Resilience of our Strategy and Business Model

In the following, we describe the resilience of our strategy and business model in relation to climate change and the processes for identifying and assessing the main climate-related impacts, risks and opportunities.

To respond proactively to the challenges of climate change and to fulfil the increasing regulatory requirements of the European Union, Bechtle performed a climate risk analysis in 2024. This enables risks and opportunities to be recognised at an early stage and actions to be developed. Both physical and transition risks and opportunities were analysed. As part of the development of the Climate Protection Strategy 2030, Bechtle has identified initial impacts on climate change due to the generation of emissions and developed actions to reduce them. In the materiality analysis, impacts on climate change were comprehensively identified, assessed and described, both for our own area of business and for the upstream and downstream value chain.

The critical assumptions for analysing the resilience of our business model with regard to transition and physical climate risks are based on the climate scenarios used: SSP5-8.5 for physical climate risks and the “Net Zero Emissions 2050 Scenario” (NZE) of the International Energy Agency (IEA) for transition climate risks. The main critical assumptions are as follows:

• SSP5-8.5: This scenario leads to a temperature rise of 4° C and describes a social development path that relies on the continued increased use of fossil energy resources. In contrast to renewable energies, these are widely accepted. In conjunction with a global energy-intensive lifestyle, the immense increase in greenhouse gas emissions will continue until the end of the 21st century. At the same time, the global economy is growing rapidly. International cooperation ensures that the countries most affected by climate change receive support.

• NZE: According to IEA estimates, this scenario is the only one that will limit global warming to 1.5° C by 2050. It is based on reducing global energy demand and improving energy efficiency, both of which will counteract the accelerated growth of the world’s population. The focus here is on the long-term global supply of renewable energies and the avoidance of new coal and natural gas sites. The net-zero electricity supply in countries of the Global South and the strong growth in gross domestic product (GDP) there are equally crucial. However, this development path considers the well-being of the population to be more important than GDP. In addition, more and more technologies are being developed that benefit the environment and reduce CO₂ emissions.

The measurement of short-, medium- and long-term transiton risks and opportunities was based on the IEA’s "Net-Zero Emissions 2050 Scenario". For the measurement of transiton risks and opportunities, research was carried out that included benchmarking and the scientific reports on climate risks in the relevant sectors. In addition, a questionnaire was sent to experts from the fields of Property Management, Corporate Sustainability Management, IT, Investor Relations and other specialist areas. Material risks and opportunities were identified and discussed, thus defining the susceptibility, analysing the impact on assets and business activities and determining the probability of occurrence and necessary adjustment actions. We have included and assessed climate-related risks both in the climate risk analysis and in the risk catalogue of central risk management: Risk of physical damage from natural events from the group’s perspective, risks from natural events associated with physical damage (e.g. flooding, fire, strong winds) with direct damage to company buildings and workplaces and subsequent impairment of service provision.

The physical risks were measured using the Munich Re Location Risk Intelligence Platform for the locations of the group’s own business operations. The SSP5-8.5/RCP 8.5 scenario up to 2050 was used for this. Six indices from the IPCC (Intergovernmental Panel on Climate Change) World Atlas were used for the upstream and downstream value chain. The specific regional impacts were analysed using CMIP6 model projections for short-term (2021–2040), medium-term (2041–2060) and long-term (2081–2100) time horizons.

The following physical hazards were considered for the locations of the group’s own business operations: storm surges, river flooding, rising sea levels, stress caused by wild fires, drought, heat, cold, and heavy precipitation. The identified hazards may jeopardise the sites of Bechtle AG, the safety of the workforce and the reliability of the supply chains. The following risks were analysed for procurement and sales regions: mean temperature, maximum temperature, standardised precipitation index, surface wind, rising sea levels and dry spells. The identified hazards could jeopardise the availability of resources and transport. As a result, they could affect the reliability of the supply chain upstream, as well as the climatic conditions at the customer’s premises and thus also influence product requirements and demand.

A criticality approach was selected for the location of the entity’s own business operations. It defines which locations are critical for the operation of the core business and must therefore be assessed using the Munich Re tool.

The following was determined for the site selection:

• Locations with +100 full-time equivalents (FTE). All Bechtle AG locations with at least 100 FTE are included in the evaluation.

• Logistics centres: In addition, all logistics centres are included due to their central importance in terms of the core business and their pronounced dependence on location.

This selection meant that the analysis focused on 48 locations in eight countries (Belgium, Germany, France, the Netherlands, Austria, Switzerland, the United Kingdom and Taiwan).

For the physical climate risk analysis of the value chain, the relevant regions were defined using clearly measurable criteria. Procurement regions were identified on the basis of purchasing volume, and sales regions on the basis of sales volume, which resulted in twelve procurement regions and six sales regions as the basis for the study. In short, it looked at North, Central and South America, Europe, South, East and Southeast Asia. The procurement and/or sales regions were combined with the regions analysed by the IPCC in a cluster, enabling risk assessment at the regional level. This approach is less detailed than using the exact geo-coordinates of a supplier location, but is sufficient to analyse different supply chains, as it also takes into account the bypass roads, transport routes and possibly the origin of raw materials. In addition, sales territories are generally clustered by region and not by the specific location of a customer.

Hazard exposure was then measured as part of the resilience analysis. The medium risk identified concerning the locations is the increased energy requirement for air conditioning the locations due to heat stress. Other site-related risks, such as storm surges, river flooding, and stress caused by drought, cold, and heavy precipitation, are classified as low to moderate and do not require an adaptation plan. Uncertainty exists in the medium risk of increased energy requirements due to heat stress. As the risk is not high, it is classified as a non-material physical risk, and we address this moderate risk through self-generation plans and long-term supply contracts. Three main risk factors were identified in the value chain: rising temperatures, precipitation and periods of drought. The impact of these factors is classified as manageable as critical regions only affect a few suppliers, and customer preferences remain stable and are not significantly influenced by the identified climate risks.

The following material transition risks and opportunities with a high impact were identified:

Other transition opportunities with a smaller impact are:

• Conversion to decentralised energy generation/expansion of renewable energies/conversion to more efficient buildings (energy source): less energy purchased through in-house power generation (e.g. solar cells).

• Utilisation of lower-emission energy sources (energy source): switch to renewable electricity and energy resources, resulting in lower vulnerability to future fossil-fuel price increases, lower vulnerability to changes in carbon costs and higher capital availability.

• Improved availability of capital (market): The availability of more sustainable products and good climate performance can increase investment in companies and thus the availability of capital.

• Shift in consumer preference and increase in brand value (resilience): a strong response to climate-related challenges can build a positive brand.

• Shift in applicant and own workforce behaviour (resilience): Potential own workforce focus on corporate responsibility.

Other transition risks with a minor impact are:

• Lower availability of capital (market): The availability of capital is also increasingly dependent on the entity’s climate performance.

• Use of lower-emission energy sources (market): Additional costs for the purchase of electricity from renewable energy sources lead to higher operating costs.

• Decreasing security of energy supply/prices (market and technological changes): fluctuation in energy prices, abrupt and unexpected shifts in energy costs.

• Increased pricing for greenhouse gas emissions (carbon tax; ETS) (politics and law): rising costs for energy and electricity consumption, leading to a decline in competitiveness.

• Increasing pressure from investors with regard to the environmental performance of companies and products/services (reputation): risk of losing investors; investors place higher demands on sustainability criteria for investments.

• Increasing pressure from interest groups/negative stakeholder feedback (e.g. investors, customers, own workforce) (reputation): loss of competitive advantages due to increasing negative stakeholder feedback, reduced production capacity (e.g. delayed planning approvals, supply chain disruptions), negative impacts on HR management and planning (e.g. recruitment and retention of own workforce), negative impact on attractiveness for investors.

Pollution

In our materiality analysis, we identified seven negative impacts with regard to pollution along our value chain. The process of identifying potential IROs in connection with pollution is based on a screening of Bechtle sites and activities or relevant interfaces with the environment. All direct entity locations and relevant activities in the value chain were audited. The focus was on material upstream activities (in particular the procurement and transport of IT hardware) and downstream activities (disposal, recycling). Based on existing entity data and as part of source and desk research, as well as interviews, possible causes were analysed, IROs derived and then evaluated based on severity and probability of occurrence.

The material negative impacts relate to pollution in the upstream and downstream value chain. This includes air pollution caused by toxic emissions from the extraction of raw materials, heavy metals (mercury) and the illegal disposal of electronic waste. This can lead to respiratory diseases, lung damage among workers and residents, as well as environmental and climate pollution. The use of chemicals and heavy metals such as mercury in the mining of lithium and raw materials and in further processing leads to water and soil pollution, which jeopardises the health of workers and local residents as well as the ecosystems of the affected communities.

With its business model, Bechtle offers customers from the B2B sector hardware and software products, IT solutions and IT services. The sale of IT hardware accounts for a significant proportion of our business volume. As the identified material negative impacts in the area of pollution are particularly related to the raw materials used in IT hardware, we have an indirect share – even if they do not occur as part of our own business activities, and we cannot exert any direct influence. As part of our sustainable procurement strategy and our concept for sustainable logistics, we endeavour to reduce the material negative impacts in the areas of air, water, and soil pollution, also in cooperation with our partners in the supply chain.

Resource use and circular economy

In our materiality analysis, we identified three negative impacts and one opportunity with regard to resource use and the circular economy. The process of identifying potential IROs in connection with resource use and the circular economy is based on a screening of Bechtle locations and activities or relevant interfaces. All direct entity locations and relevant activities in the value chain were audited. The focus was on upstream and downstream activities due to their particular relevance to the topic of resource use and the circular economy. In this context, Bechtle has also reviewed its assets and business activities in order to identify and measure actual and potential material impacts, risks and opportunities (IROs) in connection with resource use and the circular economy. Ecological aspects of resource use (including material use and waste) and opportunities in the circular economy were taken into account using desk research.

The production of IT hardware requires large quantities of fossil fuels and biomass, leading to scarcity of resources, water and land. This negative impact is exacerbated by short product cycles in the IT market, which lead to high resource outflows and increased environmental problems. Only around 35 per cent of the raw materials used in IT hardware are recycled; this increases the demand for primary raw materials. As a retailer, our direct influence on negative impacts in the upstream and downstream value chain is limited. The negative environmental impact arises primarily in the upstream and downstream value chain during raw material extraction and production.

Our customers decide on the length of use. We recognise an indirect impact on the use of resources and the circular economy as we generate a significant proportion of our business volume with IT hardware. As part of our sustainable procurement strategy and our policies concerning the circular economy and sustainable logistics, we endeavour to reduce the negative impact of resource use by raising awareness and exploiting business opportunities through resource efficiency actions.

Own workforce

As part of our materiality analysis, we identified two significant risks and one positive impact for the company’s own workforce.

Workers in the value chain

In our materiality analysis, we identified three negative impacts in connection with labour in the value chain:

Bechtle’s business model is closely linked to global supply chains in which there are various challenges in the area of labour conditions and human rights. Risks relating to occupational safety, health standards and social aspects can arise in the upstream value chain in particular, for example, in raw material extraction and hardware production. We have identified these negative impacts as part of our business model since trading in IT products and solutions and manufacturing them are deeply embedded in global supply chains and form the core of our business model. We therefore have limited direct influence. We are committed to the universal principles of the UN Global Compact (UNGC) and other internationally recognised environmental and human rights standards. This responsibility is something that we exercise across all of our locations, and we expect our business partners to do the same. Bechtle recognises these challenges and implements targeted actions to minimise potential negative impacts and promote compliance with labour and social standards along the supply chain.

Our entity operates in global, complex supply chains. Based on our analysis of the research sources, we were able to identify negative impacts on workers both at manufacturers and in the context of upstream raw material extraction due to country-specific human rights concerns. Workers who may be particularly affected by human rights violations in our upstream value chain especially include those who mine, process and transport conflict minerals such as tin, tungsten, tantalum and gold in mines.

This work takes place in our supply chain, particularly in China and the Congo, where the lack of occupational health and safety and the use of child labour are still widespread according to independent observers. The material negative effects in our value chain are common and systemic. This applies in particular to child and forced labour in the extraction of raw materials, especially in mines in the Congo, where rare earths and conflict minerals are mined; occupational health and safety in hardware production especially in China where independent observers found inadequate protective actions; violence and unsafe working conditions in the extraction of raw materials in the Congo. These are not limited to individual incidents but relate to structural challenges in the countries where raw materials are mined and produced and are therefore part of global supply chains. Bechtle recognises this problem and is implementing actions to reduce its impact. Bechtle has published a sustainable procurement strategy comprising four focus topics. With regard to the own workforce in the value chain, the focus is on transparency and responsibility in the supply chain. The actions are aimed at working with suppliers and manufacturers to ensure compliance with human rights and environmental standards. To this end, Bechtle carries out a comprehensive supplier risk analysis and derives preventive actions from it. In addition, supplier audits are carried out via EcoVadis, for example, and the Code of Conduct for Suppliers of Goods and Services is applied. The human rights officer plays a central role in this. He monitors the risk analysis including assessment, defines actions to minimise the identified risks, presents the results and recommendations for action to the Executive Board and reviews the effectiveness and appropriateness of the actions implemented.

In preparing the sustainability risk analysis, addressing the issue of global supply chains and during the materiality analysis process, we have developed an understanding that people directly involved in the extraction, processing or transport of conflict minerals are at greater risk of negative impacts. We are also aware that workers in our value chain suffer particularly from a lack of or inadequate occupational health and safety or child labour, especially in countries where conflict materials are produced.

Consumers and end users

In our materiality analysis, we identified one opportunity and one risk for the topic of consumers and end users.

We do not currently observe any financial effects of the material opportunity and the risk on our financial position, results of operations or cash flows, not even in the next reporting period. We review the resilience of our strategy and business model on the basis of the regular risk surveys carried out by Central Risk Management.

The increasing importance of information security and data protection represents a material opportunity and a risk for Bechtle and is an integral part of our business model, especially for data-intensive services (e.g. managed services). New regulatory requirements, such as NIS 2, which has imposed stricter requirements on entities and organisations in critical and important sectors since October 2024, open up the opportunity to achieve competitive advantages through robust security actions.

This was one of the motivations for Bechtle IT to develop an information security strategy in 2024, which was adopted in the course of the 2025 fiscal year. Investments in improving the reliability and quality of our IT infrastructure and services can minimise risk, but also open up opportunities to retain customers, generate revenue and tap into new markets.

Governance

In our materiality analysis, we identified two risks with regard to corporate governance. The following relevant criteria were taken into account to ensure a comprehensive and well-founded analysis.

• Location: The analysis covers all geographical regions in which Bechtle operates, including the main locations in Germany and the international branches.

• Activity: The process covers all of Bechtle’s divisions, in particular IT services, IT trading, cloud services and Bechtle Circular IT. Different activities are analysed with regard to their specific risks and opportunities in order to map industry-specific and entity-specific factors.

• Sector: Bechtle focuses on the special features of the IT sector, which is strongly characterised by technological innovation.

We do not currently observe any effects of material risks on our financial position, results of operations or cash flows. We also do not currently identify any material risks and opportunities where there is a material risk of a material adjustment to the carrying amounts of the assets and liabilities recognised in the associated financial statements in the next reporting period. We review the resilience of our strategy and business model on the basis of the regular risk surveys carried out by Central Risk Management.