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Contents Letter from the Management 03 We are STULZ 04 06 14 About STULZ Managing Sustainability 20 30 42 50 Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer 60 63 66 68 Key Performance Indicators GRI Content Index About the Report Legal Information 2
We are STULZ Founded in 1947, today STULZ is a leading company in the field of air conditioning. Our core competencies ▪ Development, production, installa- tion, start-up, servicing and mainte- nance of precision air conditioning units, chillers, Air Handling Units, and Micro Data Centers, plus solutions for Liquid Cooling for IT, data centers, medical technology, telecommunications systems and industry ▪ Sales and maintenance of comfort air con ditioning systems and Humidifiers, including water treat- ment for humidifying systems 8 production entities worldwide in Brazil, China, Germany (headquarters), India, Italy, Spain, UK and the USA. To achieve this, we work with an exclusive sales and service network in more than 140 countries. ONE STULZ. ONE NETWORK. Discover the world of STULZ → STULZ.COM/REGIONS STULZ Air Technology worldwide Employees > 3,500 Sales volume approx. € 850 million STULZ Group worldwide Employees approx. 8,200 Sales volume approx. € 1,700 million including further business segments STULZ Sustainability Report 2024 3
Letter from the Management Dear Reader, The 2024 Sustainability Report for the global STULZ air conditioning business builds on our previous accomplishments and is enriched by new features and improvements: We present an update on our key performance indicators and updates on last year’s report across our four key priority areas Sustainable Products, Resource-Efficient Production, Responsible Supply Chain and Good Employer. Moreover, we feature new data such as our Global Carbon Footprint and a deep dive into latest trends in our industry. You will read about Liquid Cooling, Free Cooling, low GWP refrigerants, resource-efficient production methods and how we engage with commu- nities across the globe – because sustainability is more to us than just compliance with regulations and standards. Our product portfolio and customized solutions are the center of our activities. STULZ has a long tradition in energy efficiency, and technological innovation. Our customers require effective, efficient and intelligent cooling solutions for high-performance computing – and we as STULZ need to enable them for their technological journey. We see that the demand for sustainable data centers is increasing significantly worldwide, and we accept the challenge of driving this transformation. EVEN IN TIMES WHEN REGULATORY FRAMEWORKS AROUND ESG ARE BEING RELAXED, WE AT STULZ REMAIN COMMITTED TO SUSTAINABILITY TO STAY ALIGNED WITH CUSTOMER EXPECTATIONS REGARDING CARBON FOOTPRINT AND OTHER ENVIRONMENTAL DATA AS WELL AS SUSTAINABLE SUPPLY CHAIN PRACTICES. IN ADDITION, WE RECOGNIZE ITS STRATEGIC BUSINESS VALUE AS INNOVATIONS AROUND ENERGY EFFICIENCY HAVE BEEN PART OF OUR DNA FOR DECADES AND REMAIN A DRIVER OF OUR LONG-TERM COMPETITIVENESS. Thorsten Weiss, CFO 4
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators Yet, sustainability needs a substantial amount of groundwork. We communicate informa- tion and data on environmental, social, and governance (ESG) aspects of our business transparently, as our customers, investors, and regulatory bodies expect this from us. This implies reporting on relevant data such as refrigerant usage and employee statistics, as well as information on topics of inter- est, although they are less important to our business: An example is water consumption, which is very low for our products, yet we display data. Our goal is to improve our performance and our processes. In this light, we are happy to provide our stakeholders with carbon footprint data for the global STULZ orga- nization for the first time. This is the initial step towards setting reduction targets, and eventually implementing emission reduction initiatives. Similarly, our Code of Conduct for Suppliers and the new supplier relationship management (SRM) tool in Germany lay the foundation for further progress in responsible supply chain management. There is still fur- ther work to master, and we are confident in continuing our sustainability journey, aligned with our business development, in a solid step-by-step approach. This report will present information and examples from different subsidiaries across the global STULZ organization. STULZ operates in a decentralized manner follow- ing a local-for- local approach, which implies that our eight production entities, as well as more than 20 sales and service sites operate according to local demands and practices. In the long term, we need to align key areas of sustainability to manage them more effectively and to follow a common standard. The implementation of our global carbon accounting as well as our ongoing reporting efforts have shown us the benefits of an in- tegrated approach to sustainability reporting. We thank our global team for their ongoing efforts and their dedication in con tinuously improving data collection and quality to ultimately advance our ESG performance. We want to express our continued committ- ment to sustainability and invite you to join us on this journey. Thank you for your interest in sustainability at STULZ - feel free to share your questions and feedback with us. Yours sincerely, Jürgen Stulz Marc-Oliver Stulz Christoph Stulz Thorsten Weiss STULZ Sustainability Report 2024 5
About STULZ PROGRESS BASED ON TRADITION STULZ has evolved from an innovative family-run business into a modern global player. 1947 50s AND 60s 70s Company founder Albert Stulz In 1965, the company’s own air condition- When the data center sector started to paved the way for our enter- ing unit was launched onto the market boom in the 1970s, STULZ was ready and prise with his Electro AS GmbH – a comfort air conditioning system waiting on the market with air conditioning Hamburg in Germany. that cooled and dehumidified the room. solutions and direct Liquid Cooling for The air conditioning system division mainframes. In 1977, we introduced has consistently grown since 1965. precision air conditioning units with a modular design – a groundbreaking innovation that further strengthened our international reputation as a specialist for efficient air conditioning. 6
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators The complete range of air conditioning technology For over 50 years, we have been supplying products, solutions, and services for air conditioning – with our commitment to precision, efficiency and reliability. The STULZ portfolio extends from traditional Room and High Density Cooling to chillers and Air Handling Units all the way to Humidifiers and Micro Data Centers. STULZ is a pioneer for cooling solutions, mission-critical applications and data centers. By virtue of quality, efficiency and sustainability, the company delivers optimal solutions for every require- ment in precision and comfort air conditioning. Leading enterprises in industry, telecommunica- tions, banks and retail rely on our product promise. As an exclusive sales partner for air conditioning systems from Mit subishi Heavy Industries in Germany and Austria, we can offer products that ensure an optimum climate in small commercial buildings or households. Our multifunctional units (for cooling and heating) have excellent energy efficiency, and therefore low energy consumption. Our own Monitoring Software further enhances the portfolio and helps customers deploy made-to- measure air conditioning solutions in the best possible way for their needs. Furthermore, we offer comprehensive services and after-sales support through a worldwide partner network. SINCE THE 80s TODAY AND BEYOND In the 1980s, units with Free Cooling The increasing use of high-performance computers were developed. These Free Cooling requires efficient and reliable management of high units offer the greatest energy-saving heat loads, with innovative cooling solutions increas- potential for data centers, especially ingly in demand. Liquid Cooling emerges as a partic- in cold and moderate climate zones. ularly promising option with STULZ pursuing highly innovative technologies such as direct-to-chip Liquid Cooling, and immersion cooling. Today, STULZ leads the world market in Direct and Indirect Free Cooling solutions. STULZ Sustainability Report 2024 7
Consequently, we are continuously developing our portfolio accordingly, ensuring our products and solu- tions satisfy the needs of the market. In data center air conditioning, STULZ Liquid Cooling solutions are a great choice for cooling servers efficiently and reliably, despite additional heat loads. Our units are helping to bring about global digitalization, and we contribute to a more energy-efficient transformation of business. With 30 subsidiaries, including eight production entities, STULZ has a presence in over 140 countries around the world. Today, STULZ leads the world market in Direct and Indirect Free Cooling solutions. Innovative products and solutions STULZ stands for top-quality air conditioning. Thanks to our global network and comprehensive portfolio strat- egy, today we can satisfy all requirements for precision air conditioning. This is in perfect keeping with our claim: “ONE STULZ. ONE SOURCE.” Precision air conditioning is deployed in data centers, science and medicine, to name a few. Predictive AI (Artificial Intelligence) has for a long time been an in- tegral part of many data center control and monitoring systems. It helps data center operators increase energy efficiency, and enables early detection of impending failures. With the breakthrough of ChatGPT, generative AI is further evolving as a global trend. This development requires growing data and storage capacities, and at the same time, companies strive to manage increasing data volumes with reduced environmental impact. To remain competitive in a dynamic market, STULZ develops new ideas and puts them into practice through future-oriented products and solutions. We invest in research and development to ensure the manufacturing of state-of-the-art technologies, and control systems. For example, we see an ever-growing demand for larger central data centers, while small edge data centers are becoming increasingly decentralized. Other factors changing our industry include 5G and fiber optics. 8
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators Our product portfolio CHILLER UNITS STULZ Chiller Units are developed for maximum relia bility in data centers and industrial buildings. Designed and manufactured under strict conditions, the units ensure the highest possible energy efficiency at any local tem- perature profile – 24 hours a day, 365 days a year. With the Explorer series, STULZ offers a budget-optimized yet state-of-the-art chiller with a high level of flexibility. HIGH DENSITY COOLING STULZ offers a wide range of solutions and systems for direct rack cooling to precisely and efficiently cool high heat loads and hotspots on racks. These solutions provide maximum, reliable, and accurate cooling with minimum utility space. Moreover, with the option of Indirect Dynamic Free Cooling, CyberRow offers high energy-saving potential at high heat loads. LIQUID COOLING STULZ offers integrated Liquid Cooling systems, manu factured and tested, along with individual climate units to complement existing Liquid Cooling infrastructure. From design, and independent product consulting to installation and maintenance – it all comes from a single source. The STULZ Coolant Distribution Unit CyberCool CMU is a central component in both direct liquid-to-chip cooling, and immersion cooling solutions. AIR HANDLING UNITS STULZ Air Handling Units can be individually configured and manufactured to meet a wide range of requirements. From small data centers needing roof installations, to hyperscale data centers without raised floors: Our indoor and outdoor Air Handling Units offer custom-tailored solutions for projects with optimized energy efficiency. CyberWall units, for example, are suitable for indoor applications in hyperscale data centers. STULZ Sustainability Report 2024 9
Our product portfolio ROOM COOLING The air conditioning in rooms housing mission-critical applications requires the reliable and efficient removal of large amounts of heat. With precision air conditioning units from STULZ, our clients can rely on 24/7 availability. Our solu- tions provide continuous air conditioning with op- timized energy efficiency, even at high heat loads. Our CyberAir is among our flagship products. HUMIDIFIERS Computers or hospitals, laboratories or offices – humidification is vital for optimally conditioned air. Furthermore, made-to measure humidifier solu- tions ensure highly efficient production in indus- tries like printing, textile as well as food production and logistics. STULZ UltraSonic humidifying systems provide tailor-made humidification. MICRO DATA CENTERS Micro Data Centers from STULZ are a cost-effective way of providing scalable IT resources that precisely target customer needs, upgrading mission-critical infrastructure or providing additional computing and storage power for the client’s network (edge computing). With the Micro DC, STULZ can offer a complete solution in a single device. MODULAR DATA CENTERS Our modular or containerized prefabricated data centers are built at a STULZ or authorized factory and arrive at a customer site fully tested and ready to be deployed. They are suitable for all data center applications, including the housing of mission-critical IT infrastructure as well as mechanical and electrical plants. A Modular Data Center can be installed externally on a concrete plinth, inside a warehouse – or even in the corner of an office. 10
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators SHELTER COOLING Free Cooling for stand-alone use in modular buildings, con- tainers, air conditioning receiver and transmitter base stations; STULZ Shelter Cooling units are immediately ready for con- nection and use based on the plug-and-play principle. They can be precisely configured to customer-specific needs, and ensure continuous availability around the clock for years to come. Our WallAir unit is installed outside the container, enabling maximum utilization of the interior space. HEAT PUMPS We are committed to using energy-efficient heat pumps, parti- cularly air-to-air and air-to-water models. These technologies can be used for cooling and heating and play a decisive role in energy transition. An example is the Q-ton CO² heat pump. COMFORT COOLING The KX series provides efficient air conditioning in larger buildings. It offers exceptional comfort and energy efficiency. Indoor and outdoor units can be combined with each other in an almost infinite variety of ways, and can be controlled and monitored centrally and remotely. The KX series is manufactured by Mitsubishi Heavy Industries and distributed under our brand S-Klima in Germany and STULZ in Austria. MONITORING We continually strive to improve our cooling systems and solutions, including their control systems, to achieve the best possible results for our customers. That’s why STULZ Digital Solutions was founded: to focus on the development of embedded systems, long-term data acquisition, big data measurement, data analysis and 3D data visualization. CyberHub ECO.DC monitors the data center components and the whole environ- ment (temperatures, humidity, pressure, and energy) around the clock. SERVICE For over 55 years, our customers have relied on the technical expertise, comprehensive capabili- ties, and global availability of our service at STULZ. We ensure trouble-free, economical and pro- fessional operation of technical systems and can take care of the entire application from a single source. STULZ Sustainability Report 2024 11
Our subsidiaries PRODUCTION ENTITIES USA Stulz Air Technology Systems Inc. in Frederick (Maryland) Founded in 2001 ▪ Development, production and distribution of Room Cooling equipment for the US market ▪ Production of CyberWall and other large-scale systems for data center cooling ▪ Assembly of CRAH and FanWall products in Dayton, Tennessee ▪ New site in Denton County, Texas is under construction and scheduled to open in 2025 GERMANY Stulz GmbH in Hamburg Founded in 1947 ▪ Headquarters of the international air conditioning technology organization in Hamburg ▪ Development, production and distribution for Room Cooling, High Density Cooling and chillers Stulz Digital Solutions GmbH in Hamburg Founded in 2014 ▪ Software development site UK Stulz Modular Ltd. in Oxford Founded in 2016 ▪ Development, production and distribution of Micro & Modular Data Centers BRAZIL Stulz Brasil Ar Condicionado Ltda. in Sorocaba Founded in 2015 ▪ Production for the Brazilian market 12 SPAIN Stulz Tecnivel S.L.U. in Madrid Founded in 2016 ▪ Development, production and distribution of Air Handlers, CyberWall units and heat exchangers ITALY Stulz S.p.A. in Valeggio sul Mincio Founded in 1989 ▪ Development, production and dis- tribution of air conditioning units and chillers for the IT industry and the telecommunications sector
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators SALES AND SERVICE SITES AUSTRALIA Stulz Oceania Pty Ltd. and Stulz Oceania (Power) Pty Ltd. in Sydney AUSTRIA Stulz Austria GmbH in Wiener Neudorf BELGIUM Stulz Belgium BV in Brussels BRAZIL Dala Service AR Conditionada Ltda. in São Paulo CHINA Stulz Air Technology and Services Shanghai Co., Ltd. in Shanghai FRANCE Stulz France S.a.r.l. in Rueil Malmaison INDONESIA PT STULZ Air Technology Indonesia in Tangerang MALAYSIA Stulz Malaysia Sdn. Bhd. in Iskandar Puteri MEXICO Stulz México S.A. de C.V. in Mexico City NETHERLANDS Stulz Groep B.V. in Hoofddorp NEW ZEALAND Stulz Oceania Ltd. in Auckland POLAND Stulz Polska Sp. z o.o. in Warsaw SINGAPORE Stulz ASIA HUB Pte. Ltd. and Stulz Singapore Pte Ltd. in Singapore SPAIN Stulz España, S.A. in Madrid SOUTH AFRICA Stulz South Africa Pty. Ltd. in Gauteng SWEDEN STULZ Nordics AB in Stockholm covering Sweden, Norway and Finland THAILAND STULZ Siam Co., Ltd. in Bangkok UK Stulz UK Ltd. in Surrey Production entities Sales and service sites UNITED ARAB EMIRATES Stulz EMEA Center of Excellence - FZCO in Dubai STULZ Sustainability Report 2024 13 CHINA Stulz Air Technology and Services Hangzhou Co., Ltd. Founded in 2013 ▪ Development, production and distribution of products for the Chinese and Asian markets INDIA Stulz-CHSPL (India) Pvt. Ltd. in Mumbai Founded in 2006 ▪ Development, production and distribution of local products for the Indian and Asian markets
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators Our organizational structure for ESG management Our progress in sustainability management and re- porting is the result of the joint effort of many players. A team of members from various departments and all our global sites is actively involved in compiling infor- mation and data for our global Sustainability Report. The Sustainability Team is led by Environmental and Product Management representatives from the German headquarters working in tandem on behalf of Executive Management. The representatives from all production entities and sales and service sites coordinate the work together with their local management. Ultimately, STULZ Executive Management is respon- sible for managing our sustainability efforts. It will also be responsible for future tasks, such as setting goals, allocating resources for sustainability management, and complying with regulatory requirements. The Executive Management is functioning as the highest governance body. The international Steering Committee acts as a link to Executive Management, both in reporting and in overall sustainability management. It includes members from Executive Management, Quality Management, and Product Management. The Steering Committee approves the Sustainability Report, takes strategic decisions and is responsible for communicating critical concerns. Our Sustainability Team holds weekly meetings with members of the Steering Committee. The Sustainability Team analyzes and implements in- ternal and external requirements in ESG (Environment, Social, Governance). At the headquarters in Germany, various departments, such as Marketing, Product Management, Purchasing, and HR are involved in these activities. The organizational structure for managing sustainability with representatives from various levels and departments at a global level was established during the reporting processes. It will be further devel- oped around topics such as occupational health and safety and waste management. For our production sites, we work with management systems. Additionally, across the global organization, international entities build structures according to local needs. Two examples: In Germany, the Works Council plays an important role, representing the interests of our workers, in accordance with the German Works Constitution Act. It currently consists of five women and eight men and monitors compliance with legislation, collective bargaining agreements and work agreements. It organizes working committees and is engaged in legal issues, anti-dis- crimination, equality, social benefits, and environmental concerns. In Brazil, the S.O.L. Program is a quality tool for continu- ous improvement in daily work. S.O.L. is the Portuguese abbreviation for Safety, Organization and Cleanliness. STULZ Brazil is regularly audited in line with S.O.L. and performance improvement is monitored. Management systems across the STULZ production sites ISO 9001 Quality management ISO 14001 Environmental management ISO 50001 Energy management ISO 45001 Occupational health & safety management NEW: STULZ Brazil STULZ China STULZ Germany STULZ India STULZ Italy STULZ Tecnivel (Spain) STULZ Modular (UK) STULZ China STULZ Germany STULZ India STULZ Italy STULZ Tecnivel (Spain) STULZ Modular (UK) STULZ Italy STULZ China STULZ India STULZ Modular (UK) STULZ Sustainability Report 2024 15
Guidelines and standards for our ESG governance STULZ has committed, at the highest level, to act responsibly and sustainably, and to treat people and the environment with the greatest care. We attach particular importance to respect for human rights and are commit- ted to complying with internationally recognized stan- dards such as the ILO Core Labor Standards and the OECD Principles. High quality standards have been defined for our products in terms of safety, data protection, health and safety, and environmental protection. Our fundamental obligations are embedded in guidelines, such as security and data protection management and corporate conduct, and in quality and environmental policies. These commitments have been established by our Executive Management and are shared with employees and stakeholders through our internal communication channels. The implementation and monitoring of com- pliance with these guidelines are the responsibility of the area managers. We have established Codes of Conduct across the worldwide STULZ organization, which set out clear ethical standards and behavioral guidelines. In some cases, these are supplemented by rules for employees to fulfill the national and international requirements as far as possible. The German headquarters has published a Code of Conduct for Suppliers to set ethical standards in the supply chain. Through regular due diligence of voluntary commit- ments, we ensure that our business activities and supply chain conform to high ethical, social and ecological standards. The systematic monitoring and prevention of potential risks, such as human rights violations, environ- mental pollution, corruption and other negative impacts, are future tasks for STULZ. Risk management, environmental and energy manage- ment, quality management and occupational health and safety management are an established part of our everyday practice. Moreover, at several sites we have introduced a whistleblower system, which gives our workforce and in some cases, third parties the oppor- tunity to report concerns anonymously, to effectively identify and tackle potential problems or violations of our guidelines and standards. WE ARE PROUD TO HAVE SUCH A GREAT MANAGEMENT STRUCTURE AT STULZ CHINA: OUR SITE IN HANGZHOU IS CERTIFIED BY SEVERAL ISO STANDARDS AND MANAGED BY GUIDELINES AS A QUALITY POLICY, ENVIRONMENTAL POLICY, OCCUPATIONAL HEALTH AND SAFETY POLICY AND A LABOR AND SOCIAL RESPONSIBILITY POLICY. Helen Fu, China TQM Director STULZ China OUR COMMITMENT TO THE SDGS The United Nations approved the 17 Sustainable Development Goals (SDGs) in 2015, to be achieved by 2030. All players – including corporations – are requested to make their contribution. At STULZ, we substantially contribute to these three SDGs with our products and other sustainability activities. → SDGS.UN.ORG/GOALS 16
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators FOUR MATERIAL TOPICS WITH SPECIFIC ASPECTS Sustainable Products ▪ High quality and safety standards ▪ Energy efficiency ▪ Low GWP and natural refrigerants ▪ Circular economy Resource-Efficient Production ▪ Diligent energy consumption and energy saving Waste prevention, reduction and reuse Careful handling of hazardous materials ▪ Reduction of greenhouse gases ▪ Efficient water use ▪ ▪ ▪ Resource-efficient logistics Responsible Supply Chain ▪ Ethics and compliance ▪ Responsible purchasing ▪ Managing our supply chain Good Employer ▪ Occupational health and safety ▪ Training and career management ▪ Diversity, equality and inclusion ▪ Modern work environment IT IS AMAZING HOW THE GLOBAL SUSTAINABILITY TEAM HAS DEVEL- OPED. YOU CAN RECOGNIZE THE GROWING IMPORTANCE OF SUSTAIN- ABILITY WORLDWIDE FOR STULZ AND OUR STAKEHOLDERS. A CONSISTENT GLOBAL UNDERSTANDING AND OUTCOME ARE ACHIEVED. OUR GLOBAL NETWORKING ON SUSTAINABILITY HAS BEGUN TO GENERATE SYNERGIES. Jan-Lucas Kinne and Ludger Ecke, Sustainability Team Material topics The identification of our material topics lays the founda- tions for informed reporting and effective sustainability management at STULZ. These topics are strategic pri- orities for the company and form the basis for the con- tinuous development of our sustainability management program. The material topics were initially defined for our first Sustainability Reports – in close consultation with Executive Management. They were reviewed and confirmed for the global STULZ organization in 2024. During these processes, we identified the requirements that STULZ must fulfill in terms of sustainability. The dynamic market environment, in particular customers, suppliers, competitors, and regulatory requirements, delivered valuable information on STULZ’s impact on ESG topics. Our four material topics cover several specific aspects which we describe in detail in the re- spective chapters. STULZ Sustainability Report 2024 17
COMMUNICATION WITH STAKEHOLDERS The Sustainability Report forms the international framework for regularly and transparently informing various stake- holders about our commitment. It can be downloaded on our website. → STULZ: SUSTAINABILITY REPORT We promote sustainability on our products through global activities and communica- tions on the STULZ websites. We want to encourage customers to make informed decisions, for example on energy-efficient products. → STULZ: PRODUCTS On social media, we explain technological matters and keep readers informed about the latest developments in our products and services. Transparency, innovation, and approachability are extremely import- ant to us, and we incorporate feedback in our product innovation processes. Further communications include, among others, events within our global organization and participation at industry events and trade fairs. In regular conversations with custom- ers or suppliers we coordinate with these stakeholders. The STULZ sales offices around the world operate independently and are guided by local and regional needs. Our stakeholders Our stakeholders were initially identified as part of our ISO certification process (ISO 14001) at our German headquarters. These four groups are therefore also relevant to the global business activities of STULZ. There are currently no vulnerable groups or groups in need of protection among our stakeholders. We regular- ly review the expectations and concerns of our stake- holders and incorporate the findings into the regular review of our material topic processes and into strategic decision-making in sustainability. Our stakeholders and their expectations Customers, including many large, international companies, are demanding greater transparency regarding our efforts toward sustainability. They want long-lasting, energy-efficient products and reliable services. Customers also expect STULZ to align with political framework conditions, such as conditions governing climate protection and the supply chain, for example. Suppliers play an essential role for stable, reli- able supply chains, which are vital to our success. Reliability and partnership are valuable assets on which our relationships should be based. The general public covers various institutions and individuals, for example at our sites and in the business environment. Their expectations are extremely diverse and multifaceted. Here at STULZ, we want to act reliably, with commitment and integrity. Employees expect STULZ to be an attractive employer, offering opportunities for progression, and with high standards of occupational health and safety. Other requirements are job security, independent working and reliable, transparent communication. 18
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators Memberships and cooperations STULZ is a member or associate of various industry-related organizations across the countries we operate in. With these commitments, we want to actively move forward with changes and advances in our industry, develop innovative solutions, and do our bit to get the air conditioning industry on track toward sustainability. → STULZ: ASSOCIATIONS | INDUSTRY PARTNERSHIPS & MEMBERSHIPS EXAMPLES OF OUR MEMBERSHIPS AND COOPERATIONS The FGK (Fachverband Gebäude- Our US entity is a member of ASHRAE, a global society advancing human well- Klima e. V.) is a leading industrial being through sustainable technology for the built environment. association for air conditioning STULZ is also associated with ASHRAE Technical Committee TC 9.9, which is and indoor air quality in Germany. concerned with all aspects of mission-critical facilities, data centers, technology It advocates the interests of our spaces, electronic equipment and systems. industry with market partners, Across Europe, we cooperate with the EN 50600 series, a framework of standards politicians, standardization insti- and technical reports covering the design, operation and management of data tutes and the scientific community. centers. STULZ is a member of the German zazione. This is the Italian association federated with Anima Confindustria, which federal association bwp (Bundes- represents manufacturers of heating, ventilation and air conditioning systems verband Wärmepumpe e. V.) for buildings and industrial processes. STULZ S.p.A. in Italy engages with ASSOCLIMA – Costruttori Sistemi di Climatiz- which is committed to establishing heat pumps as an efficient renew- able air conditioning solution. Some employees at STULZ Modular (UK) are member in the Institution of Mechanical Engineers, a global community for lifelong learning and space for innovation. STULZ Modular (UK) is also a member of the Uptime Institute, the Standard bearer for Digital Infrastructure performance. STULZ Sustainability Report 2024 19
Sustainable Products Where product sustainability is concerned, we are and will be focusing on four key areas across the global STULZ organization: High quality and safety standards Energy efficiency Low GWP and natural refrigerants Circular economy 20
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators Sustainability in our products and solutions Throughout our global organization, numerous local and regional regulations apply to sustainability aspects. In Europe, the F-gas Regulation is highly relevant. In the Nordic countries, there are country-specific rules for the GWP of refrigerants. In Singapore, there is a Green Labeling Scheme that requires a minimum standard in energy efficiency for both products and systems. Several countries have health and safety acts as well as equality acts in place. Our customers also expect us to manage a broad range of sustainability topics with some similarities across the global organization. Examples of product-related infor- mation requests include carbon footprint data and ener- gy efficiency data for products, information on recycled materials used, minimum life cycle requirements, and transparency concerning policies and objectives such as governance, climate protection and refrigerants. There are currently only isolated, local institutions or standards that independently test the efficiency of equipment for data centers. Therefore, market-based comparisons of the energy efficiency of air conditioning units are not possible. The indicator PUE measures Pow- er Usage Effectiveness and is one of the major indicators in data centers. The smaller the PUE, the more efficiently energy is used. In some areas, we are already helping the market to move along with the energy transition: For example, some heat pumps and air conditioning units from the S-Klima range have proven performance indica- tors (Seasonal Coefficient of Performance, SCoP), which meet the stringent criteria for government funding for in- stallation in private households. In the European market, the Eurovent certification confirms the technical data and efficiency values of our products from Mitsubishi Heavy Industries, confirmed by an independent test laboratory. SPECIALIST IN COOLING With our subsidiaries and a major partner network on all continents, STULZ has a presence in over 140 countries around the world. This allows us to distribute our broad product portfolio, which includes precision air conditioning units, chillers, micro data centers and software for mission-critical cooling, to our diverse markets and customers. Our sales are solely to B2B customers, including certified specialist firms in refrigeration, air conditioning and heating. We use the STULZ brand for our own products. Our S-Klima brand exclusively distributes premium climate systems from Mitsubishi Heavy Industries in Germany and offers its own complementary prod- ucts and STULZ humidification systems. At S-Klima, refrigeration and air condi- tioning companies are the most important customer groups. In Germany, the software provider SDS complements our portfolio with solutions such as CyberHub. From development, manufacture, installation and start-up to the servicing and maintenance of equip- ment, STULZ covers a broad spectrum in the value chain. A committed team of ser- vice employees reliably takes care of our precision and comfort air conditioning units with maintenance, servicing and repair during their life cycle. The CyberCool CMU by STULZ enables up to 40% energy savings in data center cooling and supports PUE values as low as 1.1 through highly efficient direct-to-chip Liquid Cooling. With the ability to handle rack densities up to 120 kW and reuse heat at temperatures up to 60 °C, it combines high-performance cooling with measurable sustainability benefits. STULZ Sustainability Report 2024 21
Almost all STULZ production sites have their own Test Center for testing products, functions and prototypes. Our production sites in Europe, China, India and Brazil have management systems that are certified according to the ISO 9001 (quality) standard. This includes our supplier management, design verification, and production-related inspections. STULZ offers precision air conditioning units for use 24 / 7 / 365. Our units are designed for continuous operation 24 / 7 and take into account the requirements of the ASHRAE (American Society of Heating, Refrigerating and Air-Conditioning Engineers) for efficient data center operation. When developing our units, we aim to achieve a service life of 10 to 15 years. However, some of our equipment has been running reliably for up to 20 years. They are service-friendly, with simple replacement of wearing parts. In individual cases, equipment can easily be converted to suit changed operating conditions. In addition, the option of remote monitoring (Building Management System) helps to ensure safe and reliable operation and dispenses with the need for the physical deployment of a service engineer in most cases. We have started to increase customer satisfaction with a major Project for After-Sales Service (PASS). This was done with the aim of increasing process efficiency and achieving an effective exchange of information with our customers. We have analyzed the entire process chain from order entry through production, delivery and ser- vice to the end of the product life cycle. In Germany and the USA, we have started initial projects such as a ticket system and a service level concept. We intend to provide our customers with direct support from our company based on their order information. This is done directly, digitally and with maximum efficiency. High quality and safety standards Our products and solutions satisfy the highest quality standards expected by our customers and comply with relevant European regulations. This applies to our own STULZ brand as well as the products under the S-Klima brand. For this, we meticulously monitor the product certificates provided by our suppliers, to make sure that requirements are met. All the products and solutions we sell are in line with central industry-specific regulations. Chief among these are the CE Declaration of Conformity, the Energy Efficiency Directive, the Ecodesign Directive, the F-gas and REACH Regulations and the European Machinery Directive. Directives on the leaktightness of refrigerant circuits were also adopted as part of the Kyoto Protocol and Paris Agreement on climate change. Our units bear a special label as proof that they have passed the leak test. With the CE label, we declare our compliance with safety and quality standards according to European standards and directives. STULZ GmbH has a certifi- cate that attests not just to the high quality of our units, but also to their energy efficiency. In acquiring this seal of approval, we have also committed ourselves to providing spare parts for all our equipment for at least ten years after discontinuation of the product. 22
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators Thriving Liquid Cooling –– WHY LIQUID COOLING MATTERS When air cooling a data center, the separation of the data center into hot and cold aisles in a process known as containment, achieves a power density per rack of roughly 50 kW – more than adequate for many IT applications. For high-performance artificial intelligence systems, this is not sufficient at all. –– WHAT LIQUID COOLING ENABLES Liquids can absorb more heat than air, which means that the power density can be signifi- cantly increased: With Liquid Cooling, figures of 120 kW per rack can be achieved with- out problem, even power densities of up to 250 kW. –– HOW THE TECHNOLOGY WORKS IN STULZ PRODUCTS If Liquid Cooling is used, most of the heat transfer takes place in a closed system without an intermediate medium. Additional air cooling is only required for cooling certain components such as power supply units. As it requires less room, Liquid Cooling is also ideal for edge lo- cations with little space and frequently chang- ing ambient temperatures. There are currently two versions available, which differ in design and efficiency: immersion cooling and direct-to-chip Liquid Cooling. A Cooling Distribution Unit (CDU) for use in Liquid Cooling systems is a prod- uct developed and produced by STULZ and represents a huge technological leap forward. The CDU is a central component in both direct-to-chip and immersion cooling solutions to maximize heat exchange within a limited space. We produce them locally in Germany as well as in China and in India. An innovative hybrid data center Liquid Cooling solution from STULZ enables energy-efficient and cost-efficient operations for a University’s leading super computer. It works with direct-to-chip Liquid Cooling for components with higher heatload, includ- ing processors and memory devices. The result: a low PUE of 1.13 and a reduced carbon footprint. On an average load of 75%, electricity consumption is reduced by 27% per year. STULZ is a major player in the global implementation of Liquid Cooling solutions. STULZ Sustainability Report 2024 23
Energy efficiency Our industry can make a significant contribution to the achievement of environmental and climate goals, and at STULZ we want to be actively involved. We are working to bring technological progress and sustainability into harmony, so that our products achieve resource effi- ciency, reduced operating costs and a smaller carbon footprint. With precision air conditioning units, the most important levers for optimum energy consumption are: ▪ maximized heat exchanger surface areas ▪ ▪ optimized air conduction ▪ carefully coordinated components. filter surface areas In our S-Klima line, energy efficiency is achieved by: ▪ the use of energy-efficient air conditioning systems and Humidifiers inverter technology, especially the “HyperInverter” label denotes units that have been specially trimmed for energy efficiency ▪ ▪ heat pumps and cooling solutions ▪ suitable Monitoring Systems. We have a range of energy-efficient products and technologies and demonstrate some examples (see page 26). What’s more, we are also developing products and system solutions for efficient waste heat recovery, in order to significantly reduce CO² emissions. ESTABLISHING A HIGHER STANDARD In 2024, STULZ Oceania made con- densers with EC fans standard for our air-cooled DX solutions. These provide significant energy savings of about 35% over AC fan condensers which were the previous default offering. STULZ Oceania 24 Energy-efficient products should also run on an envi- ronmentally friendly energy mix. The electricity mix is an important factor for the carbon fooptrint of STULZ and our customers due to the high electricity consumption during the use phase. We tell our customers about the advantages of using renewable energy. The first projects using energy supplied directly from wind turbines and solar panels have already been successfully implement- ed with customers, and we are currently working on a standardized solution. FREE COOLING We are committed to delivering energy- efficient solutions to our customers. One of the most promising ones currently is Free Cooling. Through this technology, we minimize the carbon footprint and effectively lower the operating costs when cooling our customers’ infrastructure. Cooling is provided by natural cold air instead of using mechanical methods (compressors). High-efficiency air conduc- tion is also key: By designing the surface areas of heat exchangers and filters to be as large as possible, we achieve maximum energy efficiency values and can therefore exploit existing efficiency potential to the max. Free Cooling cuts energy consump- tion by over 90% which results in low carbon emissions. An example is our CyberCool Explorer WS chiller which is specifically designed to meet the cooling needs of data centers and the integrated Free Cooling ensures high energy savings. In these chillers, we also use low GWP refrigerants such as R513A or R1234ze.
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators LAUNCHING ENERGY-EFFICIENT PRODUCTS STULZ Italy In 2024, STULZ Italy developed two high-density CW air conditioners with market launch in 2025. Both deliver major energy efficiency gains: CyberRack SideCooler CyberRack Active Rear Door Energy efficiency ratio (EER) +12.5% Sensible Cooling +25% +83% +37% As part of the cooperation with ASSOCLIMA, STULZ Italy helped define a proposal of standard efficiency conditions for CRAC and mono-block units. This would prepare including this equip- ment into the Ecodesign Directive standard and thus, foster comparability within our industry. ENVIRONMENTAL IMPACT OF OUR PRODUCTS Carbon footprint data and other environmental impacts over the product’s life cycle become increasingly important to our customers and other stakeholders. While measuring carbon footprints is already widespread in other industries, our industry is just beginning to do so. STULZ has recently conducted an Environ men- tal Product Declaration (EPD), a com pre hen- sive and detailed analysis covering the product’s life cycle based on international standards (ISO 14025). Being third-party verified, EPDs repre- sent the highest standard of credibility and depth in sustainable product data but are very resource intensive. Our EPD applies to a specific product configuration and displays hotspots and areas for improvements in the life cycle. We review other approaches, such as product carbon footprints, which solely focus on emis- sions and strive to automate data collection and document generation. We also consider industry initiatives such as TM65, developed by the CIBSE association (Chartered Institution of Building Ser- vices Engineers) based in London. This pragmatic approach allows simplified calculations based on conservative assumptions and generalized data. For the CyberAir 3PRO DX (cooling capacity: 37.1 kW), we measured the carbon emissions (Global Warming Potential, GWP) per unit across the life cycle stages (cradle to gate). 2024 Product GHG emissions Total: 3,590 kg CO²e Raw material extraction Manufacturing Transport to the customer Transport to STULZ 4% 3% <1% 92% We work on scalable solutions to provide accurate sustainability data across our product portfolio. STULZ Sustainability Report 2024 25
EXAMPLES OF ENERGY-EFFICIENT PRODUCTS AND SOLUTIONS The CyberAir 3PRO series is the result of over 30 years of project experience at STULZ and ensures uninterrupted data center operation. Aligned with ASHRAE standards, it combines reliability, precision, and energy efficiency—minimizing operating costs and carbon footprint. STULZ Air Handling Units can be individually configured and manufactured to meet a wide range of requirements, from small data centers with the need for roof installation to hyperscale data centers without raised floors. CyberWall units, engineered and produced in Hamburg, are compact and easy to transport. Our CyberWall combines maximum cooling capacity with minimum power consumption. The UltraSonic Humidifier generates an extremely fine mist that's easily absorbed by the ambient air. By further developing this technology for more than 40 years, today it achieves an energy consumption of 60 W per 1 kg/h of humidification capacity. This makes it approximately 93% more effective than conventional steam humidifiers. Extremely durable components and no need to replace the steam cylinders add to the resource-efficient operations. STULZ Shelter Cooling units are designed for air conditioning containers, modular buildings, and receiver and transmitter base stations with a plug-and-play principle. Products such as WallAir for outdoor use and TelAir for indoor installation guarantee reliable and efficient operation all year round with long maintenance intervals. The low CO² emissions are the result of Free Cooling, which cuts energy consumption by over 90%. The CompTrol system ensures optimal Monitoring of our comfort air conditioning units. It records operating temperatures year-round and enables enhanced energy efficiency through the “automatic temperature control” function. CyberHub ECO.DC is an intelligent system for Monitoring and optimizing the data center. It displays load capacity and cooling performance while automatically suggesting improvements. CyberHub allows the efficient use of cooling units and generates cost savings through low energy consumption. 26
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators Low GWP and natural refrigerants Refrigerants are an essential element in almost all our products, as air conditioning units and cooling systems cannot run without them. As a manufacturer, we are de- pendent on what refrigerants and cooling components are available on the market and what our customers require. STULZ takes responsibility in a significant area: We attach great importance to preventing leaks in re- frigeration circuits through the tightness of our systems. −9% refrigerants used in our production entities compared to 2023. Many popular chemical refrigerants have Refrigerant Safety Classification. This means that they are highly efficient and optimized for use in our product portfolio. Nevertheless, they have a high GWP, meaning that they contribute to global warming. It is our responsibility to minimize the use of refrigerants with a negative impact on the climate, while gradually transitioning to refriger- ants with a lower greenhouse effect. Low GWP refrigerants are better for the environment due to their lower greenhouse effect. Many customers still demand traditional, conventional refrigerants, basically for two reasons: ▪ ▪ Conventional refrigerants are considerably more efficient in refrigerant circuits. Natural refrigerants have adverse characteristics, such as high flammability (propane) or toxicity (ammonia). Therefore, their use in customers’ systems entails complex safety measures. The flammability poses a significant safety risk especially in confined technical environments such as 4G/5G shelters or Point-of-Presence (POP) stations – a fire can damage critical infrastructure and lead to wide- spread service disruptions. Despite their disadvantages, we assume that the market will shift toward natural refrigerants in the future. There are more incentives in the market, for example through the F-gas Regulation, which are making low GWP refrigerants much cheaper. We are preparing to adapt our products with refrigerant alternatives. We also work with our component suppliers to achieve this and raise awareness with customers. The following illustration shows the share of refriger - ants by their GWP that STULZ purchased for product manufacturing in 2024. Compared to 2023, we could not yet switch notably to refrigerants with less GWP. A reason for this lies in the production of larger units that use refrigerants with higher GWP, demanded by our customers. Although overall usage of refrigerants grew in 2024, our production entities could reduce their use bei 9%. 2024 Used refrigerants, by Global Warming Potential (GWP) ≤ 150 GWP 151 – 1,000 GWP 1,001 – 1,500 GWP > 1,500 GWP NATURAL AND LOW GWP REFRIGERANTS ARE AN IMPORTANT TREND IN OUR INDUSTRY. WE WORK HARD TO INCREASE THEIR APPLICATION IN OUR PRODUCTS AND PROMOTE THEIR SAFE USE IN OUR CUSTOMERS' APPLICATIONS. Matteo Foroni, Product Manager Shelter Cooling Solutions STULZ Italy STULZ Sustainability Report 2024 27
There are two short-term alternatives STULZ introduced. The refrigerant R513A with a GWP of 631, is available for the German and the Italian markets. It can currently be used in CyberAir 3PRO, as well as in the Shelter Cooling Line at STULZ Italy. It has the great advantage of being non-flam- mable and non-toxic. In safety class A1, R513A offers a safe alternative to natural refrigerants. The refrigerant R454C (GWP of 148) is an alternative which already meets today's F-gas Regulation requirements. Due to the small filling quantities, the classi- fication as A2L (flame-retardant) is less critical. Transition to eco-friendlier refrigerants The transition to eco-friendlier refrigerants with a low GWP is an important trend in our industry. These are generally natural refrigerants, but short-term alternatives with lower GWP are needed, too. The F-gas Regulation has set a timetable for the phase-out in Europe until 2050 across different product ranges. Natural refrigerants are better for the environment due to their lower greenhouse effect. We are already using natural refrigerants such as hydrofluoroolefins, including R1234ze with a GWP of less than 1. In S-Klima products, the natural refrigerant R744 (CO²) with a GWP of 1 can be applied. We plan to use R290 (propane) in future, which has a low GWP of 3. Its excellent thermodynamic properties enable high energy efficiency. It is flexible to use as it can be mixed with numerous oils. Its high flammability, however, is a disadvantage. Many natural refrigerants have adverse character- istics, such as high flammability (propane) or toxicity (ammonia). Their use entails complex safety measures in customers’ systems. The use of refrigerants depends on component availability and the balance between safety and efficiency. ▪ ▪ ▪ ▪ 28
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators STULZ Germany STULZ Italy ECO-FRIENDLIER REFRIGERANTS STULZ S.p.A. is advancing sustain- able design with low GWP refriger- ants. In 2024, STULZ Italy began developing chillers based on the refrigerant R32. R32 has a GWP of 675, which is about a third of the GWP of 2,088 for the standard refrigerant R410A. Furthermore, R454C, an option with a GWP of 148, will be available in 2026 as an additional alterna- tive for products developed in Italy – aligning with upcoming F-gas Regulations while ensuring safety and efficiency. In Germany, the CyberAir Mini is now available with R454C, thus a GWP of 148 compared to R410A. This is a further extension after the CyberCool Indoor has been available with the natural refrigerant 454C since 2023. Circular economy STULZ meets the reporting obligations of the European Directive on Waste Electrical and Electronic Equip- ment (WEEE). The German STULZ GmbH is registered accordingly, and registration for the STULZ brand is in progress. The circular economy is set to become a major focal point for our industry over the next few decades – tying in with efforts in the European Union to close loops by 2050, which we are keeping a close eye on. We are currently targeting our efforts at various aspects of the circular economy, to fit in with the different re- quirements of our individual business units. This includes equipment recyclability, component reuse and use of recycled materials in products. What's more, STULZ has the potential to develop these themes on a global scale, depending on the initiatives of the different sites. STULZ France, for example, approached circularity by focusing on sustainable design, extended warranties and upgrade programs for customers. As for recyclability, most of our products are screw-fastened constructions which can be easily disassembled. We assume that, due to their value, most of the materials in our products such as metal components, copper or aluminum will be disassembled and reused or recycled. We already comprehensively cover recycling aspects in our use of packaging. The plastic films and wooden pallets we use are fully recyclable. Furthermore, we have established recycling and reuse loops for various materials in our production in Germany. Recyclable materials were identified as a significant aspect in our Environment Product Declaration project in Germany: The examination of CyberAir confirmed that it has a high proportion of recyclable material. We are in the planning stages of a recovery scheme, in collaboration with a German partner from the electronics sector. With this system, we aim to refurbish fans and recycle refrigerant, steel, and copper. We will increasingly work together with partners in future on these complex interdisciplinary issues. We have not yet set up any take-back schemes for our products. However, numerous registrations guarantee our compliance with legislation on electrical waste and packaging in the European market. We are therefore also involved in the circular system through regulatory requirements. Take-back is carried out by specialist companies. STULZ Sustainability Report 2024 29
Resource- Efficient Production As a manufacturing company, resource efficient production plays a major role in our business. We have defined six environmental aspects as priorities: Diligent energy consumption and energy saving Reduction of greenhouse gases Efficient water use Waste prevention, reduction, and reuse Careful handling of hazardous materials Resource-efficient logistics 30
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators Strategic importance of environmental protection Our production sites in Europe, China, India and Brazil have management systems that are certified according to the ISO 9001 (quality) standard. The European and Asia Pacific production sites are also certified according to ISO 14001 (environment) and thus operate according to the highest standards in environmental management. Through the integrated quality and environmental man- agement systems, we ensure compliance with principles and requirements. They are monitored annually by an independent organization and are certified on a regular basis. Quality and environmental management are promoted and further developed by the plant management. Annual targets are set which we back up with measures and responsibilities, and we monitor these in the following year’s review. We comprehensively assess our environ- mental performance in an annual environmental and quality management review. This includes analyzing key performance indicators and actions taken as well as processing the results of our ISO audits such as any non-conformities and corrective actions to be taken. As STULZ, we share information, as required, about energy use, goods and services for environmental protection, and climate-impacting substances (F-gas). Through our global involvement in various standards committees and specialist working groups such as ASHRAE, we share our expertise and are committed to improving guidelines and specifications for the sustain- able development of our industry. POLICIES AS BASELINE In the quality and environmental policy, we emphasize the significance of envi- ronmental protection for our business activities. The importance of environmental protection is also a key topic within the STULZ GmbH policy statement on safety, health, protection of the environment and data protection. Taking care of the envi- ronment is further included in our Codes of Conduct. The European and Asia Pacific production sites operate a certified environmental management system according to ISO 14001. WE EXPLORE A WIDE RANGE OF LEVERS FOR EFFECTIVE AND RESOURCE-EFFICIENT PRODUCTION: AMONG THEM ARE RESTRUCTURING OUR PRODUCTION PROCESSES AND PURSUING FOSSIL-FREE HEATING SYSTEMS, TO OPTIMIZE THE PRODUCTION FLOW. FOR EXAMPLE, RELOCATING WORK STATIONS HAS REDUCED INTERNAL TRANSPORT ROUTES FOR COMPONENTS AND SIMULTANEOUSLY IMPROVED ERGONOMICS WITHIN OUR FACILITIES. Felix Petschke, Head of Production STULZ Germany STULZ Sustainability Report 2024 31
Diligent energy consumption and energy saving To save energy, we have put a range of measures into practice in production and management: Energy management is taken care of by the manage- ment of the production sites and the sales and service sites. The certified environmental management systems (ISO 14001) include energy consumption. Our production site in Italy additionally operates an energy management system (ISO 50001). We aim to include LED lights worldwide in all production sites. In the reporting year, total global energy consumption at STULZ was 18,212,461 kWh, about 9% more than in 2023, mainly due to producing a different product portfolio. 2024 Global energy consumption, by type Total: 18,212,461 kWh 59.2% Electricity 32.3% Gas 3.5% Heating oil 5% Other Other including district heating and own produced solar; not including France. STULZ China INSULATING THE FACTORY ROOF STULZ China upgraded the roof of the old factory building by adding an insulation layer to the roof. This reduces the fluctuation of heat in the factory building, decreases electricity consumption and contributes to reducing carbon emissions. 32 ▪ ▪ ▪ ▪ ▪ ▪ ▪ In Germany, we set up for fossil-free heating, building renovation and solar installation. Ongoing change of lighting to LEDs throughout the company Switching to modern heating systems Use of non-residential thermostats in stairwells and washrooms Use of heat recovery systems to reuse waste heat for our own test benches and data centers Installing micro switches in vacuum systems, so that they only run when needed Adapting and optimizing production spaces to reduce heating needs in production, thus countering energy losses ▪ Heating set to 19–20 °C in winter ▪ Training and awareness-raising among workers regarding office heating ▪ Software-aided central planning for service vehicle deployment to reduce distances, thus saving fuel At our sales and service sites, the influence we have on energy infrastructure is limited, as we do not own the properties. However, since these sites are purely offices, the impact there is comparatively insignificant. We see it as our future responsibility to integrate a sustainability aspect into the selection of rental properties, such as modern heating systems, the use of renewable energy, waste concepts or modern building management. STULZ strives to increase the use of renewable energy. We use solar panels, are realigning our entire heating strategy toward new technologies, and are gradually replacing existing systems. In the long term, we aim to minimize the use of fossil fuels, such as oil and gas. 45% of the electrical energy in our US production site in Frederick comes from renewable energy.
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators STULZ Italy REDUCING ENERGY IN PRODUCTION In a project at the Italian production site, factory outdoor lighting were replaced with lower wattages, from a consumption of 250 W to 100 W per unit. This resulted in an estimated energy saving of approximately 2,700 kWh/year. Through tinting films on the windows of another factory building, energy savings of 7,739 kWh/year will be achieved, reducing the internal heat load and thus the use of air conditioners. When designing a new climate chamber for another test bench, several measures were planned that will lead to the recovery of signif- icant amounts of energy that would otherwise be lost during testing. They include: ▪ Total heat recovery for water-water Chiller Units Partial heat recovery for air-water Chiller Units Contrast cold recovery via dry cooler Elimination of diesel generator sets ▪ ▪ ▪ STULZ Tecnivel (Spain) LEAN MANUFACTURING FOR RESOURCE EFFICIENCY Our Spanish plant has aligned its production facility toward lean management. This has resulted in efficient production processes, minimized waste, short distances and clean production facilities. The use of customized assembly aids protects the health of em- ployees. Emphasis was placed on recurring processes that will be continuously evaluated and optimized in the future. These adjust- ments included the following measures: ▪ ▪ ▪ ▪ ▪ Assembly of dynamic shelving units with their corresponding bins and labels Feasibility study for the integration of a dedicated cart for supplying electrical materials to the lines, instead of using multiple pallets with the same materials In the unit assembly area of a production line, using dedicated carts for secondary storage of bucket materials In tray welding and base assembly, organization of materials related to manufacturing and installation of dynamic shelving as well as new storage for base components by reference, saving space in the section and reducing potential accidents caused by stacked profiles In a new assembly line, the implementation of a lean manufacturing system for materials required adjustments in equipment manufacturing, intro duction of a new manual and battery powered tools necessary for daily work, along with the audit control system for these tools. STULZ Sustainability Report 2024 33
Global Carbon Footprint We measured the Corporate Carbon Footprint 2024 for STULZ Air Technology globally. It includes all rele - vant Scope 1, 2, and 3 emissions in accordance with the Greenhouse-Gas-Protocol (GHG-Protocol) for all significant entities within financial consolidation, includ- ing the eight production entities as well as sales and service entities. The result provides a sound overview of our global emissions. In the future, we will set targets for our path to net zero and improve data and calculation further. In 2024, global emissions for STULZ Air Technology amounted to 8.6 million tonnes CO (Scopes 1– 3) e. ² ▪ 98.2% are related to the use phase at the customer sites. (Scope 3.11: Use of Sold Products; measured for units sold in 2024) Only 1.8% of emissions are related to actual production, equaling 156,277 tonnes CO e. ² ▪ 34 WHY ARE EMISSIONS IN THE USE PHASE SO HIGH? ▪ ▪ ▪ GHG-Protocol requires accounting for electricity consumption over the expected lifetime for all units sold in 2024; we calcu lated 10.6 years on average for our AC units, a conser vative estimate. Electricity consumption of AC units is very high. For example, our CyberAir 3PRO DX unit running 24 / 7 every day in data centers needs an estimated ~55,000 kWh of elec- tricity per year. Over the lifetime of 10.6 years, this amounts to 583 MWh. We don’t know what type of electricity our clients use and apply conservative location- based emission factors for each country. HOW CAN WE EXERT AN IMPACT ON REDUCED EMISSIONS IN THE USE PHASE? ▪ ▪ ▪ ▪ STULZ is improving energy efficiency of AC units – our most relevant action to reduce emissions in the use phase. We encourage customers to apply renewable energy when using our products – this reduces the carbon footprint during the use phase signifi- cantly. In addition to electricity, the leakage of refrigerants play a critical role during the use phase. Preventing leakage through high quality products is a priority for STULZ. We are transitioning towards units that run on low GWP. This will reduce emissions in the use phase in the event of refrigerant leakage.
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators OUR CARBON EMISSIONS FROM GLOBAL PRODUCTION To allow a better understanding of our emissions from production, we show the more detailed Scope 1– 3 numbers excluding the use phase. The emissions caused by the production of our AC units are directly within our responsibility. 2024 Corporate Carbon Footprint from global production e) excluding use phase (Scope 3.11) Emissions (t CO ² 4,472 2,998 1,453 Share 2.9% 1.9% 0.9% Scopes Scope 1 1.1 Mobile Combustion 1.2 Stationary Combustion 1.3 Fugitive Emissions Scope 2 (market-based) 2024 Share of Scopes in STULZ Carbon Footprint Total: 156,277 tonnes CO²e Scope 1 Scope 2 Scope 3 2.9% 2.4% 2.1 Purchased Electricity (Stationary) 2.2 Purchased Electricity (Mobile) 2.3 Purchased Heat Scope 3 3.1 Purchased Goods and Services 3.2 Capital Goods 94.7% 3.3 Fuel- and Energy-Related Emissions 3.4 Upstream Transportation and Distribution 21 <0.1% 3,754 3,721 23 10 148,051 125,014 5,085 1,990 11,293 2.4% 2.4% <0.1% <0.1% 94.7% 80.0% 3.3% 1.3% 7.3% 3.5 Waste Generated from Operations 26 <0.1% 3.6 Business Travel 3.7 Employee Commuting Total Scope 1 – 3 1,760 2,883 156,277 1.1% 1.8% 100% Scope 3.8 emissions are included in Scope 1 and 2. ▪ ▪ ▪ 91% of our global emissions stem from our eight production entities while 9% are related to sales and service sites. Scopes 1– 2 emissions account for only 5.3% of our total production-related emissions. As we have a direct influence on these emissions, they will still play a decisive role in our climate protection strategy. Scope 3 has the highest impact. Within this, Purchased Goods and Services (Scope 3.1) is the most relevant category with 80%. We will continue our journey to reduce emissions and commit to a path towards net zero. 2024 2025 Corporate Carbon Footprint Global Carbon Footprint, 2024 for Germany, 2023 FUTURE ▪ Ongoing measurement ▪ ▪ Set carbon reduction targets Implement reduction measures GOAL: Net zero STULZ Sustainability Report 2024 35
Reduction of greenhouse gases In our own processes, we reduce energy consumption and take measures to cut emissions. Our measures taken include the following: Production and warehouse areas in several sites use only LED lamps. In Germany, we have adopted an action plan with energy saving measures for both production and in our offices and branches. These measures include guidance on the use of electronic devices, the use of lighting, heating and cooling systems, and monitoring our own energy consumption. STULZ S.p.A., Italy, has installed many meters, which allow efficient energy monitoring. Emission management has been digitalized, simplified and made more user-friendly. We are taking steps in fleet management, gradu- ally converting our fleet to vehicles with lower fuel consumption and vehicles powered by alternative engines. With this in mind, we are also working on expanding our vehicle charging infrastructure (see page 41). With the sales and service sites, we are pushing ahead with the digitalization of service processes. This includes an Online Portal, which we operate via an app. With this tool, up-to-date information about the entire installation (address, direct contacts, installed units and their history) is constantly available digitally, and we can process service orders in a resource-efficient manner. We are using digital working methods like virtual meetings and flexible desk-sharing concepts. This reduces the number of business trips and the number of commutes to and from work at STULZ. ▪ ▪ ▪ ▪ ▪ ▪ 36 TRANSITIONING TO LOW GWP REFRIGERANTS The global warming potential (GWP) of refrigerants plays an important role in our Carbon Footprint. To assess the global impact on the climate, we compile refrigerant balance sheets worldwide and measure our Corporate Carbon Footprint. STULZ is committed to actively con- tributing to the sustainable develop- ment of data centers. In doing so, we are heavily dependent on the requirements and order specifications of our customers. We actively promote the use of more envi- ronmentally friendly refrigerants and advise our customers on the use of refrigerants with low GWP (see page 27). At the same time, we equip our production facilities with the necessary resources. ▪ ▪ We are adapting our safety standards in production to meet the increased requirements regarding of flammability and toxicity. We are providing our staff with intensive training on the new requirements to ensure that, from the initial consultation with the customer to service in the data center, our colleagues can competently and confidently master the changed technical challenges and communicate and handle them safely. WE CONTINUOUSLY IMPLEMENT RESOURCE EFFICIENCY MEASURES IN OUR PRODUCTION WHILE AT THE SAME TIME PROVIDING OUR CUSTOMERS WITH SOLUTIONS TO IMPROVE THEIR ENERGY EFFICIENCY. Pedro Pardo, Occupational Risk Prevention and Environment STULZ Spain
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators SMART AND LOW-ENERGY BUILDING We consider sustainable solutions in our buildings. Our Benelux headquarters, for example, is an intelligent building with a state-of-the-art infrastructure, using innovative and environmentally focused technologies. This includes the highest energy efficiency levels, solar collectors, and infrastructure for electrical vehicles. Benelux Efficient water use Although we are a manufacturing company, water is not a material resource for our business. We basically do not use any water in our production processes; water is used solely for human consumption or personal hygiene. Cooling and heating circuits are closed systems and therefore have no consumption. Our production entity in Italy has its own water treatment plant. Apart from Brazil and the UK, where no water is used in perfomance testing, all our production sites have performance test benches. They reuse water multiple times, thereby mini- mizing water consumption. 2024 Water withdrawal Total: 37,215 m³ Production entities Sales and service sites 2,323 m³ 34,892 m³ Not including France, Indonesia, Nordics, New Zealand, Thailand. We don’t use any ground or surface water for any purpose whatsoever. To minimize our water consump- tion, we have introduced the following measures: ▪ ▪ ▪ ▪ In production, we are committed to efficient water use through closed circuits and multiple usage. Extensive heat recovery systems enable cooling water to be used multiple times. We also take this approach in our test bench technology. We monitor our own water consumption through regular analysis of our water bills. As we rent the buildings of our branches, we have no direct influence on the water supply and infrastructure at these locations. Our service organization advises customers with inefficient systems on potential optimizations concerning water consumption, such as by replacing entire systems or, whenever possible, individual components. Every employee is encouraged to save water wherever possible. This includes, for example, reporting leaks in washrooms. STULZ Sustainability Report 2024 37
Waste prevention, reduction and reuse We comply with the WEEE (Waste Electrical and Electronic Equipment) requirements of Directive 2012/19/EU. The aim of the directive is to reduce electric and electronic waste through reuse, recycling and other forms of waste recovery. We have registered all the relevant brands sold by STULZ GmbH in accordance with the German Packaging Act as well. Waste management is the responsibility of our Waste Management Officers, who are appointed in all produc- tion sites certified to ISO 14001. Our aim is to continu- ally reduce the amount of waste that we produce. 80.1% of global waste is redirected for recycling. At a global level, our production entities, not including China and STULZ Modular (UK), generated a total of 3,369,007 kg of waste, of which 98.3% was non-haz- ardous waste. Over 80% of global waste was redirected for recycling, in Germany the ratio is 95%. Our main driver of waste is packaging waste that we receive from the upstream value chain, e.g., paper, cardboard and packaging wood. Waste is also produced in production and in the offices. Other waste contains mainly electronic components, mixed plastics and construction waste. Our figures for sales and service sites are based on assumptions from available data and equate to around 1% of the total volume of waste. Due to the uncertain data and little relevance, these figures are not included in our calculations. For waste prevention, separation, treatment and recy- cling/reuse, we have implemented measures, including: ▪ We separate waste such as paper, wood, recyclables (e.g., scrap metal) and residual waste in our produc- tion sites. We recycle materials as much as possible. ▪ ▪ ▪ ▪ ▪ With our chipper, we can shred discarded wood so that it is compressed in the transport container. This reduces the number of journeys to and from the site. We use reusable pallets, packaging materials and transport containers wherever possible. We use in- dividual metal/wooden pallets and cardboard boxes for transport between suppliers and production sites. We vacuum refrigerants out of air conditioning units in an automated process. We always recycle our refrigerants. We have hazardous waste disposed of by a specialist waste disposal service in accordance with the waste code and legal provisions. We avoid waste through digital workplace practices. This has already helped us generate less paper waste. 2024 Waste generated at production entities, by origin Total: 3,369,007 kg Paper and cardboard Packaging wood Residual waste 50.2% 17.6% 14.9% Metal waste 13.0% Refrigerants 0.1% Other 4.3% Not including China, Modular (UK). REORGANIZING WASTE COLLECTION STULZ Italy In 2024, STULZ Italy improved its waste management in production. By introducing waste separation directly along the assembly line, collection rates increased. Addition- ally, digitalization of waste streams led to higher traceability. The elimination of paper documentation in the factory made the process more efficient and environmentally sound – at the same time, operating times and errors could be reduced. 38
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators IMPROVE PACKAGING Our packaging guidelines for different product groups comprehensively regulate the handling of packaging in Germany. They contain specifications on the type of trans- port packaging to be used as well as filling and handling of packaging. In this way, we ensure optimal resource utilization and efficient quality assurance for deliveries. The use of reusable and returnable packaging as well as possible return cycles are part of our contracts with our suppliers. We process non-reusable cardboard packaging with a cardboard shredder to create filling material for shipping boxes. By introducing optimized film packaging for our own products, we were able to reduce resource consumption in Germany by almost 20% in 2024 while not compromising on transport safety. Our production site in China reworked their internal logistics for piping, improved material transfer efficiency and lowered wear of facilities. Production switched from plastic boxes to trolleys that trans- port pipe material. Space occupied in the pipe production zone was halved. UPGRADING PRODUCTION FACILITES AND PROCESSES STULZ Germany In the lean manufacturing process in Germany, several measures addressed the careful handling of hazardous materials, some examples: ▪ To ramp up production of units with low GWP refrigerants, we have adapted our production facilities in Germany. Based on risk assessments, opportunities for optimization, and legal requirements, production processes were redesigned. This included implementing safety concepts for flammable refrigerants. ▪ ▪ ▪ As part of a substitution test for the soldering assembly step, we worked with our supplier to integrate a key product with reduced risk potential into this part of the production process. Such substitution tests are recurring processes designed to ensure improvements in the protection of people, machines and the environment. In critical areas, we have an independent organization regularly measuring pollutant levels. For example, soldering work in various areas produces air pollutants. These are extracted and cleaned by extraction systems. However, a residual content remains, which is monitored. We have now fully air-conditioned production facilities in Hamburg. This results in a controlled temperature and humidity in the working environment, which raised employee satisfaction and optimized our manufacturing process through reduced downtime and a more efficient process flow. STULZ Sustainability Report 2024 39
We illustrate the environmental impacts of these haz- ardous materials in the document “Assessments and impacts on the environment”. Environmental relevance in both standard and emergency operations is evaluat- ed and monitored using a scale. In addition to this, we have set up a hazardous materials management system, headed by our Hazardous Materials Officers. These people compile risk assessments and work instructions in line with the German Hazardous materials Ordinance, and these are available centrally via the intranet. We check at fixed intervals that these are up to date and adapt them when necessary. Risk management also includes regular training sessions for users and officers. We carry out regular substitution assessments on hazardous materials in our production lines, to reduce the potential hazards. In Germany, external hazardous goods officers assist us with the transport of our hazardous materials. The transport vehicles are marked in accordance with regulations and are subject to special procedures. PREVENTING LEAKAGE To satisfy the requirements of the F-gas Regulation and prevent the unwanted emission of fluids, gases and other sub- stances, we perform leak tests on every product. These computer-aided tests are carried out by qualified staff, approved electronically and then documented. Pre- venting leakage is one of our key contri- butions to reducing emissions in the important use phase of our products. Careful handling of hazardous materials All hazardous materials used in production are subject to the provisions of the RoHS and/or REACH Directive. We keep the use of hazardous materials to a minimum and already consider this in our purchasing decisions, wherever possible. Hazardous materials include oils, refrigerants, lubricants, nitrogen, oxygen, acetylene and greenhouse gases. In Germany, 85 different hazardous materials are cur- rently used. Adhesives, cleaners and gases accounted for the largest proportion of hazardous materials. The use of hazardous materials varies according to the units produced during a year. Our hazardous materials reg- ister offers a detailed overview of hazardous materials. They are categorized by division to clarify responsibili- ties, while in-depth information on classification, hazard category, and other factors enables risks to be quickly detected and safety measures to be taken. The register is continually updated in line with new requirements and product modifications. Refrigerants are always recycled at all STULZ sites. 40
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators Resource-efficient logistics We have specifications to control our inbound logistics, which are implemented by our suppliers. Within Germany, we collaborate with logistics companies as fixed part- ners for outbound logistics, and they are in charge of our transport. The companies we contract primarily use diesel trucks. An external hazardous goods safety advisor supports us with our dangerous goods transport. An internally appointed Air Freight Safety Officer super- vises compliance with the provisions of the German Federal Air Freight Agency for goods that are transported by airplane. For outbound transport, each production site delivers directly to the end customer on behalf of the sales sub- sidiaries. In consultation with our customers, we use the optimal transport routes according to customer require - ments. Wherever we have an influence, we organize transport as efficiently as possible, including the avoid- ance of empty trucks. For exports, transport is typically contract-based and is carried out ex works by our cus- tomers. SUSTAINABLE FLEET MANAGEMENT Several subsidiaries already partially operate an electric fleet and build up charging infrastructure. ▪ STULZ Benelux has an electric fleet in its lease cars and introduced an electric service vehicle. Outside Benelux, the service fleet is currently made up of diesel vehicles, as we don’t have any alternative that covers the necessary range. At STULZ Nordics, 50% of company cars are electric. In the headquarters in Germany, electric vehicle charging infrastructure will be expanded to 20. ▪ ▪ ▪ In 2024, STULZ in Germany took part in the KlimaProtect scheme from GLS. We are also conducting a constructive dialog on sustainability with Fedex/TNT. The initiatives by our logistics partners aim to achieve more eco-friendly packaging logistics. STULZ Italy IMPROVING INTERNAL LOGISTICS As a part of our lean manufacturing transformation, STULZ S.p.A. in Italy strives for a more efficient resource use and to increasing the added value for the custom- er. One project included improving internal logistics. The logistic flows between the two floors of one of the factories were redesigned. As a result, forklift traffic was reduced by 90%. STULZ Sustainability Report 2024 41
Responsible Supply Chain With respect to responsibility in our supply chain, we focus on three key areas: Ethics and compliance Responsible purchasing Managing our supply chain 42
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators Our supply chain Our in-house STULZ branded products are manufac- tured at our eight global production entities, which manufacture locally for their respective regional markets. All products are manufactured with high-quality compo- nents. Robust design guarantees high reliability, a low demand for spare parts, a long service life and optimal performance under varying conditions. We work closely with our suppliers to ensure quality and efficiency right from the start. We purchase mostly finished materials and components. When purchasing materials, we prioritize reliability and, to an increasing extent, sustainability factors. Our production activities also require the purchasing of pre-processed base materials, such as copper. While we strive for a multi-sourcing strategy in all our commodities, we still face single source situations in some material groups. In these cases, we work to build close partnerships with our suppliers. For all suppliers, we endeavor to continuously further optimize our component use – in terms of both equipment efficiency and use and cost of materials. Efficiency plays a vital role in our supplier selection process. It’s extremely important to us that the materials and components we purchase are produced in an energy and resource-efficient manner. Together with our suppliers, we explore the possibilities to develop profitable, more sustainable solutions. We have, for example, changed from single packaging to multi- packaging for controllers and Humidifiers and have eliminated plastic bags used for wiring boards (electronics) with a supplier. In another case, we currently test the use of recycled plastic for heat exchangers. 2024 Purchased materials, by type Total purchase volume: 43,963 t 53.2% Mechanical components 18.5% Trade goods 14.0% Electrical components 12.2% Raw materials 2.2% Maintenance, repair, and operations (MRO) Production entities only, not including Brazil. 2024 Suppliers, by origin Total: 4,162 62.1% Europe 22.5% Asia 18.8% America Production entities only, “other suppliers” below 1%. 91.7% of our suppliers are located in the same country as their respective production site. INTEGRATING SOCIAL AND ENVIRONMENTAL CONSIDERATIONS INTO OUR PURCHASING REQUIRES COMMITTED COOPERATION AMONG OUR STULZ SITES AND DEEP ENGAGEMENT WITH OUR SUPPLIERS. Suresh Balacrishnan, Managing Director STULZ India STULZ Sustainability Report 2024 43
Ethics and compliance STULZ takes a decentralized approach to ethics and compliance, which has a positive impact on our measures in individual countries. For operations at our German headquarters, we have a Code of Conduct that sets out clear rules regarding ethics and compliance for employees. We have estab- lished several processes to ensure business ethics in our daily operations: To avoid anti-competitive practices, our contract awarding process is subject to an approval procedure and – for contracts above a certain value – a dual control system. Bribery and corruption are criminal offenses and are firmly rejected. Employees may only accept gifts, invitations and other benefits from third parties only to a reasonable and proportionate extent, and this must not give rise to any conflicts of interest. Ethics and compliance aspects are often subject to local market requirements and thus are managed accordingly. In the UK market, for example, several ethical and human rights policies are requested from locally oper- ating companies. STULZ UK therefore has a range of policies and mechanisms in place. Among them is the anti-bribery policy and the corresponding procedure. In Germany, we have adopted a standard operating pro- cedure (SOP), to examine business partners’ compliance with legally binding sanctions lists. An export inspection team is responsible for checking our business partners for compliance. We expect our suppliers to comply with the applicable legislation, avoid corruption and adhere to export and import bans and embargoes. We also enforce business ethics across our supply chain. For us, ensuring human working conditions and compliance with internationally applicable human rights provisions across our entire supply chain is a fundamental expectation. Here, we expect our suppliers to respect human rights and reject child labor. 33.5% of our permanent employees are trained in business ethics. Not including Italy, Austria, Singapore. 44 Data security is another aspect of ethics and compliance. In Germany, we collect, process, and retain personal data in accordance with strict German data protection legislation and have appointed a Data Protection Offi- cer. At the German headquarters, there have been no complaints relating to privacy violations or the loss of customer data during the reporting year. We are prepar- ing for ISO 27001 certification to enhance data security. NEW CODE OF CONDUCT FOR SUPPLIERS During 2024, we revised and updated our Code of Conduct for Suppliers at the German headquarters. The rules apply to all suppliers, business partners, and other third parties that act on our behalf. Rules are included on: ▪ Human rights ▪ Labor conditions ▪ Conflict minerals ▪ ▪ Conflicts of interest ▪ Materials ▪ Ban on bribery and corruption ▪ Environmental protection Fair competition and antitrust legislation Financial responsibility Export controls and economic sanctions ▪ ▪ The STULZ Code of Conduct for Suppliers is based on the United Nations Univer- sal Declaration of Human Rights and the Convention Against Corruption, the OECD Guidelines for Multinational Companies, the Conventions of the International Labor Organization (ILO), the principles of the UN Rio Declaration and the Ten Principles of the UN Global Compact. -> CODE OF CONDUCT FOR SUPPLIERS
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators SELECTED RESPONSIBLE SUPPLY CHAIN ACTIVITIES Respect for human rights is regularly checked at our production entities through customer social responsibility audits. In Spain, Germany, Brazil and other production sites, supply chain manage- ment audits are conducted by major globally operating customers. Our site in the USA participates in customer ESG compliance programs. Responsible purchasing As with many companies, responsible purchasing remains a high priority for STULZ in the years to come. Our purchasing department at the German headquar- ters is organized by material groups with dedicated category managers. A similar structure is in place for the purchasing departments of our other production sites. Regional purchasing is one aspect. Many components are regionally sourced. Out of more than 4,100 suppliers, 91.7% are located in the same country as the production facilities they supply. The Global Controller is an example of how to combine the advantages of local procurement with globalizing a product, as presented in last year’s report: Having suppliers from the same region reduces risks within the supply chain, such as human rights viola- tions. The global use of identical control systems helps to standardize software development and support world- wide and ensure optimum response times 24 / 7 / 365. REDUCING DELIVERY DISTANCES Germany We recently changed a supplier within Germany who supplied STULZ with most of the small parts used in our production. The transport distance for the large volumes of different small parts was more than 500 kilometers. The new supplier is located in the region, which has significantly shortened the distance for our deliveries. By taking this step, we have improved delivery performance for the parts, including spontaneous availability and lowering carbon emissions. It is an example of how we are looking at the best options for different suppliers and parts from all points of view both from an economic and ESG perspective. STULZ Sustainability Report 2024 45
Responsible purchasing In the German headquarters, an overall risk assessment was carried out. For this, suppliers were analyzed based on their countries and clustered according to risk cate- gories. Furthermore, product and material groups were analyzed for potential risks regarding human rights and environmental protection irregularities. For Germany, all strategic suppliers confirmed our new Code of Conduct for Suppliers or submitted their own version with equivalent or higher standards. Within most production countries, our direct supply chain (Tier 1) is generally considered low risk with regard to social and environmental concerns. Our production sites in China and India, however, face comparatively different risks from most of our other sites. For individual material groups (e.g., electronic parts), it is currently not possible to entirely rule out issues relating to working conditions, human rights, and the environment from the upstream stages of our supply chain. In the future, we intend to further improve our risk assessments and veri- fication measures to ensure a responsible supply chain. RESPONSIBILITY IN OUR SUPPLIER MANAGEMENT IN CHINA STULZ China In Hangzhou, China, we have oprated a STULZ production site since 2013. A solid supplier management process is in place for about 100 suppliers, the vast majority of which are local. As many of them are only traders, we do not explicitly audit them for human rights and environmental risks. Our Chinese suppliers pass an annual supplier appraisal; suppliers are reviewed based on multiple criteria and audited according to an audit plan. Environmental and occupational safety performance of companies is considered when selecting suppliers and in the annual audit. Supplier audits in our Chinese production site New supplier audits Annual audits Process audits 2023 2024 10 12 5 4 7 4 46
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators ESG impacts in our supply chain In 2024, we conducted an Environmental Product Declaration (EPD) analysis for a CRAC unit, specifically one of our flagship products, on ESG aspects. The illustration shows what materials we buy for a CyberAir 3PRO DX, what they are composed of and which distances they travel. Main components and their materials for a STULZ CyberAir 3PRO DX (Tier 1 supply chain) Evaporator ▪ 50% copper ▪ 50% aluminum 1,300 km Refrigerant liquid receiver ▪ 100% steel and powdered coating 600 km Compressor ▪ 50% steel ▪ 30% copper ▪ 10% stainless steel ▪ 10% composite EC fan ▪ 60% composite ▪ 20% copper ▪ 10% aluminum ▪ 10% electrical wire and PCB board 700 km 700 km Internal sheet metals ▪ 80% steel ▪ 10% stainless steel ▪ 10% aluminum 100 km External sheet metals ▪ 100% powder-coated steel + some further materials (e.g., copper piping, electrical components, controller, cabling) In our Tier 1 supply chain, social and environmental impacts are not significant, potential risks exist in upstream tiers of our supply chain. The EPD revealed several relevant insights, including the following: ▪ The clear hotspot across the assessed life cycle is the raw material extraction stage, accounting for approximately 84% to almost 100% of the total value per environmental indicator. ▪ The next highest contributing stages are the manufacturing stage, transport to the customer and transport of raw materials to the manufacturing facility. ▪ ▪ The majority of the GWP value (25%) in the raw material extraction stage arises from the “external sheet metals” component. Much of the impact was from powder coating, specifically the heat from natural gas required for the final heat curing of the powder-coated steel. For the manufacturing stage, 59% of the related GWP value is attributable to the electricity consumption during manufacturing of the CRAC unit. They arise largely from emissions associated with the upstream combustion of natural gas as energy source. STULZ Sustainability Report 2024 47
Managing our supply chain We analyze and assess supplier-specific and supply chain risks and instigate corrective action when necessary. Sustainability issues are increasingly factored into these assessments. At present, we do not yet examine new suppliers in terms of social and environmental criteria. We plan to purposely incorporate sustainability issues into our supplier relationships and include them in both our supplier evaluation and regular exchanges. STULZ Germany conducted a risk assessment in 2024 for compliance with the German Supply Chain Act. It provided insights that helped us prepare our organi- zation to establish solid supply chain management. Different structures and processes were established at STULZ Germany, such as a whistleblower system, preventive measures, and reporting lines. With the new Code of Conduct for Suppliers, we were able to engage our suppliers with our guidelines on responsible supply chain management. 48 At our German headquarters, we are currently intro- ducing a new supplier relationship management (SRM) tool to continuously monitor and manage supplier risks including ESG beyond Tier 1. By using internal and external data, the SRM tool will allow us to build supply chain resilience. Also, regular queries (REACH, RoHS, etc.) will be managed using this SRM tool. A global roll- out is envisioned. In 2025, the revised supplier qualification process was introduced, envisioned as a global standard. New to this process is the basic requirement for all suppliers to confirm STULZ ESG standards by accepting its Code of Conduct for Suppliers. The revised supplier qualification process covers a preliminary ESG risk assessment as a basic requirement. 10 subsidiaries have set up a whistleblower system, with no incidents reported in 2024.
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators NO USE OF CONFLICT MINERALS We are committed to ensuring that components we have purchased are free from conflict minerals. Metals such as tin, tantalum, tungsten, and gold are particularly common in electrical components. The mining of these raw materials is problematic in terms of human rights and other social and environmental aspects. The aim is to increase transparency in future as regards conflict minerals in our supply chain. Working with suppliers and other players in affected industries, we want to contribute to improving conditions in the supply chain. Currently, we ask suppliers on a case-by- case basis whether they deal with conflict minerals. In the future, it will be included in our supplier screening and qualif ication process. In the newly released Code of Conduct for Suppliers in Germany, it is ex- pected that suppliers must prohibit the use of conflict minerals. More about our guidelines, procedures and reporting: -> STULZ: DUE DILIGENCE OBLIGATIONS IN SUPPLY CHAINS STULZ Sustainability Report 2024 49
Good Employer In the global STULZ organization, we are and will be focusing on four key areas of a Good Employer: Occupational health and safety Training and career management Diversity, equality, and inclusion Modern work environment 50
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators Responsible personnel management Our qualified and committed employees are the foundations of STULZ’s success. In 2024, STULZ had a global total of 3,503 employees – 79.9% of them are male employees, and 20.1% are female employees. EUROPE 1,601 employees 19.2% female 80.8% male AMERICA 785 employees 27.0% female 73.0% male AFRICA 6 employees 33.3% female 66.7% male ASIA PACIFIC 1,111 employees 16.4% female 83.6% male 2024 STULZ employees, by age Total: 3,503 19.9% employees aged < 30 25.7% employees aged 30 – 50 54.4% employees aged > 50 2024 STULZ employees, by contract Permanent Temporary Total by gender Total continent Total AMERICA AMERICA EUROPE EUROPE AFRICA AFRICA ASIA PACIFIC ASIA PACIFIC Male 573 0 573 Female 212 0 212 Male 1,249 45 1,294 Female Male Female 290 17 307 4 0 4 2 0 2 Male 461 468 929 Female 53 129 182 785 1,601 6 1,111 3,503 GOOD PLACES TO WORK Several STULZ subsidiaries received awards, among them: “Great Place to Work” awards for STULZ Mexico and STULZ Oceania, “Best Place to Work” for STULZ USA. STULZ Sustainability Report 2024 51
Occupational health and safety Several of our sales and service sites also translate their commitment to health and safety into structures and processes, according to local requirements, for example: The health and safety of our employees is our top priority. We understand that we are responsible for ensuring that our employees are protected against accidents and other potential risks while they are at work. The sales and service site in Thailand has established health and safety measures to ensure a safe and healthy working environment. While we do not operate a uniform global health and safety management system, our production sites operate under guidelines or management systems for health and safety. Approaches and measures vary. In Germany, we have a refined structure with clear responsibilities and different measures. In Brazil, the S.O.L. Program (see page 15) includes health and safety aspects. Italy has a certified health and safety manage- ment system. In China, an ISO 45001 system on Occupational health and safety management is in place. Each employee receives a comprehensive health check every year. Supplementary medical insurance is provided on top of the statutory social insurance, which includes life and disability, critical illness, maternity leave for female employees, inpatient and outpatient medical expenses both for employees and their children. A low number of accidents across the global STULZ organization is a great achievement we strive to keep. Our office in South Africa operates with a health and safety guideline. STULZ Singapore ensures compliance with local employment laws and regulations while prioritizing the safety and well-being of its workforce. It operates a certified Occupational health and safety management system (ISO 45001). Accidents and injuries Reportable accidents at work Injuries 2023 2024 69 5 38 62 Production entities only, injuries 2023 not including USA. OUR EMPLOYEES ARE PROUD TO WORK AT OUR STULZ PRODUCTION SITE IN BRAZIL. WE CREATE A GOOD WORKING ENVIRONMENT AND PROMOTE CHANGES IN PEOPLE’S ATTITUDES AND HABITS FOR CONTINUOUS IMPROVEMENT. Franciane Dias, Production and Planning Manager STULZ Brazil 52 GOOD WORKING CONDITIONS IN INDONESIA STULZ Indonesia STULZ Indonesia supports a range of measures for its employees. Fair com- pensation and a positive work culture fostering respect, inclusiveness, and teamwork build the foundation. We provide a safe and healthy work environ- ment that minimizes risks and hazards. Opportunities for professional de- velopment, training, and career advancement are available to employees, as well as flexible work arrangements such as remote work and flexible hours.
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators HEALTH AND SAFETY MANAGEMENT IN GERMANY Our structures for health and safety at the German site ensure clear organizational and operational procedures. They include: ▪ ▪ ▪ ▪ ▪ Occupational Health and Safety Committee (covers also workers who are not employees): Holds regular meetings, decides on adjustments necessary to prevent accidents at work Company Medical Officer: Inspections and information on potential improvements, for example in production Occupational Health and Safety Officers: Ensure the safety of our workforce Heads of division and line managers: Implement measures to prevent the recurrence of accidents, conduct regular risk assessments of all workplaces 155 First Aiders: Provide first aid across the organization STULZ Germany We offer training and education schemes on occupational health and safety. ▪ Regular training for First Aiders and new recruits ▪ Yearly health and safety training sessions ▪ ▪ Regular Health Days to raise awareness of various health aspects Corporate reintegration management scheme after long-term illness 95% of all employees have received health and safety training in Germany. STULZ Sustainability Report 2024 53
Training and career management To ensure our long-term success, we want to recruit and develop great people around the world. Training and career management are organized in a decentralized manner, so all subsidiaries tailor it according to the local needs and opportunities. Some examples: In Germany, we offer over 100 different training and education programs on a wide range of topics, several of them provided through our eLearning platform. With the “STULZ Talent Development” scheme, we train promising young talent among our employees to leaders of tomorrow. In 2024, 28 apprentices and 15 students are employed in Germany. The average retention rate is 95%. We engage young talent at an early stage and offer ap- prenticeship opportunities in Germany in several tracks, for example: Industrial Electrician, Production Mechanic, Cooling Technology Mechatronics Engineer, Warehouse Logistics Specialist, Industrial Management Assistant, and IT Specialist. Degrees with Vocational Training include, for example, Business Information Systems, Mechatronics and Air Conditioning Technology. STULZ China provides a variety of training courses and resources through the internal Online Learning Platform. Among them are general training, professional training on products and technical features, and self-improvement. Additionally, trainee and orientation programs provide comprehensive training for interns and new employees. Our sales site in Indonesia offers various in-house train- ing opportunities for employees. In Austria we educate our technicians internally or at supplier training courses. STULZ Singapore invests in continuous training and development opportunities, fostering employees’ career growth and skill enhancement. Given the difficulty in finding certain job profiles at the factory’s location, STULZ Tecnivel (Spain) provides internships for job seekers in collaboration with several training organizations. The interns receive an opportu- nity to gain experience and potentially be recruited by STULZ. 2024 STULZ training, by hours Total: 45,623 h 39,785 h at production entities 5,838 h at sales and service sites TRAINING OPPORTUNITIES IN ITALY STULZ Italy In 2024, STULZ S.p.A. started a project to redesign onboarding and career paths within the production departments. Tutors will accompany new recruits on their path of growth and talent management. Training courses in lean manufacturing were launched for all new recruits. The STULZ Academy in Italy will be expanded to other employees outside the production areas. With schools in the area of our factory, inter nship programs, and school events were launched. The aim is to foster the exchange with young people and provide them with internship opportu- nities and present STULZ Italy as an attractive employer. Training courses with external teachers from qualified schools and our internal teachers provide opportunities for job seekers. 54
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators CAREER ACCOUNTS ON INSTAGRAM AND TIKTOK To strengthen our employer brand and at- tract new talent, STULZ has been operating dedicated career accounts on Instagram and TikTok in Germany since 2022. The channels provide authentic insights into our company culture and career opportunities from the perspective of those most familiar with it – our apprentices and dual students. They are not only the faces of the channels but also take responsibility for content creation. From brainstorming and filming to editing and writ- ing captions – they handle the entire process mostly independently. STULZ Germany The idea initially was to show the daily work of our service technicians. It evolved into a com- prehensive career channel that now highlights various roles, career paths, and behind-the- scenes moments at STULZ. Weekly meetings with two supervisors from HR and Marketing serve as creative planning sessions. The career accounts have already paid off: Several applicants stated that they discovered STULZ through our social media presence. Beyond recruitment success, the project empowers our apprentices and dual students by giving them responsibility and experience in digital communication. STULZ Career: → INSTAGRAM → TIKTOK STULZ Sustainability Report 2024 55
Diversity, equality and inclusion For us, the diversity of our workforce and the creation of an inclusive working environment is not just ethically correct, but also indispensable for our innovative spirit and competitiveness. Our team is made up of 703 female and 2,800 male creative thinkers. While we are open to all genders, we currently have no employees who openly identify as non-binary. People from 135 different nations work across all global subsidiaries. Everyone shares a common passion and the drive to shape STULZ’s future with commitment and ambition. 135 nationalities working at STULZ. Our obligation to equality ensures that all our employees are treated fairly – regardless of gender, origin, reli- gion, or any other characteristics. This way, we create a working environment free from discrimination, and we actively strive for an inclusive culture. Discrimination of any kind is not tolerated and will be punished according- ly. We also strictly reject sexual harassment and bullying. Every single employee should feel respected, valued, and an integral part of our team. Three examples of how STULZ organizations handle the topics: 56 STULZ UK is committed to encouraging equality and diversity among our workforce and eliminating unlaw- ful discrimination. Our aim is for our workforce to truly represent all parts of society and our customers, and for each employee to feel respected and able to give their best. To enforce this, several policy measures have been implemented, among them an equality policy and a bullying and harassment policy. STULZ China complies with all applicable labor and employment laws and is committed to providing equal employment opportunities to all qualified personnel regardless of race, color, religion, nationality of origin, disability, gender, age, marital status, etc. STULZ China offers complaint and grievance channels for employees to ensure fairness and equality. It strives to provide a fair working environment for employees and incentivizes employees based on actual performance results. In Germany, we have introduced a works agreement that promotes equal rights and aims to counter discrimina- tion. Our Works Council and the Executive Management work closely together to prevent employees in our company from feeling disadvantaged in any way. Our whistleblower system is publicly accessible to everyone. Employees receive training on topics such as diversity, discrimination and harassment. Our disability represen- tative on the German Works Council ensures that the interests of people with disabilities are also represented in the company. During 2024, we employed 38 people with disabilities in Germany.
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators STULZ Tecnivel (Spain) conducted a Family Day in 2024 with over 500 attendees. Modern work environment At STULZ, we recognize the importance of the modern work environment and actively incorporate various as- pects into the design of our workstations, working hours and commuting, and in our communication methods. The work environments at our global sites are main- tained individually by local management. Thus, the focus varies according to local demands. We understand the importance of a harmonious work- life balance. That’s why we support flexible working time models and focus on online meetings in various subsid- iaries, among them Germany, Italy, Mexico and at STULZ Nordics. STULZ China provides additional paid annual leave and sick leave. The team organizes employee activities, such as team building, celebrations, festival activities and sports events to enhance teamwork and improve employees’ wellbeing. WE ALREADY WON THE “GREAT PLACE TO WORK” AWARD – YET WE KEEP FOCUSED IN MAINTAINING A HIGH QUALITY WORKING ENVIRONMENT FOR OUR EMPLOYEES. FOR YOUNG TALENT, WE OFFER GREAT CAREER PATHS AND DEVELOPMENT PROGRAMS TO UPSKILL OUR WORKFORCE. Matthew Gellert, Product Manager Cooling STULZ Oceania EMPLOYEE WELLBEING PROGRAM At STULZ Oceania, we held in 2024 a wellbeing program for employees focusing on four elements: mindset, nutrition, move- ment, and rest and recovery. Sessionsfor all employees were held throughout the year and were run by expert guest speakers. In addition, employees were given two days off to focus on wellbeing, on top of existing leave. A $275 allowance was also provided to employees for spending on revitalizing activities that help nurture mental health and physical wellbeing. STULZ Oceania STULZ Sustainability Report 2024 57
Community engagement OUR STULZ FOUNDATION The STULZ Foundation in India is guided by values of empathy, integrity, teamwork, innovation, inclusivity, and sustainability. We approach our four initiatives with compassion and transparency, partnering with communi- ties to maximize our positive impact in India. Empowering Health: We run eight healthcare clinics throughout Mumbai, providing free doctor consultations and over-the-counter medications to all. This initiative serves approximately 100,000 patients each year. Empowering Growth: To ensure access to nutritious meals, we have partnered with an organization that delivers healthy food to selected slum clusters in Mumbai, with the goal to provide up to 150,000 meals. Empowering Progress: Our Education Outreach initiative is designed to empower individuals to overcome obstacles and thrive in their unique circumstances. Our education- al initiatives are primarily directed towards primary education. Empowering Change: We strive to bring about tangible and positive change. This area of focus is integral to our work at STULZ Founda- tion and has been instrumental in our success. → STULZ-CHSPL FOUNDATION CHARITY SPONSORSHIP STULZ S.p.A. in Italy once again sponsored the “La Corsa Rosa” charity event, a run promoting prevention and early diagnosis of female cancer. We also introduced a solidarity time bank to support colleagues in need. 58
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators ENGAGING FOR SOCIAL CAUSES STULZ Spain collaborates with various animal shelters in towns near the Esquivias production site. We repurpose leftover materials to support animal welfare. Materials we have supplied to the animal shelters include pallet wood planks, wooden boxes to build cat houses, and insulation to prepare the shelters for the cold season. Our company also strengthens a collaboration with Fundación Down Zaragoza to practice support for people with disabilities. Staff members visited various facilities and occupational centers of Down Zaragoza in 2024. We were able to witness first- hand how efforts toward social inclusion and equal opportunity in society are carried out. FOSTERING ENVIRONMENTAL INITIATIVES As part of our commitment to sustainability, STULZ in China launched activities under the slogan “Red for Action, Green for Future”. They include tree-planting initiatives with employees and a tree donation. The company donated greenery to the Alashan Desert to combat land desertification by taking concrete action. This initiative has also been recognized by environmental organizations. Additionally, employees are encouraged to integrate low-carbon practices into their daily lives through innovative incentive measures by the company. They include incentives for eco-friendly commuting, reducing plastic use, and conserving energy. STULZ Sustainability Report 2024 59
Key Performance Indicators Our new site in the United Arab Emirates (EMEA) is not included in the Key Performance Indicators. The operations of STULZ Digital Solutions GmbH, our software development site in Germany, are covered by the data for STULZ GmbH, Germany. For technical reasons, the data for the following entities is consolidated: Belgium in Stulz Groep (Netherlands), Stulz Oceania (Power) in Stulz Oceania (Australia), Malaysia in Stulz Singapore. 60 CompanyUnit20232024Sales (approx.)€ million800850Production entitiestotal88Sales and service sitestotal1921Software development sitestotal11EnvironmentUnit20232024GHG emissions excluding use phase (Scope 3.11)Excluding:GHG emissions, total t CO²en.a.Thailand156,277Scope 1t CO²en.a.4,472Scope 2 (market-based)t CO²en.a.3,754Scope 1–2t CO²en.a.8,226Scope 3t CO²en.a.148,051GHG emissions (Scope 1– 3) per 10,000 € salest CO²en.a.1.8Energy Excluding:Excluding:Energy consumption, total kWh France, Nordics, Thailand16,648,087France18,212,461Production entitieskWh 16,021,97017,137,153Sales and service siteskWh France, Nordics, Thailand626,117France1,075,309ElectricitykWh France, Nordics, Thailand11,161,360France10,774,129Electricity from conventional tariffskWh 8,384,8689,360,444Electricity from 100% renewable energy tariffskWh 2,776,4921,413,685Gas kWh France, Nordics, Thailand4,662,928France5,879,795Heating oil kWh France, Nordics, Thailand780,955France639,632OtherkWh France, Nordics, Thailand42,843France918,926Energy intensity per employeekWh France, Nordics, Thailand5,085France5,199WaterExcluding:Excluding:Water withdrawal, totalm³ France, Indonesia, Nordics, Thailand31,240France, Indonesia, Nordics, New Zealand, Thailand37,215Production entitiesm³ 30,11334,892Sales and service sitesm³ France, Indonesia, Nordics, Thailand1,127France, Indonesia, Nordics, New Zealand, Thailand2,323Water discharge, totalm³ Brazil, Spain, USA, Asia Hub, Benelux, France, Indonesia, Nordics, Singapore, Thailand22,461Brazil, Austria, France, Indonesia, Nordics, New Zealand, Thailand33,301Production entitiesm³ Brazil, Spain, USA21,657Brazil32,105Sales and service sitesm³ Asia Hub, Benelux, France, Indonesia, Nordics, Singapore, Thailand804Austria, France, Indonesia, Nordics, New Zealand, Thailand1,196Production entities with wastewater treatment in placetotal11Waste (production entities only)Excluding:Excluding:Waste generated at production entities, totalkgModular (UK) 3,083,096 China, Modular (UK) 3,369,007 Hazardous waste kg 34,736 55,488 Non-hazardous waste kg 3,048,361 3,313,519 Recycled waste kg 2,645,023 2,698,943 Disposed wastekg 438,074 670,064
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators STULZ Sustainability Report 2024 61 EnvironmentUnit20232024Waste generated at production entities, by originkgModular (UK), USA1,715,381China, Modular (UK) 3,369,007 Metal wastekg 574,487 437,278 Packaging wood kg 462,349 591,965 Paper and cardboardkg 361,091 1,690,729 Refrigerants kg 5,372 3,722 Residual wastekg 115,985 500,951 Otherkg 196,097 144,363 RefrigerantsRefrigerants used, totalkg99,650116,770Share of refrigerants with global warming potential (GWP) of≤ 150 (R1234ze, R454C)%8.52.2151–1,000 (R513A, R32)%7.14.11,001–1,500 (R449A, R134)%14.914.8>1,500 (R22, R438A, R407A, R407C, R404, R422D, R410A)%69.578.9Company fleetCompany vehicles, totaltotal688706With combustion enginetotal610637With alternative enginetotal7869Social Unit20232024EmployeesEmployeestotal 3,3033,503Female total 643703Male total 2,6602,800Employees by age< 30 total 66469730–50 total 1,8291,904> 50 total 810902Employees by contract Permanenttotal 2,6222,844Female total 502557Male total 2,1202,287Temporarytotal 681659Female total 141146Male total 540513Full-timetotal 3,1993,399Female total 578644Male total 2,6212,755Part-timetotal 104104Female total 6574Male total 3930Workers who are not employeestotal 140105Female employees in managerial positionstotal 3748Nationalities of employeestotal 89135
2024 341 45 296 107 38 69 73.5 2,589 45,623 17.6 4 38 62 2024 1,175 33.5 10 0 0 0 43,963 23,377 5,349 8,121 6,151 965 4,162 2,585 857 714 6 91.7 Social Employee turnover Female Male Employees on parental leave Female Male Unit total total total total total total Share of employees covered by collective bargaining agreements* % Training and education Employees participating in training courses Training hours, total Training hours, per participating employee Excluding: total Brazil, Benelux, Indonesia, Nordics, UK h h Brazil, Benelux, Indonesia, Nordics, UK Brazil, Benelux, Indonesia, Nordics, UK Health and Safety (production entities only) Excluding: 2023 531 70 461 87 26 61 55.1 3,173 17,954 5.7 4 69 5 2023 USA total total total Unit total % total total total total Production entities with a certified H&S management system in place Reportable accidents at work Injuries Governance and supply chain Governance Employees trained in business ethics Percentage of included employees trained in business ethics Sites with whistleblowing procedure in place Reports from whistleblower procedures Violations of environmental protection laws and directives Confirmed cases of corruption Materials (production entities only) Total purchase volume Mechanical components Raw materials Trade goods Electrical components Maintenance, repair, and operations (MRO) Suppliers (production entities only) Suppliers, total Europe Asia America Other Share of suppliers in same country as sourcing site Excluding: Excluding: Asia Hub, Indonesia, Mexico, Nordics, South Africa, UK Asia Hub, Indonesia, Mexico, Nordics, South Africa, UK 2,114 Italy, Austria, Singapore 66.8 Italy, Austria, Singapore 8 0 Modular (UK), Asia Hub, Indo- nesia, Mexico, Nordics, UK Modular (UK), Asia Hub, Indo- nesia, Mexico, Nordics, UK 0 Italy, Austria, Singapore 0 Italy, Austria, Singapore Excluding: Excluding: tonnes Brazil 44,421 Brazil tonnes tonnes tonnes tonnes tonnes total total total total total % 18,438 10,804 9,473 4,853 853 3,984 2,509 725 747 3 91.3 * 2024 data cover subsidiaries in Brazil, Germany, Italy, Spain, Austria, France, Netherlands, South Africa only (representing a total of 1,587 employees). 2023 data cover subsidiaries in Brazil, Germany, Italy, Spain, Benelux and South Africa only (representing a total of 1,479 employees). 62
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators GRI Content Index This Sustainability Report was compiled with reference to the GRI Standards 2021 and GRI 1: Foundation 2021 of the Global Reporting Initiative (GRI) and applies to the 2024 fiscal year (January 1 to December 31, 2024). GRI Sector Standards are not applicable. Disclosures conform to the latest available version of the GRI Standards, which can be downloaded here: → WWW.GLOBALREPORTING.ORG/HOW-TO-USE-THE-GRI-STANDARDS/ GRI-STANDARDS-ENGLISH-LANGUAGE/ GRI Standard Disclosure Reference and omissions GRI 2: General Disclosures 1. The organization and its reporting practices 2-1 2-2 2-3 2-4 2-5 2. Activities and workers 2-6 2-7 2-8 3. Governance 2-11 2-12 2-13 2-14 2-16 2-17 Organizational details Entities included in the organization’s sustainability reporting Reporting period, frequency and contact point Restatements of information External assurance Activities, value chain and other business relationships Employees Workers who are not employees 3, 12 –13, 66 12 –13, 66 66 67 66 3, 8 –10 51, 61 – 62 61; total workers only Chair of the highest governance body Role of the highest governance body in overseeing the management of impacts Delegation of responsibility for managing impacts Role of the highest governance body in sustainability reporting Communication of critical concerns Collective knowledge of the highest governance body 15 15 15 15 15, 44 15 4. Strategy, policies and practices 2-22 2-23 2-24 2-25 2-26 2-27 2-28 Statement on sustainable development strategy Policy commitments Embedding policy commitments Processes to remediate negative impacts Mechanisms for seeking advice and raising concerns Compliance with laws and regulations Membership associations 5. Stakeholder engagement 2-29 2-30 Approach to stakeholder engagement Collective bargaining agreement 4 – 5 16, 34, 44 15 –16, 22, 31, 44 16, 31, 44, 48 16, 44, 48 62; no reported incidents 19; exemplary selection 18 62; share of coverd employees only STULZ Sustainability Report 2024 63
GRI Standard Disclosure Reference and omissions GRI 3: Material Topics 2021 Material Topics 2021 3-1 3-2 Process to determine material topics 17; SR 2023 pages 18 –19 List of material topics 17 Material Topic: Sustainable Products GRI 3-3: Management of material topics GRI 301: Materials 2016 GRI 302: Energy 2016 GRI 416: Customer Health and Safety 2016 301-1 Materials used by weight or volume 301-3 Reclaimed products and their packaging materials 20 – 22, 24, 27, 29 43, 62; total weight by type used in production entities 29, 38 – 39; exemplary for production entities only 302-5 Reductions in energy requirements of products and services 24 – 26; approaches and examples 416-1 416-2 Assessment of the health and safety impacts of product and service categories 22, 40 Incidents of non-compliance concerning the health and safety impacts of products and services No known incidents GRI 417: Marketing and Labeling 2016 417-1 Requirements for product and service information and labeling 22, 38, 40 GRI 418: Customer Privacy 2016 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data 44; Germany only Material Topic: Resource-Efficient Production GRI 3-3: Management of material topics GRI 302: Energy 2016 302-1 Energy consumption within the organization 302-3 Energy intensity 302-4 Reduction of energy consumption 30 – 41 32, 60 60; per employee 24 – 25, 32 – 33; examples and actions only 303-1 Interactions with water as a shared resource 27 GRI 303: Water and Effluents 2018 303-3 Water withdrawal 303-4 Water discharge 305-1 Direct (Scope 1) GHG emissions 305-2 Energy indirect (Scope 2) GHG emissions 305-3 Other indirect (Scope 3) GHG emissions 305-4 GHG emissions intensity 27, 60; total withdrawal only; no analysis of water stress areas 60; total discharge only 34 – 35, 60, 67 34 – 35, 60, 67 34 – 35, 60, 67 60; Scope 1–3 (excl. use phase) per 10,000 € sales 305-5 Reduction of GHG emissions 36 – 37; exemplary 306-1 Waste generation and significant waste-related impacts 306-2 Management of significant waste-related impacts 38, 40 38 – 40 306-3 Waste generated 306-4 Waste diverted from disposal 306-5 Waste directed to disposal 38, 61; production entities only 38, 61; total diverted waste of production entities only 38, 61; total directed waste of production sites only GRI 305: Emissions 2016 GRI 306: Waste 2020 64
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators GRI Standard Disclosure Reference and omissions Material Topic: Responsible Supply Chain GRI 3-3: Management of material topics GRI 204: Procurement Practices 2016 204-1 Proportion of spending on local suppliers 42 – 49 43, 62; production entities only; local means same country as the sourcing entity GRI 205: Anti-corruption 2016 GRI 308: Supplier Environmental Assessment 2016 GRI 414: Supplier Social Assessment 2016 205-2 Communication and training about anti-corruption policies and procedures 44, 62 205-3 Confirmed incidents of corruption and actions taken No known incidents 308-1 New suppliers that were screened using environmental criteria 46 exemplary for China, 48 overall approach 414-1 New suppliers that were screened using social criteria 46 exemplary for China, 48 overall approach Material Topic: Good Employer GRI 3-3: Management of material topics 50, 52, 54, 56 – 57 GRI 401: Employment 2016 401-3 Parental leave 62; total employees with parental leave by gender only 401-1 New employee hires and employee turnover 61 – 62; total turnover by gender only 403-1 Occupational health and safety management system 15, 52 – 53, 62 403-2 Hazard identification, risk assessment, and incident investigation 403-3 Occupational health services 52 – 53 52 – 53 GRI 403: Occupational Health and Safety 2018 403-4 Worker participation, consultation, and communication on occupational health and safety 52 – 53; focus on production entities 403-5 Worker training on occupational health and safety 40, 52 – 53; focus on production entities 403-6 Promotion of worker health 52 – 53, 57 403-8 Workers covered by an occupational health and safety management system 52 – 53, 62; coverage of management systems 403-9 Work-related injuries 52, 62; total injuries according to local law; production entities only 404-1 Average hours of training per year per employee 54, 62; per participating employees 404-2 Programs for upgrading employee skills and transition assistance programs 54, 56; examples for programs 405-1 Diversity of governance bodies and employees 51, 56, 61; total employees by gender, age and region only 406-1 Incidents of discrimination and corrective actions taken No reported incidents GRI 404: Training and Education 2016 GRI 405: Diversity and Equal Opportunity 2016 GRI 406: Non-discrimination 2016 STULZ Sustainability Report 2024 65
About the Report This is the third Sustainability Report by STULZ, based in Hamburg, Sales and service sites KPI coverage Germany. It covers the operations of STULZ Air Technology worldwide. The report applies to the 2024 fiscal year (January 1, 2024 to December 31, 2024) and was published on October 23, 2025. The editorial deadline was October 13, 2025. The previous Sustainability Report was published on November 4, 2024 for the 2023 fiscal year. Our reporting is voluntary; no external auditing was conducted. Our aim is to transparently disclose to our stakeholders how STULZ manages sustainability in a comprehensive and future-oriented way. We present key areas and approaches, selected strategies, goals, actions, progress, and key performance indicators. We thereby demonstrate how STULZ deals with economic, environmental, social, and governance (ESG) concerns. SCOPE OF CONSOLIDATION This Sustainability Report covers 30 legal entities as subsidiaries, eight production entities, one software development site1, and 21 sales and service sites. Out of the eight production entities, Germany, Italy, India and USA are covered with integrated sales and service sites, Brazil and Modular (UK) with integrated sales sites. Production entities KPI coverage Stulz Brasil Ar Condicionado Ltda., Brazil Brazil Stulz Air Technology and Services Hangzhou Co., Ltd. China Stulz GmbH, Germany (headquarters)1 Germany Stulz-CHSPL (India) Pvt. Ltd. Stulz S.p.A., Italy Stulz Tecnivel, S.L.U., Spain Stulz Modular Ltd., UK India Italy Tecnivel (Spain) Modular (UK) Stulz Oceania Pty Ltd., Australia2 Stulz Oceania (Power) Pty Ltd, Australia2 Stulz Austria GmbH Stulz Belgium BV3 Dala Service Ar Conditionada, Ltda., Brazil Stulz Air Technology and Services Shanghai Co., Ltd. China Stulz France S.a.r.l. PT STULZ Air Technology Indonesia, Indonesia Stulz Malaysia Sdn. Bhd.3 Stulz México S.A. de C.V. Stulz Groep B.V., Netherlands3 Stulz Oceania Ltd., New Zealand Stulz Polska Sp. z o.o., Poland Stulz ASIA HUB Pte. Ltd., Singapore Stulz Singapore Pte Ltd.3 Stulz South Africa Pty. Ltd. Stulz España S.A., Spain STULZ Nordics AB, Sweden STULZ Siam Co., Ltd., Thailand Stulz UK Ltd. Stulz EMEA Center of Excellence – FZCO, United Arab Emirates4 Oceania Oceania Austria Benelux Brazil China France Indonesia Singapore Mexico Benelux Oceania Poland Asia Hub Singapore South Africa Spain Nordics Thailand UK EMEA 1 In this report, the operations of Stulz Digital Solutions GmbH, our software development site in Germany, are covered by the data for STULZ GmbH, Germany. 2 For technical reasons, the data for the two Australian sites is consolidated. 3 For technical reasons, the data for the following entities is consolidated: Belgium in Stulz Groep (Netherlands), Malaysia in Stulz Singapore. 4 EMEA is not included in the Key Performance Indicators. Stulz Air Technology Systems Inc., USA USA CONTACT The 30 subsidiaries come under the scope of the consolidated financial statements of Stulz Verwaltungs GmbH & Co. KG. They represent our worldwide operating entities under one of the STULZ Group’s business units, STULZ Air Technology. Thus, the scope of this Sustainability Report differs from the scope of the consolidated financial statement of STULZ Verwaltungs GmbH & Co. KG, for 2024 fiscal year, as this covers also other business segments. For questions about sustainability at STULZ and our sustainability reporting, contact our team: Mr. Ludger Ecke and Mr. Jan-Lucas Kinne sustainability@stulz.de 66
About STULZ Managing Sustainability Sustainable Products Resource-Efficient Production Responsible Supply Chain Good Employer Key Performance Indicators DATA COLLECTION AND METHODOLOGY An extensive screening of all Scope 3 categories was carried out regarding relevance and significance of emissions. As not relevant Data for this Sustainability Report was collected in collaboration or significant for the STULZ global Corporate Carbon Footprint with the relevant departments of STULZ and our international are the following Scope 3 categories: Processing of Sold Products site representatives. We have further improved data quality. (3.10), End-of-Life Treatment of Sold Products (3.12), Leased Some data remains unavailable at our subsidiaries. We clearly indi- Assets (3.13), Franchises (3.14) and Investments (3.15). cate excluded subsidiaries in the Key Perfomance Indicator section, also compared to 2023 reporting omissions. There Emission factors are no significant changes compared with the last report. Regarding methodology, we point out the following aspects: To calculate the GHG inventory 2024, we used emission factors expressed in CO²-equivalents (CO²e) of the International Energy Agency (IEA), the UK Department for Business, Energy & Industrial ▪ ▪ ▪ ▪ Data collection is now carried out at the organizational level Strategy (UK DBEIS), the Umweltbundesamt (UBA) Germany as rather than the country level. This may result in differences well as market-based emission factors for electricity contracts. if we relate statements only to production entities or only to sales and service sites. Methodology remarks and data exclusions Our newly included subsidiary in EMEA is not included in We used both the market-based and the location-based approach Key Performance Indicators in this report. to calculate Scope 2 emissions; we present the results for the We display health and safety data, as well as data on materials market-based approach. and suppliers for our production entities only because figures Most activity data is based on actual consumption such as kWh, are the most significant for these entities. km or tonnes-km used. Emissions for Scope 3.1 and 3.2 are Regarding our health and safety data, we have gathered infor- based on financial data, thus, they provide only a rough estimate mation on how many accidents had to be reported to authorities of emissions, especially with regards to purchased raw materials according to local laws and regulations as well as how many and components to build our AC units. accidents resulted in a work absence of more than six weeks. Data from Thailand and United Arab Emirates have been excluded Waste data also is only fully collected for the production entities. ▪ ▪ We use metric tonnes. ▪ Deviations due to rounding may occur in individual cases. due to unavailable data and insignificant size. Electricity data for France was not available but also insignificant with regards to low emissions of France’s energy mix. Upstream Transportation and Distribution (Scope 3.4) include all Corporate Carbon Footprint methodology inbound transports except for the United States and India (estimat- STULZ follows the GHG-Protocol Standard to calculate its global ed as significant) and Brazil (estimated as not significant). It further Corporate Carbon Footprint for 2024. Due to the methodological includes all outbound transportation where STULZ entities pay the improvements, results are not comparable with the carbon foot - transport and transport data is available. This is only the case for print displayed for Germany for the year 2023. Within the Key Germany, China and Brazil. Downstream Transportation and Distri- Performance Indicators, we display emissions excluding use phase. bution (Scope 3.9) is excluded due to lack of data for all outbound transports organized and paid by STULZ clients. This is the case for Organizational and operational boundaries all exported goods. The system boundaries for the GHG inventory were established using the operational control approach for all entities within financial consolidation (excluding Thailand and EMEA), applying the three scopes of the GHG-Protocol: Scope 1: direct emissions from combustion processes in stationary and mobile applications and direct emissions of fugitive gases. Scope 2: indirect emissions from purchased electricity and heating. Scope 3: indirect emissions from Purchased Goods and Services (3.1), Capital Goods (3.2), Fuel- and Energy-Related Emissions (3.3), Upstream Transportation and Distribution (3.4), Waste Generated in Operations (3.5), Business Travel (3.6), Employee Commuting (3.7), Downstream Transportation and Distribution (3.9), Use of Sold Products (3.11). Scope 3.8 (Upstream Leased Assets) is included in Scope 1 and 2. This report is publicly available on our website as a PDF file. → STULZ: SUSTAINABILITY REPORT STULZ Sustainability Report 2024 67
Publisher STULZ GmbH – Corporate Headquarters Holsteiner Chaussee 283 22457 Hamburg, Germany Tel. +49 40 5585 0 sustainability@stulz.de Sustainability consulting, content and editing STEINBACH STRATEGIEN Hamburg, Germany Design, layout and typesetting Cash Cow Farmers Hamburg, Germany Picture credits All images contained in this Report are the property of STULZ Group or have been approved by the proprietor. Reproduction in whole or in part of graphics, images, and text without the written permission of STULZ GmbH is prohibited. Note Content from these brochures may be used only with STULZ’s written consent. Exclusion of liability All disclosures in the Sustainability Report 2024 are based on in- formation that was collected and processed with the greatest of care. Nevertheless, errors cannot be completely excluded. All statements relating to the future were based on assumptions and estimates made at the time of publication. Date October 2025 Close to you all over the world With expert business partners in subsidiaries with production plants and sales and service partners all over the globe. For more information, visit our website at www.stulz.com or download our STULZ Products and Services app.