Breitling Sustainability Mission Report 2023

SUSTAINABILITY

THE 2023 MISSION REPORT

WE’RE A #SQUADONAMISSION TO DO BETTER

INTRODUCTION

MISSION STATEMENT

WE’RE A #SQUADONAMISSION TO DO BETTER

At Breitling, we are committed to working within our sphere of influence to be a part of practical solutions that address sustainability, the defining challenge – and opportunity – of our time. This third annual Sustainability Mission Report continues our commitment to transparently report on outcomes related to each of the objectives we have identified for our mission.

In Product, we have strengthened our commitment to creating beautiful products and experiences with better materials, better manufacturing, and better packaging. We have continued to implement the road map established by last year’s release of the proof-of-concept Super Chronomat Automatic 38 Origins – Breitling’s first traceable watch and to onboard even more suppliers to our sustainability efforts.

In Planet, we are excited to share our carbon reduction road map which is aligned to the Science Based Targets initiative (SBTi) Corporate Net-Zero Standard. In close collaboration with global stakeholders across our value chain, we have developed this clear and time-bound plan to achieve absolute emissions reductions in line with the Paris Agreement goals by 2032 and 2050.

On the People side, we have made a significant step towards inclusivity, earning the “Universal Fair Pay Analyst” award from the FPI Fair Pay Innovation Lab, becoming the first in the watch industry to receive this accolade on a global level. And, we launched our first edition of the Breitling Climate Week, a week’s worth of hands-on activities across our Switzerland-based operations to engage our employees firsthand in meaningful actions to support nature in our local communities. Our Climate Week activities are happening again right now, as we launch this report.

There’s so much more to come and, as in each year, we will report on key indicators and outline our objectives in line with the guidance of the World Economic Forum (WEF)/International Business Council (IBC) Stakeholder Capitalism Metrics and Task Force on Climate-Related Financial Disclosures (TCFD).

These achievements are a testament to the work of our Squad on a Mission to do better, and this is just the beginning of our efforts to shape a legendary future together.

GEORGES KERN, CEO

AT BREITLING, SUSTAINABILITY IS NOT AN EXPECTATION WE FULFILL. IT’S A MISSION WE’RE ON. WHY DON’T YOU JOIN US?

PLANET

We’re reducing our environmental footprint by working to achieve fewer carbon emissions across our value chain, reducing energy consumption, shifting to clean energy, and eliminating plastic waste. We align our efforts with key international frameworks and support international projects that work to reduce or remove greenhouse gas emissions and are working to address our biodiversity and water impacts.

PEOPLE

We keep improving working environments for all the people in all our squads. We take action on equal pay and provide training, coaching, and volunteering opportunities. Our efforts in these areas have been recognized with the “Top Employer – Certified Excellence in Employee Conditions” award for Switzerland and the global “Universal Fair Pay” award for equal pay.

PROSPERITY

We’re creating shared value with the local communities we work globally, together with our partners Swiss Better Gold Association, Qhubeka, Solar Impulse Foundation, Ocean Conservancy, and SUGi to support social inclusion and environmental recovery.

PRODUCT

We’re improving the social and environmental impact of our products and services, sourcing artisanal and small-scale gold, lab-grown diamonds, and upcycled packaging and straps. We are rolling out blockchain-backed provenance records and engaging our suppliers to increase sustainability performance.

PROGRESS

We’re sharing our progress with everyone. We transparently report on our sustainability progress in an annual Sustainability Mission Report, the first in the industry aligned to the WEF IBC Stakeholder Capitalism Metrics.

MISSION METHODOLOGY

MATERIALITY ANALYSIS 2022

Since formalizing Breitling’s sustainability approach in 2020, we conducted our third materiality assessment in 2022. Our materiality assessment lays the foundation for our goal to guide and lead the dream of a casual, uplifting, and meaningful life through sustainable products and a tasteful yet approachable luxury style. As indicated in our inaugural materiality assessment process, we conduct a double materiality assessment, which involves internal and external stakeholders, on a triennial basis. This most recent assessment was conducted among internal stakeholders and provides an opportunity for us to assess the relevance of our approach. Breitling

During the annual internal stakeholder materiality assessment (a double materiality assessment is conducted at least every three years), we collaborate with our stakeholders through a combination of an online survey and follow-up interviews. This year’s materiality assessment confirmed that we are on the right path to fulfilling our stakeholders’ demands across our five pillars – Product, Planet, People, Progress, and Prosperity. With that said, slight priority changes occurred which need to be considered. In the current reporting cycle, we have observed an upward shift in climate change. This reflects our efforts and our focus on the Planet pillar for this year’s report. Further changes can be seen in the double materiality matrix.

In the past assessment there were fluctuations in the material topics. These fluctuations are in the range of expectations and do not fundamentally shift the importance assigned at the outset of our assessment to these topics. According to the priorities established in the first assessment, we have moved with greatest urgency on our Product pillar, followed by the Planet pillar this year and the People pillar in the ongoing (FY24) reporting cycle. In each assessment, we also invite any new material topic additions. None have been suggested in this review cycle.

In this reporting cycle, approximately 50 participants provided input in the assessment. As the participants represented a range of business functions and international locations, we consider this sample to be representative of Breitling and the business/market environment.

The material topics identified in 2020 will serve as guidance throughout this report and its respective pillars. They are reported on in the most relevant manner in each chapter concerned. Being aware of incoming regulations, we regularly review processes accordingly to ensure best-practice methodologies in the step of formulating sustainability objectives and priorities and anticipate our next double materiality assessment in the coming year, and as based on the schedule originally established in our 2021 inaugural Sustainability Mission Report. Detailed information on the methodology of our materiality assessment can be found on page 6 of our 2021 Sustainability Mission Report

MATERIAL TOPICS AND RELATED UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (SDG s )

SOCIAL IMPACTS ALONG THE VALUE CHAIN

Promoting the well-being and economic development of communities and workers affected by our business, preventing exploitation, and contributing to inclusive growth.

Related SDGs: 1, 8, 10, 12, 16

PRODUCT INTEGRITY

Managing the design and life cycle of our products to promote quality assurance, safety, traceability, transparency, and animal welfare.

Related SDGs: 12

CUSTOMER AND COMMUNITY ENGAGEMENT

Ensuring customer satisfaction through prioritizing privacy, security, and attentive service while engaging responsibly in public relations, lobbying, marketing, and advertising.

Related SDGs: 8, 17

ENVIRONMENTAL IMPACTS ALONG THE VALUE CHAIN

Identifying and mitigating the environmental effects of energy usage, natural resource consumption, biodiversity, water, and waste along our value chain.

Related SDGs: 12, 13, 15, 17

DIVERSITY AND INCLUSION

Promoting fairness throughout our business, building awareness of unconscious bias, and championing diversity through inclusive employment practices.

Related SDGs: 5, 10

EMPLOYEE ENGAGEMENT, WELL-BEING, HEALTH, AND SAFETY

Providing training, development, and well-being for employees and engaging them in our sustainability journey.

Related SDGs: 3, 8

CLIMATE CHANGE

Limiting our impact on the environment by accounting for and managing our emissions and setting environmental targets.

Related SDGs: 7, 9, 13, 15

BUSINESS ETHICS AND GOVERNANCE

Addressing ethical and legal issues including internal controls, transparent management practices, and ensuring no fraud, corruption, bribery, or anti-competitive behavior.

Related SDGs: 8, 16

RESPONSIBLE HANDLING OF DATA

Adopting best practices when it comes to the use of online data, ensuring security and customer privacy.

Related SDGs: 9, 16

BUSINESS MODEL RESILIENCE

Ensuring the resilience of our supply chain and long-term business plan by addressing social, environmental, and political issues.

Related SDGs: 12

THE SUSTAINABLE DEVELOPMENT GOALS

Adopted by all United Nations (UN) member states in 2015, the UN Sustainable Development Goals, or SDGs, are a “universal call to action to end poverty, protect the planet and improve the lives and prospects of everyone, everywhere.” They are part of the 2030 Agenda for Sustainable Development, which requires ambitious action in order to deliver on the goals by 2030.

In developing our materiality assessment, sustainability strategy, and sustainability reporting, we continually reference the UN SDGs to align our actions with those of the 2030 Agenda for Sustainable Development. As a part of our overall commitment, we are also a signatory of the United Nations Global Compact (UNGC).

As in the past materiality assessment, we have included the SDGs within our scope.

Being aware that not everyone is equally familiar with the SDGs, we see this as an opportunity to first of all continue to raise awareness of these and the assessment as guidance regarding the sentiment towards the SDGs at Breitling. At the same time, it allows us the opportunity to take a pulse check of these key global topics for our internal stakeholders. We will continue to refresh this assessment on a regular basis and strive for ever greater alignment of our own sustainability objectives to those of the SDGs.

SDG 8

Decent work and economic growth

HIGHER

SDG 7

Affordable and clean energy

MEDIUM LEVEL OF IMPORTANCE

SDG 6

Clean water and sanitation

SDG 12

Responsible consumption and production

SDG 5

Gender equality

SDG 13

Climate action

SDG 9

Industry, innovation and infrastructure

SDG 17

Partnerships for the goals

SDG 4

Quality education

SDG 10

Reduced inequalities

SDG 3

Good health and well-being

SDG 16

Peace, justice and strong institutions

LOWER

SDG 14

Life below water

SDG 11

Sustainable cities and communities

SDG 1

No poverty

SDG 15

Life on land

SDG 2

Zero hunger

PRODUCT

CREATING POSITIVE IMPACTS ALONG OUR VALUE CHAIN

We drive positive change by creating beautiful products and experiences with better materials, better manufacturing, and better packaging.

Social impacts along the value chain

Promoting the well-being and economic development of communities and workers affected by our business, preventing exploitation, and contributing to inclusive growth.

Product integrity

Managing the design and life cycle of our products to promote quality assurance, safety, traceability, transparency, and animal welfare.

Environmental impacts along the value chain

Identifying and mitigating the environmental effects of energy usage, natural resource consumption, and waste along our value chain.

Image source: © Breitling SA

SOCIAL IMPACTS ALONG THE VALUE CHAIN OUR COMMITMENT TO ARTISANAL AND SMALL-SCALE GOLD MINING

In the reporting cycle, we deepened our engagement in artisanal and small-scale gold mining (ASGM). In doing so, we continued to directly engage with the communities surrounding these operations and understand the ways in which we as a system member can support their ongoing development, guided by their own insight and requirements.

We also dedicated time to better understanding the system of ASGM sourcing in Latin America, participating in multi-stakeholder missions led by the Swiss Better Gold Association and the United States Agency for International Development along with industry colleagues. During these missions, we experienced firsthand the challenges of ASGM sourcing in several key regions. These experiences have underlined our commitment to sourcing ASGM and transparently reporting on our engagement in the sector.

Breitling remains committed to sourcing artisanal and small-scale gold and will continue to report transparently on key outcomes in its gold sourcing on an annual basis in its Sustainability Mission Report. In this reporting cycle we specifically reference activities related to the Minera Yanaquihua S.A.C. (MYSAC) in Peru and the Touchstone mine in Colombia.

MYSAC

The MYSAC mine in Arequipa, a southern region of Peru, extracts ore which is then processed at their processing plant. In addition to the ore from the mine, Yanaquihua also collaborates with artisanal and small-scale gold miners working within their concession, processing both together to maximize yield. Breitling has been sourcing gold from MYSAC since December 2021. On May 6, 2023, a fire at the Yanaquihua mine resulted in the deaths of 27 miners, while a further 175 miners were saved on the same site by the mining operation rescue teams.

As we consider our value chain relationship to encompass the full scope of the operations, we have built upon our existing relationship with MYSAC to engage with them in the wake of this tragedy, by which we have been personally deeply affected. We are working with our value chain counterparts to understand how we

may best support those impacted, including through the development of tailored support for ongoing economic development and social inclusion for the affected families. This tragic event unfortunately reflects the challenges faced in the ASGM sector. We are convinced that the approach in such circumstances is to actively engage to be a part of more positive developments in this sector which employs over 20 million people globally.

At the same time, we have been closely following investigations into the root causes of the accident which are ongoing by local authorities. Findings will inform future interventions to strengthen existing health and safety protocols. The MYSAC mine regularly underwent a range of audits related to technical criteria; environmental, health, and safety measures; human rights; environment; fraud and corruption; ethical and social standards; anti-money laundering; tax and local laws; and traceability, among others. These included on-site visits by a range of entities, including the refiner, Metalor, to which it sells its metal, Swiss Better Gold (SBG) specialists, who focused particularly on ASGM inclusion in the production of the mine, and other certifying bodies. MYSAC has worked to train miners, upscale their capacities, and foster formalization of artisanal miners. In addition to this, it took part in a pilot study focused on environmental impacts in the ASGM sector related to climate, biodiversity, and water. The findings of this study, conducted in cooperation with South Pole, have informed our carbon reduction road map with high-quality, primary data for our baseline.

Impact of our premium on ASGM communities

Through the distribution of our impact premium fund, which is paid on each gram of gold sourced, we have been able to support 100% of the construction of the Ispacas health center. This will support the rural communities of Alpacay and La Barrera near the MYSAC mine which operate in a remote location 3008 meters above sea level. It is estimated that the total number of beneficiaries will be approximately 6000, of which 51% are women. A total of 62% of these beneficiaries make their living from mining and 20% from agricultural activities. The beneficiaries include 34 children.

Currently, an estimated 20% of this population does not have access to health services. Most diseases reported today in the region are gastrointestinal and respiratory infections, as well as different skin diseases, all of which can be treated within the new center. The center will offer specialised health care in different medical areas, as well as nursing, dentistry, obstetrics, nutrition, and psychology.

Our impact premium also contributed to the installation of a wastewater treatment plant (WWTP) containing a Moving Bed Biofilm Reactor (MBBR) on the mining site. The plant recovers wastewater from the mine and treats it so it may be reused for irrigation or industrial purposes in the mining operations and the five mining camps (with a total population of about 1250 people). The MBBR, an effective system to treat wastewater demonstrating several economic and environmental advantages, can process 120 m3/day.

The use of the WWTP systemically contributes to a range of sustainability factors. It allows water to be reused on site, thus reducing the need for the transport of fresh water and related CO2 emissions. It considerably decreases the production of waste sludge and thus helps to eradicate viruses and bacteria, such as hepatitis, cholera, typhoid, among others, while also eliminating bad smells. Finally, the water treated by the WWTP will be reused for industrial purposes during the mining process and, as it meets Peruvian legal standards related to irrigation, it will also be used to maintain and cultivate green spaces on the mine site, as well as to water the dusty roads to contain and reduce dust contamination.

Touchstone

In the region surrounding the Touchstone mine, from which we have sourced gold since 2021, including it in the production of the Super Chronomat 38 Origins, a key need identified by the community and in our visits was educational access.

Generally, illiteracy rates in the region are high. It has also been strongly affected by the armed conflict which has led to an absence of state institutions, including educational facilities. The few children in this community who do attend school often walk long hours to study in other villages or abandon their home village and move to live with relatives in urban areas. Most adult inhabitants have not attended school and due to their lack of education and skills often work in informal sectors.

Based on this, in the reporting cycle a project to support a long-term education program in El Pescado was launched by Touchstone Colombia, supported by the impact premium generated by our gold purchases through the Swiss Better Gold Association. This longterm program aims to facilitate education for children,

A member of the local Pescado El Vereda community at a discussion about community engagement activities.

teenagers, and adults with the purpose of fostering skills and knowledge and achieving graduation within the national educational system.

The holistic program includes classes on subjects ranging from mathematics, physical education, computer skills, and social skills. Classes are held in the community house in the village which was supported by SBG in 2021. Furthermore, the primary school program was accompanied by a series of workshops for the children’s parents in the Escuela de Padres which sought to complement the learning process of the children by teaching their parents how to support them, including classes about nutrition and children’s health. During its first phase, the project also included an educational program for 16 employees of Touchstone Colombia, many of them former illegal miners, who had not finished their basic education. During the 2022 school year, different school grades were offered, with participants being graded before the program started to determine their level. In February 2023, 9 children and 22 teenagers and adults graduated from their respective category.

Following the first phase of this project, Touchstone Colombia stopped its operations. As a result, efforts to educate employees had to be concluded. However, both we at Breitling and SBG were committed to continuing the program and a second phase was recently launched in May 2023. In this phase, efforts are underway to ensure the continuity and resiliency of the project. To support this, Touchstone Colombia has, among other things, signed an agreement with the municipality and the schooling provider which establishes the eventual takeover of the education program by local authorities, ensuring continuation in the long run.

This second phase is being monitored by a professional in social project management who is a former member of the Touchstone team and will also maintain the connection among the community, the school, the municipality, and SBG for at least the next two years. This role is essential to ensure the long-term success of the project once it is assumed by the municipality. The second phase of the educational program that is currently running directly benefits 10 children and 20 teenagers and adults of the El Pescado community.

A further important activity in this second phase is the installation of solar panels in the community house where schooling and other community activities, such

as social gatherings and workshops on income generation, take place. The solar panels provide the necessary electricity given its remote location and lack of community resources. The solar panels were financed in full by SBG and will benefit the 22 families in the community. Community members will be trained in the functioning and the maintenance of the solar panels in order to raise awareness about the responsible use of resources and to create a sense of responsibility among the community members.

Direct beneficiaries of these activities to date include 10 children and 20 teenagers and adults of the Pescado El Vereda community. As the solar panels positively impact the community center, a further 22 families from the community also benefit from the installation of these as the center supports broader community activities.

Environmental impacts along the value chain are also a key consideration in our engagement with our suppliers and in our own operations. More information on this material topic can be found in the Planet chapter.

Better gold: value chain mapping

A mapping of our gold value chain shows its processing flow and the different means of sourcing employed. To meet our annual demand, Breitling sources from a pool of mines accredited by the Swiss Better Gold Association. In the current reporting cycle, the pool consisted of scrap generated from our prior use of gold from the Touchstone mine in Colombia and the MYSAC mine in Peru, both of which are Step 2 mines of the Swiss Better Gold Association and meet all SBG criteria.

In the current reporting cycle, the bulk of our Swiss Better Gold Association credit purchases are associated with the mass balance sourcing model, which facilitates fluidity of gold flows while ensuring proper traceability from the mine to refiner, as illustrated on the next page. The SBG impact premium (USD 1 per gram of gold) is applied to each gram of gold sourced in this and all sourcing models and is reinvested to support social, environmental, and technical assistance activities approved by local stakeholders and by the Swiss Better Gold Association.

Also, as indicated in our 2022 Sustainability Mission Report, we have expanded our mass balance sourcing to Swiss Better Gold Association Step 1 mines that are working to achieve full compliance with the estab-

lished criteria in this reporting cycle. While these mines do not yet qualify for the impact premium, we will issue a discretionary contribution of 0.50 CHF for each gram sourced. These funds focus on closing gaps identified in the accreditation process, be they related to social or environmental issues. Further details on our approach in this area will be provided in the 2024 Sustainability Mission Report.

As a member of the Swiss Better Gold Association, we see great value in establishing this precedent and supporting ongoing technical assistance activities through this approach. As these gold value chains are onboarded by Swiss refiners, our engagement works as an advance commitment for which future deliveries will be allocated to our overall net gold demand. This directly supports the development of responsible practices among ASGM providers for which capability upscaling implies a positive social and environmental impact for stakeholders. Outcomes of these activities, having only commenced in the ongoing reporting cycle, will be reported upon in the 2024 Sustainability Mission Report.

Moving forward, we intend to continue our engagement in helping less advanced mining operations to accelerate their positive ESG transformation and achieve SBG

criteria. Indeed, as we anticipate that approximately 10% of our gold will not ultimately be traceable to our final product in the near term due to current industrial standards which prohibit full-scope traceability among the most micro of components (as further detailed in the section “Product Integrity” of this chapter), we will consider exactly such operations for mission-oriented engagement in this sector in order to support progress at all stages of advancement.

Further to this, in the ongoing reporting cycle we will review further options for sourcing responsible ASGM beyond SBG. Subject to successful review, we will consider integrating further sources operating with other certifications or standards that meet our expectations in order to achieve positive social and environmental impacts along our value chain. In order to facilitate the ambitious gold segregation process underway, we are also reviewing options for high-impact industry collaboration.

In addition to the SBG impact premium, we have also allocated a portion of our internal carbon fund to support carbon “insetting” projects that help lessen the environmental impact of these mining operations through a discretionary contribution. More information on this may be found in the Planet chapter.

FULL SEGREGATION SCOPE FROM EXTRACTION TO PRODUCTION

MASS BALANCE SEGREGATION SCOPE

Mines in the accrediting and verification process (Step 1)

Breitling credit purchase for FY23 net weight gold demand: 397,657 gr

FY23 premium generated: 198,829 CHF

(Breitling discretionary contribution of 0.50 CHF/gr of gold)

Accredited mines eligible for premium (Step 2)

Breitling credit purchase for FY23 net weight gold demand: 333,996 gr

FY23 premium generated: 504,996 USD (Better Gold Fund Impact Premium of 1 USD/gr of gold)

Accredited traders (for export in some cases)

Refining

Production

Non-physical transfer

Traceable integration in supply chain

Additional discretionary environmental contributions: 100,000 CHF

FY23 purchase volume: 731 653 kg

FY23 purchase volume: 171 000 kg

PRODUCT INTEGRITY

In the reporting cycle, we have made fundamental progress in our efforts to ensure product integrity. A key aspect in this regard has been the release of the Super Chronomat 38 Origins, our first watch to trace its precious materials, gold and diamonds, to their origins. We are now working to apply these key principles across our collection by building upon this industry-leading precedent. To signify those products containing better gold and/or better diamonds, we have also introduced the Breitling Origins label.

We see traceability as the key foundation upon which to base our work related to sustainability across our supply chains. In addition to this, we work with our key suppliers, including our gold and diamond suppliers, on initiatives related to social and environmental impact. In our gold and diamond supply chains, we work with intermediary bodies such as the Swiss Better Gold Association to ensure regular fieldwork is conducted to assess progress on key aspects related to a range of factors including health and safety, community engagement, employee well-being, environmental impact reduction across a range of factors including climate, biodiversity and water, and other topics. Key value chain partners are detailed in our extended Sourcemap, which is publicly available

SOURCING & REFINING

MKS PAMP Castel S. Pietro, Switzerland

REFINING

Metalor Marin, Switzerland

PRODUCTION

PX Precinox La Chaux-de-fonds, Switzerland

PRODUCTION

WD

Argor Heraeus Mendrisio, Switzerland

FINAL ASSEMBLY

Breitling La Chaux-de-fonds, Switzerland

GROWING, CUTTING, POLISHING

Fenix Diamonds Gujarat, India

GROWING, CUTTING, POLISHING

ABD Diamonds Ahmedabad, India

MINING

Touchstone Mine Segovia, Colombia

EXPORTING

Grupo Altea Medellin, Colombia

MINING

MYSAC Mine Arequipa, Peru

GROWING

Diamonds Beltsville, MD, USA

The conduct of key Breitling stakeholders is guided by the Breitling ESG Policy, Supplier Code of Conduct, and Employee Code of Conduct. These are publicly available at www.breitling.com and based on key international guidance and instruments, including the OECD Guidelines for Multinational Enterprises, the International Labour Organization Core Conventions, the Universal Declaration of Human Rights, and the Ten Principles of the UNGC.

In addition to this, we also engage key direct suppliers in third-party ESG benchmarking on EcoVadis, a leading global provider of sustainability ratings across key dimensions: labor and human rights, ethics, environment, and sustainable procurement. Questionnaires are tailored to industry sectors and company jurisdiction and size and are assessed by international experts based on verifiable documentation. The results then inform sustainability road maps to continually improve performance of these factors across our supply chains.

In the reporting cycle, just over 75% of our direct suppliers for case, bracelet, and movement parts by spend – those we consider having highest priority from a materiality perspective – have been engaged to complete a baseline EcoVadis sustainability assessment across sustainability dimensions such as labor and human rights, ethics, the environment, and sustainable procurement that is tailored to industry sectors, company jurisdiction and size. Results are assessed by independent experts based on verifiable documentation. In the current reporting cycle there has been an average score increase among those completing the assessment from 49 to 53, of a maximum possible score of 100. The improvement in the overall average score reflects the advancements made by suppliers across all factors measured in the assessment. The results form the basis of sustainability road maps to improve performance moving ahead. No red flags in any of the areas listed above have been identified in the process. We have also integrated key indirect suppliers, who provide components related to processes beyond those of watch production, in the assessment process and will continue to expand the scope of this work.

Furthermore, within our own operations or suppliers assessed to date, we have not identified any significant risk of child labor or forced or compulsory labor. Breitling works with its partners in potentially high-risk areas, such as gold sourcing, to ensure that human rights are respected throughout the value chain and there is no presence of child labor. These objectives are regularly audited, including by supporting counterparts such as the Swiss Better Gold Association in the case of gold and platinum sourcing and SCS Global Services in the case of lab-grown diamond sourcing. We furthermore conduct in-person audits of relevant operations in order to ensure that our guidelines for sustainability are being met. We will continue to expand related efforts in this regard, guided by a risk-based approach.

We are continually working on an ongoing rollout of the EcoVadis assessment and overall sustainability improvement process across our business, integrating further business areas and even third-party suppliers into this approach. Led by the Breitling team and the Sustainability Manager charged with leading this supplier engagement, quarterly meetings are held with suppliers to ensure their progress and optimize our shared journey in a mutual learning and development process. What’s more, Breitling itself completes an annual EcoVadis assessment. More information about this and our performance is available in the Progress chapter.

“Sustainability has long been of importance to MRP in our supply of watch cases to Breitling. Through our collaboration with Breitling, we have been able to advance on key topics through a mutual exchange on best practice. In the past years, our Eco Vadis score has substantially increased, attesting to progress made across all scopes. ”

PATRICK HAUERT

“Sustainability thrives on collaboration and shared commitment. I am inspired by the dedication and partnership shown by our suppliers to measure and improve their progress. Meanwhile, we accompany each other on this journey, through regular exchanges on best practice across the full scope of sustainability. ”

BRICE BOISSONNEAULT, BREITLING SUSTAINABILITY MANAGER

CEo ANd CHAIRMAN oF THE BoARd oF dIRECToRS, MRP

#SQUADGOALS

In order to guide our efforts, we have established key targets that also contribute to the broader agenda established by the UN SDGs. Our product pillar goals specifically address SDGs 8 (Decent work and economic growth) and 12 (Responsible consumption and production) through our efforts to establish responsible business practices along the value chain. Further SDGs that we contribute to in this pillar in a secondary manner through projects supported along our value chain are 4 (Quality education), 5 (Gender equality), 6 (Clean water and sanitation), 9 (Industry, innovation and infrastructure), 13 (Climate action), 14 (Life below water), and 15 (Life on land).

RESPONSIBLE PROCUREMENT

Allocate 100% of our gold purchases to selected responsible ASGM production

Allocate 100% of our gold purchases to Swiss Better Gold Association gold

Allocate 100% of our platinum purchases to Swiss Better Gold Association platinum

Supplier sustainability engagement: continually engage at least 70% of our direct suppliers by spend in sustainability; integrate key indirect suppliers in FY23 as well

TRACEABILITY

Achieve 100% traceable gold by 2025 to support product integrity

Ongoing commitment

Target achieved, with over 75% direct suppliers now engaged and the onboarding of key indirect suppliers.

Under review

Target currently under review with potential timeline extension to support supply chain sourcing and related processes.

Source 100% lab-grown diamonds for all new products and ensure each supply chain contributor is accredited under SCS-007 Jewelry Sustainability Standard – Sustainability Rated Diamonds to ensure product integrity and traceability

SUSTAINABILITY PERFORMANCE

of FY26

Target updated: source 100% lab-grown diamonds for all new main collection products and ensure each diamond grower is accredited according to a relevant standard.

Achieve EcoVadis platinum medal (top 1% globally) FY23 End of FY28

Target date updated and reassigned to the Progress pillar to account for higher requirements due to category reclassification.

Improve the overall EcoVadis performance for suppliers by 15%

FY23

End of FY26

On track: We have improved the average score by 4 points from a baseline of 49. We aim to reach an average score of 61 by 2025. Deadline shifted to harmonize to reporting cycle.

KEY FACTS PRODUCT

To provide transparency in our sourcing practices, we have established our own reporting metrics focusing on the sourcing of gold, tungsten, tin, and tantalum (3TG) minerals, platinum group metals (PGM), gemstones, and other key materials. Breitling sources low volumes of these materials.

While this subject is not a part of the WEF IBC core metrics, conflict minerals are an important topic, for which issues such as child labor, human rights, or modern slavery could arise. Our due diligence and engagement activities will continue to focus on these aspects, along with the environmental impacts of these industries. Based on our risk assessments performed to date, we conclude that we do not have significant risk in terms of child labor or human rights related to sourcing and supply chain activities.

In the current reporting cycle, we worked with the following refiners for the production of gold and platinum group metals: Argor-Heraeus (accredited by the London Bullion Market Association [LBMA] as a Referee and Good Delivery Refiner and the London Platinum and Palladium Market as a Referee and Good Delivery Refiner, Swiss Better Gold Association cofounding member); Metalor (accredited by the LBMA as a Referee and Good Delivery Refiner, Swiss Better Gold Association cofounding member); PX Precinox (accredited by the LBMA as a Good Delivery Refiner, Swiss Better Gold Association member); and Varinor. Each refiner holds a Responsible Jewellery Council Chain of Custody and Code of Practices certification. Our disclosure of these value chain partners is a key aspect of our transparency measures. At the same time, we actively engage with our gold-refining business partners to assess due diligence measures and develop mutual exchanges on how we can optimize our shared efforts related to responsible sourcing including on topics positively related to social and environmental impact and traceability.

Tungsten, which is used in our oscillating weights, has been sourced from two suppliers which apply key frameworks of the Responsible Minerals Initiative, such as reporting according to the Conflict Minerals Reporting Template (CMRT) and applying key RMAP principles. We work with both suppliers to ensure annual disclosures according to the CMRT and to assess due diligence conducted along the supply chain. Additionally, a trace amount of tantalum can be found in our quartz movements and a trace amount of rhodium is added in the production of some components. To our knowledge, no tin is contained in our products. Further platings of precious metals and metals used in the production process might not be accounted for in the volumes reported below.

In the current reporting cycle, the only gemstones sourced by Breitling have been diamonds. Breitling suppliers of mined diamonds have

confirmed that all of them have been procured in accordance with the Kimberley Process Certification Scheme and the World Diamond Council System of Warranties. A total of 100% of lab-grown diamonds purchased have been produced by suppliers accredited under the SCS-007 Jewelry Sustainability Standard – Sustainability Rated Diamonds.

PLANET

TAKING ACTION TO PROTECT THE ENVIRONMENT

We’re reducing our environmental footprint by working to achieve fewer carbon emissions across our value chain, reducing energy consumption, shifting to clean energy, and eliminating plastic waste. We align our efforts with key international frameworks and support international projects that work to reduce or remove greenhouse gas emissions and are working to address our biodiversity and water impacts.

Environmental impacts along the value chain

Identifying and mitigating the environmental effects of energy usage, natural resource consumption, biodiversity, water and waste along our value chain.

Climate change

Limiting our impact on the climate by accounting for and managing our emissions and setting environmental targets.

Image source: © Breitling SA

Breitling employees at a 2022 Nature day event in the Wallis region of Switzerland.

TAKING ACTION WITHIN OUR SPHERE OF INFLUENCE TO REDUCE OUR IMPACT ON CLIMATE CHANGE

Since 2020, we have been working to measure and mitigate our environmental impact, including greenhouse gas emissions. Through concentrated efforts on key action areas aimed at reducing carbon emissions, we can align our efforts to the Paris Agreement goals and achieve an absolute reduction in emissions in line with the Science Based Targets initiative (SBTi) Corporate Net-Zero Standard.

ACTION AREAS

GOLD

Identify lower impact sources and support low carbon transition in the sector while maintaining traceability and social impact

TRANSPORTATION

Fund ongoing investments in alternative fuel sources, including sustainable aviation fuel, and support further sustainable transport behavior adoption

OWN OPERATIONS

Achieve a global transition to renewable energy and energy efficiency across our operations including internal boutiques

BOUTIQUE MATERIALS

Source high-quality recycled and alternative materials for our boutique materials

OTHERS

Support a transition to renewable energy sourcing and energy efficiency at external boutiques and the increasing adoption of recycled materials across the value chain

OUR NEAR- AND LONG-TERM CARBON REDUCTION PLAN

This reporting cycle has been very important, as we have been able to align a meaningful near- and long-term carbon reduction plan in concert with our stakeholders. We are now implementing carbon reduction actions in line with our plan to reduce our negative impact.

This plan is aligned to the Science Based Targets initiative (SBTi) Corporate Net-Zero Standard. In March 2023, we submitted our target validation request to the SBTi, which defines and promotes best practice in target setting for greenhouse gas reduction. Our validation process will commence in October of this year. In advance of this, we are using this annual Sustainability Mission Report as an opportunity to share our mission objectives and road map. We pledge to reach net-zero greenhouse gas emissions across the value chain by FY50 compared to our baseline year of FY22, established specifically for this purpose. Meanwhile, we will continue to report annually to the Carbon Disclosure Project (CDP).

We consider our impact in line with this guidance and follow the Greenhouse Gas (GHG) Protocol. This includes our direct emissions in own operations (termed Scope 1), indirect emissions from energy purchased (Scope 2), and other indirect emissions along the value chain (Scope 3). Here we outline both our impact in each of these areas and the measures we will take to address these.

Note: Emission figures presented herein refer to our baseline year (FY22) calculations made specifically for the purpose of target submission. Updates to prior reporting cycles, as well as current reporting cycle emissions are detailed later in this chapter. Our approach to carbon accounting methodology is detailed in the Breitling ESG Policy.

GHG EMISSIONS

SOURCE OF EMISSIONS

Direct emissions in our own operations (Scope 1)

Heating and use of company vehicles at headquarters in Switzerland, internal boutiques and subsidiary offices globally

Indirect emissions from purchased energy (Scope 2)

Purchased electricity, heat, and steam at headquarters, internal boutiques, and subsidiary offices globally

Indirect emissions along the value chain (Scope 3)

Purchased goods, transportation, employee commuting, business travel, external boutiques, and fuel and energy-related activities along the value chain

KEY REDUCTION LEVERS

Avoided demand and increased renewable energy and electrification

Energy efficiency, avoided demand, and increased renewable energy

Investing in supply chain insetting, especially for gold sourcing, prioritizing, and incentivizing sustainable forms of transportation, sourcing recycled and upcycled materials, energy efficiency and increased renewable energy at external boutiques

We use a range of materials not only for our watches but across our broader activities including, for example, boutique construction and refurbishment. Our full-scope assessment of carbon emissions has allowed us to assess the impact of these materials and prioritize our efforts to reduce our impact.

FY23 KEY MATERIALS AND EMISSIONS CATEGORIES, SHARE OF TOTAL

As you can see, gold is a key driver of our carbon footprint. This is why we have built a gold supply chain in which we can actively engage directly with upstream suppliers to support environmental impact reduction projects while enabling traceability to attest to these and social measures taken.

In contrast to gold sourcing, steel in watchmaking accounts for only a marginal amount of carbon emissions. While the steelmaking industry is associated globally with 3% of emissions, the amount used in watchmaking is miniscule.

Upstream and downstream transportation distribution

Commuting

Energy consumption (Scope 1 and 2)

Business travel

Furniture for boutiques

External boutique energy consumption

Diamonds prior to transition to renewable energy for lab-grown diamonds and carbon offset purchases by suppliers

Energy- and fuel-related emissions

Gift materials

Steel alloys

Animation materials

Display materials

Sapphire

Breitling watchbox

Other

DID YOU KNOW? ?

If we wish to meet climate reduction targets, we need to reduce per capita, or per person, carbon dioxide emissions to about 2 tons in 2030, according to the United Nations Environment Programme (see p. 63).

In Switzerland, per capita carbon dioxide emissions currently amount to about 14 tons of carbon dioxide per person in 2021 when including imported emissions according to swissinfo.ch. In the Central African Republic, it amounts to 0.15 tons of carbon dioxide per person.

Carbon emissions are disproportionately attributed to historical and current consumption in higher income countries. You can calculate your carbon footprint at many online sites, including the WWF Footprint Calculator.

WHAT IS A TON OF CARBON DIOXIDE?

For starters, carbon dioxide is a gas that is invisible, odorless and colorless, but, as we know, it has a big impact on our climate.

From a size perspective, would fill a sphere about 10 meters in diameter. From an activity perspective, it could drive an average diesel car about 6000 km.

Breitling employees at a 2022 Nature day event in the Wallis region of Switzerland.

“SWISS is forging specific collaborations to support the further development of sustainable aviation fuel (SAF). We are proud to do this together with our longstanding partner Breitling. The Swiss watch manufacturer is the first SWISS corporate customer to commit to flying on SAF. With its SAF commitment, Breitling is taking a pioneering role to accelerate the production and availability of SAF. ”

DIETER VRANCKX CEo, SWISS

Refuelling of an Airbus A320 at Zurich Airport, the home base of SWISS.

SUPPORTING HIGH-QUALITY CARBON REMOVAL AND AVOIDANCE ACTIVITIES GLOBALLY

In our 2022 Sustainability Mission Report, we announced our goal to achieve full-scope climate neutrality on all emissions forthwith, beginning with the FY22 reporting cycle. We then associated each ton of carbon calculated at that time with a voluntary price on carbon of 40 CHF/ton of carbon dioxide equivalent (tCO2e) in order to incentivize and finance carbon reduction measures in our value chain and beyond. Since doing so, we have reviewed best practice measures and will now no longer use the terminology “carbon neutrality”, “climate positive”, “carbon negative”, or other related terms. The reason for this is in recognition of the fact that the discussion of carbon management and reduction is a much more complex one and these terms are unfortunately sometimes subject to misuse.

We have now been able to fully establish our own carbon reduction road map as outlined above and aligned with the SBTi Net-Zero Standard. We will continue to drive forward efforts to reduce our climate impact in line with this alongside maintaining a voluntary price on carbon and supporting high-quality projects to

avoid and remove carbon within our value chain and beyond. We also pledge to report on our environmental impacts in our annual Sustainability Mission Report on these key topics to be accountable to our objectives. To that end, an overview of our carbon fund disbursals can be found below.

The Breitling Carbon Fund currently consists of a price levied upon each ton of carbon equivalent emissions measured in each reporting cycle. This price currently amounts to (40 CHF/tCO2e), following the minimum pricing guidance of the Carbon Pricing Leadership Coalition. The Breitling Carbon Fund is used to finance high-quality climate protection projects that reduce, avoid, or capture carbon emissions, including along our value chain. Activities funded in the current reporting cycle are detailed below. All carbon avoidance and removal project disbursals are subject to independent, third-party validation which assesses the project provider, verifier, co-benefits, and resilience as indicated by future climate scenario analysis.

CARBON REMOVAL AND AVOIDANCE ACTIVITIES GLOBALLY

CHOOOSE – The Blue Carbon Project Gulf of Morrosquillo Forest conservation – Colombia

SOUTHPOLE – Delta Blue Carbon Project

Afforestation – Pakistan

The delta Blue Carbon Project is rooted in 350,000 hectares of tidal wetlands on the south-east coast of Sindh in Pakistan.

CHOOOSE – Cordillera Azul National Park REDD+ Project

Forest conservation – Peru

The project avoids emissions by supporting all efforts to avoid deforestation and forest degradation in Cordillera Azul National Park.

The Blue Carbon Project Gulf of Morrosquillo is the first REdd project in Colombia to be developed with mangroves. GHG are avoided through activities that allow the identification, prioritization, and execution of actions for the adequate management of mangroves, the strengthening of local governance, and the promotion of alternative productive activities, while contributing to the protection of high values of community conservation and biodiversity.

This incredibly rich and diverse landscape embodies potential to help contribute to climate change mitigation through its multifunctionality, coupled with the critical ecosystem services it provides. These intertidal wetlands also provide fertile ground for sequestering and storing vast amounts of atmospheric carbon. The protection, restoration, and sustainable management of this natural resource is being led by Indus delta Capital in partnership with the government of Sindh.

MYCLIMATE – Biogas for Rural Households in India

Cookstoves – India

Installation of household biodigesters that represent clean and sustainable energy sources for India. Biogas generated from cattle manure replaces fuels used for domestic energy needs such as wood, kerosene, and liquefied petroleum gas.

Carbon insetting project

– Climate, biodiversity, and water nexus projects

Climate, biodiversity, and water action – Peru

In cooperation with the Swiss Better Gold Association and our gold suppliers, we are developing projects that will address the climate, biodiversity, and water nexus in the gold supply chain.

Carbon insetting project

– Sustainable aviation fuel

SWISS International Air Lines Sustainable Aviation Fuel for business travel – Switzerland

In cooperation with SWISS, International Air Lines, we purchase Sustainable Aviation Fuel to cover the fuel use estimated for our business travel.

SOUTHPOLE – Safe Community Water Supply

Water supply – Uganda

This project aims to break the cycle of poverty, reduce pressure on Ugandan forests, improve the health of the local population, and cut greenhouse gases by distributing clean water filters to families across the country.

Carbon insetting project

– solar PV panel installation

Renewable energy – India

In cooperation with our lab-grown diamond supplier ABd diamonds, the Breitling Carbon Fund supports the ongoing uptake of on-site renewable energy installations to support their goal of sourcing 100% renewable energy by 2025.

TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) ALIGNMENT WITH TCFD RECOMMENDATIONS

Climate change is a defining global challenge of our time. We are committed to addressing this across our operations including through the implementation of the recommendations from the Task Force on Climate-Related Financial Disclosures (TCFD), the benchmark framework for reporting on physical and transition climate risks. As a part of this, we have conducted an initial assessment focusing on identifying our climate-related risks and opportunities. We intend to refine this initial work and to quantify the related financial impact by the end of our current fiscal year.

Alongside our SBTi Net-Zero Standard commitment detailed earlier in this chapter, we have identified our main decarbonization levers at a global level and across the full scope of our supply chain activities. We have also reviewed transition impacts to be considered for our SBTi-aligned near-term and net-zero commitment. These transition risks and opportunities will also be used in the strategy review process to improve our resilience to the impacts of climate change across our value chain. Our assessment will continue to be developed as we mature our approach to risk identification and mitigation.

In the reporting cycle, we have had three main developments related to our alignment to the TCFD recommendations. This includes submitting science-based near-term and net-zero targets for validation, strengthening our approach to scenario analysis with a focus on two scenarios (1.5°C and 4°C), and reviewing the list of climate-related transition risks and opportunities. As we continue our work, we will improve our analysis by assessing potential climate-related physical risks on owned sites along with other potential key supply chain sites that remain to be determined. Respective financial implications of physical and transition risks related to turnover and assets will be assessed as a result of this process.

Climate governance and risk management

Climate-related governance is fully integrated within our overall ESG governance framework. Our climate strategy and targets are defined by the CEO and executive management and reviewed and approved by the ESG Committee of the Board of Directors. Our performance against these targets is measured with key performance indicators that are reviewed at least quarterly by management and the ESG Committee, which in turn reports to the Board after each meeting. Through these means we gather shareholder feedback. The

chairperson of the ESG Committee has responsibility for climate change at the Board level, whereas the Chief Administrative Officer manages climate strategy implementation on the executive management level. To support our objectives related to climate risk management and emissions reduction, Breitling management, particularly at the executive management level, is incentivized for the achievement of key targets in this area.

The climate strategy is overseen and implemented by the Global Director of Sustainability, supported in the Breitling Sustainability Department by a Sustainability Manager and a Sustainability Specialist, along with numerous horizontal collaboration partners across the organization. The Sustainability Department works with internal and external stakeholders to identify climate risks and opportunities, elaborate an emission reduction action plan, implement mitigation actions, track progress on established targets, report consolidated group climate data, ensure compliance with latest regulations, and continually foster climate change awareness across the organization.

We will continue to integrate climate risks into our overall enterprise risk management system to ensure climate-related risks are considered as part of the regular review of current and emerging risks. Meanwhile, climate risks are factored into key business activities including the procurement of raw materials where we see the largest contributions to our climate impacts. More information on our approach to risk management can be found in the Prosperity chapter of this report.

Climate strategy

We conducted two climate scenarios in order to inform our climate strategy – 1.5°C and 4°C. These two scenarios have been selected because the 1.5°C scenario aligns with the Paris Agreement and helps to avoid the

worst effects of climate change through the introduction of regulation and decarbonization of the economy. The 4°C scenario, which needs to be avoided at all costs, implies continued dependence on fossil fuels with disastrous outcomes for the planet and its inhabitants. Considering the 4°C allowed us to consider the physical risks of non-transition.

In assessing these scenarios, we have defined the following time horizons. Short-term refers to the next five years, medium-term to the next five to 12 years, and long-term to the next 12 to 20 years. Based on our analysis to date, we have not determined any material negative risks arising as a result of the shifts to be encountered in a 1.5°C transition. On the contrary, in a 4°C scenario, we anticipate substantial negative risks emerging across the supply chain with anticipated material, if currently undefined financial impact, including on sales. This assessment has informed our own decision to align our carbon reduction targets to the SBTi Net-Zero Standard.

We will continue to refine related analysis to inform our risk assessment and mitigation measures moving forward, including through the financial quantification of impacts related to turnover, CAPEX or OPEX and the implementation of a materiality-related threshold to categorize the severity of risks. This will require a more detailed assessment of the exposure of the manufacturing sites, impact on local economies (customer demand), key flagship boutiques and key supply chain sites to extreme weather events (physical risks), as well of the increasing climate-related regulatory landscape (transition risks). To incentivize reductions, we now place a voluntary price on carbon on all measured emissions of 40 CHF/ton of carbon dioxide equivalent (tCO2e) following the minimum pricing guidance of the Carbon Pricing Leadership Coalition.

Climate-related metrics and targets

To manage climate-related risks, we are committed to working within our sphere of influence by reducing emissions across GHG Protocol Scopes 1, 2, and 3 in line with the SBTi Net-Zero Standard. To support this ambition, we monitor emissions across all scopes on a regular basis, and report annually here in the Sustainability Mission Report and to the Carbon Disclosure Project. To assess performance in managing climate-related risks and opportunities, we will closely follow progress made against these targets and continually work to improve our methods to assess our overall climate risk exposure.

Breitling plans to disclose a broader set of climate-related performance indicators and targets in the coming years including land use and biodiversity in line with the recommendations of the Task Force on Nature-Related Financial Disclosure (TNFD) framework that will be released in September 2023 (final version).

The artisanal and small-scale gold mining (ASGM) sector is particularly affected by extreme weather, which could result in reduced supply and/or higher prices.

By supporting our value chain partners to transition to greater resource efficiency, we can reduce input costs and increase value chain resiliency. We are also disincentivizing carbon emissions from a financial perspective by establishing a shadow price on carbon.

To address the issue, we work with our supply chain partners to establish climate resiliency through dedicated projects including carbon insetting and the review of production practices. We will also review opportunities to use predictive technology to identify potential impact on mines from climate change.

Breitling places a voluntary price on carbon of 40 CHF/ton of carbon dioxide equivalent, following the minimum pricing guidance of the Carbon Pricing Leadership Coalition. This in turn supports investment in low-emission technology in our value chain.

Areas

GOVERNANCE

Disclose the organization’s governance around climate-related risks and opportunities.

STRATEGY

Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning where such information is material.

a) Describe the Board’s oversight of climaterelated risks and opportunities.

b) Describe management’s role in assessing and managing climate-related risks and opportunities.

a) Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term.

b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.

c) Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario.

RISK MANAGEMENT

Disclose how the organization identifies, assesses, and manages climate-related risks.

a) Describe the organization’s processes for identifying and assessing climate-related risks.

b) Describe the organization’s processes for managing climate-related risks.

c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management.

METRICS AND TARGETS

Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.

a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process.

b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 GHG emissions, and the related risks.

c) Describe the targets set by the organization to manage climate-related risks and opportunities and performance against targets.

2023 Mission Report p. 32

CDP 2023 C1.1a, C1.1b

2023 Mission Report

p. 32–33

CDP 2023 C1.2

2023 Mission Report

p. 32–34

CDP 2023 C2.1a, C2.3, C2.3a, C2.4, C2.4a

2023 Mission Report p. 34

CDP 2023 C2.3a, C2.4a, C3.1, C3.2a, C3.2b, C3.3, C3.4

2023 Mission Report

p. 30–32

CDP 2023 C3.2, C3.2a, C3.2b

2023 Mission Report p. 34

CDP 2023 C2.1, C2.2, C2.2a

2023 Mission Report p. 34

CDP 2023 C2.1

2023 Mission Report p. 57–58

CDP 2023 C2.1, C2.2

2023 Mission Report p. 34 and 58

CDP 2023 C4.2, C4.2a

2023 Mission Report p. 39

CDP 2023 C6.1, C6.3, C6.5

2023 Mission Report p. 24 and 37

CDP 2023 C4.1, C4.1a, C4.1b, C4.2, C4.2a

ENVIRONMENTAL IMPACTS ALONG THE VALUE CHAIN

NATURE AND ENVIRONMENT: OUR APPROACH AND LAB-GROWN DIAMOND CASE STUDY

Reducing carbon emissions as soon as possible is essential to lessening the worst effects of climate change and achieving a countless number of positive side effects Meanwhile, our approach to nature and environment extends beyond carbon. For this reason, we are already complementing our efforts to understand our carbon impact with those on biodiversity, water, and nature as a whole. We are continually expanding these efforts to properly account for our impact and identify ways to make a positive contribution.

In the reporting cycle, we have assessed key impact materials from the perspective of water and biodiversity, including the input of leading experts in the field, to inform key decisions related to sourcing. Among those materials assessed have been gold and diamonds. We have used tools including Earth ScanTM from Cervest to assess sourcing areas, which applies Earth Science expertise, data modeling, and machine learning. In the future, we will continue to review further tools to assess our nature impacts along the value chain, including the WWF Biodiversity and Water Risk Filter tools. We will continually assess further means of maturing our approach to measuring and mitigating our impact on nature.

The research we have conducted has provided further insight into the global value chains of raw materials used in our industry. A key sourcing shift that has been made at Breitling is the adoption of lab-grown diamonds from responsible producers. This shift has been made to address social and environmental impacts along the value chain, enabling us to rule out human rights abuses and attest to the social and environmental measures taken along the way.

Mined diamonds typically require extraction methods, either through open-pit mining, or practices including ocean floor vacuuming, all of which have a substantial impact on their natural environments. Meanwhile, lab-grown diamonds offer a high-quality alternative which allows us to establish traceability and attest to social and environmental measures taken along the value chain.

For an indication of the amount of processing involved for diamond mining, the U.S. Geological Survey estimates that 200 to 400 million times as much rock must be extracted for each diamond mined. Consequences of diamond mining can include impacts on nearby water quality, soil erosion, potential waste management issues, and impacts on local habitats through topsoil and vegetation removal. All these factors can negatively impact nearby human and wildlife.

At Fenix, we craft lab-grown diamonds with an eye on the future and actions in the present. Since the start of 2023, we are growing diamonds for Breitling with 100% renewable energy attributes through our investment in a medium-scale power generation project. We contribute to our local community through social and animal welfare support programs. And, we review our full-scope sustainability performance through regular assessments conducted by SCS Global Services and EcoVadis. ”

The key factor in determining the overall environmental performance of lab-grown diamonds is the use of renewable or low carbon energy sources in the growing practice. For this reason, we use only lab-grown diamond suppliers who are already using these types of energy sources, or have a near-term plan in place to complete the transition. One supplier in particular, Fenix Diamonds, has exceeded even their own energy needs, constructing a solar photovoltaic plant which has supplied 100% for all diamonds grown for Breitling since the start of 2023.

NAMAN PARIKH, CEo, FENIX dIAMoNdS

#SQUADGOALS PLANET

In order to guide our efforts, we have established key targets that also contribute to the broader agenda established by the UN SDGs. Our Planet pillar goals specifically address SDGs 8 (Decent work and economic growth), 12 (Responsible consumption and production), and 13 (Climate action) through our efforts to reduce our environmental impact and support responsible business practices along the value chain. Further SDGs that we contribute to in this pillar in a secondary manner are 14 (Life below water) and 15 (Life on land).

CLIMATE ACTION

Reduce Scope 1 and 2 GHG emissions by 80% by FY2031/32

Reduce Scope 3 GHG emissions by 46.2% by FY2031/32

CReduce Scope 1, 2, and 3 GHG emissions by 90% by FY2049/50

FY23 End of FY32 N/A

FY23 End of FY32 N/A

FY23 End of FY50 N/A

Achieve CDP A List status FY23 End of FY29 On track: In the last reporting cycle, we received a full score upgrade from D to C thanks to our ongoing efforts related to carbon measurement and mitigation. Note: Timing updated to harmonize to FY.

100% of our Scope 1 and 2 emissions will be reduced in line with the 1.5°C scenario. To address our Scope 3 emissions, we will engage our suppliers to set science-based targets and work together to implement key insetting projects to reduce our impact.

CAchieve carbon neutrality on all measured emissions

FY22 End of FY23

Mission completed: We have filed our targets for validation with the SBTi across Scopes 1, 2, and 3. Following alignment with stakeholders across the value chain, we have surpassed our original target to now include Scope 3 emissions and adhere to the Net-Zero Standard across the value chain.

FY23 Commitment henceforth

Mission closed: While we will no longer use the terminology “carbon neutral”, we will continue to transparently report on environmental impacts along the value chain and the measures we take to mitigate these.

100% renewable energy procurement for electricity globally   FY22 End of FY26 On track: We are engaging global operations to complete this mission on target. We currently have solar panels at a headquarter facility. Note: Timing updated to harmonize to FY.

100% biogas at HQ and production

Generate zero plastic waste across operations

FY23 End of 2023 Mission completed: Since August 2022, we have been sourcing biogas in our Swiss headquarter operations.

FY22 End of FY26 On track: We are working with our stakeholders to raise awareness, create circular solutions, identify plastic alternatives, and shift our consumption patterns. In this reporting cycle, we avoid 34% of plastic waste. Note: Timing updated to harmonize to FY.

We apply key international frameworks in our approach to carbon management and a reiterative hierarchy of measuring, mitigating, and neutralizing greenhouse gas emissions. In measuring emissions, we apply the Greenhouse Gas (GHG) Protocol corporate standard. To validate our methodology and accounting, we employ assurance across Scopes 1 to 3 by an independent assurance practitioner.

Carbon emission calculation is subject to uncertainty as some of the activities data are based on estimates and secondary data. We aim to continuously improve the methodology and establish primary data over time by involving key stakeholders across our value chain. In the case of absent data requiring estimation, we always assume a conservative approach in estimating our impact. In the conduct of our carbon accounting, we collaborate with employees across departments, external suppliers, and third-party experts to develop and validate our carbon footprint in line with the guidance of the GHG Protocol.

In the reporting cycle, we have revised our carbon accounting methodology to align with best practice and prepare our submission to the SBTi more fully. As a result of this and ongoing business expansion, our reported carbon emissions have increased, due to a change in methodology and an ongoing expansion of the scope of our measurement as we continually improve our approach. These changes, completed in the current reporting cycle, are adopted herein as the revised FY22 figures. Originally reported figures, based on information available at that time, remain available in the 2022 Sustainability Mission Report.

As a result of our ongoing efforts related to carbon measurement and first mitigation efforts, we have achieved a full score upgrade from the Carbon Disclosure Project (CDP), from D in our baseline year to C in the current reporting cycle. The figures obtained in this process are now referenced as historical FY22 data, which represents our baseline for our ongoing carbon reduction initiatives.

While our carbon accounting scope has been expanded in the reporting cycle, a gold sourcing shift and reduced scope 1 emissions has resulted in lower emissions overall between the two years

The emissions listed above are included in the assurance process. Documentation is available on pages 72–74.

PEOPLE

ON A MISSION AS AN INCLUSIVE SQUAD

We keep improving working environments for all the people in all our squads. We take action on equal pay and provide training, coaching, and volunteering opportunities. Our efforts in these areas have been recognized with the “Top Employer – Certified Excellence in Employee Conditions” award for Switzerland and the global “Universal Fair Pay” certificate for equal pay.

Employee engagement, well-being, health, and safety

Providing training, development, and well-being for employees and engaging them in our sustainability journey.

Diversity and inclusion

Promoting fairness throughout our business, building awareness of unconscious bias, and championing diversity through inclusive employment practices.

Customer and community engagement

Ensuring customer satisfaction through prioritizing privacy, security, and attentive service while engaging responsibly in public relations, lobbying, marketing, and advertising.

Image source: © Breitling SA

Breitling employees during a 2022 waste cleanup event in Zurich.

EMPLOYEE ENGAGEMENT, WELL-BEING, HEALTH, AND SAFETY

LISTENING TO OUR EMPLOYEES

Listening is fundamental to being able to understand how we can best continue to support employee engagement, well-being, health, and safety. During the reporting cycle, Breitling continued its commitment to conducting regular employee engagement surveys covering various aspects including company culture, manager quality, teamwork, diversity and inclusion, and sustainability.

Over the past two employee engagement surveys conducted last year, our engagement score increased from 72% to 75%, underlining the readiness of our employees to contribute to the ongoing improvement of our work environment. Feedback gathered from the survey is taken as a key input for us to develop improvement measures. One of the main takeaways from the surveys was the lack of awareness of the strategy and various initiatives.

Based on this, we introduced professional development programs, language training, and people manager development programs. We also improved our internal communications, introducing Beekeeper and the Insider magazine as new internal communication channels. These two channels allow us to share our latest updates daily through Beekeeper and three times per year through the Insider magazine. They are also forums for us to continually raise awareness, including on sustainability topics. Both channels were received with great enthusiasm and create a sense of community within our company. Our Beekeeper audience is continuing to grow as we welcome our global squad members.

KEY TAKEAWAYS FROM BREITLING EMPLOYEE ENGAGEMENT SURVEYS

In our latest quarterly survey in March 2023, we covered the topics diversity and inclusion, teamwork, and sustainability. With a response rate of 81%, we were able to improve by 7% compared to our last survey. Our squads were especially satisfied with the ability to openly express thoughts and ideas without fear of negative consequences while key improvement aspects included continuing to improve collaboration. We will continue to address key interest points in the future, addressing fundamental aspects that positively impact and influence engagement.

In addition to these measures, we have introduced a new HR platform that is supporting our efforts to improve the talent management process and continuously strengthen the capabilities of our employees by enabling the establishment and tracking of key objectives. A range of administrative support services will also be continually onboarded to make employee management more efficient.

Taking collective action

We aim to engage our employees through hands-on sustainability activities. In the past year, a range of events have been hosted globally, from our Swiss headquarters to global operations. During our first Climate Week in September 2022, we were able to gather employees across Switzerland to clean up cities, run for biodiversity, and maintain forests.

And, in line with our target to eliminate plastic waste in operations by the end of 2025, we are continuously working with our Squads to cocreate pathways to eliminate plastic waste across our operations and throughout our lives. Together with Let’s Talk Waste and collaboratio helvetica we organized workshops across our Swiss locations to develop awareness about plastic consumption and recycling.

Further information on customer and community engagement, one of our material topics, can be found in the Prosperity chapter.

“The Plastic WRAP Workshop was a very exciting experience for me. Not only have I learnt a lot about recycling and waste consumption, but I also felt happy to be a part of a company where these topics matter. ”

FEDERICA DI CARLO WEBSITE MANAGER PLASTIC WRAP WoRKSHoP PARTICIPANT

Training

In 2022 we launched our training program with a range of offerings including Breitling eLibrary, Coursera, individual learning, and Coach Hub. Breitling eLibrary is a digital learning platform including audio-learning, online courses, and eBooks focusing on personal and professional development available to all employees. Coursera for Business provides worldclass content on a range of skill-building topics from leading universities, with the opportunity to obtain externally accepted certificates available to most of the office population. CoachHub facilitates profound behavioral change by delivering coaching services through their digital platform. CoachHub caters to the needs of individuals, teams, and organizations, fostering transformative journeys at every level with personalized, measurable, and scalable digital coaching programs. Through these, a wide range of professional and personal development opportunities are available to all employees. Well-being and work-life balance related content was continuously highlighted and promoted to all employees with the support of Beekeeper.

“The coaching work carried out, guided, and supported by my coach Vanessa, on the CoachHub platform, enabled me to find and implement effective and rapid solutions together in relation to my job as Training Manager at Breitling. ”

In the past year we have expanded our apprenticeship programs. Currently we have ten internal apprentices undergoing modular training to attain the federal capacity certificates or federal capacity attestation (CFC and AFP) in watchmaking, retail and office functions as well as one graduate technician in corporate processes. In 2023, we welcomed our first apprentices which will attain the federal professional attestation (AFP) in watchmaking operations. Furthermore, we will partner with regional vocational schools to provide on-the-job training to apprentices in the watchmaking domain. They will have the possibility to work at different stages in assembly on both operational sites as well as in the After Sales Service. For the upcoming summer 2024 five additional, internal apprentices will start their journey at Breitling in the domains of micromechanics, retail and office functions.

VIVIEN LEFÈVRE TRAINING MANAGER, BREITLING

TOP FOUR BEST EMPLOYERS IN SWITZERLAND

For the third year in a row, Breitling is proud to be recognized as one of Switzerland’s Best Employers 2023 in the survey conducted by Handelszeitung and Statista. In 2023, Breitling was ranked in the top four for the 2023 “Best Employer Award” and reached second place in the “Watch/Jewelry” segment in the Swiss-wide study by Statista and Handelszeitung. This represents an improvement by one place for both categories compared to last year. The study considers the opinion of more than 200,000 salaried people in Switzerland and comprises an extensive analysis on a range of topics. In the past few years, we have moved up from #9 to #4 in the overall ranking of best employers in Switzerland.

Besides being recognized for the third year in a row as one of the best employers in Switzerland by Handelszeitung and PME – Statista, in 2023 Breitling was recognized by the Top Employers Institute as a “Top Employer – Certified Excellence in Employee Conditions” for Switzerland. The Top Employers Institute is the global authority on recognizing excellence in people practices. The certification consisted of a thorough audit and evaluation of around 350 HR best practices in five areas, exploring how these practices have been implemented at Breitling.

This accolade was made possible through the hard work and commitment of all our teams, and we thank them for their continuous efforts in making Breitling one of the best employers.

Our worldwide Squad by type of role

Equality in the workplace

Our employment policies are rooted in equal pay and fairness. We use objective benchmarking to eliminate bias, evaluate roles based on defined criteria for gender-neutral job grading, and cultivate equity. This year, we meticulously analyzed equal pay for base salaries among 1658 employees in 19 countries, factoring in location, roles, and tenure in our calculations.

As a result, we’ve confirmed an adjusted pay gap in favor of women of less than 1% of the adjusted pay gap in favor of women. This was possible thanks to regular and comprehensive salary benchmarking and our global HR system that makes all relevant data accessible. These measures and the significant result earned us the “Universal Fair Pay Analyst” award from the FPI Fair Pay Innovation Lab, a recognition marking Breitling as the first in the watch industry to receive this accolade on a global level.

Diversity is a key focus for us, and it all begins with fair pay. We’re dedicated to ensuring that every Squad member receives equal pay for equal work, regardless of gender.

We remain focused on continuously improving a culture of inclusion and aim to foster a workplace where everyone’s contribution is equally valued.

#SQUADGOALS

STAKEHOLDER ENGAGEMENT

Top 20% of the global benchmark in the Glint Engagement Survey

FY22

2022: timeline updated to 2025

Target slightly amended due to a reclassification of benchmarking thresholds to top 25%. Note: Timing updated to harmonize to FY

20,000 hours of stakeholder sustainability engagement over three years

DIVERSITY AND INCLUSION

No statistically significant difference in pay between men and women globally

FY23

Mission updated: timing standardized to FY and due date to end of FY26

On target: a number of stakeholder activities have taken place with many more planned to address this ambitious and important target

FY22

End of 2024

Mission completed: an external worldwide pay analysis has confirmed a global pay gap of less than 1% in favor of women

TRAINING

Allocate funds equivalent to 1% of salary spend to training FY22

End of 2024

Mission updated: 35% of the Breitling workforce are active learners by end of FY25. Note: Timing updated to harmonize to FY

KEY FACTS

An external worldwide pay analysis has confirmed a global pay gap of less than

favor

No statistically relevant difference in pay between men and women in Switzerland according to the Swiss federal government’s Logib standard analysis tool (assured)

No statistically relevant difference in pay between men and women in Switzerland according to the Swiss federal government’s Logib standard analysis tool

PROSPERITY

CUSTOMER AND COMMUNITY ENGAGEMENT

IMPACT DIAMOND FUND: OUTLOOK AND CONCEPT

Our switch to lab-grown diamonds benefits not only our customers with a high-quality product featuring fully traceable type-IIa diamonds for which we are able to attest to social and environmental measures taken along the value chain, but also local sourcing communities. For each lab-grown diamond carat purchased in this reporting cycle, Breitling has established an Impact Diamond Fund which allocates 30 CHF per carat purchased to support positive social and environmental impact along the supply chain. Our first disbursals will occur in the upcoming FY24 reporting cycle, with funds allocated based upon all purchases to date which occurred in FY23 and FY22.

BUSINESS MODEL RESILIENCE

Ensuring the resilience of our supply chain and long-term business plan by addressing social, environmental, and political issues.

CUSTOMER AND COMMUNITY ENGAGEMENT

Ensuring customer satisfaction through prioritizing privacy, security, and attentive service while engaging responsibly in public relations, lobbying, marketing, and advertising.

Image source: © Breitling SA

We are prioritizing the following three objectives in allocating the Impact Diamond Fund. These are women´s economic empowerment, social entrepreneurship for economic development, and regeneration in former diamond mining areas. We see these as powerful levers for us to contribute to the systems in which our current diamond supply chains operate, while also addressing the negative impacts of diamond mining in a meaningful manner.

Our activities related to women’s economic empowerment and social entrepreneurship for economic development will take place in the state of Gujarat, in western India, where a substantial portion of the Breitling lab-grown diamond value chain is based. Known for its spirit of entrepreneurship, we will work as a member of this system to contribute resources to support entrepreneurs working in areas of positive social and environmental impacts and particularly focus on female entrepreneurs.

Scoping efforts began back in this reporting cycle (FY23) and were extended early in our ongoing reporting cycle (FY24) with the identification and alignment of the topical areas of focus and identification of key implementing partners. This involved on-site engagement of over 100 entrepreneurs working across a range of sectors to identify their needs and opportunities and how we can most meaningfully contribute to their pursuit of these.

To carry out its work in this area Breitling is proud to be partnering with Amani Institute, a leading global non-profit organization supporting entrepreneurs globally, especially in the global south. Amani Institute has built substantial expertise in the topic, including in India, and will be helping us lead our efforts to engage local entrepreneurs in Gujarat, India.

In the upcoming reporting cycle, we aim to support the inaugural class of Breitling Legendary Future Entrepreneurs who will participate in an upskilling program that is foreseen to boost several key business performance indicators that in turn support greater employment, productivity, and inclusion. Further activities that can benefit local community systems are reviewed during our project development. We will also develop our plans to regenerate former diamond mining areas. More about these and other projects will be reported on in the 2024 Breitling Sustainability Mission Report.

Global engagement for sustainability

We actively engage with communities globally on a range of topics related to sustainability, be it through long-term partnerships or the distribution of funds to support in cases of hardship. Through these partnerships, we can be a part of broader systemic change. Sustainability activities are also planned and hosted directly in our markets globally. From beach cleanups in the US, Dubai, or Japan, or tree planting activities in the United Kingdom or Greece, our global Squad is active in promoting sustainability in their local communities.

“This year, we are honored to join forces with Breitling – a luxury Swiss watch brand committed to sustainable and ethical practices – to support their mission of advancing women’s economic empowerment and boosting social entrepreneurship in Gujarat, India.

At Amani Institute, we envision a future where all work has a positive societal impact, rather than limiting social responsibility to a select few sectors. Our partnership with Breitling, a company actively working to meaningfully engage in their lab-grown diamond supply chain to support local communities, is a critical step towards this future. In the first year of this collaboration, we will deliver tailored training to over 40 social entrepreneurs in Gujarat, enhancing their capabilities and effectiveness.

By doing so, we hope to foster more resilient organizations and an interconnected ecosystem within the region. We eagerly anticipate the progress we’ll share in Breitling’s upcoming 2024 Sustainability Mission Report. ”

VARUN MUKERJI

Qhubeka

Breitling’s history as an official timekeeper to some of the world’s top cycling events has made us true believers in the power of bicycles. This simple and effective form of transportation can literally transform lives. That’s why we’ve partnered with Qhubeka. The South African-based organization supplies bicycles to remote communities with limited transportation options, giving residents the means to access schools, clinics, services, and jobs.

SUGi

Breitling is proud to continue to support SUGi, the only platform that focuses on biodiversity building and rewilding in urban environments, and which offers a sustainable, scalable, and successful framework for addressing ecosystem loss while generating employment by empowering indigenous communities.

Since launching in May 2019, the team has created more than 142 pocket forests including 237,411 plants in 21 different countries globally. SUGi is an Official Partner of the UN Decade of Ecosystem Restoration, recognized as a Top Innovator at UpLink, the open innovation platform of the World Economic Forum, and nominated for the 2022 Earthshot Prize. Since partnering with SUGi in 2020, Breitling has planted 20,350 trees, restoring approximately 295 native plant species on 14,910 square meters across 13 forests in 10 countries.

Solar Impulse Foundation

A shared passion for sustainability is the basis for the partnership between Breitling and Bertrand Piccard’s Solar Impulse Foundation. The premise of Solar Impulse Foundation is that climate change can be tackled most effectively through the lens of profitability. In April 2021, the foundation reached its goal of identifying 1000 solutions that are profitable for both the environment and our economy by reducing CO2 emissions, pollution, and the use of resources while at the same time creating jobs and growth. The Solar Impulse Efficient Solution Label is the only evaluation available today that certifies the economic profitability of products and processes that protect the environment. It is awarded following a rigorous evaluation process carried out by a pool of independent experts. In 2021, Breitling’s new sustainable packaging was named as one of the 1000 solutions that can protect the environment in a profitable way.

Local partnerships for sustainability

To support our local sustainability systems, since 2022 we have been a member of the Sustainable Switzerland Entrepreneurs Club, an open network for sustainable and future-oriented business in Switzerland. We are also proud to have been a Corporate Member of GreenBuzz Zurich since 2022, which enables cross-sectoral connections between sustainability experts and enthusiasts who drive sustainability forward from within their organizations.

CoUNTRY dIRECToR, AMANI INSTITUTE, INdIA

We are also involved in various local partnerships aimed at fostering community engagement amongst employees and the public. To support our work in this area, we collaborated with the city of Grenchen and Swiss graffiti artist Fabian “BANE” Florin, marking the city of Grenchen with a graffiti to showcase the industriousness of watchmakers and to serve as a symbol of the hardworking people who have shaped the watchmaking industry. The graffiti is located at Breitling’s headquarters in Grenchen and measures 100 meters long and 4 meters high. To serve the community of Grenchen and to provide adequate infrastructure to the municipality, a Breitling clock was also sponsored and installed by Breitling in the Grenchen municipal swimming pool in the summer of 2022. This initiative was well received by the guests and is now a permanent feature of the swimming pool.

In the current reporting cycle, we also continued our support for a range of organizations contributing to social and environmental challenges. We provided financial support to a range of institutions providing support services in Ukraine. With the support of our employees, we were able to provide the rental and refurbishment of two apartments in Switzerland to house Ukrainian refugee families. Breitling supports these efforts by offering paid time off from work for any related needs that may arise as a result of engagement. Following the devastating earthquake in Turkey in February 2023, we also provided financial support through local Squad members.

Through our welfare foundation, 3.7 m CHF is available to be disbursed to employees in cases of hardship. In the current reporting cycle, two active recipients benefited from the fund. The purpose of the foundation is to help employees and the surviving members of their families in respect of the financial impact in context of age, invalidity, death, disease, accident, unemployment, and other distress.

Circularity

A Breitling watch is inherently circular and repairable. Our approach to circularity currently rests on three key priorities. These are the development of talent in our repair and spare parts activities to extend the life of Breitling watches, the provision of Breitling products through resale, and our efforts to reduce waste and increase material recycling.

We make efforts both to provide high-quality repair for our watches and to reintroduce products to the market once a prior customer has surrendered ownership. Breitling repair centers are available to any customer globally. We prioritize localized repairs close to the customer to ensure a consistent and timely experience.

“

Through its community engagement, the city of Grenchen can count on Breitling as an active partner in meaningful initiatives that enhance its cultural offerings. Together, we have developed projects that benefit the local community and encourage Breitling employee well-being. ”

FRANÇOIS SCHEIDEGGER MAYoR oF GRENCHEN

BUSINESS MODEL RESILIENCE

SUSTAINABLE PRODUCT INNOVATION DRIVING BUSINESS PERFORMANCE

In the reporting cycle, we released our first products with traceable artisanal and small-scale gold and traceable lab-grown diamonds. The Super Chronomat 38 references in which these have been featured have performed excellently in the market and even above our expectations, positioning them as one of our most successful female lines, a market segment we are actively working to expand. The demand for these products indicates a strong pull from the market for products of this nature.

Business model development

Building on the launch of the first Breitling Kitchen in Seoul in February 2022, the Breitling Kitchen in Geneva launched in March 2023. Featuring locally sourced ingredients, the modern street-food-inspired menu was developed in collaboration with Colombian-French celebrity chef Juan

Arbeláez. The Breitling kitchen creates social spaces where the casual, inclusive, sustainable luxury that Breitling is known for can be experienced firsthand. This approach is just the beginning of our efforts to develop new and surprising formats to take the Breitling brand experience to the next level.

Since August 2023, Breitling watches have also been available for resale through the Bucherer Certified Pre-Owned program. In addition to these repair and resale activities, we make further efforts to integrate circular economy principles, for example by using upcycled plastic bottles in our packaging, or our efforts to reduce plastic waste across our operations.

Activities are underway to continually improve our after-sales service, or service après-vente (SAV) service provision. This currently focuses on continually improving our talent development process, providing locally based SAV services, implementing a centralized operations platform and customer relationship management tool globally to ensure a common platform for reporting and action plans. This will be complemented by greater customer ratings collection, through customer satisfaction, and net promoter score assessments.

Through our talent development process, we build on the expertise of 17 official staff trainers to upskill new employees from all different backgrounds to proceed through a full career across technician, polishing, and watchmaking levels.

Our improved approach to SAV service tracking also includes capabilities to allow customers to “follow their watch” in the workshop at every step of the repair flow and is being deployed in several markets in the ongoing reporting cycle. Through this and other initiatives we seek to leverage SAV as a curator of brand loyalty and experience and opportunities to educate customers about the brand. At the same time, it allows us to closely follow quality feedback provided along the way and implement improvement plans accordingly.

Less than 1% of our annual repair volume cannot be repaired due to non-availability of homologated spare parts. For these we manage an exchange offer which provides a credit for watches that cannot be repaired.

Our efforts related to material circularity include the establishment of dedicated recycling facilities for key materials, cocreated with our stakeholders and supported through our partnership with Let’s Talk Waste. We have continued to engage our stakeholders, holding several awareness-raising workshops where we learn about the damage caused by plastic waste and ways in which we can reduce our footprint within and beyond the workplace. These workshops have also focused on raising awareness of the recycling bins we have installed across work environments, which are specifically tailored to the waste managed in each site to maximize correct use of these facilities.

While waste is only one part of our opportunity to integrate circular economy principles, it is an important chance for us to learn how to engage our stakeholders. We are looking forward to expanding our efforts and building on this precedence in other business areas going forward. Further activities to integrate circularity in our business are under review and will be reported on in upcoming reporting cycles.

Linking financing and sustainability performance

To link our sustainability performance to our broader business activities, we’ve tied three key sustainability targets to our first ESG-linked loan. The interest rate for the facility is subject to an annual adjustment based on the achievement of sustainability goals related to overall sustainability performance, climate action, and plastic waste elimination. In our second year of accountability, we have met or exceeded the KPIs which were eligible in the reporting cycle and will benefit from a total savings of approximately 650,000 CHF in the FY24 reporting cycle. These proceeds will in turn be invested into related sustainability activities to support ongoing progress.

Economic contribution

Through our operating costs, we directly create value for our suppliers along the value chain, from raw material sourcing to selling and distribution, rent on boutiques, capital expenditures, retail development, logistics, advertising, and promotion. Our capital structure includes debt on which we pay interest, generating income in the process. In the current reporting cycle, we made contributions to the Swiss Better Gold Association, which support the improvement of working and living conditions in artisanal and small-scale gold mining along with our philanthropic contributions and payments made to key partners, including Qhubeka, SUGi, Ocean Conservancy, and the Solar Impulse Foundation. Further to these global organizations, we are also supporting many on the local level both in Switzerland and our global markets.

Tax governance approach

We are committed to complying with all applicable tax laws and regulations without exception. While we aim to be efficient when it comes to tax, we do not enter into any artificial arrangements and do not undertake aggressive tax planning.

Risk management

Our corporate growth pathways are guided by relevant risk management frameworks. Risk management is overseen by the Breitling Board of Directors and management, including the determination of risks acceptable to the organization and mitigation measures, while further responsibility is devolved to operations to foster accountability among those who operate closer to potential risks.

Risk management is evaluated by an independent internal audit function, which monitors the design, efficiency, and effectiveness of internal controls. This fosters a clear view of the residual risks remaining after our efforts to mitigate them. We employ the ISO31000 Risk Management framework and a risk management maturity model based on this standard.

We consider sustainability risks from both direct operations and the supply chain in our management- and Board-level risk assessment processes. In our most recent risk assessment, production capacity and supply chain disruption were seen as a high-risk area. Like all commercial companies, Breitling faces macroeconomic risks that could affect its sales. Information security risks remain, though an improvement in controls has strongly decreased this risk. International operations, finance, and marketing topics are seen to be of medium risk. Administration topics are generally seen to be of low to medium materiality risk. Sustainability and ESG have been assessed as low risks. In our 2023 assessment, which, as indicated in our prior report, engages internal stakeholders on an annual basis and both internal and external stakeholders on a triennial basis, we also asked participants to share their perception of the risk in each material topic

area, as illustrated below.

LEVEL OF RISK

• Diversity and inclusion

• Business ethics and governance

• Climate change

• Customer and community engagement

• Employee engagement, well-being, health, and safety

• Responsible handling of data

• Product integrity

In addition to this, we ask stakeholders to share their perception of the risk in each material topic area, as illustrated above.

Like the materiality assessment importance assigned, environmental impact remains at the highest level of risk, with social impacts along the value chain and business model resilience being reclassified from medium to high level of risk. Responsible handling of data and product integrity were reclassified as a medium risk which suggests that efforts made in the current reporting period have led to risk mitigation mentioned above. Furthermore, no changes were recorded in the lower level of risk showing that risk mitigation measures remained in place. The actions taken in the Planet pillar contributed especially to significant improvements through tackling the challenge of limiting our impact on the climate by accounting for and managing our emissions.

• Business model resilience

• Environmental impacts along the value chain

• Social impacts along the value chain

KEY FACTS

PROGRESS

MAINTAINING BETTER BUSINESS PRACTICES

We’re sharing our progress with everyone. Through better reporting and better standards, including being the first in the industry to report according to the WEF IBC Stakeholder Capitalism Metrics, we’re enabling better transparency and transforming how we report on our progress.

Business ethics and governance

Addressing ethical and legal issues including internal controls, transparent management practices, and ensuring no fraud, corruption, bribery, or anti-competitive behavior.

Responsible handling of data

Adopting best practices when it comes to the use of online data, ensuring security and customer privacy.

Image source: © Breitling SA

A Breitling watch is sketched at Breitling SA, Grenchen.

BUSINESS ETHICS AND GOVERNANCE

HOW SUSTAINABILITY IS MANAGED AT BREITLING

Our double materiality assessment forms the basis for identifying and prioritizing material topics. More information on our material topics is available in the Introduction chapter. Material topics form the basis for our sustainability strategy and targets, which are then ultimately defined by the CEO and executive management and reviewed by the ESG Committee of the Board of Directors.

Our sustainability performance against established targets is measured with key performance indicators that are reviewed together with the progress on key ESG topics at least quarterly by management and the ESG Committee, which in turn reports to the Board after each meeting – these happen on a quarterly basis or more often as needed.

The chairman of the ESG Committee has responsibility for ESG topics, including climate change, at the Board level, whereas the Chief Administrative Officer manages ESG topics on the executive management level. The Global Director of Sustainability is a dedicated senior management position and responsible for formulating and implementing our sustainability road map and initiatives. The role is further supported in the department by a Sustainability Manager and a Sustainability Specialist, along with numerous horizontal collaboration partners across the organization.

Our shareholders

Our majority shareholder, since May 4, 2023, is Partners Group (PG), a leading global private markets firm. PG is invested alongside with our previous majority shareholder, CVC, a leading global alternative investment manager focused on private equity, secondaries, and credit.

PG has a strong commitment to sustainability. Creating lasting positive impact is one of the core principles of PG’s Charter and one that applies to all PG’s activities as a firm. It guides its investment activities, its corporate activities, and its daily interactions with all of its stakeholders.

At PG, oversight of ESG & Sustainability lies with the most senior levels of its organization. Its Board of Directors is responsible for the overall strategy and direction, at portfolio and corporate level. It also sets ESG targets. Implementation is then delegated to PG’s Executive Team, led by its Co-Head Investments for portfolio-level and its CFO for corporate-level activities.

PG’s Executive Team mandates its Investment and Group Finance & Corporate Development teams to execute its Sustainability Strategy at portfolio and firm level, with oversight from PG’s Chairman of Sustainability, who acts as a bridge between PG’s Executive Team and its operational teams. To maintain high levels of risk management, value creation, and reporting standards across the platform, PG’s Sustainability governance and control framework integrates ESG into the investment process and its Enterprise Risk Management framework, and assures independent monitoring of risks.

PG’s three portfolio sustainability focus areas are (i) climate change strategy for its environmental focus, creating long-term value by both investing in the low carbon economy and leading assets on their path to net-zero emissions; (ii) stakeholder benefits program for its social focus, building companies which employees desire to work for; reinvesting substantially into development, financial or well-being initiatives for staff; and (iii) sustainability at scale for its governance focus, developing its assets with an entrepreneur’s mindset, advancing sustainability and focusing on positive impact for all stakeholders.

CVC is committed to building better businesses and creating sustainable value for the companies it partners with. CVC believes the management of environmental, social, and governance factors is a critical part of ensuring the long-term success of any business, including its own. It is therefore committed to integrating ESG within its investment processes with the objective of creating sustainable value for its companies and investors. Furthermore, CVC strongly believes that embedding environmental and social responsibility into its approach makes it a stronger business, enables it to attract, retain, and motivate high-quality talent and enhances the resilience of its portfolio companies.

CVC has a comprehensive engagement program with its portfolio companies to support the implementation of robust ESG strategies including measuring and reporting, and stakeholder engagement. Its four-pillar approach consisting of (i) externally assess the ESG action plans, most commonly through EcoVadis, (ii) develop and disclose annual ESG key performance indicators, (iii) publish an annual sustainability report, and (iv) set externally validated science-based emissions reductions targets; helps to create value within its portfolio whilst also enabling companies to adapt to evolving regulatory and stakeholder demands. Via this process, CVC seeks to support its portfolio companies to achieve long-term sustainable success beyond its ownership.

Our Board of Directors

Our Group’s parent operating entity, Breitling SA, is overseen by our Board of Directors, which approves Breitling’s global strategy and major business initiatives and is responsible for the overall direction, development, and supervision of the Group and its management. The Board has established three Board committees: the Audit Committee, the ESG Committee, and the Nomination and Compensation Committee.

Board members have expertise in finance and banking, operations, manufacturing, brand strategy, licensing, marketing, product design, omni-channel, customer engagement, business development, digital innovation, e-commerce, mergers and acquisitions, ESG topics, human resources, governance, legal, compliance, general management, and leadership,

among others, across a wide scope of B2C and B2B in luxury and other industries.

As at March 31, 2023, the Board was made up of four shareholder representatives and one independent Board member, all of whom are non-executive. Women made up 20% of the Board, and 40% of Board members were between 30 and 50 years old, with 60% above 50 years of age.

On March 31, 2023, the Board was constituted of the following individuals with related functions:

Dr. Daniel Pindur, chairman of the Board since December 17, 2021, previously vice-chairman from 2017 until December 17, 2021, and chairman of the Audit Committee, and of the Nomination and Compensation Committee since April 27, 2022 (PhD in Finance, German, 45, male), is a managing partner at CVC Advisers (Deutschland) GmbH with previous positions at Goldman Sachs and at Sunrise Communications as CFO (other board memberships include Douglas, Messer Industries, ironSource Mobile, DKV Mobility Services, and chairmanship at Tipico).

Alfred Gantner, vice-chairman and Board member since December 17, 2021 (master’s degree in Business Administration and Management, Swiss, 54, male), is a cofounding partner and executive member of the board of directors of Partners Group Holding AG (chair of the investment and oversight committee, member of the strategy committee) with previous positions as executive chairman and CEO as well as chairman of the global investment committee of Partners Group, and at Goldman Sachs (other current board memberships at PG3, Kompass Association, Confluent Health, and Fermaca).

Dr. Alexander Dibelius (Board member since 2017, chairman from 2018 until December 17, 2021, PhD in Medicine, German, 63, male) is a managing partner at CVC Advisers (Deutschland) GmbH and was a partner at Goldman Sachs and McKinsey (other board memberships at KION Group, Diebold Nixdorf, Douglas, Messer Industries, Syntegon, ironSource Mobile until June 29, 2021, DKV Mobility Services, and Tipico).

Can Toygar, chairman of the Audit Committee since December 17, 2021 (Board member since 2017, master’s degree in Business Administration and Management, German, 40, male) is a managing director at CVC Advisers (Deutschland) GmbH and was previously with J.P. Morgan (other current board memberships at Douglas, Messer Industries, and Syntegon).

Luisa Deplazes de Andrade Delgado, chair of the Nomination and Compensation Committee, and of the ESG Committee (Board member since April 27 2022, master’s degree in Law and postgrad diploma in European Studies, Swiss/Portuguese, 56, female, is an entrepreneur and investor with extensive international executive and board experience as CEO of Safilo Group, executive board member and CHRO at SAP, and General Manager Nordic and HR VP Western Europe at Proctor & Gamble, and a previous board member at, among others, AO World and ARYZTA (other board memberships include chair at Swarovski and Schleich, and membership at Ingka Holding [IKEA], DIA Group, Barclays Bank [Suisse], Telia, and Fortum).

Changes were made to the Board composition after March 31, 2023 including the resignation of Dr. Alexander Dibelius, the election of Alfred Gantner as chairman (previously vice-chairman), the election of Dr. Daniel Pindur as vice-chairman (previously chairman) and the appointment of the following individuals as Board members:

Gordon Bowen (Board member since May 4, 2023, bachelor’s degree in English Literature from the University of Utah, American/English, 72, male) is the Chairman at Dentsu and founder of McGarryBowen and was previously with Y&R, McCaan, and Ogilvy (other current board memberships at Utah Symphony and Ballet West).

Andreas Holzmüller, chairman of the Audit Committee since June 21, 2023 (Board member since May 4, 2023, master’s degree in Accounting and Finance from the University of St. Gallen [HSG], Swiss/German, 40, male) is a Managing Director at Partners Group (EU) GmbH since 2008 (other current board memberships at Schleich GmbH and Techem GmbH).

YiChen Shen (Board member since June 22, 2023, master’s degree in Business Administration and Management, Chinese, 34, male) is an Executive Director at Primavera Capital and was previously with KKR and Goldman Sachs.

Benchmarking our progress

As part of our efforts to continuously improve our approach to sustainability by integrating external and objective feedback, we complete a number of external ESG ratings on an annual basis. The fiscal year associated with the rating refers to the data on which it is based. Besides being able to benchmark ourselves, ratings serve as a tool to identify key areas for improvement across the full scope of ESG. Meanwhile, we engage in approximately five external ratings and benchmarkings each year, each of which maintains a distinct approach, which provides us with an array of feedback to integrate in improvement processes. For those ratings for which we are permitted to publicly report on our engagement and progress, key factors in our progress are reported below.

Among the ratings that we complete are EcoVadis, Morningstar Sustainalytics, and S&P Global Corporate Sustainability Assessment (CSA). Since 2020, we have assessed our performance annually with EcoVadis, asking our key suppliers to do the same. More information can be seen in the Product chapter. In our baseline year, we reached a score of 50 (on a scale of 100), earning a bronze medal. In 2021, we were able to increase our score by 16 points and receive a gold medal, which is awarded to the top 5% of companies assessed globally. In the current reporting cycle, Breitling was regrouped from a middle-sized to a large-sized company due to its growth in the past few years. This resulted in a more rigorous scoring process and higher requirements. Despite the regrouping, we achieved a score of 62 which puts Breitling well above the industry average of 46 and has earned us a sliver medal, which is awarded to the top 25% of companies globally.

For the first time, we have conducted the Morningstar Sustainalytics assessment (disclaimer available here). The ESG risk rating assesses a company’s exposure to industry-specific material ESG risks as well as how successfully those risks are managed. Human rights in the supply chain, human capital, corporate governance, business ethics, data privacy and security, and environmental and social impact of product- and service-risks-related exposure and management were assessed. During our first assessment conducted in January 2023 we scored13.5 which indicates a low risk and places Breitling in the top 7th percentile globally and top 13th percentile in the Textiles & Apparel industry. Our second interim assessment in July 2023 indicated a marginal increase in risk exposure and a score of 15.

Through great collaboration with internal stakeholders, we were able to complete the S&P Global CSA which benchmarks performance on a wide range of industry specific economic, environmental, and social criteria. During our first assessment conducted in February 2023 we achieved a score of 34 which places Breitling in the 87th percentile and is considered an aboveaverage score for the first assessment. In the interest of transparency, we decided to publish our scores and report on the progress on a yearly basis.

RESPONSIBLE HANDLING OF DATA

DATA PROTECTION GOVERNANCE

We comply with relevant global regulatory frameworks (e.g. the General Data Protection Regulation or GDPR, ePrivacy Directive, Swiss New Federal Act on Data Protection, the Ordinance to the Federal Act on Data Protection, the UK GDPR and the Chinese Ordinance to the Federal Act on Data Protection) and apply the most rigorous regulations available to our global activities through the rollout of data protection policies and training. We have an external groupwide Data Protection Officer who works alongside the HQ Legal & Compliance team. Group companies have a local representative responsible for data protection topics.

We collect consent for the processing of customers’ personal data in a clear, informative, and explicit manner. We require a double opt-in for Breitling communications – including e-mail verification – and our data management system prohibits mass exports. Customer personal data is never sold to third parties. It is always possible for customers to check out as a guest, and there are always unsubscribe buttons in our marketing communications. The Breitling Sales Support Team, in coordination with the groupwide Data Protection Officer, can delete marketing customer records upon request and upon expiration of legal retention periods. During the current reporting period, we continued to have no customer or employee data breaches which required escalation to a supervisory authority.

An Interfirm Agreement based on the European Commission’s Standard Contractual Clauses was concluded in September 2022 to ensure the highest level of data protection is guaranteed for the free movement of personal data within the Breitling Group.

In December 2022 we rolled out six department specific data protection guidelines, providing employees with useful and practical data protection tips to apply in their everyday activities. To add to the awareness raising around this topic we rolled out a new data protection training course prepared in collaboration with Terranova which 86% of Breitling’s employees successfully completed. Further improvements were made at the procurement stage where we introduced a new data protection screening questionnaire in the procurement process. This is to ensure that when assessing service providers, data protection is a key consideration from the outset.

Information and cybersecurity

Information and cybersecurity is a top priority and managed in line with best-practice guidelines for cybersecurity defined by the Center for Internet Security (CIS) framework for critical security controls for effective cyber defense. These controls cover prevention, detection, and response to cyber threats. Multiple security controls have been implemented on the consecutive lines of defense following the defense-in-depth (DiD) principals.

Monitoring is ensured with a specialized 24/7 Security Operations Center (SOC) including incident response. We have also implemented several organizational controls in this area following a road map aligned to the ISO27001 information security governance and risk management framework. This covers operational security, crisis management, and business continuity management and follows the principal of three lines of defense. A dedicated security team ensures the second line of defense.

We also commission regular internal and external audits, including penetration testing. In order to mitigate risks , we have established an Information Security Awareness program, which regularly provides training to all our employees, contractors, and partners. The efficiency of the program is tested with regular phishing simulation tests.

KEY FACTS

Breitling has zero tolerance for corruption. The Breitling Employee Code of Conduct and international Speak Up hotline, Breitling’s key anti-corruption policy and procedure, are made available to all employees. Each employee worldwide has been trained on both tools and provided with quick reference documentation.

In order to continually engage employees on the employee code of conduct and international Speak Up hotline, ongoing communication measures are planned to raise awareness. Proactive measures that Breitling takes in order to mitigate the risk of corruption include third-party due diligence and detailed processes for executing corporate deals and ensuring adherence to all sanctions lists.

ASSURANCE

Independent practitioner's limited assurance report

on selected Greenhouse Gas Emissions and People Indicators in the Sustainability Mission Report 2023 to the Management of Breitling SA

Grenchen

We have been engaged by Management to perform assurance procedures to provide limited assurance on selected Greenhouse Gas Emissions and People Indicators in the Sustainability Mission Report 2023 of Breitling SA and its subsidiaries (collectively “Breitling SA”) for the period ended 31 March 2023.

Scope and subject matter

Our limited assurance engagement relates to the following two subject matters published in the Sustainability Mission Report 2023:

• Greenhouse Gas Emissions (pages 40-41):

o Scope 1 GHG emissions (CO2-eq); HQ mobile combustion, HQ stationary combustion, internal boutique stationary combustion, subsidiary mobile combustion and subsidiary stationary combustion;

o Scope 2 GHG emissions (CO2-eq); HQ purchased electricity, internal boutique purchased electricity and subsidiary purchased electricity;

o Scope 3 GHG emissions (CO2-eq); External boutique stationary combustion, external boutique purchased electricity, logistics, employee commuting, business travel, purchased goods, energy and fuel related emissions, HQ non-hazardous waste – excluding plastic waste, HQ hazardous waste, plastic waste (HQ and global after sales) including single-use plastics and HQ water consumption;

• People Indicators (page 50):

o Total number and rate of new employee hires (global);

o Total number and rate of employee turnover (global);

o Diversity and inclusion: gender;

o Diversity and inclusion: age group (HQ);

o Ratio of standard entry-level wage in Switzerland compared to local minimum wage in Switzerland;

o Number and rate of fatalities as a result of work-related injury;

o Recordable work-related injuries;

o Absenteeism (clocking population in Switzerland)

Criteria

The Greenhouse Gas Emissions data and People Indicators were prepared by the Management of Breitling SA based on the following criteria (the "suitable criteria"):

• WEF Stakeholder Capitalism Metrics in its application guidance (chapter 2.1 Application of recommended metrics) –WEF core metrics (published on 22 September 2020).

• GHG-Protocol Corporate Standard.

Inherent limitations

The accuracy and completeness of the selected Greenhouse Gas Emissions and People Indicators in the Sustainability Mission Report 2023 are subject to inherent limitations given their nature and methods for determining, calculating and estimating such data. In addition, the quantification of the selected Greenhouse Gas Emissions and People Indicators in the Sustainability Mission Report 2023 is subject to inherent uncertainty because of incomplete scientific knowledge used to determine factors related to the selected Greenhouse Gas Emissions in the Sustainability Mission Report 2023 and the values needed to combine e.g. emissions of different gases. Our assurance report will therefore have to be read in connection with the suitable criteria used by Breitling SA

Management’s responsibility

The Management of Breitling SA is responsible for preparing the indicators (including the GHG statement) in the Sustainability Mission Report 2023 in accordance with suitable criteria. This responsibility includes the design, implementation and maintenance of the internal control system related to the preparation of the indicators (including the GHG statement) in the Sustainability Mission Report 2023 that are free from material misstatement, whether due to fraud or error. Furthermore,

the Management is responsible for

the

selection and application of the suitable criteria

Independence and quality management

We are independent of the Breitling SA in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code). We have fulfilled our other ethical responsibilities in accordance with the IESBA Code, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.

PricewaterhouseCoopers AG applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Practitioner’s responsibility

Our responsibility is to perform an assurance limited engagement and to express a conclusion on the selected Greenhouse Gas Emissions and People Indicators in the Sustainability Mission Report 2023. We conducted our engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) ‘Assurance engagements other than audits or reviews of historical financial information’ and the International Standard on Assurance Engagements 3410, Assurance Engagements on Greenhouse Gas Statements ('ISAE 3410'), issued by the International Auditing and Assurance Standards Board. Those standards require that we plan and perform our procedures to obtain limited assurance whether anything has come to our attention that causes us to believe that the selected Greenhouse Gas Emissions on pages 40-41 and People Indicators on page 50 in the Sustainability Mission Report 2023 were not, in all material aspects, prepared in accordance with the suitable criteria.

Based on risk and materiality considerations, we performed our procedures to obtain sufficient and appropriate assurance evidence. The procedures selected depend on the assurance practitioner’s judgement. A limited assurance engagement under ISAE 3000 (Revised)ISAE 3410 is substantially less in scope than a reasonable assurance engagement in relation to both the risk assessment procedures, including an understanding of internal control, and the procedures performed in response to the assessed risks. Consequently, the nature, timing and extent of procedures for gathering sufficient appropriate evidence are deliberately limited relative to a reasonable assurance engagement and therefore less assurance is obtained with a limited assurance engagement than for a reasonable assurance engagement.

We performed the following procedures, among others:

• Inquiries of the relevant stakeholders for the selected indicators in the Sustainability Mission Report 2023

• Inspection of relevant documents

• Sample based testing of underlying data

• Reconciliation of data sources with carbon accounting data and other underlying records

• Reperformance of relevant calculations

• Analytical procedures

3 Breitling SA | Independent practitioner's limited assurance report

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.

Conclusion

Based on the work we performed, nothing has come to our attention that causes us to believe that the selected Greenhouse Gas Emissions on pages 40-41 and People Indicators on page 50 in the Sustainability Mission Report 2023 of Breitling SA for the period ended 31 March 2023 are not, in all material respects, prepared in accordance with the suitable criteria.

Restriction of use and purpose of the report

This report is prepared for, and only for, the Management of Breitling SA, and solely for the purpose of reporting to them on the selected Greenhouse Gas Emissions on pages 40-41 and People Indicators on page 50 in the Sustainability Mission Report 2023 and no other purpose. We do not, in giving our conclusion, accept or assume responsibility (legal or otherwise) or accept liability for, or in connection with, any other purpose for which our report including the conclusion may be used, or to any other person to whom our report is shown or into whose hands it may come, and no other persons shall be entitled to rely on our conclusion.

We permit the distribution of our report, in full only and in combination with the suitable criteria, to enable the Management to demonstrate that they have discharged their governance responsibilities by commissioning an independent assurance report over the selected Greenhouse Gas Emissions on pages 40-41 and People Indicators on page 50 in the Sustainability Mission Report 2023, without assuming or accepting any responsibility or liability to any third parties on our part. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Management of Breitling SA for our work or this report.

PricewaterhouseCoopers AG

Thierry Troesch

Zurich, 20 September 2023

Remo Satta

‘The maintenance and integrity of Breitling’s website and its content are the responsibility of the Management; the work carried out by the assurance provider does not involve consideration of the maintenance and integrity of the Breitling‘s website, accordingly, the assurance providers accept no responsibility for any changes that may have occurred to the reported Selected Indicators in the Sustainability Report 2023 (including the GHG statement) or the criteria since they were initially presented on the website.

4 Breitling SA

| Independent practitioner's limited assurance report

INDEX

This report was prepared in line with the WEF IBC Stakeholder Capitalism Metrics, released in September 2020 and updated in March 2021. Metric sources (in addition to and as defined by the WEF IBC) are included on the next page for ease of reference.

Breitling selected the WEF IBC Stakeholder Capitalism Metrics to adopt consistent and concise reporting that integrates existing reporting good practice for comparability. In the current reporting cycle, Breitling has reported according to the core metrics established therein. Where relevant, further information concerning the boundary and treatment of metrics is specified on the next page.

In case of any data errata, Breitling will reissue the corresponding report if the total figures are impacted by more than 5%. In case of metric value reassignments, no report reissue will be made, but will be duly disclosed in the course of the subsequent reporting cycle.

Unless otherwise stated, the boundary of the Sustainability Report is Breitling SA. Financial statements are however consolidated and include reviews of Breitling Holdings and Breitling SA. The time frame the report assesses covers April 1, 2022, to March 31, 2023, as the fiscal year of the Breitling Group. Comparative data from prior reporting cycles is provided where available. To provide current data going forward, Breitling intends to issue a sustainability report on an annual basis.

The contact point within Breitling concerning this report is:

AURELIA FIGUEROA Global Director of Sustainability aurelia.figueroa@breitling.com

Further declarations/notes

Introduction, Governance 6, 7

Introduction, Governance 6, 7, 9, 10 Please also see the Breitling 2021 Sustainability Mission Report for further detail on our materiality methodology.

Product, People 17, 18, 19

Metric Metric sources

Setting purpose The British Academy and Colin Mayer, GRI 102-26, EPIC, and others

Stakeholder engagement GRI 102-21, GRI 102-43, GRI 102-47

Risk for incidents of child, forced, or compulsory labor

GRI 408-1b, GRI 409-1a

Product 22 This is a disclosure provided in addition to the WEF IBC Stakeholder Capitalism Metrics. Consumption of key materials GRI 301-1

Planet 40 No further GHG emissions have been identified as relevant to date for Breitling beyond carbon dioxide.

Planet 32, 33, 35

Planet N/A No sites are owned, leased, or managed by Breitling or its affiliates in or adjacent to protected areas and/or key biodiversity areas. This core topic is thus excluded from our reporting scope. In the near future, we will consider value chain impacts.

Planet N/A Among our direct operations, no significant water consumption occurs in regions with high or extremely high baseline water stress. In the near future, we will consider value chain impacts.

Planet 25, 26, 27, 31

Breitling has committed to the SBTi.

Climate change: GHG emissions

GRI 305:1-3, TCFD, GHG Protocol

Climate change: TCFD implementation Recommendations of the TCFD; CDSB R01, R02, R03, R04, and R06; SASB 110; SBTi

GRI 304-1

Nature loss: land use and ecological sensitivity

Freshwater availability SASB CG-HP140a.1, WRI Aqueduct Water Risk Atlas tool: www.wri.org/aqueduct

Climate change: Paris-aligned GHG emissions targets SBTi

Planet 31, 41 This is a disclosure provided in addition to the WEF IBC Stakeholder Capitalism Metrics. Tons of carbon offset

GRI 305-5

Planet 31, 41 This is a disclosure provided in addition to the WEF IBC Stakeholder Capitalism Metrics. Shadow carbon price (CHF/tCO2E) None

Planet 41 This is a disclosure provided in addition to the WEF IBC Stakeholder Capitalism Metrics. The figure provided is limited to HQ operations and the international retail network.

Planet 41 This is a disclosure provided in addition to the WEF IBC Stakeholder Capitalism Metrics. The figure provided is limited to HQ operations.

Energy consumed within the organization

GRI 302-1

Water consumed within the organization GRI 303-5

Planet 41 Our reporting scope is limited at this time to our HQ and SAV operations. Single-use plastics

People 50 We define diversity, equality, and inclusion as a full range of immutable characteristics against which one may not be discriminated. Our current focus is primarily on gender, where we can make disclosures based on available data. We also consider – where legally allowed – factors like age, religion, social class, ethnicity, and sexual orientation.

People 48, 50 Our equality disclosures in the current reporting cycle focus particularly on gender and will be expanded in the future.

People 50 Ratios of standard entry-level wage compared to local minimum wage are provided for Switzerland and are valid for both genders. Figures related to individual personnel compensation are not disclosed due to confidentiality reasons.

Dignity and equality: diversity and inclusion

Pay equality

Wage level

People 50 The number of hours worked are not available in the current reporting cycle. Health and well-being: health and safety

People 46, 49 Training hours are not available in the current reporting cycle. This is the subject of a 2024 target and reporting will be expanded in the future.

People 50 At this time, only the absentee rate is considered material to our reporting, given the low rate of incidents in our operations.

People, Prosperity 50 Our reporting scope is limited at this time to our HQ operations only.

Prosperity, Governance 59, 60 A historical review of how risks and opportunities have moved over time is not available in the current reporting cycle.

Prosperity 61 Figures related to operating costs, payments to providers of capital, payments to government, and financial assistance received from the government are not disclosed due to confidentiality reasons.

Prosperity N/A As an unlisted company, we do not engage in typical market share buybacks. Dividend payments, along with the strategy for returns of capital to shareholders, are not disclosed due to confidentiality reasons.

Prosperity 61 Consists of prototype costs, direct R & D and product development expenses, staff costs, and depreciation.

Prosperity N/A Figures related to tax paid are not disclosed due to confidentiality reasons.

GRI 301-1

GRI 405-1b

Adapted from GRI 405-2

GRI 202-1, adapted from DoddFrank Act, US SEC Regulations

GRI:2018 403-9a and b, GRI:2018 403-6a

Training provided GRI 404-1, SASB HC 101-15

Health and well-being: employee well-being

Employment and wealth generation: absolute number and rate of employment

Risk and opportunity oversight

Employment and wealth generation: economic contribution

Employment and wealth generation: financial investment contribution

GRI 403-9

Adapted to include other indicators of diversity, from GRI 401-1a and b

EPIC, GRI 102-15, WEF Integrated Corporate Governance, IR 4D

GRI 201-1, GRI 201-4

As referenced in IAS 7 and US GAAP ASC 230

Total R & D expenses US GAAP ASC 730

Total tax paid Adapted from GRI 201-1

Prosperity 61 Community and social vitality CECP Valuation Guidance

Progress, Governance N/A All Board and senior management members as well as employees are trained on Breitling’s Employee Code of Conduct and Speak Up hotline, which contain our anti-corruption policy, on a biennial basis.

Progress, Governance 69

Progress, Governance 64, 65, 66, 67

Ethical behavior: anti-corruption GRI 205-2, GRI 205-3

Ethical behavior: protected ethics advice and reporting mechanisms GRI 102-17

Quality of governing body GRI 102-22, GRI 405-1a, IR 4B

Note: Any reference made to GRI concerns the GRI standards of 2016 unless otherwise specified. This index and its content have been reviewed for accuracy and reflect that which will be published in the Breitling Sustainability Mission Report to be released in September 2023.