Lindt & Sprüngli reporting criteria

The table below shows reporting criteria defined by Lindt & Sprüngli for KPIs which are part of the ESG assurance of the financial year 2023. Please refer to the GRI index for assured GRI indicators.

KPI	Metric, methodology, definition	Assumptions, calculations, data collection	Scope and exclusions

Improving livelihoods: Responsible sourcing main commitment
Sourced volumes of raw and packaging materials bearing significant sustainability risks covered by a responsible sourcing program	This metric reflects the percentage of sourced volumes of raw and packaging materials bearing significant sustainability risks covered by a responsible sourcing program during the reporting period. Also see the definitions of the following terms: Raw and packaging materials bearing significant sustainability risks: At Lindt & Sprüngli, the following twelve raw and packaging materials have been identified as priority raw materials: almonds, cocoa, coconut oil, coffee, dairy, eggs (in our own production), Turkish hazelnuts, palm oil, pulp- & paper-based packaging materials, soy lecithin, raw sugar (cane and beet), and vanilla. These priority materials were defined based on a comprehensive raw material risk assessment which considered criteria such as environmental, social, and supply chain risks and impacts, as well as sourced volumes and stakeholder expectations. It considered the unique risks and impacts of individual raw materials as well as the varying risk levels between different geographical origins. Raw and packaging materials are assessed as compliant with our Responsible Sourcing Standard through one of the following means: Selected sustainability related certifications (e.g., Rainforest Alliance, RSPO, Bonsucro, FSA silver level, ProTerra, etc.) Selected suppliers’ sustainability programs Lindt & Sprüngli Farming Program. For each raw materials in scope, specific criteria have been defined to detail what certification, assessments and programs are accepted.	Data is collected at subsidiary level and consolidated at Group level. Data is collected via the financial reporting system. Volume data for Packaging, Raw Material (RSI) and cocoa are the basis for the calculation. The portion of responsibly sourced volumes is defined according to guidelines.	Production subsidiaries, co- manufacturing and co-packaging; cocoa: excluding volumes purchased by licensees and by co-manufacturers from third parties; eggs: excluding Russell Stover and co-manufacturers; packaging: includes production subsidiaries and co-packaging as packing only results from these sites.

Improving livelihoods: Responsible sourcing EcoVadis assessment
Average EcoVadis sustainability assessment score of Lindt & Sprüngli suppliers	This metric reflects the weighted (by procurement expenditure) average of the EcoVadis sustainability assessment score of Lindt & Sprüngli suppliers during the reporting period. For the calculation of EcoVadis Scores, the term “Suppliers” has to be understood as unique EcoVadis assessments which did not expire before December 12, 2023, to avoid double counting.	Data is collected and consolidated on Group level, not applicable for subsidiaries. Data is collected via the financial reporting system. For the calculation, the EcoVadis scores of the suppliers and the respective sums of expenditure are used. The weighted EcoVadis scores are added up. The time of the reported spend (procurement expenditure) is based on the posting dates of the invoices independently of the dates of invoice, payment dates, due date (linked to the payment terms).	Group
Scored suppliers in EcoVadis	This metric reflects the total number of scored suppliers in EcoVadis during the reporting period. For the calculation of EcoVadis Scores, the term “Suppliers” has to be understood as unique EcoVadis assessments which did not expire before December 12, 2023, to avoid double counting.	Data is collected and consolidated on Group level via the financial reporting system, not applicable for subsidiaries. Data is collected via the financial reporting system. This is an extraction from the EcoVadis tool. The reporting period has to be selected in the respective system and the number of group suppliers with an EcoVadis score can be counted.	Group

Improving livelihoods: Responsible sourcing Cocoa
Cocoa beans equivalent sourced (cocoa beans, powder, butter, and chocolate mass/bean equivalents according to ICCO conversion rates) Thereof sourced through sustainability programs (Farming Program or other sustainability program, verified or certified by third party)	This metric reflects the amount of cocoa beans equivalent sourced within the reporting period and the amount (volume) thereof sourced through sustainability programs or through the Farming Program. Also see the definitions of the following terms: Cocoa beans equivalent: At Lindt & Sprüngli, cocoa beans equivalent products that are sourced include cocoa beans, butter, powder, and chocolate mass, all of which are reported in metric tons (Mt) using the ICCO conversion rates. Sustainability programs: According to the World Cocoa Foundation, these are interventions or investments made to support cocoa sustainability related to farmer livelihoods and income, reduction of the risk of child labor and forced labor, community development, women and youth empowerment, elimination of deforestation, and environmental sustainability. At Lindt & Sprüngli, programs include the Farming Program (in-house program) and third-party programs from suppliers (Cargill Cocoa Promise sustainability program) or certification (Rainforest Alliance). Lindt & Sprüngli Farming Program: Our own cocoa sustainability program through which we aim to contribute to creating decent and resilient livelihoods for cocoa farmers and their families and to encourage more sustainable farming practices. Minimum criteria for volumes sourced under the Farming Program are defined in the long-term sourcing agreement and include establishing first mile traceability systems, payment of farmer premiums, trainings or coaching of farmers, activities under the No-Deforestation & Agroforestry Action Plan, as well as roll-out or implementation of a CLMRS for volumes from child labor risk countries. Minor non-compliances, if identified, are reviewed with suppliers for continuous improvement.	Data is collected at subsidiary level, consolidated at Group level. Data is collected via the financial reporting system.	Cocoa and cocoa products purchased by subsidiaries. This excludes volumes purchased by licensees and by co-manufacturers from third parties.

Contributing to an intact environment: Conservation of biodiversity and natural ecosystems
Cocoa beans equivalent (cocoa beans, powder, butter, and chocolate mass; in volume) sourced from farmers covered by a “No- Deforestation & Agroforestry Action Plan”	This metric reflects the percentage of cocoa beans equivalent sourced from farmers covered by a “No-Deforestation & Agroforestry Action Plan” during the reporting period.	Data is provided by suppliers and subsidiaries, collected and consolidated at Group level. Data is collected via the financial reporting system. Metric is calculated based on all cocoa products (in beans equivalent) sourced through sustainability programs. For volumes sourced through the Farming Program, determination of covered is based on supplier primary data for farm geolocations and the related risk assessment completed by both Lindt & Sprüngli and third parties. Minor non-compliances, if identified, are reviewed with suppliers for continuous improvement. Volumes sourced through other sustainability programs are included so long as the program criteria require CFI reporting.	Cocoa and cocoa products purchased by subsidiaries. This excludes volumes purchased by licensees and by co-manufacturers from third parties.

Contributing to an intact environment: Water
Absolute water withdrawal (from municipal sources only)	This metric reflects the absolute water withdrawal (from municipal sources only) during the reporting period. Also see the definitions of the following terms: Water withdrawal: According to GRI: The total water withdrawal in m³ from third-party water sources, meaning: municipal water suppliers and municipal wastewater treatment plants, public or private utilities, and other organizations involved in the provision, transport, treatment, disposal, or use of water and effluent	Data is collected at subsidiary level and consolidated at Group level. Data is collected via the consolidation system for our climate data. Sum of municipal water withdrawal volume from production subsidiaries based on meters, invoices and estimations. The data collection period for this indicator is based on actuals for January to September and estimates for October to December where available. In certain individual sub-indicators, actuals for January to August or January to July may have been used, with estimates for the remaining months.	Production subsidiaries only

Contributing to an intact environment: Semi-finished product waste
Semi-finished product waste in the production process per ton produced (excluding destruction of finished goods)	This metric reflects the semi-finished product waste in the production process per ton produced during the reporting period. According to Lindt and Sprüngli’s definition, waste is the material loss during production that cannot be used again (cannot be reworked) to produce saleable products (excluding packaging waste during production). This KPI only includes semi-finished product waste, which is measured by comparing process inputs & outputs and allocating the difference to waste or non-waste categories; any resulting unidentified amount is also proportionally allocated to waste.	Data is collected at subsidiary level and consolidated at Group level. Data is collected via the financial reporting system.	Production subsidiaries only

Contributing to an intact environment: Packaging
Total weight of packaging used	This metric reflects the total weight of packaging used/consumed by Lindt & Sprüngli in metric tons. Packaging reported under this KPI consists of Consumer Unit (CU), Transportation Unit (TU) & Display Unit (DU) according to Lindt & Sprüngli internal definitions during the reporting period. This KPI includes packaging for all materials Lindt & Sprüngli is responsible for, which means that packaging provided by co-packers, co-manufacturers, or third parties which will be used for Lindt & Sprüngli is included. This also consists of materials like stretch film or adhesive tapes. Excluded are materials that are bought by Lindt & Sprüngli, its co-packers, or co-manufacturers and designed to be disposed of by those same parties (which means that they are not sold to the consumers). Also see the definitions of the following terms: Consumer Unit (CU): According to Lindt & Sprüngli's internal definition, the Consumer Unit contains all packaging materials that consumers take with them and dispose of into household waste. Second benefit materials (e.g., plush, porcelain, surprises) are excluded, as they are supposed to be kept by the consumer. Hence, materials include: paper/cardboard, aluminum, plastic, glass, tinplate, brass, cotton, and combinations of it (= composite). Transportation Unit (TU): According to Lindt & Sprüngli’s internal definition, the Transportation Unit contains packaging materials with the function of transporting Consumer Units to the Point of Sale (POS). Display Unit (DU): According to Lindt & Sprüngli’s internal definition, the Display Unit contains packaging materials that are shipped with or without the product to the Point of Sale (POS) and which accommodate Consumer Units or Transportation Units to support sales.	Data is collected at subsidiary level and consolidated at Group level. Data is received from suppliers and collected via the financial reporting system. The data is based on production consumption from the ERP systems. For co-packaging and specific niche materials, external data sources may be required. The data per material is then clustered and summed up to reporting categories.	Group This includes production subsidiaries and co-packaging as packing only results from these sites. DU: Excluded are materials which are used for sales support without carrying Consumer Units or Transportation Units and/or which are of permanent nature as well as all types of packaging material which are used by our suppliers to deliver goods to Lindt & Sprüngli.
Packaging made from recycled materials	This metric reflects the percentage of packaging, by weight, made from recycled materials during the reporting period. This KPI defines recycled materials as recycled content which, consistent with definitions in ISO 14021:2016, “Environmental labels and declarations – Self-declared environmental claims (Type II environmental labeling)”, consist of the proportion, by mass, of recycled or recovered material in a product or packaging, whereas at Lindt & Sprüngli only post-consumer materials shall be considered as recycled content (e.g., PET bought for packaging purposes that was recycled before being processed by Lindt & Sprüngli and is hence classified as post-consumer material from another waste stream). Lindt & Sprüngli does not differentiate between recovered and recycled materials and just collects data as “recycled materials”. Also see the definitions of the following terms: Recycled material: Recycled material is defined as material that has been reprocessed from recovered (or reclaimed) material by means of a manufacturing process and made into a final product or a component for incorporation into a product. Pre-consumer material: Pre-consumer material is defined as material that has been diverted from the waste stream during a manufacturing process. Excluded are the reutilization of materials such as rework, regrind, or scrap that are generated in a process and are capable of being reclaimed within the same process that generated them. At Lindt & Sprüngli, an example of that is packaging foil that is recovered during the packaging process before the product is sold to the customer/leaves the production facility and is reused for other purposes, e.g., to package other products. If the foil is used for the same purpose (e.g., to package other products) this would count as “recovered material”. Post-consumer material: Post-consumer material is defined as material generated by households or by commercial, industrial, and institutional facilities in their role as end users of the product that can no longer be used for its intended purpose. This includes returns of material from the distribution chain.	Data is collected at subsidiary level and consolidated at Group level. Data is received from suppliers and collected via the financial system. The initial source of the data is the overall Packaging consumption as described in “Packaging weight” and based on the material specification and the performed recyclability assessment, the recyclable materials per reporting category are summed up. Examples for packaging made of recycled materials are corrugated brown boxes or PET trays.	Group This includes production subsidiaries and co-packaging as packing only results from these sites.
Packaging that is designed to be recyclable	This metric reflects the percentage of packaging, by weight, that is recyclable during the reporting period. Lindt & Sprüngli uses an internal “traffic light system” to identify when a material classifies as “recyclable”. The assessment is based on external consultant knowledge and is supported by certification on request. Also see the definitions of the following term: Recyclable: Lindt & Sprüngli considers a material as recyclable based on a developed collection and sorting infrastructure at state-of-the-art technology on an industrial scale. It is important to note that the availability of proper local infrastructure and markets for collecting, sorting, and recycling packaging material – as well as enhanced consumer behavior – must exist where our products are consumed for the objectives to be realized. Lindt & Sprüngli understands recycling in such a way that the recycled material typically can be used in a way to substitute virgin material in various applications. If this is given, we see a proper recycling in place. It does not systematically correspond to packaging being “effectively recycled” in all countries.	Data is collected at subsidiary level and consolidated at Group level. Data is received from suppliers and collected via the financial reporting system. The initial source of the data is the overall Packaging consumption as described in “Packaging weight” and based on the material specification and the performed recyclability assessment, the recyclable materials per reporting category are summed up. Recyclable material examples are transparent praliné trays or aluminum foil for tablets.	Group This includes production subsidiaries and co-packaging as packing only results from these sites.

Performing together: Diversity, equity, and inclusion
Proportion of women in senior leadership as a percentage of total employees in senior leadership positions	This metric reflects the rate of female representation in senior management positions (Management Levels 1 and 2) during the reporting period. It excludes employees who self-identify as “Male” or “Other”. Also see the definitions of the following term: Employee category: Senior Management: Management Level 1 (CEO/country responsible/for Lindt & Sprüngli International: Group Management) + Management Level 2 (employees who are part of the Executive Team/for Lindt &Sprüngli International: Department heads and direct reports to Group Management) Middle Management: Management Level 3 All Directors/Heads & Senior Managers reporting to Executive Team (including Directors participating in Executive Team meetings but not officially Executive Team Members; excluding Senior Managers reporting to Level 3 Directors/Heads/Senior Managers) Other: Lower Management and no managerial position Department: administration (= marketing, finance, personnel, EDP, General Services, all other), R&D, selling (= sales force, other selling, direct retail stores – permanent, direct retail stores – temp/hourly paid, merchandising force, merchandising agency contractors), distribution (= warehousing, transportation), manufacturing (= manufacturing direct & indirect)	Data is collected at subsidiary level, consolidated at Group level. Gender is self-identified. Data is received from suppliers and collected via the financial reporting system. It excludes “Male” or “Other”. This metric reflects the rate of female representation in senior leadership positions (Management Levels 1 and 2) during the reporting period.	Group

Delighting consumer: Transparent and responsible communication
Rate of audit compliance with EU Pledge to avoid advertising to children Daytime television advertising Overall television advertising Digital media	This metric reflects the rate of audit compliance with EU Pledge to ensure not to conduct advertisements with children as primary media targets in the case of children below the age of 13 (data collected at country level; for TV: France, Germany, Italy, Netherlands, Romania, and Spain in 2023; for digital: France, Germany, Italy, Netherlands, Poland, and Spain in 2023) during the reporting period. To assess the rate of audit compliance, we refer to the latest EU Pledge commitments and apply the latest EU Pledge nutrition criteria model.	Data is collected and consolidated at Group level, not applicable for subsidiaries. Data is received from suppliers and collected via the financial reporting system. The rate is calculated based on % of total TV commercials audited by external party Ebiquity (for TV) which are compliant with less than 30% of audience being <13 years old. For Digital, % of total profiles audited by external party EASA that are compliant with not advertising to children <13 years old. The data collection period for this indicator is Q2 2023 for TV audit, and October 2, 2023, to November 15, 2023 for the Digital audit.	Countries for the EU Pledge Audits are selected by the third party. EU Pledge rules apply only to the companies across the EU. Therefore, only EU countries can be chosen.