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59 About Strategy and Governance Our People Our Business Our Outcome AppendixConflict MineralsIn accordance with Swiss law (CO 964j et seq. and the Ordinance on Due Diligence and Transparency in relation to Minerals and Metals from Conflicted-Affected Areas and Child Labor [DDTrO]), DKSH has adopted a Responsible Procurement Policy in 2022, which includes a specific section on minerals and metals from conflict areas, even though none of our Swiss Group companies import into or process the minerals and metals listed in Annex 1 of the DDTrO in Switzerland.Our policy requires us to carry out, at least once a year, a conformity check of our annual imports against the customs tariff numbers listed in the DDTrO and of the processing of these minerals and metals in Switzerland. The result of these checks is monitored by the Group%u2019s Risk and Compliance department. The most recent check confirmed that DKSH did not import or process any of these minerals or metals in Switzerland in 2023. However, even if the checks carried out did not reveal any import or processing of the minerals and metals listed in the DDTrO, and DKSH therefore falls out of scope of the DDTrO, it cannot be ruled out that certain products handled by us in our distribution businesses, or components in our manufacturing businesses, could contain elements of minerals or metals originating from conflict areas. DKSH uses the following instruments to identify such potential risks:%u2023 Submitting our supplier base to risk screening using specialized risk management software, which has been implemented in the second half of 2023.%u2023 Suppliers are required to comply with our Supplier Business Conduct Policy, which is integrated into our supplier agreements. Our Supplier Business Conduct Policy includes an obligation for suppliers to disclose to us any exposure to conflict minerals.%u2023 Promoting our Integrity Line, our confidential reporting tool, through which internal and external stakeholders can share with us concerns about to conflict mineral exposures with us.Indications of exposure to conflict minerals will trigger further due diligence checks and mitigation actions, as appropriate. The above risk screening process will be fully implemented in 2024. In the course of 2023, DKSH has not become aware of any conflict minerals exposure triggering the due diligence and reporting obligations under the CO and the DDTrO. Business Unit-Specific Procedures Our Business Unit Performance Materials operates higher upstream in the supply chain and closer to the origins of raw materials and ingredients. As such, it has taken steps to perform a more elaborate screening and assessment process for suppliers of specialty chemicals and food ingredients. It does so by using the collaborative EcoVadis platform in line with its strategic priority of being a sustainable partner in the value chain. This step assures that we work with responsible suppliers with the same sustainability ambitions. Working in partnership with EcoVadis, the Business Unit has activated its Responsible Suppliers Program around the globe. As part of these endeavors, we assess suppliers for market-specific and industry-specific corruption, human rights, and environmental risks with an EcoVadis solution. High-risk and high-criticality suppliers are invited to a more elaborate assessment by applying the EcoVadis Ratings methodology, scoring system, and corrective action plans (CAP) procedures. At the same time, we share our knowledge and coach them on advancing their sustainability-related efforts.In 2023, 4,383 suppliers have been screened, 1,217 of which have already been rated through the EcoVadis assessment. Overall, 102 unique suppliers have been identified as top priority with high-risk and high criticality. So far, we have invited 39 of these suppliers to continue with our coaching program and to initiate their EcoVadis assessment.%u2023 GRI 414-2Creating a More Sustainable Product PortfolioWe are working diligently to identify and address human rights and environmental risks in our supply chain. In response to customer demands, our Business Units Performance Materials and Technology have set the strategic target of continuously offering a more sustainable product portfolio. %u2018Sustainable products%u2019 means products that are, for example, produced in energy-efficient conditions, upcycled, biodegradable, or contain sustainable palm oil. We obtain feedback from our market teams, e.g. from the product management team and the business development and sales teams, or proof documentation from our suppliers to identify these products and support the %u2018sustainable product%u2019 claims. We actively track which of our products can be identified as sustainable with the aim of steadily increasing the share of sustainable products in our product portfolio. Customers of Business Unit Performance Materials also have the opportunity to filter for the sustainable products in our portfolio on our customer portal, DKSH Discover.