Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Resource Management
• Social Responsibility
• Employee Well-being
• Diversity & Inclusion
• Occupational Health & Safety
• Governance
• Compliance
• Supply Chain Sustainability

Environmental Achievements

• Switched to 100% green electricity at main locations in 2022
• Reduced carbon emissions by implementing energy efficiency measures (42% of 3% target achieved by end of 2022)
• Installed photovoltaic systems with a capacity of almost 2,900 kWp in 2021 and 2022
• Reduced more than 2,500 t of carbon emissions through logistics optimization (shifting air freight to sea freight and decentralizing transport routes)
• Annual savings of more than 900 metric tons of carbon dioxide through changes in the use of plastics in 2022
• Reduced commercial municipal waste at headquarters from 4.69% to 4.27% in 2021

Social Achievements

• Introduced “Onboarding Journey” in Germany in 2021 to improve new employee experience
• Increased number of apprentices and dual students in Germany almost doubled in the last two years
• Offered LinkedIn Learning platform with over 16,000 modules for employee development
• Implemented a company fitness program with Wellpass network in early 2022
• Supported employee health through in-house vaccination program during Covid pandemic and other wellbeing initiatives

Governance Achievements

• Established Corporate Sustainability Governance (CSG) function in early 2022
• Established Corporate Compliance Management (CCM) in 2018
• Conducted compliance training for 8,970 employees in 2022
• Implemented BKMS® whistleblowing system for reporting potential violations

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the pandemic (closed seaports in China, congested ports in Europe and the U.S., and the blockade of the Suez Canal)
• Shortages in the materials sector
• Increased manufacturing costs due to lead-free product regulations

Mitigation Strategies

• Increased use of air freight to ensure faster delivery and prevent production downtime
• Implementing transformation concepts to reduce fossil energy consumption
• Preparing for new regulatory plans and requirements that affect the cybersecurity of products
• Developing new lead-free alloys and integrating real primary data from suppliers to improve supply chain transparency

Supply Chain Management

Supplier Audits: Ecovadis analyses of supply chain in 2022

Responsible Procurement

• Supplier Code of Conduct (implemented in 2022)
• Global Purchase Network (GPN) for managing strategic partnerships
• Multi-country purchasing guideline
• Training for GPN employees on carbon dioxide in supply chains

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes related to lead use in products

Opportunities

• Growth in markets for renewable energies, energy efficiency, smart grids, water management, and e-mobility

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 50001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Phoenix Contact's products and solutions contribute to these goals through renewable energy solutions, sustainable manufacturing practices, and employee well-being initiatives.

Sustainable Products & Innovation

• Products and solutions for renewable energy, energy efficiency, smart grids, water management, and e-mobility

Awards & Recognition

• BME “Excellence in eSolutions” award (2019)
• Top 20 employer in Germany (2022)
• WEEF (World Ethical Electronics Forum) award (2022)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Resource Management
• Social Responsibility
• Employee Well-being
• Diversity & Inclusion
• Occupational Health & Safety
• Corporate Compliance
• Supply Chain Sustainability

Environmental Achievements

• Achieved carbon-neutral power supply for main locations since early 2022.
• Reached 3% energy consumption reduction target (vs. 2018) ahead of schedule in early 2024.
• Installed heat pumps in Blomberg and Lüdenscheid, saving approx. 500,000 kWh of natural gas per year.
• Converted diesel generator in India to gas-based generators, resulting in a one-third emissions saving.
• 100% of electrical energy requirements from renewable sources since 2022.
• Installed photovoltaic systems with a capacity of over 4,000 kWp by the end of 2023.
• Opened a dismantlable and rebuildable office building in the Netherlands in 2023.

Social Achievements

• Offered in-house social counseling for over 10 years.
• Implemented “Onboarding Journey” for new employees in Germany since 2021.
• Increased number of apprentices and dual students in Germany almost twofold in the last two years.
• Offered “LinkedIn Learning” platform with over 16,000 content modules worldwide.
• Actively supported women’s networks (e.g., “ing’enious” in Germany, STEM network in the USA).
• Celebrated the company's 100th anniversary with an inclusive event awarded the “German Brand Award”.

Governance Achievements

• Established Corporate Sustainability Governance (CSG) function in early 2022.
• Established Corporate Compliance Management (CCM) as a separate organizational unit.
• Conducted a central compliance risk analysis and implemented a compliance training concept.
• Implemented a global, certified whistleblowing system.
• Defined a three-pillar tax strategy emphasizing compliance, business priorities, and consideration of tax influences.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical events and port congestion.
• Increased air freight volumes due to supply chain challenges.
• Economic downturn impacting production levels and revenue.
• Increasing regulatory requirements for lead reduction and cybersecurity.

Mitigation Strategies

• Utilizing SkyLab dashboard for logistics transparency and Best Shipping Instructions (BSI) for route optimization.
• Shifting some air freight to ocean freight and decentralizing transport routes.
• Continuous improvement processes (CIP) across manufacturing, operations, and maintenance.
• Implementing lead-free products and preparing for new cybersecurity regulations.
• Investing in new alloys to mitigate lead reduction cost impacts.

Supply Chain Management

Supplier Audits: 1,988 suppliers verified with respect to environmental impacts (2023)

Responsible Procurement

• Global Purchase Network (GPN) for global supplier management.
• Multi-country purchasing guideline with rules and guidelines.
• Supplier Code of Conduct implemented since 2023.
• Initiative to motivate suppliers to undergo Ecovadis rating.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes related to lead reduction and cybersecurity.

Opportunities

• Growing demand for products and solutions in electromechanics, electronics, renewable energies, energy efficiency, smart grids, water management, and e-mobility.

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 50001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Products and solutions contribute to achieving these goals.

Sustainable Products & Innovation

• Products contributing to UN Sustainable Development Goals.
• Bio-based plastics and plastics produced from waste qualified and used in products (2023).

Awards & Recognition

• BME “Excellence in eSolutions” award (2019)
• German Brand Award (2023)