Storck Group - Sustainability Policy

Storck has been successfully producing high-quality confectionery for over 120 years. The company is still family-run today and is now one of the largest confectionery manufacturers in the world. Storck employees work constantly to make the world a little sweeter, a bit more warm-hearted and happier every day.

Consistency, togetherness, mutual trust and a view toward future generations characterise our family business. Ever since the company was founded, sustainable behaviour has been an integral part of Storck’s values and philosophy. For us, it is a matter of course not only to strive for short-term economic success, but also to grow the company sustainably by acting with social and ecological awareness. The principle of responsibility is the foundation and source for our actions, guiding our activities in all areas of the business. It is a way of working that cares for people as well as sustainably managing our raw materials, energy and waste.

As a family business, economic performance and stability are critical to our company’s existence. Only sustained profitable growth secures our entrepreneurial freedom and protects jobs. As a family-run company, Storck always subordinates the short-term effect to a comprehensive strategy. Long-term, socially and environmentally compatible perspectives provide decisive impetus for strategic decisions.

We pursue a long-term sustainability approach. Priority is given to the quality and safety of our products, our employees, the supply chain and the environment.

Consistently high product quality is our objective, and our quality management process guarantees it. This includes our regularly certified production plants, transparent standards as well as internal and external testing and sensor technology laboratories. Product manufacturing at Storck starts "from the ground up". We prefer to manufacture our confectionery ourselves in accordance with the highest safety standards. A constant, well-trained workforce ensures the consistent quality and safety of our products.

As a family business, we feel particularly close to our employees. They are the heart of the company and the focus of our actions. Our "employee family" is united in respect and mutual appreciation. This close bond is the foundation for everything that makes Storck special and successful. Our Code of Conduct encourages all employees to live our values - responsibility, honesty, integrity, and fairness - every day at work with each other and with our partners. A wide variety of personalities of different ages and genders, different nationalities and religions and with diverse lifestyles reflects the diversity in our company.

We maintain trusting and long-term relationships with our business partners and are committed to reliable and transparent trading practices. We have therefore committed to comply with and implement principles for fair business relations in the food chain. By certifying all production sites for our confectionery according to the SA8000 social standard, we commit ourselves to respecting human rights. Compliance with the requirements of SA8000 is also binding for our suppliers combined with a comprehensive supplier code of conduct. Our alignment with sustainable standards builds a further foundation of our responsible procurement. We have implemented reliable measures to fulfil due diligence obligations in the supply chain and protect human rights, as explained in our declaration of principles on human rights (https://www.storck.com/en/company/sustainability/declaration-on-human-rights). We have a central reporting system set up for reports of serious violations of the law or regulations along the entire supply chain. We want to prevent risks from materialising before they arise and therefore rely on effective preventive and remedial measures, which we are constantly expanding and improving.

It is our goal to keep environmental impacts minimal. We motivate our employees to uphold this and support them in always using natural resources responsibly. The efficient use of energy and the reduction of greenhouse gas emissions in particular are guiding principles for Storck. We maintain a certified energy management system and optimise all processes with the aim of reducing the use of resources. These include production and cleaning processes, packaging, storage, and logistics as well as the external certification of our CO₂ balance sheet. We increasingly purchase raw materials certified according to recognised social and environmental standards.

• We manufacture our products in our own facilities according to high standards and always guarantee the best quality and reliable safety of our products.
• We aim for sustained, profitable growth to maintain our independence as a family business.
• We provide long-term and reliable jobs to offer a good economic basis for our employees.

• Storck cultivates a family "we" culture and respectful cooperation within the company.
• Paramount to the principles of our company are occupational safety and protection of the health of our employees.
• Training, further education and versatile qualifications of our employees are of great importance to us.
• We appreciate the great diversity of our colleagues and offer equal opportunities to all.
• We guarantee labour and human rights in our factories and demand that they are also respected in our supply chain.
• We continuously monitor our supply chain and check for compliance with environmental and human rights standards with the aim of preventing potential incidents.
• We are certified in accordance with the SA8000 social and labour standard. Independent auditors check compliance with requirements on child labour, forced labour, discrimination, disciplinary measures and procedures, freedom of association, working hours, remuneration, health protection and safety. With SA8000 certification, Storck also guarantees that a socially responsible management system is properly implemented, applied and monitored.
• As a result, we do not tolerate abusive child labour and other human rights violations in our supply chain.
• We focus on long-term relationships and are strongly committed to fair treatment of business partners.
• We maintain good relations with the communities in which our company is located and are engaged socially.

• We use energy efficiently and strive to continuously reduce greenhouse gas emissions in our production. Our goal is to further reduce the use of primary energy from fossil fuels per tonne of finished goods and will cut consumption by at least 45% by 2030 compared to the base year 2008. Furthermore, we are aiming to reduce CO₂ emissions per tonne of finished goods by 50% by 2030 compared to 2008.
• We maintain an ISO 50001-certification and therefore independently certified energy management system that is designed for efficient, resource-conserving use and continuous improvement.
• Storck is verified in accordance with the ISO 14064-1 standard (carbon footprint accounting) in order to reliably quantify and monitor greenhouse gas emissions according to Scope 1, 2 and 3.
• The use of renewable energies such as photovoltaic systems is increasing and will be further expanded.
• For packaging, we use materials sparingly in line with the respective requirements and increase the proportion of recyclable packaging. The recyclability of the packaging with German recycling systems is already 93%. We are aiming for full recyclability by 2030. We use recycled material in our packaging wherever it is possible for us as a food manufacturer.
• We reduce our waste and recycle valuable materials. An established waste management system ensures that waste is reliably collected, disposed of and recycled separately.
• Storck uses water responsibly and keeps consumption as low as possible. Careful monitoring and constant checks, highly efficient cleaning processes and staff training all contribute to this.
• We are committed to the environmentally and socially fair cultivation of raw materials and are increasingly sourcing products certified according to recognised standards.
• The focus here is particularly on cocoa, an important raw material for us. Storck promotes and improves the traceability of cocoa beans. By the end of 2030, 100% of the cocoa beans purchased by August Storck KG will be traceable to polygonally mapped farms. Our goal is also to be able to source 100% cocoa certified according to sustainability standards or independently verified cocoa worldwide by 2030. Already in 2023, we sourced 100% of our cocoa originating from Africa certified or verified according to sustainability standards.
• Traceability and transparency in the supply chain are promoted through our own involvement in countries of origin and the establishment of partnerships.
• To protect against deforestation, Storck is committed to ending the abusive deforestation and destruction of other important ecosystems in its own raw material supply chain. From 2025, 100% of the cocoa we source will be deforestation-free in accordance with the EU Deforestation Regulation.
• Storck also opposes the use of banned pesticides in the cultivation of raw materials. Our suppliers are obliged to comply with German and European food law requirements. Prohibited pesticides are not permitted. REGULATION (EC) No. 396/2005 regulates, among other things, the handling of pesticide compounds that are not authorised in the EU. We have implemented a corresponding control monitoring system.

The sustainability policy has been adopted by the Board of AUGUST STORCK KG. It is supported by all business units. The Managing Director of Production and Engineering is comprehensively responsible for its implementation. The policy is being communicated to all employees. It is available to the public via the Storck website and on request.

Berlin, 1 February 2024

Axel Oberwelland

Chairman of the Board