all business units: medium to high

RCP 2.6

2030: medium to high2050: high2100: very high

RCP 6.02030: medium to high2050: high to very high2100: very highOwn production facilities

Downstream value chain
and key accounts

Acute: floods following
extreme weather events(Asia) and hurricanes(Asia/USA)

Loss of sales

Monitoring of developments, possible structuralmodifications, business continuity management,
insurance policies

Monitoring of developments on main markets,
development of measures in the event of changes

1 Except for Calamba (Philippines)

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3. Risk Management: Identifying, Assessing, and Managing Climate-related
Risks and Opportunities
Climate-related and other non-financial risks are part of the enterprise risk management (ERM) process and must be recorded in the risk inventory for the entire Group
if they satisfy the materiality criteria. The catalog of risks includes physical risks andtransformation risks for the Company as well as risks relating to our business modelthat could have an impact on society and the environment. Explanatory notes onrisk management (identification, process, reporting) can be found in ams OSRAM
Annual Report, Management Report, 8 Risk Management and in 3.2.5 Risk Management and Geopolitical Risks.
The analyses described do not reveal any material climate-specific risks in the short
to medium term. Therefore, whilst the risks are covered by our risk management

ams OSRAM Sustainability Report 2023

Environment and Climate Protection

Society

Responsibility to Employees

Appendix

activities, they are not currently quantified and, as such, are not incorporated in ourrisk reporting.

threats to our own business and to associated companies. Appropriate insurance policies are in place for all buildings.

Due to the long period over which the potential physical risks could materialize (2050
being the earliest), no specific measures are called for in the short term; we will monitor developments over the medium term.

4. KPIs and Targets: Disclosure of the Metrics and Targets used to Assess andManage relevant Climate-related Risks and Opportunities
To reduce our carbon footprint and implement the target for carbon neutrality forour own activities that we set in 2021, a climate strategy was developed in 2022. This
strategy is guided by the Paris Climate Agreement, with the addition of a Scope 3 target (“Purchased goods and services” category) 4.2 Climate Protection. To achieve
our targets, we are focusing primarily on switching to green electricity and on energy
efficiency measures and report annually on progress 4.2.3 Greenhouse Gas Emissions. We aspire to a net zero target in the medium term.

We have also performed an assessment of the potential risks of water stress, using
the World Resources Institute’s Aqueduct Water Risk Atlas 4.3.4 Water.
Our Business Continuity Management draws up plans on how to resume businessas usual as soon as possible following events such as natural disasters and otherincidents that cause disruption. This limits the damage done and avoids existential72Report Profile

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Sustainable Corporate Governance and Integrity

Environment and Climate Protection

Society

Responsibility to Employees

Appendix

7.5 Imprint and Contact
Editorial Notes

This report is published online in German and English and was published on
April 26, 2024. The editorial deadline was April 19, 2024.
The ams OSRAM Annual Report and the ams OSRAM Sustainability Report are available in German and English and can be downloaded at https://ams-osram.com.

Forward-looking Statements

In addition to a retrospective analysis, this report contains forward-looking statements and information, that is statements about events that lie in the future rather thanthe past. These are based on information available today and assumptions based on
current forecasts. They are therefore subject to a number of risks and uncertainties.
Accordingly, forward-looking statements should not be relied upon as a prediction of
actual results.

Publisher

ams-OSRAM AG
Tobelbader Strasse 30
8141 Premstaetten
Austria

Contact

Group Sustainability (SU)Marcel-Breuer-Strasse 480807 Munich
Germany
E-mail: sustainability@ams-osram.com
https://ams-osram.com/about-us/sustainability

Production and Layout
in Partnership withAccenture GmbH,
Kronberg im Taunus
Germany
www.accenture.com/us-en

ams OSRAM Sustainability Report 202373

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