Professional

The Professional business offers LED products and connected lighting systems & services to professional customers across the globe. Customer segments include offices, commercial buildings, shops, hospitality venues, specialty areas like agriculture and public lighting.

The Professional business aims to maintain its leadership position by further innovating in LED products, winning in connected lighting, and exploring new opportunities in areas of specialty lighting to drive growth.

In 2025, the Professional lighting market showed strong regional divergence, with clear regional differences: the US market showed relative resilience despite the impact of trade tariffs, supported by steadier construction activity, while Europe continued to face a difficult demand environment, particularly in the trade channel, amid economic uncertainty and subdued project

activity. Across regions, customers continued to prioritize efficiency, digitalization, and lifecycle value, driving sustained growth in connected lighting solutions. 

Nominal sales decreased by 4.2% to EUR 3,767 million, including a negative currency effect of 2.8% largely due to USD depreciation. Comparable sales decreased by 1.4%, as growth in the US Professional business was offset by the weakness in Europe's Professional business, particularly in the trade channel, and in emerging markets. The Adjusted EBITA margin decreased by 40 bps to 8.9% mainly reflecting price and volume pressure in European business, while the effect of trade tariffs was mitigated. Free cash flow was EUR 379 million.

Consumer

The Consumer business offers a wide variety of LED lamps and functional LED luminaires to the consumer segment.

As a leader in connected home lighting systems, notably Philips Hue and WiZ, Signify serves our consumer customers through various online and offline channels.

The Consumer business aims to maintain and diversify its leadership by strengthening its online sales channels, by adopting a regional approach to grow in consumer luminaires and by differentiating its product portfolio in LED lamps. Growing Connected systems through innovations in products and applications remains a key priority.

In 2025, the Consumer lighting market continued to evolve toward connected solutions, which stood out as the key structural growth driver across regions. Consumer adoption of connected lighting remained strong, supported by innovation, portfolio expansion and the continued shift toward smart, digitally enabled homes, with online channels playing an important role. Demand proved particularly resilient in markets such as India, while China experienced a more challenging consumer backdrop relative to other markets.

Nominal sales decreased by 1.7% to EUR 1,274 million, including a negative currency effect of 3.1% due to USD and other currencies depreciation. Comparable sales increased by 1.4% driven by strong connected sales throughout the year, partly offset by a decline in the non-connected business and weaker performance in China.

The Adjusted EBITA margin decreased by 50 bps to 10.6%, mainly due to higher commercial investments. Free cash flow was EUR 123 million.

OEM

The OEM business offers lighting components, such as LED drivers, electronics, modules and sensors to the industry. OEM serves both the internal organization for its requirements and other manufacturers across the globe in segments such as Retail and Hospitality, Office and Industry and Outdoor.

The OEM business balances sales growth and profitability through delivering cost-effective and fit for purpose solutions for both non-connected and connected offerings while also target specialty lighting segments through leveraging existing expertise and capabilities.

In 2025, the OEM lighting market faced a difficult competitive environment, marked by sustained price pressure and overcapacity. Demand remained subdued, with weak customer demand in Europe, as intense pricing competition was exacerbated by the ripple effects of tariffs and increased imports of Chinese components, especially in non-connected components.

Nominal sales decreased by 18.8% to EUR 355 million, including a negative currency effect of 2.3% largely due to USD depreciation. Comparable sales decreased by 16.5%, primarily reflecting weak end-market demand and intense price pressure amid structural overcapacity in the market. This was further exacerbated by lower orders from two major customers, an effect that impacted results throughout the year. The Adjusted EBITA margin decreased to 4.8%, reflecting the impact of lower volumes and continued gross margin pressure. Free cash flow was EUR 14 million.

Conventional

The Conventional business offers a range of products, including conventional lamps, electronics, and specialty lighting, with a focus on niche areas such as digital projection lighting. These conventional lamps are sold to consumers, electrical installers, distributors, and professional end users.

The strategic priority of the Conventional business is to maintain its leadership in the declining conventional lamps and electronics market, while utilizing its technology expertise and application knowledge to expand its presence in specialty lighting.

In 2025, the Conventional lighting market continued its predictable structural decline, reflecting the ongoing industry-wide shift away from traditional lighting technologies. As connected and LED solutions gained further traction, Conventional products steadily lost relevance, in line with long-term expectations.

Nominal sales decreased by 25.2% to EUR 327 million, including a negative currency effect of 2.1% due to USD and CNY depreciation. Comparable sales decreased by 23.1% reflecting the structural decline of the business. The Adjusted EBITA margin decreased by 180 bps to 16.1%. Free cash flow was EUR 42million.

Other

'Other' reflects the P&L of Signify’s venture businesses, in addition to centrally incurred costs not assigned to individual businesses, predominantly those related to exploratory research initiatives and audit activities. Adjusted EBITA was EUR -27 million (2024: EUR -32 million).

General basis for preparation

BP-1 - General basis for preparation of sustainability statements

Signify aims to provide stakeholders with complete and transparent information on its sustainability programs, performance and progress against goals, and key challenges. The Sustainability Statement is prepared in accordance with Part 28 of the Companies Act 2014 and in compliance with the European Sustainability Reporting Standards (ESRS) issued by the EU Commission in accordance with the Corporate Sustainability Reporting Directive (CSRD) 2022/2464/EU.

The consolidated sustainability statement includes the sustainability statement of Signify N.V. and its consolidated subsidiaries (hereafter referred to as "Signify", or "the company") for the reporting year ended on December 31, 2025. The scope of the consolidated sustainability statement is the same as for the consolidated financial statements, see Interest in Entities in chapter 15, Consolidated financial statements, note 11, Interest in entities for further information.

The sustainability statement scope covers our entire value chain including our own operations. New ventures and acquisitions acquired by Signify during the reporting year will be included in our environmental and social disclosures in the reporting year. Divestitures completed before December 31, 2025, are included in environmental and social reporting up to the date of disposal. In 2025, there were no new acquisitions or divestitures. In cases where data is not yet available, estimation methods have been used.  An overview of the data definitions, measurement methods, estimations, and any uncertainties inherent in the measurements can be found in section 5.5, Reporting principles. We did not exclude any information related to intellectual property, proprietary know‑how, innovation outcomes, or matters currently under negotiation.

Our external auditor, EY Accountants B.V. (EY), has provided reasonable assurance on the KPIs: "Total Greenhouse gas emissions (scope 1, 2 and 3)", "Brighter lives revenues", "Circular revenues" and "Percentage of women in leadership". These KPIs represent the 2025 results of our Brighter Lives, Better World 2025 program doubling commitments.  EY has also provided limited assurance on our sustainability statements in chapter 5, Sustainability statements. For the respective assurance statements, refer to section 17.2, Assurance reports on the sustainability statements 2025.

Section 5.6, Disclosure requirements and incorporation by reference of this chapter includes a GRI Content Index and an ESRS mapping indicating the disclosures made by reference in other chapters. For information incorporated by reference, a disclosure code has been added at the end of the relevant sentence. All policies referenced within this statement are publicly available through our website at www.signify.com/global.

In 2025, Signify reaffirmed its commitment to the United Nations Global Compact, to advance its 10 universal principles in the areas of human rights, labor, the environment, and anti-corruption efforts. This report serves as our annual Communication on Progress (COP) towards abiding by these principles. We report our contribution to six SDGs where we believe we can make the greatest impact: Good health and well-being (3), Affordable and clean energy (7), Decent work and economic growth (8), Sustainable cities and communities (11), Responsible consumption and production (12) and Climate action (13). We also respond annually to the CDP Climate questionnaire and make our disclosure publicly available.

Specific circumstances

BP-2 - Disclosures in relation to specific circumstances

Regarding the specific circumstances of our reporting approach, the following elements were considered for each topic. Further details are provided in section 5.5, Reporting principles.

• Time horizons alignment with the ESRS: all topics and assessments follow the ESRS time horizons unless otherwise specified in the respective topical sections: short-term is within one year, medium-term is between one to five years and long-term if more than five years.

• Value chain estimation: we currently use estimates for the following metrics:

  • E1, Climate change, GHG emissions

  • E5, Resource use and circular economy, inflows and waste

  • S1, Own Workforce

  Details on the estimation methodology, basis for preparation, our plans to transition towards actual data are provided in the reporting principles and the resulting level of accuracy is described.

• Data uncertainty: we have identified data uncertainty in our GHG emissions for Scope 3, Category 11 - Use of sold products, Inflows and Waste data and our Own workforce employee data. These uncertainties and estimation approaches are addressed in the reporting principles, with further details on the sources, assumptions and approximations.

• Forward-looking uncertainty: forward-looking statements are based on certain assumptions and analyses we make in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate given the circumstances.

• Changes from the previous reporting and comparative information: any changes to data calculations or estimation methods are disclosed in the reporting principles. We retain performance data from previous years if the data remains comparable. If the previous definition is not comparable, we excluded the historical data from the report. For new metrics, historical data is not disclosed.

• Validation of data: data and metrics provided for material IROs are not validated by any external body other than our assurance provider.

• Reporting errors: no reporting errors from previous periods were identified.

Reporting risk management and controls

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

Signify's sustainability reporting cycle and processes are aligned with the business principles and statutory reporting policies. Risk management and internal controls are incorporated within the Signify Business Control Framework. Each year, we conduct a risk assessment of our reporting process to identify the most material risks and define appropriate controls. This process is jointly led by the Sustainability team and the Internal control team and is compliant with the COSO framework.

The primary risks identified relate to the accuracy and completeness of data collection, particularly concerning environmental metrics. To address these risks, we have implemented controls within the software and tools used to collect prioritized data points. A roadmap for future control implementation has been established, based on the prioritization of material topics. The prioritization is determined by assessing the severity and scale of the risks. The Sustainability team and Internal Control team jointly evaluate these risks and propose areas of focus for annual improvement projects.

The controls for sustainability reporting are integrated in the internal control platform, where they are actively monitored. The accuracy and completeness of data for our prioritized topics and metrics are assessed annually. Where issues persist, corrective actions are implemented, logged and documented. The Audit Committee of the Supervisory Board provides oversight for the system of internal business controls and risk management. The governance model is described in section 13.1, Establishing a strong risk management environment.

Sustainability governance

GOV-1 - The role of the administrative, management and supervisory bodies, GOV-2 - Information and sustainability matters addressed by governing bodies

General governance information regarding the Board of Management and the Supervisory Board is available in the governance chapters of this report. Additional details on sustainability governance are provided in the following paragraphs.

The Board of Management is responsible for driving sustainable long-term value creation for the company. The two members of the Board of Management are the Chief Executive Officer (CEO) and the Chief Financial Officer (CFO). Our new CEO, As Tempelman, brings deep sustainability expertise from his previous leadership roles in the energy sector, where he drove ambitious climate initiatives and significantly reduced emissions while leading the company. The CFO brings extensive experience and expertise in our business, industry and material IRO topics, having served as a leader of Signify for many years. The Board of Management is tasked with designing a strategy in pursuance of our long-term value creation vision and relevant targets. The Supervisory Board is involved in shaping this strategy and oversees its implementation by the Board of Management.

Sustainability is an inherent part of the company’s overall strategy and a key business driver. Accordingly, both Boards consider relevant sustainability aspects – including impacts, risks and opportunities – when designing and overseeing the strategy. The same applies when considering major transactions and the company’s risk management process.

The responsibilities of the Board of Management include preparing the outcome of the double materiality assessment (DMA) in accordance with the CSRD, and overseeing the impacts, risks and opportunities associated with material sustainability topics identified through this process. The Supervisory Board supervises and advises the Board of Management regarding the process of preparing the DMA. These responsibilities are outlined in the Rules of Procedure for both the Board of Management and the Supervisory Board, which are available on the company’s website. While there is no formal employee representation on the Boards, Signify has established processes and engagement mechanisms to ensure regular dialogue between workers representatives and the Boards throughout the year.

Signify’s sustainability program, Brighter Lives, Better World 2025, is embedded in our purpose and integral to our strategy and the way we do business. The program and its associated targets are discussed in more detail in section 5.1, Brighter Lives, Better World 2025 progress. These targets were set by the Board of Management, and progress is reviewed quarterly by both the Audit Committee and the Supervisory Board. Additional Impacts, risks and opportunities (IRO) targets are proposed by relevant function leads.

Subsequently, these IRO targets are set and reviewed quarterly by the Board of Management when included in departmental strategic initiatives. Each specific committee and lead departments have action plans defined in alignment with the targets. The Chief Strategy, Sustainability and Marketing monitors performance against these plans and targets in collaboration with the relevant function leads. Progress and challenges are discussed when necessary and mitigation actions are implemented. Activities related to sustainability topics undertaken by the Supervisory Board and its Audit Committee in 2025 are discussed in chapter 9, Supervisory Board report.

The results and effectiveness of the policies and action plans in place addressing our material IROs, as well as the implementation of due diligence processes are monitored by the management of the respective functions- such as HR, Sustainability, and Procurement. These management teams update the Board of Management as needed, and corrective actions are taken when necessary. All actions are documented and tracked accordingly.

In 2025, the Board of Management prepared the double materiality assessment, which was presented to the Supervisory Board. More information on the assessment and the identified material sustainability topics is provided in the double materiality section and the respective topical sections.

Our organization is committed to effectively managing the impacts, risks, and opportunities associated with our operations. To support this commitment, we have implemented specific controls and procedures that integrate these elements across our internal functions. These include:

• An annual double materiality assessment

• Due diligence processes

• Ongoing impact management and data collection for material IROs

• Clear ownership of material IROs by designated functions and leads

• External assurance, certifications, and internal audits

• Each function lead is responsible for overseeing the controls and procedures related to their material IROs.

We communicate our sustainability program initiatives and achievements on a quarterly basis to Signify employees and share updates on our website for external stakeholders. Sustainability programs are embedded in the Signify organization and ways of working. Departments actively implementing these programs include sales, innovation, manufacturing, procurement and logistics.

The sustainability reporting cycle is managed by the Sustainability team in close collaboration with all relevant departments. The ESG Reporting Steering Committee oversees the annual ESG reporting strategy and progress on objectives throughout the year in half-yearly meetings. These meetings also include updates on risks assessments and the prioritization process for ESG reporting. The Committee is comprised of senior representatives from the following functions: Finance, Accounting, Digital, Procurement, and Sustainability.

Incentives

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

Signify has adopted a sustainability-related target into its incentive structure, as defined in the Remuneration Policy. Sustainability targets account for 25% of the long-term incentive metric. More details on incentive structures and performance alignment can be found in chapter 10, Remuneration report.

Due diligence process

GOV-4 - Statement on due diligence

At Signify, due diligence is integral to our commitment to responsible business practices, aligned with the OECD Guidelines for Multinational Enterprises, UN Guiding Principles on Business & Human Rights and increasingly with the EU Corporate Sustainability Due Diligence Directive (CSDDD). Our comprehensive due diligence framework addresses both human rights and environmental impacts, ensuring we meet regulatory requirements and adherence to our ethical standards. The process as defined in our Human Right Policy covers our own workforce, workers in the value chain, consumers, affected communities, and business partners.

We conduct annual risk assessments to identify and mitigate potential adverse impacts across our value chain. This includes evaluating our own operations and those of our suppliers, focusing on environmental management systems and compliance with international standards. These standards encompass fair labor practices, environmental protection, and anti-corruption measures. Regular audits and assessments are conducted, and any non-compliance is addressed through corrective action plans. The due diligence core elements are fully integrated across all businesses and operational processes. Additional details on our human rights due diligence process is provided in the S1 and S2 sections.

Strategy, business model and value chain

SBM-1 – Strategy, business model and value chain

With a legacy spanning more than 130 years, we have consistently been at the forefront of lighting technological advancement and innovation. Our strategy and business are outlined in chapter 3, Business and strategy.

For details on our principal markets, refer to the revenue per country table in chapter 15, Consolidated financial statements, note 2, Information by segment and main country. Our customer groups are aligned with our businesses described in chapter 3, Business and strategy, namely Professional, Consumer, OEM and Conventional. Some conventional lighting products are banned in the EU, the US and Australia due to regulations regarding incandescent, fluorescent and halogen lamps in relation to energy efficiency requirements. These products are sold in limited quantities in other markets where regulations do not apply.

Signify’s main activities are related to the Manufacturing of Electronics and Electronic Equipment (MEL) with NACE sectors and respective revenues as follows:

• C.27.40 Manufacture of electric lighting equipment (97.6% of revenues in 2025);

• F.43.21 Electrical installation (0.4% of revenues in 2025);

• N77.40 Leasing of intellectual property and similar products, except copyrighted works (2% of revenues in 2025).

Summary information on sales, regional breakdown, and business segment performance is provided in chapter 1, Performance highlights. Our activities under NACE code C.27.40 are classified as having a high climate impact. In 2025, our total revenue amounted to EUR 5.765 billion. For further details on related revenues, see chapter 15, Consolidated financial statements, note 3, Income from operations.

Core to our business is sustainability – we are committed to delivering energy efficient, serviceable, and upgradeable lighting products that enhance visibility, well-being and performance for businesses, cities, and consumers, aiming to reduce global electricity consumption from lighting. This is achieved by fostering a sustainable value chain built on circular solutions that promote longevity, repairability, and recyclability. By offering sustainable lighting products, systems, and services, we enable our customers to make more sustainable choices.

Our product portfolio is categorized according to climate, circular and social attributes, as well as EU Taxonomy requirements. Further details are available in section 5,1, Brighter Lives, Better World 2025 progress, and in subsection 5.2.3, EU Taxonomy. Potential material impacts, risks and opportunities related to our NACE sectors are identified through our double materiality assessment, with the exception for our activities related to the leasing of intellectual property, which does not present any potential material IROs for the business.

As a company driven by innovation, we invest significantly in product design. This dedication was rewarded in 2025 with 11 Red Dot Awards and 8 iF Awards. We lead the LED lighting industry with 20,400 patents, serving a market where LED products represent 91% of our sales. Additionally, we are the global frontrunner in connected lighting for homes, cities, and workplaces, with 160 million connected lighting points worldwide.

The strategic context outlined in chapter 3, Business and strategy provides an overview of the current priorities and focus for our strategy and sustainability ambitions. It also addresses the challenges faced by our business in recent years and how these were managed. Further details on these challenges are discussed in the material topics sections, reflecting their impact on strategic decisions.

Our sustainability program, Brighter Lives, Better World 2025 is described on page 28. The program’s targets span the entire product lifecycle - from design to end-of-life and reflect our engagement with customers, suppliers, public authorities, communities and investors. Through our Brighter lives revenues and Circular revenues targets, we assess the alignment of our products and services across markets and customer segments, and report progress quarterly.

Our value chain

This diagram describes our value chain activities related to the manufacture of electric lighting and electrical installation. We have excluded the leasing of intellectual property.

Given our broad portfolio of products across multiple brands, Signify operates a complex global supply chain aligned with our corporate strategy and sustainability program. We categorize our supply chain into three groups: product-related, indirect and freight & distribution.

• Product-related suppliers account for approximately 60% of our total supplier spend, covering essential commodities such as electronic components, aluminum, steel, plastics, and packaging materials. Suppliers are primarily located in Greater China, followed by Europe and the Americas;

• Indirect services suppliers represent 30% of spend. These include temporary labor, business services, equipment, storage, and office service providers. They are mainly based in Europe, followed by the Americas;

• Freight & distribution suppliers represent 10% of spend. Signify coordinates transportation between manufacturing sites and warehouses with business partners. Our sites and warehouses are located in countries where most of our suppliers operate, with the majority located in the Americas and Europe.

More details on our suppliers can be found in section 5.3.2, S2, Workers in our value chain.

Our operational activities are carried out across manufacturing sites, warehouses and offices, primarily located in North America, Europe and South and East Asia. Signify employs 26,581 FTEs globally with 43% in Asia & Pacific, 28% in Europe, 27% in the Americas and 2% in Africa & the Middle East. Across the organization, approximately 53% of employees were employed in Operations, 24% were employed in Commercial functions and 14% in Innovation, Research and Development. The remaining 9% worked in Corporate functions.

More details on our workforce available in section 5.3.1, S1, Own workforce.

Our products reach a diverse range of customers globally through multiple channels. Key customer groups include retailers, distributors and wholesalers, installers and contractors, professional end-users, corporate and system integrators (CSIs), original equipment manufacturers (OEMs), public services and cities. These customers serve various end-market segments such as residential, office and industrial spaces, retail and hospitality environments, and public infrastructure. This broad network ensures that our solutions contribute to sustainable lighting and energy efficiency across homes, businesses, and communities worldwide.

Our products are delivered to customers through collaboration with installers and logistic partners. For outdoor lighting installations, potential impacts on local communities are assessed in consultation with customers and engagement with community representatives is conducted when deemed necessary. During the design phase, our products undergo rigorous quality testing, and our research and innovation teams ensure compliance with all health and safety requirements.

Post-sale, our customer support team remains the primary contact point for assistance, maintenance services, product recalls, and more. For professional services, we offer tools, training and support to help bring lighting projects to life. 

At the end-of-life, Signify partners with local organizations to refurbish and recycle products, primarily in Europe under the Waste Electrical and Electronic Equipment (WEEE) regulations. For professional lighting, end-of-life management can be included in customer contracts, where we commit to replacing fixtures or bulbs and reusing the returned products and materials.

Sustainable Innovation

Innovation is an important pillar of Signify's purpose and our R&D drives investments toward our material IROs. Our sustainable products and systems must demonstrate proven measurable benefits in one or more of the following eight sustainable focal areas (SFAs).

Our five Better World SFAs:

• Energy & solar – increasing energy efficiency of products, systems and services, and solar systems and solutions;

• Circularity – optimally preserving value and avoiding waste via serviceable luminaires, circular components, intelligent asset management, and circular services;

• Packaging – reducing packaging weight and volume, increasing recycled material in the packaging, eliminating the use of fossil-fuel based plastics in the packaging of consumer products, and optimizing transportation efficiency;

• Substances – eliminating harmful substances;

• Weight & materials – reducing product weight, selecting recycled and/or renewable materials.

Our three Brighter Lives SFAs:

• Safety & security – providing light that has a positive effect on reducing crimes such as burglary and theft in cities and houses, increases safety in traffic and protection against cybercrime;

• Health & well-being – designing light to support health, well-being, and performance of humans, animals and wildlife with visual, biological, and emotional benefits of light;

• Food availability – providing light that enables the production of more and better-quality food, while optimizing the use of land, water and energy and avoiding the use of pesticides.

Sustainable innovation in millions of EUR

Our sustainable innovations continue to transform the lighting industry. In 2025, we invested EUR 255 million in sustainable innovation which represents 96% of Signify R&D expenses (2024: 95%). We believe that sustainable innovation will help create an increasingly future-proof and purposeful portfolio of products, systems and services.

Interest and views of stakeholders

SBM-2 – Interests and views of stakeholders

Capturing perspectives from a diverse range of stakeholders enables us to gain broader insights into our impact and contributes to the definition of our future strategy and plans. Signify engages regularly with its strategic stakeholders; those most likely to be impacted by our activities and have the greatest influence on achieving our commitments. We use a variety of engagement channels tailored to each stakeholder group. Each engagement process is owned by a relevant department, which leverages the input and feedback received. This input is also used to inform our double materiality assessment. The table provides an overview of the engagement topics discussed with each stakeholder group and how these insights impact the strategy.

The Supervisory Board is updated annually on sustainability-related insights collected from key stakeholders through discussions on material topics. These insights are integrated into relevant action plans and strategies, which are presented to both the Board of Management and Supervisory Board as relevant.

One area identified for improvement is engagement with local communities. Currently, Signify gathers input through market partners and local teams. By 2027, we aim to expand our engagement with local community representatives and the Signify Foundation. This engagement is not expected to affect the view of these stakeholders.

Double materiality assessment

IRO-1 – Description of the processes to identify and assess material IRO, IRO-2 - Disclosure requirements in ESRS covered by the sustainability statement

The Double Materiality Assessment (DMA) is reviewed annually to reflect changes that impact our activities across the value chain, as well as key internal business developments. The objective is to review and confirm the list of material topics related to Signify’s actual and potential impacts on the environment and society, along with the associated risks and opportunities for our strategy and business model.

The assessment covers the entire value chain, considering both direct and indirect impacts. It examines actual and potential, positive and negative impacts, as well as risks and opportunities. The due diligence process is integrated into the steps of this assessment. For more details, please refer to the due diligence table in this section, page 31.

In 2025, we reviewed both the long list and short list of material topics and conducted desk research on peers, customers, and investors to benchmark and validate our approach. We also refined the magnitude criteria used in our financial risk assessment by incorporating quantitative figures.

Every three years, we conduct a full assessment and engage with external stakeholders to gather their input and perspectives before scoring the shortlist of topics. The most recent full assessment was conducted in 2023, with the next scheduled for 2026. The methodology and process are described in the following five steps.

We began the process by reviewing our value chain mapping, which outlines Signify’s activities, business relationships and key stakeholders. This mapping considers stakeholders who may be affected by our business operations, as well as those who rely on our sustainability statements. For more information on the value chain, see page 33.

We reviewed a comprehensive list of topics, drawing from the European Sustainability Reporting Standards (ESRS) and desk research focused on the material priorities of our peers, customers, and investors. Some topics were further broken down to allow for a more detailed assessment. To ensure broad internal representation, we engaged stakeholders across departments, business functions, and geographies through surveys and interviews. This process helped validate the relevance of each topic and led to a prioritized list based on stakeholder input, confirming the final shortlist for assessment.As for external stakeholders, we engage with them every three years as part of the Double Materiality Assessment (DMA). The next engagement cycle is scheduled for 2026.

The criteria and methodology used for assessing the topics relied on the same definitions and thresholds established in 2023 to ensure consistency and comparability. Each criterion was evaluated using a standardized scoring system ranging from 1 to 5, with a materiality threshold set at 2.5.

For impact, we assessed severity – defined by scope, scale and remediability for negative impacts, and by scale and scope for positive impacts – as well as likelihood in the case of potential impacts. Precedence was given to severity when evaluating human rights-related impacts.

For financial risks and opportunities, we assessed the magnitude and likelihood. The assessment considered inherent impacts and risks, without factoring in existing mitigation measures – except in the case of positive impacts, where current programs and activities were considered.

Scoring for each topic in the shortlist was informed by available data, as well as insights and input gathered from the internal stakeholders and external parties through our annual engagement process (see Interest and views of stakeholders section). For social and human rights topics specifically, we incorporated findings from our due diligence risk assessments.

Each topic and its associated scoring were reviewed and discussed with the relevant internal experts. During these discussions, we considered interlinkages between impacts, dependencies, risks and opportunities, as well as relationships between sub-topics. The following elements were taken into account: the entire value chain, actual and potential positive and negative impacts as well as risks and opportunities; affected stakeholders and the short-, medium- and long-term horizons.

We plan to strengthen our engagement with affected stakeholders in 2026 to ensure that the assessment reflects a broader range of perspectives and insights.

Following the assessment and scoring process, the list of material topics was confirmed based on the predefined thresholds. For a detailed overview of the potential and actual, positive and negative impacts, as well as risks and opportunities, refer to the table on pages 38-41.

The outcome of the assessment was presented to the ESG Reporting Steering Committee and subsequently to the Board of Management, which formally adopted the results. The double materiality assessment was also presented to the Supervisory Board, and no changes were requested. For further details, see the Sustainability Governance section above. The finalized list of material topics serves as input to our Enterprise Risk Management process (see below), and informs our annual strategic planning, which takes place in the last quarter of each year.

Following approval of the double materiality assessment, the Sustainability team prepared this section to transparently report on the process and outcomes. Disclosure requirements were defined by confirming the mandatory disclosures for each material IRO and supplementing them with voluntary information aligned with the expectations from ESG ratings and rankings (see ESRS mapping table, section 5.6, Disclosure requirements and incorporation by reference).

The outcome of the double materiality assessment was integrated into Signify’s annual Enterprise Risk Management (ERM) process. The Sustainability team collaborated closely with the Risk team to incorporate the material sustainability risks into the prioritized shortlist of ERM topics. Where relevant, specific sustainability risks were used to inform the overall risk profile of certain business activities. For more details, refer to chapter 13, Risk factors and risk management.

SBM-3 – Description of material IRO resulting from materiality assessment

The 2025 review of our materiality assessment reaffirmed the same five material ESRS, encompassing 17 material IROs. The following ESRS are in scope for this report: E1 Climate change, E5 Circular economy and resource use, S1 Own workforce, S2 Workers in the value chain and G1 Business conduct. 

Topics under the following ESRS scored below the materiality threshold: E2 Pollution, E3 Water and marine resources, E4 Biodiversity and ecosystem, S3 Affected Communities and S4 Consumers and end-users. We held follow-up discussions with the teams responsible for these areas, particularly for topics that scored close to the threshold. It was agreed to closely monitor the evolution of related impacts and risks and reassess them in 2026.

Key changes from 2024 are:

• E1 – Climate change: a new financial risk related to physical climate risks and severe weather events was added. This change was driven by our new automated calculations, which increased the severity score and made the risk material. Conversely, the climate transition risk associated with investment needs has been removed, as it is no longer perceived as a risk but rather as a strategic investment.

• S1 – Own workforce: the topic of living wage was removed as we aligned to the CSRD definition of adequate wage this year. However, we continue to report voluntarily on living wage, which remains an internal priority.

• G1 – Business conduct: topics such as corporate culture, corruption and bribery were reclassified from a potential positive impact to a material financial risk, following further internal alignment with relevant teams and the ERM process. Additionally, political engagement and responsible advocacy were newly identified as a potential positive impact, reflecting the adoption of our climate transition plan – which includes advocacy as a strategic pillar – and our strengthened efforts to support policy development on environmental and social issues.

The following tables outline the material impacts, risks and opportunities (IROs), along with high level information on the strategies and actions in place to address them. These reflect Signify’s business approach and resilience in managing these IROs. Signify is equipped to address its IROs through its existing business model and strategy. A dedicated resilience analysis has been conducted for E1 Climate Change, and the results are presented in the E1 section. The tables also provide insights into the current effects on our strategy, value chain and business model.

The current financial effects of material risks and opportunities and the allocated budgets to the IRO action plans fall below financial materiality thresholds, and as such are not disclosed in this report or in the financial statements. Specific risks with anticipated future effects are further explained in the section 15.6, Notes to the Consolidated financial statements, when financially material. The connection between our strategy and business model is further elaborated in the relevant topical sections, which also include more detailed information on related policies, action plans and metrics.

Our material IROs are aligned with the ESRS. In addition, we report Signify specific metrics from our Brighter Lives, Better World 2025 program, and supplementary metrics under E1 Climate Change, S1 Own Workforce and S2 Workers in the Value Chain. Our two entity-specific disclosures are Circular revenues (E5) and Supplier sustainability performance (S2).

IRO	IRO description	Strategy and actions				Value chain	Affected stakeholders	Time horizon
E1 Climate change
Climate change mitigation Negative impact (actual)	Emissions from manufacturing processes in own operations and in supply chain: emissions from our value chain production processes, the embedded carbon in purchased goods, and the greenhouse gas emissions generated by our own production activities.	Signify has set emissions reduction targets for its own operations and supply chain, reaching 90% reduction by 2040. We have adopted a Climate Transition Plan and have programs in place to meet this target through our own operations activities and with our suppliers.					Customers and consumers Communities Nature Suppliers Business partners Public authorities	Short and Medium-term
Climate change mitigation Positive impact (actual)	Product use phase emissions: emissions avoided during the use phase of sold products, thanks to the development of energy efficient solutions.	Our energy efficient products contribute to reducing energy consumption and associated emissions, leading to a positive impact during the use phase. This positive impact contributes directly to our Scope 3 reduction target and supports our strategic objective to innovate with increasingly energy efficient solutions.					Customers and consumers Nature Public authorities	Short, Medium and Long-term
Climate change mitigation Financial opportunity (actual)	Product use phase emissions: growth in the energy efficient products market due to increased societal awareness of the challenges of the climate crisis leading to a shift in consumer preferences and prompting new policy developments.	Leverage the growing demand for energy efficient products by continuously innovating and expanding our portfolio to address evolving market needs. We capture opportunities by investing in sustainable technologies ensuring our offerings align with customer priorities while driving growth and reducing environmental impact.					Customers and consumers Investors Public authorities	Short and Medium-term
Climate change adaptation Financial risk (actual)	Climate risks preparation for our own operations and supply chain: climate-related physical risks, such as severe weather events, pose potential threats to both our own operations and those of our supply chain. These disruptions could result in financial risks associated with our assets and production capabilities.	Signify addresses climate-related physical risks by enhancing the resilience of its value chain against severe weather events. We take proactive measures such as diversifying suppliers, and implementing adaptive risk management practices to minimize disruptions, safeguard production, and ensure consistent supply chain performance.					Investors Own Workforce Suppliers Business partners	Short, Medium and Long-term
Energy Positive impact (actual)	Energy management in product use phase: designing energy efficient products helps Signify to mitigate climate change by reducing energy consumption throughout our products lifetime.	We deliver highly energy efficient lighting solutions that significantly reduce energy consumption during their use phase. Actively advocating for the transition to a green energy grid, amplifying the positive impact of our products by aligning reduced energy consumption with cleaner energy sources, while continuing to innovate and expand our portfolio with increasingly efficient products.					Communities Customers and consumers Investors Nature Business partners Public authorities	Short, Medium and Long-term
E5 Circular economy and resource use
Inflows Negative impact (actual)	Materials and finished products from suppliers: the extraction of primary raw materials for our product manufacturing is linked to our suppliers' production processes, contributing to the depletion of virgin resources and posing environmental risks such as pollution, deforestation, land use change, and biodiversity loss.	Collaborate closely with suppliers to source sustainable materials, promote recycling and reuse, and integrate circular design principles into our products - minimizing waste and reducing the environmental footprint of our supply chain.					Communities Nature Suppliers Business partners Workers in the value chain	Short and Medium-term
Inflows Financial risk (potential)	Materials and finished products from suppliers: rising prices of virgin materials due to challenges with availability, along with the higher costs of sustainable alternatives, present a financial risk due to increased procurement expense.	As part of our procurement processes, we monitor the costs and availability of virgin materials. To mitigate associated risks, we consider and, where feasible, use alternative sustainable materials in alignment with our circularity principles and procurement guidelines.					Customers and consumers Investors Suppliers	Short and Medium-term
Outflows Positive impact (actual)	Products with circular principles: by implementing circular principles in the design of our products, Signify enhances product circularity, which reduces end-of-life waste and minimizes negative environmental impacts.	Prioritize circular design, expanding the use of sustainable materials, collaborate with partners to establish robust recycling programs, and innovate solutions that align with circular economy principles and support the transition to a more circular economy.					Customers and consumers Nature Suppliers	Short, Medium and Long-term
Outflows Financial opportunity (potential)	Products with circular principles: growing customer interest and evolving policies are driving increased demand and market opportunities for circular products and services, creating a financial opportunity for Signify.	Capturing market growth by expanding our portfolio of circular products, investing in innovative technologies, and forging partnerships that advance circular economy initiatives - ensuring we meet customer needs while driving revenue growth.					Customers and consumers Nature Suppliers Business partners	Short, Medium and Long-term
Waste Negative impact (actual)	Waste management in our own operations: waste generated from our manufacturing and distribution activities can lead to environmental contamination, regulatory non-compliance, and increased operational costs if not well managed.	Committed to minimizing waste generation and enhancing recycling efforts. By implementing waste reduction strategies, optimizing production processes, and adopting circular economy principles, we aim to mitigate environmental impact while improving operational efficiency and sustainability.					Communities Nature Public authorities	Short and Medium-term
S1 Own workforce
Health and safety Negative impact (potential)	Health & safety: potential risk of incidents and injuries within our manufacturing and distribution environments, which could impact employee safety and operational continuity.	Signify has robust processes and programs designed to protect our workforce and contractors. By fostering a culture of safety, providing regular training, and implementing stringent compliance measures, we ensure a safe working environment and mitigate risks across all operations.					Own workforce	Short, Medium and Long-term
Talent and development Financial risk (potential)	Talent and development: a shortage of talent and critical skills presents a financial risk, potentially leading to increased attrition costs, loss of specialized knowledge, difficulties in meeting evolving workforce expectations, and challenges in managing disruptions caused by changes in workforce location.	Strong focus on proactive workforce planning, strategic talent development, and fostering a culture of learning and innovation. By investing in upskilling and reskilling programs and creating an inclusive workplace that attracts and retains diverse talent, we ensure our organization remains agile and well-positioned to address evolving market demands and maintain operational excellence.					Own workforce	Short, Medium and Long-term
Diversity, equity and inclusion, and gender equality Positive impact (Potential)	DE&I and gender equality: inclusive and equitable workplace practices foster inclusive leadership and a diverse workforce, cultivating a sense of belonging and equal opportunity that supports mental well-being.	By fostering an inclusive culture, implementing equitable policies, and actively promoting representation in leadership, Signify aims to create opportunities for underrepresented groups and empower a diverse workforce to thrive and contribute to our collective success.					Own workforce	Short, Medium and Long-term
S2 Workers in the value chain
Working conditions Negative impact (potential)	Working conditions: potential negative impact on workers in the value chain due to poor working conditions, including excessive working hours, inadequate wages and benefits, and inadequate health and safety practices, which can harm workers’ well-being and pose reputational and operational risks.	Robust supplier engagement and ethical sourcing practices are implemented through regular audits, compliance checks, training and partnerships. Ensure adherence to fair labor standards, adequate wages, reasonable working hours, and safe working conditions, fostering sustainability and ethical practices throughout our supply chain.					Workers in the value chain Suppliers Business partners	Short and Medium-term
S2 Workers in the value chain
Human rights Negative impact (potential)	Other human rights: potential negative impact in the value chain due to the risk of forced and child labor, as well as the exploitation of young workers, which can lead to severe human rights violations, reputational damage, and legal consequences.	Committed to ensuring ethical practices across the supply chain, actively addressing the potential issues related to forced labor, child labor, and the exploitation of young workers. Through stringent supplier audits, certifications, and a zero-tolerance policy for child and forced labor, we enforce compliance with international labor standards. In partnership with organizations advocating for human rights, we foster a transparent and responsible supply chain that prioritizes dignity, safety, and fairness for all workers.					Communities Workers in the value chain Suppliers Public authorities Business partners	Short and Medium-term
G1 Business conduct
Corporate culture, corruption and bribery Financial risk (potential)	Corporate culture, corruption & bribery: financial risk associated with compliance with our Integrity code, including the potential for corruption and bribery across our value chain and among stakeholders.	Foster a robust ethical culture and implement comprehensive compliance programs. We ensure rigorous adherence to anti-corruption laws, conduct regular employee training, and maintain transparent policies to uphold integrity across all levels of the organization and safeguard against reputational and financial risks.					Customers and consumers Investors Own workforce Business partners Public authorities Suppliers	Short, Medium and Long-term
Political engagement and responsible advocacy Positive impact (actual)	Political engagement and responsible advocacy: responsible advocacy practices supporting policy development on environmental and social topics through engagement and advocacy activities.	Support for ambitious climate policies and sustainable practices guided by our Climate Transition Plan and Responsible Advocacy Policy. Through active collaboration with policymakers, industry stakeholders, and environmental organizations, we aim to champion initiatives that accelerate climate action and align with our commitment to sustainability.					Communities Public authorities	Short, Medium and Long-term

Our approach

E1-GOV3 - Integration of sustainability-related performance in incentive schemes

As the global leader in lighting, Signify has an important role to play in the transition to a global low-carbon economy. We have been at the forefront of the transformation of the lighting industry. In 2006, we called for the phase-out of incandescent lighting at a time when it accounted for two-thirds of our sales volume. While this radical shift challenged many within the company and among our stakeholders and peers, it was the foundation of our industry leadership position today.

In 2025, 91% of our revenues came from energy efficient LED-based technologies. We have pioneered ultra-efficient technologies that last longer and greatly surpass the energy savings previously possible with standard LED. As a result of our innovations, we have achieved a 60% absolute reduction in scope 1, 2 and 3 greenhouse gas (GHG) emissions across our entire value chain, including emissions from the product use phase, since 2019. At the end of 2025, the total avoided emissions achieved through our LED technology sales (compared to Conventional technology) was 148 million tonnes CO₂e.

Signify continues to accelerate its climate action efforts. In 2024, the company strengthened its long-standing sustainability agenda by launching its Climate Transition Plan, signaling a renewed commitment to faster, deeper progress. Signify announced net‑zero targets validated by the Science-Based Targets initiative, aiming to reduce greenhouse gas emissions by 90% across the entire value chain by 2040, using 2019 as the baseline and without relying on carbon credits. This approach encompasses not only Signify’s own operations but its full value chain. The company also actively engages customers, employees, and policymakers to help drive broader climate action and advance brighter lives and a better world.

The management of our impact, risks and opportunities follows the governance model applied to our sustainability program Brighter Lives, Better World. Read more on this in section 5.1, Brighter Lives, Better World 2025 progress. Signify has adopted sustainability incentives, of which climate related targets account for 6.25% of the total. More details on the incentives in chapter 10, Remuneration report.

Material impacts, risks and opportunities

E1 IRO-1 - Description of the processes to identify and assess material climate-related IROs
E1 SBM3 - Material IRO and interaction with strategy and business model
E1-2 - Policies related to climate change mitigation and adaptation

The double materiality assessment identified the following material IROs:

1. Low carbon product use – actual positive impact – downstream

2. Emissions from production process – actual negative impact – upstream and own operations

3. Energy efficient products market – financial opportunity – downstream

4. Climate-physical risks – financial risk – own operations

5. Energy efficiency – actual positive impact - downstream

The table right summarizes the relevant policies and associated details, as well as their linkage to the E1 IROs.

In terms of process, the material impacts, risks and opportunities related to climate change were identified through the double materiality assessment as well as a specific climate-related risks and opportunities assessment based on climate change scenario analysis. The double materiality assessment is further explained in section 5,1 and the climate-related risks and opportunities assessment is presented in this section.

Our Climate Transition Plan directly addresses these impacts, risks and opportunities and the action plan and resources are explained in the sections hereinafter. For climate-related risks and opportunities specifically, Signify conducts an annual assessment considering multiple climate change scenarios. Based on the double materiality threshold, we perform further analysis on the financial impact of material risks and opportunities. See section Climate scenario analysis for more details.

There were no significant changes in Signify's definition of what constitutes the reporting undertaking and its upstream and downstream value chain. Signify does not have significant CapEx for coal-related economic activities, for oil-related economic activities and for gas-related economic activities. Signify is not excluded from EU Paris-aligned Benchmarks.

Action plan, targets and resources

E1-1 – Transition plan for climate change mitigation
E1-4 – Targets related to climate change mitigation and adaptation

Signify accounts for all its Scopes 1, 2, and 3 GHG emissions. It accounts for all seven greenhouse gases under the Kyoto Protocol, namely carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexaflouride (SF₆), and nitrogen trifluoride (NF₃), where applicable and expressed in CO₂-equivalent. Signify does not have material GHG emissions other than CO₂. Signify does not use biomass or biofuels, thus does not have material biogenic emissions. For our 2025 target of doubling the pace of the Paris Agreement 1.5°C pathway to decarbonize our entire value chain, 2019 was chosen as the base year. It is the earliest year of available emissions data for all categories of Scope 1, Scope 2, and Scope 3 where data was available. Scope 2 emission targets have been calculated using the market-based method. This target was set before the first reporting year of CSRD.

Signify's Climate Transition Plan was launched in June 2024 based on our net zero targets validated by the Science Based Targets Initiative (SBTi). By following the SBTi’s cross-sector absolute reduction requirement with a minimum 4.2% annual reduction, our targets are aligned with the Paris Agreement's 1.5°C pathway for scope 1, 2 and 3 GHG emissions. The plan was approved by the Chief Strategy, Sustainability and Marketing Officer and reviewed by the Supervisory Board and Board of Management. The Climate Transition Plan sets our company’s climate strategy, ambitions and action plan to mitigate climate change. It is integrated into our overall business strategy and financial planning, by including climate-related topics into budgeting planning, business continuity planning and risk management. The decarbonization levers and action plans are not necessarily updated annually, they are expected to be updated when there are significant changes in business structure, strategy, and decarbonization solutions. Signify monitors progress on these actions quarterly and reports annually on the implementation of the plan. The approach and planned actions are aligned with our Sustainability Policy and are managed through the same governance processes.

Our SBTi approved targets are:

• Net-zero greenhouse gas emissions across the entire value chain by 2040;

• 50% reduction in absolute Scope 1, 2 and 3 greenhouse gas emissions by 2030, compared with 2019 base year;

• 90% reduction in absolute Scope 1, 2 and 3 greenhouse gas emissions by 2040, compared with 2019 base year.

Our targets cover 100% of our Scope 1, 2, and 3 GHG emissions, including all seven Kyoto gases. To reach our net zero target, we are committed to eliminating the residual up to 10% through carbon removals, in addition to 90% emissions reduction. The plan covers our entire value chain and defines specific actions and decarbonization levers which are connected to our five material IROs under E1.

The use phase of our products accounts for more than 99% of total emissions across our value chain. To achieve net-zero, we must further increase the energy efficiency of our product portfolios. We must also advocate for the green energy transition to phase out fossil fuels and increase the use of renewable electricity in the world’s grids. It is clear that without this transition, we will not be able to achieve our 2040 net zero target.

Our Climate Transition Plan involves making further energy efficiency gains at our manufacturing facilities and offices and increasing reuse and recycling of Signify products and components when they have reached the end of their useful life. But most of all, it is about designing and delivering ever more efficient LED lighting, which saves energy, reduces GHG emissions, and lowers energy bills. We have made considerable advances in Ultra Efficient (UE) LED lighting, achieving efficiencies that are 50-75% more efficient than first‑generation LED technology.

Meanwhile, we will encourage a faster shift towards these technologies, and a faster decline in global energy demand, by partnering with others to advocate for an increase in the renovation of buildings, streetlights and other infrastructure globally. We realize these changes will affect our suppliers, customers, and employees, as we decrease production of inefficient conventional lighting in response to increasing market demand for energy efficient solutions and evolving regulations. We are committed to supporting them during the transition, ensuring that our products remain affordable, especially for those on low incomes. At the same time, we are convinced that our transition to net zero will bring clear, long-term benefits.

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

The actions outlined in our Climate Transition Plan rely on our broader commitment to developing more sustainable lighting solutions and directing capital toward sustainable economic activities under the EU taxonomy. This directly supports our actions required to reduce emissions from product use, which represents 99% of our emissions.

In 2025, Signify reported 43.8% of capital expenditures and 44.1% of operational expenditures to taxonomy-aligned activities, for absolute values refer to section 5.2.3, EU Taxonomy. These investments directly contribute to sustainable activities under CCM 3.5 – Manufacture of energy efficient equipment for buildings, CCM 3.6 - Manufacture other low carbon technologies that result in substantial GHG emission reductions in other sectors of the economy, CCM 6.5 - Transport by motorbikes, passenger cars and light commercial vehicles and CCM 7.7 – Acquisition and ownership of buildings. These investments include:

• Capital expenditure: purchasing equipment for LED production and enhancing the energy efficiency of our factories and other facilities, as well as lease contracts for new and/or renovated buildings.

• Operating expenditure: investment in innovation, research, and development to further improve the energy efficiency of our product portfolio and support greater circularity.

Based on our current assessment, the implementation of our climate transition plan is not expected to require significant additional investment, and we do not anticipate any material future financial effects beyond the expenditures already embedded in our existing operational and capital plans. We do not require any additional resources to implement our Climate Transition Plan.

Our ambition is to increase our aligned investment towards the EU Taxonomy objectives to support our Climate Transition Plan targets. In 2026, we will continue to develop and align our financial allocation plan required to address the actions for the other areas of our Climate Transition Plan, representing 1% of remaining emissions.

E1-8 – Internal Carbon Pricing

Signify has an internal carbon pricing scheme in the form of a uniform shadow price in place to drive emissions reduction across value chain. To quantify the impact of carbon emissions, we refer to the World Bank Carbon Pricing Dashboard and use the upper bound of the price range as our internal carbon price of the year. For 2025, the internal carbon pricing is USD 158.8/tonne CO₂e. This shadow price is intended for Signify’s businesses and functions to incorporate into decision-making process for the assessment of GHG emissions and potential financial impact, thereby driving investment and resources allocation toward low-carbon solutions. The shadow price can be used for Scope 1, 2 and 3 GHG emissions and all activities, entities and geographies. This price is considered relevant for our application as it reflects the actual value of carbon prices being used in regulated markets worldwide, providing a concrete quantification of the maximum financial impact of GHG emissions of business and operational activities.

All teams have the autonomy to determine whether and when to apply internal carbon pricing for their projects and activities. In 2025, we did not identify any specific use cases for internal carbon pricing; therefore, no Scope 1, 2, 3 emissions covered by internal carbon price are disclosed. The internal carbon pricing (shadow price) is not utilized in the financial statements.

Decarbonizing scenarios

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

In developing our Climate Transition Plan, we mapped out four different decarbonization scenarios, based on the latest IEA’s Net-Zero Roadmap and the sixth IPCC Assessment Report. These scenarios range from average global warming of 1.5°C to 4.4°C – and clearly show that achieving net zero will depend on further climate action by government and business, particularly in accelerating the transition to renewables. We set our Scope 1, 2 and 3 climate reduction targets in line with the 1.5°C scenario decarbonization pathway.¹For more details on the breakdown of emissions reduction targets, levers, action plan, and estimated emissions reduction, please refer to the Signify Climate Transition Plan, chapter 2, Action.

The majority of Signify's locked-in GHG emissions are primarily derived from the use of sold products over their lifetime. To address this, we leverage our Climate Transition Plan and commit to reducing GHG emissions to achieve net zero by 2040, with a particular focus on Scope 3 category 11 emissions (from the use of sold products). We aim to achieve this by continuously improving the energy efficiency of our products and advocating for an accelerated transition to renewable energy.

Therefore, these locked-in emissions do not pose a risk to Signify’s GHG emissions reduction targets or lead to transition risks. As we continue phasing out the conventional business and reducing the manufacturing footprint of it, no key assets (under Scope 1 and 2) are considered as locked-in emissions.

Signify's decarbonization action plan and identified emission reduction levers are based on a set of forward-looking assumptions reflecting expected technological, market, and regulatory developments in the lighting industry and for the broader value chain. These assumptions are used for projection purposes and are subject to uncertainty.

With most emissions outside our operations, we have identified two main drivers to achieve our net-zero ambition:

• To further improve the energy efficiency of our portfolio – this will help reduce energy consumption and support our customers’ decarbonization goals. Our action plan assumed a continued transition towards energy-efficient LED and connected lighting solutions, with ongoing improvements in luminous efficacy and digital control capabilities driven by our own sustainable innovation. The energy efficiency improvement rate was based on internal expert insights.

• To advocate for a green energy transition – this means working with governments, business and other stakeholders to increase the use of renewable energy in the world’s power grids. We assumed a progressive decrease in the greenhouse gas intensity of electricity grids worldwide, driven by energy transition plans, by governments, and by the private sector. The rate of renewable electricity transition in the IEA Net Zero Emissions scenario was used in our Climate Transition Plan to model the energy transition lever. By 2040, we expect over 40% of our emissions reduction will come from the transition to renewables from 2025 onward.

For our own operations, the plan assumed continued commitment to source 100% renewable electricity and continued improvement in reducing energy consumption and operational energy intensity. For business travel, we assumed a sustained reduction in business travel, especially air travel compared to pre-pandemic levels, driven by the continued use of hybrid working practices, more sustainability-centered travel policy as well as decarbonization of travel service providers in line with industry trends. For employee commuting, continued hybrid working arrangements were assumed, together with a gradual shift towards lower-carbon commuting modes. For supply chain, we assumed gradual improvements in supplier energy efficiency, increased use of renewable energy by key suppliers, and incremental increases in recycled and lower-carbon materials, subject to availability, cost, and supplier readiness. For logistics, we assumed gradual improvements in logistics efficiency, including route optimization, load consolidation, and improved vehicle utilization. We further assumed progressive decarbonization of transport services providers, including increased use of electric vehicles, and lower-carbon fuels, in line with sectoral and regulatory developments. For end-of-life treatment of sold products, we assumed improvement in waste reduction thanks to expanding circular business models and incremental improvements in product collection, recycling rates, and material recovery efficiencies, supported by extended producer responsibility schemes and regulatory developments.

1. The four decarbonization scenarios are depicted based on (1) the renewable energy transition rates derived from the Net Zero Emissions (NZE) scenario (i.e., 1.5℃ scenario), the Announced Pledges Scenario (APS) (i.e., 2.1 ℃ scenario) and the Stated Policies Scenario (STEPS) (i.e., 2.4 ℃ scenario) from the IEA Net Zero Roadmap report and the SSP5 -8.5 scenario (i.e., 4.4 ℃ scenario) in sixth IPCC Assessment Report; and (2) projected energy efficiency improvement of Signify’s product portfolio. The model emissions reductions are calculated against the 2019 base year actual emissions data for scope 1, 2 and 3 emissions. These decarbonization pathways were modeled for total scope 1, 2, and 3 emissions. Note that our projected emissions reduction by 2030 in the 1.5℃ scenario is more than the 50% required by the science-based near term target, this is because we expect significant improvement in portfolio energy efficiency will drive drastic emissions reduction in the first few years.
2. The timeframe of the action plan has changed compared to 2024, it was updated to better align with our near-term and long-term climate targets. Note that the 2030 CO₂e shown in the Scope 3 decarbonization levers chart is Signify’s projected emissions, which is more ambitious than the science-based near-term target.

Decarbonizing our own operations (Scope 1 and 2)

Signify has reduced 53% of its absolute carbon footprint in operations (Scope 1 & 2) compared to our 2019 baseline, and continues to do so, through implementing initiatives in our factories, warehouses, and offices. 2025 saw a 2% year-on-year emissions reduction vs 2024, primarily thanks to the effort of reducing natural gas consumption in factories.

Signify did not invest in GHG removals and storage projects in 2025. For details on the finance resources and planning (OpEx and CapEx), please refer to chapter 2.8, Investments and business models of the Signify Climate Transition Plan, aligning with the EU Taxonomy.

Driving clean energy transition with solar

In August 2025, the solar energy project at the Chengdu factory was successfully completed. The installation is expected to generate approximately 465 MWh of electricity annually, covering around 22% of the site's total electricity consumption and enabling an estimated 275 tonnes CO₂e emissions reduction each year. From August to December 2025, the system generated 140 MWh renewable electricity, resulting in 83 tonnes CO₂e reduction. Beyond reducing energy costs, the project strengthens the factory’s access to clean energy and supports Signify’s broader commitment to sustainable and low‑carbon operations. Additionally, any surplus electricity will be fed into the national grid, helping meet local energy demand and supporting the country's transition toward a cleaner national energy mix.

E1-5 Energy consumption and mix

We continue to procure 100% of our electricity from renewable sources. This achievement directly contributes to SDG 7: Affordable and clean energy. All electricity consumed by our operations worldwide was sourced from renewable sources or matched with Energy Attribute Certificates (EACs).

Signify’s total energy usage in 2025 amounted to 1,946 terajoules (540,394 MWh). Our operational energy intensity in terajoules per million-euro was 0.34 in 2025 (94 MWh/million-euro). This is 8% more efficient than 2024 (0.37) and is due to operational optimization, improved energy efficiency, less reliance on energy intensive activities in our factories and reduced heating and lighting requirements.

Approximately 12% of our renewable electricity was contracted through our energy providers, 44% was sourced via the procurement of Energy Attribute Certificates (EACs), and 44% came from our participation in Power Purchase Agreements (PPAs). In 2025, Signify had four operating PPAs: three virtual PPAs (vPPAs) in the US, Poland, and Finland, and one physical PPA in Belgium. Our PPAs support our climate transition by accelerating the shift to more renewable electricity grids and reinforcing our commitment to achieving net zero by 2040.

Travel and commuting (Scopes 3.6 and 3.7)

We are adopting a more sustainable approach to business travel, with the goal of drastically reducing emissions from both business travel (Scope 3.6) and employee commuting (Scope 3.7).

This will be achieved by updating our travel policy to introduce a stricter approval process, banning short-distance flights, and transitioning company lease cars to electric or hybrid vehicles.

In 2025, GHG emissions from business travel and employee commuting decreased by 31% and 9% year-on-year, respectively, due to reduced travel activity-particularly in air travel-as a result of our tightened travel policy.

Enabling carbon reduction at our suppliers (Scope 3.1)

By 2040, we plan to significantly reduce GHG emissions from our suppliers. This will be done mainly by engaging with suppliers, incentivizing them to take climate action, reduce emissions and switch to renewable energy. Where possible, we will also increase our use of alternative, low-carbon materials and integrate carbon costs into our procurement decisions. In 2025, we reduced emissions from purhcased goods and services by 8% year-on-year.

In 2025, we continued our efforts to increase the use of recycled materials in our products, reducing emissions from purchased goods while advancing circularity. One example is our 3D‑printed Urban Grey collection.

These luminaires use polycarbonate recycled from old streetlight shades, which is repurposed through 3D‑printing technology to create sustainable lighting products. By incorporating 75% recycled polycarbonate waste, we achieved a 70% reduction in greenhouse gas emissions per luminaire from the upstream supply chain.

Urban Grey collection

In 2025, we advanced our Scope 3 upstream emissions work by investigating the possibility of moving from a spend-based calculation to a methodology that combines activity-based and spend-based data. This shift gives us a more accurate view of where emissions occur across our supply chain and enables more targeted action. As we onboard suppliers and engage, we will enrich this methodology with primary data from suppliers. As the dataset develops, it will guide benchmarking, support the definition of reduction scenarios and help us focus emission-reduction efforts on the suppliers with the greatest contribution to our upstream footprint.

To determine where to act first, we are conducting a hotspot analysis to identify the commodity groups, suppliers and items with the highest contribution to our Scope 3 emissions from purchased goods and services. From 2026 onwards, we will begin direct engagement with the 20 suppliers representing the highest share of upstream emissions from purchased goods and services identified in the analysis. These suppliers will be asked to provide primary emissions data and will be involved in the development of reduction scenarios and indicative timelines. Insights from this process will flow into our climate transition planning and will support delivery against our emissions reduction ambitions.

Logistics (Scope 3.4 and 3.9)

Logistics GHG emissions are mainly in shipping materials to our factories and in transporting finished products to customers. We will reduce these emissions by opting for more sustainable forms of transport, favoring ocean and rail freight, for example, working in partnership with shippers and rail haulers, and investing in cleaner, alternative fuels.

In 2025, GHG emissions from logistics operations increased by 12% compared to 2024, mainly driven by increased road freight emissions.

In partnership with our local logistic provider, we now power operations in the Île-de-France region with 100% plant-based biofuel derived from French rapeseed. This switch cuts CO₂ emissions by 60% and improves urban air quality. With over 196 deliveries and 6,731 km annually in this region, this sustainable-fuel initiative leads to 5.6 tonnes CO₂ emissions reduction and marks a key step toward decarbonizing our supply chain and scaling sustainable low-carbon transport across Europe.

Enabling carbon reduction for our customers (Scope 3.11)

Phasing out conventional lighting and switching to energy efficient LEDs, introducing solar lighting, and further enhancing energy saving with smart connected LED lighting has significant environmental benefits. As mentioned previously, the majority of our value-chain emissions lie in the product use phase. Helping our customers to reduce emissions through energy efficiency is a vital aspect of our innovation process.

The progress in our portfolio to support climate change mitigation has been aligned with the EU Taxonomy regulation and is reflected in the Taxonomy specific section of this report. The benefits include comparable and harmonized measures throughout the industry.

In 2025, Signify’s Ultra Efficient (UE) LED solutions portfolio expanded with the introduction of our next generation of UE outdoor luminaires. Engineered to deliver exceptional performance, these luminaires enable customers to achieve up to 65% additional energy savings compared to the most efficient standard product previously available in the same range.

Ultra Efficient luminaires continue to meet Signify’s circular economy framework criteria, ensuring high material efficiency, design for repairability, and long lifetimes. Their significantly reduced energy consumption and extended lifespan help lower operational costs while dramatically decreasing waste and carbon emissions over the products’ life cycle.

As a result, we reduced our GHG emissions by 3% in 2025 compared with 2024.

End of life (Scope 3.12)

By moving to a more circular approach, we will reduce both waste and our reliance on increasingly scarce natural resources. We will do this by encouraging reuse, recycling and remanufacture. Initiatives are already underway to redesign our packaging and further embed circularity into initial product development.

In 2025, we continued to optimize our product packaging design to reduce material use and reduce emissions. We achieved a major milestone in sustainable packaging of our WiZ brand as we progress in our climate transition: 46% reduction in packaging volume, leading to 75.5% material saving for the WiZ Smart Plug. This results in and 1.2 tonne CO₂e emissions reduction from used raw materials and 18 kg CO₂e emissions reduction from end-of-life treatment. The packaging is made of easy-to-recycle paper materials and with this more compact design, we are able to stack 130% more products per pallet, optimizing transportation in the meantime.

WiZ Smart Plug packaging optimizaiton

GHG emissions and intensity

E1-6 – Gross Scopes 1, 2, 3 and total GHG emissions

Climate scenario analysis

The potential financial impacts of climate change pose a challenge to the stability and continuity of businesses over the short, medium, and long terms With a global footprint, Signify’s manufacturing sites and supply chain are exposed to these physical and transition risks related to climate change. Assessing climate-related physical and transition risks enables us to understand their implications on our operations and financial positions, thereby prioritizing risk mitigation and effectively addressing them in our policies and programs while improving business resilience with climate change mitigation and/or adaptation strategies. Signify has been reporting its climate-related risks and opportunities in alignment with the Task Force on Climate related Financial Disclosures (TCFD) recommendations and guidance since 2018 and has aligned to the ESRS requirements. In 2025, we continued our efforts to update our assessment of climate-related risks and opportunities, contributing to our Climate Transition Plan and showcasing our commitment to long-term business sustainability.

No assets and business activities that are incompatible with or need significant efforts to be compatible with the transition to a climate-neutral economy have been identified. The same set of assumptions used in the climate scenario analysis is being used in our financial statements, in chapter 15, Consolidated financial statements, note 1, Basis of preparation, Climate-related matters.

Our governance is effectively designed to manage the energy transition strategy and continues making significant progress towards optimizing long-term value through financial, environmental and social resources. The governance for climate-related risks and opportunities are the same as our general sustainability governance. For details on the responsibilities of our governance, refer to 9.2 Key discussion topics and meetings in 2025, Sustainability.

Climate-related risks and opportunities are managed the same way as other risks. Signify’s Board of Management is responsible for the overall risk management associated with the company's activities. It is assisted by the company Leadership Team, which participates on a quarterly basis in audit risk and control meetings organized by the Risk Committee, to identify material risks and review progress on the implementation of risk responses, including climate-related risks. The executive responsibility for climate-related issues is assigned to our Chief Strategy, Sustainability and Marketing Officer, to ensure the strong linkage and synergy between the company’s strategy and sustainability commitments, as well as to drive Signify's performance in the space of climate action. Our Chief Strategy, Sustainability and Marketing Officer oversees strategy setting, sustainability budget, and climate action plans and reports directly to our CEO and addresses climate-related issues regularly to the Board of Management in case of major capital expenditures, acquisitions, and divestitures. Signify’s Chief Strategy, Sustainability and Marketing Officer oversees a multi-discipline Climate Risk Assessment Taskforce, consisting of experts in Operations, Insurance, Risk Committee, Internal Audit, Sustainability, and Environmental, Health, and Safety (EHS). The Taskforce team is responsible for the continuous evaluation of the company’s short-, medium- and long-term climate-related risks and opportunities. This, as part of Signify’s integral risk management and business control, contributes to maximizing climate-related opportunities and improving our resilience to climate change.

The assessment of climate related risks and opportunities starts with understanding climate change scenarios for physical risks and mega trends for transition risks and opportunities. This is followed by screening our sites against climate hazards, and key transition drivers in regulation, market and technology to identify relevant risks and opportunities. Next, we investigate how these identified risks and opportunities would affect our global operations and our supply chain. The materiality of these risks and opportunities are evaluated based on their likelihood of occurrence as well as the estimated magnitude of impact. In response, we develop risk adaptation and mitigation strategies that enhance our operational resilience, risk management, and financial planning where applicable. We also use the results of the assessment to inform our strategy and action plan to drive the climate transition toward net zero and a low-carbon economy.

Physical risks

At Signify, climate-related physical risks stem from the impacts of climate change on our manufacturing sites, warehouses, offices, and key suppliers. We assess the severity of both acute and chronic risks using a location-specific risk profiling tool.

Climate-related physical risks are assessed under the following time horizons. The short-term horizon is defined as one year; the medium-term horizon is defined as 1-5 years, and the long-term horizon is defined as beyond five years. The short-term one-year horizon is in line with our annual financial planning. The medium-term five-year horizon is linked to our company strategy planning and capital allocation planning cycle. The long-term horizon informs the company’s financial decisions and aligns with the IPCC climate change scenarios. As the short-term and the medium-term horizons are close and the lack of data for a five-year climate change scenario, we consider the medium-term assessment the same as the short-term assessment. For the long-term, 2080 has been used for the assessment year due to data availability.

Signify assesses climate-related physical risks for three different scenarios, namely a short-term scenario and two long-term scenarios. The short-term scenario is in line with the Shared Socio-economic Pathways (SSP) – SSP1-2.6 scenarios. The long-term scenarios are in line with SSP1-2.6 scenario (a stringent mitigation below 2°C scenario, or in line with the Paris Agreement 1.5°C scenario) and SSP 5-8.5 scenario (a very high GHG emissions scenario), as described in the IPCC AR6 report. The physical risk assessment approach consists of four steps: (1) risk screening, (2) risk mapping, (3) risk assessment, and (4) risk mitigation and/or adaptation.

The first step is risk screening based on the climate-related hazards listed in ESRS E1, to identify the hazards that are relevant for Signify based on our sector, our value chain, our operational activities and site locations. This is done by cross checking the nature of our operations, previous year’s analysis and inserting coordinates of Signify sites and key suppliers into the risk profiling tool. Next, risk mapping is performed for all our manufacturing sites, warehouses, offices, and key suppliers, in line with each of these relevant climate-related hazards. Under different climate change scenarios, we evaluate the future hazard score at an individual site level based on the site’s geographical location. Subsequently, we further assess the risk level of each site based on its future hazard scores that are categorized by six hazard scores: “very low”, “low”, “medium”, “high”, “very high,” and “extreme.” Next, the gross financial impact would be quantified based on the production activities and value of assets on site, by estimating the likelihood of occurrence and magnitude of effect of each climate hazard. If the sum of financial exposure of a specific risk is above our financial materiality threshold (same as ERM), that risk is considered material for Signify. Based on each site’s risk level – when it’s “very high” or “extreme” – we perform further investigation into its site-specific vulnerability regarding such climate-related hazards to inform mitigation strategy. Finally, in the risk mitigation step, we design business continuity and response plans to mitigate risks and strengthen resilience. Our Corporate Security team oversees Signify’s business continuity management, which covers emergency response, major incident/crisis response and business continuity (recovery). Each Signify site develops their own site-level business continuity plan based on local context and in line with potential risks, including material climate-related physical and transition risks.

Transition risks

Our transition risks assessment is grounded in external transition megatrends - including policy and regulation, market dynamics, technological developments (including AI), energy system evolution, and customer preferences - relevant to Signify during the reporting year. These external drivers are derived from:

• The IEA Net Zero Emissions by 2050 scenario, used as our primary transition reference point;

• Widely recognized external publications and industry analyses;

• Insights from Signify’s Double Materiality Assessment (DMA).

To better understand potential impacts, we made the following assumptions:

• There are varying levels of regulatory requirements on the energy efficiency of lighting products;

• No price erosion;

• Signify maintains its current market share in the lighting industry;

• There will be an increased need for lighting based on population increase, urbanization, GDP growth and lighting market intelligence.

This approach ensures alignment with regulatory expectations and the evolving external landscape. According to the IEA’s Net Zero Emissions by 2050 scenario and its 2024 progress update, the global energy transition is accelerating but becoming more complex. Broader adoption of renewable energy and electrification continues, driven by declining technology costs and growing corporate commitments to source carbon-free power. At the same time, energy systems face increasing policy fragmentation, grid constraints, and regional disparities in clean technology deployment. Governments are tightening environmental and climate disclosure requirements through frameworks such as the EU CSRD and the forthcoming GHG Protocol revisions, creating new expectations for transparency and credible decarbonization pathways. These dynamics are expected to heighten both regulatory and market transition risks while expanding opportunities for companies that offer verified low-carbon and resource-efficient solutions.

Using the megatrends described above, and focusing on Signify’s assets and business activities, we identify transition risk and opportunity drivers that could possibly affect Signify’s business model, strategy, operations, supply chain, or market positioning. These drivers are assessed through the lens of both outside-in (transition risks) and inside-out (transition opportunities) effects. Each identified risk or opportunity is evaluated across impact (magnitude of potential consequences) and likelihood (probability of occurrence), based on multiple working sessions with internal experts from Strategy, Risk, Insurance and Procurement. The methodology is consistent with Signify’s Double Materiality Assessment, and is applied across short-term, medium-term, and long-term time horizons, in line with physical risk assessment time horizons. Based on the combined Impact × Likelihood scores, risks and opportunities are categorized as high, medium or low by testing each transition risk/opportunity drivers against the company’s activities and strategies. Items assessed as high risk or high opportunity are considered material and undergo further quantification of potential financial effects, in accordance with ESRS E1 requirements. The approach incorporates inputs from relevant teams and internal experts, and the process is reviewed annually to ensure alignment with the latest external developments, internal strategy and risk updates, and reporting requirements.

Supply chain risk assessment

For our supply chain, climate-related physical risks are assessed for the 70 most relevant suppliers that could have the most significant business impact, following the same approach as our own sites. Climate-related transition risks are assessed as part of Signify integral transition risks and opportunities assessment. Results are presented in section Risks and opportunities identified.

In parallel, the procurement team runs a supply chain risk management tool, which continuously assesses a list of risks related to the location of our suppliers that could impact business continuity. This covers 5,000 supplier locations (representing 93% of spend). In case of a severe event, the tool will signal this, enabling us to quickly map suppliers in the impacted area and initiate fast and dedicated mitigation actions. In late 2025, we began implementing a new supplier engagement tool, which will enhance how we manage hotpots and engage with priority suppliers.

Risk and opportunities identified

The results of climate-related physical risks are presented in the table to the right. We identified six climate-related hazards relevant for Signify’s manufacturing sites, warehouses, offices, and key suppliers, namely, flooding, drought, heatwave, wildfire, storm, and extreme precipitation. It is worth noting that the long-term impact of physical risks is influenced by climate change and degree of global warming. In particular, the long-term risks of flooding, droughts, and heatwaves under the above 4°C scenario are expected to be significantly higher than under the below 2°C scenario.

As a result of the 2025 climate-related physical risk assessment, one risk – flooding – is considered material leading to a gross financial impact of EUR 43 million in the long term. The financial impact of drought, heatwaves and extreme precipitation were assessed qualitatively, as these hazards are acute and are not expected to cause significant damage to our assets, and are therefore considered financially immaterial. Nevertheless, they remained in the scope of our physical risks assessment due to potential impact on employee commuting and well-being. 

The assessment of physical risk is conducted on a yearly basis due to the unpredictability of extreme weather events, leading to an increased or decreased level of risks due to climate change. Nevertheless, Signify is well prepared for climate-related physical risks and has a resilient adaptation plan in the form of a business continuity plan. This adaptation plan enables flexibility in terms of production locations, employee working locations, sourcing options, and transportation options, thereby minimizing the overall impact of climate-related physical risks on Signify’s operations as well as value chain.

			Hazard score
Climate hazard	Risk assessment summary		Short term Medium term	Long term <2°C	Long term >4°C	Resiliency score	Risk score
Flooding	3% of our sites are located in or adjacent to areas potentially associated with a very high hazard score of riverine or coastal flooding. The gross financial impact of flooding exceeds our materiality threshold, making this hazard material. However, due to strong preparedness measures and high site-level resilience, the net financial exposure is expected to be low, and the risk is therefore not considered material.						Material
Droughts	9% of our sites are located in or adjacent to areas potentially associated with a very high drought hazard score. The gross financial impact of drought does not exceed our materiality threshold, so this hazard is not material. Given strong preparedness measures and high site‑level resilience, the net financial exposure is expected to be low, and the risk remains non‑material.						Not material
Heatwaves	23% of our sites are located in or adjacent to areas potentially associated with a very high hazard score for heatwaves. The gross financial impact of heatwaves does not exceed our materiality threshold, so this hazard is not material. Given strong preparedness measures and high site‑level resilience, the net financial exposure is expected to be low, and the risk remains non‑material.						Not material
Wildfire	None of our sites are located in or adjacent to areas potentially associated with a very high wildfire hazard score. No significant impacts are expected, and the risk is therefore considered to be non-material.						Not material
Storm	4% of our sites are located in or adjacent to areas potentially associated with a very high storm hazard score. The gross financial impact of storms does not exceed our materiality threshold, so this hazard is not material. Given strong preparedness measures and high site‑level resilience, the net financial exposure is expected to be low, and the risk remains non‑material.						Not material
Extreme Precipita-tion	58% of our sites are located in or adjacent to areas potentially associated with a very high extreme precipitation hazard score. Extreme precipitation does not significantly affect our operations; therefore, the gross financial impact does not exceed our materiality threshold, and the hazard is not considered material. With strong preparedness measures and high site‑level resilience, the net financial exposure is expected to remain low, and the risk non‑material.						Not Material

	Short term (1 year)		Medium term (1 – 5 years)		Long term (>5 years)		Quantification	Mitigation/adaptation
Policy and regulation	Tightening climate disclosures & products standards Global policies and regulations on climate action continue, despite a temporary slowdown.  The implementation of, for example CSRD, EU Taxonomy, Ecodesign for Sustainable Products Regulation (ESPR) and upcoming GHG Protocol updates require more granular carbon, circularity, and supply-chain data.		Global divergence of regulations Fragmented carbon pricing and regional content rules (EU CBAM, US IRA, China ETS) raise compliance costs and complexity for multi-market operators like Signify. Higher operating and production costs may result from the introduction of new or increased carbon pricing, taxes and trading schemes.		Net-zero alignment pressure Governments around the globe may impose mandatory net-zero transition plans, product carbon limits, and reporting on value-chain emissions with assurance; non-compliance could restrict market access or financing.		Not material	Signify is well prepared for newly introduced and upcoming regulations while leveraging our CTP to drive climate transition in our operations and across value chain, stay competitive through sustainable innovation and product design, and minimize related financial impact due to imposed emissions-related pricing or taxes.
Technology (inc. AI)	Emerging energy and data intensity Increased use of AI and IoT integration in operations raises electricity consumption and embedded emissions from electronics and data centers.		Broader environmental impact of AI Increased use of AI and IoT integration will also lead to an increase in water consumption, which acerbates the severity of global water stress. Overuse or over-reliance on AI might result in extra public scrutiny.		Systemic dependency risk Rising computing demand could slow down the decarbonization of digital infrastructure, making decarbonizing Scope 3 emissions more challenging.		Not Material	Signify’s operations are not heavily dependent on AI. We have a responsible use of AI policy that guides our use of AI within Signify. We are actively engaging our AI and cloud service providers to improve the efficiency of their algorithms and source carbon-free energy. In the meanwhile, we leverage AI and digitalization in our smart and connected lighting systems to facilitate more efficient use of electricity and maximize energy and emissions reduction for our customers worldwide.
Supply chain	Limited supplier readiness for ESG reporting requirements New CSRD and ESPR requirements expose data gaps in supplier GHG reporting and product traceability. At the early stage, suppliers may lack capacity to provide verified product carbon footprints or meet sustainability criteria.		Rising cost and competition for low-carbon materials and components Surging demand for recycled materials and bio-based plastics may increase procurement costs. Suppliers may pass on costs from decarbonization investments (energy, transport, or material substitution).		Sustainable materials not cost competitive Different climate ambitions in different regions affect global supply chains. Volatile global trade policies may force re-localization or reshoring of production, increasing capital intensity. Low-carbon suppliers might not be able to compete with carbon-intensive suppliers due to higher costs, potentially undermining our sourcing decisions to promote sustainable purchasing activities.		Not Material	Signify’s supplier sustainability program  drives co-development of SBTs, renewable sourcing, and circular co-design with suppliers. The program incentivizes sustainability performance of suppliers, while investing in supplier engagement tooling and foster partnerships for sustainable materials innovation. In addition, we maintain a wide-ranging supply network and dual sourcing strategy. We further diversify the sourcing of critical materials and components and are actively monitoring market dynamics.
Market and product	Customer preference shift Increased societal awareness of the challenges of climate change and a shift in consumer preferences will result in growth of demand for energy efficient and low-carbon products.		Increased competition in the low carbon marketplace Regional government policies, such as the European Green Deal will lead to additional demand for energy efficient and low-carbon products. Competition on carbon intensity, lifecycle transparency, and energy savings intensifies; public tenders increasingly include climate-based scoring, businesses increasingly seek suppliers who can bring sustainability benefits.		Structural market transformation Global public and private sector’s climate transition creates a substantial market for energy efficient and low-carbon solutions for the long term. Stricter requirements on transparency and verification are emerging to deliver quantifiable positive climate impact.		EUR 166 million	Signify holds a strong, distinctive position in driving the LED and connected‑LED lighting transition. Through ongoing sustainable innovation, we will develop new products, systems and services that open niche markets with higher energy efficiency and connectivity, increasing revenues from low‑carbon and sustainable design. We will use our broad portfolio to capture opportunities across market segments and rely on third‑party verification to demonstrate our leadership in product environmental impact. In our Climate Transition plan, we advocate for a 3% annual renovation rate to accelerate LED adoption, and we quantify this opportunity as 3% of our 2024 LED revenues.
Reputation	Recognized sustainability leadership Signify has been widely recognized as the sustainability leader in the lighting industry.		Stakeholder awareness and ESG rating competition Investors and customers demand credible and measurable sustainability impact; leveraging our leadership position in ratings and rankings can differentiate ourselves among competitors.		License to operate In the long-term credible sustainability credentials might become the license to operate, raising the bar for all.		Not Material	Clear, credible and transparent disclosure of our impact and strategy for climate and circularity strengthens Signify’s brand reputation while improving customers confidence in our energy efficient and low-emission portfolio. However, the opportunities level is deemed low as currently only limited numbers of large customers prioritize sustainability performance in tenders, while in the long term sustainability credentials will become the license to operate, making it more challenging to stand out.
Energy security	Volatile energy prices Energy markets remain exposed to geopolitical uncertainty; high prices impact businesses and consumers. Under these circumstances, there is an expected increase in willingness to switch to more energy efficient lighting solutions (LED) to cut energy bills.		Energy efficiency to improve energy security Continued concerns over energy security and energy price fluctuations may lead to increased demand for energy efficient lighting as well as the demand for public-sector incentives schemes and funding.		Grid bottlenecks further intensify energy insecurity Grid constraints and uncertainties are delaying renewable deployment and storage infrastructure, increasing the exposure to energy insecurity and Scope 2 emissions. In this case, the energy transition represents a major opportunity for Signify to expand our impact through highly efficient and connected lighting technologies, by enabling substantial electricity savings, grid flexibility, and renewable integration.		Not Material	As energy systems shift toward renewables and demand-side flexibility, our lighting technologies — among the most energy efficient in the world — are uniquely positioned to contribute to reduced grid load, lower emissions, and smarter energy use. LED and connected lighting solutions consume up to 80% less electricity than conventional technologies, directly reducing Scope 2 emissions for our customers and supporting national energy efficiency targets. When integrated with digital controls and sensors, these systems enable demand response, load balancing, and peak-shaving, helping stabilize renewable-heavy grids and enhance overall energy resilience.

Our business resilience analysis

Our company strategy and business model remain firmly rooted in sustainability and energy efficiency, which are essential in the transition towards a low-carbon and resilient economy. This makes us climate-resilient in relation to climate change while navigating global energy transitions.

The scope of our resilience analysis covers Signify’s strategy and business model, including our own operations and upstream and downstream value chain where applicable. Based on our climate risk assessment, the resilience analysis was done in line with the same time horizons and scenarios used for material physical and transition risks, while taking into account our decarbonization targets (net zero by 2040). Over the short-term, medium-term and long-term. The resilience analysis is performed annually. The resilience of company strategy and business model is embedded in the annual ERM cycle. The resilience against material physical risks and transition risks is evaluated based on the site-specific vulnerability assessment, the results of which are incorporated into the site-level business continuity plan (BCP) based on the local context. Insights gathered from the vulnerability assessment informs business continuity decision making. Integrating these findings into the BCP enhances organizational preparedness, safeguards the continuity of critical operations, and minimizes recovery time in the event of climate‑related disruptions. Preventive and responsive measures are developed accordingly to ensure the short-term and long-term business continuity. Ultimately, this strengthens the site's overall resilience and supports a robust risk management framework aligned with Signify’s sustainability and operational goals.

As we transition to a low-carbon and more resilient economy, in line with a 1.5°C climate scenario, our key assumption of uncertainty is that consumer and business awareness of, and demand for, low-carbon products will increase. We also expect regulatory requirements for low emissions and high energy efficiency to continue. Additionally, we anticipate that the global power grid will continue its shift toward renewable energy, which will require improvements in energy efficiency and the expansion of grid capacity. This shift will make it more challenging for the lighting industry to generate revenue from less energy efficient conventional technologies, while simultaneously creating opportunities for innovative, low-carbon products.

Sustainable product design and offering is at the core of our strategy and business model. We ensure there is sufficient investment in sustainable innovation to keep advancing the energy efficiency of our portfolio and seizing the material transition opportunity as described in the table above. With a strong and differentiated portfolio of low-carbon and energy efficient products, we are responding to evolving market trends that emerged due to climate change and the energy crisis.

One material physical risk (flooding) was identified for 2025. Accordingly, we assessed the resilience of our sites that were identified with high flooding risk via a vulnerability survey. The results show that our sites have a high level of preparedness and resilience at the individual site level, and thus the net financial exposure is expected to be minimized.

Since there are no material transition risks identified for 2025, no anticipated financial effects from material transition risks as well as the mitigation actions and resources were considered.

Ultimately, our resilience analysis approach in line with material risks and opportunities deepens our understanding about business resilience and allows response plans to be developed in a timely matter. Mitigating climate-related risks in our supply chain and climate change-related physical risks in different geographical locations could potentially interrupt our supply chain and business continuity. Nevertheless, due to our wide-ranging supply network and our dual sourcing strategy, these risks are well monitored and not considered material at present.

Regular surveys are conducted by Signify to identify and rank suppliers based on their vulnerability to climate-related physical and transition risks. As a result, we can identify hotspots accordingly and develop a robust adaptation strategy or business continuity plan (including but not limited to dual sourcing practices) for our operations as well as our supply base. This enables us to respond appropriately and timely, and prevent disruptions to our business operations. We optimize our supply chains for their efficiency and resilience to climate risk.

Our approach

The circular economy seeks to drive economic growth while using resources more efficiently, ensuring progress is no longer tied to increasing resource consumption. Products are designed and built as part of a value network where they will be used, serviced, and upgraded to meet customers' needs. Their lifetimes can be prolonged and where possible they can be reused, refurbished, remanufactured, or recycled, avoiding the creation of waste to landfill.

To support effective implementation, Signify has established a range of circularity‑related policies, with regular updates shared through an internal platform accessible to all relevant stakeholders. In 2025, Signify published its Circular Economy Policy, which outlines an approach built around three key commitments. This policy—together with Signify’s broader suite of circularity policies—is informed by leading international frameworks, including the European Green Deal and its key legislative components such as the EU Circular Economy Action Plan (EU CEAP), the Ecodesign for Sustainable Products Regulation (ESPR), and the Packaging and Packaging Waste Directive (PPWR). The three key principles focus on:

• Use less: Reduce material use in products and packaging, prioritize recycled and renewable materials, and limit the environmental footprint of materials;

• Use longer: Extend product lifespan through better design, serviceability, and upgradability, including offering lighting as a service;

• Use again: Minimize waste through reuse, remanufacturing, and recycling, maintaining zero manufacturing waste to landfill.

Signify describes its circular economy activities in five concentric loops, as seen in the figure below. The five loops represent:

• Service and repair activities aimed at maintaining or restoring the function of products, so they remain usable for longer, thereby extending the technical and economic lifespan;

• Upgrade and or refurbishment of products at the end of their useful life so they can be resold and continue functioning in the market;

• Remanufacturing of obsolete or end-of-life products to a like-new condition, including disassembly and replacement of worn components;

• Parts harvesting to recover valuable parts from products that are no longer in use, so those parts can be sold, reused or repurposed in other products;

• Recycling products at the end of their life to recover raw materials, which can be reprocessed and reintroduced into the economy.

Material impact, risks and opportunities

IRO-1 – Description of the processes to identify and assess material resource use and circular economy-related IRO, E5-1 Policies related to resource use and circular economy

The double materiality assessment identified the following material IRO:

1. Extraction of primary raw materials – actual negative impact – upstream

2. Higher purchasing cost - potential risk – own operations and upstream

3. Circular principles - actual positive impact – own operations, upstream and downstream

4. Circular market growth – potential financial opportunity – own operations

5. Waste generation – actual negative impact – upstream and our own operations

The table below summarizes the relevant policies and associated details, as well as their linkage to the E5 IRO. For further information on the DMA, see section 5.1, Brighter Lives, Better World 2025 progress.

Through the assessment we engaged with various stakeholders. We plan to include affected communities and stakeholders in the assessment as well as in the review of the action plan, policies and targets in 2026 as part of the DMA process. The impacts, risks and opportunities are further described below in the resource inflows, resource outflows and waste management sections.

When conducting our materiality assessment for E5 topics, we looked at our entire value chain and screened the business activities and assets associated with resource use and circular economy. The screening was done based on a mapping of activities, as part of step 1 of the DMA. Read more about our value chain in section 5.1, Brighter Lives, Better World 2025 progress.

For resource inflows, we specifically looked at our main commodities and locations of key suppliers. For resource outflows, we focused on our products and circular principles integrated and leveraged the information from the Environmental Product Declarations (EPDs) generated from our digital Life Cycle Assessment (LCA) tool. For waste management, we focused on our manufacturing sites, distribution centers and suppliers to assess the type of waste and the maturity in terms of processes already in place.

In 2025, we renewed our Circular Economy Action Plan (CEAP), which directly addresses our material impacts, risks, and opportunities across key business functions. The CEAP was developed in close collaboration with key internal stakeholders, including R&D, EHS, and Procurement. Its effectiveness is monitored through a structured internal assessment cycle throughout the year, during which progress and outcomes are reviewed. These reviews may lead to adjustments in policies, targets, or actions when necessary.

As the CEAP was renewed at the end of 2025, various actions have been initiated and early progress has been made. However, as these actions are newly introduced, progress has not yet been evaluated against the 2024 baseline at the time of this annual report.

Details on the of material resources used for our manufacturing activities are provided in the section on inflows. With respect to the resources allocated to the plan, we refer to the CapEx and OpEx reported under the EU Taxonomy objective on the Transition to a Circular Economy. No evidence has been found of severe negative impacts that require provision of remedy for harmed stakeholders. Through its various programs Signify aims to prevent negative impacts in the first place.

Specific metrics and targets are also described in each section, none of which are linked to a regulation requirement nor validated by an external body. We considered the production phase (inflow), use phase (outflow) and the end of functional life of products and materials (waste management) in setting targets, more details on the targets are provided in each topical paragraph.

Inflows

E5-2 – Actions and resources related to resource use and circular economyE5-3 – Targets related to resource use and circular economy

As part of our internal action plan on circular economy, we have committed to accelerating the transition to circular practices related to inflows and resource use by:

• Prioritizing reduction and reuse of products to achieve a resource-efficient circular economy;

• Focusing on materials and transitioning away from the use of primary (virgin) resources;

• Promoting and increasing the use of secondary (recycled) resources;

• Enforcing sustainable sourcing practices and use of renewable resources.

The action plan for inflows is managed by the Procurement team in collaboration with the businesses.

At Signify, we place strong emphasis on managing material inflows responsibly as part of our broader circular economy strategy. By focusing on the resources in our value chain, we aim to reduce our reliance on virgin materials and increase the use of sustainable, high-quality alternatives. Within this context, the new Signify Circle framework establishes clear targets for the 2026–2030 period related to material inflows. Specifically, we have set measurable objectives for the percentage of recycled content used in Signify Circle products, ensuring a steady increase in the use of secondary materials and reducing the overall impact of raw material consumption. In addition, the targets address other key areas such as the development and promotion of circular business models, including revenue generated from Lighting-as-a-Service (LaaS).

In addition, we are committed to full compliance with our Signify Regulated Substance List (RSL) - with no waivers allowed, having more sustainable packaging, and reinforcing our dedication to safe and responsible material sourcing. The RSL combines legal requirements with Signify’s own environmental and safety standards.

To track the progress and effectiveness of our actions and policy, in 2025 we continued to focus on collecting and aggregating accurate data from our suppliers. We are collaborating with our key vendors per material group to declare the content of primary, secondary and biological (where relevant) substances in their materials.

Our key commodities include metals, plastics, glass, e-components, cables, finished goods and packaging. These represent over 80% of our total suppliers. We focused our sustainability efforts on metals (specifically aluminum and steel), plastics, glass and packaging as these material groups showed the greatest potential in the approach to minimizing the use of virgin materials and increasing the share of secondary materials. These prioritized suppliers are located across the different regions: Asia Pacific, Europe, and the Americas.

E5-4 - Resource inflows

In 2025, 12% (2024: 12%) of total weight of materials were from biological materials and 20% (2024: 19%) were from secondary materials, See section 5.5, Reporting principles for more details and definitions. 79% (2024:73%) of Signify’s total biological material weight is coming from sustainably sourced materials. This applies to biological products certified by credible schemes that ensure responsible forest management and sustainable supply chains. The relevant material groups are packaging wood, packaging paper/cardboard, and (bio-)plastics. Main accepted sustainability certifications include FSC, SFI, PEFC, Rainforest Alliance, and ISCC Plus.

In Europe, Signify has taken steps to increase the use of recycled plastics and bioplastics in its products. During 2025, a total of 238.5 metric tonnes of recycled plastics and bioplastics were added to Signify’s material inflows in the region. Regarding reduction and reuse, we are continuously evaluating and improving our designs. In 2025, we successfully designed our GentleSpace Gen 4 to be 20% smaller and lighter than its predecessor, featuring a housing made with 85% post consumer recycled aluminum. Next to that, we have initiated a major re-use project in collaboration with a retail customer on the re-use of luminaires. For this project, luminaires from various shop locations are cleaned and inspected within our factors and consequently sent to the customer's new opening locations.

In 2025, Signify implemented a refined methodology for weight calculations, resulting in more granular and accurate data. This methodological enhancement improved the reliability of the reported figures and explains the observed decrease in total reported weight compared to the 2024 annual report, which reflects improved measurement and calculation rather than operational changes. We have also retroactively applied this methodology to the 2024 data, yielding more representative figures than those presented in the Annual Report 2024.

With the creation of the Signify Circle framework and the updated Circular Economy Policy in 2025, we have set the roadmap for the next 5 years where we expect to capture market opportunities and further embed circularity into the customer value proposition. To do so, Signify circularity principles have been integrated into the innovation and product development processes. This allows us to explore sustainable and recycled alternatives and review our sourcing practices to reduce virgin material use and increase recycled and non‑virgin materials. We will advance this transformation by delivering circular-economy training to our procurement employees and to key suppliers. The roll-out of this program is planned throughout 2026.

The sustainable performance of a lighting product and system depends heavily on its energy efficiency and durability. Any transition to more sustainable materials must therefore ensure that these essential performance attributes are fully maintained. When selecting sustainable materials, we apply the following guidelines:

• Minimize the weight and volume of materials;

• Applied materials should be recyclable where possible;

• The design of our product should allow easy separation at end-of-life and facilitate recycling;

• When changing over to a sustainable material, the environmental footprint of the alternative material should be equal or better compared to the regular material, underpinned with LCA data;

• To support circularity, materials with Post- Consumer-Recycled (PCR) content are prioritized;

• In plastics, mechanically recycled PCR solutions are preferred over chemically recycled PCR;

• Bio-based or bio-circular plastics are a second-best solution, after PCR. Natural sources for these materials should be disclosed and certified (ISCC PLUS);

• In metals, as far as technology allows, use secondary sources with a high scrap percentage;

• In packaging, follow the respective packaging requirements which provides guidelines on prioritizing PCR paper and cardboard as well as plastic.

Outflows

E5-2 – Actions and resources related to resource use and circular economyE5-3 – Targets related to resource use and circular economy E5-5 - Resource outflows

As part of our internal action plan on circular economy, we have committed to accelerating the transition to circular practices regarding outflows by:

• Designing products with a longer lifetime, improved durability, and increased serviceability and repairability to extend their use phase;

• Developing take-back, remanufacturing, and refurbishment programs to keep products and components in use;

• Providing clear disassembly and recycling instructions to facilitate responsible product recovery.

The Research & Development team leads on this objective and invests annually in innovation and developing new products with circular attributes. See Sustainable Innovation in section 5.1, Brighter Lives, Better World 2025 progress.

In 2025, we renewed our Sustainable Design Procedure which assesses new innovations based on criteria related to the circularity attributes (serviceable luminaires, circular components, circular services), the weight and materials used, the packaging (renewable material, decreased weight) and the elimination of harmful substances (ROHS, REACH, mercury).

In 2020, we adopted an internal framework to track our progress towards the Brighter Lives, Better World 2025 program target for Circular revenues. The framework defined circular attributes to support the increase of circular design in our different products. As new products are created, the circular attributes are considered and implemented.

By the end of 2025, Circular revenues reached 37%, up from 35% in 2024. This exceeds our 2025 target of 32%, which was originally set based on a 2019 baseline of 16%. This strong performance was supported by the launch and enhancement of product lines designed to meet circular economy attributes.

In our efforts to transition to a circular economy, we continued to extend our lighting for circularity portfolio in 2025. Via well-established sustainable design rules, Signify continuously lowers the weight of new product designs, resulting in less material use and costs for our product portfolio. The sustainable design rules are also optimized for circularity, resulting in products that can be reused, serviced/repaired, upgraded/refurbished, remanufactured, or recycled. For more information about the performance and benefits of our lighting for circularity solutions, please visit our website.

Building on this approach, the Signify Circle framework sets clear 2026–2030 targets for material outflows, focusing on enhancing product durability, repairability, and recyclability to extend product lifetimes and reduce waste. We aim to maximize material recovery through reuse, remanufacturing, and refurbishment, and to expand circular business models - such as Lighting-as-a-Service - to keep products and materials in use longer.

Our circular innovations cover four categories which are described in Sustainable Innovation, section 5.1, Brighter Lives, Better World 2025 progress. Here are two examples of products that meet the criteria:

Retrofit project with Acerta

Instead of removing and discarding the existing lighting system, the Acerta office, in Belgium choose a retrofit approach. This involved retaining the current fixtures and renewing their internal components, replacing outdated fluorescent lights with modern LED modules. Beyond upgrading to more energy-efficient technology, the new installation features connected, smart-controlled LED luminaires operating via a wireless protocol. This enables energy savings, supports flexible reconfiguration, and allows for easier future adaptations - reducing unnecessary material waste and avoiding disruptive renovation work.

Circular Upgrade on the A470 in Wales

This lighting upgrade project exemplifies circular economy best practices by extending the life of the existing Luma Gen 1 luminaires through modular component replacement. The upgrade kit replaces only the LED boards, driver components, and connectivity modules, while preserving the original columns and housings - significantly reducing material waste and avoiding the need for new manufacturing. The new 74W, 4000K system delivers around 42% energy savings and reduces CO₂ emissions by about two tonnes per year. In addition, its serviceable design and digital tagging support future maintenance and upgrades, further extending the system's long term value.

We are committed to delivering serviceable, intelligent lighting solutions that combine high efficiency with long‑term sustainability. Our products come equipped with the Signify Service Tag app, which provides access to information on spare parts. This QR-code-based identification system enables smart product maintenance and diagnostics, making it easier to manage installations, maintenance, and spare parts.

Through Service Tag, customers can efficiently replace failed drivers, support repairs, and extend the product life of their luminaire. In addition to using sustainable materials and technologies, we are constantly innovating to improve the characteristics of our products.

The repairability of our products is identified through our products’ serviceability. The serviceability refers to the ability to prolong the technical and economic lifetime of the product, after it has been put into service. More than half of our reported Circular revenues are aligned with the serviceability criteria.

The minimum criteria for product serviceability are the following:

• Identifiable: easy access to product information, clear indication which components are serviceable (e.g., Service Tag);

• Accessible: warranty or service agreement;

• Removable: listed spare parts must be easily accessible and replaceable.

At Signify, we have made significant improvements in enhancing the durability and lifetime of our lighting products through innovative technologies and sustainable practices. By integrating advanced materials and smart design, we have developed products that not only last longer but also maintain high performance over time. Our commitment to quality and longevity ensures that our products provide reliable and efficient lighting solutions for various applications. These innovations reduce the need for frequent replacements, thereby minimizing waste. 

The information regarding the durability of our products represents the service lifetime. In 2025, we have refined our methodology enhancing the reliability of represented figures. This refinement has resulted in a revision of the 2024 figures compared to the data presented in the Annual Report 2024. Similar to the update for Inflows data, we consider these figures to be more representative.

It should be noted that the benchmark used for comparison (LightingEurope) reflects European market practices only, whereas our disclosed performance data covers products sold globally. In several non-European markets, typical lifetime specifications and market practices are significantly lower, which may affect overall averages when assessed on a worldwide basis. Our portfolio averages 85,561 hours, with many products reaching the 100,000 hours (we follow the LightingEurope guideline not to claim higher). Signify's indoor portfolio also performs above the industry norm, averaging 59,000 hours compared to the 50,000 hour benchmark.

We are committed to ensuring most of the materials in our products are recyclable through our design policies. Some of our products' key commodities have a high level of recyclability such as glass, metals and paper.For packaging, our policy requires the use of paper containing at least 80% recycled content and that is fully recyclable.

When virgin materials are used, they must be responsibly sourced from certified sustainable suppliers. In 2025, for product packaging recyclable content, we have chosen the main commodities based on volume, with paper and cardboard accounting for 89%, plastic accounting for 2% and wood accounting for 6%.

Waste management

E5-2 – Actions and resources related to resource use and circular economy
E5-3 – Targets related to resource use and circular economy
E5-5 - Resource outflows

We are dedicated to responsible waste management practices that minimize our environmental impact. By implementing comprehensive recycling programs and reducing waste generation across our operations, we ensure that materials are reused and repurposed effectively. We have a commitment of zero manufacturing waste to landfill. As part of our internal Circular Economy Action Plan we are committed to accelerate the transition to circular practices regarding waste management by:

• Reducing  waste streams, including hazardous waste, caused by manufacturing sites and preventing these streams ending up in landfills;

• Enabling more sustainable waste treatment methods like reuse and high-quality recycling;

• Collecting more and accurate data from manufacturing sites and warehouses, including data on key sources of waste generation, and;

• Engaging with suppliers in risk countries on responsible waste management practices.

Within our Circular Economy Action Plan, our objective is to improve our waste management practices across our value chain and to reduce waste. To achieve this objective, the EHS team, local site leaders and Innovation teams are leading key initiatives and programs aimed at improving our waste management practices. Our target is to achieve zero waste to landfill from our manufacturing sites. This goal applies to all levels of the waste hierarchy and is measured in kilograms. It is an annual, absolute target, meaning there is no baseline year. In 2025, as part of its Low Nature Impact program, Signify introduced a new target focused on hazardous waste. The objective is to reduce hazardous waste at all Signify manufacturing sites to 20 kg per 1,000 units produced or less by 2030.

We have focused on driving continuous improvements and optimizing processes across our sites. Signify continues to meet its commitment to send zero waste to landfill for all its manufacturing sites. We enhanced our waste segregation practices, provided waste awareness training, and shared best practices across regions.

Signify registered a total of 36,889 metric tonnes of waste in 2025. In comparison to our inflows, our total outflow waste is minimal. Our recycling programs address waste arising from manufacturing activities, such as glass or canteen waste, as well as from suppliers, such as packaging materials. 90% of total waste was recycled in 2025 (2024: 90%) and, like in 2024, we continued to recycle 100% of our metal and glass waste. We generated 1,883 metric tonnes of hazardous waste, of which 43% was recycled (2024: 1,666 metric tonnes, 33% recyled). The waste reporting scope includes both manufacturing sites and warehouses. In 2024, the reporting scope covered only factories, and therefore no primary data was collected from warehouses. Therefore, the warehouse data from 2025 has been used to make estimations for the amount of waste in 2024.

We fully comply with the European Waste of Electrical and Electronic Equipment (WEEE) directive. To reduce the impact of our products ending up in landfills, we partner with a variety of recycling programs and companies throughout Europe and North America. Signify has developed solutions to reduce or eliminate waste throughout the entire product life cycle, with a prime example being the 3D-printed Signify myCreation products. All manufacturers of printed parts are using at least 65% recycled or bio-circular plastics, with the entire bio-circular supply chain ISCC Plus certified. We repurpose waste materials, such as recycled water cooler jugs for the Water Blue collection and old street lighting for the Urban Grey collection. Signify myCreation products are produced locally and on demand to minimize unsold stock. Any rejected parts are recycled in-house for reuse. The 3D-printed products are designed for easy disassembly, using no glue, no paint, no permanent fasteners, and minimal screws. Printed parts can be recycled through our EU Take Back program to create new products.

The EU Taxonomy reporting framework

The European Commission created a catalog of economic activities to assess whether they significantly contribute to a sustainable economy, a framework known as the EU Taxonomy. The framework EU Taxonomy Regulation (EU) 2020/852 is supplemented by the Climate Delegated Act (EU) 2021/2139, the Environmental Delegated Act (EU) 2023/2486, the Disclosures Delegated Act (EU) 2021/2178 and all the applicable amendments up to, and including December 31, 2025, such as the (EU) 2026/73. Signify has elected to report the simplified reporting tables under in line with the Omnibus package.

For the financial year 2025, Signify reports its eligibility and alignment within six environmental objectives: Climate Change Mitigation, Climate Change Adaptation, Water and Marine Resources, Transition to a Circular Economy, Pollution Prevention and Control, and Biodiversity and Ecosystems. Given the nature of our business, our main contributions are focused on Climate Change Mitigation and the Transition to a Circular Economy.

Signify's economic activities

The definitions of the EU Taxonomy are broadly formulated which leaves room for companies to interpret it for their business activities. We applied judgment, interpretations and assumptions based on currently available information. Future guidance could result in more accurate definitions and other reporting obligations, which could impact our future EU Taxonomy reporting. The analysis of Signify’s economic activities in the context of the EU Taxonomy has revealed that the following activities contribute to the environmental objectives:

• CCM 3.5 Manufacture of energy efficiency equipment for buildings. We allocate manufacturing of LED and connected technologies for indoor spaces to this economic activity.

• CCM 3.6 Manufacture other low-carbon technologies that result in substantial GHG emission reductions in other sectors of the economy. We allocate manufacturing of LED and connected technologies for outdoor spaces to this economic activity.

• CCM 6.5 Transport by motorbikes, passenger cars and light commercial vehicles. We allocate here the investment (CapEx) made in company light vehicle leasing.

• CCM 7.2 Renovation of existing buildings. We allocate here the investment (CapEx) done in renovation of existing factories and offices.

• CCM 7.3 Installation, maintenance and repair of energy efficiency equipment. We allocate installation, maintenance and repair activities of lighting products such as lamps and luminaires, without controls, for indoor spaces to this economic activity.

• CCM 7.4 Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings). We allocate in this activity the investments (CapEx) related to charging stations for electric vehicles.

• CCM 7.5 Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings. We allocate installation, maintenance and repair activities of lighting systems, such as luminaires with control modules, for indoor spaces to this economic activity. The system might also include sensors, triggers, software, on-site or cloud connectivity.

• CCM 7.7 Acquisition, ownership or leasing of buildings.We allocate in this activity the investments (CapEx) done related to aquisition and leasing of real estate assets.

• CE 1.2 Manufacture of electrical and electronic equipment. We allocate here manufacturing of electrical and electronic equipment and their related activities, mostly related to lighting, including LED technology and conventional lighting.

• CE 3.2 Renovation of existing buildings. We allocate here the investment (CapEx) done in renovation of existing factories and offices.

• CE 5.1 Repair, refurbishment and remanufacturing. We allocate services offered to customers to repair, refurbishor remanufacture lighting products and related items.

• CE 5.2 Sale of spare parts. We allocate manufacturing of components aimed at replacing an existing part of a final product.

• CE 5.5 Product-as-a-service and other circular use and result-oriented service models. We allocate products and related services that are marketed under a Light as a Service and other pay-per-use business models.

The analysis has not revealed any activities that contribute significantly to the four other environmental objectives, namely, Climate Change Adaptation, Water and Marine Resources, Pollution Prevention and Control and Biodiversity and Ecosystems. Our revenues are connected to one main economic activity (as per NACE codes), specifically C27.40.

Signify's approach

The EU Taxonomy identifies Turnover, Capital Expenditure (CapEx), and Operating Expenditure (OpEx) as essential performance indicators that must be reported. The financial data relevant to Signify's EU Taxonomy reporting is derived from the IFRS consolidated financial statements for the fiscal year 2025.

In 2025, we continued the comprehensive effort started in 2024 to operationalize the regulation for Signify. This endeavor resulted in a detailed list of product attributes for turnover and project attributes for CapEx and OpEx, ensuring compliance with all requirements. Regarding turnover, we conducted a review of our product portfolio to identify items meeting the eligibility and alignment criteria. We translated regulatory requirements into practical product-related attributes and subsequently performed a tagging exercise to identify these attributes' values within our product portfolio. This process has streamlined our data collection. The denominator includes all sales for the year, while the numerator comprises the proportion of products deemed eligible or aligned based on the identified attribute values. As a conservative measure, products with uncollected attributes are considered non-eligible. This approach prioritizes data accuracy over completeness for eligibility and alignment; in that sense we aim to refine this process annually to maximize data completion.

Concerning CapEx and OpEx, similar to the turnover process, we adapt the requirements into project attributes and tagged material projects to determine compliance. For projects below the defined materiality threshold, we continued to use turnover values as allocation key. Our CapEx/OpEx calculations include total CapEx/OpEx in the denominator, while the numerator comprises the proportion of investments identified as eligible/aligned through the tagging exercise, plus the proportion derived using turnover averages of eligibility and alignment as allocation key for non-material projects.

To avoid double-counting eligibility towards the Transition to a Circular Economy and Climate Change Mitigation objectives, we have allocated Turnover, CapEx, and OpEx contributing to both objectives solely to Climate Change Mitigation. This approach ensures that no economic values are counted twice.

In 2025, we continued the digitalization journey initiated in 2024. Throughout the year, we successfully automated most of the data‑collection processes related to products and R&D projects. In addition, we developed a digital dashboard capable of displaying key performance indicators for Turnover, Capex, and OpEx. We will continue to expand these digital capabilities in the coming years to further enhance data availability, accuracy, and completeness.

Turnover

The eligible turnover is defined as the part of the net turnover derived from products or services, including intangibles, associated with Taxonomy-eligible economic activities. The following list sets out Signify’s Taxonomy eligible turnover, contributing to the following environmental objectives:

Climate Change Mitigation:

• Turnover of the manufacturing of LED and connected technologies, for indoor spaces (CCM 3.5) and outdoor spaces (CCM 3.6);

• Turnover of the installation, maintenance, and repair of energy-efficient lighting, without controls (CCM 7.3) and with control modules (CCM 7.5).

Transition to a Circular Economy

• Turnover of the manufacturing of electrical and electronic products (CE 1.2), light as a service (CE 5.5), components (CE 5.2), and related activities (CE 5.1).

EUR 923.1 million met the screening criteria used to measure the substantial contribution to the environmental objectives. This includes the sales from products which meet the following criteria:

Climate Change Mitigation
CCM 3.5 g) Light sources rated in the highest two populated classes of energy efficiency in accordance with Regulation (EU) 2017/1369.

Signify utilizes the European Product Registry for Energy Labelling (EPREL) as a foundational resource to identify the two highest populated energy efficiency classes, as mandated.

For product groups that are either incomplete or questionable within EPREL, we analyzed the distribution of energy labels across our portfolio. In cases where an EPREL label is unavailable—such as for non- European products and luminaires—we have developed an equivalent EPREL label based on parameters including power, luminous flux, directionally, and mains characteristics. As a conclusion, Signify defines the highest two populated classes as follows:

• A & B classes - or equivalent - for lamps and white light sources;

• C & D classes - or equivalent - (on luminaire level) for professional indoor luminaires;

• C & D classes - or equivalent - for color controllable lamps.

CCM 3.5 j) Presence and daylight controls for lighting systems

We define presence and daylight controls as LED indoor standalone sensors that can connect to a lighting system to provide input from presence and daylight, enabling dimming capabilities. Sensors integrated into luminaires are excluded from this category.

CCM 3.5 m) Energy-efficient building automation and control systems for residential and non-residential buildings.

In this category, we consider LED indoor lighting systems that are connectable. This definition encompasses the following products:

• LED Indoor Connectable Full Lighting Systems: Signify offers integrated and packaged lighting systems to customers. These comprehensive systems include hardware components such as luminaires, light sources, sensors, and other necessary parts, as well as software primarily designed for control systems;

• LED Indoor Connectable Devices: this includes connectable lamps, luminaires and drivers, intended for professional markets. These connectable devices are designed for integration with professional building control systems.

CCM 3.6) Manufacture other low carbon technologies that result in substantial GHG emission reductions in other sectors of the economy.

The revenues that are attributable to the following subset of product families from the eligible revenues, with a third party verified Environmental Product Declaration (EPD) issued complying with ISO 14040 Life Cycle Assessment standard that covers the framework ISO 14044.

CCM 7.3 d) Installation, maintenance and repair of energy efficiency equipment.

The activity consists of installation and replacement of energy efficient light sources rated in the highest two populated classes of energy efficiency – Class A and B of EPREL – or equivalent.

CCM 7.5 Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings.

As in the regulation there is no substantial contribution criteria for CCM 7.5, all Services that are eligible will automatically be considered as compliant with the substantial contribution criteria.

Transition to a Circular Economy activities
Signify has been providing circular products and solutions for many years. In 2025, we completed our assessment of the substantial contribution criteria for the EU Taxonomy circular economy activities relevant to Signify (CE 1.2, CE 5.1, CE 5.2, and CE 5.5). The evaluation showed that, despite significant progress, we do not yet fully meet some of the requirements. Particularly those related to the new or more stringent chemical criteria introduced by the EU Taxonomy, which go beyond current lighting-specific product regulations. We are actively working to bridge these gaps through targeted improvements in materials, design, and compliance processes, and remain committed to further strengthening our contribution to circular economy objective.

In 2025, out of the EUR 5,764.9 million total Turnover, EUR 4,649.9 million are Taxonomy-eligible (A.2) and EUR 923.1 million Taxonomy-aligned (A.1).

CapEx

The following list sets out Signify’s Taxonomy eligible Capital Expenditures, contributing to the environmental objectives:
a) Related to assets or processes that are associated with Taxonomy-eligible economic activities:

• Climate Change Mitigation: CapEx related to the manufacturing of LED and connected technologies, for Indoor spaces (CCM 3.5) and outdoor spaces (CCM 3.6), and the annual turnover of the installation, maintenance and repair of energy-efficient lighting, without controls (CCM 7.3) and with control modules (CCM 7.5);

• Transition to a Circular Economy: CapEx related to the manufacturing of electrical and electronic products (CE 1.2 and CE 5.5), components (CE 5.2), and related activities (CE 5.1).

b) Part of a plan to expand Taxonomy-eligible economic activities or to allow Taxonomy eligible economic activities to become Taxonomy-aligned; among others, new production lines and extension of production capacity of LED, connected technologies and product refurbishment.
c) Related to the purchase of output from Taxonomy-eligible economic activities and individual measures. In this category we are considering the following economic activities:

• CCM 6.5 Transport by motorbikes, passenger cars and light commercial vehicles;

• CCM 7.2 / CE 3.2 Renovation of existing buildings;

• CCM 7.3 Installation, maintenance and repair of energy efficiency equipment;

• CCM 7.4 Installation, maintenance and repair of charging stations for electric vehicles in buildings;

• CCM 7.7 Acquisition, ownership or leasing of buildings.

In 2025, out of the EUR 230.5 million total CapEx, EUR 211.5 million are Taxonomy-eligible (A.2) and EUR 101.4 million Taxonomy-aligned (A.1).

OpEx

The following list sets out Signify’s Taxonomy eligible operational expenditures, contributing to the environmental objectives:
a) Related to assets or processes that are associated with Taxonomy-eligible economic activities; we are including under this category:

• Climate Change Mitigation: OpEx related the manufacturing of LED and connected technologies, for Indoor spaces (CCM 3.5) and outdoor spaces (CCM 3.6), and the annual revenue of the installation, maintenance and repair of energy-efficient lighting, without controls (7.3) and with control modules (7.5);

• Transition to a Circular Economy: OpEx related the manufacturing of electrical and electronic products (1.2 and 5.5), components (5.2), and related activities (5.1).

b) Part of a plan to expand Taxonomy-eligible economic activities or to allow Taxonomy eligible economic activities to become Taxonomy-aligned; we are considering here R&D projects in new lighting technologies, repairability options, etc.

In 2025, out of the EUR 334.8 million total OpEx, EUR 177.8 million are Taxonomy-eligible (A.2) and EUR 147.7 million Taxonomy-aligned (A.1).

Do No Significant Harm criteria

The EU Taxonomy Regulation establishes that an economic activity must Do No Significant Harm (DNSH) to any of the other environmental objectives. To conduct the different assessments, we have gathered information about our measurements, processes and policies for each of the DNSH criteria covering the economic activities.

We have adopted the same conservative approach as with the substantial contribution in turnover. In cases where no data is available to prove compliance with DNSH or MSS, we have chosen to classify it as not meeting the criteria.

We performed a climate risk and vulnerability assessment to identify potential physical and transition risks in our operations and value chain (upstream and downstream). Regarding the physical risks, we have analyzed all the climate-related hazards listed in appendix A from Annex 1 of the EU Taxonomy and focused on assessing physical risks relevant to Signify’s manufacturing sites, warehouses / distribution centers, offices and key suppliers namely, flooding, drought, heatwave, wildfire, storm, and extreme precipitation for the short-term (2030) and two long-term (2080) scenarios. The two long-term scenarios cover a below 2°C or SSP1-2.6 scenario – taking the sustainable lower emissions pathway, and an above 4°C or SSP5-8.5 scenario – fossil fueled development path. In the 2025 assessment, one risk - flooding – is considered material. In response, we develop risk adaptation and mitigation strategies that enhance our operational resilience, risk management, and financial planning where applicable. For more details on our climate risk and vulnerability assessment, refer to our ESRS E1 – Climate Change section of this report.

For all our operations, Signify follows the local environmental regulation and has developed local studies about water impact when relevant based on the sites' operation and location. We operate in accordance with the international standards ISO 14001 and ISO 45001, as stipulated in our EHS Policy.

For water pollution, in 2025, we revised our assessment approach. Whereas in 2024 we relied on the external Nature Positive assessment, this year we adopted an approach based on the Science Based Targets for Nature methodology, complemented with updated internal criteria. The results confirm we have four sites at risk, the impact identified is limited and we have mitigating actions in place.

For water scarcity, we used the Swiss Re Water Security Index, which applies the World Resources Institute Baseline Water Stress Indicator to assess the level of exposure based on each site’s location. Results show that for the 13 manufacturing sites located in areas at risk of water scarcity, water consumption has been maintained or reduced in 7 sites, and increased at 6 sites. Stable and reduced consumption reflects efficiency measures, while increases were driven by higher production volumes or temporary incidents that have since been resolved. In all cases, changes in water use are justified and managed appropriately.

Regarding the protection of water and marine resources, we expanded our threshold distance to 10 km (previously 5 km) to more effectively identify sites located near coastal waters. The results showed that we have nine sites within range, none of them have any relevant potential impact.

Signify has assessed its practices related to the Do No Significant Harm criteria for transitioning to a circular economy, focusing on its internal programs, policies, and supply chain initiatives. Circular economy is a central focus in the company's sustainability program. This assessment highlights several key initiatives. Signify's circle framework aims to develop lighting products that are repairable, reusable, and recyclable, while ensuring high durability to minimize waste. Since 2020, the company has achieved a zero-waste-to-landfill goal in its manufacturing processes. Our Sustainability Policy further reinforces this commitment by promoting responsible consumption and production aligned with the Sustainable Development Goal 12.

In 2025, we published the Circular Economy Policy, which outlines Signify’s commitments and core principles for circularity: use less, use longer, use again. Building on this foundation, we also developed a new circular framework for products that will guide the company’s efforts to expand its circularity ambitions over the next five years.

We also have a renovated Circular Economy Action Plan 2025-2030, that sets out the main actions, initiatives and targets towards the circular economy.

Our Sustainable design procedure guides research and development efforts to enhance product sustainability through durability, recyclability, and ease of disassembly. Signify has integrated circular economy principles into various product categories, focusing on preserving value and reducing waste through serviceable luminaires and intelligent asset management. Additionally, Signify participates in collection and recycling programs for conventional and LED lighting products and expands its remanufacturing services for used luminaires. The company has also increased the use of recycled and bio-circular materials in its products, particularly in 3D printing, where a significant percentage of materials used are sustainable. Moreover, the responsible packaging initiative has led to a substantial reduction in plastic usage.

Through our commitments, procedures, and current activities, Signify mitigates the risk of harming the objective of transitioning to a circular economy. For more information about our actions towards this topic, refer to subsection Circular Economy.

In line with the DNSH criteria, Signify has a comprehensive policy for pollution prevention and control. The company meticulously manages the use and disposal of all raw materials in its operations. Signify mandates that all suppliers disclose all substances in their components and adhere to the stipulations outlined in the Regulated Substance List (RSL).

The RSL is a crucial document that encompasses product substance requirements derived from various legal sources, including federal, state, county, and municipal laws, regulations, ordinances, and codes, as well as Signify's own requirements. This list is an integral part of Signify's Sustainability policy and is incorporated into the company's general purchasing conditions. All suppliers and brand licensees are obligated to ensure their products comply with this list. Signify conducts an annual assessment of substances used in manufacturing sites to ensure compliance with DNSH requirements. In 2025, we excluded sales from products manufactured in sites where either insufficient data was available or where the assessment revealed the use of substances not permitted under the requirements.

Regarding the protection of biodiversity and ecosystems, all our sites follow at minimum the local environmental regulations and all sites located within the EU comply with mandatory Environmental Impact Assessments (EIAs) requirements.

In 2025, we revised our assessment and applied an approach based on Science Based Targets for Nature. This assessment focused on key environmental pressure categories relevant to our operations, including freshwater and marine ecosystem use, soil and water pollution, non-GHG air pollutants and potential disturbance. The results showed we have two sites with a potential high biodiversity risk. At one site an on-site assessment was conducted in 2025, impacts were identified and mitigating actions are in place. For the other site, an assessment is planned for 2026.

Minimum Social Safeguards

The Minimum Safeguards (MSS) provision of the EU Taxonomy Regulation requires companies involved in environmentally sustainable economic activities must also meet criteria for responsible business conduct already outlined in the OECD Guidelines for Multinational Enterprises, the United Nations Guiding Principles on Business and Human Rights, the Fundamental Conventions of the International Labour Organization (ILO) and the International Bill of Human Rights.

In 2024, Signify developed a new Due Diligence process based on our Human Rights Policy and in alignment with the Minimum Safeguards requirements. This process is integral to the company's commitment to responsible business practices, aligning with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Human Rights.

The due diligence framework encompasses both human rights and environmental impacts, ensuring regulatory compliance and ethical standards. Signify conducts annual risk assessments to identify and mitigate potential adverse impacts across its value chain, evaluating operations and suppliers on environmental management and compliance with international standards. Regular audits are performed to ensure adherence, with corrective action plans implemented for any non-compliance.

Human rights considerations are embedded in Signify's policies and practices, guided by the International Bill of Human Rights and the UN Global Compact. The Human Rights Committee oversees risk assessments and mitigation plans, prioritizing issues based on severity and likelihood. A complaints mechanism allows stakeholders to raise concerns, with issues tracked and reviewed by the Integrity Committee.

In addition, we assessed the coverage of our codes and standards to the principles and policies under the MSS of the EU Taxonomy. We scanned all the relevant internal policies and procedures and did a matching exercise with the different frameworks required for the Minimum Safeguards. The assessment confirmed that we meet the requirements.

Complementary information

The detailed results following the format of the Taxonomy Regulation can be found in the following pages. Signify understands and appreciates the fact that the EU Taxonomy framework is in constant evolution, and that the company’s reporting obligations will continue to evolve over the next years. Signify is committed to increasing its taxonomy eligibility and taxonomy-alignment percentages independently of regulatory developments.

Our approach

At Signify, our workforce is at the heart of our success in driving innovation and delivering sustainable solutions in the global lighting industry. As the world embraces more sustainable ways of working, we are committed to shaping our operations in a way that not only responds to this shift but also champions the well‑being, development, and inclusion of all our people. Guided by international principles, including human rights and labor standards, our strategic focus is to foster a safe, fair, and supportive environment for all our employees.

This section outlines our comprehensive approach to managing the social aspects of our operations. It begins with general disclosures, followed by information regarding our risk and impact assessment, and details our commitments to safety at work, living wages – which differs from CSRD’s “adequate wage” –, talent development, diversity, equity, and inclusion.

Material impacts, risk and opportunities

S1 SBM3 - Material IRO and their interaction with strategy and business model
S1-1 - Policies related to own workforce
S1-2 - Processes for engaging with workers and representatives about impacts
S1-5 - Targets related to managing material IRO

The double materiality assessment identified the following material IROs:

1. Health and safety; potential risk of incidents - potential negative impact – own operations

2. Talent and development; talent and skills shortages - potential risk – own operations

3. DE&I; inclusive workplace practices - actual positive impact – own operations

The table below summarizes the relevant policies and associated details, as well as their linkage to the S1 IROs. For further information on the DMA, see section 5.1, Brighter Lives, Better World 2025 progress.

When defining our material impact, we specify the type of employees potentially affected, which also includes non-employees. As part of this process, we engaged with various stakeholders, including employees through our Employee Team survey. The feedback gathered helps guide our efforts in setting targets and developing employee engagement action plans where relevant. Our Chief Human Resources Officer has operational responsibility over these engagements.

All material topics have targets, except for Talent & Development which is a material financial risk and therefore does not have a target and applies to our entire workforce. Our internal and external metrics have been set in accordance with our targets to ensure the effectiveness of our actions. While we value employee representation and dialogue, it should be noted that employees are not currently represented at the Supervisory Board or the Board of Management. However, the company provides an alternative platform for cross-border worker engagement through its European Works Council. This council plays a key role in facilitating dialogue and ensuring representation across European markets.

Human rights management approach

S1-3 - Process to remediate negative impacts and channels to raise concerns
S1-4 - Taking action on material impacts, and approaches to mitigating risks and pursuing opportunities
S1-17 - Incidents, complaints and severe human rights impacts

Respecting human rights is a central foundation of the way we work. Our commitment to respecting and promoting human rights extends beyond our own operations, across our wider sphere of influence, including our supply chain. To that end, we integrate human rights considerations into our policies, processes, and practices.

Our Human Rights Policy – addressing issues such as human trafficking, forced labor or compulsory labor and child labor – is based on the International Bill of Human Rights, the United Nations Global Compact Ten Principles, and the International Labor Organization’s declaration on Fundamental Principles and Rights at work. Our process is aligned with the OECD Guidelines for Multinational Enterprises and the UN Guiding principles on Business and Human Rights. Signify carries out continuous research and stakeholder engagement activities to identify the most salient ethical and social principles that govern our relationship with stakeholders worldwide.  

Through our due diligence process, we conduct annual risk assessments to identify and mitigate potential adverse impacts across our value chain. This includes evaluating our own operations and our suppliers on environmental management systems and compliance with international standards which includes provisions on fair labor practices, environmental protection, and anti-corruption measures. Regular audits and assessments are conducted to ensure compliance, and any non-compliance is addressed through corrective action plans. We monitor the implementation of those plans bi-annually to ensure their effectiveness and adjust if proven necessary. Our Ethics Line is available to all our stakeholders for complaints or concerns to be raised. You can find more details about this in section 5.4, Governance.   

The risk assessment and engagement with supply chain workers is described in subsection 5.3.2, S2, Workers in the value chain. 

As part of our annual due diligence process, we conduct a comprehensive human rights risk assessment for our own workforce, including both direct and indirect employees globally. This process is aligned with the EU Corporate Sustainability Due Diligence Directive (CSDDD) and meets the EU Taxonomy Minimum Social Safeguards (MSS). 

We identify salient human rights risks by gathering insights from various internal and external sources. Each risk is evaluated based on its severity and likelihood, allowing us to prioritize mitigation actions effectively. The identified risks and proposed mitigation measures are reviewed and approved annually by our Human Rights Committee, which includes senior leaders from across the organization. 

Compliance with our Human Rights Policy is embedded in our Integrity code, supported by mandatory training for all employees. This training is refreshed regularly and included in the onboarding process for new hires. 

We monitor the effectiveness of our approach through tools such as the Employee Team Survey, which includes questions on ethical behavior and safety compliance as well as monitoring the implementation of mitigation actions adopted. These insights help us assess employee awareness and trust in our reporting mechanisms. Details on anti-retaliation protections are provided in section G1, Governance. 

To identify potential human rights risks, we analyze multiple sources, including: 

• Responses to our compliance questionnaire

• Cases reported via the Ethics Line 

• Annual living wage assessments 

• Health & Safety Total Recordable Case Rate results 

• Interviews with internal and external stakeholders 

• Internal audit findings 

• Industry trend desk research 

Since 2017, we have applied a country risk-based approach to our manufacturing sites, and we are using the RBA country classification to identify high-risk regions. Sites in these regions are required to complete periodic self-assessments which are based on the RBA questionnaire. In 2025, we expanded this scope to include warehouses.

Mitigation actions are prioritized based on the severity of identified risks and implemented and monitored by the due diligence working group. The Human Rights Committee is updated annually on the status of mitigation actions.

In 2025, our country risk assessment identified 18 manufacturing sites and 3 warehouses in high-risk countries: Brazil, China, Egypt, India, Indonesia, Mexico, Philippines, and Saudi Arabia. 

The following salient risks and respective mitigation actions were defined: 

• Working hours and rest days: a few sites had issues with workers exceeding the local legal limits and rest day policies. We have adopted new internal guidelines and are implementing a global monitoring system overseen by the due diligence working group and operations team to ensure alignment to the limits.

• Access to contracts and manuals: we are ensuring all employees can easily access physical and digital copies of all employment documents and are aware of the process.  

• Voluntary overtime: we are reinforcing procedures to ensure proper documentation, especially for sites where overtime is frequently proposed.  

• Health and Safety: this remains a priority area for continuous improvement. See Health and Safety section for further details. 

We have completed all the remediation actions defined in 2024, related to fines and salary deductions, ensuring all sites comply with local regulations and communicate policies clearly. Additionally, we now ensure that medical tests for employees and applicants are legally compliant and justified from a health and safety perspective. There have been no instances of forced and child labor reported. These topics are assessed with a focus on manufacturing workforces located in risk countries as listed above.

In addition to the assessment and mitigation actions with sites and warehouses located in high-risk countries, we also monitor and engage with all sites and workers globally. Internal stakeholder discussions highlighted the need for a preventive approach for new manufacturing sites launched in 2024 and beyond. We have worked to ensure that appropriate policies and practices are embedded from the outset as part of the general new operations process. 

In 2025, 320 cases were reported via the Ethics Line, from which 13 were related to discrimination and harassment. None were classified as severe human rights incidents and no fines or compensations were issued in relation to employee compliants. All concerns raised are consistenly registered in a single database and are investigated in accordance with the standardized investigation procedure in a prompt, independent and objective way as specified by the reporting policy. More details on the process and categorization of complaints is available in Section G1. 

Workforce general disclosures

S1-6 – Characteristics of the undertaking’s employees
S1-13 – Training and skills development metrics

The total size of the Signify workforce at the end of 2025 was 26,581 FTEs, compared to 29,249 at year-end 2024.

In 2025, Signify’s adjusted employee turnover increased to 23% (2024: 16%). On a reported basis, the total turnover was 8,799 people, which represents 35% (2024: 28%) including estimates for companies not fully integrated (CNFI), and the specifics of the Mexican labor law, which prohibits contingent labor and therefore causes a significant impact on a consolidated basis. In 2025, we improved our data accuracy for turnover with the inclusion of Klite actual data. Signify applies high standards in its factories around the world to ensure its competitiveness in highly dynamic labor markets, while continuously improving employee satisfaction and reducing turnover.

Financial information related to our workforce can be found in chapter 15, Consolidated financial statements, note 4, Employee benefit expenses. The Financial Statements report a different FTE number than the Sustainability Statements due to differing methodologies: the former uses an average FTE number, while the latter reflects the end-of-year FTE count.

Our company culture is built on three foundational pillars: our purpose & values, sustainability and building high performance teams. These foundational elements guide why we exist, what we value, and how we work. Our purpose is to unlock the extraordinary potential of light for brighter lives and a better world. It is our guiding light and it has been since we became an independent company. Underpinning our purpose are our values which are brought to life through our behaviors.

In 2024, we articulated what those behaviors look like and activated them through management teams cascades and team workshops, with more than 600 teams participating.

Inculcating new behaviors requires sustained effort, and in 2025 we continued this commitment. First, 150 of our most senior leaders reflected on their own behavior journeys during Ignite in February, led by our CEO and CHRO, after which the discussions cascaded through regional Ignite sessions. To support teams more broadly, we developed quarterly, team‑run workshops that allow employees to deep‑dive into selected new behaviors and translate them into concrete actions.

To sustain excitement and engagement, colleagues from around the world participated in videos showing the behaviors to bring them to life. They were shared on global platforms to help employees familiarize themselves and understand the behaviors deeper. We also continue to reinforce our alues. On a quarterly basis, we focus on one specific value, and the CEO recognizes teams that have exemplified that value on the global webcast. We also rolled out a recognition platform called Spotlight which allows colleagues to recognize each other for display of our values. This is underpinned by our belief that lived experiences are what entrenches a culture within the Company. As a result, scores for our four values have been climbing steadily over the past four quarters in our quarterly surveys. Scores for each value improved by 2% from a high base, to reach 86% to 93% for each of the four values.

Our commitment to sustainability is ingrained in our strategy and culture. In 2025, we’ve continued to engage employees through regular sustainability challenges and quarterly engagement themes that link personal values with our business practices. We're constantly striving to deepen our understanding of sustainability and its implications. Our performance culture is supported by quarterly individual performance conversations between office employees and managers. During these check-in conversations, employees shared progress toward goals and development priorities, while managers provided coaching and support to overcome challenges and foster growth.

In 2025, managers continued to serve as a cornerstone in driving performance culture across the organization. The quarterly check-ins were further embedded as a key tool to enable ongoing performance and development conversations, strengthening alignment and accountability at all levels. Completion rates remained robust throughout the year, reaching 91% which reflects the continued adoption of our performance culture under the new operating model. Looking ahead to 2026 and beyond, we will continue to reinforce managerial capability, advance coaching excellence, and further integrate feedforward and recognition practices, with a particular focus on enhancing team effectiveness to unlock sustainable growth at Signify.

Promoting employee engagement and well-being strengthens our organization’s resilience and brings our shared vision to life — a workplace where everyone feels included, makes a meaningful contribution, and takes pride in shaping our company’s success. When employees are engaged, they drive business performance and sustainability outcomes while fueling a culture of energy and excellence.

Our workforce actively participates in volunteering activities across our various regions and offices. By engaging with local NGOs and supporting community initiatives, our employees drive meaningful engagement. Volunteering is deeply embedded within our corporate culture, reflecting our commitment to social responsibility. This dedication not only strengthens our community ties but also fosters a culture of giving and collaboration within our organization. We also collaborate and support the work of the Signify Foundation. Read more about the work of the Foundation in their report.

Our teams and offices globally have engaged in multiple initiatives and partnerships with local organizations. Here are a few highlights:

• Our team in Lodz, Poland, volunteers annually to replant trees in the local forest. This year the team planted 1,000 trees.

• In Camargo, Mexico, our team spent a day with the association ADN, which supports children and adolescents in vulnerable situations. They hosted activities with the children, played games and prepared small surprises for them to take home.

• In Shanghai, the team hosted a workshop series titled “Wonderful Interactions between Light and Living Organisms” co-created with the Shanghai Natural History Museum. Six workshops were hosted in 2025, aimed at children.

• At the Takbo Para sa Kalikasan Earth Run in the Philippines, Signify employees participated in a tree-planting activity, contributing directly to environmental restoration and biodiversity protection. 

Tree planting in Lodz, Poland

Takbo Para sa Kalikasan Earth Run in the Philippines

In 2025, we strengthened our commitment to employee engagement and well-being through several initiatives designed to foster resilience, connection, and inclusion. The Be Well program, launched in June, provides employees and their families with confidential counseling, as well as financial and legal guidance — helping them access the support they need to sustain well-being and performance. In September, we launched Spotlight, our new global recognition platform that celebrates everyday achievements and reinforces a culture of appreciation. By encouraging peer-to-peer recognition, we continue to build stronger, more connected teams across Signify. We also celebrated individuality and inclusion through the You & Identity Exhibition, a collaborative event with six other companies in Amsterdam exploring personal identity and authenticity through portraits and storytelling. Together, these initiatives reflect our belief that when people feel well, valued, and seen, they bring their best selves to work and help strengthen our culture of engagement and belonging.

Our Employee Team survey is a powerful tool for regularly gauging employee sentiment in line with our company purpose and values. Conducted every quarter, it has proven to be a positive driver of employee engagement, enabling us to monitor trends and discuss outcomes and actions at the team level when needed.

In 2025, we updated our survey questions to align with the refreshed behaviors that underpin our values. This enables us to stay on top of the trends around employee engagement and understanding and acceptance of our new operating model. Additionally, the survey provides valuable insights into the inclusivity in teams and the impact of our managers, as measured by the Manager and Inclusion indexes.

Our results show that 85% of employees believe we put our Customer First, 92% acknowledge that we are Greater Together, 90% feel that we are Game Changers, and 88% agree that we have Passion for Results. Employees also acknowledge that we Act with Integrity as an organization. We address improvement points at the team level through our Team Dialogues and continue to track progress on these questions during our Quarterly Performance Reviews.

To measure employee sentiment, the Net Promoter Score (NPS) methodology is used as part of our Employee Team Survey. Employees are asked to assess how likely it is that they would recommend our company as a great place to work. At the end of 2025, we recorded an average annual Employee NPS score of +39 across the Signify population (2024: +29), with an average employee response rate of 83% (2024: 82%).

In 2025, we continued building on our updated Employer brand pillars: leading an industry and shaping the future, creating a sustainable future and growing a thriving career.  During 2025, we continued to infuse our new EVP into our employee touchpoints and external communications. Finally, we are very proud of the recognition that we continue to receive for being an Employer of Choice in many countries. Here's a glimpse of the awards we received in 2025:

• We won four US awards from RippleMatch Excellence in Recruitment Strategies, Excellence in Tech Innovation; Excellence in Candidate Experience and Excellence in Internship Programming;

• Awarded the Top Employers Award in China for the 8th time;

• Great Place to Work (The Great Place to Work® Institute) certification;

  • Awarded in United Arab Emirates, Oman, Qatar, and Lebanon;

  • Awarded in India both for Great Place to work and Great Place to work for women (top 100);

  • Awarded in Turkey for the third year in a row;

  • Recognized as a Champion of Good by the National Volunteer & Philanthropy Centre (NVPC) in Singapore.

Within our Climate Transition Plan released in 2024, we also acknowledge the impact our ongoing transition has on our own workforce. As we adapt our business to the demands of a low-carbon economy, it is essential that we manage the social implications of this shift.

In recent years, the market for conventional lighting products has declined, leading us to reduce our workforce and close several factories. In 2010, our conventional lighting business employed approximately 18,000 workers worldwide. By 2030, we expect that to be below 500. Inevitably, this means job losses. Where possible, we transfer employees to other jobs within Signify, particularly when they work at factories serving both our conventional and LED lighting businesses.. We estimate that this accounts for around a quarter of employees affected by job losses in recent years. For other employees, we take a from work-to-work approach, helping them find new jobs outside Signify and supporting them in making the transition:

• We negotiate detailed social plans with works councils, trade unions and other employee representative groups to provide job-to-job and financial support in line with local regulations;

• Employees are also given advanced notice of factory closures and job losses – this depends on location, but generally ranges between 3-6 months. During that period, employees are granted time off to apply for new jobs and offered access to training and outplacement services.

Signify has high standards in areas such as quality, safety and Lean methodology, and we find this helps employees in looking for new positions. Overall, we support decent work and economic growth by creating a fair, inclusive workplace and providing development opportunities for both employees and suppliers. We also offer training and access to finance to entrepreneurs working in the lighting sector in developing countries. In recent years, the clean energy transition has created millions of new jobs and will continue to do so.

Safety at work

S1-14 – Health and safety metrics

At Signify, our commitment to a safe and healthy working environment is embedded in both our Human Rights Policy and our Environment, Health & Safety (EHS) Policy. The EHS Policy, which complements our Sustainability Policy, applies to all our sites, majority-owned joint ventures, and service projects. It covers employees, temporary workers, contractors, and visitors, ensuring that health and safety standards are upheld across our entire operation. These policies reflect our dedication to preventing harm and fostering a safe, supportive environment for all individuals involved in our business activities.

Health and safety is a top priority for us. We are committed to providing a safe working environment for our employees. Our total recordable case (TRC) rate is the central indicator through which we measure our overall safety performance. Targets for this indicator are set and managed at a company-wide level and are tracked at business as well as site levels for our manufacturing sites and distribution centers.

Our annual EHS Week campaign, that aligns with International Labor Organization’s World Day for Safety & Health on April 28th, was dedicated to the topic of “Caring for each other – Reporting Near Misses and First Aid Cases”. As part of this campaign, we held a successful company-wide competition.

We recorded 27 work-related injury cases in 2025 (2024: 41). The TRC rate decreased to 0.12 per 100 FTEs (2024: 0.17) and the rate of recordable work-related accidents decreased to 0.58 (2024: 0.83). In 2025, 72% of our reported industrial sites had no recordable injuries and 44% of industrial sites with no recordable injuries over the last three years, while 65% sites had achieved more than 500 injury-free days.

As part of our continuous improvement program, we continued our site EHS maturity assessment process in 2025. We conducted 22 corporate on-site assessments that provided a standardized and effective measure to identify improvement opportunities at individual sites and enabled the exchange of best practices across our manufacturing sites.

From 2025 onwards, sites that do not receive on-site assessment are required to complete EHS maturity self-assessment utilizing the same standardized framework.

This year, we also launched company-wide mandatory Health & Safety Essentials e-learning campaign for all employees with access to our learning platform.

Our health and safety management system covers 100% of our headcount and includes all our sites, both manufacturing and non-manufacturing, ensuring consistent safety standards across the organization. Also, we have reinforced our program to ensure all Signify manufacturing sites are certified locally or via the Signify multi-site ISO 14001 and 45001 certifications. At the end of 2025, 93% of our manufacturing sites were ISO 14001 certified and 93% were ISO 45001 certified. The remaining manufacturing sites have procedures in place to foster compliance with local regulations and Signify policies.

Living wage

Since 2017, Signify has implemented its Living Wage Program as part of our commitment to responsible employment. Our aim is to ensure that every employee earns at least a living wage that supports essential daily needs. We offer total compensation aligned with market practices in all countries in which we operate and our compensation framework is built on key principles: competitiveness across labor markets, internal equity, and full living-wage compliance.

Each year, we conduct a global assessment of salaries and benefits against living-wage benchmarks, focusing on regions where risks of non-compliance may be higher. For the 2025 cycle, our analysis covered 33 regions across six countries, representing 74% of our global workforce fully integrated into our systems. Living-wage comparisons are performed using benchmarks from the independent WageIndicator Foundation.

Our living wage commitment is not linked to an IRO and is therefore disclosed on a voluntary basis. It is also distinct from the CSRD concept of an "adequate wage" and should not be interpreted as such. Further details on the living wage methodology and its application are described in the reporting principles section.

The 2025 results confirm that Signify continues to exceed living-wage standards in nearly all the regions assessed. Only one region, representing 0.33% of the population, fell marginally below the benchmark, reflecting a 49% reduction compared to last year’s findings.

Talent, learning and development

S1-13 – Training and skills development metrics

Our talent management philosophy focuses on identifying and developing employees’ skills and capabilities to support professional growth and business impact. This approach is reflected in our talent development, succession planning, and learning initiatives and is underpinned by our Human Rights Policy, which supports employability, continuous development, and a safe and respectful workplace for all employees.

At Signify, we aim to develop our talent from within and be a true talent builder. We focus on hiring at entry‑level positions - with campus hiring as our largest source - and promoting from within. We are committed to continuously identifying and developing our people’s skills and potential, enabling them to make a positive impact at Signify while growing as professionals.

In line with our philosophy, we continue to identify and source talent through high-quality channels:

• Internal - last year, approximately 28% of our vacancies, and 27% of our managerial positions were filled internally;

• Employee referral - 19% of total external hires came from employee referrals;

• Signify careers website - through our content strategy on social media, "Humanizing our employer brand", we saw high engagement driven by our employees sharing content and our stories about why Signify is a great place to work, aligning with our values and EVP.

We continue to foster internal mobility by matching our talent with internal opportunities. In 2025, we strengthened our Talent Management Philosophy, designed to cultivate continuous growth, empower employees to own their development, and strengthen the quality of career conversations across the organization. This philosophy marks a shift from talent planning to activation - ensuring we have the right talent in the right role at the right time with the right skills.

To bring this vision to life, we launched the Workday Career Hub, a centralized platform that offers personalized recommendations for jobs, mentors, learning content, and career paths based on each employee’s skills, interests, and aspirations. It enables employees to identify skill gaps, explore next roles, and connect with peers, while giving managers the tools to recommend targeted development opportunities and stretch assignments.

This launch - to be expanded globally in 2026 - forms part of our broader Skills First transformation, a multi‑year journey to embed skills into our operating model and build a truly skills‑based organization. This approach enriches job profiles, benchmarks against external data, and evolves through validated employee input. With skills at the core of our talent ecosystem, we enable smarter decisions on development, internal mobility, and workforce planning, ensuring employees have access to meaningful, personalized growth opportunities aligned with our strategic priorities.

Learning continues to be a strategic differentiator for Signify, driving talent attraction, retention, and performance. Our learning ecosystem blends on-the-job assignments (experience), coaching and mentoring (exchange), and formally structured learning and online courses (education). The average number of hours spent on training and development per headcount was 16 hours during 2025 (2024: 18).

During the year, we also launched Workday Learning as the central learning hub for all employees, providing a seamless and personalized learning experience. To power the platform with high-quality, industry-leading content, we partnered with Skillsoft, enriching our learners’ access to world-class resources and courses that build both technical and leadership capabilities. The first rollout was launched with our Digital team, with a global deployment planned for 2026.

We continued to invest in digital reskilling and skill assessments for skills like Robotic process automation (RPA), Data and analytics (AI, Machine learning, Data analytics), Cloud computing, Information and cyber security, Programming languages, and IT architectures.

As part of our commitment to responsible AI use, we introduced the AI Policy, which ensures that all AI systems developed, deployed, or used by employees adhere to principles of accountability, transparency, fairness, and security. The policy is applicable to all employees and includes training to ensure everyone understands how to apply AI safely and ethically. The training covers essential topics such as safeguarding data privacy, managing AI-related risks, and ensuring compliance with regulatory requirements.

We expanded the INNOLEAD program throughout the Innovation team to strengthen the organization’s long-term capacity for innovation and market responsiveness. The program serves as a Tech Leadership journey aimed at developing a new generation of experts who can lead through expertise, influence, and innovation. INNOLEAD fosters a sustainable culture of agility, evidence-based decision-making, and thought leadership. By equipping participants with advanced capabilities in innovation management, change leadership, and strategic thinking, the program builds a resilient and future-ready community of technical leaders capable of driving meaningful transformation across the organization. 

We continued to ensure that our leadership development experiences are aligned with our leadership framework of lead, develop, and inspire.

In 2025, we continued strengthening managerial capabilities through iEDGE and iEDGE+, our people manager development programs launched in 2024. To expand reach, the program was translated and delivered in French and Chinese. A total of 1,384 managers - representing 94% of all eligible people managers - have completed the program.

Structured as a developmental journey aligned with our leadership framework, the program covers the essentials of managing self, teams, and work. It includes eight modules on topics such as emotional intelligence, situational leadership, change management, and unconscious bias.

To sustain and reinforce these skills, we established region-based Communities of Practice. These quarterly sessions offer refresher training and peer coaching, fostering open dialogue around real-life challenges and encouraging practical, collaborative problem-solving.

Diversity, equity & inclusion

S1-9 – Diversity Metrics

We believe diversity and inclusion drive innovation and business success. As an equal-opportunity employer, we celebrate and value all ideas, perspectives, and experiences, ensuring everyone has equal access to opportunities and resources.

Diverse representation helps us connect with customers and attract talent. Operating in 73 countries with over 91 nationalities, our DE&I roadmap embodies our “Greater Together” value, driving innovation, growth, and a strong culture.

Our two global diversity, equity and inclusion priorities are increasing the representation of women and increasing our generational diversity by attracting more Gen Z colleagues to our organization. Diversity challenges vary across markets and geographies. For this reason, we have added an additional local DE&I priority to provide flexibility in meeting market needs, ensuring relevance for each market. We ask leaders to choose a DE&I priority that they will drive in their own market. This is what we call our 2+1 approach, reflecting two global priorities + 1 local priority. As an example, India has identified people with disabilities (PWD) as a key focus area. A dedicated PWD committee has been established with responsibility for introducing new policies that are conducive to the needs of PWD. We are committed to improving diversity at all levels, attracting candidates from more diverse pipelines, and driving development and internal mobility to increase representation across our company.

In line with this commitment, we signed the United Nations (UN) Women’s Empowerment Principles in 2021, reinforcing our pledge to double the percentage of women in leadership roles (defined by CSRD as Top Management) to 34% by the end of 2025, from a baseline of 17% in 2019. In 2025, women represented 42% of Signify’s employees (2024: 40%), 41% of our new hires (2024: 45%) and held 27.5% of leadership roles across the company (2024: 27.8%) with 28 women leaders and 74 men. While we did not fully reach our ambition, we made overall progress since 2019 and remain committed to advancing gender diversity in leadership by continuing to build on our hiring and pipeline initiatives and applying lessons learned.

On generational diversity, 14.2% of Signify employees were Gen Z (2024: 12.2%). As part of our strategy to attract Gen Z talent, we expanded our campus hiring and our internship programs.

The 4 US awards we received from RippleMatch in 2025 highlight our commitment to hiring early career talent, emphasizing diversity and inclusion, and investing in the next generation. As we advance our priorities, we are driving actions to boost diversity recruitment and internal mobility at all levels, including inclusive job postings, diverse shortlists, and hiring panels. We have plans to address gaps and accelerate progress, ensuring our talent pipeline reflects market diversity. To strengthen these efforts, the “license to hire” training has been continued for all people managers to enhance their skills and knowledge during recruitment around DE&I (e.g. fairness of process, fair decision-making, candidate experience, equity).

Our Diversity, Equity & Inclusion Policy, a cornerstone of our Integrity code, underscores our commitment to creating a fair and inclusive workplace. It ensures equitable treatment for all employees, including population at risk, regardless of race, color, age, gender, gender identity or expression, sexual orientation, language, religion, political views, disability, veteran status, national origin, or any other protected characteristic. This aligns closely with our Human Rights Policy, which explicitly addresses non-discrimination and equal treatment, providing prevention, mitigation and remediation guidance.

To maintain a safe and inclusive workplace, our Anti-Harassment and Anti-Discrimination Policy prevents unlawful behavior, promotes accountability, and protects our organization’s reputation. This also includes workplace principles designed to foster flexibility, inspiration, collaboration, and belonging. Employees have the flexibility to work from home as needed and set reasonable boundaries, promoting balance and well-being. Together, these principles create an environment where every employee can thrive and contribute to our shared purpose.

In partnership with Harvard Business Publishing, we educate all employees on topics such as unconscious bias, microaggressions, generational diversity, psychological safety and inclusive leadership. We continue embedding the inclusive Leadership Model into the iEDGE leadership program for people managers.

In March, to honor International Women’s Day, colleagues worldwide organized events under the theme #EmbraceEquity, celebrating achievements and reflecting on challenges within the equity and inclusion space.

Our Valladolid site launched its first all‑female industrialization team, demonstrating progress in increasing female representation in technical and operational functions. With growing participation of women across departments, we are actively addressing gender imbalances and supporting career development in roles where women remain underrepresented. These efforts reflect our broader ambition to build a more inclusive and diverse workforce across the company.

Our commitment to creating and sustaining an inclusive workplace culture is evidenced in our Diversity Committee, DE&I Champions network, and our Connection Point Groups. These empowered, employee-led and self-governing groups champion our dedication to belonging and well-being. Founded in 2019, our DE&I Board continues to drive our strategic initiatives and the ongoing development and refinement of our multiyear DE&I roadmap.

Gender diversity in %

New hire diversity in %

Employee per age category in %

Signify’s commitment to equal pay for equal, or substantially similar, work is anchored in our rewards fundamentals and pay philosophy. We have established robust pay governance frameworks covering hiring, benefits, annual compensation review, and promotion processes to ensure fairness and transparency.

There are two important components in equal remuneration: the adjusted pay gap, and the unadjusted pay gap. The adjusted pay gap reflects pay equity; providing equitable pay for the same or similar jobs when considering differentiating factors such as location, performance, skills and experience, among others, while the unadjusted pay gap refers to the difference in pay between all men and all women in an organization.

Our pay equity journey began in 2017 with our first global analysis, and we have continued to strengthen our approach. In 2024, we partnered with an independent, external pay equity analytics provider to enhance the rigor, objectivity and transparency of our assessments. These annual reviews apply comprehensive statistical methods across all employee groups worldwide.  Where meaningful variances are identified, we take prompt and targeted action to address them.

Looking ahead, we are preparing for new pay transparency and pay equity requirements being introduced across multiple jurisdictions. We are embedding these standards into our internal processes and leveraging external expertise to ensure compliance and best practice. Our latest analysis confirms that we continue to ensure equitable pay; men and women performing similar work – such as within the same grade, location, or job family, receive equitable pay.

S1-16 – Remuneration metrics

Creating a workplace where everyone is rewarded fairly for their contributions is central to our values and long-term success. Each year, we review our progress to ensure that our compensation practices remain transparent, equitable, and aligned with our principles. The unadjusted pay gap refers to the difference in earnings between men and women without any adjustments made for factors such as skill set, education, experience, and performance.

Our latest analysis shows that the unadjusted pay gap between men and women is 24%, representing a 3 percentage-point improvement compared to last year. This means that women earn on average 76 cents for every euro earned by men (2024:73 cents). While this progress is encouraging, the gap continues to be primarily driven by the underrepresentation of women in technical roles and senior leadership positions. The calculation is based solely on fixed base salary and excludes variable remuneration components such as bonuses, incentives, equity awards, and benefits. Signify is working to progressively enhance data coverage and the calculation scope in future reporting periods.

Over the past year, we have made progress toward closing this gap. We continued to advance our ambition to double the percentage of women in senior leadership positions as part of our Brighter Lives, Better World 2025 program. Our pay reviews were complemented by advanced analytics through our partnership with Syndio, enabling us to identify and address notable variances promptly. In addition, our International Fair Pay team progressed on the strategic roadmap toward compliance with the EU Pay Transparency Directive, further reinforcing transparency and accountability across our organization. We also expanded training and awareness sessions for managers and HR professionals to embed pay equity principles into everyday equity principles into everyday decision-making.

Looking ahead, closing the gender pay gap will remain a key focus. We will continue to monitor pay practices, strengthen representation of women in technical and leadership roles, and align with forthcoming EU pay-transparency regulations. Our long-term goal is to embed fairness and equity into every aspect of our reward framework, because we believe that equitable pay is not only a legal and ethical obligation - it is also a driver of innovation, engagement, and long-term business success.

S1-16 – Remuneration metrics

The remuneration ratio represents the relationship between the highest-paid individual’s annual base compensation and the median annual base compensation of all employees within the organization. For the reporting year, the Remuneration Ratio - calculated on base compensation only - is 73.

The calculation is based solely on fixed base salary and excludes variable remuneration components such as bonuses, incentives, equity awards, and benefits. As a result, the disclosed Remuneration Ratio does not fully align with the CSRD definition, which is based on total remuneration. Current limitations in the availability and consistency of variable pay and individualized benefits data prevent full application of the CSRD methodology. Subsequently, comparative data is not reported. Signify is working to progressively enhance data coverage and the calculation scope in future reporting periods.

The Remuneration Ratio disclosed in this section differs from the Internal Pay Ratio presented in the Remuneration report (see subsection 10.2.10, Signify's internal pay ratio). Signify’s Internal Pay Ratio is calculated by comparing the CEO’s total compensation with the average total compensation of employees, rather than median compensation, and therefore serves a different reporting purpose.

Our approach

At Signify, we prioritize the well-being of our employees, workers in our value chain, and the communities we operate in. With direct business relationships with over 3,000 product and component suppliers, we recognize the importance of responsible procurement practices and supply chain management.We aim to build positive relationships with people and organizations, with mutual respect and understanding at the core of all our interactions. This commitment aligns with our fundamental goals of respecting human rights, promoting diversity and inclusion, and maintaining high health and safety standards.

Over the years, Signify has developed and implemented programs to prevent human rights violations within our supply chain. These initiatives follow a due diligence approach and include the assessment and development of supplier sustainability performance through audits and training, as well as responsible minerals sourcing. We are actively working to address our material topics - ensuring that we mitigate risks to workers in our supply chain while also safeguarding our business from the financial and reputational risks that may arise from these issues.

This section is aligned with the ESRS S2 disclosure requirements and outlines our due diligence approach, engagement strategies, and performance metrics for high-risk, high-spend suppliers.

Material impacts, risks and opportunities

S2 SBM-3 - Material IRO and their interaction with strategy and business model
S2-1 - Policies related to value chain workers

The double materiality assessment identified the following material IRO:

1. Working conditions - potential negative impact- upstream

2. Human rights - potential negative impact - upstream

The table below summarizes the relevant policies and associated details, as well as their linkage to the S2 IRO. For further information on the DMA, see section 5.1, Brighter Lives, Better World 2025 progress.

The types of value chain workers subject to material impacts are defined in the respective sections below. In addition, we conduct an annual human rights risk assessment, which provides further insights. This is explained in detail in the following section.

Human rights due diligence

S2-3 - Process to remediate negative impacts and channels to raise concerns

Our approach to human rights due diligence is based on the Responsible Business Alliance (RBA) Code of Conduct and focuses on identifying, assessing, managing, and remediating material impacts on workers in our value chain. Through our Supplier Sustainability Audit Program, we evaluate high-risk suppliers to ensure compliance with ethical labor standards.

In 2024, we conducted a comprehensive risk assessment of our supply chain, focusing on key issues such as labor conditions, health and safety, working hours, and forced labor. We conduct this assessment every two years to ensure continuous oversight and identification of emerging risks.

These assessments guide our engagement with suppliers and influence our corporate strategy through a double materiality lens. Audit results feed into our broader human rights risk management strategy, ensuring adverse impacts on workers are effectively mitigated and remediated. We are also exploring direct engagement with relevant downstream suppliers in the future to further enhance our ability to address and mitigate human rights risks across the value chain.

This structured approach allows us to focus on the most salient human rights issues - those with high to critical risks - ensuring that adverse impacts on workers in our value chain are systematically prevented, mitigated, and remediated in alignment with internationally recognized frameworks.

Through our assessment, we identified the following salient issues among our supply chain.

• Forced, bonded, or indentured labor: migrant workers, particularly those recruited through third-party agencies, are vulnerable to forced labor practices, including debt bondage and retention of personal documents;

• Child labor: the risk of child labor is particularly high in informal mining and unregulated parts of the supply chain. Children face hazardous work conditions that prevent schooling and expose them to harm;

• Exploitation of young workers: young workers, typically aged between 16 and 18, are legally permitted to participate in internships or apprenticeships, provided these roles do not involve hazardous tasks. However, there is a risk that such programs may expose them to unsafe working conditions, excessive hours, and physically demanding or dangerous work if not properly regulated;

• Excessive working hours: in certain production environments, workers may be required to work extended hours, particularly during periods of high demand. This issue is often influenced by socio-economic factors in specific regions, where workers may voluntarily work additional hours to increase their earnings;

• Inadequate wages & benefits: wages below a country’s minimum wage threshold coupled with insufficient benefits can lead to financial insecurity, forcing workers to work excessive hours or multiple jobs to meet basic needs, increasing fatigue and health risks;

• Poor working conditions: workers in manufacturing environments face health and safety risks such as exposure to hazardous chemicals, unsafe machinery, and physically demanding tasks like heavy lifting or repetitive motion, leading to injuries, illnesses, and long-term health impacts. Poor access to clean housing and sanitation, including overcrowded accommodations, lack of potable water, and inadequate sanitary facilities, further exacerbates health risks and reduces quality of life;

• Lack of emergency preparedness and building safety: manufacturing facilities may lack proper emergency preparedness, fire safety measures, and safe building structures, increasing the risk of injuries or fatalities. Poorly maintained buildings, inadequate fire detection systems, obstructed exits, and insufficient recovery plans further elevate these dangers. Without comprehensive safety procedures and proper facility maintenance, workers' well-being is at significant risk.
  

Dependency on value chain workers presents an opportunity to enhance fair labor practices and worker well-being, while building a more resilient and transparent supply chain, ultimately contributing to sustainable long-term growth. Signify is dedicated to addressing human rights risks within our supply chain through a structured mitigation plan. Our approach focuses on collaboration with suppliers to ensure compliance with our standards and continuous improvement.

For the risks of forced, bonded, or indentured labor and the use of child labor, Signify maintains a zero-tolerance policy. Suppliers are required to address any such cases immediately upon detection. Failure to comply with our policies and to take immediate corrective action can result in the termination of business relations. More details on how we monitor and follow up with suppliers to ensure compliance and corrective actions are outlined in our programs described below in our action plan for child and forced labor.

In 2023, Signify launched the Supplier Improvement Program (SIP) to address key human rights issues in our supply base through targeted, on-site training conducted by third-party experts. In 2024, the focus was on working conditions, health and safety, and emergency preparedness. In 2025, we delivered a comprehensive supplier training program covering all human rights topics outlined in our Supplier Sustainability Declaration, including labor management, ethics, management systems, health & safety, and environmental management.

The program aimed to strengthen supplier capabilities, promote responsible practices, and support continuous improvement across supplier sites. 29 suppliers attended the training. Suppliers have noted the program’s effectiveness in helping them implement corrective actions and improve facility standards. Through our Responsible Business Alliance (RBA) membership, suppliers also have access to additional training and resources, supporting the adoption of sustainable best practices.

Our supplier rating program, Tritium, supports the development of a strong and resilient supply base built around best-in-class partners. Suppliers are evaluated against a range of criteria aligned with our strategic priorities, enabling continuous improvement in sustainability performance. The system rewards maturity and proactive initiatives on human rights, working conditions, climate action, and responsible mineral sourcing, while non-compliance is addressed and lack of corrective action may affect future business allocation. Ultimately, Tritium ratings directly inform commercial decisions and guide how we allocate business across our supplier network.

Stakeholder engagement

S2-2 - Process for engaging value chain workers about impacts

To ensure effective collaboration and risk mitigation, we actively engage with suppliers, workers, peers, and civil society organizations. These interactions provide critical insights into challenges within our value chain and address inclusive business practices, sustainability initiatives, and targeted strategies. Our key stakeholder engagement activities include.

Supplier Onboarding: we engage potential suppliers through assessments of quality, sustainability, trade compliance, and risk at various onboarding stages. These evaluations, conducted by our internal teams or external partners like SGS, yield insights into industry trends and compliance, informing our business and sustainability strategies.

Supplier Business Review Meetings: regular meetings with key suppliers address pricing, availability, innovation, and sustainability, supported by our supplier rating program Tritium. These discussions, led by our Supplier Account Managers, foster alignment and strengthen relationships, influencing our business allocation strategies based on supplier performance. Sustainability performance is shared with the supplier representatives as proxies.

Supplier Sustainability Audits: we engage with suppliers and value chain workers through periodic audits conducted for high-risk suppliers with over EUR 1 million in spend, in collaboration with an independent certification body. These audits include direct interviews with value chain workers and their representatives to identify any risks or complaints.

Additionally, we are exploring ways to enhance direct engagement, particularly with vulnerable groups, to strengthen our commitment to worker well-being and inclusiveness.

Supplier Trainings: we offer annual training on health, safety, and human rights, promoting compliance and long-term improvements in our supply chain. These trainings are tailored to audit results and are available to all interested suppliers.

By engaging with suppliers, workers, peers, and civil society organizations, we gain valuable insights into the challenges faced by workers within our value chain. This engagement enables us to develop and implement more inclusive business practices, positive opportunities, and commodity strategies that effectively address the specific needs and concerns of value chain workers and vulnerable populations. We maintain the effectiveness of these engagements through ongoing monitoring, audits, and direct interactions such as business reviews and interviews. By adapting our programs based on feedback and audit results, we ensure we stay aligned with the evolving needs of both vulnerable workers and consumers.

Action plan

S2-4 - Taking action on impacts and approaches to managing risks and opportunities
S2-5 - Targets related to managing IRO

At Signify, we prioritize our efforts on suppliers located in high-risk countries, as identified by the SA8000 country risk assessment. The list includes China, Mexico, and India, where most of our suppliers are based. Our current focus is on tier 1 suppliers except for our responsible minerals activities. Key risks, such as excessive working hours and building safety, are actively monitored. Additionally, we face potential risks of forced and child labor in the electronics and mining sectors. Through a zero-tolerance policy and a comprehensive due diligence program, we actively monitor and mitigate these risks, including responsible minerals sourcing. When violations are found, the supplier must address this issue within the shortest possible timeframe. If the supplier is not willing or able to do so, we will terminate the business relationship. The following sections provide details on the programs we have running to address the salient issues and material IROs.

We have established a dedicated team within our procurement organization to implement and monitor the performance of our supplier sustainability and responsible minerals program. Results are assessed against our sustainability targets, which are regularly reviewed by procurement and sustainability senior management. In the event of deviations from our targets, we take proactive corrective measures to realign with our sustainability objectives. This structured approach reflects our commitment to responsible sourcing and continuous improvement in our supply chain practices.

We ensure the protection of human rights through our Supplier Sustainability Declaration, which also forms an integral part of supplier contracts. The policy is signed off by the Head of Sustainability and the Procurement Performance Leader, who also holds oversight of its implementation and overall accountability for ensuring compliance. We expect both upstream and downstream suppliers providing products, components, parts, subassemblies, materials, packaging, services, or solutions to or on behalf of Signify to comply with our Supplier Sustainability Declaration (SSD).

Our policy covers areas such as labor rights, health and safety, and ethics. These standards apply to all workers, including temporary, migrant, and contract workers. The SSD serves as our supplier code of conduct and is derived from the RBA Code of Conduct, outlining the standards that we require from our suppliers and their suppliers.

We are committed to respecting internationally recognized human rights in all our operations and throughout our value chain and are aligned with the United Nations Guiding Principles on Business and Human Rights (UNGPs) and the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work.

We ensure compliance with our Supplier Sustainability Policy through a comprehensive Supplier Sustainability Audit Program designed to assess working conditions, human rights, and occupational health and safety risks across our value chain. The program operates on a three-year cycle and is selective, focusing on suppliers with a higher risk profile. Supplier risk is determined through a set of criteria, including: (i) the country in which production sites are located, based on the SA8000 country risk list; (ii) the type of product or service delivered, with audits focused on finished product and bill-of-materials suppliers; (iii) previous performance, those scoring <70 points are audited annually; (iv) annual spend, with an audit threshold of EUR 1 million, in the previous year, and (v) other relevant inputs, including incidents reported to us directly or indirectly, for example via the media. Suppliers of Klite and other recently acquired Signify entities - representing up to 8% of our total supplier spend - are currently excluded from the audit program. Downstream suppliers, while not subject to audits, are required to commit to our Supplier Sustainability Declaration, Signify Human Rights policy, and Signify Integrity code.

Our supplier audit program is designed to ensure compliance and foster continuous improvement and follows a three-year audit cycle. Suppliers scoring below 90 (out of 100) points during their initial audit are required to implement a Corrective Action Plan (CAP), monitored by an independent audit firm. If the corrective actions have not been implemented within one year, we follow strict consequence management to ensure the progress of our suppliers. To reinforce accountability, we follow a performance-based re-audit schedule. Suppliers scoring below 70 points are audited annually to closely monitor their progress. Those scoring between 70 and 90 are re-audited every three years to encourage consistent compliance efforts. Suppliers achieving scores above 90 points during their initial audits are exempt from re-audits unless concerns are raised by internal or external stakeholders, reflecting their commitment to maintaining high standards.

Furthermore, we encourage our suppliers to obtain certifications such as SA8000, ISO 14001, and ISO 45001. To enhance sustainable practices within our supply chain, we aim to favor suppliers that either pose low risk or implement mature sustainability practices and demonstrate strong performance.  The key performance indicator of the supplier sustainability program is the overall compliance rate, defined as the percentage of suppliers scoring >90 points after closure of corrective actions. The annual target for overall compliance is at least 95%, based on suppliers in the audit scope. This KPI is based on the RBA audit framework and tracks the share of suppliers with CAPs successfully closed and no critical non-conformities outstanding after the recovery deadline. The KPI scope is limited to suppliers on the SA8000 risk country list with an annual spend greater than EUR 1 million. Value chain workers or their proxies are not directly involved in target setting and performance tracking.

By the end of 2025, 245 suppliers were part of our audit program representing 65% of our total spend. Among these, 237 suppliers (97%) were compliant, either by passing the audit, resolving identified non-conformities (or are expected to do so within six months), or submitting other social compliance certifications. Eight suppliers (3%) were considered non-compliant due to overdue corrective action plans or audit dates and are being followed up with our consequence management process. Our compliance rate at the end of 2025 was 97% (2024:96%), surpassing our annual target of 95%. Most of the audited suppliers are based in China (73%), followed by Mexico (10%) and Vietnam (7%).

The assurance of freely chosen employment and prohibition of child labor in our supply chain are key elements of our sustainability objectives and SSD. Child and forced labor are considered a zero-tolerance issue and Signify’s Forced and Child Labour Due diligence statement requires immediate remediation if observed. We closely follow the implementation of the US’s Uyghur Forced Labor Prevention Act (UFLPA) and Bill S-211 Fighting Against Forced Labor and Child Labor in Supply Chains Act. Our forced labor working group is responsible for implementing due diligence mechanisms and monitoring the risk within our own operations and supply chain. Our Forced and Child Labour Due diligence statement sets out our commitment to do our utmost to prevent any form of child and forced labor in our business and supply chain.

Labor

Health and Safety

Management of Ethics

Our commitment to sustainable development extends to the upstream levels of our supply chain, with the aim of preventing human rights abuses and the financing of conflicts in the extractive sector. Global supply chains in our industry are long and complex, often involving multiple tiers between the finished product and the original source of raw materials, yet we believe that progress can be achieved through robust due diligence and strong multi-stakeholder collaboration.

Our products contain minerals and metals that are essential to their functionality, including tin, tungsten, tantalum, and gold (commonly referred to as 3TG, or “conflict minerals”). While we do not use these materials in large quantities, certain applications require them.

As part of the Signify Conflict Minerals program, we implement measures in our supply chain to ensure our products are not directly or indirectly funding atrocities in the Democratic Republic of Congo (DRC). This program is aligned and ensures compliance with Regulation (EU) 2017/821 (the EU Conflict Minerals Regulation) and Section 1502 of the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act. We support and follow the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. More information on due diligence process and Signify’s position on Conflict Minerals is available on our website. Our due diligence process is signed off by the Head of Sustainability and the Procurement Performance Leader, who also hold oversight of its implementation and overall accountability for ensuring compliance.

We are an active member of the Responsible Mineral Initiative (RMI) which provides tools and the assurance programs to verify the conflict-free status of smelters, identify sources of 3TG and other materials, and support risk management. We use RMI resources, including the Conflict Minerals Reporting Template (CMRT) and the Responsible Minerals Assurance Process (RMAP).

Each year, we collect and assess supply chain data from 248 in-scope suppliers, and use this information to identify smelters involved in our supply chain. During the annual reporting period, 202 suppliers provided complete, verified, and validated data, enabling the identification of unique smelters within the supply chain. The remaining 46 suppliers were unable to provide sufficient information for analysis.

We identified 354 unique smelters in the reporting period, of which 217 (61%) were conformant with the Responsible Minerals Assurance Process (RMAP). Where non-conformant smelters were identified, we requested corrective actions, encouraged participation in assessment programs, and evaluated the potential for phase-out where necessary.

Due to the complexity of the supply chain, the number of tiers between actors, and the limited number of certified conflict-free smelters globally, it is not always possible to determine the precise origin of all 3TG minerals used in our products. Obtaining accurate data from suppliers remains a challenge, and we continue to encourage suppliers to trace mineral origins, report smelters not listed by the RMI, and support assessments under the RMAP.

Industry-wide challenges persist, including incomplete reporting, declining participation by some smelters in audit programs, and geopolitical disruptions to assessment activities. Nonetheless, collaborative engagement continues to drive gradual improvements, including the transition of suppliers to conflict-free sourcing.

S2-3 - Process to remediate negative impacts and channels to raise concerns

Our approach to addressing concerns and grievances within our value chain is based on transparency, trust, and fair remediation. We are dedicated to continuously improving our processes to ensure appropriate support for affected workers when we have caused or contributed to a negative impact. Through our Supplier Sustainability Declaration, we set clear expectations for our suppliers, emphasizing the need for accessible grievance mechanisms for workers, rights holders, and stakeholders.

We also expect our upstream and downstream suppliers to uphold workers’ freedom to associate. This includes providing channels for workers and their representatives to communicate openly with management about working conditions and practices without fear of discrimination, reprisal, intimidation, or harassment. This commitment is verified for upstream suppliers during our RBA audits through direct interviews with supply chain workers and aligns with our company Integrity Code. Additionally, we are exploring ways to establish direct engagement with downstream suppliers to further promote and ensure adherence to these principles.

All stakeholders, both internal and external, also have access to our Ethics Line, where they can raise concerns confidentially. These concerns are addressed through the general process outlined in G1, with oversight provided by the Integrity Committee to ensure transparency and accountability in resolving issues. No cases were registered by value chain workers in 2025. Details on the process and categorization of complaints is available in section G1.

Our approach

We are committed to the highest standards of ethical business conduct across our operations and value chain. Integrity, accountability, and transparency guide our decisions and form the basis of sound governance.

Our framework sets clear expectations for compliant and responsible behavior, supported by policies such as our Integrity Code, Supplier Code of Conduct, Anti‑corruption and bribery policies, competition law guidelines, and conflict‑of‑interest procedures. These are regularly reviewed to reflect evolving regulations and stakeholder expectations.

To embed ethical conduct throughout the organization, we combine targeted training with strong internal controls designed to prevent, detect, and address misconduct. Reporting channels together with an independently managed whistleblowing mechanism ensure concerns can be raised confidentially.

Our risk‑based due diligence processes further support this by screening business partners, monitoring compliance, and taking corrective action where needed—reinforcing a culture where ethical behavior guides everyday decisions.

G1-IRO-1 - Description of the processes to identify and assess material climate-related IRO

The double materiality assessment identified the following material IRO:

1. Corporate culture, corruption and bribery - potential financial risk – entire value chain

2. Political engagement and responsible advocacy – potential positive impact – entire value chain

Corporate culture, corruption and bribery were reclassified from a potential positive impact to a material financial risk following further internal alignment with relevant teams and the ERM process. Although the assessed likelihood of occurrence remains low, the potential magnitude of associated fines would render the impact financially material.

The table below summarizes the relevant policies and associated details, as well as their linkage to the G1 IRO. For further information on the DMA, see section 5.1, righter Lives, Better World 2025 progress.

Corporate culture

GOV-1 - Role of the administrative, supervisory and management bodies
G1-1 - Corporate cutlure and business conduct policies

Corporate governance is the system by which a company is directed and controlled. Good corporate governance derives from, among other things, solid internal controls and high ethical standards.

The Board of Management is responsible for managing the risks associated with the company's activities and for defining the company's risk appetite. The Board of Management is assisted by the company's leadership team, which participates on a quarterly basis in audit, risk and control meetings to identify critical risks and to review progress on the implementation of risk responses. The Audit Committee of the Supervisory Board provides oversight for the system of internal business controls and risk management. Internal and external audits are reported to and discussed by the Audit Committee on a quarterly basis and the internal control self-assessment is reported on a yearly basis. An in-depth description of the company's corporate governance structure can be found in chapter 11, Corporate governance.

The Board of Management of Signify has appointed the Integrity Committee, which is the ultimate body within Signify keeping oversight on the development and implementation of the Integrity code, including the monitoring of its effectiveness. One of the key responsibilities of the Integrity Committee is to coordinate the yearly reporting on compliance with the Integrity code and the underlying policies and submit a consolidated report to the Board of Management and the Audit Committee of the Supervisory Board.

The Integrity Committee is chaired by the Chief Legal Officer. Its members include the Chief Executive Officer, Chief Financial Officer, Chief HR Officer, Head of Business Integrity Office and the Head of Legal Compliance. The members of the Integrity Committee complete the regular mandatory training and the Supervisory Board's members confirm their compliance to the Integrity code annually. Each member of the Integrity Committee has extensive experience with compliance matters throughout their careers, which enhances their ability to oversee the integrity framework effectively.

On an annual basis the Board of Management receives a detailed integrity report over the past year, including statistical analysis of reported concerns, benchmark data as well as key observations as to developments in integrity cases. This annual integrity report is also presented to the Audit Committee. Next to the regular reporting, ad-hoc reports on material cases take place. Read more details on business conduct matters discussed by the Supervisory Board in 2025 in chapter 9, Supervisory Board report.

Acting with integrity is the cornerstone for the success of our business and for achieving our purpose. It is integral to the values that define us as a company. Acting with integrity means making the right choices when faced with ethical dilemmas and holding ourselves and each other to high standards of behavior.

The Integrity Code is approved and adopted by the Board of Management. It is reviewed regularly and revised, when necessary, based on input from stakeholders. It applies to all employees of Signify N.V. and its controlled subsidiaries. We also expect our business partners to comply with the key principles included in our Integrity Code. The Integrity Code formulates minimum standards of behavior. Signify has underlying policies that form an integral part of the Integrity Code, ensuring its alignment with the United Nations Convention against Corruption. These policies are made accessible to all employees through multiple channels, including onboarding programs and internal websites.

Also, to further increase the level of awareness and to create global engagement, the company has established a network of Compliance Officers in countries where the company has a presence, on each significant site, and across the whole organization. The activities and responsibilities of this network are focused on providing expertise and support to managers and employees on Integrity code-related matters. Managers play a crucial role in the prevention and detection of corruption and bribery. Promoting participation in training sessions and leading by example through behavior that shows integrity are key responsibilities. Management is often the first point of contact for employees wishing to raise concerns. Furthermore, the Signify Central Privacy Office safeguards the governance of personal data together with privacy contact points across the organization.

The Integrity Code is supported by mechanisms that ensure standardized reporting, escalation and investigation of concerns. These mechanisms are based on the Integrity code Reporting Policy that urges employees and third parties to report any concerns they may have regarding business conduct in relation to the Integrity code, either through a Compliance Officer or through the Signify Ethics line. The Signify Ethics line enables employees and third parties to report a concern either by telephone or online via a web intake form. All concerns raised are consistently registered in a single database and are investigated in accordance with standardized investigation procedures in a prompt, independent and objective way as specified by the Reporting Policy.

Awareness and training on the Signify Ethics line is part of the regular training and awareness measures of the compliance team. All employees with access to our digital learning platform will have to participate in a mandatory e-learning which includes a section on the Signify Ethics line. For manufacturing sites, awareness of available reporting channels is supported through posters promoting the Ethics line and face‑to‑face training sessions. Once a complaint is registered, independent investigators become involved, separate from management, ensuring an unbiased review. The findings from investigations frequently lead to remedial actions aimed at strengthening controls or processes, preventing future misconduct.

The stipulations of the Reporting Policy contain explicit wording to ensure that employees who report violations in good faith are protected from retaliation, in alignment with the Directive (EU) 2019/1937 of the European Parliament and of the Council. This applies to employees, and, in some cases, third parties connected with the reporter. Any measure of retaliation is a serious violation of the policy, leading to disciplinary action against those responsible. This clear commitment to non-retaliation emphasizes the importance of a safe reporting environment and Signify’s commitment to protecting those who come forward with concerns.

G1 -3 - Prevention and detection of corruption and bribery

The basis of corruption prevention is risk assessment. Based on objective data points, countries are categorized as having a high, medium or low risk of corruption. Countries with a high and medium risk must train their country organization on corruption prevention once a year and countries with a low risk every two years. Anti-corruption training is assigned to the country organizations via the Training Tracker which is accessible to all local Compliance Officers. The Training Tracker lists the functions of the Group to be integrated into the local anti-corruption training of the country organization. The functions are assigned by Corporate Legal Compliance on a risk-based approach. The approach is that all employees who have contact with external business partners or authorities are in scope to receive anti-corruption training. In addition to anti-corruption, compliance trainings also include key topics such as anti-money laundering, antitrust, privacy, and export controls. Also, new employees are required to complete mandatory onboarding training containing a section on anti-corruption upon joining. By maintaining this process, we ensure that all of the most at-risk functions are comprehensively covered by our training programs. Employees in at‑risk functions were required in 2025 to complete two mandatory integrity-related e‑learnings: the “Integrity Code Awareness" training, designed to strengthen understanding of our company policy, which achieved a completion rate of 95% across the targeted population, and the “Speak Up” training, which provides guidance on our reporting channels and expectations for raising concerns, with a completion rate of 96%.

This process is based on Signify's Business Control Framework (BCF), setting the standard for risk management and business controls in the company. The objectives of the BCF are to maintain (i) integrated management control of Signify's operations to ensure the integrity of the financial reporting and related disclosure, and (ii) compliance with applicable laws and regulations. Signify has designed its BCF based on the framework established by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Signify regularly evaluates and improves its BCF to align with business dynamics and good practices.

As part of our continuous commitment to corporate governance and transparency, we have updated the categories of violations of our Integrity Code to align with the requirements of the Corporate Sustainability Reporting Directive (CSRD). While these categories were not fully aligned with CSRD in 2024, as of January 1, 2025, our new classification is composed of categories that meet CSRD standards.

The primary financial risk associated with governance issues is the imposition of fines for non-compliance with anti-bribery, anti-corruption, and other regulatory requirements. Additionally, non-compliance can result in disqualification from participating in public tenders. These factors can have a significant financial impact on our business, highlighting the importance of our rigorous compliance and risk management practices.

In 2025, no convictions or fines were imposed on Signify for violations of anti-corruption or anti-bribery laws, reflecting our strong commitment to upholding the highest ethical standards.

G1-4 - Confirmed incidents of corruption and bribery

Human resources
The most reported concerns were related to human resources, representing 58% of the total cases reported (55% in 2024). This category includes concerns that, for example, related to equal and fair treatment, harassment, or other human resources related topics.

Business integrity
The second most reported type of concern relates to business integrity. This includes conflicts of interest, fraudulent disbursements or any other fraudulent suspected behavior. The number of complaints reported in this segment represents 28% of the total cases reported in 2025 (29% in 2024).

Security
In 2025, the number of reported cases relating to Security, including IT increased slightly. This category represents 11% of the total cases reported in 2025 (9% in 2024) and relates, for instance, to concerns about unauthorized use of the company’s assets, theft, cyber security or other IT-related concerns.

Substantiated concerns
At the start of 2025, 32 cases were open (2024: 62), and during 2025, a total number of 320 cases were reported (2024: 276). As per December 2025, 43 cases were open (2024: 32). This means that during 2025, we closed 309 cases (2024: 306). Of these 309 cases, 117 were found to be substantiated (2024: 132), which represents 38% of the closed cases.

Substantiated cases involving employees are followed up with remediation actions. These actions can include additional measures, such as training, strengthening of internal controls, creation of additional policies or other measures that aim to promote or enhance a culture of business compliance.

Corrective actions can also take the form of disciplinary action. In 2025, Signify applied disciplinary actions to employees ranging from training and coaching to verbal and written warnings and to termination of employment, depending on the severity of the matter.

Furthermore, when substantiated cases involve external parties, such as suppliers or business partners, Signify reserves the right to terminate business relationships. For instance, in cases of fraud, corruption, or other serious breaches of ethical standards, the company may cease all collaboration to safeguard its integrity and maintain trust with stakeholders.

Business conduct with suppliers and value chain

G1-2 - Management of relationships with suppliers

Signify takes a comprehensive and proactive approach to managing its relationships with suppliers, focusing on mitigating risks across its value chain, aimed at enhancing sustainability through – amongst others – its Supplier Sustainability Declaration (SSD) and its risk assessment. For more details on engagement with suppliers, see subsection 5.3.2, S2 Workers in our value chain.

Political influence

G1-5 - Political influence and lobbying activities

The Signify Responsible Advocacy Policy outlines the company's commitment to conducting business with integrity and transparency, emphasizing neutrality in political matters by refraining from making financial or in-kind contributions to political candidates or parties. This policy ensures that Signify remains impartial, focusing instead on advocating for sustainable practices, energy efficiency, and climate action through active participation in industry associations and collaboration with policymakers.

The Signify Climate Transition Plan, released in June 2024, is a comprehensive strategy aimed at driving the transition to renewable energy, reducing carbon emissions, and promoting sustainability across all our global operations. This plan sets ambitious targets for achieving net-zero emissions and outlines specific measures to enhance energy efficiency and support the global fight against climate change. This plan is also a response to our negative material impacts on climate change identified in our DMA process.

The Responsible Advocacy Policy and the Climate Transition Plan are closely connected, as both underscore Signify's dedication to sustainability and ethical business practices. By maintaining political neutrality and concentrating on advocacy efforts that support environmental goals, Signify ensures that its lobbying activities align with its broader mission to create a sustainable future and lead the industry in climate action.

To do so, we commit to annually review the public engagements of all the associations in which we are members, in alignment with our internal Public & Government Affairs policies, on issues such as energy efficiency, climate policy, and the global energy transition. This will allow us to identify and take action on any potential misalignment with our own advocacy in favor of global climate action. This process is a shared responsibility between the Global Head of Public & Government Affairs, the Head of Standards & Regulations and the Head of Sustainability. None of these executives, nor any members of the Board of Management and Supervisory Board, held a comparable position in public administration in the two years preceding their appointments.

At Signify, we recognize that addressing complex sustainability challenges requires coordinated action and long-term partnerships. By leveraging shared expertise and influence, we aim to drive systemic change and deliver measurable impact.

All our businesses are actively engaged in a range of global sustainability initiatives and frameworks. These include participation in high-profile platforms such as:

• New York Climate Week

• London Climate Action Week

• United Nations Climate Change Conference (COP30)

• United Nations Global Compact (UNGC)

• International Energy Agency’s Annual Global Conference on Energy Efficiency

In alignment with our Responsible Advocacy Policy, Signify did not make any financial or in-kind contributions to political candidates or parties in the reporting period. We also ensure that associations we are a member of are not making political contributions by following a rigorous monitoring process.

Our advocacy activities are concentrated on several key areas that align with our Climate Transition Plan:

1. Energy efficiency: we advocate for stringent global energy efficiency standards that reduce energy consumption and carbon emissions. We support regulations that promote the adoption of energy efficient lighting solutions, contributing to our renewable energy commitment;

2. Climate action: we back comprehensive climate policies aligned with the Paris Agreement, advocating for frameworks that facilitate rapid decarbonization across all industries;

3. Sustainability: we engage in policy discussions to promote circular economy principles, aiming to minimize waste and optimize resource use throughout the product lifecycle.

Signify amplifies its advocacy messages through active membership in various industry associations. These collaborations help us promote sustainable practices and influence policies that support our goals. Our key memberships include:

• The Zhaga Consortium: defining luminaire interfaces supporting circularity;

• Lighting Europe: promoting the European lighting industry's interests;

• IEC TC 111 and IEC TC34, WG24: focusing on environmental standardization for lighting products and systems;

• The Corporate Leaders Group Europe: advancing the Green Growth Partnership and the We Mean Business coalition;

• The Climate Group: hosting Climate Week NYC in partnership with the United Nations General Assembly;

• European Alliance to Save Energy (EUASE): driving the adoption of the EU’s Energy Efficiency Directive (EED) and Energy Performance of Buildings Directive (EPBD).

Through our participation in these groups, we work collaboratively with industry leaders, policymakers, and experts to promote sustainable lighting solutions and advocate for policies that align with our renewable energy and sustainability goals.

Signify is registered in the EU Transparency Register (REG Number: 943095936679-05) underscoring our commitment to transparent and accountable lobbying activities. This registration ensures that our interactions with EU institutions are conducted openly, reflecting our dedication to ethical advocacy.

Climate change ESRS E1

Signify adheres to the five key GHG accounting and reporting principles of the GHG Protocol (GHGP) Corporate Accounting and Reporting Standard:

• Relevance - the principle of relevance is used for selecting the appropriate GHG inventory boundary that reflects the substance and economic reality of the company’s business relationships, determined by the characteristics of the company, the intended purpose of information, and the needs of the users;

• Completeness - all relevant emissions sources within the chosen inventory boundary need to be accounted for so that a comprehensive and meaningful inventory is compiled;

• Consistency - the consistency principle is to ensure the consistent application of accounting approaches, inventory boundary, and calculation methodologies is essential to producing comparable GHG emissions data over time, to allow trends analysis and assess the performance of the reporting company. If there are changes in the inventory boundary, methods, data or any other factors affecting emission estimates, they need to be transparently documented and justified. Signify defines a significance threshold of 5% for recalculation, that is a cumulative change of 5% or larger in the total base year emissions (tCO₂e), in line with the Science-Based Targets Initiative (SBTi) Target Validation Protocol’s threshold of significance;

• Transparency - relates to the degree to which information on the processes, procedures, assumptions, and limitations of the GHG inventory are disclosed in a clear, factual, neutral, and understandable manner based on clear documentation and archives (i.e., an audit trail). Signify’s GHG emissions are assured by an independent third party on the basis of “Reasonable Assurance”;

• Accuracy - data should be sufficiently precise to enable intended users to make decisions with reasonable assurance that the reported information is credible. GHG measurements, estimates, or calculations should be systemic, and the quantification process should be conducted in a manner that minimizes uncertainty.