CENIT : Sustainability Report 2022

Sustainability report 2023
Table of Contents
Table of Contents	2
MESSAGE FROM OUR CEO	5
ABOUT CENIT	6
1. About the report	6
2. GRI 2: General Disclosures	7
2-1.Organizational details	7
2-2. Entities included in the organization's sustainability reporting	9
2-3.Reporting period, frequency, and contact point	9
2-4.Restatements of information	10
2-5.External assurance	10
2-6. Activities, value chain and other business relationships	10
2-7.Employees	11
2-8.Workers who are not employees	16
2-9.to 2-17.Governance structure and composition	16
2-18. to 2-21. Evaluation of the performance of the highest governance body	17
2-22.Statement on sustainable development strategy	17
2-23. to 2-27. Corporate Governance und Compliance Management System	18
2-28.Membership associations	18
2-29.Approach to stakeholder engagement	22
2-30.Collective bargaining agreements	23
3. GRI 3: Material Topics	23
3-1.Process to determine material topics	23
3-2.List of material topics	25
3-3.Management of material topics	25
3-4.Our sustainability goals	32
4. GRI 200: Economic	36
4-1.GRI 201: Economic performance	36
4-2. GRI 205: Anti-corruption & GRI 206 Anti-competitive Behavior	37
4-3.GRI 207: Tax	37
5. GRI 300: Environmental	39
5-1.GRI 302: Energy	39
5-2.GRI 303: Water and effluents	42
5-3.GRI 305: Emissions	44
5-4.GRI 306: Waste	47
6. GRI 400: Social	50
6-1.GRI 401: Employment	50

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6-2.GRI 402: Labor/Management relations	61
6-2.	GRI 403: Occupational health and safety	63
6-3.	GRI 404: Training and education	64
6-4.	GRI 405: Diversity and equal opportunity	67
7. CENIT Cares	68
8. EU Taxonomy	68
9. Customer Cases: "We empower sustainable digitalization"	75
9-1.UNBRICK	75
9-2.FOKKER NEXT GEN	76
9-3.QUANTRON	77
10. Legal notice	78
11. GRI Index	79

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Sustainability report 2023

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Sustainability Report 2023

MESSAGE FROM OUR CEO

For the Intergovernmental Panel on Climate Change scientific community, there is no doubt: nowhere in the world today is safe from the impacts of climate change. Its adverse effects take the form of extreme weather and climate events, with devastating consequences for people and the natural environment.

Companies are stepping up to this global crisis, proactively pursuing their sustainable transformations with solutions that strike a better balance between economic, social and environmental factors. Corporate social responsibility is gaining traction as organizations embed CSR into their vision and strategy to ensure that sustainable development permeates every aspect of their operations.

At CENIT, we leverage deep expertise in digital solutions to help customers make the shift toward more sustainable development pathways. We provide a design environment that helps them rethink how products are designed, made, used and maintained and how services are delivered. By embracing 3D digital solutions, design engineers can explore more ecofriendly alternatives at the earliest stage of each project and thereby minimize the use of hazardous materials, optimize energy efficiency and make their products easier to repair. Digital twins, for example, let engineers model, evaluate and validate their designs in a virtual environment before manufacture. This is a real gamechanger, significantly reducing the need for physical prototypes as well as the environmental impact of products.

In short, it is a whole new paradigm. Integrating digital technology into business models is no longer an option - it is an essential way forward. Digital is a key to staying ahead of the curve in today's fast-moving marketplace. 3D virtual environments foster new, collaborative ways of working both in-house and across the ecosystem of industry partners as part of a deep culture of innovation. Companies and their people, business leaders, public authorities, NGOs, community groups, consumers/citizens and all other stakeholders must help drive this change by working together to identify viable long-term solutions.

As CEO of CENIT, I believe that industry has the ability and the creative talent to step into a virtuous circle, where sustainability is conducive with socially responsible prosperity. In this sustainability report we offer insights and case examples of the momentum of sustainability across industry in a push to achieve carbon neutrality through realistic medium and longer-term goals. "Making the optimum choice", could be seen as an unattainable goal. Nonetheless, our purpose is to do everything we can to minimize the impact of a product throughout its lifecycle as part of our broader mission of working with customers to build a more prosperous, equitable and sustainable future. Ecodesign is the cornerstone of the circular economy with undeniable environmental benefits. This is what drives us. And we are calling on industry to step up to this challenge right now. Our shared successes, our future and the very planet we live on depend on it!

Peter Schneck, CEO

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Sustainability report 2023

ABOUT CENIT

"We empower sustainable digitalization" is our mission.

What is the definition of sustainable digitalization? It consists in supporting our customers to meet their ESG objectives through digitalization of all their processes from end-to-end. It is a digitalization that is responsible, ethical and sustainable: providing ESG benefits while carefully managing the risks of harm.

Since the company foundation in 1988, we have been a leading IT consulting and software company specialized in process digitalization. We enable and sustain the technological advantage of our customers while guiding them in meeting the new environmental goals and regulations of their specific sector. CENIT provides its knowledge and expertise in key industries such as aeronautics, transportation & mobility, medical devices, industrial equipment, high tech, financial services & trade in nine countries all over the world.

It means we, at CENIT, support our customers to innovate while reducing their carbon footprint. Assessing the environmental impact of a product is key for our customers.

We are convinced that digital continuity is a key driver of innovation to help our customers design and manufacture their products in a sustainable way. "We empower sustainable digitalization" is not a concept but is a state of mind. It means that all internal and external stakeholders together define a project framework with all the requirements and then implement an end-to-end digital process to foster collaboration and quality in line with the 17 sustainable development goals of the United Nations.

CENIT is headquartered in Stuttgart, Germany and employs over 900 people including apprentices and supports more than 6,000 customers globally. For more information, please visit www.cenit.com.

1. About the report

CENIT publishes its sustainability report annually. The sustainability report 2023 was published as of 30.04.2024. The reporting period corresponds to the calendar year i.e., from 01.01.2023 to 31.12.2023. This report provides information on how sustainability fits into the CENIT Group strategy. All information on the current sustainability performance and corresponding key figures generally refer to the entire Group, unless otherwise stated. Indeed, as CENIT Group is expanding from year to year and is constantly consolidating new organizations, the perimeter may vary according to the available data. Any deviations are accompanied by a corresponding disclaimer.

In some cases, appropriate estimates or projections are made when preparing the report to provide a complete picture of the period under review. Actual values may differ from these estimates and will be corrected in subsequent sustainability reports. Significant methodological and structural changes compared to the previous year's reporting are documented where appropriate. Differences may occur due to the commercial rounding of amounts and percentages. All key figures are based on corresponding data from the reporting period from January 1st, 2023, to December 31, 2023. In the case of key figures and ratios of employees, the reporting date is December 31, 2023.

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Sustainability Report 2023

The CENIT sustainability report 2023 contains forward-looking statements that are based on the current assessments of the management regarding future developments. Risks and uncertainties, such as the future market environment and economic conditions, the behavior of other market participants, the successful integration of new acquisitions and the realization of expected synergy effects, as well as measures taken by government authorities, are beyond CENIT's ability to control or estimate precisely. Should any of these or other uncertainties and imponderables materialize or should the assumptions on which these statements are based prove to be incorrect, actual results may differ materially from those expressed or implied by such statements.

2. GRI 2: General Disclosures

2-1. Organizational details

CENIT AG is headquartered in Stuttgart and has offices in several major cities (Berlin, Hamburg, Hanover, Munich and Frankfurt) in Germany.

CENIT AG is present in 9 countries, in Europe, United States and China, which represents 29 locations in total across these countries. With the acquisition of the KEONYS Group in 2017, CENIT started its expansion in Europe (France, Belgium & Netherlands). Since then, the pace of acquisitions has significantly increased over the last two years.

• In May 2022, CENIT acquired a majority holding in ISR Information Products AG (ISR for short) with an acquisition of 74.9% of the shares. ISR is a full-service provider for data analysis and process digitalization with headquarters in Braunschweig and offices in Münster, Hamburg, Cologne, Frankfurt, and Munich. With this participation, CENIT reinforced its market position in the field of document logistics and information management.
• In May 2022, CENIT increased its stake in CORISTO GmbH (CORISTO for short) to 100%.
• In October 2022, Magic Engineering SRL was acquired and integrated into the CENIT Group. Magic Engineering SRL, established in 1993, had built a reputation in Romania as

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Sustainability report 2023

a PLM specialist and value-added reseller of Dassault Systèmes products. With this acquisition, CENIT further expanded its position in Eastern Europe.

• In January 2023, the Munich-based Management Information Partner GmbH (MIP in short) became a member of the international CENIT Group. Established in 1988, MIP GmbH is a software and consulting company active in Germany, Austria and Switzerland. MIP specializes in data management and analysis, software development, as well as operation of IT infrastructure and applications.
• In March 2023, CENIT concluded a partnership with Japanese technology company, CENIT Japan became part of Argo Graphics Inc. (Tokyo). The move was aimed at giving both companies a stronger presence on the Japanese robotics market.
• In July 2023, Berlin-based PI Informatik GmbH became a new member of CENIT Group. Among industry, logistics and public sector clients, PI Informatik has made a name for itself as a specialist for complex software development, SAP consulting services and as a long-term partner for managed services and IT infrastructure solutions.
• In July 2023, CENIT acquired a 60% interest in Vienna-based ACTIVE BUSINESS CONSULT Informations technologie GmbH. Founded in 2006, the company is an established specialist for digitalizing and optimizing SAP-based business processes.

All acquired companies continue to operate under their own name - with the additional designation "a company of the CENIT Group". This expansion of the Group is in line with the strategic goal of sustainable growth, with acquisitions that make sense in the Group development enriching its offer portfolio and developing the international coverage.

The domestic and foreign companies included in the consolidated financial statements are consolidated in accordance with the accounting and valuation methods uniformly applicable to the CENIT Group. The same accounting and valuation methods are used for the subsidiaries as for the parent company. Like the parent company, the subsidiaries specialize in the sale and integration of software and IT services in the Product Lifecycle Management (PLM) and Enterprise Information Management (EIM) segments. In addition, CENIT holds a one-third stake in the joint venture CenProCS AIRliance GmbH. The joint venture provides services and consulting for a joint major customer in the PLM segment.

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Sustainability Report 2023

2-2. Entities included in the organization's sustainability reporting

Presented below is the organizational chart of the CENIT Group under company law as of the reporting date:

All companies consolidated in the CENIT Group on 2023, December 31st are subject to the CENIT sustainability Report 2023.

2-3. Reporting period, frequency, and contact point

The CENIT sustainability Report 2023 refers to the complete year 2023, starting with 01.01.2023 until 31.12.2023.

The financial reporting of CENIT is also taken in the same way as such are no deviating reporting periods.

The last CENIT sustainability Report from the year 2022 was published on April 28th, 2022.

The current CENIT sustainability Report 2023 was published on April 30th, 2023.

Sustainability reporting is conducted annually.

In 2023, The CENIT Group appointed a Senior VP Group Sustainability. Together with many experts and members of the Corporate social Responsibility core team within CENIT, the sustainability Report is continuously improved. It is a synthesis of collaborative work between different departments, business fields, but also the acquired entities.

Should you have further inquiries regarding this sustainability report, please send your requests to the following email address: [e-mail].

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Sustainability report 2023

2-4. Restatements of information

For the year 2023, the sustainability CENIT report continues to fit to GRI standards reporting in its latest publication in 2021. By doing so, the CENIT Group gives a completely transparent and structured view of its sustainability activities. Since 2022, CENIT AG has expanded its sustainability reporting to the entire Group.

Restatements of information ensure consistency and enable comparability of information between reporting periods. There was no significant change in the methodology in measurement of GHG emissions or in reporting principles.

2-5. External assurance

The CENIT Group sustainability reporting isn't externally assured.

2-6. Activities, value chain and other business relationships

CENIT has five business divisions, which can be summarized under the PLM (Product Lifecycle Management) and EIM (Enterprise Information Management) segments. The PLM segment includes 3DS Solutions, SAP Solutions, Digital Factory Solutions and Digital Business Services.

The PLM segment focuses on PLM platforms and applications in the classic manufacturing industry and optimizes key manufacturing processes such as product development, operations or change management, using Dassault Systèmes 3DEXPERIENCE® platform with complementary CENIT software solutions. As a value-added integrator, CENIT advises, optimizes, integrates and manages digital processes for its customers, differentiating itself from a standard software reseller.

The EIM segment focuses on processes around 360-degree customer communication, transaction processing, file and document management, primarily in the insurance and financial services industries. The acquisition of the stake in ISR marks the start of an expansion into the retail sector as well as the public sector.

CENIT AG is the specialist for the core processes of its customers and focuses on the manufacturing industry and the financial services sector. The consulting, service, and software portfolio of the CENIT Group is based on standard products of its software partners as well as CENIT's own solutions based on them. Some of CENIT products are hence listed at the price lists of its main partners.

Leading worldwide software providers such as Dassault Systèmes, IBM and SAP are long-term, strategic partners for CENIT and are part of the value chain. The employees in the CENIT Group deliver industry-oriented support in planning, implementing and optimizing their business and IT processes.

To enable customers to concentrate on their core competences, the CENIT Group also takes over the management of applications (AMS) and the associated IT infrastructures.

There are no significant changes in the organization and its supply chain for the 2023 reporting period.

Further information on CENIT's business activities can be found in the management report of the Annual Report 2023.

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