Materiality analysis

As part of its regular review of material topics, Rieter updated its materiality assessment in 2025 to further sharpen its focus and better reflect its current sustainability context.

The assessment serves as the foundation for Rieter’s sustainability reporting and strategy with the goal to align the company’s material topics with stakeholder expectations. It is a critical tool to help prioritize sustainability topics and allocate resources to areas where they can generate the greatest impact.

This process is a crucial step toward becoming an organization that is resilient and responsible, achieving sustainable value creation for all stakeholders.

Methodology

Part of the double materiality assessment involved identifying and prioritizing relevant sustainability topics both from a financial perspective (impacts on Rieter) and from an external impact perspective (impacts of Rieter on the environment and society). This approach is based on regulatory provisions and, in particular, on those of the European Sustainability Reporting Standard (ESRS).

The process started with in-depth desk research to understand Rieter’s sustainability context. Research considered the business model, operational activities, geographical presence and value chain exposure, as well as key stakeholders and sustainability commitments.

The reviewed information came from both internal and external sources:

Internal sources:	External sources:
Strategy documents	ESG ratings and benchmarks (MSCI, Sustainalytics, CDP and EcoVadis)
Company risk evaluation	Publicly available risk analysis and frameworks on biodiversity loss (WWF biodiversity risk filter), water stress and scarcity (Aqueduct Water Risk Atlas) and climate transition risks
Regulatory requirements	Sustainability frameworks
	Regulatory and industry trends

The initial research phase allowed for a preliminary mapping of sustainability risks and opportunities relevant to Rieter and its broader ecosystem. Furthermore, a long list of potential material topics was created, which was primarily based on those set out in the general requirements of the ESRS and tailored to Rieter’s specific context.

ESRS topics that were not relevant because they lack applicability to the business model, sector or geographical footprint were excluded.

The remaining topics were subsequently reviewed based on their financial and impact materiality. The same impact scale was applied to both the financial and impact materiality assessment as well as the general risk assessment. As part of this step, stakeholder interviews were conducted to capture insights from individuals with diverse perspectives and expertise.

These interviews were aimed at identifying risks and opportunities of strategic relevance and understanding stakeholder expectations.

Internal stakeholders:	External stakeholders:
Members of the Board of Directors	Financial advisors
Group Executive Committee and senior management	Customers and business partners
Global department heads with functional responsibilities (e.g. supply chain, logistics, field service or sales)	Industry associations and sector experts Academia
Site managers and representatives, e.g. operations, local facility management or Environment, Health and Safety (EHS)
Risk and compliance representatives

Material topics

The outcome of the materiality assessment was visualized in a matrix, which illustrates the perceived risks and opportunities, as well as their strategic relevance. The materiality assessment was reviewed by the Sustainability Committee, subsequently endorsed by the Group Executive Committee and formally approved by the Board of Directors.

Based on the results of the double materiality assessment, a set of sustainability topics were identified as material to Rieter’s long-term value creation and the company’s broader environmental and social impacts.

Among the key environmental topics, energy-efficient products, climate action and the development of circular products emerged as priorities, highlighting the company’s commitment to reducing its environmental footprint and supporting customers with resource-efficient products and solutions, as well as advanced recycling technology.

In the social area, material issues included employee health and safety, a culture of belonging and growth and the fair treatment of workers across the value chain.

From a governance perspective, ethical business conduct and anti-corruption measures were identified as essential to fostering partnerships built on trust.

Material Topic	Definition
Environment
Climate action	Rieter mitigates operational risk and ensures long-term cost efficiency, reducing its emissions and improving energy performance across its sites.
Energy efficient products	Rieter develops energy-efficient spinning technology, thereby driving customer value and helping to decarbonize the value chain.
Circular products, enabling sustainable fiber processing	Rieter captures new market opportunities by developing circular products that enable sustainable fiber processing.

Social
Health and Safety	Rieter protects its workforce and boosts productivity by prioritizing the health and safety of its employees.
Culture of belonging and growth	Rieter creates an environment in which employees feel valued and supported in their growth, thereby strengthening talent retention and organizational performance.
Workers in the value chain and human rights	Rieter upholds human rights and promotes fair labor practices across its value chain to manage risks and support responsible sourcing.

Governance
Anti-corruption	Rieter enforces comprehensive anti-corruption measures to safeguard operations in high-risk regions and ensure integrity across all business practices.
Ethical conduct	Rieter upholds business integrity by promoting transparency in partnerships and maintaining responsible practices throughout its operations.