Straumann : Non-financial report sections according to art. 964 CO

Straumann Group annual report 2023

Appendix

Non-financial report sections according to art. 964b CO

Topic		Disclosure	Page no.
Business model		Description of the business model of Straumann Group	48
Environmental matters,			50-51, 64
and in particular CO2 targets
		Description of the policies adopted in relation to topic	50-51, 64, 92, 106, 117, 122
		Due diligence applied	50-51, 53, 54, 93
		Measures taken to implement	64, 93, 97, 101, 106, 107, 117, 122, 123
		Assessment of the effectiveness of the measures	64, 96, 97, 106
		Description of the main risk related to topic and how Straumann Group deals with these risks	53, 93
		a) risks that arise from Straumann Group's own business operations	53
		b) risks that arise from Straumann Group's business relationships, products or services, if relevant and proportionate	53, 55
		Main performance indicators	97, 98, 106
Social issues			60, 64, 67, 108
	Description of the policies adopted in relation to topic	60, 64, 66, 68, 77, 78, 106, 108, 110, 111, 117, 122
	Due diligence applied	53, 54, 60, 66, 108
	Measures taken to implement	60, 67, 70, 77, 78, 79, 80, 107, 108, 117, 122, 123
	Assessment of the effectiveness of the measures	60, 62, 77
	Description of the main risk related to topic and how Straumann Group deals with these risks	53, 62, 108
		a) risks that arise from Straumann Group's own business operations	53, 62
		b) risks that arise from Straumann Group's business relationships, products or services, if relevant and proportionate	53
		Main performance indicators	77
Employee-related issues			89
		Description of the policies adopted in relation to topic	86, 89, 90, 117, 122
		Due diligence applied	54, 86, 88, 89
	Measures taken to implement	84, 86, 87, 88, 89, 90, 117, 122, 123
		Assessment of the effectiveness of the measures	87, 90
	Description of the main risk related to topic and how Straumann Group deals with these risks	84, 90
		a) risks that arise from Straumann Group's own business operations	90
		b) risks that arise from Straumann Group's business relationships, products or services, if relevant and proportionate	118
		Main performance indicators	87, 90

Straumann Group annual report 2023

Appendix

Topic	Disclosure	Page no.
Respect for human rights		86, 90
	Description of the policies adopted in relation to topic	90, 106, 117, 118, 122
	Due diligence applied	118
	Measures taken to implement	107, 117, 118, 122, 123
	Assessment of the effectiveness of the measures	118
	Description of the main risk related to topic and how Straumann Group deals with these risks	118
	a) risks that arise from Straumann Group's own business operations	118
	b) risks that arise from Straumann Group's business relationships, products or services, if relevant and proportionate	118
	Main performance indicators	118
	If no policy is followed with respect to one or more of the topics it shall explain this clearly, stating the reasons.
Combating corruption		57, 119
	Description of the policies adopted in relation to topic	57, 106, 117, 119, 121, 122
	Due diligence applied	54, 122
	Measures taken to implement	57, 107, 117, 119, 121, 122, 123
	Assessment of the effectiveness of the measures	121
	Description of the main risk related to topic and how Straumann Group deals with these risks	119
	a) risks that arise from Straumann Group's own business operations	119
	b) risks that arise from Straumann Group's business relationships, products or services, if relevant and proportionate	119
	Main performance indicators	121

Sections regarding the Report on Minerals and Metals from Conflict-Affected Areas and Child Labour pursuant to art. 964j et seq.

	Due diligence applied	118
	Due diligence applied	118

Straumann Group annual report 2023

44 Sustainability report

SUSTAINABILITY REPORT

Straumann Group annual report 2023

45 Sustainability report

Letter from the Chair of the Sustainability, Technology and Innovation Committee

and the Chair of the Audit and Risk Committee

Dear Reader,

As we reflect on the past year's journey, we are proud to report on the progress we have made in embedding sustainable practices into the very fabric of our business.

Sustainability remains a priority for the Board of Directors

Rooted in our heritage of creating long-term value, we are committed to making a lasting positive difference for all our stakeholders. Our success is built on a sustainable business model, and we are committed to contributing our part - for today's and future generations. We focus on sustainability to improve the quality of life and advance oral care. Sustainability is integral to our business and a strategic priority as we strive to be a role model in our industry. This includes using resources wisely, applying responsible business practices, and keeping a strong focus on retaining and attracting the best talent. We work closely with all our partners across our value chain to make a positive difference socially and environmentally.

Our commitment to high standards of governance and ethical conduct continues to be a top priority, ensuring accountability and transparency in all our operations. In 2023, the ESG Task Force's responsibilities were seam- lessly integrated into the corresponding Board of Directors Committees, leveraging their specialized expertise.

This move represents a final step in embedding sustainability thoroughly into our core business processes from a governance perspective. For a detailed overview, please refer to the section on sustainability governance on p. 50.

We increased the number of educational activities by 15%

Achievements

This year, we have taken significant strides in advancing

oral health care and helped 5.6 million smiles while pro-
gressing on our social and environmental goals. The adop-
tion of renewable energy sources and our 93% share of
renewable electricity led to a decrease of greenhouse gas
emissions (scope 1 and 2) from our own operations. With
this, we took the first steps towards reaching our net-zero
goal. In addition, our efforts in recycling led to an increase
of our waste recycling rate to 68%. A score of 77 was
achieved in our employee survey in response to the ques-	Petra Rumpf
tion whether people have good opportunities to learn and	Vice Chair
grow. This one point increase compared to 2022 brings us	Chair of the Sustainability, Technology
closer to our target score of 80.	and Innovation Committee

Straumann Group annual report 2023

46 Sustainability report

Emphasis on non-financial reporting is rising

Having always placed a high value on non-financial aspects, we recognize their growing importance due to evolving regulations. This year we initiated the first step to align with new non-financial reporting requirements, such as the European Corporate Sustainability Reporting Directive (CSRD). Consequently, we transitioned from a singular to a double materiality assessment. This approach allows us to understand both the impacts of our business activities on society and the environment (an inside-out perspective) and the potential risks and opportunities presented by external societal and environmental factors (an outside-in perspective). Additionally, we have developed a detailed value chain map, identifying key stakeholders both upstream and downstream. In 2023, we also started aligning our reporting with the Task Force on Climate-related Financial Disclosures (TCFD) rec- ommendations. Additionally, we are adhering to the Swiss Code of Obligations for non-financial reporting as per arti-

Regula Wallimann

Chair of the Audit and Risk Committee

cle 964b in this sustainability report. For the first time, this part of the non-financial reporting will be subject to approval at the Annual General Shareholder Meeting in April 2024. Beyond these new developments, we continue our commitment to reporting under the GRI reporting framework, as we have done for more than a decade, along with the SASB standards. For your convenience, we have included a table in the appendix that guides you to the relevant information for each standard or regulation and have also marked the areas subject to approval at the AGM.

SBTi validated our targets to achieve net-zero emissions by 2040

Progress in caring for the planet

2023 was a milestone year marked by an important high- light: the Science Based Targets initiative (SBTi), which we joined in 2022, approved both our 2040 net-zero goal and our 2030 near-term emissions reduction targets. We also successfully mapped our value chain partners, developed an engagement plan, and commenced an in-depth collaboration to assess, monitor, report, and minimize our scope 3 emissions, aiming for a meaningful environmental impact. For the first time, we conducted a climate-risk assessment in line with TCFD recommendations, a practice that will become mandatory under the Swiss Code of Obligations and the accompanying Climate Ordinance in 2024. Looking ahead to next year, we plan to conduct financial modeling for the various risks we have identified.

Outlook

We thank our Executive Management team and all our teams across the world for the progress made in 2023 and

for applying the same passion and innovative spirit to our sustainability journey that we apply to our products and services. As we look into the future, we are pleased about the progress we have made, but mindful of the challenges ahead. From achieving a more balanced leadership team to transitioning to 100% renewable electricity by the end of 2024 we are setting the bar high. To strengthen our philanthropic activities, the Group is planning to set up a foundation during 2024.

Representing the Board of Directors and the Executive Management team, we are excited about the opportunities that lie in integrating sustainability deeply into every aspect of our business. We believe these efforts not only benefit the environment and society but also create long- term value for you, our stakeholders. We look forward to sharing more successes in the coming years and thank you for being a part of our journey towards a more sustainable future. Please refer to our annual report's sustainability chapter for more detailed information about our sustainability initiatives and progress.

We herewith also sign on behalf of the Board, and submit for approval by the shareholders, the non-financial report established in accordance with Art. 964b Swiss Code of Obligations (CO 964b), as presented in the following sustainability report in accordance with the references in the respective CO 964b Index.

Sincerely,

Petra Rumpf	Regula Wallimann
Vice Chair	Chair of the Audit and Risk
Chair of the Sustainability,	Committee
Technology and
Innovation Committee

Straumann Group annual report 2023

47 Sustainability report

SUSTAINABILITYFRAMEWORK

Our aim is to help 10 million smiles per year by 2030

> Today at 5.6 million smiles

We want to provide 35% of all our educational activities in low- and middle-income countries

> Today at 28%

We want 50% of leadership positions to be held by women by 2026

> Today at 40%

ADVANCING	EMPOWERING
ORAL CARE	PEOPLE

A score of 80 by 2026 in our employee survey in response to 'I have good opportunities to learn and grow'

> Today score at 77

We are shaping a company with a zero tolerance policy

> Maintained in 2023

OUR PURPOSE

To unlock the potential

ACTING WITHof people's lives

RESPONSIBILITY

CARING FOR

THE PLANET

AND SOCIETY

We will use 100% renewable electricity by 2024

> Today at 93%

We aim to achieve net-zero emissions by 2040

• Target validated by SBTi in 2023

Straumann Group annual report 2023

48 Sustainability report

Introduction

Creating trust and value through a sustainable business model

This report shows the progress and performance achieved in 2023 across the four sustainability commit- ments: advancing oral care, empowering people, caring for the planet and society, and acting with responsibility. It is structured according to the material topics for Straumann Group.

The sustainability framework that was developed in 2021 captures and addresses the Group's social and environmental impacts and is integrated in the Straumann Group strategic compass (see strategy on p. 16). Guided by its purpose

to unlock the potential of people's lives and its vision of a world where oral health is a source of confidence, the Group aims to pursue a holistic approach to generate lasting value, especially for the millions of patients who are treated with its solutions each year. The value creation also extends to customers, employees, shareholders and the communities in which the company operates. The mission and strategy clearly define the path to achieve our ambition to become the most customer centric and innovative oral care company in the world. The sustainability frame- work, the digital transformation strategy and the culture define how to achieve the goals defined in this mission and the strategic compass. The company innovates, produces and markets digitally enabled end-to-end solutions for tooth replacement as well as orthodontic and regenerative treatments, see business model on the right.

To create value, the company relies on various financial and non-financial input capitals such as human and natural resources, manufacturing capital and immaterial

WHY

Sustainability

v

no ati

on

Culture

Vision

In

Digital

Our Business

trans-

Purpose

M

formation

a

Tooth replacement,

e

r

k

orthodontics

g

t

i

n

HOW

l

and regenerative

n

a

,

S

o

,

solutions

c

i

t

s

e

u

E

d

d

u

o

r

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a

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o

WHAT

n

Mission

Strategy

Customer centricity drives our value creation

resources such as relationships. The strategy sets out to use and develop these resources responsibly in order to achieve outputs and outcomes that generate sustainable value for all stakeholders.

Interconnectivity and dependencies between business activities, strategy and the various inputs are taken into consideration as illustrated in the stakeholder and value creation map on the next page. Positioning the business in the middle of this model, the company closely connects all its actions with its stakeholders' needs, which reflects the strategic compass and focus on customer centricity.

Sustainability is a fundamental aspect of Straumann Group's reputation, reflecting its approach to business and operations. The Group's ability to operate hinges on maintaining trust. Consequently, the company is vigilant against the potential risks of reputational damage, recognizing its importance in its ongoing commitment to sustainable practices. Consumers increasingly hold companies accountable not only for their products and services but also for the role they play as good corporate citizens and employ- ers. Straumann Group aims to continually earn the trust of its partners, customers and their patients by shaping a company with high standards of integrity and fostering a culture of transparent communication with all stakehold- ers. The Group is committed to implementing controls, processes and strategies to identify, assess and manage the impacts, risks and opportunities associated with its business activities.

Straumann Group annual report 2023

49 Sustainability report

Stakeholder and value creation map

UPSTREAMOPERATIONS

INPUT

Investors

OUR

BUSINESS

STRAUMANN

GROUP

OUTPUTOUTCOME

DOWNSTREAM

Dental

Financial capital

•  Equity of CHF 1 839m

•  Cash and cash equivalents of CHF 410m •  Capital expenditures of CHF 189m

Suppliers	Human capital
•  > 11 000 talented, motivated employees
	in > 100 countries at year end, diversity

Advancing oral care

•  Restored dental function and esthetics; enhanced quality of life

•  Educated clinicians

•  Enhancing treatment solutions •  Patents

Page 59

•  5.6m patients treated

•  11 200 educational activities in 2023 •  Over 20 solutions launched

•  111 patents granted in 2023

professionals

Patients

of skills, backgrounds, experience

•  Investment in staff learning of CHF 5m

Employees	Intellectual capital
•  10 brands
	•  1 452 active patents
	•  Intangible investments CHF 35.7m

Empowering people

•  Balanced men/women ratio within leadership positions

•  Engaged employees

•  Learning opportunities for employees •  Leadership development

•  40% women in leadership positions •  Employee engagement score of 81 •  Learning and growth score of 77

•  > 350 leaders participated during leadership academy

and consumers

•  Investment in R&D of CHF 111.1m

•  Distribution rights for third parties

Page 83

Regulating

bodies

Regulating	Natural capital
bodies	•  Raw materials 987 tons
	•  Energy 98 545 MWh
	•  Operating materials 629 tons

Caring for the planet and society

•  Renewable resources

•  Mindful energy consumption •  Support communities

•  Reducing CO2 emissions

•  93% renewable electricity

•  Energy consumption increased by 8% per employee

•  More than 60 philanthropic projects supported •  CO2 emissions (scope 1+2) t CO2e compared to

Educational

institutions and

Infrastructure capital

•  Buildings and infrastructure •  Production sites

Page 91

2021 base year reduced by 15% •  Waste landfill rate 7%

•  Waste recycling rate 68%

Public

and society

organizations

Public

and society

•  Distribution and selling sites •  Energy

•  Vehicle fleet

Social & relationship capital

•  Customer base of dentists and laboratories in > 100 countries

•  Supplier network •  Communities

Acting with responsibility

•  Sales of solutions for prevention, tissue regeneration, tooth alignment, restoration, replacement and digital solutions

•  Compliance trainings

•  Cybersecurity and data protection trainings

Page 115

•  CHF 2 412m revenue

•  CHF 606.4m core operating profit

•  Sales compliance e-trainings rolled out in 21 countries with 93% completion rate

•  No recorded or detected data or cybersecurity control breach

Employees

Straumann Group annual report 2023

50 Sustainability report

Sustainability corporate governance structure 2023

Sustainability governance

CFO

operational lead

Head of

Sustainability

coordination,

reporting to CFO

Board of Directors

Sustainability, Technology and Innovation Committee

Executive Management Board

Advancing		Caring for the planet		Acting with		Empowering
oral care		and society		responsibility		people
		Sustainability Steering Committee and leading departments
Head of Implantology		Chief Operating		Chief Legal		Chief People
Head of Orthodontics		Officer		Officer		Officer
Head Strategic planning	Head of Corporate		Chief Operating		Chief Operating
Communication		Officer		Officer
and transformation
Head of R&D and		Head of		Chief Information
	Procurement		Officer
Innovation
Head of Medical
Education
			Board Reporting
Sustainability Technology and Innovation		Audit and Risk		Human Resources and
	Committee		Committee		Compensation Committee

Investor Relations/

Corporate

Communication

communication,

reporting

Accountability for sustainability must be led from the top. In March 2021, the ESG (environmental, social and gov- ernance) Task Force was established to bring sustainability to the forefront of the Group's organization. This Task Force, led by Straumann Group's Board of Directors, developed a sustainability framework, roadmaps and set targets. After completion of these tasks, the Task Force transitioned into three committees. Today, the main responsibility on the operational side lies with the Executive Management Board. They define the roadmap for the Group to ensure the company follows its sustainability framework and achieves or adjusts its targets as needed. The Sustainability, Technology and Innovation Committee (STIC) is responsible for climate-related matters and assists the Board of Directors and monitors the respective progress.

The Audit and Risk Committee is responsible for overall non- financial reporting and the sustainability commitment 'act- ing with responsibility', the Human Resource Compensation Committee is in charge of 'empowering people' and the Sus- tainability, Technology and Innovation Committee oversees 'advancing oral care' and 'caring for the planet and society'. The overall sustainability strategy and climate-related matters are covered by the STIC committee which is chaired by the Board member and Vice Chair, Petra Rumpf.

The Executive Management Board has the overall responsibility for environmental, social and governance matters, assessing periodically the associated risks and opportunities together with the subject matter experts and Head of Sus-

This chart shows the allocation of sustainability responsibilities at Board and Management levels. Our Group Code of Conduct assigns personal responsibility for environmental protection and proper social conduct to all line managers and employees.

tainability who reports to the Group CFO. The Board of Directors is responsible for approving the annual report including the sustainability approach. The Corporate Communications team prepares the annual and sustainability report. Following TCFD guidelines, climate-related risks and opportunities encompass efforts for climate mitigation and adaptation, involving resource efficiencies, adop-

Straumann Group annual report 2023

51 Sustainability report

GRI disclosures: 2-3;2-5

tion of low-emission energy, product/service innovation, market access, and supply chain resilience. Local positions, typically the production heads in collaboration with the COO, manage environmental issues at manufacturing sites, while global headquarters oversight falls under the COO. Climate-related aspects in sales distribution are overseen by local CFOs, and at the top level, the Group CFO is responsible for environmental reporting. For details on remuneration, please refer to the compensation report (see p. 158).

Reporting disclosure

Straumann Group has reported in accordance with the GRI Standards for the period 1 January to 31 December 2023. This report was submitted to the GRI Content Index

- Essentials Service in February 2024. GRI is an indepen-

dent and globally operating non-profit foundation pro­ viding sustainability reporting standards for addressing impacts on the economy, environment and people. The Group has applied the GRI Standards in its annual report since 2004.

Furthermore, since 2021, the report includes the disclosure of the Sustainability Accountant Standards Board (SASB) metrics (see p. 241). In 2023, the Group started its path to report according to the Taskforce for Climate-related Financial Disclosures (TCFD) to further align with wider global frameworks on sustainability and to make sure the organization will be prepared for future regulations (see index on p. 250).

Additionally, the Swiss Code of Obligations for non-financial reporting as per article CO 964b is followed in this sustainability report. CO 964b relevant content is marked

with this icon , set in italics and indexed in the appendix (see p. 248). For the first time, this part of the non- financial reporting will be subject to approval at the Annual General Shareholder Meeting in April 2024.

The Group has engaged its auditors to perform a limited assurance on selected non-financial key performance indicators. The indicators that are in scope cover environ- mental, social and governance aspects and are shown at the bottom of this page.

Significant sustainability aspects material to the Group are reviewed regularly and at least once annually, with input from internal and external stakeholders. The sustainability report is structured according to the material topics and categorized in line with the Group´s strategic sustainability commitments.

A limited assurance has been performed on the following key performance indicators

6 906t CO2e

93%

77

40%

Greenhouse gas emissions

Renewable electricity

Learning and growth score

Women in leadership positions

Scope 1

more on p. 96

more on p. 87

more on p. 85

more on p. 96

2 272t CO2e

5.6m

28%

93%

Greenhouse gas emissions

Smiles helped

Educational activities in low-

Sales compliance e-training

Scope 2

more on p. 60

and middle-income countries

Mean completion rate

more on p. 96

more on p. 77

more on p. 121