Emmi : Sustainability Report 7 (2021/2022) - incl. GRI Content Index

Sustainability Report 2021/2022

The best

dairy moments

Contents

Foreword

Dear Reader,

Emmi is a passionate manufacturer of high-quality dairy products and has a tradition of more than 100-years. Our purpose - to create the best dairy moments, today and for generations to come - guides our actions in everything we do and shapes the way we responsibly develop our business, our brands and our portfolio in the long term.

Consistent strategy implementation and differentiated market positions with innovative brand concepts as well as a diversified country and product portfolio are the basis of our business strategy. Emmi is backed by more than 9,000 employees who put their hearts and souls into delivering the best dairy moments day in, day out.

Ricarda Demarmels

CEO (left)

Urs Riedener

Chairman of the Board (right)

A long-standing commitment to sustainability

Weather extremes and natural disasters continued to highlight the risks from climate change in the past year. We are convinced that we need to act sustainably with regard to economic, social and ecological concerns. This conviction - which also stems from Emmi's purpose - has made our long-standing commitment to sustainability an integral part of our strategy.

Our success depends on both sustainable and profitable growth and a healthy planet. As a key player in the dairy industry, we at Emmi want to continue positively influencing our industry and promoting sustainable practices beyond our sphere of influence within the company. In this regard, we are relying on science-based targets (SBTi) and a netZERO 2050 vision to limit global warming in line with the Paris Agreement.

Our ambitious sustainability targets are based on the Emmi sustainability model, which encompasses three pillars: people, communities and planet.

Progress and challenges

We are now recording the development of our people in all Emmi markets and seeing pleasing progress. In Switzerland, three out of four employees (+17% compared to the previous year) already have a development plan. Internationally, almost half have one. Group-wide, in the year

under review we were able to fill almost one in three positions internally. We are also making progress in the area of communities and our focus topic of sustainable dairy. All Emmi companies now have qualitative targets for more sustainable milk production. To monitor this trend in quantitative terms too, we are relying on a science-based catalogue of criteria, which one in four of our companies applies. While the number of our milk suppliers that meet the "swissmilk green" industry standard increased slightly in Switzerland, the volume of milk processed according to this standard remained the same as in the previous year, at 94%.

Together with industry organisations and partners in the value chain, we are working to further develop this standard - particularly with climate protection, biodiversity and animal welfare in mind. The "KlimaStaR Milk" industry initiative - initiated together with partners from the worlds of business and science - got off to a successful start. The aim of this initiative is to make the Swiss dairy industry more competitive in terms of climate action and food-feed competition.

Internationally, we have further strengthened our commitment in this regard too by joining the "Pathways to Dairy Net Zero" initiative.

In terms of the planet, we have managed to make further progress in a variety of fields. For instance, we have decarbonised our energy supply by cutting the company's greenhouse gas emissions by 10% compared to the previous year. Using 2014 (the base year) as a comparison point, we have even managed to reduce our emissions by a quarter. We are also moving in the right direction on these environmental issues with our waste reduction (-4%) and food waste (-5%) efforts when compared to the previous year. However, our water intensity rate has declined and we are behind the previous year (4.7%). Further efforts are also needed in the recyclability of our packaging in order to make it fully recyclable by 2027. In Switzerland, our packaging is around 45% recyclable at present.

Looking ahead to the future

In view of the ongoing uncertainties in terms of energy supply, we are stepping up our focus on energy, decarbonisation and greenhouse gas reduction in 2023. Our priority is to diversify our energy supply with renewable energies.

Focusing on our net-zero reduction path, we aim to further reduce our dependence on fossil fuels and make the process of manufacturing our dairy products more sustainable. As a major player in the dairy industry, and in view of the extent and importance of the challenges we collectively face, we will continue building on our commitment together with our dairy farmers, suppliers and partners. At Emmi, we see bringing more sustainability to our value chain as a mandate to create long-term added value and take responsibility with future generations in mind.

This seventh edition of our sustainability report - prepared in accordance with the GRI standards

• summarises the approaches we have taken and the progress we have made over the past two years.

Emmi at a glance

We are the leading manufacturer of high-quality dairy products in Switzerland. We have a well-diversified country and product portfolio, innovative brand concepts and a presence in 14 countries. We distribute our quality products in around 60 countries and manufacture these at around 50 of our own production sites in eleven countries.

Consistently implementing the strategy has allowed us to evolve from a local farming organisation to a successful international group of companies over our 100-year history. Our current annual turnover is around 4.2 billion Swiss francs. This is made possible by over 9,000 employees, with around 70% of them working outside of Switzerland and all of them putting their heart and soul into delivering the best dairy moments day in, day out.

Emmi Group employees on a full-time basis (as at the end of 2022)

• Annual Report 2022