Tenneco Inc.
Climate Impact & Sustainability Data (2021, 2022, 2023-01-01 to 2023-12-31)
Reporting Period: 2021
Environmental Metrics
Scope 1 Emissions:235,465 tCO2e
Scope 2 Emissions:1,080,791 tCO2e
Renewable Energy Share:10%
Total Energy Consumption:13,277,253 GJ
Water Consumption:7,305 megaliters
Waste Generated:159,932 tons
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- 9.8% reduction in greenhouse gas emissions intensity (Scope 1 and 2) compared to a 2019 baseline
- 8.3% reduction in energy use compared to a 2019 baseline
- 78% of waste from manufacturing was recycled
- 15% reduction in water withdrawal compared to a 2019 baseline
Social Achievements
- 17.9% reduction in injury incident rate compared to a 2019 baseline
- Launched three business resource groups (women, young professionals, and African heritage)
- Improved employee engagement scores since 2018
Governance Achievements
- Awarded Compliance Program of the Year Award by Compliance Week
- Appointed a dedicated ESG team, including a Senior Vice President and Chief ESG Officer
- Published a new Supplier Code of Conduct
Climate Goals & Targets
Long-term Goals:
- Explore science-based targets and long-term alignment with the Paris Agreement
- Reduce portfolio exposure to OE light vehicle internal combustion engines (ICEs) to less than 20% by the end of the decade
Medium-term Goals:
- Reduce Scope 1 and Scope 2 GHG emissions intensity by 30% by 2030 from a 2019 baseline
- Decrease operational energy demand by 10% by 2030 from a 2019 baseline
- Source 15% more renewable energy by 2030
- Reduce waste to landfill by 20% by 2030 from a 2021 baseline
- Increase gender diversity to one-third females globally at manager level and above by 2030
- Increase U.S. minority group representation to one-third at manager level and above by 2030
- Develop a strategy by 2024 to phase out 3TG smelters and refiners nonconformant with RMI in the supply chain
Short-term Goals:
- 100% of strategic partners reaffirm commitment to Tenneco Code of Conduct by end of 2022
- 100% of top sustainability high-risk/high-impact suppliers complete self-assessment by end of 2022
- Achieve 100% certification with IATF 16949, ISO 9001 or other applicable quality management standards for manufacturing sites by end of 2025
Environmental Challenges
- Global supply chain challenges due to the COVID-19 pandemic
- Antitrust investigation and litigation (resolved in 2021)
Mitigation Strategies
- Implemented Healthy Team, Healthy Tenneco program to support employee well-being during the pandemic
- Provided additional compliance manuals and training to mitigate antitrust risks
Supply Chain Management
Responsible Procurement
- Code of Conduct
- Supplier Code of Conduct
- Supplier Manual
- ESG risk ratings
- Supplier sustainability self-assessments
Climate-Related Risks & Opportunities
Opportunities
- Development of energy-efficient products
- Transition to electric and hybrid vehicles
Reporting Standards
Frameworks Used: GRI Standards, SASB Auto Parts Industry Standards
Certifications: ISO 14001, ISO 45001, IATF 16949
Sustainable Products & Innovation
- Zero-copper brake pads
- IROX 2 polymer bearing coatings
- Cold Start Thermal Unit (CSTU) technology
Awards & Recognition
- Compliance Week’s 2021 Excellence in Compliance Award
- Ethisphere’s 2022 World’s Most Ethical Companies
- Numerous customer awards related to product quality and service
Reporting Period: 2022
Environmental Metrics
Scope 1 Emissions:212,143 metric tons CO2e
Scope 2 Emissions:991,709 metric tons CO2e
Renewable Energy Share:6%
Total Energy Consumption:12,877,061 gigajoules
Water Consumption:7,455 megaliters
Waste Generated:177,168 metric tons
Carbon Intensity:64 metric tons CO2e/million USD revenue
ESG Focus Areas
- Environmental
- Social
- Governance
- People
- Planet
- Products
Environmental Achievements
- 21% reduction in greenhouse gas (GHG) emissions intensity (Scope 1 and 2) compared to the 2019 baseline
- 11% reduction in energy consumption compared to the 2019 baseline
- 78% of waste from manufacturing was recycled
- 86% of manufacturing sites were certified to ISO 14001 Environmental Management System
- 13% reduction in water use versus our 2019 baseline
- 19% reduction in the amount of waste sent to landfills compared to 2021 baseline
Social Achievements
- 21% ethnically diverse U.S. team members at the manager level and above
- 21% global women team members at the manager level and above
- Increased diversity spend with underrepresented businesses
- Launched new supply chain policies and required suppliers to adhere to our ESG expectations
- Improved the conformant rate of smelters and refiners by 1% from 95% to 96%
- 86% participation rate for the 2022 employee survey
Governance Achievements
- Received a silver medal for our sustainability ratings from EcoVadis
- Named by Ethisphere as one of the 2023 World’s Most Ethical Companies
- Implemented a human rights and ESG due diligence process in compliance with the German Supply Chain Due Diligence Act
- Established a new Global Product Council to drive effective and proactive customer warranty performance management
- Zero non-compliance incidents regarding the health and safety of products
Climate Goals & Targets
Long-term Goals:
- Develop a strategy by 2024 to phase out 3TG smelters and refiners nonconformant with Responsible Minerals Initiative (RMI)
Medium-term Goals:
- Reduce Scope 1 and Scope 2 GHG emissions intensity by 30% by 2030 from a 2019 baseline
- Decrease operational energy demand by 10% by 2030 from a 2019 baseline
- Source 15% more renewable energy by 2030
- Achieve 100% certification with IATF 16949, ISO 9001, or other applicable quality management standards for manufacturing sites by the end of 2025
Short-term Goals:
- Reduce waste to landfill by 20% by 2030 from a 2021 baseline
Environmental Challenges
- Supply chain disruptions
- Energy crisis in Europe impacting renewable energy sourcing
Mitigation Strategies
- Developed alternative sourcing strategies
- Continuously exploring renewable sourcing opportunities
- Implemented a new environmental High-Risk Activity management procedure
- Launched a supplier sustainability performance assessment program in partnership with EcoVadis
Supply Chain Management
Responsible Procurement
- Code of Conduct
- Supplier sustainability requirements
- ESG clauses in purchasing terms and conditions
- EcoVadis assessment program
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI Standards, SASB Auto Parts Industry Standard
Certifications: ISO 14001, ISO 45001, IATF 16949
Sustainable Products & Innovation
- Advanced hybrid friction material composites for OE brake pads
- Less resource-intensive iridium rings for spark plugs
Awards & Recognition
- Ethisphere’s 2023 World’s Most Ethical Companies
- Newsweek America’s Most Responsible Companies
- Cummins Global Corporate Responsibility Award
- Cummins North America Supplier Diversity Leadership Award
Reporting Period: 2023-01-01 to 2023-12-31
Environmental Metrics
Scope 1 Emissions:207,373 tCO2e/year
Scope 2 Emissions:994,109 tCO2e/year
Renewable Energy Share:6%
Total Energy Consumption:12,142,114 GJ/year
Water Consumption:7,645 ML/year
Waste Generated:186,271 tons/year
Carbon Intensity:63 metric tons CO2e/million USD revenue in 2023
ESG Focus Areas
- People
- Planet
- Products
- Corporate Governance
- Responsible Sourcing
Environmental Achievements
- Achieved a 23% reduction in Scope 1 and Scope 2 emissions intensity compared to the 2019 baseline.
- Reduced energy consumption by 16% compared to the 2019 baseline.
- 78% of waste from manufacturing was recycled.
- 9% reduction in waste sent to landfills compared to the 2021 baseline.
Social Achievements
- 31% reduction in recordable incident rate compared to the 2019 baseline.
- Added two new Business Resource Groups (PRIDE and Disability & Accessibility).
- Maintained a 21% global female workforce and 21% U.S. minority representation at the management level and above.
Governance Achievements
- Received a gold medal sustainability management rating from EcoVadis.
- Developed a comprehensive implementation plan to comply with the EU Carbon Border Adjustment Mechanism (CBAM).
- Implemented mandated human rights training and appointed a responsible person to support compliance with the German Supply Chain Due Diligence Act.
- Named to Ethisphere’s List of 2023 World’s Most Ethical Companies for the second year in a row.
Climate Goals & Targets
Long-term Goals:
- Net zero emissions
Medium-term Goals:
- Reduce Scope 1 and Scope 2 GHG emissions intensity by 30% by 2030 from a 2019 baseline.
- Decrease operational energy demand by 20% by 2030 from a 2019 baseline.
- Source 15% more renewable energy by 2030.
- Reduce waste to landfill by 20% by 2030 from a 2021 baseline.
Short-term Goals:
- Achieve 100% certification with IATF 16949, ISO 9001, or other applicable quality management standards for manufacturing sites by the end of 2025.
Environmental Challenges
- Supply chain disruptions
- Climate change related risks (physical and transition)
- Scope 3 emissions
Mitigation Strategies
- Developed alternative sourcing strategies
- Formalized an implementation plan for complying with the EU CBAM requirements.
- Continued the rollout of EcoVadis sustainability assessments to additional high-risk/high-impact suppliers.
- Co-founded the Accelerate Initiative to promote a sustainable automotive supply chain.
- Implemented a risk-based compliance and hazard management strategy for safety.
Supply Chain Management
Responsible Procurement
- Supplier Code of Conduct
- EcoVadis sustainability assessments
- Due diligence procedures
- Supplier training programs
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather
Transition Risks
- Regulatory changes
- Market shifts
Opportunities
- Development of energy-efficient products
Reporting Standards
Frameworks Used: GRI Standards
Certifications: ISO 14001, ISO 45001, ISO 50001, IATF 16949
Sustainable Products & Innovation
- Monroe® Intelligent Suspension CVSAe technology
- Öhlins ÖRX™ shock absorbers
- Clean Air’s aftertreatment and exhaust systems
Awards & Recognition
- EcoVadis gold medal
- Ethisphere’s World’s Most Ethical Companies
- Numerous awards from customers (Nissan, Cummins, etc.)