Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Well-being
• Citizenship

Environmental Achievements

• Initiated measurement of all CO2 emissions at a corporate level based on the Greenhouse Gas Protocol.
• Implemented various initiatives such as installation of solar screen shades and panels, and improvement of waste management processes (e.g., bio-decomposing machine in Hosur, India).
• Reduced injury rate every year for the past 10 years, dropping from 5.9 per 100 employees in 2007 to 1.2% in 2017.
• Aims to reduce energy consumption in 2018 by 5%.

Social Achievements

• Lowest accident rate in a decade.
• Well-being programs for more than 15 years, ranging from health screenings and flu vaccinations to coaching in areas such as chronic diseases, lifestyle improvements and maternity care.
• 9,500 hours of training were made available to 80% of the employees at Piossasco, Italy in 2017.
• Faiveley Transport Italia site offers flex time to its employees, carries out regular Stress and Well-Being surveys, and provides an annual welfare payment.

Governance Achievements

• Clear policies for well-being, training and antidiscrimination.
• Code of Conduct and Ethical Behavior makes it clear that Wabtec does not tolerate discrimination.
• Ethics and compliance hotline accessible from around the world.
• 80% of preferred suppliers assessed to assure compliance with Railsponsible standards.

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions.
• Maintaining a zero-accident workplace.
• Meeting the demands of urbanization, digitalization, environmental protection and rapid technological advancement.

Mitigation Strategies

• Created a dedicated corporate function to coordinate and lead global sustainability activities.
• Implemented seven sustainability initiatives across its plant network (LED lights, heat exchangers, solar screen shades, solar panels, leakage detection systems, rainwater harvesting systems, waste management improvement).
• Developed a range of solutions to improve efficiency (hybrid propulsion solutions, energy-saving HVAC products, aerodynamic design, switch to electric door mechanisms).
• Implemented programs to restore water levels and avoid wasting water resources (percolation pit, roof water collection and filtration).

Supply Chain Management

Supplier Audits: 80% of preferred suppliers assessed in 2017

Responsible Procurement

• Compliance with Railsponsible standards

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol

Certifications: ISO 14001 (94 sites)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Hybrid propulsion solutions, energy-saving HVAC products, oil-free compressors, low Global Warming Potential refrigerants, EcoPark systems

Awards & Recognition

• George Westinghouse Brake-Through in Safety Award (Faiveley Transport Italia site in 2017)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Resource Efficiency
• Safety
• Diversity & Inclusion
• Community Investment

Environmental Achievements

• Broke ground on a new DGNB Gold-certified property in Bochum, Germany, with sustainability and efficiency features that create a net reduction of 500 tons of CO2 per year.
• Opened a LEED Platinum-certified Engineering and Technology Center in Bengaluru, India.
• Upgraded employee shuttle buses and facility forklifts with battery-driven vehicles at its Shanghai, China manufacturing site, saving 2,803 gallons of gas and 528 liters of diesel fuel per year and reducing CO2 emissions by 10 tons per year.
• Eliminated more than 2,600 pounds per year of hazardous waste at facilities in China.
• Recycled more than 500 tons of cardboard and 1,750 tons of wood at its Erie, PA facility.
• Implemented composting programs at plants in France and India.
• Returned more than six million kWh to the grid at its Grove City, PA engine plants and over one million kWh at its Erie, PA plant.
• Installed a 750 kW solar power plant in Leipzig, Germany, delivering 30-50% of the site’s total power consumption.
• Installed solar panels at its Tianjin, China third-rail manufacturing site, generating over 3,000 kWh per year.
• Saved roughly 40,000 kWh per year across China by installing more than 1,200 LED lights.

Social Achievements

• Relaunched the Environment, Health, and Safety component of the Wabtec Management System (EHS WMS) to strengthen its management system approach to addressing EHS risks.
• Launched a Lean transformation model focused on 10 key value streams to maximize value for the customer, remove waste, empower employees, and optimize the enterprise.
• Awarded the George Westinghouse Award for Safety to its Saltillo locomotive cab manufacturing plant in Mexico for zero recordable injuries in 2019.
• Implemented a Shared Safety Program at its Locomotive plant in Contagem, Brazil.
• Launched its COVID-19 Crisis Management Team to protect employees, serve customers, and ensure business continuity.
• Provided support to communities and frontline workers during the COVID-19 pandemic (e.g., producing face shields, providing radiators for generators, making masks, delivering meals).

Governance Achievements

• Updated its performance management process to align individual performance, behaviors, and business results with individual rewards.
• Launched training and resources for managers on conducting reviews and providing constructive feedback to employees.
• Established a Diversity and Inclusion Council in 2020, led by members of Wabtec’s executive leadership team.

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions and energy intensity across its global operations.
• Reducing water consumption in water-scarce regions.
• Attracting and retaining talent in a competitive global market.
• Maintaining a strong safety culture across its diverse global operations.
• Responding to the challenges of the COVID-19 pandemic.

Mitigation Strategies

• Setting a corporate goal of a 30 percent reduction of both greenhouse gas emissions intensity and energy intensity by 2030.
• Implementing water conservation programs at manufacturing sites in water-scarce regions.
• Actively engaging in workforce development programs, recruiting college graduates, and offering leadership development programs.
• Implementing the EHS WMS to strengthen its management system approach to addressing EHS risks.
• Launching a Lean transformation model to improve efficiency and empower employees.
• Launching its COVID-19 Crisis Management Team to address the challenges of the pandemic.

Supply Chain Management

Supplier Audits: Approximately 10% of suppliers in high-risk countries audited in 2020. Goal to increase to >90% by 2030.

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol

Certifications: ISO 14001, ISO 45001, OHSAS 18001, LEED Platinum, DGNB Gold

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• FLXdrive™ locomotive
• Tier 4 engine
• FDL Advantage program
• Auto engine start/stop technology
• Electric drive systems for mining trucks
• Trip Optimizer™
• SmartHPT™
• Movement Planner™
• RailConnect™
• I-ETMS™
• Improved HVAC systems
• New friction materials to reduce braking dust emissions
• Metroflexx brake system
• BlueFilter™ air filtration system
• Electric bus and ferry charging stations

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas (GHG) Emissions
• Energy & Renewables
• Innovation & Technology
• Business Ethics & Compliance
• Data Privacy & Cybersecurity

Environmental Achievements

• 20% reduction in Greenhouse Gas Intensity (tons/$millions in sales) vs. 2019 baseline
• 14% reduction on energy intensity (MJ/$sales) from 2019
• 333 million pounds of end-of-life material recycled, reused, or remanufactured (13% increase from 2019)

Social Achievements

• Successfully piloted the FLXdrive™, our battery electric locomotive, achieving more than 11% fuel savings for an entire train
• More than 5,000 salaried Wabtec employees participated in DE&I training globally (17% increase since 2021)
• Wabtec India Technology and Engineering Center (WITEC) received Great Place to Work® certification

Governance Achievements

• Audited approximately 20% suppliers in high-risk countries, with suppliers implementing corrective actions
• 10 cases per 1,000 employees investigated through Speak Up, Wabtec!, our confidential program for employees to identify potential policy or compliance issues. Corrective action taken for all confirmed allegations
• Launched a new Code of Business Conduct and Ethics in 2020

Climate Goals & Targets

Environmental Challenges

• Continued economic and geopolitical instability, supply chain disruptions, increased metal and commodity costs, labor shortages, and serious climate volatility
• Supply chain disruptions caused component and chip shortages, resulting in an adverse effect on the timing of the Company’s revenue generation
• Potential challenges posed by evolving climate change policy and prospective regulations

Mitigation Strategies

• Increased investment to increase the use of alternative, low-carbon fuels and technologies
• Developing transformative digital solutions and cutting-edge physical modernizations
• Implementing a new Supply Chain Risk Management tool to enhance our understanding of risks to our supply chain

Supply Chain Management

Supplier Audits: Approximately 20% of suppliers in high-risk countries

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Rising temperatures
• Fires
• Earthquakes
• Floods
• Tornadoes
• Hurricanes
• Dangerous weather conditions

Transition Risks

• Evolving climate change policy and prospective regulations

Opportunities

• Delivering the pragmatic and visionary technologies that our customers need to address climate change

Reporting Standards

Frameworks Used: SASB, UN Global Compact, Greenhouse Gas Protocol

Certifications: ISO 50001 (six facilities)

Third-party Assurance: Bureau Veritas

Sustainable Products & Innovation

• FLXdrive™ battery-electric locomotive
• Tier 4 locomotives
• Remanufactured locomotives
• Trip Optimizer™
• Green Air refrigerant
• Metroflexx and Regioflexx brake control products

Awards & Recognition

• Great Place to Work® certification (WITEC)
• Best Skill Development Program at the Tata Institute of Social Science (TISS)-Leapvault CLO Awards India
• Human Rights Campaign Foundation’s 2022 Corporate Equality Index (CEI)
• Program of the Year award from Riskmethods

Environmental Metrics

ESG Focus Areas

• Climate Change
• Responsible Operations
• Diversity, Equity, and Inclusion (DEI)

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions intensity by 20% from 2019 to 2021 (normalized per annual net sales)
• Reduced energy intensity by 14% from 2019 to 2021 (normalized per annual net sales)
• Recycled, reused, or remanufactured 333 million pounds of end-of-life material in 2021
• Completed 1,000th remanufactured locomotive in 2021
• FLXdrive™ pilot in 2021 reduced fuel consumption by more than 11% and CO2 emissions by approximately 65 tons

Social Achievements

• Continued progress toward best-in-class safety performance, achieving a 14% reduction in Total Recordable Injury Rate from 2019 to 2021
• More than 5,000 salaried employees participated in company-wide DE&I training

Governance Achievements

• Joined the United Nations Global Compact

Climate Goals & Targets

Environmental Challenges

• Reducing workplace injuries to achieve the 2030 goal of a 30% reduction from the 2019 baseline

Mitigation Strategies

• Continued focus on eliminating workplace hazards, risks, and injuries

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Sustainable Products & Innovation

• FLXdrive™ battery-electric locomotives
• Metroflexx and Regioflexx brake control products
• Green Air refrigerant

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• 3.1% lower Scope 1 and 2 emissions in 2023 compared to 2022, despite a 16% increase in sales. 38% absolute emissions reduction from the 2019 baseline.
• 131% increase in the use of zero-carbon solar energy compared to 2022, avoiding 2,400 metric tons of CO2e.
• Trip Optimizer™ saved 752 million gallons of fuel, equating to 7.7 million tons of GHG emissions reductions.
• Green Air HVAC system uses R290 refrigerant with a GWP of less than one, compared to R-134a's GWP of 1,300.
• Green Friction product reduces particulate emissions from braking by up to 90%.

Social Achievements

• Received a score of 100 on the Human Rights Campaign Foundation's 2023-2024 Corporate Equality Index.
• Named Penn State's 2023 Corporate Partner of the Year.
• Wabtec Italy and Wabtec Iberica received Top Employer certifications.
• Community investment of $1,380,000 ($230,000 Bids for Kids, $500,000 United Way, $650,000 Wabtec Foundation).

Governance Achievements

• Created a new Chief Strategy and Sustainability Officer role.
• Achieved ISO 27001 certification for information security management systems.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions causing component and chip shortages.
• Escalation of cost of raw materials and disputes with suppliers.
• Shortage or discontinuation of certain raw materials.

Mitigation Strategies

• Increasing supplier diversity.
• Implementing a multisource strategy where possible.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Focus on increasing supplier diversity

Climate-Related Risks & Opportunities

Transition Risks

• Changes in legal and regulatory environment regarding EHS and climate change.

Opportunities

• Development of alternative propulsion technologies (FLXdrive), biofuels, renewable diesel, and hydrogen.

Reporting Standards

Frameworks Used: SASB, TCFD, UNGC, GHG Protocol

Certifications: ISO 14001, ISO 45001, ISO 27001

Third-party Assurance: Bureau Veritas

Sustainable Products & Innovation

• FLXdrive (battery electric locomotive)
• Trip Optimizer
• Green Air HVAC system
• Green Friction product

Awards & Recognition

• Union Pacific Sustainability Partner Award
• Penn State Corporate Partner of the Year