Climate Change Data

Montana Aerospace AG

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:130,579 tCO2e (location based) or 94,921 tCO2eq (market based)
Scope 1 Emissions:~21% (location based) or ~29% (market based) of total GHG emissions
Scope 2 Emissions:~79% (location based) or ~71% (market based) of total GHG emissions
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Decrease by more than 35% of CO2 in relation to total net sales since 2020.

ESG Focus Areas

  • Environment
  • Social Responsibility
  • Governance

Environmental Achievements

  • Increased share of renewable energy at several facilities.
  • Reduced total water consumption related to total net sales by 30% since 2020.
  • Recycled almost 100% of cuttings, clippings, and scrap internally.
  • Used approximately 70% recycled aluminum to produce components.
  • Implemented augmented reality tools to cut carbon emissions and reduce travel.

Social Achievements

  • Launched several employee development programs (Buddy Program, Mentorship Program, Talent Program, First Time Management Program, Sales Academy).
  • Implemented a Group-wide job levelling system to increase clarity and transparency.
  • Achieved zero fatalities among employees & contractors.
  • Maintained a positive employee engagement survey.

Governance Achievements

  • Rolled out company-wide Code of Conduct.
  • Released a group-wide People Policy.
  • Implemented a Whistleblower tool.
  • 50% of locations completed environmental management certification audits.

Climate Goals & Targets

Long-term Goals:
  • Reduce CO2 emissions by expanding vertical integration of value chain
  • Promote circular economy by implementing in-house recycling processes
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Data collection challenges due to heterogeneous conditions across 30+ global locations.
  • Inertia and reluctance to progress regarding ESG within the company.
  • Difficulty in finding and retaining well-skilled personnel on a global level.
  • Integrating unique cultures and traditions of various acquired companies into a cohesive whole.
Mitigation Strategies
  • Established a new global ESG team with central coordination and local teams.
  • Addressing medium to long-term cost effects caused by lack of ESG measures.
  • Utilizing several resources to ensure job postings reach potential candidates, swift and efficient hiring process, and tailored assessments and interviews.
  • Utilizing tools to create company cohesiveness (e.g., Corporate Identity rollout, Group-wide newsletter).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Supplier selection process considers quality, safety, cost, anti-corruption practices, responsible sourcing, human rights due diligence, environmental practices, and protection of intellectual property.

Climate-Related Risks & Opportunities

Physical Risks
  • Unforeseeable effects of climate change resulting in higher costs.
Transition Risks
  • Regulatory changes
Opportunities
  • Transition to renewable energy sources; development of energy-efficient products; lightweight products reducing energy consumption.

Reporting Standards

Frameworks Used: Null

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 4 (Quality Education)
  • Goal 5 (Gender Equality)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 9 (Industry, Innovation and Infrastructure)
  • Goal 10 (Reduced Inequalities)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)

Montana Aerospace contributes to these goals through various initiatives detailed in the report.

Sustainable Products & Innovation

  • Lightweight products for aerospace and mobility sectors; components for generators, transformers, and electric motors.

Awards & Recognition

  • Not disclosed

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:2,820,190 tCO2e/year
Scope 1 Emissions:42,375 tCO2e/year
Scope 2 Emissions:123,159 tCO2e/year (market based)
Scope 3 Emissions:2,678,875 tCO2e/year
Renewable Energy Share:46.4% of total energy use
Total Energy Consumption:493,660 MWh/year
Water Consumption:329,617 m3/year
Waste Generated:26,186 tons/year (Hazardous: 11,060 tons; Non-Hazardous: 15,126 tons)
Carbon Intensity:1.97 kg CO₂e/€

ESG Focus Areas

  • Climate and emissions
  • Resources inflows
  • Energy
  • Waste
  • Materials
  • Resource outflows
  • Supplier environmental assessment
  • Supplier social assessment
  • Occupational health and safety (own workforce)
  • Diversity and corporate culture
  • Water consumption
  • Working conditions (own workforce)

Environmental Achievements

  • Reduced non-renewable energy consumption by 14.28% compared to 2022
  • Increased renewable energy consumption by 48.08% compared to 2022
  • Established in-house copper recycling capability at ASTA's Três Corações plant in Brazil
  • Inaugurated a photovoltaic power plant at UAC in Da Nang, Vietnam, generating approximately 6,000 MWh of clean energy per year
  • Increased recycled input materials used from 49% to 55%

Social Achievements

  • Launched Grow @ Montana Aerospace initiative, including Leadership Refresher Program and other employee development programs
  • Implemented a new Supplier Code of Conduct
  • Improved S&P Global Corporate Sustainability Assessment (CSA) score from 17 to 28 (+64.7%)
  • Zero work-related fatalities

Governance Achievements

  • Established a Conflict of Interests Policy
  • Decided to establish an ESG Committee in 2024

Climate Goals & Targets

Long-term Goals:
  • Net-Zero target commitment (SBTi)
Medium-term Goals:
  • Increase the share of renewable energy used across the Group by installing solar panels at multiple sites
Short-term Goals:
  • Complete ESG Risk Assessment in 2024
  • Set targets within the Science Based Targets Initiative (SBTi) framework in 2024

Environmental Challenges

  • High energy consumption leading to GHG emissions
  • Bauxite mining polluting water streams
  • Manufacturing operations generating waste
  • Risks related to the physical impacts of climate change
  • Risks related to the transition to a lower-carbon economy
  • Managing and retaining talent
  • Exposure to fraud or illegal activities
  • Data privacy breaches
Mitigation Strategies
  • Implementing augmented reality (AR) tools to minimize travel
  • Implementing continuous monitoring of equipment for operational readiness and energy efficiency
  • Continuous education of employees on climate protection
  • Job Bike program
  • Implementing a yearly comprehensive carbon inventory at ASTA
  • Implementing detailed emergency response plans at ASTA
  • Implementing a new Supplier Code of Conduct
  • Introducing a “Climate Risk Team” in 2024

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Increased frequency and severity of extreme weather events
  • Increased operating costs due to climate change
Transition Risks
  • Policy and legal risks
  • Technology risk
  • Market risk
  • Reputation risk
  • Carbon pricing
  • Availability of resources
  • Energy availability
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, IATF 16949, EN9100 + AS 9100, ISO 14001, ISO 45001, EN 15088, EN 1090, ISO 3834, ISO 17025, ISO 50001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • 4 (Quality Education)
  • 5 (Gender Equality)
  • 7 (Affordable and Clean Energy)
  • 8 (Decent Work and Economic Growth)
  • 9 (Industry, Innovation and Infrastructure)
  • 10 (Reduced Inequalities)
  • 12 (Responsible Consumption and Production)
  • 13 (Climate Action)

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

  • Lightweight components for aircraft
  • Components for generators, transformers, and electric motors
  • Sustainable insulation systems

Awards & Recognition

  • Not disclosed