SIKA AG ANNUAL

Risk Management

RISK MANAGEMENT Identifying, assessing, and managing risks through robust mitigation practices As a global player in specialty chemicals, Sika is exposed to a variety The Board of Directors (BoD) is Sika’s highest governing body and is Committee. The governance structure, compliance with the Code of of risks. To achieve the Group’s objectives, safeguard its reputation, responsible for overseeing its risk management. Its duties include the Conduct, and the Internal Control System are assessed at Group level. and protect the capital invested in Sika, Group Management regularly annual reassessment of the risk profile at Group level, and it is also the In addition to audits of the operating companies, regular in-depth analyzes potential risks and incorporates them into the strategic highest governing body for climate-related risks and opportunities. For more audits are carried out in headquarter functions and Group-wide decision-making process. information on Sika’s Task Force on Climate-related Financial Disclosures support processes. The AC convenes at the request of its Chair as (TCFD), please see the “Climate” section on p.54 of the Sustainability often as business demands. Customarily, the Chair of the Board of Report 2025. The BoD, through the Sustainability Committee, is responsible Directors, the Chief Financial Officer (CFO), and the CEO take part Governance: Board of Directors, committees, for reviewing and endorsing the implementation of sustainability policies, in these meetings in an advisory capacity. In the year under review, Group Management, and relevant bodies while the Chair of the Board oversees climate-related topics by receiving the Audit Committee met five times. More information is provided regular updates from Group Management. The Chair of the Board is a in the Corporate Governance Report on p.185. standing guest on the Sustainability Committee and is permanently BOARD OF DIRECTORS invited to add climate-related topics to the agenda of the Chief Executive 2. The Nomination and Compensation Committee (NCC) is responsible Officer (CEO) and the BoD. The Board of Directors is committed to the for succession planning, assessments, and the compensation strategy Science Based Targets initiative (SBTi) to achieve net zero greenhouse and remuneration system at the level of the Board of Directors and AUDIT NOMINATION gas emissions by 2050. Group