Climate Change Data

Environmental Metrics

ESG Focus Areas

• Workplace Responsibility
• Market Responsibility
• Environmental Responsibility
• Social Responsibility

Environmental Achievements

• 90% of consolidated plants were ISO 14001 certified
• Executed audits in 90% of plants to check implementation of internal procedures for avoiding soil and groundwater pollution
• Continued work on ‘New Environmental Technologies’ project to improve environmental performance

Social Achievements

• More than 80% of affected employees in Belgium were re-employed after a realignment program
• Most affected employees in China quickly found new jobs
• Interactive sessions with managers to address employee concerns
• Continued ‘Bekaert Leadership Journey’ management development program
• Supported various educational and community initiatives in China, Russia, Peru, India, and the US

Governance Achievements

• Won the 2012 EIPM Peter Kraljic Excellence Award for Supplier Relationship Management
• Granted the Preferred Supplier award by Schneider Electric
• 75% of plant management hired from the local community

Climate Goals & Targets

Environmental Challenges

• Rapid and structural changes in the global solar energy market
• Growing uncertainty in other markets
• Longer-term overall instability
• Increased lost time accidents and severity index compared to 2011 (due to footprint changes)

Mitigation Strategies

• Implemented a major realignment program with a fair severance plan and re-employment guidance
• Provided coaching tools to managers in sites experiencing major changes
• Introduced an assessment system to improve safety awareness and define specific training programs

Supply Chain Management

Responsible Procurement

• Buying raw materials from domestic suppliers whenever possible
• Helping suppliers develop their products and processes

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3 Guidelines/GRI Sustainability Reporting Framework

Certifications: ISO 14001

Sustainable Products & Innovation

• Special wire coatings
• Super and ultra-tensile steel cord
• Stainless steel wedge wires
• Cable armoring solutions
• Substitutes for solvent-based coatings

Awards & Recognition

• 2012 EIPM Peter Kraljic Excellence Award
• Preferred Supplier award by Schneider Electric

Environmental Metrics

ESG Focus Areas

• Workplace Responsibility
• Market Responsibility
• Environmental Responsibility
• Social Responsibility

Environmental Achievements

• Finalized the ‘New Environmental Technologies’ project, developing cost-effective solutions for waste aspects, including water recuperation and a zero liquid discharge project.
• Updated procedures for soil contamination prevention.
• 95% of consolidated plants achieved ISO 14001 certification.
• Developed Ternary Alloy Wire Coating (TAWI) steel cord, reducing cobalt needs in tires by 80%.

Social Achievements

• Launched an internal Learning & Development portal for managers.
• Organized International Health & Safety Week, exceeding the vitality challenge goal.
• Supported various educational and training initiatives in China, Russia, Venezuela, and Brazil.
• Continued health camp initiatives in India and the ‘Sarita Colonia’ Summer School program in Peru.
• Partnered with the National 4-H Council in the US.

Governance Achievements

• 100% of employees received the Bekaert Code of Conduct, addressing anti-corruption policies and procedures.
• Regular internal audits evaluate anti-corruption policies and procedures.

Climate Goals & Targets

Environmental Challenges

• A fire at the Bekaert manufacturing plant in Rome, Georgia (US).
• Reaching long-term profitability goals.

Mitigation Strategies

• Immediate actions to ensure customer supply continuity through existing stocks and alternative sourcing for the Rome, Georgia plant.
• Rapid restoration of part of the Rome, Georgia plant operations and reconstruction planned for full restart by June 2015.
• Focus on driving sustainable profitable growth.

Supply Chain Management

Responsible Procurement

• Conversations began with selected suppliers to investigate how progress could be measured on certain sustainability KPI's via integrated value chains.
• First steps to roll out the Suppliers’ Code of Conduct were taken at the end of 2014.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3

Certifications: ISO 14001, ISO 9001

Third-party Assurance: GRI-checked Application Level C

Sustainable Products & Innovation

• Water-based coated low carbon wires
• Ternary Alloy Wire Coating (TAWI) steel cord

Environmental Metrics

ESG Focus Areas

• Workplace Responsibility
• Market Responsibility
• Environmental Responsibility
• Social Responsibility

Environmental Achievements

• Replaced traditional lighting with LED lights in 90% of European and Asia Pacific plants, reducing energy consumption for lighting by 50%
• Progress in the treatment of used hydrochloric acid, with some plants reusing it on-site

Social Achievements

• Launched a new intranet to improve communication and engagement with employees
• Supported various educational and community initiatives globally, including safety awareness programs for children, chess workshops, and environmental projects

Governance Achievements

• 100% of employees received the Bekaert Code of Conduct, covering human rights, child labor, and forced labor
• Regular internal audits evaluate anti-corruption policies and procedures

Climate Goals & Targets

Environmental Challenges

• Increased repeatability and severity index for safety incidents due to footprint changes and integration of acquired entities
• Challenges in sourcing renewable energy, depending on availability and data

Mitigation Strategies

• Special efforts made to align safety management and practices with the Bekaert approach in newly acquired plants
• Implementation of ProSoil procedure to prevent soil and groundwater contamination
• Expanded programs to reduce water usage

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Conflict Free Sourcing Initiative
• Bekaert Supplier Code of Conduct (more than 40% of global spend agreed)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Guidelines (Core option)

Certifications: ISO 14001 (95% of consolidated plants), ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Amagnetic armoring wire for offshore windmills
• Customized drying and heating systems
• Ternary Alloy Wire Coating (TAWI®) steel cord
• Water-based coated low carbon wires

Awards & Recognition

• Silver recognition level from EcoVadis

Environmental Metrics

ESG Focus Areas

• Economic performance
• Environmental stewardship
• Social progress
• Employee safety and development
• Sustainable supply chain

Environmental Achievements

• Achieved annual energy reduction savings of 63 GWh (50% of the energy used for lighting) through LED program.
• 25% of electricity needs came from renewable energy sources (excluding China), 15% including China.
• 95% of Bekaert plants were ISO 14001 certified.

Social Achievements

• Launched BeCare, a global safety excellence program.
• More than 37 hours of training per employee on average.
• Supported educational and training initiatives worldwide, including earthquake-resistant construction training in Ecuador and science education projects in China and Brazil.
• Donated 10 houses to families affected by the earthquake in Ecuador.

Governance Achievements

• All Bekaert employees received the "Bekaert Code of Conduct", including anti-corruption policies. All managers received specific training and their commitment is renewed and monitored annually.
• Group Internal Audit department regularly audits adherence to policies and procedures.

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption due to increased production and product mix changes.
• Limited availability of renewable energy sources in some regions (e.g., China).
• Treatment of used hydrochloric acid.
• Overall pressure on profitability
• Political/economic/social instability in emerging countries
• Globalizing competition
• Wire rod price volatility and source dependency
• Evolution of environmental regulations

Mitigation Strategies

• Implemented Bekaert Manufacturing System (BMS) with energy reduction measures.
• Outsourcing treatment of used hydrochloric acid to external contractors; lab-scale tests to convert waste acid into reusable iron chloride solution.
• On-site recuperation of hydrochloric acid through regeneration unit.
• ProSoil procedure fine-tuned with concrete action plans to prevent soil and groundwater contamination.
• Programs to reduce water usage.
• BeCare safety program implementation.

Supply Chain Management

Supplier Audits: All suppliers covered by the Conflict Free Sourcing Initiative (CFSI) signed the Bekaert Supplier Code of Conduct or provided proof of following its principles.

Responsible Procurement

• Bekaert Supplier Code of Conduct
• Key supplier agreements (multi-year partnerships with sustainability, supply chain integration, and innovation as building blocks)
• Conflict Free Sourcing Initiative (CFSI)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Evolution of environmental regulations

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, Core option

Certifications: OHSAS 18001 (66% of employees covered), ISO 14001 (95% of plants), ISO 9001

Third-party Assurance: No external assurance

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Fortifix® (100% recyclable)
• Water-based coated low carbon wires
• Sawing wire for photovoltaic industry
• Super-tensile and ultra-tensile steel cords for tire reinforcement
• Bridon-Bekaert Ropes Group's polymer core ropes and NXG lubricants

Awards & Recognition

• Silver recognition level from EcoVadis

Environmental Metrics

ESG Focus Areas

• Economic performance
• Health and Safety
• Learning and development
• Diversity and equal opportunity
• Energy and emissions
• Water
• Effluent and waste
• Upstream sustainable supply chain
• Anti-corruption
• Customer privacy
• Human rights

Environmental Achievements

• Reduced energy intensity ratio for electrical energy by 3% and thermal energy by 10% compared to 2015.
• Completed LED light program, achieving annual energy reduction savings of 87 GWh.
• Implemented a zero liquid discharge water purification system in Ranjangaon plant, India.
• 95% of Bekaert plants were ISO 14001 certified.

Social Achievements

• Achieved 82% employee engagement score in a global employee survey.
• Implemented a global travel insurance policy for all employees.
• Further rolled out BeCare global safety program.
• Supported various educational and training initiatives in different regions.

Governance Achievements

• 100% of managers renewed their commitment to the Code of Conduct.
• Further extended the annual process of renewed commitment to the Bekaert Code of Conduct.
• Code of Conduct attached to all new labor contracts.

Climate Goals & Targets

Environmental Challenges

• Two fatalities occurred due to accidents at work.
• Safety performance deteriorated in 2017.
• Total energy consumption increased due to business growth and product-mix change.

Mitigation Strategies

• Thorough investigation of accidents and implementation of corrective measures.
• Renewal and worldwide re-implementation of Bekaert internal traffic procedure.
• Setting medium-term and long-term safety targets.
• Implementation of Bekaert Manufacturing System (BMS) to reduce energy consumption.
• Phased investments to achieve energy reduction targets.

Supply Chain Management

Supplier Audits: 30 audits – 42% spend coverage

Responsible Procurement

• Bekaert Supplier Code of Conduct
• Key Supplier Agreements
• Responsible Minerals Initiative (RMI)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: OHSAS 18001, ISO 14001, ISO 9001

Sustainable Products & Innovation

• Super-tensile and ultra-tensile steel cord for tire reinforcement
• 3rd generation sawing wire technology

Awards & Recognition

• Ethibel Excellence Index (ESI) Europe
• Kempen SRI
• EcoVadis gold recognition level
• ener.CON Europe Award 2018

Environmental Metrics

ESG Focus Areas

• Economic performance
• Gender diversity
• Integrity
• Safety
• Energy consumption reduction
• Renewable energy
• Greenhouse gas emissions
• Product and process innovation
• Upstream supply chain
• Conflict minerals
• Supplier Code of Conduct
• Supplier CSR audits

Environmental Achievements

• 43% of electricity needs came from renewable energy sources in 2020 (up from 42% in 2019)
• Reduced GHG intensity ratio for electrical energy by 5% in 2020 compared to 2019
• Total GHG intensity ratio decreased by 6.5% versus the reference year 2015 and by 3.5% versus last year
• 100% of steel scrap returns to the steel industry for recycling
• Ranjangaon plant in India has a zero liquid discharge water purification system
• Izmit plant (Turkey) reduced water footprint by more than 23,000 m³ per year
• Newcastle plant (UK) reclaims 95% of water use
• Indonesia plant installed a tank system to discharge rainwater into a ground well for environmental conservation
• Contagem plant (Brazil) reuses 97% of water (20,000m³ monthly)
• Zwevegem plant (Belgium) joined a project to reuse filtered wastewater

Social Achievements

• 80% participation rate in the Your Voice Counts engagement survey, indicating employees feel safe at work and able to balance work and personal responsibilities
• Impressive breakthrough in safety performance: Total Recordable Incident Rate down 22%, Lost-Time Incident Frequency Rate down 13%, Serious Injury rate down 85%
• Launched internal awareness campaign ‘Tus manos hacen magia’ in Inchalam, Chile, to encourage hand care
• 15 plants achieved 1 year without recordable safety incidents, 6 plants were 2 years incident-free, 4 plants achieved 3 years incident-free, and 2 plants were incident-free for 7 or more years
• Supported various schools in China and India with education materials and computers
• Supported Universidad de Cuenca in Ecuador with the design and building of a house for a family in need
• Donated personal protection equipment to hospitals and local communities worldwide in response to the Covid-19 pandemic
• Initiated a sewing program of face masks by unemployed citizens in Brazil, stimulating temporary employment

Governance Achievements

• 100% of managers and salaried professionals renewed their commitment to the Code of Conduct
• Implemented a People Performance Management (PPM) program
• Further extended the annual commitment process by rolling out a mandatory training session on ethical choices
• Started preparing a global ‘Speak Up’ campaign to encourage reporting of integrity concerns
• Introduced Information Security Rules and held the first Information Security Week

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacted operations, supply chains, and travel
• Reaching 100% BeCare safety training coverage was delayed due to the pandemic
• Reaching 100% Code of Conduct training for operators was delayed due to the pandemic
• Reduced number of supplier audits due to travel restrictions
• Shortages in the market for PPE due to the global rush

Mitigation Strategies

• Implemented global and local measures to safeguard employee health and safety
• Created eight workstreams to address the Covid-19 crisis, focusing on business continuity, supply chain security, and employee well-being
• Used various internal communication channels to keep employees informed
• Introduced a hybrid working model
• Set up a Virtual Supplier Campaign to strengthen competitiveness and overcome the health crisis together
• Secured timely supplies of PPE from certified suppliers

Supply Chain Management

Supplier Audits: 36 in 2020

Responsible Procurement

• Bekaert Supplier Code of Conduct
• Key Supplier Agreements
• Conflict Minerals Reporting Template (CMRT)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products
• Growth in renewable energy markets

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001 (87% of plants), ISO 9001, OHSAS (40% of plants, transitioning to ISO 45001)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Bezinox® non-magnetic armoring wire
• Dramix® steel fibers for concrete reinforcement
• Murfor® Compact masonry reinforcement
• Fortifix® road cracking reinforcement
• Water-based coatings
• High-tensile fences

Awards & Recognition

• Gold recognition level from EcoVadis (top 5% of companies assessed)
• Bronze Brandon Hall Group Excellence Award in Learning
• China Patent – Excellence Award for Bekaert TAWI®
• Level 3 gold category award for Proalco (Colombia) for energy efficiency and sustainability actions

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Supply Chain
• Health & Safety
• Talent
• Human Rights
• Ethical Standards
• Community Relations

Environmental Achievements

• Received a B level for the Climate Change listing in CDP (two-step improvement)
• Achieved a 'A-' score in CDP’s Supplier Engagement Rating (three-step improvement)

Social Achievements

• Inclusion in several ESG indices (Solactive GBS, GBS Global, Global Cyber Security, ISS ESG Screened, Solactive ISS ESG Screened, ISS SDG Aligned Global Markets, Kempen SRI, Euronext BEL ESG Index)
• Gold recognition level from EcoVadis (98th percentile of peer group)

Governance Achievements

• MSCI ESG rating of 'A' (above average)
• Silver level in the EthiFinance 2022 campaign

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, EU Taxonomy, Value Reporting Foundation (IIRC & SASB)

Certifications: Null

Third-party Assurance: EY (limited assurance for Scope 1 & 2 GHG emissions and Scope 3 GHG emissions; limited assurance on EU Taxonomy)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change mitigation
• Hazardous substances and materials
• Water
• Circular economy
• Own workforce
• Workers in the value chain and human rights
• Cyber and data security
• Business ethics

Environmental Achievements

• GHG emissions Scope 1 and 2 reduced by -4.6% compared to 2022 and by -15.1% compared to base year 2019
• GHG emissions Scope 3 from purchased wire rod reduced by -5.1% compared to 2022 and by -3.1% compared to base year 2019
• 42% of Bekaert’s 2023 consolidated revenue is generated from sales related to sustainable solutions
• 100% of steel-based scrap returns to the steel mills for recycling
• Installed a solar farm at its plant in Burgos, Spain, producing 16,000 MWh/year of electricity

Social Achievements

• 78% participation rate in global engagement survey 2023
• Average of 41 training hours per employee in 2023
• Employee retention rate of 96%
• Launched the Steel Rose Club in China to support women in the workplace
• Donated €150,000 to a local humanitarian organization after earthquakes in Turkey and Syria

Governance Achievements

• All managers and salaried professionals sign off the Code of Conduct annually
• Updated and implemented its Group Community Engagement Policy in 2023

Climate Goals & Targets

Environmental Challenges

• Lower sales volumes (-13.5%) due to reversal of raw material cost inflation, lower volumes, and normalization of energy surcharges
• Weakening safety results after five consecutive years of great progress
• Supply-demand imbalances in the recycled steel market impacting recycled steel content in wire rod

Mitigation Strategies

• Better pricing discipline, cost efficiencies, and improved business mix to improve resilience
• Reinforcing safety program through awareness campaigns, training, performance evaluations, and dedicated investments
• Working closely with strategic suppliers and international organizations to improve data quality and availability of recycled steel content

Supply Chain Management

Supplier Audits: 69 in 2023

Responsible Procurement

• Bekaert Supplier Code of Conduct
• Policy on Conflict Minerals
• Responsible Minerals Sourcing policy
• EcoVadis program for strategic suppliers

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and solutions for energy transition

Reporting Standards

Frameworks Used: GRI, SBTi

Certifications: ISO 9001, ISO 14001, IATF 16949, ISO 50001

Sustainable Products & Innovation

• Super- (ST) and ultra-tensile (UT) tire cords
• TAWI® ternary alloy wire coating
• Ampact™ PEEK-coated copper wire
• Currento® porous transport layers
• Steel and synthetic mooring rope solutions
• Armofor® thermoplastic tapes

Awards & Recognition

• Red Dot Design award for Bekaert brand design
• Solar Impulse Foundation Label for Dramix® steel fiber