Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable development
• Minimizing environmental footprint
• Community responsibility

Environmental Achievements

• 100% of process water is recycled at our facilities in Eisenhüttenstadt and Shangyu
• 30% reduction in process water consumption over five years
• Sodium nitrate containing wastewater in Lübeck is used for odor reduction

Social Achievements

• 4,220 hours of EHS training provided in 2022
• 65% reduction in work-related incidents since 2018
• 27% female staff across the global office
• Provided books and reading materials to communities in need and coordinated community tree planting events

Governance Achievements

• 40% female representation on the Board of Directors in 2023
• In 2023, ESG oversight and responsibility will be integrated into the Board’s Governance and Compensation Committee

Climate Goals & Targets

Environmental Challenges

• Inflationary and energy related cost pressures
• Russia/Ukraine conflict
• Winding down and divestiture of the Tilly, Belgium operations
• Growing stakeholder expectations related to ESG factors
• Risks associated with international business activities (including China)
• Environmental regulations
• Safety risks and hazards
• Prolonged armed conflict in Ukraine
• COVID-19
• Availability and retention of qualified employees
• Collective agreements
• Litigation risks
• Competition
• Commodity price fluctuations
• Supply chain disruptions
• Protection of intellectual property
• Business interruptions
• Acquisition risks
• Systems, network infrastructure and data failure

Mitigation Strategies

• Implementing the first wave of its commercial excellence program to mitigate the negative impact of inflation on product margins
• Renewed and increased its supply agreement with First Solar
• Signed a ten-year extension to an exclusive teaming arrangement with Sierra Space
• Completed its integration of AZUR
• Exited the manufacturing of low margin extractive and catalytic products with the divestiture of its Tilly, Belgium operations
• Completed its St-Laurent project (Montréal, Canada), expanding the development and manufacturing of critical minerals
• Strategic commercial agreement with Rio Tinto to secure a North American supply of tellurium
• Health, safety and wellbeing systems, processes and policies
• Insurance programs
• Succession plans, attract and retain key employees, train, retain and successfully integrate new talent
• Operational optimization initiatives
• Opportunistic regarding M&As
• Long-term commercial relationships with suppliers
• International patents, trade secrets and employee confidentiality agreements
• Business interruption insurance
• Proper integration of acquired companies
• Continually maintain software and hardware, effectively upgrade systems and network infrastructure
• Prevention, detection, and remediation measures in the area of cybersecurity

Supply Chain Management

Responsible Procurement

• Early adopters of sustainable procurement programs

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI), Task Force on Climate-Related Financial Disclosures (TCFD)

Certifications: ISO 50001 (two sites in Germany)

Environmental Metrics

ESG Focus Areas

• Climate Change
• GHG Emissions
• Energy Management
• Water Management
• Waste Management
• Chemical Safety
• Air Quality
• Circular Economy
• Health and Safety
• Talent Development
• Inclusion and Diversity
• Human Rights
• Supplier Engagement
• Community Engagement
• Corporate Governance
• Business Ethics
• ESG Governance

Environmental Achievements

• 62% reduction in work-related incidents since 2019
• 44% reduction in process water consumption since 2019
• 33% decrease in wastewater discharged compared to 2022
• 24% decrease in hazardous waste compared to 2022
• 90% decrease in diesel consumption compared to 2022
• 7% decrease in electricity consumption compared to 2022
• First disclosure of Scope 1 and 2 GHG emissions
• 303 kg of germanium reused in 2023 from wastewater recycling

Social Achievements

• 4,716 EHS training hours (12% increase over 2022)
• Adoption of a Human Rights Statement
• Publication of a report on combating forced labor (early 2024)
• Planned development and launch of a Supplier Code of Conduct in 2024
• Initiated a supply chain sustainability questionnaire to engage with suppliers
• Donations to Moisson Montréal and SLK Klinik

Governance Achievements

• Completed climate risk assessments for all manufacturing sites
• Conducted a financial impact assessment based on climate scenarios
• Increased alignment with TCFD recommendations
• Adopted a Human Rights Statement

Climate Goals & Targets

Environmental Challenges

• Potential physical and transition risks from climate change
• Scope 3 emissions
• Managing forced labor and child labor risks in the supply chain

Mitigation Strategies

• Climate risk assessments for all manufacturing sites
• Financial impact assessment and climate scenario analyses
• Development of a GHG inventory management plan for Scope 3 emissions (2024)
• Development of a Supplier Code of Conduct (2024)
• Supply chain sustainability questionnaire

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Business Conduct
• Planned Supplier Code of Conduct (2024)

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Earthquakes
• Landslides
• Cyclones
• Water scarcity
• Extreme heat
• Wildfire

Transition Risks

• Regulatory changes
• Market shifts
• Procurement and critical metals

Opportunities

• Providing enabling materials to renewable energy industries

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, ESRS

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001, EN 9100 (Heilbronn/AZUR SPACE), FDA (Lübeck)

Third-party Assurance: Not disclosed