Mutares SE & Co. KGaA

Climate Impact & Sustainability Data (2020, 2021, 2022, 2023, 2024)

Reporting Period: 2020

Environmental Metrics

ESG Focus Areas

Environmental
Social
Governance

Environmental Achievements

60% of portfolio companies certified to ISO 14001:2015 (environmental management system) as of 31 December 2020
Compensated 360,000 kg of CO2 greenhouse gases in 2020 through atmosfair climate protection projects.
Balcke-Dürr Group achieved a 60% reduction in energy consumption through LED retrofitting and heating/hot water system renewal.

Social Achievements

Maintained a 'Zero accident' safety culture across portfolio companies.
Kalzip GmbH achieved 1,000 accident-free days in 2019.
Donges Group supported Aid Kenya with annual Christmas donations since 2019.

Governance Achievements

Established a compliance system with a Code of Conduct.
Zero messages in the complaint box and zero violations against the Code of Conduct.
Implemented policy management software with whistleblower protection.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Reporting Period: 2021

Environmental Metrics

ESG Focus Areas

Environment
Social
Governance

Environmental Achievements

Approximately 74% of portfolio companies are ISO 14001:2015 certified (environmental management system), and approximately 25% are ISO 50001:2018 certified (energy management system).
Efforts to reduce CO2 emissions by a minimum of 10% in each portfolio company throughout their affiliation with the Mutares Group.

Social Achievements

Implementation of a zero-accident safety culture.
Efforts to increase diversity in the workforce.

Governance Achievements

Group-wide roll-out of the existing compliance management system.
Establishment of a whistleblower hotline.

Climate Goals & Targets

Short-term Goals:

Group-wide roll-out of compliance management system (2024)
Establishment of supplier and business partner code of conduct (2022)
Group-wide roll-out of Mutares code of conduct (2023)
Establishment of sanction and violation-screening system for code of conduct (2023)
Establishment of whistleblower hotline (2023)
Implementation of a zero-accident safety culture (2023)
Increase diversity (2026)
Group-wide integration of ESG practices into business operations (2023)
Integration of ESG KPIs into financial reporting system (2022)
Implementation of supplier and business partner code of conduct (2022)
Integration of social and environmental criteria into supplier audits (2023)
Improve ESG measurement (2023)
Appointment of ESG officer (2023)
Reduce CO2 by min. 10% in each portfolio company (2028)
Increase number of ISO 14001:2015 and ISO 50001:2015 certified portfolio companies (2023)
Introduce energy efficiency programs (2023)

Environmental Challenges

Companies acquired often lack ESG structures or strategies.
Supply chain disruptions.
High employee turnover in personnel-intensive industries.
Climate change related risks (rising energy prices, CO2 tax).

Mitigation Strategies

Conducting ESG reviews of portfolio companies to identify and address ESG issues.
Implementing ESG practices into business operations.
Creating a fair and respectful workplace to retain employees.
Integrating ESG Key Performance Indicators into financial reporting.

Supply Chain Management

Responsible Procurement

Supplier and business partner code of conduct (in preparation)

Climate-Related Risks & Opportunities

Transition Risks

Rising energy prices
Introduction of a CO2 tax

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001:2015, ISO 50001:2018, ISO 45001:2018 (in approximately 45% of portfolio companies)

UN Sustainable Development Goals

SDG 1
SDG 3
SDG 4
SDG 6
SDG 7
SDG 8
SDG 9
SDG 10
SDG 12
SDG 13
SDG 16

Mutares' activities contribute to these SDGs through job preservation, improved working conditions, sustainable resource management, climate action, and promoting peace, justice, and strong institutions.

Reporting Period: 2022

Environmental Metrics

Renewable Energy Share:8%

Total Energy Consumption:3,979 GWh

ESG Focus Areas

Business Integrity
Fair and respectful working environment
Value Creation
Sustainable Supply Chain Management
Environmental Responsibility

Environmental Achievements

Investments in LED lighting, increasing the share of green energy, investments in solar panels and combined heat and power plants, increasing the share of recycling and biomaterials, investments in emission reduction
Implementation of energy efficiency programs resulting in cost savings and reduced CO2 emissions

Social Achievements

Implementation of a Zero-Accident Safety Culture
Increase Diversity (Gender and Nationality)

Governance Achievements

Group-wide roll-out of existing Compliance Management System (CMS)
Group-wide roll-out of the Mutares Code of Conduct
Implementation of Supplier and Business Partner Code of Conduct

Climate Goals & Targets

Medium-term Goals:

Increase Diversity (Gender and Nationality) by 2026
Reduce CO2 by minimum 10% in each portfolio company throughout their affiliation to Mutares Group by 2028

Short-term Goals:

Group-wide roll-out of existing Compliance Management System by 2024
Group-wide roll-out of the Mutares Code of Conduct by 2023
Implementation of Supplier and Business Partner Code of Conduct by 2022
Implementation of a zero-accident safety culture by 2023
Introduction of energy efficiency programs by 2023

Environmental Challenges

Supply chain disruptions
Shortage of skilled labor
Climate-related risks (physical and transitional)
Social risks associated with restructuring
Regulatory changes (e.g., CSRD, LkSG)

Mitigation Strategies

Careful examination of potential environmental risks during due diligence
Active approach to environmental protection and occupational safety
Attractive working environment and employee development programs
Consultation with stakeholders during restructuring
Preparation for new regulations (CSRD, LkSG)
Implementation of risk management system for sustainability risks and opportunities
Active support and training for portfolio company risk managers

Supply Chain Management

Responsible Procurement

Code of Conduct for Suppliers and Business Partners

Climate-Related Risks & Opportunities

Physical Risks

Extreme weather events

Transition Risks

New legislation and structural changes
Market risks
Reputational risks

Opportunities

Development of energy-efficient products
Expansion of renewable energy

Reporting Standards

Frameworks Used: EU Non-Financial Reporting Directive (NFRD), Corporate Social Responsibility Directive (CSRD), European Sustainability Reporting Standards (ESRS), UN Global Compact

Certifications: ISO 45001, ISO 14001, ISO 50001

UN Sustainable Development Goals

SDG 3: Good Health and Well-being
SDG 4: Quality Education
SDG 8: Decent work and economic growth
SDG 9: Industry, innovation and Infrastructure
SDG 10: Reduced Inequalities
SDG 13: Climate action
SDG 16: Peace, Justice and strong institutions

Mutares' activities to manage material issues are mapped to selected UN SDGs.

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

Environment
Social
Governance

Environmental Achievements

4.151 tCO2 avoided via energy efficiency investments across portfolio since 2017
34% of Portfolio ISO 45001 certified
57% of Portfolio ISO 14001:2015 certified