Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environmental Responsibility
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Implemented energy management system certified according to DIN ISO EN 50001, resulting in reduced energy consumption and CO2 emissions (specific figures not provided)
• New sintering furnace hall in Marktredwitz focusing on energy efficiency and environmental friendliness

Social Achievements

• Donation of around €17,000 to the Sterntaler children’s hospice in Mannheim
• Provided aid to Nepalese employees affected by the 2015 earthquake
• Participation in Girls’ Day career orientation project

Governance Achievements

• Consistent implementation of responsible corporate governance principles, including compliance management, internal control, and risk management systems
• Annual review and reporting on goals and achievements by the Executive Board

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: DIN ISO 9001, ISO TS 16949, DIN EN ISO 13485, DIN EN ISO 14001, DIN EN ISO 50001, DIN EN ISO/IEC 17025

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 1st place in the DeutscherIdeenPreis 2015 competition for Best Idea Management in the Chemicals Industry category

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy consumption by 30% in the new kiln hall in Marktredwitz.
• Achieved ISO 14001 certification for environmental management system.
• Achieved ISO 50001 certification for energy management system.

Social Achievements

• Launched a breast cancer awareness campaign ("CeramTec goes pink").
• Donated €17,000 to a children’s hospice.
• Conducted CPR training for employees in Suzhou.
• Held a Safety Campaign Week in Malaysia.

Governance Achievements

• Established a Governance, Risk & Compliance (GRC) service center.
• Implemented a Compliance Management System (CMS).
• Maintained a zero incidents of bribery and corruption.

Climate Goals & Targets

Environmental Challenges

• Cyclical market effects in the industrial segment.
• Reduced demand from Chinese end market customers in ethylene oxide catalyst.
• Slow demand from construction and textile machinery markets.

Mitigation Strategies

• Simplified the organization of the industrial segment.
• Introduced key account management and opportunity management processes.
• Pursued acquisitions to expand into attractive applications and markets.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Energy Conservation
• Resource Protection
• Health and Safety
• Employee Well-being
• Corporate Governance
• Ethical Business Practices
• Compliance

Environmental Achievements

• Reduced energy consumption per €1m turnover from 592 MWh in 2014 to 526 MWh in 2017
• Reduced water consumption per €1m turnover from 640 m³ in 2014 to 480 m³ in 2017
• Reduced waste per €1m turnover from 12.79 tons in 2014 to 9.1 tons in 2017
• Reduced CO2 emissions per €1m turnover from 195 tons in 2014 to 182 tons in 2017

Social Achievements

• Implemented a Continuous Improvement system resulting in suggestions (Note: Data shows decline in 2016 and 2017 due to a system change)
• Apprenticeship rate maintained at around 7%

Governance Achievements

• Established a Governance, Risk & Compliance (GRC) service center in 2016
• Implemented a Compliance Management System (CMS)
• Zero incidents of bribery and corruption reported

Climate Goals & Targets

Environmental Challenges

• Maintaining high levels of health and safety (staff away sick increased from 1.54% in 2015 to 3.75% in 2017)
• Managing fluctuations in demand across various industrial markets
• Addressing price pressure from customers, particularly in the automotive and electronics sectors

Mitigation Strategies

• Implemented comprehensive reorganization in Industrial business focusing on simplification, scale, and standardization
• Refocused R&D in Medical Products on most attractive customer-driven projects
• Implemented cost-effectiveness measures to improve earnings and cash flows
• Commercial excellence initiatives to improve customer focus and cross-selling

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Advanced ceramic products that improve quality of life, increase efficiency, enhance productivity, save energy, and protect the environment.

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Reduced CO2 emissions/€1m turnover from 190 tons in 2016 to 168 tons in 2019
• Reduced water consumption/€1m turnover from 548 m³ in 2016 to 450 m³ in 2019
• Reduced energy consumption/€1m turnover from 531 MWh in 2016 to 477 MWh in 2019

Social Achievements

• Maintained a relatively stable workforce (around 3,500 employees)
• Implemented continuous improvement system with thousands of suggestions
• Reduced lost time accidents (LTAs)

Governance Achievements

• Established a Governance, Risk & Compliance (GRC) service centre in 2016
• Implemented a Compliance Management System (CMS)
• Maintained zero incidents of bribery and corruption

Climate Goals & Targets

Environmental Challenges

• Softer demand in major markets (Electronics and Automotive) in the Industrial business
• Discontinuation of some product groups in the Industrial business
• Economic slowdown in macroeconomic development

Mitigation Strategies

• Comprehensive reorganization of the Industrial business
• Implementation of productivity initiatives in Medical Products and Industrial businesses
• Cost discipline and new organizational setup

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• BIOLOX® ceramic components for medical implants

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Reduced energy consumption by 23,233 MWh (from 301,131 MWh in 2019 to 272,748 MWh in 2020)
• Reduced water consumption by 33,764 m³ (from 294,623 m³ in 2019 to 260,864 m³ in 2020)
• Reduced CO2 emissions by 10,388 tons (from 106,567 tons in 2019 to 96,179 tons in 2020)

Social Achievements

• Employee suggestion scheme (IDM)/idea management: 2,830 total number of suggestions
• Reduced staff away sick percentage to 3.98% (from 4.23% in 2019)
• Reduced Lost Time Accidents (LTAs) to 6 (from 14 in 2019)

Governance Achievements

• Implemented a web-based reporting system for anonymous and confidential reporting of compliance breaches
• Reworked the Code of Ethics to reflect the newest standards and requirements
• Established a governance, risk & compliance (GRC) structure

Climate Goals & Targets

Environmental Challenges

• Lower order income and order cancellations and postponements from customers due to lower level of elective surgeries because of Covid-19 (Medical Products)
• Lower volumes across most product groups due to lower demand from customers and order cancellations following the Covid-19 outbreak as well as generally slowing markets for automotive and electronics components (Industrial business)

Mitigation Strategies

• Comprehensive reorganization in the Industrial business combining various independent reporting units into larger, more streamlined commercial units and consolidating operations in Europe
• Measures to increase organizational cost effectiveness and drive productivity across all businesses
• Government grants received in 2020 to compensate for Covid-19 impacts

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• BIOLOX® ceramic components for medical implants

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced energy consumption/€1m turnover from 493 MWh/€1m in 2020 to 451 MWh/€1m in 2021
• Reduced water consumption/€1m turnover from 472 m³/€1m in 2020 to 436 m³/€1m in 2021
• Reduced waste/€1m turnover from 9.4 tons/€1m in 2020 to 8.9 tons/€1m in 2021
• Implemented DIN ISO 14001-certified environmental management system
• Implemented DIN ISO EN 50001-certified energy management system

Social Achievements

• Increased total employees by 1.4% from 3,420 in 2020 to 3,468 in 2021
• Reduced staff away sick percentage from 3.98% in 2020 to 4.03% in 2021
• Reduced Lost Time Accidents (LTAs) from 6 in 2020 to 5 in 2021
• Improved LTA frequency rate from 0.19 in 2020 to 0.15 in 2021
• Improved LTA severity rate from 2.47 in 2020 to 0.74 in 2021
• Increased total number of employee suggestions from 2,830 in 2020 to 3,422 in 2021
• Cooperation with high schools and colleges to offer opportunities for vocational education and training

Governance Achievements

• Consistently implemented principles of responsible corporate governance, including compliance management system, internal control system, and risk management
• Established an anonymous and confidential web-based reporting system for compliance breaches
• Updated code of conduct to reflect newest standards and requirements
• Appointed an ESG manager to define a sustainability vision and key goals

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact
• Overall economic and political situation
• Raw material and energy price fluctuations or supply interruption
• Interruptions at production facilities
• Risks related to employees and counter-party risk
• Integration of acquisitions
• Risks related to changes to or compliance with laws and regulations

Mitigation Strategies

• Implemented risk management system to identify, assess, manage, and monitor risks
• Implemented internal control system to ensure compliance with guidelines and prevent loss or damage
• Developed a framework with reliable, risk-minimizing technical and organizational processes
• Continuous process improvement (CPI) to reduce energy consumption and increase energy efficiency
• Regular audits to monitor and review compliance, risk management, and internal control

Supply Chain Management

Climate-Related Risks & Opportunities