Climate Change Data

Environmental Metrics

ESG Focus Areas

• climate
• working conditions
• human rights
• integrity
• circular economy

Environmental Achievements

• Harmonized ams OSRAM’s environmental management system into one system for the whole group. All global production sites and the co-headquarters in Premstaetten and Munich maintain a certified environmental management system in accordance with the international ISO 14001 standard.
• All former OSRAM sites in Europe maintain a certified energy management system in accordance with ISO 50001.

Social Achievements

• Implemented a profit-sharing program for all ams OSRAM employees.
• Paid a profit-sharing bonus to employees in the amount of EUR 19 million.

Governance Achievements

• Implemented an effective compliance management system in line with the regulatory framework and data protection requirements.
• Established a “Tell ams OSRAM” whistleblower system for reporting violations.

Climate Goals & Targets

Environmental Challenges

• Ongoing COVID-19 pandemic and worldwide supply chain challenges.
• Market share loss in the consumer business.
• Supply chain imbalances in the global semiconductor market.

Mitigation Strategies

• Successfully steered ams OSRAM through these challenges thanks to effective crisis management.
• Implemented cost mitigation measures in the consumer business.
• Increased inventories as a precautionary measure to maintain the Company’s ability to supply its customers.

Supply Chain Management

Responsible Procurement

• Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI), UN Global Compact

Certifications: ISO 14001, ISO 50001

Sustainable Products & Innovation

• brightest LED available on the market
• latest LED generation enabling additional brightness and image quality for LED-based projectors
• first ultraviolet C-band (UV-C) LEDs
• smallest camera module available on the market (NanEyeM)

Awards & Recognition

• 2021 “Electronic Company of the Year” award from Aspencore China

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Conservation
• Employee Well-being
• Diversity

Environmental Achievements

• Commitment to CO2 neutrality in own value creation (Scope 1 and 2) by 2030
• Aim to reduce Scope 3 emissions by 47.5% per euro of value added by 2030, and by 97% by 2050 (compared to 2021)

Social Achievements

• Profit-sharing program for all employees
• Comprehensive internal and external training and development opportunities
• Employee surveys to improve employee satisfaction

Governance Achievements

• New management structure implemented
• Strategy and efficiency program ('Re-establish the Base') initiated to focus on core portfolio and leaner structure
• Strengthened business unit responsibilities
• Reduced Management Board size

Climate Goals & Targets

Environmental Challenges

• Lower demand for semiconductor products, especially in consumer applications
• Weak macroeconomic development impacting industrial and outdoor lighting demand
• High energy prices and financing costs impacting HyperRed LED demand
• Geopolitical conflicts, high inflation, and rising interest rates negatively impacting demand
• Supply chain disruptions
• Customer concentration
• Competition for new technologies
• Cyber risks and IT risks
• Business interruption risk
• Dependence on suppliers
• Manpower shortages and loss of skilled employees
• Quality risks
• Financial risks (liquidity, interest rate, currency, credit)
• Legal and compliance risks

Mitigation Strategies

• 'Re-establish the Base' program to improve earnings and focus on core business
• Sale of non-core business activities
• Measures to optimize working capital
• Strict receivables management system
• Regular evaluation and rescheduling of investments
• Regular reviews of value chain
• Monitoring of potential new technology fields and incorporation into strategic planning
• Market analyses and review of R&D plans
• Intensified risk management for innovation projects
• Optimization of product development processes
• Transfer of IT systems to secure cloud solutions
• Regular vulnerability tests and employee training
• Compliance with ISO27001 and TISAX standards
• Emergency response service provider contract
• Comprehensive data protection management system
• Improved maintenance and emergency plans for production
• Diversification of supplier base
• Long-term delivery agreements
• Substitution of important substances
• Professional measures in recruiting and personnel marketing
• Career development processes and programs
• Succession planning
• Group-wide quality processes and audits
• Effective reporting system for quality defects
• Multi-stage financing plan
• Capital increase and bond refinancing
• Diversified financing plan
• Strong IP and brand portfolio
• Monitoring of external IP environment
• Group-wide compliance management system
• Insurance to cover risks

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Trend towards more eco-friendly and energy-saving products

Reporting Standards

Frameworks Used: Greenhouse Gas (GHG) Protocol, Task Force on Climate-related Financial Disclosures (TCFD)

Certifications: ISO 14001, ISO 13485, ISO 9001, IATF 16949, ISO27001, TISAX

Sustainable Products & Innovation

• OSLON Square Hyper Red LEDs (high energy efficiency in plant cultivation)
• ALIYOS LED-on-Foil technology (automotive lighting)
• EVIYOS 2.0 LED (automotive lighting)
• Multi-LED package for wearables (improved heart rate and SpO2 measurements)
• Flat, ultra-bright projection LEDs (image processing and stage lighting)
• Image sensors (data glasses and other products)
• Fast and ultra-low noise solutions for medical imaging