2.2 Sustainability governance and organization CEOs in businesses and lead countries are responsible for anchoring sustainability in their organizations Overview of roles and responsibilities Supervisory Board Managing Board incl. Chief Sustainability Officer Sustainability Executive Committee Siemens Sustainability Board Sustainability Organization incl. Global Head of Sustainability Business and SFS Service & Governance units Countries Sustainability reflected in management G overnance compensation The current compensation system for the members of the Progress on DEGREE ambition #5: Managing Board of Siemens AG has been in place since fiscal Long-term incentives based on ESG criteria 2020. It incorporates long-term performance incentives based on ESG criteria and is defined under the field of action Siemens grants long-term variable compensation in the Governance in our DEGREE sustainability framework. We form of Stock Awards. Long-term variable compensation assess the Managing Board’s performance against Siemens’ represents at least 30% and at most 42% of total target internal ESG/Sustainability index. Targets include CO2e compensation. Since fiscal 2020, allocated Stock Awards emissions, digital learning hours, and the Net Promoter depend on a comparison of total shareholder return Score (NPS) for measuring customer satisfaction. Additional (TSR) with an international sector index (the MSCI World sustainability matters are also defined as individual targets Industrials Index) and on an internal ESG/Sustainability for short-term variable compensation (bonuses). index, weighted at 20%, with three equally weighted SIEMENS FINANCIAL REPORT FOR FISCAL 2023, COMBINED MANAGEMENT indicators. The ESG indicators reflect relevant strategic REPORT, COMPENSATION REPORT 2023 and socio-political topics. For the Stock Awards Tranche 2023, which was awarded in November 2022, these indicators include CO e emissions, digital learning 2 hours, and the Net Promoter Score (NPS) for measuring customer satisfaction. These criteria are applicable to Managing Board members of Siemens AG and all senior managers globally who are eligible for Stock Awards. Progress ESG criteria anchored Siemens without SHS SIEMENS SUSTAINABILITY REPORT 2023 25