AS Sustainability Report

Materiality analysis and stakeholder engagement

Introduction

CEO letter

Air SERBIA’s Story

Air Serbia in 2025 - year in review

Governance

Environment

Economic value and connectivity

Social

Appendix

5.6 Management of material topics For each material topic, the company monitors actual and potential, negative and positive impacts, defines policies and commitments, implements concrete measures and tracks their effectiveness. The table below summarizes the management approach for the five material topics (the upper-right quadrant of the matrix); detailed management of each topic is addressed in the relevant thematic chapters of this report.

MATERIAL TOPIC

KEY IMPACTS (POSITIVE / NEGATIVE)

MANAGEMENT APPROACH AND MEASURES

An integrated Safety Management System (SMS) built on four components , safety policy, risk management, assurance and promotion , supported by a Just Culture that protects employees who report safety concerns in good faith. Renewed IOSA certification for the eleventh consecutive year in 2025, alongside a dedicated Security Management System (SeMS) aligned with ICAO Annex 17. Details in Chapter 9.5.

Positive: protection of the lives of passengers and crew, trust in the service. Negative: risk of incidents with severe consequences.

Flight safety and security

Governed by the company's HSE Policy, aligned with the principles of ISO 45001, and implemented through hazard identification, risk assessment and a company-wide digital incident-reporting system. Complemented by an occupational health programme of medical examinations and 4,523 hours of OHS training delivered in 2025. Details in Chapter 9.1.

Positive: a safe working environment, well-being. Negative: occupational risks and workplace injuries

Occupational health and safety

Managed through talent management, succession planning and a unified benefits framework applied consistently across contract types. Supported by structured internal mobility (184 promotions in 2025, a 12.2% promotion rate) and leadership development programmes. Details in Chapter 9.1.

Positive: knowledge retention, business continuity. Negative: turnover and loss of key personnel.

Workforce stability

Key finding. Flight safety and security is by far the highest-rated topic. A notable divergence is also observed for emissions management/SAF, which external parties rate very highly (4.49) while employees rate it below average (3.97) , indicating the need for a stronger internal focus on decarbonization.

Managed through disciplined financial planning, cost control and revenue and network optimization, monitored monthly by the Finance and Controlling function and overseen by the Supervisory Board and Shareholders' Assembly. Includes active assessment of climate-related financial risks, including EU ETS and CORSIA carbon-pricing costs and the rising cost of SAF obligations. Details in Chapter 8.1.

Positive: continuity, investment in sustainability. Negative: exposure to market and price shocks

Financial sustainability and resilience

Governed by compliance with GDPR, the Serbian Law on Personal Data Protection and the Law on Information Security, overseen by an appointed Data Protection Officer. Technical and organizational measures include annual security assessments and penetration testing, complemented by employee cybersecurity awareness training. Details in Chapter 6.5.

Positive: data protection and trust. Negative: risk of data breaches and cyber-attacks.

GDPR and cyber risks

Sustainability Report 23

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