Climate Change Data

Environmental Metrics

ESG Focus Areas

• Employee well-being
• Ethical business practices
• Environmental impact reduction

Environmental Achievements

• 8 new sites deployed LED lighting, resulting in 5% electricity bill reduction and more than 70 tCO2e of GHG emissions saved at the Riva, Italy site.
• Thermal insulation on injection molding machines deployed on 6 sites, leading to significant savings (e.g., 7% electricity bill and over 100 tCO2e GHG emissions saved at Mioveni, Romania).
• 5 new sites implemented best practices to reduce power usage during non-production periods, saving over 4% on electricity bills in Villers-Bretonneux, France.
• 95% of sites are ISO 14001 certified.
• 100% of cooling systems are in closed circuit.
• 1500 tons of plastic waste avoided through on-site scrap shredding.

Social Achievements

• Accident frequency rate reduced to 2.95 from 3.3 (target 2.3).
• Plants Safety Golden Rules application self-assessment deployment rate increased to 91% (target 95%).
• Share of ISO 45001 certified plants increased to 22% (target 85%).
• Number of total training hours per employee increased to 7.7h (target >8h).
• Share of women amongst total external recruits increased to 43% (target 45%).
• Share of employees trained on e-learning Code of Ethics increased to 91% (target 100%).
• 55 solidarity actions carried out by employees.

Governance Achievements

• ESG self-assessment campaign launched for suppliers representing over 80% of total sourcing spend.
• Internal Control Matrices include 33 controls related to fighting corruption.

Climate Goals & Targets

Environmental Challenges

• Total 2022 Scopes 1 and 2 GHG emissions were approximately 11% higher than the previous year due to improved energy data reporting.
• Risk of above-acceptable temperatures, increased frequency of severe weather events, and restricted water access in several countries.

Mitigation Strategies

• Implementation of energy savings initiatives.
• Global risk assessment to anticipate constraints and leverage risk mitigation in action plans.
• Double-materiality approach planned for 2023.
• Internal competence reinforcement in ESG.

Supply Chain Management

Supplier Audits: ESG self-assessment campaign launched in 2022 for a group of suppliers representing more than 80% of total sourcing spend.

Responsible Procurement

• Supplier corruption risk mapping.
• Supplier performance assessment.
• Due Diligence questionnaire.
• Requirement for ISO 14001 certification.
• OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency of severe floods, hail, and tornadoes.
• Strongly restricted access to water.

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and renewable energy sources.

Reporting Standards

Frameworks Used: CDP

Certifications: ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 1, 3, 4, 5, 8, 10, 11, 12, 13, 14, 15, 17

Novares' actions contribute to several UN Sustainable Development Goals, as detailed in the report.

Sustainable Products & Innovation

• NOVA W8 solution (up to 30% part mass reduction)
• E-motor components (27 patents)
• Low-emission ICE systems

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Total 2023 Scopes 1 and 2 GHG emissions are approximately 2,7% lower than those of 2022
• Self-consumed 0,5% of its total electricity from locally established renewable photovoltaic (PV) power plants
• Number of ISO 50001 certified sites jumped from 13% in 2022 to 19% in 2023
• 97% of our production sites are now ISO 14001 certified

Social Achievements

• Internal audit confirmed that procedures were well applied by sites in all countries, according to the commitment stated in our Code of Ethics
• Code of Ethics was fully reviewed and updated
• Reporting relative to ESG topics were standardized
• 32% of open positions were staffed through internal mobility
• Onboarding satisfaction survey showed that 75% of respondents rated their experience positively

Governance Achievements

• Novares CSR governance guidelines redefined
• Internal competence reinforcement validated
• 3 sites obtained the TISAX label (2 Skill Centers and 1 plant)
• Code of Ethics was fully reviewed and updated
• Two Business Units were targeted to complete anti-fraud and corruption control self-assessment (94% compliance)

Climate Goals & Targets

Environmental Challenges

• Increase of work-related injuries in 2023
• Several concerned countries were at risk of above-acceptable level temperatures, increased frequency of severe flood, hail, and tornadoes, as well as strongly restricted access to water.
• Need to comply with upcoming European Union reporting requirements (CSRD)
• Need to comply with most demanding information security requirements from customers
• Limitations of in-house self-assessment for ESG risk management in the supply chain

Mitigation Strategies

• Strong actions were taken to identify, address and solve areas of concern related to work-related injuries
• Risk mitigation action plan developed based on risk mapping study
• Double-materiality analysis underway
• Deployment of the TISAX standard
• Selection of the Supplier Assurance platform from NQC for ESG risk management in the supply chain

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Supplier Quality Requirements Manual
• ISO 14001 certification for all supplier manufacturing sites
• ESG performance criteria integrated in supplier risk assessment

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency of severe flood, hail, and tornadoes
• Strongly restricted access to water

Transition Risks

• Regulatory changes (e.g., CBAM)
• Market shifts

Opportunities

• Development of energy-efficient products
• Development of bio-sourced plastics

Reporting Standards

Frameworks Used: CDP, UN Sustainable Development Goals, OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, EU’s General Data Protection Regulation (GDPR), TISAX standard by ENX

Certifications: ISO 50001, ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Novares contributions to UN SDGs are detailed throughout the report

Sustainable Products & Innovation

• Lightweight plastic solutions for electric vehicles
• Bio-sourced plastics

Awards & Recognition

• Not disclosed