Sustainability governance

Role of the administrative, management and supervisory bodies (GOV-1)

BREMER LAGERHAUS-GESELLSCHAFT ‑Aktiengesellschaft von 1877‑ (BLG AG) is a company governed by German law and as general partner of BLG LOGISTICS GROUP AG & Co. KG (BLG KG), is responsible for the management of the latter. The Board of Management and the Supervisory Board are separate in terms of personnel and work closely together within the dual governance system.

A competency profile ensures that all relevant knowledge and experience in relation to our business are represented in the Supervisory Board. This profile explicitly includes sustainability/ESG topics, in particular in the areas of climate change mitigation, energy management, diversity and equal opportunities, training and education, fair working conditions and human rights, as well as compliance. In the case of new appointments, a systematic assessment is made of which competencies should be further strengthened.

Detailed information on the composition of the governing bodies, their committees and further governance-related disclosures is provided in the declaration on company management, which is publicly available at www.blg-logistics.com/en/investors/ir-download-area.

Anchoring sustainability within the company and its processes

Our Chief Financial Officer, Christine Hein, is responsible for sustainability at the Board of Management level. The entire Board of Management and the Supervisory Board monitor the sustainability-related impacts of our business operations and review the effectiveness of the measures taken. Depending on their area of responsibility, individual members of the Board of Management are actively involved in the development of sustainability-oriented strategies, directives and targets; approval is granted by the entire Board of Management. During the last materiality assessment, the entire Board of Management was involved in selecting the topics depicted in the sustainability report; it approves the report each year before it is published. At the invitation of the City of Bremen – our largest shareholder – the Board of Management regularly took part in information events and workshops on sustainability-related topics such as diversity and climate protection, and incorporates the lessons learned into the corporate governance. All operational and strategic sustainability activities are pooled in the Group’s Sustainability Department, which reports directly to the Board of Management. Since 2023, human rights due diligence has also been anchored within this department through the role of the Human Rights Officer. Responsibility for social sustainability and, in particular, the interests of our employees lies with the Human Resources Corporate Department. At board level, the Human Resources Corporate Department is represented by our Labor Relations Director.

Sustainability management

The Corporate Sustainability Department is responsible for the control, development and implementation of our sustainability management, and is also responsible for preparing the non-financial statement. In addition to the overall sustainability strategy, the department manages the system under the German Supply Chain Act, calculates energy and carbon footprints, and supports cross-functional energy management. The team anchors sustainability topics and initiatives in the company and acts as a central interface. Its focus is on defining, implementing and measuring sustainability targets, including regular review and updating. Since 2024, progress toward target achievement has been reported on a quarterly basis. In the context of financial reporting, the Board of Management and senior executives are informed of progress on quantitative sustainability KPIs, which enables targeted management. The Sustainability Board (SSB) is also involved in helping to achieve the goals. It brings together representatives from the Sustainability, Legal, Insurance and GRC, Purchasing, Financial Services/Investor Relations, Human Resources, Safety and Environmental Protection and Integrated Management Systems corporate departments. In the reporting year, the reporting system, which was initially established within the German companies, was further extended to the three consolidated foreign companies. An overview of our sustainability targets and progress achieved up to 2025 is provided in the respective topic-specific chapters.

Integration of sustainability-related performance in incentive schemes (GOV-2)

The remuneration of the members of the Board of Management consists of fixed and variable components. The long-term variable remuneration also includes sustainability-related targets. The ESG component accounts for 30 percent of this remuneration component. Both environmental and social targets are taken into account: reduction of carbon emissions, achievement of a defined proportion of apprentices in the total workforce, and reduction of the LTIF rate (Lost Time Injury Frequency Rate).

Members of the Supervisory Board receive exclusively fixed remuneration that is not linked to performance. Further details on the structure of the remuneration systems are publicly available in the annual remuneration report at www.blg-logistics.com/en/investors/ir-download-area.

Statement on due diligence (GOV-3)

Risk management and internal controls over sustainability reporting (GOV-4)

Information on our risk management and our internal controls relating to sustainability reporting can be found in the chapter Opportunity and risk report.