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ChanSustainability Insights 2022/23

Change needs creativity.
A sustainable future needs new ideas as well as people who are eager toshape that future in a creative way. We as Faber-Castell are a driving force
for sustainable development in our industry: with our products, we motivate
people to unleash their creative potential.
As a family-owned business in the ninth generation, we take our responsibility seriously. Sustainability is not a new trend for us, but an integral partof our value culture and a proven success factor in our company’s history.
We understand sustainability in ecological, social and economic terms.
We are pioneers in the industry with our own certified forest management
for securing a long-term source of raw material. But we are also committed
to biodiversity, renewable energies, the conservation of resources, equal
opportunities and diversity. As a globally renowned brand company, we see
ourselves as a key player in the economy: our actions have a significant
impact on both the environment and society.

Environmental
responsibility(Environmental)

2Commitment to sustainability

Socialresponsibility(Social)Businessresponsibility(Governance)­ aber-Castell’s contribution to theF
Sustainable Development Goals
We as ­Faber-Castell believe that our actions can contribute to achieving theSustainable Development Goals (SDGs). We have therefore committed ourselves to these sustainability goals, initiated by the United Nations in 2015.

These goals are of great relevance as they represent the key factors thatcan enable a sustainable global community from an Environmental, Socialand Governance (ESG) perspective by 2030. In our Sustainability Insights
presented here, we therefore showcase our commitment in these three areas.

Commitment to sustainability

3Environmental
responsibility
We have always placed a high value on environmental sustainability (the “E” in ESG).
­Faber-Castell is active in this field with numerous projects and initiatives, ranging fromsustainable forestry and renewable energy to resource conservation. Over the following
pages, we present our environmental commitment.

More information on our environ­mental commitment can be foundonline:www.faber-castell.com/corporate/
sustainability/ecological4Sustainable forestry
and biodiversity
Since the 1980s, our managed forests in Prata, southeastern Brazil, havefulfilled numerous roles. They are crucial for raw material supply and also
serve as a habitat for diverse animal and plant species. Additionally, thetrees absorb CO2 from the atmosphere through photosynthesis, converting
it into biomass and oxygen. We are fully aware of the significance of thisunique forestry project and are committed to its protection.

3/4of the forest area consistsof pine trees (tree species
Pinus caribaea).

Key natural resource
Wood is the raw material for our pencils, making it vitally important. We manage 4.5 million pine trees across 8,200 hectares– equivalent to 11,000 football fields – meeting most of ourwood needs. Every year, we plant 300,000 new seedlings toensure consistent reforestation.
Our managed forests are fully certified by the Forest StewardshipCouncil (FSC®), and all wood used in our global production ofwood-cased pencils is either FSC® or PEFC certified.

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of the forest area is a protectednature reserve, providing a hometo 467 native tree species from29 different tree families.

Reservoir for biodiversity
A part of our managed forests in Brazil is left untouched andhas evolved into a habitat for local wildlife. Species like theanteater, macaw, maned wolf, porcupine and white-eared
puffbird find a home here.

722

different animal species
live in the forests.

Our environment and biodiversity projects
For many years, we have been committed to a range of programs for environmental protection
and biodiversity in our managed forests:“Animalis” and “Arboris”. These long-term projects are dedicated to the conservation andestablishment of native fauna and flora. Scientists monitor the biodiversity and its distribution.
There has been a steady increase in biodiversity since the start of the initiatives.
“Aqua”. This program oversees the water quality and levels to detect and prevent contaminationand droughts early.
“Soils”. This initiative aims to counteract soil erosion, including regular analysis and mapping of
the forests soil for monitoring and to put in place countermeasures.

Environmental responsibility

5Energy efficiency
and self-sufficiency
Our aim is to reduce our corporate carbon footprint. To achievethis, we monitor our CO2 emissions at all production and affiliateddistribution sites and take targeted action to reduce them.
We are working on improving our energy efficiency and striving
for self-sufficiency through renewable energy.
Focus on energy efficiency
We can significantly lower our energy consumption by switching to more energyefficient products, machines and facilities
at our worldwide production sites.

89%of the total energy consumption
at our worldwide production sites
is met by renewable sources(fiscal year 2022/23).

Investment in renewable energy
We generate our own renewable energy
from various sources, including hydropower, solar energy and thermal energy
from wood waste from our production.
We also ensure sustainability in purchased
energy. Where possible, energy purchases
adhere to the internationally recognised
I-REC standard, ensuring transparencyand traceability.

100%of the electricity used at
our production sites in Brazil,
Peru, Austria and Germany
comes from renewable sources(fiscal year 2022/23).

Our energy projects
Renewable energy generation is a tradition for us. We therefore continue to expand the necessary
technologies at our global locations:
Since 1956, we have operated a Kaplan turbine at our headquarters in Stein, generating over
1.5 million kilowatt-hours of electricity annually through hydropower. This can cover around20 percent of the site's electricity needs.
At our production sites in Brazil, Indonesia and Germany, we generate thermal energy fromthe wood waste produced in manufacturing.
Since 2021, we have used solar panels for power generation in Malaysia and India.

6OUR TARGETOUR TARGETOUR TARGETReduce the corporate carbon footprint by 55%by the end of fiscal year 2029/30 (based on
the scopes of fiscal year 2019/20, per one million
pieces of produced products)

Reduce energy consumption
by 55% through improved efficiency
by the end of fiscal year 2029/30

Achieve energy self-sufficiency
by the end of fiscal year 2034/35

Environmental responsibility

Plastic alternatives
and recycling
Plastic causes enormous environmental problems worldwide. We are therefore committed
to continually reducing the use of conventional plastics and instead using more eco-friendly
materials for our products and packaging.
We increasingly rely on alternative plastics, especially recycled or bio-based, in ourpen manufacturing. Instead of single-use product packaging made of virgin plastic,
we are increasingly turning to cardboard or other alternative materials. To extend theirlifespans, many of our products are refillable.

Our plastic projects
Since 2016, we have been manufacturing more and more pens from recycled plastics, known as recyclate.
For this, plastic waste from industrial production is processed and used as a new raw material in manufacturing.
In our production site in Austria, the proportion of recycled plastics is already over 55 percent.
In Brazil, we collaborate with the recycling company Terracycle to repurpose plastics from pen waste. Non-refillable
writing instruments and plastic accessories like ballpoint pens, markers, erasers and sharpeners are centrallycollected and transformed into new raw materials.

OUR TARGETOUR TARGET

Reduce the proportion of virgin plastic
in primary single-use product packaging tobelow 5% by the end of fiscal year 2029/30

Increase the proportion of alternative(especially recycled and bio-based) plastics
in our products to 55% by the end offiscal year 2029/30

Water and waste watermanagement
We are committed to the sustainable use of water, a vital resource. ­Faber-Castell places great
importance on thoughtful water management. As part of this, we have initiated various projects
to save and reuse water.

Our water and waste water projects
In Germany, we have shifted our lead production to a less water-intensive process, reducing waste water intensity
by up to 28 percent.
Since 2018, our Brazilian production site in São Carlos has been operating an especially efficient waste water
treatment plant. We use the purified water for the maintenance and irrigation of our outdoor facilities, allowing us
to reuse approximately 10,000 cubic meters of water annually.
At our sites in Indonesia and Malaysia, we have installed several rainwater tanks to save fresh water.

Environmental responsibility

7Socialresponsibility
Sustainability is not just about the environment and climate; it also encompasses social aspects(the “S” in ESG). We are committed to this through specific projects both within the company
and along the value chain. Over the following pages, we present our social commitment.

More information on our social
commitment can be found online:
www.faber-castell.com/corporate/sustainability/social-commitment

8Responsible
employer
As a family-owned business in the ninth generation, we have always showna high level of social commitment to our employees and society.
From the mid-19th century, social institutions like kindergartens, schools andemployee housing were established.
In 2000, we adopted the ­“Faber-Castell Social Charter” with IG Metall,voluntarily committing to employment and working conditions recommended
by the International Labour Organization (ILO) in our production anddistribution sites. This globally valid agreement, one of the first of its kind,is regularly audited at our worldwide locations.

1844

was the year in which Lothar
von Faber founded one of thefirst company health insurance
funds in Germany, which still
exists as “BKK F­ aber-Castell”.

Diversity and inclusion
We not only produce pencils and pens in a variety of colours and shapes but also
advocate for a colourful and open society where everyone’s individual differences
are recognised and respected.

Our diversity and inclusion projects
We encourage people to express their identity and aim to create an environment where diversity and inclusion areactively practised:“#WirSindBunt” is an initiative at our headquarters in Stein, promoting diversity and combating discrimination
within our company. In Brazil, we also launched a program in 2020 to foster diversity and inclusion throughguidelines, committees, training and theme weeks.
Globally, we have integrated policies in talent management and succession planning to specifically promote
female employees.
With the “Children of the World” (“Caras & Cores”) pencil set, developed with make-up experts, children canaccurately depict their skin colour, strengthening their self-image and identity. Proceeds from sales support theRed Pencil Humanitarian Mission, which aids children in crisis areas with art therapy.

OUR TARGET
Increase the proportion of womenin leadership and management positions
to 50% by the end of fiscal year 2029/30

Social responsibility

9Promoting creativity
and education
For us, fostering creativity and education go hand inhand. As a “companion for life”, ­Faber-Castell aims
to nurture creativity in everyone from the young to theelderly, inspiring customers with innovative products
for creative experiences.
Creativity is a key human differentiator, also increasingly
important in the workplace. Handwriting and drawing
support fine motor skills and cognitive abilities,
which are crucial for learning and development. Our
high-quality products for painting, drawing and writing
provide tools for creative expression and learning
worldwide, empowering people to express their ideas
for a more sustainable future.
We believe that unleashed creativity can positively
change the world.

10

Faber-Castell subsi­diares promote creativity
and education through various projects,encouraging people to unleash their creative
potential.

Our creativity and education projects
In projects in Australia, Brazil, India, Indonesia and elsewhere, we support arts education inschools and encourage young people to let their creativity flow freely through painting anddrawing competitions.
The Peter Maffay Foundation aids traumatised children through art therapy programs. We
support their work by donating a portion of the proceeds from our Eberhard Faber Tabaluga
products.
The ­Faber-Castell Academy, established in 1995 at our headquarters in Stein, is an independent
educational institution focusing on individual personality and creativity development. Admission
to studies is based on creative talent rather than academic qualifications.

10Social responsibility

Ourfoundations­Faber-Castell Institute in Brazil
At the “­Faber-Castell Institute”, we support a variety of aid and educational schemes for children fromchallenging social backgrounds in Brazil. We have worked with local communities for many years tomake these projects possible.
The initiatives are funded by our employees’ donations, and we match every voluntarily donated Real (R$)
to amplify the fund.

Graf von ­Faber-CastellChildren’s Fund Foundation
The well-being of children has always been
paramount for F­ aber-Castell. For this reason,
Anton Wolfgang Graf von F­ aber-Castell(eighth generation) set up the Children’s FundFoundation in 2001. It supports humanitarianchildren’s aid projects in kindergartens,
schools, hospitals and orphanages – primarilyin emerging and developing countries.

Social responsibility

11

Business
responsibility
Alongside environmental and social commitment, responsible corporate governance (the “G”in ESG) is a key part of our comprehensive approach to sustainability, which also encompasses
economic success. We embody a value-based corporate culture reflected not only in our daily
work, but also in long-term thinking. Over the following pages, we present our business commitment.

More information on our business
commitment can be found online:
www.faber-castell.com/corporate/
sustainability/economic

12

Responsibility by tradition
Our success is founded on trust and fair interactions with employees, customers, business
partners and suppliers. F­ aber-Castell has embraced the entrepreneurial philosophy offairness, transparency and respect for centuries, in line with the ethos of the “HonourableMerchant”.
Our “Corporate Essentials” embed core principles for trustfuland respectful interaction, while our “Leadership Essentials”
provide guidelines for leadership at ­Faber-Castell.
The “­Faber-Castell Charter” (Code of Conduct) offers
employees a behavioural code, supporting fair andtransparent actions.
Management systems and certificates
To adhere to our guidelines, policies and standards, wehave established a compliance management system and an
integrated management system for quality, environment andsocial aspects, including information and reporting systems,
training, contacts and audits. Certifications like ISO 9001
and 14001 make our commitments and actions visible andcomparable.
Responsibility along the supply chain
We advocate for transparency and responsibility throughout
the supply chain, fulfilling our duty to human rights and theenvironment. Key is the prior vetting and trusted collaboration
with suppliers in line with our “Supplier Code of Conduct”.

Collaboration for the future
Sustainable business practices require cooperation and partnership. We are members ofleading national and international networks and initiatives, such as the UN Global Compact,
and engage in open dialogue with internal and external stakeholders. Through regularstakeholder surveys, for example, we gather their opinions on relevant topics and encouragecontributions to sustainable development.

Business responsibility

13

Sustainability targets
Reference year: fiscal year 2019/20

EnergyPlastics

We aim to further reduce our company’s energy
needs by switching to more energy-efficient facilities
at our worldwide production sites.

We aim to avoid single-use plastic productpackaging, replacing it with cardboard or othereco-friendlier materials where possible.

OUR TARGETOUR TARGET

Reduce energy consumption
by 55% through improved efficiency
by the end of fiscal year 2029/30

Reduce the proportion of virgin plastic
in primary single-use product packaging tobelow 5% by the end of fiscal year 2029/30

We intend to achieve energy self-sufficiency throughindependent sourcing of renewable energy, such as
installing solar panels, heat pumps or water turbines.

14

We are committed to replacing new plastics usedin our products with alternatives like recycled or
bio-based plastics without compromising quality.

OUR TARGETOUR TARGET

Achieve energy self-sufficiency
by the end of fiscal year 2034/35

Increase the proportion of alternative(especially recycled and bio-based) plastics
in our products to 55% by the end offiscal year 2029/30

Carbon footprint

Gender equality

We are dedicated to continuously reducing our global
corporate carbon footprint by increasing energy
efficiency, switching to renewable energy sources andachieving energy self-sufficiency.

We aim to achieve an equal distribution of womenand men in leadership and management positions.

OUR TARGETOUR TARGET

Reduce the corporate carbon footprint by 55%by the end of fiscal year 2029/30 (based onthe scopes of fiscal year 2019/20, per one million
pieces of produced products)

Increase the proportion of womenin leadership and management positions
to 50% by the end of fiscal year 2029/30

Sustainability targets

­Faber-Castell Aktiengesellschaft
90546 Stein, Germany
Board
Stefan Leitz (CEO)Constantin Neubeck (CFO)
Simon Hauser (CTO)
Foundation
1761
Family-owned businessfor 9 generations
Employees
6,500 worldwide
Group turnover
522.6 million euros (fiscal year 2021/22)
Sales and marketing regions
Europe & North AmericaAsia-Pacific
Latin America
Representations
in more than 120 countries
Sales offices
in 22 countries
Production sites
in 10 countries
Assortment
High-quality products for writing, drawing andcreative design, as well as cosmetic products
ProductionApprox. 2 billion wood-cased pencils per year

For more information on the economic development of the ­Faber-Castell Group, visit thepress pages at www.faber-castell.com and www.bundesanzeiger.de.
The key indicators, data and consumption figures from these Sustainability Insights refer tothe fiscal year 2022/23 and cover all production and affiliated distribution sites. Additionally,current projects and initiatives until the end of the fiscal year 2022/23 are presented.
Publication: January 2024

Faber-Castell company

15Publisher­Faber-Castell Aktiengesellschaft, Nürnberger Straße 2, 90546 Stein, Germany
Responsible
Dr. Susanne Veldung, Senior Manager Sustainability and Brand Equity
Kathy Chiu, Head of Technical Sustainability
Editorial
Katharina Regnet, Linda Böhringer
Concept, editorial and layout
Kammann Rossi GmbH
Illustrations
540 Tage Liebe

For more information,
visit our sustainability website:www.faber-castell.com/
corporate/sustainability

Feedback, criticism, suggestions, or questions about
these Sustainability Insights or sustainability in general?
Contact us at sustainability@faber-castell.com

For further facts and figures, checkour Sustainability Details:
www.faber-castell.com/corporate/
sustainability/sustainability-Reports