Eurofins Scientific : 2023 ESG Report

Eurofins Environmental,

Social and Governance

Report 2023

ABOUT THIS REPORT:

This report shares an overview of our Environmental, Social, and Governance (ESG) vision, achievements, and progress in the year from January 1, 2023, to December 31, 2023, unless stated otherwise. The content of this fourth annual sustainability report was approved

by Eurofins' Board of Directors on 23 February 2024 and is shaped by our comprehensive stakeholder engagement and focuses on key material sustainability topics. It encompasses the entire Eurofins Network of Companies unless specified otherwise, and features 84 disclosed Key Performance Indicators (KPIs), providing detailed insights into our sustainability strategy, actions and performance.

INTRODUCTIONTHE EUROFINS NETWORK    ENVIRONMENT SOCIAL    GOVERNANCE    DATA TABLES

TABLE OF CONTENTS

INTRODUCTION

2023 Highlights	2
CEO Message	4

SOCIAL

Diversity, Equity and Inclusion	50
Employment Creation	58
Human Capital Development	62
People, Health and Safety	66
Giving Back	68

THE EUROFINS NETWORK OF COMPANIES

Overview

Vision, Mission and Values

Sustainability at Eurofins -

Executive Summary

Eurofins' Contribution to the United Nations Sustainable Development Goals

Materiality

GOVERNANCE

Sustainability Governance

Corporate Governance

Sustainable Procurement and

Supply Chain Management

Honesty, Integrity and Human Rights

Enterprise Risk Management

Quality Management

Information and IT Operation Security

Product and Service Quality

ENVIRONMENT

8 Safeguarding the Environment

26

9 through our Products and Services

10	Environmental Risk Management	30
	Climate Change	34
18	Energy and Waste Management	44
	Responsible Consumption of	46

22 Scarce Resources

DATA TABLES

76	Eurofins Data Tables	100
79	Taxonomy Disclosure	104
80	Global Reporting initiative	107
	(GRI) Disclosures
82	Sustainability Accounting Standards	110

84 Board (SASB) Disclosure Topics and Accounting Measures

92	Aligning to the Task Force on	111

1. Climate-RelatedFinancial Disclosure
2. (TCFD) framework

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INTRODUCTION THE EUROFINS NETWORK    ENVIRONMENT    SOCIAL    GOVERNANCE    DATA TABLES

2023 Highlights

ENVIRONMENT

Achieved carbon intensity (tCO₂e/FTE) reduction:

-7.6% vs 2022

-18.5% vs 2019 (baseline year)

In early 2024, Eurofins signed the SBTi commitment letter joining the growing group of companies setting ambitious science-based targets.

Participation in the Serbal Solar Project in Spain in partnership with Thermo Fisher Scientific announced in December 2023. From 2025 onwards, the project is expected to deliver 76,000 megawatt hours of green energy per year (equating to over 15% of Eurofins' electricity consumption worldwide).

SOCIAL

Recognised for a third year in a row as a Leader in Diversity by the Financial Times and Statista for demonstrating leadership in advancing diversity, equality and inclusion in the workplace.

Increased % of female representation at Group Operating Council level and Regional Business Line Leaders (2023 - 21% vs. 2022 18%), National and Business Line Leader level and Business Unit Leadership level (2023 - 34% vs. 2022 30%) and among all Employees (2023 - 57% vs. 2022 55%).

The Eurofins Foundation selected 73 projects for funding in 2023 and provided emergency support to help the victims of the devastating series of earthquakes in Turkey and Syria.

GOVERNANCE

Continued to earn solid ratings from ESG rating agencies during 2023.

Since 2019, Eurofins has consistently improved its Bitsight rating, reaching 710 in Q4 2023, reflecting our ongoing commitment to robust

cyber security practices.

Achieved a network-wide Net Promoter Score® (NPS) of 65.7 (successfully meeting 2023 target of 53) thereby reaffirming an unwavering commitment to customer focus.

SUSTAINABILITY AWARDS

Eurofins China companies and laboratories received a Sustainable Business Award from the European Union Chamber of Commerce in China.

Eurofins Lancaster Laboratories Inc. (Eurofins BioPharma Product Testing site in Lancaster, PA US) received an Honourable Mention at the International Institute of Sustainable Laboratories (I2SL) Sustainable Laboratory Awards in the Lab Programs and Initiatives category.

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INTRODUCTIONTHE EUROFINS NETWORK    ENVIRONMENT SOCIAL    GOVERNANCE    DATA TABLES

GRI Standard/Disclosure: 2-22,3-2

CEO Message

I am pleased to share with you our 2023 ESG Report. In a year that has been challenging due to the geopolitically and economically uncertain climate, most of our companies are remaining resilient. Following our unique philosophy of entrepreneurialism, Eurofins Leaders are empowered to run their businesses with great independence, and with that comes the trust that they will make the right decisions to steer their companies through any challenges. →

Despite these challenges, an unwavering advantage for Eurofins Companies is the

positive environmental and social impact that our essential testing services have on the world. Although some of our clients, especially in Europe, are experiencing less demand as a result of economic pressures on the markets in which they are active, we continue to see many exciting new opportunities, thanks to recent developments in the biotechnology and analytical science spheres. It is part of our entrepreneurial spirit to react rapidly to these. Many of

our business lines have been incredibly innovative and often were the first to bring testing services to market to seize these new opportunities. In addition, much like we did during the COVID-19 crisis, our companies are working closely with public health authorities to help tackle certain new challenges. Our Clinical Diagnostics business in Belgium, for example, is assisting the government with an unprecedented project to test the blood of up to 75,000 residents living near a chemical production site for the presence of PFAS.

There is also a growing conversation around organic farming, as part of the increasing emphasis placed on sustainability. In response, Eurofins Food & Feed Testing companies in France is a leading player in

a collaborative research project, TOFoo®

(True Organic Food). The project seeks to determine whether food products are genuinely organic by processing their analytical footprint using artificial intelligence. In July 2023, Eurofins Alimentaire France SAS launched their innovative, new organic vs. non-organic test, developed as part of the TOFoo® project, and continues to conduct further research to expand the test's scope. These are just some examples of many instances where Eurofins colleagues have proved to be incredibly innovative and entrepreneurial in their vision of Testing for Life.

Specific to the field of sustainability, many Eurofins Companies are innovating and extending their services to help our clients in various sectors to reduce their environmental impact. Throughout this report, we highlight how we serve as an ESG Enabler, adding another important layer to how we strive not only to provide testing services but also to establish ongoing collaborative partnerships with our customers. Eurofins Sustainability Services brings together this wide range of service offerings under one umbrella. This facilitates an easy connection between our global customers and the Eurofins Companies best suited to meet their testing needs, covering microplastics testing, wastewater

testing, biodegradability and recyclability assessments, Supply Chain audits, life cycle analysis, and many other services.

Specific to our ambitious goal of achieving carbon neutrality by 2025, we made significant progress in 2023. In December 2023, we announced our participation in a groundbreaking deal with Thermo Fisher Scientific for a 36-megawatt stake in the Serbal Solar Project, a colossal 127-megawatt initiative in Spain developed by ib vogt GmbH. This strategic investment is a pivotal step towards our ambitious goal of achieving carbon neutrality by 2025. It will significantly reduce carbon emissions across the Eurofins Network, ensuring more than one-third of our addressable European footprint is powered by 100% renewable electricity.

Some highlights related to the Social pillar of our ESG objectives include that in December of 2022, Eurofins became a signatory to the UN Women's Empowerment Principles (UN WEPs), joining over 8,500 companies worldwide. As a signatory to the WEPs, I made a public commitment that ensures that Leaders at all Eurofins Companies are advancing equality for women within their scopes. We continue to see an increased percentage of female representation at many levels of leadership

within our Network of Companies thereby confirming this commitment. The Eurofins Equality Driving Excellence (EDE) initiative focussed on a Unity in Community theme in 2023 to unite diverse communities at the global and local levels to further progress equality and inclusion.

Related to Health and Safety, since the creation of a 400+ person Health and Safety Champion community in 2022, global virtual meetings have been organised in 2023 during which best practices and key learnings have been shared. I am also pleased to report that there were zero work- related contractor or Employee fatalities in 2023.

The Board-appointed Sustainability and Corporate Governance Committee continues to work closely with the Executive Sustainability Committee to assess the effectiveness of our sustainability strategy as it relates to our business operations environmental impact, prevention of climate risk and social topics in our materiality matrix. In addition, two of the Sustainability and Corporate Governance Committee members on the Board of Directors completed ESG diploma and certification courses resulting in enhanced ESG knowledge and skills at the Board level. Our initiatives aimed at ESG improvement

continue to be acknowledged by the leading global ESG rating agencies and our scores with agencies such as MSCI, Sustainalytics, ISS, and S&P Global all remained solid in 2023. Eurofins will look to make further progress in 2024 as we work together to embrace and comply with the forthcoming European legislation to implement the Corporate Sustainability Reporting Directive (CSRD) in fiscal year 2024. In addition,

our alignment with the United Nations Sustainable Development Goals serves as a roadmap to enhance and improve our Corporate Sustainability priorities.

As in previous years, we have highlighted many local initiatives throughout this report and as you will see, these Employee-driven projects have a positive impact on carbon footprint reduction, biodiversity protection and creation, health and wellbeing,

and giving back to local communities. Furthermore, all Eurofins Leaders are making it their duty to proactively reduce the environmental impact that their companies' essential operations have on the planet. This report spotlights several examples

of sustainable changes made within laboratories in our network, from renewable energy installations to environmentally conscious commuting schemes. 23% of energy consumed by Eurofins sites globally

is now from renewable sources. Our Eurofins community will continue to rise up to the challenge of fighting new threats to the environment and human health, as we do best. It is with our approach of rapidity, foresight and entrepreneurial flare that we will not only stay ahead of our competitors, but also make positive contributions to our planet and society. 

Dr Gilles Martin

Chief Executive Officer and Founder Eurofins Scientific

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INTRODUCTION    THE EUROFINS NETWORKENVIRONMENT SOCIAL    GOVERNANCE    DATA TABLES

The

Eurofins Network

→ OVERVIEW

→ VISION, MISSION AND VALUES

→ SUSTAINABILITY AT EUROFINS - EXECUTIVE SUMMARY

→ EUROFINS' CONTRIBUTION TO UNITED NATIONS

SUSTAINABLE DEVELOPMENT GOALS → MATERIALITY

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INTRODUCTION    THE EUROFINS NETWORKENVIRONMENT SOCIAL    GOVERNANCE    DATA TABLES

Overview

Eurofins Scientific, based in Luxembourg and listed on the stock market since October 1997, has been a member of the CAC 40 since September 2021. In 2023, Eurofins' revenues amounted to €6,515m and its adjusted EBITDA stood at €1,364m. →

GRI Standard/Disclosure: 2-1,2-6,2-7,2-28,3-3 (Material Topics)

GRI Standard/Disclosure: GRI 2: 2-23

OUR VISION

Our long-term aspiration

Today, Eurofins is a leading provider of analytical and testing services, with

an international network in 62 countries generally specialised by end client markets and operating more than 900 laboratories, with ca. 62,000 staff, a portfolio of over 200,000 analytical methods and more than 450 million tests performed each year to evaluate the safety, identity, composition, authenticity, origin, traceability, and purity of a wide range of products, as well as providing innovative clinical diagnostic

environmental aspects of doing business that are in alignment with the United Nations Sustainable Development Goals. Through our testing activities, we help many other corporations, organisations and governments test and improve their practices to make them more sustainable, and more environmentally and socially responsible.

For our own activities, our commitment to operate in a sustainable way is a natural extension of what we do. We rely on and

global footprint gives us the opportunity to have a long-lasting positive impact on the environment and society, and we want to embrace this opportunity by championing ESG initiatives that work towards a more sustainable future.

In 2023, we continue to align our disclosures according to the Task Force on Climate-Related Financial Disclosure (TCFD), Framework, the Global Reporting Initiative (GRI) and the Sustainability Accounting Board (SASB) reporting standards. Together,

To be the Global Leader in Testing for Life.

OUR MISSION

Why we are here - the cause/purpose of our business

To contribute to a safer and healthier world by providing our customers with innovative and high quality laboratory, research and advisory services whilst creating opportunities for our employees and generating sustainable shareholder value.

testing services and in-vitro diagnostic products. We are the global leader of the Testing, Inspection and Certification (TIC) Industry and a member of the international non-profit association TIC Council.

As a Network of Companies sharing the same vision, Testing for Life, we consider it our obligation to make a positive impact on the environment and humanity. Our mission is to contribute to a safer and healthier world, and our policies incorporate a strong focus on the ethical, social and

require the ethical and compliant conduct of our Leaders, Employees and partners in all aspects of our companies' business. These obligations are clearly defined in our Code of Ethics and Core Compliance Documents, as well as by our whistleblowing procedures and Governance Committees. Outside

of work, our Employees have also set up local social and environmental initiatives to reduce our environmental impact and give back to their own communities at a regional level. Eurofins believes that our

they provide an inclusive picture of our material ESG topics, their impacts and how they are managed across our entities. The tables on pages 100-111list the different reporting standards and reference each standard either to the 2023 Annual Report, the 2023 ESG report or Corporate Sustainability documents available on the Eurofins website. 

OUR VALUES

What we stand for/what is important for us

Customer focus

• Delivering customer satisfaction by listening to and exceeding customer expectations
• Adding value for our customers through our services
• Seeking innovative solutions to help our customers achieve their goals

Quality

• Delivering quality in all our work; providing accurate results on time
• Using the best appropriate technology and methods
• Seeking to improve or change our processes for the better

Competence and Team Spirit

• Employing a diverse team of talented and competent staff
• Investing in training and creating rewarding and equitable career opportunities
• Recognising and encouraging outstanding performance

Integrity

• Behaving ethically and socially responsibly in all our business and financial activities
• Demonstrating respect and inclusivity towards our customers and our staff
• Operating sustainable environmental policies

Figures as at 31 December 2023

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INTRODUCTION    THE EUROFINS NETWORKENVIRONMENT SOCIAL    GOVERNANCE    DATA TABLESGRI STANDARD/DISCLOSURE: 2-3

EXECUTIVE SUMMARY

Sustainability at Eurofins

SUSTAINABILITY AT THE HEART OF WHAT WE DO

At Eurofins, we believe that sustainability is at the heart of what we do. We are guided by our vision to be the Global Leader in "Testing for Life", our mission of contributing to a healthier and safer world and our core values that provide a strong foundation for Environmental, Social and Governance (ESG) initiatives. 

Eurofins' commitment to sustainability starts within Eurofins Companies themselves, through a shared responsibility towards people and the planet in all that they do. With climate change an imminent threat, Eurofins and its many companies recognise their duty to proactively reduce or compensate for the environmental impact that essential operations have on the planet, as well as helping our clients to do the same. This is how Eurofins serves as an ESG Enabler. →

THE MAJORITY OF EUROFINS' MATERIAL OPERATIONS ARE SUSTAINABILITY ENABLING

•Eurofins believes its businesses are consistent with and support 16 of the 17 of the UNSDGs.

•Across all business lines, 99% of Eurofins' revenue, 99% of its

operational expenditures (OpEx) and 86% of its capital expenditures (CapEx) falls into an area of activity that supports one or several of the UNSDGs. This shows the impact that "Testing for Life" has on all aspects of Sustainable Development.

→ ENVIRONMENT

→ SOCIAL

→ GOVERNANCE

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INTRODUCTION    THE EUROFINS NETWORKENVIRONMENT SOCIAL    GOVERNANCE    DATA TABLES

EXECUTIVE SUMMARY

ENVIRONMENT

Carbon Neutrality Objective

• Current publicly reported target:

•Emission reduction of almost 8% vs. 2022 achieved.

GHG emissions in metric tonnes (in 1000 tCOe) (market-based)

Carbon intensity per FTE (tCOe/FTE) (market-based)

Carbon neutrality by 2025.

•Over 150 CO₂ Champions assist with our carbon footprint measurement exercise and assist business Leaders to implement local reduction strategies with central support.

•All Business Units and senior Leaders have ESG targets, focussed on environment, safety and compliance,

conditioning a part of their variable compensation. Furthermore, targets specific to CO₂ footprint reduction are required and reviewed as part of a separate annual ESG budgeting activity.

•Eurofins' 2023 emissions (covering >95% of the Group's FTE) for Scopes 1, 2 and part of 3 have been determined as ca. 457,527 metric tonnes of CO₂ equivalent. For the same scope, 2019, 2020, 2021 and 2022 emissions were also determined.

•Focussed efforts to source renewable energy resulted in an increase of green electricity utilised across the Eurofins Network from 20% in 2022 to 23% in 2023.

•Achieved carbon intensity (tCO₂e/FTE) reduction: -7.6% vs 2022

-18.5% vs 2019 (baseline year).

•On its path to carbon neutrality by 2025, Eurofins has offset part of the emissions caused by its operations. Eurofins retired 200,000 metric tonnes of carbon

credits in 2023 (2022: 200,000 tonnes CO₂). The retired offsets fully cover the remaining Scope 1 and 2 emissions in 2023 (176,080 tonnes CO₂e).

•In early 2024, Eurofins signed the SBTi commitment letter joining the growing group of companies setting ambitious science-based targets.

	600						10
	500	493	529	497			8
	497		458
KtCOe	400				tCOe/FTE
				6
300
					4
	200
	100						2
	0	2020	2021	2022	2023		0
	2019
			■ Total COe emissions

9.9	9.6	9.5	8.7
				8.1
5.6	5.6	5.8
	5.5
				5.0
2.9	2.7	2.5	2.2	2.1
1.4	1.3	1.3	1.1	1.0
2019	2020	2021	2022	2023
■ Scope 1	■ Scope 2	■ Scope 3

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INTRODUCTION    THE EUROFINS NETWORK	ENVIRONMENT SOCIAL    GOVERNANCE    DATA TABLES
EXECUTIVE SUMMARY
SOCIAL
Diversity, Equity and Inclusion	People, Health and Safety

Employment Creation and Human	Giving Back
Capital Development

•The Eurofins Equality Driving Excellence (EDE) initiative continues to be an important internal initiative dedicated to fostering a safe and inclusive work environment for all Employees of Eurofins Companies.

•In 2023, EDE launched Unity in Community to unite diverse communities on a global and local level. The Unity in Community initiative included events, trainings, and projects that facilitated and further developed sustainable and inclusive equality communities across Eurofins Companies.

•Eurofins became a signatory to the UN Women's Empowerment Principles (UN WEPs) in December

•In 2023, a team of over 400 local Health and Safety Champions that represent all Business Lines across the Eurofins Network of Companies, conducted global virtual meetings to share best practices and key lessons learned in their respective scopes.

•In 2023, Eurofins Companies reported zero Employee or contractor fatalities.

•Eurofins continues to invest significant resources in training and talent development. In 2023, focus was

placed on enabling the development of local trainings and making these accessible via the online Eurofins Learning Centre (ELC) platform. More than 500 locally created training modules are now hosted on the ELC.

•The Eurofins Academy aims to create training modules in 21 languages to benefit the maximum number of

Employees in all of our companies.

•Eurofins is proud to have continued to create new jobs, with a 20.0% increase in headcount between

2020 and 2023.

•Eurofins continues to contribute to communities across the world through its CSR activities, which are led by the Eurofins Foundation.

•Since its inception in 2019, to date, the Eurofins Foundation has provided support to 382 projects in

numerous countries around the world.

•In 2023, the Eurofins Foundation, active across all three ESG dimensions and committed to the UN

Sustainable Development Goals, supported 73 new projects.

2022, joining over 8,500 companies worldwide.

Total Headcount

2023 Selection - Primary Areas of Intervention

64.000

62.000				61.798
60.000			61.379
58.000		57.992
56.000
54.000
52.000
50.000	51.516
48.000
46.000	2020	2021	2022	2023

• Environment - 15%

• Health and Nutrition - 38%

• Entrepreneurship and Empowerment - 17%

• Education - 30%

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INTRODUCTION    THE EUROFINS NETWORKENVIRONMENT SOCIAL    GOVERNANCE    DATA TABLES

EXECUTIVE SUMMARY

EUROFINS NETWORK OF LABORATORIES - BITSIGHT CYBER SECURITY RATING

GOVERNANCE

		2023				2022				2021				2020			2019
Q4	Q3		Q2	Q1	Q4	Q3		Q2	Q1	Q4	Q3		Q2	Q1	Q4	Q3		Q2	Q1	Q4		Q3
710	700		700*	730	720	700		680	680	640	610		630	600	540	520		530	520	470		450

*score drop as compared to the previous quarter due to calculation method change by Bitsight - across all their assessments

•The Executive Sustainability Committee and Board level Sustainability and Corporate Governance (S&CG) Committee work closely together to assess the adequacy and efficacy of Eurofins' corporate sustainability strategy and related ESG performance indicators.

•Eurofins actively engages with its key stakeholders to drive consistent improvements in its services and the way its business is conducted and governed.

•More customers are requiring participation in EcoVadis CSR assessments and as a result, annual surveys are completed both at the corporate level and by over 60 Eurofins subsidiaries. Of those participating in 2023, three have achieved a Platinum rating, 21 have achieved a Gold rating, 19 have achieved a Silver rating and 15 have achieved a Bronze rating.

Honesty, Integrity and Human Rights

• TheEurofins Group Code of Ethics, as the central compliance document, provides instructions for every Eurofins Employee. In line with Eurofins' broad and holistic approach to compliance and business

ethics, it includes:

• -Essential business-related themes like a strict

anti-bribery and anti-corruption commitment and an unconditional commitment towards legality.

• -Compliance with labour laws, including the four fundamental principles contained within the International Labour Organisation (ILO) Declaration.
• -Supporting human rights in line with the stipulations contained within the Universal Declaration of Human Rights.

•Requiring our Suppliers to comply with and acknowledge the Eurofins Code of Ethics sets clear expectations to ensure compliance with labour laws and human rights stipulations within our Supply Chain.

Sustainable Procurement and Supply Chain Management

•In 2023, we strengthened our procurement and Supply Chain management practices by confirming our Supplier Code of Ethics with significant vendors accounting for more than 58% of Eurofins' overall purchasing spend and 90% of core Supplier spend. Additionally, 74% of Purchasing Spend with targeted Eurofins Suppliers for ESG assessment has been verified for ESG scorecard validity.

Information and IT Operation Security

•Since 2019, Eurofins has consistently improved its Bitsight rating, reaching 710 in Q4 2023 (vs 470 in Q4 2019), reflecting our ongoing commitment to robust cyber security practices.

The progress made on ESG topics reflects Eurofins' commitment to building a more sustainable future. This ESG report has been prepared for stakeholders to better understand our sustainability strategy, actions, performance and key material issues for the year ended 31 December 2023. The report was approved by Eurofins' Board of Directors on 23 February 2024.

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