Climate Change Data

Hirschvogel Holding GmbH

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:136,397 tCO2e (Scope 1 & 2)
Scope 1 Emissions:26,245 tCO2e
Scope 2 Emissions:83,911 tCO2e
Scope 3 Emissions:1,017,988 tCO2e
Total Energy Consumption:424,944 MWh
Carbon Intensity:78.68 tCO2e/million EUR (2022)

ESG Focus Areas

  • Sustainable products and technologies
  • Occupational health and safety
  • Material and resource efficiency
  • Employee advancement and development
  • Energy & Emissions

Environmental Achievements

  • Reduced greenhouse gas emissions in 2022 compared to 2019 despite production limitations and increased electricity consumption. Significant reduction in Scope 2 emissions by increasing the share of green electricity.
  • Commissioned a new electrically powered heat treatment facility in Denklingen, reducing reliance on natural gas.
  • 72% of 2022 investments flowed into green business (carbon-free mobility concepts).

Social Achievements

  • Established a corporate department for occupational health and safety in 2022.
  • Implemented a holistic approach to occupational health management at German sites since 2018.
  • Founded the Hirschvogel Business Network in 2021 to promote women in the company.
  • Offered free COVID-19 vaccinations to employees, family members, and partner company members.

Governance Achievements

  • Centralized sustainability management in 2022, establishing Corporate ESG.
  • Linked a syndicated loan with environmental and social factors, including emission reduction and Lost Time Incident Rate targets.
  • Regularly participates in various sustainability ratings.

Climate Goals & Targets

Long-term Goals:
  • Contribute to zero-emission mobility.
Medium-term Goals:
  • Generate 80% of sales from products related to e-mobility by 2030.
  • Reduce site-related emissions by approximately 50% by 2030.
  • Reduce Scope 3 emissions by 15% by 2030.
  • Reduce Lost Time Incident Rate by 30% by 2030.
Short-term Goals:
  • Generate 50% of sales from products related to e-mobility by 2025.

Environmental Challenges

  • Supply chain disruptions due to the COVID-19 pandemic, semiconductor crisis, and the Ukraine war.
  • High volatility in sales due to reduced customer call-offs.
  • High energy consumption due to energy-intensive production processes.
  • Significant Scope 3 emissions (approx. 91% of total emissions).
Mitigation Strategies
  • Adjusted production capacity utilization and implemented short-time work at some German locations.
  • Implemented energy efficiency projects resulting in annual savings.
  • Increased the share of green electricity to significantly reduce Scope 2 emissions.
  • Initiated on-site photovoltaic projects and exploring long-term power purchase agreements (PPAs).
  • Working with suppliers and customers to reduce Scope 3 emissions.
  • Developing solutions to reduce production-related greenhouse gases through the DekPro research project.

Supply Chain Management

Responsible Procurement
  • Local sourcing of production resources
  • Increasing use of recycled steel
  • Dialog with suppliers to reduce carbon footprint

Climate-Related Risks & Opportunities

Transition Risks
  • Regulatory changes regarding combustion engine vehicles
Opportunities
  • Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001 (most plants), ISO 50001 (most plants)

UN Sustainable Development Goals

  • All 17 UN Sustainable Development Goals

The report mentions alignment with the 17 UN SDGs and the Paris Climate Agreement.

Sustainable Products & Innovation

  • Components for e-mobility powertrains
  • Drive-independent components
  • Micromobility components (AXIMO platform)

Awards & Recognition

  • Great Place to Work (Mexico)
  • Most Preferred Workplace in Manufacturing (India)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:1,296,777 t CO2e/year
Scope 1 Emissions:33,304 t CO2e/year
Scope 2 Emissions:168,765 t CO2e/year
Scope 3 Emissions:1,094,708 t CO2e/year
Total Energy Consumption:456,155 MWh/year

ESG Focus Areas

  • Sustainable products and technologies
  • Energy & emissions
  • Material and resource efficiency
  • Occupational health and safety
  • Employee promotion and development

Environmental Achievements

  • Linked a syndicated loan with environmental and social factors, involving a 42% reduction of Scope 1 and Scope 2 CO2e emissions by 2030 compared to 2023 and a 30% reduction of the Lost Time Incident Rate by 2030 compared to 2022.
  • Replaced lighting in several production halls with LED lights, saving several 100 MWh/a.
  • Expanded a hot forging furnace to feed heat into the heating network, saving around 360 MWh of natural gas per year.
  • Expanded in-house electricity production with photovoltaic systems (1.2 MWp in China and 500 MWp in Mexico).
  • Improved the air compressor motor in India, resulting in an energy saving of 6,760 kWh/month.

Social Achievements

  • Offered free and anonymous telephone counseling service (Talingo EAP) to employees and family members.
  • Organized medical examinations for employees in Poland.
  • Implemented an active break concept to promote movement in production operations.
  • Opened a Hirschvogel Health Center in Denklingen, including a company medical practice and fitness area.
  • Implemented back injury prevention courses.

Governance Achievements

  • Established a centralized, company-wide sustainability management system (Corporate ESG) reporting directly to the Management Board.
  • Integrated sustainability into the strategic planning process.

Climate Goals & Targets

Long-term Goals:
  • Contribute to zero-emission mobility.
Medium-term Goals:
  • Reduce Scope 3 greenhouse gas emissions by 25% by 2030.
  • Generate the majority of sales by 2030 with products for e-mobility powertrains or drive-independent products.
Short-term Goals:
  • Reduce Scope 1 and 2 greenhouse gas emissions by 42% by 2030.

Environmental Challenges

  • Volatile influencing factors such as geopolitical conflicts impacting global logistics and supply chains.
  • Declining demand in e-mobility due to discontinuation of government subsidy programs.
  • Involving customers in inflation-related price increases.
  • Shortage of skilled workers, particularly in the USA and Mexico.
Mitigation Strategies
  • Achieved planned sales volumes despite demand-related challenges.
  • Increased sales of electromobility-related components.
  • 64% of investments in 2023 were made in the area of “Green Business”.
  • Offering partial retirement to retain valuable knowledge within the company.
  • Focusing on retaining talent and knowledge within the company.

Supply Chain Management

Responsible Procurement
  • Collaboration with suppliers to reduce Scope 3 emissions
  • Increased use of recycled steel and aluminum

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 50001, ISO 45001

Sustainable Products & Innovation

  • Components for e-mobility
  • Micromobility components (AXIMO brand)

Awards & Recognition

  • Great Place to Work (Mexico)
  • Most Preferred Workplace in Manufacturing (India)