ESRS E1 Climate change [E1] Climate change

Our impacts, risks, and opportunities [E1 SBM-3] Material impacts, risks, and opportunities and their interaction with strategy and business model

Climate change adaptation

Climate change has direct impacts on Fresenius: In our facilities, we have been preparing for rising temperatures and the increase in severe weather events for several years. Our aim is to provide the best possible protection for patients’ and employees’ health. Flooding, heavy rainfall, and high temperatures can interrupt our and our suppliers’ activities and production in the short-, medium-, and long-term. In order to ensure continual production and steady healthcare provision in our facilities, we must adopt measures in our own business and along the value chain. In doing so, we want to take advantage of the resulting short- and medium-term opportunities, ensure business continuity, expand business opportunities and achieve competitive advantages.

The negative consequences of climate change are not only felt in our direct operations. Extreme weather events also affect our employees and patients’ living conditions. Heat waves, for example, put a strain on older and ill people and can increase their mortality rate. The increasing concentration of air pollution promotes respiratory diseases, and climate change can cause insect-borne diseases to spread to new regions. By providing corresponding medical care and research, we make an actual positive contribution to adapting to climate change and the necessary prevention and treatment of climate-related illnesses.

Climate change mitigation and energy

Our production processes and the operation of healthcare facilities require energy – particularly for sterilization and cooling processes. The current consumption of fossil fuels and its associated greenhouse gas (GHG) emissions have an actual negative impact on the environment, both in our upstream and downstream value chain and in our own business operations. Our energy consumption also results in medium-term financial risks. The time required to upgrade our processes could also result in competitive disadvantages. There could be rising operating costs if, e.g., we have to purchase green electricity certificates and make high investments in new technologies. In addition, possible increased CO₂ taxes could become a financial risk, if we are unable to reduce our emissions.

Simultaneously, the production of energy-efficient products and services can lead to medium-term opportunities and market advantages, both for our own business and in the upstream and downstream value chain, since our stakeholders expect new products and services to contribute to reducing climate-related impacts. If we continue to improve our sustainability performance, our attractiveness as an employer can also increase in the medium term. This is because a growing number of employees consider the sustainability of a company as an important criterion when choosing a job.

Through the use as well as self-generation of renewable energy, the electrification of fossil energy sources and measures to increase efficiency, we can reduce our GHG emissions. For several years now, we have been carrying out activities in this area. Those measures also have an impact on our Scope 3 emissions in the value chain. In the medium to long term, this will lead to fewer GHG emissions and an actual positive impact on climate protection. In this way, we are positively contributing to climate change mitigation, which brings new business opportunities, since energy efficiency measures can also save costs in the medium term.

Transition plan for climate change mitigation [E1-1] Transition plan for climate change mitigation

Transition plan for climate change mitigation

As a healthcare Group, we play an important role for society in terms of climate change adaptation. With that in mind, Fresenius aims to achieve net zero by 2050. This means we are reducing our Scope 1 to 3 emissions as far as possible. For the remaining unavoidable emissions, we are continuously evaluating possible measures, such as the compensation for the permanent removal of CO₂. At the same time, our direct levers are limited, since adjustments to our business model must always ensure the healthcare of our patients. As a result, we are focusing on decarbonization through the usage of renewable energies, energy efficiency measures and changes of technology in the production at Fresenius Kabi. In addition to adapting new technologies, we are cooperating closely with partners in our value chain to leverage the decarbonization progress across industries and sectors, for example resources with a lower carbon footprint or low-emission logistics.

The climate protection target set by Fresenius (see this topical standard, section E1-4 / E1-7 Our goals and ambitions) is in line with the scientific goal of the Paris Agreement to limit global warming to 1.5°C. We identify emission-intensive activities and derive reduction measures from them. For example, we are introducing new technologies with lower environmental impacts, which can improve the energy efficiency of our processes and lead to lower GHG emissions. The focus is on the production sites that have the highest contribution to our carbon footprint due to their emissions. This enables us to prioritize measures and corresponding budgets that promote a timely reduction in emissions. In addition, we are working on improving our supplier management and have carried out an initial hot-spot analysis to identify the upstream suppliers and product groups with the highest CO₂ intensity.

For the implementation of our transition plan, we have also identified five central decarbonization levers that we are focusing on:

• Expansion of renewable energies: An important lever in the transition to business operations with net zero emissions by 2050 is the reduction of Group-wide electricity emissions. We will therefore gradually increase the purchase of electricity from renewable energy sources, electrify processes or replace them with climate-neutral alternatives.
• Increasing energy efficiency: To increase energy efficiency in buildings and processes, we measure the performance of relevant energy consumers and compare them with more energy-efficient systems. On this basis, optimizations, renovations or conversions shall take place.
• Fuel, technology and process change: To reduce our emissions, we plan to change processes, replace energy sources with renewable alternatives such as biofuels, or convert the technology for example to heat pumps and hydrogen.
• Electrification of the vehicle fleet: We want to reduce our emissions by replacing inefficient and high-carbon vehicles with electric alternatives and expand the necessary charging infrastructure.
• CO₂ capture and storage (carbon capture and storage): We want to offset emissions that we cannot avoid using the levers described above. To this end, we are continuously evaluating which technologies are suitable for carbon capture and storage.

Measures implemented and planned in the reporting year as well as related GHG emissions reduction and financial resources can be found in this topical standard, section E1-3 Our actions.

We have evaluated our most important assets and products and the associated locked-in GHG emissions. There are locked-in greenhouse gas emissions in our assets and products, but they can be reduced. By continuously reducing the emissions through targeted measures at our sites and buildings, the carbon footprint of our products is also reduced. We have taken them into account in the planned path to achieving the climate target. A significant change in the future emissions to be reduced is not to be expected from the potential locked-in GHG emissions. The effects of growth and acquisitions on our emissions are also taken into account in the target achievement. The emissions of our assets are partly associated with transitional risks: due to future regulation such as CO₂ pricing, such emissions can have a financial impact. However, it is not currently foreseeable that this would jeopardize the achievement of our climate targets.

Transition risks are taken into account as part of the annual risk assessment. If this results in necessary countermeasures, these will be implemented accordingly and explained in future reporting.

Still, external circumstances can affect timely achievement of the emissions reduction target. New technologies such as industrial electricity storage or batteries for renewable energies are available to some extent, but they are not yet always scalable or may be associated with high costs. In addition, rare earth elements are increasingly being used in new technologies, and may be limited in availability. Furthermore, there is a possibility that increasing electrification and demand for green energy will negatively impact availability and existing infrastructure. Insufficient expansion could therefore slow down progress towards the emission reduction targets. Overall, global developments such as economic crises, natural disasters, pandemics, international tensions, and regulatory uncertainty could delay or prevent the achievement of targets. To counteract this, we try to adapt our measures to the respective situation at an early stage if necessary, thus adhering to our planned reduction paths.

We report on our targets and plans (CapEx, CapEx plans, OpEx) for aligning our economic activities with the criteria set out in the Commission Delegated Regulation (EU) 2021 / 2139 in the section Disclosures pursuant to Article 8 of Regulation (EU) 2020 / 852 (EU Taxonomy Regulation).

We did not invest any significant amounts of CapEx in connection with economic activities related to the coal, oil or gas sectors.

Fresenius is not subject to any of the criteria set out in Article 12.1 in EU 2020 / 1818, which is why the Group is excluded from the EU reference values agreed in Paris.

The transition plan is integrated into our general business strategy as well as the overall financial planning. The responsible management committees approve the components of the transition plan, such as measures and projects, as part of the budget planning process. The climate target has been approved by the Management Board of Fresenius.

2020 is the base year of our climate target for 2030. Since then, we have reduced 27.2% of our Scope 1 and Scope 2 emissions, which is in line with our climate targets. In the reporting year, measures to expand the use of renewable energy and to increase energy efficiency particularly contributed to the long-term achievement of climate neutrality. For more information, please also refer in this topical standard to section E1-3 Our actions, to section E1-4 / E1-7 Our goals and ambitions, as well as Metrics, E1-6 GHG emissions.

Our approach [E1-2] Policies related to climate change mitigation and adaptation

Environmental Policy

Our ambition in climate and environmental protection is to go beyond the legal requirements and to identify opportunities to minimize the impact on the climate and the environment. Our goal is to combine our environmental protection activities in order to manage our material impacts, risks, and opportunities in connection with climate change mitigation, climate change adaptation, and energy consumption across the Group. We have adopted significant structural measures to this end. We have implemented a Group-wide Environmental Policy, adding to measures to implement the previously mentioned decarbonization levers related to our transition plan. This provides the framework for our centralized environmental management.

In this policy, we demonstrate our principles of sound environmental management practices, provide an overview of our priorities in environmental protection, and outline key elements of our approach. These are: climate protection, water, as well as resources and circular economy. The policy is intended to initiate and implement measures tailored to these topics and the defined impacts, risks, and opportunities. We also want to use this framework to motivate the business segments to actively participate in adaptation measures. The policy is intended to further anchor our ambitions for increasing energy efficiency and the use of renewable energies beyond what has already been achieved. The Environmental Policy is published on our corporate website www.fresenius.com.

The Environmental Policy applies across the Group and must be adhered to by all business segments, the company’s own workforce, and third parties who work at our locations. The policy also lays out our expectations for the upstream and downstream value chain. For example, we expect our business partners to support our environmental approach and to comply with the requirements stipulated in respectively relevant documents.

The Environmental Policy was reviewed and approved by the Fresenius Management Board. The Management Board member responsible for Legal, Compliance, Risk Management, Sustainability, Human Resources (Labour Relations Director), and Corporate Audit as well as the business segment Fresenius Vamed (subsequently Sustainability Board member) is responsible for steering strategic Group-wide guidelines on environmental protection. The management of the business segments are responsible for operational management and define the management approaches and regulate responsibility for environmental topics, for example, via a business allocation plan.

Further environmental and energy management concepts

Beyond our Group-wide Environmental Policy, all locations are subject to respective local regulations and laws. In addition, internal guidelines on environmental protection are implemented, for example specific regulations on how employees should handle hazardous substances or waste.

Since the requirements in our business segments differ, environmental management is decentralized and organized according to the business model of the operating companies. They have set up additional local, regional, or global management systems accordingly. Management manuals and standard operating procedures provide the framework for the local environmental and energy management system. These can include detailed checklists for evaluating environmental protection measures and forms for assessing environmental risks.

The ISO 14001 standard provides a common basis for our environmental management systems; the ISO 50001 standard is used for our energy management. Our environmental commitment is reviewed by external partners and regulatory bodies and we are expanding the number of sites certified according to ISO 14001 and ISO 50001.

Monitoring processes

We verify the effectiveness of our management systems through internal and independent audits. The external certification audits are carried out, for example, according to a multi-site procedure. In this process, a representative sample of locations is audited annually. In 2024, the prescribed audits were carried out in our business segments. No systematic deviations were identified in the process.

Each business segment has functions that monitor and control the respective environmental impacts. They analyze environmentally relevant vulnerabilities, develop suitable standard procedures, and implement appropriate measures. They also support their certified local entities in effective, directed environmental goal setting, monitoring these goals as well as developing and implementing mandatory guidelines for all entities. Relevant environmental data, such as consumption, is reported regularly, for example quarterly, to the responsible central function for performance control. If significant deviations from previous performance occur, our specialists initiate an analysis that is evaluated, and corrective or preventive actions are implemented where necessary.

Our actions [E1-3] Actions and resources in relation to climate change policies

In the reporting year, the main focus in connection with the decarbonization levers described above was on energy saving and efficiency, as well as process changes, conversion to green electricity and the associated reduction of corresponding CO₂ equivalents (CO₂e) emissions. We implemented the measures described below in the reporting year, are currently implementing them or have planned to implement them and included them in our budget planning until 2027. The measures only include our own operations. In line with our Environmental Policy, the measures contribute to reducing our carbon footprint and help us achieve our Group climate targets. Further, the measures listed below did not require significant additional financial or human resources beyond the regular budget processes.

Further information about the reduction in our GHG emissions achieved and expected through our decarbonization levers and the financial resources allocated to our transition plan are shown in the table below.

Expansion of renewable energies

We obtain a large proportion of our energy from external suppliers. This also includes renewable energies such as hydro, solar and wind power. We examine the possible use of renewable energies and generate our own electricity at numerous production and hospital sites using biomass boilers and solar systems, for example.

The use of renewable energy is part of our Environmental Policy and an important part of achieving our climate target. In 2024, we purchased around 853,194 MWh of electricity from renewable energy sources within our own business activities. We also use energy from photovoltaic and biomass plants or from thermal and electrical cogeneration and pellet boilers. Additionally, we purchased carbon-neutral and low-carbon electricity, district heating and district cooling.

By 2030, we want to obtain as much of our electricity as possible from renewable sources in addition to generate it ourselves using photovoltaic systems. To this end, we use energy flow contracts, or energy attribute certificates (EACs). Electricity consumption resulting from the company’s growth up to 2040 and 2050 will also come from green electricity sources.

Fresenius Kabi equipped four further production sites with photovoltaic systems in the reporting year. Photovoltaic systems are now in operation at a total of 15 sites, with more planned for the coming years. We have also planned pilot projects in hospitals in order to generate electricity ourselves at other locations.

Increase in energy efficiency

In accordance with our Environmental Policy, we want to use efficiencies in all areas to achieve our climate targets for 2030 and 2040. In 2024, we have implemented and / or are currently implementing a large number of measures to this end.

To increase energy efficiency in buildings and processes, we use improved system monitoring to early identify inefficiencies in the energy use of heating, ventilation and air conditioning (HVAC) systems as well as lighting. We measure the performance of relevant energy consumers and compare them with more energy-efficient systems. This ultimately forms the basis for our decisions on retrofitting. In this way, both efficient and economically viable solutions are implemented. For example, we were able to optimize the use of HVAC units in 2024 through monitoring processes and technical changes like the replacement of more efficient electronic motors.

In the production area, we have implemented efficiency measures such as the replacement of technology and pumps, the reuse of condensate and energy, optimized steam consumption, leakage control and the system design of compressed air in order to reduce energy consumption. We have also exchanged individual parts and replaced appliances with more efficient models. We have improved the performance of cooled and heated machines by refurbishing them or replacing them with newer appliances. The additional insulation of buildings and technology, e.g. pipes and valves, has also contributed to reducing our energy consumption in 2024.

In 2022, Helios Germany drew up a 100-point checklist to help clinics identify potential energy savings. The 100 points on the checklist include measures such as the analysis and optimization of building heating and ventilation systems. The implementation of the 100-point checklist was continued in the reporting year, further reducing energy consumption.

As part of our ambitions with regard to energy efficiency and savings, uninterrupted energy supply is always a top priority for us in order to ensure the safety of patients as well as reliable production and supply. Our energy-saving measures are also geared towards this.

Fuel, technology and process change

When evaluating fuel, technology or process changes in order to reduce our GHG emissions, we consider several factors. The relevant criteria for investment decisions for new technologies are their availability, cost-effectiveness, scalability and reliability.

In our hospitals, the focus is on replacing or recycling anesthetic gases, among other things. Anaesthetic gases used in the operating theatre are released into the outside air via the exhaust air system – where they are more harmful to the climate than CO₂. Anaesthetic gases cause a relevant part of the GHG emissions in a hospital and the replacement or recycling of anaesthetic gases are therefore a major lever in environmental and climate protection. In the reporting year, we continued to work on replacing or recycling anaesthetic gases in our hospitals with more environmentally friendly gases. We also want to reduce fugitive emissions and replace them with lower CO₂ alternatives.

Projects are being implemented at our production sites to reduce steam consumption and install heat pumps.

Electrification of the vehicle fleet

In the reporting year, Fresenius Kabi has started to replace both additional vehicles and tractors in plant traffic with electric alternatives. To promote e-mobility, we are expanding the availability of charging stations at our sites to enable local supply in the future.

Monitoring and renewal of equipment

In 2024, we introduced process monitoring and control systems at sites to better manage the consumption of our energy sources, improve data quality and identify inefficient processes and machines. We have replaced a large number of machines (e.g. compressors, motors, pumps) with more efficient and lower-emission alternatives.

Our goals and ambitions [E1-4] Targets related to climate change mitigation and adaptation [E1-7] GHG removals and GHG mitigation projects financed through carbon credits

In our Group-wide Environmental Policy, we have committed ourselves to reducing our carbon footprint. We aim to reduce our negative impacts on the environment and have set emission reduction targets in accordance with the Paris Agreement.

Our Group climate targets¹:

• By 2030, we aim to reduce all Scope 1 and Scope 2 emissions in absolute value by 50% (gross), compared to the base year 2020.²
• We aim to achieve climate neutrality across the Group by 2040. We therefore want to reduce the absolute value of our Scope 1 and Scope 2 emissions by 100% compared to the base year 2020³. To achieve this, we want to eliminate all avoidable CO₂e emissions (at least 90% gross reduction); we plan to offset unavoidable emissions (maximum 10%) through measures to reduct or permanently remove CO₂.
• Net zero by 2050: We want to achieve net zero along the entire value chain (Scope 1 to 3) by 2050 at the latest. To achieve this, we want to eliminate all avoidable CO₂e emissions (at least 90% gross reduction); we plan to offset unavoidable emissions (maximum 10%) through measures to permanently remove CO₂.

The data on which the climate targets are based can be found in this topical standard, section Metrics, E1-5 Energy consumption and energy mix as well as E1-6 GHG emissions.

CO₂ reduction is also included as an ESG criterion in the long-term variable Management Board compensation (long-term incentive – LTI) at a rate of 25%. The assessment period is four years and the target corridor for CO₂ reduction is aligned with Fresenius’ Group-wide climate targets. Further information on our ESG criteria for Management Board compensation can be found in the standard ESRS 2 General Disclosures section GOV-3 ESG targets in the compensation of the Management Board.

¹ For our targets, we calculate Scope 2 emissions in accordance with the Greenhouse Gas Protocol using the market-based calculation approach. The recorded greenhouse gases (CO₂, CH₄, N₂O, HFKW, PFC, SF₆, and NF₃) are converted into CO₂equivalents. Our Group targets include all financially consolidated units of Fresenius SE & Co. KGaA; our GHG emissions, which are reported under E1-6, correspond to the same reporting scope (financial scope of consolidation). E1-6 also includes our Scope 3 emissions, which are not currently covered by the target of climate neutrality by 2040.

² The reduction target comprises the total emissions of both categories and the target achievement is not analyzed separately by Scope 1 and Scope 2. Of the total amount to be reduced, around 47% relates to Scope 1 emissions and around 53% relates to Scope 2 emissions.

³ Fresenius has an internal recalculation policy that defines a correction of the base value and its triggers. In 2024, the base value was adjusted by including additional entities and emission sources to ensure a complete scope. The targets themselves were not adjusted. The adjustment has no effect on the target achievement as the previous years and the reporting year were recalculated considering the same scope. The base year 2020 is representative in terms of business performance, the available prior-year figures, the associated data quality, and industry benchmarking. Prior-year data was compared accordingly and placed in the business context. if external factors would have an impact, they have been taken into account.

Target setting

Our targets – reduction by 50% by 2030, climate neutrality by 2040 and net zero by 2050 – are in line with the scientific goal of the Paris Climate Agreement to limit global warming to 1.5°C. German and European climate targets and the guidelines of the Science Based Targets initiative (SBTi) were also used as guidelines for setting targets. Our target to reduce our Scope 1 and 2 emissions by 2030 is guided by the criteria for near-term targets defined by the SBTi. Our targets are not externally audited by SBTi.

The SBTi cross-sector decarbonization path was used as a guideline for setting the targets; it aims at achieving a reduction of at least 48% by 2030. Sector-specific decarbonization paths were not utilized. Future economic growth was taken into account in the objectives, as was the influence of increasing emissions depending on business activities and energy sources. The assumed future emissions were analyzed on the basis of the previous year’s figures and extrapolated up to the target year. We have included these growth-related additional emissions in the targets in order to take them into account accordingly in the planning of measures. It was assumed that future growth will be low-carbon or carbon-neutral due to the development of new climate-friendly technologies and their industrial scaling.

Internal and external stakeholder expectations were taken into account when setting the objectives by considering, e.g., investor requirements, initiatives, guidelines, public opinions, and customers’ and employees’ expectations. We also took corporate strategy and national requirements into account. The scope, time horizon, and reduction targets were determined on the basis of internal analyses and benchmarking.

The base value of the targets was adjusted in the reporting year; further information on this can be found in the section Our Group climate targets . Details about made estimates can be found in the following section Metrics, E1-5 Energy consumption and energy mix as well as E1-6 GHG emissions.

We continuously evaluate possible decarbonization levers to achieve our long-term climate targets. In addition to the use of existing technologies, we also consider new technologies, as described in this topical standard, section E1-3 Our actions.

We review our emissions figures on a quarterly basis and monitor the achievement of our targets. In doing so, we look at our progress compared to the base year and target year as well as the annual reduction steps. We evaluate any deviations and take countermeasures if necessary. Our progress is currently in line with our planning. Since 2020, we have effectively reduced our emissions with the help of our decarbonization levers, e.g. the increasing use of renewable energies or their equivalent certificates (see this topical standard, section E1-3 Our actions). No emission reductions achieved before the base year 2020 are taken into account in target achievement.

Approach to reduce remaining emissions

To achieve the targets of climate neutrality by 2040 as well es net zero by 2050, in principle, we want to reduce all emissions as far as possible by means of measures within our own business activities as well as the upstream and downstream value chain as a first step. Therefore, the target for 2030 already provides for a 50% reduction in Scope 1 and Scope 2 emissions in absolute terms. We focus on reducing Scope 2 emissions initially, as technological solutions are available globally. Scope 1 emissions, in contrast, are anchored in processes and require a long-term planning horizon. The focus is on the decarbonization levers of increasing energy efficiency as well as fuel, technology and process change as described in this topical standard, section E1-1 Transition plan for climate change mitigation.

Only subsequently, in a second step, activities for the reduction (carbon credits) or permanent removal of CO₂ will be considered in order to offset unavoidable emissions. To this end, we have stipulated that a maximum of 10% of emissions will be neutralized through reduction or removal and storage activities within and outside our own business activities and the upstream and downstream value chain.

We currently do not carry out any activities to reduce greenhouse gases via carbon removal, carbon storage or carbon credits.

Metrics

Energy consumption and energy mix [E1-5] Energy consumption and mix

In 2024, Fresenius consumed a total of 3,090,443 MWh of energy. In the reporting year, we again focused our activities on energy-efficiency measures and expanding the use of renewable energies throughout the Group. The main energy sources were gas and electricity.

For the calculation, fossil energy consumption of the company’s own business was summed up according to the respective energy sources (e.g. natural gas, diesel, liquefied natural gas (LNG)) based on measurement counter, invoices or estimates. Individual energy sources were determined based on the amount consumed and their gross calorific value. For presentation in the Sustainability Report, we converted the totaled data to the lower heating value (LHV). If no data was available, the energy consumption was extrapolated using reference values. The energy consumption for outpatients clinics, offices, research & development sites, locations with unavailable data, and corporate employees outside Bad Homburg are based on data collected at the Bad Homburg site per FTE (full-time equivalent). The Fresenius Vamed rehabilitation clinics were estimated based on previous year’s data in accordance with our duration of operational control.

The nuclear share of electricity and heating consumed in the upstream supply chain was calculated and totaled proportionately for each country using statistical country information. The data basis was the database of the International Energy Agency (IEA). We evaluated the nuclear share for steam consumed and district cooling on the basis of the individual production sites and calculated it proportionally. The majority of production sites use electricity from renewable sources for upstream cooling processes. In the production sites’ upstream supply chain, the assumption is made that natural gas is mainly used as an energy source for steam.

The renewable energy consumption of the company’s own business was totaled according to the respective renewable energy sources (e.g. biomass pellets, biogas). Individual energy sources were determined based on the amount consumed and their gross calorific value. Purchased green electricity certificates were taken into account accordingly. When green electricity claims are received from national grid consumption, the last available evidence was used, in some cases, this was from the previous year. The summarized data was converted to the LHV for presentation in the Sustainability Statement.

Sites with ISO 50001 certification are audited by an external auditor, e.g., MSzert or TÜV.

GHG emissions [E1-6] Gross Scopes 1, 2, 3 and total GHG emissions

In the reporting year, Fresenius generated a total of 4,199,344 t CO₂e¹.

Our Scope 1 emissions account for 351,128 t CO₂e and increased by 2.0% compared to the previous year (2023: 344,161 t CO₂e). Our Scope 2 emissions (market-based) account for 164,838 t CO₂e through the use of renewable energy certificates, as described in the following. Scope 2 emissions calculated according to the location-based approach amounted to 447,563 t of CO₂e. Scope 3 emissions amounted to 3,683,377 t CO₂e in the reporting year. Increases in emissions and consumption are due to the expansion of business operations.

¹ The Scope 1 and Scope 2 emissions relate exclusively to the entities included in the defined reporting scope (financially consolidated entities of Fresenius SE & Co. KGaA). There are no companies with operational control outside the scope of consolidation. Accordingly, no other data is included in the calculation of Scope 1 and Scope 2.

In comparison to the 2020 base year, we reduced our total Scope 1 and 2 emissions (market-based) by about 27.2%. This puts us on track to meet our Group climate targets.

Biogenic Scope 1 emissions were 36,892 t CO₂e in the reporting year.

You will find the GHG emissions table in section Metrics, with detailed information on Scope 1, Scope 2, and Scope 3.

When purchasing energy, we use contractual agreements that come with various options for energy attributes such as guarantees of origin or renewable energy certificates. In the following table, we show which contractual options are used in our energy purchases and to what extent.

The share of bundled renewable energy certificates includes energy that is purchased together with the physical electricity as part of the same contract. We use guarantees of origin, green electricity tariffs, and power purchase agreements.

The share of unbundled renewable energy certificates describes energy property claims that are purchased from third parties who do not provide the physical energy. We use purchased guarantees of origin for renewable energy claims.

The percentage share is set in relation to the energy consumption on which the Scope 2 emissions are based.

The following definitions and methods are used to calculate our GHG emissions.

Scope 1 and 2 emissions

We have applied the requirements and guidance of the GHG Protocol Corporate Standard when selecting the emission factors for our Scope 1 and 2 emission calculation. CO₂e emission factors were selected based on topicality and availability.

Scope 1 emissions: The energy consumed (higher heating value – HHV) was multiplied by the respective CO₂e conversion factor (DEFRA) and added together. Fugitive emissions were calculated on the basis of the Global Warming Potential using the latest published IPCC values. Scope 1 emissions from regulated emissions trading systems are disclosed based on last available reported data, which could be from previous year.

Biogenic Scope 1 emissions: The consumption of energy obtained from biomass was multiplied by the corresponding CO₂ conversion factor (DEFRA). As we have no further information, it is assumed that biomass was burned and not degraded.

Scope 2 emissions (location-based): The amount of electricity consumed was multiplied by a country-specific CO₂e conversion factor from the IEA. The steam, district heating, and district cooling consumed were multiplied by a uniform CO₂e conversion factor (DEFRA) or US EIA. The conversion factors used do not include CO₂e emissions for biogenic emissions.

Scope 2 emissions (location-based / market-based biogenic emissions): A calculation could not be carried out due to unavailable emission factors. The emission factors available did not fully cover the biogenic emissions from energy conversion.

Scope 2 emissions (market-based): A hierarchy was implemented to calculate the emissions. If supplier-specific emission factors were available, these were used first. If not available, country-specific EU residual mix conversion factors (AIB) were used. If these were not available, country-specific IEA or US EIA factors were used. Where country-specific conversion factors were used, the most recent version was used.

Scope 3 emissions

Scope 3 emissions include all upstream and downstream activities along our value chain. 2023 was the first year in which we disclosed our Group-wide Scope 3 emissions. We disclose the Scope 3 emissions in accordance with the standards set out on pages 8 and 9 of the publication A Corporate Accounting and Reporting Standard – Revised Edition of the Greenhouse Gas Protocol initiative (World Business Council for Sustainable Development / World Resources Institute). 36.2% of our Scope 3 emissions are calculated using primary data obtained from suppliers or other value chain partners. We have applied the requirements and guidance of the GHG Protocol Corporate Standard when selecting the emission factors for our Scope 3 emission calculation.

Unless stated otherwise, all Scope 3 categories follow the same reporting boundary as the Scope 1 and 2 emission calculation. Biogenic Scope 3 emissions are deemed non-material for Fresenius based on the business activities and used energy sources.

Category 1, 2, and 4: The calculation is conducted with a spend-based approach according to the GHG Protocol using the multi-regional input-output analysis method estell. Spendings per product category are multiplied by the emission factors. Emissions are calculated individually for the business segments. The calculation was performed for Fresenius Vamed using a sector-model approach based on revenue.

Category 3: The calculation is based on the annual energy consumption data used to calculate the Scope 1 and 2 emissions and multiplied by a respective upstream emission factors. Current DEFRA / BEIS (Well-to-Tank (WTT) emission factors), IEA and an UBA study are used as sources for emission factors. For electricity from renewables, a global emission factor based on the global renewable mix (IEA) is used. For electricity consumption in Germany, the German equivalent is used. For gas and fuels, the gross cv factors are applied.

Category 5: The calculation is based on tons of waste generated per waste type and waste treatment method, cubic meters of wastewater generated, and relevant emission factors from the sources DEFRA / BEIS, ecoinvent, and Rizan et al. (2021). Waste categories that are expected to be recycled or to end up in an energy from waste (EfW) process are accounted for as 0 according to the requirements of the GHG Protocol.

Category 6: For the operating companies, the activity data is collected via an extract from the service providers Avis, Enterprise, and Amex. Car rental, plane, and train data for Fresenius Helios in Spain comes directly from the travel agency. The emission factors used reflect the Well-To-Wheel (WTW) emissions from energy generation to conversion into kinetic energy on the wheel, in line with the GHG Protocol methodology and SBTi guidelines. Countries where the respective train company declares on its website that all trains are powered by renewable energy are considered with an emission factor of 0. The km traveled with each transportation method are multiplied by the corresponding distance-based emission factor. The calculation was performed for Fresenius Vamed based on average emissions per FTE.

Category 7: The number of employees per business segment is used as the basis for this category. The split of transportation mode is calculated on a regional level based on statistical data for individual countries (e.g. Eurostat). All data on travel distances and travel modes is based on public research. DEFRA / BEIS (WTW emission factors) and ecoinvent are used as sources for emission factors. The distance-based method is applied.

Category 11: This category is only relevant for Fresenius Kabi, as the other segments have no manufacturing / production activities and subsequently no products are sold and used. Within this category, direct use-phase emissions are only generated by electrical products sold by Fresenius Kabi MedTech. Pharmaceutical products do not cause any use-phase emissions and are therefore not relevant. The calculation is based on tank-to-wheel emission factors. The data basis consists of sales data as well as technical information per product for each country, e.g. electrical load, full load hours per day, and lifetime.

Category 12: This category is only relevant for Fresenius Kabi, as all other segments have no manufacturing / production activities and subsequently no products are sold and disposed of. The methodology varies depending on the product and packaging. Emissions are calculated based on sales data, weight data, and statistics on regional disposal methods. Within Fresenius Kabi, the medicinal products themselves are not considered relevant as they are metabolized in the body.

Category 15: This category includes all non-consolidated investments in which Fresenius holds a minimum interest of 20%. The share of the investment is either applied to actual emission data from the company or used to extrapolate emissions based on revenue and EEIO emission factors as stated in the GHG Protocol.

Energy consumption and emissions of locations with ISO 50001 certification are checked in an external audit.