ESRS E3 – Water

Water

Material Impacts, Risks, and Opportunities

In our double materiality assessment, we identified the following negative impacts, and a risk associated with water consumption and withdrawals in our own operations and our upstream value chain.

IRO

Description

Value chain

Time horizon

Water consumption and withdrawal

The Consumer Business Segment in particular manufactures products that require large amounts of water in the production process, that cannot be returned to the water cycle.

Own operations (Consumer)

Large amounts of water are consumed for some intermediate products and raw materials (e.g., on palm (kernel) oil and cotton plantations) that cannot be returned to the water cycle in the region.

Upstream

The major water withdrawal in the production process may lead to water scarcity in the vicinity of production sites. This ultimately has an impact on the natural environment and may result in a depletion of groundwater.

Own operations

An acute water shortage in regions with very high water risk may disrupt industrial processes and lead to production delays, reduced efficiency, increased downtime, and costs for alternative solutions.

Own operations

Positive impactNegative impactRiskOpportunityShort termMedium termLong term

At Beiersdorf, we use water to manufacture our products, and it is an important ingredient in our product formulations. In addition, processes such as steam generation, refrigeration, and chillers require water to operate. Our production sites therefore draw fresh water from various sources, including groundwater and third-party water. Water scarcity can significantly affect our production by interrupting essential processes and causing delays, efficiency losses, and higher costs.

Beiersdorf uses the World Resources Institute’s (WRI) “Aqueduct 4.0 Water Risk Atlas” to identify sites located in areas facing water-related risks, including areas of high water stress. The WRI tool converts complex hydrological data into indicators of water-related risks, including the “Total Water Risk” indicator. This metric aggregates factors such as physical water quantity and quality, groundwater stress, and both regulatory and reputational risks to provide a comprehensive measure of overall water risk in specific areas. Based on this assessment, the Consumer Business Segment has identified seven sites and the tesa Business Segment two sites which are located in areas at water risk, including areas of high water stress. The nine affected sites are situated in areas that are classified as “high” or “very high” according to the “Total Water Risk” indicator.

Beiersdorf has established policies to manage material water-related impacts and risks. These policies address water consumption and withdrawal in particular – two key issues according to our double materiality assessment. Our policies do not cover the topic of marine resources, as it is not considered material for Beiersdorf. The policies also do not include provisions focusing on water consumption in areas affected by water risks within our upstream and downstream value chain.

Consumer

Beiersdorf Environmental Policy (Consumer)
Topic-related content		The aim of the “Beiersdorf Environmental Policy” is to reduce water consumption throughout our operations and value chain, focusing on efficient usage, recycling, and adopting renewable water sources. Our approach includes modern wastewater treatment processes to ensure that our water discharge meets stringent quality standards, as well as regular water risk assessments using tools such as the WWF’s “Water Risk Filter” and WRI’s “Aqueduct 4.0 Water Risk Atlas.” Aligned with our CARE BEYOND SKIN sustainability agenda, we are also developing products designed to reduce water use to a minimum in both production and consumer application.
Reference		For a detailed description of the “Beiersdorf Environmental Policy,” please refer to chapter “ESRS E1 – Climate Change.”

tesa

tesa Environmental & Energy Policy
Topic-related content		tesa has established the “tesa Environmental & Energy Policy” to globally promote environmental protection, support risk mitigation, and enable safe and sustainable water sourcing and usage. This policy focuses on water conservation and process efficiency, taking into account local circumstances and needs, while complying with local regulations. The “tesa Environmental & Energy Policy” also mandates internal reporting and monitoring of water usage. Water sources subject to reporting include groundwater and third-party water. In line with the policy, our tesa sites are required to implement water management practices such as: managing water consumption (monitoring both the quantity and quality of water withdrawals and discharges), minimizing potential impacts on water scarcity and reducing emissions to water through innovation, best practices, and ongoing controls, and regularly evaluating internal and external developments that may affect business practices in the future (e.g., forward-looking process technologies, legal changes, and community water issues). The “tesa Environmental & Energy Policy” does not explicitly address water treatment or the design of products and services with respect to water-related issues. We also adopt preventive measures to avoid accidents. For example, liquids that pose a threat to water are only ever discharged, refilled, or stored in areas that are equipped with appropriate collection facilities. These measures are reviewed annually through external ISO 14001 audits.
Reference		For a detailed description of the “tesa Environmental & Energy Policy,” please refer to chapter “ESRS E1 – Climate Change.”

Beiersdorf has implemented an action plan to achieve its water-related policy objectives. Our actions focus on all sites that are located in areas at water risk, including areas of high-water stress. All actions described below are intended to contribute to our water reduction targets detailed in the section on targets in the present chapter.

Consumer

Implementation of Advanced Water Reclaim and Closed-Loop Technologies
Action		Since 2023, we have introduced advanced water recovery technologies to maximize water reuse and reduce freshwater dependency. These technologies include closed-circuit reverse osmosis (CCRO), reverse osmosis, and closed-loop water systems.
Scope		Production sites globally, Consumer Business Segment
Time horizon		Ongoing
Expected outcome		These efficiency measures have the potential to reduce water consumption intensity by 30% at our Sanand site and by 50 to 60% at the Bangkok site. Combined with additional projects, these technologies could deliver cumulative water savings of up to 70% compared to 2020 levels at selected sites.
Progress		Production sites in India (Sanand) and Indonesia (Malang) have already implemented advanced water treatment technologies. Four additional sites located in Thailand, Spain, Mexico, and Poland are in the final stages of implementation and are expected to become fully operational in 2026/2027.

Responsible Water Management through Process Optimization and Innovation
Action		At our Consumer Business Segment, we have deployed modern equipment and technologies to address high water consumption, particularly in cleaning processes and water generation technologies. All production sites treat their wastewater in their own wastewater treatment plants (WWTPs), in WWTPs within industrial parks, or in externally located third-party WWTPs. We do not discharge untreated wastewater into the environment, and we strive to reuse treated wastewater for cooling, irrigation, or sanitation at the respective production sites. This approach contributes to maintaining our “Leadership in Energy and Environmental Design” (LEED) certification, which indicates that our production sites meet global sustainability standards. Regular reviews by internal and external experts further support our facilities in meeting the latest standards and continuously optimizing processes. To further strengthen good governance and continuous improvement, we are deploying “Cotopaxi,” an Environmental Resource Management (ERM) system, at our production sites. This system enables real-time data collection and transparent reporting. It also helps us to comply with global standards. Moreover, we collaborate with water suppliers, local authorities, and neighboring companies to foster a community- and best-practice-focused approach to sustainable water management.
Scope		Production sites globally, Consumer Business Segment
Time horizon		Ongoing
Expected outcome		This action should contribute to reducing our water consumption, to enhancing collaboration with external stakeholders, and to complying with LEED certification standards to further support our sustainability targets.
Progress		In 2025, we reviewed the ERM software rollout to monitor implementation. We plan to complete installation at all sites by 2027, with the exception of our two smallest production sites.

Zero Liquid Discharge (ZLD) in India
Action		Our production site in Sanand, India, operates as a ZLD facility, preventing untreated wastewater being released to the environment. Instead, all water is reused for irrigation across ~22,000 m² of green area, which requires ~100 m³ of water daily. This eliminates effluent release, maximizes internal reuse, and closes the water loop on site.
Scope		Production site in Sanand, India; Consumer Business Segment
Time horizon		Ongoing
Expected outcome		We intend to reuse 100% of treated water for irrigating green spaces, eliminate effluent discharge to the environment, and improve circularity at site level.
Progress		ZLD infrastructure has been fully operational since 2016. All treated water is directed to irrigation of green spaces, with no external release. Future monitoring will focus on efficiency improvements and integrating reuse metrics into corporate reporting.

Rainwater Harvesting and Managed Aquifer Recharge in India
Action		To enhance local water resilience, we have implemented a rainwater harvesting and recharge system at our production site in Sanand, India. Covering a built-up area of ~28,000 m² and a green area of ~22,000 m², a total of eleven recharge wells have been installed to capture an average of 800 mm/year of rainfall.
Scope		Production site in Sanand, India; Consumer Business Segment
Time horizon		Ongoing
Expected outcome		This action, along with the fact that the Sanand factory is a ZLD facility, could ensure that ~80% (~53,000 m³) of the site’s total annual water withdrawal is replenished back into the aquifer, contributing to local water balance, reduced basin stress, and improved water stewardship. Calculations are based on long-term average rainfall data of ~800 mm/year for the region, combined with the effective catchment areas. Recharge potential assumes that harvested rainwater can be directed into eleven recharge wells with an estimated infiltration efficiency of ~70%, depending on rainfall variability, soil permeability, as well as condition and regular maintenance of the wells.
Progress		Infrastructure for all eleven recharge wells and rainwater harvesting channels has been completed. Initial monitoring data supports our assumed target recharge volumes. Next steps include performance tracking and potential replication at other high-risk sites.

tesa

Shutting Down Steam Humidification Units to Reduce Water Usage
Action		At the tesa production site in Hamburg, we have finished replacing humidification units in areas handling significant quantities of solvents. These units were initially installed to prevent charge dissipation. Based on new technical insights regarding the effect of steam humidification, we have replaced them by intensifying other safety practices. This approach aligns with two fields of action of our “tesa Environmental & Energy Policy,” namely reducing water consumption and regularly evaluating internal and external developments related to new technologies.
Scope		tesa plant in Hamburg, Germany (tesa Werk Hamburg GmbH)
Time horizon		2025
Expected outcome		We expect the project to save 3,600 m³ of water per year.
Progress		The project was completed successfully; the last humidification system was deactivated in June 2025.

Installation of Additional Cooling Water Circulation Systems to Reduce Groundwater Usage and Wastewater Discharge
Action		To reduce the reliance on water and its discharge into waterways, the tesa plant in Offenburg plans to install additional circulation systems for cooling water, starting with one specific coating line. This action relates to our objectives of reducing water consumption and implementing best practices in line with the “tesa Environmental & Energy Policy.”
Scope		tesa plant in Offenburg, Germany (tesa Werk Offenburg GmbH)
Time horizon		2025 to 2027
Expected outcome		We expect to save 10,000 m³ of groundwater per year during the pilot phase at the selected coating line.
Progress		In 2025, we finalized the project’s implementation concept, held technical discussions and maintained supplier engagement. We also completed installation of the first cooling water circulation system at the selected coating line.

Suzhou Water Balance and Automated Monitoring Project
Action		At our production site in Suzhou, China, which we identified as a site in an area of high water stress, we addressed water-related risks by launching a water monitoring and efficiency program. We launched the first steps in 2024: we installed sensors and integrated an automated sensor-based system into the site’s digital infrastructure to collect water consumption data. In 2025, we monitored the reliability of the system and the collected data to prepare the next project stages which include the implementation of efficiency initiatives and supporting continued improvements to the site’s water use.
Scope		tesa Plant in Suzhou, China (tesa Plant (Suzhou) Co., Ltd.)
Time horizon		2026
Expected outcome		We aim to improve transparency and control over water consumption, identify water-saving opportunities through water balance testing, and establish a solid basis for setting quantitative water reduction targets.
Progress		In 2025, we successfully continued monitoring the system and the data it provides. A water balance test is scheduled for 2026 to identify further water-saving opportunities and support future water reduction targets.

Consumer

The water-related targets of our Consumer Business Segment directly align with the ambitions set out in our “Beiersdorf Environmental Policy.” They also support our broader ambition to minimize environmental impacts and contribute to global sustainability frameworks addressing water scarcity. The water targets were drafted with the involvement of internal stakeholders, including the sustainability and environmental teams, the production sites, and local Safety, Health, and Environment (SHE) teams.

Reduction of Water Consumption per Manufactured Product by 25%
Target		The global, voluntary target to reduce water consumption promotes water efficiency: By 2025, we aim to reduce water consumption per product manufactured by 25% (compared to the 2018 base year).
Base year and baseline value		In 2018, global water intensity was 504 liters/1,000 products manufactured.
Progress		In 2025, water consumption per product manufactured was reduced by 8% compared to the base year to 464 liters/1,000 products. External and – in some cases – unforeseen factors such as delays in technology implementation, local water regulations, site extensions, and development activities resulted in delays in several planned projects. Consequently, we were not able to achieve our water reduction target by 2025. Nevertheless, since the base year, measurable reductions in water consumption per manufactured product have been achieved through efficiency measures and the implementation of advanced water technologies. However, experience has shown that a global intensity-based target does not adequately reflect local water availability, basin-level risks, or site-specific impact potential. Building on these learnings, we are shifting towards a more targeted approach that prioritizes absolute and relative water reductions in high-risk and water-stressed locations, thereby increasing the environmental relevance and effectiveness of our actions.
Scope		The target covers all sites of the Consumer Business Segment. The aim is to ensure that all sites, regardless of whether or not they are located in areas at water risk, are pursuing efforts to reduce water consumption and improve water quality.
Methodologies and assumptions		The target is based on a combination of scientific methods and data-driven approaches. These include comprehensive water risk analyses at all production sites to identify and minimize potential risks, as well as the use of primary data on water consumption.
Target monitoring		We monitor our targets as described in the section on metrics in the present chapter.
Changes vs. prior year		Originally, we intended to achieve this target in 2025, but for the reasons detailed under “Progress,” we replaced the previous global water-intensity reduction target with a risk-based and context-specific target. This change reflects the increased methodological maturity and our commitment to focusing water-saving efforts where they deliver the greatest environmental benefit.

100% of Key Sites Located in Basins with High Water Risk will Install Advanced Water Reuse
Technologies

Target

Building on the learnings of our 2025 water intensity reduction target, we have introduced a new voluntary global target from 2026 to 2030 focused on advanced water reuse at key production sites located in high water risk basins. By 2030, 100% of these sites will implement advanced water reuse technologies in industrial processes such as air conditioning, process cooling, or steam generation. These measures aim to significantly reduce freshwater withdrawals, enhance basin water stewardship, and strengthen site-level water resilience in water-scarce regions.¹

Base year and baseline value

2025; 43% of sites in high-risk basins have already implemented modern technologies for water reuse

Progress

Since this a new target, progress will be reported from 2026 onwards.

Scope

The target covers production sites of the Consumer Business Segment located in highly water-scarce or high water-risk basins.

Methodologies and assumptions

The target is based on site-level water balance assessments, engineering feasibility studies, and primary water consumption data. It incorporates planned investments in water reclaim and reuse technologies, benchmarked against industry best practice. To identify sites at high water risk, we refer to the “Baseline Water Stress” indicator as defined by WWF’s “Water Risk Filter” and WRI’s “Aqueduct 4.0 Water Risk Atlas,” as well as to internal site-level risk assessments.

As part of the continued maturation of our water stewardship strategy and in response to emerging best practices in science based contextual and basin-level water management, we are evolving our performance metrics beyond a sole focus on water intensity and efficiency and adopting a more holistic approach.

Target monitoring

Progress will be monitored through our internal SUSY system, which enables site-level tracking of reuse volumes and facilitates consolidated global reporting.

1	Key sites refer to own production sites with a share of more than 3% of global water withdrawal.

tesa

In the tesa Business Segment, there are currently no defined measurable water-related targets. This is due to the fact that a sufficiently granular company-wide water-related database is still in development.

We currently track water use through the “SoFi” database, our software to collect and monitor health, safety, and environmental KPIs. Providing the relevant data in “SoFi” is mandatory for ISO 14001-certified production sites within the tesa Business Segment. These sites undergo regular internal audits as well as external environmental audits as part of matrix certification. Each year, water data such as water consumption and effluent quantities are collected and recorded at production sites. We also regularly conduct water risk assessments and report water-related data through our CDP reports.

As a result, the data currently available is a robust baseline, yet reliably monitoring measurable water-related targets requires more granular data. We therefore plan to increase reporting frequency, enabling us to build a stronger database as the foundation for measurable water targets.

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Metrics Related to Water
	Unit	Consumer	tesa	Group
Total water consumption	m³	626,200	125,440	751,640
Total water consumption in areas at water risk, incl. areas of high water stress	m³	449,813	28,085	477,898
Total water recycled and reused	m³	136,638	0	136,638
Total water withdrawals	m³	1,479,358	464,345	1,943,703
Total water discharges	m³	853,158	338,905	1,192,063

Methods and Significant Assumptions

The measurement of water-related metrics is based on quarterly data input from the SHE managers at each site for the Consumer Business Segment, while tesa collects data annually. This data is collected using the “Sphera SCCS” tool, which allows standardized and consolidated information across all sites. Topic experts validate the data on a quarterly basis for Consumer and annually for tesa to ensure accuracy, consistency and adherence to defined methodologies.

Key assumptions include the reliability of the data provided by the SHE managers at site level and the effectiveness of the validation process by topic experts.

The data exclusively relates to our production sites and does not include our office locations. All data is primary data and has not been estimated or extrapolated.

Currently, water-related metrics are validated internally by topic experts. Topic experts conduct comprehensive reviews (on a quarterly basis for the Consumer Business Segment, and annually for tesa) to ensure data integrity and compliance with internal and external reporting standards. Although the validation process is robust, future validation by an independent external body could be considered to increase transparency and provide additional assurance on the accuracy and reliability of the metrics.

Annual Report 2025

Annual Report 2025

ESRS E3 – Water

Material Impacts, Risks, and Opportunities

Methods and Significant Assumptions

Topic filter

Results

ESRS E3 – Water

Material Impacts, Risks, and Opportunities

Policies Related to Water

Actions Related to Water

Targets Related to Water

Metrics Related to Water

Methods and Significant Assumptions

Topic filter

Results