EU taxonomy

Regulation

The EU Taxonomy Regulation (EU 2020/852) entered into force on July 12, 2020, establishing criteria for environmentally sustainable economic activities related to six environmental objectives:

• Climate change mitigation (CCM)

• Climate change adaptation (CCA)

• Sustainable use and protection of water and marine resources (WTR)

• Transition to a circular economy (CE)

• Pollution prevention and control (PPC)

• Protection and restoration of biodiversity and ecosystems (BIO)

The first delegated act concerning the technical screening criteria for economic activities with substantial contribution to climate change mitigation and adaptation (the Climate Delegated Act) was formally adopted on June 4, 2021. A delegated act specifying the content and presentation of information to be disclosed by companies in scope of the EU Taxonomy was formally adopted on July 6, 2021. A delegated act amending the Climate Delegated Act (covering the environmental objectives of climate change mitigation and adaptation) and an Environmental Delegated Act addressing the remaining four environmental objectives were published in 2023.

As part of the Omnibus package, the Delegated Regulation 2026/73 entered into force on January 28, 2026. It includes amendments simplifying the content and presentation of information to be disclosed concerning environmentally sustainable activities and simplifying certain technical screening criteria for determining whether economic activities cause no significant harm to environmental objectives.

These amendments have been applied for the financial year 2025.

Disclosures

Under the Taxonomy regulation, dsm-firmenich is required to report on how much Turnover, Capital Expenditure (‘CapEx’) and Operating Expenses (‘OpEx’) are in scope of the Taxonomy Regulation (i.e., ‘Taxonomy-eligible activities’), and how much are aligned with the Taxonomy regulation (i.e., ‘Taxonomy-aligned activities’).

In accordance with the Omnibus Delegated Regulation, a materiality threshold is introduced for the assessment of economic activities. Economic activities that cumulatively account for less than 10% of turnover, CapEx or OpEx are not assessed for taxonomy eligibility or alignment. dsm-firmenich identified certain economic activities as non-material, these are reported separately in the summary table.

Turnover

Total turnover, as defined by the Taxonomy regulation, corresponds to the net sales from continuing operations as reported as part of the income statement in the Consolidated Financial Statements. dsm-firmenich identified the Pharma business as a non-material economic activity given the limited contribution to dsm-firmenich as a whole. No material taxonomy-eligible economic activities were identified.

Capital Expenditure

Total CapEx is determined based on the 2025 additions to, and acquisitions of, property, plant and equipment, intangible assets, and additions to right-of-use assets. More specifically, it includes the following items that can also be found in the Consolidated Financial Statements:

• Changes in the carrying amount of intangible assets (excluding goodwill) from ‘Capital expenditure’ and ‘Acquisitions’ (see Note 8 Goodwill and intangible assets to the Consolidated Financial Statements)

• Changes in the carrying amount of items of property, plant & equipment from ‘Capital expenditure’ and ‘Acquisitions’ (see Note 9 Property, plant and equipment to the Consolidated Financial Statements)

• Changes in the carrying amount of right-of-use assets from ‘New leases/terminations’ (see Note 9 Property, plant and equipment to the Consolidated Financial Statements)

In 2025, dsm-firmenich made no acquisitions. Taxonomy-eligible CapEx includes expenditures related to the purchase of output from Taxonomy-aligned economic activities and individual measures enabling the target activities to become low-carbon or to lead to greenhouse gas reductions, primarily relating to our office buildings. This was considered not material. In addition, no CapEx was identified for the Pharma business. As a result of the assessment, dsm-firmenich did not identify material taxonomy-eligible activities.

Operational Expenditure

Total OpEx, as defined by the Taxonomy regulation, includes direct non-capitalized costs that relate to research and development, building renovation measures, short-term lease, maintenance and repair, and any other direct expenditures relating to the day-to-day servicing of assets. Applying this definition to dsm-firmenich, total OpEx consists of maintenance (including building renovations) and direct R&D costs, excluding costs and income related to bad debts, government grants, depreciation and amortization, and own work capitalized. Taking into consideration the assessment of the limited contribution of the Pharma business to the turnover KPI, the OpEx related to this business within dsm-firmenich, is considered immaterial. As a result of the assessment, dsm-firmenich did not identify material taxonomy-eligible activities.

Summary table 2025