Nemetschek : Sustainability Report 2023,

Sustainability Report 2023

Design, Build

• Manage Sustainably

Table of contents

+ Business Model	+ Sustainability Approach
	+ Sustainability Structures
	+ Stakeholder Management
	+ Material Risks
	+ Materiality Analysis
	+ EU Taxonomy

• Management Approach - Employee Responsibility
• Gaining & Retaining Employees
• Education & Training
• Employee Health
• Diversity & Inclusion
• Management Approach - Customers & Society
• Client Relationships
• Partnerships with Higher Education Institutions
• Social Commitment

+ Management Approach	+ Management Approach
+ Group Energy Consumption	+ Fair Business Practices
& Emissions	& Anticorruption
+ Environmental & Social	+ Antidiscrimination
Effects of Products
- Design Segment	+ Human Rights
- Build Segment	+ Data Protection
& Information Security
- Manage Segment

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	& T H E C O M PA N Y		& SOCIETY	& CLIMATE	COMPLIANCE

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Our Two Dimensions to Sustainability

Footprint:

Steering sustainability in our own business & organization

Handprint:

Enabling our customers to drive sustainability along the entire building lifecycle

People

& Society

Integrity

& Compliance

• Attracting and retaining employees
• Education and training
• Promotion of health
• Diversity and inclusion
• Long-termcustomer relationships
• Cooperations with universities
• Corporate Citizenship
• Compliance
• Fair business practices & anti corruption
• Prevention of discrimination
• Human rights
• Data protection and IT security

Renovation & Demolition		Planning& Design
• Easier reconstruction of buildings		• Simulations
• Reusing raw materials		• Energy analysis

			e
			g	D
		n	a	e
			i
	a			s
M			g
				n

Environment	• Energy & Emissions in own company
& Climate

	Build
Operate & Manage		Build & Construct
• Smart buildings		• Optimized usage of
• Efficient usage of office		resources and materials
spaces and energy		• Prefabrication

INFORMATION GR APHIC	A B O U T T H I S R E P O RT	S U STA I N A B I L I T Y	EMPLOYEES	ENVIRONMENT	INTEGRITY &
	& T H E C O M PA N Y		& SOCIETY	& CLIMATE	COMPLIANCE

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About This Report

and the Company

• Business Model

I N FO R M AT I O N G R A P H I C	ABOUT THIS REP ORT	S U STA I N A B I L I T Y	EMPLOYEES	ENVIRONMENT	INTEGRITY &
	& THE COMPANY		& SOCIETY	& CLIMATE	COMPLIANCE

4 | SUSTAINABILITY REPORT 2023

About This Report and the Company

This sustainability report for the 2023 financial year is aimed at customers, business partners, employees and investors of the Nemetschek Group as well as interested representatives from business, science, politics, and so- ciety. The report presents how the company contributes to sustainable development, the goals it has set itself, the structures it has created and the measures that contributed to strengthening sustainable development in the 2023 financial year. It also addresses the legal obligations to which the company is subject in various areas.

This fifth sustainability report of the Nemetschek Group covers the 2023 financial year, which corresponds to the 2023 calendar year and, unless otherwise stated, includes all companies consolidated in the consolidated financial statements. The sustainability report is published annually and prepared with the involvement of all relevant specialist departments in accordance with the Universal Standards of the Global Reporting Initiative (GRI) published in October 2021 and approved by the Executive Board.

Large parts of this sustainability report constitute the Group non-financial statement integrated into the Group management report (<< Non-financialstatement >>; Group management report for the 2023 financial year).

Company Information and the Group's Business Model

Together with its subsidiaries, Nemetschek SE forms the globally active Nemetschek Group. The company's history stretches back 60 years to its foundation in 1963 by Prof. Georg Nemetschek. Today, the Nemetschek Group is a global provider of digital software solutions for all disciplines along the entire life cycle of buildings and infrastructure projects (AEC/O-Industry - Architecture, Engineering, Construction and Operation) as well as for all phases in the creation of digital content in 2D and 3D in the media sector.

The strategic parent company, Nemetschek SE, has its headquarters in Munich. Nemetschek SE is home to the central functions Corporate Finance & Tax, Controlling & Risk Management, Investor Relations & Corporate Communication, People/Human Resources, Mergers & Acquisitions, Start-up & Venture Investments, IT, Information Security, Global Procurement, Transformation Office, Internal Audit and Corporate Legal & Compliance, which perform important governance tasks for the Group and the brands.

The operating business is implemented via four segments with a total of 13 brands (previous year: 13 brands). Brands are subsidiaries or groups of subsidiaries that operate on the market as part of an overarching Group strategy. This group structure reflects the corporate philosophy of central management at Group level and a high degree of entrepreneurial freedom at subsidiary level. As of January 1, 2023, there was a change within the segment structure. The dRofus brand, which was still assigned to the Build segment in the 2022 financial year, has been assigned to the Digital Twin business unit since January 1, 2023 and is consolidated in the Manage segment. The change has no impact on sustainability reporting.

With its software solutions, the Nemetschek Group supports digitalization along the entire building lifecycle - from the design, construction, operation and renovation phases through to the demolition of buildings. This strategically holistic approach makes it possible to bundle investments and expertise in the customer-oriented segments. The Nemetschek Group thus covers an end-to-end workflow and holistic support for customers throughout the building lifecycle, addressing the entire creative content creation process with its solutions. The Nemetschek Group's clear commitment to OPEN BIM and thus to open interfaces increases interoperability, collaboration, efficiency and communication along the entire building lifecycle with its various disciplines. At the same time, Nemetschek is focusing on future topics that the Group believes will shape and change the construction industry in the coming years. These include topics such as artificial intelligence, digital twins, machine

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	& THE COMPANY		& SOCIETY	& CLIMATE	COMPLIANCE

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ABOUT THIS REPORT AND THE COMPANY

learning, sustainability and the use of IoT devices and sensors. These topics are therefore also part of the Nemetschek Group's innovation and development activities.

In addition, there are digital solutions for visualization, 3D modeling and animation, which are used not only in the construction industry but especially in the media and entertainment industry. Here too, the Nemetschek Group's solutions cover the entire content creation workflow and thus address the entire creative content creation process.

A total of 3,403* colleagues work within the Group, the 13 brands and the holding company. The Group operates worldwide. In 2023, revenue amounted to EUR 851.6 million and consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 257.7 million.

Further information on the business model and Group structure is described in << Group Business Model >> in the Group management report for the 2023 financial year.

* Due to different calculation methods, the employee figures for 2023 are not fully comparable with the figures in the Annual Report 2023.

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	& THE COMPANY		& SOCIETY	& CLIMATE	COMPLIANCE

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ABOUT THIS REPORT AND THE COMPANY

The Segments and Brands of the Nemetschek Group

DESIGN

BUILD

MANAGE

MEDIA

NEMETSCHEK ENGINEERING

DIGITAL T WIN BUSINES S UNIT

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	& THE COMPANY		& SOCIETY	& CLIMATE	COMPLIANCE

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Sustainability

• Sustainability Approach
• Sustainability Structures
• Stakeholder Management
• Material Risks
• Materiality Analysis
• EU Taxonomy

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	& T H E C O M PA N Y		& SOCIETY	& CLIMATE	COMPLIANCE

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Sustainability at the Nemetschek Group

Approach to Sustainability

The Nemetschek Group places considerable importance on good corporate governance and social and environmental responsibility. The Group aims to increase efficiency and productivity along the entire value chain of the construction industry through its software solutions. These solutions cover the complete workflow in the life cycle of a construction or infrastructure project, from the first sketch to the construction and operation of the property. Architects, engineers of various disciplines, building contractors, property developers, property managers, and building managers can use the Nemetschek Group's software solutions to design, build, and manage properties and building structures digitally and efficiently throughout the building life cycle.

We focus on acting sustainably not only in the development of our software solutions, but also in how we treat our employees and approach our role in society. For this reason, the Nemetschek Group has defined standards in its Code of Conduct for the way in which it conducts day-to-day business. The Code of Conduct is regularly reviewed to ensure it is current and revised accordingly. Specifically, it says:

"The public image of the Nemetschek Group is essentially shaped by the appearance, actions and behavior of each one of us. Each of us is jointly responsible for ensuring that we, as the Nemetschek Group, fulfill our legal and social responsibilities worldwide."

The Code of Conduct states that the Nemetschek Group does not tolerate any form of discrimination or harassment, nor corruption of any kind. Furthermore, each and every employee is required to use all resources sparingly and in an environmentally friendly manner in everyday working life. Employee responsibility also plays a significant role.

Beyond its own organization, the Nemetschek Group also has its suppliers commit to a Supplier Code of Conduct for suppliers and business partners, for example. This particular code of conduct provides guidelines that include the fundamental principles of the International Labour Organization (ILO), among other things. Further information on these two topics is provided in the section << Integrity and Compliance >>.

Sustainability Structures within the Company

There are standards applicable across the Group that provide the basis for sustainability-related activities. They cement sustainability as an integral part of all business practices of the Nemetschek Group. The sustainability team and the cross-functional Core Sustainability Team identify sustainability-related topics and coordinate the implementation of the corresponding meas- ures. The sustainability team maintains close contact with the Executive Board in this regard. The Chief Executive Officer (CEO) holds responsibility for sustainability within the Executive Board. The CEO engages intensively with the sustainability team about the progress on relevant activities within the company, usually once per quarter, and discusses the next steps to take. Furthermore, the Executive and Supervisory Boards are kept abreast of key sustainability developments by means of a report every quarter. The regular reporting to and dialog with the Executive and Supervisory Boards focus in particular on the key issues identified through the Materiality Analysis, which is described below, and on the development of these issues.

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	& T H E C O M PA N Y		& SOCIETY

ENVIRONMENT	INTEGRITY &
& CLIMATE	COMPLIANCE

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SUSTAINABILITY

The Group's Corporate
	CEO
Responsibility (CR) Structure
			VP Corporate Communication & Investor Relations
				CR-Team
Chief People Officer			Corporate Information Security Officer		Senior Director Legal & Compliance
				13 CR Representatives in the Brands

Stakeholder Management

The key stakeholders for the Nemetschek Group are its employees, business partners, clients, suppliers, and investors, as well as universities and other educational establishments, the media and society at large. Contact with business partners and collaboration with universities and other educational establishments happens largely directly via the subsidiaries. The investors are kept up to date by means of periodic reports on financial market matters, and through their regular contact with the Investor Relations department and the Executive Board. The Annual General Meeting also provides an opportunity for direct dialog with the shareholders. The Nemetschek Group strives to communicate openly and reliably with all stakeholders, and in so doing, also to develop its sustainability activities on an ongoing basis. Continual dialog with stakeholders is intended to increase transparency and reinforce trust in the Nemetschek Group, while also helping to share its sustainability approach.

Material Risks

Because the Nemetschek Group consists of 13 brands, many of the non-financial issues are also managed by the brands independently. In order to coordinate the activities and align them across the Group, the sustainability representatives of all brands hold regular discussions on matters such as the ongoing development of the future sustainability strategy, non-financial risks and best practices within the brands. The virtual meetings have been held once per quarter since the middle of the fiscal year. The sustainability

representatives are the driving force for the relevant sustainability issues within their brand and are tasked with exchanging information with Nemetschek SE as well as with their colleagues at their brand and beyond.

The Nemetschek Group examines not only the main risks for its business activities but also risks that could have a significant negative impact on the concerns defined for non-financial reporting (HGB section 315c in conjunction with section 289c(3)(3) and (4)). The risk assessment involves recording the gross risk values for the amount of loss and probability of occurrence as far as possible, as well as the net risk positions remaining after risk-mitigating measures.

Similarly to the previous year, no material risks that would very likely have serious effects were identified for 2023 with respect to the topics defined in the non-financial reporting. Consequently, there remained no risks

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