Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Management
• Occupational Health & Safety
• Human Rights
• Supply Chain Responsibility
• Compliance
• Employee Well-being

Environmental Achievements

• Reduced natural gas and nitrogen consumption by approximately 5% and 2% respectively at BHTC Bulgaria compared to 2020.
• Implemented an improvement program in Germany to optimize daylight control and air conditioning in production, aiming for a 1,330,000 kWh annual electricity reduction (~21% of 2021 consumption).
• BHTC Bulgaria won first place in “The Greenest Companies in Bulgaria” competition.

Social Achievements

• Conducted the first global employee survey in 2021 with a 77% participation rate.
• Implemented various vaccination campaigns internationally to protect employees and their families during the pandemic.
• Donated protective equipment to volunteers in crisis areas.
• Promoted mutual acquaintance and understanding of other cultures through communication of local traditions and celebrations.
• Offered various employee well-being initiatives, including free vaccinations, virtual sports activities, and support for work-life balance.

Governance Achievements

• Established a global sustainability team and steering committee to oversee sustainability initiatives.
• Implemented a Compliance Management System with decentralized compliance officers and a Compliance Board.
• Developed a Code of Conduct for employees and suppliers.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting sales and on-site audits.
• Reducing energy intensity and transitioning to renewable energy sources.

Mitigation Strategies

• Established a cross-functional task force for COVID-19 crisis management.
• Implemented comprehensive behavioral, hygiene, and protective measures.
• Implemented an intensive improvement program to reduce energy consumption.
• Planning to switch to renewable electricity sources by 2025, including generating own electricity and purchasing renewable energy certificates.

Supply Chain Management

Supplier Audits: 38 on-site audits in 2021

Responsible Procurement

• BHTC Code of Conduct for Suppliers and Service Providers requiring compliance with human rights, working conditions, health and safety regulations, sustainable sourcing, environmental performance, and business ethics.

Climate-Related Risks & Opportunities

Awards & Recognition

• First place in “The Greenest Companies in Bulgaria” competition

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Occupational Health & Safety
• Compliance
• Supply Chain
• Human Rights
• Diversity & Equality

Environmental Achievements

• Reduced specific energy consumption by 17% (from 57.7 kWh/1000 EUR sales to 47.8 kWh/1000 EUR sales) compared to 2021.
• Increased renewable electricity share to 45% in 2022 from 41% in 2021.
• Installed a 499.8 kWp photovoltaic system at BHTC Mexico, generating 296 MWh of electricity (7% of electricity demand).
• Various optimizations of packaging materials in BHTC Germany, saving around 44% of paper packaging material per year.
• ISO 50001 certification for energy management achieved at the Bulgarian production site.

Social Achievements

• Reactivated internal talent development program “Energizing BHTC” in 2022.
• Provided LinkedIn Learning licenses and additional language courses for all employees.
• Organized several health campaigns and offerings at various BHTC locations (eye check-ups, vaccinations, etc.).
• Internal fundraising campaign for Ukraine war victims, with BHTC matching employee donations 1:1.

Governance Achievements

• Revised Code of Conduct for Suppliers and Service Providers in 2022 to align with new industry sustainability requirements.
• Procured a digital whistleblowing system in 2022.

Climate Goals & Targets

Environmental Challenges

• Anticipated challenges in specific energy consumption due to vertical integration of a new production step in China.
• Increase in accident-related KPIs in 2022, mainly at the German plant.
• Challenges in performing on-site supplier audits due to Covid-19 travel restrictions.

Mitigation Strategies

• Close monitoring of energy consumption targets and necessary adjustments.
• Implementation of individual measures to prevent recurrence of accidents at the German plant and intensified general training measures.
• Continued efforts to conduct on-site supplier audits despite challenges.

Supply Chain Management

Supplier Audits: 111 on-site audits in 2022

Responsible Procurement

• Code of Conduct for Suppliers and Service Providers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001 (all 5 production sites), ISO 45001 (2 production sites), ISO 50001 (Bulgarian production site)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• First product offers in normal and CO2-reduced versions.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy intensity by achieving the target corridor in 2022 and 2023 despite increased sales and a new energy-intensive production process in China.
• Increased renewable electricity share to 54% in 2023.
• Reduced Scope 2 emissions significantly compared to 2022.
• Reduced natural gas consumption by 25% in 2023.
• Installation of new heat pump systems in Germany to reduce natural gas consumption by 90%.
• BHTC Germany achieved first place in the “Stadtradeln” bicycle campaign, avoiding 4.711 kgCO2 emissions.
• BHTC Bulgaria won first place in the “The Greenest Companies in Bulgaria” competition.
• BHTC Mexico installed a recycling center for employees.
• BHTC Bulgaria implemented a solar-powered humidity control system.

Social Achievements

• Improved Group-wide accident indicators (LTIR and Lost Time Rate) compared to 2022 and 2021.
• Reduced the absolute number of accidents at the German site by more than 50%.
• Increased overall results in employee survey focus areas (Credibility, Respect, Fairness, Pride, and Camaraderie) by 4-6% globally.
• All locations except Germany and Bulgaria are certified as a “Great Place to Work”.
• Launched global talent development program “Energizing BHTC” and “IGNITE program” for young leaders.
• Implemented a digital whistleblowing system.

Governance Achievements

• Established an ESG workstream as part of the integration program with AUO Corporation.
• Revised Code of Conduct for Suppliers and Service Providers.
• Implemented a potential supplier Self-Assessment and Approval Form.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to global and geopolitical crises (price inflation, material shortages, rising energy prices).
• Vertical integration of a new energy-intensive production process in China.
• Limitations in technical properties and market availability of alternative materials in high volumes for CO2-neutral products.

Mitigation Strategies

• Solidifying sustainability strategy and shaping plans/roadmaps to achieve objectives.
• Transitioning to 100% green electricity by 2025.
• Expanding ESG-related KPI set.
• Complying with new regulatory requirements (CSRD, EU Taxonomy, German Supply Chain Act).
• Utilizing self-produced electricity from photovoltaic systems, green electricity purchase, and renewable electricity certificates.
• Exploring Corporate Power Purchase Agreements (CPPAs).
• Implementing a sustainability check-up in development reviews.
• Considering alternative raw material sources (mechanical and chemical recyclates, mass-balanced plastics).
• Creating a Product Carbon Footprint (PCF).

Supply Chain Management

Supplier Audits: 130 in 2023

Responsible Procurement

• Code of Conduct for Suppliers and Service Providers (requires compliance with human rights, working conditions, health and safety regulations, sustainable sourcing, environmental performance, and business ethics).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather and climate conditions

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: ISO 14001, ISO 45001, CSRD, EU Taxonomy, German Supply Chain Act

Certifications: ISO 14001:2015 (all 5 production sites), ISO 45001:2018 (2 production sites), IATF 16949 (all production and development locations)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• CO2-reduced versions of products

Awards & Recognition

• First place in Stadtradeln campaign (Germany)
• First place in “The Greenest Companies in Bulgaria” competition (Bulgaria)
• Third place in “green idea” category at “The Greenest Companies in Bulgaria” competition (Bulgaria)
• Award from SKODA Auto Volkswagen India Pvt. Ltd. for participation in ECO EDGE program (India)