Sustainability at Comet is governed at the highest level. The Board of Directors oversees and approves the sustainability strategy, including climate-related topics, and reviews and approves the annual sustainability report. The Board is updated quarterly on progress toward sustainability targets, and its committees address specific aspects like eco-design and non-financial elements of executive compensation.

Execution of the sustainability strategy and climate-related transition is delegated to the Executive Committee, with the CFO accountable and acting as sponsor. Compensation incentives tied to performance against targets under the long-term incentive plan (LTIP) (see compensation report for details) encourage executives to pursue sustainability initiatives, profitable growth, and increased shareholder value.

The Executive Committee is supported by a Sustainability Board, chaired by the Vice President of Communications, Investor Relations & Sustainability, which coordinates actions across the company, monitors implementation, and ensures regular quarterly updates.

The Sustainability Board, composed of senior management, meets quarterly to review the progress of ongoing projects and discuss and propose new projects and targets, ensuring alignment with the group’s objectives. Operational implementation occurs in cross-functional project teams within divisions and corporate functions, driving climate- and ESG-related activities throughout the organization.

Our overall approach to sustainability, including our key priorities and commitments, is outlined in our Sustainability Policy. In 2025, Comet also published a new authorization framework, including ESG roles and responsibilities, designed to provide clearer guidelines on decision-making and the roles and responsibilities in relation to signatory authority. It ensures consistency and transparency across all departments and countries, allowing faster and more effective decision processes.

Sustainability and climate-related risks are managed within Comet’s comprehensive enterprise risk management (ERM) system. The Board of Directors delegates responsibility for assessing the effectiveness of risk management to the Audit Committee (AC) and responsibility for executing the risk management process to the CEO. The Group Head of Audit, Risk, and Compliance oversees the ERM process, compiles semiannual risk reports for the EC and AC and is also part of the Extended Executive Committee and a standing member of the Sustainability Board.

We maintain a comprehensive risk management system with clear definitions and processes, covering a broad range of aspects. This includes a regular review of the risks and opportunities for each division and for the central functions, in accordance with Comet’s Enterprise Risk Management (ERM) Policy. The policy’s intent is to establish the governance, methodology and process for proactively identifying, assessing and mitigating the key risks to Comet and thus ensuring the resilience and success of our operations. For a detailed description of Comet’s risk management, see "Risk management and internal control" in the governance report.

To estimate our financial exposure and vulnerability to global climate-related developments, the Sustainability Board periodically assesses, refines and validates climate-related risks and opportunities according to the principles recommended by the Task Force on Climate-Related Financial Disclosures (TCFD). Detailed information on our current assessment is provided in the section "Climate mitigation and adaptation". In 2025, we substantially expanded our analysis of physical climate risks; the section further outlines our strategic approach to risks and elaborates on Comet’s resilience to climate change and transition.