Merit Automotive Electronics Systems, S.L.U.
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:69,165 tCO2e/year
Scope 1 Emissions:397 tCO2e/year
Scope 2 Emissions:3,792 tCO2e/year
Scope 3 Emissions:64,976 tCO2e/year
Renewable Energy Share:100% at Barcelona plant
Total Energy Consumption:13,961.24 MWh/year
Water Consumption:10,865.76 m3/year
Waste Generated:Data not fully consolidated, but Barcelona plant shows 86% recovery rate.
Carbon Intensity:Not disclosed
ESG Focus Areas
- Stakeholder Management
- Net Zero
- Circular Economy
- Social
- Suppliers
Environmental Achievements
- Reduced water consumption by 7.8% compared to 2021.
- Reduced energy consumption by 2.7% compared to 2021.
- 86% waste recovery rate at the Barcelona plant (5% increase from 2021).
- Reduced the ratio between the weight of the marketed product and its packaging by 27% in Spain.
- All sites certified to ISO 14001:2015 standard.
Social Achievements
- Implemented a self-development system and culture to attract and retain skilled professionals.
- Provided 13,404 training hours in 2022 (average 12.4 hours per employee).
- Implemented an Equality Plan in Spain (since 2012) to provide equal conditions for men and women.
- Reduced work absenteeism by 1% compared to 2021.
Governance Achievements
- Implemented a global Anti-Corruption Policy.
- Established an Ethical Escalation Policy with a suggestion box for reporting non-compliance.
- Implemented a Supplier Code of Conduct aligned with AIAG Automotive Industry Sustainability Guiding Principles.
Climate Goals & Targets
Long-term Goals:
- Become a Net Zero company
- Archive nearly 100% renewable energy consumption (>90%)
- Determine the environmental impact of 100% of the processes and products
- Obtaining Zero Waste certification
- 80% of local suppliers
- 100% of suppliers to be audited for ESG criteria and HR.DD.
Medium-term Goals:
- 50% renewable energy consumption
- Increase the presence of women at Executive/Senior Management levels to 25%
- 60% of suppliers to be audited for ESG criteria
- Determine the environmental impact of 50% of the processes and products
Short-term Goals:
- Conduct comprehensive materiality analysis
- Maintain materiality analysis updated
- Implement SBTi
- Archive nearly 100% renewable energy consumption (>90%)
- Validate SBTi objectives
- Increase the presence of women at Executive/Senior Management level to 15%
- Definition of a questionnaire for Human Right Due Dilligence
- 50% of local suppliers
Environmental Challenges
- Shortage of electronic components leading to ERTE (temporary employment regulation file) for employees.
- Temporary shutdown of Merit China plant due to Covid-19 regulations.
- High turnover levels in Mexico.
Mitigation Strategies
- Requested and extended ERTE for affected employees.
- Implemented mandatory daily PCR testing at Merit China plant.
- No specific mitigation strategies mentioned for high turnover in Mexico, but the report highlights efforts to improve employee well-being and retention.
Supply Chain Management
Supplier Audits: 33 audits globally in 2022.
Responsible Procurement
- Supplier Code of Conduct
- ISO 9001:2015 or IATF 16949:2016 certification required for suppliers.
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: GRI Universal Standards
Certifications: ISO 14001:2015 (all sites), ISO 45001 (Spain and China plants), IATF 16949:2016 (Barcelona, Poland, China, and Mexico plants), ISO/IEC 27001:2013 (Barcelona plant), TISAX (Barcelona plant)
Third-party Assurance: Crowe Accelera Management, S.L.
UN Sustainable Development Goals
- Good Health and Well-being
- Quality Education
- Gender Equality
- Reduced Inequalities
- Climate Action
Implementing the five strategic pillars of the Sustainability Strategy 2030 can help Merit positively contribute to these SDGs.
Sustainable Products & Innovation
- New multifunctional switch knobs (more compact and higher quality)
- New non-nitrogen atmosphere welding process
- New control and communication unit integrated into the steering wheel
- New control modules for technologically enhanced vehicles
- New incident detection modules for vehicles
- New control systems for levers
- New complete control modules in truck steering wheels
- New complete control modules for lever controls in steering wheels
Awards & Recognition
- Not disclosed
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:62.529,33 tCO2e
Scope 1 Emissions:266,64 tCO2e
Scope 2 Emissions:4.974,40 tCO2e
Scope 3 Emissions:57.288,28 tCO2e
Renewable Energy Share:5% (Poland)
Total Energy Consumption:15,249.63 MWh
Water Consumption:10,678 m3
Waste Generated:0.863 tons of waste*1,000 euros / Net sales
Carbon Intensity:0.52 Tn CO2e / Net Sales (2023)
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- 82% waste recovery at the Barcelona plant
- 5% recycling of non-hazardous waste in Mexico
- 5% renewable energy from photovoltaic panels in Poland
Social Achievements
- New Code of Conduct emphasizing equal employment opportunities and diversity
- Decrease of around 66% in dismissals compared to 2022
- 13,404 training hours provided
Governance Achievements
- Implementation of a comprehensive global Anti-Corruption Policy
- Ethics Escalation Policy established
- Conflict-of-interest questionnaire implemented
Climate Goals & Targets
Long-term Goals:
- 80% of local suppliers
- 100% of suppliers to be audited for ESG criteria and HR.DD.
- Obtaining Zero Waste Certification
- Become a Net Zero company
Medium-term Goals:
- Increase the presence of women at Executive/Senior Management levels to 25%
- 60% of suppliers to be audited for ESG criteria
- Determine the environmental impact of 100% of processes and products
- Achieve nearly 100% renewable energy consumption (>90%)
Short-term Goals:
- Increase the presence of women at Executive/Senior Management level to 15%
- Determine the environmental impact of 50% of the process and products
- 50% renewable energy consumption
Environmental Challenges
- Shortage of electronic components
- Rising prices and excessive inflation
- Slow customer spending, high-interest rates, and supply chain disruptions due to geopolitical tensions
Mitigation Strategies
- ERTE (Temporary Employment Regulation File) for employees due to component shortage
- Implementation of Sustainability Strategy 2030 to address challenges
- Continuous improvement and specific provisions for environmental legal compliance
Supply Chain Management
Supplier Audits: 19 audits in Spain, 8 global MCAs in Mexico, 21 audits in China (131.25% completion rate)
Responsible Procurement
- Supplier Code of Conduct aligned with AIAG Automotive Industry Sustainability Guiding Principles
- ISO 9001:2015 or IATF 16949:2016 certification required for all suppliers
- Customer Specific Requirements for 2023
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Regulatory changes, market shifts
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: GRI Universal Standards
Certifications: ISO 14001:2015 (all sites), ISO 45001 (Spain, China, in process for Mexico and Poland), IATF 16949:2016 (Barcelona, Poland, China, Mexico), ISO/IEC 27001:2013 (Barcelona), TISAX (Barcelona)
Third-party Assurance: Crowe Accelera Management, S.L.
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed