Aurubis : Non-Financial Report 2020/21

44 Sustainability

Sustainability

Non-Financial Report

Aurubis will expand its industry leadership in sustainability by implementing its 2030 sustainability targets.

Health and safety
Future-oriented	Energy and climate
employer
				Environmental
Training and education
protection
Social engagement

People Environment

Economy

Metalsfor Progress:

Driving Sustainable Growth

Governance and ethics

Recycling solutions

Responsible supply

chain

Aurubis Annual Report 2020/21

Sustainability 45

Introduction

Aurubis Sustainability Strategy

Sustainability is a significant part of the Aurubis Group's conduct, enshrined in our company strategy, and therefore key to our business activities. We pursue the company's mission of responsibly transforming raw materials into value - to provide metals for an innovative world. A responsible approach

to employees, suppliers, customers, and neighbors is a matter of course for us, whether in direct business operations or in the surrounding areas. The same applies to the environment, as we are aware of the limits of natural resources.

With this Non-Financial Report (NFR), Aurubis fulfills its obligation to disclose non-financial information for fiscal year 2020/21 pursuant to Sections 315b and 315c in conjunction with Sections 289b to 289e of the German Commercial Code (HGB). We use the Sustainability Reporting Standards of the Global Reporting Initiative (GRI) Glossary, page 212 as a guide in describing the concepts and selected KPIs.

The main external factors influencing business development are described in the ­Risk and Opportunity Report of the Combined Management Report, pages 116-126.Risks related to non-financialaspects beyond the company boundaries are also mentioned there. Non-financialrisks were assessed in accordance with Section 289c (3) of the German Commercial Code (HGB). In the process, no non-financialrisks were identified that were very likely to cause a serious negative impact on employee and environmental matters, on respect for human rights, on the prevention of corruption and bribery, or on social matters.

The previous company strategy was updated in fiscal year 2020/21. "Metals for Progress: Driving Sustainable Growth" was adopted as a result. The key elements of the strategy are securing and strengthening the core business, pursuing growth options, and expanding industry leadership in sustainability. With the development of the company strategy, our sustainability aspirations will be integrated even more strongly in all areas and activities of the company.

The key element "expanding industry leadership in sustainability" includes the focus areas of people, the environment, and the economy, with our nine sustainability action areas Aspects relevant for Aurubis, page 47. For each action area, new or continuing targets were defined for 2030. The existing Sustainability Strategy, with its 2018-2023targets, is assimilated as a milestone into the new Group strategy for 2030 Aurubis' 2030 sustainability targets, page 46. The results of the current materiality analysis

Glossary, page 214 were also incorporated in the strategy update Aspects relevant for Aurubis, page 47. On this basis, we identified an

additional action area: "Governance and ethics." This encompasses the topics of compliance and human rights, for example, which we consider material aspects. The action area "Growth and innovation" is no longer included, as this is represented in the company strategy's key element "pursuing growth options." The updated strategy, including the sustainability approach, was adopted by the Executive Board and Supervisory Board.

The individual measures and targets of the Sustainability Strategy 2018-2023 and the status of implementation are featured in this report at the end of the description of each action area.

Annual Report 2020/21 Aurubis

46 Sustainability

Aurubis' 2030 sustainability targets

Action area	Ambition	2030 targets	2022/23 milestones
	Economy
Governance and	We uphold the principles of
ethics	­responsible corporate governance.
Recycling solutions	We offer comprehensive value chain	50 % recycled content in
		solutions­	for the circular economy.	copper cathodes

Responsible	We minimize negative impacts on	No suppliers with
supply chain	people and the environment in our	a very high risk
	supply chains.

• Human rights, environmental protection, and safety clauses in 100 % of long-term contracts for primary raw materials
• Continued rollout of Aurubis Business Partner Screening

Environment

Energy and climate	We will be carbon-neutral	-50% absolute Scope 1 and Scope 2	» ISO 50001 at all production sites
	well before 2050.	emissions (base year 2018)
		-24% Scope 3 emissions per t of
		copper cathodes (base year 2018)
Environmental	We produce with the smallest	-15% specific dust emissions	» ISO 14001 at all production sites
protection	environmental footprint	in g/t of multimetal copper equivalent	» Reducing specific metal
	in our sector.	(base year 2018)	emissions to water by 50 % in g/t
			of copper output (Cu) (base year
		-25% specific metal emissions to water
		2012)
		in g/t of multimetal copper equivalent
		» Reducing specific dust emissions
		(base year 2018)
		by 15 % in g/t of Cu output (base
			year 2012)

People

Health and safety	We prevent work-related accidents,	Vision Zero: LTIFR 0		» LTIFR ≤ 1.0
	injuries, and illnesses.			» ISO 45001 certifications at all
						production sites and slitting
						centers
Future-oriented	We create a work environment for	100 % of the relevant employees
employer	close collaboration and promote	are trained on unconscious bias
	diversity and commitment. We
	passionately­	work for the progress
	>40 %1 of employees take part in job
	of the company and society.	rotation or job shadowing, with
				diversity being promoted at the same
				time
				At least 75 %1 of the employees
				surveyed participate­	in pulse checks
				and feedback measures
Training and	We provide high-quality vocational	100 % fulfillment of the continuing	» 18 training hours per employee
education	training and invest in forward-looking	education allotment in hours	per year on average
	qualifications­	for employees.	(continuing education allotment: 18
				hours per year for each employee)

Social	We are a reliable partner locally and
engagement	internationally, one that makes a
	long-term contribution to a livable
	environment.

90 % long-term partners	» Developing impact monitoring to
(percentage of total budget)	evaluate projects supported
0.8 % of operating EBT (five-year
average)­	as annual budget for social

engagement, but at least € 2 million

1 Over the period FY 2021/22 to 2029/30.

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Sustainability 47

Aspects relevant for Aurubis

When selecting the aspects for the Non-Financial Report, we were guided by both the main action areas of the company's ­Sustainability Strategy and the non-financial topics that are required to understand the business development, the business result, the company's position, and the impacts of our activities on these aspects.

To identify the relevant report content, we updated the materiality analysis Glossary, page 214 in the reporting year with the assistance of internal and external experts. This was based on a revised list of potentially material topics that included new and increasingly relevant sustainability aspects in our industry. The list of results was expanded to include two material topics, "Work in associations and political lobbying" and "Data protection and IT security." The Executive Board confirmed the results. The topics identified as material in this process are assigned to the action areas of the Aurubis Sustainability Strategy in the Non-FinancialReport. We present topics that have the same management approach in a consolidated format below. The new action area "Governance and ethics" is described in several chapters of the Non-FinancialReport table on the right as well as in the Corporate Governance section Corporate Governance Report, pages 18-43.

Interdisciplinary topics such as sustainable finance Glossary, page 214, which can't be directly assigned to a specific action area, were also identified as material. Aurubis supports the work of the EU Action Plan on Sustainable Finance at European level and the corresponding approaches at national level in Germany. These deal with the implementation of increasing reporting requirements and political issues such as the assessment of the non-ferrous metals sector regarding a classification of sustainable products or possible liability regulations for risks in the supply chain, for example. Because it affects several of our sustainability activities, such as climate protection, respect for human rights, and the circular economy, sustainable finance extends across multiple action areas of the Sustainability Strategy and therefore cannot be classified under individual matters outlined in Section 289c (3) of the German Commercial Code (HGB).

The materiality analysis indicated once again that the topic of social engagement has no direct impact on our business ­development but is of considerable importance for us and our stakeholders. That is why it is part of this report and labeled as such under the topic "Social matters."

Overview of material topics

		Material
		according
		to German	Material	Page
	Sustainability	Commer-	for	in
	action areas	cial Code	Aurubis	NFR
Employee-	Future-oriented
related	employer	√	√	49
matters
Training and	√	√
	education	52
	Health and safety	√	√	53
Environmental	Energy and climate	√	√	56
matters
Environmental	√	√
	protection	59
	Recycling solutions	√	√	63
Social matters	Data protection and	√	√
	IT security1	65
	Work in associations
	and political	√	√
	lobbying1	65
	Social engagement		√	66
Human rights	Human rights and
	fair working	√	√
	conditions1	68
	Responsible supply	√	√
	chain	68
Anti-
corruption	Anti-corruption1	√	√	70

1 Topics of the strategic action area "Governance and ethics."

Annual Report 2020/21 Aurubis

48 Sustainability

Sustainability management

From an organizational perspective, the Sustainability department is part of the Investor Relations, Corporate Communications & Sustainability division, the head of which reports directly to the Executive Board chairman, who in turn bears the overall responsibility for the issue of sustainability in the Aurubis Group.

The Sustainability department serves as the interface between the departments relevant to the topic of sustainability and coordinates all of the related processes in the Group, serving as a contact for the sites. At the same time, it is also responsible for continuously reviewing and developing the sustainability targets and supporting the operational implementation of the measures with the relevant divisions. It reports current developments to the Supervisory Board (Audit Committee). Yet another focus area is supplier screening based on sustainability criteria. The department represents Aurubis' interests in sustainability issues as well. Moreover, it manages sustainability reporting and communication. It is the point of contact for ESG rating agencies Glossary, page 212.

To reflect the influence of sustainability on the company's success, the Aurubis Executive Board's variable compensation - in particular the annual bonus - takes various ESG performance criteria into account. Compensation Report of the Corporate Governance

Report, pages 28-43.

To be able to integrate the complex and dynamic sustainability developments into business activities even better in the future, initial concepts to realign the Aurubis sustainability organization were developed in the context of the strategy process. These are scheduled for implementation on January 1, 2022.

For many years, we have made our sustainability achievements transparent in a variety of ways. These include participation in sustainability rankings and ratings such as that of the CDP

Glossary, page 212 (a non-profit organization that advocates for climate reporting, among other things) as well as voluntary reporting. Our Sustainability Reports are guided by the GRI standards and are released every two years, with the next one covering fiscal year 2021/22. In the years without a Sustainability Report, the sustainability KPIs are updated and released separately in consolidated form in a KPI Update.

Aurubis Annual Report 2020/21

We communicate regularly with our key stakeholders about sustainability-related topics. We believe it is important to maintain an open and transparent dialogue with employees, customers, suppliers, politicians and society, capital market participants, the media, non-governmental organizations, and the scientific community.

Description of the business model and presentation of the Group structure

As an integrated group, Aurubis processes complex metal concentrates, scrap metals, organic and inorganic metal-bearingrecycling raw materials, and industrial residues into metals of the highest purity. In addition to our main metal, copper, our metal portfolio also includes gold, silver, lead, nickel, tin, zinc, minor metals such as tellurium and selenium, and platinum group metals. Sulfuric acid, iron silicate Glossary, page 213, and synthetic minerals round off the product portfolio. The company purchases the necessary feed materials, as it doesn't own any mines or stakes in mines Business model of the Group, pages 80-84.

Aurubis AG is the parent company of the Aurubis Group and is based in Hamburg, with production sites in Hamburg and Lünen. For us, sustainability and the related action areas and measures apply to all Group companies. The key indicators mentioned in this report are recorded at Aurubis in the individual departments, companies, and sites and consolidated at Group level. In addition to Aurubis AG, the scope of consolidation includes all of the fully consolidated subsidiaries (as at September 30, 2021). The Beerse (Belgium) and Berango (Spain) sites acquired in May 2020 and consolidated in their entirety starting in June 2020 were fully included in the environmental KPIs for 2020. The Fehrbellin site has belonged to the joint venture Cablo GmbH with the recycling company TSR Recycling GmbH & Co. KG since June 1, 2021. Aurubis holds a 40 % stake. The site is still fully consolidated in the environmental KPIs. All environmental and energy KPIs are reported for calendar year 2020, not fiscal year 2020/21.1 When the following report mentions copper production in the context of environmental KPIs, this refers to primary and secondary copper production at the Hamburg, Lünen, Olen, Pirdop, Beerse, and Berango sites. Significant differences between Aurubis AG KPIs and Group KPIs are explained.

1 The KPIs are used first and foremost for internal management purposes and reporting for governmental authorities, for which the calendar year is the given period under review. Parallel reporting of both calendar year and fiscal year figures could lead to confusion and ambiguity.