Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Employee
• Governance
• Product (Product efficiency and supply chain)
• Society

Environmental Achievements

• Reduced CO2 emissions from 151 g/km to 135 g/km (estimates based on WLTP values) by 2021
• Achieved savings in structural engineering materials, water, and energy consumption by 2020 at the Ostbevern site; reduction in residual waste by 2020
• Ostbevern site purchased green electricity from 2021

Social Achievements

• Organized vaccinations for its entire workforce in Europe and Asia
• Implemented measures to protect employees beyond legal requirements
• Offered employees in Ostbevern the option of using a company bicycle

Governance Achievements

• Established an Audit Committee by the end of 2021
• Revised the remuneration system of the Management Board, taking account of the new recommendations of the GCGC and approved by the Annual General Meeting on May 6, 2021

Climate Goals & Targets

Environmental Challenges

• Global COVID-19 crisis and strict lockdown in Vietnam from mid-July to end of September impacting production (30-40% capacity)
• Global supply problems with electronic components
• Rapidly rising commodity prices
• Worldwide shortages of freight capacity
• Impairment of goodwill of EUR 2.3 million for the transformer factory in Vietnam

Mitigation Strategies

• Alternative procurement sources for components
• New freight routes
• Pragmatic solutions with customers
• Agreements with contract manufacturers in China and India
• Building up inventories (accepting additional costs)
• Higher prices agreed with customers
• Stringent cost and liquidity management
• Implementation of SAP software and investment in property, plant and equipment to expand capacity, boost productivity and modernize

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier qualification process (self-disclosure questionnaire and on-site audit)
• FRIWO Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Increased legal regulations due to energy efficiency, climate change, and consumer protection

Opportunities

• Development of energy-efficient products
• Rapid charging systems to reduce charging times
• High-power devices
• Contactless solutions

Reporting Standards

Frameworks Used: GRI

Certifications: DIN ISO 9001, DIN ISO 14001, DIN ISO 13485

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Efficient charging units
• Charging devices for e-mobility solutions

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced energy consumption per product from 0.91 kWh in 2020 to 0.62 kWh in 2022.
• Reduced Scope 1 emissions by 33% and Scope 2 emissions by 3.5% compared to the previous year.
• Reduced water consumption by 10% compared to the previous year.

Social Achievements

• Increased employee count from 2182 in 2021 to 2501 in 2022.
• Provided 864 hours of training to 108 employees in Germany (8 hours per employee on average).
• Maintained a low workplace accident rate (1 accident in 2022).

Governance Achievements

• Established an effective Governance, Risk Management, and Compliance (GRC) system.
• No breaches of compliance obligations reported in 2022.
• Implemented a whistleblowing system.

Climate Goals & Targets

Environmental Challenges

• Initial increase in energy consumption due to insourcing of manufacturing processes in 2021.
• Climate change leading to market changes, supply chain disruptions, and increased costs.
• Potential supply chain risks related to sourcing raw materials from developing countries.

Mitigation Strategies

• Improved processes to drastically reduce energy requirements.
• Proactive risk management system to identify and address risks early.
• Stringent supplier selection process considering environmental and social standards and respect for human rights.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Considering compliance with environmental and social standards and respect for human rights when selecting suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Changes in temperature and weather conditions

Transition Risks

• Sudden changes in market conditions
• Rising energy and supply costs
• Supply chain disruptions

Opportunities

• Market leadership in the growing e-mobility sector.

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001, ISO 13485

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• FOX product range with high efficiency and low standby losses; LED drivers for energy-saving LED systems; components for electric drive systems.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• E-mobility
• Energy efficiency
• Circular economy
• Employee development
• Occupational health and safety
• Diversity
• Compliance
• Risk management
• Stakeholder dialogue
• Respect for human rights

Environmental Achievements

• Reduced energy consumption per product from 0.97 kWh in 2021 to 0.78 kWh in 2023
• Reduced scope 1 emissions by 16% in 2023
• Reduced scope 2 emissions by 8% in 2023
• Significant reduction in heating oil use at the German site

Social Achievements

• Provided 872 hours of training to employees in Germany in 2023 (average 5.5 hours per employee)
• Started four new traineeships in 2023
• Conducted numerous compulsory training courses on occupational safety, equal treatment, IT security, data protection, and corruption prevention

Governance Achievements

• Established an effective governance, risk management, and compliance (GRC) system
• No breaches of compliance obligations reported in 2023
• Implemented a protected electronic whistleblowing system

Climate Goals & Targets

Environmental Challenges

• Climate change leading to market changes, supply chain disruptions, rising costs, and deteriorated manufacturing conditions
• Increased energy consumption in 2021 due to insourcing of manufacturing processes

Mitigation Strategies

• Improved processes to drastically reduce energy requirements
• Selectively switching off lights, reduced air conditioning output, and optimized shift planning to reduce electricity consumption
• Electrification of the company car fleet in Germany
• Installation of additional charging points on company premises
• Conversion of newly acquired vehicles to hybrid drive systems since 2022

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Considering compliance with environmental and social standards and respect for labor and human rights when selecting suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Supply chain disruptions

Transition Risks

• Market changes
• Rising energy and supply costs
• Deterioration in manufacturing conditions

Opportunities

• Growth in the e-mobility market

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 13485, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• FOX product range with high efficiency and low standby losses
• LED drivers used in energy-saving LED systems
• Electric drive systems for two-wheeled vehicles

Awards & Recognition

• Not disclosed