Climate Change Data

Environmental Metrics

ESG Focus Areas

• CO2 emissions reduction
• Responsible corporate governance
• Social responsibility
• Occupational health and safety
• Supplier sustainability

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 10% compared to 2021, totaling approximately 23,037 t CO2eq.
• Increased renewable energy consumption share to 21%.

Social Achievements

• 164 apprentices and interns trained.
• Average training hours per employee: 20.
• Reduced work-related injuries to 167 (accident rate 0, injury rate 2.20).

Governance Achievements

• Published a corporate governance report.
• Implemented a Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Irregularities in sales recognition, material costs, receivables, liabilities, and accruals/deferrals at a US subsidiary (2018-2022).
• Insecurity of supply and sharp rises in energy prices in Europe.
• Data loss incident.

Mitigation Strategies

• Internal investigation assisted by external forensic experts and lawyers.
• Implemented additional safeguards to prevent data loss.
• Implemented energy efficiency measures under the Journey to Operational Excellence (J2OX) program.

Supply Chain Management

Supplier Audits: Over 40% of company locations screened new suppliers using social criteria; around a third of companies issued their suppliers with the Supplier Code of Conduct.

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, update 2021

Certifications: ISO 9001 (23 companies), ISO 14001 (10 companies)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Mushroom-based packaging

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Responsibility
• Governance

Environmental Achievements

• Reduced Scope 1 and 2 CO2 emissions by 7% compared to 2022, totaling approximately 25,149 t CO2eq in 2023.
• Increased renewable energy share to 21% of total consumption (4 percentage points higher than the previous year).

Social Achievements

• Implemented a process for collecting, checking, and documenting information on conflict minerals from suppliers.
• Conducted external audits on child labor at two companies in higher-risk countries, finding no cases of child labor or non-compliance.
• Over 45% of company locations screened new suppliers using social criteria.
• Around a third of companies issued their suppliers with the Supplier Code of Conduct.

Governance Achievements

• First-time reporting on climate-related risks and opportunities in accordance with TCFD guidelines.
• Established CO2 ambassadors to embed the CO2 strategy in the Group’s companies.

Climate Goals & Targets

Environmental Challenges

• Increased CO2 tax on fossil fuels leading to higher operating costs.
• Keeping pace with developments in the circular economy by accepting additional costs in development and product life cycle management.
• Identifying the environmental footprint of Phoenix Mecano’s products and determining Scope 3 greenhouse gas emissions entails high costs and ties up human resources.
• Procuring new machinery and switching to more carbon-neutral production processes involves higher costs.

Mitigation Strategies

• Implementing a comprehensive CO2 strategy including new technologies, lean management, and investment in solar energy systems.
• Leveraging pricing power to pass on energy costs to customers.
• Minimizing waste in production and stepping up efforts to close internal loops.
• Examining the use of materials with increased recycled content when developing new products.
• Continuously expanding greenhouse gas reporting and involving suppliers.
• Renewing machinery and infrastructure on an ongoing basis and investing in the latest technologies.
• Engaging regularly with customers and partners to identify market trends.

Supply Chain Management

Supplier Audits: Over 45% of company locations screened new suppliers using social and environmental criteria.

Responsible Procurement

• Supplier Code of Conduct issued to around a third of companies' suppliers.
• Monitoring of the supply chain for 3TG (gold, tin, tantalum, and tungsten).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events affecting production or supply chain.
• Rising temperatures leading to higher energy requirements for cooling.
• Droughts impacting water availability.

Transition Risks

• Increased CO2 tax on fossil fuels.
• Stricter regulations on the circular economy.
• Stricter rules on greenhouse gas reporting.
• Higher costs associated with procuring new machinery and switching to carbon-neutral processes.

Opportunities

• Lower energy costs due to optimization measures and solar energy systems.
• Increased competitiveness due to lower energy costs.
• New areas of application for products in green technologies.

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001 (24 companies), ISO 14001 (9 companies)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed