E3 – Water and Marine Resources

Responsible water management is crucial for the Group, given that producing stainless steel and high-performance alloys requires substantial amounts of this natural resource.

In 2025, the Group updated the Sustainability and Safety, Health, and Environment Policies, replacing the previous ones. The rational and sustainable use of water, along with ecosystem protection across all activities, are key principles in the Sustainability Policy, as well as in IRO management.

Similarly, the Health, Safety and Environment Policy is dedicated to protecting nature, which includes managing and consuming water resources responsibly and maintaining their quality. These policies apply to all entities within the Acerinox Group, including those in water-stressed areas. They must ensure that policy principles are followed by all commercial partners involved in the activity chain.

The Board of Directors oversees compliance with both policies, and they will be available on the Company website.

Most factories source their water from rivers (NAS, Roldán, and VDM Metals). However, some facilities draw water from swamps (Acerinox Europa), reservoirs (Columbus Stainless and Bahru Stainless), or the public supply network (Inoxfil and VDM Metals). No factory sources its water from marine resources, whether biological or non-biological.

Water is essential throughout the production process for cooling machinery and molten steel, cleaning equipment, generating steam, and treating wastewater.

Our factories have measures in place to prevent, avoid and act in the event of spills or discharges resulting from the storage of other substances. Neutralization and treatment facilities for both acidic and basic water, along with emergency ponds, allow us to maximize the recirculation of water and prevent any discharges into the natural environment. Together with other security measures, they eliminate the risk of spills. The tanks are equipped with a permanent secondary containment mechanism, as well as cleaning and emergency shutdown services.

The Group's operations have a minimal impact on marine resources since only Acerinox Europa discharges water into the sea. Water is discharged into the Bay of Algeciras through a general collector managed by the Major Industries Association of Campo de Gibraltar. This discharge is subject to regular analysis in accordance with the Plan for the Monitoring and Control of the Receiving Environment for Discharges into the Bay of Algeciras.

As part of our sustainable corporate strategy, the following group-wide policy applies to environmental topics:

Climate and Environment Policy

General objectives: Definition of group-wide minimum standards for environmental protection; Embedding of climate and environmental protection in business processes and projects

Main subject matter:

• Water and marine resources: Standards for water management, water resources and water treatment; Standards for water consumption and withdrawal; Proper wastewater management; Avoidance of surface sealing

Reference to third-party standards or initiatives: United Nations Sustainable Development Goals (SDGs), UNGC principles, European Green Deal, ISO 14001/ISO 50001

Scope: Binding on all Krones Group employees worldwide; Applies along the entire value chain

Organisational unit accountable for implementation: Corporate Sustainability; Adoption by the Executive Board

Process for monitoring: Internal review in regular audits; External audits and ISO certifications by independent third parties

Consideration given to the interests of stakeholders: Dialogue-based engagement in policy development

Availability of the policy to stakeholders: Available to all employees; Access via internal policy management system

IROs that the policy relates to: Water

In the event of an environmental violation, all workers along the entire value chain and external stakeholders of the Krones Group have various means to be heard. Besides direct contact with the company, the main point of contact is the Krones Integrity reporting system. This enables environmental violations to be clearly identified as such from the outset.

We believe that by implementing water stewardship, we can also build more resilient operations. We are therefore working to update our approach to water and related targets to achieve a nature positive value chain by 2040. In 2024, we continued to develop our water stewardship approach at our sites as part of the update of our environmental management principle.

Our focus areas for biodiversity management include Water: We promote sustainable water use.

Water and marine resources policies

We set minimum, mandatory requirements for the management of water, waste, wastewater and pharmaceuticals in the environment. Each part of the organization is required to protect the environment by reducing risk; to ensure individuals are appropriately skilled, competent and fit for performing their tasks properly; and to comply with environmental regulation.

We seek to minimize discharge of active pharmaceutical ingredients (APIs) into water systems, and do not dispose of waste containing APIs in landfill.

We regularly measure water and air quality to make sure we remain within limits permitted by applicable local regulation. Sites with established regulatory limits, conditions or specific limitations on discharges are responsible for collecting data on a periodic basis.

Sites also perform an annual self-assessment of their controls, and the assessments of a representative sample of sites are tested by an independent governance team each year. Conformance reviews and legal compliance audits are conducted at least every five years.

Water and Marine Resources Policies

Water Treatment Standards: We treat consumptive water, especially for active pharmaceutical ingredients in our manufacturing effluents, in compliance with all relevant regulations and pre-treatment standards, ensuring it returns to nature without harming the environment.

Water Conservation Priority: Water conservation efforts prioritised reduction of water usage and protection of the sensitive ecosystem and its biodiversity. Water has been identified as one of our material environmental subtopics through our double materiality assessment.

Risk Management Approach: Globally we assess nature-based risks across our value chain – including those related to water stress, water quantity and quality, regulatory issues and biodiversity.

Regulatory Compliance: We implement comprehensive measures to ensure compliance with water-related regulations and to address increased scrutiny on water usage, including monitoring systems and treatment infrastructure.

Our breakthrough soda ash process, e.Solvay, is expected to reduce our scope 1 & 2 greenhouse gas emissions by around 50%, water and salt consumption by 20%, and limestone consumption by 30%, compared to the current process, while eliminating limestone residues.

Water and Marine Resources Policies:

Stora Enso has established comprehensive policies for responsible water management across its operations:

Water Efficiency and Conservation:

• Water use efficiency policies to minimize consumption across all operations
• Implementation of closed-loop water systems where technically feasible
• Regular assessment of water use efficiency and improvement opportunities
• Integration of water considerations into operational planning

Water Quality Management:

• Stringent water quality standards for all discharges
• Wastewater treatment policies exceeding regulatory requirements
• Regular monitoring of water quality impacts
• Protection of water bodies and aquatic ecosystems

Forest Water Management:

• Sustainable forest management practices protecting watersheds
• Buffer zones around water bodies in forest operations
• Soil and water conservation in forestry activities
• Restoration of riparian areas and wetlands

Supply Chain Water Management:

• Engagement with suppliers on responsible water use
• Assessment of water risks in key supply regions
• Support for water stewardship initiatives

Risk Management:

• Water risk assessment and management procedures
• Climate change adaptation considering changing precipitation patterns
• Drought and flood preparedness planning
• Stakeholder engagement on water-related issues

Compliance and Governance:

• Compliance with all water-related regulations and permits
• Regular auditing of water management practices
• Integration with environmental management systems
• Board oversight of water-related risks and opportunities

Policies related to water and marine resources

Water management commitment TKH recognizes the importance of responsible water use and marine resource protection. We have implemented comprehensive policies to manage water consumption and minimize impacts on aquatic ecosystems.

Water conservation policy

• Implementation of water monitoring and conservation programs across operations
• Regular assessment of water usage efficiency and optimization opportunities
• Investment in water treatment and recycling systems where applicable
• Integration of water considerations in facility planning and operations

Water consumption management

• Water consumption monitoring: 116,821 m³ in 2024
• Implementation of water conservation measures to reduce consumption
• Regular monitoring of water usage patterns and efficiency
• Assessment of water-related risks and impacts

Marine resources protection Given our significant involvement in offshore wind energy infrastructure, TKH is committed to protecting marine environments.

Marine environment considerations:

• Environmental impact assessment for offshore operations and installations
• Implementation of best practices for marine environment protection
• Compliance with marine environmental regulations and standards
• Sustainable design of subsea cable systems to minimize marine impact

Environmental management integration

• Operation in accordance with ISO 14001 environmental management standards
• Integration of water and marine considerations in environmental assessments
• Regular monitoring and reporting of water-related performance
• External assurance on environmental performance including water management

Supply chain water responsibility

• Assessment of water-related risks in supplier operations
• Engagement with suppliers on water conservation and protection measures
• Integration of water stewardship requirements in procurement processes
• Active dialogue with strategic suppliers on environmental practices

Continuous improvement

• Regular review and enhancement of water management practices
• Investment in water-efficient technologies and processes
• Monitoring of water-related performance indicators
• Alignment with industry best practices for water stewardship

Policies Related to Water and Marine Resources

Vestas recognizes water and marine resources as a material sustainability topic, particularly given our operations in coastal areas for offshore wind development and our global manufacturing footprint.

Water Management Policies

Resource Efficiency: Vestas is committed to responsible water management across our operations, with policies focused on:

• Efficient water use in manufacturing processes
• Water conservation measures in facilities
• Responsible withdrawal from freshwater sources
• Protection of local water resources

Operational Water Use: Our water consumption primarily relates to:

• Manufacturing processes for turbine components
• Facility cooling and heating systems
• Employee facilities and office operations
• Cleaning and maintenance activities

Marine Resource Considerations

Offshore Wind Development: As we expand our offshore wind capabilities, we consider marine resource impacts including:

• Marine ecosystem protection during construction and operation
• Sustainable installation practices
• Responsible decommissioning planning
• Collaboration with marine conservation stakeholders

Coastal Operations: Our offshore manufacturing and service facilities are designed with consideration for:

• Coastal water quality protection
• Marine habitat preservation
• Sustainable port and harbor usage
• Integration with local marine resource management

Integration with Sustainability Strategy

Circular Economy Connection: Water management connects to our circular economy goals through:

• Waste water treatment and reuse where possible
• Minimizing water-intensive processes
• Closed-loop manufacturing systems where feasible

Supply Chain Requirements: We engage with suppliers on responsible water management practices as part of our overall supply chain sustainability requirements.

Governance and Management

Oversight: Water and marine resource management is overseen as part of our comprehensive environmental management system, with regular monitoring and reporting of water consumption metrics.

Continuous Improvement: We continuously evaluate opportunities to improve water efficiency and reduce environmental impact on marine resources through operational improvements and technology upgrades.

Regulatory Compliance

Vestas maintains compliance with local water management regulations across all operational jurisdictions and works proactively with authorities on marine resource protection in offshore wind development projects.

Currently, we are focusing on strengthening the water balance management. A new wastewater treatment unit is being completed at the Rotterdam refinery and will start operation with the expansion of the production unit. New wastewater treatment units have been recently installed in Porvoo and Singapore.

According to our company-wide Environmental Management Principle, major investment projects include an Environmental Compliance Analysis and a compliance review when building new production capacity or increasing current capacity.

Water management actions and resources

Water consumption reduction

In 2024, we reduced our water consumption by 9% from the prior year, bringing the reduction to 57% since 2016. With this we have met, and seek to maintain, our 2025 target. In 2024, we continued to reduce consumption by using more recycled water (where local regulations allow) and adopting less water-intensive production techniques.

Water quality management

As of the end of 2024, 97% of Novartis manufacturing sites can demonstrate that they meet internal water quality standards.

Further, we increased engagement with our manufacturing suppliers around their maturity in managing their impact on aquatic environments, particularly concerning effluents containing active pharmaceutical ingredients (APIs). As a result, 100% of our high-risk suppliers met our water quality standards in 2024, compared with 88% in 2023. These assessments are conducted in alignment with the framework to tackle antimicrobial resistance (AMR) laid out by the AMR Industry Alliance.

We have developed a plan to expand internal water quality standards to Novartis R&D locations and all API suppliers in scope.

Nature assessment

By 2030, we plan to implement water use reductions for own and supplier sites based in water stressed basins that have potential material impacts on these basins. We will set site-specific targets for both our own and supplier sites in these areas. Sites are identified through our nature assessment, which follows the TNFD framework and guidance by the Science Based Targets Network (SBTN).

Actions and Resources for Water and Marine Resources

Water Conservation Initiatives: Water conservation efforts prioritised reduction of water usage and protection of the sensitive ecosystem and its biodiversity. Our recently opened Roche Innovation Center Basel incorporates smart concepts for water-saving as part of our sustainability goals.

Treatment Infrastructure: We have established comprehensive water treatment systems, particularly for manufacturing effluents containing active pharmaceutical ingredients, ensuring treated water returns to nature without environmental harm.

Water Efficiency Investments: Significant investments are being made to improve water efficiency in water-stressed areas, particularly improving and monitoring of water treatment where water is a constrained resource, such as in California, US.

Risk Assessment: We conduct global assessments of nature-based risks across our value chain, including those related to water stress, water quantity and quality, regulatory issues and biodiversity.

Smart Water Management: Our new facilities incorporate smart water management concepts, including water-saving technologies and efficient water usage systems.

We announced climate and water projects in Paulínia, Brazil, which will reduce this major production plant's greenhouse gas emissions by 40% annually by 2028 and decrease annual water intake. Installing biomass‑fired boilers, fueled primarily by sugarcane bagasse, will support renewable energy adoption while implementing a closed-loop cooling system that will reduce water usage.

Actions and Resources for Water and Marine Resources:

Water Efficiency Actions:

• Implementation of water-saving technologies in pulp and paper operations
• Process optimization to reduce water consumption per unit of production
• Closed-loop water systems installation where feasible
• Regular water audits and efficiency assessments

Water Treatment Actions:

• Upgrading wastewater treatment facilities to improve discharge quality
• Implementation of advanced treatment technologies
• Regular monitoring and testing of water discharges
• Maintenance and optimization of treatment systems

Forest Water Protection Actions:

• Establishment of buffer zones around water bodies during harvesting
• Selective harvesting techniques to minimize soil erosion and water impact
• Restoration of riparian vegetation and wetlands
• Soil protection measures during forestry operations

Technology Investments:

• Capital investments in water-efficient production equipment
• Advanced monitoring systems for water quality and quantity
• Treatment system upgrades and expansions
• Research and development in water-efficient processes

Stakeholder Engagement:

• Collaboration with local communities on water protection
• Partnership with environmental organizations on watershed management
• Engagement with regulatory authorities on water compliance
• Supplier collaboration on water stewardship

Resources Allocated:

• Dedicated water management teams at production sites
• Investment in water infrastructure and treatment systems
• Regular monitoring and laboratory testing of water parameters
• Training programs for employees on water management
• Integration of water considerations into capital investment decisions

Actions and resources related to water and marine resources

Water management actions TKH has implemented comprehensive water management measures across our operations to ensure responsible water use and conservation.

Water conservation initiatives:

• Water consumption monitoring: 116,821 m³ tracked in 2024
• Implementation of water conservation measures across facilities
• Investment in water-efficient production technologies
• Regular assessment and optimization of water usage patterns
• Integration of water considerations in operational excellence programs

Marine resources protection actions As a leading supplier of subsea cables for offshore wind energy, TKH takes marine environmental protection seriously.

Marine environment initiatives:

• €200 million strategic investment in offshore wind inter-array cable capacity with environmental considerations
• Development of unique dry-design cable technology that reduces marine installation impact
• Environmental impact assessment for subsea cable installations
• Implementation of best practices for marine environment protection during cable laying operations
• Compliance with marine environmental regulations and standards

Technology and innovation investments

• €80.7 million R&D investment including development of environmentally friendly marine technologies
• Innovation in subsea cable design to minimize marine ecosystem impact
• Development of installation methods that reduce marine environmental disruption
• Research into sustainable materials for marine applications

Environmental management resources

• Operation in accordance with ISO 14001 environmental management standards
• Regular environmental monitoring and assessment programs
• Investment in environmental data collection and management systems
• External assurance on environmental performance reporting

Supply chain engagement

• Assessment of water-related risks in supplier operations
• Active dialogue with strategic suppliers on water conservation practices
• Integration of water stewardship requirements in supplier management
• 78.2% of copper suppliers assessed with environmental risk management processes

Monitoring and improvement

• Continuous monitoring of water usage efficiency and quality impacts
• Regular review and enhancement of water management practices
• Investment in water treatment and recycling infrastructure where applicable
• Alignment with industry best practices for water and marine resource stewardship

We want to establish sustainable water management at all production sites in water stress areas and at our Verbund sites by 2030. In 2024, we reached a share of 65% (2023: 57%).

We define water stress areas as regions in which more than 40% of available water is used by industry, households and agriculture. Our definition is based on the Water Risk Atlas (Aqueduct 4.0) published by the World Resources Institute.

Water targets

Water consumption reduction target

• Target: Reduce water consumption in our own operations by half by 2025, compared with our 2016 baseline
• Progress: 57% reduction achieved since 2016 - target met and maintained

Water quality targets

• 2025 target: No water quality impacts from manufacturing effluents by 2025

  • Manufacturing sites meeting water quality standards: 97% (2024)
  • High-risk suppliers meeting water quality standards: 100% (2024)

• 2030 target: No water quality impacts from manufacturing effluents by 2030

  • Own sites meeting water quality standards: 100% target (including all manufacturing sites and labs)
  • All suppliers meeting water quality standards: 100% target (including all suppliers of active pharmaceutical ingredients)

Water stress basin targets

• Target: Implement water use reduction for own and supplier sites based in water stressed basins
• Status: Site-specific targets to be set for material sites in own operations and upstream suppliers

Basin-specific targets will be established for material sites in own operations and upstream suppliers.

Targets related to water and marine resources

Water consumption targets

Marine environment protection targets

Strategic investment targets

Integrated environmental targets

Long-term goals

• Continuous improvement in water use efficiency
• Enhanced protection of marine environments in offshore operations
• Development of innovative technologies that minimize water and marine resource impacts
• Strengthening of supply chain water stewardship practices
• Integration of water and marine considerations in all strategic decisions

Performance monitoring

• Regular tracking of water consumption and efficiency metrics
• Continuous assessment of marine environmental impacts
• External verification of water and marine resource management performance
• Benchmarking against industry best practices

Water consumption

Water management achievements:

• Cementir maintained its leadership in water management by achieving a score of A- in CDP Water, for the third consecutive year.
• The Group updated the water risk assessment at the individual cement plant level, according to the scenarios reported in the World Resources Institute (Aqueduct) information platform.
• At the Group level, compared to 2019 values, the target of reducing consumption in cement production was increased to 30% from the previous 20%.
• For plants located in high water stress areas, the reduction target for 2030 is 25%.

Water consumption

Water Withdrawals

Fresh water withdrawals: 127 mm³ in 2024, compared to 109 mm³ in 2023 and 101 mm³ in 2022.

Water Reuse and Efficiency

Reuse of fresh water: 90% in 2024, demonstrating strong water efficiency practices.

Re-injected production water: 51% in 2024, compared to 42% in 2023 and 43% in 2022, showing improved water management and reinjection practices.

Water Positivity Target

Declared the ambition to achieve water positivity by 2050 in its operated sites, through an approach that also takes into account actions at the river basin level, inspired by the principles of the Net Positive Water Impact proposed by the CEO Water Mandate.

As part of the CEO Water Mandate initiative, Eni is engaged in achieving water positivity by 2035 in at least 30% of our operated sites, with withdrawals greater than 0.5 Mm³/year of fresh water in water-stressed areas.

Water Resource Protection

Eni is committed to protect the environment through the search for innovative solutions aimed at reducing the impact of its operations, ensuring efficient use of natural resources, the protection of biodiversity and water resources, and the promotion of development models based on regenerative principles of the circular economy.

Reporting Methodology

KPIs refer to 100% of the operated assets, consolidated and unconsolidated, with reference to the operatorship criteria expressed in the standards of the Sustainability Statement. The 2023 and 2022 data are reported accordingly.

Water consumption

Average water usage (hl/hl)

11% improvement compared to 2018

Reducing water use in production

Our goal for 2030 is to reduce average water intake in our breweries to 2.6 hl/hl in water-stressed areas and 2.9 hl/hl globally. In 2024, our average water usage was 3.0 hl/hl (2023: 3.0) in water-stressed areas and 3.1 hl/hl (2023: 3.2) across all our breweries achieving an 11% reduction (12% adjusted for acquisitions and divestitures) versus the 2018 baseline.

We expanded our water efficiency acceleration programme in collaboration with cleaning and disinfection suppliers. The programme is active at 56 sites spanning all regions and is delivering results, such as in Italy and Brazil, where water use per hectolitre of beer is down by 13% and 9%, respectively. We shared best practices from the programme on our global platform, enabling production sites to learn, share and reapply them within the Company. Advanced technologies and water treatment optimisation are also delivering results across many sites, including in Mexico and Ethiopia. In Myanmar, a shift in water treatment saved around 1.0 hl/hl, and in Cambodia adjusting the source of water withdrawal delivered a 0.4 hl/hl reduction in water use.

Water Consumption

Target: % reduction in water withdrawals: -25% by 2030 (baseline 2019: 5,653 ML). Current progress: 4,492 ML (-21% vs baseline).

Performance: Work continued to improve efficiency in water consumption through circularity and optimisation and revamping of supply networks, achieving more than 130 Megaliters of water withdrawals reduction per year.

The most recent water risk evaluation of Neste sites was undertaken in 2024, based on the WWF water risk filter tool's 2024 update and new Water Availability data layer that is in line with SBTN criteria. All our refineries are located in low-risk areas, but the updated evaluation indicates that Neste has six small-scale collection and recycling sites for waste and residue raw material in high and two sites in moderate water availability risk areas.

Elevated water risks can cause potential pressure in the pricing of water resources. Both water intake and wastewater treatment have been considered in long-term operational financial planning.

Detailed water consumption data is provided in the Sustainability data package.

Water consumption data

Water usage performance indicators

Water consumption target progress

Key notes:

1. 2023 and 2022 water usage performance indicators have been updated from the prior year published performance indicators to include the Novartis entity Abadia Retuerta and a revised estimate from the Sandoz/Novartis split for manufacturing operations in Austria after segregated meter reading data was available.

2. The definition for water consumption was changed to align with the GRI standards. In previous years, water discharged via treatment was included in water consumption and it has now been classified as water discharged.

3. Water withdrawal includes water used for cooling and returned to the environment without the need for additional treatment.

4. Total water consumption is defined as total volume of water withdrawn by an organization, less any water discharged outside of the site boundaries through municipal waste water systems or directly to aquatic environments.

5. Target water consumption includes water discharged via treatment and water lost through evaporation or other destinations.

6. Environmental data excludes water usage at the Novartis entity Abadia Retuerta.

Water consumption

Water consumption monitoring TKH tracks and manages water consumption across our operations as part of our comprehensive environmental management approach.

2024 Water consumption performance

• Total water consumption: 116,821 m³
• Regular monitoring and reporting of water usage across all facilities
• Implementation of water conservation measures to optimize consumption
• Integration of water management into operational excellence programs

Water management approach

• Systematic monitoring of water consumption patterns
• Assessment of water usage efficiency and optimization opportunities
• Implementation of water conservation measures across facilities
• Regular review of water consumption performance and targets

Water conservation initiatives

• Investment in water-efficient production technologies
• Implementation of water recycling systems where applicable
• Optimization of production processes to reduce water usage
• Employee awareness and training on water conservation

Water source management

• Assessment of water source sustainability and availability
• Implementation of responsible water sourcing practices
• Monitoring of water quality and treatment requirements
• Integration of water considerations in facility planning

Environmental integration

• Water consumption tracking as part of ISO 14001 environmental management
• Integration with overall environmental performance monitoring
• Regular environmental assessments including water impact evaluation
• External assurance on water consumption reporting

Continuous improvement

• Regular review of water consumption patterns and efficiency
• Investment in water-saving technologies and processes
• Benchmarking water performance against industry standards
• Setting targets for water consumption optimization

Supply chain considerations

• Assessment of water-related risks in supplier operations
• Engagement with suppliers on water stewardship practices
• Integration of water considerations in procurement decisions
• Promotion of water conservation throughout the value chain

Financial Effects from Water and Marine Resources

Operational Cost Increases: Significant investments are required to improve water efficiency in water-stressed areas (e.g. improving and monitoring of water treatment where water is a constrained resource, particularly in California, US). This leads to increased operational costs due to new infrastructure investments needed.

Supply Chain Cost Impacts: Water scarcity in water-stressed areas in which suppliers operate, and failures in water supply that impair supplier facilities could lead to increased costs for goods purchased from suppliers.

Compliance and Regulatory Costs: Reputational and legal fine/action risk due to non-compliance with water-related regulations or increased scrutiny on water usage leads to higher costs of compliance because of additional measures, policies and programmes, as well as costs to comply with updated regulations, or litigation costs, fines or penalties if not met or not compliant.

Revenue Risk: Non-compliance with water regulations also leads to loss of revenue due to reputational damage and adverse reactions from customers.