Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Action
• Safe, Diverse & Inclusive Culture
• Responsible Sourcing
• Committed to Integrity
• Sound Risk Management Practices
• Principled Growth Approach

Environmental Achievements

• Integrated solar energy at Italian locations to offset electricity needs; one location captures methane for renewable energy; Netherlands location generates more solar power than needed; working towards ISO 14001 certification at Słupsk, Poland facility; identified Scope 1 and Scope 2 emissions and created a clear path to science-based, net-zero GHG emissions targets; disclosed to the CDP to better understand TCFD requirements; advanced building core elements of TCFD-recommended climate-related disclosures.

Social Achievements

• Reportable injuries dropped from 12 in 2020 to 7 in 2021; Recordable Injury Rate (RIR) dropped from 0.93 to 0.42; launched first annual Global Safety Week; exceeded minimum target of 30% female representation on the Board for the second year in a row; completed Bloomberg Gender-Equality Index rating exercise; actively hiring diverse candidates; working with vendors employing differently-abled individuals; total training hours for direct employees increased to 12,131 hours (7.88 hours per employee).

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operational decisions; global supply chain fragility; increasing pressure and demand for more efficient, cleaner alternative fuel systems; understanding and managing Scope 3 emissions; advancing DE&I practices; strengthening risk management practices; strengthening supply chain resilience and due diligence; stringent ESG reporting regulations.

Mitigation Strategies

• Prioritized health, safety, and well-being of employees, customers, and communities; developed H2 HPDI fuel system for long-haul trucking applications; engaged S&P Global to understand Scope 3 emissions and draft response to TCFD recommendations; submitted responses to CDP; completed Bloomberg Gender-Equality Index assessment; initiated journey to foster a strengthened culture of “risk ownership”; developing ESG principles for responsible sourcing platform; incorporating ESG considerations into business strategy and decisions.

Supply Chain Management

Responsible Procurement

• Increased awareness and accuracy of conflict minerals reporting; harmonization of supplier quality manuals; strengthened Supplier Quality General Agreement to include ESG factors; developing ESG-related terms and conditions into supplier contracts; applying ESG criteria to supplier selection and auditing; unifying supplier quality manual to integrate Code of Conduct and ESG expectations.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products; H2 HPDI technology.

Reporting Standards

Frameworks Used: GRI Universal Standards, SASB Auto Parts and Electrical & Electronic Equipment Standards, TCFD

UN Sustainable Development Goals

• 3
• 5
• 7
• 8
• 9
• 12
• 13
• 16

Supporting SDGs through HPDI 2.0 technology utilizing Biomethane (RNG) and H2 HPDI technology using hydrogen; commitment to clean transportation solutions; focus on occupational health and safety, diversity, equity and inclusion, and responsible sourcing; commitment to integrity and ethical behavior.

Sustainable Products & Innovation

• HPDI 2.0 technology; H2 HPDI technology.

Environmental Metrics

ESG Focus Areas

• Decarbonizing transportation
• Diversity, Equity, and Inclusion (DE&I)
• Occupational health and safety
• Responsible sourcing
• Human rights
• ESG governance

Environmental Achievements

• Westport products sold in 2022 reduced CO2 emissions by 1,498,438 tons.
• 7% decrease in Scope 2 indirect emissions
• 54.5% increase in energy consumption from solar panels
• Reduced emissions by 4.8% in Poland and 12.6% in Italy
• Over 89% of total waste from the reported operating sites is recycled
• Started the Scope 3 emissions calculation

Social Achievements

• 100% of employees trained in Code of Conduct, including anti-bribery
• 44% female representation at the Board level
• 32% global workforce are female
• 4% voluntary turnover rate
• 71% of our +900 suppliers are local
• “Label of Excellence” in gender equality by the Piedmont region for the Italian facility

Governance Achievements

• Further structuring of the ESG governance pyramid
• 4 years say-on-pay advisory
• 100% suppliers delivered with an ESG survey
• 89% non-employee directors are independent

Climate Goals & Targets

Environmental Challenges

• Conflict in Ukraine impacted clients and business associates, causing a significant shift in the global economy.
• Global obstacles challenging progress towards ESG goals.

Mitigation Strategies

• Mobilized internal resources to help Ukrainians by organizing internal charity events.
• Continued education, promotion, and public advocacy for alternative solutions.
• Recognized the need for a diverse portfolio of options to decarbonize transportation.

Supply Chain Management

Supplier Audits: 100% of suppliers received an ESG survey.

Responsible Procurement

• Code of Conduct
• ESG criteria integrated into supplier contracts
• Responsible Minerals Initiative (RMI) template on conflict minerals

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 14001 (in progress for some sites), ISO 45001 (in progress for some sites)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• 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 16 (Peace, justice, and strong institutions)

Westport's technologies and initiatives contribute to these goals through decarbonizing transportation, promoting sustainable practices, and fostering a safe and inclusive workplace.

Sustainable Products & Innovation

• HPDI fuel system (biomethane and hydrogen)
• Hydrogen components (GFI brand)

Awards & Recognition

• EcoVadis Bronze Medal
• “Label of Excellence” in gender equality by the Piedmont region for the Italian facility

Environmental Metrics

ESG Focus Areas

• Decarbonizing transportation
• Safe, Diverse, & Inclusive Culture
• Responsible Sourcing
• Climate Action
• Committed to Integrity
• ESG Governance

Environmental Achievements

• 20% reduction in Scope 1 CO2 emissions
• 7% decrease in Scope 2 emissions
• Energy consumption decreased by 11.5%
• Over 90% of total waste from reported operating sites is recycled
• Scope 3 emissions calculation initiated
• UNI PRD 125:2022 certified for Gender Equality at Italian facilities

Social Achievements

• Friendly Workplace award at Polish facility
• Award for Excellence at Italian facilities
• 32% of global workforce is female
• 20% of management is female
• Parental Policy developed for Italian plants
• Scholarships provided to employees' children pursuing STEM degrees

Governance Achievements

• 44% female representation at the Board level
• Global Environmental Policy unveiled
• Global Health and Safety Policy introduced
• 5-year say-on-pay advisory vote
• Partnership with Ecovadis to boost Supply Chain Sustainability
• 89% non-employee directors are independent

Climate Goals & Targets

Environmental Challenges

• Insufficient data availability for comprehensive Scope 3 emissions calculation
• High costs and low benefit associated with energy recovery from engine testing processes
• Need to improve data collection for consistent reporting across all locations

Mitigation Strategies

• Three-year partnership with Ecovadis to develop a Responsible and Sustainable Procurement strategy
• Development of a specialized tool for environmental reporting and review of historical data
• Implementation of energy efficiency enhancements at Italian facilities
• Installation of solar panels at Polish and Italian facilities

Supply Chain Management

Supplier Audits: 117 key suppliers onboarded to Ecovadis platform (initial target)

Responsible Procurement

• Partnership with Ecovadis
• ESG-related terms and conditions in supplier contracts
• Due diligence initiatives to prevent conflict minerals

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: UNI PdR 125:2022 (Italian facilities)

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 9 (Industry, innovation, and infrastructure)
• SDG 8 (Decent work and economic growth)
• SDG 3 (Good health and well-being)
• SDG 5 (Gender equality)
• SDG 12 (Responsible consumption and production)
• SDG 13 (Climate action)
• SDG 16 (Peace, justice, and strong institutions)

Westport's technologies and initiatives contribute to these goals through decarbonization efforts, sustainable manufacturing practices, and social responsibility programs.

Sustainable Products & Innovation

• HPDI™ fuel system technology
• Hydrogen storage components
• Redesigned products with reduced material usage

Awards & Recognition

• Friendly Workplace award
• Award for Excellence
• Label Special Collaboration award