ESGREPORT 2022

ENVIRONMENT – SOCIAL – GOVERNANCE

Dear Readers,
Responsibility is the guiding principle of our

The significant experience we have gained over the

our esteemed international teams and externallythe leading player in the secondary watch market.

leadership. This value is lived both internally by

as Chrono24 maintains its position as the world's
leading online marketplace for luxury watches.

Our second annual ESG report offers a transparent
look at the values we uphold. Not only does it

Our goal is to exceed
today's expectations forcorporate sustainability –we want to leave a positive
legacy for our planet.

detail the company's ethical andsustainable successes, but it also

sets out our goals and how we willcontinue to build on our efforts inthe future. We believe that doing
good is good business.

Measuring our impact on ourcommunity and the 120 countries in which

Chrono24 operates is central to communicating
our ethos and values.

past 20 years has uniquely positioned Chrono24 as
McKinsey forecasts that this market will become
the fastest growing sector within the luxury

segment, reaching $30 billion in sales by 2025.
We are dedicated to leading and empowering ourglobal community to perpetuate the extended

life cycle of luxury timepieces. That also means
constantly re-evaluating our internal structuresand methods to connect with the world's leading
talent, and promoting diversity within ourcompany. Looking ahead, we are fully committed
to achieving even more for the benefit of our 9
million users and the planet.

Jennifer Bodenseh
CFO
Chrono24 GmbH ("Chrono24") is a 100%
subsidiary of MPN Marketplace Networks
GmbH ("MPN"). As such, all of the following
policies apply to both Chrono24 and MPN.

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Table of Contents

Diversity and Equal Treatment – Equality for All�������������������������������������������������������������������������������������� 4
Employee and Personal Development – A Chance to Grow ������������������������������������������������������������������ 7
Tax Policy – In Line With All Legal Requirements������������������������������������������������������������������������������������ 12
Compliance – Preventing Corruption and Money Laundering�������������������������������������������������������������� 15
Data Privacy and Information Security – A Top Priority ���������������������������������������������������������������������� 19

kw/hEmissions – Our Journey to a Green Strategy������������������������������������������������������������������������������������������ 22
Energy – Sustainable and Renewable�������������������������������������������������������������������������������������������������������� 25

3

01

DIVERSITY AND
EQUAL TREATMENT –EQUALITY FOR ALL

Diversity
and Equal Treatment
Equality for All

Our company culture sees the

As an employer, we have always spoken

different perspectives and experiences,

any form of discrimination. As we

uniqueness in every individual, unites
and promotes respectful interactions

with each other. We firmly believe thata diversity of genders, religions, ages,
ethnicities, sexual orientations, andphysical capabilities leads to a cultureof tolerance and acceptance.

It is only through the diversity of ouroutlined in the last report, we updated
asks for the applicant's age or gender.
We make great efforts to create an

inclusive community within the company,so that everyone feels comfortableworking here.

In 2023, we plan to take further steps

can cultivate respect, belonging, andour company, but also bring them to life

cohesion and bring these values to life.

Nationalities

our application process, and it no longer

employees and their willingness to help
shape our corporate culture that we

33

out against and taken steps to preventto not only cement these values withinevery day.

Cultural Diversity

5

Women in Management Positions
Women

Age Distribution

Men

Under 30

Team Lead

43%

Director

30%

2022

Head

41%

C-Level28%

30 – 39
40 – 49
Over 50

Gender Ratio
Women

Men

258
257
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02

EMPLOYEE ANDPERSONAL DEVELOPMENT –A CHANCE TO GROW

Employee and Personal Development
A Chance to Grow

We strongly believe that it's
our employees who bring
the necessary resilience andstrength our company needs toface and overcome challenges.

What does personnel development
mean to us?
The increasing pace of development andcomplexity of our marketplace, customer
portfolio, and business requirements are
ongoing challenges that must continue
to be reflected in the development of ouremployees.

We want to closely align ourselves with our employees
and their needs, and to provide more targeted
support for individual development in accordance withorganizational and external factors.
The following points are taken into consideration:
The people development team works in tandemwith the people operations team and is responsible
for providing support in specific areas.

By regulating the different areas where employee
support is needed, the people development
team has made it easier to directly addressdevelopment topics and provide guidance inthe long term. The team helps employees andmanagers identify and define development needs
and address them with the right measures.
The people operations team puts suitablestructures, frameworks, and supportive solutions
in place for employee development on an
individual level, which in turn strengthens thecompany's growth.
The team also takes development needs within
the organization and transforms them into
incentives and solutions. The content is designedwith a special focus on the timeliness andrelevance of the offers and their format.

8

Development at Chrono24: Paths and Processes

Individuality Drives Efficient Development

In 2021, we introduced a concept for careerdevelopment with both area-specific and managerial
pathways. It has since been rolled out and taken rootin all departments at all levels in Chrono24 GmbH,
including our locations in the US and Asia.

Our mission is to place a strong emphasis onindividuality as the underlying principle of our work.
Our efforts focus on encouraging everyone in
the organization to take on more responsibility
for one another. In 2023, we will concentrate on
improving our employees' skills for reflection andself-reflection, giving and receiving feedback, andbuilding and establishing internal and external
networks, together with a more constructive way ofreflecting on knowledge transfer.

The people development team took charge of theroll-out with numerous informational events, which
employees were invited to attend on a voluntarybasis. This approach allowed for employees to ask
questions, which helped
them understand and
The next step is to further enhance theadopt the concept.
concept so that all employees can reach theirpotential in due consideration of their abilities

The concept now provides
people development team and the respective
sound guidance fordepartments need to work closely together.
employees on theirpersonal development
and career prospects in our company. We havethus created a solid foundation to build upon in the
future.
and department. In order to achieve this, theAlthough development and performance are
intrinsically linked, we want to differentiate between
them in the future. Our goal is to move fromannual appraisals to a more continuous approach,where employees choose an appraisal frequency
to suit their needs. Employees will be increasingly
responsible for their own development within thetriangle of interests, "Individual – Team – Company."
Performance management will remain with thesupervisor, but the same triangle applies. Bothstrands, development and performance, will remainclosely linked in terms of content.

9Custom Solutions and Measuresfor Individual Development
The Chrono24 Academy has gotten off to agreat start; demand has remained high for the
initial offerings, and we were able to create acommon understanding of leadership. Leadersfrom all levels, from the C-level to team leads,
expressed that they found the Leadership
Essentials content useful, both during theclosing discussions of in-person seminars andsubsequent informal exchanges.
During the roll-out, we identified specific topics
for which further training was needed andimplemented appropriate measures to address
them. The training courses have been launchedas voluntary sessions in a classroom format,
and have been deemed beneficial by both Cand D-levels in a survey. The voluntary aspectcontributes to the individual development of ouremployees. We have expanded the opportunities
offered to include online, in-person, and remotesessions in both the Leadership Academy and
the People Academy.

The next step is to expand the definition ofleadership, i.e., independent of positions in thecompany. We want to educate and empower
our employees outside of management roles on
their leadership responsibility for themselves
and others, their sphere of influence, and thus
their impact on the company's success. To
achieve this, we will adapt the basic structureof our Chrono24 Academy and expand theopportunities it offers.
We will be integrating an external provider
for e-learning content in the future. This will
enable us to offer an extensive range of training
courses with high-quality, up-to-date content,
which we can then offer employees in a targetedmanner. The partner we selected aligns perfectlywith our corporate culture and understands
how to put a contemporary spin on learningand development. It will actively support usin promoting a strong learning culture at
Chrono24, with the goal of including all our
locations in the roll-out.

10

We implemented version 2.0 of our learning
management system (LMS) in July 2022 andinternal training requirements are now being
identified by the employees responsible for
specific subjects and areas. Once identified,learning concepts are developed, which are thenmade available to the respective employees.
These concepts are managed, updated, andsupplemented on an ongoing basis;
Communication will become an integral
examples include training sessions
part of our internal corporate practices
and information on watch expertise,
across all hierarchies.
various safety and compliance topics,
our brand, and numerous systems.
The LMS, which is managed by the learning& development department, provides thenecessary tools to process content and makeit accessible to all relevant employees. In eachdepartment responsible for learning content,
there is at least one LMS superuser who has
been trained on the technical features of thesystem by the people development team andwho also receives ongoing instruction andsupport.

We continue to emphasize individual
development by offering coaching from two
external coaches. This offer is primarily intended
for managers, and is an integral part of ourdevelopment measures. Looking forward, as
we continue to upskill our managers, we willfurther refine the role of these two importantresources to ensure that their expertise isutilized effectively in and for our organization.
The coaches play an influential role insupporting and actively shaping this process.
Planned measures include standardizing theunderstanding of coaching and how it differsfrom similar offers, and reworking the means ofcommunication between managers moderated
by the coaches.
Communication will become an integral partof our internal corporate practices across all
hierarchies and in a wide variety of formats
in order to leverage the potential of existingknowledge, skills, and experience for all
employees.

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03

TAX POLICY –IN LINE WITH ALL
LEGAL REQUIREMENTS

Tax Policy

In Line with All Legal Requirements
Complying with the statutorylaws, regulations, policies, andother legal requirements in all
countries in which we operate ispart of our ethos as a company.

We are committed to proper

conduct with regard to taxationin each individual market.

Tax Governance, Control Framework,
and Risk Management
MPN supports compliance with all applicabletax provisions by fulfilling all duties tocooperate on national and international levels.
This entails regularly completing declarations,
reports, notifications, and registrations fortax purposes. MPN ensures legal compliancethrough the use of an established tax
compliance management system (TCMS),
which incorporates appropriate tax policies.
We plan to complete the expansion of the

TCMS by the end of 2023 and to roll it out
in daily operations. Since requirementsfor platform operators are on the rise(transportation taxes, reporting obligations
under DAC7, etc.), our control framework isalso subject to continuous development. The
TCMS aims to minimize and, ideally, eliminate
exposure to prosecution risks and those that
could jeopardize the future of MPN. The TCMS
is supplemented with an anonymous reporting
procedure.
Due to the large number and frequency ofchanges to tax legislation, and given ouroverall low risk threshold when it comes totax issues, we regularly review, minimize, andeliminate tax risk using a risk management
system that is updated on an ongoing basis.
Such risks include additional tax payments(interest, surcharges, etc.), fines or penalties,
and damage to the reputation of MPN and theassociated long-term injury to our relationshipwith the authorities.

13

Our human and technical resources areorganized in such a way that they comply
with all relevant tax regulations. We ensure
we are able to act and respond via regularspecialized training for relevant personnel,
as well as continuous access to necessary
databases and the expertise of external tax
consultants.
The necessary transfer of information within
MPN is guaranteed through the use of
appropriate controls, policies, and training
sessions.
Country-By-Country Reporting
MPN subscribes to the "tax follows business"principle. This means that MPN approaches
its overall business planning with the express
goal of optimizing operational processes,
independent of fiscal considerations.

In view of our international operations and thepresence of subsidiaries both in and outside
the European Union, it is necessary to regularly
examine whether internal transaction pricing
is appropriate and in line with the arm'slength principle. MPN strictly follows the OECD
guidelines and BEPS actions in this area.
Germany, the Netherlands, Hong Kong, andthe USA are the main tax jurisdictions in which
MPN operates. Since the foreign subsidiaries
are of secondary importance, and MPN is not
obliged to prepare a country-by-country reportin accordance with Section 138a of the Fiscal
Code of Germany and BEPS Action 13, we
will forego the publication of key figures andinstead refer to the respective annual reports.

14

04

COMPLIANCE –PREVENTING CORRUPTION
AND MONEY LAUNDERING

CompliancePreventing Corruption
and Money Laundering
At Chrono24, the term "compliance"
refers not only to compliance withlaws and internal guidelines, butalso to acting in accordance with our
corporate values.
Our compliance program therefore aims toensure that all employees comply with the law
and act with integrity.
We are currently working on implementing
a company-wide compliance management
system (CMS) that will guarantee compliancewith all relevant regulations and create astrong culture of compliance. To this end, we
expanded the compliance department with acompliance officer in the year under review.

In terms of company structure, the compliancedepartment, together with the risk, legal,
privacy, and information security departments,
reports directly to the CFO. The chiefcompliance officer regularly reports directly tothe executive board and to the CEO and CFO.
The primary aim of our compliance efforts isto prevent compliance violations. To do so, wewill define measures aligned to the company's
risk situation in 2023 with a compliance risk
assessment.
Our compliance efforts focus on the following
three levels of action: prevent, recognize, andrespond. We have defined rules within our
Code of Conduct.

16

We have already taken various measures to prevent money
laundering, including the establishment of a specialist teamtasked with identifying counterfeits and suspicious listings so thattransactions cannot be faked. Moreover, the identity and reliabilityof every dealer is thoroughly checked when they register for ourCompliance with this policy is crucial for every
business relationship and the actions of all
Chrono24 employees, and most importantly,
executive management. The express
commitment of executive management tothe area of compliance ("tone from the top"
approach) ensures that employees are awareof the importance of this issue.

We will also require our professional dealers
to comply with certain rules on the basis of aseparate code of conduct.

New employees learn about the importanceof compliance when they receive our Code of
Conduct during their onboarding process. In
addition, the current version of the Code of
Conduct can be viewed on the intranet at any
time.

As a platform operator for buying and selling
luxury watches, we pay particular attention to
the areas of corruption prevention and money
laundering when it comes to preventing
compliance violations.

The Code of Conduct for Business Partners
will be implemented in 2023. If a professional
dealer violates a stipulation in this policy, they
will be subject to various repercussions.

marketplace. We award our "Trusted Seller" seal exclusively todealers who, in our experience and that of our users, have proventhemselves to be particularly reliable and trustworthy.

17

For this reason, in addition to training
courses on the basics of compliance andcorruption prevention that are mandatory for
all employees, we also offer specific training
courses on compliance issues such as money
laundering, terrorist financing, prevention of
insider trading, export controls, and dealing
with embargoes for departments that are
particularly exposed to these issues.
Our training courses are accompanied bycorresponding guidelines, such as the zerotolerance policy in our Anti-Bribery Policy.
We do not tolerate corruption of any kind –no matter where it takes place, to whom it isdirected, or for what reason.

We did not record any cases of corruption or
any indications of possible cases of corruption
in the year under review.
Furthermore, we foster an open corporate
culture and encourage our employees toimmediately report any misconduct such asbribery, attempted bribery, other potentiallycorrupt acts, and violations of applicablelaws and internal regulations ("echo from thebottom" approach), even if only suspected.
Employees can use Chrono24 Whistleblowing,
an anonymous reporting channel that is also
open to external parties.

Any direct or indirect offering or grantingof improper advantages (bribery) as well as
demanding or accepting such advantages(corruption) is prohibited.
18

05

DATA PRIVACY AND
INFORMATION SECURITY –A TOP PRIORITY

Data Privacy andInformation Security
A Top Priority

The data privacy and information
security teams support executive
management with the implementationand further developmentof our strategy toensure compliance with data protection

regulations and to achieve our information
security objectives. These teams also

ensure that the strategy is implemented
across various departments.

Information Security Management
Our primary information security objectives are:SE C

U R I T A

S

Protecting the confidentiality and integrity of

our user data, in particular against unauthorizedaccess, manipulation, and unauthorized disclosure
to third parties.

Safeguarding the availability and integrity ofour business processes, particularly those thatcreate value for our customers, and the processes
required to host the marketplace and handle
transactions.

Protecting our users from fraudulent activity byensuring the integrity and authenticity of theinformation on our marketplace that is exchanged
The executive board has tasked the information security officer
with defining, implementing, and monitoring the risk management
process within the scope of information security. This process aims
to guarantee that information security risks are identified early andthat risk-mitigating measures are planned and implemented.

between us and our users and the informationexchanged between users themselves.

Ensuring that the above-mentioned objectives arealso considered during the ongoing developmentof the marketplace, without sacrificing our

flexibility to adapt to the rapidly changing market.
20

Training and AwarenessOur employees must be aware of the importance ofIndependent
Security Checks

information security in order for us to achieve ourinformation security objectives. For this reason, weoffer training courses for various groups of internal

information security and data protection when they
start working at the company.

Our developers also receive training on securedeveloping practices.

Data privacy inquiries or inquiries involving a high risk
for our customers are processed by specially trained

members of our support team. These employees aresupported by our data privacy and information security
teams, as needed.

Incident Management

For critical processes and systems, a team is on call

24/7 to monitor alerts and respond immediately in theevent of down-time or attacks on the marketplace.

Once an incident has been handled, a review is carriedout. As part of the review, we conduct a root cause

analysis to investigate the cause of the incident andreview the incident process to ensure it is appropriate
and effective.

Audits by External Third Parties
One of our milestones in 2022 was achieving ISO/IEC 27001 certification for our information security

management system for the platform operations anddevelopment, customer support, and fraud prevention
departments.

In 2022, we also increased the appeal of our bug

bounty program by paying out higher bounties for
identifying vulnerabilities in select features.

We have established channels for reporting incidents

We regularly commission penetration tests andaccordingly.

technical verification.

in the company and have informed all employees

Security Training

and prioritized according to their degree of severity.

stakeholders.

All employees receive relevant training on

Governance& Compliance

Reports are evaluated by the relevant specialist teams

vulnerability scans of the marketplace for independent

21

06

EMISSIONS –OUR JOURNEY TO
A GREEN STRATEGYEmissions

Our Journey to a Green Strategy
In order for our company to playits part in climate protection, we
need to understand our carbon
footprint and provide transparent
information on our emissions.

This is the only way we can continue
to effectively develop our corporate
sustainability strategy, which, in addition
to reducing and offsetting emissions,also focuses on eliminating potential
sources of CO₂ emissions to begin with.

We work with an external software
provider to collect data on and analyze ourcarbon emissions. Using this information, wewere able to create a sound dataset for theyear 2021 in accordance with the Greenhouse
Gas Protocol and identify the largest sources ofemissions at our locations in Germany.
In 2021, our gross carbon footprint would haveamounted to 6,301.75 metric tons of carbon
dioxide equivalent (tCO2e). However, due to theuse of green energy, we were able to reduce
this amount by 46.92 tCO2e and bring our net
emissions for 2021 down to 6,254.82 tCO2e.

The most significant emission drivers were
"Procurement of goods and services,""Commuting," and "Software usage."
We will calculate our total carbon footprint for2022 later in the year. We have already begun bydetermining the emissions from business trips
taken in 2022.
As set out in our Travel Policy, we offset allemissions generated by business trips in 2021
and 2022. At least 90% was offset via projects
registered with the UNFCCC and the Gold
Standard.
The Greenhouse Gas Protocol establishes a groupof standards for GHG accounting for companies,
organizations, cities, and countries. The calculation
includes emissions generated throughout the entire
product life cycle or from the entire business activity.

23

GHG Emissions in 2021 by Scope*

2021

Emissions from business travel already offset(flights, hotels, private cars, taxis, and trains)

Scope 134.81 tCO2e

Scope 244.68 tCO2e

Scope 3

6,175.33 tCO2e

0.56%
0.71%

98.73%

Scope 1 includes emissions generated from sources for which ourcompany is directly responsible or over which it has control.

Scope 2 comprises indirect emissions from purchased energy(electricity, district heating and cooling, etc.). Scope 3 covers

all indirect emissions generated by business travel, employee

132.40 tCO2e736.40 tCO2e

commuting, and other purchased goods and services.

*Our carbon footprint analysis only includes our locations in Germany (approx. 91% of our employees in2021) and organizational boundaries were established on the basis of the operational control approach.
Scope 3 categories that are not relevant to Chrono24's business activity were not considered in the analysis.
These categories include: upstream and downstream transportation and distribution, downstream leased
assets, processing and end-of-life treatment of sold products, franchises, and investments.

2021

2022
24

07

ENERGY –SUSTAINABLE
AND RENEWABLE

Energy

Sustainable and Renewable2021

As an IT and e-commercecompany, electricity is one ofour most important energy
resources, which is why we arecommitted to moving towardgreen energy.
93% of the electricity we use at our four locationsin Germany is generated from natural sources.
Our Berlin office is the only location which is not

33%
Where does our green energy come from?
70% of our electricity comes from new,environmentally-friendly plants, which in turn increases
the demand for and roll-out of renewable energy

sources. The generation process does not release

any CO₂ emissions, and our supplier does not holdshares in any nuclear plant operators or coal mining
companies.

powered by green energy. This site uses electricity

In addition, our electricity provider is actively involved

conventional plants that produce power and heatplants and is certified by the TÜV Nord Group, aand heat from a cogeneration unit. As opposed toseparately, cogeneration maximizes fuel efficiency
and therefore requires less primary fuel.

2022

93%

in the development of new wind and photovoltaic
German organization that inspects the safety of
products and services, among others.

Increase in green energy use
from 2021 (33%) to 2022 (93%)

26

Legal Notice

Disclaimer
The information in this report is derived from various sources,

goods sector, which we have made on the basis of the information

including internal data and information from third-party providers.

available to us and which we currently consider to be realistic. The

Although Chrono24 has made reasonable efforts to ensure that theestimates are subject to risks and actual developments may differ

information contained in this report is accurate and complete, wefrom those expected. Should key parameters relating to our mostcannot guarantee the accuracy, completeness, or timeliness of theimportant markets change, this will affect our business development

information.

accordingly. In addition, there may also be deviations from theThis ESG report contains statements regarding Chrono24's future

expected business development if the estimates presented in thisbusiness performance and future market developments. These

ESG report on the factors of sustainable value enhancement and on

statements are based on assumptions regarding the development ofrisks and opportunities develop differently than we currently expect,

the economic, political, and legal framework conditions of individual

or additional risks, opportunities, or other factors affecting thecountries, economic areas, and markets, in particular for the luxury

course of business arise.

Publisher
Chrono24 GmbHGet in touch

Illustrations/Images

Haid-und-Neu-Str. 18+49 721 966 93 0

Steffen Mackert

D-76131 Karlsruhe+49 721 966 93 990

Sebastian Heck

Germany

info@chrono24.com

Mic Panic

https://www.chrono24.com
https://about.chrono24.com

Chrono24 GmbHHaid-und-Neu-Str. 18
D-76131 Karlsruhe
Germany
info@chrono24.com
https://www.chrono24.com
https://about.chrono24.com