HelloFresh : Non Financial Report 2023

Table of Contents
About this Report	3
Group Structure and Business Model	3
Sustainability Approach and Ambitions	4
Management Approach	4
Materiality and Risks Analysis	5
Planet	..............................................................................................................................................................	7
1.	Food Waste and Donations	8
	Avoiding and Reducing Food Waste	10
	Donating and Diverting Food Waste	11
	Donations Beyond Surplus Food	11
2.	Carbon Footprint	13
	Carbon Reduction	16
	Energy Efficiency and Green Energy	18
	Green Deliveries	19
3.	Packaging	21
	Avoiding, Reducing and Recycling Packaging	22
	Packaging Innovations	23
4.	Sustainable Sourcing	24
	Assuring Sustainable Sourcing through Recognized Standards and Certifications	25
People	26
5.	Employee Health and Safety	27
6.	Employee Diversity and Inclusion	29
7.	Employee Development	31
8.	Ethical Trading and Fair Labor	33
Governance	35
9.	Ethics and Compliance	36
10.	Food Safety	38
11.	Data Security	40
EU Taxonomy	43
Glossary	56
Independent assurance practitioner's report	58

Non-Financial Report 2023	2
HelloFresh SE

About this Report

This report represents the combined separated Non-Financial Report for HelloFresh SE and HelloFresh Group (further "HelloFresh") in accordance with Section 289b through Section 289e, and in conjunction with Section 315b and Section 315c of the German Commercial Code (HGB). The report also discloses the eligibility and alignment of HelloFresh activities in line with the EU Taxonomy Regulation (see pages 43-55). No specific reporting framework was applied to this non-financial report, as the meal-kit industry is not currently addressed directly by common reporting frameworks.

This report has been reviewed by KPMG AG Wirtschaftsprüfungsgesellschaft, to obtain limited assurance relating to the disclosures legally required in accordance with Sections 315b and 315c combined with 289b through 289e of the HGB. Please see the assurance statement on page 60.

Starting from 2024 financial year, HelloFresh will prepare its Sustainability Statement in accordance with the European Sustainability Reporting Standards (ESRS) to comply with the EU Corporate Sustainability Reporting Directive (CSRD), and will accordingly publish this information as part of the HelloFresh Management Report.

Group Structure and Business Model

HelloFresh was founded in 2011 as one of the first innovators in the meal-kit industry. Our mission is to change the way people eat - forever. Our meal kits contain nearly everything required to create varied, nutritious meals at home, helping our customers save time on shopping and meal planning. We also offer a wide range of ready-to-eat meals, snacks, pantry items, as well as food for pets.

We have built a strong, trusted brand over the years, and currently operate in 18 countries: Australia, Austria, Belgium, Canada, Denmark, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, New Zealand, Norway, Spain, Sweden, Switzerland, the United Kingdom, and the United States. The meal-kit market is our primary business vertical and is represented by our HelloFresh, EveryPlate, Green Chef, and Chefs Plate brands. We also operate a direct-to-consumerready-to-eat business vertical, represented by our Factor and Youfoodz brands, and other food-related business such as GoodChop, delivering high-quality meat and seafood from domestic family farms and fisheries. In 2023 we continued to expand our other food- related businesses launching The Pets Table, which delivers premium dog food. For tracking and disclosing progress on selected performance indicators, we separate our meal-kit business from our other businesses due to the difference in operations and processes.

Our business model allows us to manage a shorter supply chain compared to those used by grocery stores, and we operate on an agile make-to-order basis which gives us greater control over our resources and waste management. Further information on our business model is included in Section 1 of our Combined Management Report.

Throughout this report we refer to HelloFresh activities globally, however, in certain instances, it is necessary to differentiate between our North American Vertical, which includes the United States and Canada, and our International Vertical (all other 16 countries listed above). In some instances, we further specify regions, such as DACH (Germany, Austria and Switzerland), Benelux (Belgium, Netherlands and Luxembourg) and Nordics (Denmark, Norway and Sweden).

Non-Financial Report 2023	3
HelloFresh SE

Sustainability Approach and Ambitions

As the world's largest meal-kit company by revenue, we recognize the important contribution we can and must make in driving sustainable progress on environmental and social issues. In this report, we highlight the measures in place to manage our environmental impact, together with measures for managing the welfare of our stakeholders, including our workforce, supply-chain network, customers, and local communities.

Our Environmental, Social and Governance (ESG )approach is based on three distinct pillars:

Planet: Tracking and reducing food waste and our carbon emissions, avoiding, reducing and innovating packaging, adhering to an Ethical Trading Policy, sourcing ingredients responsibly and engaging in programs that support local communities, for example through food donations.

People: Promoting employee diversity, equity and inclusion, supporting employee health and well-being, maintaining stringent workplace safety measures and enabling employee growth and development.

Governance: Adhering to a comprehensive Code of Ethics, maintaining high standards of food safety and quality, upholding high standards of employee safety and implementing rigorous customer privacy and data protection measures.

Central components of our sustainability approach include the prioritization of a lean, short supply chain, favoring locally sourced products and operating on a make-to-order basis. We continuously look to new technologies and innovations to help us drive progress on our goals, while adding increased value for our customers and other stakeholders.

Through structured and targeted action, guided by our team of sustainability experts across the organization, we aim to make important contributions towards the UN Sustainable Development Goals, specifically, Goal 2: Zero Hunger, Goal 3: Good Health and Well-Being, Goal 5: Gender Equality, Goal 8: Decent Work and Economic Growth, Goal 12: Responsible Consumption and Production, Goal 13: Climate Action, Goal 14: Life Below Water and Goal 15: Life On Land.

More specifically, our environmental efforts will play a role in driving progress on climate action. Our work on sustainable packaging, reducing and diverting food waste, making our operations more energy efficient by utilizing more renewable energy and offering our customers more climate-friendly meals, will contribute towards the goal established by the Paris Climate Agreement to limit global warming to well below 2 degrees Celsius, preferably to 1.5 degrees Celsius compared to pre-industrial levels.

Management Approach

Our governance structure allows us to monitor, measure and communicate progress on our ESG goals. International and North American ESG topic leads are responsible for driving company-wide measures, monitoring progress on the targets and supporting regional sustainability managers in the local implementation of the measures. All regional, International and North American Sustainability Managers formally align on and exchange their experience, progress and challenges at least once a month. Our North American and International Vertical Sustainability Directors drive and oversee progress on environmental topics on a regular basis, and they report on progress and results against the global sustainability strategy to the C-level executives. In addition, the ESG Committee, formed of Supervisory Board members and chaired by John H. Rittenhouse, meets quarterly to discuss progress on ESG topics and to advise the Management Board. Since the members have detailed knowledge on sustainability reporting, it also assists the Audit Committee with disclosures related to ESG topics. Co-founder Thomas Griesel takes overall accountability for ESG on the HelloFresh Management Board.

Non-Financial Report 2023	4
HelloFresh SE

To incentivize sustainable and future-oriented action, our two key environmental targets concerning Greenhouse gas (GHG) emissions and food waste for 2025 are directly linked to management key performance indicators (KPIs), and represent 20% of the long-term variable compensation for the HelloFresh Management Board.

Progress towards our two key environmental targets in 2023 was substantial:

• We reduced carbon emissions from our meal-kit production facilities where HelloFresh has operational control by 65% per euro of revenue (from the 2019 baseline1)
• We reduced the food waste sent to landfill or incineration from our meal-kit facilities where HelloFresh has operational control by 77% per euro of revenue (from the 2019 baseline1).

We have established separate key environmental goals for our other businesses (now mainly represented by our ready-to-eat business vertical). This is due to two reasons: the rapid development of these other businesses and the substantial difference in operations compared with our meal-kit business verticals. The production of ready-to-eat meals has a different energy consumption and food waste generation profile because of the cooking processes involved. Despite these factors, in 2023, we reduced carbon emissions from our other businesses' production facilities where HelloFresh has operational control by 48% per euro of revenue and the food waste sent to landfill or incineration from facilities where HelloFresh has operational control by 80% per euro of revenue (both from a 2021 baseline2).

Materiality and Risks Analysis

In compliance with the HGB, this Non-Financial Report includes all topics deemed material for HelloFresh relating to environmental matters, employee matters, social matters, respect for human rights, anti- corruption, and anti-bribery.

We identify our material topics through a double materiality assessment. This helps us to determine the topics on which HelloFresh has the greatest impact, and the topics which can have the most significant impact on HelloFresh and our stakeholders. A comprehensive materiality assessment was conducted in 2021 (see pages 56 and 57 of the 2021 HelloFresh Sustainability Reportfor details). For this reporting cycle, our internal sustainability experts and leadership held a workshop to review the material topics and the materiality matrix developed in 2021. The 2023 revision confirmed the same material topics identified and disclosed in the previous reporting cycles.

For the next reporting cycle, we plan to further improve our double materiality assessment and conduct the analysis in compliance with the requirements of the CSRD.

• The 2019 baseline is out of the external assurance scope.
  2 The 2021 baseline is out of the external assurance scope.

Non-Financial Report 2023	5
HelloFresh SE

Material Topics for the 2023 Reporting Period

Report section

		Food waste and donations
		Carbon footprint
Planet	Packaging
		Sustainable sourcing
		Food waste and donations;
		Carbon footprint; Packaging,
		Responsible sourcing
		Employee health and safety
		Employee diversity and
People	inclusion
Employee development
		Ethical trading and fair labor
		Ethics and compliance
Governance	Food safety
		Data security

Identified material topic

Waste management and reduction

Climate change

Packaging life cycle management

Sustainable sourcing

Ecosystem services3

Employee health and safety

Diversity, equity and inclusion

Talent management

Human rights; Fair labor practices

Compliance

Food safety and nutrition

Data security

HGB (German Commercial Code)

Environmental matters

Environmental matters

Environmental matters

Environmental matters

Environmental matters

Employee matters

Employee matters

Employee matters

Human rights; Employee matters

Anti-corruption and anti-bribery

Social matters

Social matters

ESG Risk Management

A dedicated risk management function at HelloFresh identifies and assesses ESG risks linked to our business operations that could have a high negative impact both internally and externally, and outlines the actions to mitigate them. The 2023 risk assessment conducted in accordance with the HGB did not identify any non- financial risks regarding our business activities, business relations, our products or services, which are very likely to have an adverse impact on the non-financial aspects deemed material and listed in the table. This exercise also considers elements from the risk management regarding human rights and environmental matters, as part of our Ethical Trading Program. This program is further described in the chapter Ethical Trading and Fair Labor. The Combined Management Report contains additional information on opportunities and risks, as well as a detailed presentation of our risk management.

In 2024, HelloFresh will continue to elaborate the assessment, assessing impacts, risks and opportunities for each potential material topic as part of the CSRD double materiality assessment.

• All the relevant disclosure requirements, KPIs, management approach and overall concept overlap with existing material topics (waste management and
  reduction, climate change from GHG emissions, packaging life cycle management, and responsible procurement). Therefore, we do not address ecosystem services separately in this report, but view it as a cross-cutting material topic.

Non-Financial Report 2023	6
HelloFresh SE

Reducing food waste is integral to our sustainability approach, and our work in this area is formed by three key components: reduce, donate, and divert from landfill and incineration. Our business model inherently supports the reduction of food waste on two levels: within our own operations and at the point of consumption by our customers. Our make-to-order system allows us to source more accurate quantities of ingredients based on known consumer selections, rather than general demand estimates. This leads to lower volumes of unsold food and lower levels of food waste compared to the make-to-stock system typical for supermarkets. Our high inventory turnover also contributes to lower levels of food waste, as ingredients move more quickly through our lean value chain, from farm to fork. Lower levels of waste for meal kits were demonstrated in a 2022 study, which showed that using meal-kit boxes was associated with a 38% reduction in total meal waste at the consumer level, when compared to traditional meals.4

Benefits of our food waste reduction approach were also reflected in the Life Cycle Assessment (LCA) conducted in 2021, which compared the overall environmental footprint of popular HelloFresh meals with corresponding meals from supermarkets (buying the individual ingredients and preparing the meals at home), and with restaurant deliveries. Throughout the study, HelloFresh demonstrated, in general, a lower environmental burden compared to supermarkets and restaurant deliveries, with HelloFresh meals producing 25% fewer GHG emissions compared to supermarkets, and 5.5% fewer GHGs compared to restaurant deliveries.5 This is largely attributable to the lower levels of food waste within the HelloFresh supply chain (read more in the LCA Technical Summary).

• Resulted from an independent research which uses part of the data that HelloFresh collected from its customers: Schuster, Sebastian, et al. "Do meal boxes reduce food waste from households?" Journal of Cleaner Production (2022): 134001.
  5 Based on extrapolating averages from the results of the four regional markets analyzed in the study: Australia, the Benelux, Germany and Austria, and the US.

Non-Financial Report 2023	9
HelloFresh SE

Due to the significance and materiality of food waste to our sustainability vision, the HelloFresh Management Board, together with our Global Sustainability function, set clear targets on food waste reduction per euro of revenue for achievement by 2025:

1. Reduce food waste sent to landfill and incineration by 52% (0.29 grams per euro of revenue) from our meal-kit facilities where HelloFresh has operational control, from our 2019 baseline; and
2. Reduce food waste sent to landfill and incineration by 56% from our other businesses facilities where HelloFresh has operational control, from our 2021 baseline.6

We have implemented numerous initiatives across our markets in the last few years to progress towards these targets, and even with rapid business growth, we can report that in 2023 we are on the path to achieve our 2025 food waste goals. In 2023, we achieved a significant reduction of 77% of food waste per euro of revenue sent to landfill or incineration from all of our meal-kit facilities where HelloFresh has operational control (compared to 2019). For our other businesses we achieved a reduction of 80% of food waste per euro of revenue sent to landfill or incineration from all of our ready-to-eat and other facilities where HelloFresh has operational control compared with a 2021 baseline.6

Progress towards reducing food waste per euro of revenue will continue to be monitored quarterly by the Continuous Improvement Manager (International Vertical) and by the regional Sustainability Team (North American Vertical), and reported to the Management and Supervisory Boards.

Group Food Waste and Donations

1

2022 1,2

2021 3

2023

Meal-kit business

Food waste disposed4

2,524 T 6

3,852 T

859 T

Food waste disposed per euro of revenue

0.38 g 6

0.68 g

0.14 g

Food waste diverted from disposal5

6,035 T

4,405 T

6,569 T

Other businesses

Food waste disposed4

1,946 T

839 T

771 T

Food waste disposed per euro of revenue

2.18 g

2.73 g

0.54 g

Food waste diverted from disposal5

426 T

146 T

2,531 T

Total meal-kit and other businesses

Surplus food donated

12,100 T 6

9,982 T

10,370 T

% of surplus food donated

52.5% 6

52%

49%

• Proxy used for DE&AT waste data.

• Due to their recent launch in Q4 2022, waste data from the distribution centers in Madrid, Dublin and Barleben are not included in the analysis; Excludes add-ons (HF Market) in Bleiswijk distribution center (Netherlands)
  3 Data breakdown by businesses and by disposed / diverted is out of the external assurance scope. 4 Landfill or incineration.
  5 Composting, anaerobic digestion, land application or animal feed.
  6 Figure corrected based on revised process.

Avoiding and Reducing Food Waste

By optimizing our operations and using data monitoring software, we track, analyze and manage our food waste, contributing to overall source reduction.

Surplus fresh food from our operations is channeled to those facing food insecurity in our communities, via food donations to local charity partners (see Donating and Diverting Food Waste). Any leftover food, which is not appropriate for human consumption, is diverted wherever possible away from landfill or incineration and towards organic recycling options including composting, anaerobic digestion, land application, or animal feed.

• The 2019 and 2021 baselines are out of the external assurance scope.

Non-Financial Report 2023	10
HelloFresh SE