Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced scrap rate to a historic low of 1.16%
• Improved carbon footprint assessment at company and product levels
• Increased renewable energy share to approximately 30%

Social Achievements

• Repositioned HR department into 'People & Culture' division focusing on employee development and satisfaction
• Implemented flexible scheduling and remote work options
• Maintained a 1000-man quota of 9.5 for safety incidents (significantly better than the previous year)

Governance Achievements

• Company-wide ISO 14001 and 45001 certifications confirmed
• Implemented new compliance and IT security policies
• Strengthened complaints and whistleblowing process

Climate Goals & Targets

Environmental Challenges

• Ongoing Covid-19 pandemic and its impact on global supply chains
• Subdued demand impacting revenue-based performance indicators
• Situational inefficiencies due to health and safety measures

Mitigation Strategies

• Refined Corona management with health and infection protection measures
• Continuous improvement projects to reduce energy consumption
• Expansion of cooperation with recycling companies

Supply Chain Management

Responsible Procurement

• Supplier evaluation including environmental management system assessment and distance to Carcoustics location
• Sustainability guideline for suppliers covering environmental, social, and ethical business conduct
• Cooperation with IGEP to minimize human rights violations in raw material procurement

Climate-Related Risks & Opportunities

Opportunities

• Development of lightweight products contributing to reduced vehicle CO2 emissions

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 45001

Sustainable Products & Innovation

• Lightweight products contributing to reduced vehicle weight and CO2 emissions

Awards & Recognition

• Family Friendly Company

Environmental Metrics

ESG Focus Areas

• Sustainable supply chain management
• Carbon footprint reduction
• Diversity, equity, and inclusion
• Compliance
• Operations efficiency
• Product lifecycle assessment
• Employee well-being
• Community engagement

Environmental Achievements

• Reduced fossil fuel consumption by 7-9%
• Reduced energy consumption by 2%
• Achieved Gold Medal in EcoVadis Sustainability Rating for Valencia plant (top 7% of industry)
• Installed photovoltaic system in Valencia plant

Social Achievements

• Maintained a low accident rate (1000 Man Quota of 8.5)
• Implemented ISO 45001 certification across all plants
• Supported local communities through donations and projects (e.g., soil decontamination project in Mexico, donations for Ukraine, Turkey, and Syria)
• Offered various employee benefits (remote work, sabbatical program, e-bike program)

Governance Achievements

• Established a grievance and whistleblowing channel
• Expanded compliance training to include occupational safety, human rights, business ethics, and discrimination prevention
• Revised Terms and Conditions of Purchase and Supplier Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the Russo-Ukrainian war and increased energy and raw material prices
• Shortage of skilled workers and competitive talent acquisition

Mitigation Strategies

• Established an Operations Improvement Projects department to implement a lean culture and centrally manage maintenance and facility management
• Expanded renewable energy sources (photovoltaic plants)
• Revised risk assessment and supplier selection processes for the Supply Chain Act
• Strengthened focus on employee well-being and satisfaction

Supply Chain Management

Supplier Audits: Periodic evaluation of all suppliers for production materials

Responsible Procurement

• Revised Terms and Conditions of Purchase and Supplier Code of Conduct; supplier evaluation includes environmental management system and distance to Carcoustics location; suppliers must comply with ethical business principles, export control regulations, and human rights standards

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lightweight products contributing to vehicle weight reduction and CO2 emission reduction during usage; recycling concept for thermoforming waste

Awards & Recognition

• EcoVadis Gold Medal for Valencia plant
• Family Friendly Company