Climate Change Data

LISI Group

Climate Impact & Sustainability Data (2020, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:34,375 tCO2e/year
Scope 2 Emissions:54,577 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Health and Safety at Work
  • Environmental Footprint
  • Retaining Talents and Strengthening Attractiveness of Business Lines
  • Guaranteeing Customer Satisfaction
  • Committing to a Responsible Supply Chain

Environmental Achievements

  • Reduced energy consumption by 4% vs 2018 per €1,000 of added value
  • Reduced water consumption by 13% vs 2018 per €1,000 of added value
  • Reduced waste production by 15% vs 2018 per €1,000 of added value
  • Installation of a cogeneration system on thermal treatment lines (Delle) saving 700 MWh/year and 125 tons of CO2/year
  • Set up an evapo-concentrator at La Ferté-Fresnel to treat wastewater, reducing water consumption by nearly 63,000 m3/year

Social Achievements

  • 100,424 hours of training provided in 2020
  • 84% satisfaction rate in the quality of life at work survey
  • Employee turnover rate of 5.34%
  • 23% women in the workforce
  • 23% women in management bodies

Governance Achievements

  • Separation of the functions of Chairman of the Board of Directors and Chief Executive Officer
  • Appointment of a lead director and Vice-Chairman
  • Two new employee representatives joined the Board
  • CSR criteria introduced in the annual variable remuneration of executive directors

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve a TF1 of less than 5 and eliminate arduous work positions by 2030
  • Reduce greenhouse gas emissions by 30% vs 2020, reduce energy consumption by 10% vs 2020, and achieve 20% renewable energy by 2030
  • Develop an agile and collaborative organization by 2030
  • Achieve “zero customer returns” and “zero delivery delays” by 2030
  • Assess 100% of strategic suppliers from a societal and environmental point of view by 2030
Short-term Goals:
  • Reduce accidents to a TF1 of less than 5 and eliminate arduous work positions by 2023
  • 100% of personnel to undergo at least one safety training per year by 2023
  • 100% of significant risks covered by an action plan by 2023
  • No sites with a TF1 greater than 10 by 2023
  • Reduce water consumption to eliminate dependence on resources in water-stressed areas by 2023
  • Reduce energy consumption by 5% compared to 2020 and achieve 10% renewable energy by 2023
  • Align male/female distribution in management bodies to the Group’s proportion (22% women) by 2023
  • Reduce consolidated absenteeism rate to less than 2.9% by 2023
  • Reduce non-critical incidents and the cost of internal non-quality by 10% by 2023
  • Analyze the position of suppliers regarding ethical, societal, and environmental criteria by 2023

Environmental Challenges

  • COVID-19 pandemic impacting all three business markets
  • Sudden drop in demand leading to a 28.9% decrease in sales
  • Market shutdown following health crisis
  • Client or supplier bankruptcy due to the health crisis
  • Lack of skills in a context of departures due to the health crisis
  • Sharp decline in the automotive market due to environmental standards
  • Decrease in customer order book and/or risk of marginalization after phases of consolidation or re-internalization at customers
Mitigation Strategies
  • Implementation of the NEW DEAL plan to protect employee health, preserve cash flow, and adapt to new market conditions
  • Lowering inventory levels, reducing production, adjusting investments, and attacking fixed cost base
  • Resizing the Group to adjust to new market conditions
  • Reviewing the product portfolio and assessing external growth opportunities
  • Focusing on high added value markets and growing markets
  • Accelerating the development of new parts related to vehicle electrification

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Updating LISI contractual frameworks specifying CSR requirements to its suppliers
  • Creating a supplier assessment questionnaire
  • Assessing strategic suppliers according to CSR criteria

Climate-Related Risks & Opportunities

Physical Risks
  • Sites located in seismic zones, and/or subjected to violent climatic events
Transition Risks
  • Sharp decline in the automotive market due to environmental standards
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: IIRC

Certifications: EN 9100 (aerospace), IATF 16949 (automotive), ISO 13485 (medical), OHSAS 18001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • OPTIBLIND™ robotic blind fasteners
  • LISI HOLLOWELD® hollow weld pin
  • EBS tapping screw

Awards & Recognition

  • 2020 Factory Trophy (Saint-Ouen-l’Aumône plant)
  • 2020 Grand Prix for Digital Acceleration
  • 2021 Climate Champion

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:291,487 tCO2 (326,812 t in 2021)
Renewable Energy Share:0.0%

ESG Focus Areas

  • Climate change
  • Resource efficiency
  • Support for local communities
  • Employee safety and well-being
  • Supplier engagement
  • Financial resource security

Environmental Achievements

  • 1% energy savings in MWh due to projects compared to 2021 consumption
  • 2.2% of CAPEX dedicated to energy efficiency
  • 18% of sites in water stress areas have an action plan
  • EcoVadis Gold medal (67/100)
  • CDP B rating for impact policy
  • Installation of solar panels on Fuenlabrada plant (Spain), producing ~20% of site electricity

Social Achievements

  • Creation of a CSR Department
  • 100% of production sites certified according to EN 9100/Nadcap, IATF 16949, ISO 13485 standards
  • 28.3% of female executives
  • TF1 (workplace accidents) = 7.1
  • Implementation of training courses for 280 managers in 2022
  • Launch of employer brand promotion on social media and Welcome To The Jungle

Governance Achievements

  • Signing of the first impact loan with BNP Paribas
  • Deloitte Best Managed Companies 2022 award
  • Ranked in the top 250 responsible companies by Statista – Le Point
  • Executive Compensation Linked To ESG: yes (criteria included in long-term incentive plans)

Climate Goals & Targets

Medium-term Goals:
  • Achieve 0.4% minimum renewable energy produced on site by 2030
Short-term Goals:
  • Reduce greenhouse gas emissions by 30% by 2030
  • Increase renewable energy share by 20% by 2030
  • TF1 < 7
  • 100% safety training

Environmental Challenges

  • Inflation, energy, and human resource challenges
  • Supply chain disruptions
  • Volatility of customer demand
  • Recruitment difficulties and tensions in the job market
  • Asymmetric inflation (risk of not passing through increased costs)
Mitigation Strategies
  • New Deal Plan (refocusing on high value-added activities, cash flow management, workforce and cost adjustments)
  • Negotiations with customers to neutralize inflation effects
  • Strengthening communication and creating a new recruitment platform
  • Strong action to manage working capital requirement (WCR)
  • Partnerships with customers (long-term contracts with passing-through clauses)
  • Development of insourcing and/or new suppliers
  • Industrial plans for savings, optimization, and relocation
  • Development of robotization

Supply Chain Management

Supplier Audits: 200 suppliers assessed on CSR criteria in 2022

Responsible Procurement
  • CSR assessment plan for key suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, ISO 26000

Certifications: ISO 14001, ISO 45001, IATF-16949, EN 9100, ISO-13485, TISAX

Sustainable Products & Innovation

  • Optiblind fastening system
  • Smart fasteners
  • LISI μ MACH ASSEMBLY PROCESS®

Awards & Recognition

  • EcoVadis Gold medal
  • CDP B rating
  • Statista top 250 responsible companies
  • Deloitte Best Managed Companies 2022

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:642,366 tCO2e/year
Renewable Energy Share:0.4%

ESG Focus Areas

  • Decarbonization
  • Attractiveness (talent acquisition and retention)
  • Productivity
  • People
  • Planet
  • Profit

Environmental Achievements

  • Reduced greenhouse gas emissions by 37% vs 2019 (partial scopes 1, 2, and 3)
  • Reduced water consumption by 19.9% vs 2022
  • 3 plants equipped with solar panels, generating 0.4% of the Group's overall annual renewable energy consumption.
  • 100% hydroelectric energy supply at Dorval site (LISI AEROSPACE, Canada)

Social Achievements

  • Launched "Welcome to the Jungle" platform for talent acquisition, resulting in over 47,000 visitors and 900 job offers published.
  • Partnership with "Elles Bougent" association to promote diversity and inclusion, with 38 employees acting as ambassadors.
  • Reduced workplace accidents (TF1) to 6.7 from 7.1 in 2022.
  • 28.1% women cadres.

Governance Achievements

  • Awarded the "Best Managed Companies 2023" label for the second consecutive year.
  • Received the "Saga Familiale" Prize for its long industrial history and local roots.
  • Updated supplier policy to strengthen CSR requirements.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions (scopes 1 & 2) by 2044 (LISI Automotive)
Medium-term Goals:
  • Reduce greenhouse gas emissions by 30% vs 2019 by 2030
  • Achieve 3% renewable energy produced on site by 2030
  • 100% of sites in water stress zones to have an action plan by 2030
  • Assess 100% of key suppliers on CSR criteria by 2030
Short-term Goals:
  • Reduce TF1 to 6.0 by 2024 and 5.0 by 2030
  • Increase women cadres to 28.5% by 2024

Environmental Challenges

  • High inflation on expenses and investments
  • Recruitment difficulties
  • Decarbonizing Scope 3 emissions (89% of total footprint)
  • Water stress at 11 sites
Mitigation Strategies
  • Increased sales prices to offset inflation
  • Unprecedented effort on training, safety, and quality of life at work
  • Agreement with ArcelorMittal to develop low-carbon steel
  • Action plans to reduce water consumption at water-stressed sites
  • Investment in renewable energy sources (solar panels)

Supply Chain Management

Supplier Audits: 57% of key suppliers assessed as per CSR criteria in 2023

Responsible Procurement
  • New supplier policy with strengthened CSR requirements
  • Agreement with ArcelorMittal for low-carbon steel

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 45001

UN Sustainable Development Goals

  • SDG 3
  • SDG 5
  • SDG 8
  • SDG 9
  • SDG 11
  • SDG 13

Sustainable Products & Innovation

  • OPTIBLIND™ fastener system
  • LISI-μ MACH ASSEMBLY PROCESS®

Awards & Recognition

  • Best Managed Companies 2023
  • Saga Familiale Prize
  • Airbus Innovation Award for OPTIBLIND™