Certificates

Material impacts, risks, and opportunities

We are dedicated to ensuring the safety and well-being of our employees. With operations spanning 16 countries, we recognize the need to proactively manage occupational risks wherever we operate. In our production facilities, employees face exposure to noise, heat, and emissions, as well as risks related to handling heavy machinery. Each of these operational challenges has the potential to impact the health of our employees. Moreover, global climate change may further increase heat stress risks, making adaptive safety measures essential. Finally, in addition to physical risks, employees can face mental health challenges linked to stress and fatigue. By prioritizing the health and safety of our employees, we also mitigate potential risks that might disrupt our business operations and harm our reputation. Once again, our responsibility and our performance are deeply interrelated.

The following are some of the health and safety impacts, risks, and opportunities identified in our double materiality analysis:

Material impacts:

• Production-related health risks: Employees are exposed to heat, noise, and emissions, which can impact long-term health. Climate change may exacerbate these risks.

• Work-related accidents: The accident rate for the paper and cardboard industry is 21.6 percent, while waste management has a rate of 47.1 percent, highlighting the need for strict safety protocols.

• Health and safety issues in the value chain: Employees face potential health and safety risks while working with starch and virgin fibers, as well as recycling.

Material risks:

• Unsafe production processes: Inadequate safety measures can lead to operational disruptions and reputational damage.

Our policies and measures – Health and safety initiatives

We comply with local occupational health and safety (OHS) regulations to ensure the highest standards of employee safety and well-being wherever we operate. To effectively address country-specific requirements, our OHS measures are managed locally at each plant rather than through a single, overarching group policy. This decentralized approach allows us to tailor safety initiatives to the specific legal, operational, and environmental conditions of each location. To ensure a safe working environment, we have implemented several key measures including: • Comprehensive health and safety training programs for employees at all levels. • Acquisition of relevant OHS certifications by our divisions – particularly ISO 45001 – to reinforce our commitment to high safety standards. • Development and implementation of site-specific procedures to address unique safety concerns. • Employment of dedicated health and safety professionals at sites to oversee compliance and risk management. • The development of a group-wide Sustainability Social Roadmap, which began in 2024 with the identification of key performance indicators (KPIs) for a wide variety of social factors – including health and safety.

Each division within Prinzhorn Group has specialists designated locally that possess in-depth knowledge of their respective sites and national regulations. For instance, Dunapack Packaging and Hamburger Containerboard have safety officers at every site, ensuring the direct oversight of safety protocols. We also maintain local monitoring systems to ensure compliance with OHS regulations and standards, conduct regular workplace evaluations, and carry out risk assessments to mitigate potential hazards.

Employee feedback

Health and safety topics came up as an improvement area in the Employee Engagement Survey in the Dunapack Packaging division in 2023. As a consequence, the Improving Working Conditions project was initiated and delivered in 2024 at the group level. The project equips local management with a catalog of possible solutions for a wide variety of challenges, including health and safety. By referring to the catalog, managers can make informed decisions to improve working conditions. Starting in 2025, we will extend the Employee Engagement Survey to Prinzhorn Holding, as well as the Hamburger Containerboard and Hamburger Recycling divisions. This broader scope will provide a more comprehensive understanding of employee perspectives on health and safety throughout the entire group and serve as the beginning of further measures in that regard. In addition to the Employee Engagement Survey, employees can report concerns related to health and safety through the group-wide whistleblower system, which is described in detail in the “Compliance, whistleblower protection and anti-corruption” chapter. Employees are also encouraged to communicate with their managers or HR contacts about health and safety issues. Additional reporting possibilities are in place on some sites as well. For example, every Hamburger Recycling site has a lockbox located in an area not covered by video surveillance to make it easier for whistleblowers to maintain their anonymity.

Supplier management

In addition to improving health and safety internally, we engage with external organizations to promote safe working conditions beyond Prinzhorn Group. As part of our preparations for the Corporate Sustainability Due Diligence Directive (CSDDD), we plan to engage with our suppliers on health and safety issues throughout our value chain.

Hamburger Recycling

In 2024, Hamburger Recycling implemented a health and safety directive across all locations, establishing minimum safety standards for the protective equipment, worker facilities, and social amenities provided to employees and visitors in all divisional entities. Where local laws set higher requirements, those stricter regulations take precedence. OHS representatives conduct regular audits to ensure the effective implementation of all aspects of the health and safety directive. The division also made additional investments at many sites to meet these enhanced standards. Plants in Bulgaria, Romania and Italy hold ISO 45001 certification, and there are plans to attain the certification in Slovakia in 2025. To ensure both safety and comfort, employees are actively involved in selecting protective gear, including safety clothing and footwear. In 2025, Hamburger Recycling plans to conduct many initiatives to improve working conditions as part of our group-wide effort to enhance employee wellbeing. Moreover, 100 percent of the Hamburger Recycling workforce is now covered by a health and safety management system, reinforcing our commitment to a safe and secure working environment.

Hamburger Containerboard

In recognition of local needs and geographical conditions, Hamburger Containerboard follows regional safety guidelines instead of a unitary, division-wide health and safety policy. Designated safety officers ensure adherence to these guidelines at each site. We prioritize continuous improvement on health and safety issues, and are committed to maintaining high standards, including ISO 450001, which has been implemented in Hungary and Türkiye. Paper production facilities present unique safety challenges, such as handling high-temperature equipment, managing dust exposure, and ensuring machinery safety. To address these risks, Hamburger Containerboard has implemented stricter monitoring of accident rates, introduced additional safety training programs, invested in advanced protective equipment and fire prevention measures at high-risk sites, and expanded safety awareness campaigns.

Dunapack Packaging

Similar to Hamburger Containerboard, Dunapack Packaging does not have a division-wide OHS policy. Instead, each plant follows its own locally established OHS operations, tailored to national regulations to ensure compliance with relevant laws. To support this, safety officers are present at each site, and several locations in Hungary, Bulgaria, Türkiye, and Romania have implemented ISO 45001 certification. Designated OHS personnel and safety officers receive regular training to stay up to date with legal requirements. At each site, safety officers oversee occupational health and safety, manage ISO certifications, ensure compliance, and provide necessary training to employees. Additionally, we conduct quarterly safety audits across all divisional facilities to uphold safety standards. To further enhance workplace safety and employee well-being, Dunapack Packaging conducts a biannual Employee Engagement Survey, inviting all employees to share feedback on potential workplace improvements.

Our performance – Our targets

To strengthen our commitment to workplace safety, we have integrated health and safety into our Sustainability Social Roadmap. We are focused on three KPIs: • The number and rate of recordable work-related accidents within our workforce. • The number of lost workdays due to work-related injuries and fatalities. • Cases of work-related ill health, including fatalities, along with the number of sick leave days per employee annually. Starting in 2025, we will introduce a centralized dashboard to track and report KPIs across all divisions, enhancing transparency, accountability, and continuous improvements to workplace safety. As part of this initiative, targets will be developed in 2025 and will become mandatory from 2026 onward.