DISCLOSURE 102-30: EFFECTIVENESS OF RISK MANAGEMENT PROCESS

Board reviews and monitors the organization’s ESG risks and receives regular updates from the executive management.

Please see DISCLOSURE 102-15

If a risk is rated critical in the overall assessment, effective measures are then taken to reduce the probability, prevent its occurrence, or limit its implications. In 2020, one focus was the integration of the climate-related risks in the overall framework of risk management. climate-related risks

Within Sika, climate risks are essentially divided into two categories: (a) transitional risks, which are temporary risks connected with the transition to a low-carbon economy and (b) physical risks, or actual risks created by the occurrence of an event. The respective risks are mapped out in greater detail in the "Sustainability Report" section (see page 51), alongside related measures to reduce risk and the corresponding parameters.

The analysis of climate risks confirms how fundamental it is that critical dependencies and the external effects of climate change on Group strategy are well understood. Climate-change time horizons are challenging, as these horizons are much longer than political terms of office and investor outlooks and stretch far beyond typical planning cycles.

Sika is accelerating its efforts to drive the transition to a low-carbon economy. The Group continues to increase its use of renewable energy sources in its own operations and enables, through its products and solutions, customers to improve their environmental footprint. Sika will continuously launch products with environmental benefits combined with enhanced performance, including product (re-) formulations with less emitting materials and contributions to a circular economy.