Pfeiffer Vacuum Technology : Sustainability Report 2023

Sustainability Report

2023

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SUSTAINABILITY REPORT 2023

Table of Contents

003 1. ReportType

003 Scope of the Report

004 2. Sustainability at Pfeiffer Vacuum

004 2.1 Sustainability Strategy

009 2.2 Responsible Corporate Governance

013 3. Our Value Creation

015 3.1 Research & Development

016 3.2 Procurement/

Supply Chain Management

019 3.3 Production

021 3.4 Logistics

022 3.5 Services

Contents 023 3.6 Recycling

024 3.7 Environmental Impacts

030 4. People, Culture and Values

037 Our Role in Society

038 5. Sustainability Indicators

038 EU Taxonomy

046 UN Global Compact

046 UN Sustainable Development Goals

048 Independent Practitioner's Report

on a Limited Assurance Engagement on

Non-financial Reporting

050 Pfeiffer Vacuum Climate Risk Management

according to TCFD and EU Taxonomy 2023

050 1. Governance

051 2. Strategy

053 3. Risk Management

054 4. Metrics and Targets

055 GRI Content Index

070 Contacts and Imprint

SUSTAINABILITY REPORT 2023

1. Report Type

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Sustainability

Report 2023

1. REPORT TYPE

For the 2023 fiscal year, Pfeiffer Vacuum Technology AG ("Pfeiffer Vacuum") prepared this non-financial Group Statement in accordance with the "Law to Strengthen the Non-Financial Reporting of Companies in their Management Reports and Group Management Reports" ("CSR- RUG"). This report meets the requirements of §§ 315b and 315c in conjunction with §§ 289c to 289e of the German Commercial Code ("HGB") as well as of the regulation (EU) 2020/852 of the European Parliament and of the council of 18th June 2020 on the establishment of a framework to facilitate sustainable investment and amending Regulation (EU) 2019/2088 ("EU Taxonomy Regulation"). This report details how material "non-financial" or sustainability issues are managed for the entire Group. In this context, we use the term "sustainability report" to express that sustainability impacts are not non-financial and to already consider the conceptual correction at the legal level of the Corporate Sustainability Reporting Directive (CSRD) that is foreseeable. Information that does not relate to the entire Group is indicated accordingly.

This statement was audited by PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft, Frankfurt am Main, on behalf of the Supervisory Board. A limited assurance engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) was performed. The audit report is produced following the ­Independent Auditor's Report of the Consolidated Financial Statements and of the Group Management Report. References to statements or any other disclosure outside the Group Management Report are additional information and are not part of the non-financial Group Statement.

For a structured description of the contents pursuant to

• 315c in conjunction with §§ 289c to 289e of the German Commercial Code (HGB) in the non-financial consolidated statement, Pfeiffer Vacuum follows the standards of the Global Reporting Initiative (GRI). The description of the con- cepts required by the HGB is based on the structure of the GRI management approaches. This is applied in the descrip- tion of the materiality analysis as well as in the manage- ment approaches to "environmental matters", "employee matters", "respect for human rights", "combating corruption and bribery" and "other matters" (GRI 3: Material Topics 2021). In addition, a GRI Content Index compares the GRI indicators with corresponding reporting. The GRI Content Index is published with reference to the GRI Standards (see from p. 55 ff.). The information on the fulfillment of GRI indicators as well as references to information outside the Group Management Report or Consolidated Financial Statements are additional information and not part of this non-financial Group Statement. Therefore, they are not part of the audit according to ISAE 3000 (revised) and are marked with a footnote in the following.

For a description of Pfeiffer Vacuum's business model, please refer to the section entitled "Corporate Profile" (see from p. 15 in the Annual Report 2023 which is only available in German).

Companies that are obliged to publish a non-financial report are required to provide information on "environmentally sustainable" sales revenues, investments (CapEx) and operating expenses (OpEx) in accordance with the EU Taxonomy Regulation. Pfeiffer Vacuum complies with this obligation and reports on the taxonomy eligibility as well as the conformity of the Group's economic activities (see from p. 76 in the Annual Report 2023 which is only available in German).

Scope of the Report

The present statement provides information on the main developments in the 2023 fiscal year with respect to the five legally required aspects of environmental matters, respect for human rights, employee matters, social matters and the fight against corruption and bribery. This report covers a number of management concepts and key figures for all sites of our Group. Significant developments from the previous year are indicated and described in more detail in the relevant text passages.

SUSTAINABILITY REPORT 2023

2. Sustainability at Pfeiffer Vacuum

2. SUSTAINABILITY AT PFEIFFER VACUUM

2.1 Sustainability Strategy

Stakeholder Dialog

Your Success. Our Passion. Our guiding principle applies throughout our entire Company:The more passionately we work, the greater the success of our customers and thus the greater our own success. Our passion, the ­motivation of each and every one of us - the Super­ visory Board, Management Board, and every employee, worldwide - is the enduring, common driving force for creating highly efficient products and services.

Our strategy pursues objectives that we meet by apply­ ing efficient management processes and implementing suitable measures: the overarching goal of sustainable management, achieving competitive advantages through products with an environmentally-friendly and social effect, and a correspondingly high level of motivation and drive to fuel our continued innovation for international growth markets.

Within the framework of our relationship management, our stakeholders' expectations of us and our expectations of them are fundamental when it comes to determining reciprocal impacts on society and the environment. The impacts relevant to our sustainability strategy are identified, first and foremost, in collaboration with our stakeholders, with whom we maintain a regular and transparent dialog. Our relevant stakeholders comprise groups and institutions to whom we have a direct or indirect connection through our

PFEIFFER VACUUM SUSTAINABILITY REPORT 2023 004

In this respect, our commitment to being a leader in our market - also in terms of our sustainable business practices

• is particularly important to us, because it is our special contribution that goes beyond economic success: the ecological/social optimization of our operations and prod- ucts. Sustainable added value is becoming increasingly important in international competition, and with our entire value creation we contribute to the necessary ecological/ social transformation of the economy and of society - by producing our products for the wide range of applications of our many different customers in an environmentally- friendly and socially beneficial manner.

This sustainability report describes our key developments, continuing where our previous sustainability report left off. Our entire sustainability management system is based on the relevant international provisions regarding the sustainable transformation of economic activity, set out by the United Nations, and on the relevant national laws of the countries in which we operate (see chapter "2.2 Respon­ sible Corporate Governance"). Moreover, our system follows the international reporting guidelines of the Global Reporting Initiative (GRI: Foundation 2021). We updated our sustainability strategy in 2023 to take into account the effects that our economic activities have on the environment and society as well as the evolving effects that the environment and society have on us.

In accordance with our sustainability strategy, we organize our management processes and measures, which we put into practice and expand throughout our value chain on a continuous basis. We have structured our sustainability report along the value chain. This allows us to show the measures taken in the individual value creation steps and to integrate the sustainability strategy into our corporate strategy.

business activities and who are therefore just as interested in our sustainable actions as we are. These primarily include our customers, shareholders/investors, employees, authorities, suppliers, public opinion, municipalities, local authorities/politics and banks.

We maintain a dialog with our stakeholders, based on partnership and trust, in order to determine their expectations regarding our business activities as well as sustainability performance and, in turn, to keep them informed about current developments in our business activities, sustainability performance and goals. Our stakeholders' expectations together with environmental developments influence how we align and continuously improve our sustainability management to make our value creation more sustainable. Our forms of dialog also focus on identifying our stakeholders'­ expectations during the course of our day-to-day business relationships, e.g. with our suppliers (see chapter "3.2 Procurement/Supply Chain Manage- ment"), employees (see chapter "4. People, Culture and Values"), and within the framework of joint sustainability and product development with our customers (see chapter "3.3 Production"), e.g. in our Silicon Valley Innovation Center in San José, and at various trade shows, etc.

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2. Sustainability at Pfeiffer Vacuum

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We are also constantly exchanging information with our shareholders, investors, analysts and journalists, in company presentations during roadshows, via analyst calls, or by means of news on our website. They are particularly interested in our ratings from international rating agencies: In 2023, we received independent ratings regarding our sustainable business practices from Sustainalytics, Standard & Poor's and EcoVadis. Our Sustainalytics rating from Decem- ber 2023 ranked us 62 out of 591 in the industrial machinery sector. In March 2022, we managed to improve our rating with Standard & Poor's by 107 %, and increase our number of points from 16 to 31 (the average for the industry peer group was 18 points). In June 2023, we were awarded a Gold Medal in the reputable sustainability rating of Eco- Vadis. Therewith, we are ranked within the top 2 % of all manufacturing companies rated by EcoVadis worldwide.

Our Most Important Sustainability Topics

Overall, in developing our sustainability strategy, we have drawn on all the knowledge available within the Company on the impacts that affect us, in line with the expectations of our stakeholders and with developments in nature and society relating to sustainable business. In order to analyze relevant current and potential impacts on the economy, environment, and society (including human rights) relating to our economic activities and business relationships, we continuously use information from various sources: our Risk Management System, our Management System and complaints mechanisms from Compliance, our continuous sustainability data measurements, regulatory reviews, financial and internal audits, health and safety at work inspec- tions, shareholder registrations, business relationships, our collaborations with universities, our workforce, all stakeholder dialogs and, last but not least, media developments, particularly in the field of sustainable business. Our CEO and the heads of all our business units bring this knowledge to our CSR Board (see section "2.2 Responsible Corporate Governance"), which leads our sustainability management and held a series of meetings to further develop the CSR strategy in the previous years.

In our series of workshops, we used our materiality analysis from previous years as a basis for compiling the stake- holders' expectations as well as negative and positive impacts (impacts on our company and our impact on the environment/society). We then examined them with regard to their relevance for our entire Company and the value creation steps, documented and combined them into key topics. We ensure that the impacts are complete and kept up to date by applying the current international GRI reporting framework with its relevant indicators, and by referring to reports from governments, environmental agencies, international organizations, NGOs, trade unions, media and relevant technical experts.

In the workshop series, we determined how significant various impacts are for establishing our most important sustainability topics. Here, we applied the proven logical method of reconciling the conflict between their relevance for our stakeholders as well as the environment and their relevance for us. We discussed the sustainability topics in depth and also evaluated the relevant impacts within our individual value creation steps in order to create further bases for evaluation and definition, and to anchor the impacts in more detail throughout the Company at an early stage. From now on, we strategically align our sustainability management with the following agreed and prioritized key sustainability topics:

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2. Sustainability at Pfeiffer Vacuum

Materiality of

Sustainability

Topics

Environment	1.	Corporate Governance
Governance		and Compliance
Employees	2.	Supply Chain
Social
	and Human Rights
	3.	Digitalization
		and Cybersecurity
	4.	Quality Assurance
		and Product Safety
006	5.	Reduction of CO2
	(Scope 1- 3)
	6.	We Feeling and Life Purpose
2023	7.	Labor Law Compliance
8.	Occupational Health
REPORT
	and Safety
SUSTAINABILITY	9.	Equality and Diversity
10.	Personnel Development
		and Working Conditions
	11.	Reduction of Waste
VACUUM	12.	Reduction of Water
	Consumption
PFEIFFER	13.	Social Responsibility

Relevance for

Stakeholders/Nature

high

3. 1.

4. 2.

5.

6.

7.

8.

9.

10.

12. 11.

13.

low

Relevance for

Pfeiffer Vacuum

low

high

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1. Corporate Governance and Compliance

In all of the countries in which we operate, Pfeiffer Vacuum observes and respects the local laws and legal provisions as the legal basis for our economic activities. Moreover, for Pfeiffer Vacuum, responsible corporate governance also means a commitment to our Code of Conduct and to internationally recognized standards, such as the principles of the UN Global Compact. These serve as binding directives for all employees in their daily work and we also expect our suppliers as well as business partners to respect them. If violations occur, they can be reported via the whistle- blowing mechanism (see chapter "2.2 Responsible Corporate Governance").

2. Supply Chain and Human Rights

Pfeiffer Vacuum is committed to upholding basic human rights along the entire supply chain. As a company with subsidiaries and production facilities in various parts of the world, we consider respect for human rights to be one of the fundamental preconditions for our economic activities. This is in line with our corporate goal of contributing to a sustainable society. For this reason, we reject all forms of child labor, forced and compulsory labor, modern slavery and human trafficking. Furthermore, we ensure that we work only with companies that comply with environmental legislation and uphold social standards, including appropriate living wages and regulated working hours.

3. Digitalization and Cybersecurity

Pfeiffer Vacuum is part of the so-called Fourth Industrial Revolution, which is transforming all aspects of business. "Digitalization" offers great opportunities and has a major impact on the way we do business. Information and digital assets are crucial and critical for our success. Thus, an innovative company such as Pfeiffer Vacuum has a greatly increased risk arising from threats such as cybercrime and cyber espionage. Our goal is to minimize these risks as far as possible.

4. Quality Assurance and Product Safety

Pfeiffer Vacuum manufactures innovative high-tech products and sets standards in the industry - also with regard to quality and safety. Pfeiffer Vacuum applies high standards of safety, and stringent quality requirements in its product development and production. Our quality management system is based on internationally recognized standards and the applicable legal requirements. It also applies to the entire manufacturing process.

5. Reduction of CO2 (Scope 1- 3)

Pfeiffer Vacuum is actively committed to environmental and climate protection, and promotes the sustainable use of natural resources within the corporate group. This is why we constantly endeavor to reduce our environmental footprint and minimize our greenhouse gas emissions. We have committed ourselves to reducing our Scope 1 and 2 emissions to net zero by 2030. In addition, we will continue to analyze the causes of the Scope 3 CO2 emissions for which we are jointly responsible so that we can move ever closer to net zero CO2 emissions with our entire value chain.

6. We Feeling and Life Purpose

Our employees want to be involved in making the world a better place. By working on future technologies that improve the supply of sustainable energy and strengthen the circular economy, we open opportunities for our employees to participate in conservation of the Earth's climate.

7. Labor Law Compliance

For us, strict compliance with labor law is a basic prerequisite for the protection of our employees and a precondition for assuring their well-being and motivation. As an internationally active company, we comply with relevant laws such as the Occupational Health and Safety Act (ArbSchG) in Germany, directives and other binding regulations in the countries in which we operate.

8. Occupational Health and Safety

Our employees' health, their occupational safety, and the condition of our buildings are essential factors for the creation of value in our corporate group and an important prerequisite for ensuring that Pfeiffer Vacuum's products and services meet the high standards of quality and safety. As a responsible employer, Pfeiffer Vacuum strives to limit the number of accidents and days lost due to illness as far as possible. This benefits not only every employee, but also our whole Group, because inadequate occupational health and safety can lead to costs resulting from days lost due to illness, and a reduction in production capacity as well as product quality. This is why we pursue the objective of ensuring a high level of occupational health and safety.

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2. Sustainability at Pfeiffer Vacuum

9. Equality and Diversity

The collaboration of people from different cultures and nationalities is a matter of course for us as a globally operating group. We value the individuality, the different knowledge and skills as well as the different career aspirations and motivations of our employees as important drivers for our joint corporate performance. This diversity is what accounts for our innovation strength and continuous devel- opment. We hold to these values and safeguard them by raising awareness among our employees that they should never treat their colleagues differently from others because of their origin, age, gender, sexual orientation, disability or religious beliefs.

10. Personnel Development and Working Conditions

We want to align the needs and goals of our employees with the requirements of our Company. We promote this by offering personnel development and further training, and support our employees by providing suitable working and employment conditions as well as appropriate HR tools and formats.

11. Reduction of Waste

Waste contains valuable raw materials, which can be reused in production. At the same time, however, they can also present numerous environmental risks. This is why we place great importance on avoiding the generation of waste, or on recycling it to the greatest possible extent. We want to limit the loss of raw materials and minimize the negative environmental effects of our waste disposal.

12. Reduction of Water Consumption

The provision of drinking water represents a global challenge of increasing significance. Since our Company and our employees are dependent on water, sustainable water management is an important component of our environmental protection activities.

13. Social Responsibility

As a global company, with facilities that are synergistically close to our customers, suppliers, employees, the local community and nature, we form a part of society. Through our joint interactions, we contribute to regional prosperity and nature conservation by means of our entrepreneurial and responsible actions, by providing good jobs and charitable sponsorships, and by cooperating with schools and universities.

008

PFEIFFER VACUUM SUSTAINABILITY REPORT 2023

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The essential sustainability topics comprising these general topics as well as those defined specifically for our individual value creation steps form the basis for the further determi- nation, review, prioritization and implementation of targeted measures. They aim at fulfilling, to the best possible extent, the sustainability requirements that arise from this materiality analysis as strategic goals. In this report, the ways in which we achieve these goals are presented within the context of our value creation steps, as are our further measures and project plans for achieving additional targets in the coming years.

In 2023, we created an internal website via which we communicate our sustainability strategy to our employees in order to further raise awareness of the need for environmental and social improvements. Moreover, we explain our sustainability strategy in more detail so that every employee at every workplace within Pfeiffer Vacuum can get involved and contribute to our sustainable transformation. Moreover, in line with our sustainability strategy, we will continue to look for potential ecological or social improvements throughout the Company in order to develop further regulations for worldwide integration in our processes.

To further validate these foundations of our sustainability strategy, we will continue to engage with key stakeholders in 2024 in order to check the materiality and correctness of our strategy.

In addition to indexing the GRI indicators and topics, we have also incorporated into the GRI Content Index (see from page 55 ff.) the descriptions of our contributions to the UN Sustainable Development Goals (SDGs) and to the ten principles of the UN Global Compact on a topic-specific basis (cf. chapter "5. Sustainability Indicators"). In this GRI Content Index, we systematically cross-reference all the rele- vant, topic-specific text passages in this report.

2.2 Responsible Corporate Governance

Sustainable management is a continuous strategic goal and commitment, which we use as a competitive advantage and at the same time for the common good of our stakeholders as well as for the protection of ­nature.We ensure the congruence of our global busi­ ness activities through our corporate governance.

We have implemented processes to support compliance with locally applicable laws and legal regulations in the countries in which we operate. In addition, we want to fulfill our role as a responsible, reflective company in a large, global network with many employees, suppliers, local communities and our customers in different markets to contribute to a responsible economy.

To this end, we have defined binding, future-oriented standards for our business partners as well as for ourselves and combined them in our Code of Conduct as well as our Code of Conduct for Suppliers. Our globally applicable standards are based on international sustainability principles such as the UN Global Compact, UN Human Rights, the provisions of the International Labour Organization (ILO), the achievement of the UN Sustainable Development Goals (SDGs) and of the Science Based Target Initiative (SBTi) in order to powerfully use our levers for ecological and social economy

transformation. Our common standards serve as binding and at the same time motivating, meaningful guidelines for all employees in our daily business. We demand that our ­suppliers implement them in the same way.

In our business relationships, we ensure, among other things, that we do not permit forced or child labor, modern slavery, human trafficking, or any form of discrimination. Our goal is to guarantee occupational safety and ensure fair working conditions as well as freedom of association. We prohibit corruption and bribary, and demand fair competition and material compliance. For all topics concerning our employees, we refer to local law. For example, appropriate living wages must be paid in accordance with the applicable laws, and regulated working hours must be observed­. We also require our suppliers to take appropriate measures to ensure health and safety at the workplace. When working in our properties, our safety and accident prevention regulations are binding. Furthermore, we ensure that we collaborate only with companies that comply with country-specific environmental and social laws as well as standards.

We demand that our suppliers comply with our standards of sustainable management - and in turn request the same from their suppliers. If there is a suspicion of a violation, the supplier is obliged to clarify the facts and take improvement measures (see chapter "3.2 Procurement/Supply Chain Management"). If necessary, we adapt our standards of conduct, which we align with our corporate values, the expectations of our stakeholders, and the requirements of nature, to economic, social and ecological developments.

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To protect nature and the health of our employees as well as customers and to improve the quality of our products, we set further concrete standards to exclude hazardous substances and materials from our products:

Substances of Concern

As a globally active industrial company, we comply with the legal, industry- and customer-specific regulations on substance bans and declaration obligations of the countries in which we operate, such as the EU chemicals regulation REACH, EU-RoHS, EU Persistent Organic Pollutants, China RoHS, US Conflict Minerals, US Extended Minerals and the US regulation Toxic Substances Control Act (TSCA), including PFAS restrictions regulated by several laws. We centrally monitor all the resulting requirements, which are also constantly changing or being supplemented, and initiate the necessary adjustment measures in the event of changes.

Compliance with these regulations is of the highest importance to us and, for this reason, we added the legal, industry- and customer-specific regulations to our Code of Conduct in 2023.

At Pfeiffer Vacuum, Substances of Concern (SoC) are all substances in production aids or products that are classified as prohibited or declarable by law or our customer agreements. We are continuously working to identify and exclude SoC, to use better substitutes and to avoid hazardous substances. In new developments, we refrain from using substances on the EU REACH candidate list if technically possible.

Our binding internal guidelines define the requirements for dealing with SoC during our product development process. If SoC cannot be avoided in the production process for technical reasons, risk assessments are carried out to ensure the safe handling of these substances by applying appropriate protective measures.

Conflict Minerals

In accordance with our ethical standards, we have installed processes to ensure that our products do not contain conflict minerals. The raw materials tantalum, tin, tungsten and gold (3TG) are considered conflict minerals in our industry if the mining and trading of these raw materials contribute to the financing or other support of armed groups in the Democratic Republic of Congo or its neighboring countries. Furthermore, we also monitor the so-called Extended Min- erals, which includes supplier queries related to cobalt and mica. These conflicts threaten human rights, and the protection and development of local communities.

Since Pfeiffer Vacuum does not come under the scope of the Conflict Mineral Regulation of the European Union but most of our US customers have to provide official reports due to US listing, we decided to implement the, in our opinion, stricter US regulation: The Wall Street Reform Act "Dodd-Frank Act" (section 1502) from 2010 states that companies listed in the US must report to the stock exchange authorities every year about the use of so-called conflict minerals. In order to exclude conflict minerals from all our products, and although we are not US-listed, we report yearly in accordance with the US Conflict Minerals Reporting Template (CMRT). Additionally, we provide the US Extended Minerals Reporting Template (EMRT) regarding cobalt and mica. To this end, we authorized a highly specialized partner to collect all the necessary data from our suppliers. We have also set up a software-based material compliance platform

to help us manage relevant supply chain data, including conflict minerals data, in Pfeiffer Vacuum GmbH, Pfeiffer Vacuum SAS, Dreebit GmbH, Pfeiffer Vacuum Valves & Engineering Inc., and Pfeiffer Vacuum Components & Solutions GmbH. In 2024, we will onboard all remaining development and production sites to this software-based material compliance platform.

If the absence of conflict minerals cannot be confirmed, we oblige our suppliers to ensure conflict-material-free deliver- ies. If necessary, conflict-free components are sourced from other suppliers or other materials are used. During the entire reporting year, we did not become aware of any negative cases. Thus far, we have not had to exclude any of our carefully selected suppliers for using conflict minerals. Since the Russian war of aggression, we have started to exclude Russian smelters as our suppliers.

We continue to use only raw materials from smelters certified in accordance with the Responsible Minerals Initiative (RMI) at all production sites. Certified smelters mine ores and minerals in compliance with defined environmental and social standards. Due diligence activities remain ongoing in the form of supplier engagement and education to encourage more accurate reporting and the progressive elimination of risks from upstream actors identified in the supply chain as per the OECD Due Diligence Guidance. Therefore, Pfeiffer Vacuum Technology AG takes part in the common smelter outreach initiative of our partner service provider.