Structure and content of the first sustainability report

The 2024 Sustainability Report of the consolidated MND Group includes non-financial information for MND a.s. and its subsidiaries. In total, 32 companies from the Czech Republic and Ukraine were involved, 16 of which are active and in operational operation - i.e. those that have relevant non-financial data for reporting purposes. The report tracks not only how we are performing environmentally and socially, but also how we have set up our management and accountability processes.

The report is published as part of MND's 2024 Annual Report, which can be found in PDF format on the Investors section of our website.

In terms of content, the report is divided into four main areas:

- General information, describing the basic sustainability framework, our approach and the principles we have used to compile the report.

- The environmental section, containing data on energy consumption, greenhouse gas emissions, water and waste management and pollutants. It is in this section that the Group's carbon footprint is detailed for the first time.

- The social area, focusing not only on employees and their working conditions - containing, among other things, the structure of employees by age and gender, information on work accidents or health and safety conditions. This section also includes information on working with customers.

- Governance and ethics, describing the setting of decision-making rules, mechanisms against corruption or money laundering, or why we have a group code of ethics.

How the report was written

The preparation of the first report was challenging and took many months. At various stages, dozens of colleagues from across the Group, including senior management - from finance, HR, environmental, energy and legal to commercial, innovation and technical teams - were involved. Those who coordinated data collection in their companies and divisions played a key role. Without their efforts, the whole process could not have been managed.

Each piece of data went through several rounds of checks, comparisons and methodological tuning. The final report is approximately 100 pages long and has been independently audited by PwC. Behind these pages are more than 5,000 rows of data in data collection tables that we have gradually consolidated, edited and manually processed.

Three pieces of data that (may) come as a surprise

From the full report, we pick out three indicators that we think best illustrate what ESG reporting means in practice - and may even surprise you a little.

- Carbon footprint

The MND Group's total carbon footprint for 2024 is 948,000 tonnes of CO₂ equivalent. Carbon emissions fall into three main categories according to international methodology:

o Direct emissions (Scope 1), which account for 12% of the total carbon footprint and are generated directly by our activities - for example, by using fuels for our own operations, operating our own vehicles or operating process equipment. These are emissions that we have direct control over.

o Indirect emissions from energy consumption (Scope 2), represent less than 1% of the total carbon footprint. These are emissions that occur outside our facilities but are a consequence of our activities - for example, in the production of the electricity or heat we consume. Although these emissions are 'invisible', they are part of our carbon footprint.

o Other indirect emissions (Scope 3) make up the largest part, 87% of our total carbon footprint. These emissions are not directly generated by us, but are associated with our activities - whether it is the purchase and transport of materials, third party services or, most importantly, the consumption of gas and oil products supplied by us by our customers. This item alone accounts for 784,000 tonnes of CO₂e, almost 83% of our total carbon footprint.

- Employees in numbers

At the end of 2024, the consolidated MND Group employed a total of 1,156 people, 1,079 in the Czech Republic and 77 in Ukraine. In terms of gender, the group employs 828 men and 328 women. This ratio has long reflected the technical focus of our operations, where, particularly in mining and drilling, many activities are very physically demanding and therefore traditionally more male-dominated. Conversely, women are over-represented in administrative and support roles.

- Age distribution of employees

The age structure of MND Group employees shows a balanced representation across generations.

o Employees under the age of 30 account for 14% and represent a natural generational progression across the Group.

o Employees aged between 30 and 50 make up the largest proportion, representing 56% of all employees.

o Employees over the age of 50 make up 30% and bring years of experience, industry expertise and professional stability to the company.

This combination brings benefits to the entire group while creating room for intergenerational cooperation, sharing of know-how and targeted talent development.

Putting the sustainability report into practice

Although the Sustainability Report in this form was created primarily because legislation mandates it, we now have in hand a document that brings together in a coherent and structured way information about the MND Group that was previously rather fragmented or not available at all. Thanks to the unified data collection across the group and its evaluation, we now have all the important non-financial data in one place, clearly and comprehensibly. This saves time, improves the quality of decision-making and helps with planning.

At the same time, it's not just an internal view - the data from the report and the report as a whole are of great importance externally. Banks, insurance companies, investors or business partners already routinely require this data and an objective and credible ESG profile supported by an audited report is a significant advantage for the MND Group, and for each individual company or division, in business relationships.

Last but not least, we cannot manage what we do not measure. The report gives us feedback and shows us what impact we are having, whether positive or negative. This gives us a solid basis for potential change and development.

Looking ahead and saying thank you

Producing the first sustainability report for 2024 has been a challenging but very enlightening experience for the MND Group. In the years to come, we aim to be more efficient and accurate thanks to the experience gained and the processes set in place.

Many thanks to all colleagues who contributed to the report. Regardless of job title or seniority, whether it was data collection, data validation, methodological support or coordination in individual companies. There was always a great desire to help and a willingness to go the extra mile. Without your patience and cooperation the report would not have been produced!