Climate Change Data

Environmental Metrics

ESG Focus Areas

• Clean air
• Vehicle electrification
• Resource scarcity
• Safety
• Occupational health
• Sustainable sourcing
• People engagement
• Diversity
• Employability
• Energy efficiency

Environmental Achievements

• 7% improvement in energy consumption vs 2015 benchmark
• 30% year-on-year impact reduction in metal emissions to air
• 1% year-on-year impact reduction in metal emissions to water (after correction for activity levels)

Social Achievements

• Initiatives to enable Umicore to benefit more from diversity within the organisation
• Launched a global, company-wide mentoring program
• Introduced a new software tool to handle job vacancies, resulting in 32% of vacancies filled internally

Governance Achievements

• Aligned the reporting framework with the latest recommendations of the Global Reporting Initiative
• Obtained third-party assurance that cobalt purchases adhere to the Sustainable Procurement Framework for cobalt

Climate Goals & Targets

Environmental Challenges

• 59 lost time accidents in 2016 vs 47 in 2015
• A fatal incident occurred in Manaus, Brazil
• Increase in excess readings from biomonitoring
• Lower metal prices impacting recycling and refining activities
• EUR 69 million fine imposed by the French competition authority
• Unfavorable ruling in a patent case in the United States

Mitigation Strategies

• Reversing the trend in safety will be a top priority
• Programmes are in place to reduce exposure to metals
• A comprehensive action plan has been launched to address lead emissions at Hoboken
• Investments in strategic growth areas related to clean mobility and recycling
• Appealing the French competition authority's decision
• Appealing the US patent case ruling
• Sale of Zinc Chemicals activities

Supply Chain Management

Responsible Procurement

• Sustainable Procurement Charter
• Sustainable Procurement Framework for Cobalt

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Third-party Assurance: PricewaterhouseCoopers (PwC)

UN Sustainable Development Goals

• Goal 7: Affordable and Clean Energy
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

Umicore's activities contribute to these goals through clean mobility materials, recycling, and energy efficiency initiatives.

Sustainable Products & Innovation

• Automotive catalysts
• Cathode materials for lithium-ion batteries

Awards & Recognition

• Award for the best performing stock in the Bel20 index

Environmental Metrics

ESG Focus Areas

• Environment
• Labor & Human Rights
• Ethics
• Sustainable Procurement

Environmental Achievements

• Measures to reduce CO2 emissions from transport
• Purchasing of renewable energy
• Measures to reduce energy consumption
• On-site wastewater treatment unit
• Measures to reuse or recycle waste
• ISO 14001 certified on more than 81% of operational sites
• Closed-loop water cooling system in place

Social Achievements

• Measures to promote gender and/or minority inclusion in the workplace
• Employee stock ownership plan
• Employee satisfaction survey
• Collective agreement on diversity, discrimination, and/or harassment
• Flexible organization of work available to employees
• Health care coverage of employees in place
• Whistleblower procedure on discrimination and harassment
• 41-60% of operational facilities ISO 45001/OHSAS 18001 certified
• Provision of protective equipment to all impacted employees
• Transparent recruitment process
• Measures implemented to prevent child labor, forced labor and human trafficking
• Provision of skills development training

Governance Achievements

• Disciplinary sanctions to deal with policy violations
• Dedicated responsibility for ethics issues
• Incident response procedure (IRP) to manage breaches of confidential information
• Whistleblower procedure to report ethics issues
• Awareness training on ethics issues
• Audits of control procedures to prevent information security breaches
• Periodic corruption risk assessments performed
• Audits of control procedures to prevent corruption
• Specific approval procedure for sensitive transactions

Climate Goals & Targets

Environmental Challenges

• At least one significant controversy, fine or penalty regarding environmental issues in the last five years (IPE fines for Chinese sites in 2017, 2018)
• At least one significant controversy, fine or penalty regarding labor and human rights issues in the last five years (U.S. OSHA fines for health and safety violations, unfair dismissal case in Belgium)
• Low level of coverage of ethics actions throughout the company operations
• No supporting documentation regarding third party due diligence on ethics issues
• No information on social or environmental clauses being included in supplier contracts
• No supporting documentation available for capacity building of suppliers on CSR issues
• No supporting documentation for percentage of suppliers for which conflict minerals information is available
• Lawsuit allegations on procuring cobalt using child labor

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier CSR code of conduct
• Investigation or traceability system of the supply chain on conflict minerals due diligence

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/OHSAS 18001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Top Employer in Belgium, France and Germany

Environmental Metrics

ESG Focus Areas

• Climate & environment
• Digitalization & Cybersecurity
• Employee engagement
• Employee health, safety & wellbeing
• Ethical supply
• Innovation
• Investment in local communities
• Product quality & production capacity
• Product stewardship
• Responsible Governance
• Sustainability Governance
• Sustainable sourcing & Recycling services
• Waste
• Water

Environmental Achievements

• Nysa site Carbon neutral as of start of production with 100% green power supply
• Diffuse metal emissions -35% vs 2020 in Hoboken
• Avoided emissions 35m t CO2e from our e-mobility products & recycling services (2016 through 2020)

Social Achievements

• Retention rate 94%
• Share of women recruited into management positions increased to 45%, up from 30% in 2020

Governance Achievements

• Platinum ecovadis sustainability rating Top 1%
• Let’s Go For Zero strategy launched (Zero GHG emissions, Zero Harm, Zero Inequality)

Climate Goals & Targets

Environmental Challenges

• Safety performance was disappointing with 73 lost time accidents compared to 49 in 2020
• Supply chain disruptions due to semiconductor shortage
• Unfavorable platform and customer mix in its battery materials business
• Changing perceptions of the cathode materials market
• War in Ukraine

Mitigation Strategies

• Roll-out of programs aimed at creating a more prominent safety culture
• Reinforcing processes and safety standards
• Long-term sustainable lithium supply agreements signed
• Accelerated investments in the Hoboken plant to further reduce diffuse emissions
• Increased R&D expenditure
• Humanitarian support initiatives in response to the war in Ukraine

Supply Chain Management

Supplier Audits: 124 EcoVadis assessments in 2021

Responsible Procurement

• Umicore Global Sustainable Sourcing Policy
• Sustainable Procurement Framework for Cobalt
• Responsible global supply chain of minerals from conflict-affected and high-risk areas policy

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Water availability
• Drought

Transition Risks

• Declining demand for automotive catalysts due to electrification

Opportunities

• Increased demand for rechargeable battery materials
• Fuel cells
• Recycling services

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001, ISO 45001

Third-party Assurance: EY

UN Sustainable Development Goals

• SDG 3
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13

Umicore contributes to these goals through its clean mobility materials, recycling services, sustainable sourcing practices, and commitment to employee wellbeing and diversity.

Sustainable Products & Innovation

• Automotive catalysts
• Fuel cell catalysts
• Cathode materials for electric vehicles
• Battery recycling technologies

Awards & Recognition

• Platinum EcoVadis rating

Environmental Metrics

ESG Focus Areas

• Net Zero GHG emissions
• Zero inequality
• Zero harm
• Sustainable sourcing

Environmental Achievements

• Umicore catalyst technologies prevented 2.8 million tons of NOx emissions in 2021
• Umicore cathode materials prevented over 9.5 million tons of GHG emissions in 2021
• Umicore PEM catalysts prevented 147,000 tons of GHG emissions in 2021
• 1.8 million tons of GHG emissions avoided in 2021 through material input mix & recycling

Social Achievements

• 25% Women in management (2021)
• 21.6% Non-Europeans in senior management (2021)
• Wellbeing @ work program
• Sustainable sourcing champion

Governance Achievements

• SBTi validation of Umicore’s 2030 Scope 1/2/3 targets
• Sustainability linked debt instruments for a total amount of €1,091 million

Climate Goals & Targets

Environmental Challenges

• Continued global logistic disruptions, shortages of semiconductors, COVID-19 resurgence
• Cost inflation
• Volatile precious metal prices
• Limited inflation pass-through options due to global market dynamics

Mitigation Strategies

• Strong operational performance, efficiency gains countering inflation
• Passing through inflation, supporting margins
• Systematic hedging of transactional exposure
• Continued capex discipline for expansion programs

Supply Chain Management

Responsible Procurement

• Responsibly sourced materials

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SBTi

Sustainable Products & Innovation

• High-performance CAM for Solid State Batteries
• Next generation Li-ion battery recycling technologies

Awards & Recognition

• Mercedes-Benz Supplier Award 2022

Environmental Metrics

ESG Focus Areas

• Community development
• Environmental protection
• Social equality
• Minority empowerment

Social Achievements

• Supported numerous community initiatives through financial and in-kind contributions and employee volunteer time.

Governance Achievements

• Established a Group Donations Committee to manage corporate donations and ensure alignment with ESG goals.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Labor & Human Rights
• Ethics
• Sustainable Procurement

Environmental Achievements

• Environmental management system certification covers more than 75% of the assessed scope
• Water risk assessments performed
• External sustainability audit from a site of Group: no non-compliance found on environment
• Use of recovered input materials
• Reduction of hazardous substance generation or toxicity
• Specialized treatment and safe disposal of hazardous substances
• Reduction of material consumption through process optimization
• ISO 14001 certified

Social Achievements

• Labor and human rights management system certification covers between 51% and 75% of the assessed scope
• Actions in place to ensure health and safety of non-employee workers and other contracted workers on premises
• Skills development program tailored to employee needs
• ISO 45001 certified
• Family Friendly programs (FFPs) implemented
• Women development, mentorship, and/or sponsorship programs in place

Governance Achievements

• External sustainability audit from a site of Group: no non-compliance found on ethics
• Whistleblower procedure for stakeholders to report information security concerns
• Whistleblower procedure for stakeholders to report anti-competitive practices
• Whistleblower procedure for stakeholders to report corruption and bribery
• ISO 27001 certified (certification of information security management system)

Climate Goals & Targets

Environmental Challenges

• The 360° Watch has identified at least one significant controversy, fine or penalty regarding environmental issues in the last five years
• The 360° Watch has identified at least one significant adverse report regarding air pollution
• Declares some sites/operations located in or near biodiversity-sensitive areas, and the activities negatively affect those areas
• The 360° Watch has identified at least one significant controversy, fine or penalty regarding labor and human rights issues in the last five years
• The 360° Watch has identified at least one significant adverse report regarding employee health & safety
• External sustainability audit from a site of Group: presence of major or/and critical non-compliances on employee health & safety
• Declares that no commitment or review has been conducted regarding payment of living wage
• The 360° Watch has identified at least one significant controversy, fine or penalty regarding ethics issues in the last ten years
• The 360° Watch has identified at least one significant adverse report regarding corruption
• Supporting documents show a low level of coverage of ethics actions or certification throughout company operations
• Supporting documents show a medium level of coverage of sustainable procurement actions throughout company operations or supplier base
• Declares a percentage of suppliers for which conflict minerals information is available but no supporting documentation
• The 360° Watch has identified at least one significant controversy, fine or penalty regarding sustainable procurement in the last five years
• External sustainability audit from a site of Group: presence of major or/and critical non-compliance on sustainable procurement

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier sustainability code of conduct in place
• Procedure to disengage with a non responding supplier on conflict minerals issues

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Universal Standards

Certifications: ISO 14001, ISO 45001, ISO 27001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Company communicates progress towards the Sustainable Development Goals (SDGs)

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed