Risk Management and Internal Controls over Sustainability Reporting

Beiersdorf acknowledges the importance of robust risk management and internal control processes that underpin the integrity of sustainability reporting.

A Group-wide analysis identified the relevant positions and the associated processes with material risks for sustainability reporting. Safeguarding and control actions were defined for positions and processes at risk (primarily environmental metrics relevant to control in the ESRS E1 and ESRS E5 areas). These included separating functions within a process to prevent conflicts of interest, and implementing manual approval procedures using the dual control principle, to ensure the accuracy and completeness of the data. IT checks, access restrictions, and authorization concepts in the IT system are designed to guarantee the integrity of the data, and system-based procedures for data processing are aimed at minimizing human error.

The risk assessment was conducted in 2025 and will be performed annually going forward. It focuses on the completeness and accuracy of the sustainability information. Potential risks within the key processes are identified and prioritized using a standardized method based on the potential impact and probability of occurrence of these risks. The main risks identified include incomplete or inconsistent data collection, and errors in manual consolidation of data from different systems.

The results of the risk assessment and the internal controls are integrated into the relevant functions and processes. In close coordination with Internal Audit, the Executive Board monitors and assesses these safeguarding and control measures several times per year. Beiersdorf plans to continue to expand its internal control system going forward in order to meet the increasingly complex requirements of sustainability reporting.