Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Product lifecycle management
• Natural resource use
• Waste generation
• GHG emissions
• Human capital management
• Diversity, equity and inclusion
• Occupational health and safety
• Data protection and security
• Product safety
• Product quality
• ESG governance
• Board composition
• Ethics and compliance
• Supply chain management

Environmental Achievements

• Developed anode-free battery architecture designed to reduce materials consumption, waste, and emissions associated with anode materials sourcing and electrode manufacturing.
• Successfully completed Volkswagen Group milestone, delivering test cells.

Social Achievements

• 2021 voluntary turnover rate was 6.4% and involuntary turnover rate was 1.2%
• Improved new hire experience
• Upgraded parental leave program
• Launched a centralized platform for employee benefits access
• Formalized exit interview process

Governance Achievements

• Formed a sustainability working group comprised of internal stakeholders and external advisors to evaluate material ESG issues.
• Increased board’s gender diversity from 0% to 27% and racial/ethnic diversity from 20% to 27% between the end of 2021 and April 2022.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Challenges with respect to recruitment and retention
• Limited data for environmental metrics due to early stage of production

Mitigation Strategies

• Investing heavily in supply chain team
• Identifying industry-leading partners
• Carrying inventory
• Identifying secondary suppliers
• Requesting documentation from suppliers
• Internal testing

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritizing partners with high standards for environmental sustainability
• Analyzing and targeting areas of risk and opportunity in the supply chain

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: TISAX (based on ISO/IEC 27001 and ISO/IEC 27002)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7: Affordable and Clean Energy
• SDG 9: Industry Innovation and Infrastructure
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 3: Good Health and Well-Being
• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities

QuantumScape's efforts align with these SDGs through its battery technology development, resource efficiency, waste reduction, and social initiatives.

Sustainable Products & Innovation

• Anode-free battery technology

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Recycled more than 10,000 pounds of battery components in 2022.
• New fast separator production process uses fully electrified heat treatment equipment, eliminating fossil fuels.

Social Achievements

• Company grew by 50% in 2022, with a 10.4% voluntary turnover rate (compared to 17% average for Northern California tech companies).
• Implemented unconscious bias training for senior leaders and a job leveling framework to ensure fair hiring and promotion practices.
• Established the foundation for a job-leveling framework.

Governance Achievements

• Adopted a new Supplier Code of Conduct.
• Increased board gender diversity from 0% to 27% and racial/ethnic diversity from 20% to 27%.

Climate Goals & Targets

Environmental Challenges

• Limited data available due to being a development-stage company.
• Supply chain disruptions (e.g., contaminant discovery affecting separator production).

Mitigation Strategies

• Established a sustainability working group to identify and prioritize material ESG issues.
• Collaborated with suppliers to address the contaminant issue and implement quality controls.
• Developing a long-term manufacturing plan and securing long-term supply agreements with key partners.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (covering labor standards, health & safety, environmental impact, responsible sourcing).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, TCFD, UN SDGs

UN Sustainable Development Goals

• SDG 7: Affordable and Clean Energy
• SDG 9: Industry, Innovation and Infrastructure
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 3: Good Health and Well-being
• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities

QuantumScape's efforts align with these SDGs through its battery technology, supply chain practices, and social initiatives.

Sustainable Products & Innovation

• Anode-free battery design reduces material consumption and emissions.

Environmental Metrics

ESG Focus Areas

• Environmental Product Impact
• Product Safety
• Supply Chain
• Workplace Health and Safety
• Human Capital Management
• Diversity, Equity, and Inclusion
• Data Protection and Security
• Ethics and Compliance

Environmental Achievements

• Recycled more than 30,000 pounds (about 13,608 kg) of battery components in 2023.
• Battery technology designed to enable significant benefits to battery energy density, cycle life, fast charging, and safety, while providing a pathway to lower costs.

Social Achievements

• Launched programs designed to engage, develop and recognize our employees, including Quarterly Employee Topics meetings, Leader Path Training, Employee Recognition Award Program, and Regular annual 360 feedback review.
• OSHA Recordable Incident Rate (TRIR) of 1.0 in 2023, well below the 2022 battery manufacturing industry average TRIR of 2.6 and 2022 motor vehicle manufacturing industry average TRIR of 5.91.

Governance Achievements

• Established policies and processes for assessing, identifying, managing and disclosing risks from cybersecurity threats.
• Adopted a Code of Conduct and a Global Anti-Bribery and Anti-Corruption Policy.

Climate Goals & Targets

Environmental Challenges

• Transition from prototype to product and adapting to new opportunities, including a potential shift in business model towards licensing technology instead of manufacturing.
• Establishing a baseline for Scope 1 and 2 GHG emissions as a pre-commercial company.

Mitigation Strategies

• Forming a sustainability working group to evaluate engagement with sustainability topics and develop a comprehensive strategy.
• Investing in systems, processes, and team to measure and continuously improve environmental performance across the value chain.
• Planning to publish Scope 1 and 2 GHG data once business operations and manufacturing processes have matured.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Formalized supplier code of conduct in 2022; analyzing and targeting areas of risk and opportunity in supply chain, prioritizing partners with high environmental sustainability standards.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Solid-state lithium-metal battery technology designed to reduce environmental impact, improve safety, and enable longer battery life and faster charging.

Awards & Recognition

• Not disclosed