TAKKT : D Non-financial statement 2023 (part of the sustainability report)

Sustainability Report

OF TAKKT GROUP 2023

Sustainability Report

• ›Introduction

5› Sustainability strategy

10›Governance

12 › Climate & Environment

17 › Products

1. › Supply chain
2. › Social

25 › Non-financialstatement, EU taxonomy, GRI Content Index

36 › Report of the independent auditor

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Sustainability Report › Introduction

INTRODUCTION

The past year was challenging in many respects. The growth rate in developed economies saw a notable decline, and in Germany it was even negative. At the same time, the Hamas attack on Israel added another major global conflict alongside the continuing unabated war in Ukraine. In addition, the ability of governments to invest and shape fiscal policies is becoming increasingly limited. The accompanying uncertainty and difficult conditions were also evident in the business performance of the TAKKT Group.

Given the current environment, TAKKT is focusing on strengthening its resilience. This includes financial aspects such as improving the gross profit margin, cost management and cash flow, as well as continuing the strategic transformation. Therefore, the projects and initiatives in relation to value and growth drivers, as well as sustainability, were deliberately excluded from TAKKT's cost-saving measures. Sustainability is a key element of TAKKT's strategy. The present report explains TAKKT's sustainability strategy and provides insights into the measures and progress made in the areas of product responsibility, supply chain, environmental protection and social aspects in the 2023 fiscal year.

In terms of integrating sustainability into the corporate strategy, TAKKT specifically focuses on the product aspect as an omnichannel retailer for business equipment. TAKKT supports and enables its customers in creating sustainable working environments, such as through the use of the "enkelfähig" rating. TAKKT's approach encompasses ongoing learning and improvement as well as contributing to sustainable transformation in the retail sector.

In the past year, TAKKT made significant strides in its commitment to responsible corporate management. This progress is particularly evident in the areas of products, supply chain, climate and environment, ratings, and communication:

The "enkelfähig" rating product classification system introduced in 2021 to improve transparency and the measurability of product sustainability continues to be very well-received by customers. In 2023, TAKKT increased its sales share of particularly sustainable products to 24 percent. This is a continuation of the

positive development seen with the expansion of the sustainable product range. Contributing to this success was the targeted marketing of "enkelfähig" products in the new web shop of kaiserkraft, TAKKT's largest brand. In the future, TAKKT aims to provide customers with the maximum range of environmentally friendly and sustainable products, and have a positive impact on their purchasing decisions. By successfully marketing and expanding the offering of "enkelfähig" products, TAKKT aims to further increase their share. Not only does TAKKT pursue this aim out conviction and responsibility, but also because it makes economic sense. Based on the current data, TAKKT has observed that "enkelfähig" products achieve above-average growth. Consequently, TAKKT can increase customer loyalty and generate better margins.

In the process of expanding the sustainable product segment, increased communication with suppliers plays a significant role. Collaboration with manufacturers and suppliers is not limited to the selection of sustainable and high-quality products. Instead, TAKKT actively participates in discussions and dialogue at events like supplier days regarding changing customer requirements, innovative product ideas, and the growing need for documentation and certification in the supply chain. As a major provider and buyer, TAKKT is especially well-positioned to advise and support smaller suppliers in meeting the necessary requirements, thereby facilitating the transition to a more sustainable supply chain.

In the area of climate and environment, TAKKT was able to decrease the emissions resulting from its business activities (Scope 1 and Scope 2) even further last year, building upon the significant reduction in 2022. Despite the challenging environment, TAKKT has decided to invest in photovoltaic projects. The aim is to achieve a substantial reduction in Scope 2 emissions and decrease reliance on fossil fuels. Installation of the first system in Germany has been successfully completed and another project is already under construction.

Just as important as improving the sustainability indicators is the internal and external communication. The aim is to increase awareness regarding the importance of the issue among employees, customers and partners. In order to improve its internal sustainability communication, TAKKT has been providing

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Sustainability Report › Introduction

regular updates on the sustainability strategy, goals and progress through newsletters, community calls and internal training programs since 2023. This approach has already yielded tangible results as more employees feel encouraged to actively offer suggestions and participate in implementing sustainability initiatives at

TAKKT.

Given the vital importance of traceability and transparency with regard to sustainability indicators, TAKKT has increased its focus on external ratings in the past year. As a result, the Group was able to improve its CDP (carbon disclosure project) rating. In addition, kaiserkraft once again received the EcoVadis Gold Seal. Notable progress was made in the areas of environmental protection, social responsibility and ethical business practices. The positive rating further highlights the ongoing sustainability efforts of the suppliers.

The strong positioning with regard to sustainability is being increasingly used to attract new employees. In 2023, TAKKT was successfully introduced as an employer brand across the entire Group, with Caring and Impactful established as internal values. In addition, the Group continues to work on improving equal opportunity and diversity, and has set specific targets for the share of women in executive positions. A newly established network promotes exchange and provides support for female executives.

TAKKT's management is very pleased that their endeavors in this area are gaining external recognition. At the end of last year, TAKKT AG was awarded first place at the 16th German Sustainability Awards in the category of "Investment Goods - Distribution," making it one of the pioneers in the area of sustainability initiatives. With a strategy that prioritizes sustainability along with financial goals, continuous efforts to improve sustainability key figures and comprehensive reporting practices, TAKKT was able to prevail against the other nominees and impress the panel of highly regarded experts. The award is the most comprehensive of its kind in Europe.

This success would not have been possible without the outstanding commitment of the employees, suppliers and customers. TAKKT's management wishes to express their gratitude to all involved for their

commitment, passion for sustainability and diligent efforts. Receiving the sustainability award is confirmation that we are on the right track with our transformation to becoming a more sustainable company and see it as an incentive for further improvements.

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Sustainability Report › Introduction

SUSTAINABILITY STRATEGY 

The TAKKT sustainability approach 

Thanks to the resilience of the business model and unwavering dedication of its employees, TAKKT is well- equipped to withstand crises and successfully navigate the current economic challenges. Amid this volatile and uncertain environment, it is all the more important to look beyond immediate operational concerns and focus on the future. Positioning the Group in a future-oriented and sustainable manner is crucial for TAKKT's long-term success. Therefore, the Group has been pursuing a new strategy since the end of 2021 based on the three pillars of Growth, OneTAKKT and Caring. In addition to higher growth and a more integrated structure, sustainability is an integral component of the company's strategy.

Responsible corporate action, a collaborative partnership with customers and employees, and protection of the climate and natural resources are the core elements of TAKKT's sustainability strategy. The Group is guided by the Sustainable Development Goals

(SDGs) of the United Nations and has been a longstanding member of the UN Global Compact Network Germany. As such, TAKKT is committed to promoting sustainable corporate practices with regard to the company, employees and throughout the entire value chain. The goal is to make a positive contribution

to finding solutions to ecological, social and economic challenges on a global scale. This means taking into account the needs of the present generation, while also ensuring that the needs of future generations are met.

Our vision: 

Bringing tomorrow's worlds of work to life 

TAKKT Vision 2025: Bringing new worlds of work to life by caring about environmental resources, people and customer success.

The TAKKT vision serves as the foundation for the sustainability and corporate strategy. TAKKT's aim is to shape the working worlds of tomorrow together with key stakeholders such as customers and suppliers. One thing is certain: In response to the challenges posed by climate change and the finite availability of natural resources, it is imperative that they adhere to stringent sustainability standards. Meeting the needs of customers and anticipating future requirements with sustainable products and services not only reflects TAKKT's commitment to responsible entrepreneurship, but also represents a significant growth opportunity. Sustainability will continue to transform the worlds of work in the future. Therefore, TAKKT wants to embrace new developments and innovations at an early stage and capitalize on the opportunities they present.

Sustainability already plays a significant role in the purchasing decisions of more than half of customers. This is also reflected in customers' willingness to pay more for products that have ecological and social added value.

The outcomes of the 26th UN Climate Change Conference in Glasgow, where 196 countries agreed to implement the Paris Climate Agreement, are a clear indication of the increasing significance of sustainability in business. These changes are already having an impact on the activities of companies in many areas.

In addition to new legal requirements and regulations, the markets in which TAKKT operates are also changing. The design of sustainable procurement and sales markets, innovations and greater capital flows towards sustainable economic activities are changing the general conditions. Legislative initiatives such as the Corporate Sustainability Reporting Directive (CSRD), EU Taxonomy and the German Act on Corporate Due Diligence Obligations in the Supply Chain (Lieferkettensorgfaltspflichtengesetz [LkSG]) are a reflection of the increased societal expectations regarding ecologically and socially acceptable entrepreneurship. TAKKT sees these changes as an opportunity. Actively participating in the transformation to a low-carbon economy ensures that the Group will remain successful in the future.

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Sustainability Report › Introduction

Our mission statement 

TAKKT Sustainability Mission: We want to give our customers the ability to choose sustainable products (by education and enablement) and have them delivered via sustainable logistics from a sustainable business.

As an omnichannel retailer for business equipment, it is TAKKT's responsibility to assist customers in selecting the right products or solutions. TAKKT's aim is to help customers be optimally equipped so that they can meet their day-to-day challenges and achieve success in their markets. This includes providing information about products and solutions, including sustainability aspects such as the carbon footprint or origin of the materials used, to enable customers to consider all factors in their decision- making process. The goal is to make this information very easy to find in order to facilitate sustainable product choices wherever possible. In addition to the ever-growing range of sustainable products and solutions, TAKKT also has a responsibility to make the logistics of delivering these products and services sustainable.

TAKKT's mission statement takes into account the needs of all stakeholders, including employees, customers, shareholders and society as a whole. It is firmly anchored in the materiality assessment and reflects the aim to make TAKKT a sustainable and future-ready company. With the "enkelfähig" approach, TAKKT provides customers with the necessary information to choose products that fulfill their purpose, while also offering ecological and social added value. TAKKT continuously evaluates its product portfolio and sets standards for new products and suppliers in order to provide a comprehensive range of "enkelfähig" products and solutions.

Specifically with regard to Scope 3 emissions caused by logistics, there is an urgent need for action. Together with its partners, TAKKT strives for climate, environmentally and socially compatible transport solutions in order to reduce its carbon footprint in logistics in the future. TAKKT also aims to become more sustainable as a company. This includes reducing its Scope 1 and 2 emissions as

well as promoting social sustainability through various initiatives (see Social section). In light of the increasing legal requirements, internal processes and structures are being adapted early on to ensure the future viability of TAKKT's business activities.

Stakeholders and materiality 

TAKKT's sustainability activities are reviewed on a regular basis in a dialogue with stakeholders. The material aspects are determined on the basis of the non-financial statement, the sustainable development goals (SDGs) of the United Nations and the standards for sustainability reporting of the Global Reporting Initiative (GRI).

The aim is to gain a comprehensive overview of the topics that are relevant from a stakeholder perspective and also crucial for the TAKKT Group's long-term business success. The materiality analysis is therefore a strategic instrument to ensure TAKKT's long-term added value and future viability.

The most comprehensive stakeholder survey on sustainability to date was carried out in 2020/2021. A quantitative online survey asked 1,250 stakeholders from 18 companies across all TAKKT divisions in eleven countries about their social, environmental and economic requirements and expectations. Based on this stakeholder survey, TAKKT once again conducted a qualitative materiality analysis in 2022. It was created using the principle of double materiality with the help of external consultants. The principle of double materiality requires conducting an assessment of how sustainability factors affect the company's performance as well as the impact of the company's activities on non-financial aspects. The process has already been carried out in light of the upcoming Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) developed in this context. The review carried out together with an external team of experts confirmed the areas of focus set by TAKKT. The results were discussed with the Management Board and key issues were identified.

The chart shows an overview of the fields of action identified as material by TAKKT. A description of all material topics can be found in the GRI index starting on page 216.

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Sustainability Report › Introduction

TAKKT is currently conducting a quantitative materiality analysis to prepare for the upcoming reporting period under CSRD. Quantification of the various issues could lead to changes in the material topics as of the next reporting year.

Impact of TAKKT's business activity on the topics

Social Environment Governance

material						Cyber and data security
		Resource efficiency
				(own systems)
		(circular economy)	GHG emissions
		Talent management,
		employee training &
		development
						Compliance
						(supplier CoC)
				Waste reduction
not material		Combating	corruption	Sustainable
			and fraud	technologies
						Sustainable logistics/transport
		Data protection	Combating child labour,
		human trafficking and
		(customers & employees)	forced labour		Working conditions,
		Consumer and	(suppliers)		payment, social security
		Energy efficiency &
		product safety
		Work-life	renewable energies		Gender equality
		Mobility
Diversity	integration/
(new work)
balance
Inclusion	Resource efficiency			Corporate governance code
			Mobility (vehicle fleet)
		Health and safety	Internal
		standards
Biodiversity		control system
(protection of		Community engagement
ecosystem)
		Compliance w.
Water		environmental regulations
				Pollution
		Education	(air, water, soil)
Animal welfare		Risk management			Corporate values & principles
(biodiversity)						(fair competition, corporate
	Combating child labour, human			behavior)
	trafficking and forced labour
	(own business)

Impact on net assets, financial position and results of operations of TAKKT Group

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Sustainability Report › Introduction

Our Sustainability Roadmap 

TAKKT sustainability roadmap focuses on the key fields of action derived from the findings of the materiality analysis. These areas of focus are at the product level, in logistics and the social area. At the product level, TAKKT's aim is to make the product portfolio more transparent by means of the "enkelfähig" rating. The effects of the individual products on the environment and society can be recorded, analyzed and documented through a comprehensive sustainability assessment (SDG 12). In the area of logistics, TAKKT plans to implement more robust measures to reduce emissions over the long term (SDGs 7 & 13). In the social area, TAKKT aims to increase its commitment to the community. In addition to focusing on the product, logistics and social areas, TAKKT has defined the topic of "must-haves" as relevant. This includes the expansion of reporting structures in order to meet legal requirements and regulations. In addition, this also entails internal and external communication to keep employees, customers, partners and other stakeholders up to date on TAKKT's projects, goals and successes. Furthermore, continuous climate accounting, regular EcoVadis assessments and participation in the Carbon Disclosure Project (CDP) are additional "must-haves" for TAKKT.

The CDP is an internationally recognized organization that provides support to companies and governments in disclosing their environmental data, especially with respect to climate change, water resources and forests. The goal of the CDP is to promote transparency and encourage companies to measure, manage and report their environmental impacts. In the latest CDP report, TAKKT received a positive rating for its commitment and disclosure of environmental data. This reflects TAKKT's dedication to addressing environmental issues in a responsible manner and minimizing its ecological footprint. Through the disclosure of data, TAKKT allows various stakeholders such as investors, customers and the public to gain a better understanding of and assess the company's environmental impacts.

Despite the higher criteria and standards that need to be met, TAKKT achieved a score of "C." This underscores the company's progress in terms of environmental management and sustainability. It also confirms TAKKT's commitment to transparency in reporting its environmental impacts and

continuously seeking opportunities for improvement. TAKKT will continue this positive trend and strive for sustainable business practices in order to make a positive contribution to the environment and ensure long-term success.

TAKKT venture capital

For TAKKT, corporate venture capital activities are an innovative form of investment to generate higher returns and seize strategic growth opportunities. Due to the rapid pace of technological change and heightened global competition, it is crucial to embrace new approaches in order to remain innovative and gain strategic advantages. TAKKT is committed to investing in sustainable and circular business models, both now and in the future. By supporting startups that pursue sustainable and circular business models, TAKKT contributes to making the economy of tomorrow more sustainable. TAKKT invests in founders who are building strong and diverse leadership teams and seeking active support with "smart money," which goes beyond mere funding. These investments are made through the TAKKT investment company, a wholly-owned subsidiary of TAKKT AG.

The portfolio currently consists of five companies and an investment in a venture capital fund. At the beginning of 2023, the investment focus was on sustainable or circular business models in the B2B distribution sector or areas related to products or customers.

An example of a company in which TAKKT invested in 2023 is nuwo GmbH. The nuwo office furniture-as-a- service platform is a circular business model in the office equipment sector. The company offers a full- service digital solution that simplifies the process of furnishing, financing and managing inspiring and high-quality workspaces in the office and employees' homes.

Goals 

In 2023, TAKKT and its subsidiaries saw a positive development with regard to the sustainability key figures. There was an increase in sales from sustainable products as well as in the share of women in executive positions. In addition, further measures to reduce emissions were introduced,

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Sustainability Report › Introduction

which have proven to be effective. The purchasing volume from suppliers rated as sustainable also saw a marked increase in the previous year.

Achieving the goals for 2025 across all sustainability key figures is an ambitious endeavor. As in the past, TAKKT will continue to work diligently towards realizing these goals.

TAKKT'S 2025 SUSTAINABILITY GOALS

Impact Areas

Product Impact

Distribution Impact

Social Impact

SDGs

Sustainability KPI

Share of enkelfähig products of order intake (in %)

Scope 1 & 2 emissions (in t CO2e)

Purchasing volume from sustainability-assessed suppliers (in %)

Share of women in management positions (in %)

Goals 2025

40 %

7,471 t CO2e

(20 % reduction in comparison to base year 2021)

Ever assessed: 80 %

Assessment obtained in 2025: 40 %

45 %

Results 2023

23.5 %

8,348 t CO2e

(11 % reduction in comparison to base year 2021)

Ever assessed: 46.4 %

Assessment obtained in 2023: 16.4 %

33.8 %

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Sustainability Report › Governance

GOVERNANCE 

Sustainability organization 

A comprehensive sustainability strategy is absolutely essential for TAKKT. It enables the long-term survival and success of the company by aligning economic, social and ecological aspects. Effective governance ensures that TAKKT acts sustainably in all respects. In addition, it helps in ensuring compliance with laws and regulations, managing risks and enhancing the company's reputation.

Governance in sustainability refers to the process of decision-making, resource management and distribution of responsibilities within the organization in order to achieve long-term environmental, social and economic goals. The Group-wide SCORE (Sustainable Corporate Responsibility) governance system was rolled out throughout the company in 2022 and has been in full effect since then.

TAKKT Management Board 

At TAKKT, sustainability is anchored at the highest level of corporate governance. Accordingly, the TAKKT Management Board is responsible for the entire sustainability performance of the Group. It approves and informs about the vision, mission, strategy, goals and priorities regarding sustainability. Together with the Head of Group Sustainability, the management of the TAKKT divisions and the individual business units, the Management Board reviews the most important sustainability performance indicators on a regular basis. In addition, the Management Board keeps itself informed of the overall progress of the sustainability topics on a quarterly basis in the Executive Meetings.

Group Sustainability 

The area of Group Sustainability at TAKKT is led by the Head of Group Sustainability and is responsible for creating and implementing the sustainability strategy and acts as a central interface between the divisions, business units and external stakeholders. It is also responsible for the development of the sustainability mission, vision, strategy, goals and priorities throughout the entire Group and promotes the implementation of the sustainability roadmap as part of the sustainability strategy.

Furthermore, the area of Group Sustainability supports the individual TAKKT companies in transferring the

Group-wide goals to company-specific projects and concrete implementation plans. The team monitors the implementation, coordinates the exchange of knowledge and is responsible for consolidating the sustainability key figures gathered throughout the Group.

Management 

The management of the TAKKT divisions and business units is responsible for the specific sustainability goals, projects and results of its own divisions and companies. TAKKT informs its companies and approves relevant measures. In addition, management appoints the SCORE officers in the specific areas who are responsible for the operational implementation of the measures and data collection in the respective companies. Management also designates the contact persons who are responsible for implementing department-specific sustainability projects (e.g., sustainable procurement).

SCORE officers 

Together with TAKKT Group Sustainability, the SCORE officers at the individual companies develop company- specific sustainability goals and implementation plans in order to achieve the Group-wide goals. This is coordinated with their respective managers. They also coordinate the implementation of projects in the functional areas, assess their progress and are responsible for the corresponding collection, validation and transfer of data. They work closely with the function-specific contact persons on the individual sustainability topics in their company.

In addition to clear responsibilities and reporting lines, an important component of the governance structure is ensuring that sustainability goals and key figures are effectively tracked and transparently communicated. In 2023, TAKKT began integrating key sustainability indicators across its goal and management systems: Since the beginning of the year, sales with "enkelfähig" products have been recorded and reported monthly. This integration of key sustainability indicators into TAKKT's management system supports progress monitoring and ensures that the set goals are achieved.

Another key aspect of sustainability governance is the identification and management of ESG (environmental, social and governance) risks because ESG factors

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