Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Social sustainability
• Economic sustainability

Environmental Achievements

• Reduced CO2 emissions by 16% compared to 2018
• Reduced waste by 35.4% compared to 2018
• 99.9% waste recovered in 2019
• 65,465 tons of recycled metals within the plant in 2019
• 14,223 MWh saved in recent years through energy efficiency improvements
• Avoided 1,188 tons of CO2 emissions by improving energy efficiency in 2019

Social Achievements

• Maintained an open and collaborative relationship with local communities
• Developed initiatives for the local area, including training and social support
• Reduced injuries by 32.6% compared to 2018
• Reduced major injuries by 50% compared to 2018
• Average training hours per employee: 6.95

Governance Achievements

• Operates according to principles of social responsibility and a code of conduct
• Complies with applicable laws and regulations
• Certified according to DIN EN ISO 9001:2015 (Quality management) and IATF 16949:2016 (Automotive)
• Planning to achieve DIN EN ISO 14001:2015 (Environmental management) and DIN ISO 45001:2018 (Occupational health and safety management) certifications

Climate Goals & Targets

Environmental Challenges

• Economic crisis caused by the COVID-19 pandemic
• Uncertainties regarding the global economy, geopolitical tensions, and protectionist policies
• Negative trend in automotive-related applications due to uncertainties over technological standards and destocking
• Risks arising from Brexit and escalating global trade conflicts
• Substitution of copper with other materials due to rising raw material prices

Mitigation Strategies

• Strengthened operational efficiency and organizational flexibility
• Rationalized the business portfolio to focus on high added value and growth potential markets
• Implemented the "Forerunner" integration program to specialize production sites and optimize production units
• Investment in alloy strip products for e-mobility and digitization
• Focus on process optimization and product development with R&D support
• Creation of an attractive working environment to acquire highly qualified employees

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Transparent processes and precise criteria, in accordance with KME Group's compliance regulations
• Preference given to suppliers with environmental, safety, and quality certifications
• No cathodes/metal from conflict regions

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: DIN EN ISO 9001:2015, IATF 16949:2016, DIN EN ISO 50001:2018

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Social sustainability
• Economic sustainability
• Circular Economy

Environmental Achievements

• Reduced energy consumption per unit of output by 28.1% over seven years (2013-2020)
• Increased recycled materials used to 60.4% of total materials (metals from external recycling and internal recovery: 77%)
• Reduced waste production by 33.2% compared to 2019
• Increased waste sent for recovery to 85.5%
• Reduced NOx emissions by 69.3% compared to 2019

Social Achievements

• Implemented UNI ISO 45001 Occupational Health and Safety Assessment Series
• Reduced accident frequency rate by 57.6% compared to 2019
• Established corporate welfare system providing tax-free benefits to employees
• Signed agreement with trade unions for managing redundant workforce

Governance Achievements

• Adopted an organization and management model pursuant to Legislative Decree 231/2001
• Achieved ISO 45001 Safety Management System certification

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting planned actions and operations
• Need to further reduce greenhouse gas emissions

Mitigation Strategies

• Implemented prevention, monitoring, and control measures to protect employee health and safety during the pandemic
• Developing roadmap for climate neutrality, including technological solutions for replacing fossil fuels with renewable energy sources
• Participating in benchmarking projects and the Science-Based Targets Initiative (SBTi)

Supply Chain Management

Responsible Procurement

• Preference given to suppliers with ISO 14001, OHSAS 18001, and ISO 9001 certifications
• No ore from conflict regions used
• EICC-GeSI Conflict-Free participation considered an essential requirement for new suppliers

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 9001, ISO TS 16949, ISO 14001:2015, UNI ISO 45001

Sustainable Products & Innovation

• saCup line exploiting antibacterial and antiviral properties of copper
• Cell connectors for energy storage systems

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Economic
• Circularity

Environmental Achievements

• Reduced energy consumption per unit of product by 2.7% compared to 2020.
• Reduced greenhouse gas emissions per unit of product by 9.4% compared to 2020.
• Increased recycled materials used to 36.5% of total materials used.
• Increased internal recycling of metals to 50,601 tons.
• Reduced waste generation per unit of product by 21.1% compared to the previous year.

Social Achievements

• Implemented a company pension scheme, occupational health service, and support for canteen meals.
• Maintained a zero occupational disease rate.
• Implemented several training activities, including a High Potentials development program and OPEX-methods-training program.

Governance Achievements

• Operates according to principles of social responsibility and a code of conduct.
• Certified to ISO 9001:2015, IATF 16949:2016, ISO 14001:2015, ISO 45001:2018, and ISO 50001:2018 (for both companies).

Climate Goals & Targets

Environmental Challenges

• High energy expenditure in copper production.
• Supply chain disruptions (implied due to global context mentioned in report introduction).

Mitigation Strategies

• Consistent application of energy management system based on ISO 50001:2018.
• Use of recycled copper in addition to copper from ore.
• Implementation of energy efficiency measures resulting in savings of 295,800 kWh eq in 2021.
• Participation in the MARS - Metal Alliance for Responsible Sourcing project.

Supply Chain Management

Supplier Audits: 28/year

Responsible Procurement

• Materials purchased only from approved and registered suppliers; no materials from war zones; compliance with Dodd-Frank and Consumer Protection Act.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 9001:2015, IATF 16949:2016, ISO 14001:2015, ISO 45001:2018, ISO 50001:2018

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• TECU® ecological copper products

Awards & Recognition

• Future Festival award from the state of Lower Saxony

Environmental Metrics

ESG Focus Areas

• Circular Economy
• Climate Change
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Increased use of recycled and recovered materials to 60% in 2023 (aiming for 90% by 2030)
• Avoided approximately 94,130 tonnes of CO2 emissions thanks to recycling in 2023
• Reduced CO2 emissions per unit of product (though specific figures are not provided in the report)

Social Achievements

• Launched and supported the Dynamo project, a recreational therapy camp for children with serious illnesses, for 15 years.
• Maintained a 97.7% rate of employees covered by collective labor agreements.

Governance Achievements

• Updated and implemented an Organisation, Management and Control Model pursuant to Legislative Decree 231 of 2001.
• Adopted a governance system that provides for responsibilities both at the level of the governing bodies and in the organisational structure for sustainability objectives.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to global material volatility
• Climate change impacts, including extreme weather events (e.g., flooding at the Stolberg plant in 2021)
• Reaching 100% recycled material due to technical and administrative limits.

Mitigation Strategies

• Investments of approximately EUR 60 million in scrap refining and recovery technologies
• Development of two Research Centres (in Germany and Italy)
• Over 100,000 hours of specific training
• Construction of energy platforms for self-consumption powered by renewable energy
• Certification projects for electricity purchased from third-party suppliers
• Preventive measures to mitigate risks associated with extreme weather events (e.g., embankment works near Fornaci di Barga plant).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Conduct for Business Partners
• Preference for suppliers with environmental, safety, and quality certifications
• Avoidance of materials from mines located in regions with armed conflicts
• Preference for local suppliers where possible

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (heavy rainfall, floods, droughts, fires)

Transition Risks

• Regulatory changes, emission limits, carbon pricing, energy and raw material costs

Opportunities

• Growth in demand for copper due to energy transition and renewable energy technologies
• Opportunities connected with the transition to a circular economy

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards

Certifications: ISO 9001:2015, IATF 16949:2016, ISO 14001:2015, ISO 45001:2018, ISO 50001:2018

Third-party Assurance: Deloitte & Touche SpA (limited assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

KME's activities contribute to these goals through its focus on sustainable innovation, circular economy, renewable energy, and emission reduction.

Sustainable Products & Innovation

• TECU® products (made exclusively from recycled metal)
• SaCup range of copper and copper alloy products with antimicrobial properties
• Cell connectors for energy storage systems

Awards & Recognition

• Not disclosed