Software : ESG-Präsentation

ESG@SOW

For a smarter and better tomorrow

March 2024

1	© 2024 Software AG. All rights reserved.

Mission & vision

Connecting strategy and stakeholders

Sustainability Mission	Vision
-	-
Sustainability and responsible action	"Our vision is for Software AG
are guiding principles that are central to	to take a leading role in the global search
Software AG. We are certain that moral	for technological solutions to the most pressing
principles and economic success belong	social and environmental challenges, and to support
together. To protect future generations	our customers and partners in their sustainability efforts.
and our planet, we are committed to	Renewing our commitment to creating ecological
creating not only economic, but also	and social value will contribute to Software AG's
ecological and social value.	economic success."
	- Sanjay Brahmawar, CEO Software AG

2	© 2024 Software AG. All rights reserved.

Sustainability Strategy

Our action plan for a truly connected and sustainable world

We empower.

Supporting our employees in unleashing their full potential and promoting digital skills in society.

We enable.

Deploying our technology and solutions to support our customers in doing business more sustainably.

We preserve.

Minimizing our environmental footprint and working towards achieving net-zero emissions.

3	© 2024 Software AG. All rights reserved.

3

Strategy

Creating economic as well as ecological and social value

Our way of delivering

• Continued realization of projects with the EU Commission and the German government
• Assistance to our customers in their digital and sustainable transformations
• Support of people in building expertise in the area of modern technologies through education and research projects
• Provision of our software free of charge for teaching and research purposes

Our commitment: creating not only economic, but also ecological and social value

Our guiding principles in creating economic success: sustainability and responsible action

Our key to increasing business revenue and growth: sustainability - because it is a strong driver of innovation and a fundamental requirement for long- term profitable growth

4	© 2024 Software AG. All rights reserved.

Highlights 2023

Impact on value creation

Economic value

Environmental value

Social value

LEADERSHIP AND

GOVERNANCE

• Maintenance of AAA score in the MSCI ESG Rating; ISS ESG Rating upgraded to C in Apr 2023 (vs C- in 2022); stable low risk score in Sustainalytics ESG Risk Rating
• Information security training rate 93% (vs. 88.5% in 2022)
• Data protection training rate 75% (vs 80% in 2022)

CUSTOMERS AND

TECHNOLOGY

• All-timehigh NPS (net promoter score) of 65 (vs 61 in 2022)
• NRR (net retention rate) of 107 (vs 104 in 2022)

IMPACT ON ENVIRONMENT

• Increased energy consumption per employee and year of 2,240 kWh (2022: 1,969 kWh) as well as per square meter and year of 93 kWh (2022: 93 kWh), decreased overall annual energy consumption of
  7,545,717 kWh (2022:
  7,662,965 kWh)

VALUE FOR SOCIETY

• Give-back-to-the-worldprojects: 18 (vs 15 in 2022)
• Move Your Feet: staff members covered a distance of 7,028 (vs 6,865 in 2022) kilometers and raised a donation of €28.200 (vs €28,500 in 2022)
• University Relations Program (software free of charge for teaching and research purposes) reach: 2,200+ universities in 104 countries and a total of 270,898 academic contacts (2022: 247,682)
• 14 research projects out of 21 (vs
  13 of 21 in 2022) in total contributed to the UN SDGs; R&D investments amounted to 19.4% (vs 18.9% in 2022) of total revenue

OUR EMPLOYEES

• Employee satisfaction weakened in annual employee survey:
• • participation: 81% (vs 86% in 2022)
  • engagement score: 4.05 (vs 4.21 in 2022)
  • DE&I score: 4.48 (vs 4.56 in 2022)
  • work-lifebalance score: 4.02 (vs 4.7 in 2022)
• Glassdoor employer rating decreased to 4.0 (vs 4.2 in 2022)

5	© 2024 Software AG. All rights reserved.

Green innovation

SDG alignment of ongoing R&D projects

Our target for R&D investment: minimum15% of our total revenue

Commitment to SDG alignment: at least 80% of our research projects to be aligned by 2025 with the United Nations Sustainable Development Goals (SDGs)

CliCE-DiPP

Climate-neutral Circular Economy enabled by Digital Product Carbon Pass. Find out more

iECO

Data space for the construction industry based on Gaia-X and a digital twin of a building's life cycle

REVAMP

Remanufacturing of variant-rich battery modules with automated assembly and testing processes. Find out more

HYSouthMarmara

Innovative project aiming to create a regional "hydrogen economy" with green hydrogen production Find out more

KI4ETA

Artificial Intelligence for Energy Technologies and Applications in production. Find out more

SynErgie 3

Synchronized and energy-adaptive manufacturing engineering for flexible alignment to a fluctuating energy supply. Find out more

DESPRIMA

Flexible energy consumption adaptation for beverage bottling industries. desprima.de

KLIPS

Digital platform for localization, prognosis and simulation of heat islands in urban areas. klips-projekt.de

SENATOR

Governance schemes for urban planning policies. senatorproject.eu

Find out more about our research activities in sync with the SDGs.

6	© 2024 Software AG. All rights reserved.

Clean-tech use cases

Our contribution to sustainable IT solutions

Smart connectivity of	Optimizing water	Use of integrated IoT	Particle emissions
IoT sensors to reduce	usage with the help	sensors to measure	reduction via smart
energy consumption	of a fully integrated	and control energy	data collection and
	IoT solution	equipment	predictive

maintenance

Find out more

Find out more

Find out more

Find out more

• By 2025, we aim to know what the long-term impacts of our technology are for at least 50% of new customers as to efficiency improvements and resource savings.
• As an initial step in 2022, the Global Customer Success Management (CSM) community developed a sustainability data gathering roadmap to better understand the long-term impacts of our technology on our customers.

7	© 2024 Software AG. All rights reserved.

DE&I and Human Rights

Diversity, equity and inclusion

• Global Diversity, Equity & Inclusion initiative with appointment of corresponding management position and 24 DE&I ambassadors, development and implementation of global and regional diversity concepts and activities
• Member of The Valuable 500that puts the inclusion of people with disabilities on the agenda of managers.
• Signatory to the "Charter of Diversity" (Charta der Vielfalt) that promotes recognition, appreciation and integration of diversity in business culture
• Founding member of "Alliance for Chance" (Allianz der Chancen) that assists workers across a variety of industries in adapting to the rapid changes in the employment landscape
• Member of the initiative Women into Leadership(IWiL) that supports the sustainable development of female leaders
• Signatory of the UN Global Compactthat promotes alignment with universal principles on human rights, labour, environment and anti-corruption in the business world. (Go to our Human-RightsCommitment)

8	© 2024 Software AG. All rights reserved.

Carbon neutrality

A step-by-step approach

Establishing

our Corporate Carbon #1 Footprint

CO2 emissions (tCO2e)
	2021	2022
Scope 1	3,062	3,048
Scope 2	3,654	3,068
location-based
market-based	2,197	2,114
Scope 3	8,373	15,310
(excl. use of sold
products)

	Submission of our	#3	Defining our
#2		path to net zero
CCF data to CDP
		A reduction path to
					net zero CO2
		CDP 2022+23:
		Awareness score C			emissions plus key
				indicators relevant to
		Emissions data reported for			governance are high
		37 countries (96% of our office			on our priority list
		footprint)			once we have access
					to robust scope-3
		(Report available via the CDP website)			emissions data in
					their entirety.

9	© 2024 Software AG. All rights reserved.

Find out more via our

ESG webpage

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