ISS Global A/S

Annual report

2024

ISS Global A/S

Buddingevej 197

DK – 2860 Søborg

Denmark

Tel.: +45 38 17 00 00

www.issworld.com

CVR 21 40 83 95

Annual report

1 January – 31 December 2024

Approved at the annual general meeting

On 11 April 2025

Bjørn Raasteen

Chair of the annual general meeting

OVERVIEW 2

Content

)

Introduction to the ISS Global Group ....................................................................................................................................... 3

Five-year overview .......................................................................................................................................................................... 4

2025 outlook ................................................................................................................................................................................... 5

Group results .................................................................................................................................................................................. 6

Commercial development............................................................................................................................................................ 9

Cash generation and free cash flow........................................................................................................................................ 11

Capital structure ........................................................................................................................................................................... 12

Northern Europe .......................................................................................................................................................................... 13

Central & Southern Europe ....................................................................................................................................................... 14

Asia & Pacific ................................................................................................................................................................................. 16

Americas ......................................................................................................................................................................................... 17

OneISS strategy ............................................................................................................................................................................ 18

Our people ..................................................................................................................................................................................... 21

Our business risks ....................................................................................................................................................................... 24

Corporate governance ............................................................................................................................................................... 30

Diversity .......................................................................................................................................................................................... 35

Sustainability statement ............................................................................................................................................................. 37

Consolidated financial statements .......................................................................................................................................... 86

Parent company financial statements ................................................................................................................................. 171

Management statement.......................................................................................................................................................... 187

Independent Auditor’s Report ............................................................................................................................................... 188

Independent auditor’s limited assurance report on the Sustainability Statement .................................................. 192

Forward looking statement .................................................................................................................................................... 195

Management review

The Management review comprises pp. 3-85.

OVERVIEW 3

Introduction to the ISS Global Group

An integral part of the ISS A/S Group

ISS Global A/S is indirectly, wholly owned by ISS

A/S, a leading, global provider of workplace and

facility service solutions, listed on Nasdaq Copen-

hagen. ISS Global A/S owns – directly or indirectly

– the ISS Group’s operating entities (together re-

ferred to as ISS, the Group or the ISS Global

Group). In addition, ISS Global A/S operates as the

ISS A/S Group’s internal bank and holds the major-

ity of its external funding. As part of its financing

function, ISS Global A/S has entered into a Euro

Medium Term (EMTN) Programme under which

notes have been issued and admitted to trading

on the Luxembourg Stock Exchange.

The ISS Global Group is an integral part of the ISS

A/S Group. Thus, the strategic direction, imple-

mentation and overall management is determined

by the Board of Directors of ISS A/S for the ISS A/S

Group as a whole, rather than specifically for the

ISS Global Group. Likewise, all operating, financing

and investing activities are managed for the ISS

A/S Group as a whole, rather than specifically for

the ISS Global Group.

Governance

The management team of the ISS Global Group

formally consists of the Board of Directors and Ex-

ecutive Management of ISS Global A/S registered

with the Danish Business Authority. Since ISS

Global A/S has no employees and no operating ac-

tivities independently of the ISS A/S Group, the ISS

Global Group relies on the management team of

ISS A/S as well as on certain operational, manage-

ment and administrative services being provided

by ISS World Services A/S, ISS Global A/S’s parent.

Impact on the Management review

Due to this Group structure, the sections OneISS

strategy, Our people, Our business risks, Corpo-

rate governance and Diversity of the Management

review, pp. 18–36, are described in the context of

the ISS A/S Group.

Sustainability statement

From 2024, the Corporate Sustainability Reporting

Directive (CSRD) requires us to report on environ-

mental and social activities and impacts as well as

how we incorporate sustainability in our govern-

ance framework. The new requirements have

been adopted by the EU in a set of European Sus-

tainability Reporting Standards (ESRS). We have

prepared the Sustainability Statement in the An-

nual Report 2024 in accordance with ESRS.

The double materiality assessment (DMA) for the

ISS A/S Group covers the Group’s inherent expo-

sure to sustainability-related impacts, risks and

opportunities. None of the Group’s identified ma-

terial impacts, risks and opportunities are linked to

activities exclusively or predominantly performed

at the level of ISS A/S or ISS World Services A/S

and the impact on metrics and performance for

the Group from the activities at the isolated level

of ISS A/S or ISS World Services A/S is negligible.

Thus, DMA for the ISS Global Group is in all mate-

rial aspects the same as for the ISS A/S Group.

In addition, strategic direction and targets, includ-

ing in relation to sustainability matters, such as

people targets and net zero commitments, are set

for the ISS A/S Group as a whole with no separate

targets or commitments for ISS Global A/S or the

ISS Global Group. As an indirectly wholly owned

subsidiary of ISS A/S, ISS Global is subject to the

same governance principles and policies as appli-

cable to the ISS A/S Group both in terms of busi-

ness conduct, values and business ethics.

Due to this structure, the Sustainability statement,

pp. 37-85, is described in the context of the ISS

A/S Group.

Australia … US

…

ISS A/S

ISS World Services A/S

ISS Global A/S

OVERVIEW 4

Five-year overview

(DKKm unless otherwise stated)

2024 2023 2022 2021 2020

Results

Revenue, excl. IAS 29 83,026 78,704 73,704 71,383 70,767

Revenue 83,782 78,702 73,858 71,383 70,767

Operating profit before other items, excl. IAS 29 4,889 4,198 3,840 2,920 (2,501)

Operating profit before other items 4,877 4,150 3,811 2,920 (2,501)

Operating profit 3,538 2,881 2,602 1,628 (4,899)

Finance costs, net (359) (410) (313) (573) (549)

Net profit from continuing operations 2,606 2,016 1,991 496 (5,262)

Net profit from discontinued operations (59) (1,725) (36) 110 46

Net profit 2,547 291 1,955 606 (5,216)

Cash flow

Cash flow from operating activities 3,527 3,284 3,020 3,221 (886)

Acquisition of intangible assets, property

and equipment, net

(498) (553) (588) (424) (552)

Free cash flow, excl. IAS 29 1,915 1,835 1,608 1,900 (2,143)

Free cash flow 1,916 1,819 1,616 1,900 (2,143)

Financial position

Total assets 49,553 44,766 43,564 40,357 40,134

Goodwill 15,920 15,121 15,853 15,063 15,093

Additions to property and equipment,

right-of-use assets

1,432 1,298 1,104 1,164 1,120

Equity 10,030 7,126 7,026 4,246 3,195

Net debt 5,826 6,602 8,072 9,816 12,345

(% unless otherwise stated)

Financial ratios

Operating margin, excl. IAS 29 5.9 % 5.3 % 5.2 % 4.1 % (3.5)%

Operating margin 5.8 % 5.3 % 5.2 % 4.1 % (3.5)%

Equity ratio 20.2 % 15.9 % 16.1 % 10.5 % 8.0 %

Organic growth 6.3 % 9.7 % 8.4 % 2.0 % (6.6)%

Acquisitions/divestments, net 1.0 % 0.5 % (5.8)% (0.5)% (0.2)%

Currency adjustments (0.8)% (3.6)% 0.9 % (0.6)% (2.1)%

Total revenue growth 6.5 % 6.6 % 3.5 % 0.9 % (8.9)%

For definitions, see p. 170.

OVERVIEW 5

2025 outlook

In 2024, ISS completed a wide-ranging review to

update the OneISS strategy to drive further growth

in the years to come. The strategic direction remains

unchanged, but the updated strategic priorities are

set to release the untapped potential for ISS,

including a reduction in the size of Executive Group

Management of ISS A/S leading to shorter decision

times.

The outlook for 2025 assumes that macroeconomic

and geopolitical uncertainties remain elevated, at

the same time making ISS’s business model more

relevant than ever.

The execution of the OneISS strategy through our

updated strategic priorities continues and will

support the commercial growth agenda, enable

further cost efficiencies and ensure continued high

focus on driving shareholder value.

The outlook is excluding any effects of hyperinflation

(IAS 29).

Organic growth

4 – 6%

(2024: 6.3%)

Organic growth is expected to be 4-6% for 2025

driven by price increases across the Group to offset

cost inflation and protect operating margins. As we

focus on growing with our customers, and see high

activity levels at our customers’ sites, we expect vol-

ume growth to be positive. We also expect net new

wins to be a positive contributor and the bid pipeline

to develop positively in 2025. Impact from projects

and above-base work is expected to contribute neg-

atively to growth given the extraordinarily high levels

in Q4 2024 driven by the hurricane response and

restoration work in the US.

Operating margin

1)

> 5.5%

(2024: 5.9%)

Operating margin is expected to be above 5.5% as

we continue to invest in future growth opportunities.

Across the Group, we expect to see further opera-

tional improvements and efficiencies, including scale

benefits. Our focus is on increasing nominal operat-

ing profit before other items and thereby driving in-

creased shareholder value.

1)

Based on operating profit before other items

Free cash flow

> DKK 2.2 billion

(2024: DKK 1.9bn)

The expectation for free cash flow is based on an un-

derlying free cash flow of above DKK 2.4 billion.

However, adjusted for DKK 0.2 billion in prepay-

ments for services not yet rendered and receivables

paid before due date, the reported free cash flow is

expected to be above DKK 2.3 billion for 2025. As-

suming payments withheld by Deutsche Telekom

(DTAG) in 2024 are received in 2025, reported free

cash flow is expected to be above DKK 2.9 billion, re-

fer to p. 7 for further on DTAG.

Other revenue impacts

Acquisitions and divestments, net

~ 0.5%-point (positive)

Based on acquisitions and divestments completed

by 28 February 2025 (including in 2024).

Foreign exchange rates

~ 1%-points (negative)

2)

Based on current exchange rates, excluding any ef-

fects of hyperinflation (IAS 29).

2)

The forecasted average FX rates for 2025 are calculated using the actual aver-

age FX rate for January 2025 and the average forward FX rates (as of 17 Febru-

ary 2025) for the remaining eleven months of 2025

Organic

growth

Operating

margin

Free

cash flow

Annual report 2023 4 - 6% > 6% > DKK 1.7bn

H1 2024 5 - 6% > 6% > DKK 1.7bn

Actual 2024 6.3% 5.9% DKK 1.9bn

Outlook 2024

Follow up

The outlook should be read in conjunction with Forward-

looking statements, p. 195 and Our business risks, pp.

24–29.

For Definitions, see p. 170.

OUR PERFORMANCE 6

Group results

In a world marked by macroeconomic uncer-

tainty, ISS continued to deliver operational and

financial progress in 2024. This was not least

due to successful implementation of price in-

creases and higher activity levels at customer

sites, but also broad-based efficiency improve-

ments and cost reductions from the continued

execution of the OneISS strategy as well as nota-

ble improvements in the UK and on the

Deutsche Telekom contract. As a result, we deliv-

ered improved operating results for the fourth

consecutive year and achieved our financial tar-

gets for all three financial KPIs.

Revenue

Group revenue was DKK 83.8 billion, an increase of

6.5% compared with 2023. Organic growth was 6.3%,

the impact from acquisitions and divestments, net was

1.0%, whereas currency and other effects were nega-

tive 0.8%, including the impact of hyperinflation in

Türkiye of 1.0%.

Organic growth momentum slowed down over the

year as expected from 6.0% in Q1 to 4.8% in Q3, but

then picked up in Q4 ending at 8.3%, largely driven by

projects and above-base work, including the signifi-

cant hurricane response and restoration work per-

formed in the US.

Price increases contributed around 6.1% to organic

growth of which around half was related to price in-

creases implemented in Türkiye. Across the Group,

cost inflation remained relatively high, though de-

creasing compared to 2023, predominantly driven by

adjustments to minimum wages and collective agree-

ments. We continued to successfully mitigate this ef-

fect through implementation of price increases to cus-

tomers in accordance with contractual terms.

Volume growth contributed around 0.5%-point to or-

ganic growth driven by a combination of increased ac-

tivity levels at customer sites and expansion of con-

tracts with existing customers, mainly in Northern Eu-

rope and Asia & Pacific.

Net contract wins were supported by significant start-

ups in Q2 with Defra in the UK and the Danish Build-

ing and Property Agency in Denmark. However, as a

result of deliberate exits of contracts in 2023 and

2024, most notably in Americas and Asia & Pacific,

growth was negative by around 1%-point.

Revenue from projects and above-base work ac-

counted for 16% (2023: 16%) of Group revenue and

contributed around 1% to organic growth for the

Group. This impact was mainly driven by Americas,

due to the hurricane response and restoration work in

the US as well as broad-based growth in Northern Eu-

rope.

Revenue from key account customers grew organically

by 6.1%, mainly resulting from price increases, in-

creased activity levels at customers’ sites and custom-

ers’ investments in workplaces. Key accounts ac-

counted for 71% of Group revenue in 2024 (2023:

71%).

All regions contributed to the positive organic growth

in 2024. Central & Southern Europe reported double-

digit growth mainly due to price increases and volume

growth in Türkiye. In Northern Europe growth was

largely driven by increased activity levels at customers’

sites and start-up of contracts in the UK and Denmark.

Asia & Pacific was mainly supported by solid growth in

Australia and Singapore offset by a decrease in pro-

jects and above-base work as demand for Covid-19 re-

lated work ceased in 2023. In Americas, growth was

held back by the deliberate contract exits in 2023 and

2024, especially with an industry and manufacturing

customer in the US, though offset by price increases

and significant above-base work related to the hurri-

cane response and restoration work.

OUR PERFORMANCE 7

Operating profit before other items

Operating profit before other items amounted to DKK

4,877 million for an operating margin of 5.8% (2023:

5.3%). Excluding the effect from hyperinflation in Tü-

rkiye (IAS 29), operating profit before other items was

DKK 4,889 million leading to an operating margin of

5.9% (2023: 5.3%).

The increase in operating margin was broad-based

and driven by continued operational improvements,

efficiencies and cost savings initiatives across the

Group. Furthermore, operating leverage from the

higher revenue impacted margin positively. In addi-

tion, margin benefitted from certain one-off income in

Asia & Pacific, though partly offset by non-recurring

costs at corporate level.

On the Deutsche Telekom contract and in the UK, op-

erational and financial improvements continued dur-

ing the year, and thus both contributed to the Group’s

margin enhancement. Despite solid improvement in

2024, both remained dilutive to the Group operating

margin. For the Deutsche Telekom contract, the arbi-

tration process initiated by ISS regarding certain con-

tractual disagreements progressed according to plan.

The final oral hearing in the arbitration proceedings is

scheduled to take place in mid July 2025 as further de-

scribed in the right-hand column.

Inflation rates generally decreased compared to 2023,

however, continued to impact our cost base, mainly

due to increasing minimum wages and collective

wage agreements. ISS has strong and well-embedded

processes in place, and price increases were imple-

mented in line with contractual agreements. Com-

bined with operational efficiencies, the effect from in-

flation was, like previous years, mitigated, and the op-

erating margin was largely unaffected.

From a regional perspective, margin improvements

were broad-based, with all regions delivering margin

increases compared to last year, largely achieved

through realisation of OneISS efficiencies and operat-

ing leverage from the higher revenue.

Central & Southern Europe contributed most to the

improvement, driven by generally solid developments,

most significantly in Switzerland and Türkiye, and con-

tinued operational improvements on the Deutsche

Telekom contract. Northern Europe benefitted from

general efficiencies and margin improvements across

the region, in particular Denmark and Finland, as well

as continued progress in the UK. In the Americas,

margin improvements were achieved across the re-

gion, mainly as a result of deliberate exits of contracts

in 2023 and 2024 in the US. In Asia & Pacific margin

increased due to continued operational efficiencies

and positive effects from certain one-off items in Aus-

tralia and Singapore.

OUR PERFORMANCE 8

Other income and expenses, net

Other income and expenses, net was an expense of

DKK 151 million (2023: expense of DKK 90 million),

mainly due to a reassessment of the contingent con-

sideration related to the disposal of the 40% minority

stake in ISS Türkiye in 2021 and an additional loss re-

lated to the divestment of Specialized Services in the

US in prior years.

Operating profit

Operating profit was DKK 3,538 million (2023: DKK

2,881 million), and thus grew 23% compared to 2023.

Finance income and costs, net

Finance costs, net amounted to DKK 359 million

(2023: DKK 410 million) including a non-monetary gain

of DKK 86 million relating to hyperinflation restate-

ment (IAS 29) in Türkiye (2023: DKK 87 million). Exclud-

ing the impact of IAS 29, finance costs, net were DKK

445 million (2023: DKK 497 million). The decrease was

primarily due to higher interest income on the pro-

ceeds from the bonds issued in May 2024 until repay-

ment of the bonds maturing in December 2024. Fur-

thermore, foreign exchange losses decreased DKK 72

million, primarily due to TRY depreciating 11% against

DKK (2023: 39%). These were partly offset by an in-

crease in interest expenses on borrowings driven by

issuance of new EMTNs in May 2024 and increased in-

terest rates throughout 2024.

Income tax

Income tax amounted to DKK 573 million (2023: DKK

455 million), resulting in an effective tax rate of 18.0%

(2023: 18.4%). The effective tax rate was favourably in-

fluenced by interest limitation rules and release of val-

uation allowances on deferred tax assets in Germany,

whereas hyperinflation adjustments (IAS 29) in Türkiye

impacted negatively.

Net profit from discontinued operations

Net profit from discontinued operations was a loss of

DKK 59 million (2023: loss of DKK 1,725 million) and

related to the loss generated in ISS France up until the

divestment was completed on 9 April 2024.

Net profit

Net profit was DKK 2,547 million (2023: DKK 291 mil-

lion).

OUR PERFORMANCE 9

Commercial development

In 2024, ISS successfully extended several

long-standing and strategically important cus-

tomer relationships such as the global contract

with Barclays and the contract with Nordea in

the Nordics. We also extended and expanded

several local and regional key account con-

tracts across the Group. Despite the loss of a

customer in the UK in the Business Services &

IT segment, and some deliberate exits of non-

accretive contracts, especially in Americas and

Asia & Pacific, our retention efforts secured a

customer retention rate in 2024 of 93% (2023:

95%).

Furthermore, ISS won three large new key account

contracts in the UK, the most significant win being

the 7-year contract, with a 3-year extension possibil-

ity, with the Department of Work and Pensions

(DWP). Annual revenue of the contract is expected

to be around DKK 1.2 billion or 1.4% of Group reve-

nue. Under the contract ISS will be delivering IFS

across more than 800 sites in the UK starting from

October 2025. Mobilisation of the contract was initi-

ated in October 2024 and is progressing according

to plan. In addition, across the Group we secured

wins of several smaller and mid-sized local IFS con-

tracts.

While we are pleased with the retentions secured

and the specific contracts won during the year, we

acknowledge that the level of new contract wins has

been disappointing. In response, we reviewed ele-

ments of our strategy late 2024 leading to updated

strategic priorities in December, one being “Cus-

tomer-centric growth”. Through this we will amplify

our focus on targeting the right customers with

unique selling propositions.

As a consequence, we have re-prioritised our global

customer segments and will focus our global exper-

tise on customers operating in knowledge-based in-

dustries:

• Financial services

• Professional services

• Technology

• Life Sciences

This is where greater value is placed on our people,

including social sustainability, as that is driving en-

gagement and consistent exceptional service expe-

rience to our customers. Thus, our self-delivery

model will provide us with a competitive advantage

and become a key differentiator in the market going

forward.

To maximise growth, we will continue to pursue

growth opportunities in local markets outside our

global segments based on local capability and mar-

ket profile. Please refer to OneISS strategy, p. 18 for

further background.

Contract maturity

The majority of our key account contracts have initial

terms of three to five years. A significant share of

revenue is consequently up for renewal every year.

In 2024, revenue from large key accounts was DKK

28.0 billion or 33% (2023: 33%) of Group revenue.

Going into 2025, contract revenue of DKK 4.8 billion

(6% of Group revenue) is up for renewal (adjusted

for renewals up until 20 February 2025).

OUR PERFORMANCE 10

OUR PERFORMANCE 11

Cash generation and free cash flow

Free cash flow

Free cash flow amounted to DKK 1,916 million (2023:

DKK 1,819 million). The increase was mainly driven by

the positive operating profit performance stemming

from the general margin improvement. The tight

management of working capital was maintained but

the high revenue growth meant that changes in

working capital were an outflow. Furthermore, lower

investments in software and equipment contributed

positively though partially offset by an increase in ad-

ditions of right-of-use assets compared to 2023.

Cash flow from operating activities

Cash flow from operating activities was DKK 3,527

million (2023: DKK 3,284 million), mainly driven by the

improved operating profit before other items and re-

duced outflow from changes in provisions, though

partly offset by a negative impact from changes in

working capital and higher tax payments.

Changes in working capital was an outflow of DKK

408 million (2023: inflow DKK 219 million) mainly re-

lated to increasing trade receivables due to revenue

growth, including in Türkiye, where payment cycles

are longer than the Group average, as well as due to

adverse effects of Deutsche Telekom withholding cer-

tain payments relating to the ongoing contractual

dispute. This was partly offset by an inflow related to

changes in payables, which decreased compared to

2023 where a positive effect was achieved through

general optimisation of supplier payment terms. Utili-

sation of factoring increased slightly to DKK 1.53 bil-

lion (2023: DKK 1.45 billion) as a result of increasing

revenue from key account customers, where invoices,

in accordance with Group policy, are eligible for fac-

toring.

Changes in provisions, pensions and similar obliga-

tions were an outflow of DKK 377 million (2023: out-

flow of DKK 473 million), primarily due to ordinary

payments related to pensions and similar obligations,

restructuring projects initiated in prior years and pay-

ments related to certain legal claims and disputes.

Interest paid, net amounted to DKK 246 million

(2023: DKK 261 million), which was largely in line with

2023.

Income tax paid was DKK 424 million (2023: DKK 394

million) equalling a cash tax rate of 13.3% (2023:

15.9%).

Cash flow from investing activities

Cash flow from investing activities was an outflow of

DKK 1,412 million (2023: DKK 892 million).

Acquisitions was an outflow of DKK 510 million (2023:

DKK 373 million), primarily related to the acquisitions

of Grupo BN in Spain, gammaRenax in Switzerland

and Bluebridge in Belgium.

Divestments was an outflow of DKK 350 million (2023:

inflow DKK 25 million) comprising divestment-related

costs as well as cash and cash equivalents in the di-

vested balance sheet of ISS France. The divestment

was completed on 9 April 2024, see further details in

note 3.4 Discontinued operations and divestments.

Investments in intangible assets, property and equip-

ment, net, of DKK 498 million (2023: DKK 553 million)

was equal to 0.6% (2023: 0.7%) of total revenue. The

decrease was partly due to timing effects of invest-

ments, but also due to a lower level of software in-

vestments in line with the refocusing of the Group’s

IT strategy.

Cash flow from financing activities

Cash flow from financing activities was an outflow of

DKK 1,329 million (2023: outflow of DKK 1,328 mil-

lion).

Proceeds from issuance of bonds of DKK 3,696 mil-

lion related to the Group’s issue of EMTN bonds in

May 2024 for a principal amount of EUR 500 million.

The facility replaced the EUR 300 million EMTN bonds

that matured in December 2024.

Repayment of bonds amounted to DKK 2,237 million

and related to the repayment of the EUR 300 million

EMTNs maturing in December 2024 mentioned

above.

Repayment of lease liabilities was DKK 951 million

(2023: DKK 778 million), increasing mainly due to new

lease agreements (vehicles and equipment) for start-

up of new customer contracts in 2023 and 2024.

OUR PERFORMANCE 12

Capital structure

The ISS Global Group is indirectly wholly owned

by ISS A/S and is therefore part of the ISS A/S

Group. Group Treasury manages financing ac-

tivities and capital structure centrally for the ISS

A/S Group as a whole. The ISS Global Group’s fi-

nancing activities and capital structure are not

assessed independently of the ISS A/S Group.

The Group’s liquidity position remained strong in

2024, driven by the solid free cash flow generation.

As a result, the Group’s liquidity reserves increased

to DKK 12.8 billion at 31 December 2024 (2023: DKK

12.1 billion), see note 4.5 to the consolidated finan-

cial statements.

On 29 May 2024, the Group successfully issued a 5-

year EMTN bond for a principal amount of EUR 500

million with a nominal interest rate of 3.875%. The

net proceeds were used for repayment of the EUR

300 million EMTN bond that matured in December

2024 as well as for general corporate purposes.

EUR 500 million of EMTN bonds will mature in July

2025. In the first half of 2025, the Group will evaluate

different financing options. Except for this, ISS has

no material short-term debt maturities.

At 31 December 2024, net debt amounted to DKK

5.8 billion (2023: DKK 6.6 billion), an decrease of DKK

0.8 billion mainly due to free cash flow generation

partly offset by an increase in receivables from com-

panies within the ISS Group.

Equity

At 31 December 2024, equity was DKK 10,030 million

(2023: DKK 7,126 million), equivalent to an equity ra-

tio of 20.2% (2023: 15.9%).

The increase was largely due to net profit of DKK

2,547 million and hyperinflation restatement of eq-

uity in Türkiye of DKK 477 million.

For a complete overview of the development in other

comprehensive income in 2024, see 4.1.7, Other

comprehensive income.

At the annual general meeting to be held on 11 April

2025, the Board of Directors will propose a dividend

to ISS World Services A/S for 2024 of DKK 5,600 mil-

lion (2023: DKK 0 million).

OUR PERFORMANCE 13

Northern Europe

The market

ISS holds a market-leading position across the re-

gion of generally mature and competitive markets

with a relatively high outsourcing rate and IFS mar-

ket maturity. The largest country in the region is the

UK, contributing around 40% of revenue.

Key customer segments include Office-based cus-

tomers in Financial Services, Professional Services

and Public Administration; Production-based cus-

tomers in Industry & Manufacturing; and

Healthcare.

Commercial update

Our strategic focus on IFS and key account custom-

ers secured both new contract wins and extensions,

and the commercial pipeline across the region re-

mained robust. In the UK, ISS was awarded several

new key account contracts, including the IFS con-

tract with the Department of Work and Pensions

(DWP) starting in October 2025. In addition, in Fin-

land a significant contract with an aviation customer

was awarded. With few exceptions, all large key ac-

count contracts with expiry dates in 2024 were suc-

cessfully extended, often with increased scope, in-

cluding our long-standing customer relationship

with Nordea and the global contract with Barclays,

which led to a retention rate of 94% (2023: 95%).

Financial update

Revenue increased to DKK 31,328 million in 2024

(2023: DKK 29,324 million). Organic growth was 6.4%

and currency effects were positive 1%.

In 2024, organic growth was largely due to price in-

creases being successfully implemented across the

region to mitigate cost inflation. In addition, growth

was supported by underlying volume growth from

customers’ increased activity levels along with posi-

tive impacts from startup of new contracts, most sig-

nificantly Defra in the UK and the Danish Building

and Property Agency in Denmark.

Revenue from projects and above-base work was

maintained at a high level with positive organic

growth of 8.9% for the year, and accounted for 20%

(2023: 19%) of revenue for the region.

All countries, except Norway, generated positive or-

ganic growth with the UK being the most significant

contributor. In the UK, the primary factor was the

launch of Defra and other significant new key ac-

counts, expansions with existing customers and

good momentum in projects and above base work.

Denmark contributed positive organic growth mainly

due to launch of the Danish Building and Property

Agency contract, which became fully operational in

2024, an increasing activity levels at existing custom-

ers’ sites. In Belgium, growth was also driven by in-

creased activity levels with key account customers as

well as from startup of new contracts.

Operating profit before other items was DKK 1,803

million (2023: DKK 1,572 million), for an operating

margin of 5.8% (2023: 5.4%). Margin improvements

were broad-based, though most significant in Den-

mark, Finland and the UK, mainly due to continued

operational efficiencies and operating leverage from

higher revenue. Despite the improvement, the UK

continued to be dilutive to the Group operating mar-

gin, and management continues to implement initia-

tives to further strengthen operational and financial

performance in 2025.

OUR PERFORMANCE 14

Central & Southern Europe

The market

Central and Southern Europe comprises several key

markets, where we hold leading market positions, in-

cluding Switzerland, Spain, Austria and Türkiye. Most

of the markets are developed, but with significant dif-

ferences in IFS market maturity and macroeconomic

environment.

Key customer segments include Office-based custom-

ers in Information & Communication and Financial

Services; and Production-based customers in Industry

& Manufacturing and Pharmaceuticals; and

Healthcare.

Commercial update

The commercial development was solid and the pipe-

line of new business opportunities remained attrac-

tive. Healthcare continues being a prioritised segment

within the region with significant new wins (annual

revenue < DKK 100 million) in 2024, primarily in Spain

and Switzerland, though also an exit from a contract

in Türkiye due to unfavourable commercial terms.

2024 was further an important year from a retention

perspective, where we successfully extended and re-

newed our partnerships with some of the largest cus-

tomers in the region leading to a retention rate of

95% (2023: 97%).

M&A update

Two bolt-on acquisitions were made in the region in

2024 to strengthen our market position. In Switzer-

land, the acquisition of gammaRenax strengthened

our country-wide footprint adding scale predomi-

nately within cleaning and technical services in priori-

tised customer segments and added around 0.6% to

Group annual revenue. In Spain, the acquisition of

Grupo BN further strengthened our business plat-

form, predominantly within cleaning, and will add

around 0.4% to Group annual revenue. Both acquisi-

tions have strong strategic fits to our existing busi-

ness platforms and enables further value creation

from operational and back-office synergies. Integra-

tion of the acquired businesses is progressing accord-

ing to plan with benefit realisation in line with expecta-

tions.

Financial update

Revenue increased to DKK 27,159 million in 2024

(2023: DKK 24,807 million) excluding effects of IAS 29.

Organic growth was 10.9% most significantly driven

from price increases in Türkiye. Acquisitions and di-

vestments, net increased revenue by 4% related to ac-

quisitions in Switzerland and Spain, whereas currency

effects reduced revenue by 6%.

In 2024, organic growth in the region was primarily

driven by strong growth in Türkiye as a result of high

cost inflation mitigated through the implementation of

price increases. However, the vast majority of coun-

tries contributed with positive growth in the year,

mainly due to price increases being successfully im-

plemented to offset the effects of cost inflation. Price

increases impacted organic growth positively by

11.8%, whereas volume growth was slightly negative.

Net contract wins were also slightly negative, im-

pacted by a few deliberate contract exits with unfa-

vourable commercial terms.

Throughout the year, the region maintained double-

digit organic growth. The trend was in line with expec-

tations, however, declining due to a tougher compari-

son base from 2023, where inflation levels and associ-

ated price increases were higher, mainly due to an ad-

ditional increase of minimum wages in Türkiye in mid

2023.

In addition, the region continued benefitting from

high demand for traditional projects and above-base

work from key account customers which accounted

for 16% (2023: 18%) of revenue in the region.

OUR PERFORMANCE 15

Operating profit before other items amounted to DKK

1,855 million (2023: DKK 1,439 million) for an operat-

ing margin of 6.6% (2023: 5.8%). Excluding the impact

of hyperinflation (IAS 29), operating profit before

other items was DKK 1,867 million (2023: DKK 1,487

million) corresponding to an operating margin of 6.9%

(2023: 6.0%). The majority of countries continued to

be accretive to Group margin, and the improvement

in operating margin was broad-based, though most

significantly driven by Türkiye and Switzerland.

Profitability improvement on the Deutsche Telekom

contract was also solid as a result of continued imple-

mentation of improvement initiatives. The arbitration

process initiated by ISS regarding certain contractual

disagreements progressed according to plan. The fi-

nal oral hearing in the arbitration proceedings is

scheduled to take place in mid July 2025, see p. 7 for

further information.

OUR PERFORMANCE 16

Asia & Pacific

The market

The region comprises a mix of developed markets in-

cluding Australia & New Zealand, Hong Kong and Sin-

gapore, as well as developing markets such as Indo-

nesia, India and China. ISS has a strong presence in

the region and holds a market-leading position in

several countries.

Key customer segments include Office-based cus-

tomers in Financial Services and Public Administra-

tion; Production-based customers in Industry & Man-

ufacturing; Healthcare, Aviation, and Energy and Re-

sources.

Commercial update

In 2024, we sharpened our “bid-no-bid” process to go

only after selective bids in alignment with our strate-

gic focus. Our commercial pipeline remained solid

across the region, and we secured a number of im-

portant new wins in our prioritised segments, primar-

ily in Singapore, Australia and India. Retention rate

was 95% (2023: 93%) as we successfully retained and,

in some cases, expanded the scope of the vast major-

ity of contracts up for renewal across local prioritised

segments like Public Administration, Energy and Re-

sources, Aviation and Office Based clients.

Financial update

Revenue increased to DKK 14,403 million in 2024

(2023: DKK 14,229 million). Organic growth was 2.4%,

whereas currency effects reduced revenue by 1%.

Overall growth in 2024 was held back due to a strong

focus on labour-related compliance in particular re-

lating to overtime hours and pay rates in addition to

driving a sustainable and accretive margin. This re-

sulted in the exit of several customer contracts

across the region.

Portfolio revenue grew organically by 4.5% with mod-

est growth across most countries, except in India,

Hong Kong and Indonesia for reasons highlighted

above. Projects and above-base work reduced by

14.6%, mainly in Pacific, Hong Kong and Singapore as

Covid-19-related above-base work completely ceased

by mid 2023. Demand for projects and above base

work was also impacted by global key contract losses

in 2023, though partially mitigated by certain local

key account customers, particularly in China and In-

donesia.

Operating profit before other items increased to DKK

1,032 million (2023: DKK 875 million), corresponding

to an operating margin of 7.2% (2023: 6.1%). The

margin uplift reflects our strategy to drive growth

with a sustainable and accretive margin. In addition

to improving customer contribution through a com-

bination of price increases and productivity initiatives,

we have improved efficiency and productivity of our

country and regional support functions resulting in

improved operating leverages. Furthermore, the re-

gion benefitted from ongoing government grants be-

ing secured in Singapore as well as certain one-off

items in Australia.

OUR PERFORMANCE 17

Americas

The market

The Americas consists of the mature North American

market as well as Mexico and Chile. North America is

the world’s largest FM market, accounting for around

30% of the global outsourced FM market. Compared

to other regions, food services account for a larger

share of revenue, whereas healthcare customers ac-

count for a lower share. Given our limited market

share, North America represents a significant oppor-

tunity for growth.

Key customer segments include Office-based cus-

tomers in Technology and Financial Services, as well

as Production-based customers in Industry & Manu-

facturing and Life Sciences.

Commercial update

During the second half of 2024, Americas secured a

significant expansion of an existing contract with a

Healthcare customer in the US with expected startup

early 2025. However, deliberate contract trimming

caused several contract exits, including a significant

industry and manufacturing customer in the US. As a

result, the retention rate decreased to 85% (2023:

91%).

Financial update

Revenue decreased to DKK 9,407 million in 2024

(2023: DKK 9,605 million). Organic growth was 0.4%

while currency effects impacted growth negatively by

2.4%.

In 2024, organic growth was negatively impacted by

deliberate contract trimming in North America lead-

ing to net contract wins of (7.3)%. This reduction was,

however, mitigated by projects and above-base work

growing organically by around 50%, mainly due to

the significant hurricane response and restoration

work performed by the US in Q4, which included re-

establishing infrastructure and facilitating the setup

of an employee support centre. Furthermore, across

the region, price increases continued to be imple-

mented to offset the effects of cost inflation and

wage increases, and thereby contributed positively to

the organic growth.

Revenue from projects and above-base work ac-

counted for 17% (2023: 12%) of the revenue in the

region, mainly due to the US. Continued demand for

additional services in Mexico also impacted positively.

Portfolio revenue declined organically by 6.0%, pri-

marily driven by the deliberate contract exits and

losses, mainly the above-mentioned industry and

manufacturing customer in North America in Q2

2024.

From a country-perspective, organic growth was neg-

ative in the US, whereas both Mexico and Chile re-

ported positive organic growth. The strategic focus

on IFS and key account customers progressed and

demand from key accounts was more robust and re-

silient compared to the rest of the customer base.

Furthermore, across the region, we saw a develop-

ment with increases across existing customers.

Operating profit before other items was DKK 547 mil-

lion (2023: DKK 489 million), corresponding to an op-

erating margin of 5.8% (2023: 5.1%). The margin in-

crease was mainly driven by the deliberate contract

exits from customers in the US in 2023 and 2024. In

addition, margin benefitted from efficiencies and op-

erational improvements across the region.

OUR BUSINESS 18

OneISS strategy

While our strategic direction remained un-

changed, in 2024 we completed a wide-

ranging review to refresh and update our strate-

gic priorities, aimed at unlocking ISS’s

full potential.

The OneISS strategy was launched in 2020 and during

the last four years, ISS delivered margin and growth re-

covery, turned around challenging markets and con-

tracts, completed the strategic divestment pro-

gramme, made selective acquisitions and maintained a

high retention rate. However, the fact remains that our

growth in the last few years has been largely driven by

return to office and inflation, while the level of new

contract wins has been disappointing.

Our strategy and our focus remains on growing Inte-

grated Facility Services (IFS) and single-service cleaning

across our business to increase market share and

drive profitable growth. The aim of the updated strate-

gic priorities is to maximise value creation and unlock

ISS’s full potential.

Playing to our strengths

ISS currently holds an estimated 1% global market

share; an exciting opportunity for further growth. The

updates we have made to our strategic priorities will

position us to play to our strengths and capture a

larger share of the market.

Our 2024 strategy refresh is underpinned by a thor-

ough review, and reflected lessons learned from our

recent growth performance. Taking into account the

shifting trends in market dynamics driven by a range of

factors including global economic, geopolitical and la-

bour market changes, as well as our experience of op-

erating with the OneISS strategy since its launch in

2020.

As part of the review, we took a detailed look at how

the changes and trends in selected focus segments

are evolving current and future customer goals, chal-

lenges and needs.

This highlighted that customers specifically look for

positive impacts in three areas when engaging with a

service partner:

• Efficiency and standardisation/price

Optimising customers’ costs while managing risks

and compliance

• Customer experience

Delivering exceptional employee experiences for

our customers

• Sustainability

Delivering on carbon emission targets and sup-

port social progress

All three customer priorities are important, however,

ISS’s global reach and expertise, coupled with our un-

wavering focus on workplace and quality of customer

experience through our self-delivery model, is what

sets us apart from our competitors. According to a

2023 Gallup survey, low engagement in the workplace

costs an estimated 9% of global GDP. We can help cur-

rent and future customers address this through con-

sistently providing their people with exceptional em-

ployee experiences.

Updated strategic priorities

Following our strategic review, we sharpened our focus

from the five OneISS priorities, launched in 2020, to

three updated priorities addressing the top customer

needs. The three priorities will be mobilised and exe-

cuted through eight Group-led transformation initia-

tives, see the box on the next page.

Implementing with pace and quality

In January 2025, changes to the Executive Group Man-

agement (EGM) were announced to best position ISS

to implement the refreshed strategy, reducing it to five

members. This move aligned ISS’s organisational struc-

ture at a senior leadership level, reducing complexity

and creating a smaller, more agile leadership team,

with a more empowered organisation.

New Group Commercial and Revenue function

Our strategic review confirmed the importance of cus-

tomer centricity and being laser focused on the seg-

ments and customers we pursue to drive growth

across our entire portfolio. Carl-Fredrik Langard-Bjor

leads this newly created function with responsibility for

OUR BUSINESS 19

growth and all revenue levers across the business, driv-

ing the strategic priority around Customer centric

growth.

Powered by technology

Since the launch of OneISS, we have made signific ant

progress across our global technology organisation,

centralising and strengthening critical technology ser-

vices and cybersecurity as well as launched new cus-

tomer-facing products. Going forward, our technology

focus shifts from industry leadership to enabling our

business with technology. Liz Benison leads this as

Group Chief People & Technology Officer to further de-

velop our technology infrastructure as well as driving

the strategic focus on the people agenda under the

strategic priority around Leading frontline employer.

Read more about the latter in Our people, pp, 21-23.

All countries under one Group COO

Troels Bjerg leads the new COO function which all

countries will report into, clustered by geographies.

This approach has been designed to help the countries

remain close to all Group functions and support execu-

tion of the strategy, and driving a consistent perfor-

mance management culture across the enterprise, i.e.

our strategic priority Efficiency.

Updated global segments

We have prioritised four global segments where ISS

can play to its strengths, focussing our global expertise

on delivering exceptional employee experiences for

our customers. In these segments, companies operate

in knowledge-based industries where greater value is

placed on being able to attract and engage talent to

succeed:

• Financial services

• Professional services

• Technology

• Life Sciences

To maximise growth across ISS’s entire portfolio, coun-

tries will continue to pursue growth opportunities out-

side of the four global segments, based on local capa-

bility and market profile. This builds on our global ex-

perience that some segments are unique to certain

markets and are best managed at a country level, e.g.

healthcare, which is very locally driven through na-

tional systems and policies.

This flexible approach will enable us to unlock scale

synergies in the four global segments, while at the

same time pursuing attractive growth opportunities

based on competitive strengths locally.

OUR BUSINESS 20

Uniting our colleagues behind a new mission

To unite the organisation around delivering exceptional

customer experiences, we launched a new mission at

the end of 2024 that links our daily work to the value

we create for our customers: We make space for peo-

ple and businesses to thrive.

By supporting the complex, day-to-day operations of

facilities, we help businesses focus on their core activi-

ties. This underscores a commitment to understanding

and adapting to the unique needs of different custom-

ers. But the value is more than freeing up time, be-

cause we are result-oriented and play an active part in

making employees and businesses thrive.

Next steps – 2025 and beyond

In 2025, we will sharpen our execution and focus on

implementing the refreshed strategy with oversight

from a dedicated transformation team. All eight initia-

tives are underpinned by business plans including key

milestones, targets and key-performance indicators

(KPIs) to monitor progress and track the expected ben-

efits delivering a return on investment.

Working with our country teams, we will strengthen lo-

cal growth plans and develop country implementation

plans for each of the eight initiatives.

OUR BUSINESS 21

Our people

ISS has a legacy of over 120 years as a people-

focused company. Caring for our people is

deeply rooted in our DNA, as they are the

foundation of our business and our greatest

driver of success.

Today, we have more than 325,000 dedicated em-

ployees who deliver value to our 40,000 customers

worldwide. We call our employees ‘placemakers,’ ac-

knowledging that everyone contributes to creating

great places for our customers. The majority – over

300,000 – work directly on-site at our customers’ fa-

cilities. These placemakers create tangible value by

providing quality, efficient services and workplace

experiences, enhancing safety and well-being for

our customers’ employees every day.

For many of our placemakers, ISS represents their

first entry into the job market. Across our regions,

spanning the globe from China to Chile to Norway,

we employ individuals often from underrepresented

groups in society, including those from socio-eco-

nomically disadvantaged backgrounds, displaced in-

dividuals, and people with disabilities. By offering

them a role at ISS, we provide opportunities they

might not easily find elsewhere. This impact creates

a positive ripple effect on families and the commu-

nities we serve.

This is why social sustainability is at the heart of ISS

and the area where we can make our greatest im-

pact. We see it as a significant responsibility, and by

doing good, we also do well for our business. We

strengthen our success in attracting and retaining

employees, and when our placemakers are happy,

they are motivated to deliver exceptional service ex-

periences for our customers. Finally, we provide our

customers with unique opportunities to support

their own social sustainability agendas.

This is also why physical and mental safety and well-

being is a key element of our new strategic priori-

ties. Specifically, we aim to become the world’s

Leading frontline employer.

Four new people areas

To become the world’s leading frontline employer,

we will maintain a steadfast focus on delivering an

exceptional people experience throughout the en-

tire people journey – from recruitment to employ-

ment, development, and retention.

Additionally, this exceptional people experience will

be integrated into our social sustainability agenda

and embedded in the daily execution of our Em-

ployee Value Proposition (EVP): A Place to Be You,

which comprises three promises to every single

person who works for us today – and to every single

person who wants to join us: At ISS, you can be who

you are, become what you want, and be part of

something bigger.

Recognising that the world is changing, with work-

force shortages in many markets, and a global

workforce increasingly becoming more purpose-

driven, we will accelerate our people and social sus-

tainability initiatives in four key areas. Our main am-

bition with these initiatives is to improve the quality

of our people processes, empowered by data-

driven insights and solutions, resulting in reduced

costs and higher employee retention. In 2025, we

will define specific targets and KPIs for each initia-

tive.

1. People and data analytics

A world-class people experience relies on data-

driven decisions. We will establish a streamlined, es-

sential data system providing automated, high-qual-

ity insights on key metrics such as retention and ab-

sence rates.

2. Digital recruitment

Optimising recruiting and onboarding is essential to

ISS. With currently around 120,000 new hires annu-

ally, this drives high recruitment and training costs.

A new Talent Acquisition Centre will enhance talent

attraction, supported by an AI-driven platform.

3. Digital onboarding and engagement

To enhance employee engagement, we will inte-

grate our digital engagement and feedback plat-

forms, MyVoice and MyISS. This integrated platform

will be accessible on our placemakers’ mobile de-

vices, with continuous tracking of engagement as a

key feature.

4. Social sustainability

The exceptional people experience will also be

deeply integrated into our social sustainability

OUR BUSINESS 22

agenda and embedded in the daily execution of our

EVP. Our fourth priority includes three new compo-

nents:

1. Social Value Portal

We want to measure our social impact through a

new Group collaboration with the UK company So-

cial Value Portal. As the importance of delivering

measurable social value to our customers and com-

munities grows, the purpose of this partnership is

to capture the monetary value of our social contri-

butions. By leveraging the expertise and methodol-

ogy of Social Value Portal, we will, for instance, be

able to quantify the societal value of hiring people

with disabilities in a local community.

2. Sustainable income

Building on our ‘signature objective’ of advancing

the implementation of living wages across our in-

dustry, we will now explore additional sustainable

income initiatives, such as faster access to earned

income, securing more stable working hours, and

enhancing financial literacy among our placemak-

ers.

3. Education

As education is a key driver of social change and

employee engagement, we have committed to con-

tinuing our signature objective of providing 100,000

placemakers and their family members with certi-

fied education by 2025. Together with partners, we

aim to add an additional 250,000 by 2030.

Driving social sustainability through our

Employee Value Proposition

Our EVP is deeply rooted in our social sustainability

agenda and reflects our aim for a culture where

everyone feels valued and respected, and where

everyone is treated fairly and equally. This includes

creating an environment where everyone can be

their true authentic selves and be valued for exactly

who they are – no matter their age, gender, physical

or mental health, cultural background or sexuality.

As part of this, we want to give people the oppor-

tunity to make an impact on their own personal de-

velopment, as well as customer’s successes and so-

cieties at large.

Our commitment to empowering our people and

providing equal opportunities for all individuals is

unwavering. In 2024, we advanced our commit-

ments and goals in various areas, see to the right

and the next page.

Looking ahead

In 2025, we will continue working with policymakers,

customers, and suppliers to implement living wages

across our industry, alongside our new commit-

ment to exploring further sustainable income initia-

tives. Additionally, we will strengthen our efforts to

provide qualifications for our placemakers and en-

hance leadership quality. We firmly believe that

these initiatives – combined with our commitment

to creating exceptional people journeys for every-

one – will lead to improved engagement and reten-

tion.

Be who you are

Fair compensation and benefits In 2022, we com-

mitted to the ‘signature objective’ of increasing the

implementation of living wages across our industry

through joint efforts with policymakers, customers,

suppliers, and other key stakeholders. Numerous

surveys along with our own data demonstrate that

fair remuneration not only fosters a sense of be-

longing and makes employees feel valued but also

drives positive outcomes in productivity, engage-

ment and retention. For progress in 2024, see our

Sustainability statement, S1-4, p. 54 and S1-5, p. 58.

Diverse and inclusive workplaces We aim for an in-

clusive culture where everyone feels valued, en-

gaged and respected, and where everyone is

treated fairly and equally. Therefore, our diversity,

inclusion, and belonging (DIB) efforts are focused

on empowering our placemakers to contribute their

unique skills and perspectives.

Our DIB strategy is built around five dimensions of

diversity: abilities, gender, generations & age, pride,

and cultures, race & ethnicity. Within gender, we

have set a target to achieve 40% gender balance at

corporate leadership level by 2026. For a status on

gender balance within the Executive Group Man-

agement, Corporate Leadership and the Board of

Directors, see pp. 35-36.

We are also proud of the continued impact of our

Employee Resource Groups (ERGs) – voluntary

groups led by our placemakers – that drive our in-

clusion and belonging agenda through concrete

DIB activities, see p. 56 for 2024 activities.

Health & Safety As a vital part of living up to our

people promise, our entire health and safety

agenda is pivotal for us to make our placemakers

feel they belong in a company where respect and

protection of their physical and mental wellbeing is

OUR BUSINESS 23

a key essential for all. Our approach and key actions

to prevent accidents and promote safety behav-

iours are described in detail in our Sustainability

statement, see S1-4, Health & Safety, p. 54. In addi-

tion, our Health & Safety metrics are disclosed in

S1-14, p. 60.

Become what you want

Development and training are fundamental to sup-

porting our placemakers’ unique dreams and jour-

neys and helping them achieve their full potential.

We are committed to creating opportunities for un-

derrepresented groups and enhancing the social

mobility of all our placemakers and their family

members.

Our second ‘signature objective’ focuses on provid-

ing 100,000 placemakers and their family members

with a recognised qualification by 2025. By 2024, we

have achieved 73,000, keeping us well on track to

meet our target, and together with partners we aim

to add an additional 250,000 by 2030. For further

details, see our Sustainability statement, S1-4, pp.

54-57 and S1-5, p. 58.

Education, development, and learning are essential

for everyone, at all levels, to drive both individual

and business success. In 2024, we continued or

leadership training in various areas. Additionally, we

continued the implementation of our digital learn-

ing and communications platforms; MyLearning

and MyISS. For an overview of our learning and de-

velopment programmes, see our Sustainability

statement, S1-4, pp. 54-57.

Be part of something bigger

We offer our placemakers the opportunity to be-

long to an ISS community of over 325,000 people

globally. We also provide them with chances to con-

tribute to our customers’ success and the wider

communities.

Increasingly, we are seeing that customers prioritise

social sustainability as a key lever in driving success.

Several of our major contract wins and extensions

in 2024 included social sustainability requirements.

With the great diversity of our placemakers and our

self-delivery model, we are uniquely positioned to

support our customers in their social agenda.

Key indicators for success

We measure a wide range of social sustainability

and people initiatives on an ongoing basis. How-

ever, our two key indicators of success are em-

ployee engagement and retention.

Employee engagement

In 2024, we launched the most extensive employee

survey ever conducted at ISS: the MyVoice Global

Survey. More than 150,000 placemakers across ISS

shared their thoughts and feedback, resulting in a

54% participation rate.

We are proud to announce that, as an organisation,

we achieved an engagement score of 74%. This

score reflects the overall level of engagement

among the placemakers who responded, capturing

their sense of belonging, intention to stay with ISS,

willingness to recommend ISS as a workplace, and –

importantly – their belief that providing honest and

confidential feedback will lead to positive change.

Based on the survey feedback, leaders will collabo-

rate with employees to create plans aimed at mak-

ing ISS an even better place to work.

Employee turnover

We operate in a high-churn market, a trend unlikely

to change. However, we aim to improve retention

long-term, benefitting our customers through more

consistent, high-quality service and reduced recruit-

ment and onboarding costs.

Employee turnover was 32% in 2024 (2023: 33%).

We are committed to improve this development,

and countries are proactively working with how they

attract, recruit, onboard and further develop em-

ployees. The learnings from our countries and our

global MyVoice survey will support our focus to im-

prove the employee turnover in 2025 and beyond.

Fatalities and LTIF

In 2024, we tragically experienced one fatality and

Lost Time Injury Frequency (LTIF) was 2.9. Health

and safety is a key priority for us, and we are contin-

uously striving to improve our efforts to prevent se-

rious accidents. In 2024, we initiated further miti-

gating actions: We conducted our first Global

Health Culture survey, followed by focus groups

with placemakers worldwide to assess our safety

culture and establish a baseline, with a safety cul-

ture improvement plan set to begin in 2025. We

also introduced ‘safety stand-downs’ led by the

Group CEO for all leaders to address serious inci-

dents.

OUR BUSINESS 24

Our business risks

At ISS, we perceive risk management as an

enabler for value creation, while at the same

time being essential for protection of value.

The aim of our risk management activities is

to ensure that opportunities and risks are

balanced appropriately.

Our risk management activities are aimed both at

strategic risks posing a threat to achieving our

long-term business objectives, e.g. from evolving

market trends or customer needs, and at opera-

tional risks arising from our operational character-

istics, which potentially impact our business per-

formance in the short to medium term.

As a provider of integrated facility services, our

services are often deeply integrated into our cus-

tomers’ value streams causing risk of disrupting

their operations, if effective risk management is

not applied. Thus, in addition to managing risks in

our own processes, we play a significant role in

our customers risk management.

Addressing risks from market

developments

Hybrid work models / return-to-office

The debate around returning to office has intensi-

fied in recent years and many businesses are navi-

gating return-to-office programmes. In 2024, we

continued to see a shift toward more on-site work,

with many companies implementing return-to-of-

fice mandates. At the same time some employees

continue to advocate for maintaining the work-

place flexibility gained during the pandemic.

These trends represent both risks and opportuni-

ties for ISS, and we continue to work closely with

customers to enhance the workplace experience,

ensuring our services meet the evolving needs of

our customers and the workforce. With our up-

dated strategic priorities launched in December

2024, we believe that we are even better posi-

tioned to meet this evolving need.

Wage inflation

Uncertainty over price levels and global economic

growth remained high representing a continued

risk to our business. While goods and services

price growth slowed, wage inflation remained

high, reaching peak values in some regions. As a

result, inflation management remained a priority

in the year, and we continued to successfully uti-

lise contractual terms of our customer contracts

to implement price increases and/or scope adjust-

ments to mitigate the increasing operating costs.

Labour shortage

In certain geographies we experience pressure on

availability of labour, which among other things is

fuelled by demographic changes like aging socie-

ties and migration. This pressure contributes to in-

creased employee expectations that go beyond

remuneration and encompass wider social re-

sponsibility requirements. We continue to monitor

local labour markets and take action to shape our

employee value proposition to meet local market

expectation. In 2024, we made progress in devel-

oping a sustainable wage initiative and launched

the updated strategic priority Leading frontline

employer, which we see as key mitigants to the so-

cial sustainability risks we are facing.

Emerging technology

We continue to observe the rapid development in

technology fields that have the potential to disrupt

and influence the facility management industry.

Our ability to successfully understand and incor-

porate these technologies into our service offer-

ing as well as our own business processes will be

crucial in maintaining our competitive advantage.

While adoption rates in the industry as a whole re-

main low, we continue to develop our IT and com-

mercial capabilities to leverage these opportuni-

ties in the future. We perceive technology as a key

enabler of our strategic goals and will as such play

a vital part in all of our three updated strategic pri-

orities.

2024 operational risk agenda

Health & Safety

The health, safety and wellbeing of our employ-

ees, customers and visitors to the facilities we

manage remains a priority and a key risk area. In

2024, we continued the drive for improvements

through launch of a new Group Health & Safety

strategy which includes the introduction of

stronger standards, a new assurance framework,

improved training and more robust risk assess-

ment practices.

OUR BUSINESS 25

Sustainability

Our ability to deliver on our sustainability goals

and support our customers in their journey re-

mains one of our key risks. In 2024, we restruc-

tured our ESG governance framework to better

coordinate our strategic initiatives across all three

domains. We also updated our strategic priorities

and launched Leading frontline employer embed-

ding our activities in the social sustainability do-

main. Furthermore, in the environment space, we

took steps to implement a systematic approach to

carbon reporting and continued to implement

standard requirements and transition plans

throughout our business.

Regulatory compliance

In recent years, we have observed an increase in

activity from a number of regulatory bodies. We

expect this trend to continue with the implemen-

tation of regulations for CSDDD and AI on the

horizon. Many regulations, such as NIS 2.0 or

DORA, impact us indirectly with compliance being

driven by our customers who are directly im-

pacted by these regulations. We are constantly

making efforts to identify such cases and demon-

strate our compliance.

OUR BUSINESS 26

OUR BUSINESS 27

OUR BUSINESS 28

OUR BUSINESS 29

OUR GOVERNANCE 30

Corporate governance

Transparency, constructive stakeholder dia-

logue, sound decision-making processes and

controls are key aspects of our corporate gov-

ernance for the benefit of ISS and our stake-

holders.

The management team of the Group formally con-

sists of the Board of Directors and the Executive

Management of ISS Global A/S registered with the

Danish Business Authority. Since ISS Global A/S has

no operating activities of its own, the Group relies

on the management team of ISS A/S, the ultimate

parent company in Denmark. As a subsidiary of ISS

A/S, ISS Global A/S is subject to the same corporate

governance policies applicable in ISS A/S. Corporate

governance of the ISS Global Group is therefore

built on corporate governance of the ISS A/S Group,

including the management team, and descriptions

in this chapter should be seen in this context.

Framework

The Board of Directors (the Board) continuously re-

views and develops the Group’s corporate govern-

ance framework and policies in response to the

Group’s strategic development, activities, business

environment, corporate governance recommenda-

tions and statutory requirements.

Management

Management powers are distributed between our

Board and our Executive Group Management Board

(the EGMB). No person serves as a member of both

corporate bodies. Our EGMB carries out the day-to-

day management, while our Board supervises the

work of our EGMB and is responsible for the overall

management and strategic direction.

The members of the EGMB are the Group CEO and

the Group CFO. Together, they form the manage-

ment registered with the Danish Business Authority.

The Group has a wider Executive Group Manage-

ment (the EGM), whose members are three Corpo-

rate Senior Officers in addition to the EGMB.

In the review of our governance structure on pp.

33-34, we have outlined the primary responsibilities

of the Board and the EGM as well as 2024 activity by

Board committees.

New Group CFO and EGM changes

On 3 June 2024, Mads Holm took up the position as

Group CFO and member of the EGMB registered

with the Danish Business Authority.

On 9 January 2025, the EGM was reduced to five

members to successfully implement the strategic

priorities. Consequently, Agostino Renna (former

Chief Commercial and Communication Officer),

Markus Sontheimer (former Chief Information and

Digital Officer) and Celia Liu (former CEO of Central

and Southern Europe) left ISS after a transition pe-

riod. As part of the changes, three of the existing

EGM members had changed responsibility:

• Carl-Fredrik Langard-Bjor took up the position

as Chief Commercial & Revenue Officer

• Liz Benison took up the position as Chief Peo-

ple & Technology Officer

• Troels Bjerg took up the position as Group

Chief Operating Officer (COO)

• On 31 January 2025, Sam Hockman (former

Group Chief Operating Officer) left ISS.

Board composition

The Board currently consists of ten members, seven

elected by the general meeting and three elected

by and among the employees. (GOV-1 §21(a)).

Board members elected by the general meeting

stand for election each year. Changes to the Board

following the annual general meeting on 11 April

2024 as well as changes made during the year are

described in the box on p. 32.

Employee representatives are elected on the basis

of a voluntary arrangement regarding Group repre-

sentation for employees of ISS World Services A/S

as further described in the Articles of Association.

Employee representatives serve for terms of four

years. Two of the current employee representatives

joined the Board after the annual general meeting

in April 2023 and one of the current employee rep-

resentatives was elected at a Supplementary Elec-

tion held on 3 December 2024. (GOV-1 §21(b)).

All board members are independent, except for the

employee representatives. (GOV-1 §21 (e)).

OUR GOVERNANCE 31

Board evaluation

In 2024, the Board performed its annual evaluation

of the Board’s performance with assistance by an

external advisor. Each member of the Board and

the Group CEO and CFO answered bespoke online

questionnaires and participated in in-depth per-

sonal interviews.

The evaluation included evaluating the strategy de-

velopment and implementation; risk awareness,

monitoring and reporting; cooperation with and

evaluation process of CEO and executive manage-

ment; board composition and dynamics; on- and

off-boarding; meeting structure and effectiveness;

contribution of committees and Deputy Chair; eval-

uation of the Chair; and evaluation of the contribu-

tion of each board member (GOV-1 §23 / §23 (a)).

The results were reviewed by the Nomination Com-

mittee and discussed at the Board meeting in De-

cember 2024, where the external advisor also at-

tended and provided feedback. The individual mem-

ber’s contribution was subsequently reviewed as

part of individual meetings held between the Chair

and each member.

Overall, the Board was evaluated by the external ad-

visor to be very well-functioning and generally

highly effective, with a collaborative and inclusive

environment led by the chair.

The evaluation identified a few focus areas to

strengthen the Board’s performance and value con-

tribution further during 2025: i) sharpen focus on

high-priority strategic topics and implementation,

while minimising time spent on less critical issues

and ii) enhanced focus on pre-read material and

presentations to leave sufficient time for discussion

and ongoing feedback.

For further details, see response to recommenda-

tion 3.5.1 of the 2024 Statutory report on Corporate

Governance.

Assurance

The independent auditor audits the Group’s finan-

cial statements and expresses a reasonable assur-

ance opinion. No opinion or conclusion is provided

for the Management review, except for the Sustain-

ability statement. The independent auditor con-

ducts a limited assurance engagement on the

Group’s Sustainability statement and expresses a

limited assurance conclusion.

Group Internal Audit (GIA) is responsible for provid-

ing an objective and independent assessment of

the effectiveness and quality of the internal controls

through delivery of the internal audit plan approved

by the Audit and Risk Committee (ARC). GIA oper-

ates under a charter, which is reviewed and ap-

proved annually by the ARC.

The internal audit plan for 2024 was prepared

based on the outcome of the Group Risk review and

incorporated audits covering the areas of financial

reporting controls, internal controls on ISS’s largest

strategic key accounts, the control environment in

ISS country organisations, information technology

and compliance (internal and external regulations).

GIA monitors the actions of management to ad-

dress observations made on the internal control en-

vironment to ensure control gaps are resolved ade-

quately. Regular reports on the status of open ob-

servations are made to both the EGM and ARC.

Speak Up (whistleblower)

Our Speak Up Policy is a fundamental element in

our approach to responsible business conduct. In-

formation regarding the Speak Up system, including

detailed run-through of the process, can be found

in our 2024 Sustainability statement in G1-1, p. 81.

Data ethics

The Group’s Data Ethics Policy (the Policy) describes

ISS’s approach to data ethics and aims to encour-

age our placemakers and partners, to have an ac-

tive involvement in data ethical questions and to

raise concerns ensuring continuous development of

the guiding principles. The Policy as per section 99d

in the Danish Financial Statements Act, adopted by

the EGM and the Board and subject to annual re-

view, is described in S4-1, Policies on p. 66.

Governance Report of ISS A/S

The report includes a transparent description of

our governance structure, the main elements of

our internal controls related to financial report-

ing and a detailed description of our position on

the Danish Corporate Governance Recommen-

dations. The report is available here:

Corporate Governance Report 2024

OUR GOVERNANCE 32

OUR GOVERNANCE 33

OUR GOVERNANCE 34

OUR GOVERNANCE 35

Diversity

The Board and the EGM of ISS A/S recognise the im-

portance of promoting diversity at management

levels and have implemented policies regarding di-

versity in respect of Board and EGM nominations

according to which we are committed to selecting

the best candidate. When considering qualifications,

experience and competencies, emphasis is (based

on a recommendation from the Nomination Com-

mittee) placed on:

• experience and expertise;

• diversity of gender, age and nationalities as well

as in broader terms; and

• personal characteristics matching ISS’s values

and leadership principles.

The overall relevant experiences and competencies

for board members are included in the ISS A/S

Competencies & Diversity policy, available here

The specific competencies for each board member

are listed on pp. 47-48 in the Annual Report of ISS

A/S, including the specific ESG competencies

marked with the letter “E” for Environmental, “S” for

Social and/or “G” for Governance. The competencies

for each board member are annually reviewed, in-

cluding competencies within our sustainability- re-

lated material impacts, risks and opportunities. Ex-

pertise within business conduct is included in the

special competence identified as Corporate respon-

sibility & sustainability.

In terms of nationalities, 60% of the EGM members

were Danish, 20% British and the remaining 20%

were Norwegian. (GOV-1 §21 (d)).

In our Board, 44% of the members were Danish,

14% Swedish, 14% British, 14% Swiss and the re-

maining 14% were American. (GOV-1 §21 (d)).

The Group Diversity, Inclusion & Belonging policy,

available here

Gender

Gender balance is, and has always been, a vital part

of our Diversity, Inclusion and Belonging (DIB)

agenda. As part of our DIB strategy, we have de-

fined a target of achieving at least 40% gender bal-

ance at corporate leadership levels by 2026. Our ac-

tions to reach our target for corporate leadership

are further described in our Sustainability state-

ment, see S1-5, Gender balance, p. 58 and S1-9, Di-

versity metrics p. 60.

In our EGM, the female representation decreased to

20% following the changes to the management

team as of 9 January 2025, see p. 30. At 31 Decem-

ber 2024, female representation was 25% (2023:

22%). (GOV-1 §21 (d)).

In our Board, the female representation was 43%

(elected by the annual general meeting of ISS A/S)

and 50% including employee representatives. (GOV-

1 §21 (d)).

A status on gender balance for the Board at 31 De-

cember 2024 is provided on the next page, to-

gether with diversity in terms of nationality and spe-

cial competencies.

To promote, facilitate and increase the number of

women in corporate leadership, we continue lever-

aging our DIB policy, which defines a number of ini-

tiatives, e.g.:

• our recruitment policy, requiring that we short-

list at least one female candidate in all internal

and external searches for vacant positions

• develop succession planning with the aim of

identifying gender balanced successors by

building and developing balanced pipeline

• engage with comparative companies and exter-

nal bodies promoting women in leadership as

well as engaging with our Gender Balance Em-

ployee Resource Group (ERG).

OUR GOVERNANCE 36

ISS Global A/S

The Board of Directors (the Board) of ISS Global A/S

is responsible for annually determining the appro-

priate qualifications, experience and competencies

required of the Board and the Executive Manage-

ment of ISS Global A/S in order for the Board and

the Executive Management to best perform their

tasks, taking into account ISS Global A/S’s needs

and the existing composition of these boards.

The Board and the Executive Management recog-

nise the importance of promoting diversity and con-

sider both competencies and diversity in respect of

Board and Executive Management nominations ac-

cording to which we are committed to selecting the

best candidate.

The management team of ISS Global A/S consists of

the Executive Management, comprising one mem-

ber employed by ISS World Service A/S (the parent

of ISS Global A/S) and the Board, whose members

are employed by either ISS A/S or ISS World Ser-

vices A/S. As ISS Global A/S has no employees, the

company has not implemented separate policies in

accordance with section 107d.

Sustainability statement

ESRS 2 General

Creating value through sustainability 38

Disclosure requirements in ESRS covered

by the Sustainability statement 39

Governance 40

Strategy 43

Impact, risk & opportunities management 49

Social

How we create value 51

ESRS S1 – Own workforce 52

Reporting principles for Social 62

ESRS S2 – Workers in the value chain 64

ESRS S4 – Consumers and end-users 66

Environment

How we create value 67

ESRS E1 – Climate change 68

Reporting principles for Environmental 73

EU taxonomy 75

Reporting principles for EU taxonomy 76

EU taxonomy Annex II: Revenue 77

EU taxonomy Annex II: CapEx 78

EU taxonomy Annex II: OpEx 79

Governance

How we create value 80

ESRS G1 – Business conduct 81

Reporting principles for Governance 83

Other

List of datapoints that derive from other EU legislation 84

Introduction

The Sustainability statement is prepared in

accordance with European sustainability

Reporting Standards (ESRS) and is part of the

Management review.

Disclosures related to Environmental, Social

and Governance (ESG) are included in

this section.

As ISS is a people business, we have chosen

to present the disclosure requirements

related to “Social” before the requirements

for “Environment”.

Sustainability statement

SUSTAINABILITY STATEMENT 37

GENERAL

General

Creating value through sustainability

As a leading, global provider of workplace and facility

services with 325,000+ employees and 40,000+

customers in ~30 countries, where we self-deliver

our services, ISS impacts people, societies, and the

environment.

As a facility service provider, our ‘product’ is our

people, which means that our climate footprint

is relatively low compared to companies in many

other industries. Still, we take full responsibility for

mitigating climate change and are committed to

pursuing our net-zero ambitions while supporting

our customers’ environmental goals.

It is in the social domain, however, where we can

make the greatest sustainability impact.

Sustainability is embedded in our strategy, values,

business practices, and decision-making, and

we are strongly committed to making a positive

dierence through ambitious eorts – both within

our organisation and in close collaboration with

customers and suppliers.

We contribute to people and communities by

oering safe and inclusive workplaces where

everyone is respected for who they are, is fairly

compensated, and has opportunities to advance

their social mobility. This is the right thing to do

and essential for success: engaged people deliver

better services and customer experiences.

Through data-driven insights and hands-on

expertise, we help our customers improve eciency,

adopt sustainable practices, and achieve their

environmental goals. At the same time, our self-

delivery model and dedicated workforce support our

customers in advancing their social progress.

In this section

Disclosure requirements in ESRS covered

by the Sustainability statement 39

Governance 40

Strategy 43

Impact, risk & opportunities management 49

38

GENERAL

Disclosure requirements in ESRS covered by the Sustainability statement

ESRS 2 General Page

GOV-1 The role of the administrative, management and supervisory bodies 40

GOV-2 Information provided to and sustainability matters addressed by the company’s administrative,

management and supervisory bodies

40

GOV-3 Integration of sustainability-related performance in incentive schemes 41

GOV-4 Statement on sustainability due diligence 41

GOV-5 Risk management and internal controls over sustainability reporting 41

BP-1 General basis for preparation of the sustainability statement 42

BP-2 Disclosures in relation to specific circumstances 42

SBM-1 Strategy, business model (SBM) and value chain 43

SBM-2 Interests and view of stakeholders (link to strategy and business model) 44

SBM-3 Material impacts, risks and opportunities (IRO) and their interaction with strategy and business model 44

IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities 49

IRO-2 Disclosure requirements in ESRS covered by the undertakings sustainability statement 50

ESRS S1 Own workforce Page

S1-1 Policies related to own workforce 52

S1-2 Processes for engaging with own workers and workers’ representatives about impacts 53

S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns 53

S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks

and pursuing material opportunities related to own workforce, and effectiveness of those actions

54

S1-5 Targets related to managing material negative impacts, advancing

positive impacts, and managing material risks and opportunities

58

S1-6 Characteristics of the undertaking’s employees 58

S1-7 Characteristics of non-employee workers in ISSs own Workforce 59

S1-8 Collective bargaining coverage and social dialogue 59

S1-9 Diversity metrics 60

S1-10 Adequate wages 60

S1-12 Persons with disabilities 60

S1-13 Training and skills development metrics 60

S1-14 Health and safety metrics 60

S1-16 Remuneration metrics (pay gap and remuneration ratio) 61

S1-17 Incidents, complaints and severe human rights impacts 61

ESRS S2 Workers in the value chain Page

S2-1 Policies related to workers in the value chain 64

S2-2 Processes for engaging with workers in the value chain and workers’ representatives about impacts 64

S2-3 Processes to remediate negative impacts and channels for workers in the value chain to raise concerns 64

S2-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and

pursuing material opportunities related to workers in the value chain, and effectiveness of those actions

64

S2-5 Targets related to managing material negative impacts, advancing positive impacts,

and managing material risks and opportunities

65

ESRS S4 Consumers and end-users Page

S4-1 Policies related to consumers and end-users 66

S4-2 Processes for engaging with consumers and end-users and workers’ representatives about impacts 66

S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns 66

S4-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and

pursuing material opportunities related to consumers and end-users, and effectiveness of those actions

66

S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing

material risks and opportunities

66

ESRS E1 Environment Page

E1-1 Transition plan for climate change mitigation 68

E1-2 Policies related to climate change mitigation and adaptation 69

E1-3 Actions and resources in relation to climate change policies 69

E1-4 Targets related to climate change mitigation and adaptation 71

E1-5 Energy consumption and mix 71

E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions 72

E1-7 GHG removals and GHG mitigation projects financed through carbon credits 72

E1-8 Internal carbon pricing 72

ESRS G1 Governance Page

G1-1 Business conduct policies and corporate culture 81

G1-2 Management and relationship with suppliers 82

G1-3 Prevention and detection of corruption or bribery 82

G1-4 Confirmed incidents of corruption or bribery 83

G1-6 Payment practices 83

39

GENERAL

ESRS 2

General

Our services are performed by people at the

sites of our 40,000+ customers on a daily basis.

It is therefore no surprise that our sustainability

impacts, risks and opportunities (IROs) are

skewed towards social aspects. We take shared

responsibility across the organisation for

managing our sustainability IROs, but the weight

of our support structures indicates the depth

or “overall materiality” of social, environmental

and governance aspects.

Governance

GOV-1

Management

The Board of Directors (the Board) retains overall oversight of

sustainability matters while Executive Group Management (the

EGM) is responsible for the day-to-day management of sustain-

ability activities as reflected in our Sustainability Policy.

The Audit & Risk Committee, a sub-committee to the Board,

exercises oversight responsibilities relating to business conduct

and internal controls over sustainability reporting.

Management oversight of sustainability activities is primarily

exercised by the EGM through the Sustainability Committee, a

sub-committee of the EGM chaired by the Group Chief People

& Technology Officer. The Business Integrity Committee chaired

by the Group CFO exercises managerial oversight of business

conduct matters.

Our Group Head of Environment, Social Sustainability and Gov-

ernance is overall responsible for coordination of the operational

execution of our sustainability strategy as defined by the Board

and EGM. Day-to-day management responsibilities of sustaina-

bility activities are delegated and integrated into each relevant

functional pillar. Environmental matters are the overall responsi-

bility of Operations headed by our Group Chief Operating Officer,

social matters are the overall responsibility of Group People &

Culture headed by our Group Chief People & Technology Officer

and governance matters are the overall responsibility of Group

Legal headed by our Group General Counsel.

We embed our sustainability activities in our service perfor-

mance through four Sustainability Service Line Boards headed

by the Global Head of Cleaning, Technical Services, Food and

Workplace respectively and with country and functional rep-

resentation to ensure enterprise-wide engagement.

Managing our material impacts, risks and opportunities does

not necessarily follow strict organisational design principles,

but require adaptation to how management and oversight is

best exercised and executed in our context. Functional man-

agement responsibilities for each material topic is described

together with the material topic.

Key ESG metrics are consolidated and reported internally on a

quarterly basis through ESG Controlling & Reporting as part of

the Finance function headed by the Group CFO.

Targets may be defined as part of managing functional sustaina-

bility responsibilities, but does not follow a defined process. Our

essential sustainability related targets are endorsed by the EGM.

Appropriateness and availability of sustainability related skills

and expertise is assessed and evaluated in the same way as any

other required or desired skillset or expertise. Our build out of

global functions on Sustainability, Decarbonisation, Diversity,

Inclusion & Belonging and ESG Controlling reflect the outcome

of our ongoing assessment and evaluation process and links

directly to our material impacts, risks and opportunities. For a

description of the Board’s competency assessment please refer

to p. 35.

GOV-2

Addressing sustainability matters

The Board is informed of sustainability matters on a recurring

basis. In 2024, 11 of specific sustainability related matters

were transacted at board meetings while matters relating to

ESG reporting were transacted in three Audit & Risk Commit-

tee meetings in addition to business conduct matters being

addressed at each meeting.

The EGM is informed of sustainability matters on a recurring

basis. In 2024, 27 of specific sustainability related matters were

transacted at EGM meetings. The Sustainability Committee, a

sub-committee to the EGM, has a fixed quarterly meeting cadence

supplemented by ad hoc updates.

ESG governance structure

Management

• Board of Directors (Board), the Audit & Risk

Committee and the Executive Group

Manage-ment (EGM), see pp. 33-34

Sustainability committee

• EGM committee

1)

• Chaired by the Group Chief People

& Technology Officer

Sustainability committee activities

• Oversight of the sustainability strategy, targets

and initiatives

• Tracking progress of ESG targets and provide

relevant guidance

• Reviewing panel for proposed ESG initiatives

and investments

• Identifying/mitigating sustainability impacts,

risks and opportunities

• Facilitating key stakeholders, incl. customers,

employees, investors and regulatory bodies

to promote transparency

• Reviewing sustainability-related policies for

EGM approval

Head of Sustainability

• Day-to-day management of ESG activities:

E: Group Chief Operating Officer (Group COO)

S: Group Chief People & Technology Officer

G: Group General Counsel

Our Sustainability Policy is available here

1)

From February 2025, the Sustainability Committee will

be organised as an operational committee headed by

the Group Chief People & Technology Ocer rather than

an EGM committee.

40

GENERAL

Governance (continued)

Information is generally provided by the functional E, S or G lead

supported by internal and external experts. Ongoing manage-

ment updates on material sustainability related impacts, risks and

opportunities follow information flow cycles decided within the

relevant functional area.

Impacts, risks and opportunities relating to sustainability matters

are not considered differently from other impacts, risks and op-

portunities pertaining to ISS’ business.

The following material impacts, risks and opportunities related to sus-

tainability were addressed directly or as part of overarching themes

during 2024 b

y the Boar

d, the EGM and the Sustainability Committee:

Health & safety, climate change mitigation, working conditions,

equal treatment & opportunities for all, corporate culture and

corruption/bribery.

GOV-3

ESG and incentive schemes

Sustainability-related targets are embedded as part of our short-

term incentive programme (STIP) with a 15% weight as approved

by the Board Remuneration Committee.

Climate-related incentives:

• 4.7% absolute carbon emission reduction

• Development of climate transition plans

Social incentives:

• Gender balance progress

• Living wage progress

• 26,000 recognised qualifications

• Customer value propositions

• Health & safety

Governance incentives:

• Policy and standard compliance levels

These objectives are applicable to senior employees across ISS,

including the executive leadership teams in all countries as well

as the EGM.

GOV-4

Statement on due diligence

Core elements

of due diligence

Sustainability

statement

Embedding due diligence

in governance, strategy

and business model

Strategy p. 43 and p. 48

Engaging with affected

stakeholders in all key

steps of the due diligence

Overall stakeholder engage-

ment p. 44, Customers

p. 44, Employees p. 52-53,

Labour organisations p. 53,

Value chain workers p. 64,

Suppliers p. 82

Identifying and assessing

adverse impacts

Double materiality assessment

p. 49, Customer engagement

survey p. 49, MyVoice survey,

Safety Survey and Diversity

Census p. 53, Supplier vetting

p. 64-71

Taking action to address

adverse impacts

Actions in regard to employ-

ees p. 54-57, value chain

workers p. 64-65, end-users

p. 66 and climate p. 69-70

Tracking the effectiveness

of these efforts and

communicating

Internal management

reporting p. 40-41, Speak-up

channel p. 81

GOV-5

Risk management

and internal controls

Sustainability reporting is a product of input derived from

numerous internal and external sources across functions and

geographies and relies on systems and processes ranging

from locally bespoke and autonomous solutions to being globally

aligned and system integrated. The fragmented nature of data

sources together with the – compared to financial reporting –

relative immaturity of the sustainability reporting discipline are

key risk areas.

We generally look to adopt same or similar internal control

processes for sustainability reporting as for financial reporting

though we recognise that there is a significant gap to be caught

up over the coming years. The sustainability reporting landscape

still evolves at a fast pace, and we therefore also have to balance

the need for building robust controls for the current state with

sufficient agility to adapt to changing requirements.

We generally apply a “domain data ownership” principle

across the Group. The function responsible for a particular

sustainability matter is also responsible for the data necessary

for performance management hereof and for maintaining

appropriate controls.

Key sustainability metrics are reported and consolidated follow-

ing the same structure as our financial reporting process and

within the same consolidation system - OneStream.

Data for our key sustainability metrics is compiled country-by

country by the local functional owners and furnished to a des-

ignated ESG Controlling & Reporting function in each country

for local controlling and uploading to our global consolidation

system. Global controlling is subsequently performed by Group

ESG Controlling & Reporting applying a set of pre-defined ma-

teriality thresholds and interdependency indicators.

In 2023, we defined an initial simplified internal control frame-

work for ESG reporting that was piloted during 2024 on key

sustainability metrics (employee turnover, sickness rate and

Lost Time Injury Frequency). It takes an end-to-end process

approach by metric and assesses and prioritises risks on the

basis of mitigation impact and effort to mitigate. We are cur-

rently considering how to adapt our internal control framework

following the learnings from our pilot phase. Findings are

shared within the Global ESG Controlling & Reporting and with

the Audit & Risk Committee.

Fundamental metrics and KPIs on people and safety are report-

ed monthly as part of the ordinary financial reporting cycle. On

a quarterly basis management reporting on ESG performance

is provided to the Sustainability Committee.

41

GENERAL

BP-1

Basis of preparation

The sustainability statement is consolidated following the

Group’s accounting policies disclosed in its consolidated

financial statements, unless otherwise specified in the

accounting policies within each topical ESRS disclosure. We

have defined operational control in accordance with the

ESRS. In the event of acquisitions or divestments, the sus-

tainability statement is following the same principles as the

financial statements.

We include disclosures on material impacts, risks and

opportunities in our upstream and downstream value chain

in accordance with the outcome of our Double Materiality

Assessment and describe value chain coverage of our poli-

cies, actions and targets where applicable. Metrics for Scope

3 emissions and Lost-Time Injury Frequency includes value

chain data.

We have not omitted classified or sensitive material infor-

mation nor any material information on grounds that it

constitutes intellectual property, know-how or the results

of innovation.

Principles and compliance

Scope and data quality

In 2024, preparations for reporting in accordance with the

Corporate Sustainability Reporting Directive (CSRD) and the

associated ESRS reporting standards have been extensive

and while a foundation has been laid we expect ongoing

changes as practices and principles develop across report-

ers, industries, regulators and assurance providers.

On data quality improving our carbon emission tracking has

been a priority that the implementation of our dedicated car-

bon management platform – Watershed – will address. It will

become fully operational in 2025, slightly later than planned.

Our reporting units are our countries. The reporting

methodology applied country-by-country depends on the

system and process landscape of each country and our

consolidated reporting will therefore often span different

reporting methodologies. ISS France was divested in the

beginning of April 2024. We include the performance of ISS

France up to and including March 2024 for metrics internally

reported at the time of divestment. Several metrics mandat-

ed by ESRS were introduced only after the French divest-

ment which is not included for such metrics. Performance

in France is included in average employees (S1-6), employee

turnover (excl. deaths and retirements) (S1-6) and average

training hours (S1-13). Further, France is included in energy

consumption (E1-5) and Scope 1-3 emissions (E1-6) except

for consumption and emissions relating to diesel and petrol,

which is insignificant. France is by definition not included in

“end-of-period” metrics. Across our operations we have only

a single joint venture operation in Spain, which is insignificant

and not adjusted for.

External principles and guidelines

With the introduction of the CSRD effective as of 1 January

2024 we have aligned our reporting practices accordingly.

Our reporting meets the ESRS reporting standards issued

with Commission Delegated Regulation (EU) 2023/2772 and

is made with reference to the GRI Standards as a result of

the interoperability between ESRS and GRI. We report on our

UN Global Compact commitment through the designated

reporting platform.

Internal guidelines

As a basis for our reporting, we rely on our ESG Accounting

Manual to provide reporting principles and rules to ensure a

consistent basis for reporting. In 2024, we have introduced

reporting principles covering ESRS mandated reporting re-

quirements that supplement the sustainability performance

reporting we have been disclosing for many years as part

of our annual reporting taking our total internal datapoint

reporting from around 75 to around 125 with certain items

being disaggregations of already reported datapoints.

Actual measurement of underlying data is not always pos-

sible. The ESG Accounting Manual provides guidance that

reporting units can apply as the basis for reporting.

BP-2

Specific circumstances

Where specific circumstances apply in regard to deviation

from mandated time horizons, use of value chain estima-

tions, sources of estimation and outcome uncertainty, chang-

es in preparation or presentation of sustainability informa-

tion and reporting errors in prior periods, disclosures will be

made together with the relevant disclosure requirement or

with its applicable accounting policy disclosures.

People and social metrics are measured without estimates

except for non-employees (S1-7), training hours (S1-13), ex-

posure hours for non-employees and contractor employees

(S1-14), gender pay gap and remuneration ratio (S1-16) and

certain gender breakdowns. For E1-5 and E1-6 a low propor-

tion of fossil fuel consumption is estimated typically based on

spend or travel distance and a medium proportion of other

energy consumption is estimated based on m

2

or building

types. For E1-6 a large proportion of scope 3 emissions is

subject to assumptions and estimates. Governance metrics

are measured without estimates.

Phase-in and incorporation

by reference

We have made use of phase-in options for S1-11, S1-15 and

E1-9.

In presenting the sustainability statement, ESRS disclosure

requirements incorporated by reference to other sections of

the Annual Report include:

• GOV-1: Information related to the Board of Directors and

the Executive Group Management (20a and c and 21) on

pp. 30-36 and pp. 47-48 in the Annual report of ISS A/S.

Incorporation by reference: Information that is mandatory

to disclose as part of the ESRS and which has been placed

outside of the Sustainability Statement has been clearly

marked as such. It is presented by underlining it in blue and

adding the reference as: ESRS-X §X.

42

GENERAL

Strategy

SBM-1

Strategy, business

model (SBM) and value chain

We are a global provider of outsourced facility services. Our

own operations comprise cleaning services, catering services,

technical services, security services, reception services and

workplace services that we provide to businesses and public

customers as integrated facility services or as stand-alone

cleaning services. Our overall targeted customer segments

are financial services, professional services, technology and

life-science as well as customer segments that in a local market

context are desirable to pursue such as healthcare services in

several countries. This constitutes our downstream value chain.

As a service organisation we are people intensive and rely less

on products and resources for our service performance. With

few exceptions our services do not require high pre-existing

skill levels to perform and we are therefore attractive to and

employ a significant proportion of our workforce from unskilled

or below market-average skilled people groups. Providing

opportunity to work and grow can have a significant positive

impact on our employees individually and for their families as

well as for social mobility in societies. At the same time, less

skilled people groups are generally more vulnerable to exploita-

tion and its resulting negative impacts.

Our strategic decision is to self-perform rather than subcon-

tract services. We believe that having a direct employment

relationship with our workforce is a culture driver that enhanc-

es service performance and supports our ability to increase our

positive people and societal impacts and minimise our potential

negative impacts. We are present with self-delivery capabilities

in around 30 countries across Europe, Asia, Pacific, North Amer-

ica and Latin America. In addition, we have partnership estab-

lishments in around 30 countries providing services to global

customers. During 2024 we divested our business in France.

The facility services industry is inherently asset and resource

light and our environmental impact from carbon emissions is

driven more by our absolute scale than by its intensity, which

is underpinned by the fact that our strategic choice to self-de-

liver services drives one of our main carbon emission sources;

employee commuting.

Our supply chain and upstream value chain can roughly be

divided into three groups: i) Goods and products used in our

service performance such as food, cleaning detergents and

equipment, paper towels and vehicle fleet, ii) subcontracted fa-

cility services that are same or similar in nature to what we pro-

vide and iii) temporary staff to supplement our own workforce.

Our main supply chain sustainability input relates to our scope

3 emissions and we are working with key supply chain mem-

bers on enhancing the availability of primary data.

We do not perform fossil fuel activities, chemical production

activities, controversial weapons activities or tobacco activities.

Our main sustainability-related goals are linked to our material

people and environmental impacts. We aim to enhance our pos-

itive people impact and minimise our potential negative people

impact by aspiring to become the leading frontline employer.

Our sustainability-related goals transcend markets and geogra-

phies. Very broadly speaking we will be able to impact societies

and markets with lower levels of social and public support

systems more positively from our social sustainability-related

goals. Our environmental sustainability goals will impact mar-

kets and geographies depending on our local activity levels and

service mix.

Employees

(Headcount)

2024

End of period

2024

Average

Northern Europe 65,042 65,881

Central & Southern Europe 106,218 103,744

Asia & Pacic 125,208 126,938

Americas 28,376 29,630

Other 1,639 5,346

Total 326,483 331,539

Revenue

(DKKm) 2024 %

Oce-based 33,273 40%

Production-based 19,256 23%

Healthcare 12,199 14%

Other 19,033 23%

Total 83,761 100%

NACE codes above 10% of Group revenue

CSC00 – Manufacturing

CSJ00 – Information and communication

CSK00 – Financial and insurance activities

CSQ00 – Human health and social work activities

Placemakers/Support staff

(Headcount)

2024

End of period %

Placemakers 304,913 93%

Support sta 21,570 7%

Number of employees in EEA countries

(Headcount)

2024

End of period %

Total employees in EEA countries 87,984 27%

43

Revenue and number of employees differ from the disclosures

in the consolidated financial statements as the Sustainability

statement is described in the context of the ISS A/S Group, see

Introduction to the ISS Global Group, p. 3.

1)

GENERAL

Strategy (continued)

SBM-2

Stakeholders

Engagement with stakeholders is organised in appropriate

forums at the appropriate organisational level considering the

purpose of the engagement and its participants. Feedback

loops, escalation principles and reporting lines aim to ensure

that the outcome of engagement is filtered appropriately and

informs and influences considerations and decisions at the

right level of the organisation, including at the level of the EGM

and the Board.

From time to time we will engage with key stakeholders in

dedicated stakeholder impact sessions to ensure that their

views are mapped, understood and considered by us. In 2022,

we conducted a stakeholder materiality assessment across

24 sustainability topics using a low-high importance scale. We

involved key internal Subject Matter Experts at executive and

other management levels, support staff and placemakers, as

well as external stakeholders like investors, customers, suppli-

ers, employee representative organisations and the European

Works Council. The outcome shows a strong correlation with key

impacts, risks and opportunities identified in our 2023 Double

Materiality Assessment.

Our 2024 customer engagement survey has directly influenced

the outcome of the strategy refresh exercise we completed in

December 2024 and is a good example of stakeholder engage-

ment having strategic impact.

Placemakers

We use the term “placemakers” for our own employees.

When required by context “placemakers” mean service

performing staff sometimes referred to as “frontline”

employees, and “support staff” means managerial or

other support staff sometimes referred to as “white-

collar” employees.

People, value-chain and end-users

Our strategic decision to self-perform our services provides

us with line-of-sight within our organisational and managerial

boundaries. We define, execute and control our management

approach and response, which enables us to better mitigate

negative impacts and enhance positive impacts to our

workforce.

Through our interactions and business relationships with our

supply chain members we may indirectly impact supply chain

workers.

Our commitment to ethical business practices encompasses

respect of privacy rights towards our own employees, custom-

er end-users and others that we engage with as part of our

activities. Just as we remain vigilant with third parties needing to

process personal data of our own employees, we generally ex-

perience that our customers take great interest in ensuring that

privacy rights of their employees, our end-users, are respected.

Key stakeholders

and how we engage

People Day-to-day engagement with line managers,

employee and safety committees, annual

appraisal, daily teamboard talks, townhall

meetings, MyISS and MyVoice, including our

People Engagement Survey

Customers Regular performance reviews, ongoing

dialogue and ad-hoc workshops, customer

surveys, end-user surveys, Account

Development Plan

Shareholders Investor meetings, roadshows, annual

General Meeting, Capital Markets Day,

Quarterly Investor Calls, announcements and

releases

Suppliers Continuous dialogue throughout the year,

workshops, business review meetings, site-

based performance management meetings,

training sessions

Unions National and international works councils,

ongoing dialogue with unions and local

employee representatives, quarterly

European Works Council meetings, semi-

annual UNI meetings

Media Multi-channel and platform dialogue with

media and NGOs on an ongoing basis

SBM-3

IRO and interaction with SBM

Our main impacts, risks and opportunities (IRO) relate to

people in our workforce and in our value chain. Our 11 material

impacts, risks and opportunities are provided in the overview

on p. 45 and described in the following.

The material impacts to our own workforce are mainly a result

of industry characteristics, including the relative low-skill profile

of our services and its job positions. Self-performing our ser-

vices and a strong values foundation are strategy and business

model aspects directly influencing our people impacts.

Our own workforce

Sometimes referred to as frontline employees or blue-collar

workers our service performing placemakers are generally more

exposed to our material impacts in regard to occupational health

& safety, pressure on working conditions and equal treatment

and opportunities. This employee category generally has lower

skill requirements though it varies by service line, job type and

service environment, but also the greatest potential for bene-

fitting from positive impacts in regard to for example upskilling.

Approximately 93% of our employees are servicing placemakers.

Temporary workers engaged through temp agencies supple-

ment or substitute our service performing placemakers.

We provide our services globally. Broadly speaking, people im-

pacts are the same regardless of geography, but the intensity

of impacts are affected by for example the regulatory climate,

social welfare systems and cultural aspects of each jurisdiction.

Our continued engagement with our placemakers and employ-

ee representatives at all levels of the organisation are impor-

tant contributors of perspective and insight to areas or aspects

of our operations and practices capable of causing harm or

having positive influence on our placemakers.

44

GENERAL

Our 11 material impacts, risks and opportunities

ESG Topic What Impact, risks & opportunities Effect

Own

operations/

value chain

Health & Safety

(Own workforce)

Practices and work environments

that are safe and non-hazardous to

the health and well-being of workers

Our service performance comprise certain elements of hazardous activities – either isolated, of a re-

petitive nature or from specic customer environments. Focus on preventing work-related accidents is

important for securing the safety and well-being of our placemakers.

IR (-) S A Own

operations

Working conditions

(Own workforce)

Fair working conditions such as

secure employment, adequate

wages and freedom of association

Job positions in our service lines often have relatively low barriers of entry and oers attractive

opportunities for people at the edge of labour markets. Without focus on ensuring proper working

conditions, exploitation risk increases at the expense of individuals and the larger society.

IR (+)/(-) S A Own

operations

Working conditions

(Value chain)

Safe and fair working conditions such

as secure employment, adequate

wages, freedom of association and

work-life balance

To some extent we engage subcontractors that perform same or similar services to us. At the same time

we rely on our value chain for consumables within areas that traditionally are labour intensive and with

low barriers of entry for job positions such as within food, clothing and distribution. Without focus on

ensuring proper working conditions, exploitation risk increases at the expense of individuals and the

larger society.

IR (-) S A Value chain

(upstream)

Equal treatment and

opportunity for all

(Own workforce)

Environment of non- discrimination

and equal opportunities

As a large global employer our commitment and active promotion of equal opportunities drives individual

opportunity and nancial value. Failing to do so – also in light of our workforce including less robust or

vulnerable categories of people – will impact individual and societal prosperity as well as business and

nancial performance.

IR (+)/(-) S A Own

operations

Information-related impacts for

consumers and/or end-users

(Privacy)

GDPR and privacy practices related

to customer end- user data

Our service performance touches and engages with millions of end-users every day and will regularly

involve personal data of end-users either by contract or as a natural consequence of our services. Ensur-

ing robust data privacy processes is necessary to avoid indivdual privacy harm as well as potential loss of

business and cost exposure.

R S Value chain

(downstream)

Other work-related rights

(Own workforce)

GDPR and privacy practices related

to personal data of our placemakers

We employ more than 325,000 placemakers across the globe and will necessarily process personal data

in this regard. Keeping personal data safe is not only part of our employer value proposition, but also a

potential source of nancial damage.

R SML Own

operations

Other work-related rights

(Value chain)

Practicies and incidents in

regard to e.g. child labour,

forced labour and privacy

Working across industries in a diverse and large value-chain there is a need to uphold and enforce safe-

guards on basic work-related rights such as child and forced labour particularly where such industries are

people intensive or have known displays of violations.

R S Value chain

(upstream)

Climate change mitigation Reducing or preventing GHG

emissions

Facility services in general are not high emitting activities with the footprint from food services being the most

signicant. However, our absolute emissions do leave an impact and we need to pull at least our share of the

weight in the global combat against climate change.

IR (-) SML A Own

operations/

value chain

Corporate culture Values, beliefs and norms that shape

our behaviour and decision-making

A value based culture lays the foundation for fair and prosperous development by instilling the right

behaviours and the right decisions.

R S Own

operations

Corruption and bribery Fair and transparent business

practices

Principles around fair business practices are fundamental for prosperous societies. Regulatory

frameworks and market perception can drive signicant nancial consequences where instances of

corruption and bribery occur.

R S Own

operations

Management of relationships

with suppliers, including pay-

ment practices

Practices and policies in regard to

interaction with suppliers

Engaging suppliers on fair terms – particularly where power positions are imbalanced – is critical for driv-

ing prosperity for value chain businesses and value chain workers as well as society at large.

I (-) S A Own operations/

value chain

(upstream)

(+)/(-) = Positive/negative SML = Short, medium, long term A/P = Actual/potential

"S" indicates that eects may materialise in the short term.

"M" and "L" indicates that eect may materialise only beyond the short term.

45

GENERAL

Strategy (continued)

Value chain workers

It is a key strategic choice for us to primarily self-deliver our

services and our impact on value chain workers is affected by

this decision. Yet we still rely on a robust supply chain for goods

and services associated with our service performance.

Our supply chain can largely be split into two categories. One

part is the traditional supply chain that supplies goods and

services that form part of our own service performance such as

manufacturers of cleaning detergents and equipment, uniforms

and food producers. The other category is our subcontractors

that generally perform services of a same or similar nature as

our own facility services. We engage with subcontractors for

facility services that do not form part of our own self-delivery

portfolio, for example pest control and lift and escalator mainte-

nance. We also engage with subcontractors for performance of

services within our own service portfolio in local markets where

our self-delivery capabilities do not fully extend.

We do not by design distinguish between the two supply chain

categories, but we believe that our ability to drive impact is

more fluent or intrinsic in regard to subcontractors because we

understand and acknowledge the context of our subcontractors

as colleagues within the facility service industry and therefore

often exposed to similar IROs as we are whereas workers in the

traditional supply chain category are exposed to typical impacts

associated with their respective industry and geography.

This materialises in the material impacts identified for our

supply chain workers in relation to working conditions and

other work-related rights that pinpoints occupational health &

safety for our subcontractors driven by the same factors as for

ourselves. It does not identify child labour or forced labour as

concrete impact areas, but recognises its generic risk character

within our supply chain. The latest ILO reports identifies child

labour as predominantly centered around agriculture whereas

forced labour is mostly present within the industry sector and

the service sector.

We generally have access to a diverse supply chain and we are

not dependent on any single monopolistic supply chain mem-

ber. Further, we have not identified material impacts for value

chain workers in our downstream value chain.

Our approach towards mitigating potential negative impacts

– as explained below – centers around our due diligence ac-

tivities where certain elements in regard to training will have a

particular impact on subcontractor workers in reducing the risk

of occupational health & safety incidents.

As a business-to-business operation we engage with public and

private customers and through them with their employees as

our end-users. Our service engagement frequently requires

access to and processing of personal data of end-users for

example food allergies relevant to our food services and

contact details relevant for our reception services. Other of our

service activities such as cleaning services are generally not

dependent on personal end-user data.

We generally do not process or have access to very sensitive per-

sonal data of our end-users that would have significant harmful

consequences for end-users if inappropriately managed.

There is a significant financial and reputational risk associated

with not appropriately managing personal data of our end-users.

It violates the trust with affected customers and taints our repu-

tation in the market. Regulatory requirements such as those fol-

lowing from the General Data Protection Regulation (GDPR) can

also lead to significant fines being imposed. Moreover, mitigating

measures may be costly to implement to rectify weaknesses.

Health & safety

(Own workforce)

While the nature of the services that we perform is generally

not dangerous, the scale of our operations as well as specific

hazardous environments imply that accidents and incidents do

occur leading to physical or psychological harm for our employ-

ees. It will be a risk to our ability to attract and retain employ-

ees, if we are not able to provide safe work environments.

Health & safety has been a key priority for us for many years

and we continue to strengthen our organisation and practices

to drive an even stronger safety culture. In 2024, we introduced

“safety-stand-downs” for all leaders across the Group hosted by

the Group CEO to address serious safety incidents. Despite our

best efforts, we are unlikely to completely eliminate health &

safety accidents and incidents.

We manage health & safety related IROs through a dedicated

global Health & Safety function organised within our Operations

function headed by our Group Chief People & Technology Officer.

Working conditions

(Own workforce)

Job positions in our service lines often have relatively low bar-

riers of entry and offers attractive opportunities for people at

the edge of labour markets. Without focus on ensuring proper

working conditions, exploitation risk increases at the expense

of individuals and the larger society, which may negatively

impact our ability to attract and retain our workforce.

Our commitment to providing proper working conditions is

a natural extension of our values. It is codified in our Code of

Conduct and embedded in detail in our Global People Stand-

ards. Our Living Wage priority is a key action for us to drive

working condition improvement.

We manage working condition related IROs to our own work-

force through our global People & Culture function headed by

our Group Chief People & Technology Officer.

Working conditions

(Value chain – upstream)

Though we perform the majority of our services with our own

workforce, we do rely on subcontractors to perform facility

services of same or similar nature as ours either because it

is part of services that we manage on behalf of customers

or because it sits outside of our service offering in a specific

market. Impacts from working conditions including health &

safety aspects of subcontracted services are largely similar to

those from our own service performance and the negative im-

pacts for such value chain workers are not materially different

from what our own workforce is exposed to. At the same time,

we rely on our value chain for consumables within areas that

traditionally are labour intensive and with low barriers of entry

for job positions such as within food, clothing and distribution

where exploitation risk and improper working conditions may

exist at the expense of individuals and the larger society.

Our Supplier Code of Conduct sets standards for our suppliers

to meet in terms of working conditions including occupational

health & safety. These have been revised and re-launched in

2024 and is supported by supplier engagement activities in our

Supply Chain & Procurement function.

We address working condition related IROs to our value chain

workers through our value chain engagement managed by our

global Procurement function within our Operations function

headed by our Group COO in close cooperation with particularly

our People & Culture and Legal functions.

46

GENERAL

Strategy (continued)

Equal treatment and opportunity for all

(Own workforce)

As a large global employer our commitment and active promo-

tion of equal opportunities drives individual opportunity and

financial value. Failing to do so – also in light of our workforce

including less robust or vulnerable categories of people – will

impact individual and societal prosperity as well as business

and financial performance. We acknowledge that interaction

and dependencies between people will cause positive and

negative friction and we are unlikely to succeed in creating only

positive experiences for all. But we continue to strive for provid-

ing work environments where tolerance, empathy and care are

important guardrails.

Our Code of Conduct and our Global People Standards establish

our commitment to equal treatment and opportunity for all. We

have focused our efforts within our five most important diversity

& inclusion dimensions and established dedicated global Em-

ployee Resource Groups (ERGs) for each dimension. We have set

targets for gender balance at our corporate leadership levels,

and we are ambitiously pursuing our goal of providing recog-

nised qualifications for 100,000 employees and their families to

drive additional opportunity for personal growth and prosperity.

The target was recently updated to add an additional 250,000

recognised qualifications by 2030.

We manage working condition related IROs to our own work-

force through our global People & Culture function headed by

our Group Chief People & Technology Officer.

Information-related impacts

(Value chain – downstream)

Our service performance touches and engages with millions

of end-users every day and will regularly involve personal data

of end-users either by contract or as a natural consequence of

our services. Ensuring robust data privacy processes is neces-

sary to avoid individual privacy harm as well as potential loss of

business and cost exposure.

Our continued efforts to minimise the risk of negative impacts

is anchored in our Data Ethics Policy that provides overall

requirements for the use of data in ISS based on the Charter

of Fundamental Rights of the European Union. It is support-

ed by our Data Protection Policy and our Global Information

Security Policy.

We manage IROs related to information security through

our Global Information Security function within our Global IT,

Digitalisation and Services function headed by our Group Chief

People & Technology Officer.

Other work-related rights

(Own workforce)

We employ approx. 325,000 employees across the globe and

will necessarily process personal data in this regard. Keeping

personal data safe and ensuring appropriate personal privacy

is not only part of our employer value proposition, but also a

potential source of financial damage.

Our continued efforts to minimise the risk of negative impacts is

anchored in our Data Ethics Policy that provides overall require-

ments for the use of data in ISS based on the Charter of Funda-

mental Rights of the European Union. It is supported by our Data

Protection Policy and our Global Information Security Policy.

We manage IROs related to information security through

our Global Information Security function within our Global IT,

Digitalisation and Services function headed by our Group Chief

People & Technology Officer.

Other work-related rights

(Value chain upstream)

Working across industries in a diverse and large value-chain

there is a need to uphold and enforce safeguards on basic

work-related rights such as child and forced labour particularly

where such industries are people intensive or have known

displays of violations.

Our Supplier Code of Conduct sets standards for our suppliers

to meet in terms of work-related rights. These have been revised

and re-launched in 2024 and are supported by supplier engage-

ment activities in our Supply Chain & Procurement function.

We manage IROs in regard to other work-related rights for our val-

ue chain workers through our value chain engagement managed

b

y our global Procurement function within our Operations function

headed by our Group Chief Operating Officer in close cooperation

with particularly our People & Culture and Legal functions.

Climate change mitigation

Facility services in general are low carbon emitting activities

with the footprint from food services being the most significant.

However, despite our limited relative impact, we recognise the

importance of combining climate advocacy with climate action

and demonstrate to stakeholders how we pull our share of the

weight in the global combat against climate change.

We have anchored our position on climate change in our

Sustainability Policy underpinned by the ambitious Net Zero

targets for scope 1-3 we have set and work towards. As ~95%

of our carbon emissions are within scope 3 we work closely

together with our key supply chain partners to ensure credible

and tangible reductions.

Our carbon emission insights have been significantly improved

during 2024 with our new global carbon management platform

Watershed that is close to being fully operational, which is an

important stepping stone in moving our climate transition plan

into a cohesive form in 2025.

We manage IROs related to climate change through our global

Decarbonisation team within our Operations function headed

by our Group COO.

Corporate culture

A value based culture lays the foundation for fair and

prosperous development by instilling the right behaviours and

the right decisions. We touch and impact thousands of people

every day in our direct operations and activities and through

our indirect activities. We make mistakes every day that lead

to harm for impacted people and the environment, but we

are adamant on continuously seeking to improve by ensuring

transparency and safety for information to flow that allow us to

take improvement action.

Our fundamental values and beliefs are anchored in our Code

of Conduct that forms the basis for mandatory training for all

employees.

We manage IROs related to corporate culture through our global

Legal function headed by our Group General Counsel in close

cooperation with particularly our Group Internal Audit function.

Corruption & bribery

Corrupt business practices undermine the stability and pros-

perity of societies and impairs fair competition. With business

engagements counting thousands of customers and suppliers

the risk of improper behaviour is real. One of our fundamen-

tal values is “Honesty” and our stance on and against corrupt

business practices directly reflects this value.

Our public ISS Anti-Corruption and Anti-Bribery Policy Statement by

our Group CEO is supported by our Anti-Corruption Policy leaves

no doubt around our commitment to combat corrupt practices.

We manage IROs related to corruption and bribery through our

global Legal function headed by our Group General Counsel

in close cooperation with particularly our Group Internal

Audit function.

47

GENERAL

Strategy (continued)

Management of relationships with suppliers

Engaging suppliers on fair terms - particularly where power

positions are imbalanced - is critical for driving prosperity for value

chain businesses and value chain workers as well as society at

large. We have a large network of suppliers of all sizes across the

globe with whom we can exert influence to drive positive change.

Our supply chain relationships are governed by our Supply

Chain Policy and our Supplier Code of Conduct.

We manage IROs related to our supplier relationships through

our value chain engagement managed by our global Procure-

ment function within our Operations function headed by our

Group COO in close cooperation with particularly our Group

Finance function.

Current nancial eects

Our operating cost, operating margins and cash flows are im-

pacted by our efforts to mitigate negative sustainability- related

impacts and enhance positive sustainability-related impacts.

Costs mainly relate to:

1) People resources at group, country and account level fully

or partly engaged in sustainability-related activities

2) Training activities

3) IT systems

Our sustainability activities are integrated into our functional

operations. It is not possible to separate cost and effect from

ordinary business activities on the one hand and “excess”

efforts in regard to sustainability-related impacts on the other

hand. This is because our most material IROs relating to sus-

tainability to a large extent are inherent business imperatives

that we tackle because of its business importance and not be-

cause of a particular sustainability focus. Our efforts to reduce

food waste makes our resource use more efficient, which saves

cost. That is a business imperative for us as a low margin busi-

ness. It also reduces our carbon footprint. Just as an example.

We are asset-light by nature and do not consider the carrying

amounts of our asset or liability base to be at significant risk of

material adjustments from material sustainability-related risks

and opportunities.

Future nancial eects

Considering our mitigating eorts we do not anticipate any

material nancial eect in the short, medium or long term

of our material sustainability-related risks and opportunities

identied with our 11 dened IROs. We have not identied

any signicant need for investment or resource funding for

specically addressing our material sustainability-related

risks and opportunities over and above what is as part of our

ordinary investment and resource planning.

Future nancial eects of our material sustainability-related risks

and opportunities are associated with a high degree of uncertainty,

particularly in regard to environmental aspects.

Strategy resilience

Our strategy and business model is reviewed each year as

part of our ordinary business cycle. The process is anchored

with the Board and is informed by annual strategy reviews

by country and region, which links into our planning. On

a quarterly basis the EGM reviews our strategy execution

and its resilience towards external factors. Our bi-annual

enterprise risk cycle informs the strategy review process and

highlights current and evolving themes of importance for

the strategy review process. Sustainability-related IROs forms

part of our enterprise risk cycle and is further supported by

the annual work around our double materiality assessment.

We believe that this approach ensures preparedness,

responsiveness, adaptability and learning in our strategy and

business model making it overall resilient, including resilient

to sustainability-related IROs. Our recent strategy refresh

completed in December 2024 reconfirms our strategic focus

on environmental and social sustainability. Our resilience

analysis was conducted as a desktop exercise using publicly

available publications.

48

GENERAL

Impact, risk & opportunities management

IRO-1

IRO and interaction with SBM

Our double materiality assessment uncovers our inherent

exposure to sustainability-related IROs from, and to our busi-

ness, as well as along our value chain. It ignores any actions,

initiatives, controls and efforts already in place and instead

assesses where we should be focusing. We completed the as-

sessment at an IRO level as mandated by the ESRS standards

and scored ourselves on a 1-4 scale, influenced by the princi-

ples we apply for operational and enterprise risk assessments,

as well as statutory reporting and disclosure requirements.

We set the materiality threshold based on which topics would

need sign off from Executive Group Management (EGM).

We conduct a full double materiality assessment process in

accordance with ESRS every 2-3 years – latest in 2023 where 20

ISS functional subject matter experts across People & Culture,

Operations, Procurement, Finance, Legal and Strategy carried

out the assessment, which covered our business activities and –

where relevant – value chain business activities. No site specific

assessments or analysis were performed on own or customer

sites and no standardised methodologies, assumptions or tools

were used. It was validated by the four EGM members with

functional sustainability responsibility. We used desktop exer-

cises, workshops, validation processes and feedback loops. The

outcome of the double materiality assessment was anchored

with the Executive Group Management Board (the EGMB)

and the Board of Directors (the Board) in December 2023 and

sounded with the European Works Council as a key stakehold-

er. The process was supported by recognised external consult-

ants and drew on the results of our 2022 Stakeholder Materiali-

ty Assessment covering internal and external stakeholders such

as investors, customers, suppliers, employee representative

organisations and the European Works Council.

In 2024, we performed a refresh exercise that resulted in

smaller adjustments to the IROs identified and scored in

2023 mainly that “Resource inflow” moved out of the scope of

material topics and “Corruption and bribery” moved into the

scope of material topics. IROs in regard to water, biodiversity

and pollution were not assessed as material. The results of the

refresh exercise have been anchored with the ESG Committee,

the EGM and the Board in December 2024.

Our methodology assesses negative impacts based on their se-

verity and likelihood and positive impacts on their scale, scope

and likelihood.

Sustainability-related risks and opportunities are not assessed

differently from other risks that we are subject to and we

generally do not consider risks and opportunities related to

sustainability impacts to be of higher or lower importance than

other business risks and opportunities. We are still learning

how to fluently embrace sustainability-related topics and we

are in this learning process exercising increased focus and

attention to understand and adapt.

We are not employing a separate or dedicated lens to

sustainability-related aspects. Sustainability-related IROs are

business aspects that we strive to integrate into ordinary

business processes rather than consider a stand-alone

discipline. As an example, our enterprise risk management

framework considers sustainability risks on an equal footing

with any other enterprise risk.

Physical climate risk

Our business operations are not high-emission activities and

are closely linked with the physical locations of our customers’

sites and their ability to continue operations. We rely mostly on

our placemakers and only to a limited extent on consumables

and physical assets due to our asset light business nature. The

climate risk exposure associated with these assets are less

prominent.

We are exposed to physical climate-risk from the frequency and

intensity of extreme weather events (acute), particularly heavy

rain, floodings and storms/hurricanes as well as temperature

increase (chronical). It may impair our ability to perform con-

tinued services, but also provides business opportunities from

additional work, for example clean-up after rain and floodings,

that we can meet with our existing setup.

Transition climate risk

The need for taking decisive climate action is clear and we

acknowledge our responsibility to address our carbon emission

footprint and to advocate action. Our dependencies on external

factors – in particular the need for development of infrastructure

and technology solutions and the lack of clarity on how cost

implications are balanced to ensure a “just transition” – leave

us exposed to transition risk from stakeholder expectations

(market). Potential introduction of carbon taxes (policy) is also a

transition risk to us, which is however generally mitigated by our

ability to pass on cost increases.

In regard to our downstream value chain we have modelled the

transition risk profile of our customer categories and from that

concluded that our revenue base is not exposed to significant

transition risk from this perspective. On the contrary the transi-

tion need in our downstream value chain represents a business

opportunity for us in regard to demand for our energy man-

agement services and technical services.

Resilience analysis

In December 2021 we concluded our first climate-related

resilience analysis covering climate-related impacts, risks

and opportunities across our upstream, downstream and

own operations. It was conducted through interviews and

workshop sessions with key internal Subject Matter Experts

combined with desktop research facilitated and supported by

external consultant experts. Since then, we have made minor

refinements particularly in 2023 when we modelled potential

financial impact of climate risk and opportunities for the first

time. Our resilience analysis covers a low-carbon (SSP1 2.6) and

a high-carbon scenario (SSP5 8.5) in the short (1 year), medium

(2-5 years) and long (5+ years) term.

SSP1 2.6 assumes a “Taking the green road” scenario and

reflects a global outcome where emission reduction commit-

ments similar to our own are generally realised and resulting

in a likely moderate temperature increase stabilising at around

1.8 degrees C by the end of the century. Socio-economic trends

imply that more environmentally friendly practices are adopted

by societies, with the focus shifting from economic growth to

general well-being, and with increasing investments in educa-

tion and health and decreasing inequality.

SSP5 8.5 assumes a “Taking the highway” scenario and reflects a

continued global fossil-fuels dependency development leading

to almost double CO

2

emission levels by 2050 compared to

today and resulting in a likely temperature increase of 4.4

degrees C in 2100. Economic and social development benefit

from investments in enhancing social and human capital that

drive global economic growth.

For further details and impact descriptions please refer to the

sixth assessment report (AR6) of the Intergovernmental Panel

on Climate Change (IPCC).

49

GENERAL

The outcome of the climate-related resilience analysis has in-

formed our strategy resilience analysis described on p. 48 and left

a tangible imprint in our strategic priorities around environmental

sustainability, including our Net Zero commitments.

Our choice of scenarios intends to provide an understanding of

climate change exposure in more outlier scenarios to serve as

guardrails for our considerations, including considerations on

climate-related financial impact.

We will expand on our scenario-based analysis as part of our

further transition plan development.

Our ongoing process to identify and assess climate-related

impacts, risks and opportunities (IROs) is not different from

any other business area and our risk management activities on

functional and enterprise level capture climate-relate aspects as

well. The responsibility is formally anchored with our dedicated

Decarbonisation team under the functional ownership of our

Group COO and our annual wheel for enterprise risk assess-

ment and double materiality assessment ensures regular in-

tervals at which considerations, changes and developments on

climate-related IROs are consolidated and reported to senior

stakeholders including the EGM and the Board.

Understanding climate IROs and the interaction with our

strategy and business model in various scenarios has evolved

significantly in recent years and underpinned that our iden-

tified operational decarbonisation levers are not significantly

impacted by different climate scenarios. There is still a long

way to go until we navigate climate aspects fluently throughout

the business. Each iteration of our processes around climate

IROs reduces uncertainties and moves us closer to a shared

language and contextual understanding.

IRO-2

Disclosures covered by ISS’s

sustainability statement

We disclose information on material IROs that we consider to be

material and relevant for stakeholders or that is prescribed by

the relevant ESRS standards. Materiality is judged by reference to

the size and nature of the information item. The deciding factor

is whether the omission or misstatement could, individually or

collectively, provide a materially incorrect basis for stakeholders

acting reasonably to understand the sustainability-related context

of the activities of the Group.

We acknowledge that ESRS standards intend to drive transpar-

ency across disclosers. Where data or information is available

at negligible effort, our materiality assessment is influenced by

standard setters transparency objectives. and we may therefore

report slightly broader than strictly mandated by ESRS. Practices

on disclosure levels are expected to develop and align over the

coming years when the first iterations of ESRS reporting are di-

gested. Our disclosure practices are likely to be impacted by these

developments.

Impact, risk & opportunities management (continued)

50

SOCIAL

Social

How we create value

As a leading, global provider of workplace and

facility services, our ‘product’ is our people.

With over 325,000 employees worldwide, and

assuming each has ve family members, we impact

around two million people daily. This brings both

responsibility and opportunities.

A large portion of our workforce consists of

individuals from underrepresented groups,

including those from disadvantaged backgrounds,

displaced persons, and people with disabilities. By

oering roles at ISS, we provide opportunities they

might not nd elsewhere, creating a positive ripple

eect on families and communities.

Our focus is on safe, inclusive workplaces where

everyone is respected, fairly compensated, and has

opportunities for social mobility. At the same time,

we collaborate with our customers to support their

social eorts.

Our social ambitions provide purpose for

everyone, and our social prole is a unique

market dierentiator.

Striving for becoming the Leading Frontline

Employer embodies our approach to continuing

and enhancing our positive people impact and

protecting against potential negative impact.

In this section

ESRS S1 – Own workforce 52

Reporting principles for Social 62

ESRS S2 – Workers in the value chain 64

ESRS S4 – Consumers and end-users 66

For Basis of preparation related to the standards

above, see p. 42.

Highlighted areas

51

SOCIAL

ESRS S1

Own workforce

Impact, risk & opportunities management

S1-1

Our people policies

We are a people business and our most critical resource is our

placemakers. Our approach and practices towards our placemak-

ers have the ability to positively or negatively impact their lives and

we are committed to providing a safe and inclusive environment.

Policies

Our industry and business characteristics makes our people

impact the most material of our sustainability impacts, which

reflects directly in our people policy framework that moves from

higher level commitments and principles in our Code of Con-

duct to detailed policies and principles aimed more specifically

at our material impact areas with our Global People Standards

focused towards working conditions and equal treatment, our

ISS Group HSEQ Policy focused towards occupational health

& safety and our ISS Diversity, Inclusion & Belonging Policy

focused on equal opportunity.

Our fundamental promises to and requirements for our place-

makers are anchored in our Code of Conduct. It is available in

22 languages and sets requirements to the personal conduct

of all placemakers and provides fundamental principles that we

will abide by in our people practices including commitments

on upholding the United Nations Declaration of Human Rights,

the United Nations Guiding Principles on Business and Human

Rights, the ten Principles of the UN Global Compact and the

Core Conventions of the International Labour Organisation.

It directly addresses child labour, forced labour and trafficked

labour. Our Code of Conduct is supported by several policies

most notably our Global People Standards, our Diversity, Inclu-

sion & Belonging Policy and our Group HSEQ Policy.

All placemakers are required to take mandatory Code of

Conduct training to ensure that the basic principles are known

and understood.

The Global People Standards provide a systematic and con-

sistent approach to managing our people and others providing

services under our direction and covers themes within human

rights, labour practices, health and safety, legal compliance and

supply chain management.

Examples of specific topics covered are recruitment, promotion

and termination, discrimination, diversity & inclusion, apprais-

als, learning & development, employee relations, health, safety

& working environment, remuneration, working hours, protec-

tion of families with children and the right to privacy.

In 2024, we did a major update to our Global People Standards

particularly in regard to our living wage commitment and living

wage benchmarks as well as our commitment to upholding and

promoting human rights in all aspects of our operations.

The Diversity, Inclusion & Belonging Policy provides a

common global framework and governance to support our

commitment to a global diversity, inclusion & belonging agenda

in order to promote and drive a culture that actively values

diversity and inclusion at all levels of the organisation and that

provides an environment of equal opportunity.

The Group HSEQ Policy provides our commitment and ap-

proach towards systematically improving our health and safety,

environment and quality practices across the organisation,

e.g. through engaging with employees and suppliers (includ-

ing sub-suppliers). It is supported by our HSEQ Management

System Manual which is aligned to ISO 9001, 14001 and 45001

and delivered through global minimum management and

operational standards.

Engagement

We engage with our placemakers on a daily basis as part of our

service performance and management activities, including on

material matters in regard to health & safety, working conditions

and equal opportunities. As a principle in our Global People

Standards employee appraisals are conducted at least annually

for all placemakers and we actively support and promote indirect

engagement through labour organisations or workplace rep-

resentation whether established as a matter of law or not.

Friction is a natural consequence of people interaction and we

have thousands of episodes each year that are managed and

resolved and remedied as a natural part of our management

activities. Any episode or incidents that cannot be resolved

through ordinary management channels can be raised through

our Speak Up system, see G1-1, p. 81.

Alignment to policy commitments

Our policies in regard to our placemakers are aligned with our

human rights policy commitments, including the UN Guiding

Principles on Business and Human Rights.

Our Code of Conduct and Global People Standards prohibit

discrimination and harassment including discrimination based

on cultural background and ethnicity, race, age, gender, gender

identity, disability, sexual orientation, religious beliefs, language

and education or other characteristics such as professional

skills, working style, location and life experiences. Further, our

Global People Standards prescribe equal opportunities as a

principle to be respected in regard to recruitment, compensa-

tion, access to training, promotion, termination, and retirement.

We have in our Diversity, Inclusion & Belonging Policy com-

mitted to promoting and driving a culture that actively values

diversity and inclusion and to achieve and maintain a workforce

that broadly reflects the local communities in which we operate.

Group policies

Our policies mentioned in S1-1 are available at our

corporate website (www.issworld.com) except for our

Global People Standards. For internal stakeholders the

policies, manuals and standards are available in our

internal management system, Policy Hub.

Non-employees

The composition of our workforce is clearly affected by our stra-

tegic decision to self-deliver our services. We want to employ

our workforce rather than rely on subcontractors. In case of

employee absence we will strive to re-shuffle resources or tasks

as this is often the most cost effective solution, which – as a low

margin operator – we constantly need to keep front and center.

We do however rely on temp workers through temp agencies

or similar when necessary. When within our instruction au-

thority temp workers enjoy the same protection and rights as

our own employees in terms of working environment, whereas

individual and collective workers’ rights are a matter for the

temp agency or similar to secure, which we require as part of

our contractual arrangements.

52

SOCIAL

Impact, risk & opportunities management (continued)

S1-2

Engaging with our people and

employee representatives

about impacts

Our day-to-day interaction with our placemakers and their direct

managers is our most important engagement activity. It takes

place as an integrated part of our management activities in

connection with task and work assignment e.g. daily Team Board

talks, coffee breaks, unplanned meetings etc. that allows for im-

mediate feedback and swift calibration. It is supported by formal

engagement activities such as annual appraisals and engage-

ment activities prescribed by applicable statutory frameworks.

Regular town hall meetings (virtual and physical) and engagement

surveys offer a direct engagement link between senior managers

at local, country, regional and global level and placemakers.

MyVoice survey

Our ongoing rollout of an employee app (MyISS) for engage-

ment and two-way communication for all our placemakers

has been joined in 2024 by the launch of the MyVoice Global

Survey, the widest ever employee engagement survey run by

ISS. The survey, which is now part of our annual engagement

calendar, will be further augmented in 2025 with the introduc-

tion of pulse check-ins and lifecycle surveys to gather feedback

at key employee lifecycle moments (e.g. onboarding, change of

role, prior to exit, etc.).

54% of invited placemakers responded in our employee

engagement survey. A satisfactory participation rate for a first

installment. In parallel we conducted our voluntary diversity

survey – Diversity Census, see S1-4.

Employee representatives

As one of the largest private employers in the world we engage

with employee representatives across the world. We respect the

right to organise as firmly anchored in our Code of Conduct and

believe that employee representation is a critical factor for ensur-

ing a “just transition” and advancing human and workers’ rights.

Engagement with employee representatives takes place at dif-

ferent levels of the organisation from site level to board level. It

is subject to norms and practices of our operating jurisdictions

and comply with legal frameworks applicable to our country

operations.

At Group executive level, we engage with the European Works

Council in at least quarterly meetings. The European Works

Council consists of elected employee representatives across

countries in the European Economic Area (EEA) where we have

operations representing approximately 27% of our placemak-

ers. At least once a year a physical meeting is hosted for the

European Works Council at our headquarter in Copenhagen or

Warsaw, which allows for formal and informal engagement and

networking between senior executives and employee repre-

sentatives.

Our Group Chief People & Technology Officer is the formal

owner of the relationship with the European Works Council as

well as the owner of the relationship with UNI Global Union

with whom we have enjoyed a positive relationship since 2003

under a Global Framework Agreement with the intention to

jointly further and support worker and union rights.

Further, in accordance with Danish law three employee elected

representatives are members of the Board of Directors of ISS

A/S – the ultimate governing body of the Group.

Employee Resource Groups (ERGs)

Our diversity, inclusion and belonging agenda is owned by a

dedicated function, Group Diversity, Inclusion & Belonging,

within our People & Culture function. We have established Em-

ployee Resource Groups across the five diversity, inclusion and

belonging themes most important and relevant for ISS: Genera-

tion and Age; Pride; Gender Balance, Abilities and Cultures; and

Race and Ethnicity. They are run by voluntary members of our

workforce and are sponsored by at least one member of our

Executive Group Management (EGM), which ensures that the

views of these particular groups are understood and heard.

Safety survey

Impacts in regard to occupational health & safety are the

operational responsibility of our Global Health & Safety function

organised within our operations function headed by our Group

Chief People & Technology Officer. Engagement activities in

regard to health & safety aspects are managed by our Global

Health & Safety function and often integrated into or coordinat-

ed with other people engagement activities. For example, our

2024 people engagement survey conducted through MyVoice

includes health & safety aspects.

In 2024, we conducted our first annual Global Safety Culture

survey which received over 70,000 responses from placemak-

ers. The feedback from the survey has informed our new HSE

strategy that will develop our safety culture over the next 3

years. This will be an ongoing annual survey to track progress

and improvement in our safety culture.

S1-3

Processes to remediate negative

impacts and channels for our

people to raise concerns

As a general principle we aim to resolve issues and concerns at

the lowest level of the organisation by ensuring continuous dia-

logue between placemakers and management at relevant levels.

This principle is firmly prescribed in our Global People Standards.

We acknowledge that certain impacts or concerns may not be

addressed or resolved appropriately at a lower organisational

level and our Code of Conduct therefore formally codifies access

to the Head of People & Culture, the Head of Legal and the CFO

in each of our operating countries for raising concerns.

Speak Up

In addition, we have for years made available a Speak Up chan-

nel for our placemakers as well as business partners and other

stakeholders. Reports can be made anonymously or non-anon-

ymously by phone or electronic form to an independent

third-party or personally to our Head of Group Internal Audit.

For concerns and issues raised via our Speak Up channels we

have adopted firm principles in our Speak Up Policy (available

in 26 languages) for the handling and provision of remedy

including feedback to the reporter. This also includes a firm “no

retaliation” principle. Issues and concerns raised via our Speak

Up channels are monitored through a dedicated function

within our Group Internal Audit and addressed in our Business

Integrity Committee. Reporting is regularly provided to the

Audit & Risk Committee. We track the volume and categories

of concerns and issues raised via our Speak Up channels as a

measure for the trust in and effectiveness hereof.

Employee matters relating to employment terms and local

workplace matters are primarily intended to be addressed and

resolved through ordinary grievance mechanisms, but can be

raised through our Speak Up channels if the reporter is uncom-

fortable using our ordinary grievance mechanisms.

Our Speak Up Policy refers to the EU external reporting chan-

nels available in countries for any matters that reporters are

not comfortable reporting through ISS’s available grievance

mechanisms. We are not aware of any reports to any national

authority designated to receive whistleblowing reports, includ-

ing National Contact Points, in regard to our operations and

practices having been made during 2024.

Our ordinary grievance mechanisms are supported by our Escala-

tion Policy, which ensures that serious events across the organisa-

tion are ultimately escalated to the EGM level. Incidents covered

by the scope of our Code of Conduct and Speak Up Policy are also

covered by our Escalation Policy. When incidents or information

within the scope of the Speak Up Policy is escalated outside our

Speak Up reporting channel, it will manually be recorded within

our Speak Up system.

For further details on our Speak Up Policy and channel and our

Escalation Policy please refer to G1-1, p. 81.

53

SOCIAL

Impact, risk & opportunities management (continued)

S1-4

Actions and approaches to

managing IRO and effectiveness

of those actions

It is a fundamental characteristic of the facility services industry

that our service performance to a very large degree does not

rely on high pre-existing skill levels of our placemakers. A positive

service attitude is more important than pre-existing skills. We are

also dependent on highly skilled resources for example within

technical and food services, but the majority of our positions are

attractive to relatively unskilled people.

On average, unskilled persons belong to more vulnerable

groups of people often at the edge of labour markets. This

means that our business activities have the potential to

positively impact and influence the lives of persons that can

have difficulty finding a foothold in labour markets and offer

opportunities for progression and prosperity for the benefit of

themselves, their families and societies in general.

But it also means that our most important resource – our people

– are at greater risk of being exploited with the therefrom follow-

ing negative consequences. Low barriers of entry in terms of skill

levels also means that being replaced is relatively easier.

As part of our ordinary management processes at executive,

functional and country level we will consider and address the

approach and actions directed towards our material topics.

Health & safety

While from a holistic perspective our facility services are not in-

herently high-risk activities, we operate in public and customer

environments that can be hazardous to the health and safety

of our placemakers. Tragically, serious harm and even fatalities

unfortunately do happen.

While this is always tragic no matter the context, it resonates

stronger with us because our workforce in general may be less

robust or daring to speak up through no fault of theirs.

Health & safety at ISS is often referred to as “priority zero”. It

comes before anything else and we have for many years been

adamant on strengthening our safety culture. We will not ac-

cept that performing job duties may harm our placemakers.

Our approach to health & safety is anchored in our Group

HSEQ Policy that defines our vision and key actions for en-

hancing our safety culture. Conducting our first Global Health

Culture survey in 2024 followed by focus groups across a broad

spectrum of placemakers around the world allowed us to fully

understand our safety culture and to define a baseline and a

safety culture improvement plan that will commence in 2025,

including launch of a behavioral safety program unique to ISS.

At the core of our actions is dedicated specialist Health &

Safety resources at Group and local level. They are the catalysts

responsible for bringing our safety agenda to life and plan and

execute actions within:

1) Driving awareness

2) Continuous improvement

3) Monitoring of performance

4) Engagement with stakeholders

Our key actions for driving awareness is mandatory and vol-

untary safety training programs for all placemakers primarily

through our e-learning platform MyLearning and global aware-

ness campaigns such as our Global Safety Week Campaign.

Our key actions for driving continuous improvement rests on

strong due diligence processes detailed in the Group HSEQ

Management Manual and supporting standards. Simple in

its essence, our standardised risk registers down to site level

compiles knowledge of hazards, risks, and controls that informs

our risk assessments and allows us to detail specific proce-

dures for more hazardous work environments. Standardised

risk registers are continuously updated by feedback loops and

lessons learned from root cause analysis of incidents. In 2024,

we refreshed and simplified 20 management standards and 51

operational standards which together with any local legal re-

quirements define the minimum risk control requirements that

are applied in all countries. Our Group Health & Safety team

runs a global assurance program across country management

health & safety systems, procedures and sites and custom-

ers’ sites and requirements to ensure compliance with Global

standard and our ISO14001, 9001 and 45001 accreditations.

Our key actions for monitoring performance is our HSEQ

management system, which is globally certified under the lat-

est ISO standards 45001 for occupational health & safety and

14001 for environmental management systems. The systems

were recertified for a second four-year period in May 2022

by the global certification body, Det Norske Veritas (DNV). In

2024, we passed the latest surveillance audit with no major

non-conformities. Health & safety incidents are tracked in our

group-wide health & safety system “VelocityEHS” in accord-

ance with the requirements of our Group HSE Data Reporting

Manual.

Our key actions for engagement with stakeholders over and

above the awareness activities described above includes Team

Board sessions, mandatory meeting safety moments, reg-

ular Safety Walks at all key account sites, safety committees

established under various legal frameworks and dialogue with

employee representative organisations such as the European

Works Council.

LTIF (Lost Time Injury Frequency) is one of our major non-finan-

cial KPIs and has been so for many years. We track LTIF as one

of the measures of effectiveness of our health & safety actions

and LTIF performance has been a component within our variable

remuneration for several years. In addition, the Health & Safety

function tracks a number of operational or supporting KPIs includ-

ing those specified under S1-14.

Key controls relating to our Health & Safety operations are

included within the scope of our internal baseline audit pro-

gramme conducted by Group Internal Audit.

Working conditions

The facility services industry is fragmented and competitive with

low barriers of entry. There is a constant push from customers

for efficiency and price optimisation and from investors for

attractive return on their investments. We are a business and

we need to yield financial benefits that allow us to meet these

expectations and requirements. This affects our possibilities for

driving positive impact for our placemakers.

At the same time we are a business strongly anchored in our

values. They define parameters and red lines that no business

rational can trump. This limits and mitigates our potential nega-

tive impacts on our placemakers.

Within this frame we approach working conditions by provid-

ing a strong foundation of minimum requirements prescribed

within our Code of Conduct and our Global People Standards,

combined with initiatives and actions aimed at providing

increased benefit.

Our People & Culture function at Group level and in countries

is overall responsible for our people agenda and for our ap-

proach to working conditions:

1) Setting and driving minimum requirements

2) Defining and executing actions and initiatives

3) Engaging with stakeholders

Our minimum requirements or basic promises to our place-

makers are only effective and relevant if they are known by our

placemakers. Our mandatory training programme requires

all placemakers to be trained in our Code of Conduct, which

ensures awareness of our minimum requirements in the Code

of Conduct and our Global People Standards.

Our internal baseline audit programme conducted by Group

Internal Audit provides assurance in regard to compliance with

these training requirements as well as on other aspects of

working conditions.

54

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Impact, risk & opportunities management (continued)

The minimum requirements in our Global People Standards

address working condition areas as follows:

1) Secure employment: To the extent possible provide reason-

able advance notice and reasons for termination

2) Working time: Respect national working hour regulation or

relevant international standards

3) Adequate wages: Pay compensation that meets or exceeds

the higher of legal minimums and collective agreements

4) Social dialogue: Continuous dialogue with our placemakers,

so that conflicts are resolved at the lowest level possible, as

soon as possible

5) Freedom of association: Support alternative forms of inde-

pendent and free employee representation in case of restric-

tion or prohibition of freedom of association under law

6) Collective bargaining: Engage in collective bargaining with

legally recognised employee representative organisations

7) Work-life balance: Rights to protect families before and after

child birth

8) Health & safety: Ensure that placemakers have the skills,

knowledge, and resources necessary to maintain a safe

and healthy work environment, one in which they can raise

safety concerns without repercussions

Regularly we encounter difficult balancing exercises when

principles meet reality. Working hours is a good example of

the dilemma that we sometimes face. For good reasons and in

order to protect workers against exploitation many jurisdictions

prescribe a maximum number of hours that can be worked over

a period of time. However, the minimum wages paid for working

up to the legal maximum in some of these jurisdictions does not

provide the necessary financial means to cover more than the

basic needs for a family. We therefore from time to time receive

requests from placemakers to work additional hours.

This dilemma illustrates the need for moving pay levels in our

industry towards a living wage level, which is exactly one of our

current key social initiatives. We have pledged to work together

with our stakeholders to move pay levels in our industry to liv-

ing wage levels and detailed our ambition as part of our Global

People Standards. Our initial activities have centered around

establishing credible living wage benchmarks for each local

market in order to focus our attention on the markets where

current pay levels are below living wage levels thereby driving

maximum positive impact. We now have a good understanding

of the target markets and have run a pilot case in China and

initiated a partner project with Uni Global Union in Indonesia to

increase salaries and create job opportunities for underrepre-

sented groups in the facility services industry.

Our key challenge around living wages is that – as a low margin

business – we cannot absorb the immediate cost impact of

moving our placemakers fully to living wage levels. We there-

fore rely on our partners and customers to co-fund the activi-

ties, which in a world of endless priorities and limited resources

and bandwidth is not straight forward. Our Living Wage pledge

remains a key action for the coming years to drive positive

impact for our workforce.

We drive numerous actions in our local operations aimed at

improving working conditions in ways that are most relevant to

each market.

1) Supporting mental and emotional wellbeing via ISS4U in

India, a workplace wellness programme offering confiden-

tial support to address personal, family, and work-related

challenges that impact health, well-being, and performance.

This initiative, fully complementary for all frontline employees

in the country.

2) In 2024, we partnered with Uni Global Union to deliver a

social sustainability project, executed over 24 months in

Indonesia. The project aims to build a sustainable and con-

structive platform for social dialogue with the wider cleaning

industry – focusing on educating and influencing custom-

ers to promote a wider understanding of the meaning of

minimum versus living wage. The project also aims to create

more job opportunities for women and individuals with disa-

bilities in the Greater Jakarta area.

Strong labour unions are critical in our industry and we value

the relationships we have built over decades with local, regional

and global unions and labour organisations. We actively en-

courage and support unionisation and while we believe that we

generally are open and receptive to input, critique and opinions

from our placemakers, we acknowledge that there can be

issues or personal circumstances that can be difficult to raise

directly or that are better heard when spoken in “one voice”.

Engagement with unions in local markets follows local customs

and practices. Our engagement with the European Works

Council and the UNI Global Union is described above.

Directly connecting and engaging with our placemakers out-

side our normal management routines is difficult to orchestrate

across the geographical span of our operations. Our roll out of

the MyVoice programme addresses these challenges and as

technological developments has made smart phones available

and accessible across the globe it allows us to tap into its con-

nectivity potential for engaging directly with all our placemak-

ers. We have during 2024 reached full coverage of our MyVoice

programme to the entirety of our placemakers with the two

most important engagement points being:

1) Employee engagement survey

2) Our diversity survey Diversity Census

Our continued dialogue with our placemakers and labour un-

ions and employee organisations in combination with availabil-

ity of channels for raising concerns locally as well as the Speak

Up system is the most important markers for the effectiveness

of our overall approach in regard to working conditions.

We make thousands of mistakes each year, including mistakes

relating to working conditions. We rectify our mistakes and

continuously improve our processes and structures, but we

will continue to make mistakes despite our strongest efforts to

avoid them.

Equal treatment and opportunities for all

As with working conditions explained above our approach to

equal treatment and opportunities for all is anchored around a

set of red lines following from our value-based principles that

define minimum behaviours and requirements that mitigate

negative impacts combined with behaviours and actions aimed

at driving positive impact.

Our People & Culture function at Group level and in countries

is overall responsible for our people agenda with a dedicated

sub-function, Group Diversity, Inclusion & Belonging, responsi-

ble for our diversity, inclusion and belonging:

1) Setting and driving minimum requirements

2) Defining and executing actions and initiatives

3) Engaging with stakeholders

Ensuring equal treatment and opportunities for all is part of

our people agenda and rests on the same foundation for min-

imum requirements as our other people related topics, includ-

ing our mandatory training program for our Code of Conduct.

Our Global People Standards include minimum requirements

that address equal treatment and opportunity areas as follows:

1) Gender equality and equal pay: Remuneration policies

based on a principle of equal pay for equal work and equal

working conditions regardless of gender

2) Training and skills development: Offer training opportunities

for development of skills that enable growth and pursuance

of career opportunities

3) Persons with disabilities: Include abilities as part of our

diversity, inclusion and belonging approach and provide

physically accessible workplaces

4) Protection against violence and harassment: Provide work

environments free from harassment and establish docu-

mented process for cases of alleged harassment or abuse

55

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Impact, risk & opportunities management (continued)

5) Diversity: Embrace and encourage diversity and inclusion

in their broadest terms, including cultural background and

ethnicity, race, age, gender, gender identity, ability, sexual

orientation, religious beliefs, language, and education.

We actively promote and drive diversity, inclusion and belong-

ing across the organisation with dedicated resources and

activities. At its core, our diversity, inclusion and belonging

agenda targets discriminatory practices and behaviour and is

a conscious effort to avoid negative impact we might other-

wise have on our placemakers. It also supports our continued

access to talent and people resources by establishing us as

a responsible employer that believe and action our Employer

Value Proposition of providing a Place To Be You:

1) Be who you are

2) Become what you want

3) Be part of something bigger

Knowing and understanding the differences and diversities of

our workforce is paramount. With a workforce as large as ours

we have employee groups representing numerous diversity as-

pects. We recognise that it can be sensitive or even dangerous

to address and speak up on personal matters of diversity just

as there are strong privacy interests to be considered. As an

employer it has to be carefully considered if even asking on a

voluntary and anonymous basis is appropriate and justified. We

believe that asking in the right way in itself sends an inclusive

signal and considering the strong privacy safeguards we have

established, we have decided to ask in order for us to listen.

Launched for the first time in 2024 Diversity Census was run in

parallel with our Employee Engagement Survey. On a completely

voluntary and anonymous basis our employees were offered

the possibility to provide certain diversity and inclusion related

demographic information about themselves on an anonymous

basis. We received more than 10,000 responses across 25

countries, which will provide insights into diversity and inclusion

areas where additional focus and support is needed. We are

still analysing the data and will together with country organisa-

tions review the results and feedback to shape global and local

diversity, inclusion and belonging initiatives and to build broader

participation in the coming years.

We will use the survey responses to shape global and local

diversity, inclusion and belonging initiatives.

Our learning & development activities provide a robust foun-

dation for avoiding negative impact by combining mandatory

training activities on areas such as health & safety, Code of

Conduct, compliance areas and service line practices with

voluntary skills development programmes. With our Code of

Conduct training we specifically address discrimination and

harassment themes.

In addition, to mandatory training requirements our learning &

development agenda focuses on three pillars:

• Culture & Leadership Capabilities: Ensuring our people

understand how they can be successful in the organisation

and develop their careers with us. We put special emphasis

on the development of leadership and management skills of

our people leaders and train them in building a supportive

working environment.

• Technical Capabilities: Specialised training tracks for spe-

cific lines of service and specialisations to equip our people

with knowledge and skills enabling them to perform their

jobs in line with quality and health & safety standards.

• Personal Effectiveness: Providing our people with training

and tools that help them fulfill their personal aspirations.

These programmes include personal development (commu-

nication skills, personal well-being, fundamental business

skills) and digital upskilling.

Our dedicated Placemakers Path programme puts together all

development, recognition and training activities targeted at our

service placemakers into a comprehensive employee experi-

ence journey.

Actions that drive positive impact

Two years ago we pledged to provide 100,000 recognised qualifi-

cations to placemakers and their family members by 2025. Impor-

tantly we define recognised qualifications as skills development

that is broadly usable within and outside ISS; hence a strong social

mobility enabler. As of 2024 we had provided 73,000 placemak-

ers and their families with a Recognised Qualification under our

pledge – well on the way to reach 100,000 in 2025. Together with

partners, we aim to add an additional 250,000 by 2030 taking the

total to 350,000.

Our catalogue of Recognised Qualifications span from general

life skills to advanced leadership skills (MBAs) and are conducted

within the ISS learning environment or through external partners.

Taking action on diversity and inclusion beyond policy state-

ments requires awareness and knowledge of the particular

circumstances and characteristics of our diverse workforce. We

have identified the five key diversity dimensions for our work-

force as Generation & Age, Pride, Gender Balance, Abilities &

Cultures and Race & Ethnicity. In 2022 we established global

Employee Resource Groups (ERGs) for each dimension as fo-

rums for sharing and addressing topics and issues of particular

relevance to each of them. This serves as strong platforms for

creating awareness and sharing knowledge across. Each ERG

is sponsored by at least one Executive Group Management

(EGM) member and operated by volunteer employees who host

regular global sessions attended by all types of employees from

placemakers to executives. In turn, country organisations mirror

or adapt local employee resource groups to cascade global

messaging and address local context. As examples, in 2024 our

headquarter locations in Warsaw and Copenhagen established

umbrella ERGs under the headline of “Allyship” covering all five

diversity dimensions.

Examples of the activities and initiatives undertaken within our

ERGs in 2024 are provided to the right.

ERG activities in 2024

Generations & Age focused on increasing gen-

erational inclusion and challenging age-related

biases and stereotypes. A comprehensive guide

“Inclusive Employment of Older Persons”, explain-

ing the merits of senior employees in the context

of recruitment challenges arising due to aging

populations are developed. The guide covers

e.g. inclusive recruitment, promotion, learning &

development and onboarding.

The Pride continued to support pride events

during pride month in June Also delivered pride

initiatives, such as LGBT+ Diamond Awards Gala

and Crowns of Equality in Poland, pride event with a

Danish customer and celebration of the Internation-

al Day Against Homophobia, Biphobia, Interphobia

and Transphobia. Further, workplace policies have

been reviewed globally for pride relevant contents.

Gender Balance continued to raise awareness

through activities including an International

Women’s Day webinar in March and development

of a complete Toolkit supporting the Interna-

tional Men’s Day webinar in November. The ERG

Co-Chairs and Council Members set up a “Reverse

Coaching” series for EGM members leading to

individual commitments to support female talent

promotion and development in ISS.

Abilities contributed greatly to the annual Virtual

Social Sustainability Conference, which was large-

ly dedicated to neurodivergence and inclusive

workplaces, delivered on 3rd December 2024 –

the Day of Persons with Disabilities.

Cultures, Race & Ethnicities delivered

monthly sharing sessions on topics celebrating

cultural diversities, working in multi-national and

-cul-

tural teams, religion and cultural practices, migration

stories, etc. Also deliver

ed a webinar on the occasion

of the World Day for Cultural Diversity in May.

56

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Impact, risk & opportunities management (continued)

Historically and up to present day domestic responsibilities

have mainly been associated with females as evidenced by the

need for one of the SDG targets (Target 5.4) on gender equality

to center around domestic activities. Household activities such

as cleaning, cooking, laundry and child-care is more often

undertaken by females, while providing financially for the

household is either shared responsibilities or skewed towards

the male side. The nature of several of the services that we

provide resemble household activities and we therefore play an

important role in providing work opportunities to and empow-

ering females. From our cleaning services began in Copenha-

gen, Denmark in the 1930s we have provided millions of female

placemakers with work opportunities across our service port-

folio often leveraging household skills. That has and continues

to positively impact gender equality and female empowerment

across our countries of operation.

Our gender distribution across our global workforce is largely

50/50 with an overweight of females in our workforce for most

countries. In certain of our APAC countries we however have very

people-intensive security operations that for cultural reasons re-

main very male dominated and therefore tip our global workforce

from otherwise being skewed towards females to being balanced.

In management and leadership positions we acknowledge

and recognise that female role models are important and that

diversity in competencies and perspectives are value-adding.

For that reason, we have set a target of reaching 40% gender

balance in our corporate management by 2026 (please refer to

S1-5). It is supported by positive actions defined in our Diver-

sity, Inclusion and Belonging Policy such as the identifications

of female short list candidates for vacant corporate leadership

positions.

We truly believe that a diverse workforce is a value-driver and

that our continued efforts to drive a strong diversity, inclusion

and belonging agenda is not only impactful on the lives of the

people in our workforce, but also drives positive business results.

Other work-related rights

Forced labour and child labour is known to occur also within our

broader industry and geographic footprint. Child labour and

forced labour is generally associated with activities hidden away

from the public eye. Our business model is the opposite. We

drive value by having engaged service personnel that interact

with people and places to create great service moments. We

acknowledge the broader risk around child labour and forced

labour. We are committed to upholding and promoting human

rights and have taken strong policy positions in our Code of

Conduct and Global People Standards against child labour and

forced labour as well as precautionary measures against it such

as pre-employment checks. Our business model, however, is

focused on environments, markets and customers with different

characteristics and we therefore do not consider child labour

and forced labour as material risks to our workforce.

In terms of other work-related rights we process, store and man-

age personal information on our workforce – some of it of a very

sensitive nature. It is imperative that our personal data manage-

ment practices meet the legal requirements of the jurisdictions

in which we operate and honor the trust of our placemakers.

We manage personal information across three defense lines.

Our global IT security team focuses on preventing unauthor-

ised access from external parties. Our Legal data privacy team

establishes internal protocols for how to process personal in-

formation and our P&C organisation establishes and operates

our people processes.

In regard to our general information security approach our

work is supported by policies and standards such as our Global

Information Security Policy and Global Information Security

Standard. Our people processes are governed by our Global

Standard on P&C Processes, which is specifically aimed at the

information security aspects of our people processes. Our legal

data protection framework is set within our Data Protection

Policy and our Data Ethics Policy.

We have not set specific targets for performance on informa-

tion security in regard to our workforce.

57

SOCIAL

Metrics & targets

S1-5

Targets related to managing IRO

We have set three global targets relating to managing our

material people impacts as well as continuous targets relating

to health & safety. Our material IROs reflect their inherent

position and our structured work over many years has provided

mitigation that leaves target setting for many aspects of our

IROs obsolete or less relevant.

Living wage

Our Living Wage pledge follows directly from the policy ob-

jective in our Code of Conduct to support introducing living

wages. It captures all positions paid below living wage levels

and therefore imply an aspirational target of 100% of job

positions across the organisation being paid at living wage

level. It is not time-bound due to the strong dependencies on

other stakeholders, particularly our customers, suppliers and

policy makers. As an intermediary target that was met in 2023

we partnered with an independent consultant to develop living

wage benchmarks across our countries of operation.

In 2024, we have utilised the benchmarks to conduct a living

wage assessment in 19 of our countries. Over time we will work

towards setting annual targets for the number of job positions

being moved into living wage level.

Recognised qualications

Upskilling our workforce and their families is an opportunity

for us to drive positive people impact over and above what

automatically follows from our ordinary business operations.

We have pledged to provide 100,000 placemakers and their

family members with a recognised qualification by 2025 from

a 2022 starting point. For 2024 our target is to provide 26,000

individuals with a recognised qualification taking it to a target

total of 55,000.

In 2024 we reached 73,000 recognised qualifications thereby

outperforming our 2024 target that we now aim to increase by

an additional 250,000 by 2030. Recognised qualifications are

programs or training activities that meet certain pre-defined

criteria and that strengthen professional, industry or personal

development. Progress is recorded and tracked within our

Learning & Development system “MyLearning”.

Gender balance

Gender diversity is a clear policy objective in our Diversity, Inclu-

sion & Belonging Policy and establishes a global 2025 gender

diversity target of 40% across our corporate leadership teams

at Group and country level.

Our 2024 progress does not support a realistic trajectory

towards reaching our target. It has therefore been decided

to move our target year from 2025 to 2026 and to introduce

underlying internal pipeline metrics.

Fatalities and LTIF

Fatalities and serious injuries related to our work activities are

never acceptable and we are therefore careful around setting

specific targets in this regard, since it could be considered as

acceptance of some level of unsafe practices. On the other

hand, we recognise that lack of targets may not instil the right

behavioural motivation for driving improvements. With that

perspective we generally consider LTIF levels above 2.5 for the

Group as “high” while striving for zero fatalities undoubtedly

remains our goal.

Global targets are approved at Executive Group Management

level. Additional targets addressing people impacts are set at

functional or country level considering the specific aspects and

context of the target.

S1-6

Characteristics of our employees

Our strategic decision to primarily self-deliver our services im-

plies that we employ a large workforce that includes hundreds

of nationalities and extends across all diversity aspects.

Number of employees by gender

End of period 2024

(Headcount) 2024 %

Male 168,336 52%

Female 158,147 48%

Other - 0%

Not reported - 0%

Total 326,483 100%

The gender composition across the Group is close to 50/50, but

varies across countries affected by our mix of service lines and

local tradition.

Number of employees by contract type

End of period 2024

(Number)

Northern

Europe %

Central &

Southern

Europe %

Asia &

Pacific %

Ameri-

cas % Other % Total

Permanent employees 55,726 19% 98,381 34% 105,137 36% 28,376 10% 1,566 1% 289,186

Temporary employees 5,356 19% 7,816 28% 14,528 52% - 0% 73 1% 27,773

Non-guaranteed hours employees 3,960 42% 21 0% 5,543 58% - 0% - 0% 9,524

Part time employees 26,903 39% 28,111 41% 11,510 17% 1,960 3% 33 0% 68,517

Full time employees 38,139 15% 78,107 30% 113,698 44% 26,416 10% 1,606 1% 257,966

On a regional basis the use of part-time employees is a mostly European approach.

Number of employees by contract type

End of period 2024

(Headcount) Male % Female % Total

Number of employees 168,336 52% 158,147 48% 326,483

Permanent employees 151,334 52% 137,852 48% 289,186

Temporary employees 12,880 46% 14,893 54% 27,773

Non-guaranteed

hours employees 4,122 43% 5,402 57% 9,524

Part time employees 16,954 25% 51,563 75% 68,517

Full time employees 151,382 59% 106,584 41% 257,966

We primarily employ people on permanent and full-time basis

in line with our self-delivery model. Non-guaranteed hours

employees are used only to a limited extent and not in all coun-

tries. We have a general skew towards more females working

part-time positions.

58

SOCIAL

Metrics & targets (continued)

Number of employees by country 2024

(Headcount)

End of

period % Average %

Finland 6,755 2% 6,630 2%

Netherlands 2,278 1% 2,259 1%

Norway 7,926 2% 8,248 2%

Sweden 6,339 2% 6,354 2%

Belgium 6,907 2% 6,978 2%

Luxembourg 511 0% 515 0%

Denmark 5,395 2% 5,375 2%

Poland 1,850 1% 1,845 1%

Lithuania 315 0% 293 0%

Ireland 1,819 0% 1,913 0%

United Kingdom 24,947 8% 25,471 8%

Northern Europe 65,042 20% 65,881 20%

Austria 6,714 2% 6,774 2%

Switzerland 14,294 4% 13,005 4%

Spain 30,725 10% 29,649 9%

Italy 1,210 0% 1,176 0%

Türkiye 44,035 14% 43,673 13%

Germany 9,240 3% 9,468 3%

Central & Southern Europe 106,218 33% 103,744 31%

China 7,794 2% 8,259 2%

Singapore 8,348 3% 8,465 3%

Indonesia 42,853 13% 43,610 13%

India 40,319 12% 40,536 12%

Hong Kong 12,690 4% 13,000 4%

Australia 12,047 4% 11,932 4%

New Zealand 1,157 0% 1,135 0%

Asia & Pacific 125,208 38% 126,938 38%

US & CA 5,564 2% 6,101 2%

Mexico 10,462 3% 10,806 3%

Chile 12,350 4% 12,723 4%

Americas 28,376 9% 29,630 9%

Other 1,639 0% 5,346 2%

Total ISS Group 326,483 100% 331,539 100%

The average number includes ISS France until we completed its

divestment in April 2024, which is the main driver of the differ-

ence to the end of period number.

Placemaker/Support staff

End of period 2024

(Headcount) Male % Female % Total

Placemakers 156,212 51% 148,701 49% 304,913

Support sta 12,124 56% 9,446 44% 21,570

Our ability to leverage support staff is a key efficiency parame-

ter. For support staff we have a slightly better gender balance

than for the narrower Corporate leadership team, see S1-9.

Employee turnover

Average

(Headcount) 2024

% of total

workforce

Leavers, resignations,

retirements and deaths 111,633 34%

Leavers and resignations 106,523 32%

For internal management purposes we track employee turno-

ver based on leavers and resignations as these are generally

driven by factors that we can operationally influence. This is

also a KPI we have reported externally for many years.

S1-7

Characteristics of non-employees

in our own workforce

Our workforce predominantly consists of own employees as a

result of our strategic decision to self-deliver our services. We gen-

erally engage with temp agency workers for short-term support

such as holiday cover and other absence cover, event support or

transition cover. Self-employed consultants are generally engaged

only as support staff (“white collar”) as part of our corporate and

management activities, but not to any significant extent.

Number of non-employees

End of period

(Full-time equivalent) 2024 %

Northern Europe 5,157 48%

Central & Southern Europe 3,222 30%

Asia & Pacic 2,014 19%

Americas 285 3%

Other 15 0%

Total 10,693 100%

Non-employees are not a significant share of our workforce

when measured in full-time equivalents, but still play an impor-

tant role in regard to ensuring our continued operations.

S1-8

Collective bargaining

coverage and social dialogue

Collective bargaining and social dialogue is influenced by local

practices and legislation. We adhere to legal requirements of

the

markets in which we operate and actively promote the right

to collective bargaining. Our European Works Council has for

many years

been an important partner for social dialogue and

engagement.

Collective bargaining and social dialogue

1)

Collective bargaining coverage Social dialogue

(Coverage rate)

EEA

countries

Regions

Non-EEA countries only

Workplace

representation

EEA only

0-19% - Central & Southern

Europe; Other

n/a

20-39% - n/a

40-59% - Asia & Pacic n/a

60-79% - Northern Europe;

Americas

n/a

80-100% - n/a

1)

For countries/regions with >50 empl. representing >10% total empl.

56% of our employees across the Group are covered by collec-

tive bargaining agreements with Northern Europe having the

highest coverage ratio across the regions.

59

SOCIAL

Metrics & targets (continued)

S1-9

Diversity metrics

Our target of 60/40 gender diversity across our corporate

leadership (top management) is not yet reached though we

are moving closer. As described in S1-5 we have moved the

target year to 2026. In regard to age distribution there are

local variances across our operating countries with India and

Indonesia each having less than 10% of employees above 50

years of age.

Gender diversity at top management

(Number, %) 2024 %

Male 748 63%

Female 436 37%

Total 1,184 100%

Age distribution

(%) 2024 %

< 30 years 72,219 22%

30-50 years 157,626 48%

> 50 years 96,638 30%

Total 326,483 100%

S1-10

Adequate wages

All employees are paid at least an adequate wage in accord-

ance with applicable minimum wage or collective bargaining

requirements.

S1-12

Persons with disabilities

Legal restrictions and privacy concerns are considered to signif-

icantly impact the accuracy and completeness of reporting.

Persons with disabilities

Disabilities

End of period 2024

% of total

workforce

Total 7,092 2%

S1-13

Training and skills

development metrics

Average performance and development reviews

(Appraisals per headcount) Planned Performed

Male 0.49 0.37

Female 0.54 0.40

Total 0.51 0.39

Training hours

(Number) Total hours

Avg. per

employee

Male 2,170,267 12.6

Female 1,419,014 8.9

Total 3,589,281 10.8

The difference in training hours between males and females

is driven by India that provide above group average training

hours to employees with a significant overweight of male

employees in India. Approx. 18% of training hours are not re-

corded by gender for GDPR reasons. These training hours have

been pro-rata allocated by country and gender based on the

82% training hours recorded by country and gender.

S1-14

Health and safety metrics

Our health and safety management system covers 100% of our

workforce. In 2024, sadly we had one fatality in Spain.

Health & safety

(Number) Employees

Non-

employees

Fatalities 1 -

Total reportable cases (TRC) 3,916 29

Rate of recordable cases 6 1

Occupational illness cases 97 -

Lost work days 41,216 -

Lost-Time-Injury Frequency (LTIF)

(incident frequency) Employees

Employees 3.1

Non-employees 0.5

Contractor employees 0.9

Total 2.9

We have for many years measured and reported LTIF as a metric

for our health & safety performance. Internally we measure

across the categories of employees, non-employees and contrac-

tor employees working under our instruction authority, which

aligns to our health & safety management system coverage.

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SOCIAL

Metrics & targets (continued)

S1-16

Remuneration metrics

(pay gap and remuneration ratio)

Salary levels for our servicing placemakers across our business

are generally aligned to collective bargaining agreements or

statutory minimum wage levels that do not provide gender spe-

cific rates. Our Global People Standards prescribe a remunera-

tion principle of “equal pay for equal work”.

Our CEO pay-ratio (remuneration ratio) is calculated on the

basis of average salary rather than median salary, since we are

not currently able to integrate salary details for all employees

across our operations and people and salary systems. We have

sense checked our approach by calculating the CEO pay-ratio

for our operations in ISS Denmark using both an average and a

median method showing a reasonable correlation. A relatively

high CEO pay-ratio is a natural consequence of the composition

of our workforce across geographies, the difference in purchas-

ing power and a Danish-based headquarter.

Remuneration metrics

(%, number) 2024

Gender pay gap, % (4)%

Remuneration ratio, number 112

S1-17

Incidents, complaints and severe

human rights impacts

Incidents of discrimination, including harassment, cover cases

recorded in local people management systems as well as

incidents filed through our Speak Up channel. Anonymity is

guaranteed when complaints are filed through our Speak Up

channel and we can therefore not always verify whether com-

plaints are also filed and recorded in local people management

systems. The right to anonymity is prioritised over the risk of

double-counting.

We have not recorded any severe human rights incidents

during 2024.

Incidents and complaints reported

(Number) 2024

Discrimination, incl. harassment 82

Complaints received through Speak-Up

Work-related complaints, excl. discrimination & harassment 614

Complaints received through Group Speak-Up

Code of conduct 29

Customer/competitor interaction 5

Data privacy 5

Discrimination including harassment 53

Fraud, bribery, corruption and misappropriation of funds 35

Health, Safety & environment 16

Labour law compliance 52

People & Culture concerns 281

Other 76

Total 552

Severe human rights incidents 0

Fines, penalties and compensation for damages (DKKm)

For work-related incidents 9

For severe human rights violations 0

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SOCIAL

Reporting principles for Social

S1-6: Workforce characteristics

People data is generally recorded and reported from people

and/or payroll systems in countries.

Number of employees are the total number of headcount

full-time and part-time at the end of the reporting period

or averaged over the 12-month reporting period. Full-time

employees are employees who work a minimum of 30 hours

a week for ISS. Number of employees are specified into

placemakers and support staff. Placemakers are employees

that provide services to customers whereas support staff is

management and support functions. Permanent employees

have open-ended employment contracts while temporary

employees have fixed term contracts. Non-guaranteed

hours employees are employees that are not entitled to a

minimum number of work hours.

Breakdown by gender is generally provided in male and

female. We have prepared our consolidation system to allow

our reporting units (countries) to voluntarily report employ-

ees that identify as other than male or female. If necessary

for reporting purposes “other” employees are allocated as

male or female on a pro-rated country basis.

In other reporting categories, e.g. training hours, gender is

not a pre-set recording dimension for data privacy reasons

and gender breakdowns will therefore often be based on

gender distribution assumptions.

The turnover rate measures leavers (involuntary) and

resignations (voluntary) during the reporting period relative

to the average number of employees. As of 2024 it includes

also retirements and deaths.

S1-7: Characteristics of non-employees

Non-employees are self-employed persons (e.g. consultants)

and temporary workers engaged via staffing or temp agen-

cies and normalised to a full-time-equivalent value using a

standard work year of 2,000 hours to provide a comparison

base to our own employees. Where headcount and actual

hours are not recorded, an estimation is provided based on

a spend conversion ratio.

S1-8: Collective bargaining and social dia-

logue

Collective bargaining coverage measures the number of em-

ployees covered by collective bargaining agreements relative

to the total number of employees at the end of the year.

Social dialogue reporting requirements are determined on

the basis of Q3 people reporting. At Q3 and Q4 2024, no

EEA country represented 10% or more of our employees.

S1-9: Diversity indicators

Corporate leadership covers the Board of Directors (the Board),

the Executive Group Management (the EGM), direct reports to

the Board and the EGM, Country Leadership Teams and direct

reports to Country Leadership Team members at the end of

the year. This definition has been used for internal and external

purposes for several years.

S1-10: Adequate wages

Adequate wage ratio measures the number of employees

earning an adequate wage level relative to the total number

of employees. Adequate wage levels are determined coun-

try-by-country in accordance with the principles of ESRS

S1-10.

S1-12: Disabilities

In accordance with ESRS S1-12 persons with disabilities are

defined as persons who have long-term physical, mental,

intellectual or sensory impairments which in interaction with

various barriers may hinder their full and effective participa-

tion in society on an equal basis with others. The metric is

calculated relative to the end of year number of employees.

Privacy regulation including GDPR may hinder or impair the

possibility to collect and store information necessary for

reporting purposes. Further, information is to a large extent

dependent on self-declaration by employees, which is a

personal privacy matter. At ISS we intend to provide safe and

inclusive environments for supporting transparency on dis-

abilities, but fully accept and support that this is a personal

right and decision of each employee.

As a consequence, our reporting on disabilities is associated

with significant uncertainty.

S1-13: Performance reviews

Planned and performed performance reviews cover career

and performance reviews that form part of a formalised ap-

praisal framework mandated by for example Group or local

policies. Metric is calculated relative to the average number

of employees. For 2024 excluding France.

S1-13: Training hours

Training hours includes all training activities for ISS employ-

ees as a result of their employment with ISS that are fully

or partly performed during work hours or fully or partly

paid by ISS. Training can be performed in classrooms (at ISS

premises or externally), on-site, online, at home etc. It also

includes time spent on preparations by participants as well

as time spent on exams or tests. Training hours are record-

ed in learning & development systems or calculated based

on people and participation statistics. Average number of

training hours is calculated relative to our average number

of employees.

S1-14: Health & safety

Fatality means a work-related incident or work-related ill

health leading to the death of an employee, temporary

worker, agency worker and contract personnel and personnel

of contractors delivering our services and working under our

instruction authority.

Recordable work-related accidents cover fatalities, lost-time

injuries, permanent total disabilities, restricted work cases,

medical treatment cases and occupational illness cases (ex-

cept for non-employees and contractor employees). The rate

of recordable work-related accidents is calculated relative

to the total exposure hours and multiplied by 1,000,000.

Total exposure hours for our own employees are recorded

or calculated actual work hours from time and attendance

systems, people management systems and payroll systems.

Total exposure hours for non-employees are calculated by

multiplying the number of non-employees (see S1-7) with a

standard work year of 2,000 hours.

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SOCIAL

Lost Time Injury Frequency (LTIF) is calculated as the

number of work-related injuries or illness that result in work

incapability over and above the day the incident occurred,

relative to total exposure hours and multiplied by 1,000,000.

It is calculated for employees and non-employees combined.

We have reported LTIF for many years as one of our key sus-

tainability metrics that focuses on the more severe spectrum

of work-related accidents.

Lost work days counts the number of calendar days where

an employee is incapable of working as a result of a work-re-

lated accident. Work-days are counted in full days and does

not include the day of the accident or incident and ends with

the last full day of non-work for ISS. We have for many years

internally reported on lost work hours, which follows a sim-

ilar principle, but does not count weekends or unscheduled

work days. Where relevant, conversion from lost work hours

to lost work days is done at a factor of 4.3 hours per day.

Health & safety data is recorded in our dedicated Health &

Safety management system “Velocity”.

S1-16: Gender pay gap

Gender pay gap is calculated as average male hourly remu-

neration minus average female hourly remuneration divided

by average male hourly remuneration times 100. Remu-

neration covers gross remuneration for male and female

employees during the reporting year with hourly male and

female remuneration calculated by applying a standardised

work year of 1,000 and 2,000 hours for average part-time

and full-time employees respectively. Remuneration for em-

ployees not identifying as male or female is either excluded

or proportionally allocated to males and females by relevant

country.

Significant work is being undertaken to prepare for the EU

Pay Transparency Directive taking effect. The reporting obli-

gations under ESRS S1-16 pre-empts the EU Pay Transparen-

cy Directive, which is unhelpful.

S1-16: CEO pay ratio (Remuneration ratio)

The CEO pay ratio is calculated as the ratio between the an-

nual awarded remuneration of the Group CEO to the average

annual remuneration for all employees (less remuneration

for the Group CEO). The average number of employees is

normalised to full-time equivalents by assuming that two

part-time employees equal one full-time employee. We do not

have data available to perform the calculation on a “median”

basis. Our preparations for the EU Pay Transparency Directive

will continue during 2025 and is expected to improve our

ability to utilise median data. The remuneration considered

for the Group CEO (highest-paid employee) is the award-

based amount. This reflects the cash value of remuneration

earned for the year - including base salary, non-monetary

benefits, short-term incentive programmes (STIP). In addition,

this includes the value of long-term incentive programmes

(LTIP) which is estimated as the fair value at 31 December of

the shares to be received in March 2025, when the LTIP pro-

gramme vests. The value is calculated as the actual number of

shares received, if any, in March 2025 multiplied by the share

price at 31 December of the reporting year.

S1-17: Work-related incidents

Work-related incidents of discrimination, including harass-

ment, is recorded in local people management systems, lo-

cal Speak-Up channels or in the Group Speak-Up channel. It

covers incidents of discrimination including on the grounds

of gender, racial or ethnic origin, nationality, religion or

belief, disability, age, sexual orientation.

S1-17: Complaints led through Speak-Up

Covers complaints received through established Speak-Up

channels at Group or locally in regard to working conditions,

equal treatment and opportunities and other work-related

rights as defined in ESRS S1-17. Complaints that relate to

more than one category is recorded under the category con-

sidered most serious and significant.

S1-17: Fines, penalties and compensation for

damages as a result of work-related incidents

and complaints and severe human rights

violations

Includes fines and penalties finally imposed on ISS by

competent regulators for work-related incidents and com-

plaints and severe human rights violations as well as specific

compensation amounts for damages to affected current or

former ISS employees in this regard.

Reporting principles for Social (continued)

63

SOCIAL

ESRS S2

Workers in the value chain

Impact, risk & opportunities management

S2-1

Policies

In our Supplier Code of Conduct and our Supply Chain Policy

we lay down a set of minimum requirements, including on

working conditions and equal treatment, that all suppliers must

adhere to by signing up to ISS Supplier Code of Conduct or by

having in place own policies of at least the same standard as

the ISS Supplier Code of Conduct. It also defines our expecta-

tions and requirements towards suppliers in terms of human

rights emphasising our expectation that suppliers comply with

international standards such as the UN Guiding Principles on

Business and Human Rights.

Human trafficking, forced labour and child labour are explicitly

addressed in our Supplier Code of Conduct and our Supply Chain

Policy and are subject to requirements to establish and maintain

due diligence processes for these severe human rights areas.

In our Supplier Code of Conduct, which is referenced in our

standard terms and conditions, we retain the right to terminate

our business relationship with suppliers that do not comply

with our requirements.

Our Supplier Code of Conduct and our Supply Chain Policy are

both approved by the Executive Group Management (the EGM)

and implemented operationally by our global Procurement

function. Both policies are publicly available.

For incident reports from value chain workers, see S2-2 and

S2-3.

S2-2

Processes for engaging with value

chain workers about impacts

We do not have formalised structures or engagement activities

directly with workers in our supply chain. Rather, we leverage

and rely on the engagement and interaction that our Supply

Chain & Procurement function have with our suppliers to influ-

ence their behavior towards their own workers and value chain

workers and with labour organisation representatives. Our

Speak-Up channels are available to workers in the supply chain

as they are to all of our stakeholders. We have not during 2024

received reports of non-respect of the UN Guiding Principles on

Business and Human Rights, ILO Declaration on Fundamental

Principles and Rights at Work or OECD Guidelines for Multina-

tional Enterprises involving supply chain workers.

It is our firm belief that labour organisations hold a key position

as intermediaries for ensuring open and transparent dialogue

with supply chain workers. They benefit from high trust levels

and aligned interests with supply chain workers within and

across industries and geographies and we are committed

to supporting access to unionisation as evidenced by our

long-standing global relationship with UNI Global Union. Please

refer to ESRS S1 for additional details on our labour organisa-

tion relationships and engagement.

S2-3

Processes to remediate negative

impacts and channels for value

chain workers to raise concerns

Our process for managing and addressing concerns raised by

supply chain workers will follow the principles laid down in our

Speak-Up Policy with the adjustments required from the need

to involve the member of our supply chain in the investiga-

tion and remediation process. The fundamental safeguards

provided by our Speak-Up Policy in regard to “no retaliation”

and confidentiality applies also to concerns raised by supply

chain workers. Through our commitment to the UN Guiding

Principles on Business and Human Rights and our ISS Supplier

Code of Conduct we promote the establishment of suppliers’

own relevant channels through which supply chain workers can

raise concerns with relevant suppliers. For details on our Speak-

Up Policy and process, see ESRS G1.

We have not during 2024 received reports of severe human

rights issues in our supply chain.

We do not have an established framework for providing

support in or to remedial action for negative impacts to

supply chain workers, but we may on an ad-hoc basis offer for

example insights or access to key internal resources as part of

remediation. Ultimately, we retain the right to terminate our

business relationship with suppliers that do not adequately

address appropriate remediation actions.

In 2024, we have not terminated supplier relationships for

violation of the Supplier Code of Conduct or for controversies in

regard to workers or human rights. Through our supply chain

assurance and compliance program we sample audit a small

number of suppliers to assess our supplier’s adherence to our

policies and work with suppliers to close identified gaps.

S2-4

Actions related to IRO and

effectiveness of those actions

We believe that our key contribution towards workers in the

supply chain is achieved by setting a positive example through

our own people practices and by pushing minimum standards

or red lines for supplier behavior that protects against negative

impacts for supply chain workers as well as encouragement

around supplier behavior that can improve and positively im-

pact supply chain worker conditions.

We may indirectly have negative impact on supply chain

workers through the business relationships we maintain with

our suppliers as explained above. Our actions to address these

potential indirect negative impacts are centered around our

supply chain due diligence and assurance practices deployed

through our Procurement function.

Our supply chain policies described above are supported by

a detailed set of internal procurement standards setting out

requirements that our procurement and supplier engagement

process must comply with.

At the core is our risk categorisation of our suppliers. Our risk

categorisation considers the type of goods and services provid-

ed, the environment in which goods and services are delivered

as well as geographical risks and potential customer impact.

From these criteria suppliers are grouped in high, medium

and low risk categories, which determines activities undertak-

en during each supplier lifecycle phase: Vetting, Contracting,

On-boarding, Operations and Off-boarding.

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SOCIAL

Impact, risk & opportunities management (continued)

Regardless of risk category all suppliers are subject to vetting

requirements that include a supplier self-assessment that cover

among others acknowledgment of compliance to our funda-

mental policies, compliance to local law and regulations, and

compliance with human rights, labour law rights and funda-

mental freedom conventions. Self-assessments are reviewed

by a dedicated ISS supplier vetting team that raise potential

concerns with Supply Chain and Procurement professionals lo-

cally or at Group level for decision on remediating action to be

required or rejection. Certain very-low risk supplier categories

such as legal fees, road fees, taxis and utilities are exempted

from this process. Periodic reassessment is performed with

high risk suppliers being reassessed annually. During 2024

approximately 1% of potential new suppliers were rejected due

to lack of compliance with our requirements.

It is a further requirement that all suppliers as part of the contract-

ing phase sign up to the ISS Supplier Code of Conduct.

On-boarding covers training and work permit requirements.

Training requirements distinguish between legally required train-

ing applicable to all suppliers and risk-based training require-

ments that are applicable to medium and high risk supplier cat-

egories. Where service performance by a supplier involves high

risk services that takes place at customer sites, it is mandatory

for the supplier and its personnel to receive training in the health

& safety requirements applicable at the customer site to mitigate

the potential negative health & safety consequences that the

service performance could have to the supply chain workforce.

As part of our operations we conduct supplier audits by ISS

auditors or third-party auditors. Audit requirements are targeted

among a sample number of high-risk suppliers and is influenced

by the type and method of goods and service performance. For

example, independent third-party audits are required in regard

to GDPR and cyber-security for suppliers dealing with confiden-

tial or personal information. In addition, incident management

is an integrated part of all supplier relationships where potential

impacts on supply chain workers are addressed and actioned

with the relevant supplier.

Off-boarding activities are aimed at ensuring continued opera-

tions and proper handling of sensitive or confidential informa-

tion in connection with expiring supplier relationships.

Our baseline audit program conducted by our Group Inter-

nal Audit function provides internal assurance around the

application and effectiveness of key elements of our vetting

and contracting requirements. Further, we track LTIF (Lost Time

Injury Frequency) for our subcontractors as the key indicator

for the effectiveness of our actions to mitigate potential nega-

tive health & safety impact to supply chain workers. LTIF is the

frequency of incidents relative to the activity level measured as

worked hours by subcontractors.

Our global procurement approach does not include programs

that specifically target positive impacts for supply chain workers.

Metrics & targets

S2-5

Targets related to managing IRO

Our actions to mitigate negative impacts to supply chain work-

ers described above are applicable across our operations and

the metrics used for tracking are considered appropriate. We

have therefore not adopted or plan to adopt specific targets in

this regard.

65

SOCIAL

ESRS S4

Consumers and end-users

Impact, risk & opportunities management

S4-1

Policies

We have not adopted policies specifically related to our end-

users, but capture the interests of end-users as part of our data

ethics, data protection and information security policies.

Our Data Ethics Policy provides the overarching framework for

how we work with and manage data. It is aligned with the Char-

ter of Fundamental Rights of the European Union and includes

principles on the areas of self-determination, human dignity, re-

sponsibility, equality and fairness, progressiveness, diversity and

inclusion and accountability. Further, it sets parameters around

our use of AI systems. The policy applies to all ISS employees as

well as suppliers and business partners that have access to data

on behalf of or in collaboration with ISS. Implementation of the

policy is the joint responsibility of our Group Data Privacy & Legal

Compliance function and our Global IT, Digitalisation & Services

function.

We collect and process personal data in accordance with our

Group Data Protection Policy. It adheres globally to the principles

of the EU General Data Protection Regulation, and additional

higher standards, if required by local law and sets requirements

around data protection principles, transfer of personal data,

data breach, training & awareness and control & assurance.

The Group Data Protection Policy is owned by our Group Legal

function and our Group Data Protection Manager.

Where our Data Protection Policy establishes procedures for how

we work with and manage personal data, our Group Information

Security Policy aims at upholding the integrity of our IT ecosys-

tem and among others prevent unauthorised access to personal

data. It does so through an information security management

system aligned with the ISO27001:2022 standard and is support-

ed by documented procedures around organisational controls,

people controls, physical controls and technological controls.

Our Global Information Security function – a sub-function within

our Global IT, Digitalisation & Services function – is responsible

for the implementation of the Group Information Security Policy.

Our human rights policy commitments do not particularly focus

on data privacy related to our end-users. Please refer to S1-1 for

a description of these commitments.

Our Supplier Code of Conduct and our Supply Chain Policy are

both approved by the Executive Group Management (EGM) and

implemented operationally by our global Procurement function.

Both policies are publicly available.

Please refer to S2-2 and S2-3 in regard to incident reports from

value chain workers.

S4-2

Processes for engaging with

consumers and end-users

about impacts

Our potential data privacy impact for end-users is a result of our

customers having outsourced their facility services to ISS, which re

-

quires ISS to have access to the necessary personal data of end-us-

ers to perform the services. Our customers therefore have an obli-

gation to ensure that the partners and third parties to whom they

pr

ovide access to personal data of their employees, are managing

and processing that data in accordance with applicable regulation

and standards. For that reason our primary engagement in regard

to data privacy impacts for end-users is with our customers.

We do engage with our end-users on a daily basis as part of our

service performance as well as through regular end-user surveys

conducted in collaboration with our customers, which allows

for concerns or views to be voiced directly by end-users also in

regard to potential data privacy issues.

S4-3

Processes to remediate negative

impacts and channels for consumers

and end-users to raise concerns

Our Group Data Protection Policy described above establishes a

firm process for handling incidents of data breaches, which is the

key enabler for us to provide remediation for negative impacts to

end-users.

Just as for value chain workers our whistleblower channel is avail-

able to end-users for raising concerns though we would consid-

er it a more natural and straight forward approach for end-users

to raise concerns via their employer (our customer). During 2024

we have not received data privacy concerns from end-users

via our whistleblower channel. For details on our whistleblower

channel and Speak Up Policy, see S1-3 and G1-1. Our Speak Up

Policy is publicly available to end-users at www.issworld.com.

S4-4

Actions related to IRO and

effectiveness of those actions

Our key actions in regard to data privacy of our end-users is our

governance setup around data processing and information secu-

rity and our training activities.

To support that our data processing practices comply with our

policies we have appointed Data Protection Managers in each of

our countries of operation that provide guidance on good data

mapping and processing practices and serve as escalation point

for managing breaches. Processes and procedures involving

processing of personal data must be documented and any

changes to the processes and procedures must be updated in

OneTrust, the Group privacy management system applicable to all

companies in the ISS Group. This is supported by mandatory data

protection training assigned in our digital Learning Management

System to functions and positions typically exposed to processing

personal data.

Our information security operations are managed by a dedicated

central team within our Global IT, Digitalisation & Services func-

tion. They operate our information security management system

across our global activities. Information security training is a

mandatory training activity for more than 40,000 ISS employees.

We track training completion rates on an ongoing basis. Manda-

tory training on data protection and information security has to

be retaken annually.

In 2020 ISS was the subject of a severe cyber attack that tested

our resilience and defense mechanisms also in regard to data

privacy. The cyber attack did not compromise any personal data

of our end-users.

S4-5

Targets related to managing IRO

Our framework and approach to avoiding data breaches and

resulting negative impact for end-users is considered sufficient

to reasonably mitigate the risk exposure and we have therefore

not defined specific targets or metrics in this regard.

Metrics & targets

66

ENVIRONMENT

Environment

How we create value

The facility services sector is not a high-emitting

sector and the emission prole from our direct and

indirect activities is therefore relatively low with our

food services having the highest intensity due to

the impact from food consumption. Our insights

into our customers’ facilities and operations at the

same time enable us to support them.

Our approach to carbon emissions is focused around

these two aspects: Manage and reduce our own

emissions while supporting our customers in their

eorts to reduce emissions from buildings and facilities.

Our own Net Zero targets remain unchanged.

We aim to reach Net Zero for scope 1 and 2 by

2030 and scope 3 by 2040. The key initiatives that

support our Net Zero commitments are:

1) Electrify ~18,000 vehicles by 2030

2) Reduce emissions from food with 25% by 2030

and food waste with 50% by 2027

We support our customers’ facility managers,

delivering integrated services within cleaning,

foods, energy asset management and technical

support. We have deep insights into decarbonising

the built environment, implementing energy-

ecient solutions in daily operations and improving

sustainable practices throughout the supply chain.

Our focus areas are: Carbon reductions, minimising

energy consumption, waste reductions, sustainable

use of materials, and optimising environmental

sustainability in our customers’ workplaces. In line

with our key focus, we are advising on:

• energy optimisation based on monitoring and

tracking of carbon emissions from workplaces

• space utilisation, including the re-design of office

spaces to reduce portfolio of carbon emitting

buildings, and the reuse of furniture

• integrating carbon reduction into our service

products and working with our supply chain

to reduce emissions from our service delivery,

amongst other

In this section

ESRS E1 – Climate change 68

Reporting principles for Environmental 73

EU taxonomy 75

Reporting principles for EU taxonomy 76

EU taxonomy Annex II: Revenue 77

EU taxonomy Annex II: CapEx 78

EU Taxonomy Annex II: OpEx 79

For Basis of preparation related to the standard

above, see p. 42.

Highlighted areas

67

ENVIRONMENT

ESRS E1

Climate change

Strategy & Governance

E1-1

Transition plan

We are a service organisation performing facility services with la-

bour and people power as the primary input. Certain consumables

ar

e integrated aspects of our service performance such as food

for our food services, cleaning detergents for our cleaning services

and paper towels and hygiene products for our washroom ser

-

vices. We rely on various categories of equipment to support our

service performance such as uniforms, trolleys for cleaning prod

-

ucts, vacuum cleaners, scrubbers, kitchen equipment, instruments

and technical devices for our technical services and ordinary office

equipment (laptops, office furniture etc.). We are asset-light and

our traditional CapEx related assets in all materiality are vehicles

and leased facilities for our corporate support functions.

These characteristics flow through in our carbon emission pro-

file across scope 1, 2 and 3. Our scope 1 emissions (approx. 3%)

relate to fossil fuels for our fleet of vehicles, scope 2 emissions

(less than 1%) relate to energy consumption in our corporate

offices and scope 3 emissions (approx. 96%) primarily relate to

consumables, use of sold products and employee commuting.

Understanding our carbon emission profile has significantly

improved during 2024, but has also required focus and re-

sources in excess of expectations going into 2024. Our climate

transition plan is developed in pockets and still needs to come

together in a coherent manner to fully define how each rele-

vant lever shall contribute to our decarbonisation.

Our new carbon management platform – Watershed – will

leave us better positioned to track ongoing performance and

provide stronger insights from more detailed activity data. It

will update our emission measurement approach and move our

methodology away from relying on extrapolations by collecting

data from more than 120 business and operations systems

across the Group. While our expectations were for our carbon

management platform to be fully implemented in 2024, we

are still working on the final process and documentation steps,

which will be finalised in 2025. Emission calculations for 2024

will therefore apply unchanged methodology from previous

years. From our preliminary back testing we do expect to see

higher emission levels and movement within some of our main

emission categories for the same underlying activities when we

switch to our new carbon management platform because of

our updated measurement and methodology approach.

GHG targets

In 2023, our near-term emission reduction targets for scope 1,

2, and 3 were validated by the Science-Based Target initiative.

Beyond these validated targets, our decarbonisation ambition

is anchored in our commitment to achieve Net Zero for scope 1

and 2 (market-based) by 2030 and for scope 3 by 2040. These

ambitions align with the principles of the Paris Agreement’s

goal of limiting global warming to 1.5 degrees Celsius.

Decarbonisation levers and key actions

Our key decarbonisation levers are:

1) Decarbonising our supply chain

2) Driving efficiency in own operations

3) Downstream behavioral change

4) Renewable energy

Our key actions in regard to decarbonising our supply chain is

related to our supplier engagement with a particular focus on

our food supply chain and our largest category suppliers.

Our key actions in regard to driving efficiency in our own oper-

ations is the continued efficiency improvements in our service

products currently focused on the roll out of our PureSpace

cleaning service and our new efficiency and sustainability train-

ing for our placemakers currently being developed.

Our key actions in regard to driving downstream behavioral

change is our continuous information, awareness and nudging

activities as part of our customer and end-user engagement.

Our key action in regard to renewable energy is our ongoing

fleet electrification, which will reduce our scope 1 emissions

and allow for renewable energy to be used for vehicle charg-

ing under scope 2. We have switched a portion of our energy

consumption to renewable energy, but are yet to formalise a

renewable energy strategy and related actions.

In addition to the levers and actions identified we rely on

external circumstances such as technology development and

deployment, energy infrastructure build-out and local, regional

and global policy development.

Cost and CapEx

Our decarbonisation activities have so far not required signifi-

cant dedicated funding of operating expenses. The majority of

activities are executed with existing resources as an integrated

part of ordinary business operations. We have not allocated

increased operating expenses to decarbonisation activities and

we are sensitive to increased cost in our supply chain and our

own operations in our cost base.

In terms of CapEx funding our transition initiatives have not

identified significant CapEx investment needs. Our action in re-

gard to fleet electrification is so far funded within our ordinary

CapEx spend and we have not allocated excess CapEx funding

capacity for this purpose.

Locked-in GHG emissions

We do not consider any significant carbon emissions to be

locked-in or for any significant portion of assets to be consid-

ered as stranded. This is a result of our generally asset-light

business operations and the structure and relatively short term

of the contractual relationships behind our right-of-use assets,

primarily vehicles and corporate facilities.

EU Taxonomy alignment and

EU Paris-aligned benchmarks

Our activities and business profile are not within the target area

of the EU taxonomy regulation and we do not plan to further

align our activities with the EU taxonomy regulation. We are not

excluded from the EU Paris-aligned Benchmarks.

Key elements of transition plan

Environmental sustainability including our net-zero commit-

ments and decarbonisation journey has been embedded within

our strategic priorities for years and remains an important

component of our strategic direction. Key elements of our

transition plan have evolved since 2020 when we made our

initial science-based target commitment. As described above

we are working to bring all elements together in one coherent

transition plan, to be approved by Executive Group Manage-

ment (EGM) and the Board of Directors (the Board) which is a

key action for 2025.

Implementation of transition plan elements

Implementation of our defined transition plan elements is well

underway and we are executing on the actions identified as

global priorities supported by actions and initiatives identified

locally. While we are optimistic that certain emission reductions

will be achieved organically, we need to be realistic in regard to

our overall target completion. Reaching our Net Zero targets

requires - in addition to technology development – clear and

aligned principles for addressing cost impacts.

Our scope 1, 2 and 3 ambitions are therefore to a significant

extent dependent on regulatory intervention and technological

progress and we welcome stronger local, regional and global reg-

ulation that will level the playing field for sustainable and renewa-

ble solutions with non-sustainable and non-renewable solutions.

68

ENVIRONMENT

Impact, risk & opportunities management

E1-2

Mitigation policies

Our Sustainability Policy sets our overall direction and approach

on sustainability, including on climate change. It is approved by

our Board of Directors and owned by our Executive Group Man-

agement (EGM) with our Operations function – headed by our

Group COO – having responsibility for executing our climate

change strategy.

Our Sustainability Policy addresses climate change mitigation

through decarbonization and our Net Zero journey. It applies

across all of our operations and is supported by our Supply

Chain Policy and our Supplier Code of Conduct aimed towards

our supply chain covering among other our expectations

around climate change focus.

We have globally signed up to the Science-Based targets initia-

tive and the Coolfood Pledge. In addition, our local country or-

ganisations have signed up to initiatives and standards focused

on or relevant for their particular markets.

Climate change has global attention and is a material topic

across our stakeholder groups. As evidenced by our 2022

Stakeholder Impact assessment our stakeholders also consider

climate change as a material topic for ISS, which was reaffirmed

in our 2024 Customer Engagement Survey. Our relative impact

on climate change from our carbon emissions is less significant.

But we are influenced by the views of our stakeholders, which

is why our policy and ambition on climate change combines an

advocacy position with climate action.

Our policies mentioned above are available at our corporate

website (www.issworld.com). For internal stakeholders the

policies are also available in our internal management system

“Policy Hub”.

E1-3

Actions and resources

Scope 1 levers and actions

The vast majority of our scope 1 emissions relate to our vehicle

fleet. With around 18,000 vehicles across the globe they are by

far the largest carbon emission emitter within our scope 1. We

plan to reduce scope 1 emissions using three levers:

1) Switching to low-emission or zero-emission vehicles (Decar-

bonising our supply chain)

2) Instilling low-emission driving through training in driving

behavior and planning/logistics (Driving efficiency in own

operations)

3) Switching to renewable energy (Renewable energy)

Our key action in regard to Scope 1 emissions is to switch from

fossil fuel vehicles to low-emission or zero emission vehicles for

our 18,000 vehicle fleet across our operations by 2030. Only

to the extent combined with sourcing of renewable fuel and

electricity will this action lead to lower emissions. By 2024 our

vehicle fleet includes approximately 20% low-emission and zero

emission vehicles – an increase of 7%-points against 2023.

We have not allocated separate financial resources to this

action, which is funded as part of our ordinary CapEx spend.

When “Total-cost-of-ownership” metrics are on par with or

favorable to traditional vehicles, we source low-emission or zero

emission vehicles. For now, this depends heavily on govern-

ment subsidies in local markets and technological development

in the car and battery manufacturing industries.

Scope 2 levers and actions

The vast majority of our scope 2 emissions relate to our cor-

porate buildings where management and the majority of our

support staff work from though our transition from convention-

al to electric vehicles will lead to a shift in our emission sources.

We plan to reduce scope 2 emissions using two levers:

1) Engaging with landlords (Decarbonising our supply chain)

2) Switching to renewable energy (Renewable energy)

We do not expect that activity levels or user behavior will

materially change within our corporate buildings, which means

that consumption reduction primarily will come from upgrading

or improving the building environment in regard to energy

efficiency by adapting existing corporate buildings or moving

to more energy efficient buildings. We generally lease all of our

corporate buildings and the energy efficiency of our corporate

buildings therefore relies heavily on engaging and agreeing

with landlords on upgrades and improvements of building envi-

ronments and equipment. We do have expertise within energy

efficiency and building management that allow us to engage

deeply with landlords.

The energy consumption behind our scope 2 emissions is 18%

from renewable sources in 2024. As we transition our fleet from

conventional to electric vehicles our scope 2 energy consump-

tion will increase, which will increase the need for procuring

renewable energy within scope 2. We are sensitive to the cost

impact from renewable energy and we are therefore more gen-

erally looking to switch to renewable energy as the price point

between renewable and non-renewable solutions significantly

narrow, which may be affected by market timing and market

demand.

Because of the relatively low impact from our scope 2 emis-

sions we have not at this stage prioritised specific actions. We

plan to develop actions in regard to sourcing of renewable

energy in the medium term.

Scope 3 levers and actions

Our scope 3 emissions can roughly be split into five buckets:

1) Emissions from food (Category 1)

2) Emissions from purchased goods and services other than

food (Category 1)

3) Emissions associated with our service performance (Cate-

gory 11)

4) Emissions from employee commuting to and from work

(Category 7)

5) Other emissions

They primarily relate to our upstream value chain as illustrated

below:

1) Upstream value chain 73%

a. Goods and services (category 1)

b. Employee commuting (category 7)

c. Other

2) Downstream value chain 27%

a. Use of sold products (category 11)

b. End-of-life treatment of sold products (category 12)

c. Other

Our scope 3 emissions – except for employee commuting – can

be targeted in three ways:

1) Reduce the emission profile of consumables, equipment

and assets used as part of our service performance (Decar-

bonising our supply chain)

2) Improve efficiency of how we use and apply consumables,

equipment and assets as part of our service performance

(Driving efficiency in own operations)

3) Change end-user impact by reducing or changing end-user

consumption (Downstream behavioral change)

These can be targeted in isolation or in partnerships across the

value chain with the aim to avoid, reduce or influence emissions.

69

ENVIRONMENT

Impact, risk & opportunities management (continued)

Actions in regard to emissions from food

Our food suppliers are encouraged to drive carbon reductions

through optimising sourcing and logistics processes and intro-

ducing low-emission products.

Our food and catering experts continuously develop low-emis-

sion practices and recipes that for example exchange meat for

non-meat products within the boundaries set by our custom-

ers. A simple example of our low emission practices is switching

to plated servings from buffet style servings.

We continuously engage with existing and prospective cus-

tomers to introduce more plant based and low-emission diets

and menus. While some customers fully embrace low-emission

menus, we still experience hesitation influenced by end-user

preferences and demands.

The actions are not timebound, but linked to our target of

reducing emissions from food by 25% by 2030. Actions are

executed as part of our ordinary functional operations and we

have not allocated dedicated financial resources.

Our progress is tracked by our food service professionals and

will benefit from our new carbon management tool - Water-

shed - once fully operational in 2025. Annual reporting is filed

with the Cool Food Pledge organisation as part of our Cool

Food Pledge commitment.

Actions in regard to food waste

Our global food waste reduction initiative is another important

component. The primary positive emission impact of reducing

food waste is that it reduces food consumption either because

of more efficient food use in the preparation phase or because

of more appropriate end-user consumption. It will also result in

positive impact on downstream emissions relating to the han-

dling and managing of the food waste itself, but these are small

in relative and absolute comparison. Besides strong practices

around food waste reductions we have partnered globally with

Winnow to provide leading technology to capture better data

insights on food waste.

We have set a target to reduce food waste by 50% in 2027. The

emission reduction impact hereof will largely be part of our

reduction of emissions from food described above.

Actions in regard to emissions from cleaning

Cleaning is our largest service type both in terms of revenue

and people. We work with emission reductions as an integrat-

ed part of developing more efficient cleaning methods and

our PureSpace cleaning method is now introduced globally

in dedicated versions within our Office product segment and

our Healthcare product segment. It drives emission reductions

through a more efficient utilisation of cleaning consumables

(upstream emissions) and higher productivity reducing e.g.

electricity consumption used for vacuuming (downstream

emissions) and therefore impacts emissions within Category

1 (Purchased goods & services) and Category 11 (Use of sold

products).

We do not have fixed targets for the emission reductions

from rolling out of PureSpace, but our use cases demonstrate

emission reduction benefits as well as for example lower water

consumption.

Actions in regard to employee commuting

We do not have a defined lever for reducing emissions from

employee commuting. Our current focus centers around better

understanding the actual employee commuting emissions

by moving from modelling emissions based on geographical

commute patterns to having primary commute input from our

workforce enabled by our global roll out of MyISS. Reduction

of actual employee commute emissions is heavily dependent

on availability of low-cost and low-emission or zero-emission

commute alternatives in public transport and infrastructure. We

will continue advocating the need for significant investment in

these areas as part of a just transition, but we do not foresee

taking particular action over and above traditional nudging

and information campaigns and we will not allocate significant

financial resources to reduction initiatives.

Local actions

In addition to our global initiatives we have numerous local

initiatives addressing emission reductions in a local context that

are targeted at local emission sources or developed in partner-

ship with customers, suppliers or other stakeholders locally.

No signicant OpEx and CapEx

Climate change mitigation and decarbonisation activities are

integrated into our functional operations and our operating

expenses in this regard are therefore not possible to separate

from other business activities. We have certain dedicated de-

carbonisation cost primarily relating to people resources and IT

systems. These operating expenses are not significant.

As explained above our CapEx needs for climate mitigation

actions are not currently significant.

70

ENVIRONMENT

Metrics & targets

E1-4

Targets and adaptation

The Science-Based Target initiative validated our near-term

emission reduction target in 2023, which implies reductions

across scope 1 and 2 by 46.5%, and reductions in scope 3 by

27.6% by 2030.

For 2025, our goal is to achieve a 4.7% reduction from our

baseline in each of Scope 1, Scope 2, and Scope 3 emissions.

Throughout 2025, we will also establish specific reduction tar-

gets for individual Scope 3 categories. This effort is part of our

broader strategy to meet our near-term target for 2030 and

our net-zero ambitions in the long run.

In 2022, we committed to becoming net-zero by 2030 across

scope 1 and 2 (market-based) and by 2040 across scope 3

categories. These net-zero targets are set in-house and are

in addition to our validated near-term targets. Our net-zero

targets are measured against a 2019 baseline, which we believe

is unaffected by extraordinary events or circumstances, unlike

the Covid-19 effects that impacted 2020.

Our net-zero targets assume an absolute reduction of at least

90% of our carbon emissions against the 2019 baseline. This

includes an absolute reduction of 90% for each of scope 1 and

2 by 2030, and for scope 3 by 2040. These targets do not adjust

for future developments.

For scope 1 emission reductions we have set a target of transi-

tioning our fleet of vehicles to zero-emission vehicles by 2030.

The target was set in 2020.

For scope 3 emissions we have set targets for reducing emis-

sions from food by 25% in 2030 and reducing food waste by

50% by 2027 both against a 2019 baseline. In 2024 we reached

the midway point in our food emission target having reduced

food emissions by 13% against our 2019 baseline, while our

food waste reductions reached 49% against our 2019 baseline

almost meeting our 2027 target.

During 2025, we will use our improved insights into our carbon

emission profile to map our decarbonisation journey by de-

carbonisation lever across scope 1, 2 and 3 against our stated

emission reduction targets as part of completing our transition

plan as described in E1-1. We expect to have a residual emis-

sion of up to 10% of our 2019 baseline value, which is expected

to be offset.

E1-5

Energy consumption and mix

Consumption and mix

(MwH) 2024 %

Fossil energy 261,993 97%

Nuclear sources 3,254 1%

Renewable energy

Fuel, incl. biomass - -

Purchased electriticy, heat steam and cooling 4,010 2%

Self-generated non-fuel energy 63 0%

Total renewable energy 4,073 2%

Total 269,310 100%

Energy intensity

(MWh, DKKm) 2024

Total energy consumption (MWh) 269,310

Total net revenue 83,761

Energy intensity (MWh/mDKK) 3.22

71

ENVIRONMENT

Metrics & targets (continued)

E1-6

Scopes 1, 2, 3 and GHG emissions

Our 2024 performance on scope 1 emissions are impacted by

lower use of fossil fuels as a result of reductions of our total ve-

hicle fleet combined with switching to more low and zero-emis-

sion vehicles in line with our fleet electrification target.

Our 2024 performance on scope 2 emissions are impacted

by lower consumption of purchased energy in our corporate

facilities, primarily lower electricity consumption. Market-based

scope 2 performance is negatively impacted by a lower share of

renewable energy purchased.

Our overall 2024 performance on scope 3 is impacted by

activity levels and updated emission factors. On the positive

side we start to see the impact of initiatives to reduce food

emissions even with higher food volumes and despite the over-

all Category 1 increasing due to other factors. The reduction

from employee commuting (Category 7) is primarily a result of

slightly fewer employees and updated emission factors, while

the increase in Category 11 is driven primarily by kitchens pro-

cessing higher food volumes.

GHG intensity

(tCO

2

e, DKKm) 2024

Total location based GHG (t CO₂e) 1,676,040

Total market based GHG (t CO₂e) 1,680,576

Total net revenue 83,761

GHG intensity location based (t CO₂e/mDKK) 20.01

GHG intensity market based (t CO₂e/mDKK) 20.06

E1-7

GHG removals and mitigation

projects financed via carbon credits

At this stage we have not considered or decided how to engage

in carbon removal or carbon offsetting for the residual portion

to meet our net-zero commitments.

E1-8

Internal carbon pricing

We do not currently apply any internal carbon pricing schemes.

GHG emissions

Retrospective Annual target/Base year

(tCO

2

e, unless otherwise stated)

2019

(Base year) 2023 2024

% 2024

vs 2023 2025

2030

Near-term

2040

Net Zero

Annual %

target /

Base year

Scope 1

Gross 88,722 66,153 56,592 (14)% 52,422 47,466 8,872 4.2%

hereof regulated trading schemes, % - - -

Scope 2

Gross, location based 12,549 6,205 5,594 (10)% - - -

Gross, market based 10,556 10,301

3)

10,131 (2)% 9,634 5,647 1,055 4.2%

Scope 3 (significant)

Gross, indirect 1,631,811 1,617,882 1,613,854 0% 1,537,158 1,181,431 163,181 2.5%

Cat. 1 Purchased goods and services 711,751 710,897 802,170 13%

Cat. 2 Capital goods 12,142 9,901 12,606 27%

Cat. 3 Fuel and energy-related activities 21,954 20,968 17,820 (15)%

Cat. 5 Waste generated in operations 1,434 75 645 763%

Cat. 6 Business traveling 10,453 9,822 11,846 21%

Cat. 7 Employee commuting 543,421 480,207 340,374 (29)%

Cat. 11 Use of sold products 259,937 329,984 371,138 12%

Cat. 12 End-of-life treatment of sold products

71,978 56,028 57,255 (2)%

Total

Location based 1,733,082 1,690,240 1,676,040 (1)% - - -

Market based 1,731,089 1,694,336 1,680,576 (1)% 1,599,215 1,234,544 173,109

1)

Not covered by the Independent Auditor’s limited assurance report. 2023 numbers for scope 2 (location- and market-based) and scope 3 (categories 3 and 11) have been updated with new

energy emission factors used for our 2024 calculations to reect a fair comparison.

2)

We have set net-zero targets in-house in addition to our validated near-term targets.

3)

Due to a reclassication of our renewable energy consumption in 2023, we have restated our scope 2 (market-based) emissions for 2023, which drives an emission increase due to the

generally higher residual grid mix emission factor applied in the aected markets. Our total energy consumption for 2023 is unaected by the reclassication.

4)

Targets are aligned to our near-term SBTi validated targets. For 2025 we internally target 4.7% emission reduction for scope 1, 2 and 3.

1) 2) 4)

72

ENVIRONMENT

Reporting principles for Environmental

E1-5 metrics

Fossil fuel consumption

Fossil fuels cover diesel, petrol, gas, biodiesel and bioeth-

anol and primarily relate to consumption for our vehicles

and to a small extent in our buildings. Fuel consumption

data is primarily collected as actual volume consumption

from external fleet management partners. For vehicles not

managed through external partners consumption data is

calculated from actual volume consumption on petrol cards

or extrapolated from spend or mileage data. Gas consump-

tion is actual consumption from meter readings or utility

invoices, lessor supplied data or extrapolated from statistical

sources based on m

2

occupancy.

Electricity

Electricity consumption primarily relates to our corporate

facilities, but also covers electricity used for our vehicle fleet.

Consumption data is metered readings, supplier data or

extrapolated from statistical sources and primarily based on m

2

occupancy. For electricity relating to electric vehicles consump-

tion is based on actual charging consumption or estimates

based on e.g. mileage.

Heating, steam and cooling

Heating, steam and cooling consumption relates to our

corporate facilities. Consumption data is metered readings,

supplier data or extrapolated from statistical sources and

primarily based on m

2

occupancy.

Energy consumption at customer sites is accounted for by

customers. We include it within our scope 3 emissions in line

with the GHG protocol.

Energy consumption and mix

a) Energy from fossil sources

Energy from fossil sources (diesel, petrol, gas, biodiesel

and bioethanol) is converted from volumes to energy by

applying volume-to-weight conversion factors in accordance

with Annex 29 to the Stockholm Convention on persistent

organic pollutants. Gas volumes are converted to energy at

a conversion ratio of 0.01055 MWh per m

3

of gas.

Further, energy from fossil sources cover electricity, heating, cool-

ing and steam that is not from renewable or nuclear sources.

b) Energy from nuclear sources

Energy from nuclear sources is calculated by applying statis-

tics from the International Energy Agency (IEA) of the coun-

try-by-country energy mix for Total Energy Supply to each

ISS operating country’s non-renewable energy consumption

from electricity, heating, steam and cooling.

c) Energy from renewable sources

Renewable electricity, heat, steam and cooling covers

energy consumption where we have an “exclusive” right

to the renewable claim e.g. under Guarantees of Origin or

similar instruments. It also covers any part of self-generated

renewable energy that is not self-consumed, but sold into

the public grid. When calculating renewable energy we have

in previous years also included renewable energy based

on supplier energy mix information. We have changed this

practice from 2024 and only include renewable energy

based on supplier energy mix when calculating Scope 2

(market-based) emissions in accordance with the GHG

Protocol data hierarchy.

Self-generated non-fuel energy is the self-consumed portion of

energy from solar panels, windmills or similar renewable ener-

gy sources. It is an insignificant element of our energy mix.

We report no renewable energy from fuel, including biomass.

Energy intensity

We do not have operations in high climate impact sectors,

but we do perform services for customers with operations

in high climate impact sectors. Our energy consumption

is not particularly affected by the customer segment we

service, since our energy consumption relates to our own

corporate real estate footprint and operation of our fleet of

vehicles. Our energy intensity is therefore identical across

our customer segments regardless if in high climate impact

sectors or not.

Energy intensity is calculated as total energy consumption

(MWh) relative to total net revenue (mDKK) in our consolidat-

ed financial statements.

E1-6 metrics

Scope 1 emissions

Scope 1 emissions comprise direct CO

2

emissions from

sources owned or controlled by the ISS Group calculated in

accordance with the Greenhouse Gas Protocol. Consumption

data is multiplied with emission factors from USEPA Hub

April 2023 and Defra 2024 for each fuel type. Fuel relating

to our chauffeur service in India is accounted for in Scope 3

(category 3) and excluded from scope 1. Please refer to fossil

fuel consumption above for a description of our compilation

of consumption data.

Scope 2 emissions

Scope 2 emissions comprise indirect tCO

2

e emissions from elec-

tricity, heating, steam and cooling consumed in buildings leased

or o

wned by the ISS Group as well as electricity consumed for

electric vehicles. Emissions are calculated in accordance with

the Greenhouse Gas Protocol. Location-based electricity emis

-

sions are calculated using emission factors from IEA Electricity

2022, UK Defra 2023, AU National GHA 2024 and eGrid 2023.

Market-based electricity emissions are calculated using emis

-

sion factors from AIB Residual Mix 2023, IEA Electricity 2022,

AU National GHA 2024 and eGrid 2023. Heating, cooling and

steam emissions are calculated using emission factors from

EU28 District Heat, DK district heat and ecoinvent 3.10.

Scope 3 emissions

Scope 3 emissions comprise the 8 most material categories

out of the 15 scope 3 categories specified by the Green-

house Gas Protocol. The remaining categories are not

applicable and therefore not reported on. Spend data used

relate to the financial year 2024 and is adjusted for inflation

from the base year of the applicable emission factor.

Purchased goods and services (category 1) include emis-

sions relating to external supplier spend. Spend relating to

capital goods and business travel is separately calculated in

categories 2 and 6. Purchased goods and services emis-

sions mainly relate to food purchased for our food services.

Emissions from subcontracted services spend and cleaning

services related spend activities together with food spend ac-

count for approx. 93% of our category 1 emissions. Emissions

are calculated from a mix of weight or quantity, direct spend

and supplier data with extrapolations applied as necessary.

73

ENVIRONMENT

Where emissions are not derived from primary source input,

emission factors applied are mainly derived from Agribalyse

v3.2 2024 (relating to food), USEEIO v1.2 (relating to subcon-

tracting) and Sphera Solutions GmbH (relating to cleaning).

Capital goods (category 2) include emissions from cleaning

and kitchen machines used in connection with our service

provisions. Emissions are calculated from direct spend

relating to cleaning and kitchen machines multiplied with

emission factors derived from USEEIO v1.2.

Fuel and energy related activities (category 3) include up-

stream emissions of purchased fuels and electricity, steam,

heating and cooling as well as transmission and distribution

losses. Consumption data is identical to what is used for

our scope 1 and 2 calculations. Category 3 also includes

emissions from fuel and energy consumption relating to

our chauffeur services in India. Emission factors are applied

from WTT IPCC Natural Gas WTT, Defra 2023, Defra 2024

and IEA 2024.

Waste disposal (category 5) includes waste disposal and

water withdrawal relating to our leased or owned buildings.

Waste disposal is calculated on the basis of the number of

staff based at our corporate offices per country and the

average weight of waste generated per person per year

derived from 7 use cases with waste split into four waste

streams used for emission calculations with one being

zero-emission recyclable waste and three waste streams

having landfill emission factors applied derived from Defra

2024. Water related emissions are based on actual con-

sumption data of water withdrawal or estimated based on

occupancy rate or m

2

to which Defra 2024 emission factors

are applied.

Business travel (category 6) includes emissions related to

air and train travel as well as hotel accommodation and is

based on travel distance, transportation type and accommo-

dation length data supplied by our travel agency. Emission

factors for travel are applied in categories for each air and

train travel depending on travel distance whereas a standard

emission factor per accommodation night is applied to hotel

accommodation. Emission factors are derived from Sphera

Solutions GmbH and DEFRA 2024. For India and China

extrapolation calculations were applied using the character-

istics of Indonesia as the extrapolation base.

Employee commuting (category 7) includes travel to and

from the work place for ISS employees. Due to our sig-

nificant number of employees, our employee commuting

emissions are sizeable. Calculations are based on actual

number of employees per country split into placemakers

and support staff and with different assumptions applying to

full-time and part-time employees. Placemakers are gener-

ally assumed to commute 5 days per week for 52 weeks per

year. No adjustments are made for holiday, sickness or other

absence on the assumption that a temporary worker will

perform the commute instead. Consequently, no emissions

are separately calculated for non-employees. Support staff

are assumed to commute 4 days per week to account for

hybrid working patterns and work for 48 weeks per year to

account for holiday and other absence. Travel distances and

commute patterns are calculated on a regional basis and

emission factors are derived from Defra 2024. Increased

electricity and heating consumption is accounted for in

regard to homeworking for days where no commuting is as-

sumed for support staff. Consumption and emission factors

derived from Defra 2024 are applied on a regional basis.

Use of sold products (category 11) includes emissions

from our use of cleaning equipment, kitchen equipment and

technical equipment as part of our service at customer sites.

Emission calculations are based on use cases for electric-

ity consumption in regard to use of cleaning, kitchen and

technical equipment and extrapolated based on equipment

spend, equipment type and count or number of users.

Emission factors applied are derived from eGrid 2021, UK

Defra 2023, IEA Electricity 2022 and AU National GHA 2024

in regard to electricity consumption and IEA WTT 2024 and

IEA T&D 2024 in regard to well-to-tank and transmission/

distribution loss.

End-of-life-treatment of sold products (category 12)

includes emissions from cleaning chemicals, washroom prod-

ucts (toilet paper, hand towels etc.), cleaning tools, machine

spare parts and food waste used or generated as part of our

service performance. Key supplier data is used to calculate

consumption amounts from spend data and extrapolated

to the remainder of spend in this category. Food waste is

calculated using a fixed statistical food waste assumption on

the weight of food purchase. The EU-28 emission factor for

commercial waste in municipal waste incineration plant is

applied to consumption data across the category except for

food waste that uses Defra 2024.

GHG intensity

GHG intensity is calculated as total GHG emissions (tCO

2

e)

relative to total net revenue (mDKK) in our consolidated

financial statements.

Vehicles

Number of vehicles are all company vehicles that are owned

or leased by the company and provided to an employee

in order to carry out the requirements of their work i.e. to

meet a particular business need, including pool vehicles and

company cars. Vehicle data including the type of vehicle is

recorded in internal or external fleet management systems

and asset registers, including IFRS16 management modules.

Reporting principles for Environmental (continued)

74

ENVIRONMENT

EU taxonomy

Framework

The EU Taxonomy aims to provide a common framework to

determine to what degree an economic activity can be classied

as environmentally sustainable. The objective of the taxonomy

is to increase transparency for investors, companies, and

policymakers and thereby support channeling capital towards

greener activities, preventing of greenwashing, and help

companies become more sustainable. The taxonomy presents

six environmental objectives concerning climate change

mitigation and adaptation, protection of water resources, circular

economy, pollution prevention and protection of biodiversity.

To be classied as environmentally sustainable, all technical

screening criteria (Minimum Social Safeguards, Do No Signicant

Harm’ and Substantial contribution) have to be met.

We have screened our revenue generating and investment

activities against the activity descriptions of the EU Taxonomy

for eligible revenue, CapEx and OpEx and assessed alignment

criteria applicable to eligible activities.

The EU Taxonomy in its current form is directed towards activities

in high emission industries such as manufacturing, transporta-

tion, energy and construction. As a workplace experience and

facility management company, the overall activities of ISS within

cleaning, food, technical services, front- and back-end service

support, workplace management and security do not fall within

the targeted scope of the EU Taxonomy. In addition, we are an

asset-light business with generally low investment needs.

Activity screening in regard to revenue has considered (i) the

NACE codes assigned as guidance to the activity descriptions in

the EU Taxonomy and (ii) an individual assessment of each of our

service activities split into 48 service types. Our activity screening

in regard to CapEx and OpEx has considered our key asset types

and cost components as recorded in our nancial system. Based

on this approach we have also avoided double-counting across

economic activities.

Our conclusion is that revenues relating to energy manage-

ment service as well as CapEx and OpEx relating to vehicles and

real property are taxonomy-eligible within climate change miti-

gation and adaption. Alignment criteria in regard to “substantial

contribution” and “do-no-signicant-harm” are challenging to

document and we have not yet managed to establish and ob-

tain appropriate conrmations from manufacturers and suppli-

ers. Likewise, while we have no reason to believe that we do not

comply and uphold minimum safeguards, we want to ensure

that documentation is in place. As such, none of our taxono-

my-eligible activities are assessed to be taxonomy-aligned.

Technical services

Certain sub-components of our technical services revenue

could be considered taxonomy eligible as climate change mit-

igating activities. These relate to activities under “Construction

and real estate” that we may undertake as part of our services;

more specically activities within installation, maintenance

and repair of energy eciency equipment (7.3) and installa-

tion, maintenance and repair of instruments and devices for

measuring, regulating and controlling energy performance

of buildings (7.5). The taxonomy relevant elements of our

technical services are not distinct in nature, but performed as

part as an overarching service for which we record revenue in

accordance with IFRS 15. As we are not able to separate out the

taxonomy-eligible elements, we do not consider any part of the

service to be taxonomy-eligible.

Energy management services

Our energy management services are eligible activities (9.3) for

climate change mitigation and mainly consist of managing and

advising on energy ows and energy consumption in customer

facilities. We mainly provide energy management services in

the UK, but it is an identied growth area. Eligible revenue for

2024 amount to DKK 30 million.

Vehicles

Vehicles are used broadly across our service portfolio as part

of service performance and for management purposes are not

distinct to any particular service. Taxonomy specied CapEx and

OpEx related to vehicles are taxonomy-eligible (6.5). We almost

exclusively lease our vehicles and CapEx is therefore primarily

recorded as right-of-use assets in accordance with IFRS 16.

Eligible CapEx and OpEx relating to vehicles amount to DKK

643 million and DKK 123 million respectively for 2024.

Real property

Our service performance takes place at our customer sites and

our real property footprint is therefore largely used for our cor-

porate facilities across our operating geographies. Taxonomy

specied CapEx and OpEx related to real property are taxono-

my-eligible (7.7).

We almost exclusively lease our real property and CapEx is

therefore primarily recorded as right-of-use assets in accord-

ance with IFRS 16.

Eligible CapEx and OpEx relating to real property amount to

DKK 331 million and DKK 69 million respectively for 2024.

Minimum safeguards

As an overarching principle the EU Taxonomy requires business

activities to be performed in accordance with principles of respon-

sible business conduct within the areas of human rights, bribery/

corruption, taxation and fair competiton. If these minimum safe-

guards are not met, it is not possible to make claims that activities

are aligned within the denition of the EU Taxonomy.

We are strong supporters and advocates of human rights and

we believe that we comply with the principles of the minimum

safeguards through our foundational values, policy frameworks

and ongoing due diligence activities. We recognise however

that we have shortcomings in our ability to document our

adherence. In the beginning of 2025 we will launch a human

rights impact assessment supported by external experts that

will help us to address our shortcomings in terms of documen-

tation and pinpoint potential target areas for improvement. We

have no reason to believe that our business practices do not

uphold the minimum safeguards in regard to human rights and

will conrm so when documented through our human rights

assessment.

In regard to corruption ISS has in place an anti-corruption poli-

cy, internal controls and measures for preventing and detecting

bribery that are considered adequate. None of ISS’ top man-

agement members has been convicted in court of corruption.

In regard to taxation ISS has in place a Tax Policy anchored with

the Board of Directors and has put in place tax risk manage-

ment controls and processes considered to be adequate. None

of the legal entities within the ISS Group has been found guilty

of tax evasion.

In regard to fair competition ISS has in place a Competition

Law Policy and addresses fair competition as fundamental ISS

principle in its Code of Conduct: Employee awareness is pro-

moted and training programs and sessions are conducted at

regular intervals. Code of Conduct training is mandatory for all

employees. None of ISS’ top management members has been

convicted in court for breaching competition laws.

See p. 76 for a description of our taxonomy-related reporting

principles and taxonomy reporting templates.

75

ENVIRONMENT

Reporting principles for EU taxonomy

In accordance with Commission Delegated Regulation (EU)

2021/2178 which specifies the content and presentation to

be disclosed, ISS discloses the proportion of our turnover,

CapEx and OpEx that relates to Taxonomy-eligible and

Taxonomy-aligned economic activities.

Taxonomy-eligibility states the share of ISS’ turnover, CapEx

and OpEx, which are covered by the activity descriptions

in the Taxonomy delegated acts. Taxonomy-alignment

states whether these Taxonomy-eligible economic activities

qualify as environmentally sustainable as described in

the Taxonomy Regulation’s delegated acts. Eligibility and

alignment performance is expressed with KPIs for each of

turnover, CapEx and OpEx as explained below.

We have no nuclear economic activities as defined in Sections

4.26, 4.27, 4.28, 4.29, 4.30 and 4.31 of Annexes I and II to

Delegated Regulation (EU) 2021/2139. Disclosing that we

have no nuclear economic activities also in tabular format

according to Annex XII of Commission Delegated Regulation

(EU) 2022/1214 serves no separate purpose and is therefore

excluded.

KPI for turnover

For purposes of calculating the eligibility KPI the denominator

for turnover is defined as total revenue in accordance with

IFRS as presented in note 1.1 of the consolidated financial

statement. The numerator for turnover is the revenue

associated with taxonomy-eligible activities.

KPI for CapEx

Total CapEx consists of additions to fixed assets (including

right-of use) and intangible assets as well as such additions

from acquisitions. For taxonomy reporting purposes

goodwill is not included in CapEx as it is not defined as an

intangible asset under IAS 38, which is also the main reason

for the difference between our total CapEx for taxonomy

purposes and our total CapEx reported in accordance with

IFRS see note 2.6 of our consolidated financial statement.

The share of taxonomy-eligible CapEx is calculated as:

Taxonomy-eligible CapEx KPI (additions) = eligible CapEx/

total CapEx.

KPI for OpEx

Total OpEx consists of direct non-capitalised costs that relate

to research and development, building renovation, short-

term lease, maintenance and repair and any other direct

expenditures relating to the day-to-day servicing of property,

plant and equipment assets. It excludes amortisations and

impairments.

The main difference between our total OpEx for taxonomy

purposes and our total OpEx reported in accordance with

IFRS is salary and employee cost that are recognised under

IFRS, but not considered for taxonomy purposes.

The share of taxonomy-eligible OpEX is calculated as:

Taxonomy-eligible OpEx KPI (repair and maintenance)

= eligible OpEx/total OpEx.

76

EU TAX

ONOMY ANNEX II

Revenue

Proportion of revenue from products/

services associated with taxonomy-aligned

economic activities

ENVIRONMENT 77

EU TAXONOMY ANNEX II

CapEx

Proportion of CapEx from products/services

associated with taxonomy-aligned economic

activities

1)

Restated based on higher Taxonomy non-eligible CapEx (customer contracts).

ENVIRONMENT 78

OpEx

Proportion of OpEx from products/services

associated with taxonomy-aligned economic

activities

1)

Not disclosed in 2023 as it is insignicant relative to total OpEx.

ENVIRONMENT

EU TAXONOMY ANNEX II

79

GOVERNANCE

Governance

How we create value

In ISS, we are committed to carrying out our

activities according to principles of good corporate

governance and ensuring that human rights, social,

environmental and ethical commitments of ISS are

reected in all our dealings with our placemakers,

customers, suppliers, public institutions and other

stakeholders.

We conduct our business in a lawful manner,

and we are committed to combatting corruption

and bribery and upholding the highest ethical

standards in all areas of our business.

We promote and ensure that concerns can be

raised, and grievances can be made without any

risk of retaliation through our Speak Up Policy and

system, which is available to all placemakers and

stakeholders.

We have a dened set of values providing the

foundational backbone for our business conduct:

• Entrepreneurship

• Honesty

• Quality

• Responsibility

• Unity

A strong value base is essential for us in ensuring

that we interact with stakeholders in a fair and

respectful manner just as we expect to be treated

fairly and with respect by our stakeholders.

In this section

ESRS G1 – Business conduct 81

Reporting principles for Governance 83

For Basis of preparation related to the standard

above, see p. 42.

Highlighted areas

80

GOVERNANCE

ESRS G1

Business conduct

Impact, risk & opportunities management

G1-1

Policies and corporate culture and

assessment of IRO

Our purpose “Connecting people and places to make the world

work better” is not just a pay-off. It also captures the essence

of what we want to achieve as a business and how we want

to achieve it. “Make the world work better” refers to the direct

service value that our customers experience and that supports

their specific needs, but it also refers to a general positive

impact on the world and the people we interact with as a

business.

We are guided by our values that have been our foundation for

decades yet still influenced by the world around us. Listening lead

us to the recent addition of our fifth value “Unity” that reflect trust,

empowerment and belonging as part of our core fundamentals.

Our values come to life in our Code of Conduct that sets the

overall parameters around how we want to do business and

how we require our employees to conduct themselves as ISS

representatives. This includes our commitments to and around

good and fair business practices in accordance with interna-

tional standards of United Nations Global Compact, United

Nations Declaration of Human Rights, the Core Conventions of

the International Labour Organisation and the United Nations

Guiding Principles on Business and Human Rights.

It is anchored with the Board of Directors (the Board) and the

Executive Group Management (EGM) and reviewed annually.

We engage with 40,000+ customers and ~49,000 suppliers on

multiple organisational levels, which exposes us to risk in regard

to business ethics. We are not generally a heavily regulated in-

dustry with deep interactions or dependencies on regulators or

public authorities and our business ethics risk exposure towards

public authorities is therefore primarily a result of participation in

public tenders or public sector customer contracts.

We ensure that our core principles “flow up” to our supply chain

through our Supplier Code of Conduct that hold all suppliers in

our supply chain to a set of minimum standards as a prerequi-

site for doing business with us, please refer to G1-2. We ensure

that our core principles “flow down” to our customers and other

business partners through awareness activities typically by

including our Code of Conduct as part of contractual negotia-

tions. Training in the Code of Conduct is mandatory for our own

employees and includes also specific awareness training on our

Speak Up channel, please refer to S1.

Our commitment to ethical business practices around anti-cor-

ruption and anti-bribery is clearly stated in our Anti-Corruption

and Anti-Bribery Policy statement endorsed by our Group CEO

and available at our corporate website. It is supported by our

Anti-Corruption Policy which provides principles and guidance

for all employees on areas such as bribery, facilitation payments,

gifts & entertainment and political contributions. Further, our

belief in fair competition as a business fundamental is detailed in

our Competition Law Policy applicable to all employees.

Ensuring that incidents are appropriately dealt with requires

that information is escalated to the right management levels.

Our Escalation Policy prescribes matters of particular impor-

tance that are to be escalated through defined management

lines, which includes business integrity issues. The Escalation

Policy in combination with our ordinary management practices,

our Speak Up Policy and our internal audit programme provide

our due diligence foundation in regard to business conduct.

Our whistleblowing channel – Speak Up

With global activities and millions of interactions daily there

will be instances where our practices or actions are wrong or

inconsiderate. We are committed to continuously improving

our practices, which starts by establishing proper channels

for listening. In a daily operational setting our management

practices offer a variety of opportunities and channels to raise

concerns as an employee, a supplier, a customer, an investor

or other stakeholder. But we need to ensure that a separate

channel is available for raising the most severe and harmful

issues either because other channels are not appropriate or

accessible or because our ordinary management practices fail

to deliver proper resolution.

For years we have made available a Speak Up channel through

which concerns can be raised anonymously, confidentially and

without fear of retaliation by employees, business partners

and other stakeholders. It is governed by our Speak Up Policy,

which is publicly available on the global and all local ISS websites

alongside our Code of Conduct and is translated into 26 local

languages across our countries of operation. The policy identifies

the reporting scope as suspected misconduct, possible breach

of regulations or internal policies or concerns that could have an

adverse impact on the reputation, operations and performance

of the business of ISS and which, due to the nature of the con-

cern, cannot be reported through the normal reporting lines.

Our Speak Up channel is operated by an external third-party

provider and can be accessed via email, website and by phone.

Instances reported are governed and managed in accordance

with our Speak Up Policy and a detailed Speak Up protocol.

Initial screening for conflicts of interest is done by and external

law firm and subsequently reviewed by our Speak Up team

within the Group Internal Audit function. Most reports received

concern disagreements on traditional HR related issues such

as salary levels and are referred back to local management

functions for resolution. Reports received within the scope of

the Speak Up Policy are reviewed and assessed by the Business

Integrity Committee, a committee under the EGM, that consists

of the Group CFO, the Group Chief People & Technology Officer,

the Group General Counsel and the Head of Group Internal

Audit. The Chairman of the Business Integrity Committee

reports to the Audit & Risk Committee as a fixed agenda item

on all meetings.

Our Speak Up Policy and system for reporting concerns com-

plies with the Danish Whistleblower Act, which implements the

EU whistleblower directive in Denmark. In 2024 we continued

to monitor the implementation of the directive in ISS’s EU

based countries and provided guidance on good practices

around setting up local reporting channels, considering local

legal requirements around whistleblowing.

All ISS Group Policies and Standards have a dedicated section

with information on the Speak Up reporting system and chan-

nels for raising concerns.

We also operate an extensive internal audit program through

our Group Internal Audit function. Our internal audit program

has a general perspective and a topical perspective. The gen-

eral perspective aims to audit all countries within a three year

period on a set of baseline fundamental controls that include

areas such as cascading of the Code of Conduct in accordance

with policy requirements, mandatory training completion and

adherence to core controls designed to mitigate business

ethics risk such as our Corporate Governance Policy and our

authority matrix. The topical perspective zooms in on areas of

documented or perceived risk.

If issues that fall under the scope of the Speak Up Policy are

identified in another manner or through another channel than

our Speak Up channel, it will be recorded and added to the

Speak Up system to ensure that we capture a consolidated view

of issues identified and resolve them appropriately.

81

GOVERNANCE

Impact, risk & opportunities management (continued)

Training

Our Code of Conduct is a mandatory part of the employment

agreement that we make with employees. All employees are

required to take mandatory training in the ISS Code of Conduct,

which includes business ethics themes such as corruption and

bribery. Training is available in digital and physical (classroom)

format and can therefore reach also employees with limited ac-

cess to digital equipment or with limited digital or literacy skills.

Code of Conduct training assigned to employees digitally via

our Learning Management platform has to be completed within

2 months from the employment commencement date and will

need to be refreshed every two years. This will cover functions

within procurement, finance, commercial, key account manage-

ment and executive management at Group and country level,

which are the functions considered most at risk in respect of

corruption and bribery. Line management escalation is triggered

in case of non-compliance with training requirements.

We track and monitor training progress and our statistics

show overall strong coverage across our workforce.

G1-2

Relationships with suppliers

Our supply chain consists of approximately 49,000 suppliers.

We manage our supply chain with a focus on ensuring resil-

ience and continued availability of cost-efficient supplies at our

customer sites in a compliant, sustainable and ethical manner.

We do so by forming strategic partnerships with key suppliers

to drive economies of scale and innovative power for larger

procurement categories and by streamlining procurement

practices for our remaining procurement spend.

We have an organically diverse supply chain that contains large,

medium and small suppliers. Certain fundamental principles

aimed at preventing negative impacts are non-negotiable and

shall be adhered to by all suppliers, but for larger suppliers we

require practices and ambitions that go beyond.

We manage our supply chain through our global Procurement

function organised around procurement categories, opera-

tional geographies and supply chain-based risk assessments.

All suppliers in ISS’s supply chain are risk assessed to identify

and mitigate the ESG risks through a centralised vetting and

onboarding process. We continously monitor suppliers against

sanctions and watchlists to eliminate any such risks. Our supply

chain risk and assurance program ensures that the critical

supply chain is monitored for performance risks.

A sample number of critical suppliers are audited, through an

independent third-party agency, annually to close any gaps

identified on the ESG compliance requirements of ISS. For fur-

ther description of our supply chain engagement and practices

please refer to S2-4.

In the ISS Supplier Code of Conduct we specify our fundamen-

tal principles as well as the minimum requirements that all sup-

pliers must meet in order to do business with ISS. This includes

areas within ethical and responsible business conduct, social

sustainability & human rights and environmental sustainability

& climate action.

Our own procurement practices are described in our Supply

Chain Policy and further detailed in our Supply Chain & Procure-

ment standard. Our standard payment term for small business

suppliers is 30 days. For other suppliers our standard payment

term is “end of month + 95 days”. Payment terms are subject to

compliance with local statutory regulation on payment terms.

Each country operates a Procure-to-Pay system where purchas-

es are executed through purchase orders with service or goods

receipt confirmed.

Business is awarded to suppliers on the basis of four key award

criteria. Best value & financial benefits, compliance, supportive

of sustainability goals and driving strategic service outcomes.

In competitive sourcing processes environmental sustainability

must have a minimum of 20% weight in the award criteria.

G1-3

Prevention and detection of

corruption and bribery

Our procedures for managing allegations or incidents of

corruption and bribery follow similar principles as described

above under G1-1. Investigations are conducted by our Group

Internal Audit function and may involve internal and external

resources in doing so. Findings are reported to the Business

Integrity Committee and in turn to the Audit & Risk Committee.

Group Internal Audit is functionally separate from management

with the Head of Group Internal Audit reporting directly to the

Chair of the Audit & Risk Committee.

All employees including functions-at-risk employees are trained

in our Code of Conduct, which includes anti-corruption and

anti-bribery themes. We generally consider employees within

Procurement, Finance, Commercial, Key Account Management

and Executive Management (Group and Country) to be at-risk

functions in regard to corruption and bribery. 100% of these

functions are covered by training programmes.

On an ad-hoc basis in-depth training sessions on anti-corruption

and anti-bribery are conducted by our Legal function. Training

materials from these sessions are available to all ISS employees.

82

GOVERNANCE

Metrics & targets

G1-4

Incidents of corruption or bribery

During 2024 no legal entity within the ISS Group was convicted

or fined for violation of anti-corruption and anti-bribery laws.

Nor was any of our employees as far as we are aware convicted

or fined for violation of anti-corruption and anti-bribery laws in

their capacity as ISS employees.

We continuously monitor and refine our processes and

practices around anti-corruption and anti-bribery and all our

policies are subject to review annually or at regular specified

intervals. During 2024 we have substantiated one alleged

corruption and bribery incident that also resulted in employees

being dismissed or disciplined and strengthening of control

and policy frameworks.

Corruption and bribery (C&B) incidents

(Number) 2024

Conrmed incidents, number 1

Convictions for violations of anti-corruption

and anti-bribery laws 0

Fines, penalties and compensation

For violations of anti-corruption and anti-bribery laws 0

G1-6

Payment practices

Our standard payment terms are described above under G1-2.

We are subject to statutory payment regulation in many of our

operating geographies that often provide different payment

terms than our standards.

We capture details of payment terms and payments made in our

global spend management tool Sievo and we are able to track

payment history and profile on each of our 49,000 suppliers.

Our calculations of payment terms cover our 2024 spend and

more than 7.3 million invoices.

The average time to pay an invoice in 2024 was 48 days.

At the end of 2024 we did not have outstanding legal

proceedings for late payments to suppliers.

Payment practices

(Number, %) 2024

Average time (days) to pay an invoice 48

Payments aligned with standard payment terms (% of spend)

0-30 days 45%

31-60 days 31%

+60 days 23%

Other 1%

Outstanding legal proceedings for late payments 0

Reporting principles for Governance

G1-3: Functions-at-risk of corruption and

bribery

The functional areas of Procurement, Finance, Commer-

cial, Key Account Management and Executive Manage-

ment (Group and Country), including direct reports,

are considered as being “at-risk” functions across our

operational countries.

G1-4: Conrmed incidents of corruption

or bribery

Corruption and bribery cover incidents of abuse of

entrusted power by ISS employees in that capacity for

private gain, hereunder financial as well as non-finan-

cial advantages, as provided in the ISS Anti-Corruption

Policy. “Confirmed” means incidents that are assessed

internally, e.g. by the Business Integrity Committee to

be events of corruption or bribery or established so by a

final ruling from an external authority or final court deci-

sion. It does not cover incidents under investigation.

Incidents of corruption and bribery are recorded in our

Speak-Up system.

Employees being disciplined may include reprimands,

formal warnings, training requirements, reassignment,

and demotion.

G1-4: Convictions for violations of

anti-corruption and anti-bribery laws

Includes final unappealable convictions in criminal

proceedings against ISS or any ISS employee in their

capacity as an ISS employee for violations of anti-cor-

ruption and anti-bribery laws.

G1-4: Fines for violations of anti-corrup-

tion and anti-bribery laws

Final and unappealable fines imposed by competent au-

thorities for violations of anti-corruption and anti-brib-

ery laws by ISS or any ISS employee in their capacity as

an ISS employee.

G1-6: Average time to pay an invoice

Measures the number of days it takes to pay an invoice

from the time that the applicable payment term com-

mences. It is measured on an “invoice by invoice” level

and does not consider the value of each invoice.

The average time to pay an invoice is measured and

calculated in our global spend management system

“Sievo” and is made on invoice and payment data con-

solidated from local ERP systems across our countries

of operation.

G1-6: Payments aligned with standard

payment terms

Breaks down our supplier spend on applicable payment

terms in brackets of 0-30 days, 31-60 days and 60+

days. Data is captured in our global spend management

system “Sievo”.

G1-6 Legal proceedings outstanding

for late payments

Legal proceedings currently outstanding instigated with

a competent court by a supplier against an ISS entity

for late payment. It does not include disputes relating

to the quality, quantity or characteristics of the goods,

services or similar supplied to ISS.

83

List of datapoints that derive from other EU legislation

Section Data point

SFDR

reference

Pillar 3

reference

Benchmark

Regulation

reference

EU Climate

Law

reference

Material

(Yes/No) Section Page

ESRS 2 GOV-1 21 (d) Board’s gender diversity X X Yes General 42

ESRS 2 GOV-1 21 (e) Percentage of board members who are independent X Yes General 42

ESRS 2 GOV-4 30 Statement on due diligence X Yes General 41

ESRS 2 SBM-1 40 (d) i Involvement in activities related to fossil fuel activities X X X No - -

ESRS 2 SBM-1 40 (d) ii Involvement in activities related to chemical production X X No - -

ESRS 2 SBM-1 40 (d) iii Involvement in activities related to controversial weapons X X No - -

ESRS 2 SBM-1 40 (d) iv Involvement in activities related to cultivation and production of tobacco X No - -

ESRS E1-1 14 Transition plan to reach climate neutrality by 2050 X Yes Environment 68

ESRS E1-1 16 (g) Undertakings excluded from Paris-aligned Benchmarks X X No - -

ESRS E1-4 34 GHG emission reduction targets X X X Yes Environment 71

ESRS E1-5 38 Energy consumption from fossil sources disaggregated by sources (only high climate

impact sectors)

X Yes Environment 71

ESRS E1-5 37 Energy consumption and mix X Yes Environment 71

ESRS E1-5 43 Energy intensity associated with activities in high climate impact sectors X No - -

ESRS E1-6 44 Gross Scope 1, 2, 3 and Total GHG emissions X X X Yes Environment 72

ESRS E1-6 53-55 Gross GHG emissions intensity X X X Yes Environment 72

ESRS E1-7 56 GHG removals and carbon credits X No - -

ESRS E1-9 66 Exposure of the benchmark portfolio to climate-related physical risks paragraph X No - -

ESRS E1-9 66 (a)

66 (c)

Disaggregation of monetary amounts by acute and chronic physical risk

Location of significant assets at material physical risk

X No - -

ESRS E1-9 67 (c) Breakdown of the carrying value of its real estate assets by energy-efficiency X No - -

ESRS E1-9 69 Degree of exposure of the portfolio to climate-related opportunities paragraph X No - -

ESRS E2-4 28 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and

Transfer Register) emitted to air, water and soil

X No - -

ESRS E3-1 9 Water and marine resources X No - -

ESRS E3-1 13 Dedicated policy X No - -

ESRS E3-1 14 Sustainable oceans and seas X No - -

ESRS E3-4 28 (c) Total water recycled and reused X No - -

ESRS E3-4 29 Total water consumption in m

3

per net revenue on own operations X No - -

ESRS 2-IRO 1 – E4 16 (a) i - X No - -

ESRS 2-IRO 1 – E4 16 (b) - X No - -

ESRS 2-IRO 1 – E4 16 (c) - X No - -

ESRS E4-2 24 (b) Sustainable land / agriculture practices or policies X No - -

ESRS E4-2 24 (c) Sustainable oceans / seas practices or policies X No - -

ESRS E4-2 24 (d) Policies to address deforestation paragraph X No - -

ESRS E5-5 37 (d) Non-recycled waste X No - -

OTHER 84

Section Data point

SFDR

reference

Pillar 3

reference

Benchmark

Regulation

reference

EU Climate

Law

reference

Material

(Yes/No) Section Page

ESRS E5-5 39 Hazardous waste and radioactive waste X No - -

ESRS 2-SBM3 – S1 14 (f) Risk of incidents of forced labour X Yes Social 52

ESRS 2-SBM3 – S1 14 (g) Risk of incidents of child labour X Yes Social 52

ESRS S1-1 20 Human rights policy commitments X Yes Social 52

ESRS S1-1 21 Due diligence policies on issues addressed by the fundamental International Labour Organisation

Conventions 1 to 8

X Yes Social 52

ESRS S1-1 22 Processes and measures for preventing trafficking in human beings X Yes Social 52

ESRS S1-1 23 Workplace accident prevention policy or management system X Yes Social 52

ESRS S1-3 32 (c) Grievance/complaints handling mechanisms X Yes Social 53

ESRS S1-14 88 (b) and (c) Number of fatalities and number and rate of work-related accidents X X Yes Social 60

ESRS S1-14 88 (e) Number of days lost to injuries, accidents, fatalities or illness X Yes Social 60

ESRS S1-16 97 (a) Unadjusted gender pay gap X X Yes Social 61

ESRS S1-16 97 (b) Excessive CEO pay ratio X Yes Social 61

ESRS S1-17 103 (a) Incidents of discrimination X Yes Social 61

ESRS S1-17 104 (a) Non-respect of UNGPs on Business and Human Rights and OECD guidelines X X Yes Social 64

ESRS 2-SBM3 – S2 11 (b) Significant risk of child labour or forced labour in the value chain X Yes General 45

ESRS S2-1 17 Human rights policy commitments X Yes Social 52, 64

ESRS S2-1 18 Policies related to value chain workers X X Yes Social 64

ESRS S2-1 19 Non-respect of UNGPs on Business and Human Rights and OECD guidelines X X Yes Social 64

ESRS S2-1 19 Due diligence policies on issues addressed by the fundamental International Labour

Organisation Conventions 1 to 8

X Yes Social 64

ESRS S2-4 36 Human rights issues and incidents connected to its upstream and downstream value chain X Yes Social 64

ESRS S3-1 16 Human rights policy commitments X No

ESRS S3-1 17 Non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines X X No

ESRS S3-4 36 Human rights issues and incidents X No

ESRS S4-1 16 Policies related to consumers and end-users X Yes Social 66

ESRS S4-1 17 Non-respect of UNGPs on Business and Human Rights and OECD guidelines X X No

ESRS S4-4 35 Human rights issues and incidents X No

ESRS G1-1 10 (b) United Nations Convention against Corruption X No

ESRS G1-1 10 (d) Protection of whistleblowers X No

ESRS G1-4 24 (a) Fines for violation of anti- corruption and anti-bribery laws X X Yes Governance 83

ESRS G1-4 24 (b) Standards of anti-corruption and anti-bribery X No

OTHER 85

CONSOLIDATED FINANCIAL STATEMENTS 86

Primary financial statements 87

Statement of profit or loss 87

Statement of comprehensive income 88

Statement of cash flows 89

Statement of financial position 90

Statement of changes in equity 91

Significant events 92

Significant estimates and judgements 93

1 Operating profit 95

1.1

Segments

95

1.2 Revenue 97

1.3 Employee costs 103

1.4 Other income and expenses, net 104

2 Operating assets, liabilities and free cash flow 105

2.1 Trade receivables and credit risk 105

2.2 Other receivables 107

2.3 Other liabilities 108

2.4 Changes in working capital 108

2.5 Provisions, contingencies, guarantees and commitments 109

2.6 Right-of-use assets, property and equipment 115

2.7 Free cash flow 119

3 Strategic investments and divestments 120

3.1 Intangible assets 120

3.2 Impairment tests 122

3.3 Acquisitions

127

3.4 Discontinued operations and divestments 129

4 Capital structure 132

4.1 Equity 132

4.2 Financing 136

4.3

Financial risk management 138

4.4 Interest rate risk

139

4.5 Liquidity risk 141

4.6 Currency risk 143

5 Tax 145

5.1 Income tax 145

5.2

Deferred tax 147

6 Remuneration

149

6.1 Management remuneration 149

6.2 Share-based payments 150

7 Other required disclosures 155

7.1 Pensions and similar obligations 155

7.2 Hyperinflation in Türkiye 161

7.3 Related parties 164

7.4 Fees to auditors 164

7.5

Subsequent events 164

8 Basis of preparation 165

8.1 Other material accounting policies 165

8.2 In-year changes

166

8.3 New regulations 167

8.4 Group companies 168

8.5 Definitions 170

CONSOLIDATED FINANCIAL STATEMENTS 87

Statement of profit or loss

1 January – 31 December

(DKKm) 2024 2023

Revenue 1.1, 1.2 83,782

78,702

Employee costs 1.3 (52,069) (48,847)

Consumables (7,519) (7,323)

Other operating expenses (17,968) (17,079)

Depreciation and amortisation 2.6, 3.1 (1,349) (1,303)

Operating profit before other items 4,877 4,150

Other income and expenses, net 1.4 (151) (90)

Royalty (1,097) (1,110)

Amortisation/impairment of customer contracts

3.1 (91) (69)

Operating profit 1.1 3,538 2,881

Finance income 4.2 616

397

Finance costs 4.2 (975) (807)

Profit before tax 3,179 2,471

Income tax 5.1 (573) (455)

Net profit from continuing operations 2,606

2,016

Net profit from discontinued operations 3.4

(59) (1,725)

Net profit 2,547 291

Attributable to:

The owner of ISS Global A/S 2,539

245

Non-controlling interests

8

46

Net profit 2,547 291

Note

CONSOLIDATED FINANCIAL STATEMENTS 88

Statement of comprehensive income

1 January – 31 December

(DKKm) Note 2024

2023

Net profit

2,547 291

Items that will not be reclassified to profit or loss:

Remeasurement gain/(loss), defined benefit plans 7.1

(140) (462)

Asset ceiling, defined benefit plans 7.1

(28) 299

Tax 5.2

36 33

Items that may be reclassified to profit or loss:

FX adjustments of foreign entities 4.1

12 (438)

Recycling of accumulated FX adj., country exits 4.1

- (6)

Hyperinflation restatement of equity at 1 January 7.2

477 467

Fair value adjustments of net investment hedges 4.1

- (84)

Other comprehensive income

357 (191)

Comprehensive income

2,904 100

Attributable to:

The owner of ISS Global A/S

2,763 73

Non-controlling interests

141 27

Comprehensive income

2,904

100

CONSOLIDATED FINANCIAL STATEMENTS 89

Statement of cash flows

At 31 December

(DKKm) Note 2024 2023

Operating profit before other items 4,877 4,150

Operating profit before other items from discontinued operations 3.4 (32)

(146)

Depreciation and amortisation 2.6, 3.1 1,349

1,350

Non-cash items related to hyperinflation

7.2 (80)

(90)

Share-based payments 51 42

Changes in working capital 2.4 (408) 219

Changes in provisions, pensions and similar obligations (377) (473)

Other expenses paid (59) (42)

Interest received from companies within the ISS Group 257 203

Interest received 204 122

Interest paid from companies within the ISS Group (73) (11)

Interest paid (634) (575)

Income tax paid (424) (394)

Payments related to royalties (1,124) (1,071)

Cash flow from operating activities

3,527

3,284

Acquisitions 3.3 (510) (373)

Divestments 3.4 (350) 25

Acquisition of intangible assets, property and equipment (513) (569)

Disposal of intangible assets, property and equipment 15

16

Change in financial assets (54) 9

Cash flow from investing activities (1,412) (892)

Proceeds from issued bonds 4.2 3,696 -

Repayment of bonds 4.2 (2,237) -

Repayment of lease liabilities 4.2 (951) (778)

Other financial payments, net 4.2 (259) (144)

Changes in debt to companies within the ISS Group, net (1,757)

(29)

Changes in receivables from companies within the ISS Group, net 179

(371)

Transactions with non-controlling interests - (6)

Cash flow from financing activities (1,329) (1,328)

Total cash flow 786 1,064

Cash and cash equivalents at 1 January 6,093 5,166

Total cash flow 786 1,064

Foreign exchange adjustments (50) (137)

Cash and cash equivalents at 31 December

4.2, 4.5

6,829 6,093

Free cash flow 2.7 1,916 1,819

CONSOLIDATED FINANCIAL STATEMENTS 90

Statement of financial position

At 31 December

(DKKm) Note 2024 2023

Assets

Intangible assets 3.1, 3.2 17,632 16,569

Right-of-use assets 2.6 2,388

2,153

Property and equipment

2.6 979

901

Receivables from companies within the ISS Group 5,613 3,821

Deferred tax assets 5.2 821 916

Other financial assets 7.1.4 600 189

Non-current assets 28,033 24,549

Inventories 251 239

Trade receivables 2.1 12,449 11,354

Tax receivables 121 119

Receivables from companies within the ISS Group 219

220

Other receivables 2.2 1,651 1,494

Cash and cash equivalents 4.2, 4.5 6,829 6,093

Assets held for sale 3.4 - 698

Current assets 21,520 20,217

Total assets 49,553 44,766

Equity and liability

Equity attributable to the owner of ISS Global A/S 4.1 9,260

6,497

Non-controlling interests 4.1 770

629

Total equity 10,030

7,126

Borrowings 4.2 13,553

13,386

Pensions and similar obligations 7.1

1,316

1,135

Deferred tax liabilities

5.2 436

603

Provisions 2.5 372 387

Non-current liabilities 15,677 15,511

Borrowings 4.2 4,951 3,299

Trade and other payables 4.5 7,235 7,000

Tax payables 384 155

Other liabilities 2.3 11,047 9,967

Provisions 2.5 229 359

Liabilities held for sale 3.4 - 1,349

Current liabilities 23,846 22,129

Total liabilities 39,523 37,640

Total equity and liabilities 49,553 44,766

CONSOLIDATED FINANCIAL STATEMENTS 91

Statement of changes in equity

1 January – 31 December

(DKKm)

Note

Share

capital

Retained

earnings

Trans-

lation

reserve

Total

Non-con-

trolling

interests

Total

equity

2024

Equity at 1 January

180 6,985 (668) 6,497 629 7,126

Net profit - 2,539 - 2,539 8 2,547

Other comprehensive income 4.1 - (88) 312 224 133 357

Comprehensive income -

2,451

312 2,763 141 2,904

Changes in equity -

2,451

312 2,763 141 2,904

Equity at 31 December 180 9,436 (356) 9,260 770 10,030

2023

Equity at 1 January

180 6,841 (597) 6,424 602 7,026

Net profit -

245

-

245 46

291

Other comprehensive income 4.1 -

(101) (71) (172) (19) (191)

Comprehensive income -

144 (71) 73 27 100

Changes in equity - 144 (71) 73 27 100

Equity at 31 December

180 6,985 (668) 6,497 629 7,126

Attributable to the owner of ISS Global A/S

CONSOLIDATED FINANCIAL STATEMENTS 92

Significant events

Interest rates increased in the majority of our countries, and inflation remained relatively high, the latter touching certain aspects

of our business, such as increasing our cost base, mainly because of increasing minimum wages and collective wage agreements.

To mitigate the effect, we continued to utilise the price adjustment mechanisms in our customer contracts.

In preparing these consolidated financial statements, we considered these impacts when making accounting estimates, most

significantly in relation to:

The macroeconomic environment continued to be volatile and create uncertainty in 2024.

• Impairment tests, 3.2

• Pensions and similar obligations, 7.1

• Hyperinflation in Türkiye, 7.2

Türkiye also continued to be considered a hyperinflationary economy and eligible for accounting in accordance with IAS 29.

Continued uncertainty

In 2024, the Group’s performance and financial position was particularly affected by the significant events (and transactions)

highlighted below. A detailed review of the Group’s performance is provided in the Management’s review on pp. 6-17.

Macroeconomic environment

France

DTAG

Arbitration process

As previously informed, ISS and Deutsche Telekom (DTAG) have certain contractual disagreements. In December 2022, ISS has

initiated the establishment of an Arbitration Tribunal under the German Institute of Arbitration (DIS) to decide on these

disagreements. The final oral hearing in the arbitration proceedings is scheduled to take place in mid July 2025. ISS and DTAG have

exchanged claims against each other, but the outcome of the proceedings remains uncertain.

Management has carefully considered the various aspects of the dispute in making their estimates and judgements, mainly in

relation to receivables, provisions and contingent liabilities.

See 2.5, Provisions, contingencies, guarantees and commitments for further details.

Divestment completed

On 22 December 2023, ISS signed an agreement to divest ISS France to Onet SA, a French facility services company. The

divestment was completed on 9 April 2024.

Net profit generated in ISS France up until the completion of the divestment amounted to DKK (52) million, see the specification in

3.4.1, Discontinued operations.

CONSOLIDATED FINANCIAL STATEMENTS 93

Significant estimates and judgements

1.2 Revenue

2.5 Provisions

3.2

Goodwill and

customer contracts

5.2 Deferred tax

7.1

Pensions and similar

obligations

1.2

Revenue

2.2

Other receivables

2.5 Provisions

2.6

Right-of-use assets

3.1 Intangible assets

7.2

Hyperinflation in

Türkiye

Large and complex IFS contracts:

• Determining the transaction price, including the impact of scope changes (contract modifications)

Large and complex IFS contracts:

• Assessment of contractual terms and impact on transaction price

Estimate of future profitability and likely outcomes:

• Onerous contracts

• Claims, disputes and legal proceedings

Accounting estimates

• Price index – assessment of which approach to apply in calculating the conversion factor when

restating for hyperinflation, i.e. average year-to-date or average month-to-date

• Cloud-based arrangements – assessment of control and whether configuration/customisation

costs result in an intangible assets

• Software (owned) – capitalisation of configuration/customisation costs

• Lease term – determining whether extension options are reasonably certain to be exercised

• Large and complex IFS contracts – assessment of risks and disputes

• Onerous contracts – assessment of termination and extension options

• Transition and mobilisation costs – assessment of capitalisation criteria (generating or enhancing

resources to be used in satisfying performance obligations and are expected to be recovered)

• Impact from key assumptions such as salary levels, interest rates, inflation,

mortality and guaranteed benefits

Key assumptions applied for the purpose of impairment testing:

• Recoverable amounts of CGUs

• Financial forecasts of future taxable profit impacting recognised deferred tax asset

• Uncertain tax positions – estimate of the amount required to settle the obligation

Accounting judgements

CONSOLIDATED FINANCIAL STATEMENTS 94

Making judgements, estimates and assumptions

Climate-related matters

- no material impact

As a result, it is management’s assessment, that climate-related matters 1) will not have a significant impact on the Group’s going

concern assessment, or in the long term (next five years); and 2) did not have a material impact on the Group’s significant

accounting estimates and assumptions applied in these consolidated financial statements.

Generally, we do not believe that our profitability, cash flow generation or asset base is significantly exposed to climate risk, which

is based on our general ability to pass on cost increases to customers as evidenced by our relative historic margin stability and on

the fact that we are an asset-light operation with low operational investment needs.

The preparation of the Group’s consolidated financial statements required management to make judgements, estimates and

assumptions that affected the reported amounts of assets, liabilities, income and expenses, the accompanying disclosures,

including contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a

material adjustment to the carrying amount of assets or liabilities in future periods.

Estimates and assumptions are reviewed on an ongoing basis and have been prepared taking macroeconomic and geopolitical

developments into consideration as well as climate-related matters, but still ensuring that one-off effects which are not expected to

exist in the long term do not affect estimation and determination of these key factors, including discount rates and expectations

for the future.

In preparing the Group’s consolidated financial statements, management considered the impact of climate matters and related

risks in relation to 1) the going concern assessment; and 2) applying significant estimates and assumptions. This included both

transitional risks in the form of increased costs incurred as part of transitioning toward a more sustainable economy, and physical

risks due to specific weather events.

CONSOLIDATED FINANCIAL STATEMENTS 95

Operating profit

1.1 Segments

1.1.1 Operating segments

2024

(DKKm)

Northern

Europe

Central &

Southern

Europe

Asia &

Pacific

Americas

Other

countries

Total

segments

Unall./

IC elim

Group

Revenue, excl. IAS 29

31,328 27,159 14,403 9,407 767

83,064

(38)

83,026

Revenue

31,328 27,915 14,403 9,407 767 83,820 (38) 83,782

Employee costs (18,239)

(18,686)

(9,928)

(4,733)

(176) (51,762) (307) (52,069)

Depreciation and amortisation

(560) (520) (141)

(109)

(4)

(1,334) (15) (1,349)

Operating profit before other

items, excl. IAS 29

1,803 1,867 1,032 547 30 5,279 (390) 4,889

Operating profit before other items

1,803

1,855

1,032 547 30 5,267 (390)

4,877

Operating margin, excl. IAS 29 5.8% 6.9% 7.2% 5.8% 3.9% 6.4% -

5.9%

Operating margin 5.8% 6.6% 7.2% 5.8% 3.9% 6.3% - 5.8%

Other income and expenses, net 6 (43) (2) (60) - (99)

(52) (151)

Royalty (398) (338)

(240) (121) - (1,097)

- (1,097)

Amortisation/impairment of

customer contracts

(14) (60) - (17) - (91) - (91)

Operating profit 1,397 1,414

790 349 30 3,980

(442) 3,538

2023

Revenue, excl. IAS 29 29,324 24,807

14,229 9,605 783 78,748

(44) 78,704

Revenue 29,324 24,805 14,229

9,605 783 78,746 (44)

78,702

Employee costs (17,033) (16,388) (10,090)

(4,822) (251) (48,584) (263)

(48,847)

Depreciation and amortisation (543) (493) (132)

(121) (4) (1,293) (10) (1,303)

Operating profit before other

items, excl. IAS 29

1,572 1,487 875 489 48 4,471 (273) 4,198

Operating profit before other items

1,572 1,439 875 489

48 4,423 (273) 4,150

Operating margin, excl. IAS 29

5.4% 6.0% 6.1% 5.1% 6.1% 5.7% - 5.3%

Operating margin 5.4% 5.8% 6.1% 5.1% 6.1% 5.6% - 5.3%

Other income and expenses, net -

(43) 15 (4) - (32) (58) (90)

Royalty (413) (344) (247) (108) 2 (1,110) - (1,110)

Amortisation/impairment of

customer contracts

(13) (37) (2) (17) - (69) - (69)

Operating profit 1,146

1,015 641 360 50 3,212 (331) 2,881

ISS is a leading, global provider of workplace and facility service solutions operating in ~30 countries. Operations and business

performance are generally managed based on a geographical structure in which countries are grouped into four regions. These

regions make up the Group’s reportable segments.

The regions have been identified based on a key principle of grouping countries that share market conditions and cultures.

Countries where we do not have a full country-based support structure (global managed services) are combined in a separate

segment “Other countries”.

An overview of the grouping of countries into regions is presented in 8.4, Group companies.

CONSOLIDATED FINANCIAL STATEMENTS 96

1.1 Segments (continued)

1.1.2 Geographical distribution

(DKKm) 2024 2023 2024

2023

UK & Ireland 11,939 10,611 2,314

2,218

Switzerland 7,052 6,383 2,300

2,010

US & Canada

6,870 7,004

2,481

2,368

Türkiye 6,622

4,833 1,929 1,525

Germany 5,713

5,864 1,498 993

Australia & New Zealand 5,279 5,102 1,301 1,331

Spain 5,136 4,460 1,786 1,644

Denmark (country of domicile) 3,224 2,994 820 806

Other countries

2)

31,947 31,451 12,783 10,738

Total

83,782 78,702

27,212

23,633

1)

Excluding deferred tax assets.

2)

Including unallocated items and eliminations.

Accounting policy

Non-current assets

1)

Revenue

The geographical distribution of segment revenue and non-current assets is based on the geographical location of the individual

subsidiary rendering the service. Significant countries are defined as countries representing more than 5% of Group revenue as

well as the domicile country, Denmark. No customer comprises more than 10% of Group revenue.

The segments are managed by the EGM primarily based on business performance measured by Operating profit. Segment

revenue and costs comprise items that are directly attributable to the individual segments. Unallocated items mainly consist of

revenue and cost relating to the Group’s corporate functions. Decisions on financing (finance income or finance costs) and tax

planning (income tax) are managed at Group level and are therefore not managed and allocated to segments.

Segment revenue is presented including internal revenue which due to the nature of the business is insignificant and therefore

not disclosed.

The Group’s four reportable segments reflect the geographical and strategic management, decision and reporting structure

applied by the Executive Group Management (EGM).

CONSOLIDATED FINANCIAL STATEMENTS 97

1.2 Revenue

Capitalised transition and mobilisation costs are presented in 2.2, Other receivables.

1.2.1 Commercial models

1.2.2 Disaggregation

The Group’s revenue is generated from rendering of workplace and facility service solutions to more than 40,000 customers. Our

services are provided on a daily basis at our customers sites, largely by our own employees (placemakers) given our self-delivery

business model. Subcontractors are only used to a limited extent and primarily for delivery of highly specialised services (e.g. within

technical) and/or infrequently delivered services.

Our contracts are individually negotiated with each customer based on their specific needs. Despite individuality in contracts, we

do however generally operate based on variations of the following three commercial models:

1) Fixed price contracts;

2) Cost-plus contracts; and

3) Cost-plus variations (typically capped)

Aligned with our strategy, we disaggregate revenue from contracts with customers based on:

• Revenue base (portfolio vs. projects and above-base)

• Customer category

• Customer segment

• Core services

Determining the transaction price varies depending on the model as described in Accounting policies. However, they all include

mechanisms to adjust prices due to a) inflation and regulatory changes and b) scope changes. These contractual mechanisms,

along with strong and well-embedded processes for implementing such adjustments, are essential in mitigating the risk of

contracts becoming onerous due to e.g. changing customer needs, macroeconomic or regulatory events etc.

The overview on the next page illustrates the relationship between disaggregation of revenue and revenue per reportable

segments.

The vast majority of our revenue is portfolio revenue 84% (2023: 84%), which means that revenue is contractually agreed

(committed) with the customer at contract inception. With initial contract terms typically of 3-5 years, this revenue base offers a

relatively high stability and predictability. The remaining part of our revenue is non-recurring (not committed) in the form of

projects and above-base work (e.g. capital projects, events, etc.), which is demanded on a non-recurring basis and agreed

separately with the customer.

The distribution of revenue among our portfolio and above-base, customer category, customer segment and services within the

regions is largely the same as the overall distribution for the Group. However, in Americas, the share of food services is relatively

higher and healthcare significantly lower than compared to the rest of the Group.

Start-up of new key account contracts often requires ISS to incur significant transition and mobilisation costs (costs to fulfil a

contract) before service delivery commences in order to be able to fulfil the performance obligations under the contracts.

CONSOLIDATED FINANCIAL STATEMENTS 98

1.2 Revenue (continued)

Disaggregation of revenue

2024

(DKKm)

Northern

Europe

%

Central &

Southern

Europe

%

Asia &

Pacific

% Americas %

Other

coun-

tries

Unall./

IC

elim.

Total

%

Revenue base

Portfolio

25,189

80% 23,574 84% 12,998 90% 7,795 83% 513

(23)

70,046

84%

Projects and above-base work 6,139

20% 4,341 16% 1,405 10% 1,612 17% 254 (15) 13,736 16%

Total 31,328

100%

27,915

100%

14,403

100%

9,407

100%

767 (38)

83,782

100%

Customer category

Key accounts 22,694

73% 18,134

65% 10,299 72% 7,433 79% 759 (36) 59,283 71%

Large and medium 6,688

21% 8,425 30% 3,235 22% 1,958 21% - - 20,306 24%

Small and route-based 1,946

6% 1,356

5%

869

6% 16 0% 8 (2) 4,193 5%

Total 31,328

100% 27,915

100%

14,403

100% 9,407 100% 767 (38) 83,782 100%

Customer segments

Office-based 13,436

43% 11,096

40% 4,465 31% 3,951 42% 378 (32)

33,294

40%

Production-based 6,209

20% 6,057

22% 3,245 22% 3,397 36% 354 (6) 19,256 23%

Healthcare 4,693 15% 4,291 15% 3,112 22% 103 1% - - 12,199 14%

Other 6,990 22% 6,471 23% 3,581

25% 1,956 21% 35 -

19,033

23%

Total 31,328

100%

27,915

100%

14,403

100%

9,407

100%

767 (38)

83,782

100%

Core services

Cleaning 13,090

42% 12,697

45% 6,808 47% 2,253 24% 102 (19)

34,931

42%

Technical 7,408 24% 8,241

30% 1,157 8% 2,487 26% 140

(16) 19,417 23%

Food 5,720 18%

2,554

9% 1,234 9% 3,436 37% 57

(1) 13,000 15%

Other 5,110 16% 4,423

16% 5,204 36% 1,231 13% 468

(2) 16,434 20%

Total 31,328 100% 27,915

100% 14,403 100% 9,407 100% 767

(38) 83,782 100%

CONSOLIDATED FINANCIAL STATEMENTS 99

1.2 Revenue (continued)

2023

(DKKm)

Northern

Europe

%

Central &

Southern

Europe

%

Asia &

Pacific

% Americas %

Other

coun-

tries

Unall./

IC

elim.

Total %

Revenue base

Portfolio 23,731

81%

20,426 82% 12,585 88% 8,484 88% 525 (20) 65,731 84%

Projects and above-base work 5,593

19% 4,379 18% 1,644 12% 1,121 12% 258 (24) 12,971 16%

Total 29,324

100% 24,805

100%

14,229 100% 9,605 100% 783 (44) 78,702 100%

Customer category

Key accounts 20,690

70% 16,995 68% 10,182 72% 7,660 80% 772 (25)

56,274

71%

Large and medium 6,631

23% 6,918 28% 3,187 22% 1,926 20% -

(17)

18,645

24%

Small and route-based 2,003

7% 892 4% 860 6% 19 0% 11 (2) 3,783 5%

Total 29,324

100% 24,805 100% 14,229 100% 9,605 100% 783 (44) 78,702

100%

Customer segments

Office-based 12,052

41% 9,991

40%

4,424

31% 3,822 40% 442 (41) 30,690 39%

Production-based

5,957 20% 5,742 23%

3,349

23%

3,578 37%

283

(3) 18,906 24%

Healthcare

4,496 16% 3,290 13% 3,074 22% 91 1% - - 10,951 14%

Other

6,819 23% 5,782 24% 3,382 24% 2,114 22% 58 - 18,155 23%

Total 29,324 100% 24,805

100% 14,229 100% 9,605 100% 783

(44) 78,702 100%

Core services

Cleaning 12,535 43% 10,930

44% 7,277 51% 2,285 24% 186

(43) 33,170 42%

Technical 6,735 23%

7,861

32% 1,229 9% 2,310 24% 152

1 18,288 23%

Food 5,250 18% 2,007 8% 1,165

8% 3,532 37% 51 (8)

11,997 15%

Other 4,804 16% 4,007 16% 4,558 32% 1,478 15% 394 6 15,247 20%

Total 29,324 100% 24,805 100% 14,229 100% 9,605 100% 783 (44) 78,702 100%

CONSOLIDATED FINANCIAL STATEMENTS 100

1.2 Revenue (continued)

1.2.3 Revenue backlog

(DKKm)

2024 2023

< 1 year 23,510 35% 20,793 33%

1-5 years 36,182 54% 35,356 56%

> 5 years 7,553 11% 7,463 11%

Total 67,245 100% 63,612 100%

As a result, the amounts disclosed in the maturity table is significantly lower than reported revenue and will likely not reflect the

degree of certainty in future revenue (and cash inflows) to the Group. Therefore, as a supplement, in the management review, p. 9,

a maturity overview for our largest key accounts (> DKK 200 million of annual revenue) is presented.

Our revenue base consists of a mix of yearly contracts, which are renewed tacitly, and thousands of multi-year contracts, the

majority of which have an initial term of 3-5 years. Contracts regularly include options for the customer to terminate for

convenience within 3-9 months. However, both for key accounts and others, we maintain a high retention rate of 93%, supporting

that these options are rarely exercised.

The vast majority of our revenue is portfolio revenue, see 1.2, Revenue. The remaining part is non-recurring in the form of projects

and above-base work (not committed) and thus, excluded from the revenue backlog. In addition, the Group has excluded contracts

with a term of less than 12 months and contracts where the Group invoices a fixed amount for each hour of service provided.

CONSOLIDATED FINANCIAL STATEMENTS 101

1.2 Revenue (continued)

Accounting policy

Transaction price Our customer contracts are based on three commercial models:

All three models include mechanisms to adjust the transaction price for a) inflation and regulatory changes and b) scope changes

(contract modifications).

For fixed price contracts the transaction price stated in the contract is based on a fixed amount for the agreed services.

For cost-plus contracts the transaction price is determined based on actual costs incurred with the addition of an agreed

markup/management fee. In addition, the transaction price may include a variable consideration element determined based on

achievement of certain defined key performance indicators (KPIs). Variable consideration is assessed on a contract-by-contract

basis on a recurring basis in alignment with the customer, and is measured based on the most likely amount management expects

ISS to be entitled to.

For cost-plus variations, determining the transaction price is similar to the cost-plus (including variable consideration), however

typically with a cap, i.e. if ISS’s actual costs exceed a guaranteed maximum price (GMP), the consideration is reduced to the GMP.

Determining the transaction price requires assessment of which costs may be included in the calculation basis and if relevant,

whether within the capped maximum.

Recognition Revenue from contracts with customers is recognised when control of the services is transferred to the customer.

Control is transferred over time as the customer simultaneously receives and consumes the benefits provided by the Group.

Revenue is recognised based on the actual services provided in the reporting period as a proportion of the total services to be

provided. This is determined based on the actual labour hours and costs expensed relative to the total expected labour hours and

costs to complete the service. Estimates of labour hours and costs or extent of progress toward completion are revised if

circumstances change. Any resulting increases or decreases in estimated revenues or costs are reflected in profit or loss in the

period in which the circumstances that give rise to the revision become known by management.

Contract modifications are accounted for going forward with no impact on recognised revenue up to the date of modification.

Variable consideration is recognised as services are performed to the extent that it is highly probable that the amount will not be

subject to significant reversal.

Customers are invoiced on a monthly basis in accordance with contractual terms, and payment terms are agreed on an individual

basis.

1) Fixed price contracts;

2) Cost-plus contracts; and

3) Cost-plus variations (typically capped)

Inflation and regulatory adjustments are typically implemented annually based on the actual development in salaries/minimum

wages or cost of consumables (e.g. food) based on changes to a price index.

In addition to these general adjustment mechanisms applicable for all commercial models, the differences between models in

determining the transaction price are highlighted below.

Scope changes regularly occur, particularly for key account customers, to ensure that service solutions reflect our customers’

current needs. Such modifications are generally agreed with the customer in advance as per a specified change management

procedure in the contract.

CONSOLIDATED FINANCIAL STATEMENTS 102

Accounting policy (continued)

Accounting estimates and judgements

Due to our strategic focus on key accounts, our customer base contains a number of large and complex IFS contracts in terms of

determining the transaction price, including the impact of scope changes (contract modifications).

Management makes detailed assessments of the contractual terms and on that basis estimates the amount of revenue expected

to be received based on services delivered, including an assessment of the probability of such amount being reversed

subsequently.

For large and global complex contracts, the outcome may vary significantly, should the judgements and assumptions applied by

management in their assessments not be realised as expected.

1) engages with the customer before and after the services are provided, and takes the responsibility for fulfilment

of services according to the contract;

2) has discretion in establishing the price for the agreed services;

3) selects and engages with the subcontractor; and

4) agrees changes to services directly with the customer.

Gross or net presentation Our strategy and business model are based on delivery of integrated facility services (IFS) to our

customers with ISS carrying the responsibility and risks related to the services provided. The Group has generally concluded that it

is the principal in its revenue arrangements, and consequently as a main rule recognises revenue on a gross basis.

In arrangements where ISS uses subcontractors, the Group assesses on a contract-by-contract basis, whether ISS is the principal

or ISS is acting as the agent. The assessment is based on whether ISS controls the services before transferring them to the

customer.

Typically, when the Group has concluded that ISS controls the services and is the principal, ISS:

CONSOLIDATED FINANCIAL STATEMENTS 103

1.3 Employee costs

(DKKm)

2024 2023

Wages and salaries 42,012 39,281

Social security costs 8,524

8,127

Pensions 7.1 1,482

1,397

Share-based payments

6.2

51

42

Total 52,069 48,847

Average number of employees

1)

327,557 334,627

1)

Excluding France.

Government grants

In 2024, the Group recognised government grants of DKK 178 million (2023: DKK 184 million) in the form of wage subventions,

which have been recognised as a reduction of employee costs. The grants compensated the Group primarily for social security,

wage increases as well as for employing certain categories of employees such as trainees, disabled persons, long-term

unemployed and employees in certain age groups.

Note

In 2024, employee costs comprised 66% of the total operating costs (2023: 66%).

Our strategy is based on self-delivery of our services by our placemakers. They are our key resource and fundamental to our value

creation.

Our business model is asset-light and therefore employee costs is our single largest cost category.

CONSOLIDATED FINANCIAL STATEMENTS 104

1.4 Other income and expenses, net

(DKKm) 2024 2023

Gain on divestments 9 16

Other income 9 16

Loss on divestments (64) (32)

Acquisition and integration costs (32) (16)

Other (64) (58)

Other expenses (160) (106)

Other income and expenses, net (151) (90)

Accounting policy

Other income and expenses, net consists of recurring and non-recurring items that management does not consider to be part of

the Group’s ordinary operating activities, i.e. divestment gains and losses, remeasurement of disposal groups classified as held

for sale, the winding-up of operations, disposal of property as well as acquisition and integration costs.

Loss on divestments mainly related to an adjustment of the deferred consideration for the Specialized Services business in the

US, which was divested in 2021. In 2023, the loss mainly related to divestments in Spain.

Acquisition and integration costs related to the Group’s acquisitions in Spain, Switzerland and Austria. Of the total amount, DKK

10 million was acquisition costs (2023: DKK 8 million).

Other income and expenses, net are presented separately from the Group’s ordinary operating activities as management

believes that this best reflects the Group’s financial performance.

Other comprised mainly remeasurement of the contingent consideration related to the transaction in Türkiye in 2021.

CONSOLIDATED FINANCIAL STATEMENTS 105

SECTION 2

Operating assets, liabilities and free cash flow

2.1 Trade receivables and credit risk

2024 2023

(DKKm)

Gross

Expected

credit losses

Carrying

amount

Gross

Expected

credit losses

Carrying

amount

Central & Southern Europe 5,371 (45) 5,326 4,481 (30) 4,451

Northern Europe 3,879 (67) 3,812 3,632 (59) 3,573

Asia & Pacific 2,113 (30) 2,083 2,072 (30)

2,042

Americas 1,105 (12) 1,093 1,194 (8)

1,186

Other countries

135 - 135 102 -

102

Total 12,603 (154) 12,449 11,481 (127) 11,354

Not past due 11,285

(4) 11,281 10,148 (1) 10,147

Past due 1 to 60 days 754 (6) 748 878 (2) 876

Past due 61 to 180 days 120

(11) 109 220 (40) 180

Past due 181 to 360 days

89 (37)

52

113 (28)

85

More than 360 days 355 (96) 259

122 (56) 66

Total 12,603 (154) 12,449 11,481 (127)

11,354

Expected credit losses

(DKKm)

2024 2023

At 1 January (127) (124)

FX adjustments (2) 4

Acquisitions

(18)

(5)

Additions (68)

(86)

Unused amounts reversed

40 52

Unrecoverable amounts written off 21 18

Reclass to Assets held for sale -

14

At 31 December

(154)

(127)

Development in 2024

In 2024, trade receivables increased to DKK 12,449 million (2023: DKK 11,354 million) generally as a result of organic growth

driven by price increases and higher activity levels at customer sites across the Group as well as acquisitions in Switzerland and

Spain. In addition, the increase was driven by Türkiye, where payment cycles are longer than Group average, and by adverse

timing effects of certain payments relating to the contractual dispute with Deutsche Telekom.

Commercial use of factoring with certain large key account customers and participation in certain customers’ supply chain finance

arrangements was DKK 1.53 billion (2023: DKK 1.45 billion) at 31 December 2024. The development reflected increasing revenue

from key account customers, where invoices, as per the Group’s factoring policy, are eligible for factoring.

Expected credit losses comprised 1.2% (2023: 1.1%) of trade receivables (gross) and trade receivables not past due was 90% of

trade receivables (gross) (2023: 88%).

CONSOLIDATED FINANCIAL STATEMENTS 106

2.1 Trade receivables and credit risk (continued)

Credit risk

- low exposure

Risk management

Accounting policy

Factoring and participation in customers’ supply chain finance arrangements (together referred to as factoring) are mainly used to

optimise cash collection and to finance working capital impacts related to growth with certain key account customers, including

from general pressure for longer payment terms and necessary investments in transition and mobilisation of such contracts.

Trade receivables subject to factoring are derecognised when the derecognition criteria are met and the substantial risks and

rewards are transferred to the factor. Once the trade receivables are derecognised, the Group does not carry any risk and has no

continuing involvement in these.

The Group’s exposure to credit risk is inherently low due to its business model and strategic choices leading to a diversified

customer portfolio, both in terms of geography, industry sector, customer size and services.

Generally, the Group does not hold collateral as security for trade receivables.

The Group applies the simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for

all trade receivables.

Trade receivables comprise invoiced and unbilled revenue. Unbilled revenue represents service deliveries where the performance

obligation has been fulfilled, but not yet invoiced. Trade receivables are recognised at the invoiced amount less expected credit

losses, which equals amortised costs due to their short-term nature.

In 2024, we continued to manage inflation tightly through price increases. The vast majority of cost increases were passed on to

customers as per the agreed contractual terms with no increase in credit losses.

We have a strong ongoing assessment and monitoring of customers’ creditworthiness and the credit limits are set as deemed

appropriate taking into account the customer’s financial position and the current market conditions.

Exposure to credit risk and expected credit losses are managed locally in the operating entities.

The expected loss rates are calculated based on days past due for grouping of customers with similar loss patterns, e.g.

geographical region, industry sector and customer rating. The historical loss rates are adjusted to reflect current and forecasts of

future economic conditions on macroeconomic factors affecting the ability of the customers to settle the receivables.

Trade receivables are generally written off if they are past due more than 180 days or when there is no reasonable expectation of

recovery. Write-offs are presented in Other operating expenses. Subsequent recovery or reversal of expected credit losses are

credited against the same line item.

CONSOLIDATED FINANCIAL STATEMENTS 107

2.2 Other receivables

(DKKm)

2024 2023

Supplier rebates and bonuses 531 434

Prepayments to suppliers 308 294

Securities 140 117

Sign-on fees 132 98

Receivable divestment proceeds 70 114

Government grants 69 23

Transition and mobilisation costs 44 42

Derivatives 66 24

Other 291 348

Total 1,651

1,494

Accounting judgement

Other comprised refunds from customers, accrued interest, VAT, employee-related taxes and other recoverable amounts.

Capitalisation of transition and mobilisation costs involves management’s judgement to assess if the criteria for capitalisation are

fulfilled, including determining if the costs relate directly to the contract, generate resources that will be used in satisfying the

performance obligations, and are expected to be recovered, i.e. reflected in the pricing of the contracts.

Transition and mobilisation costs (costs to fulfil a contract) comprise costs directly related to start-up of operations of certain large

long-term contracts, such as transfer of employees from previous suppliers, site due diligence, planning and developing service

plans. The costs include internal direct costs and external costs e.g. to consultants.

Bid-related costs, including costs relating to sales work and securing contracts, are expensed as incurred.

Government grants related to wage subventions mainly in Singapore and Spain.

Transition and mobilisation comprised costs to fulfil the performance obligation under certain large long-term contracts. At 31

December 2024, capitalised transition and mobilisation costs amounted to DKK 44 million (2023: DKK 42 million). The increase in

2024 was due to mobilisation activities for the startup of Defra in the UK and the Danish Building and Property Agency in Denmark,

partly offset by ordinary amortisation.

Prepayments to suppliers comprised various payments mainly related to IT licences, utilities and insurance.

Supplier rebates and bonuses comprised volume-related supplier discounts and reflects the Group’s continued efforts to minimise

the number of suppliers and drive synergies and cost savings.

Sign-on fees comprised upfront discounts to certain large customers incurred in the normal course of business, most significantly

in the UK, Australia and the US and on certain global key accounts.

Receivable divestment proceeds mainly related to the divestment of Specialized Services in the US, where part of the consideration

is deferred.

Securities related to a savings plan in the US administered by ISS on behalf of certain senior employees.

CONSOLIDATED FINANCIAL STATEMENTS 108

2.2 Other receivables (continued)

Accounting policy

2.3 Other liabilities

(DKKm)

2024 2023

Accrued wages, pensions, holiday allowances and social security

5,473

5,060

Tax withholdings, VAT etc. 1,811 1,768

Debt to companies within the ISS Group

1,709

1,611

Prepayments from customers 1,113 989

Contingent consideration and deferred payments 227 29

Accrued interests 175 -

Savings plan 140

117

Derivatives 30 70

Other 369 323

Total 11,047 9,967

2.4 Changes in working capital

(DKKm)

2024 2023

Changes in inventories

(14) (24)

Changes in receivables (1,009) (764)

Changes in payables 615 1,007

Total (408) 219

Other comprised customer discounts, etc.

Except for the items described below, other receivables are recognised initially at cost and subsequently at amortised cost. Due to

the short-term nature of other receivables, amortised cost will equal the cost.

Savings plan related to a plan in the US under which ISS has invested in securities, see 2.2, Other receivables. The plan is

administered by ISS on behalf of certain senior employees.

Sign-on fees and transition and mobilisation costs are capitalised and amortised over the initial secured contract term consistent

with ISS’s transfer of the related services to the customer.

Securities and derivatives are measured at fair value with fair value adjustments being recognised in profit or loss. The fair value of

derivatives is presented in Other receivables when the fair value is positive and in Other liabilities when the fair value is negative.

Other receivables comprise various items of different nature and thus different measurement methods are applied. As these items

are considered individually immaterial, they are presented together as Other receivables.

In 2024, other liabilities increased DKK 1,080 million mainly due to higher activity levels and inflation leading to higher accruals for

wages, pensions, holiday allowances and social security of DKK 413 million. Furthermore, contingent consideration and deferred

payments increased DKK 198 million mainly related to the divestment of ISS France, where part of the consideration is deferred up

to three years from the divestment date, see 3.4, Discontinued operations and divestments.

CONSOLIDATED FINANCIAL STATEMENTS 109

2.5 Provisions, contingencies, guarantees and commitments

2.5.1 Provisions

Legal claims and disputes

Self-insurance

Restructurings

Onerous contracts

Other

ISS is exposed to various risks and uncertainties, and party to certain disputes, claims, investigations and legal proceedings

arising out of the normal conduct of its business. These are mainly within:

• Commercial/contractual matters

• Labour-related

• Divestments and M&A

• Tax/social regulations

Provisions are recognised in relation to such obligations for probable losses that management deems reasonable and

appropriate at 31 December 2024 as reflected in the table on the next page. In addition, ISS is exposed to possible obligations in

relation hereto, see 2.5.2, Contingencies.

The provision primarily relates to labour-related claims and disputes regarding wages, overtime, holiday, pensions, severance

etc., claims and disputes in relation to contractual disagreements with customers and suppliers as well as sales and service tax

disputes. In addition, the provision includes claims and disputes associated with our divestment activities. Such claims and

disputes arise out of the normal conduct of business. In 2024, the decrease was primarily due to payments for a divestment-

related dispute in the US and for the VAT dispute on canteen services in Norway as well as settlement of various labour-related

disputes in the ordinary course of business. At 31 December 2024, the remaining provision predominantly concerned Spain,

Türkiye, and Norway.

The provision covers unavoidable costs for certain loss-making contracts. In 2024, we continued to manage inflation through

price increases and cost efficiencies. As a result, we did not identify any significant new onerous contracts or increased provision

for contracts already recognised as onerous.

The provision mainly relates to employers’ liability and/or workers compensation in certain countries and covers claims by

employees for medical benefits and lost wages associated with injuries/illness incurred in the course of their employment.

• Hong Kong: DKK 27.6m, yearly (2023: DKK 25.9m)

•

UK:

DKK 27.0m, yearly aggregated limit (2023: DKK 25.7m) and DKK 4.5m per claim (2023: DKK 4.3m)

•

Australia:

DKK 4.5m per claim (2023: DKK 4.6m)

•

US:

DKK 3.6m per claim (2023: DKK 3.4m)

The provision also includes obligations not covered by the global general business liability insurance in relation to damage

caused in the ordinary course of service delivery, e.g. property damage and bodily injury. The Group is self-insured for claims

below DKK 7.5 million (EUR 1 million per claim).

The provision mainly relates to restructuring projects conducted in the ordinary course of our business to ensure continuous

optimisation and adjustment of our cost base involving mainly overhead reductions, including termination of employees. In 2024,

payments mainly related to severance costs in Germany following the OneISS strategic review in late 2023.

Listed below are the relevant countries, including self-insurance limits:

The provision comprises various other risks and obligations incidental to our business, most significantly related to customer and

contract-related risks and disputes, acquisitions, divestments and decommissioning liabilities. In 2024, the provision increased to

DKK 238 million (2023: DKK 225 million) mainly due to indemnities granted by ISS in connection with the divestment of ISS

France. This was offset by utilisations (payments) related to customer disputes and contract-related risks. At 31 December 2024,

the provision mainly related to risks and disputes related to customer contracts and divestments in Germany, France and the US.

CONSOLIDATED FINANCIAL STATEMENTS 110

2.5 Provisions, contingencies, guarantees and commitments (continued)

(DKKm)

Legal claims

and disputes

Self-

insurance

Restruc-

turings

Onerous

contracts

Other

Total

2024

At 1 January 158

263

74 26 225 746

FX adjustments

-

21

- - 6 27

Profit or loss impact:

Additions 54

296 - 13 3 366

Unused amounts reversed (29)

(40)

- (13) (1) (83)

Used during the year (payment) (88)

(299)

(73)

(3) (59) (522)

Acquisitions -

1

- 2 - 3

Reclass (to)/from other liabilities -

-

- - 64 64

At 31 December 95

242 1 25 238 601

Non-current 29 139 1 10 193 372

Current 66 103 - 15 45 229

2023

At 1 January 268

245 71 77 410 1,071

FX adjustments

- (8) -

(1) (2) (11)

Profit or loss impact:

Additions 66 198 158 14 10

446

Unused amounts reversed (76) (32) -

(19) (138) (265)

Used during the year (payment) (140) (203) (150) (28) (41)

(562)

Acquisitions -

3 - 4

- 7

Reclass to Liabilities held for sale

(48) - - - - (48)

Reclass (to)/from other liabilities 88 60 (5)

(21) (14) 108

At 31 December 158 263 74

26 225 746

Non-current 78 154 1 5 149

387

Current 80 109 73 21 76 359

CONSOLIDATED FINANCIAL STATEMENTS 111

2.5 Provisions, contingencies, guarantees and commitments (continued)

2.5.2 Contingencies

Contractual disagreements

Labour-related risks

Divestments

Restructurings

Sales and consumption tax disputes

Restructuring projects are being undertaken on an ongoing basis across different geographies and service areas. Labour laws

especially in Europe include restrictions on dismissals and procedural rules to be followed. The procedures applied by ISS could

be challenged in certain jurisdictions resulting in disputes and possibly liabilities. Management believes that this would not have a

material impact on the Group’s financial position beyond the assets and liabilities already recognised at 31 December 2024.

The Group is currently party to certain labour-related claims, disputes and legal proceedings, e.g. around wages, overtime,

holiday and severance. Additionally, the Group is aware of certain legal rulings implying that practices applied by ISS could

potentially be challenged and possibly lead to liabilities in the future. Management believes that these would not have a material

impact on the Group’s financial position beyond the assets and liabilities already recognised at 31 December 2024.

The Group makes provisions for claims from purchasers or other parties in connection with divestments and the representations

and warranties given in relation to such divestments. In addition, the Group’s divestment activities can give rise to possible

obligations, mainly labour-related, including pension plans, and disputes regarding sales price.

Being a global company operating in various jurisdictions exposes us to varying and changing laws and regulations, including

interpretations from authorities on sales and consumption taxes. Although we have policies and procedures in place to ensure

that we comply with current regulations, interpretations and procedures applied by ISS could be challenged in certain

jurisdictions and result in disputes and possibly liabilities and future cash outflows. The Group is currently party to certain

disputes, mainly in relation to VAT on canteen services in Norway.

Being a people company operating across different geographies and service areas exposes us to varying and changing labour

laws, including regulations on pension schemes. Although we have policies and procedures in place to ensure that we comply

with current regulations, interpretations and procedures applied by ISS could be challenged in certain jurisdictions and result in

disputes and possibly liabilities.

ISS is party to pending disputes, claims, investigations and litigations arising out of the normal conduct of its business and is

therefore exposed to possible obligations. Management believes that these will not have a material impact on the Group’s

financial position beyond the assets and liabilities recognised in the statement of financial position at 31 December 2024.

However, the existence of such possible obligations will only be confirmed by the occurrence of future events, not entirely within

ISS’s control. Due to the inherent uncertainty, future events may lead to material adverse effects on the Group’s profit or loss,

financial position and cash flows from one or more of these possible obligations.

Contractual disagreements with customers arise on a recurring basis in the ordinary course of ISS’s business. While most are

resolved as part of the daily contract management procedures, in some cases the contractual disagreements will lead to legal

proceedings.

The Group is currently party to certain disputes and legal proceedings, including in relation to the contract with Deutsche

Telekom (DTAG). As previously informed, ISS has initiated the establishment of an Arbitration Tribunal under the German

Institute of Arbitration (DIS) to decide on the contractual disagreements between ISS and DTAG. The final oral hearing in the

arbitration proceedings is scheduled to take place in mid July 2025. In the proceedings, ISS and DTAG have exchanged claims

against each other. ISS has claimed remuneration for services performed. DTAG has disputed the claims and is withholding

certain payments to ISS related to the services delivered. The outcome of the proceedings remains uncertain. Management

believes that this would not have a material impact on the Group’s financial position beyond the assets and liabilities already

recognised at 31 December 2024.

CONSOLIDATED FINANCIAL STATEMENTS 112

2.5 Provisions, contingencies, guarantees and commitments (continued)

Accounting estimates and judgement

2.5.3 Guarantees

(DKKm)

2024

2023

Bank-guaranteed performance bonds 1,955

1,845

Other performance bonds

6,696 4,824

Performance guarantees (service contracts) 8,651 6,669

( )

546 575

( )

Performance guarantees

Indemnity and guarantee commitments

Due to our strategic focus on key accounts, our customer base contains a number of large complex contracts in terms of

performance obligations towards our customers. The size and complexity of such contracts requires ISS to incur significant

transition and mobilisation costs before service delivery commences to enable fulfilment of the performance obligations.

Furthermore, complex restructuring projects may need to be initiated and recognised as provisions.

Onerous contracts Management assesses whether contracts may be onerous by estimating the expected future profitability. This

involves estimating total contract revenue and the unavoidable costs of meeting the performance obligations under the contract,

including any transition and mobilisation costs incurred. In estimating the future profitability, management makes judgements,

including in relation to termination and extension options.

Certain contracts are large, complex and longer-term facility service partnerships. When estimating unavoidable costs for such

contracts, management makes assumptions around future costs taking expected optimisations and efficiency gains from

improvement initiatives into consideration. While ISS has inherent risk in this respect, ISS is by nature also dependent on aligning

interests with the customer within the framework of the agreement for the benefit of both parties. The outcome may vary

significantly should the assumptions and judgements applied not be realised as expected by management and applied as basis

for their assessment of whether a contract is onerous.

Restructurings and other provisions Management makes judgements related to various other matters and obligations, primarily

relating to planned/initiated restructurings, and complex customer and contract-related risks and disputes, including ongoing

lawsuits. Management’s assessment of the likely outcome of lawsuits, etc., is based on external legal assistance and established

precedents.

For large, complex contracts, the outcome may vary significantly should the judgements and assumptions applied by

management in their assessment of the risks and disputes not be realised as expected.

In 2024, other performance bonds increased mainly due to a new customer contract in the UK.

ISS has issued certain guarantees in the normal course of business.

ISS regularly issues performance guarantees to customers to guarantee satisfactory completion of work in accordance with the

service contract. Such guarantees are issued in the ordinary course of business, either in the form of bank guarantees, parent

guarantees or insurances.

Other guarantees are mainly issued to insurance companies towards self-insurance liabilities as well as to owners of rental

property occupied by ISS in certain countries. Furthermore, in a few instances guarantees have been issued to public authorities

towards tax withholding liabilities.

Indemnity and guarantee commitments

CONSOLIDATED FINANCIAL STATEMENTS 113

2.5 Provisions, contingencies, guarantees and commitments (continued)

2.5.4 Commitments

(DKKm)

2024

2023

License agreements 60 49

Leases 12 60

Purchase obligations, suppliers and subcontractors 29 29

Total not recognised 101 138

( )

Non-current 26 58

Current 75 80

Leases relates to various contracts not yet commenced at 31 December, but entailing obligations for future lease payments.

Licence agreements comprise multi-year software license agreements with non-cancellable obligations to pay future license fees.

The Group has entered into various contractual agreements under which the Group is obligated to pay a continued fee in the

short to long term.

Furthermore, the Group has entered into contracts with a limited number of suppliers and subcontractors that contain future

purchase obligations.

CONSOLIDATED FINANCIAL STATEMENTS 114

2.5 Provisions, contingencies, guarantees and commitments (continued)

Accounting policy

Provisions

Contingencies and commitments

Customer and contract-related disputes (presented in “Other” provisions) based on an assessment of available facts and

circumstances in respect of the specific risks or disputes, when it is deemed that a contractual, non-contractual or constructive

obligation exists, and it is probable that this will lead to an outflow of economic resources from the Group.

Restructurings, when a detailed, formal restructuring plan is announced to the affected parties on or before the reporting date.

The plan must identify the business concerned, the location and number of employees affected, and include a detailed estimate

of costs as well as a timeline.

Provisions are recognised at the estimated costs when the Group, as a result of a past event, has a present legal or constructive

obligation, it is probable that an outflow of economic benefits will be required to settle the obligation and the amount can be

reliably estimated. Provisions are not recognised for future operating losses. The estimated amount is discounted using the

Group’s average borrowing rate, if this significantly impacts the measurement of the liability. Provisions are recognised for:

Contingent assets are possible assets whose existence will be confirmed by the occurrence or non-occurrence of uncertain

future events that are not wholly within the control of the entity.

Contingent assets, liabilities and commitments do not represent a present legal or constructive obligation. Thus, they are not

recognised, but disclosed in the notes.

Legal claims and disputes, e.g. lawsuits and other disputes, based on external legal assistance and established precedents.

Self-insurance on employers’ liability and/or workers compensation based on valuations from external actuaries.

Contingent liabilities are possible obligations whose existence will be confirmed by the occurrence or non-occurrence of future

events. An obligation may also be contingent if the amount cannot be estimated reliably or settlement is not probable.

Commitments are the Group’s promise resulting from a contractual agreement to assume a future obligation for a future

delivery.

Decommissioning liability (presented in “Other” provisions) if the Group has a legal obligation to dismantle or remove an asset or

restore a site or leased facilities (right-of-use assets) when vacated. The present value of the obligation is included in the cost of

the relevant asset and depreciated accordingly. The estimated future costs and applied discount rate are reviewed annually and

any changes are included in the cost of the asset.

Onerous contracts, when the unavoidable costs, including directly allocated overhead costs, of meeting the obligations under the

contract exceed the economic benefits expected to be received under it, corresponding to the lower of the costs to fulfil the

obligations under the contract and the costs of exiting.

CONSOLIDATED FINANCIAL STATEMENTS 115

2.6 Right-of-use assets, property and equipment

2.6.1 Right-of-use assets

Lease-related costs recognised in profit or loss

(DKKm)

2024 2023

Depreciation of right-of-use assets

904

866

Leases of low-value assets 120 138

Short-term leases 104

49

Variable lease payments 8

7

Other operating expenses

1,136

1,060

Interest expenses on lease liabilities 153

119

Finance costs 153 119

Hereof cash outflow

385

313

Lease liabilities

Leases not yet commenced

2.6.2 Property and equipment

In 2024, total cash outflow for leases was DKK 1,336 million (2023: DKK 1,091 million).

For the carrying amount of lease liabilities and maturity, see 4.2.1, Borrowings and 4.5.1, Financial liabilities, respectively.

For the amount of leases not yet commenced is disclosed in 2.5.4, Commitments.

At 31 December 2024, ISS was party to around 18,600 (2023: 17,500) lease agreements of which the majority related to vehicles. In

terms of value, the main part related to property leases which generally fall in two categories:

Comprise mainly vehicles, production equipment and leasehold improvements.

• HQ office leases (Group headquarters in Søborg as well as HQ buildings and regional offices in each ISS Country)

• Customer-specific property leases (offices, storage etc.)

In 2024, additions was DKK 1,078 million (2023: DKK 906 million). The increase was primarily attributable to new vehicle leases

driven by lease cycle renewals, particularly in Germany, the UK, Belgium & Luxemburg and Finland. Also, new or extended property

leases contributed, mainly in Finland and Sweden.

In 2024, additions of DKK 354 million (2023: DKK 392 million) primarily related to equipment for new and existing contracts, and

leasehold improvements.

CONSOLIDATED FINANCIAL STATEMENTS 116

2.6 Right-of-use assets, property and equipment (continued)

(DKKm)

Properties Vehicles Other

Total

2024

Carrying amount at 1 January 1,071 688 394 2,153 901

FX adjustments 4 (3) (19) (18) (7)

Hyperinflation restatement 2 13 54 69

42

Additions 320 611 147 1,078

354

Acquisitions/divestments, net 5 3 2

10

32

Disposals

- - -

-

(11)

Depreciation (366) (374) (164) (904) (322)

Reclass - - - -

(10)

Carrying amount at 31 December 1,036 938 414

2,388

979

Cost

2,516 1,610 816

4,942

3,300

Accumulated depreciation and impairment (1,480) (672) (402) (2,554) (2,321)

Carrying amount at 31 December 1,036 938 414 2,388 979

2023

Carrying amount at 1 January

1,330 635 380 2,345

891

FX adjustments 9

(1) (46) (38) (33)

Hyperinflation restatement 2 13 53 68

47

Additions 258 438 210 906 392

Acquisitions/divestments, net (5) (4) -

(9) 2

Disposals - - -

- (16)

Depreciation (382) (352) (159)

(893)

(344)

Impairment

(141)

(36)

(33) (210) (38)

Reclass to Assets held for sale - (5) (11) (16)

-

Carrying amount at 31 December 1,071 688 394 2,153

901

Cost 2,420 1,440 735 4,595 3,077

Accumulated depreciation and impairment (1,349) (752) (341) (2,442) (2,176)

Carrying amount at 31 December 1,071 688 394

2,153 901

Right-of-use assets

Property

and

equipment

CONSOLIDATED FINANCIAL STATEMENTS 117

2.6 Right-of-use assets, property and equipment (continued)

Accounting judgement

Management reassesses the lease term based on the above facts and circumstance, if significant changes or events occur, and

revises the lease term if appropriate.

If the term cannot be reasonably determined, the term for HQ office building contracts without an end date is set to 10 years

based on the Group’s past experience.

• Strategic and operational development of the ISS business in the specific country, including management’s expectations

for organic growth, acquisitions, divestments and restructurings

• Suitableness of the location in the longer term

• Development in market prices in the specific geographic area

• The property’s condition, including significant leasehold improvements undertaken or expected to be undertaken

• Termination-related costs, such as penalties, obligations to restore the facility, relocation costs and potential business disruption

• Historical length of occupying similar buildings

Lease term The majority of the Group’s lease contracts for HQ office buildings contain extension options, and additionally a few

have no contractual fixed term. This contract structure, which combines fixed term with extension options, is essential to the

Group to ensure the right balance of stability and efficiency, while at the same time securing flexibility to adjust based on future

business needs.

Management exercises judgement in determining the lease term, including whether extension options are reasonably certain to

be exercised. All relevant facts and circumstances are considered, including whether these create an economic incentive for the

Group to exercise an option or not:

CONSOLIDATED FINANCIAL STATEMENTS 118

2.6 Right-of-use assets, property and equipment (continued)

Accounting policy

Properties:

HQ office leases 10-12 years

Customer-specific leases (contract term) 3-5 years

Vehicles 3-5 years

Other equipment

2-5 years

Equipment 3-10 years

Leasehold improvements (lease term)

Buildings 20-40 years

Land Not depreciated

The recognition exemption is applied for short-term leases (term of 12 months or less) and leases of low-value assets (e.g. minor

cleaning and IT equipment and office furniture). Related lease payments are recognised in Other operating expenses on a

straight-

line basis over the lease term.

Depreciation methods, lease terms (including extension options) and residual values are reassessed at the reporting date.

Gains and losses arising on the disposal or retirement of property and equipment are recognised in Other operating expenses in

the year of sale, except gains and losses arising on disposal of property, which are recognised in Other income and expenses, net.

Property and equipment is measured at cost, less accumulated depreciation and impairment losses.

Depreciation methods, useful lives and residual values are reassessed at the reporting date.

3-10 years

Estimated useful life

Property and equipment is depreciated on a straight-line basis over the estimated useful lives of the assets.

Average lease term applied

Certain leases comprise a liability to dismantle or remove the asset or restore the facility. Estimated costs related to such liability

are recognised as part of the cost of the asset.

Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful life of the

asset.

Right-of-use assets are recognised at the commencement date of the lease and measured at cost less accumulated depreciation

and impairment losses, and adjusted for any remeasurement of lease liabilities, including extension options.

CONSOLIDATED FINANCIAL STATEMENTS 119

2.7 Free cash flow

(DKKm)

Note 2024 2023

Cash flow from operating activities 3,527

3,284

Acquisition of intangible assets, property and equipment (513)

(569)

Disposal of intangible assets, property and equipment 15

16

Change in financial assets

1)

(35)

(6)

Addition of right-of-use assets, net 2.6 (1,078) (906)

Free cash flow

1,916 1,819

The free cash flow measure should not be considered a substitute for those measures required by IFRS and may not be calculated

by other companies in the same manner. As such, reference is made to the IFRS measures included in the consolidated statement

of cash flows of the consolidated financial statements.

Free cash flow as defined by management, see 8.5, Definitions, is summarised below. Free cash flow is not a financial performance

measure defined by IFRS. Accordingly, the measure and its calculation is presented as it is used by management as an alternative

performance measure in managing the business.

1)

Excluding changes in equity-accounted investments of DKK 22 million (2023: DKK (15) million).

CONSOLIDATED FINANCIAL STATEMENTS 120

SECTION 3

Strategic investments and divestments

3.1 Intangible assets

(DKKm)

Goodwill Brands

Customer

contracts

Software Total

2024

Carrying amount at 1 January 15,121 - 934 514

16,569

FX adjustments 45 - (34)

(4)

7

Hyperinflation restatement

339 - 164

3

506

Additions -

-

- 158 158

Acquisitions/divestments, net 415

- 181 - 596

Amortisation - - (91) (123) (214)

Reclass - - - 10 10

Carrying amount at 31 December 15,920 - 1,154 558

17,632

Cost

17,143 61 4,670

1,523

23,397

Accumulated amortisation and impairment (1,223) (61) (3,516) (965) (5,765)

Carrying amount at 31 December 15,920 - 1,154 558 17,632

2023

Carrying amount at 1 January 15,853 - 857

536

17,246

FX adjustments

(349) - (163) (4)

(516)

Hyperinflation restatement 337

- 173 2 512

Additions - - - 166

166

Acquisitions/divestments, net 217 - 136 - 353

Disposals - - - (1) (1)

Amortisation - - (69)

(113) (182)

Impairment (937) -

-

(72) (1,009)

Carrying amount at 31 December

15,121 - 934 514

16,569

Cost 16,341

57 4,339 1,378 22,115

Accumulated amortisation and impairment (1,220) (57) (3,405) (864)

(5,546)

Carrying amount at 31 December 15,121 - 934 514 16,569

Goodwill and customer contracts

Software

In 2024, the Group’s acquisitions added DKK 417 million to goodwill and DKK 181 million to customer contracts, see 3.3,

Acquisitions. Furthermore, hyperinflation in Türkiye added DKK 339 million to goodwill and DKK 164 million to customer contracts.

Goodwill relates mainly to assembled workforce, technical expertise and know how, synergies and scale benefits as well as

platform for growth.

Technology is a key enabler of the Group’s strategy and an integrated part of our customer value propositions. Overall, the

Group’s software investments relate to 1) customer-facing solutions, 2) employee-facing solutions and 3) IT security. Our

capitalised software is mainly owned – either “off-the-shelf” or solutions being fully or partially customised to ISS – whereas the

remaining (mainly the most recent software solutions) relates to Software as a Service (SaaS solutions).

In 2024, additions amounted to DKK 158 million (2023: DKK 166 million) and software included DKK 32 million related to assets

under development at Group level (2023: DKK 1 million).

CONSOLIDATED FINANCIAL STATEMENTS 121

3.1 Intangible assets (continued)

Accounting judgement

Accounting policy

Customer contracts 10-24 years

Software 3-10 years

Certain costs related to configuration and customisation activities may be capitalised as an intangible asset if they meet the

recognition criteria, see Accounting judgements. Such assets are amortised over their useful lives when ready for use.

If the Group receives a right to use cloud hosted software managed by a software provider without further rights or control, it is

neither a lease nor an intangible asset and costs are expensed as the Group receives the SaaS. However, in some circumstances

the Group may obtain control, which may be the case when:

Software as a Service (SaaS) Generally, the right to access a cloud provider’s software does not give rise to an intangible asset

because that right does not in itself give ISS control over the software asset. At the commencement date, management assesses

whether the Group acquires an intangible asset, leases an asset or solely receives software as a service over the term of the

contract.

Amortisation is calculated on a straight-line basis over the estimated useful lives except for certain customer contracts where the

unit of production method better reflects the expected pattern of consumption.

Estimated useful life

Goodwill is not amortised but recognised at cost less accumulated impairment losses.

Acquisition-related customer contracts are recognised at fair value at the acquisition date and subsequently, at cost less

accumulated amortisation and impairment losses.

Software is measured at cost less accumulated amortisation and impairment losses. The cost of software developed for internal

use includes external costs to consultants and software as well as internal direct costs related to the development. Other

development costs for which it cannot be demonstrated that future economic benefits will flow to the Group are recognised in

profit or loss.

Amortisation methods and useful lives are reassessed at the reporting date.

a) ISS has the contractual right to take possession of the software during the hosting period without incurring significant costs;

b) ISS has the ability to use software separately without significant diminution in utility or value; and

c) It is feasible for ISS to run the software on its own hardware or contract with a party (unrelated to the cloud provider) to do so.

Configuration and customisation costs In SaaS arrangements, capitalisation requires management’s assessment of the nature of

the activities performed and the output. Such activities would typically entail development of additional software code that

enhances, modifies or creates additional capability. If activities performed result in the creation of a resource that the Group

controls, such configuration and customisation costs are capitalised.

Software as a Service (SaaS) are service contracts providing the Group with the right to use cloud hosted software managed by

the software provider over the contract term.

Generally, costs related to SaaS are expensed as incurred in Operating expenses, including cloud-hosting fees, software licenses,

internal costs to select a cloud provider as well as data conversion, training and testing costs.

CONSOLIDATED FINANCIAL STATEMENTS 122

3.2 Impairment tests

3.2.1 Impairment test results

Türkiye

The impairment tests of goodwill and customer contracts performed at 31 December 2024 did not result in recognition of

impairment losses (2023: no impairment losses).

In 2024, ISS Türkiye continued to perform well in terms of revenue growth, operating margin and free cash flow despite the

difficult macroeconomic environment with continued high inflation and increasing interest rates. However, due to the IAS 29

hyperinflation adjustments goodwill and customer contracts also continued to increase. At 31 December 2024, intangibles

amounted to DKK 1.6 billion (2023: DKK 1.3 billion) of which DKK 1.4 billion (2023: DKK 1.0 billion) was attributable to

hyperinflation. The Group continued to apply a normalised WACC rate in the terminal period (in line with last year), as it is

management’s view that it is most appropriate given the circumstances.

Accounting estimates

In performing the impairment test, management assesses whether the CGU to which the goodwill relates will be able to generate

positive net cash flows sufficient to support the value of intangibles and other non-current assets. The assessment is based on

estimates of expected future cash flows (value in use) for the individual CGU, which by nature are uncertain.

Estimates are based on financial forecasts for the following year as approved by management, and estimated discount rates,

growth and market developments. Assumptions applied in the short to medium term (forecasting period of five years) as well as

terminal growth rates and margins applied are described in 3.2.4, Determining value in use.

The outcome of the impairment test may vary significantly should the assumptions and estimates not be realised as expected and

applied as basis for management’s conclusion of whether impairment of a CGU has occurred.

It is management’s view that excess values in the Group’s CGUs, including in Türkiye, are fairly resilient to any likely and reasonable

deteriorations in the key assumptions applied, see sensitivity analyses in 3.2.2, Goodwill and customer contracts.

In Türkiye, as a result of the highly unusual macroeconomic situation, the normal Group methodology of applying a constant

WACC rate in both the forecasting and terminal period, would lead to an understatement of the value in use (especially in the

terminal period) due to the disproportionate negative gap between the risk-free interest rate and the consistently applied terminal

growth rate. Instead, the Group applies a normalised WACC rate in the terminal period, while the WACC applied in the forecasting

period is determined based on the normal Group methodology. Given the circumstances, it is management’s view that this is more

appropriate and leads to a more reasonable estimate of the value in use.

In the majority of the Group’s CGUs, excess values increased in 2024 due to improved financial results leading to higher financial

forecasts, which was only partially offset by broad-based increases in discount rates.

CONSOLIDATED FINANCIAL STATEMENTS 123

3.2 Impairment tests (continued)

3.2.2 Goodwill and customer contracts

(DKKm)

Goodwill

Customer

contracts

Total Goodwill

Customer

contracts

Total

US & Canada 2,262 125 2,387 2,125 134

2,259

Switzerland 1,710

252 1,962 1,512 156 1,668

UK & Ireland

1,800 79 1,879 1,719

88

1,807

Finland 1,658 - 1,658 1,656 - 1,656

Türkiye 1,101 509 1,610 858 417

1,275

Spain 1,346

161

1,507 1,224 132 1,356

Australia & NZ 1,233 - 1,233 1,272 -

1,272

Belgium & Lux. 853 22 875 790 - 790

Other 3,957 6 3,963 3,965 7 3,972

Total 15,920

1,154 17,074 15,121 934

16,055

Accounting policy

The Group performs impairment test of goodwill at the reporting date or when indications of impairment exist. Other non-current

assets are tested annually for indications of impairment.

When performing the impairment test, the recoverable amount of the asset is determined, i.e. the higher of the fair value of the

asset less anticipated costs of disposal and its value in use. The value in use is calculated as the present value of expected future

cash flows from the asset or the CGU to which the asset belongs. Corporate costs for services performed by the Group’s head

office functions for the benefit of the CGUs are allocated to the individual CGUs and taken into account in the calculation.

Impairment of goodwill is not reversed. Impairment of other assets is reversed if estimates used to calculate the recoverable

amount have been changed. An impairment loss is reversed to the extent that the carrying amount does not exceed the carrying

amount that would have been determined, net of depreciation and amortisation, if no impairment loss had been recognised.

Impairment of goodwill is recognised in profit or loss in a separate line if the carrying amount of the CGU exceeds its estimated

recoverable amount.

The carrying amount of goodwill is tested for impairment together with other non-current assets in the CGU to which goodwill is

allocated.

The carrying amounts of intangibles for CGUs representing more than 5% of intangibles are disclosed in the table below. A

sensitivity analysis on the key assumptions in the impairment testing are disclosed in 3.2.4, Determining value in use under

Sensitivity analysis.

2024

2023

CONSOLIDATED FINANCIAL STATEMENTS 124

3.2 Impairment tests (continued)

3.2.3 Cash-generating units (CGUs)

3.2.4 Determining value in use

Forecasting period

Terminal period

Consistent with the Group’s management and reporting structure, the lowest level of CGUs is individual countries, as cash inflows

are generated largely independent of cash inflows in other ISS countries (the majority of our contract portfolio is locally based with

no cross-border activities). Accordingly, impairment tests are carried out per country, and intangibles (goodwill and customer

contracts) are allocated to these.

For a few countries, management has been combined to take advantage of similarities in terms of markets, shared customers and

cost synergies. In these exceptional cases, the countries are regarded as one CGU when performing the impairment test.

Specifically, management has considered the expected impacts from the Group’s updated strategic priorities from 2025 and

onwards, especially increased investments in our commercial agenda, our people processes and in driving efficiencies in our

overhead and service costs. Where relevant, initiated restructurings and other improvement initiatives, have also been taken into

consideration when estimating the expected future performance and cash flows.

The recoverable amount of each CGU is calculated on the basis of its value in use using certain key assumptions per CGU, i.e.

revenue growth, operating margin and discount rate.

Cash flow projections for the individual CGUs are based on financial forecasts for the following year as approved by management.

Generally, assumptions applied in the short to medium term (forecasting period of five years) reflect management’s expectations

considering all relevant factors, including the Group’s strategic initiatives, local initiatives, past experience and external sources of

information, where possible and relevant. This also includes expected development in local markets in terms of competition,

inflation and growth.

Management also assessed the impact from macroeconomic developments, mainly inflation rates. In the year, the Group

demonstrated its continued ability to manage and mitigate wage increases and price increases in the supply chain, including

activating indexation mechanisms in the customer contracts to increase prices.

Assumptions applied in the terminal period generally reflect management’s long-term expectations for the individual country.

Revenue growth reflects inflation and GDP growth and is determined based on input from external sources like IMF’s “World

Economic Outlook”. Operating margin reflects the expected normalised earnings level in the long term.

CONSOLIDATED FINANCIAL STATEMENTS 125

3.2 Impairment tests (continued)

Revenue

growth

Operating

margin

Discount rates

(net of tax)

2)

For Türkiye a country specific risk premium of 5.0% is added (2023: 9.0%).

1)

The key assumptions applied are used for accounting purposes and should not be considered a forward-looking statement within the meaning

of the US Private Securities Litigation Act of 1995 and similar laws in other countries regarding expectations to the future development.

Year 1

• Financial forecasts as approved by management

Forecasting period (year 2-5)

• Based on expected market development, including maturity and inflation

• Impact from local and Group initiatives are considered, including key account focus

Terminal period

• Long-term expectations based on external sources such as IMF “World Economic Outlook”, OECD, etc.

• Not exceeding expected long-term average for the country, including inflation

Year 1

• Financial forecasts as approved by management

Forecasting period (year 2-5)

• Impact from Group initiatives are considered, including key account focus and investments in our commercial

agenda, our people processes and driving efficiencies in our overhead and service costs

• Restructurings and local improvement initiatives are considered

Terminal period

• Reflects the expected normalised earnings level in the long term

• Risk-free interest rate based on 30-year government bonds (country-specific) where available, except that for

Türkiye a normalised interest rate is applied in the terminal period (see Accounting estimates). If 30-year

bonds are not available for the given CGU, the rate is based on a 20-year or 10-year government bond

• Country specific estimation risk premium added (to reflect possible variations in amounts/timing of the

projected cash flows)

• Equity risk premium: 5.5% (2023: 6.0%)

2)

• Debt/equity target ratio (market values): 25/75 (2023: 25/75)

Key assumptions

1)

CONSOLIDATED FINANCIAL STATEMENTS 126

3.2 Impairment tests (continued)

Sensitivity analysis

(DKKm)

Carrying

amount

Avg.

Allowed

decrease

Avg.

Allowed

decrease

Rate

Allowed

decrease

Rate

Allowed

decrease

Net of

tax

Allowed

increase

Pre-

tax

2024

US & Canada 2,387

4.5 %

>4.5 % 5.4 % >5.4 % 3.0 % >3.0 % 6.0 % 3.7 % 11.3 %

8.8 %

14.5 %

Switzerland 1,962

1.2 %

>1.2 % 8.0 % >8.0 % 1.5 % >1.5 % 8.0 % 7.8 % 6.2 %

>6.2 %

7.4 %

UK & Ireland

1,879

5.1 %

>5.1 % 5.2 % >5.2 % 2.5 % >2.5 % 5.5 % 4.2 %

11.7 %

>11.7 %

15.2 %

Finland

1,658

2.9 %

>2.9 % 6.4 % >6.4 % 2.5 % >2.5 % 6.4 % 3.9 % 8.6 % 5.9 % 10.4 %

Türkiye

2)

1,610 25.3 % 17.9 %

7.9 %

>7.9 %

10.0 %

>10.0 %

8.0 % 5.4 % 36.3 % 10.2 % 42.5 %

Spain 1,507 3.9 % >3.9 % 6.5 %

>6.5 %

2.5 %

>2.5 % 6.5 % 4.3 % 9.3 % 7.3 % 11.9 %

Australia & NZ 1,233 3.0 % >3.0 % 7.0 %

>7.0 % 3.0 % >3.0 % 7.0 % >7.0 % 10.4 % >10.4 % 14.2 %

Belgium & Lux. 875 3.0 % >3.0 % 6.6 %

>6.6 % 2.5 % >2.5 % 6.6 % 5.4 % 9.1 % >9.1 % 11.7 %

2023

US & Canada 2,259

4.3 %

>4.3 % 6.0 %

>6.0 % 3.0 % >3.0 % 6.0 % 3.5 % 10.9 % 7.1 %

14.1%

Switzerland 1,668 1.9 % >1.9 % 7.8 % >7.8 % 2.0 % >2.0 % 7.8 % 7.7 % 6.9 %

>6.9 % 8.1%

UK & Ireland 1,807 3.0 % >3.0 % 5.4 % >5.4 % 2.5 % >2.5 % 6.0 % 4.9 %

10.4 %

>10.4 % 13.7%

Finland 1,656 2.6 % >2.6 % 6.2 %

>6.2 % 2.5 % >2.5 % 6.2 % 3.2 %

8.6 %

4.4 % 10.4%

Türkiye

2)

1,275 31.7 % 11.5 % 7.8 % 6.9 % 10.0 %

8.4 %

8.0 % 3.6 % 36.2 % 5.3 % 43.7%

Spain 1,356

4.5 % >4.5 % 6.4 % >6.4 % 2.5 %

>2.5 % 6.5 % 4.5 % 9.0 % 8.2 %

11.4%

Australia & NZ 1,272

2.0 % >2.0 % 7.5 % >7.5 % 3.0 % >3.0 % 7.5 % >7.5 % 9.7 % >9.7 % 13.2%

Belgium & Lux. 790 2.9 % >2.9 % 6.5 % >6.5 % 2.5 % >2.5 % 6.5 % 4.0 % 9.2 %

6.5 % 11.8%

1)

Excluding allocated corporate costs and royalty.

2)

Discount rate applied in the terminal period was 20.5%.

Discount

rate

The allowed change represents the percentage points by which the specific key assumption can change, all other things being

equal, before the CGU’s recoverable amount equals its carrying amount.

Growth

Margin

1)

Growth

Margin

1)

Forecasting period

Terminal period

CONSOLIDATED FINANCIAL STATEMENTS 127

3.3 Acquisitions

3.3.1 Acquisition impact

Acquisitions completed in 2024

Company/activity Country

Service

type

Interest

Consoli-

dated

Revenue

since

completion

Annual

revenue

(DKKm)

1)

Employees

(number)

1)

Med-Serv Austria Cleaning 100% February 53 69

226

gammaRenax Switzerland Cleaning 100% April 395 590 1,800

Grupo BN

Spain Cleaning 100% September 117

309

2,300

Bluebridge

Belgium Technical 100% December - 142 102

Vinca Belgium Technical

Activities December

- 11 9

Total 565 1,121 4,437

1)

Unaudited

gammaRenax

Grupo BN

Bluebridge

On 25 April 2024, ISS acquired 100% of the shares in gammaRenax AG. The acquisition strengthens our market position in

Switzerland by adding scale within our existing core services as well as creating better density across the country and growth in

our prioritised customer segments.

In line with the Group’s normal procedure and due to the short time between completion of the acquisitions and finalisation of the

consolidated financial statements, the acquisition accounting has not yet been completed. Thus, the fair value of certain assets

and liabilities, such as customer contracts and trade receivables, are determined based on management’s best estimates as the

necessary analyses and calculations could not be completed.

Goodwill is attributable mainly to: 1) platform for growth, 2) synergies and scale benefits and 3) assembled workforce.

On 10 September 2024, ISS acquired 100% of the shares in Grupo BN. The acquisition strengthens our market position in Spain

and has a strong strategic fit. It enables us to expand our cleaning services thus supporting our global leadership in the cleaning

sector.

Goodwill is attributable mainly to: 1) synergies and scale benefits and 2) assembled workforce.

On 16 December 2024, ISS acquired 100% of the shares in Bluebridge in Belgium. The acquisition enables us to expand and

develop our technical service offering.

Goodwill is attributable mainly to 1) expertise and know-how in technical services, 2) synergies and 3) assembled workforce.

CONSOLIDATED FINANCIAL STATEMENTS 128

3.3.1 Acquisition impact (continued)

Net assets and cash flow

(DKKm)

gamma-

Renax

Grupo

BN

Blue-

bridge

Other/Prior

year adj.

2024 2023

Customer contracts 114 45 22 - 181 136

Other non-current assets 20 36 10 1 67 83

Trade receivables 74 110 28 10 222

200

Other current assets 78

10

14 11 113 205

Non-current liabilities (41) (109) (20) (10) (180) (86)

Current liabilities (128) (80) (34) (19)

(261)

(355)

Fair value of net assets

117 12 20 (7)

142

183

Goodwill 220

116

55

26 417 221

Consideration transferred 337

128

75

19 559 404

Cash in acquired business (49)

(8)

(3) (10) (70) (9)

Consideration transferred, net 288

120 72 9 489 395

Contingent and deferred consideration 17 (2) - 6 21 (22)

Acquisitions (cash flow) 305 118 72 15 510 373

3.3.2 Subsequent acquisitions

3.3.3 Pro forma revenue/operating profit

Accounting policy

The Group completed no acquisitions from 1 January to 28 February 2025.

Acquisition-related costs are expensed as incurred and presented in Other income and expenses, net.

Contingent consideration is classified as financial liabilities and presented in Other liabilities with changes in fair value recognised

in Other income and expenses, net.

Pro forma revenue and operating profit before other items include adjustments assuming that acquisitions/divestments were in-

/excluded in/from profit or loss from 1 January. Estimates are made by local ISS management at the time of acquisition/divestment

or actual results where available, and are based on unaudited financial information.

Business combinations (acquisitions) are accounted for using the acquisition method. The consideration transferred is measured

at acquisition date fair value of net assets and any contingent consideration as well as the amount of any non-controlling interests

in the acquiree. For each acquisition, the Group elects whether to measure the non-controlling interests in the acquiree at fair

value or at the proportionate share of the acquiree’s identifiable net assets.

Depending on the size, complexity, and timing of the acquisition, uncertainties regarding identification or measurement of assets,

liabilities and contingent liabilities may arise, and the initial recognition is based on provisionally determined fair values. Changes

to fair values are adjusted against goodwill up until 12 months after the acquisition date. Comparatives are restated, accordingly.

Changes in fair values after 12 months are recognised in Other income and expenses, net.

Goodwill is initially measured at cost being the excess of the consideration transferred, over the fair value of the net identifiable

assets acquired. Subsequently, goodwill is measured at cost less accumulated impairment losses. For the purpose of impairment

testing, goodwill acquired in a business combination is allocated to each of the Group’s cash-generating units (CGUs) that are

expected to benefit from the combination. Goodwill is not deductible for tax purposes.

Pro forma revenue was DKK 84,241 million and operating profit before other items was DKK 4,909 million, corresponding to

adjustments of the reported amounts of DKK 459 million and DKK 32 million, respectively.

CONSOLIDATED FINANCIAL STATEMENTS 129

3.4 Discontinued operations and divestments

3.4.1 Discontinued operations

Profit or loss

1)

(DKKm)

Note 2024 2023

Revenue 665

2,662

Expenses (697) (2,808)

Operating profit before other items (32)

(146)

Other income and expenses, net (6) (501)

Royalty (13) (61)

Goodwill impairment

3.2 - (937)

Operating profit (51) (1,645)

Finance income/(costs), net (7) (55)

Net profit before tax (58) (1,700)

Income tax (1) (25)

Net profit (59) (1,725)

1)

Included France in 2024 (2023: Brunei and France).

Cash flows

(DKKm)

2024 2023

Operating activities (62) (44)

Investing activities

(323)

(2)

Financing activities (48)

(41)

On 9 April 2024, the divestment of ISS France was completed, and consequently, at 31 December 2024 no businesses were

classified as assets held for sale.

Net profit generated in ISS France up until the completion of the divestment is specified below. The preliminary divestment loss

recognised in 2023 was reassessed on the basis of the final sales price and closing balance. This led to a negative adjustment of

DKK 5 million recognised in Other income and expenses, net.

CONSOLIDATED FINANCIAL STATEMENTS 130

3.4 Discontinued operations and divestments (continued)

Accounting policy

Divestments Gain or loss on disposal of an operation that is part of a CGU includes a portion of the related goodwill allocated to

that CGU. Goodwill related to the disposed operation is measured based on the fair value of the disposed operation relative to

the fair value of the entire CGU.

If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling

interests and other components of equity, while any resultant gain or loss is recognised in Other income and expenses, net.

Cash flows from discontinued operations are included in cash flow from operating, investing and financing activities together

with cash flows from continuing operations, but separately specified in 3.4, Discontinued operations and divestments.

A disposal group is presented as discontinued operations if it is a geographical area, i.e. a CGU (country), that either has been

disposed of, or is classified as held for sale.

Discontinued operations are presented separately as Net profit from discontinued operations and specified in the notes.

Comparatives are restated.

The classification as discontinued operations is assessed based on several factors; quantitative and qualitative. Overall, it is

assessed whether the disposal group represents a component of an entity (i.e. a CGU), which in ISS is defined as a country.

Further, it is assessed whether the classification is significant for understanding the financial performance of the Group’s

continuing operations. For a single country, the assessment of significant is made separately for that country. However, in case of

a coordinated strategic plan to dispose of several businesses (CGUs), the assessment of significant is made for these countries as

a whole.

CONSOLIDATED FINANCIAL STATEMENTS 131

3.4 Discontinued operations and divestments (continued)

3.4.2 Divestments

Divestments completed in 2024

Company/activity Country

Service

type

Excluded

from P/L

Interest

Annual

revenue

(DKKm)

1)

Employees

(number)

1)

Ground Service Austria Technical March 100% 35

78

ISS France France Country exit April 100% 2,658

14,925

Travel Management Sweden Other April 100% 46

5

Total

2,739

15,008

1)

Unaudited

Net assets and cash flow impact

(DKKm)

2024 2023

Goodwill 2 15

Other non-current assets 35

18

Current assets 883 59

Non-current liabilities (111) -

Borrowings (260) (5)

Current liabilities (866) (27)

Net assets disposed (317) 60

Gain/(loss) on divestment, net

1)

(61) (3)

Divestment costs 174

42

Consideration received

(204)

99

Cash in divested businesses (263)

(23)

Consideration received, net

(467)

76

Contingent and deferred consideration 233 (4)

Divestment costs paid (116) (47)

Divestments (cash flow) (350) 25

3.4.3 Subsequent divestments

No divestments were completed from 1 January to 28 February 2025.

1)

In addition, DKK 0 million (2023: DKK 6 million) was recognised in Other income and expenses, net related to

recycling of accumulated FX adjustments on country exits.

Contingent and deferred consideration related to the divestment of ISS France, where part of the consideration is deferred up to

three years from the date of divestment.

CONSOLIDATED FINANCIAL STATEMENTS 132

SECTION 4

Capital structure

4.1 Equity

4.1.1 Capital management

4.1.2 Share capital and share premium

4.1.3 Translation reserve

(DKKm)

Note Hedging Subsidi- Total

2024

At 1 January (269) (399) (668)

FX adjustments - 312 312

At 31 December (269) (87)

(356)

2023

At 1 January

(185) (412) (597)

Hedging and FX adjustments (84) 13 (71)

At 31 December (269) (399) (668)

A specification of hedging and FX adjustments in the year is provided in 4.1.7, Other comprehensive income.

Hedging reserve

The ISS Global Group is indirectly wholly owned by ISS A/S and is therefore part of the ISS A/S Group. Group Treasury

manages financing activities and capital structure centrally for the ISS A/S Group as a whole. The ISS Global Group's financing

activities and capital structure are not assessed independently of the ISS A/S Group.

The Group monitors the capital structure and evaluates the need for adjustments on an ongoing basis. The Group's objectives

for managing capital and what is managed as capital are described in 4.5, Liquidity risk. The dividend policy and payment of

dividend is made subject to the necessary consolidation of equity and the Group's continuing expansion and profitability.

ISS Global A/S (the Group's parent) is a holding company, and its primary assets are shares in subsidiaries, receivables from

companies within the ISS Group and cash in its bank accounts. ISS Global A/S has no revenue generating operations of its

own, and therefore ISS Global A/S’s cash flow and ability to service its indebtedness and other obligations will depend

primarily on the operating performance and financial condition of its operating subsidiaries, and the receipt by ISS Global A/S

of funds from its subsidiaries in the form of dividends or otherwise.

The hedging reserve comprises accumulated fair value adjustments of net investment hedges in previous years. At 31

December 2024, the accumulated fair value adjustments, net of tax amounted to DKK (269) million of which DKK (140) million

related to GBP, DKK (75) million related to CHF and DKK (54) million related to USD. The total tax effect was DKK 12 million. The

amounts will remain in the translation reserve until full realisation of the foreign entity.

At 31 December 2024, ISS Global A/S’s share capital comprised a total of DKK 180,200 shares (2023: 180,200) with a nominal

value of DKK 1 thousand each. All shares were fully paid and freely transferable.

ISS Global A/S has one class of shares, and no shares carry special rights. Each share gives the holder the right to one vote at

our general meetings.

Share premium included in retained earnings at 31 December 2024 amounted to DKK 6,373 million (2023: DKK 6,373 million).

CONSOLIDATED FINANCIAL STATEMENTS 133

4.1.4 Dividends

4.1.5 Non-controlling interests

Accounting policy

Translation reserve comprises foreign exchange differences arising from the translation of financial statements of foreign

entities with a functional currency other than DKK and from the translation of non-current balances which are considered part

of the investment in foreign entities. Furthermore, fair value adjustments of net investment hedges and hyperinflation

restatement are included. On full realisation of a foreign entity the accumulated foreign exchange adjustments are

transferred to profit or loss in the same line item as the gain or loss.

Retained earnings is the Group’s free reserves, which includes proposed dividends and share premium. Proposed dividends

are recognised as a liability at the date when they are adopted at the annual general meeting. Share premium comprises

amounts above the nominal share capital paid by shareholders when shares are issued by ISS Global A/S.

At the annual general meeting to be held on 11 April 2025, the Board of Directors will propose a dividend to ISS World

Services A/S for 2024 of DKK 5,600 million (2023: DKK 0 million). There are no tax consequences of proposed dividends for the

Group.

The Group’s non-controlling interests predominantly relates to ISS Türkiye, where Actera, a leading Türkiyish private equity

company, owns 39.9%. Actera became minority shareholder of ISS Türkiye as part of the acquisition of Rönesans Facility

Management Company in September 2021. Further, certain members of management of ISS Türkiye together hold a minority

shareholding of 10% in ISS Türkiye.

The shareholders’ agreement between ISS, Actera and management establishes the rights and obligations of the parties,

including rights and restrictions on transferring shares, such as right of first refusal, drag along rights from Q4 2024 and right

to explore a potential Initial Public Offering (IPO).

CONSOLIDATED FINANCIAL STATEMENTS 134

4.1 Equity (continued)

(DKKm)

Note

Retained

earnings

Translation

reserve

Total

Non-

controlling

interest

Total

equity

2024

Defined benefit plans

Remeasurement (gain)/loss 7.1

(85) - (85) (55) (140)

Asset ceiling 7.1 (28) - (28) - (28)

FX adjustments

Subsidiaries - 83 83 (71) 12

Hyperinflation, Türkiye - 229 229 248 477

Tax

Tax related to the items above 25 - 25 11 36

Total (88) 312 224 133 357

2023

Defined benefit plans

Remeasurement (gain)/loss 7.1 (423) - (423) (39) (462)

Asset ceiling 7.1 299 - 299

- 299

FX adjustments

Subsidiaries

-

(290) (290) (148)

(438)

Recycling of accumulated FX adj., country exits - (6) (6) -

(6)

Hyperinflation, Türkiye - 309 309 158 467

Hedging

Fair value adj. of net investment hedges - (84) (84) - (84)

Tax

Tax related to the items above 23 - 23

10 33

Total (101) (71) (172) (19) (191)

Development in 2024

Attributable to the owner of ISS

4.1.7 Other comprehensive income

In 2024, other comprehensive income was DKK 357 million, an increase of DKK 548 million compared to 2023. The increase mainly

related to a positive impact from FX adjustments of subsidiaries primarily in Türkiye and the UK partly offset by Switzerland.

CONSOLIDATED FINANCIAL STATEMENTS 135

4.2 Financing

4.2.1 Borrowings

(DKKm)

Note 2024 2023

Issued bonds 15,635 14,073

Lease liabilities 2,422 2,282

Bank loans 242 311

Debt to companies within the ISS Group 205 19

Borrowings 18,504

16,685

Non-current liabilities 13,553

13,386

Current liabilities 4,951

3,299

Borrowings 18,504 16,685

Cash and cash equivalents (6,829)

(6,093)

Receivables from companies within the ISS Group (5,673)

(3,919)

Derivatives, net 2.2, 2.3 (36)

46

Securities 2.2 (140)

(117)

Net debt 5,826 6,602

Refinancing

Financing fees

Fair value

On 29 May 2024, ISS issued a 5-year bond with a principal amount of EUR 500 million and a coupon of 3.875%. The bond was

issued under the Group’s EUR 3 billion European Medium Term Note (EMTN) programme, which is listed on the Luxembourg Stock

Exchange. The net proceeds were used for repayment of the Group’s EUR 300 million EMTNs maturing in December 2024 as well

as for general corporate purposes.

At 31 December 2024, accumulated financing fees recognised in borrowings amounted to DKK 80 million (2023: DKK 54 million).

The increase compared to last year was due to financing fees of DKK 49 million (2023: DKK 26 million) being capitalised in relation

to the bond issue in May 2024, partly offset by ordinary amortisation of DKK 23 million (2023: DKK 29 million) recognised in finance

costs.

At 31 December 2024, the fair value of bonds was DKK 15,477 million (2023: DKK 13,474 million). The fair value of bonds was based

on the quoted market price on the Luxembourg Stock Exchange and measurement is categorised as Level 1 in the fair value

hierarchy due to the use of quoted market inputs.

For the remaining borrowings, the fair values are not materially different from their carrying amounts due to their short-term

nature.

CONSOLIDATED FINANCIAL STATEMENTS 136

4.2 Financing (continued)

4.2.2 Finance income and costs

(DKKm)

2024 2023

Interest income to companies within the ISS Group

1)

302 212

Interest income on cash and cash equivalents 216 98

Hedge ineffectiveness of interest rate swaps 12 -

Monetary gain on hyperinflation restatement 86 87

Finance income 616 397

Interest expenses on borrowings

1)

(506) (355)

Interest expenses on lease liabilities

1)

(153) (119)

Interest expence to companies within the ISS Group

1)

(94) (32)

Interest expenses on factoring

1)

(71) (71)

Bank fees (59)

(61)

Net interest on defined benefit obligations (33)

(24)

Amortisation of financing fees (non-cash)

1)

(23)

(29)

Commitment fees

(8)

(16)

Foreign exchange losses

(28) (100)

Finance costs

(975) (807)

Monetary gain on hyperinflation restatement related to the adjustment for hyperinflation (IAS 29) in Türkiye.

Interest expenses on borrowings comprised mainly interest on issued bonds. The increase compared to 2023 was driven by

issuance of new EMTNs in May 2024 and increased interest rates throughout 2024 of which DKK 65 million related to the interest

rate swaps on part of the bonds.

Foreign exchange losses were mainly driven by the unhedged TRY and EUR positions. The highest contributor was TRY, which

remained unhedged due to high cost. The decrease compared to 2023 was driven by TRY which depreciated 11% against DKK in

2024 compared to 39% against DKK in 2023.

1)

The total interest expensed, net determined on an amortised cost basis was DKK 545 million (2023: DKK 394 million).

Interest income on cash and cash equivalents The increase compared to 2023 was mainly driven by interest income on the

proceeds from the issued bond under the EMTN programme in May 2024 until repayment of the bond maturing in December

2024.

CONSOLIDATED FINANCIAL STATEMENTS 137

4.2 Financing (continued)

4.2.3 Cash flow impact from changes in borrowings

(DKKm)

Note

Issued

bonds

Lease

liabilities

Bank

loans

Debt to

companies

within the

ISS Group

Total

2024

At 1 January 14,073

2,282 311 19 16,685

FX adjustments 9 (15) (8) 1 (13)

Cash flows 1,459 (951) (259) 179 428

Acquisitions/divestments, net - 11 89 - 100

Lease additions 2.6 - 1,078 - - 1,078

Fair value adjustments 4.4 88 - - - 88

Other 6 17 109 6 138

At 31 December 15,635 2,422 242 205 18,504

2023

At 1 January 13,973 2,400 363 49 16,785

FX adjustments 31 (16) (118) (1)

(104)

Cash flows - (778) (144) (29) (951)

Acquisitions/divestments, net - (9) 207 - 198

Lease additions 2.6 - 906 - - 906

Fair value adjustments 4.4 51 - -

- 51

Reclass to Liabilities held for sale - (243) (11)

-

(254)

Other

18 22 14

- 54

At 31 December 14,073

2,282 311 19 16,685

Accounting policy

Issued bonds and bank loans are recognised initially at fair value net of transaction costs (financing fees) and subsequently at

amortised cost. Any difference between the proceeds and the nominal value is recognised in Finance costs over the term of the

loan using the effective interest method.

Lease liabilities are initially recognised at the present value of the payments to be made over the lease term. The present value is

calculated using the Group’s incremental borrowing rate if the interest rate implicit in the lease is not readily determinable.

Subsequently, the liability is measured at amortised cost and remeasured due to modifications such as changes in; 1) lease term,

2) the assessment to purchase the underlying asset, 3) future lease payments (e.g. a change in an index or rate), or 4) the Group’s

estimate of the amount expected to be payable under a residual guarantee.

CONSOLIDATED FINANCIAL STATEMENTS 138

4.3 Financial risk management

Risk assessment

Credit risk

- Low

• Not past due on trade receivables is around 90% (aging analysis)

• Expected credit losses on trade receivables are less than 2% of gross receivables

(credit ratings)

• The Group transacts only with financial institutions with a credit rating of at

least A- (cash and cash equivalents)

Note 2.1

Interest rate risk

- Low

• 58% of the Group's gross debt carried fixed rates (2023: 65%) Note 4.4

Liquidity risk

- Low

• Diversified funding portfolio of debt (bonds and bank loans)

• No financial covenants in our main Group facilities (certain covenants apply to the

local loan facility in Türkiye)

• Revolving credit facility of EUR 900 million (established in 2023) maturing in 2029

• Uncommitted facilities in place to ensure flexible and efficient liquidity management

• Duration of gross debt is 2.1 years (2023: 2.1)

Note 4.5

Currency risk

- Low

• The Group benefits from a natural hedge in having income, costs and investments in

the same functional currency, country-by-country

• 98.3% of the bonds and bank loans denominated in EUR (2023: 97.7%)

Note 4.6

Risk asessment at 31 December 2024

The Group is exposed to a number of financial risks arising from its operating and financing activities, mainly interest rate risk,

liquidity risk, currency risk and credit risk. It is management’s assessment that the Group’s exposure to these risks is low. The

Group has not identified additional financial risk exposures in 2024 compared to 2023.

Financial risks are managed centrally by Group Treasury based on the Financial Policy, which is reviewed and approved annually by

the Board of Directors of ISS A/S. Due to our decentralised business model, exposure to credit risk on trade receivables and

expected credit losses is however managed locally in the operating entities, see 2.1, Trade receivables and credit risk. Through our

risk management procedures, financial risks are monitored and reduced to an acceptable level.

The Group’s objectives and policies for measuring and managing risk exposure are explained in the respective notes. An overview

of financial risks and impact assessment at 31 December 2024 is provided in the table below.

On an ongoing basis the Group considers whether the financial risk management approach appropriately addresses the risk

exposures.

It is the Group’s policy to mitigate risk exposure derived from its business activities. Group policy does not allow taking speculative

positions in the financial markets.

CONSOLIDATED FINANCIAL STATEMENTS 139

4.4 Interest rate risk

– low exposure

4.4.1 Interest-bearing borrowings

2024 2023

(DKKm)

Maturity

Nominal

interest rate

Nominal

value

Carrying

amount

Carrying

amount

Issued bonds (fixed interest rate)

EMTNs (EUR 300 million)

2024 2.13% -

- 2,237

EMTNs (EUR 500 million)

1)

2025 1.25%

3,729 3,711 3,660

EMTNs (EUR 500 million) 2026 0.88% 3,729 3,721 3,713

EMTNs (EUR 600 million) 2027 1.50% 4,474 4,468 4,463

EMTNs (EUR 500 million)

1)

2029 3.88% 3,729 3,735 -

15,661 15,635

14,073

Bank loans (floating interest rate)

Loan facility Türkiye (TRY)

2026

TLFREF

52 51

97

Bank loans and overdrafts (Multi) - - 213 191

214

265 242 311

Intra-Group (floating interest rate)

Debt to companies within the ISS Group 205 205 19

205 205 19

Interest rate sensitivity

• At least 50% of the Group’s gross debt must carry fixed interest rates directly or through derivatives

• The fixed/floating ratio is measured on a monthly basis

• Interest rate swaps (fair value hedge) are used to manage the fixed/floating ratio on gross debt

Mitigation

Interest rate risk

Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair value of financial

instruments. Exposure relates to bank loans, bonds or interest rate swaps with floating interest rates.

Risk management policy

1) The carrying amount included the accumulated fair value adjustments at

31 December 2024 of the hedged items, see 4.4.2 below.

An increase in relevant interest rates of 1%-point, with all other variables held constant, would have decreased net profit and

equity by DKK 11 million (2023: DKK 13 million).

The estimate was based on the Group’s floating rate borrowings, i.e. disregarding cash and cash equivalents, as the level at 31

December is typically the highest in the year and thus not representative for the purpose of this analysis.

CONSOLIDATED FINANCIAL STATEMENTS 140

4.4 Interest rate risk (continued)

4.4.2 Fair value hedge

(DKKm)

Nominal

amount

Carrying

amount

Accumulated fair

value adj.

Change

in FV

Interest rate swap EUR 300 million (15) (15)

42

EMTN 2025 EUR 500 million 3,711 15

(42)

Interest rate swaps

EUR 250 million 58

58

EMTN 2029 EUR 500 million 3,735 (46) (46)

Accounting policy

Interest rate swaps are used to hedge the exposure to fair value changes of the Group's fixed rate bonds. Hedge accounting is

applied when hedges meet the qualifying criteria for hedge accounting.

Fair value measurement takes current market data into account. The Group uses valuation techniques that are appropriate in the

circumstances and for which sufficient data are available to measure fair value. Measurement is categorised as Level 2 in the fair

value hierarchy as it is based on directly observable market data.

The change in the fair value of the interest rate swap (the hedging instrument) is recognised in profit or loss under Finance

income or Finance costs. The change in the fair value of the hedged item (the bond) attributable to the risk being hedged is

recognised as part of the carrying amount of the hedged item and is also recognised in profit or loss under Finance income or

Finance costs. The gain or loss relating to the ineffective portion is recognised in profit or loss under Finance income or Finance

costs.

The unamortised fair value is recognised in profit or loss if the hedged item is derecognised.

In 2024, DKK 12 million (income) was recognised in profit or loss related to the ineffective part of the interest rate swaps (2023: no

ineffectiveness).

At 31 December 2024, the Group had interest rate swap agreements with a total nominal amount of EUR 550 million whereby the

Group receives a fixed rate interest and pays a variable interest rate on the nominal amount. The swaps hedge the exposure to

fair value changes of the Group’s fixed rate bond and mature in 2025 and 2029, which equals the maturity of the bonds.

CONSOLIDATED FINANCIAL STATEMENTS 141

4.5 Liquidity risk

Liquidity risk

– low exposure

4.5.1 Financial liabilities

Contractual maturities

(DKKm)

Carrying

amount

Contractual

cash flows

< 1

year

1-2

years

2-3

years

3-4

years

4-5

years

> 5

years

2024

Bonds and bank loans 15,877 16,859 4,256 3,984 4,683 145

3,791 -

Lease liabilities 2,422 2,748

926 663 449 285

166 259

Debt to companies within the ISS Group 205

211 211 - - -

- -

Trade payables and other

1)

6,087 6,087 6,087

- - - -

-

Deirvatives 30 30 30

- - - - -

Total financial liabilities 24,621 25,935 11,510 4,647 5,132 430 3,957

259

2023

Bonds and bank loans 14,384 14,998 2,725 3,905 3,852 4,516 - -

Lease liabilities 2,282 2,519 1,002 551 370 232 127 237

Debt to companies within the ISS Group 19 20 20 - - -

- -

Trade payables and other

1)

6,380 6,380

6,380 - - - - -

Derivatives 70

70 70 - - -

- -

Total financial liabilities 23,135 23,987

10,197

4,456 4,222 4,748 127

237

1)

Including payable royalties and management fees to ISS World Services A/S and joint taxation contribution.

The risk implied from the values reflects the one-sided scenario of cash outflows only. Trade payables and other financial

liabilities are mainly used to finance operating assets such as trade receivables and property and equipment.

Liquidity risk results from the Group’s potential inability or difficulty in meeting the contractual obligations associated with its

financial liabilities due to insufficient liquidity

• Maintain an appropriate level of short- and long-term liquidity reserves (liquid funds and committed credit facilities)

• Maintain a smooth maturity profile in terms of different maturities

• Maintain access to diversified funding sources

• Maintain a duration of gross debt above 2 years

• Raising capital is managed centrally by Group Treasury to ensure efficient liquidity management

• Group Treasury monitors the risk of insufficient liquidity on a daily basis

• Liquidity is transferred to/from ISS Global A/S, which operates as the Group’s internal bank

• For day-to-day liquidity management cash pools have been established in the majority of the local entities

Mitigation

Risk management policy

The contractual maturities of financial liabilities above are based on the undiscounted contractual cash flows, i.e. including

interest payments estimated based on market expectations at 31 December.

CONSOLIDATED FINANCIAL STATEMENTS 142

4.5 Liquidity risk (continued)

- Nominal values

4.5.2 Liquidity reserves

(DKKm) 2024

2023

Cash and cash equivalents 6,829 6,093

Hereof restricted cash (35)

(46)

Unused revolving credit facilities

6,712

6,708

13,506 12,755

Not readily available (751)

(686)

Readily available liquidity 12,755 12,069

Unused revolving credit facilities The Group has a EUR 900 million committed revolving credit facility maturing in June 2029 with

a one year extension option. In addition, uncommitted credit facilities are available in countries and at Group level, which are not

considered part of the readily available liquidity. At 31 December 2024, these amounted to DKK 4.2 billion of which DKK 0.0

billion was drawn (2023: DKK 3.9 billion of which DKK 0.1 billion was drawn).

Not readily available Cash is considered readily available when upstreaming to the parent company (ISS Global A/S) is possible

within five days. In a number of countries, transfer to ISS Global A/S is assessed to take more than five days due to local

administrative processes, and thus such cash is not deemed readily available.

Liquidity reserves

The maturity profile of the Group’s current financing, i.e. issued

bonds, bank loans and committed bank facilities (excluding interest

payments) is illustrated in the chart to the right.

Maturity profile

Cash and cash equivalent reflects the strong liquidity position of the Group. The level is typically highest at 31 December and not

a representative level for the rest of the year.

Restricted cash DKK 35 million of the total cash and cash equivalents at 31 December 2024 was placed on blocked or restricted

bank accounts due to legal cases or tax-related circumstances.

CONSOLIDATED FINANCIAL STATEMENTS 143

4.6 Currency risk

Risk management policy

4.6.1 Borrowings

(DKKm)

Currency

exposure

(nominal)

Currency

swaps

(contractual)

Exposure,

net

Increase

in FX

Profit

or loss

Equity

2024

EUR/DKK (13,736) 10,737 (2,999) 1% (30)

(30)

TRY/DKK

1)

122 156 278 30% 61 83

USD/DKK 902 (1,111)

(209) 10% (21) (21)

Other/DKK (1,245) 1,544

299 10% 30

30

Total (13,957) 11,326

(2,631)

2023

EUR/DKK (15,320) 8,104 (7,216) 1% (72)

(72)

TRY/DKK

1)

194 67 261 30% 62 78

USD/DKK 972 (1,132) (160) 10% (16) (16)

Other/DKK (1,780)

2,070 290 10% 29 29

Total (15,934) 9,109 (6,825)

1)

TRY is not hedged du to high costs of hedging.

Foreign currency sensitivity

Currency risk

Mitigation

The Group's exposure to currency risk on transaction level is low since income, costs and investments are in the same functional

currency country-by-country. Currency risk therefore predominantly arises from funding and investments in subsidiaries.

A change in relevant currencies, with all other variables held constant, would have impacted profit or loss and equity with the

amounts above. The analysis is based on the Group’s internal monitoring of currency exposure on borrowings, intercompany

loans, external long-term receivables, as well as cash and cash equivalents.

• It is Group policy to pool funding activities centrally and fund investments in subsidiaries through a combination of

intercompany loans and equity

• Currency risk on intercompany loans is generally hedged against DKK or EUR when exposure exceeds DKK 5 million.

Some currencies cannot be hedged within a reasonable price range why correlation to a proxy currency is considered

and, if deemed appropriate, proxy hedging is applied

• Exposure to EUR is monitored but not hedged due to the fixed rate exchange policy between DKK/EUR

• Currency risk on net investments are as a main policy not hedged

• Currency swaps are used to hedge currency risk on borrowings (external), intercompany balances and long-term

receivables (external)

• Currency exposure on borrowings (external), intercompany balances and cash and cash equivalents is measured

at least on a weekly basis

Currency risk arises from changes in exchange rates, and affects the Group’s result, investments or value of financial instruments.

Sensitivity

The impact on profit or loss related to a change in TRY is adjusted for the translation effect related to receivables considered part

of the net investment in Türkiye.

– low exposure

CONSOLIDATED FINANCIAL STATEMENTS 144

4.6 Currency risk (continued)

4.6.2 Translation risk

Impact on profit or loss

2024

2023

TRY (29.6%) (30.7%)

GBP 2.8% (1.8%)

CHF 2.1% 3.4%

USD (0.0)%

(2.7%)

AUD (0.6%)

(6.7%)

NOK

(1.8)%

(11.4%)

SEK 0.5% (7.2%)

HKD 0.3% (2.7%)

EUR 0.1%

0.2%

( ) = Weakened against DKK

Foreign currency sensitivity

(DKKm)

Revenue

Operating

profit before

other items

Royalty expense

TRY 1,986 132 30

GBP 1,137 47 20

CHF 705 60 12

USD 662 32 13

AUD

502 43

10

NOK

373 31

7

SEK 311 20 6

HKD 242 16 5

EUR 239 14 4

Other 1,071 46 21

Total 7,228 441 128

A 10% change (TRY: 30% and EUR: 1% change) in relevant currencies, with all other variables held constant, would have impacted

profit or loss with the amounts below.

Excluding hyperinflation impact in Türkiye, changes in average exchange rates resulted in a decrease in Group revenue of DKK

1,346 million or 1.7% (2023: decrease of DKK 2,320 million or 3.1%) and a decrease of the Group’s operating profit before other

items of DKK 109 million or 2.6% (2023: decrease of DKK 157 million or 4.1%).

Change in average FX rates

In 2024, changes in average FX rates resulted in a decrease in Group revenue of DKK 587 million or 0.7% (2023: decrease of DKK

2,476 million or 3.4%) and a decrease of the Group’s operating profit before other items of DKK 73 million or 1.7% (2023: decrease

of DKK 175 million or 4.6%), including the impact of hyperinflation in Türkiye.

CONSOLIDATED FINANCIAL STATEMENTS 145

SECTION 5

Tax

5.1 Income tax

5.1.1 Tax expense and effective tax rate

Tax in profit or loss

(DKKm) 2024 2023

Current tax 690

450

Deferred tax (64)

14

Prior year adjustments, net (53)

(9)

Income tax

573

455

Effective tax rate

2024 2023

Statutory income tax rate, Denmark 22.0 % 22.0 %

Foreign tax rate differential, net 0.4 % 0.0 %

Total 22.4% 22.0 %

Non-tax-deductible expenses less non-taxable income (2.3)% (0.3)%

Prior year adjustments, net (1.6)% (0.4)%

Change in valuation of tax assets, net (2.0)% (4.8)%

Changes in tax rates 0.3 % 0.4 %

Hyperinflation 0.5 % 1.1 %

Other taxes 0.7 % 0.4 %

Effective tax rate 18.0% 18.4%

Development in 2024

Hyperinflation related to the hyperinflation adjustment in Türkiye.

Other taxes mainly comprised withholding tax, e.g. in Denmark.

Change in valuation of tax assets, net related mainly to release of valuation allowance on tax losses in Germany due to expected

improvements in future profitability (2023: Netherlands and Germany).

Non-tax-deductible expenses less non-taxable income comprised various income and expenses. In 2024, the net position was

driven mainly by the positive impact of interest limitation rules in Denmark.

Income tax amounted to DKK 573 million (2023: DKK 455 million), resulting in an effective tax rate of 18.0% (2023: 18.4%). The

effective tax rate was favourably influenced by interest limitation rules and release of valuation allowances on deferred tax assets

in Germany, whereas hyperinflation adjustments (IAS 29) in Türkiye impacted negatively.

CONSOLIDATED FINANCIAL STATEMENTS 146

5.1 Income tax (continued)

OECD Pillar Two

The Group is subject to the OECD Pillar Two rules, which aim to ensure that multinational enterprises (MNEs) pay a minimum level

of tax. Denmark, where ISS A/S is incorporated, has enacted Pillar Two legislation, which took effect on 1 January 2024. The Group

applies the IAS 12 exception, allowing it to avoid recognising or disclosing deferred tax assets and liabilities related to Pillar Two

income taxes.

Under the new legislation, the Group will be obligated to pay a top-up tax for any subsidiary that does not meet the Pillar Two

minimum effective tax rate of 15%. However, the new rules include a set of “Transitional Safe Harbor” exemptions that lessen the

requirement to submit a full Pillar Two minimum tax calculation, provided the Group meets at least one of the three Safe Harbor

tests. In 2024, the Group can leverage these Safe Harbor exemptions where it operates based on the tests and no or minimal top-

up tax will need to be paid.

Management has evaluated the impact of the Pillar Two legislation and anticipates that during future years it may increase the

Group’s annual effective tax rate by approximately 0.5 to 1.0 percentage points, depending on future developments and the

Group’s evolving tax position. This evaluation is based on the current understanding of the legislation and the Group’s existing tax

positions. The Group will continue to monitor developments and ensure compliance with the new requirements.

CONSOLIDATED FINANCIAL STATEMENTS 147

5.2 Deferred tax

(DKKm) 2024 2023

2024

2023

Tax losses carried forward

587 561

-

Goodwill 4

4 420 423

Customer contracts 7

7 255 187

Property and equipment (incl. right-of-use) 151 116 567 471

Provisions, lease and other liabilities 982 918 202 287

Pensions 195 157 97 82

Set-off within legal tax units/jurisdictions (1,105) (847) (1,105) (847)

Total 821 916 436 603

Development

(DKKm)

2024

2023

Liabilities, net at 1 January (313) (361)

Prior year adjustments, net (14) 26

FX adjustments 21 26

Hyperinflation restatement 3 (4)

Acquisitions/divestments, net 19 (2)

Actuarial (gains)/losses on pensions (36)

(33)

Reclass to Assets/(Liabilities) held for sale - 21

Tax on profit before tax

(64) 14

Liabilities, net at 31 December (384) (313)

5.2.2 Unrecognised deferred tax assets

Prior year adjustments, net mainly related to adjustment of tax deductions (temporary differences) in the final tax returns.

Acquisitions/divestments, net in 2024 related mainly to adjustments to previous years divestments.

5.2.1 Recognised deferred tax

At 31 December 2024, the Group had unrecognised deferred tax assets which comprised tax losses carried forward and other

deductible temporary differences of DKK 952 million (2023: DKK 1,032 million) mainly related to Germany.

Assets

Liabilities

Reclass related to uncertain tax positions being reclassified from deferred tax to tax payables due to changed presentation.

CONSOLIDATED FINANCIAL STATEMENTS 148

5.2 Deferred tax (continued)

Accounting estimates

Accounting policy

Deferred tax is provided using the liability method on temporary differences between tax bases of assets and liabilities and their

carrying amounts, except for goodwill which is not deductible for tax purposes. Where alternative taxation rules can be applied to

determine the tax base, deferred tax is measured according to management’s intended use of the asset or settlement of the

liability.

The Group has applied the mandatory exception for recognition and disclosure of deferred tax assets and liabilities arising from

Pillar Two Income taxes.

Deferred tax is measured according to the taxation rules and tax rates in the respective countries applicable at the reporting date

when the deferred tax becomes current tax.

Management believes that the provisions made are adequate. However, the actual obligations may deviate as they depend on the

result of litigations and settlements with the relevant tax authorities.

Deferred tax assets, including the tax base of tax loss carry forwards, are recognised in non-current assets at the expected value of

their utilisation, either as a set-off against tax on future income, or as a set-off against deferred tax liabilities in the same legal tax

entity and jurisdiction.

Deferred tax assets relating to tax losses carried forward are recognised, when management assesses that these can be offset

against positive taxable income in the foreseeable future. The assessment is made at the reporting date taking into account the

impact from limitation in interest deductibility and local tax restrictions in utilisation of tax losses. Future taxable income is based

on financial forecasts approved by management and expectations for operational development, mainly in terms of organic growth

and operating margin, i.e. the cash flow projections made for the purpose of the Group’s impairment tests, see 3.2, Impairment

tests. These represent management’s best estimates, but are by nature associated with significant uncertainty.

Uncertain tax positions As part of operating a global business, disputes with tax authorities around the world may occur.

Management periodically evaluates positions taken in tax returns with respect to situations where applicable tax regulation is

subject to interpretation and considers whether it is probable that a tax authority will accept an uncertain tax treatment. The

possible outcome of uncertain tax positions is measured based on management’s best estimate of the amount required to settle

the obligation and recognised in tax payables or income tax depending on the tax position.

CONSOLIDATED FINANCIAL STATEMENTS 149

SECTION 6

Remuneration

6.1 Management remuneration

6.1.1 Key management personnel

(DKK thousand)

Board EGMB

Corporate

Senior

Officers

2024

Base salary and non-monetary benefits 9,121 11,776 38,523

Annual bonus (STIP) - 10,733 21,556

Sign-on bonus - 1,552 -

Pensions - 1,113 2,086

Share-based payments -

5,117 13,943

Severance payments 257

-

1,461

Total

9,378 30,291

77,569

2023

Base salary and non-monetary benefits 9,176 13,484 50,671

Annual bonus (STIP) - 7,176 15,709

Sign-on bonus -

- 11,658

Pensions -

386 3,916

Share-based payments

1)

-

(4,603) 18,664

Severance payments - -

16,161

Total 9,176 16,443

116,779

The management team of the ISS Global Group formally consists of the Executive Management and the Board of Directors of ISS

Global A/S. Members of the management team are not separately remunerated for their duties performed in the ISS Global

Group.

As the ISS Global Group has no operating activities independently of the ISS A/S Group, it relies on the management team of the

ISS A/S Group who has authority and responsibility for planning, implementing and controlling the ISS Global Group’s activities.

Consequently, key management personnel of the ISS A/S Group is also considered key management personnel of the ISS Global

Group.

Remuneration to key management personnel of the ISS A/S Group is specified below:

Remuneration policy is described in the Remuneration report which is available at http://inv.issworld.com/iss-remuneration-

reports.

1)

Including a cost reversal of DKK 7 million due to forfeited PSUs as the Group CEO Jacob Aarup-Andersen left ISS.

EGM

On 3 June 2024, Mads Holm joined ISS as Group CFO. In the period until 31 July 2024, the EGMB comprised only one member, the

Group CEO.

CONSOLIDATED FINANCIAL STATEMENTS 150

6.2 Share-based payments

6.2.1 Long-term incentive programme

Fair value and profit or loss impact

LTIP 2021

1)

LTIP 2022 LTIP 2023 LTIP 2024

Fair value (DKKm)

At grant date 116 129 116 113

At 31 December 2024 - 93 95 105

Profit or loss impact (DKKm)

Recognised in 2024 7 35 26 21

Not yet recognised - 4

29 62

PSUs and participants (number)

Participants 122

140 147 132

PSUs granted 1,362,540

1,448,791 1,011,072 1,171,299

PSUs expected to vest (of outstanding PSUs), % 64% 75% 44% 51%

1)

Vested in March 2024.

Fair value assumptions

LTIP 2021 LTIP 2022 LTIP 2023 LTIP 2024

At the time of grant

Share price, DKK

1)

111-153 117-153 122-153 124-127

Expected volatility

2)

41.2% 42.3% 33.8% 32.8%

Expected life of grant, years 3 3 3 3

Risk-free interest rate

2)

(0.6)%-0.9%

(0.1%)-1.5% 1.0%-3.1% 0.8%-4.2%

1)

Based on five-day average.

2)

Based on observable market data for peer groups.

To drive delivery of long-term financial results, retention of leaders and alignment to shareholder value creation, the Group has

implemented two share-based incentive programmes (SIP):

A long-term incentive programme (LTIP)

special incentive programme (SIP)

Subject to certain criteria, the PSUs will vest after three years.

Members of the EGM and other senior officers of the Group are granted a number of performance share units (PSUs) under the

annual LTIP. Participants are compensated for any dividend distributed between time of grant and time of vesting. Upon vesting,

each PSU entitles the holder to receive one share at no cost.

In 2024, the ISS A/S Group recognised a cost of DKK 93 million (2023: DKK 72 million) of which DKK 5 million (2023: DKK (5)

million) were recognised in ISS A/S and DKK 37 million (2023: DKK 34 million) were recognised in ISS World Services A/S (see

overview below for PSUs and overview in 6.2.2, Special incentive programmes (SIP) for RSUs).

CONSOLIDATED FINANCIAL STATEMENTS 151

6.2 Share-based payments (continued)

Vestign criteria

TSR peers are the Nasdaq Copenhagen OMX C25 and a peer group of comparable international service companies.

Vested programmes

Furthermore, in March 2025, the PSUs granted under LTIP 2022 will vest with 75% based on the annual EPS and TSR

performances for 2022, 2023 and 2024.

In March 2024, the LTIP 2021 programme vested. Based on the annual EPS and TSR performances for 2021, 2022 and 2023, 64%

of the granted PSUs vested at a weighted average price of DKK 126 at the date of exercise. After this vesting, no further PSUs are

outstanding under the LTIP 2021 and the programme has lapsed.

The vesting criteria are total shareholder return (TSR), measured relative to peer group performance, and earnings per share

(EPS).

• TSR: 40%

• EPS: 40%

• Service-based objective: 20%

The weight of the individual criteria are:

CONSOLIDATED FINANCIAL STATEMENTS 152

6.2 Share-based payments (continued)

Outstanding PSUs

LTIP 2021 (vested in 2024) EGMB

Corporate

Senior

Officers

Other

senior

officers

Total

At 1 January 2023 148,297 185,756 759,596

1,093,649

Granted 451 18,857 26,414

45,722

Forfeited

(118,308) -

(50,695)

(169,003)

Transferred -

(57,053)

57,053 -

Outstanding at 31 December 2023 30,440

147,560 792,368 970,368

Exercised (19,631) (95,162) (510,920) (625,713)

Expired (10,809) (52,398) (281,448)

(344,655)

Outstanding at 31 December 2024 - - -

-

LTIP 2022 (vesting in 2025)

At 1 January 2023

139,713

237,859

842,534

1,220,106

Granted 516 17,149 57,460 75,125

Forfeited

(105,396) (6,085) (102,561)

(214,042)

Transferred -

(58,320) 58,320 -

Outstanding at 31 December 2023 34,833

190,603 855,753 1,081,189

Granted 646

3,536 15,629 19,811

Forfeited - (13,648) (27,653) (41,301)

Outstanding at 31 December 2024 35,479 180,491 843,729 1,059,699

LTIP 2023 (vesting in 2026)

Granted 47,698 191,237

755,981

994,916

Forfeited -

(17,357) (100,948) (118,305)

Transferred - (30,068) 30,068 -

Outstanding at 31 December 2023 47,698 143,812 685,101 876,611

Granted 883 2,668 12,605 16,156

Forfeited - (13,823) (48,084) (61,907)

Outstanding at 31 December 2024 48,581 132,657

649,622 830,860

LTIP 2024 (vesting in 2027)

Granted 115,713 163,197 892,389 1,171,299

Forfeited - (19,452) (60,697) (80,149)

Outstanding at 31 December 2024 115,713 143,745 831,692 1,091,150

EGM

CONSOLIDATED FINANCIAL STATEMENTS 153

6.2 Share-based payments (continued)

6.2.2 Special incentive programmes (SIP)

Fair value and profit or loss impact

SIP 2023 SIP 2024

Fair value (DKKm)

At grant date 1 9

At 31 December 2024 1 9

Profit or loss impact (DKKm)

Recognised in 2024 1

3

Not yet recognised -

6

RSUs and participants (number)

Participants 4 6

RSUs granted 10,365 72,772

Expected to vest (of outstanding RSUs), % 100% 100%

Fair value assumptions

SIP 2023 SIP 2024

At the time of grant

Share price, DKK 122 124-127

Expected life of grant, years 1.5 1.5

Vested programmes

In 2024, a total of 72,772 RSUs were granted to the new Group CFO and certain Other Senior Officers under the SIP 2024

programme.

In March 2025, the RSUs granted under the SIP 2023 programme will vest 100% subject to achievement of individual service

criteria.

No SIP programmes have vested in 2024.

The Group has a Special Incentive Programme (SIP) under which Restricted Share Units (RSUs) are granted to certain EGM

members and Other senior officers of the Group. Subject to individual service criteria, the RSUs will vest after 1.5 years. Upon

vesting, each RSU entitles the holder to receive one share at no cost.

CONSOLIDATED FINANCIAL STATEMENTS 154

6.2 Share-based payments (continued)

Outstanding RSUs

SIP 2023

(vested in 2025)

EGMB

Other

senior

officers

Total

Granted - 10,178

10,178

Outstanding at 31 December 2023

-

10,178

Granted 187 187

Outstanding at 31 December 2024 - 10,365 10,365

SIP 2024

(vesting in 2026)

Granted 3,003 69,769 72,772

Outstanding at 31 December 2024 3,003 69,769 72,772

Accounting policy

The value of services received in exchange for granted performance-based share units (PSUs) and restricted share units (RSUs)

are measured at fair value at the grant date and recognised in employee costs over the vesting period with a corresponding

increase in debt to ISS A/S.

The fair value of granted PSUs under the long-term incentive programme is measured using a generally accepted valuation

model taking into consideration the terms and conditions upon which the PSUs were granted including market-based vesting

conditions (Total Shareholder Return (TSR)), see Vesting criteria in 6.2.1. Fair value assumptions are disclosed in the tables in 6.2.1

and 6.2.2.

On initial recognition, an estimate is made of the number of PSUs and RSUs expected to vest. The estimated number is revised for

changes in the number of PSUs and RSUs expected to vest due to non-market based vesting conditions.

CONSOLIDATED FINANCIAL STATEMENTS 155

SECTION 7

Other required disclosures

7.1 Pensions and similar obligations

7.1.1 Pension schemes

The Group has a significant number of pension schemes with different characteristics. The majority of the schemes are defined

contribution plans, but in a number of countries, the Group is also party to defined benefit plans.

Defined contribution plans

Under these schemes contributions are paid to a publicly or privately administered pension plans. The Group has no further

payment obligations once the contributions have been paid. In 2024, contributions amounted to DKK 1,243 million (2023: DKK

1,156 million), or 84% of the Group’s pension costs (2023: 83%).

Defined benefit plans

Under these schemes the obligation towards the employees and risk associated with future developments in salary, interest rate,

inflation, mortality, etc. rests with the Group. The plans are primarily based on years of service, and benefits are determined on the

basis of salary and position.

The majority (93%) of the obligations are funded with assets placed in independent pension funds. In some countries, primarily

Türkiye, Sweden, Hong Kong and Mexico, the obligation is unfunded. For unfunded plans, the obligation amounted to DKK 728

million or 7% of the present value of the total gross obligation (2023: DKK 665 million or 8%).

Multiemployer pension plans

In the US and the Netherlands, the Group participates in multiemployer pension schemes that by nature are defined benefit plans.

Due to the unavailability of necessary information, including information on surplus or deficit if any, from the relevant funds, the

Group account for the schemes as defined contribution plans.

In 2024, the Group contributed DKK 74 million (2023: DKK 64 million) to multiemployer pension plans of which DKK 32 million

(2023: DKK 27 million) related to the Netherlands and DKK 42 million (2023: DKK 37 million) to the US. In total, these corresponded

to 6% of the Group’s total contribution to defined contribution plans (2023: 6%).

7.1.2 Major defined benefit plans

The Group's largest defined benefit plans:

Switzerland

Participants are insured against the financial consequences of:

• retirement;

• disability; and

• death

The pension plans guarantee a minimum interest credit and fixed conversion rates at retirement and include a risk-sharing

element between ISS and the plan participants.

Contributions are paid by both ISS and the employees and the plans must be fully funded. In case of underfunding, recovery

measures must be taken, such as additional financing from ISS or from ISS and the employees, reduction of benefits or a

combination of both.

Germany

The majority of the pension plans guarantee a life-long monthly pension payment after retirement. Most of the plans are closed for

new entrants. Contributions are paid by ISS, and the plans do not include a risk-sharing element.

Participants are insured against the financial consequences of:

• retirement;

• disability; and

• death

CONSOLIDATED FINANCIAL STATEMENTS 156

7.1 Pensions and similar obligations (continued)

UK

7.1.3 Defined benefit plans, net obligation

(DKKm)

Obligation

(present value)

Plan assets

(fair value)

Total

Obligation

(present value)

Plan assets

(fair value)

Total

At 1 January 8,755

9,338 (583) 7,953 8,663 (710)

Current service costs 208 - 208 199 -

199

Interest on obligation/plan assets 216 183 33 257

233

24

Past service costs

(2)

-

(2)

18

- 18

Recognised in profit or loss 422 183

239 474 233

241

Remeasurement (gain)/loss:

Demographic assumptions (13) -

(13) (7) - (7)

Financial assumptions 254 -

254 399 - 399

Experience adjustments (39) - (39) 90

- 90

Return on plan assets - 62 (62) -

20 (20)

Asset ceiling - (28)

28 - 299

(299)

Recognised in Other comprehensive income

202

34

168 482 319

163

FX adjustments (65) (58)

(7) 328 501

(173)

Contributions, plan participants 179 179 - 173 173

-

Contributions, employer - 237 (237) - 260 (260)

Benefits paid (548) (470) (78) (605)

(512) (93)

Asset ceiling -

28 (28) -

(299) 299

Acquisitions/divestments, net 150

165 (15) -

- -

Reclass 641

355

286 (50) -

(50)

Other changes

357 436 (79) (154)

123 (277)

At 31 December 9,736 9,991 (255) 8,755 9,338 (583)

Recognised in the statement of financial position

(DKKm)

2024 2023

Carrying amount of defined benefit plans (255) (583)

Accumulated impact from asset ceiling

1)

1,207 1,172

Defined benefit obligation, net

2)

952 589

Other long-term employee benefits 364 546

Pensions and similar obligations 1,316 1,135

1)

Including an FX adjustment on the opening balance of DKK 7 million (2023: DKK 119 million).

2)

Including an asset of DKK 391 million (2023: DKK 326 million) related to defined benefit plans in the UK.

The pension plans guarantee a defined benefit pension at retirement on a final salary basis, but do not provide any insured

disability benefits. The majority of the plans does not include a risk-sharing element between ISS and the plan participants.

Participants are insured against the financial

consequences of:

• retirement; and

• death

2023

2024

CONSOLIDATED FINANCIAL STATEMENTS 157

7.1 Pensions and similar obligations (continued)

Development in 2024

Contributions in 2024

7.1.4 Reimbursement rights in Germany

In 2024, the contractual terms of a specific pension plan in Germany were reassessed, which resulted in recognition of a gross

obligation of DKK 641 million, plan assets of DKK 355 million and a reimbursement right of DKK 286 million. The reimbursement

right does not qualify for recognition as a plan asset and has therefore been reported in Other financial assets. The net impact of

the adjustment on the Group’s balance sheet is neutral.

Actuarial calculations and valuations are performed annually for all major plans. The present value of defined benefit obligations is

determined based on country-specific assumptions about the future development in variables such as salary levels, interest rates,

inflation, mortality and guaranteed benefits. Assumptions are assessed at the reporting date.

The discount rates used for calculating the present value of expected future cash flows are based on the market yield of high-

quality corporate bonds or government bonds with a maturity approximating to the terms of the defined benefit obligations.

Accounting estimates

The net pension liability increased by DKK 363 million in 2024, mainly due to a prior year adjustment in Germany, see 7.1.4 below.

Additionally, the net impact from actuarial calculations was a loss of DKK 168 million, mainly stemming from actuarial losses of DKK

254 million due to decreased discount rates (financial assumptions), primarily in Switzerland. This was partly offset by a net positive

return on plan assets of DKK 62 million as market conditions for our plan assets in Switzerland (mainly listed shares and bonds)

improved compared to 2023, resulting in a gain of DKK 212 million. However, in the UK a loss on plan assets of DKK 157 million

was realised and thus significantly reducing the positive impact.

In 2024, the Group contributed DKK 315 million to defined benefit plans (2023: DKK 353 million). The Group expects to contribute

DKK 318 million in 2025.

In recent years, we have experienced strong asset returns and actuarial gains, which led to a significant surplus on the major plans

in Switzerland and the UK. Due to surplus restrictions (ISS does not have access to the overfunding), a significant asset ceiling has

been recognised in prior years. In 2024, the net change in the asset ceiling was an increase of DKK 28 million (2023: decrease of

DKK 299 million) resulting in an accumulated impact from the asset ceiling of DKK 1,207 million by the end of 2024 (2023: DKK

1,172 million).

CONSOLIDATED FINANCIAL STATEMENTS 158

7.1 Pensions and similar obligations (continued)

Other long-term employee benefits are calculated as defined pension plans, except that actuarial gains and losses are recognised

in Employee costs. Other long-term employee benefits comprise jubilee benefits, long-service or sabbatical leave, etc.

Defined contribution plans The Group’s contributions are recognised in Employee costs when the related service is provided.

Defined benefit plans The Group’s net obligation is calculated by a qualified actuary using the projected unit credit method,

separately for each plan by estimating the amount of future benefits that employees have earned in return for their service in the

current and prior periods. The present value less the fair value of plan assets is recognised in Pensions and similar obligations. If

the calculation results in a net asset, the asset is recognised if it offsets refunds from or leads to reduced future contributions to

the plan. Consideration is given to applicable minimum funding requirements.

Pension costs are calculated based on actuarial estimates and financial expectations at the beginning of the year. Service costs are

recognised in Employee costs and net interest is recognised in Finance costs. Remeasurements (actuarial gains/losses), comprising

the differences between the expected development in pension assets and liabilities and the realised amounts at the reporting date

as well as the effect of asset ceiling are recognised in other comprehensive income.

When the benefits are changed or a plan is curtailed, the resulting change in benefits that relates to past service or the gain or loss

on curtailment is recognised in Employee costs. Gains and losses on settlements are recognised when incurred.

Multiemployer plans The Group does not have the necessary information to account for the schemes as defined benefit plans, and

they are therefore accounted for as defined contribution plans.

Accounting policy

The aggregated value of unfunded plans is presented as a net liability and the aggregated value of funded plans are presented as

a net asset.

CONSOLIDATED FINANCIAL STATEMENTS 159

7.1 Pensions and similar obligations (continued)

7.1.5 Plan assets

(DKKm)

Switzer-

land

UK

Ger-

many

Other Total

2024

Investment funds:

Listed shares

1)

3,036 - - -

3,036

Corporate bonds

1)

1,738 - - -

1,738

Property 1,729 - -

-

1,729

Other 1,209 23 40

-

1,272

Corporate bonds - 700 159

-

859

Government bonds

- 362 -

-

362

Cash/cash equivalents 235 123 11 - 369

Insurance contracts 226

- - 156 382

Listed shares

1)

- 1 113 - 114

Other - - 88 42 130

Total 8,173 1,209 411 198

9,991

2023

Investment funds:

Listed shares

1)

2,926 - - - 2,926

Corporate bonds

1)

1,755 - - - 1,755

Property 1,781 - -

- 1,781

Other 1,076 302 -

- 1,378

Corporate bonds - 544 -

- 544

Cash/cash equivalents 41 250 -

-

291

Insurance contracts

258

-

- 139 397

Listed shares

1)

- 1 - -

1

Other - 186 47 32 265

Total 7,837 1,283 47 171 9,338

1)

Traded in active markets (listed).

The majority of the Group’s pension obligations are funded with assets placed in independent pension funds (unlisted), mainly in

Switzerland, the UK and Germany.

Plan assets are predominantly placed in investment funds that invest in listed shares, corporate bonds, property or other, such as

investments in infrastructure and energy projects and senior loans.

CONSOLIDATED FINANCIAL STATEMENTS 160

7.1 Pensions and similar obligations (continued)

7.1.6 Actuarial assumptions

2024 2023

CHF GBP EUR

Other CHF GBP EUR Other

Discount rates 1.0% 5.5-5.6% 3.5-4.2% 3.0-28.5% 1.5% 4.5% 3.3-4.3% 5.7-26.6%

Salary increase 1.0% 0.0-5.0% 0.0-3.2% 2.0-25.0% 1.1% 0.0-3.1% 0.0-3.6% 3.0-24.3%

Pension increase 0.0% 2.7-3.0% 0.0-1.9% 0.0-1.9% 0.0% 2.6-3.0% 0.0-2.8% 0.0-1.8%

Price inflation 1.0%

2.5-2.8% 0.0-2.2% 0.0-3.5% 1.0% 2.4-2.6% 0.0-2.6% 0.0-3.5%

Sensitivity analysis

2024 2023

(DKKm)

+0.5% -0.5% +0.5% -0.5%

Discount rate (421) 491 (376) 409

Price inflation 82 (37) 64 (55)

Salary increase 98 (61) 76 (76)

Pension increase 259 (213) 241 (236)

+1 year -1 year +1 year -1 year

Life expectancy 206 (166) 147 (144)

Duration

(Years)

2024 2023

Active employees 9 8

Retired employees 12

12

Deferred vested

1)

15 15

Total employees 10

9

The sensitivities related to significant actuarial assumptions used in the calculation of the defined benefit obligation in terms of

estimated increase/(decrease) in the obligation are illustrated below.

The analysis is based on changes in assumptions, with all other variables held constant, that the Group considered to be

reasonably possible at the reporting date.

The estimated weighted average duration of the defined benefit obligation was 10 years (2023: 9 years) and is split into:

1)

The impact from deferred vested on total estimated weighted average duration is minor due to the fact that deferred vested make up less than

2% of the participants, and do not exist in many of the shorter duration plans.

CONSOLIDATED FINANCIAL STATEMENTS 161

7.2 Hyperinflation in Türkiye

7.2.1 Impact on the consolidated financial statements

(DKKm)

Total

(excl.

IAS 29)

Non-

monetary

Profit

or loss

Retrans-

lation

(YE FX)

Total

adjust-

ments

Total

2024

Profit or loss

Revenue 83,026 - 943 (187) 756 83,782

Operating profit before other items 4,889 (78) 80 (14) (12) 4,877

Operating profit 3,572 (99) 79 (14) (34) 3,538

Net profit 2,550

(3)

-

(0) (3) 2,547

Financial ratios

Organic growth (non-IFRS) 6.3% - - - - 6.3%

Operating margin (non-IFRS) 5.9% (0.1%) 0.0% 0.0% (0.1%) 5.8%

Cash flows

Operating activities

3,529 - - (2)

(2)

3,527

Investing activities (1,413) - -

1

1 (1,412)

Financing activities (1,334)

- -

5 5 (1,329)

Free cash flow (non-IFRS) 1,915 - - 1 1

1,916

(DKKm)

Total

(excl.

IAS 29)

Total

2024

Financial position

Goodwill 14,928 992 15,920

Other intangible assets 1,307 405

1,712

3,233 134 3,367

Total assets 48,022

1,531 49,553

Other comprehensive income

1)

(942) 1,299 357

Other equity elements 9,577 96 9,673

Total equity 8,635 1,395 10,030

Deferred tax liabilities 300 136

436

Total equity and liabilities 48,022 1,531 49,553

Development in 2024

1)

In year impact of restatement amounts to DKK 477 million (2023: DKK 467 million).

During the year, the inflation rate decreased to 44.38% (2023: 64.77%) and the exchange rate for TRY/DKK decreased from 22.82

in the beginning of the year to 20.30 in December 2024, leading to an average rate of 20.97 (2023: 29.80).

The Group’s financial position continued to be significantly impacted. At 31 December 2024, goodwill had increased by DKK 992

million (2023: DKK 732 million), customer contracts had increased by DKK 405 million (2023: DKK 295 million) and equity had

increased by DKK 1,395 million (2023: DKK 1,035 million) (accumulated hyperinflation adjustment impacts).

Inflation restatement,

in year

In 2024, the impact of hyperinflation restatement on our three key KPIs, i.e. organic growth (non-IFRS), operating margin (non-

IFRS) and free cash flow (non-IFRS) continued to be immaterial.

Right-of-use assets, property and equipment

Inflation

restatement,

accumulated

CONSOLIDATED FINANCIAL STATEMENTS 162

7.2 Hyperinflation in Türkiye (continued)

(DKKm)

Total

(excl.

IAS 29)

Non-

monetary

Profit

or loss

Retrans-

lation

(YE FX)

Total

adjustments

Total

2023

Profit or loss

Revenue 78,704 -

1,130

(1,132) (2) 78,702

Operating profit before other items 4,198 (58) 90 (80) (48) 4,150

Operating profit 2,942 (73) 90 (78) (61) 2,881

Net profit 285 22

-

(16) 6 291

Financial ratios

Organic growth (non-IFRS) 9.7% - - - - 9.7%

Operating margin 5.3% (0.1%) 0.1% 0.0% 0.0% 5.3%

Cash flows

Operating activities 3,325 - - (41) (41) 3,284

Investing activities (901) - -

9 9 (892)

Financing activities (1,311) - - (17) (17) (1,328)

Free cash flow (non-IFRS) 1,835 - - (16) (16) 1,819

(DKKm)

Total

(excl.

IAS 29)

Inflation

restatement,

accumulated

Total

2023

Financial position

Goodwill 14,389 732 15,121

Other intangible assets

1,153 295 1,448

2,945 109 3,054

Total assets 43,630 1,136 44,766

Other comprehensive income (1,127) 936 (191)

Other equity elements 7,218 99 7,317

Total equity 6,091 1,035 7,126

Deferred tax liabilities

502 101 603

Total equity liabilities

43,630 1,136 44,766

Right-of-use assets, property and equipment

Inflation restatement,

in year

CONSOLIDATED FINANCIAL STATEMENTS 163

7.2 Hyperinflation in Türkiye (continued)

Accounting policy

Inflation restatement

Price index

Retranslation from TRY to DKK

The TRY/DKK exchange rate decreased from 22.82 at the beginning of 2024 to 20.30 at 31 December 2024. The average rate was

20.97 (2023: 29.80).

The financial statements of ISS Türkiye, including effects of inflation restatement, are translated into DKK applying the TRY/DKK

exchange rate at the reporting date as opposed to the Group’s normal practice of translating the profit or loss using the

exchange rate at the transaction date or an average exchange rate for the month.

The financial statements of ISS Türkiye based on historical costs are restated for inflation to reflect the purchasing power at the

reporting date using the consumer price index.

Restatement for hyperinflation of the financial statements of ISS Türkiye is based on the development in the consumer price

index provided by the Türkiyish Statistical Institute calculated as an average year to date conversion factor. For 2024, the inflation

rate in Türkiye was 44.38% (2023: 64.77%). In 2024, the conversion factor was 17% (2023: 31%).

Non-monetary items such as goodwill, customer contracts, right-of-use assets, property and equipment and deferred tax, are

restated for the effect of inflation based on changes in the price index for the period from initial recognition to 31 December

2024 or to the date of disposal, where relevant. The restatement was made effective from the time, the items were initially

recognised, which was no earlier than 2005, when ISS first entered Türkiye through an acquisition. The restatement effect

related to prior years is recognised in Other comprehensive income and current year effect is recognised in Finance income and

costs.

Management assesses whether the restatement of non-monetary items represents an indication of impairment to ensure that

the restated amounts do not exceed the recoverable amounts of the assets, see 3.2, Impairment tests.

Equity includes the opening effect of restating non-monetary items. The restatement effects based on in-year changes in the

price index are recognised in other comprehensive income with set-off within finance income or costs in profit or loss.

Monetary items such as receivables, payables and borrowings are not restated as these items already reflect the purchasing

power at the reporting date.

Profit or loss transactions are restated to reflect changes in the price index from the time of transaction to the end of the

reporting period except for depreciation and amortisation, which are recalculated based on the inflation-adjusted carrying

amounts. The restating gain or loss is recognised in finance income or costs, except for the tax effect, which is recognised in

income tax.

Cash flow statement Operating profit before other items includes a non-cash effect from the inflation restatement, and is

eliminated in the line Non-cash items related to hyperinflation.

CONSOLIDATED FINANCIAL STATEMENTS 164

7.3 Related parties

Parent and ultimate controlling party

Key management personnel

7.4 Fees to auditors

(DKKm)

2024 2023

Statutory audit 51 60

Other assurance services 5 1

Tax and VAT advisory services 2 6

Other services 3 8

Total 61 75

7.5 Subsequent events

No events have occurred subsequent to 31 December 2024, which are expected to have a material impact on the consolidated

financial statements.

The sole shareholder of ISS Global A/S, ISS World Services A/S has controlling influence in the Group and is wholly owned by ISS

A/S (the ultimate parent).

The Board of Directors (Board) and the Executive Group Management (EGM) of ISS A/S are considered the Group’s key

management personnel as defined in 6.1, Management remuneration.

Apart from remuneration, including share-based incentive programmes, there were no significant transactions with members of

the Board and the EGM in 2024.

Other services mainly related to software implementation services.

Other assurance services comprised work related to the interim financial statements and other assurance services. The increase

compared to 2023 related to ESG.

Tax and VAT advisory services mainly related to tax compliance services.

Fees for services other than the statutory audit of the financial statements provided by PricewaterhouseCoopers Statsautoriseret

Revisionspartnerselskab, Denmark mainly consist of other assurance opinions including limited assurance on the sustainability

statement and agreed-upon procedures.

CONSOLIDATED FINANCIAL STATEMENTS 165

SECTION 8

Basis of preparation

Changes in accounting policies

8.1 Other material accounting policies

Basis of preparation

Fair value measurement and disclosure

Materiality

This section includes material accounting policies of a more general nature relevant for the understanding of the basis for

preparation of the Group’s consolidated financial statements. Material accounting policies for specific accounting items are

included in the relevant notes to the consolidated financial statements. A list of the notes is presented on p. 86.

Items are measured at historical cost, except for plan assets under defined benefit plans, derivatives and contingent consideration

that are measured at fair value. Fair value measurements are categorised within the fair value hierarchy and disclosed in the

relevant notes.

For the purpose of fair value disclosures, management has assessed that the fair values of cash and cash equivalents, trade

receivables, trade payables and other current and non-current financial assets and liabilities approximates their carrying amount

largely due to the short-term nature of these items.

Materiality is judged by reference to the size and nature of the item, either individually or combined. The deciding factor is

whether the omission or misstatement could, individually or collectively, influence the economic decisions made by the primary

users on the basis of the consolidated financial statements.

The consolidated financial statements separately present items or groups of items that are considered material. In addition,

information that is considered material, either individually or in combination with other information, is disclosed.

ISS Global A/S's bonds are listed on Luxembourg Stock Exchange. The consolidated financial statements of ISS Global A/S for the

year ended 31 December 2024 comprise ISS Global A/S and its subsidiaries (collectively, the Group). Significant subsidiaries are

listed in 8.4, Group companies.

The 2024 Annual Report for ISS Global A/S was discussed and approved by the Executive Management and the Board of Directors

on 11 March 2025 and issued for approval at the subsequent annual general meeting on 11 April 2025.

The consolidated financial statements of the Group have been prepared in accordance with IFRS Accounting Standards as

adopted by the EU and additional requirements of the Danish Financial Statements Act (class D). In addition, the consolidated

financial statements have been prepared in compliance with the IFRS Accounting Standards issued by the IASB.

The consolidated financial statements are presented in Danish kroner (DKK), which is ISS Global A/S’s functional currency. All

amounts have been rounded to nearest DKK million (DKKm), unless otherwise stated.

The consolidated financial statements have been prepared on the basis that the Group will continue to operate as a going

concern.

The fair value of borrowings, including methods and assumptions used to estimate the fair value, are disclosed in 4.2.1,

In 2024, no changes with material effect on recognition and measurement were implemented.

CONSOLIDATED FINANCIAL STATEMENTS 166

8.1 Other material ccounting policies (continued)

Basis of consolidation

Foreign currency

8.2 In-year changes

Changes in accounting policies

Transactions in currencies other than the functional currency of the respective Group companies are considered transactions

denominated in foreign currencies.

The consolidated financial statements comprise ISS Global A/S and entities controlled by ISS Global A/S. Consolidation is

performed after elimination of intra-group balances, income and expenses. Unrealised losses are eliminated in the same way as

unrealised gains, but only to the extent that there is no evidence of impairment.

Monetary items denominated in foreign currencies are translated at the exchange rates at the reporting date. The difference

between the exchange rates at the reporting date and at the transaction date or the exchange rate used in the latest financial

statements is recognised in Finance income or Finance costs.

On recognition in the consolidated financial statements of Group companies with a functional currency other than DKK, except for

companies operating in hyperinflationary environments, the statements of profit or loss and statement of cash flows are

translated at the average exchange rates for the period and the statements of financial position are translated at the exchange

rates at the reporting date. Foreign exchange adjustments arising on translation of the opening balance of equity of foreign

entities and on translation of receivables considered part of the net investment in the entity and on translation of the profit or loss

statements from the exchange rates at the transaction date to the exchange rates at the reporting date are recognised in other

comprehensive income. However, if the foreign entity is a non-wholly owned subsidiary, the relevant proportion of the translation

difference is allocated to the non-controlling interest.

By virtue of agreement certain non-controlling shareholders are only eligible of receiving benefits from their non-controlling

interest when ISS as controlling shareholder has received their initial investment and compound interest on such. In such

instances the subsidiaries’ result and equity are fully allocated to ISS until the point in time where ISS has recognised amounts

exceeding their investment including compound interest on such.

From 1 January 2024, the Group has adopted certain new and amended standards with no significant impact on recognition and

measurement.

On initial recognition, foreign currency transactions are translated to the functional currencies of the Group companies at the

exchange rates at the transaction date. Translation differences between the exchange rates at the transaction date and the date

of payment are recognised in Finance income or Finance costs.

The Group is within the scope of the Pillar Two rules applying from 1 January 2024. For a description of Pillar Two, see 5.1, Income

tax.

CONSOLIDATED FINANCIAL STATEMENTS 167

8.3 New regulations

IFRS 18: Presentation and Disclosure in Financial statements

IASB issued certain amended standards and interpretations, that are not mandatory for the consolidated financial statements of

the Group at 31 December 2024. The Group expects to adopt the new standards and interpretations when they become

mandatory.

Based on the current business setup and level of activities, none of these standards and interpretations are expected to have a

material impact on the recognition and measurement in the consolidated financial statements.

The standard below will impact presentation and the definition of certain required subtotals.

From 1 January 2027, IFRS 18 will replace IAS 1, introducing new requirements that will help to achieve comparability of financial

performance of similar entities and provide more relevant information and transparency to users.

Even though IFRS 18 will not impact the recognition and measurement of items, its impact on presentation (including definition of

certain required subtotals) and disclosures is expected to be pervasive, in particular those related to the statement of profit or

loss and providing management-defined performance measures within the financial statements. The key new concepts

• the structure of the statement of profit or loss;

• required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an

entity’s financial statements (that is, management-defined performance measures); and

• enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general

ISS has not yet analysed the impact of the new standard, but will do so in due course.

CONSOLIDATED FINANCIAL STATEMENTS 168

8.4 Group companies

Northern Europe Central & Southern Europe

Denmark (ISS A/S's country of domicile) Austria

ISS Facility Services A/S 100% Integrated Service Solutions, S.L. 100%

ISS Finance B.V.

100% ISS Facility Services, S.A. 100%

ISS Global Management A/S 100%

UTE-HOSPITALES S.A.S 65%

1)

ISS Holding France A/S 100%

Gelim Madrid, S.A. 100%

ISS Lending A/S 100%

4)

Germany

Belgium & Luxembourg ISS Automotive Services GmbH 100%

ISS Catering N.V.

100% ISS Facility Services Holding GmbH 100%

ISS Facility Services N.V.

100% ISS Integrated Facility Services GmbH 100%

ISS Reception & Support Services N.V.

100% ISS Energy Services GmbH 100%

ISS Facility Services S.A.

100% ISS Communication Services GmbH 100%

ISS Luxinterim SARL

100% ISS Pluralis GmbH 100%

Finland Hungary

ISS Palvelut Holding Oy

100% ISS International Hungary Kft

100%

ISS Palvelut Oy 100%

Italy

Netherlands ISS Facility Services S.r.l. 100%

ISS Catering Services B.V. 100%

ISS Holding Nederland B.V. 100% Portugal

ISS Integrated Facility Services B.V. 100% ISS Tech Portugal, Unipessoal Lda.

100%

ISS Nederland B.V. 100%

Romania

Norway ISS Romania Group S.R.L. 100%

ISS Holding AS 100%

ISS Facility Services International S.R.L 100%

ISS Management AS

100%

ISS Facility Services AS 100% Spain

ISS Serveringspartner AS 100% Integrated Service Solutions, S.L. 100%

ISS Service Management AS 100% ISS Facility Services, S.A. 100%

UTE-HOSPITALES S.A.S 65%

1)

Poland Gelim Madrid, S.A. 100%

ISS Facility Services Sp. Z.o.o.

100%

ISS World Services Poland Sp. Z.o.o

100% Switzerland

ISS Facility Services AG 100%

Sweden ISS Schweiz AG 100%

ISS Facility Services Holding AB 100%

ISS Facility Services AB 100% Türkiye

ISS Palvelut Holding AB 100% ISS Hazir Yemek Üretim ve Hizmet A.Ş.

50,1%

3)

ISS Proser Koruma ve Güvenlik Hizmetleri A.Ş.

50,1%

3)

UK & Ireland ISS Tesis Yönetim Hizmetleri A.Ş.

50,1%

3)

ISS UK Holding Limited 100% ISS İşletme Hizmetleri A.Ş (Rönesans)

50,1%

3)

ISS UK Limited 100%

ISS Bitki Bakim ve Hasere Kontrol Hizmetleeri A.Ş. 50,1%

3)

ISS Facility Services Ltd. 100%

ISS Mediclean Ltd 100%

ISS Ireland Ltd. 100%

Below the Group's significant subsidiaries and joint ventures are presented per region. Together these are referred to as

"Companies within the ISS Group".

CONSOLIDATED FINANCIAL STATEMENTS 169

8.4 Group companies (continued)

Asia & Pacific Americas

Australia & New Zealand Chile

ISS Facility Management Pty Ltd 100% Apunto Servicios de Alimentacion S.A. 100%

ISS Facility Services Australia Ltd 100% ISS Chile S.A. 100%

ISS Facility Services Pty Ltd. 100% ISS Facility Services S.A. 100%

ISS Health Services Pty Ltd. 100% ISS Servicios Generales Ltda. 100%

ISS Integrated Services Pty Ltd 100% ISS Servicios Integrales Ltda. 100%

ISS Property Services Pty Ltd 100%

ISS Security Pty Ltd 100% Mexico

Pacific Invest December 2004 Pty Ltd. 100% ISS Centro América, S. de R.L. de C.V. 100%

Pacific Service Solutions Pty Ltd. 100% ISS Facility Services, S.A. de C.V. 100%

ISS Facility Services Ltd. 100%

ISS Holdings NZ Ltd. 100% US & Canada

ISS Facility Services Holding, Inc. 100%

China

ISS Management and Finance Co, Inc. 100%

ISS Facility Services (Shanghai) Ltd. 100% ISS Facility Services, Inc (US) 100%

ISS Hongrun (Shanghai) Cleaning Services Ltd 100%

Guckenheimer Enterprises Inc. 100%

Shanghai B&A Property Management Co., Ltd.

100%

ISS Holding Inc. 100%

Shanghai B&A Security Co., Ltd. 100% ISS Facility Services Inc. (CA) 100%

Shanghai ISS Catering Management Ltd. 100%

Hong Kong

Hung Fat Cleaning Transportation Co., Ltd. 100%

ISS Adams Secuforce Ltd. 100%

ISS China Holdings Ltd. 100%

ISS China Holdings I Ltd. 100%

ISS EastPoint Properties Ltd. 100%

ISS EastPoint Property Management Ltd. 100%

ISS Facility Services Ltd. 100%

ISS Greater China Ltd. 100%

ISS Mediclean (HK) Ltd. 100%

ISS Pan Asia Security Services Ltd. 100%

JSL Ltd.

100%

Silvertech E&M Engineering Co., Ltd. 100%

India

ISS Facility Services India Pvt. Ltd.

100% Notes

ISS SDB Security Services Pvt. Ltd.

46%

2)

1)

Joint venture

Indonesia

PT ISS Facility Services 100%

PT ISS Indonesia 100%

PT ISS Jasa Fasilitas 0%

2)

Singapore

ISS Asia Pacific Pte. Ltd. 100%

ISS Catering Services Pte. Ltd. 100%

ISS Facility Services Pte. Ltd. 100%

ISS M&E Pte. Ltd. 100%

2)

By virtue of the governance structure, the Group has the power to

govern the financial and operating policies of the company.

Consequently, the company is consolidated as a subsidiary.

4)

ISS Lending A/S applies §78a of the Danish Financial Statements

Act. Consequently, their annual report is prepared in accordance

with the requirements for Class B companies. ISS Global A/S is

liable for all ISS Lending A/S's current and future obligations.

3)

Under certain circumstances or events, ISS may be obliged to

choose to purchase other shareholders’ shareholdings or

dispose of its own shareholdings.

CONSOLIDATED FINANCIAL STATEMENTS 170

8.5 Definitions

Alternative performance measures

Free cash flow

Organic growth, %

Operating margin, %

Total revenue growth, %

Financial ratios

Acquisitions, %

Currency adjustments

Divestments, %

Equity ratio, %

Gross debt

Net debt

3)

Estimated or actual revenue where available at the divestment date.

Revenue from acquisitions

2)

x 100 / Revenue prior year

Total revenue growth – Organic growth – Acquisition/divestment growth, net

3)

Borrowings + utilisation of factoring and certain customer's supply chain finance arrangements

4)

Incl. the effect from exclusion of currency effects from the calculation of organic growth and acq./div., net.

1)

Comparable revenue prior year excludes impacts from changes in exchange rates and acquisitions/divestments, net as well as impact from

hyperinflation restatement. To arrive at comparable revenue, prior year’s revenue is retranslated by applying current year’s exchange rates,

divestments and impacts from hyperinflation restatements are excluded and estimated impacts from acquisitions are added.

2)

Expectations at the acquisition date.

Borrowings – Securities – Cash and cash equivalents +/– Fair value of derivatives + Net debt included in Liabilities held for sale

Revenue from divestments

4)

× 100 / Revenue prior year

Total equity × 100 / Total assets

ISS uses various key figures, financial ratios and non-financial ratios, all of which provide our stakeholders with useful and necessary

information about the Group’s financial position, performance, cash flows and development in a consistent way. In relation to managing

the business, achieving our strategic goals and ultimately creating value for our shareholders, these measures are considered essential.

In addition, the Group uses alternative performance measures (APMs) to provide stakeholders with additional measures to evaluate and

analyse the Group's performance. The APMs are non-IFRS financial measures defined by the Group and thus may not be comparable with

measures provided by peers or other companies' measures.

Operating profit before other items x 100 / Revenue

Cash flow from operating activities – Acq. of intangible assets, property and equipment, net – Change in financial assets (excl. equity-

accounted investees) – Addition of right-of-use assets, net

(Revenue current year – Revenue prior year) x 100 / Revenue prior year

Acquisitions are treated as having been integrated with ISS at the acquisition date. Consequently, organic growth includes changes in

revenue of such acquisitions compared with expectations at the acquisition date.

(Revenue current year excl. hyperinflation – Comparable revenue

1)

prior year) x 100 / Comparable revenue

1)

prior year

PARENT COMPANY FINANCIAL STATEMENTS 171

172

173

174

175

1

Material accounting policies

176

2

Significant estimates and judgements

176

3

Other operating income and expenses, net

176

4

Fees to auditors

177

5

Other expenses

177

6

Finance income and costs

177

7

Income tax

178

8

Investments in subsidiaries and joint ventures

178

9

Deferred tax

180

10

Borrowings

180

11

Management remuneration

181

12

Contingent liabilities

181

13

Financial risk management

182

14

Interest rate risk

182

15

Liquidity risk

184

16

Currency risk

184

17

Related parties

185

18

New regulations

186

19

Subsidiaries and joint ventures

186

Primary financial statements

Other required disclosures

Accounting policies

Statement of profit or loss

Statement of financial position

Statement of profit or loss

Statement of comprehensive income

Statement of cash flows

Statement of financial position

Statement of changes in equity

Parent

company

financial

statements

PARENT COMPANY FINANCIAL STATEMENTS 172

Statement of profit or loss

1 January – 31 December

(DKKm) Note 2024 2023

Other operating income and expenses, net

3, 4 2

31

Operating profit before other items 2 31

Other income and expenses, net

5

(52)

(57)

Operating profit (50) (26)

Income from subsidiaries and joint ventures 8 1,557 (1,320)

Finance income 6 1,157 800

Finance costs 6 (915) (920)

Profit before tax

1,749

(1,466)

Income tax 7 29 3

Net profit

1,778 (1,463)

1 January – 31 December

(DKKm)

2024 2023

Net profit 1,778 (1,463)

Comprehensive income

1,778

(1,463)

Statement of comprehensive income

PARENT COMPANY FINANCIAL STATEMENTS 173

Statement of cash flows

1 January – 31 December

(DKKm)

Note 2024 2023

Operating profit before other items 2

31

Changes in working capital

31

(10)

Interest received from companies within the ISS Group

853

716

Interest received, external

110

30

Interest paid to companies within the ISS Group

(508)

(474)

Interest paid, external

(196)

(220)

Income tax and joint taxation contribution received/(paid), net (4)

(15)

Cash flow from operating activities 288

58

Capital increase in subsidiaries and joint ventures

8 (307) (10)

Acquisitions

(6) -

Divestment and liquidation of subsidiaries and joint ventures

(37) 44

Dividends received from subsidiaries and joint ventures

8 1,253 872

Cash flow from investing activities 903 906

Proceeds from issued bonds 10 3,696 -

Repayment of bonds 10 (2,237) -

Other financial payments, net

10 (127) (48)

Changes in debt to companies within the ISS Group, net

10 (221) 1,162

Changes in receivables from companies within the ISS Group, net

(1,998) (1,529)

Cash flow from financing activities (887) (415)

Total cash flow 304 549

Cash and cash equivalents at 1 January

3,118 2,569

Total cash flow

304 549

Cash and cash equivalents at 31 December 3,422 3,118

PARENT COMPANY FINANCIAL STATEMENTS 174

Statement of financial position

At 31 December

(DKKm) Note

2024

2023

Assets

Investments in subsidiaries and joint ventures 8 22,850 22,482

Receivables from companies within the ISS Group 9,939 8,257

Other financial assets 21 8

Deferred tax assets 9 29 18

Non-current assets 32,839 30,765

Receivables from companies within the ISS Group

1,967

2,090

Other receivables

297

215

Cash and cash equivalents

3,422

3,118

Current assets

5,686

5,423

Total assets 38,525

36,188

Equity and liability

Equity 9,349 7,571

Borrowings 10 11,924 11,892

Non-current liabilities 11,924 11,892

Borrowings 10 16,849 15,712

Provisions 8 - 704

Other liabilities 403 309

Current liabilities 17,252 16,725

Total liabilities 29,176 28,617

Total equity and liabilities 38,525 36,188

PARENT COMPANY FINANCIAL STATEMENTS 175

1 January – 31 December

(DKKm)

Share

capital

Retained

earnings

Total

2024

Equity at 1 January 180 7,391 7,571

Net profit - 1,778

1,778

Comprehensive income

- 1,778

1,778

Changes in equity - 1,778

1,778

Equity at 31 December 180 9,169 9,349

2023

Equity at 1 January

180 8,854

9,034

Net profit - (1,463) (1,463)

Comprehensive income

- (1,463) (1,463)

Changes in equity - (1,463) (1,463)

Equity at 31 December 180 7,391 7,571

Statement of changes in equity

PARENT COMPANY FINANCIAL STATEMENTS 176

1 Material accounting policies

The financial statements of ISS Global A/S have been prepared in accordance with IFRS Accounting Standards as adopted by the EU

and additional requirements of the Danish Financial Statements Act (class D). In addition, the financial statements have been

prepared in compliance with the IFRS Accounting Standards issued by the IASB.

No changes with material effect on recognition and measurement were implemented in 2024.

Material accounting policies

With the exception of the items described below, the material accounting policies for ISS Global A/S are identical to the Group's

material accounting policies, which are described in the notes to the consolidated financial statements.

Income from subsidiaries and joint ventures comprises dividends, impairment losses, reversal of prior years' impairment losses and

gains and losses on divestment and liquidation of subsidiaries and joint ventures. Dividends are recognised in profit or loss in the

financial year in which the dividend is declared. If dividends declared exceed the total comprehensive income for the year, an

impairment test is performed.

Investments in subsidiaries and joint ventures are measured at cost. If there is indication of impairment, an impairment test is

performed as described in the accounting policies in 3.2 to the consolidated financial statements. If the recoverable amount is

lower than the cost, investments are written down to this lower value. An impairment loss is reversed if there has been a change in

the estimates used to determine the recoverable amount, but only to the extent that the recoverable amount does not exceed the

original cost.

Tax As required by Danish legislation, ISS Global A/S is jointly taxed with all Danish resident subsidiaries. Joint taxation

contributions to/from jointly taxed companies are recognised in profit or loss in Income tax and in the statement of financial

position in Receivables from or Debt to companies within the ISS Group.

Companies which utilise tax losses in other companies pay joint taxation contribution to ISS A/S (the administration company)

equivalent to the tax base of the tax losses utilised. Companies whose tax losses are utilised by other companies receive joint

taxation contributions from ISS A/S equivalent to the tax base of the tax losses utilised (full absorption).

2 Significant estimates and judgements

Significant estimates and judgements relating to the applied accounting policies for ISS Global A/S are the same as for the Group

to the extent of similar accounting items, see Significant estimates and judgements, for a description. The specific risks for ISS

Global A/S are described in the notes to the financial statements of the parent company.

Investments in subsidiaries and joint ventures If there is identification of impairment, an impairment test is performed as described

in the accounting policies in 3.2 to the consolidated financial statements. The assessment of whether there is an indication of

impairment is based on both external and internal sources of information such as performance of the subsidiary, significant decline

in market values etc.

3 Other operating income and expenses, net

Other operating income and expenses, net mainly comprise procurement bonuses and revaluation of receivables from companies

within the ISS Group.

Basis of preparation

Changes in accounting policies

PARENT COMPANY FINANCIAL STATEMENTS 177

4 Fees to auditors

(DKKm)

2024 2023

Statutory audit

1 1

Other assurance services 0 0

Total 1

1

5 Other expenses

6 Finance income and costs

(DKKm)

2024

2023

Interest income on cash and cash equivalents

143 28

Fair value adjustments, interest rate swaps 42 51

Interest income from companies within the ISS Group

1)

949 721

Forward premiums, currency swaps 11 -

Hedge ineffectiveness of interest rate swaps 12 -

Finance income 1,157

800

Interest expenses on borrowings

1)

(334) (197)

Forward premiums, currency swaps - (3)

Fair value adjustments, currency swaps - (84)

Interest expenses to companies within the ISS Group

1)

(508) (475)

Amortisation of financing fees (non-cash)

1)

(15)

(22)

Commitment fees (8) (16)

Bank fees (3) (3)

Foreign exchange losses (47) (120)

Finance costs (915) (920)

1)

The total interest income, net determined on an amortised cost basis was DKK 92 million (2023: DKK 27 million).

Fair value adjustments, interest rate swaps related to instruments used for fair value hedging at Group level, but being ineffective

hedges in ISS Global A/S.

Interest expenses on borrowings comprised mainly interest on issued bonds. The increase compared to 2023 was driven by

issuance of new EMTNs in May 2024 and increased interest rates throughout 2024 of which DKK 65 million related to the interest

rate swaps on part of the bonds.

Other expenses comprised a fair value adjustment of a contingent consideration associated with the transaction in Türkiye in

2021.

Fair value adjustments, currency swaps related to instruments used for net investment hedging at Group level, but being

ineffective hedges in ISS Global A/S.

Foreign exchange losses mainly related to exchange rate movements on intercompany loans to foreign subsidiaries as well as on

external borrowings denominated in currencies other than DKK.

Interest income on cash and cash equivalents The increase compared to 2023 was mainly driven by interest income on the

proceeds from the issued bond under the EMTN programme in May 2024 until repayment of the bond maturing in December

2024.

PARENT COMPANY FINANCIAL STATEMENTS 178

7 Income tax

(DKKm)

2024 2023

Current tax

40 20

Deferred tax

11 (1)

Other taxes

(20) (5)

Prior year adjustments, net

(2) (11)

Income tax

29 3

In %

2024 2023

Statutory income tax rate in Denmark 22.0 % 22.0 %

Income from subsidiaries and joint ventures (15.8)% 13.1 %

Non-tax deductible expenses less non-taxable income (9.2)% (33.7)%

Other taxes 0.1 % (0.4)%

Prior year adjustments, net

1.2 % (0.8)%

Effective tax rate

(1.7)% 0.2 %

8 Investments in subsidiaries and joint ventures

(DKKm)

2024 2023

Cost at 1 January 33,645 32,304

Additions

1)

67 1,341

Cost at 31 December 33,712 33,645

Revaluation at 1 January

(11,163) (9,639)

Impairment losses

(6) (1,959)

Reversal of prior years' impairment losses

307 435

Revaluation at 31 December (10,862)

(11,163)

Carrying amount at 31 December 22,850 22,482

Effective tax rate

Additions In 2024, ISS Global A/S made a capital increase in ISS Holding France A/S of DKK 675 million of which DKK 665 million

was provided and impaired at 31 December 2024. Furthermore, capital increases were made in ISS Asia Pacific Pte. Ltd. of DKK 51

million, in Singapore of DKK 3 million and in Signal Arkitekter ApS of DKK 3 million.

1)

In 2024, capital increases in total of DKK 732 million were made, of which DKK 665 million were provided and impaired at 31 December 2023.

DKK 425 million of the total capital increases of DKK 732 million related to non-cash transactions (2023: DKK 1,331 million).

PARENT COMPANY FINANCIAL STATEMENTS 179

8 Investments in subsidiaries and joint ventures (continued)

(DKKm)

Impairment

losses 2024

Recoverable

amount

1)

Applied

discount rate,

net of tax

Investments in subsidiaries and joint ventures

Signal 4 2 -

ISS Malaysia 2 (1) -

Impairment losses 6

Income from subsidiaries and joint ventures

(DKKm)

2024

2023

Received dividends 1,253

872

Proceeds from divestment and liquidation of subsidiaries and joint ventures 3

50

Carrying amount of disposed subsidiaries and joint ventures -

(14)

Impairment losses (6)

(1,959)

Reversal of prior years' impairment losses 307

435

Recapitalisation of equity in ISS Holding France A/S -

(704)

Income from subsidiaries and joint ventures 1,557 (1,320)

Subsidiaries and joint ventures

For a list of significant directly owned subsidiaries and joint ventures, see note 19, Subsidiaries and joint ventures.

The investments in both Signal and ISS Malaysia have been fully impaired. Since the subsidiaries' net assets primarily consist of net

working capital items which closely approximates fair value, the book value of equity is considered a resonable proxy for the

recoverable amount.

Reversal of prior years' impairment losses In 2024, losses of DKK 132 million on the investment in the Netherlands were reversed

(2023: DKK 306 million). The Dutch operation continued to deliver in line with the business case and it has been assessed that the

increase in the recoverable amount is sustainable. The discount rate, net of tax applied to determine the recoverable amount was

8.3% (2023: 8.8%). Furthermore, losses of DKK 175 million (2023: DKK 129 million) in ISS Lending A/S were reversed as equity

continued to increase in 2024.

1)

The recoverable amount is based on the equity at 31 December 2024.

Impairment losses The recoverable amount of investments in subsidiaries and joint ventures is determined on the basis of the

value-in-use adjusted for net debt. Value-in-use applied in the impairment test is equal to value-in-use established for the Group,

see 3.2 to the consolidated financial statements. Subsidiaries classified as held for sale are measured at the lower of their carrying

amount and fair value less costs to sell. Impairment losses recognised in 2024, see below.

PARENT COMPANY FINANCIAL STATEMENTS 180

9 Deferred tax

Development in deferred tax

(DKKm)

2024 2023

Deferred tax assets/(liabilities) at 1 January 18 19

Prior year adjustments, net 0 -

Tax on profit before tax 11 (1)

Deferred tax assets at 31 December 29 18

10 Borrowings

2024 2023

Issued bonds 11,924 10,413

Bank loans (22) 15

Debt to companies within the ISS Group 16,871 17,176

Total 28,773 27,604

Non-current liabilities 11,924 11,892

Current liabilities 16,849 15,712

Borrowings 28,773 27,604

Cash and cash equivalents (3,422) (3,118)

Receivables from companies within the ISS Group (11,906) (10,347)

Derivatives, net (38) 45

Net debt 13,407

14,184

Refinancing

Financing fees

Fair value

On 29 May 2024, ISS issued a 5-year bond with a principal amount of EUR 500 million and a coupon of 3.875%. The bond was

issued under the Group’s EUR 3 billion European Medium Term Note (EMTN) programme, which is listed on the Luxembourg Stock

Exchange. The net proceeds were used for refinancing the Group’s EUR 300 million EMTNs maturing in December 2024 as well as

for general corporate purposes.

For the remaining borrowings, the fair values are not materially different from their carrying amounts due to their short-term

nature.

At 31 December 2024, the fair value of bonds was DKK 11,781 million (2023: DKK 9,879 million). The fair value of bonds was based

on the quoted market price on the Luxembourg Stock Exchange and measurement is categorised as Level 1 in the fair value

hierarchy due to the use of quoted market inputs.

ISS Global A/S has no recognised or unrecognised deferred tax assets regarding tax losses carried forward.

(DKKm)

At 31 December 2024, accumulated financing fees recognised in borrowings amounted to DKK 76 million (2023: DKK 44 million).

The increase compared to last year was due to financing fees of DKK 47 million (2023: DKK 25 million) being capitalised in relation

to the bond issue in May 2024, partly offset by ordinary amortisation of DKK 15 million (2023: DKK 22 million) recognised in finance

costs.

PARENT COMPANY FINANCIAL STATEMENTS 181

10 Borrowings

(continued)

Cash flow impact from changes in borrowings

(DKKm)

Issued

bonds

Bank loans

and other

Total

2024

At 1 January 10,413

17,176 15 27,604

FX adjustments 5 (84) - (79)

Cash flows 1,459 (221)

(127)

1,111

Fair value adjustments 46 - - 46

Other 1 - 90

91

At 31 December 11,924 16,871 (22)

28,773

2023

At 1 January 10,379

16,071 (9) 26,441

FX adjustments 23 (57) - (34)

Cash flows

- 1,162

(48)

1,114

Other 11 - 72 83

At 31 December 10,413 17,176 15 27,604

11 Management remuneration

12 Contingent liabilities

Senior facility agreement

EMTNs (EUR 500 million) maturing in 2025

Guarantee related to the revolving credit facility

Remuneration to key management personnel is specified in 6.1.1 to the consolidated financial statements.

ISS Global A/S guarantees the borrowings under the unsecured senior facility agreement.

ISS Global A/S guarantees the EMTN bonds for a principal amount of EUR 500 million maturing in 2025 issued by ISS Finance B.V.,

a 100% owned subsidiary.

ISS Global A/S has issued a guarantee related to ISS companies’ possible draw on the revolving credit facility of EUR 900 million.

The facility was unused at 31 December 2024.

Parent company guarantees

ISS Global A/S has issued parent guarantees and performance bonds for various subsidiaries' current and future financial liabilities

and obligations under customer contracts and pension liabilities amounting to DKK 8.5 billion (2023: DKK 8.1 billion). Furthermore,

ISS Global A/S has issued parent guarantees for various subsidiaries' current and future financial liabilities towards the Group's

main car fleet provider.

Debt to

companies

within the

ISS Group

Key management personnel of the Group as defined in 6.1.1 to the consolidated financial statements are also considered key

management personnel of the parent.

PARENT COMPANY FINANCIAL STATEMENTS 182

12 Contingent liabilities

(continued)

ISS Global A/S and certain Danish Group companies are jointly registered for VAT and are jointly liable for the payment hereof.

13 Financial risk management

Capital management

Credit risk

14 Interest rate risk

Withholding taxes

ISS Global A/S is jointly taxed with all Danish resident subsidiaries. ISS Global A/S and the companies within the joint taxation have

a joint and unlimited liability of Danish corporate and withholding taxes related to dividends, interests and royalties. As per 31

December 2024 Danish corporate and withholding taxes within the joint taxation amounted to DKK 0 million (2023: DKK 0 million).

Any subsequent adjustments to Danish withholding taxes may change this joint and unlimited liability.

ISS Global A/S's exposure towards interest rates is illustrated on next page, where a breakdown of ISS Global A/S's borrowings in

floating and fixed rates is provided. The interest rate exposure to floating interest rates is primarily in EUR.

ISS Global A/S's financial risks are managed centrally by Group Treasury based on the treasury policy approved by the Board of

Directors of ISS A/S. The objectives and policies for measuring and managing exposure to financial risks is described in 4.3 to the

consolidated financial statements. The risks specific to ISS Global A/S related to interest rate risk, liquidity risk and currency risk

are described below in note 14, 15 and 16, respectively.

At 31 December 2024, the exposure to credit risk related to cash and cash equivalents, loans to companies within the ISS Group

and other financial items was DKK 15,396 million (2023: DKK 13,489 million), see note 10, Borrowings. Exposure to credit risk on

loans to companies within the ISS Group is managed at Group level. As these loans are controlled by the Group and part of the

Group’s capital management, expected credit losses are considered to be insignificant.

VAT

Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair value of financial

instruments. Exposure relates to bank loans, bonds or interest rate swaps with floating interest rates.

ISS Global A/S is owned indirectly by ISS A/S and therefore part of the ISS Group. Capital management is not monitored for ISS

Global A/S independently but for the ISS Group as a whole as described in 4.1.1 to the consolidated financial statements.

PARENT COMPANY FINANCIAL STATEMENTS 183

14 Interest rate risk

(continued)

2024

2023

Maturity

Nominal

interest rate

Nominal

value

Carrying

amount

Carrying

amount

Issued bonds (fixed interest rate)

EMTNs (EUR 300 million) 2024 2.13% - -

2,237

EMTNs (EUR 500 million) 2026 0.88% 3,729 3,721 3,713

EMTNs (EUR 600 million) 2027 1.50% 4,474 4,468 4,463

EMTNs (EUR 500 million)

1)

2029

3.88% 3,729 3,735 -

11,932 11,924 10,413

Bank loans (floating interest rate)

Bank loans - (22)

15

- (22) 15

Intra-group (floating interest rate)

16,871 16,871 17,176

16,871

17,176

Nominal amount

Carrying

amount

Accumulated

fair value ajd.

Change

in FV

Interest rate swap, maturing 2025 EUR 300 million (15) (15) 42

Interest rate swap, maturing 2029 EUR 250 million 58 58 58

EMTNs 2029 EUR 500 million 3,735

(46)

The estimate was based on ISS Global A/S’s floating rate borrowings and receivable from companies within the ISS Group, i.e.

disregarding cash and cash equivalents, as the level at 31 December is typically the highest in the year and thus not representative

for the purpose of this analysis.

Interest rate sensitivity

An increase in relevant interest rates of 1%-point, with all other variables held constant, would have decreased net profit and

equity by DKK 90 million (2023: decreased by DKK 90 million).

(DKKm)

Debt to companies within the ISS Group

The interest rate risk is measured by the duration of the gross debt (fixed-rate period). As at 31 December 2023, the duration of

gross debt was approximately 1.0 years (2022: 1.3 years).

(DKKm)

At 31 December 2024, ISS Global A/S had interest rate swap agreements with a total nominal amount of EUR 550 million whereby

ISS Global A/S receives a fixed rate interest and pays a variable interest rate on the nominal amount. The swaps hedge the

exposure to fair value changes of the Group's fixed rate bonds and mature in 2025 and 2029, which equal the maturity of the

bonds. On Group level, the interest rate swap qualifies as fair value hedges, and hedge accounting is applied. However, for the

interest rate swap maturing in 2025, as the fixed rate bond resides in ISS Finance B.V., the hedge is not effective in ISS Global A/S

and the fair value adjustments are recognised in profit or loss.

Fair value hedge

1)

The carrying amount included the accumulated fair value adjustments at 31 December 2024 of the hedged item, see below.

In 2024, DKK 12 million (income) was recognised in profit or loss related to the ineffective part of the interest rate swaps (2023: no

ineffectiveness).

PARENT COMPANY FINANCIAL STATEMENTS 184

15 Liquidity risk

Liquidity reserves

Contractual maturities of financial liabilities

(DKKm)

Carrying

amount

Contractual

cash flows

< 1

year

1-2

years

2-3

years

3-4

years

4-5

years

> 5

years

2024

Bonds and bank loans 11,902

12,798 244 3,955 4,664 144 3,791

-

Debt to companies within the ISS Group 16,871 17,334 17,334 - - - - -

Other financial liabilities 160 160 160 - - -

- -

Derivatives 30 30 30

- - - -

-

Total financial liabilities

28,963

30,322

17,768 3,955 4,664

144

3,791 -

2023

Bonds and bank loans 10,428

10,842

2,417 100 3,809

4,516

- -

Debt to companies within the ISS Group 17,176

17,825 14,085 3,740 -

- - -

Other financial liabilities 135 135 135 - -

- - -

Derivatives 70 70 70 - - - - -

Total financial liabilities 27,809 28,872 16,707

3,840 3,809 4,516 -

-

16 Currency risk

Currency risk arises from changes in exchange rates, and affects ISS Global A/S’s result, investments or value of financial

instruments.

To a limited extent ISS Global A/S is exposed to currency risk on borrowings (external) that are denominated in currencies other

than DKK as well as intercompany loans to foreign subsidiaries as these are typically denominated in the functional currency of the

subsidiary.

At 31 December 2024, 85.7% (2023: 83.8%) of ISS Global A/S's borrowings were denominated in EUR or DKK.

The contractual maturities of financial liabilities below are based on the undiscounted contractual cash flows, i.e. including interest

payments estimated based on market expectations at 31 December. The risk implied from the values reflects the one-sided

scenario of cash outflows only.

Liquidity risk results from ISS Global A/S's potential inability or difficulty in meeting the contractual obligations associated with its

financial liabilities due to insufficient liquidity.

ISS Global A/S's liquidity reserves mainly consist of funds (cash and cash equivalents less not readily available or restricted cash)

and unused credit facilities. The level of cash and cash equivalents is typically highest at 31 December and not a representative

level for the rest of the year. At 31 December 2024, ISS Global A/S's liquidity reserves consisted of readily available liquid funds of

DKK 3,422 million (2023: DKK 3,118 million) and an unused revolving credit facilities of DKK 6,712 million (2023: DKK 6,708 million)

maturing in June 2029 with a one year extension option.

As at 31 December 2024, the duration of gross debt was approximately 1.2 years (2023: 1.1 years).

In addition to the financial liabilities as shown above, ISS Global A/S has issued a financial guarantee related to ISS companies'

possible drawn on the revolving credit facility of EUR 900 million maturing in June 2029. The facility was unused at 31 December

2024.

PARENT COMPANY FINANCIAL STATEMENTS 185

16 Currency risk (continued)

(DKKm)

Exposure,

net

Profit or loss /

Equity

2024

EUR/DKK (13,445) 10,737 (2,708) 1% (27)

TRY/DKK

1)

47 223 270

30% 81

USD/DKK 902 (1,130) (228) 10% (23)

Other/DKK (743) 1,146 403 10% 40

Total

(13,239) 10,976 (2,263)

2023

EUR/DKK (12,583) 8,104 (4,479) 1% (45)

TRY/DKK

1)

16

244 260 30%

78

USD/DKK 972 (1,089) (117) 10% (12)

Other/DKK (1,197) 1,416 219 10% 22

Total (12,792)

8,675 (4,117)

17 Related parties

1)

TRY is not hedged due to high costs of hedging. Currency swaps comprise internal derivatives.

• received dividends in total of DKK 1,253 million (2023: DKK 872 million) from companies within the ISS Group, see note 8,

Investments in subsidiaries and joint ventures.

• made a capital increase in ISS Holding France A/S of DKK 675 million, in ISS Asia Pacific Pte. Ltd. of DKK 51 million,

in Singapore of DKK 3 million and in Signal Arkitekter ApS of DKK 3 million (2023: DKK 1,341 million in three subsidiaries),

see 8, Investments in subsidiaries and joint ventures.

In addition to the description in note 7.3 to the consolidated financial statements of related parties and transactions with these,

related parties of ISS Global A/S comprise ISS World Services A/S and its subsidiaries, associates and joint ventures, see 8.4 to the

consolidated financial statements.

• received/paid interest from/to companies within the ISS Group, see note 6, Finance income and costs.

• paid joint taxation contribution equal to 22% of taxable income to jointly taxed Danish resident subsidiaries.

In 2024, ISS Global A/S had the following transactions with other related parties, which were all made on market terms:

• debt to companies within the ISS Group is disclosed in note 10, Borrowings.

• short-term receivable from subsidiaries was DKK 1,967 million (2023: DKK 2,090 million).

Borrowings – foreign currency sensitivity

Increase

in FX

Currency

swaps

(contractual)

Currency

exposure

(nominal)

A change in relevant currencies, with all other variables held constant, would have impacted profit or loss and equity with the

amounts below. The analysis is based on the Group’s internal monitoring of currency exposure on borrowings, intercompany

loans, external long-term receivables, as well as cash and cash equivalents.

Sensitivity

PARENT COMPANY FINANCIAL STATEMENTS 186

18 New regulations

19 Subsidiaries and joint ventures

Directly owned subsidiaries and joint ventures

ISS Facility Services Australia Ltd. Australia 100%

Pacific Invest December 2004 Pty Ltd. Australia 100%

ISS Austria Holding GmbH Austria 100%

ISS Facility Services N.V. Belgium 100%

ISS Chile S.A. Chile

100%

ISS International Czech Republic s.r.o. Czech Republic 100%

ISS Facility Services A/S Denmark 100%

ISS Global Management A/S Denmark 100%

ISS Holding France A/S Denmark 100%

ISS Lending A/S Denmark 100%

1)

Signal Arkitekter ApS Denmark 100%

ISS Palvelut Holding Oy Finland

100%

ISS Facility Services GmbH Germany 100%

ISS Greater China Ltd. Hong Kong 100%

ISS International Hungary Kft. Hungary 100%

ISS Facility Services India Pvt. Ltd. India 100%

PT ISS Facility Services Indonesia 100%

PT ISS Indonesia Indonesia 100%

ISS Ireland Holding Limited. Ireland

100%

ISS Facility Services S.r.l. Italy 100%

Nihon ISS KK Japan 100%

ISS Lietuva UAB Lithuania 100%

ISS International Malaysia Sdn Bhd Malaysia 100%

ISS Centro América, S de RL de CV Mexico 100%

ISS Holding Nederland B.V. Netherlands 100%

ISS Finance B.V. Netherlands 100%

ISS Holdings NZ Ltd. New Zealand

100%

ISS Holding AS Norway 100%

ISS Facility Services Sp. Z.o.o. Poland 100%

ISS World Services Poland Sp. z o.o. Poland 100%

ISS Tech Portugal Portugal 100%

ISS Romania Group SRL Romania 100%

ISS Asia Pacific Pte. Ltd. Singapore 100%

ISS Facility Services Pte. Ltd. Singapore 100%

ISS Facility Services (Pty) Limited

South Africa 100%

Integrated Service Solutions S.L. Spain 100%

ISS Facility Services Holding AB Sweden 100%

ISS Schweiz AG Switzerland 100%

ISS Tesis Yönetim Hizmetleri A.Ş. Türkiye 50%

ISS UK Holding Limited. United Kingdom 100%

New standards and interpretations not yet implemented are described in 8.3 to the consolidated financial statements.

1)

ISS Lending A/S applies §78a of the Danish Financial Statements Act.

Consequently, their annual report is prepared in accordance with the

requirements for Class B companies. ISS Global A/S is liable for all

ISS Lending A/S's current and future obligations.

MANAGEMENT STATEMENTS 187

Management statement

Copenhagen, 11 March 2025

The Board of Directors and the Executive Manage-

ment have today considered and adopted the An-

nual Report of ISS Global A/S for the financial year

2024.

The consolidated financial statements and Parent

company financial statements have been prepared

in accordance with IFRS Accounting Standards as

adopted by the EU and additional requirements of

the Danish Financial Statements Act (class D). In

addition, the consolidated financial statements and

Parent company financial statements have been

prepared in compliance with the IFRS Accounting

Standards issued by the IASB. The Management

review have been prepared in accordance with the

Danish Financial Statements Act.

In our opinion, the consolidated financial state-

ments and the Parent company financial state-

ments give a true and fair view of the financial po-

sition at 31 December 2024 of the Group and the

Parent company and of the results of the Group’s

and the Parent company’s operations and cash

flows for the financial year 2024.

In our opinion, the Management review includes a

fair review of the development in the operations

and financial circumstances of the Group and the

Parent company, of the results for the year and of

the financial position of the Group and the Parent

company as well as a description of the most sig-

nificant risks and elements of uncertainty, which

the Group and the Parent company are facing.

Additionally, the Sustainability statement, which is

part of Management review, has been prepared, in

all material respects, in accordance with paragraph

99a of the Danish Financial Statements Act. This in-

cludes compliance with the European Sustainabil-

ity Reporting Standards (ESRS), including that the

process carried out by the management to identify

the reported information (the Process) is in ac-

cordance with the description set out in the sub-

section titled Double Materiality Assessment in the

General section. Furthermore, disclosures within

EU Taxonomy in the Environmental section of the

Sustainability statement are, in all material aspects,

in accordance with Article 8 of EU Regulation

2020/852 (the Taxonomy Regulation Reporting).

The year 2024 marks the initial implementation of

paragraph 99a of the Danish Financial Statements

Act concerning compliance with ESRS. As such,

more clear guidance and practice are anticipated

in various areas, which are expected to be issued

in the coming years. Furthermore, the Sustainabil-

ity statement includes forward-looking statements

based on disclosed assumptions about events that

may occur in the future and possible future actions

by the Group. Actual outcomes are likely to be dif-

ferent since anticipated events frequently do not

occur as expected.

We recommend that the Annual Report be

adopted at the annual general meeting on 11 April

2025.

Executive Management

Kristoffer Lykke-Olesen

Board of Directors

Kasper Fangel

Mads Holm

Chair

Liz Benison Bjørn Raasteen

INDEPENDENT AUDITOR’S REPORT 188

Independent Auditor’s Report

To the shareholder of ISS Global A/S

Our opinion

In our opinion, the Consolidated Financial State-

ments and the Parent Company Financial State-

ments give a true and fair view of the Group’s and

the Parent Company’s financial position at 31 De-

cember 2024 and of the results of the Group’s and

the Parent Company’s operations and cash flows for

the financial year 1 January to 31 December 2024 in

accordance with IFRS Accounting Standards as is-

sued by the International Accounting Standards

Board (‘IASB’) and in accordance with IFRS Account-

ing Standards as adopted by the EU and further re-

quirements in the Danish Financial Statements Act.

Our opinion is consistent with our Auditor’s Long-

form Report to the Board of Directors.

What we have audited

The Consolidated Financial Statements and Parent

Company Financial Statements of ISS Global A/S for

the financial year 1 January to 31 December 2024

comprise statement of profit or loss, statement of

comprehensive income, statement of cash flows,

statement of financial position, statement of

changes in equity and notes, including material ac-

counting policy information for the Group as well as

for the Parent Company. Collectively referred to as

the “Financial Statements”.

Basis for opinion

We conducted our audit in accordance with Interna-

tional Standards on Auditing (ISAs) and the addi-

tional requirements applicable in Denmark. Our re-

sponsibilities under those standards and require-

ments are further described in the Auditor’s respon-

sibilities for the audit of the Financial Statements sec-

tion of our report.

We believe that the audit evidence we have ob-

tained is sufficient and appropriate to provide a ba-

sis for our opinion.

Independence

We are independent of the Group in accordance

with the International Ethics Standards Board for Ac-

countants’ International Code of Ethics for Profes-

sional Accountants (IESBA Code) and the additional

ethical requirements applicable in Denmark. We

have also fulfilled our other ethical responsibilities in

accordance with these requirements and the IESBA

Code.

To the best of our knowledge and belief, prohibited

non-audit services referred to in Article 5(1) of Regu-

lation (EU) No 537/2014 were not provided.

Appointment

We were appointed auditors of ISS Global A/S for

the first time on 10 April 2024 for the financial year

2024.

Key audit matters

Key audit matters are those matters that, in our

professional judgement, were of most signifi-

cance in our audit of the Financial Statements for

2024. These matters were addressed in the con-

text of our audit of the Financial Statements as a

whole, and in forming our opinion thereon, and

we do not provide a separate opinion on these

matters.

INDEPENDENT AUDITOR’S REPORT 189

Key audit matter

Revenue recognition

Revenue from contracts is recognised as the ser-

vices are rendered to the customers.

Recognition of revenue is complex due to volume of

transactions, the geographical spread of the Group’s

operations and furthermore from large integrated

facility service contracts being subject to interpreta-

tions, including impact from contract modifications

and variable consideration.

Accordingly, appropriate recognition and timing of

revenue is critical and involves management judge-

ment, especially in relation to integrated and com-

plex facility service contracts.

We focused on this area because of the significance

to the Consolidated Financial Statements, as well as

the complexity. In addition, we focused on this area

as revenue comprises a substantial number of trans-

actions with different characteristics.

Refer to Note 1.2 in the Consolidated Financial State-

ments.

Impairment assessment of goodwill

Goodwill comprise a significant part of the consoli-

dated statement of financial position.

The cash generating units (CGUs) in which goodwill

is included is impairment tested by management on

an annual basis.

We focused on this area, as the carrying amounts

are significant and as Management is required to ex-

ercise considerable judgement because of the inher-

ent complexity in estimating the fair value in use.

Refer to Note 3.1 and Note 3.2 in the Consolidated

Financial Statements.

How our audit addressed the key audit matter

We considered the appropriateness of the Group’s

accounting policies for revenue recognition and as-

sessed compliance with applicable IFRS Accounting

Standards.

We carried out risk assessment procedures in order

to obtain an understanding of IT systems, business

processes and relevant controls regarding recogni-

tion of revenue. For the controls, we assessed

whether they were designed and implemented to ef-

fectively address the risk of material misstatement.

For selected controls that we planned to rely on, we

tested whether they were performed on a consistent

basis.

We applied data analytics for revenue streams in or-

der to identify and test transactions outside the ordi-

nary transaction flow and performed substantive

procedures over invoicing and relevant contracts in

order to assess the accounting treatment and princi-

ples applied, and tested journal entries within reve-

nue.

We tested that the revenue is recognised in the cor-

rect financial year.

Finally, we assessed the adequacy of disclosures

provided by Management in the Consolidated Finan-

cial Statements.

We considered the appropriateness of the defined

CGUs within the business and examined the meth-

odology used by Management to assess the carrying

amount of goodwill assigned to groups of CGUs to

determine compliance with applicable IFRS Account-

ing Standards.

We performed detailed testing, including a test of

mathematical accuracy of Management’s impair-

ment tests for goodwill, and challenged the signifi-

cant assumptions affecting the future cash flows, in-

cluding assumptions related to revenue growth, op-

erating margins and discount rates.

We used our internal valuation specialists to inde-

pendently challenge the discount rates and terminal

growth rate. In calculating the discount rates, the

key inputs used were independently sourced from

market data, and we assessed the methodology ap-

plied.

Finally, we assessed the adequacy of disclosures

provided by Management in the Consolidated Finan-

cial Statements.

INDEPENDENT AUDITOR’S REPORT 190

Statement on the Management Review

Management is responsible for Management Re-

view.

Our opinion on the Financial Statements does not

cover Management Review, and we do not as part

of the audit express any form of assurance conclu-

sion thereon.

In connection with our audit of the Financial State-

ments, our responsibility is to read Management

Review and, in doing so, consider whether Manage-

ment Review is materially inconsistent with the Fi-

nancial Statements or our knowledge obtained in

the audit, or otherwise appears to be materially

misstated.

Moreover, we considered whether Management Re-

view includes the disclosures required by the Dan-

ish Financial Statements Act. This does not include

the requirements in paragraph 99 a related to the

sustainability statement covered by the separate

auditor’s limited assurance report hereon.

Based on the work we have performed, in our view,

Management Review is in accordance with the Con-

solidated Financial Statements and the Parent Com-

pany Financial Statements and has been prepared

in accordance with the requirements of the Danish

Financial Statements Act, except for the require-

ments in paragraph 99 a related to the sustainabil-

ity statement, cf. above. We did not identify any ma-

terial misstatement in the Management Review.

Management’s responsibilities for

the Financial Statements

Management is responsible for the preparation of

consolidated financial statements and parent com-

pany financial statements that give a true and fair

view in accordance with IFRS Accounting Standards

as issued by the International Accounting Standards

Board (‘IASB’) and in accordance with IFRS Account-

ing Standards as adopted by the EU and further re-

quirements in the Danish Financial Statements Act,

and for such internal control as Management deter-

mines is necessary to enable the preparation of fi-

nancial statements that are free from material mis-

statement, whether due to fraud or error.

In preparing the Financial Statements, Management

is responsible for assessing the Group’s and the

Parent Company’s ability to continue as a going

concern, disclosing, as applicable, matters related

to going concern and using the going concern basis

of accounting unless Management either intends to

liquidate the Group or the Parent Company or to

cease operations, or has no realistic alternative but

to do so.

Auditor’s responsibilities for the audit

of the Financial Statements

Our objectives are to obtain reasonable assurance

about whether the Financial Statements as a whole

are free from material misstatement, whether due

to fraud or error, and to issue an auditor’s report

that includes our opinion. Reasonable assurance is

a high level of assurance, but is not a guarantee

that an audit conducted in accordance with ISAs

and the additional requirements applicable in Den-

mark will always detect a material misstatement

when it exists. Misstatements can arise from fraud

or error and are considered material if, individually

or in the aggregate, they could reasonably be ex-

pected to influence the economic decisions of users

taken on the basis of these Financial Statements.

As part of an audit in accordance with ISAs and the

additional requirements applicable in Denmark, we

exercise professional judgement and maintain pro-

fessional scepticism throughout the audit. We also:

• Identify and assess the risks of material mis-

statement of the Financial Statements, whether

due to fraud or error, design and perform audit

procedures responsive to those risks, and ob-

tain audit evidence that is sufficient and appro-

priate to provide a basis for our opinion. The

risk of not detecting a material misstatement re-

sulting from fraud is higher than for one result-

ing from error, as fraud may involve collusion,

forgery, intentional omissions, misrepresenta-

tions, or the override of internal control.

• Obtain an understanding of internal control rel-

evant to the audit in order to design audit pro-

cedures that are appropriate in the circum-

stances, but not for the purpose of expressing

an opinion on the effectiveness of the Group’s

and the Parent Company’s internal control.

• Evaluate the appropriateness of accounting poli-

cies used and the reasonableness of accounting

estimates and related disclosures made by Man-

agement.

• Conclude on the appropriateness of Manage-

ment’s use of the going concern basis of ac-

counting and based on the audit evidence ob-

tained, whether a material uncertainty exists re-

INDEPENDENT AUDITOR’S REPORT 191

lated to events or conditions that may cast sig-

nificant doubt on the Group’s and the Parent

Company’s ability to continue as a going con-

cern. If we conclude that a material uncertainty

exists, we are required to draw attention in our

auditor’s report to the related disclosures in the

Financial Statements or, if such disclosures are

inadequate, to modify our opinion. Our conclu-

sions are based on the audit evidence obtained

up to the date of our auditor’s report. However,

future events or conditions may cause the

Group or the Parent Company to cease to con-

tinue as a going concern.

• Evaluate the overall presentation, structure and

content of the Financial Statements, including

the disclosures, and whether the Financial State-

ments represent the underlying transactions

and events in a manner that gives a true and fair

view.

• Plan and perform the group audit to obtain suf-

ficient appropriate audit evidence regarding the

financial information of the entities or business

units within the group as a basis for forming an

opinion on the Consolidated Financial State-

ments and the Parent Company Financial State-

ments. We are responsible for the direction, su-

pervision and review of the audit work per-

formed for purposes of the group audit. We re-

main solely responsible for our audit opinion.

We communicate with those charged with govern-

ance regarding, among other matters, the planned

scope and timing of the audit and significant audit

findings, including any significant deficiencies in in-

ternal control that we identify during our audit.

We also provide those charged with governance

with a statement that we have complied with rele-

vant ethical requirements regarding independence,

and to communicate with them all relationships and

other matters that may reasonably be thought to

bear on our independence and, where applicable,

actions taken to eliminate threats or safeguards ap-

plied.

From the matters communicated with those

charged with governance, we determine those mat-

ters that were of most significance in the audit of

the Financial Statements of the current period and

are therefore the key audit matters. We describe

these matters in our auditor’s report unless law or

regulation precludes public disclosure about the

matter.

Hellerup, 11 March 2025

PricewaterhouseCoopers

Statsautoriseret Revisionspartnerselskab

CVR no 33 77 12 31

Rasmus Friis Jørgensen

Mads Melgaard

State Authorised

Public Accountant

State Authorised

Public Accountant

mne28705

mne34354

INDEPENDENT AUDITOR’S REPORT 192

Independent auditor’s limited assurance

report on the Sustainability Statement

To the shareholder of ISS Global A/S

Limited assurance conclusion

We have conducted a limited assurance engagement

on the sustainability statement of ISS Global A/S (the

“Group”) included in the Management review (the

“Sustainability Statement”), pp. 37-85 for the financial

year 1 January – 31 December 2024.

Based on the procedures we have performed and

the evidence we have obtained, nothing has come to

our attention that causes us to believe that the Sus-

tainability Statement is not prepared, in all material

respects, in accordance with the Danish Financial

Statements Act paragraph 99 a, including:

• compliance with the European Sustainability Re-

porting Standards (ESRS), including that the pro-

cess carried out by the management to identify

the information reported in the Sustainability

Statement (the “Process”) is in accordance with

the description set out in the “IRO and interac-

tion with SBM” section (pp. 44-50); and

• compliance of the disclosures in subsection “EU

Taxonomy” within the “Environmental” section

(pp. 75-79) of the Sustainability Statement with

Article 8 of EU Regulation 2020/852 (the “Taxon-

omy Regulation”).

Basis for conclusion

We conducted our limited assurance engagement in

accordance with International Standard on Assur-

ance Engagements (ISAE) 3000 (Revised), Assurance

engagements other than audits or reviews of histori-

cal financial information (“ISAE 3000 (Revised)”) and

the additional requirements applicable in Denmark.

The procedures in a limited assurance engagement

vary in nature and timing from, and are less in ex-

tent than for, a reasonable assurance engagement.

Consequently, the level of assurance obtained in a

limited assurance engagement is substantially lower

than the assurance that would have been obtained

had a reasonable assurance engagement been per-

formed.

We believe that the evidence we have obtained is

sufficient and appropriate to provide a basis for our

conclusion. Our responsibilities under this standard

are further described in the Auditor’s responsibilities

for the assurance engagement section of our report.

Our independence and quality management

We are independent of the Group in accordance

with the International Ethics Standards Board for Ac-

countants’ International Code of Ethics for Profes-

sional Accountants (IESBA Code) and the additional

ethical requirements applicable in Denmark. We

have also fulfilled our other ethical responsibilities in

accordance with these requirements and the IESBA

Code.

Our firm applies International Standard on Quality

Management 1, which requires the firm to design,

implement and operate a system of quality manage-

ment including policies or procedures regarding

compliance with ethical requirements, professional

standards and applicable legal and regulatory re-

quirements.

Management’s responsibilities for the

Sustainability statement

Management is responsible for designing and imple-

menting a process to identify the information re-

ported in the Sustainability Statement in accordance

with the ESRS and for disclosing this Process as in-

cluded in the “IRO and interaction with SBM” section

(pp. 44-50) of the Sustainability Statement. This re-

sponsibility includes:

• understanding the context in which the Group’s

activities and business relationships take place

and developing an understanding of its affected

stakeholders;

• the identification of the actual and potential im-

pacts (both negative and positive) related to sus-

tainability matters, as well as risks and opportu-

nities that affect, or could reasonably be ex-

pected to affect, the Group’s financial position,

financial performance, cash flows, access to fi-

nance or cost of capital over the short-, medium-

or long-term;

INDEPENDENT AUDITOR’S REPORT 193

• the assessment of the materiality of the identi-

fied impacts, risks and opportunities related to

sustainability matters by selecting and applying

appropriate thresholds; and

• making assumptions that are reasonable in the

circumstances.

Management is further responsible for the prepara-

tion of the Sustainability Statement, which includes

the information identified by the Process, in accord-

ance with the Danish Financial Statements Act para-

graph 99 a, including:

• compliance with the ESRS;

• preparing the disclosures as included in subsec-

tion “EU Taxonomy” within the “Environmental”

section of the Sustainability Statement, in com-

pliance with Article 8 of the Taxonomy Regula-

tion;

• designing, implementing and maintaining such

internal control that management determines is

necessary to enable the preparation of the Sus-

tainability Statement that is free from material

misstatement, whether due to fraud or error;

and

• the selection and application of appropriate sus-

tainability reporting methods and making as-

sumptions and estimates that are reasonable in

the circumstances.

Inherent limitations in preparing the

Sustainability Statement

In reporting forward-looking information in accord-

ance with ESRS, management is required to prepare

the forward-looking information on the basis of dis-

closed assumptions about events that may occur in

the future and possible future actions by the Group.

Actual outcomes are likely to be different since antic-

ipated events frequently do not occur as expected.

Auditor’s responsibilities for the assurance

engagement

Our responsibility is to plan and perform the assur-

ance engagement to obtain limited assurance about

whether the Sustainability Statement is free from

material misstatement, whether due to fraud or er-

ror, and to issue a limited assurance report that in-

cludes our conclusion. Misstatements can arise from

fraud or error and are considered material if, individ-

ually or in the aggregate, they could reasonably be

expected to influence decisions of users taken on

the basis of the Sustainability Statement as a whole.

As part of a limited assurance engagement in ac-

cordance with ISAE 3000 (Revised) we exercise pro-

fessional judgement and maintain professional scep-

ticism throughout the engagement.

Our responsibilities in respect of the Process in-

clude:

• Obtaining an understanding of the Process, but

not for the purpose of providing a conclusion on

the effectiveness of the Process, including the

outcome of the Process;

• Considering whether the information identified

addresses the applicable disclosure require-

ments of the ESRS; and

• Designing and performing procedures to evalu-

ate whether the Process is consistent with the

Group’s description of its Process, as disclosed

in the “IRO and interaction with SBM” section of

the Sustainability Statement.

Our other responsibilities in respect of the Sustaina-

bility Statement include:

• Identifying where material misstatements are

likely to arise, whether due to fraud or error; and

• Designing and performing procedures respon-

sive to disclosures in the Sustainability State-

ment where material misstatements are likely to

arise. The risk of not detecting a material mis-

statement resulting from fraud is higher than

for one resulting from error, as fraud may in-

volve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal

control.

Summary of the work performed

A limited assurance engagement involves perform-

ing procedures to obtain evidence about the Sus-

tainability Statement. The nature, timing and extent

of procedures selected depend on professional

judgement, including the identification of disclosures

where material misstatements are likely to arise,

whether due to fraud or error, in the Sustainability

Statement.

INDEPENDENT AUDITOR’S REPORT 194

In conducting our limited assurance engagement,

with respect to the Process, we:

• Obtained an understanding of the Process by

performing inquiries to understand the sources

of the information used by management; and

reviewing the Group’s internal documentation of

its Process; and

• Evaluated whether the evidence obtained from

our procedures about the Process implemented

by the Group was consistent with the descrip-

tion of the Process set out in the “IRO and inter-

action with SBM” section.

In conducting our limited assurance engagement,

with respect to the Sustainability Statement, we:

• Obtained an understanding of the Group’s re-

porting processes relevant to the preparation of

its Sustainability Statement including the consol-

idation processes by obtaining an understand-

ing of the Group’s control environment, pro-

cesses and information systems relevant to the

preparation of the Sustainability Statement but

not evaluating the design of particular control

activities, obtaining evidence about their imple-

mentation or testing their operating effective-

ness;

• Evaluated whether the information identified by

the Process is included in the Sustainability

Statement;

• Evaluated whether the structure and the

presentation of the Sustainability Statement are

in accordance with the ESRS;

• Performed inquiries of relevant personnel and

analytical procedures on selected information in

the Sustainability Statement;

• Performed substantive assurance procedures

on selected information in the Sustainability

Statement;

• Where applicable, compared disclosures in the

Sustainability Statement with the corresponding

disclosures in the financial statements and Man-

agement review;

• Evaluated the methods, assumptions and data

for developing estimates and forward-looking

information; and

• Obtained an understanding of the Group’s pro-

cess to identify taxonomy-eligible and taxon-

omy-aligned economic activities and the corre-

sponding disclosures in the Sustainability State-

ment.

Other Matter

The comparative information included in the Sus-

tainability Statement was not subject to our assur-

ance engagement. Our conclusion is not modified in

respect of this limitation of scope.

Hellerup, 11 March 2025

PricewaterhouseCoopers

Statsautoriseret Revisionspartnerselskab

CVR no 33 77 12 31

Rasmus Friis Jørgensen

Mads Melgaard

State Authorised

Public Accountant

State Authorised

Public Accountant

mne28705

mne34354

FORWARD LOOKING STATEMENTS 195

Forward looking statement

This Annual Report contains forward-looking state-

ments, including, but not limited to, the guidance

and expectations provided in Outlook on p. 5.

Statements herein, other than statements of his-

torical fact, regarding future events or prospects,

are forward-looking statements.

The words may, will, should, expect, anticipate, be-

lieve, estimate, plan, predict, intend or variations of

such words, and other statements on matters that

are not historical fact or regarding future events or

prospects, are forward-looking statements. ISS has

based these statements on its current views with

respect to future events and financial perfor-

mance. These views involve risks and uncertainties

that may cause actual results to differ materially

from those predicted in the forward-looking state-

ments and from the past performance of ISS.

Although ISS believes that the estimates and pro-

jections reflected in the forward-looking state-

ments are reasonable, they may prove materially

incorrect. Actual results may differ materially. For

example as a result of risks related to the facility

service industry in general or to ISS in particular,

including those described in this report and other

information made available by ISS. As a result, you

should not rely on these forward-looking state-

ments.

ISS undertakes no obligation to update or revise

any forward-looking statements, whether as a re-

sult of new information, future events or other-

wise, except to the extent required by law.